sales and marketing activities of pink city garden by zareen a.abedin

Sales and Marketing Activities of Pink Garden City 1.1: Introduction: Real Estate and Construction Industry play an important role for sustainable development of a country. The conatr5uctoin industry is an important sector for physical expansion and economic development of the country. This sector is well linked with human settlements, employment and environment it is recognized that the health of the Real Estate Development sector is the barometer of the national economy Real Estate Development in private sector in this country started in pre-liberation days when Eastern Housing Ltd. In the mid-60 undertook land development project known as â&#x20AC;&#x153;Pallabi Projectâ&#x20AC;? for housing purpose in the Mirpur area of Dhaka city. Due to the absence of an appropriate urbanization policy, urban growth and urban development is basically Dhaka centered. Now-a- days the population of Dhaka city has been increased at high rates, but the are has been increased at low rates. There is no magical solution to the present or future housing problem of the city. Government has made lands available for modern housing by earth filling low-laying areas of Dhanmodi, Mhammadpur, Mokhali, Cantonment, Gulshan, Banani, Baridhara, Uttara, Mirpur, etc by his own initiative. 1.2. History: History Pink Garden City. Bangladesh has come a long way since its independence. It has improved key social indicators and the well being of its people. The Pink Garden City has been an integral part of this progress. Pink Garden City philosophy is simple: To improve living standards. Pink Garden City, is a milestone in the Real Estate business. It is one of the Real Estate institution that uphold themselves among ten of renowned real estate institution. In the year 1998 only three employees started their functions containing 200sq feet of office premise. Within a very shortest period the business the spread up in a wided range. Now in Mohakhali the company is functioning their own 22 storied building office promise for about 500 personal with good reputation. in the mean time the number of projects stood up to 120 where as much of them has already handed over. At primary stage it collects land and by designing building marketing department works over it to attract customers. Business turned over for about 200 crores. Customers Banks and self financing accumulating to 200 cores of investment are rolling under Pink Garden City. At now, around 500 workers are working on permanent and adhoc basis. The company started their business singly but now a days a corporate body extended to 16 th numbers of sister concern. Good management, skilled workers total implantation of customer service and standardization of advanced technologies, etc. made the Pink Garden City as reputed company in the Real Estate business. 1.3 Quality: PINK GARDEN CITY. is committed to provide to the living standards of the people. This commitments demands immense social responsibility of ensuring quality in terms quantity,

purity, stability, safety, efficacy and presentation of the product. At every stage of the production, a stringent control mechanism involving raw material testing, in-process quality control, finished product testing as well as stability monitoring and documentation is maintained to ensure the highest quality product consistently. The ever-changing market place has fuelled has PINK GARDEN CITY’ s determination to keep up with the changing times by constantly strengthening the information base, exploring new lines of business and expanding domestic. This prompted the company to undertake infrastructure development to build competitive advantage in order to retain its position as a leading real estate company. PINK GARDEN CITY is committed to developing individual’s human, technical and conceptual skills through various educational and a wide range of internal and external human resource development and job related training programs each and every year. At PINK GARDEN CITY, a well-planned and structurally designed in- house training activity-involving sales, marketing and production etc. PINK GARDEN CITY is conducted throughout the calendar year. These training programs are conducted by in-house resource persons on a regular basis and as per scheduled. also received training from Rapport Bangladesh Limited and Tack training international on the following topics: • Time Management • Customer care • Customer relationship management • Leadership • Team building and leadership 1.4 Factors considered • Direct interviews were taken by a questionnaire from all types of customers. • Randomly 100 customers were taken for interviews within the city. • Customers having the positions of Businessman, Banker, Multinational company’s executives, Doctor, Engineer, Consultant, Private company’s manager, high official etc. • Customers were fully ensured that their information’s against the questionnaire would preserve confidentially and would not be exposed anywhere. 2.1 Management decision problems • The problem confronting the decision maker. It indicates the product management decision maker what does he need to do? • Should newer products be introduced immediately? • Should the existing promotional program be changed? • Should the price of the product be changed? 2.2 Marketing research problems • A problem that entails determining what information is needed and how it can be obtained. • What information’s needed? • Quality of the product. • Availability of the product. • Brand name effectiveness of the product. • Communicating effectiveness of all the companies.

• • • • •

Social responsiveness of the companies. Employee’s efficiency of the companies. Promotional items of the companies. Customer’s weakness of the companies. Customer’s satisfactions of the companies.

How the information’s can be obtained The necessary information’s only from customers by direct interviews with questionnaires. The sample size of customers was 100 the technique was random sampling throughout the city. 2.3 Approach to the problem The exploratory and qualitative research procedures are followed to conduct the project. That is we was only assigned to collect all the information’s criteria regarding real estate market’s images from customer and insights and understanding of this market. Hence there was no option to conduct the conclusive research or any other research. 2.4 Causes for the exploratory research: • To provide insights and understanding of the real estate market to know the companies images. • Information’s need is defined only loosely. • The research process was flexible and unstructured. • Sample size was small and no representative. • Analysis of primary data is qualitative. • Generally followed by further exploratory or conclusive research. Expert surveys. 2.5 Types of analytical model • • • • •

Primary data analysis. Cross tabulation model. Graphical interpretation of cross tabulation. Find outcome or result drawn from the semantic differential model. Recommendation drawn from the overall project experience.

3.0 Questionnaire type for customers: The questionnaire pattern for customers Sample size: 100 Customers Please give tick (√) mark to your chosen answers from each of the following questions. 1. On which Real estate company’s product do you normally emphasize?

2. In your opinion, at present which company is ensuring superior product quality? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

3. Which company’s brand name is easier to memorize? (a) Pink Garden City (b) BTI (c) Advance (d) Asset

(e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

4. Which company offers comparatively reasonable price having the appropriate product quality? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

5. Which company is pioneer in introducing newer products consequently? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment 6. Which company’s products are more available in most of the area?

(a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment 7. Which company provides the most informative promotional materials regarding the product? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

2.7. Which company’s Executives are smart enough to communicate with you? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

9. Which company’s Executives are more active in responding customer’s suggestion? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

10. Which company operates the most innovative marketing approaches frequently? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

11.Which Company committed to on time handover the Apartment? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance

(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

12. Which Company committed to post handover service? (a) Pink Garden City (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance (h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad (m) Domino (n) none (o) All (p) No comment

Real Estate Sector in Bangladesh: An Overview 4.1 Industry Profile: Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many. A good number of real estate companies are working under one umbrella association named 'Real Estate and Housing Association of Bangladesh' (REHAB). Almost 361 Companies are at present affiliated with this association, while more than 400 companies are working independently. BTI took a leading role in the formation of the industry association and is one of the founder members of the REHAB. 4.2 Real Estate Business: a Positive nation for Bangladesh 1 Rehab profile and its activities in Real estate Sector Preamble: Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to that picture. The ever-increasing urban population is catering an increasing demand for shelter. The right of shelter is a fundamental right, which is ensured by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part of the government of Bangladesh alone to ensure housing for all. Here comes the need of private sector real estate development. It is a recognized fact that the health of the Real Estate Development Sector is the barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in late seventies. During 1970s there were fewer than 5 companies engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2004 there are about 250 companies engaged in this business. Formation of REHAB: With the number of companies increasing gradually, various problems concerning the housing sector cropped up requiring early solution. At this stage it was necessary to form a trade association of the Real Estate developers to protect the overall interests of the sector. To strengthen the role of real estate sector Real Estate & Housing Association of Bangladesh (REHAB) was formed with only 11 members in 1991. The

objective of REHAB was to promote formal private sector Real Estate Development in Bangladesh. Present Performance: REHAB is the only trade organization of Real Estate Developers with a current membership of 260 Developers. All major institutionalized Developers are members of this organization. REHAB is also the "A Class" member of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). In the recent years REHAB has played a very significant role in nation building through Real Estate Development by its members. The members of REHAB contribute a large amount of revenue to the Government exchequer in terms of Registration Cost, Income Tax and Utility Service Charges. REHAB organizes its most colorful annual event REHAB Housing Fair each year in Bangladesh for the member developers, financial institutions and building material providers. It has already successfully completed three Housing Fairs during 2001, 2002, 2003, 2004 & 2005 at Dhaka Sheraton Hotel Complex. To foster the growth of Real Estate Sector REHAB plans to organize Housing Fair abroad for the Bangladeshi individuals who are living different countries of the World to buy apartment, land and commercial spaces in their home country. Accordingly, the first - ever Housing Fair abroad organized by REHAB on August 2004 at Quality Hotel Hempstead, 80 Clinton Street, New York, USA. Accelerating urbanization has become tremendous problem to face for the country. The present rate of urbanization is 5-6% annually 1 which is really alarming. About 25% of Bangladesh is now living in urban areas and 34% will be living by 2015 1 & 50% by 20252. There is acute shortage of housing supply in all urban areas and it’s increasing with current demand of 600,000 to 800,000 units all over the country. Particularly in Dhaka this demand is estimated at 60,000 units of real estate apartments combined with 200,000 units of replacement plus backlogs1. Dhaka is currently growing very fast compared to other. Name of the Association: Real Estate &Housing Association of Bangladesh Year of Establishment: 1991 No. of Member in 1991: 11 No. of Member in 2008 (January) : 508 4.3 Bangladesh Market: some Key Indicators Growing Scenario: Real estate sector in Bangladesh is in a growing situation. From 1994-98, over the last 13 years, Bangladesh real estate sector grew at an average of 3.64% reaching the peak at 3.87% in 1999-00. Though it had a fall in 2000-01, there was recovery in 2001-02. For the last 6 years this sector grew impressively and showed a smooth rising trend again it fall in 2008 Real Estate Share of GDP – 2004-08

(%)

India Bangladesh USA Malaysia Source: Bangladesh Economic Review 2008 http://www.hdfc.com/23032008.htm, Executive Intelligence Review:” Fannie and Freddie were lenders”: U. S. Real Estate Bubble Nears Its End, by Richard Freeman, June 21, 2002 http://rozwat.com/pages/science_fin_re_article002.htm and Department of Statistics, Malaysia

7.00 8.90 16.00 15.09

The comparative scenario of GDP shows a steady 6% growth for Bangladesh. The real estate experts have expressed the opinion that as GDP of Bangladesh is still below that of other South Asian Countries, Bangladesh has more to grow which can be fostered by the continuous increase in the share and growth of real estate sector in the country. The contribution of real estate and construction in GDP of Bangladesh was 16.20% in 1994-95, which became at 16.69% in 2000-01 and attained 17.30% in 2006-0. Compared to India, Bangladesh real estate sector economy is contributing more to the country’s GDP. But Malaysia – one of the most rapidly developing countries has the share at 15.09% while USA has about 16%. This picture of Malaysia and USA shows that real estate sector can contribute more to country’s GDP. Therefore the real estate sector in Bangladesh has huge scope to grow.

Share (%)

Real Estate & Construction Share of GDP

Year The persistent increase in the real estate sector indicates that real estate activities have been rising which strongly supports more future growth. 4.4 A positive notion for Bangladesh Market The positive trend of the neighboring countries with the global expansion in the real estate sector also shows a growth opportunity. According to the above graph and past record of INDIA & USA we see that the real estate sector market experiences an average rise of 5-10 years if it is started once. In Bangladesh, before 1985 people in Dhaka city never thought to buy an apartment for living. Before 1995 people would have thought twice buying an apartment. But in the last couple of years the interest in apartment buying has increased rapidly. The boom in Bangladesh real estate market took place between 1988-1991. But it

faced fall in 1991-1992 gaining rise in 1993-1994. From 1995-1998 there was not so high growth but the market was stable. From 1999 to 2004 it has been growing rapidly caused by huge household demand, lack of enough land, rapid urbanization etc. in Dhaka City. The present rate of urbanization is 5-6% annually. About 25% of Bangladesh is now living in urban areas and 34% will be living by 2015. Only 40% of the people of Dhaka city have housing facilities with standard or below standard. Thus from the comparative analysis experts assume that according to the trend of the global market & neighboring countries the growth of housing demand will stay for next couple of years more. Main reasons for positive expectation have been presented evidently in the following section. 4.5 Reasons for positive expectation Increasing Urbanization Statistics & studies show that in 2000-2015, urban growth rate has been expected to be at an average of 3.7% for Bangladesh. India â&#x20AC;&#x201C; one of the most attractive markets for global real estate is expecting 4.9% growth of urbanization. Moreover where India is estimated to have 36% people living in urban areas by 2015, Bangladesh is expected to have 34% Thus in South Asia, Bangladesh holds the second position in terms of urbanization rate & proportion of urban population. This scenario tells that, as India is a rapidly growing real estate market for the world, Bangladesh also may attract more real estate investors and have more growth in this sector. By 2010, Dhaka is estimated to have about 20 million people that show about 55% estimated growth from 2000. With this amount of people Dhaka is estimated to be the 5th largest city in the world by 2015. This fast urbanization needs enough accommodation and housing supply, which is expected to create a huge market for the real estate sector in Bangladesh. Urban growth Rate Population Projection (%) 1975 2000 2015 Bangladesh 9.0 25.0 34.0 India 21.0 28.0 36.0 Nepal 5.0 12.0 18.0 Srilanka 22.0 24.0 32.0 Source: Making Cities Work, Urban Fact Sheet, USAID

Projected Growth 2000-2015 3.7 4.9 2.7 3.1

Annual

Average

Urban Population % Urban Urban Annual Growth Rate Area Based Dhaka Chittagong Khulna Rajshahi Source: Rural and Urban Management, June 2004

Urbanization Data of Bangladesh 1970 1980 1990 2000 5,059 12,713 21,750 34,354 7.6 14.9 19.8 25.0 7.8 5.8 4.7 4.3

2010 52,223 31.1 3.7

(In '000) 2020 74,432 37.7 3.0

1,474 3,257 6,621 12,519 19,393 * 693 1,332 2,265 3,651 5,389 * 325 632 973 1,442 2,081 * 108 238 517 1,035 1,676 * Development Case Study- Bangladesh, Oxford Policy

Rising House rent House rent has been increasing in Bangladesh since 1994 at high rate. In 1994 and 1999 the inflation rate in house rent was around 25%. Though in the recent times this inflation has been a little bit lower, still in 2008, statistics shows increase of house rent at about 10% in the country. According to the real estate participants, the inflation in the house rent is encouraging to people to buy apartments not bearing the increasing expenditure of house rent.

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

0.00% 1994

%Iincrease in House Rent

Rate of inflarion in House Rent

year

Source Consumers Association of Bangladesh (CAB) Research Report 2008 Easy and Available Financing: â&#x20AC;˘

Financing the apartment purchase for individual has become more easy and available. In 1952 Bangladesh House Building Finance Corporation (BHBFC) was established as government organization to finance the middle-income household civil servants which were the first housing finance institution in Bangladesh.

•

Interest rate is competitive ranging from 14% to 16%. Maximum amount can be financed is BDT 5 million to 6 million with maximum 20 years repayment option, which varies with the different financing institutions. Loans can be taken to buy apartments or for construction purpose in any part of the country. Now there are a number of private specialized housing finance institutions, financial institutions and banks, which provide housing, finance facility up to 70% to 80% of the value of the house or apartment.

Inadequate and costly land: • •

• •

Researches indicate that only 30% population in Dhaka city has occupied already more than 80% of residential areas with human settlements and supportive infrastructure1 Economists and real estate experts states it as highly significant and thus land is becoming increasingly inadequate to provide individual housing solutions. Moreover land is quite unavailable in Dhaka at suitable location for individual housing fulfillment. For huge demand and inadequacy of land, price of land is very high in the urban area according to the real estate participants. This is making more people inclined to build and share apartments.

Targeting the middle class: • • •

Studies reveal, in Dhaka city only 5% of the population is in high-income group. Thus 45% of the total population falls into the middle-income group and the rest 50% in the low-income group.1 Economists and real estate participants see the middle-income group as a huge market for the real estate sector. Builders have started building apartments for middle-income class of 600-900 sft. The large unsatisfied middle-income class is expected to be boosting market for the real estate business. 1. Asian City Development Strategies, Fukuoka Conference 2000

Encouraging in Remittance Flow: •

•

The Government of Bangladesh has declared the foreign remittance inflow through banking sector as tax-free and any purchase of fixed assets by Non Resident Bangladeshis will not require producing any Tax Identification number. It increased remittance inflow in Bangladesh in the recent years. According to the economists, non-resident Bangladeshis are vital investors for the real estate sector in Bangladesh, which is continuously supporting it to grow.

Other Issues: • •

There is hazards customers face in purchasing lands, which encourages them to buy apartments rather than lands. Construction & maintenance of buildings require spending huge time and energy, which make the people reluctant from building houses.

• •

The influence of western culture & housing design is attracting people more to buy apartments These reasons also are contributing to the decision of individuals to buy apartments.

Population growth trend and Demand Analysis Now in Bangladesh the demand for residential real estate unit is rapidly increasing. The current urbanization rate is 5-6% and 50% people will be living in cities by 2025 according to experts. In the Dhaka City from 1991 the urban population density has increased by about 79% to 2004. It was 4795 persons/sq. km in 1991 and 8573 persons/sq. km in 2004 1. The population growth in Dhaka city is shown below in Graph.

Graph : Population Growth Trend in Dhaka City

Population growth in Bangladesh

25 19.68 16.45 13.21

15 9.9 10 5

6.9 1.68

3.43

0 1974

1981

1991

2001 2011(E) 2021(E) 2031(E) Year

Population in million

Population (in million)

200 180 160 140 120 100 80 60 40 20 0

189.87 166.52 143.17 123.1 76.4

1981

89.91

1991

2001

2011(E) 2021(E) 2031(E) Year

Source: REHAB Annual Report 2004, 1974-2001. Trend Analysis using excel

Population is increasing rapidly in Bangladesh. Dhaka – the mega city is in very faster rate in population increase. This rapidly increasing people need more housing facilities. In the above graph it is noticeable that the house rent in Bangladesh in an increasing condition. More and more increase in house rent implies that people would become less interested to stay in rented house and would try or tend to buy own home. This is also increasing the demand of apartments in Bangladesh especially for the middle or upper middle class group of the society. This huge lift up in the urban density & rush of the people to Dhaka city has created great demand of accommodation and housing services. Moreover the real estate developers have started targeting the middle-income groups in the last few years to sell apartments. As the major portion of the society is in this group the demand has got to be high. According to REHAB there is demand of about 60000 residential units plus 200000 units of backlogs and replacements every year. But REHAB members can supply only 5000 to 6000 units each year. Now in this intense situation of rapidly growing demand the existing number of

developers cannot satisfy the current demand. This scenario ensures us a rising demand oriented situation in future as the gap between demand and supply is increasing. 5.1 Reasons for Development of the Industry : The main reasons why real estate business developed in Dhaka city are as follows: 1. 2. 3. 4. 5. 6. 7.

Scarcity of open space in the important areas of the city. Hazards of purchasing land. Hazards of construction of building. Rapid increase in population of Dhaka. Decrease in the rate of bank interest. Price of land and apartments is increasing day by day. Rent of the apartments is comparatively higher than the rent of privately constructed flats. 8. Open Market Economy. Remittance of foreign currency is very easy. 9. Security. 10. Service facilities such as garbage disposal, central satellite TV connection, apartmentâ&#x20AC;&#x2122;s services saves time, roof top facilities, lift and so on. 5.2 Size and Contribution of the Real Estate Sector: The size of the real estate sector and its contribution to the economy in terms of employment generation, accrual of investment, contribution to exchequer, output trends and linkage contribution of this sector are stated bellow: i) Employment Generation The real estate sector at present employs about one million people, either direly or indirectly involved about 30 lac people in the sector. According to the Labor Force Survey (LFS), in 2006 5.5% of the labor force was engaged in construction where as for 1999-2000 it was 2.1% and 1995-96 it was 1.8%. ii) Investment Recent information concerning investment in the housing sector shows steady growth both absolute terms and as a percentage of total private investment and GDP. During the first three years of the fifth Five Year Plan period, the investment in housing and construction was US$ 1273.65. According to this trend till 2007 the investment I housing & real estate sector will be more than 2500$USD. (CPD). iii) Contribution to Exchequer The keynote paper indicated that the contribution of the real estate sector to the exchequer is a substantial one. Various revenues like VAT, registration fees, utility connection fees etc. generated in the real estate sector amount to about Tk 36 crore per year. Regarding payment of corporate income tax of the real estate companies no ready information was available. iv) Output Trend During the peak years of the early 1990s, over 3,000 apartment units were built by developers every year. Today around 10,000 units are built, but recent time this trend has declined due to delayed delivery of apartments by an average of six months, economic downslide, global recession, and the poor law and order situation.

v) Linkage contribution The real estate sector has also made substantial contributions to the growth of a host of backward and forward linkage sectors which include Rod, Cement, Bricks, paints, ceramics, aluminium, furniture, consultancy and many others. In this context, he provided examples of catalytic influence of the real estate and housing sector in development of linkage industries whereby the sector is immensely contributing to employment and the GDP. Those include Bangladeshi state-of-the-art ceramic industries, Thai and Kai aluminum, More than a dozen paint industries, A large number of furniture making and interior design companies, An exponentially growing cement sector, which is helping the country to attain self-sufficiency in this important input. 5.3 Market Structure : About the market concentration in the real estate sector Real Estate business, especially apartment projects, took off in the Dhaka City in the late 1970s. From the early 1980s the business started to flourish and showed robust growth. At present, more than 400 companies are active in the real estate business in the country. About 95 per cent of this business is still dominated by the top 10 companies. The market is highly segmented, primarily based on location, price of the land and size of the apartments. We stated that the main reasons for the development of real estate business in Dhaka city were: • • • • •

Scarcity of open spaces in important parts of the city. Hazards of purchasing land. Rapid increase in the population of Dhaka. Fiscal-Financial incentives such as the decrease in the rate of bank interest. Restriction of remittance flows which financed the sector.

Rent of apartments had been relatively high compared to the opportunity cost of privately constructed flats. Service facilities which are enjoyed collectively, such as garbage disposal facilities, central satellite connection, security, roof top facilities and lift, save time and reduce costs. Legal and Regulatory Framework. The legal and regulatory framework concerning the housing and real estate development includes laws such as Building Construction Act (1952), Town Improvement Act (1953), Dacca Master Plan (1959) and Building Construction Rules (1984). These laws are not adequate to facilitate resolving habitation problems. Other limitations of these rules included a lack of appreciation about the differences between planning and building rules, the outdated nature of such rules and the inability of the rules to address the demands of an expanding city and targeting only the middle and high-income groups. There is no standard housing plan for Metro Dhaka. The Master Plan (1959) was, in general, prescriptive in nature, with particular public provision proposed on an individual basis for specific places, with exceptions made for schools and open spaces for which generous standards were proposed. The rigid land use zoning of the Master Plan (1959) is out of date as a basis for development management. The Bangladesh National Building Code (1993) which was intended to ensure safety in construction has not been made mandatory. The Building Construction Rule (1984) demands a great deal of information from the applicant, but imposes very few compliance requirements on him. The procedures involved in the enforcement of law such as taking permission before development and construction were felt to be cumbersome. It was found that a developer has to apply to eight different authorities including WASA, DESA, Titas, Fire Department, civil aviation authority and ward commissioner for permission, which costs

money and time. Moreover, the information solicited by the agencies relate mainly to ownership, rather than providing guidance for strategic and development control. Since the housing plans are not detailed, there is ample scope for breach of rules. Lack of adequate staff capacity of the oversight agencies limits monitoring and leaves scopes for non-compliance with the rules and regulations. Two laws which were expected to be enacted, namely Private Housing Policy â&#x20AC;&#x201C; 2002 and Multi- Storied Building Construction Policy â&#x20AC;&#x201C;2002, will ensure risk-free construction. Financing the Housing Sector is not found adequate because of high interest rates and limited sources of funds. This is true both for the financing of the developers and the purchasers. The state-owned House Building Finance Corporation (HBFC) is burdened with bad loans, and loan disbursement has tended to be low in recent years. Delta-BRAC Housing came into this market as private-NGO collaboration, but their interest rates are as high as 16 per cent which is higher than even that of the HBFC by one per cent. The major financing organizations for housing are the HBFC and the Commercial Banks while financing by other organizations like Delta-BRAC, National Housing and Micro credit lenders are insignificant. Budgetary Measures in FY2003 Budget Unlike the past fiscal budgets, the government through the FY 2002 - 2003 budget provided a number of incentives to boost the real estate sector of the country. These measures include exemption of registration fees on land development, land sale and apartment transfer which is expected to bring down the overall tax in this sector to the level of 13.5 per cent, waiving of registration fees in cases where the apartment is resold within 5 years of buying and halving of property transfer tax at source. Estimates show that these measures have saved an average buyer about Tk 5 lac on a Tk 45 lac worth apartment. Dr Bhattacharya observed that if tax is paid at a flat rate per square feet of apartment, unaccounted for funds can be mainstreamed. Reflecting on the response of the sector to these new measures, after a protracted slump these measures have been able to infuse new hope. He also appreciated the reduced registration cost and other related costs, which resulted in the recent increase in the number of apartments which were registered. Estimates showed that in the first six months of Fiscal Year 2003 budget 1,500 apartments were registered over and above the normal number. Though these apartments were purchased earlier, many of the buyers did not get them registered because of the high cost involved. Thanks to the increase in apartment registration, the government could mobilize an extra amount of about Tk 41 core as non-NBR tax. He, however, mentioned that though the provision to allow investment of unaccounted money generated half of the additional income from registration fees, amounting to about Tk 20 core, the incentive itself has raised questions as regards the ethics of such measures. Whilst appreciating the beneficial measures taken in the budget, a number of additional budgetary interventions which include: 1. To keep up the impetus, the current tax breaks may continue. 2. Registration fees are perceived to be still high and can be reduced by making provisions for realistic land price disclosure. 3. Fiscal support for linkage industries can lead to reduced raw material cost. 5.4 Impacts of Private Real Estate Developments on Patterns of Urbanization Findings & Recommendations : Actually the private real estate entrepreneurs are providing residential facilities for the higher income group. Profit maximization is their only motto. Hence, huge lack of services and

facilities are observed in the recent real estate schemes. Consequently, several unexpected and disastrous impacts are observed. In observed land use composition with to the standard are stated in the table. Land Use parameter % of planned total land area % of actual land use area Residential

40-65

80-85

Community Facilities

5-10

2.5-3.5

Road & Streets

20-30

10-12

Open Space (parks 5-10 and playground)

Shopping

5-10

Here it is seen that for maximizing the profit the private developers are selling more than 80% of the total project area. In Bangladesh the housing problems is basically for the lower income people, but the private real estate developers are developing the land for the higher income people. Due to poor load bearing capacity of soil, high-rise buildings are very difficult to build in places being developed by real estate companies at present. Hence, low density of residential area is resulting in the form of inefficient utilization of the land resources. Urban area is expanding horizontally without maintaining any guidelines. Where selecting the potential land for private land banking, the urban expansion zone was given utmost priority. The expansion zone is the potential urban area where services and utility facilities are supposed to expand within short period of time. When this area is facilitated with the utility and services, the land price also increase substantially. This is a land speculation process may be called private land banking which has created a belt around the city. There are several impacts of this process: To accommodate the incoming rural to urban migrants, the city needs to expand. But this belt is creating hindrances for the city expansion. The Inner city is facing tremendous pressure of migration. Due to the skewed distribution of land, people are forced to live in slums and squatters. At the same time the land value is also increasing. The result is a potential land price bubble in this area. People are purchasing the land, keeping them vacant for a few years to get more benefit while selling the same. Hence, city is expanding with rural nature and rural areas are losing its identity. City is forced to expand to a direction in a linear nature through the gaps of the private land banks which is not either expected or planned before. Several questions can be raised regarding the positive impacts of this process. Through creating tremendous pressure on the core area of the city whether or not this process can maintain equity in the distribution of land. Unfortunately the answer would be negative as the land ownership pattern is really skewed and complex. Moreover large parcels of lands are occupied by the government organization like Cantonment, Bangladesh Railway etc. at the heart of the city which is either left vacant or under utilized.

Of course urbanization is always essential for economic diversification and countryâ&#x20AC;&#x2122;s long term sustainability. From this point of view, these real estate developers are patronizing urbanization alternatively helping Bangladesh in its economic sustainability. But where urbanization is itself a burden for Bangladesh; how far this process can create diversification that is questionable. The unexpected and unplanned growth of residential areas is creating extra problems for the city managers. There is no link between the existing structure plan and the real estate developments. Consequently these projects are creating sheer stress on the planned development of the city. This is also creating polarization in the demand of services facilities. 5.5 Findings & Recommendations Right to Housing for all The rich people housing is not a problem. If strengthening is the purpose, middle and low income groups should be targeted. Due to the high price of land, most of which is privately owned, it has become very difficult to include middle and low-income people in any housing scheme. Thus providing shelter for low-income people without subsidies has become quite difficult. Though provision for middle and low-income people is possible in government owned khas land, this process in many cases became unsuccessful because it was observed that even if quality shelter is provided for low-income people, ultimately those facilities are enjoyed by the high-income group. Inclusion of relevant experts in decision-making is required in this regard and the private sector should also be involved in this process. The real estate sector should incorporate the idea to set an example in the world by providing housing for the poor. He also regretted that there are many examples of allocating land at nominal prices but such examples are not available for low-income people. In the absence of a land policy it can not be made clear how land can be made available for new uses and how sharply increasing land prices can be controlled. For low and middleincome people the problems of land scarcity and high prices were of continuous concern. The price of one katha (i.e. 720 sft) of land being around Tk. 50 lac has put low and middleincome people out of the housing market. Though 30 per cent of people living in Dhaka are slum dwellers there is no housing policy for them. The developers develop for profit. If proper attention is not paid, the number of slum dwellers will increase rapidly. In the eastern fringe of Dhaka all the lands up to the Balu River are being grabbed, and whatever development is taking place in that area is not for lowincome people. The purchasers are constrained by their capacity especially because of the high cost of borrowing.

Primary Data Analysis Customers: 5.5.1 45

0 East er n

BTI

A d vance

A sset

Shel t ech

B ay

A ssur ance

R ang s

N avana

B ui ld i ng f o r F ut ur e

U r b an

Pi nk C i t y

A min M o hammad

Question- 5.5.2 In your opinion, at present which company is ensuring superior product quality? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company

Number of votes obtained

PINK GARDEN CITY

BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

8 7 16 8 6 9 10 7 7 6 5 6

0 East er n B ay Pink C i t y

BTI A ssur ance D o m i no

A d vance R ang s A mi n M o hammad

A sset N avana

Shel t ech B ui ld i ng f o r F ut ure

Question-5.5.3 Which companyâ&#x20AC;&#x2122;s brand name is easier to memorize? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay

Number of votes obtained 5 10 9 45 4 3

Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

4 5 3 2 4 3 3

0 East er n

BTI

A d vance

A sset

Shel t ech

B ay

A ssur ance

R ang s

N avana

B ui ld i ng f o r F ut ur e

U r b an

D o m i no

A mi n M o hammad

Question-5.5.4 Which company offers comparatively reasonable price having the appropriate product quality? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance

Number of votes obtained 10 8 7 13 5 6 9

Rangs Navana Building for Future Urban Dom ino Amin Mohammad

12 6 4 5 9 7

Eastern

BTI

Advance

Asset

Sheltech

Bay Urban

Assurance Pink City

Rangs Amin Mohammad

Navana

Building for Future

Question-5.5.5 Which company is pioneer in introducing newer products consequently? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay

Number of votes obtained 3 5 9 14 7 10

Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

8 12 6 7 5 11 8

0 East er n

BTI

A d vance

A sset

Shel t ech

B ay

A ssur ance

R ang s

N avana

B ui l d ing f o r F ut ur e

U r b an

Pi nk C it y

A min M o hammad

Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 6 8 7 18 6 7 8 9 7 6 5 6 7

East er n

BTI

A d vance

A sset

Shelt ech

B ay

A ssur ance

R ang s

N avana

B uil d i ng f o r F ut ur e

U r b an

Pink C i t y

A mi n M o hammad

Question-5.5.6 Which companyâ&#x20AC;&#x2122;s Executives are smart enough to communicate with you? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 2 4 8 24 6 4 10 8 5 6 3 15 5

0 East er n

BTI

A d vance

A sset

Shelt ech

B ay

A ssur ance

R ang s

N avana

B uil d i ng f o r F ut ur e

U r b an

D o m i no

A mi n M o hammad

Question-5.5.7 Which companyâ&#x20AC;&#x2122;s Executives are more active in responding customerâ&#x20AC;&#x2122;s suggestion? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 2 10 8 24 4 4 12 7 6 4 3 9 7

0 Eastern

BTI

Advance

Asset

Sheltech

Bay

Assurance

Rangs

Navana

Building for Future

Urban

Pink City

Amin Mohammad

Question-5.5.8 Which company operates the most innovative marketing approaches frequently? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 3 6 7 24 5 4 11 7 8 6 4 10 5

0 East er n

BTI

A d vance

A sset

Shelt ech

B ay

A ssur ance

R ang s

N avana

B uil d i ng f o r F ut ur e

U r b an

Pi nk C i t y

A mi n M o hammad

5.5.9Which Company committed to on time handover the Apartment? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 3 5 6 51 4 3 7 4 3 4 2 4 4

55 50 45 40 35 30 25 20 15 10 5 0 E a s t e rn

BTI

A dv a nc e

A sset

S he lt e c h

B ay

A s s ura nc e

R a ngs

N a v a na

B uilding f o r F ut ure

Urba n

P ink C it y

A min M o ha m ma d

5.5.10 Which Company committed to post handover service? Votes casted against the above question from 100 customers are shown as following Name of the Real Estate Company PINK GARDEN CITY BTI Advance Asset Sheltech Bay Assurance Rangs Navana Building for Future Urban Dom ino Amin Mohammad

Number of votes obtained 3 6 7 45 5 4 6 4 3 6 2 6 3

Eastern

BTI

Advance

Asset

Sheltech

Bay

Assurance

Rangs

Navana

Building for Future

Urban

Pink City

Amin Mohammad

5.5.11 : Result in Semantic differential model :

All the companiesâ&#x20AC;&#x2122; market images according to the customerâ&#x20AC;&#x2122;s opinions are shown by a semantic differential figure where ten point scaling technique was used. Output drawn in ten point scale Number of votes obtained Ten point scaling technique

Product Emphasize

QualityProduct

MemorizeBrand Name

QualityPrice &

ProductsNewer

Availability

Promotional Materials

Smart Executive

CustomersResponse to

Innovative Marketing

Timely Handover

Post Handover Services

Criteria

Pink Garden City

0.4

0.5

1.0

0.3

0.4

0.6

0.2

0.3

BTI

0.5

0.8

1.0

0.8

0.5

1.1

0.8

0.4

1.0

0.6

0.5

0.6

Advance

0.6

0.7

0.9

0.7

0.9

1.0

0.7

0.8

0.7

0.6

0.7

Asset

4.5

1.6

4.5

1.3

1.4

0.6

1.8

2.4

5.1

4.5

Sheltech

0.3

0.8

0.4

0.5

0.7

0.5

0.6

0.4

0.5

0.4

0.5

Bay

0.3

0.6

0.3

0.6

1.0

0.3

0.7

0.4

0.3

0.4

Assurance

0.5

0.9

0.4

0.9

0.8

0.5

0.8

1.0

1.2

1.1

0.7

0.6

Rangs

0.6

1.0

0.5

1.2

1.0

0.9

0.8

0.7

0.4

Navana

0.5

0.7

0.3

0.6

0.5

0.7

0.5

0.6

0.8

0.3

0.6

0.7

0.2

0.4

0.7

0.6

0.4

0.6

0.4

0.6

Urban

0.4

0.6

0.4

0.5

0.4

0.5

0.3

0.4

0.2

Dom ino

0.4

0.5

0.3

0.9

1.1

1.8

0.6

1.5

0.9

1.0

0.4

0.6

Amin Mohammad

0.4

0.6

0.3

0.7

0.8

1.3

0.7

0.5

0.7

0.5

0.4

0.3

Name of the Real Estate Company

Building Future

for

Eastern

BTI

Adv ance

Asset

Bay

Assurance

Rangs

Nav ana

Urban

Dom ino

Amin Mohammad

P e

H an d ov e

vi ce s

tin g

ov e

m er s

an d

ria l

ut iv e

us to

it y

bi lit y

at e

xe c

Ti m el y

du ct s

ila

m ar

va ti

po n

na l

A va

Q u

em or iz e

iz e

ua lit y

ha s

m p

du ct

ric

m ot io

In no

os t

N am e

du ct

N ew er

R es

B ra

Semantic Differential Model (Ten point Scaling Technique)

Sheltech

Building for Future

5.5.12 Output drawn in ten-point scale : Output drawn in ten-point scale: Only for Pink Garden City Housing Estate Ltd. (Customers point of View) Summation of scaling ranks of all criteria (12): SL No Criteria Point 01 Product Emphasize 4.5 02 Product Quality 1.6 03 Brand Name Memorize 4.5 04 Price & Quality 1.3 05 Newer Products 1.4 06 Availability 0.6 07 Promotional Materials 1.8 08 Smart Executive 2.4 09 Response to Customers 2.4 10 Innovative Marketing 2.4 11 Timely Handover 5.1 12 Post Handover Services 4.5 Summation 32.5 Overall position in the scale which shows Pink Garden City 32.5/12= 2.71 Housing Estate Ltd.’s market image 6. 1 Problem definition: Background to the problem: Pink Garden City Housing Estate Ltd. had been operating a lot of market promotion activities, deeper research and development, proper employee training, efficient management team over the years. Their current market share is high. At present the company is considering the possibilities, which may help to increase its market share largely. For why the authority of its management is feeling to know the insights and images of its market and other companies positions in the market. Data analysis: The project was done by primary data analysis as the information’s collected from customers by conducting direct interviews and those information’s were interpreted as the projects major findings.

5.6 The Profile :

Year of Establishmen Product Line

72 Mohakhali C/A, Dhaka-1212 91 Gulshan Avenue Dhaka-1212 1999 Apartment

Turnover in Taka in 2007

1800 Million

Number of Employee Market segment

2000 - High Class - Higher middle class

Corporate Office Office Of Management Services

Gulshan,

6.2 People : Pink Garden City key success factor An organization is as good as its human resources. Based on this very basic fundamental philosophy, Pink Garden City believes that human beings are its most valuable assets and prime movers. Pink Garden City also believes that the potential of human resources is limited only to the extent to what one can put to use. Realizing this, Pink Garden City makes considerable investments in attracting and developing talent ant and dynamic professionals, not only to do their job flawlessly, but also to give them an environment, which fosters innovation and entrepreneurship. The extent of empowerment that is enjoyed by our people at various levels of the organization enables each employee, from the very bottom to the top, to contribute to the overall momentum of the company. The employees of Pink Garden City. are differentiated not just on the strength of their professional competence, but also on the basis of individual resilience of character and the spirit of enterprise. In the face of today’s competitive business environment, Pink Garden City develops and retains high achieves and a motivated workforce. We create an excellent working environment for them that reflect and promote a high level of loyalty and commitment, both to our employees and from our employees. At Pink Garden City, good work is always expected and rewarded. Over the years, the company has been successful in providing an environment and culture that nurtures individual growth and development, and allows people to attain personal fulfillment as well as achieve company objectives. It is our competent workforce that provides us with every reason to be optimistic about the future. 6.3 Making a Commitment to the Customer : Pink Garden City professionals are dedicated to providing you with the best service throughout the real estate transaction! Take a look at the following pledge certificates to detail the services you can expect. Service Pledge • • • •

Dedicate myself to making the process of buying your next home as easy and as successful as possible. Respect you, your needs and be honest and forthright. Hold your best interests in the highest regard throughout the process. Value and respect your time, being as efficient and effective as possible.

• • • • • • • • • • • • • • • • •

Understand your needs and respond quickly. Consult with you to determine your particular real estate wants and needs. Use my base of experience, knowledge, tools and the most up-to-date training to best serve you. Explain each step of the process and act as a guide to help you make most informed decisions. Disclose material facts known about the property and respond to questions concerning the property. Help determine your purchasing power, while explaining alternative methods of purchasing and/or financing. Provide an action plan for locating the right property, at the right price and terms, in an acceptable time frame. To the best of my ability, continuously show you new properties that fit your needs. Provide a Customized Home Search Plan for locating the right property for you, only showing you properties that will best meet your needs and in accordance with Fair Housing regulations and ethical real estate practices. Use the most comprehensive database of listings in the area, to help you find the home that best meets your needs, whether that be the Multiple Listing Service and/or other methods. Provide the resources of Century21.com that offers thousands of listings, allowing you to easily review homes that are right for you, access in-depth information on neighborhoods, and additional information.* Use my knowledge and expertise to promote the most valuable purchase on your behalf. I will assist you in evaluating the market value of properties that are of interest to you and help you obtain the most advantageous price and terms. Provide access to financing that meets your needs, at the lowest possible rates available to you. Advise and assist you in completing your purchase agreement, and present your offer with integrity in a light most favorable to your needs. Upon acceptance of an offer by you, pre-settlement (escrow) activities throughout the closing process will be monitored as permitted by law or local practice. Offer to provide you with information regarding other professionals (e.g. attorneys, Tax consultant, Govt. authorities) that may assist you during and after your move. Utilize the Asset Developments & Holdings Ltd System to provide you with in the area of your new home, to assist you further.

6.4 Exclusive Buyer Service: Consult with you to determine your particular real estate wants and needs. This includes providing information as to the advantages and disadvantages of the choices available to you, in order to help you make informed decisions. Maintain your confidentiality and represent your best interests throughout your buying process. Help you define your financial ability to purchase, explain alternative methods of purchasing and financing, and assist in arranging mortgage financing. Provide an action plan for locating the right property, at the right price and terms, in an acceptable time frame.

Search using available methods to locate the property that will best meet your needs and wants. This may include properties listed with our office, offered through other real estate companies, as well as unlisted properties. Show properties that meet your specifications, in accordance with Fair Housing Regulations and ethical real estate practices. Disclose material facts known about the property, and other relevant information that is likely to affect your ability to obtain the right price and terms. Assist you in evaluating the market value of properties that are of interest to you, and suggest negotiating strategies to help you obtain the most advantageous price and terms. As your advocate, advise and assist you in completing your purchase agreement, and present your offer in a light most favorable to you. Refer you to other professionals (attorneys, accountants, inspectors, mortgage lenders, etc.) for information or assistance as appropriate. Upon acceptance of an offer between you and the seller, monitor all pre-settlement (escrow) activities throughout the closing process as permitted by law or local practice. Consult and communicate with you on a regular basis throughout your entire real estate purchase process. Recommend home warranty to protect you. 6.5 Customer Service : Huge amounts of money are on the line when people buy real estate and houses. Buyers and sellers need to trust real estate agents, and customer service is the key to generating trust and sales in real estate. "Service is king, and it can make or break a company. "Nothing beats knowledge, experience, problem solving and responsiveness. Combining that with good manners usually wins a customer for life. It is one thing to talk about excellent customer service, but it is another to demand it and maintain it as a key element of an organization's culture. The first reaction to customer complaint is a negative one. No matter how much youâ&#x20AC;&#x2122;ve tried, some of them will not be satisfied. But you should try and see customer complaints in a positive light. Complaining clients are clients who care about getting better service. They want to keep working with you. Therefore, instead of seeing comply as a blow to your business, try and see them as valuable feedback. Importance of Customer Service Whatever your business is customer service can make or break your business quickly. From a real estate organization to the kid that delivers your newspaper customer service should be your top priority. If your customer service skills leave a lot to be desired you will lose out on referrals as well as repeat business. Customer service is the key to any business because bad word of mouth advertising travels ten times faster than good word of mouth. Here is a perfect example. If you go to get your hair cut and it is terrible. The first ten people that will listen to the story, you will be sure to tell them where not to get their hair cut. However, if you liked your haircut you will not go around boasting about it. The first few people that notice and compliment you on a nice haircut, you will be happy to refer them to the nice girl at the mall that cut and styled your hair.

Same goes for where you ate lunch. If you liked the food but not the customer service you will be sure to tell people where not to go before you tell them a nice place to go. It is just human nature that makes a lot of people tend to be this way. So let’s start off on the right foot and make a good customer service impression as a real estate organization for your customers. Smile The most important thing that you can do first and foremost is smile. Sounds so simple doesn’t it? Have you ever heard, “It’s all in the delivery?” It is so very true. Take the time as real estate agent to smile and use eye contact when speaking to your customer. Acknowledging your customers with courtesy, eye contact and smiles makes them feel important and open to you. They will feel the need to be less guarded. Customers will be more likely to share what their needs are and truly what might be holding them back from using your services today. Customer service is about integrity and a positively professional attitude towards your customer. Don’t be a glass half empty real estate agent sales representative. Be the glass is have full customer service representative. Listen to what it is they need and if you can help them then do it. If you can’t assist them refer them to someone who can help the assist them better with their needs. The customer will almost certainly refer you to someone they know or be back for another service or product that you do offer. By doing that for them, you just told them that you cared about them and their needs. The customer now trusts you and will know that you will be honest in what you can and cannot do for them. This is how long term customer relationships are built. Be Familiar with Buyer / Seller Needs If you are a real estate organization that has a customer that you helped to buy a home, you can get quality leads for your satisfied customer/client. You took the time to sit and earn their trust, they have told you their needs now it is time to go to work for them. Be committed to each individual client. Whether the client is a buyer or a seller, be accessible for them in a timely fashion. One thing you won’t want to do is to neglect one customer for another. Each individual customer or client should have your full attention. Make the best of the time that is given to you with each client. They will appreciate you for it and repay you with great word of mouth to your future clients as well as repeat business. 6.6 Six Steps to Remarkable Service : The fastest way to increase customer loyalty is by improving the quality of customer service. Coach employees to understand and work through these steps (every time) for customer loyalty and customer retention go through the roof. 1. Connect with customer 2. Discover what they want 3. Know what you can do 4. Do it 5. Follow-up

6. Thank them 6. 7 Achieving Customers Satisfaction: Service Quality and Customer Expectation of Pink Garden City In any kind of business, keeping a high quality is essential to stay in the market. And a successful organization like Pink Garden City. the service quality must be more than enough to drag as well as to keep the customers.

Reliability Reliability

Responsiveness Responsiveness Assurance Assurance

Service Service Quality Quality

Situational Situational Factors Factors

Product Product Quality Quality

Customer Customer Satisfaction Satisfaction

Price Price

Personal Personal Factors Factors

Empathy Empathy

Tangibles Tangibles Customer Perception and Satisfaction To serve with the best quality, reliability, which is the ability to perform the promised service dependably and accurately, must be maintained. Responsiveness, which is the willingness to help customers and provide prompt service, must also be maintained. This dimension emphasizes and promptness in dealing with customer requests, questions, complaints and problems. By hiring right (mainly theory X) kind of employee, this concept can be satisfied. Again, assurance is defined as employeeâ&#x20AC;&#x2122;s knowledge and courtesy and the ability of the firms and its employees to inspire trust and confidence. This dimension is likely to be particularly important for services that the customer perceives as involving high risk and/ or about which they feel uncertain about the ability to evaluate outcomes. So we must hire efficient employees. Then empathy is defined as the caring, individualized attention the firm provides to its customers. The essence of empathy is conveying through personalized or customized service that customers are unique and special. All customers want to feel understood by and important to firms that provide service to them. So empathy must be there. So if these points are ensured to have the best quality, the service quality increases itself. And this is very much important to achieve the goal of the organization. 6. 8 How To Pink Garden City Satisfy their Customers

Keeping customer satisfied is key to success and it doesn't matter if are selling products or services to external or internal customers. For improve customer satisfaction company perform the following ten activities. Understanding Make sure there is a thorough understanding of what customers really want. Use that information to follow up with actions and solutions. Access People want an ease of doing business. PINK GARDEN CITY offer multiple communication methods (phone, web, or call centre) and make sure the experience is speedy, efficient, and pleasant. Respect Customers want someone who understands and can respond to their needs. PINK GARDEN CITY always acknowledge customers and treat them with respect to earn their trust and their business. Personalize People like to feel special. Sending specific, personalized messages will help eliminate some customer's feeling of insignificance, help connect with those people, and help form a bond with them. Streamline Offer processes that are streamlined and automated, but also have available guidance or confirmation at the end of the automated process to ensure that the customers issues, orders, etc., have been resolved or fulfilled. Always have an option to escalate issues to a customer service Department. Track Information Create a knowledge base so customers do not have to repeatedly give their contact, product, or problem details. Target Use data to be proactive, but also use it for a targeted purpose. Do not try to sell the same widget or service to your entire customer base. Approach only those customers who are most likely to be interested. Empower Empower customer service department to resolve problems on the spot, including offering discounts or special services to retain customers who might otherwise head to a competitor. Easy Doing Business Find ways to make it so easy for customers to do business with you that switching to a competitor would be work for the customer. Interpret Need Note the difference between what customers say and do (customers say they want free shipping, but willingly pay for it with no complaints), and find ways to use that information so that everyone benefits.

6.9 Analysis of 4 P’s : In this modern era any kind of business the fastest way to increasing & keeping a high quality is essential to stay in the market. And successful organizations like Pink Garden City. are following the 4p’s as: Product Pink Garden City. is committed to provide to the living standards of the people. This commitments demands immense social responsibility of ensuring quality in terms quantity, purity, stability, safety, efficacy and presentation of the product. At every stage of the production, a stringent control mechanism involving raw material testing, in-process quality control, finished product testing as well as stability monitoring and documentation is maintained to ensure the highest quality product consistently. Price The market is highly segmented, primarily based on location, price of the land and size of the apartments. As a result Pink Garden City is today Bangladesh’s largest residential real estate company. We are dedicated to providing customers of real estate with the highest quality services possible so the price of Pink Garden City is higher than other competitors. Place In the face of today’s competitive business environment, Pink Garden City develops and retains high achieves and a motivated workforce. We create an excellent working environment for them that reflect and promote a high level of loyalty and commitment, both to our employees and from our employees. At Pink Garden City, good work is always expected and rewarded. Over the years, the company has been successful in providing an environment and culture that nurtures individual growth and development, and allows people to attain personal fulfillment as well as achieve company objectives. It is our competent workforce that provides us with every reason to be optimistic about the future. Promotion The ever-changing market place has fuelled has PINK GARDEN CITY determination to keep up with the changing times by constantly strengthening the information base, exploring new lines of business and expanding domestic. This prompted the company to undertake infrastructure development to build competitive advantage in order to retain its position as a leading real estate company. In the face of today’s competitive business environment, RHEL develops and retains high achieves and a motivated workforce. We create an excellent working environment for them that reflect and promote a high level of loyalty and commitment, both to our employees and from our employees. At RHEL, good work is always expected and rewarded. Over the years, the company has been successful in providing an environment and culture that nurtures individual growth and development, and allows people to attain personal fulfillment as well as achieve company objectives. It is our competent workforce that provides us with every reason to be optimistic about the future. The ever-changing market place has fuelled has determination to keep up with the changing times by constantly strengthening the information base, exploring new lines of business and expanding domestic. This prompted the company to undertake infrastructure development to build competitive advantage in order to retain its position as a leading real estate company. is committed to developing individual’s

human, technical and conceptual skills through various educational and a wide range of internal and external human resource development and job related training programs each and every year. At RHEL, a well-planned and structurally designed in- house training activity-involving sales, marketing and production etc. is conducted throughout the calendar year. These training programs are conducted by in-house resource persons on a regular basis and as per scheduled. RHEL employees also received training from Rapport Bangladesh Limited and Tack training international on the following topics: • • • • •

Time Management Customer care Customer relationship management Leadership Team building and leadership

6.10 qualitative researches: The project was based on the qualitative exploratory research because the company management wants to know the customer perceptions regarding their company’s and products insights, quality, presentations, brandings, features and amenities, business policy, customer’s opinions and so on. 6.11 ors considered • Direct interviews were taken by a questionnaire from all types of customers. • Randomly 100 customers were taken for interviews within the city. • Customers having the positions of Businessman, Banker, Multinational company’s executives, Doctor, Engineer, Consultant, Private company’s manager, high official etc. • Customers were fully ensured that their information’s against the questionnaire would preserve confidentially and would not be exposed anywhere. 6.12 gement decision problems • The problem confronting the decision maker. It indicates the product management decision maker what does he need to do? • Should newer products be introduced immediately? • Should the existing promotional program be changed? • Should the price of the product be changed? 6.13 Marketing research problems A problem that entails determining what information is needed and how it can be obtained. • • • • • • • •

What information’s needed? Quality of the product. Availability of the product. Brand name effectiveness of the product. Communicating effectiveness of all the companies. Social responsiveness of the companies. Employee’s efficiency of the companies. Promotional items of the companies.

• •

Customer’s weakness of the companies. Customer’s satisfactions of the companies.

6.14 Problems Without having any institutional backup, the interviewees might not be interested to provide appropriate data. Time limitation may become an important hurdle in revealing true situations during the study. How the information’s can be obtained The necessary information’s only from customers by direct interviews with questionnaires. The sample size of customers was 100 the technique was random sampling throughout the city. Approach to the problem The exploratory and qualitative research procedures are followed to conduct the project. That is why we was only assigned to collect all the information’s criteria regarding real estate market’s images from customer and insights and understanding of this market. Hence there was no option to conduct the conclusive research or any other research. Causes for the exploratory research: • • • • • • •

To provide insights and understanding of the real estate market to know the companies images. Information’s need is defined only loosely. The research process was flexible and unstructured. Sample size was small and no representative. Analysis of primary data is qualitative. Generally followed by further exploratory or conclusive research. Expert surveys.

Types of analytical model • Primary data analysis. • Cross tabulation model. • Graphical interpretation of cross tabulation. • Find outcome or result drawn from the semantic differential model. • Recommendation drawn from the overall project experience. The company should establish sound and effective communication channels with internal customer through electronic mail. Decentralized authority to prompt communication and decision. • • • •

The company should establish franchises in different location for prompt customer Care. Website needed for the convenient of the customers. Provide employee training. Establish incentives for frequent and repaid feedback on performance.

• •

Use appropriate technology to help jobs easier, more productive, less redundant & repetitive. Finally Pink Garden City Housing Estate Ltd. has the opportunity to increase its market share as its market image regarding the above survey found by 20.71 percent.

ii) Housing Ignored in Research It has been observed that research on the housing sector is quite inadequate, studies by academics are mostly theoretical with an academic bias; when they are conducted by developers, business gets the utmost emphasis; when the government themselves perform the study only the thoughts of the government are reflected. iii) Control over the Real Estate Sector About 95 per cent of the business in the real estate sector is controlled by 10 companies and 47.3 per cent of total private investment is in the housing sector. Accordingly he observed that, these ten companies have a large share of total private investment. In recent days, more and more companies and many corporate bodies with surplus capacity to invest have entered the real estate sector. They are buying hundreds of acres of wetland for filling and development. However, this will not contribute to a sustainable environment. iv) Dhaka – City of Migrants Though Dhaka stretches over a very small area and through in-migration alone its population is growing by 2.5 to 3 lac every year and currently totals 30 lac slum dwellers, an appropriate land policy is still missing. The draft housing policy formulated in 1991 projected that 3.1 million housing units for urban areas and another 2.1 million will be required for rural areas. Thus, the total requirement of new housing units is likely to exceed 5 million per year. However, in the paper the number was mentioned to be 4 million, which according to him was an underestimation. v) On the issue of Finance Growth of the real estate sector is not possible without proper financing being available to both the developers and purchasers. Cost of funding and cost of borrowing are major issues in this regard. At present, contribution of the financing organizations to the sector as a whole is quite inadequate and this is holding back its growth. Since the developers borrow money for a very short-term, the rate of interest is not much of a problem for them. Their problem is primarily with access to credit and delays in decision-making. In many cases developers are not properly follow the procedures for borrowing money from financial organizations. Three parties get involved in the process – the developer, the landowner from whom the land was leased and the one who buys the apartment. Thus, the legal aspects of borrowing become cumbersome. A simplified legal method should be established for all institutions and should be made mandatory. While selling apartments, the developers do not properly mention in their prospectus that the apartment is mortgaged against some borrowing. When litigation arises, in many instances the apartment buyers claim that during the purchase they were ignorant about the mortgage and bought the property in good faith. In many cases, adverse judgments were given which seem to be

reasonably correct. To avoid such complexities the financing organizations tend to avoid the real estate development sector and rather lend money to other sectors. The interest rate is so high that it is extremely difficult for a purchaser to pay the installments of the loan from the rental income. In many cases their projections go wrong because there are instances when the apartments remain vacant for months on end. Unless they have some additional capacity to repay the loan, they become a defaulter and it then becomes difficult for the financing organizations to manage the loan. So there is a need to restructure the housing loan. The specialized organizations which finance the housing sector have nothing to do with it, as they are borrowing from the banking sector at a 13 to 13.5 per cent rate of interest on an average. As per the provision offered by Bangladesh Bank, they cannot secure any deposit fund if its maturity is less than one year. The general preference of the depositors is to keep the money in the deposit for very short period though its renewal takes place on a roll over basis. He felt that Bangladesh Bank, as with other banks, should keep the maturity pattern flexible so that the potential investors can choose the most suitable deposit plan, which may be later used for housing loan. The buyers should get loans at lower rates of interest and with longer repayment periods. International financing organizations like WB, ADB, IMF etc. should also finance the housing sector development if some appropriate guarantor is available. This role can be played by the Bangladesh Bank. vi) Housing - Scope of Definition The definition of housing should not be limited to shelter or living space. Though in general terms housing is meant for shelter, in an academic sense housing entails house of many kinds comprising educational institutions, recreational centres, shopping centres, and many others. We donâ&#x20AC;&#x2122;t only sleep, we need housing, schools, hospitals, shops and many such things. With such a narrow focus on housing that dealt with only residential use, at some point we may find that illegal shops, schools or colleges have taken over the sides of the highways. vii) Rules - Inadequate and often Violated legal and regulatory aspects of housing development are inadequate and developers are violating the stipulated set back rules of RAJUK by not leaving undeveloped spaces as stated in the set back rules. RAJUK officials in many cases illegally give permission for building of houses in exchange of bribes. Unlimited use of land by a small number of people taking advantage of remittance flows or inheritance is not desirable and therefore should be restricted with the help of legal and regulatory measures. viii) Urban Planning Ignored The Dacca Master Plan formulated in 1959 was burdening us for 35 years but it was never reviewed which was supposed to be done every five years. For this the Master Plan created many problems for us. If the Structure Plan formulated in 1995 could be implemented many of our problems would be solved.

Though planning is an important aspect, for planning of Dhaka City there is no defined system of budgeting. Therefore, it is quite impractical to expect the general public to do something by their own initiative unless the government comes forward. Before liberation when only 5 per cent people lived in urban areas, the Urban Development Directorate was formed with a Director in the status of Secretary. At that time, urban planning was well in practice, but several efforts have since been taken to close down this organization. He observed that over the last 30 years this organization has not had any planner and therefore could not render functionality. We need a National Land Use Policy. The government with the help of the people should decide on ways and means to keep the country’s prime land for agriculture because we have to feed 140 million people, and the government also has the responsibility to provide housing for everybody including the poor. ix) Partnership and Participation Required If real estate developers build apartments in residential areas, they should ensure necessary environmental support as well. Clinics, schools and NGO offices are being housed in apartments developed by the real estate developers. As a result, people residing in those areas are facing many problems. x) Sustainable Environment Threatened The present process of development ignores environmental consequences. As a result low lands and drainage routes are being blocked. Though RAJUK has formulated DMDP it has very little application. He emphasized that whatever developments are taking place, have to ensure sustainability and environmental assessment. xi) Tendency in Architecture The type of apartments being developed resembles a form of box architecture. In current design practice basically a box is made first within which 3 or 4 flats are designed with an outward masking of good elevation and facade treatment where improvement of space articulation and gaming with volume of space is absent. Housing is not just a means of providing square feet of floor space. Rather, a system which is more inclusive of other aspects should be practiced. The small children that live in those boxes do not have any recreational facilities. They are seen playing football on computer screens instead of playing in the green spaces. Finally Though low-income people are needed in the city as construction or garment workers, the number required is not as high as thirty lac. Those people are in Dhaka because the villages cannot provide them with livelihood opportunities. So steps should be taken by the government to keep these rural people in rural areas. Projects like ‘Grihayon’, ‘Asrayon’, ‘Ghore Phera’ etc. should be fostered and promoted, he commented. In order to reduce ruralurban migration, dedicated programs for the poor should continue. In drawing his conclusion, he urged everyone to carry out his or her responsibilities properly so that Bangladesh could have a housing sector that met the expectations of all stakeholders.

6.15 Conclusion Pink garden city is the largest private sector industrial conglomerate in Bangladesh. Pink garden city has always given the highest value of its component contributing to the production, management, revenue where the human resources was considered as the prime factor. Pink garden city division endlessly strives to achieve the best output, by developing and improving and proper utilizing its human capital. As a result it becomes one of the leading companies not only in Bangladesh but also in subcontinent. Pink garden city pursues its vision of innovation, speed and service-driven marketing activities to the complete satisfaction of the customers. This marks phenomenal growth of business with all their leading and strategic customers. The company has also added a host of new customers to its profile this year. The company is also looking at new markets as south America in addition to increasing its share in the existing us, Europe and Canadian market. The company wants to sustain its position as a leader among the best-known brands and retailers worldwide. But there are some defects in customer service what about mentioned several times in my reports earlier. So, the company should be more cautious and take necessary measures immediately in recovery the customer service 6.17 Bibliography: 1. Marketing Management Philip Kotler 2. Marketing Research Naresh K. Malhotra 3. Prospectus Pink Garden City Housing Estate Ltd. 4. Real Estate and Housing Association of Bangladesh (REHAB). 5. Seminar of Centre for Policy Dialogue [CPD] on â&#x20AC;&#x153;Strengthening the Role of Private Sector Housing in Bangladesh Economy: The Policy Challengesâ&#x20AC;? held at CIRDAP auditorium, Dhaka on March 11, 2003. 6. BBS (Bangladesh Bureau of Statistics) (1991) Statistical year book of Bangladesh (Dhaka: Reproduction, Documentation and Publishing Wing, BBS) 7. ADB (Asian Development Bank) (1995). Technical Assistance Performance Audit Report on the Housing Sector 8. http://www.un.org/Overview/rights.html 9. www.rics.org/research RICS Research Valladares. L. and Coelho. M. P. (2002) Urban Research in Latin America: Towards a Research Agenda (UNESCO, 2002) 10. Bangladesh House Building Finance Corporation, http://bhbfc.gov.bd/eknajar.html 11.www.ifc.org/ifcext/municipalfund.nsf/AttachmentsByTitle/IFC_Housing_Finance/ $FILE/IFC+and+Housing+Finan ce.pdf 12. BBS (Bangladesh Bureau of Statistics) (1991) Statistical year book of Bangladesh (Dhaka: Reproduction, Documentation and Publishing Wing,BBS) 13. CPD (Centre for Policy Dialogue) (2003) Strengthening the Role of Private Sector Housing in Bangladesh Economy: The Policy Challenges (Dhaka, CPD) 14. REHAB (Real Estate and Housing Association of Bangladesh) (2002) Annual Report 2006 (Dhaka, REHAB)