Professional Documents
Culture Documents
INTRODUCTION
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1.1 COMPANY PROFILE
DLF Group is Indias one of the most famous and successful builders group. It was
founded by Chaudhary Raghvendra Singh in 1946 . It is a leading player in Indian real
estate industry with six decades of experience.
The company is headed by Kushal Pal Singh. Kushal Pal Singh, according to the Forbes
listing of richest billionaires in 2009, was the 98th richest man in the world and the
world's richest property developer.
It is impossible to discuss the real state sector in India without giving a special reference
to DLF group. It started as Delhi Lease and Finance in 1946 , aimed at revolutionizing
the Real Estate industry in the country.
DLF began its journey from developing some of the initial Residential Colonies in in
Delhi such as Shivaji Park (their first development), Rajouri Garden, Krishna
Nagar,South Extension, Greater Kailash, Kailash Colony, and Hauz Khas..
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After the Delhi Government banned the private Real Estate and Residential Colony
Development in Delhi, the DLF group is completely involved in the development of the
city of Gurgaon and other areas in NCR.
The company's US$ 2 billion IPO in July, 2007 was India's biggest IPO in history. In its
first quarter results for the period ending 30 June 2007, the company reported a turnover
of Rs. 3,120.98 Crore and profits after taxes of Rs. 1,515.48 Crore.
As of March 31, 2012, the Company had a 1.38 thousand square feet of leased retail
space across the country.
In 2013-14, it leased out 3 million sq ft of office space in India. Future projects include
development of 100,000 acres over the next few years and it aims to become the single
largest real estate company in the country.
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Business organised on vertical basis: Homes, Office, Retail, Hotels, etc., each
independent of the other
Same structure is followed not only at the corporate level, but flows down to the
regional/local level
DLF, at the corporate level, plays the role of an aggregator of businesses where stiff,
competing interests of different SBUs and businesses get aligned, resulting in sum of
parts being worth more than parts
Going forward, DLF plans to monetize subsidiaries/assets to unlock the embedded value
The compensation structure within allows the mid / senior level employees for
participation in the success of various projects/businesses
1.1.4 LOGO
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The pyramid symbol and the mission line 'Building India is collectively referred to as
the DLF Logo.
The company's name is represented in black capital letters. The typeface represents the
solidity of the enterprise; emphasizes accountability, responsibility as being a strong and
integral part of the Group's ethos.
The pyramid depicts nine smaller pyramids; each composes itself into a larger pyramid
all-encompassing in nature and presentation. The pyramid itself and the component
pyramids convey cohesion, interdependence, support and foundation, to a common
purpose and to achieve greater heights.
The words BUILDING INDIA, is in capitals like the companys name, and at once
conveys DLFs mission and vision. It is an intrinsic reflection of the Groups
commitment and its 60-year heritage
D
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(A)Development Business
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1. Homes Segment
Pioneered townships and group housing in India.
Offers plots and urban colonies as well
Introduced the super-luxury and luxury category for homes
Business model allows pre-sale of property prior to breaking ground, leading to positive
cash flows
Trusted brand with superior execution track record
First group housing project launched in 1996
Operates in three main subcategories:
i. Super Luxury
ii. Luxury
iii. Mid Income
2 Execution Segment
Laing ORourke
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JV has commenced development of 16 projects covering a total area of 40 msf
WSP
50:50 JV with WSP for engineering and design consultancy and project management
services
WSPs experiences include world class projects such as Freedom Tower at Ground Zero,
New York; the Mall of the Emirates, Dubai; and major developments at Heathrow and
Stansted Airports in London
WSP to bring specialist staff and expertise from their global operations to support local
professionals
B. Rental Business
1. Office
India being the major part of growth strategies for every multinational there is a
large demand of office space.
DLF is the founder of Grade A office leasing market: in India
Offers well-balanced mix of commercial office space including IT/ITES
facilities, multi-tenant corporate office buildings and integrated commercial
complexes
Continue to leverage location advantages and deep customer relationships to enter
new geographies
Operates mainly in two subcategories:
i. Lease
ii. Sale
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A re a under Cons tr ucti o
Renta l Sup
3. Retail
Given the scarcity of quality organized retail, DLF enjoys the benefits of a
portfolio of premium locations across the country and rush by large retailers
DLF envisages to introduce a new retail infrastructure to cater to the need for
shopping malls and commercial centers across al segments and all places in India
All major retail players, including new entrants pitch aggressively for space in
DLF Malls
Introducing the concept of Next Generation Theme Malls
Operates under two subcategories
i. Sale: Commercial complexes
ii. Smaller malls
Build and sell model for commercial complexes and shopping centers.
Introducing commercial spaces with small offices, small shops
Lease: Large malls
Build and lease model for Mall.
Leasing would ensure strong and sustained rentals given the increasing demand
Rental values increasing substantially due to better mix
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C. Other Segment
1. Hotel
In order to re-focus on the core business operations and in line with the strategy
adopted in 2009-10, the Companys hotel plans across the leisure and business
segments were substantially scaled down during the year.
The Company owns and operates the luxurious Aman Resorts across the world
and also has an alliance with the Hilton group for development and management
of hotels in India.
The hotel business is currently undergoing a comprehensive review by the
Company as regards its future plans, commitment towards resources and the
extent of scale and size that the Company aspires to achieve in this segment going
forward.
Select land parcels meant for hotel developments in India have been disposed off,
with a few more proposed to be sold as a part of the non-core asset divestment
programme.
As regards the Aman Resorts, the Company has witnessed an improved operating
performance during the year. Aman Resorts has been a recipient of many
international accolades.
In its recent accomplishments, Aman Resorts received the highest ranking for
Worlds Best Hotel Chain & Marketing Group in the Zagat Worlds Top Hotels,
Resorts & Spas 2009/2010 edition.
The Company will, at an opportune time, explore the possibility of a strategic
partnership for Aman Resorts in order to further strengthen the current business
model.
2. Life Insurance
DLF Pramerica Life Insurance Company Ltd. (DPLI), a 74:26 JV between DLF
Limited and Prudential International Insurance Holdings (PIIH) commenced
operations in September, 2008 with a purpose to market and sell life insurance
products in the country.
The Company has completed one full year of commercial operations as on 31st
March, 2010.
With a consistent focus on a steady strategy of capital conservation, sound
liquidity and enhancement of operational and cost efficiencies, the overall
financial performance during the last year was in line with the business plans
envisaged.
3. Asset Management
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The Company exited its asset management JV during the year. The Companys
decision to exit the business was triggered due to the changes by SEBI in its
evaluation criteria for granting approval to the joint venture mutual fund to
commence business in India.
This primarily involved both the partners to have a five year track record in the
financial services sector precluding DLF from partnering Prudential Financial Inc.
in the business.
Construction
Laing O'Rourke is a UK-based construction company will construct all DLF's landmark
projects.
Nakheel of Dubai are partnering with DLF for developing townships in India.
WSP Group Plc is partnering DLF, providing management and consultancy to the built
and natural environment
Feedback Ventures is providing consultancy for faster project execution.
DLF and Prudential Financial Inc. (PFI) of US, have signed a joint venture to provide a
broad array of mutual fund and investment products, including domestic and eventually
international mutual funds to Indian retail and institutional clients.
Hospitality
Hilton Hotels are partnering DLF to jointly develop hotels in India.
DLF has partnered with IBM to outsource all its IT requirements to the global IT
infrastructure giant. Under this partnership IBM will be responsible for the helpdesk.
1.1.5.3Business Model
DLF's primary business is development of residential, commercial and retail properties.
The company has a unique business model with earnings arising from development and
rentals. Its exposure across businesses, segments and geographies. DLF has also forayed
into infrastructure, SEZ and hotel businesses.
The DLF real estate management has got a business model which enables seamless
integration of real estate business model owing to its business operation spanning across
land, design, construction, facilities and marketing.
These bouquet of services are managed by a team of professionals with expertise
spanning across these functions
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DLFs Business model mainly consist of two models:
i. Development Business
ii. Annuity Business
Development Business:
The development business of DLF includes Homes and Commercial Complexes.
The Homes business caters to 3 segments of the residential market - Super Luxury,
Luxury and Mid-Income.
The product offering involves a wide range of products including condominiums,
duplexes, row houses and apartments of varying sizes. DLF has 216 msf of developed
area under homes and residential plots.
Annuity Business:
The annuity business consists of the rental businesses of offices and retail.
With over six decades of excellence, DLF is a name synonymous with global standards,
new generation workspaces and lifestyles.
It has the distinction of developing commercial projects and IT parks that are at par with
the best in the world. DLF has become a preferred name with many IT & ITES majors
and leading Indian and International corporate giants, including GE, IBM, Microsoft,
Canon, Citibank, Vertex, Hewitt, Fidelity Investments, WNS, Bank of America,
Cognizant, Infosys, CSC, Symantec and Sapient, among others.
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DLF Realty project team collaborates with world class architectural firms to create un
paralleled home, retail spaces which include shopping malls and integrated
developments.
One of the distinctive in house services consists of tenancy design and coordination
functions.
The designs of the apartments undergo serious scrutiny and checks within the company
in various divisions like quality, strength et al.
The development phase is carried on once the design is approved from the approving
department
DLF not only develops projects but creates unique propositions to anchor its
developments such as:
DLF Emporio
DT Cinemas
This is the first of its kind in India. People will be having an opportunity to witness the
creations of 185 of the finest luxury brands in the world.
Over 74 international labels and over 100 Indian designers participate in this
Cafe E in the atrium offers world gourmet cuisine and Set'z, is a spectacular 5 cuisine
restaurant designed by the famous Super Potato of Hong Kong which adds to the
attraction to the mall.
The beautiful architecture and lavish interiors of DLF Fmpono are designed to make
shopping a pleasure.
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Generous spaces, Italian marble, soaring atria and dazzling chandeliers are some of the
features of this style
DLF considers the retailers and its end user customers in the apartments as not only as
customers but also as partners in all the developments.
When it comes to Retailers segment, DLF Retail has built an extensive network with
national and international retailers and leverages on this established network to create an
optimal tenancy mix in all its projects.
With innovative and consumer friendly shopping, food and entertainment combinations,
DLF enhances the retail experience along with maximizing growth and sales for tenant
partners.
The tenancy and leasing concepts are also followed in the retail apartment segment but
the company pushes for full sale of the property.
The marketing and promotions experts continually develop exciting plans regarding the
marketing of the apartments and commercial spaces.
Several fun activities are designed to increase the shopper traffic and facilitate tenant
sales at the malls.
The marketing team also conducts extensive activities to promote the apartments by
targeting the target segment according to the income, and other parameters.
Promotions in the form of putting up stalls in the property expo, tie ups with agencies are
some of the commonly followed techniques in this area..
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All this is backed by well etched out advertising and PR initiatives for the efficacy of the
marketing plans.
V. Property Management
The properties are vey huge and due to non availability of the required documents and
also the duplication and fraudulent activities concerning the title deeds have become the
major issues in the companys property management model.
A specialized department with tie ups with the municipal authority and also other
concerned authorities is set up in the company to check on such fraudulent activities.
All the proposed properties must pass through a strict New Property Acquisition
Process in which the proposal passes through various legal checks, municipality checks
et al.
The property is finally managed by the DLFs property management division where the
division over sees the entire operations on a day to day basis.
I. Development Business
The development business also consists of certain commercial and shopping complexes,
including those that are integral to the residential developments they are attached to.
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DLF further splits the development business into three geographical segments
Gurgaon, Super Metros and Rest of India.
A. Residential Segment :
DLF, as of 2013, had 27 Projects under Construction in its residential business with
expected Saleable Area of approximately 36.7 msf.
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DLF has four commercial and shopping complexes under construction with expected
Saleable Area of approximately 3.96 msf.
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Lease Business A Snapshot
A. Offices Segment
As of 2013, the occupancy rate for DLFs leased commercial portfolio properties was
approximately 88.0%.
It had four commercial projects under construction with expected leasable area of
approximately 3.8 msf.
As of 2013, the occupancy rate for Companys leased retail portfolio properties was
approximately 96%.
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DLF has two projects under construction with expected leasable area of approximately
2.0 msf, both of which are malls catering to middle and higher income groups.
V. Hotels
DLF in the recent times is trying to exit non-core assets and non-strategic businesses,
Hence it has divested a significant portion of its interests in the hospitality business
including its shareholding in Adone Hotels and Hospitality Limited which held various
hospitality related land parcels.
Entered into a share purchase agreement to sell its entire 100% shareholding in Silverlink
which operates various properties under the Aman Resorts brand.
However, The Lodhi, which is a hotel property located in New Delhi, was not included in
this sale and continued to be owned and operated by DLF.
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Marketing mix is the process of designing and integrating various elements of marketing
in such a way as to ensure the achievement of enterprise objectives.
Marketing mix is a combination of marketing tools that are used to satisfy customers and
company objectives.
Creating a successful marketing mix that will increase results often takes experimenting
and market research.
I. PRODUCT:
Product refers to a physical product or a service or an idea which a consumer needs
and for which he is ready to pay.
Physical products include tangible goods like grocery items, garments etc. Services
are intangible products which are offered and purchased by consumers.
Services may involve also an innovative idea on any aspect of operation.
A product is the key element of any marketing mix. The decisions concerning product
may relate to
i. Product attributes
ii. Branding
iii. Packaging and labeling
iv. Product support service
v. Product mix.
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India is blessed with one of the fastest growing real estate markets in the world. It is not
only attracting domestic real estate developers but also the foreign investors.
But despite all these facts, the ever growing Indian population is always putting up the
pressures on housing creating the shortage of houses in India.
Also the recession period during 2008-2009, the real estate sector saw around 50%
reduction in prices. This prompted the realtors to take effective measures to take control
of the situation.
Due to all this Low Cost Housing became the new buzz word in real industry. From
buyers to the sellers to the realtors and investors, everyone is pitching for affordable
quality homes in India.
We planned Low cost housing as the new product for our company DLF.DLF is India's
largest real estate company in terms of revenues, earnings, market capitalization and
developable area.
DLF's primary business is development of residential, commercial and retail properties.
The company has a unique business model with earnings arising from development and
rentals. Its exposure across businesses, segments and geographies, mitigates any down-
cycles in the market. DLF has also forayed into infrastructure, SEZ and hotel businesses.
Low cost housing will include construction of 1 or 2 BHK houses set up in the colony
system. These low cost houses will be the constructed in Tier-2 cities of India like
Chandigarh, Jaipur, Hyderabad, Luknow etc.According to Indicus Analytics,
An Economics Research Firm,90% of the urban households have incomes under 5
lakhs.Going by this our category of housing is best suited to this group of households.
The area of construction of these houses would be 250 500 square feet. We will be
targeting both mixed and lower income group customers.
This looks a good venture for DLF as it has an advantage over its competitors due to the
following factors:
BRANDING:
DLF has the advantage of being the number 1 player in the real estate market. It is
having huge capital reserves to fund this new project line.
QUALITY:
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DLF is in this sector for 62 years. It has given quality infrastructure to the
corporate and household ever since.
FUNCTIONALITY:
The target customers of our low cost housing will be the mixed and lower income
groups. These houses will provide all the basic amenities required in a home but
there will be no frills attached.
SERVICE:
DLF will be providing excellent after sale service like maintenance,security,water
and power solutions to the customers.
II. PRICING:
Price is the amount charged for a product or service.
It is the consideration paid by consumers for the benefit of using any product or
service.
Price fixation is an important aspect of marketing.
There may be two types of Price fixation:
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Price-in-line means prices fixed nearly equal to the prices of close alternatives. Generally
this happens under free market conditions i.e. when the number of buyers and sellers is so
large that they cannot affect the prices.
When companies charge (fix up) a price which is more than the price of existing
substitutes, it is called market plus pricing.
This approach is adopted when the quality of a product is better, or it has a popular brand
name, or its packaging is attractive and useful.
Consumers will pay more only when they find distinctive differences in the product and
its substitutes.
Sometimes business enterprises get ready to supply products at a price lower than the
market price. It may be adopted to grab a larger market share or to make a newly
introduced product more popular.
This approach is called market-minus approach. Companies having shorter channels of
distributions or direct selling facilities can afford to fix a price lower than the prevailing
market price.
Our low cost housing will be targeting the lower and mixed income group customers. So,
pricing will be around 1000 3000 per square feet.
The total price of a house will be around 15 -25 lakhs.This will be made possible by the
reduction in prices of cement by over 40% and in that of steel by over 20% in the past
two years
.DLF will tie up with land owners and provide them share of profit in lieu of low cost
land. We can also seek subsidies from Government by taking up projects in Tier B cities
on the SEZ concept.
We can reduce the cost of our project yet give customers a quality product by adopting
following techniques:
Reducing plinth area by reducing the wall thickness.E.g.15 cms thick solid concrete
block wall.
Use locally available material in an innovative form like soil cement blocks in place of
burnt brick.
Use energy efficiency materials which consume less energy like concrete block in place
of burnt brick.
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Use environmentally friendly materials which are substitute for conventional building
components like use R.C.C. Door and window frames in place of wooden frames.
Preplan every component of a house and rationalize the design procedure for reducing the
size of the component in the building.
By planning each and every component of a house the wastage of materials due to
demolition of the unplanned component of the house can be avoided.
Each component of the house shall be checked whether if its necessary, if it is not
necessary, then that component should not be use.
III. PROMOTION:
Promotion refers to using methods of communication with two objectives:
(i) informing the existing and potential consumers about a product
(2) to persuade consumers to buy the product.
It is an important element of marketing mix. In the absence of communication,
consumers may not be aware of the product and its potential to satisfy their needs and
desires.
Techniques used in the promotion of project:
SALES PROMOTION:
a) We will offer discounts on first 50 bookings of the houses.
b) We will give extra incentives to the dealers who will book maximum houses.
c) We will tie up with various banks and financing institutions to provide the
customers low interest loans.
d) Also we can give free insurance to the customers.
ADVERTISING:
a) We will put huge advertising budget for our product.
b) We will hugely endorse our product in newspapers, magazines and also in
TV and radio.
c) We will put interactive billboards on critical places in all important cities
of India.
DIRECT MARKETING:
Direct marketing is the use of consumer direct channels to reach and deliver goods and
services to customers without using marketing middlemen. DLF can use a number of
channels to reach target customers, namely
a) We will send the information about low cost housing cans to their target customers by
sending brochures and magazines describing our product.
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b) DLFs customer support will be contacting the customers by phone and explaining
features of the product thereafter.
c) We can upload the complete information of our new product on the main website of DLF
so that anyone accessing the homepage of DLF must also be accessible to that
information. Basically this method is useful in promoting the product among the existing
customers of DLF.
d) Catalogs offer consumers a wide range of products of either a generalized or specialized
nature. So we can add the low cost housing in the existing list of products so offered and
present that catalog to their customers.
PUBLICITY:
a) Publicity takes place when a favorable presentation is made through mass media about a
product or service.
b) People believe more on such news than in advertising.
c) It covers people who do not entertain personal selling and sales promotion approaches.
d) It is a non-paid form of communication but sometimes it is not regarded as a promotional
tool within the reach of a company.
IV. PLACE:
Place is another important aspect of 4P strategy. This refers to how an organization will
distribute the product or service they are offering to the end user.
The organization must distribute the product to the user at the right place at the right
time. Efficient and effective distribution is important if the organization is to meet its
overall marketing objectives.
If an organization underestimates demand and customers cannot purchase products
because of it, profitability will be affected.
DLF will use its extensive network of offices all around the country. It has the required
presence in every big city of the country. This is a housing project so we will also use our
network of existing dealers and brokers.
We will first of all target the upcoming developing cities for our project. This will
include cities like Chandigarh, Hyderabad, Luknow, Ahmadabad etc.We will build these
houses in the concept of SEZ with Govt. approval so that we can avail tax benefits also.
Then after this we will target the big metropolitan cities of our country like Delhi,
Mumbai, Kolkata, and Chennai. In these cities availability of land is a big concern, so we
will construct houses in the outskirts of the city.
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DLF will have to place the product very efficiently to beat the competitors like TATA,
Sobha Developers, Omaxe, Panchsheel developers etc.
CHAPTER 2
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26
RESEARCH METHODOLOGY
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Qualitative research is often used as a method of exploratory research as a basis for later
quantitative research hypotheses.
Qualitative research is linked with the philosophical and theoretical stance of social
constructionism.
To find out the reasons for transition of people from Delhi to National Capital Region (NCR).
To find out the perception of people about the cities included in NCR namely Gurgaon,
Noida, Greater Noida, Sonepat, Faridabad and Ghaziabad.
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To know the degree of importance of various factors which people consider while purchasing
a house.
To know the satisfaction level of consumers.
It ascertains the position of a company in a specific industry
It indicates the present and future trends of the industry and thus points out how the
companys affairs are to be managed.
2.4 Methodology
PRIMARY METHOD
Face to Face interview
Questionnaires
Telephonic Survey
Survey through E-Mail
Survey through Reference
SECONDARY METHOD
Magazines on Property
Internet sites on Property
Internet websites of popular property developers of India
.
Questionnaires:
Questionnaires are formal set of questions prepared to collect the required information
This is one of the most effective and popular techniques used in surveys.
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Before deciding on the questions, it was important to understand the exact nature of
information required and who should be interviewed.
The knowledge level of target respondents was kept in mind, while drawing of questions.
The major junk of the customer was basically from urban background.
Sample Size:
The size of the sample is an important element in the research process as it has a direct
affect on the result of the research.
People living in Gurgaon Housing and Society Complexes, in Noida housing complexes
and in Sonepat Housing (Kundli) complexes were surveyed.
Study was restricted to Gurgaon, Noida, Greater Noida, Faridabad and Sonepat.
Study was restricted to occupied housing complexes, shopping malls and under-
construction housing complexes.
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CHAPTER 3DATA ANALYSIS
AND INTERPRETATION
Three tables and charts have been prepared for each of the three cities namely Gurgaon, Noida
and Ghaziabad to analyze what respondents from each of these cities think about five cities
included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad on the basis
of five parameters namely Location, Business Opportunity, Law and Order, Style of Living and
Infrastructural Development and also to know the reasons for which they bought the DLF
property.
A. GURGAON
I. PERCEPTION OF PEOPLE ABOUT THE CITIES OF NCR
Gurgaon 22 23 28 20 18
Noida 12 8 5 12 10
Greater Noida 1 4 2 4 8
Faridabad 2 2 1 1 1
Ghaziabad 1 1 1 1 1
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Perception of People About the Cities of NCR
30
25
20
15
10
5
0
No. of Gurgaon
People Noida Greater Noida Faridabad Ghaziabad
Parameters
INTERPRETATION:
1. Gurgaon buildings stand tall in each and every parameter. Gurgaon tops in all the
parameters among Gurgaon respondents.
2. Though in case of Infrastructural Development Greater Noida and Noida are also ranked
well by the Gurgaon residents. Probably the credit goes to DND flyover.
3. Location wise, people of Gurgaon feel only Gurgaon and Noida are good in the entire
NCR as Greater Noida, Faridabad and Ghaziabad could fetch only 1, 2 and 1 favourable
response out of total 38 responses.
6 3 19 10
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Most important factor
17%
27%
Brand name Advertisements Location
4% Affordability
52%
INTERPRETATION:
1. The basic reason for people buying property in Gurgaon in mass scale is its locational
advantage. It shares border with the Capital of India. Moreover huge employment generating
BPO companies are located in Gurgaon. Many Reputed schools and colleges have also come
up in Gurgaon. Some of Indias biggest shopping malls having shops of international brands
as well as famous national brands are also situated here.
2. Second major factor which attracted people to buy property in Gurgaon was affordability.
Developers realizing that most of the people shifting to Gurgaon will be from middle class
society they constructed big towers with numerous reasonable flats. Since the price of the
property kept by the developers suited the pockets of buyers they were able to buy it without
any financial problem.
3. Third major factor was brand name. According to 17 % of the total respondents brand 23
name was the prime reason for which they bought the property. In Gurgaon Housing
Complexes have been constructed by popular and leading property developers of India like
Omaxe, DLF, Ansals, Unitech Etc.
4. Only 4 % of the total respondents feel that it was advertisements which made them buy the
property. Advertisements can actually put the name of the property in the mind of the buyer
but no one actually buys the property only on the basis of advertisements. Thus it will be
wrong to say that advertisements are useless since they do help in selling though not directly.
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III. MAJOR REASONS FOR SHIFTING
No. Of
6 12 8 5 5 2
people
Lack of Proximity to
Reasons Job transfer Own house Investment Others
facilities Workplace
No. Of
4 15 5 3 3 8
people
25
20
15
Number of people
10
0
more
Better
spaceBetter
Location
Healthy
Facilities
Increase
environment
Quaity
in living
construction
Lack
status
Pofrox.
facilities
to workplace
Job transfer
Own house
Investment
Others
Reasons
INTERPRETATION:
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1. Among various reasons better location is the most important reason for the people to shift to
Gurgaon Housing and Society Complexes. Why location is most important has become
apparent till now.
2. Proximity to Workplace and Better Facilities are close second and third most important
reasons. Proximity to Workplace may become the most important reason in few years time as
industry migration to Gurgaon is happening quickly. All the international brands are
preferring Gurgaon over Delhi for their regional office.
3. Moreover people in need of better facilities like water availability, Power Backup, Safety
and security, etc also prefer to shift to Gurgaon as Housing complexes of Gurgaon provide all
these facilities.
4. Need for more space, Need for Healthy Environment, Need for Own House and Increase in
Living Status can be considered as other major factors for people shifting to Gurgaon
Housing Complexes.
5. People also purchased property in Gurgaon for investment purpose. This reason may not be
seen in such a large number in any other city of NCR. Its so because people consider
investment in property in Gurgaon as a very safe bet and expect high return on Investment.
B. NOIDA
Gurgaon 3 3 4 5 3
Noida 5 4 4 3 2
Greater Noida 1 0 1 1 5
Faridabad 0 1 0 0 0
Ghaziabad 0 1 0 0 0
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Perception of people about the Cities
6
5
4
3
2
1
0
Gurgaon Noida Greater Noida Faridabad Ghaziabad
Parameters
INTERPRETATION:
1. In Location, Noida is a clear winner with 5 out of 9 respondents choosing it as the best
location in the entire NCR. That is a huge percentage around 55%. This shows that Noida
people are happy with its Location. Noida is located close to the Capital of India and is also
very closely located to Indirapuram, another upcoming city.
2. In all parameters other than location, Gurgaon has also been ranked as no.1 by many people.
3. One significant thing in this chart is that Faridabad was selected by many Noida respondents
as no.1 in case of business opportunities available.
4. The most significant thing indicated by the chart is that people of Noida have chosen Greater
Noida as no.1 in Infrastructural Development 5 out of 9 respondents have favorably marked
for greater Noida while only 2 have marked for Noida.
1 0 5 3
37
Most Important Factor
INTERPRETATION:
1. In Noida just like in Gurgaon, location is the most important factor that pulls the people to
buy a new home.
2. Advertisements have no role in the sale of homes but as said before in the report
advertisements do add the advertised property as an option in the mind of the prospective
buyer.
3. According to respondents from Noida Brand name of the developer didnt play a big role in
making them buy the property. Its probably because Noida doesnt have highly popular
brands like Ansals, OMAXE, Eros, DLF, etc.
4. Affordability is another major reason for the buying the property in Noida. As there is hardly
any popular developer in Noida and the homes provided in Noida are not as luxurious as that
in Gurgaon, the prices are very low as compared to the prices prevailing in Gurgaon. In
Gurgaon Higher class and Upper middle class people also buy homes in large numbers
whereas in Noida the number of high class and upper middle class people looking for new
home is very less.
38
Quality
Better Better Healthy Increase in
Reasons More Space constructio
Location facilities environment living status
n
No. Of
2 2 2 1 1 1
people
No. Of
3 0 0 4 1 1
people
INTERPRETATION:
1. One of the most important things found out in the survey was that the one of the major
reasons to buy the house was the desire of people to have their own house. This reason was
not at all important in case of Gurgaon. This goes on to show that houses in Noida are very
reasonable. Mostly people earlier living in rent have bought properties in Noida either to
avoid high rents prevailing in Delhi or due to the desire of having an own asset.
39
2. Need for better facilities was tick marked by maximum number of people as a reason for
buying the property. This again proves the fact that people buying property in Noida are
generally from middle class who earlier used to live in less popular colonies of Delhi which
are deprived of essential facilities like water, power and safety.
3. Another major reason for buying the property in Noida is Need for more space. Generally
people earlier living in joint families or newly married couples prefer buying property in
Noida as they are affordable.
4. Only 1 out of 9 respondents have said that investment was the main reason to buy the
property, which is around 11 % of the total respondents. This goes on to show that people
dont generally buy property in Noida for investment purpose.
5. Another important point to notice is that in Noida proximity to workplace reason is
insignificant. Its probably because virtually non-existence of BPO companies in Noida.
C. GHAZIABAD
I. PERCEPTION OF PEOPLE ABOUT THE CITIES OF NCR
Gurgaon 5 6 9 9 6
Noida 14 9 8 10 5
Greater Noida 1 1 2 2 9
Faridabad 0 0 1 0 0
Ghaziabad 3 6 3 2 3
40
Perception of People about the Cities
16
14
12
10
Gurgaon
8
Noida Greater Noida Faridabad Ghaziabad
Number of People 6
4
2
0
Locationbusiness Opportunity
Quality of LivingLaw & order Infrastucture
Parameters
INTERPRETATION:
1. Respondents from Ghaziabad have chosen Noida as the best location in the entire NCR. As
many as 14 out of 23 respondents have marked favourably for Noida which is around 60 %
of the total respondents. This clearly goes to show that Ghaziabad respondents have good
image of Noida as far as location is concerned.
2. In all other parameters there is a clash between Noida and Gurgaon but Noida seems to lead
in every parameter.
3. In business opportunity Noida have again been favoured while rest four have almost same
image in the mind of Ghaziabad respondents.
4. In case of quality of living both Noida and Gurgaon have been marked almost equally by the
respondents of Ghaziabad.
5. In case of law and order Ghaziabad and Faridabad are clear losers. This fact has been
observed in all the three cities.
6. In Infrastructure Greater Noida enjoys good reputation.
II. FIRST PULL TO CHOOSE THE HOUSING COMPLEX
3 1 7 12
41
Most Important Factor
7%
Brand Name Advertisements
5% Location Affordablty
46%
42%
INTERPRETATION:
1. In Ghaziabad affordability is the main reason for the people buying property out there. The
occupied Housing complexes of Ghaziabad are pretty old and very reasonable. Developments
in Ghaziabad started much before it started in Gurgaon and Noida. So at that time prices were
low. Now with the massive development of Noida, Gurgaon as well as of Indirapuram price
of property have increased like anything.
2. Location is the second most important factor which makes people buy property in Ghaziabad.
Ghaziabad is located close to Noida as well as Delhi. Moreover Indirapuram, the real
upcoming area is its neighbour . Moreover Ghaziabads development took place years ago so
it already has lots of facilities available.
3. Advertisements and brand name did compel few to buy the property in Ghaziabad but still
they were not so important factors.
Quality
More Better Better Healthy Increase in constructio
Reasons Space Location facilities environment living status n
No. of
People 6 9 4 3 0 1
42
facilities workplace
No. of
People 5 6 2 8 1 1
5
Number of People
4
0
More Better
Space Location
Better
Healthy
facilities
Increase
environment
in
Quality
living construction
status
Lackproximity
of facilities
to workplace
Job transfer
Own house
InvestmentOthers
Reasons
INTERPRETATION:
1. Though Ghaziabad respondents have rated Affordability as the major reason for buying the
property in Ghaziabad but if we exclude affordability as a factor we find that location too
was a very important factor as we can see in this chart.12 out of 23 Respondents have marked
location as a reason for buying the property i.e. around 50 % of the total respondents.
2. Just like in Noida, the desire to have an own house is a major reason to buy a property, in
Ghaziabad too. This proves the reliability of the previous chart which shows that the major
reason to buy a property in Ghaziabad is affordability.
3. Third most important reason for buying property in Ghaziabad is requirement of more space.
4. Same as Noida reasons like proximity to workplace and investment are almost insignificant.
43
Sales managers were asked to rank the above mentioned factors on the scale of 1-10 (where 1
stands for the most important factor and 10 stands for the least important factor). After collecting
the data, it was put in the excel sheet and then average for each of the factors was calculated. In
the above Bar chart averages have been shown. Factor with the least average is the most
important factor according to the developers that people consider while purchasing the property.
INTERPRETATION:
1. It is clear from the above bar chart that Location is the most important factor which people
consider while purchasing the property.
2. After location, quality of construction and safety are second and third most important factors
respectively.
3. Healthy environment, Water availability, Maintenance, Power Backup and club membership
fall in the middle category with average ranking ranging between 3.5-7.
4. Car Parking and Sports complex are least important factors and according to developers,
people dont consider them much while choosing a property.
44
Due to the boom in IT/ITES sector in India, there is a tremendous growth in the private
sector housing and commercial building demands.
Good structured national network infrastructure like highways, expressways etc. have
also facilitated the boom in real estate industry.
DLF is the largest real estate company in India, so it has got the required expertise and
brand value. It has around 54% market share in Indian real estate market.
DLF has a huge supplier base ensuring fixed raw material cost which helps them in
bringing the cost down.
A large quantity of low cost and skilled labor is available in north India,which is very
ably utilized by DLF.
India is full of natural resources and raw materials which is required for the real estate
industry.
WEAKNESS
The biggest problem for DLF is that there is no parallel product in their product profile to
support during periods of recession.
There are very small amount of projects with DLF in other parts of India other than the
northern part.
DLF mostly deals in mega projects, and it becomes very difficult to allocate such large
projects to external vendors.
This sector requires huge amount of capital investment and it will be very difficult for
DLF to raise capital in recession periods.
OPPURTUNITIES:
The biggest opportunity for DLF is to expand in other parts of India like south India and
to tap that underutilized market.
It can invest more in Power generation projects like hydroelectric or Wind power.
DLF can also tap the Public sector infrastructure due to the rise in the expansion of public
sector companies like BHEL, NTPC etc.
DLF can also concentrate on improving the supply chain management of raw materials to
cut down cost and increase the efficiency.
THREATS:
DLF will have to face a lot of competition in the future as the competitors in this industry
are increasing by leaps and bounds, eg, sobha developers, parsvnath developers etc.
45
Long term market instability may damage the expansion and training development
opportunities.
Natural calamities like earthquakes and foods can always prevent this industry to grow at
a normal pace.
Political unrest and security concerns in India are a big threat for DLF to expand rapidly.
46
CHAPTER 4
47
FINDINGS & CONCLUSION
The major external factors which people consider while purchasing the property are Price,
Availability of loan and Proximity to workplace.
The major In-Locality factors which people consider while purchasing the property are Quality
of construction, Availability of water and Pollution-free environment
1. Location wise Gurgaon and Noida are adjudged the best by the respondents
2. Business opportunity wise Gurgaon due to the mass presence of BPO company and
offices of MNCs and Noida due to its proximity to Delhi are consider good by the
majority of respondents.
3. In Quality of living again Gurgaon and Noida leads the pack but out of the two Gurgaon
is better due to the existence of Higher and upper-middle class people in large number.
4. In Law and Order all the places are bad as per the respondents but out of the five
Gurgaon is the best.
5. As far as infrastructural development is concerned Greater Noida enjoys good reputation
among the respondents of all the three cities.
6. In totality, both Location as well as Affordability together account for more than 95 % of
the total responses.
7. In Gurgaon major reasons other than affordability and location, to purchase the property
were proximity to workplace and healthy environment.
8. In Ghaziabad other major reasons were almost the same -desire to own an own house as
well as need for better facility.
48
CHAPTER 5
49
RECOMMENDATIONS
As DLF enjoys good brand name and have a battalion of brand loyal customers it shall make
sure that the maintenance of its occupied housing complexes is taking place in the best possible
manner.
Due to stiff competition in the market DLF shall focus on the Quality of homes provided and
shall also try its best to meet different kind of requirement of different buyers. Due to the
current oversupply situation in the market DLF shall resist from increasing price of its
property.
DLF shall help and lure the prospective buyers by helping them in getting housing loans. It
shall collaborate with some popular banks for this purpose. These days even banks are more
than willing to provide home loans.
DLF shall provide the right amount of greenery in its housing complexes, as pollution free
environment is a very important factor that people consider while purchasing the property.
Gurgaon, Noida and Greater Noida are the places where DLF shall come up with new
projects as they have been marked favourably by the all respondents. Respondents do not
have good image of Faridabad and Ghaziabad while Indirapuram is yet to prove its worth.
Advertisement for selling property in Gurgaon can be Why drive for 45 minutes to your
workplace everyday, take a flat in Gurgaon today. As proximity to workplace is the major
reason for people buying flats in Gurgaon.
Whereas for Noida and Greater Noida advertisement can be like Fed up of paying rent. Now
realize your dream of having a house of your own-COME TO NOIDA as desire of having
an own house is the most important reason for the people buying property in Noida.
50
CHAPTER 6
51
LIMITATIONS
52
CHAPTER 7
53
BIBLIOGRAPHY
The information in this project is based on primary as well as secondary data which was
collected from the following sources:
BOOKS
1) Kotler Philip, Marketing Management,8th Edition, June, 1995, Page no. 172-
197.
2) Boyd, Westfall, Stasch, Marketing Research, 7th Edition, 1998, The
Marketing Research process, Page no. 63-127,311-465
3) Schiffiman Leon G. and Leslie Layas Kanuk, Consumer Behaviour,
6th Edition, 1997, Market Segmentation, Page no. 48-64, Consumer Behaviour,
Page no. 376-392, Consumer Decision Making, Page no. 503-508.
4) Schiffman-Kanuk Consumer Behaviour- Prentice Hall of INDIA
5) Neal Mc, James V, An Introduction to consumer behaviour,New York, Willey
1973 Sharma, D. D. Marketing research,New Delhi, Sultan Chand & Sons,
1999
6) Kothari, C. R. Research Methodology, New Delhi, New Age International (P)
Ltd, Edition 2006
JOURNALS
1) Real Estate Business Tips By :- Brian T Evans
2) Ezines atricles.
3) India Today Buyers Guide July 2009 Edition
4) Finding a Good Real Estate Agent By :- Paromita Goswami
Websites
1) www.dlfgroup.net
2) www.propertycafeteria.com
3) www.zameen-zaidad.com
4) Economictimes.indiatimes.com
ANNEXURE
QUESTIONNAIRE
Name: _____________________________________
54
Household income per annum:
1. What factor was the first pull to choose DLF housing complex?
Brand name of developer Attractive and frequent advertisements
Location affordability
2. To what extent do the following factors influence your choice of DLF housing complex?
Not at All Very large extent
Price Range 1 2 3 4 5
Proximity to Workplace 1 2 3 4 5
Resale value 1 2 3 4 5
Proximity to school 1 2 3 4 5
Proximity to hospitals 1 2 3 4 5
Proximity to Entertainment 1 2 3 4 5
centers
3. To what extent do the following in locality factors influence your choice of a housing
Complex?
Not at All Very large Extent
Peaceful locality 1 2 3 4 5
55
Water availability 1 2 3 4 5
Power backup 1 2 3 4 5
Safety-Security 1 2 3 4 5
Recreational/sports Complex 1 2 3 4 5
Car parking 1 2 3 4 5
Location
Business Hub
Quality of Living
56
Law and Order
Infrastructural
Development
11. Which advertising media makes you aware about DLF the most?
E-Newsletters Newsletters
All information will be kept confidential. The above date collected is for the purpose of
market study only.
DEPARTMENT OF MANAGEMENT
Attendance Sheet
57
1
10
58