The Post RERA Mar­ket­ing

Real-es­tate mar­ket­ing has un­der­gone a par­a­digm shift. the re­cent pol­icy changes, ad­vance­ment in tech­nol­ogy and mar­ket con­sol­i­da­tion, to name a few have be­come some of the de­cid­ing fac­tors in de­vel­op­ers mar­ket­ing strat­egy. ankit go­hel takes a look.

Realty Plus - - Table Of Content -

As we all know, de­mon­eti­sa­tion left the de­vel­op­ers as well as the prop­erty buy­ers with a cash crunch. With new launches stalled, the quan­tum of ad­ver­tis­ing re­duced. Then came the Real Es­tate (Reg­u­la­tion & Devel­op­ment) Act (RERA), which in­tro­duced guide­lines for project pro­mo­tion and mar­ket­ing. De­vel­op­ers had to re­draw their mar­ket­ing ini­tia­tives to be in sync with the RERA com­pli­ances. Now, the im­ple­men­ta­tion of Goods and Ser­vices Tax (GST) has brought the third dis­rup­tion in the real-es­tate brand­ing & mar­ket­ing strate­gies. David ap­pasamy, head – brand and strat­egy, so­cial beat opined, “Given the im­pact and af­ter­math of de­mon­eti­sa­tion, the real-es­tate in­dus­try

sus­pended mar­ket­ing for a pe­riod of time, and re­sumed pro­mo­tional ef­forts only in March-april 2017. These were aimed at liq­ui­dat­ing in­ven­tory in projects that had al­ready been an­nounced and were un­der con­struc­tion so that they could keep rev­enues flow­ing. No new projects were an­nounced, and projects that were be­ing con­sid­ered were kept in abeyance un­til a cli­mate of con­fi­dence and con­sumer sen­ti­ment re­cov­ered.” Ex­press­ing the de­vel­oper’s point of view, Ro­hit gera, Man­ag­ing Di­rec­tor, gera De­vel­op­ments Pvt. ltd., said, “With RERA, any mar­ket­ing is now pos­si­ble only after the ap­provals have been ob­tained and the project has been regis­tered with the author­ity. Hence get­ting the prod­uct mix ab­so­lutely right is ex­tremely crit­i­cal es­pe­cially since mak­ing changes in the project once the sales have started is very dif­fi­cult. This in­creases the over­all risk and there­fore the pres­sure on suc­cess of the launch of the project and mar­ket­ing of the project is now ex­cep­tion­ally high.”

the New strat­a­gems

Re­gard­less of the scale or type of project, the prop­erty mar­ket­ing in­cludes mar­ket re­search, con­sumer in­sights, brand­ing, lead gen­er­a­tion, post sales mar­ket­ing ini­tia­tives among oth­ers.the liq­uid­ity cri­sis forced the de­vel­op­ers to re­align their mar­ket­ing and adopt new means of brand­ing & pro­mo­tion. Fancy words and in­dica­tive images can no longer be used. Many de­vel­op­ers are mar­ket­ing their projects high­light­ing the RERA reg­is­tra­tion as the sign of trust or em­pha­siz­ing the “Zero GST” ef­fect on the home prices to at­tract con­sumers. The pol­icy changes have made the mar­ket very tough and com­pet­i­tive. Thus an ef­fec­tive mar­ket­ing strat­egy will play the game for the de­vel­op­ers. “Con­sumers do not buy prod­ucts. They buy prod­uct ben­e­fits”– these words by David Ogilvy are best ap­pli­ca­ble on the real es­tate sec­tor in the present sce­nario. One year ago the real-es­tate projects were ad­ver­tised on the ba­sis of the ameni­ties pro­vided by them. But, given the strict RERA guide­lines about what can and can­not be ad­ver­tised, the de­vel­op­ers has shifted to com­ply­ing with the new norms with RERA reg­is­tra­tion be­com­ing the pri­mary tool of project pro­mo­tion. Though the medium of pro­mo­tion re­mains the same i.e. dig­i­tal and print me­dia, the changes are in the fo­cus of the strate­gies. The pre-launch mar­ket­ing is all about gath­er­ing the ex­pres­sion of in­ter­est from the con­sumers. Dur­ing the launch of the project, the de­vel­oper tries to pen­e­trate ag­gres­sively into the mar­ket through on-site & off-site cus­tomer en­gage­ments. For most de­vel­op­ers, this ac­tive en­gage­ment with buy­ers con­tin­ues through the con­struc­tion cy­cle of the project till the de­liv­ery and some­times be­yond that. As au­gus­tine J sel­wyn, Di­rec­tor- Mar­ket­ing and sales at ter­raform Realty elab­o­rates, “Sud­den change in real-es­tate mar­ket­ing is ev­i­dent post RERA. Pre-launches with­out

Prior to the RERA, the mar­ket­ing of real es­tate projects were more fo­cused on gen­er­at­ing leads. Once RERA came into force, the mar­ket­ing strate­gies shifted to gain­ing cus­tomer con­fi­dence.

Given the ris­ing pop­u­lar­ity of smart­phones and falling data tar­iffs, ac­cord­ing to a sur­vey, dig­i­tal ad­ver­tis­ing spend in In­dia is likely to grow to Rs. 13,000 crore by De­cem­ber 2018.

ap­provals have be­come a thing of the past. Off the Cuff Mar­ket­ing pro­grams have dis­ap­peared. Un­der writ­ing Sales mod­ules by Bro­kers is not the norm any­more. Sales Ve­loc­ity will now be mapped to the Con­struc­tion Funds re­quired and the de­liv­ery date com­mit­ted to RERA. Price calls & quan­tity to be knocked off at what price point, will be more based on Cash flow re­quire­ment (more log­i­cal), less on per­cep­tion and mar­ket es­ti­mate es­pe­cially with the des­ig­nated ac­count sys­tem in place. Clar­ity to the cus­tomer is far more now-like, ameni­ties, spec­i­fi­ca­tions, de­liv­ery sched­ule and car­pet area / net use­able area etc. Con­struc­tion Fund­ing tied to Sales Q-O-Q will also bring in a new an­gle to sales plan­ning.”

The con­sumer con­nect

The use of tech­nol­ogy in cus­tomer re­la­tion­ship man­age­ment and ef­fec­tive use of the data base of prospects is be­com­ing in­creas­ingly im­por­tant. An­a­lyt­ics and the shar­ing of data to be able to re-tar­get prospects that vis­ited a site and did not buy is the key. For the cost of sell­ing to a prospect a com­pany has al­ready en­gaged with is lower than in gen­er­at­ing a fresh sale given the lower level of de­mand in real-es­tate pur­chase at this time. A favourite modus operandi of de­vel­op­ers in terms of mar­ket­ing is the en­dorse­ment by a brand am­bas­sador. Talk­ing about the rel­e­vance of a brand am­bas­sador, Gera said, “By and large, brand am­bas­sadors are re­ally the only way of get­ting the at­ten­tion of prospec­tive home buy­ers to­wards the project. How­ever, given the re­cent is­sues with the real-es­tate sec­tor, brand am­bas­sadors are ex­tremely re­luc­tant to as­so­ciate with real-es­tate projects.” Cit­ing his own ex­am­ple, he added, “In the case of Gera De­vel­op­ments, for our Child­cen­trictm Homes project, our sports brand am­bas­sador has a tie up with the project for a longer du­ra­tion as his sports academies will pro­vide coach­ing fa­cil­i­ties for the chil­dren and the res­i­dents in the project. This sort of a tie up is enor­mously value ac­cre­tive not only for the real es­tate de­vel­oper and his project but also for the brand am­bas­sadors and the cus­tomers. Like­wise, Learn­ing, In­spi­ra­tion, Net­work­ing & Train­ing (LINT) is a com­mu­nity build­ing ini­tia­tive borne out of Gera Devel­op­ment’s cor­po­rate phi­los­o­phy and brand prom­ise for its com­mer­cial cus­tomers. It is a oneof-a-kind en­deav­our by any realestate brand to build a mean­ing­ful en­gage­ment plat­form with their cus­tomers.” In the chang­ing en­vi­ron­ment, the de­vel­op­ers are find­ing new ways con­nect to their home­buy­ers. Var­i­ous ac­tiv­i­ties have been ini­ti­ated by the de­vel­op­ers for the peo­ple liv­ing in their newly oc­cu­pied projects. These are the nifty prac­tices to at­tract the po­ten­tial home­buy­ers. Ev­ery project is as­sessed in­de­pen­dently as to what sort of mar­ket­ing spend is re­quired for the project. By and large projects in very prime lo­ca­tions es­pe­cially com­mer­cial projects re­quire much less mar­ket­ing spend than projects which have been set up to cre­ate a desti­na­tion. “The cost of ac­quir­ing cus­tomers has gone up sig­nif­i­cantly. Be it the Dig­i­tal or Print or Out­door. In­ef­fi­ciency of the sales force at the (POP) point of con­ver­sion or the lead gen­er­a­tion team at call cen­tre could fur­ther im­pact this cost. With many agen­cies now cre­at­ing a pro­fes­sional set up to dis­trib­ute real es­tate stock (es­pe­cially due to RERA), the de­pen­dency on such chan­nels is in­creas­ing by the day. In spite of heavy mar­ket­ing ex­pen­di­ture, the dis­tri­bu­tion cost through local bro­kers, IPCS, cor­po­rate / in­sti­tu­tional broking houses are also ris­ing,” stated Au­gus­tine Con­sid­er­ing the scale of changes that have been in­tro­duced in the realty sec­tor, the in­dus­try has been ex­tremely re­silient. De­vel­op­ers are ex­tremely fo­cused on com­plet­ing their on-go­ing projects. This is more so in states where RERA has been im­ple­mented in let­ter and spirit. If this trend con­tin­ues we will see con­sumer con­fi­dence re­turn in 2018 and de­vel­op­ers will use the year to re­cap­i­talise.

A com­bi­na­tion of Bought me­dia - which in­cludes print, dig­i­tal, ra­dio, tele­vi­sion and sig­nage and Owned me­dia – which in­cludes web­sites, emails, CRM, blogs and so­cial net­works, can com­mu­ni­cate the brand and make it rel­e­vant for the Earned me­dia chan­nel – which in­cludes PR and so­cial me­dia.

david Ap­pasamy

ro­hit gera

Au­gus­tine J Sel­wyn

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.