A strategic market plan for Lloyds realty limited

Abstract

Lloyds Realty Limited is the wholly owned subsidiary of Lloyds Steel Industries Limited. Lloyds Realty, a Lloyds group company is actively involved in Real Estate business since 1992. Having established their name in the Bombay and Pune Real Estate markets for value addition. Their target now is Bangalore- the favourite destination of many Real Estate Developers. Lloyds are coming up with a self sufficient, Rs. 4000 crore township in Bangalore, christened "LLOYDS CITY", comprising of 40,000 residential units and a host of facilities and amenities for a wide range of income groups making it worthy of" a city within a city." Lloyds are the first to embark upon such a project, in line with the intentions of the Karnataka Government to de-congest Bangalore city. Being, relatively new to Real Estate business and to Bangalore, a conceptually different project of such a large magnitude, poses a tiff challenge to Lloyds Realty, who are trying to establish themselves in this business. This gave rise to a need fora study, to make Lloyds City project a success and the study titled, "A Strategic Market Plan" for Lloyds Realty Limited, was taken up. The project was guided by Prof. MJ. Xavier and Prof. S. Ramesh Kumar from Indian Institute of Management, Bangalore with unlimited support from Mr. Nikhil Mathur, (CEO) and Mr. Goyal (G.M. Finance) from Lloyds Realty Limited. The main objective of the study was to evolve a Market Plan, by identifying the market opportunities and matching it with the core capabilities of Lloyds, which would help them position as a major player in the housing construction sector. The study was begun, by classifying the information required and their possible sources under different heads. The primary data required was obtained by conducting depth interviews and a Market Research Survey. The Market research reports, news paper clippings, journals and databases like CD-ROM and VANSCOM provided the secondary data. The compiled data was analysed, which formed the basis for our recommendations. The study suggests that there will be a shortage of about one lakh sixty thousand houses in Bangalore by the turn of the century, which provides ample opportunity for new entrants in this business. It enabled us to identify, Government, Developers. Rating Agencies, Housing Finance Companies and Real Estate Agents as the major influences of Real Estate business and the role played by each to promote the growth of the housing sector. The market research survey provided insights in to the customer segments, needs, preferences, and the options available to them. The analysis of the company and the link established to the study, helped us to arrive at the recommendations which will enable Lloyds to make a mark in the housing construction sector. Recommendations:1. Infrastructure development will play a vital role in determining the success of their "Lloyds City" project. Lloyds should give utmost importance to Infrastructure development and also communicate their seriousness to thepeople.2. Lloyds should get their project rated by a leading rating agency, which will benefit them in streamlining their systems and procedures and will help them establish a Corporate image in a sector characterised by irregularities.3. The major segments they should address are* Private Employees * Corporates and Banking Majors* Investors * NRFs4. They should strengthen their marketing network to address the abovesegments5. They should tie up with leading Housing Finance Companies and work out ways to get HFC'c open counters on Lloyds premises. This single window facility will benefit customers, HFC's and Lloyds to a great extent.6. They should use latest communicating tools in the real estate business to promote their product.