1.

Comment on Vaseem's understanding of the client's management decision problem, market

research problems, and information needs.

-Vaseem, MD of Shodh market research agency, clearly understood about the requirements of its
client, Oriental builder’s Ltd. (OBL).

After facing depressed consumer demands in mid-range, premium and luxury segments due to rising
interest rates, builders were looking for the next phase of growth. An undeveloped segment of
economy housing apartments looked appealing amongst all the players, with OBL especially
interested in targeting middle-income customers in B1, B2 and C socio-economic segments with
apartments ranging from 700-900 sq. feet. OBL surmised that by simultaneously launching multiple
economy housing projects across 10 cities in South India, would accredit the company to gain first
mover advantage thereby building a strong brand name. However, they were cynical about
consumer behaviour/expectations, actual demand and lower margins. Therefore OBL wanted to
conduct a market research study in the economy housing Market for understanding its characteristic
and examining the opportunities in housing market in the price range of below Rs.2.5 million, before
venturing to other cities.

Clients Management Decision Problem:

Vaseem took into consideration that the client (OBL) wanted to enter the economy housing segment
in a big way and would therefore want to gather information about:
- Market attractiveness and potential in the economy segment
- Locations within the Bengaluru where economic projects were likely to succeed
- Features and the price that consumer were willing to pay for.
- Profile of target consumers
- Key variables of consumer Behavior

Market Research Problems:

For Market research, Vaseem considered the following parameters:

- To find the most potential segment of prospective consumers as per the demographic,
geographic and psychographic profiles.
- To study the price perception and price sensitivity for target consumers
- To decide the product profile for the economy houses.
- To study the preferred features and preferred price structure of target consumers.
- To find a suitable Location for the housing project.

Information Needs:

In order to know more about the Economy housing segment, Vaseem recognized that Shodh would
need to do the followings to extract more data for the economy housing segment:
- Exploratory research involving secondary data analysis.
- Interviewing Experts and foreign players in the market.
- Conducting focus group discussions for obtaining information about consumer requirements
and preferences.
- Conducting conjoint analysis to understand the tradeoff between the consumer demand and
the client offerings.
2. Are the Research designs proposed by Shodh Appropriate?

- Yes, the research designs proposed by Shodh are appropriate.

Stages Their Usage

Secondary Data This will help in determining the emerging Housing market scenarios in
Analysis Bengaluru.
It will be helpful in studying the time based absorption pattern of economy
houses in current project by rivals
Quantitative Research Focus group discussions will help in studying the minds of the Target consumers.
Expert Interviews will help in studying the strengths and weakness of the
competitors
Primary Research It will help in estimating the proportion of intended buyers

3. How could Shodh collect information on competitor activity and plans?

- Shodh could collect information on competitor activity and plans in the following ways:

 Checking the competitors’ website which would tell them about the ongoing projects and
the upcoming projects in different locations.
 Checking the website would also help the team to know the number of apartments/flats
vacant and the price offering of the competitor.
 Sources such as newspapers, magazines and television can be used to further gather
information about the way competitors are trying to get in minds of the consumers.
 The data collected could be used to profile the competitors in terms of pricing strategy,
positioning strategies and selling propositions.
 Information can also be collected from various property dealers in Bengaluru to further
understand the buying preferences of the consumers.

4. Develop a moderator guide for focus group in economy housing.

- 1. Introduction:

Shodh, a Bengaluru based market research agency wants to conduct a research study in the
economy housing segment. The qualitative research would be helpful in understanding the supply
side of the apartments and would give an insight in understanding the buying preferences and
patterns of the consumer.

1.1 Research Objective:

Shodh’s research objective lies in assessing the market opportunities in the economy housing
segment (apartments costing below 2.5 million) in Bengaluru.

2. Respondents Profile:

 People belonging to SEC C, B1 and B2 socioeconomic strata.

 People with annual incomes between INR 2 and 5 million.
 Female age group: 25 to 50 years.
 Male age group: 30 to 55 years.
2.1 Logistics:

 Date:
 Time:
 Venue:

3. Moderator Guide and Script

3.1 Introduction:

Oriental Builders Limited is a real estate development company located in South India. They are
working on a project to offer economy housing in 10 major cities of South India. They are planning to
offer houses with areas ranging from 700-900 square feet. For this, OBL wants to estimate demand
potential and evaluate the attractiveness of the economy housing concept in selected areas of
Bangalore. We thank you all for being part of this focus group.

3.2 Directions:

 For the next few hours, I’ll be taking notes and will video tape the discussion which will be
used solely for research purpose.
 There are no right or wrong answers. We’re looking for your opinions in different situations.
 You’re requested to participate actively in all the activities that will be carried out.

3.3 Ice Breaker:

 Everyone are requested to introduce themselves to the group.

 Also, their profession and the duration of stay in Bengaluru.

3.4 Phases of Discussion:

I. Phase-1(Game):

 The respondents will be asked to design/draw a house suitable to their requirements and
budget.
 They will be provided with all the stationery materials.
 Also, they will be asked to mention the three most important things they look while buying a
house.
 Furthermore, they will be asked to write one thing which they want to change about their
current house/apartment.

All the respondents would be asked the reasons for selecting some features over the others and
their thought process about the same.

II. Phase-2 (One to one interview):

Dialogues would go from general to specific:

1. Did you enjoy the activity of building a house?

2. How long have you been staying in Bengaluru?
3. Do you have a nuclear or a joint family?
4. How many members are there in your family?
5. Where do you work?
6. How far is your work location from your home?
 7. Do you own a house or is it a rented one?
8. What is the size of your house/apartment?
9. Does it have sufficient rooms to cater to your needs?
10. Do you have a hospital or a school nearby?
11. Things you like and dislike about your current house?
12. If given an option, would you be comfortable in shifting to a new place in Bengaluru?
13. Who will take house buying decision in your family?
14. What are the most important parameters in purchasing a house in Bengaluru?
15. Would you be willing to pay extra amount for recreational activities like gym, parks, clubs,
etc.? If yes, then how much?
16. Which builder would you prefer?
17. Would you like a well furnished apartment or would like to be customised according to your
needs?

This way, we’ll be building questions as per the response of the respondents.

Is there anything we’ve missed out and you’d like to add on?

4. Conclusion:

Thank you for your time. This would help us in assisting you better.

5. What sampling approach should Shodh use?

Stratified sampling technique can be used in carrying out research for OBL (Orient Builders Ltd.) in
understanding target customer better. The technique of the stratified sampling is “what
characteristic should be used to further divide the target population”, “how many strata(s) should be
there” and “how many observations to be considered in each of them”.

Total population of Bangalore is 8.42 million by 2011. OBL wants to target people whose income
bracket is INR 2-5 million. They are willing to research on 25 to 30 wards in the city and end
customer of various socio economic segments like SEC C, B1, B2. People living in these segments are
generally middle class families. If Shodh uses stratified sampling, then among these 25 to 30 wards
they would have to make various strata depending upon the income level and the consumer socio-
economic segments.

There may be many high income group and low income group people in these wards which Shodh
team have to ignore further research. There may be many people in these wards who are in the
middle income bracket and belong to the above socio economic segment but not be willing to buy
the apartments. In progress, our research narrows down to the group interested in buying these
apartments.

6. Design a questionnaire for the study.

- SURVEY QUESTIONNAIRE:

1. Respondent working in:

Sarjapur road □ White feld □ Outer ring road □

Koramangala □ Banaswadi □ Others □

1.1 Are you staying in a rented place/company leased house?

Yes □ No □

Do you own a house/flat/apartment in anyone of the above following places?

Yes □ No□

1.2 Do you intend to buy a new flat or apartment in the above mentioned places in the
next two years?

Yes □ No □

1.3 Tick the locality where you intend to buy a flat/apartment:

Sarjapur road □ White feld □ Outer ring road □
Koramangala □ Banaswadi □ Others □

1.4 How many years you have been staying in the current location? …………………

1.5 What is the budget you have in mind to buy a flat/apartment/house in the above
mentioned places?

Less than INR 500,000 □

INR 500,000 to 800,000 □
INR 800,000 to 1,000,000 □
INR 1,000,000 to 1,200,000 □
INR 1,200,000 to 1,600,000 □
INR 1,600,000 to 2,000,000 □

1.6 Personal details:

a. Age of the Respondent: ……..………………….

b. Education of the Respondent: ………………….
c. Occupation of the Respondent: ………………….
d. Total monthly household income ………………..

2.1 When we say housing for middle class families in and around the above mentioned
places and Bangalore outskirts which Developers’ names come to your mind?

2.2 Please mention the names of housing projects undertaken by the above Developers suitable
to your housing needs?
2.3 Please tell us the sources of awareness of Developers through which you came to
know about the middle class housing projects in the above mentioned places and
its surrounding places. Please circle the appropriate number on each one of the
media entered below.
TV Advertising □
Magazines/newspapers □
Word of mouth □
Salesman visit □
Hoardings/Billboards □
Exhibitions/Fair/ Events/Road shows □
AM/FM Radio Channel □
Real Estate agent visit □
Website/e-mail □
Other sources of information □

2.4 If you are buying an apartment/flat in the above mentioned places, are you willing to
relocate to the place immediately?
Yes □ No □ Undecided □

-Are you interested in being contacted by us about land housing opportunities that arise?
-Yes/no