Summer training report

On

Consumer behaviour towards Bullmen Realty

Submitted in partial fulfilment of the degree of

Master of Business Administration
Affiliated
To
Maharishi Dayanand University (Rohtak)

Submitted to: Submitted by:

The Controller of Examination VARUN SHARMA

M.D.U. (Rohtak) MBA 3rd SEM
Reg.No. 2211291215

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 Acknowledgement
Training report is an important milestone in the completion of any professional course. As a
student of MBA marketing, I got a golden opportunity to do the research work. It gives me the
immense pleasure to express my feelings of deep gratitude towards my guide Dr. Dhrity Ahuja
without the support of whom it would have been very difficult to accomplish this project. Also,
I wish to express my thanks to my principal Dr. Satish Ahuja, my seniors, friends, classmates
and everyone who inspired me to pursue this project in the best possible way. I would like to
thank all those who have helped in providing direction, information, and advice at all stages in
this training report.

VARUN SHARMA

TABLE OF CONTENTS

S.NO. PARTICULARS PAGE NO.

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1 Introduction to industry 1-12
2 Introduction to topic 13-21
3 Review of literature 22-28
4 Research methodology 29-38
5 Data analysis and 39-50
interpretation
6 Conclusion, 51-56
recommendation,
bibliography and
Questionnaire

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 CHAPTER: 1
INTRODUCTION
TO
INDUSTRY

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Introduction
Real estate sector is one of the most globally recognized sectors. It comprises of four sub
sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth in the corporate environment and the demand for office space as
well as urban and semi-urban accommodations. The construction industry ranks third among
the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the
economy.
In India, the real estate sector is the second-highest employment generator, after the agriculture
sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment,
both in the short term and the long term. Bengaluru is expected to be the most favoured property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and
Dehradun.

History of real estate

As a whole, real estate is sensitive to the ups and downs of the economy. Throughout the 19th
and early 20th century, the combination of a capitalist economy and a growing population made
the expansion of land-use a hot market.
The economic prosperity of the 1920s brought about a huge surge in real estate, especially in
housing, but by the mid-1930s, 16 million people were unemployed and the demand for real
estate of all types declined. Soon after, World War II brought technological innovation and a
backlog of demand for new construction.
The mortgage stability introduced by federal legislation following the Great Depression and
World War II greatly aided the huge expansion of suburban housing that followed the war.
A precursor to the house flipping phenomenon was the enactment of the Federal Real Estate
Investment Trust (REIT) legislation. On Sept. 14, 1960, President Dwight D. Eisenhower
signed legislation that combined the best attributes of real estate and stock-based investment to
create a new way of producing income.
This act made it easier for large investors to pool resources for real estate projects. The
legislation has been modified over the years and has led to a much larger real estate industry,
and as you may know, expanding industries are always looking for new markets.
As a result, today, there is a much greater opportunity for those looking to pursue property
investment.

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In the 1980s, television programs such as the PBS feature “This Old House” gave rise to dozens
of home improvement programs on cable television. Since then, the entertainment industry has
taken the lure of reality TV, combined it with the popularity of REI, and ran with it.
The spike in shows based on home repair, house flipping, and DIY projects, has encouraged
thousands of real estate investments in recent years, while such high ratings continue to provide
a powerful venue for real estate pros.

At the same time, the economic recession of the 1980s had the double effect of holding down
stock market earnings and increasing the number of house foreclosures. With an ample supply
of foreclosed homes for potential renovation, golden opportunities for property investment
made an appearance.
Soon, dreams of investment success and financial freedom became real, and profitable property
investment was found to be an attainable goal for average Americans.

When did housing become an investment?

The economic recession of the 1980s kindled the fire for real estate investment with more
foreclosed properties on the market. But it wasn’t until around the year 2000 that flipping
houses really took off.

That’s also when the massive pricing bubble occurred. This was followed by the mammoth
housing crash and economic downturn.

By that time, the Fed had been lowering rates with each downturn of the economic cycle.
Meanwhile, countries like China were buying up U.S. debt in an effort to manage their own
currencies against the dollar.

There was a great deal of liquidity in the economies of the developed world, including the U.S.
Some have even pointed to the bursting of the tech bubble as giving rise to the real estate
investment trend, as that money was pulled out of Internet start-ups and found a new home in
real estate investments.

With the continued decline in mortgage rates, real estate investing started to look attractive to
those looking to put their dollars into something new.

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While real estate investing may have started as a fad, the housing crash brought with it a fresh
supply of distressed properties and a new pool of potential renters as displaced homeowners
were forced to lease.

With mortgage rates low, real estate investing began to take off and soon became an attainable
goal for homeowners who were financially stable enough or had enough equity in their primary
residence to secure financing.

No longer just a side-line for real estate agents or a new portfolio for the wealthy, real estate
investing began to hit mainstream homeowners who were suddenly flipping houses or adding
the job of the landlord to their resume.

IMPORTANT DATES IN REAL ESTATE HISTORY

The real estate industry traces its roots all the way back to the early 1800s when the Louisiana
purchase became the first major real estate acquisition made by the U.S.

By 1855, the first real estate brokerage was established and by 1908, the National Association
of Real Estate Agents, the predecessor to today’s National Association of Realtors, was
founded. The association became the originator of the term “realtor” to distinguish members
from non-member agents.

The Great Depression led to the New Deal in 1938 and the development of the Federal National
Mortgage Association, which became known as Fannie Mae.

By the 1960s, local multiple listing services began sprouting up state by state. In 1970, the
Federal Home Loan Mortgage Composition, or Freddie Mac, was established.

The 1980s saw historically high mortgage rates, while the 1990s heralded a new era in real
estate as listings started becoming available online.

By the start of the new millennium, prospective buyers were finding it even easier to search
listings with the establishment of broker reciprocity, known as the IDX.

But all the tech advances affecting real estate would soon be overshadowed by the mortgage
crisis of 2007. Real estate values plummeted, causing an economic crisis as many homeowners
found themselves owing more on their mortgage loan than their home was worth.

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It wasn’t until 2012, the economy showed signs of a full recovery while interest rates remained

at historic lows. SEE YOUR LOAN RATE IN 30 SECONDS OR L

Market Size
By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000
crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion
in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s
GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly,
providing the much-needed infrastructure for India's growing needs.
As per ICRA estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48 billion)
through infrastructure and real estate investment trusts in 2022, as compared with raised funds
worth US$ 29 billion to date.
The office market in top eight cities recorded transactions of 22.2 MSF from July 2020 to
December 2020, whereas new completions were recorded at 17.2 MSF in the same period. In
terms of share of sectoral occupiers, Information Technology (IT/ITeS) sector dominated with
a 41% share in second half of 2020, followed by BSFI and Manufacturing sectors with 16%
each, while Other Services and Co-working sectors recorded 17% and 10%, respectively.
According to Savills India, real estate demand for data centres is expected to increase by 15-
18 million sq. ft. by 2025.
In 2020, the manufacturing sector accounted for 24% of office space leasing at 5.7 million
square feet. SMEs and electronic component manufacturers leased the most between Pune,
Chennai and Delhi NCR, followed by auto sector leasing in Chennai, Ahmedabad and Pune.
The 3PL, e-commerce and retail segments accounted for 34%, 26% and 9% of office space
leases, respectively. Of the total PE investments in real estate in Q4 FY21, the office segment
attracted 71% share, followed by retail at 15% and residential and warehousing with 7% each.
According to JLL India, in the third quarter of 2021, India's net office absorption reached 5.85
million sq. ft., up 8% YoY in key cities. Three cities—Delhi-NCR, Mumbai and Pune—
accounted for ~62% of the total volumes recorded in the quarter.
Between July 2021 and September 2021, a total of 55,907 new housing units were sold in the
eight micro markets in India (59% YoY growth).
In the third quarter of 2021 (between July 2021 and September 2021), new housing supply
stood at ~65,211 units, increased by 228% YoY across the top eight cities compared with
~19,865 units launched in the third quarter of 2020.

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In 2021-22, the commercial space is expected to record increasing investments. For instance,
in October 2021, Chintels Group announced to invest Rs. 400 crore (US$ 53.47 million) to
build a new commercial project in Gurugram, covering a 9.28 lakh square feet area.
According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000
people per year compared with the required construction rate of five houses per 1,000
population. The current shortage of housing in urban areas is estimated to be ~10 million units.
An additional 25 million units of affordable housing are required by 2030 to meet the growth
in the country’s urban population.
Investments/Developments
Indian real estate sector has witnessed high growth in the recent times with rise in demand for
office as well as residential spaces. According to Colliers India, a property consultant,
institutional investments in the Indian real estate sector are expected to increase by 4% to reach
Rs. 36,500 crore (US$ 5 billion) in 2021, driven by rising interest of investors towards
capturing attractive valuations amid the pandemic. According to a recent report by Colliers
India, private equity investments in Indian real estate reached US$ 2.9 billion in the first half
of 2021, which was a >2x increase from the first half in 2020.
Exports from SEZs reached Rs. 7.96 lakh crore (US$ 113.0 billion) in FY20 and grew ~13.6%
from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19.
In July 2021, the Securities and Exchange Board of India lowered the minimum application
value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000
(US$ 137.06 - US$ 205.59) to make the market more accessible to small and retail investors.
According to the data released by Department for Promotion of Industry and Internal Trade
Policy (DPIIT), construction is the third-largest sector in terms of FDI inflow. Construction is
the third-largest sector in terms of FDI inflow. FDI in the sector (including construction
development & activities) stood at US$ 51.5 billion between April 2000 and June 2021.
Some of the major investments and developments in this sector are as follows:
• Between January 2021 and September 2021, private equity investment inflows into the
real estate sector in India stood at US$ 3.3 billion.
• Home sales volume across seven major cities in India surged 113% YoY to reach
~62,800 units in the third quarter 2021, from 29,520 units in the same period last year,
signifying healthy recovery post the strict lockdown imposed in the second quarter due
to the spread of COVID-19 in the country.

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• In the third quarter of 2021, the Institutional real estate investment in India increased
by 7% YoY. Investment registered in the first nine months of 2021 stood at US$ 2,977
million, as against US$ 1,534 million in the same period last year.
• In November 2021, Ascends India bought Au rum Ventures’ 16-storey commercial
tower in Navi Mumbai for Rs. 353 crore (US$ 47 million), making it the largest deal of
a standalone commercial tower by a global institutional investor during the past few
years.
• REA India-owned online real estate company Housing.com tied up with online legal
assistance start-ups Legal Kart, Lawrato, Vidhi Arya and Vakil in 2021 to offer legal
advice and assistance to homebuyers.
• Top three cities—Mumbai (~39%), NCR-Delhi (~19%) and Bengaluru (~19%)—
attracted ~77% of the total investments recorded in the third quarter of 2021.
• India's flexible space stock is likely to expand by 10-15% YoY, from the current 36
million sq. ft., in the next three years, according to a report by CBRE.
• To establish an investment platform for the Indian retail-led mixed-use assets, in June
2021, GIC announced to acquire a minority stake in Phoenix Mills’ portfolio (worth
US$ 733 million).
• In May 2021, Blackstone Real Estate acquired Embassy Industrial Parks for Rs. 5,250
crore (US$ 716.49 million) to expand its presence in the country.
• To expand into the Indian real estate market, SRAM & MRAM Group collaborated
with Area CAS Developers and Infrastructure Private Limited (Area Group), and Gupta
Builders and Promoters Private Limited (GBP Group) of India. It plans to invest US$
100 million in the real estate sector.
• According to Ana rock, housing sales in seven cities increased by 29% and new
launches by 51% in Q4 FY21 over Q4 FY20.
• Private market investor, Blackstone, which has significantly invested in the Indian real
estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an
additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.
• In 2021, working remotely is being adopted at a fast pace and demand for affordable
houses with ticket size below Rs. 40-50 lakh is expected to rise in Tier 2 and 3 cities,
leading to an increase in prices in those geographies.
• In April 2021, HDFC Capital Advisors (HDFC Capital) partnered with Cerberus
Capital Management (Cerberus) to create a platform that will focus on high-yield

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 opportunities in the residential real estate sector in India. The platform seeks to
purchase inventory and provide last-mile funding for under construction residential
projects across the country.
• In March 2021, Godrej Properties announced it would launch 10 new real estate
projects in Q4.
• In March 2021, Godrej Properties increased its equity stake in Godrej Realty from 51%
to 100% by acquiring equity shares from HDFC Venture Trustee Company.
• In January 2021, SOBHA Limited’s wholly owned subsidiary, Sabha Highrise
Ventures Pvt. Ltd. acquired 100% share in Annalakshmi Land Developers Pvt. Ltd.

Government Initiatives
Government of India along with the governments of respective States has taken several
initiatives to encourage development in the sector. The Smart City Project, with a plan to build
100 smart cities, is a prime opportunity for real estate companies. Below are some of the other
major Government initiatives:
• In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%,
giving a major boost to the real estate sector in the country. The low home loan interest
rates regime is expected to drive the housing demand and increase sales by 35-40% in the
festive season in 2021.
• Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2069.89) on interest
on housing loan, and tax holiday for affordable housing projects have been extended until
the end of fiscal 2021-22.
• The Atmanirbhar Bharat 3.0 package announced by Finance Minister Mrs. Nirmala
Sitharaman in November 2020 included income tax relief measures for real estate
developers and homebuyers for primary purchase/sale of residential units of value (up to
Rs. 2 crore (US$ 271,450.60) from November 12, 2020 to June 30, 2021).
• In order to revive around 1,600 stalled housing projects across top cities in the country, the
Union Cabinet has approved the setting up of Rs. 25,000 crore (US$ 3.58 billion)
alternative investment fund (AIF).
• Government has created an Affordable Housing Fund (AHF) in the National Housing Bank
(NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector
lending short fall of banks/financial institutions for micro financing of the HFCs.

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• As of January 31, 2021, India formally approved 425 SEZs, of which 265 were already
operational. Most special economic zones (SEZs) are in the IT/ BPM sector.

Road Ahead
The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate
Investment Trust (REIT) platform, which will allow all kind of investors to invest in the Indian
real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in
the Indian market in the coming years. Responding to an increasingly well-informed consumer
base and bearing in mind the aspect of globalisation, Indian real estate developers have shifted
gears and accepted fresh challenges. The most marked change has been the shift from family-
owned businesses to that of professionally managed ones. Real estate developers, in meeting
the growing need for managing multiple projects across cities, are also investing in centralised
processes to source material and organise manpower and hiring qualified professionals in areas
like project management, architecture and engineering.
The residential sector is expected to grow significantly, with the central government aiming to
build 20 million affordable houses in urban areas across the country by 2022, under the
ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing
and Urban Affairs. Expected growth in the number of housing units in urban areas will increase
the demand for commercial and retail office space.
The current shortage of housing in urban areas is estimated to be ~10 million units. An
additional 25 million units of affordable housing are required by 2030 to meet the growth in
the country’s urban population.
The growing flow of FDI in Indian real estate is encouraging increased transparency.
Developers, in order to attract funding, have revamped their accounting and management
systems to meet due diligence standards. Indian real estate is expected to attract a substantial
amount of FDI in the next two years with US$ 8 billion capital infusion by FY22.

Types of Real Estate

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There are several types of real estate, each with a unique purpose and utility. The main
categories are:

• Land
• Residential
• Commercial
• Industrial

For anyone looking to understand how the industry works and what each of the major
categories represents, the explanations below will be a helpful guide.

#1 Land

Land is the baseline for all types of real property. Land typically refers to undeveloped property
and vacant land. Developers acquire land and combine it with other properties (called
assembly) and rezone it so they can increase the density and increase the value of the property.

#2 Residential

Residential real estate consists of housing for individuals, families, or groups of people. This
is the most common type of estate and is the asset class that most people are familiar with.
Within residential, there are single-family homes, apartments, condominiums, townhouses, and
other types of living arrangements.

#3 Commercial

Commercial property refers to land and buildings that are used by businesses to carry out their
operations. Examples include shopping malls, individual stores, office buildings, parking lots,
medical centres, and hotels.

#4 Industrial

Industrial real estate refers to land and buildings that are used by industrial businesses for
activities such as factories, mechanical productions, research and development, construction,
transportation, logistics, and warehousing.

Types of Real Estate

Examples of Real Estate

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Now that we’ve outlined the four main categories, let’s explore some specific examples of
different types of real property.

Single-family dwelling – Any home designed for only one family

Multi-family dwelling – Any group of homes designed for more than one family

Attached – Any unit that’s connected to another (not freestanding)

Apartment – An individual unit in a multi-unit building. The boundaries of the apartment are
generally defined by a perimeter of locked or lockable doors. Often seen in multi-story
apartment buildings.

Multi-family house – Often seen in multi-story detached buildings, where each floor is a
separate apartment or unit.

Condominium (Condo) – A building with individual units owned by individual people.

Detached house – A free-standing building not connecting to anything else (a stereotypical

“home”)

Portable house – Houses that can be moved on a flatbed truck

Mobile home – A vehicle on wheels that has a permanent residence attached to it

Villa – A building with only one room and typically a steep pointy roof

Hut – A dwelling typically made of raw materials such as bamboo, mud, and clay

Overview of Real Estate Industry

Let’s explore how the industry works and what the major jobs and careers are. The real estate
industry can be divided into several different areas:

• Development
• Sales and marketing
• Brokerage
• Property management
• Lending
• Professional services (law, accounting, etc.)

Let’s look at each of these six areas of the industry in more detail.

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Real Estate Industry

#1 Development

Real estate development is a process that involves the purchase of raw land, rezoning,
construction and renovation of buildings, and sale or lease of the finished product to end users.
Developers earn a profit by adding value to the land (creating buildings or improvements,
rezoning, etc.) and taking the risk of financing a project. Development firms create a new
product, which can be thought of as the “primary market” or generation of new inventory.

#2 Sales and marketing

Sales and marketing firms work with developers to sell the buildings and units they create.
These firms earn a commission for creating all marketing material and using their sales agents
to sell the inventory of completed units. These firms typically focus on new units.

#3 Brokerage

A real estate brokerage is a firm that employs a team of real state agents (realtors) who help
facilitate a transaction between the buyers and sellers of property. Their job is to represent
either party and help them achieve a purchase or sale with the best possible terms.

#4 Property management

Property management firms help real estate owners rent out the units in their buildings. Their
jobs include collecting rent, showing units, fixing deficiencies, performing repairs, and
managing tenants. They charge a fee, typically a percentage of the rent, to property owners.

#5 Real estate lending

Lenders play a major role in the industry as virtually all properties and developments use
leverage (debt) to finance their business. Lenders can include banks, credit unions, private
lenders, and government institutions.

#6 Professional services

There are a variety of real estate professionals who work in the industry and help make it
function. The most common examples (other than the ones listed above) are accountants,
lawyers, interior designers, stagers, general contractors, construction workers, and
tradespeople.

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Construction Area

Careers in Real Estate

If you’re looking for a career in real estate, you may want to consider any of the above six areas
of the industry.

Here are the most common jobs (titles) in the industry:

Analyst – Performing financial analysis and valuation of properties

Appraiser – Valuing properties

Agent – a sales agent or “realtor”

Building Inspector – Someone who examines buildings and works with appraisers

Commercial Broker – An agent who sells commercial properties

Director of Real Estate – A corporate job

Home Inspector – Someone hired to assess the quality of a home for a seller or purchaser

Loan Underwriter – A person who analyses the creditworthiness of a borrower

Mortgage Specialist / Underwriter – A person who approves mortgage applications

Real Estate Attorney – A lawyer who specializes in real estate transactions

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 CHAPTER: 2
INTRODUCTION
TO
TOPIC

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CONSUMER BEHAVIOUR
Consumer behavior is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services. Consumer behavior
consists of how the consumer's emotions, attitudes and preferences affect buying behavior.
Consumer behavior emerged in the 1940–1950s as a distinct sub-discipline of marketing, but
has become an interdisciplinary social science that blends elements from psychology,
sociology, social anthropology, anthropology, ethnography, marketing and economics
(especially behavioral economics).

The study of consumer behavior formally investigates individual qualities such as

demographics, personality lifestyles, and behavioral variables (such as usage rates, usage
occasion, loyalty, brand advocacy, and willingness to provide referrals), in an attempt to
understand people's wants and consumption patterns. Consumer behavior also investigates on
the influences on the consumer, from social groups such as family, friends, sports, and
reference groups, to society in general (brand-influencers, opinion leaders).

Research has shown that consumer behavior is difficult to predict, even for experts in the field;
however, new research methods, such as ethnography, consumer neuroscience, and machine
learningare shedding new light on how consumers make decisions. In addition, customer
relationship management (CRM) databases have become an asset for the analysis of customer
behavior. The extensive data produced by these databases enables detailed examination of
behavioral factors that contribute to customer re-purchase intentions, consumer retention,
loyalty and other behavioral intentions such as the willingness to provide positive referrals,
become brand advocates or engage in customer citizenship activities. Databases also assist in
market segmentation, especially behavioral segmentation such as developing loyalty segments,
which can be used to develop tightly targeted, customized marketing strategies on a one-to-one
basis. (Also see relationship marketing).

Consumer behavior entails "all activities associated with the purchase, use and disposal of
goods and services, including the consumer's emotional, mental and behavioral responses that
precede or follow these activities. The term, consumer can refer to individual consumers as
well as organizational consumers, and more specifically, "an end user, and not necessarily a
purchaser, in the distribution chain of a good or service.” Consumer behavior is concerned
with:

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• purchase activities: the purchase of goods or services; how consumers acquire products
and services, and all the activities leading up to a purchase decision, including information
search, evaluating goods and services ad payment methods including the purchase experience

• use or consumption activities: concerns the who, where, when and how of consumption
and the usage experience, including the symbolic associations and the way that goods are
distributed within families or consumption units

Consumer buying behavior refers to the study of customers and how they behave while
deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers
that drive them to buy and use certain products.

Study of consumer buying behavior is most important for marketers as they can understand the
expectation of the consumers. It helps to understand what makes a consumer to buy a product.
It is important to assess the kind of products liked by consumers so that they can release it to
the market. Marketers can understand the likes and dislikes of consumers and design base their
marketing efforts based on the findings.

Consumer buying behavior studies about the various situations such as what do consumers buy,
why do they buy, when do they buy, how often do consumers buy, for what reason do they
buy, and much more.

For example, consumer buying behavior is studied by consumer researchers and their aim is to
know why women buy moisturizers (to reduce skin problems), the most preferred brand (Olay,
L’Oréal), how often do they apply it (twice a day, thrice a day), where do the women prefer to
buy it (supermarkets, online) and how many times do they buy it (weekly, monthly).

It’s insightful to listen to some of the first cut opinions on Vocalley from consumers on how
they think about various brands and their expectations, when it comes to electronic products
and gadgets.

Importance of Consumer Behavior

Understanding consumer behavior is essential for a company to find success for its current
products as well as new product launches. Every consumer has a different thought process and
attitude towards buying a particular product. If a company fails to understand the reaction of a
consumer towards a product, there are high chances of product failure.

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Due to the changing fashion, technology, trends, living style, disposable income, and similar
other factors, consumer behavior also changes. A marketer has to understand the factors that
are changing so that the marketing efforts can be aligned accordingly.

1. Consumer Differentiation:

In marketing, consumer differentiation is a way to distinguish a consumer from several other

consumers. This helps to make a target group of consumers with the same or similar behavior.

Though you have a targeted customer demographic in your business, you can still have
variations between individual customers. Each group of consumers are different and their needs
and wants differ from other groups. When a marketer is knowledgeable about differentiation
of each group of consumers, he can design separate marketing programes.

Consumer differentiation will help to tailor your strategies to the needs of varying customer
groups. When consumer differentiation is done, you can expand the width and breadth of your
services. You will be able to effectively serve a wider group of people.

2. Retention of Consumers:

“Consumer behavior is of most importance to marketers in business studies as the main aim is
to create and retain customers” says Professor Theodore Levitt (Kumar, 2004).

Consumer behavior is not just important to attract new customers, but it is very important to
retain existing customers as well. When a customer is happy about a particular product, he/she
will repeat the purchase. Therefore, marketing the product should be done in such a way that it
will convince customers to buy the product again and again.

Thus, it is very evident that creating customer and retaining them is very important. This can
be done only by understanding and paying attention towards the consumer’s buying behavior.

3. Design Relevant Marketing Programe:

Understanding consumer behavior allows you to create effective marketing campaigns. Each
campaign can speak specifically to the separate group of consumers based on their behavior.

For example, while targeting kids market, you may have to look out for venues such as TV ads,
school programes and blogs targeting young mothers. You will need to take different
messaging approaches for different consumer groups.

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A study of consumer behavior enables the marketers to understand what motives consumers to
make purchases. Furthermore, the same motive can be utilized in advertising media to stir the
desire to make a purchase. Moreover, marketers should take decisions regarding the brand logo,
coupons, packing and gifts on the basis of consumer behavior.

4. Predicting Market Trend:

Consumer behavior analysis will be the first to indicate a shift in market trend. For example,
the recent trend of consumers is towards environment friendliness and healthy food. This
changing market trend was observed by many brands including McDonalds. Based on the
consumer behavior, McDonald’s brought healthy food options.

By conducting consumer behavior study, a company saves a lot of resources that might
otherwise be allocated to produce a product that will not be sold in the market. For example, in
summer a brand will not waste its resources for producing a product that will not sell in
summer. Based on consumer behavior the company decides on production strategy which will
save on warehouse costs and marketing costs.

5. Competition:

Studying consumer behavior facilitates in understanding and facing competition. Based on

consumers’ expectations, your brand can offer competitive advantages.

6. Innovate New Products:

We all know some of the big names such as New Coke, Crystal Pepsi, Colgate Kitchen Entrées,
Earring Magic Ken Doll, and Wheaties Dunk-a-Balls Cereal. Can you see the similarities in
these products? Yes, they all failed!!

The sad truth is that most new products and new ideas end up in failure. There is an estimate
of new product failures – they range from 33% to 90% based on the kind of industry.

Companies consistently strive hard to improve the success rate of their new products or new
ideas. One of the most important ways is to conduct sound and thoughtful consumer behavior
study.

With the help of consumer behavior analysis, Nike realized that most of its target audience is
not professional athletes, but many of them were striving to be more like them. So at the 2012

21
Olympics in London, Nike introduced a campaign to encourage athletics called ‘Find Your
Greatness’. It aimed to promote the aspirations of being an athlete, not just with high-
performing athletes, but wanted to include all people regardless of their physical capability.
The campaign was well planned and was data-driven, of course, carefully analyzed before
taking any action. This message inspired many consumers and had enormous appeal for target
consumers.

7. Stay Relevant in the Market

When the world is changing as rapidly as it is happening today, the biggest challenge we all
face is staying relevant to our target market. And do you know what is the main reason behind
the rapid changes? It is the ever-changing behavior of our customers.

Today’s consumers have greater choices and opportunities, which means they can easily switch
to a company that offers better products and services.

“The pre-eminent skill required to shift ahead in the twenty-first century is the ability to see
and seize.” -Adamson and Steckel, authors of Shift Ahead.

Losing relevance will only cost the company its market share. Haven’t we seen Sony Walkman
failing to stay relevant in the digital music era, and the taxi industry doom with no preparedness
to battle the UBER uprise!!

8. Improve Customer Service

Consumers require different levels of customer service, and understanding the differences
within your customer base will help you provide the most appropriate service for individual
needs.

• disposal activities: concerns the way that consumers dispose of products and packaging;
may also include reselling activities such as eBay and second-hand markets.

Consumer responses may be:

• emotional (or affective) responses: refer to emotions such as feelings or moods,

• mental (or cognitive) responses: refer to the consumer's thought processes, their

22
• Behavioral responses: refer to the consumer's observable responses in relation to the
purchase and disposal of goods or services.

Definition of Consumer Behavior According to American Marketing Association, consumer

behavior can be defined as "the dynamic interaction of affect and cognition, behavior, and
environmental events by which human beings conduct the exchange aspects of their lives."

As a field of study, consumer behavior is an applied social science. Consumer behavior analysis
is the "use of behavior principles, usually gained experimentally, to interpret human economic
consumption." As a discipline, consumer behavior stands at the intersection of economic
psychology and marketing science

bullmen realty
Bullmen Realty India Pvt. Limited is a growing real estate company that deals with buying,
selling and operating self-owned or leased real estate, suitable as per the client demands. The
company is proudly dealing with some of the top builders (MMR, Saya, Shri Groups,
Supertech, Lotus Greens, ACE, Wave, WTC, Antriksh etc.) together with the well-organized
and formidable sales team.

Bullmen Realty India Private Limited is a Private incorporated on 20 January 2015. It is

classified as nosn-govt company and is registered at Registrar of Companies, Kanpur. Its
authorized share capital is Rs. 500,000 and its paid-up capital is Rs. 150,000. It is involved in
Real estate activities with own or leased property. [This class includes buying, selling, renting
and operating of self-owned or leased real estate such as apartment building and dwellings,
non-residential buildings, developing and subdividing real estate into lots etc. Also included
are development and sale of land and cemetery lots, operating of apartment hotels and
residential mobile home sites. (Development on own account involving construction is
classified in class 4520).]

Bullmen Realty India Private Limited's Annual General Meeting (AGM) was last held on 31
December 2020 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet
was last filed on 31 March 2020.

Directors of Bullmen Realty India Private Limited are Arshad Jawed, Ankush Jain and
Samiksha Jain.

Current status of Bullmen Realty India Private Limited is - Active.

23
Actively pacing ahead in the development and sale of land, hotels and residential sites the
company main focus is to provide a helping hand to the masses and an easy access to the land
they desire.

We venerate talent, passionate beings are most welcome.

Directors of the company are Ankush Jain, Samiksha Jain, Arshad Jawed with Assistant
Director Vivek Gupta and Prem Mohan Singh.

CONSUMER BEHAVIOUR TOWARDS BULLMEN REALTY

The study of consumer behaviour (CB) is very important to the marketers because it enables
them to understand and predict buying behaviour of consumers in the marketplace. Consumer
behaviour is concerned with what customers buy, how they buy it, where they buy it, why they
buy it and from whom they buy it. It also studies how they consume and dispose of the products.
Consumer behaviour is studied by focusing on every phase of the consumption process: before
the purchase, during the purchase, and after the purchase. Research shows that different buyers
buy the same product for different reasons; pay different prices, use it in different ways, have
different emotional attachments towards the things and so on. According to Professor Theodore
Levitt of the Harvard Business School, the study of Consumer Behaviour is one of the most
important in business education, because the purpose of a business is to create and keep
customers. Hence, knowledge & information about consumers is vital for developing
successful marketing strategies because it helps in creating and maintaining customers and
building customer relationships.

Vision:

Some may dream of becoming the best real estate consultancy firm in the National Capital
Region, whereas some may think of achieving an annual turnover in crores. But we aspire of
earning the trust and loyalty of our customers that whenever they will think of buying or
recommending a property, only one name evokes in their mind, Bullmen Realty. We envision
our success not from the profits we reap, but the broadness of the smile that comes on the face
of our most valuable customers while entering the doorstep of their dream home.

Mission:

Committed to people, committed to the future. These words truly express the mission of
Bullmen Realty and emanate the values we share with our clients. This emphasizes our respect

24
for the customers, value-creating, and contribution to society. These principles and
philosophies have inspired us to fulfil our corporate social responsibilities and bring a
difference in the lives of our customers by offering a high quality of life.

Even if we may face challenges tomorrow, our mission will aspire and motivates us to stay on
the path that we have envisioned. We endeavour to serve the needs of our customers simply by
implementing forward-looking corporate strategies while carrying out responsive business
activities. As good corporate citizens, we actively contribute to the future goals of society.

Company profile

Name of the company Bullmen Realty India Pvt Ltd

Date of Campus Drive 05.02.2020, 10:00 AM, DBIT DEHRADUN
Company Profile Bullmen Realty is one of the top-notch real
estate consulting firms in India that has
already blown the trumpet of success many
times in the past. Dedication, commitment,
trust and honesty are the four pillars on
which our company stands. Bullmen Realty
was incorporated on 20th January 2015 by
CEO and MD, Mr Ankush Jain, with the
sole purpose of providing best-in-class and
cost-effective real estate properties for our
valuable clients.
Batch 2020
Position Sales Executive/Officer
Job Profile Job Description:
• Interacting with existing and
prospective clients (Investors,
retailers and individuals of high net
worth) so as to keep them upbeat
with the latest developments and

25
 offerings and also making them a
part of our future projects.
• Aggressively achieving the sales
target
• Conducting sales calls and closing
the leads.
• Continuous follow up with the
customers and building & retaining
client relationships through
continuous follow up with clients for
their requirements.
• Conducting market review / studies
and analysing competitor’s activities
thereby devising strategies to
counter them.
• Revenue generation using references
of existing and upcoming projects
and also in conversion of
prospective customers who are
planning to use competitor’s projects
• Coordination with various functions
/ departments at various stages of the
assigned project (like customer
service development, projects,
accounts, etc).

AWARDS AND ACHIEVEMENTS

• 2016- Viewpoint Realty was named one of the “Largest Commercial Real Estate Brokers”
by the Tampa Bay Business Journal
• 2016- Letter of Recognition and Appreciation by Gov. Rick Scott for being included in the
Tampa Bay Business Journal’s list of “Top Commercial Real Estate Brokers”

26
• 2015- Georgette Gillis received the C.I.P.S. (Certified International Property Specialist)
and became a member of NAR Global
• 2010- Ranked as one of the “Top Commercial Real Estate Brokers” by total volume as
published in the Tampa Bay Business Journal
• 2009- Viewpoint Realty received an award for sponsoring CBCC in “Appreciation of Our
Spirit and Commitment” by the Clearwater Beach Chamber of Commerce
• 2006- Ranked as one of the “Top Commercial Real Estate Brokers” by total volume as

published in The Business Journal

• 2006- Presented by Tampa Bay Business Journal, Georgette Gillis was named as a Finalist

for the “Best Commercial Property Sale” in history for Pinellas & Hillsborough Counties

• 2005- Viewpoint Realty received the “10-Year Certificate of Appreciation” by the

Clearwater Beach Chamber of Commerce
• 2005- Ranked in the “Top Commercial Real Estate Brokers” by total volume as

published in The Business Journal

• 2004- Ranked in the “Tampa’s Top Commercial Brokers” by total volume as published in
the Florida Business Journal and the Commercial Real Estate Journal
• 2004- Ranked in the “Top Commercial Real Estate Brokers” by total volume as

published in The Business Journal

• 2003- Georgette Gillis and her husband Rick Gillis received the award for “Beach Citizens
of the Year” and honoured in sincere appreciation of the “Spirit and Commitment to the
Future” by the Clearwater Beach Chamber of Commerce
• 1994- Georgette Gillis wrote an article published by Creative Magazine, for the
International Real Estate section titled “How to Attract (and keep) Foreign Buyers “, which
led to her traveling abroad to perform seminars on this popular topic.
• 1992- Recognized and Featured as “One of the Top Commercial Real Estate Brokers”
published by the Tampa Bay Business Journal.

Swot analysis of the company

27
SWOT analysis (acronym for strengths, weaknesses, opportunities, and threats) is a very
useful model for the development of the real estate in the business and organizational level.
At the beginning of the 60s this analysis appeared as a methodologic resource for the internal
and external analysis of organizations and it has represented since then an authentic revolution
for the business and strategic sector.
SWOT´s main target for a real estate is to manage to define the company´s advantages and the
general strategies which should be introduced according to the specific necessities of the real
estate.
This is an analysis which should take into consideration the real estate´s specific characteristics
and act according to the market´s characteristics for the area where the real estate is visible.
In the field of Real Estate Coaching, SWOT analysis is constantly used in order to cure those
points that the real estate lacks both internally as externally. It is also an excellent tool for
creating methodologic research for the real estate or for its members.
As an analysis methodology, SWOT model is efficient when we need to define clearly the
weaknesses and the strengths of a real estate and also for detecting the threats and opportunities
of it.
The real estate´s weaknesses and strengths are considered factors and internal characteristics,
while the threats and opportunities are the external factors.
With the passing of the years, SWOT analysis has suffered some conceptual modifications
derived from its own necessities in the business sector. However, the steps to follow when
realizing such analysis for a real estate are still the same.
For example, the external analysis has been modified in order to adapt to the business´
necessities, but it has also been criticized because it was most of the time based on the well-
known Porter Model (know as well as a model for the five forces).
Porter Model has some well-established bases, but it presents some deficits linked to the actual
organizational necessities.
This model is clearly highlighted and it is used for the analysis of the real estate.
There are still some professionals in the sector of Real Estate Coaching that start from the Porter
Model in order to establish the standards of the external SWOT analysis. In my opinion, that is a
strategic error taking into consideration these arguments:
– Is a model based on the strategies of individual business, which can be easily adaptable to a
strategic model for a real estate agent, but not for a real estate.
For a real estate agent who uses the SWOT analysis, to start from the Porter Model when realizing
external analysis becomes counter-producer because this is not flexible at all and does not provide
the changes that are constantly producing in a real estate market.

28
– In the same time, this model does not consider the possibility of the opening of new markets and
nowadays, the real estate must implement a real estate international strategy, focusing on the
potential foreign clients that might appear from all over the world.
– If we realize a strategic analysis in a systematic way starting from that model in order to determine
the profitability of the real estate sector, we should take into consideration that this has the intention
to evaluate the real estate prediction linked to its closest competence and not the global one.
Nowadays, the real estate market in Spain determines that this is actually a lie, because the reality
says that the real estate will find more potential buyers overseas.
In any of the cases and dependent of the previous arguments, SWOT is a model which bases on the
clearly well-defined strategy where the following areas of analysis are established through a table
of double entry (also known as a SWOT Matrix):

Internal analysis of the real estate.

▪ Strengths (positive points).
▪ Weaknesses (negative points).

External analysis of the real estate.

▪ Opportunities (positive elements).
▪ Threats (negative elements).

It is highly important that the real estate take into consideration the variables when applying an
analysis methodology. These variables are determined by the real estate market (national and
international market) and by the segment in which the real estate acts.
At the strategic level of the real estate, those variables are also known as critical factors of success
and the real estate should pay a lot of attention on their importance.
If the real estate modifies the variables or the critical factors of success, the result of the analysis
will be different.

SWOT analysis applied to a real estate.

The following model should be considered as an example, because every real estate should value
its own necessities and variables.
However, this following example might reflect (just as an orientation) its applicability to the real
estate or to the real estate field in general:

29
Internal analysis of the real estate.

Strengths (positive points).

▪ Valuation of the different capacities.
▪ Individual abilities reflected in a group.
▪ Higher level of available resources.
▪ Good levels of proactivity, assertiveness and resilience.
▪ Well-defined individual competences.
▪ Well-defined action conventions.
▪ An effective and productive real estate team.

Weaknesses (negative points).

▪ High level of resistance and adaptability to changes.
▪ Gaps in the organizational leadership.
▪ Motivational problems of the staff.
▪ Limited levels of the individual abilities.
▪ The stress and the difficulties to process them.
▪ Lacks in the social abilities and training.
▪ Absence of organizational policies.

External analysis of the real estate.

Opportunities (positive elements).

▪ Implement the new technologies in an effective way.

▪ Weakening of the competition.
▪ Strategic real estate visibility.
▪ An effective use of the new ways of communication.
▪ International real estate strategy.

Threats (negative elements).

▪ Take on high levels of risk.
▪ Changes of the real estate positioning environment.
▪ Changes in the real estate market.
▪ Changes of the potential buyers´ preferences.

30
 ▪ Eventual legal modifications.

Based on the SWOT model, the real estate´s potential and the potential of its real estate team
is the result of the combinations between the strengths and opportunities. Once determined
these two, we can detect the strategical lines of action in order to get the best results.
In the same time, the limits of the real estate as an organization will be determined by the
combination between the weaknesses and threats that the applicable model reflects.
It is highly important that the real estate clears the aspect of the risks that it should assume in
the organization and the risks will always be determined by the combination between its
strengths and threats.
On the other hand, the challenges that the real estate has to confront are determined by the
result of the combination between the weaknesses and opportunities.

What can a real estate analyze with the help of the SWOT
Model.

The several possibilities that the SWOT model offers to a real estate are complex, because there
are like dozens of uses and applications of it inside the real estate sector.
This strategic model is not only useful when applied generally by the real estate (if used
generally, it proves to be positive), but it allows us to expand its applicability to different areas
and particular situations.
The applicability of this model will depend on the particular necessities of every real estate,
but it can also be used for:
▪ Exploring possible solutions to different problems.
▪ Detecting which are the weaknesses of the real estate.
▪ Increasing the individual and collective level of productivity.
▪ Taking more accurate decisions.
▪ Modifying strategies.
▪ Discovering new opportunities of this business.
▪ Strengthening individual and collective abilities.
▪ Managing the real estate´s resources in a better way.
▪ Speeding up the internal and external managing processes.
▪ Getting to the potential clients in a more effective way.
▪ Generating positive synergies (internal + external).

31
CHAPTER: 3
REVIEW
OF
LITERATURE
32
1. According to Thomas E. McCue and John Kling (Feb1994)

This paper explores the relationship between the macroeconomy and real estate returns. Equity
REIT data are used as a proxy for real estate returns; however, the equity REIT returns are
regressed against returns from the Standard and Poor's 500 Stock Index, saving the residuals.
These residuals, known as extra-market covariance, are used in the analysis since this technique
controls for the covariance between equity REIT returns and the overall stock market. Thus,
the residuals represent pure industry effects. The residuals are then employed in an unrestricted
vector autoregressive model with the macroeconomic variables to test for relationships. The
results show that prices, nominal rates, output, and investment all directly influence the real
estate series. Nominal interest rates, moreover, explain the majority of the variation in the real
estate series.

2. According to Eric S. Belsky and Jr. John L. Goodman (Feb 1996)

Theory and most empirical evidence point to a negative relationship between vacancy rates for
rental housing and changes in real rent. This paper highlights and explains the absence of the
expected relationship in the national data on vacancies and rents, especially during the 1980s,
when rents soared despite high and rising vacancy rates. We argue that this unexpected pattern
resulted from several factors: an increase in the natural vacancy rate, changes in the rent-setting
behaviour of landlords, changes in housing search of tenants, measurement of nominal and real
rent in the CPI, and distortions of the vacancy rate because of high levels of new construction.
Some of these influences are quantifiable, but others are not. About 30% of the unexpected
gain in rents in the 1980s can be explained by those factors that are quantifiable. Implications
are drawn for the relationship of rents to vacancy rates during the 1990s.

3. According to Jr. William C. Apgar and George S. MAs nick (Jan 1991)

There is an emergent conventional wisdom that the 1990s will be a decade in which housing
markets will suffer a serious and prolonged recession. This wisdom points to the projected
declines in new household formations, in fewer young buyers to stimulate trade-up demand
because of the aging of the baby bust cohorts born between 1965 and 1974, and overbuilding
in some market where vacancy rates remain high. Examination of some simple facts about the

33
sources on new household formation and housing demand, about the nature of supply- side
adjustments to swings in housing demand, show this pessimism to be unfounded. Rather than
focus only on aggregate national demographic and economic changes, forecasters of housing
starts and house price trends need to examine factors that determine long-term supply
adjustments, as well as changing household numbers and characteristics in specific housing
markets.

4. According to F.C. Neil Mye James and R. Webb (Feb 1993)

This study examines the portfolio performance for forty-seven commingled real estate funds
using several different sets of real estate benchmarks and the multifactor Jensen alpha measure.
The results indicate that the choice of a specific aggregate real estate market index makes very
little difference in the performance results. Adding an inflation index, or disaggregating the
market index into regional subindices, produces alphas that are less correlated with the single-
index model alphas and produces a large reduction in the amount of abnormal performance
detected. In addition, disaggregating the single-market index into property types produces
alphas that are the least correlated with those from the other models and also produces a
reduction in the amount of abnormal performance detected, similar to the results for the
inflation and regional models.

5. According to Marvin L. Wolverton (Jan 1998)

This study investigates the normative paired sales adjustment method employed by appraisers
in the sales comparison approach. It finds that the method fails to account for the diminishing
marginal price effects of property attributes. The study develops an empirical model to test the
marginal price effects of view and lot-size amenities. The finding is that the empirical data
confirm land economic theory and identify a need to study and develop improved methods for
estimating adjustments to comparable sales.

6. According to Hugh O. Nourse (Feb 1992)

This paper is a cross-case analysis of thirteen corporations to see how administrative office
space is searched and selected. Although previous studies have found that the influence of real
estate expertise on these decisions is restricted to site evaluation, the condition of the site and
structures, the ability to option sites for a designated period, at a particular cost, this study
found that such expertise is also important in moulding size and design decisions. The real

34
estate manager is a negotiator conducting linked bargains within and outside the company to
create transactions that enhance company strategy.

7. According to Zhu Xiao Di and Xiaodong Liu (Feb 2006)

Following a group of young adults aged 25–34 living with their parents in the American
Housing Survey (AHS) data from 1985 through 1995, this paper investigates the effect of
overcrowding and neighbourhood satisfaction on household formation after controlling for
local rental levels and their changes over time. Most of these except for local rent levels have
not been tested before in models and hence this study enriches the knowledge on household
formation and its consequent potential demand for rental and ownership housing units.

8. According to Douglas S. Bible and Chengho Hsieh (Feb 2002)

This study examines the effects of site contamination on residential property values in
Northwest Louisiana, a region well-known for having numerous environmental problems. The
old Lincoln Creosote site is the focus of this study. Home sales data are examined in detail in
an attempt to measure any effects on property values that result from homes being located on
or near this remediated site. A hedonic pricing model is used to help evaluate the influence of
housing and neighbourhood variables on home prices. The model includes a dummy variable,
whether or not the home is in a neighbourhood located in a contaminated area, to estimate the
effects of the contaminated site on property values.

9. According to Donald R. Levi and Curtis D. Terflinger (Feb 1988)

Real estate professionals operate in a legal environment characterized by new expectations.

The increasing number of lawsuits reflects the arrival of the age of consumerism in the real
estate industry. Liability positions being staked out are largely premised on industry
professionalization. The area of greatest activity is misrepresentation litigation initiated by
buyers. Buyer cases have become the crucible for developing "public policy" concepts of
professional liability. This article considers the multiple premises of liability to buyers,
including negligent misrepresentation, state licensing laws, and professional codes of ethics.
Also, consideration are applications to appraisers, liability economics, and preventive
strategies.

35
10. According to Deborah FordHung-Gay FungDaniel and A. Gerlowski
(Jan 1998)

Using transaction level data, we present the first analysis of the way that foreign investors
choose among different types of United States real estate. Our findings based on the conditional
logit model analysis for the 1980-91 period are consistent with the hypothesis that foreign
investors behave in a traditional profit maximizing, risk minimizing fashion. In choosing
among investments in four major categories (apartment, office, retail and industrial) foreign
investor choice is most sensitive to changes in capitalization rates, market activity and current
rent levels.

11. According to Gary S. Moore, Gerald E. Smolen and Lawrence V.

Conway (Feb 1992)

A study of Ohio real estate brokers and home buyers finds that a mandatory disclosure
requirement had limited success in altering both buyer's perceptions of the role of cooperating
real estate salespersons and broker's perceptions of the role they play in the purchase and sales
negotiation process between home buyers and sellers.

12. According to Hans Isakson and Michael Spencer (Jan 2000)

This study explores the implications of applying Total Quality Management (TQM) principles
to residential real estate brokerage, specifically the need for customer focus. Deming's (1986)
TQM system of fourteen points reduced to four distinct subsystems. The most critical of these
is the need for customer focus. Several approaches to agency in residential real estate brokerage
are presented, with an examination of the ease with which customer focus can be obtained with
each approach. The main finding is that customer focus can be achieved easier with the agency
specialization approach.

13. According to Joyce M. Johnson, Hugh O. Nourse and Ellen Day PhD
(Feb 1988)

Real estate firms attempting to maintain or increase their market share want to know the
characteristics of the firm or individual agents that are important to market participants. A
survey of homeowners conducted during August 1987 found the following:

36
1) the individual agent is more important than the firm itself in the selection of a real estate
firm;

2) knowing an agent of the firm was the primary factor considered in the selection of a real
estate firm;

3) agent characteristics of selling ability, competence, integrity, knowledge of the market, and
understanding the client's needs and concerns were most important.

14. According to S. Michael Giliberto (Feb 1992)

This paper uses the mean-variance framework to investigate real estate's role in an institutional
portfolio. Unlike previous research, however, the paper does not assume a value for future real
estate returns. Instead, it is assumed that real estate is held in the portfolio, and the level of
expected return that is needed to justify the allocation is determined. Gross returns in the 10%-
12% range appear to be sufficient; however, such returns are considerably greater than the
sector's recent performance. The impact of adding real estate to a benchmark portfolio is re-
examined using the shortfall risk approach. Finally, several caveats about using the mean-
variance technique with real estate are described.

15. According to Joseph D. Albert (Jan 1996)

The American Real Estate Society was a natural reaction to the lack of inclusion that was
symptomatic of the intellectual environment that existed at the time of its inception. ARES was
established on the principle of inclusion of all willing and interested parties and has grown to
its present dominant state because as a society, it has resolutely adhered to that principle.

37
 CHAPTER: 4
RESEARCH
METHODOLOGY

38
Objective of the study
• To critically evaluate the position and prospect of major players in the bullmen realty
• To enquire about the future prospect of Bullmen realty
• To know the customer query and how to solve them.

Description of live experiences

This is one of the primary things that are required within the company. During my visits to
different company. I came across that there is no awareness of the company in the form of
posters, stands and other related things. One thing that would I like to recommend would be
the introduction of more promotional activities so as to generate more revenues for the
company. Company can introduce more-
▪ Schemes
▪ Get together for channel partners
▪ Brand recognition in the market
▪ To keep more inventories
▪ Advertisement in institutional areas

Although every effort has been in collect the relevant information through the sources
available, still some relevant information could not be gathered.
• Busy schedule of concerned executives: the concerned executives were having very busy
schedule because of which they were reluctant to give appointment.
• Time: the time duration could not provide ample opportunity to study every detail of the
company.
• Unawareness: executives were unaware of many terms related to same while asking to
them.
• Confidential information: as the company on account of confidential report has not
disclosed some figures. moreover, in some cases separate accounts of division are not
separately maintained thereby, leading to restrictions in study.

Data collection method

There are 2 types of data collection method
Types of data collection method-

39
 • Primary data
• Secondary data

Primary data
Primary data means data that are collected by different techniques likes questionnaires, depth
interview, surveys schedules.
Sources of primary data: -
• Canopy
• Online advertisement
• Office visit
• Data obtain by the people

Secondary data

Secondary data means data that are already been collected and analysed by someone else.

Sources of secondary data: -

• Tele calling
• References
• Data from other company
• Unpublished data: data may be obtained from several companies, organizations, working
in the same areas.
• Data collected by industry associates.
• Journal/newspapers etc.: some newspapers/journals collect and publish their own data, e.g.,
Indian journal of economics, economist, economic times.

Summary of learning’s experience

• Non commission revenues will become critical to the profitability formula.

• More and more menu driven services will be offered.
• Almost every aspect of the transaction will be part of an electronic.
• Electronic commerce will require standardisation.
• Standards will cause commodization.
• The unconnected agent will become the endangered species.

40
• Predictability/accountability will be the keys.
• The agent will be revaluated.
• The internet business will be a significant market share (25- interactivity on the internet
will be the norm.)
• A significant share of transactions will be managed from the point of contact.
• Meeting the customer’s definition of value will be managed transactions will use
designated service providers at all levels of the transaction.
• Marketing resources will be invested where they generate proven results.
• Range of products and services will be limited only by imagination.
• The Real Estate industry should prepare for an increasingly technology- driven
environment in which empowered consumers drive the mark competitive dynamics.
• A plethora of new entrants will emerge to capitalize on technology enabling new business
models and value prepositions.

Careers in Real Estate

1. Real estate managing broker

Being a real estate broker isn’t the same thing as being a real estate agent, even though
the two terms are often informally used interchangeably. The difference between a
broker and an agent is that a broker is a licensed real estate professional who has taken
further education and is qualified to manage a real estate office with multiple agents. A
real estate broker may be a career path to set your sights on if you’re already in the
process of becoming an agent and want to know how your career could continue to
grow. It’s one of the jobs that require a real estate license on this list, though not every
job we have listed here does.

2. Commercial real estate agent

It’s natural to think of residential agents when you talk about the real estate industry.
After all, that’s what most of the real estate reality T.V. shows are about and you also
don’t see images on the cover of the tabloids about which celebrity leased office space
lately. However, commercial development can be as rewarding as residential and, in
some cases, may suit your style and strengths even better.

41
The day-to-day of a commercial real estate agent can include more research than that
of a residential agent. A commercial agent helps businesses choose and secure locations
that are going to boost their bottom line. While sometimes that means leasing great
office space, other times it can be finding the perfect location for the next major coffee
chain to build a store. For this reason, commercial agents often must put more emphasis
on uncovering statistics and data about the area before they complete a transaction.

3. Real estate investor

There are two different ways to be a real estate investor — active and passive. You can
think of an active investor as your classic “house flipper.” This person would buy and
flip residential properties or would support the work of another investor or contractor
who is buying a property for resale. A passive investor is someone who puts money
into a real estate project without having much involvement in the day-to-day
management of a project. Even if you don’t have much money to invest, you can still
become an investor in crowdfunded real estate investing.

4. Residential appraiser
A residential appraiser is someone who collects information on a residential property
in order to give a recommendation as to that property’s worth. Appraisers can work
privately, such as to appraise your home before it’s sold or mortgaged, or for the
government, such as to appraise your home to determine its value for tax purposes.

According to the U.S. Bureau of Labor and Statistics, the median salary for real estate
appraisers in 2016 was about $51,850 annually or about $25 hourly.

5. Commercial appraiser
Just like a residential appraiser, a commercial appraiser spends part of their day in the
office and the other part of the day in the community assessing properties. While a
residential appraiser may rely more heavily on what they learned during their licensing
course, a commercial appraiser leans strongly on established appraisers to teach them
how to determine the value of a property. Both disciplines require you to get licensed.

42
6. Property manager
When it comes to discovering what you can do with a real estate license, becoming a
property manager is often a very appealing choice. A property manager is tasked with
the responsibility of making sure a property — residential or commercial — runs
smoothly and is, ultimately, making money for whoever owns it. When it comes to
residential properties this could mean wearing many different hats such as leasing agent
and repairman.

Depending on the size of the property and the strengths of the property manager some
or all of these tasks could be outsourced and the property manager’s role is simply to
coordinate them and make sure the property is upkept. This is more common for
commercial property managers. If a job as a real estate manager interests you, this guide
can help you learn everything you need to know about real estate management jobs.

7. Leasing consultant
A leasing consultant’s job is to make sure there are tenants in the building. This job can
often require you to work evenings and weekends, but a bonus is that it also usually
comes with a degree of flexibility. If you enjoy marketing and negotiating this could be
a great role for you. Leasing consultants need to get the word out about specials or
openings in their building and often throw promotional events or enjoy staying up-to-
date on the latest digital marketing best practices.

8. Commercial leasing manager

Often assigned to office space or storefronts, a commercial leasing manager negotiates
deals and transactions with businesses. A commercial leasing manager may have career
opportunities that require them to keep a watchful eye on changes in the marketplace,
as this impacts the budget businesses have for their various property needs.

9. Foreclosure specialist
A foreclosure specialist can be employed by a bank or private lender and is responsible
for all the documentation and processes that need to be followed when a property is
being foreclosed on. They will review the client’s financial statements and process

43
foreclosure cases so the property can be resold as quickly as possible. A foreclosure
specialist needs to be organized and great with deadlines.

10. Real estate attorney

If you love school and want to keep furthering your education beyond real estate, a
career opportunity you may consider is becoming a real estate attorney. Real estate
attorneys practice in many different areas. They could advocate for tenant rights or
provide consul before a major real estate purchase.

11. Corporate real estate manager

Companies often have openings for someone to come on staff and manage the real
estate for the company. Large brands need to lease office space and commercial space.
Some companies have real estate holdings that they need an in-house person to manage.
If you’re considering a job in corporate real estate, check out this complete guide to
corporate real estate jobs

Advantages and rewards of a career in Bullmen realty

A career in real estate provides flexibility and freedom to set your own pace. Income
directly reflects your efforts, with no limits on what astute, hard-working men and
women can earn. Successful people in real estate are goal-oriented, persevering, self-
motivated, ambitious and people-oriented. The rewards of a real estate career are a
potential for high earnings, status in the community, autonomy, time freedom, helping
people, the intellectual challenge, and the satisfaction from those accomplishments.
Working in real estate allows for independence and choices of environment in which to
work, such as affiliation with a large or small firm as a listed salesperson. With more
experience and upon passing of an additional exam, becoming a real estate broker is
the next step. Brokers can own their own businesses and employ other salespeople.

BARRIERS TO BULLMEN REALTY

44
1. Financing
Being able to qualify for commercial financing based on your balance sheet can be a
challenge. This will vary significantly from one investor to the next.
A good balance sheet will show a steady income, healthy cash flow, and budget
knowledge. It can include but is not limited to:
• Profit and loss statements
• Stocks and bonds held
• Investment properties owned
• Various other short- and long-term investments
• Proof of the ability to pay mortgages over extended time periods.
• Any investors who show significant losses or who don’t show sustainable
profitability and financial stability over the long-term may have their initial
mortgage applications rejected by the lender. An impressive balance sheet can
be the difference between obtaining a commercial property or losing the bid.

• Close attention should be paid to sustaining and maintaining a strong balance

sheet and any negative influences should be remedied.

• Create an investment plan and determine your financial and investment goals.
From there, you can decide how much you want to invest. You can determine
this by understanding your net worth and your risk tolerance.

• Planning not just how to pay initially but also the overall profit picture years
down the road should be considered. Closing costs and needed repairs to the
property in question should be factored in.

2. Experience
Any commercial real estate investor should have some prior commercial real estate
investing experience. If there is absolutely none, it is a good idea to partner with
someone who has experience in the same asset class that you are trying to purchase.
They can also help you better understand the commercial real estate market, which is a
completely different beast than its residential sibling.

45
If that is not an option, hiring a well-positioned property management company can
help a new investor overcome the challenges that will be faced in this new endeavor. A
property management company with enough experience can serve as a good backup to
your own lack of prior commercial real estate experience.

3. Liquidity
Liquidity is defined as the ability to turn assets into cash as quickly as possible.
Investors should always have enough liquidity to cover at least the down payment,
closing costs, and any renovation fees that might be needed. This will vary from
property to property.

Any other assets that are owned should be able to be liquefied quickly. Too many assets
that are tied up and not easily liquefied can work against investors.

All initial financial outlays, such as the down payment, the closing costs, and the
renovation fees, should be figured into the liquidity aspect before considering a
purchase or making an offer on a commercial property.

4. Due diligence
Another significant barrier to entry when considering commercial real estate investing
is not performing enough due diligence. Due diligence includes looking into the
financial background of the property, the demographics of the property—its location
and tenancy figures—the property class that it falls under, and how many times it has
been resold in prior years.

Properties that are resold countless times may potentially be a bad investment, and
investors should proceed cautiously with them.

Follow commercial trends closely and learn to better predict which types of properties
will be sought after. This will help you get the best bang for your buck and increase
your success in real estate investing. Always be on the lookout for new vacancies and
use commercial trends to determine prices for rents.

46
Research and know the geographic area where you are seeking to invest. The
geographic area can play a large part in the cost of the property and the amount of rent
that can be charged, as well as the type of potential tenants you will be getting. This, of
course, affects the bottom line of every investor, and if you have a certain budget that
you must work within, it is wise to find a geographic area that fits this budget.

Certain areas are much more expensive for all types of housing than others, and this
must be kept in mind when researching where to purchase. Cost of living expenses per
geographic area are a good indicator of the amount of investment needed before
considering purchase. Certain geographic areas simply have higher costs of living
overall, and housing prices can vary tremendously.

5. Underwriting
Another barrier that may be overlooked is proper underwriting. A good underwriter
determines the accuracy of the appraisal and ensures no one else is on the title and that
the financing fits the loan.
Not performing detailed underwriting or skipping this step altogether can make a
potential sale or even a final sale a real nightmare for all parties involved. Insurance
issues are also covered by underwriters, as insurance is part of any commercial real
estate deal’s affordability.

6. Well-formed team
This next barrier to entry is much overlooked and should not be. Have a “team” in place.
Commercial real estate investing is a venture, plain and simple. Not having others
involved who can assist an investor, especially a novice one, can only lead to headaches.
You’ll need a:
• Commercial real estate agent with experience in commercial real estate (not all do)
• Real estate attorney
• Property manager, especially on multifamily properties—an investor trying to be
both manager and investor can get overwhelmed
• Reputable (and licensed!) contractor

47
• Private individuals or financial institutions that can loan money immediately
outside the initial investment if unforeseen circumstances arise
• Insurance agent on board.

7. Research
Research into the overall market in prior years or the current year can be overlooked by
many.
The real estate market—especially the commercial one—can rise and fall sharply
within months. There are times to buy and times to withhold a purchase. There are
geographic areas that are going up at certain times, while other areas go down, as well.
These statistics are readily available online by the National Association of Realtors
(NAR) and are updated regularly. Market fluctuations can be very impactful on the
price of an initial sale and the overall stability of a property in future years.

The bottom line

Commercial real estate investing is a great choice for many reasons.

For starters, there are myriad tax benefits for property owners. Self-employment tax
deductions may also be available. A good real estate certified public accountant (CPA)
can assist with determining which tax benefits apply in each individual case. The
government can truly be a real estate investor’s best friend.

This is not to say there are no risks involved, as there are many. Investing in any type
of real estate, especially in higher priced commercial real estate (such as MFH) may be
risky. The market goes up and down, the area demographics can go up and down, and
the overall price of resale can go sharply up or down.

LIMITATIONS: -
Although every effort has been in collect the relevant information through the sources
available, still some relevant information could not be gathered.
• Busy schedule of concerned executives: the concerned executives were having very
busy schedule because of which they were reluctant to give appointment.

48
• Time: the time duration could not provide ample opportunity to study every detail
of the company.
• Unawareness: executives were unaware of many terms related to same while asking
to them.
• Confidential information: as the company on account of confidential report has not
disclosed some figures. moreover, in some cases separate accounts of division are
not separately maintained thereby, leading to restrictions in study.

49
 CHAPTER: 5
DATA ANALYSIS
AND
INTERPRETATION

50
Q1. Have you purchased any flat or commercial shop from Real Estate?

Purchased flat from real estate Percentage of respondents

Yes 72%
No 28%

Percentage of respondents

28%

Yes
No

72%

Interpretation
This pie chart shows that 72% of people have purchased any flats or commercial shops from
real estate while 28% haven’t purchased.

51
Q2. From which Real Estate have you purchased?

Company Percentage of respondents

Bullmen realty 45%
Unitech 14%
DLF 23%
Ansal plaza 18%

Percentage of respondents

Ansal plaza

Bullmen realty

DLF

Unitech

Bullmen realty Unitech DLF Ansal plaza

Interpretation
this chart shows that the bullmen realty is chosen by majority of people as compared to other
companies.

52
Q3. Have you purchased bullmen realty?

Bullmen realty Percentage of respondents

Yes 56%
No 44%

PERCENTAGE OF RESPONDENTS

No

Yes

Interpretation
this chart depicts that 56% of respondents have purchased from bullmen realty and 44% haven’t
purchased from bullmen realty.

53
Q4. How are the services you get from bullmen realty?

Services of bullmen realty Percentage of respondents

Excellent 28%
Better 47%
Poor 25%

Interpretation
28% of people enjoys the services of bullmen realty, 47% people thinks its better and rest didn’t
liked it.

54
Q5. Are they providing good facility comparison to others?

Good facility Percentage of respondents

Yes 77%
No 33%

PERCENTAGE OF RESPONDENTS

Yes

No

Interpretation

This pie chart shows that bullmen is providing good facility as compared to other companies.

55
Q6. Are the banks providing loan against flat easily?

Banks providing loans against flat Percentage of respondents

Yes 51%
No 24%
Can’t say 25%

Percentage of respondents

25%

51%
Yes
No
24% Can’t say

Interpretation
This pie chart shows that 51% of respondents know that loans are easily available against flats.

56
Q7. Have you got good environment around the flat?

Good environment around flat Percentage of respondents

Yes 76%
No 24%

GOOD ENVIRONMENT AROUND FLAT

Percentage of respondents

76%

24%

YES NO

Interpretation
In this graph, 76% respondents got good environment around the flat.

57
Q8. According to you, are you satisfy with bullmen realty?

Satisfied with bullmen realty Percentage of respondents

Yes 67%
No 33%

PERCENTAGE OF RESPONDENTS

No
33%

Yes
67%

Interpretation
This chart shows that 67% of respondents are satisfied with the bullmen realty and 33% of
respondents are not satisfied with bullmen realty.

58
Q9. Have you purchased another flat from any Real Estate?

Purchased another flat from any Real Percentage of respondents

Estate
Yes 56%
No 44%

PERCENTAGE OF RESPONDENTS
Yes No

44%

56%

Interpretation
56% of respondents have purchased another flat from any real estate and 44% of respondents
haven’t purchased another flat from any real estate.

59
Q10. If yes, then from which company?

Company Percentage of respondents

Bullmen realty 45%
Unitech 14%
DLF 23%
Ansal plaza 18%

Percentage of respondents

Ansal plaza

Bullmen realty

DLF

Unitech

Bullmen realty Unitech DLF Ansal plaza

Interpretation
this chart shows that the bullmen realty is chosen by majority of people as compared to other
companies.

60
Interest of people in Real Estate investment

Based on the same response of 100 people following table has been made: -

S.no. Type Interested Not interested

1 Flats 60 40
2 Villa 55 45
3 Plots 78 28
4 Commercial area 67 33

80

70

60

50

40

30

20

10

0
Flats Villa Plots Commercial area

Interested Not interested

Interpretation

61
This graph shows that 60% of respondents are interested in purchasing flats, 55% of
respondents are interested in purchasing villa, 78% are interested in plots, and 67% willing to
purchase commercial areas.

CHAPTER: 6
CONCLUSION

62
• The Indian Real Estate sector continues its steady progress with overall sales activity
going up significantly in the past 6 months. And the driving factor behind the entire
process has been the information technology (IT) sector which has contributed
considerably to the demand side. Moreover, the nature of demand has also undergone
a complete transformation.
• From small floor plates of 1000sq ft to 5000sq ft, the demand has shifted to large
contiguous floor plates of 6000sq ft to as high as 20000sq ft. this has forced
builders/developers to offer large floor plates as office space in case of both lease and
capital values. In a buyer’s market, sellers will have to offer products as per the
requirement of buyers. In this market, only those builders catering to the need-based
demand can succeed.
• Most of the metros are today gearing up to meet the demand for large floor plates in
accordance with the international trend. No longer is work station space per person
limited to a mere 50-70sq ft. most of these IT companies are looking out for larger
office spaces to meet their 100-200sq ft per person work station need. Partho Gupta, a
Mumbai based software consultant, states that the bottom-line is to enhance the
productivity level of staffs by providing a conductive working ambience. “The nature
of job in this sector is such that one needs a particular kind of surrounding for achieving
an optimal efficiency level”
• According to a Cushman and Wakefield report, many multinationals are viewing
Bandra-Kurla complex as the preferred destination for large commercial space
requirement as there are limited options for large contiguous spaces of comparable
quality in south, central and north Mumbai.

63
• “Earlier it was the price (capital value and rental) factor that governed the relocation
process to a large extent. However, now in the last one year or so, companies are
relocating their offices in search of large floor spaces,” opines Mr Ashok Kumar,
director, Brooke international. Never before the industry had experienced this kind of
demand for large floor spaces.
• Adding to this demand is the recent emergence of dotcom start-ups. According to an
estimate, in the past eight months, one out of four transactions belonged to dotcom
business or net-related business.
• Even as the initial hype has cooled down considerably, these dotcom ventures have
played a big role in boosting the demand. “On the positive side, mergers and acquisition
have already started in the dotcom business.
• This will provide consolidation to the entire business and help these companies sustain
in the longer run. According to Voelker, once again Bangalore is emerging as the
favourite IT destination if one goes by the transactions that have taken place in the past
three months.

64
RECOMMENDATIONS

65
Promotional activities-
This is one of the primary things that are required within the company. During my visits to
different company, I came across that there is no awareness of the company in the form of
posters, stands and other related things. One thing that I would like to recommend would be
the introduction of more promotional activities so as to generate more revenues for the
company. Company can introduce more-

• Schemes
• Get together for channel partners
• Brand recognition in the market
• To keep more inventories
• Advertisement in institutional areas

Focus more on “b” and “c” category companies. This is one of the primary things that are
required. With around 80% of the revenues coming from less than 20% of the companies,
more focus should be given on “b” said to be the agents who contribute more than Rs.
50000 of revenues per month. Companies should focus more on ‘b’ than ‘c’ category clients
so that more of these clients can be converted into ‘a’ category.
Co-ordination among different channels- with agency office in a different building and no
direct control over the district operations, transparency between different channels is
lacking. With the plan for executives that I have suggested above, there could be more
transparency that can come in the overall operations of the NCR region.
Different commission slabs for different channels- with commissions being one of the
prime motives for the sales executive to do business with different companies, more and
more emphasis should be given on the commissions that are rendered to the agents.

66
Very limited corporate tie ups- this should be one of the most important things that should
be on the agenda for the travel category. A corporate tie-up can easily deliver a business of
more than 50000 per month. Other than that, the contract is on a long-term basis. This
therefore, from my point of view, more emphasis should be given on this category of
business as well.

ANNEXURE

67
Bibliography books

• Kotler, Philip and Armstrong, Graw- principles of marketing, Pearson education, New
Delhi 2007
• Kotler, Philip- marketing management: analysis planning, implementations and control,
Pearson Education, New Delhi 2003 11th ed.
• Sharma JK -business statistics (Pearson Education)
• Kothari C.R. -research methodology

Daily and journals

• Business world
• Business today
• The economic times

Websites

• www.google.com
• The 7 Keys to Commercial Real Estate Investing Success (biggerpockets.com)
• The 7 Keys to Commercial Real Estate Investing Success (biggerpockets.com)
• www.bullmen.com

68
 • : https://www.researchgate.net/journal/Journal-of-Real-Estate-Research-0896-5803
• : https://www.researchgate.net/journal/Journal-of-Real-Estate-Research-0896-5803

Questionnaire
Name ………………

Age……………….

Address…………….

Contact no……………………………

Q1. Have you purchased any flat or commercial shop from Real Estate?
Ans. (a) yes (b) no

Q2. From which Real Estate have you purchased?

Ans. (a) bullmen realty (b) Unitech (c) DLF (d) Ansal plaza

Q3. Have you purchased bullmen realty?

Ans. (a) yes (b) no

Q4. How are the services you get from bullmen realty?
Ans. (a) excellent (b) better (c) poor

Q5. Are they providing good facility comparison to others?

69
Ans. (a) yes (b) no

Q6. Are the banks providing loan against flat easily?

Ans. (a) yes (b) no (c) can’t say

Q7. Have you got good environment around the flat?

Ans. (a) yes (b) no (c) can’t say

Q8. According to you, are you satisfy with bullmen realty?

Ans. (a) yes (b) no

Q9. Have you purchased another flat from any Real Estate?
Ans. (a) yes (b) no

Q10. If yes, then from which company?

Ans. (a) bullmen realty (b) Unitech (c) DLF (d) Ansal plaza

70