RIGA TECHNICAL UNIVERSITY

‘‘STRETAGIC MARKETING MANAGEMENT IN CIVIL CONSTRUCTION’’

DLF BUILDING INDIA LIMITED

191AIG026 – KEVINKUMAR D. SAVALIYA

 OVERVIEW
• Founded in 1946 by Chaudhary Raghvendra Singh, DLF started with the creation of 22 urban colonies in
Delhi. In 1985, the company expanded into the then-unknown region of Gurugram, creating exceptional
living and working spaces for the new Indian global professionals. Today, DLF is the largest publicly listed real
estate company in India, with residential, commercial, and retail properties in 15 states and 24 cities.

• The construction industry is the second largest industry in India after agriculture. It makes a significant
contribution to the national economy and provides employment to a large number of people. The
deployment of various new technologies and project management strategies have ensured that mega-scale
projects can be undertaken, which can be completed inside the deadline. However, the industry still has
multiple challenges like disaster resistant construction, labour problems, water management and mass
transportation.

• In India, civil engineering and construction are showing a recent spurt of regeneration, after the 1960s, when
major PSU steel industries and dams were built. With the current trend of mega projects like residential
townships and mass transportation projects done in various parts of the country; projects like the Worli-
Mumbai Sea Link and Delhi Metro are truly world class in their feats of engineering and construction. In
India, investment in the construction industry contributes to 6.5% of the GDP growth and 12.2% of the net
GDP(20018-2019).
 ENVIRONMENTAL FACTORS

1. Market volatility.

2. Competitor actions.

3. Emergent requirements.

4. Client organizational changes.

5. Internal organizational changes.

6. PESTEL and international factors.

 FUTURE GROWTH STRATEGIES
DLF India, being the premier real-estate developer in India, has a lot to worry about in the Indian real-estate
scenario. It has three major problems for growth:
1. Increasing Competition: DLF India is not India’s “General Motors” when it comes to the real-estate market.
The majority of the sales is done by many unorganized players, like one-off promoters who build apartments
for the lower-middle segment of the market, seeing the huge amount of demand. Thus it eats off the share
of DLF, which is concentrated more on the higher end of the market. Thus, inadvertently, these players follow
a “Bottom of the Pyramid” strategy, where they sell what more people want.

2. High Price of Land: Land is a limited resource. In India, land, especially those in cities like Mumbai, Delhi,
Kolkata, Bangalore etc. become a scarce resource due the huge population and even higher demand for the
people to live in cities.

3. Lower Penetration outside North India: DLF started off in the 1960s in Delhi, but went off to develop prime
real estate in Gurgaon, Haryana, a region adjacent to Delhi, which has become a thriving city, known for its
call-centers and gigantic shopping malls. Yet, outside that region, DLF hardly has any presence. It has projects
spread throughout India, but they are mainly one-off projects, making them no different than the rest of the
promoters in these places.
 KEY ELEMENTS OF BUSINESS STRATEGY
 Increase land reserve in strategic locations.

 Expand core Business vericals nationally.

 Diversify into SEZ development.

 Diversify into Hotel development.

 Undertake infrastructure development.

 Enhance excecution capabilities.

1. Largest real estate company 1. Affected due to lack of
in India. regulations and effective

S W
2. It’s exposure across policies
businesses, segments and 2. Majorly present only in
geographies reduces the india and limited global
impact of economic cycles. exposure.
3. Experience of over many
decades in indian retaikl
sector with an expertise in
the field.
4. Strong management team. SWOT
ANALYSIS

1. Reduction in interest rates 1. Increasing interest rates

2. Tax incentives for housing 2. Economic downturn
investments 3. Volatility in financial
3. Shortage of houses in markets
urban areas
O T
 DLF Limited – PESTLE analysis

POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL ENVIRONMENAL LEGAL

P E S T E L
 DLF Limited – PESTLE analysis

P E
The government has allowed external commercial
The Government has been very proactive in
borrowings (ECB) for integrated townships
encouraging the companies in the real
development and has dispensed with the
estate segment. Though there is a
requirement of all-in-cost ceilings limits for ECBs,
considerable amount of streamlining still
which have increased borrowings and in turn
required there have been many reforms and
boosted the sector. Moreover, recent excise duty
regulations passed by the Indian
cuts on cement and steel bring down construction
Government that support infrastructure
costs and the most recent exemption for real estate
companies in general and housing
developers from service tax in relation to
companies in particular.
construction of residential and non-residential
complexes. Moreover, the increase in real estate
Government issues such as construction
has resulted in increased foreign investments as
tenders, land acquisition laws, FDI caps etc
well. The economic reforms put forth by the
directly influence this industry. Thus, the
government has resulted in the rise of real estate as
political influence on the real estate industry
an industry, and also the infrastructural
is high but usually positive.
development has attracted foreign investors and
8
companies to operate in the country thus
contributing back to the raise in the economy.
 DLF Limited – PESTLE analysis

S T
Real estate, ranked 3rd among the fastest The technology influences have been
growing sectors, has been one of the largest endless. Not only has there been an
employers in India. Moreover, the support increase in quality of building due to
provided by the government in relation to innovation in structural design and use of
taxes and bank regulations (such as housing materials but also in the delivery of services
loans etc) have increased the affordability of using IT systems. The use of CAD/CAE
the common man to own a house. software has enabled engineers to model
and remodel designs for optimum use of
resources and material, thus quickening the
construction time and increasing efficiency
while stepping up on the quality meter.
Forecast systems have helped engineers to
predict the impact of environmental
conditions and natural disasters on
buildings, and thus take into the relevant
9 parameters to avoid losses and damage to
the property.
 DLF Limited – PESTLE analysis
E L
The construction industry has far-reaching impact
on the environment. With the extremely high
prices of properties inside metropolitan cities,
more and more developers are looking towards
encroaching forests, farm-land and other arable
land to construct houses. This creates a shift in
the ecological balance, with native species forced
to find new habitats or adjust to the new civic
surroundings. This is especially true in rural India,
where villages are growing in size by leaps and
bounds. Moreover, the construction work is
mainly seasonal in nature. The extreme summer
heatcan create cracks in the concrete, while
extreme cold weathers can easily rust and
weaken steel bars that support the concrete.
Indian subcontinent is known for its erratic
weather. Hence, the construction work should
10 in mind the seasonal factor while being
keep
deployed into a construction project.
The legal aspect of the infrastructure
industry has a huge impact on the sector. As
of today, every state has its own laws
pertaining to the rights to own or rent an
establishment which can be called as
property. For example, houses rented to
people in West Bengal fall under the Rent
Control Act. It prevents sudden inflation of
rented property prices and the unlawful
eviction of a tenant without his/her notice.
Moreover, in India, the property prices are
closely monitored by the government. Any
transition or exchange of property has to be
notified to the notary. The variations of
these laws deem it unsuitable that a central
strategy could work for the organization in a
blind manner.
 DLF Limited - Marketing mix – 7Ps
7

PRODUCT 5
The product strategy and mix in DLF marketing strategy can be
explained as follows:
DLF is one the largest real estate companies in India. The main 4
business of DLF includes developing homes and commercial
places. These comes under its development business. Its
products or in this its projects include: DLF Homes, DLF
Offices, DLF commercials, DLF Malls. All these are the product 3
strategy in the marketing mix of DLF. Its homes business is
divided into Super Luxury, Luxury and Premium segments.
Even in all these segments it offers multiple products like
condominiums, duplexes and most importantly apartments.
2
These are available in various sizes also. DLF’s another
business wing which is annuity business deals with the rental
business of corporate offices and retail. Its commercial 1
projects include malls and various IT SEZ buildings. DLF is now
also a major player in infrastructure building, its partnering
with governments in projects like building highways and
11 flyovers. It also builds recreation and leisure ventures.
 DLF Limited - Marketing mix – 7Ps
7

PRICE 5
Below is the pricing strategy in DLF marketing strategy:
DLF has a unique model of making money, majority of their
revenues come from rentals and developments. As DLF are 4
spread across segments and geographies they follow different
strategies for pricing in their marketing mix. As DLF is into
residential and commercial real estate it uses different prices
based on the area and they range from nearly 4000 per 3
square feet to 15000 per square feet and more. As Its
segments are more towards luxury and premium its prices
generally high for average Indian realty firm’s charges. DLF
also charges its customers with any escalation charges which
2
are a result of change in commodity prices during the period
of construction. In this way it is protecting its margins. At the
same time if the prices come down DLF refunds the any extra 1
money to its customers back. All this is done in a smooth
transition as everything is clearly specified in contracts.

12
 DLF Limited - Marketing mix – 7Ps
7

PLACE 5
Following is the distribution strategy of DLF:
DLF develops properties across the country like Delhi, Kolkata,
Hyderabad, Chennai and Bangalore. These properties include 4
residential buildings like apartments, row houses and gated
communities. DLF also partners with major IT firm s like
Microsoft, GE, IBM and others in major cities like Hyderabad,
Chennai, NCR, Kolkata, Bangalore and Mumbai. DLF also 3
involves in recreational and leisure activity constructions and
shopping malls in these places.
2

13
 DLF Limited - Marketing mix – 7Ps
7

PROMOTION 5
The promotional and advertising strategy in the DLF
marketing strategy is as follows:
DLF used many modes of marketing to increase its brand 4
image. A 360 degree branding approach is taken by DLF in its
marketing mix promotional strategy. DLF does many
promotional activities from mass marketing to direct
marketing. DLF gives print advertisements in newspapers and 3
magazines in major cities. It also places hoardings at strategic
locations where more attention and time span can be drawn
from the audience. Its direct marketing includes sending the
broachers and digital forms of constructions through video
2
and audio to prospective customers. DLF has partnerships
with many property brokers and consultants. It also has a
good relation with some banks who lend home loans. DLF 1
created a huge leap in its branding when it became the official
sponsor of the Indian Premier League (IPL) cricket tournament
in India
14
 DLF Limited - Marketing mix – 7Ps
7

PEOPLE 5
DLF employees nearly 11,500 employees in all of its
construction process. These include Engineers, Architect,
customer support, legal and financial team and construction 4
workers also. DLF provides a very challenging roles and
responsibilities to its employees. It is very encouraging in
communicating and consulting with employees in regards to
issues of health and safety. It gives more emphasis on safety 3
of employees and gives them training, information and
supervision to do the work more effectively and safely
2

15
 DLF Limited - Marketing mix – 7Ps
7

PROCESS 5
DLF has several business processes in place to increase its
efficiency and margins. has put in place all the industry best
practices to make sure it works with great operational 4
efficiency and for the customer satisfaction. From drawing up
the contracts to delivering the property DLF has many checks
and balances to make sure it complies with all the legislative,
regulatory and statuary policies and requirements. DLF checks 3
any risks involved in the whole process of development and
provides with the necessary measures
2

16
 DLF Limited - Marketing mix – 7Ps
7

PHYSICAL EVIDENCE 5
DLF headquarters at Delhi is a construction wonder and built
with a very grand architecture and design. DLF provides
financial statements every year and it is listed company in 4
Indian stock exchange. The financial statements include the
company’s plans for the future and its current performance.
DLF’s logo of pyramid with nine triangles in black colour
shows support, interdependence and cohesion of the 3
organization. It has a tagline called ‘Building India’ suggesting
its mission. Hence, this concludes the entire DLF marketing
mix.
2

17
..THANK YOU..