Bahria Town Project edited with macro environment.docx

8/10/2019 Bahria Town Project edited with macro environment.docx

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A. Description Of The Industry

Real estate Industry

The real estate sector in Pakistan has assumed growing importance with the Liberalization of

the economy. The consequent increase in business opportunities and Migration of the labor

force has, in turn, increased the demand for commercial and housing Space, especially rental

housing. e!elopments in the real estate sector are being influenced by the de!elopments in

the retail, hospitality and residential sectors "e.g., hotels, malls, housing de!elopments#

industries, economic ser!ices "e.g., hospitals, schools# and $nformation technology "$T#%

enabled ser!ices "like call centers#, etc., and !ice !ersa.

1. Historical Development

espite its deteriorating security condition and political turmoil, Pakistan is thri!ing, with

its real estate sector being a ma&or contender of its sur!i!al. 'eal estate in!estment isconsidered to be a stable and trusted form of in!estment, which is sure to reap profits, no

matter which%e!er direction, the economy takes. Moreo!er, the family structure is as such in

our society that the male head has to pro!ide shelter to his children and e!en after they

become financially independent, get married and ha!e their own children, they continue to

li!e with their parents, who in turn pro!ide them with sustenance. Likewise, the institution of

marriage holds utmost importance and as pro!iding a respectable dowry to daughters and

sisters is much re!ered in Pakistan( people in!est in real estate as futuristic plans of reaping

huge benefits by selling it off at the time of marriage. )ence, all of this contributes to

in!esting in real estate, an important step in securing the future of families.$n times of the current economic crisis, the realty sector is the undisputed center of

attraction for in!estors compared to other in!estment options. The ma&or reason for this

increased interest is the decision to allow the *+ederal oard of 'e!enue- to check the bank

accounts of the rich and thus they ha!e started funneling in!estments in the real estate sector.

Moreo!er, there is a strict documentation required in the formal economy and people hence

prefer to in!est in the properties market. dditionally, it is not &ust the local in!estors but also

o!erseas Pakistanis, especially from /orth frican Muslim countries where ci!il unrest is

taking place, who are in!esting in their home country.

Lahore holds a prime position in the real estate sector due to its security condition and

massi!e de!elopment which is taking place. Some of the recently constructed pro&ects

include 0M0, ahria Town, ) Phases 1 2 3, Lake 4iew, 5asis and lots more. These are

de!eloped according to the latest engineering techniques and ha!e all in%built facilities for

their residents to lead a stress%free life. The leader position of Lahore particularly reflects on

the amount of offers and searches on 'eal estate portals Pakistan real

estate,lamudiand 5L6. $n addition, the same bullish trend in property prices and

de!elopment can be seen in the other big cities, primarily $slamabad and 7arachi. ccording

to an informal sur!ey conducted by The /ews,amongst real estate agents in 7arachi, the

property prices in ), ath $sland, 8lifton, 9ulshan%e%$qbal and /azimabad ha!e shot up

by almost 5! from "#$"1%.
http://www.defendpakistan.com/political-uncertainty-law-and-order-situation-hurts-businesses/http://www.cbr.gov.pk/http://www.dhaemesector.org/http://www.pakistanrealestate.net/http://www.pakistanrealestate.net/http://www.pakistanrealestate.net/http://www.lamudi.pk/http://www.thenews.com.pk/http://www.thenews.com.pk/http://www.cbr.gov.pk/http://www.dhaemesector.org/http://www.pakistanrealestate.net/http://www.pakistanrealestate.net/http://www.lamudi.pk/http://www.thenews.com.pk/http://www.defendpakistan.com/political-uncertainty-law-and-order-situation-hurts-businesses/


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Lastly, there is ma&or rupee depreciation taking place, which gi!es rise to inflation and

with this, prices of oil, wheat, petrol etc. e!erything is rising, whilst the salaries are constant.

)ence, people ha!e started to hea!ily in!est in the real estate sector as an insurance of their

future: Therefore, all of the abo!e practices contribute to making Pakistan;s real estate sector

an in!estment ha!en for in!estors.

". &urrent 'tatus'eal 0state markets in Pakistan ha!e recei!ed little attention from researchers and policy

makers, in contrast with the large !olume of work on the foundation stages of real estate

markets, such as land rights issues. The role of formal real estate in!estment markets in the

process of economic de!elopment, therefore, remains poorly understood. The lack of

understanding is, in part, a direct result of the absence of reliable information on real estate

!alues, yields and total returns., commenting on the real estate in!estment markets in

transitional 0ast 0uropean economies, point out that *data transparency is a key characteristic

of a mature market, and markets that are able to demonstrate that they possess such data ha!e

a competiti!e ad!antage and are more likely to attract pri!ate sector in!estment funds-.

$ndicators of real estate transparency produced by international real estate ad!isors also

emphasize the importance of market data and benchmarks of in!estment return in creating

efficient capital markets

I. Residential (roperty)

'esidential property prices will rise by =?( rental rates will increase by @= to


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$n!estment in agricultural land in the Pun&ab will increase by @= to @1?( purchase prices

will increase by fi!e to @1?.

III. Other (ro*ected 'tatistics Include)

+oreign in!estment will decrease by fi!e to se!en percent. 8onstruction costs will increase by C trillion(

E 8ommercial propertyA F@> trillion(

E 0quitiesA F


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critical to the growth of the sector. The need for e!idence of a good title, indicating that the

property is free from disputes, is essential for secure property transfers, and sales. ue to certain

historical phenomenon, outdated legislation, and a Plethora of inefficient systems, what we ha!e

today in Pakistan is mostly transaction 'egistration, rather than title registration.

d. -a*or -ar0ets$. $slamabad

)

ahria Town

0den 4illas

9ulberg

0M' 0states

$$. Lahore

Lahore e!elopment uthority

) Gapda Town

Dohar Town

$$$. 7arachi.

)

9ulshan%i%Sakina +atima 8ooperati!e )ousing Society

9ulshan%i%Sanobar 8ooperati!e )ousing Society

e. -a*ors 'uppliers

7ube 8onstruction 2 0ngineering

Sher rab and Sons 8ement Products

Iltra 8onstruction 8hemicals

%. 2T2R3 Outloo0)

ahria Town successfully redefined the dynamics of real estate industry by pro!iding

customized solutions for both the poor and pri!ileged classes of Pakistan. So in order to attain

maHimum market and building more strong and long term relationship with its customer,

ahria Town has many pro&ects in its pipeline in different cities of Pakistan. The detail of

these pro&ects are gi!en as follows

ahria 9olf 8ity

ahria 9ateway
http://pakistan.tradeford.com/pk209033/http://pakistan.tradeford.com/pk262619/http://pakistan.tradeford.com/pk054447/http://pakistan.tradeford.com/pk209033/http://pakistan.tradeford.com/pk262619/http://pakistan.tradeford.com/pk054447/


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ahria 9arden 8ity

ahria Paradise

The springs

9reen 4alley

ahria Town 7arachi.

ahria 0ncla!e.

ahria 9olf 8ity.

a. Threats)

8 opposed to de!elopment of ahria encla!e

Sindh )igh 8ourt ecision of about construction of flyo!ers in 8lifton 7arachi.

Shifting of $slamabad irport to +ateh Dang.

,. Opportunities)

$ntroduce low cost schemes

9reen !alley is low cost pro&ect is a bigger opportunity

Doint 4enture with ha

ahria 0ncla!e is good opportunity

ahria Town 7arachi and $slamabad is also an opportunity.

4. Description of irm) 4AHRIA TO6 as a firm

ahria Town officially ahria Town "P!t#Ltd.is the largest real%estate de!elopersand

$n!estors inPakistanand the largest pri!ate housing society insia. ahria Town has

establishments in $slamabad"Phase < to J and encla!e#,'awalpindi "Phase @ 2 C#,

Lahore, Murreeand 7arachi. ahria Town is a mega gated community, worth F3 billion only

in twin cities $slamabadand 'awalpindiwhere it is the original community with nine phases,
http://en.wikipedia.org/wiki/Ltd.http://en.wikipedia.org/wiki/Ltd.http://en.wikipedia.org/wiki/Ltd.http://en.wikipedia.org/wiki/Real_estate_developmenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Murreehttp://en.wikipedia.org/wiki/Murreehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Gated_communityhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Ltd.http://en.wikipedia.org/wiki/Real_estate_developmenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Murreehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Gated_communityhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Rawalpindi


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which has a capacity of a planned residential city for @ million people. The TownKs offers

amenities "%hour armed security, schools, hospitals, a fire department, retail shopping,

restaurants and entertainment centers#.

9i!en the PakistanKs security issues, ahria Town remains the safest place to li!e with a

lower crime rate than other de!elopments. 'i!al Pakistani de!eloper,efence )ousinguthority, ha!e built similar gated communities in the suburbs of ma&or Pakistani cities such

as 7arachi. ahria Town operators are Pakistan;s largest pri!ate sector fleet of hea!y earth

mo!ing equipment and the ser!ice workshops. ahria is also building the +irst +ormula

@racing track with full proof safety pro!ided to ahria Town residents. $t employs o!er


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ahria Town 'awalpindi consists of C phases. Phase @ to 3 lie separate near PG

housing society while Phase J and C are ad&acent to ) phase @ $slamabad. These phases

consist of different residential sectors, commercial areas, parks, wide roads, attracti!e

monuments, beautifully constructed !illas and houses, and clean and healthy en!ironment.

ahria Town Phase @ to J is fully de!eloped and has a large number of people li!ing

there. Phase C is the largest phase which is partially de!eloped. ahria Town Phase C consists

of different sectors and blocks i.e. safari !alley which includes bu akar, li, Isman, Imer,

'afi, 7halid and wais blocks, Lake 4iew lock, Safari )omes, wami 4illas @ to 3 and

Sector to P. Ma&or commercial area in phase C is 8ommercial )ub which is the center

of safari !alley, and ahria Town )ead 5ffice is also situated here.

ahria Town 'awalpindi Phase was also launched a couple of years ago and many

people had booked plots in it, but this phase was abandoned later and most of the allotees

were transferred to Phase C. ahria Town is no longer transferring phase plots to phase C

and the management still ha!e to decide the future of Phase

A. 'tatistical Information)

1. 'i7e


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". 'ales and (rofita,ility)

ahria Town pays millions of 'upees in direct and indirect taHes. 8onducting its

business as a progressi!e corporate member of the society it pro!ides opportunities to many

in the form of pro&ect management and customer dri!en initiati!es. More customers attracted

in the year


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"% "8 "5 "9 ":

Revenues @3>,CJ>,3,J@@ @J1,1CC,CC,=,>@@,=@ @1,>C=,,J,3BJ B1,@JJ,C=>


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Gapda Town PG housing society. Media Town. 0MM' 8onstruction 8ompany

8. (u,lics)

+oreigners

0lite 8lass.

5. -ar0etin/ Intermediaries)

Starwood;s )otels nd 'esorts

) $slamabad

rea 8onstruction

T7

Skyways

9. Or/ani7ation)

$ntegral to our culture all actions taken to ensure safe and healthy workplaces, for staff

in our offices and the workers at the de!elopment site.

5ur di!erse team composition with representation from different regional areas,

religions, cultures and countries creates an institutional learning effect.

Preferred hiring of female staff at equal competency le!els ensures gender balanceand assures a socially balanced working en!ironment.

i!ersity at workplace promotes human respect and garners tolerance simply the

presence of di!ersity eHposes originality and stimulates imagination.

4ariety of roles, disciplines, functions to satisfy !arious people, choose one that you

want.

team of the most competiti!e and the inno!ati!e keeps you fuelled up with the spiritof winning.


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Gorkplace di!ersity keeps the en!ironment warm, interesting and promotes

eHperiential learning.

9row as fast as you want. 0Hceptional ad!ancement opportunities totally based on

performance.

Training and de!elopment programs for all le!els ensure a high professional standard

amongst our team.

ecisions that are timely and sound help you a lot in an uncertain en!ironment. s a

manager you ha!e ability and faith in you that you are strong enough in decision

making.

1) Demo/raphics)

Demo/raphics

(opulation @J3, "Duly


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-ain e;port

partners

Inited States @C?,I0 @=.>?,I7 >.J?,8hina 1.


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Planning incorporates special emphasis on the natural topography with a focus to refine

its hidden aesthetics and not to alter the layout altogether

This ensures stability of the undergrounds for seismic resistance both for ahria Town

and the ad&acent or land%belt sharing habitats

/ature is the best artist. Ge endea!or to build on the same

0nergy, water and resources, both natural and man%made, are utilized efficiently

3conomies

Quality Products for the Public

5ur product range contains a fit for e!eryone, e!ery taste and e!ery pocket. This is

why our communities truly depict a balanced community representation

Nuality is maintain at Oall costs;, in all designs, across nation%wide massi!e

de!elopments and beyond the customer eHperience

Contributing to a Sustainable Local & National Economy

ahria Town has created employment for more than


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can be considered as the catalyst for ma&or growth of real estate industry in Pakistan. 'eal

0state Sector in Pakistan stands nowhere without ahria town.

8$(oltical )

5$&ultural)Ge care deeply about the en!ironment and the societies in which we operate,

and weKre determined to play our part in caring for the disad!antaged and promoting ci!ic

!alues and pro!iding sustenance on a long term basis. Ge ha!e always emphasized that its

time for a radical change in our part of the world for some time, but words are no longer

enough. usinesses need to realize that by implementing socially responsible and sustainable

programs that benefit the society and raise the standard of li!ing, they are also helping to

make their own businesses highly sustainable.

9$Technolo/ical)

The housing units in ahria Town are based on pre%fabricated technology imported from

Malaysia for building low cost houses in Pakistan. This technology has matured o!er last


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installed. Male and female security personnel are deputed to check gents and ladies

respecti!ely. +ire brigade staff with !ehicles and medical staff are also deputed

%. uture (ro*ects)

ahria Town successfully redefined the dynamics of real estate industry by pro!iding

customized solutions for both the poor and pri!ileged classes of Pakistan. So in order to attain

maHimum market and building more strong and long term relationship with its customer,

ahria Town has many pro&ects in its pipeline in different cities of Pakistan. The detail ofthese pro&ects are gi!en as follows

ahria 9olf 8ity

ahria 9ateway

ahria 9arden 8ity

ahria Paradise

The springs

9reen 4alley

ahria Town 7arachi.

ahria 0ncla!e.

ahria 9olf 8ity.

a. Threats)

8 opposed to de!elopment of ahria encla!e

Sindh )igh 8ourt ecision of about construction of flyo!ers in 8lifton 7arachi.

Shifting of $slamabad irport to +ateh%Dang.


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4ahria To


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4eauty is easier achieved ,ut harder maintained. e have therefore diversified our civil

maintenance


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4ahria To


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Pre +abricated )ouses " wami 4illas #

ahria )omes

These pro&ects are completed with the collaboration of famous multinational companies such

as '0 a Turkish construction company and L%)T55' construction.

&hallen/er)

s ahria Town is aiming to pro!ide home for e!ery person, So to

ready to face any kind of challenge in order to fulfill its dream. There is low income scheme

of 1 Marla 8onstrued houses in the name of wami 4illas both at Lahore and 'awalpindi. $n

the time of national disaster ahria Town plays an important role in helping its country

fellows, so the marketing department making its le!el best to meet the challenges faces by thecompany.

ollo


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Maintains and enhances eHisting recreational facilities

esigns and manages !arious sports, outdoors and cultural e!ents

Manages promotion and in!itation acti!ities to !arious e!ents

4ahria To Storey uilding gi!ing modern facilities

for educational programs and play grounds.

Pre%school to $98S0 and %le!els.

ccredited 8entre for 8ambridge $nternational 0Hamination "8$0#

oard.

)ighly qualified and eHperienced faculty

ccommodating o!er C== students

+ully /etworked 8lassrooms

State%of%the%art thletic +acilities

7nowledge ased 0ducational Programs

8lassrooms equipped with smart interacti!e boards

4ahria 2niversity &ity

purpose built campus with hostels, accommodation, administration block, restaurants,

conference halls, community club etc.

'chools in 4ahria To


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ccredited by Ini!ersity of 8ambridge $nternational 0Hamination

for 5 Le!els and gha 7han oard Pakistan for Matriculation

0Hams

5!er C== students in ahria Town 'awalpindi School and >== in

ahria Town Lahore School

4ahria To


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3;ecutive 'hoppin/ Arcade

The pro&ect has been completed is ser!ing residents and non%residents

alike.

4ahria To


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Modern )ealthcare )ospitals in 'awalpindi 2 Lahore

More than 's.>== Million so far spent on welfare acti!ities in

different cities.

t forefront during the recent de!astating earthquake that struckour nation.

Process of setting up a chain of hospitals in Pakistan.

n established education trust fund.

8oordinating with a number of organizations and institutes

nationwide

'egular medical camps

1. 4uyin/ ,ehavior of tar/et mar0et.

Mostly customers of ahria town wants different things that they

want to purchase. The features that customers wants to purchase as follows.

nd ahria town is pro!iding according to beha!ior of target market customers

&ommunity eatures

Master%planned gated community

d!anced security 2 rescue ser!ices

Pakistan;s largest shopping mall

1%star international hotel 2 IS9 standard golf course

8ommercial areas

9old%8lass cinemas

State%of%the%art sports facilities

Gorld%class school, college and $nternational Ini!ersity

$nternational standard hospital

$nternational theme park, play%land and water%rides

Gonders of the world monuments "0iffel Tower, Ta&%Mahal and

Statue of Liberty#

Damiah Mosque


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Landscaped parks

8ommunity sports club 2 zoo

$nternational standard construction 2 infrastructure

9rid station 2 telephone%eHchange

Transport system from ahria Town to 8ity 8entre

@== ? backup power "/o Load%shedding#

.


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E 8reates and assures pro!ision of all allied infrastructure grid stations, telephone eHchange

and water treatment plants.

a. product classificationb. packaging labelingbranding decisionsc. new product de!elopment processd. product life cycle

b. discussion of pricea. pricing policies ob&ecti!es and strategies

b. influences on price determinationc. product miH pricing strategiesd. price ad&ustment pricing strategiesc. discussion of placea. nature of distribution channels chosen

b. physical distribution decisionsc. wholesale retail decisions

&) (RI&I6C 'TRAT3CG)Pricing is an important strategic issue because it is related to product positioning,

furthermore, pricing effects other marketing miH elements such as product features, channel

decisions and promotions. ahria Town follows the below steps for de!eloping the pricing of a

new product

Developin/ -ar0etin/ 'trate/y

Perform marketing analysis, segmentation, targeting and positioning. These are thekey points that the marketing department does during the de!elopment of marketing

strategy

-ar0etin/ -i; Decisions$n marketing miH decisions company defines their product, how to distribute that

product in the market and promotional techniques so to increase the sale of their product

in the required market.

&alculate &ostThe cost calculation includes fiHed and !ariable cost linked with the product. +iHed

cost remains same either the product is produced or de!eloped in large quantity or in

small quantity, which includes two important factors that are o!erhead cost and salaries ofthe staff while per unit !ariable cost increase if the quantity decreases. 4ariable cost

includes cost of raw material and transportation cost. The pricing policies of ahria Town

!ary from product to product and scheme to scheme. Low income schemes ha!e different

prices while luHury homes ha!e different prices.

DI'TRI42TIO6 'TRAT3CG)istribution is the pillar of the marketing department. Githout proper and on time

distribution the product of the company can;t sale. Marketing department in ahria Town pro!ide

eHact information to its customers for their newly launched schemes and products. ahria Town

take care of the following points while making the distribution strategyE )ow to create and satisfy demand for products


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E )ow to mo!e products from point of creation to point of consumption in an efficient and cost

effecti!e manner.E )ow to de!elop and maintain customer loyalty

d. Discussion or promotiona. (romotin/ policiesK o,*ective and strate/y

+or the completion of marketing process the marketing department fully perform the

acti!ities which is necessary for the marketing operations, that is recei!ing customers

queries from faH, emails, teleH, letters that $ obser!ed during my internship period in the

marketing department.

-ar0etin/ department focuses on the follo


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". (ROD2&T (A66I6C= D3+3O(-36T -A6AC3-36T

(roduct (lannin/

Product planning is the most contro!ersial part within the companies because

e!eryone ha!e to take part in the de!elopment of the new product and share his idea, so to

company has to take it on merit whose idea is more beneficial for the company. The

marketing team here in ahria Town applies the following steps while doing product

planning

E Product $deas 'efined

E Market 'equirements redefined

E e!elopment $nitiated

(roducts Approved (roduct Development -ana/ement

ahria Town makes its product according to international standards and needs and

demands of the customers. ahria Town does the following product planning steps

&reativity

$n creati!ity marketing team consider the following thingsA

E )ow to continually come up with new ideas for new businessR

E )ow to de!elop new ways of attacking problemsR

E )ow to capture and assess these ideas and distil them down to the ones that are worth

in!esting more time and effort inR

Definin/ the concept

Ghile defining the concepts ahria Town consider the following stepsA

E )ow to turn an idea into a real business opportunity and determine the necessary in!estment

and eHpected returnR

E Ghat is the market potentialR


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E $s it technically feasibleR

E Ghat are the timescalesR

E )ow will it affect eHisting productsR

E )ow will the competition reactR

Developin/ the concept

Ghile de!eloping the concepts ahria Town keeps the needs and demands of its

customers, so to launch successfully the new product. The key is that percei!ed customer

needs are translated into a possible solution to these needs.

Testin/ and finali7in/ the concept

fter de!eloping the concept the marketing team test and finalize these concepts in

order to con!ert them in launching form. $t is the controlled release of the product so that the

sales, customer, manufacturing and support organizations can test and modify the product.

ull (roduct launch

fter testing and finalizing the concept, the product is ready to launch this is probably

one of the most difficult and eHpensi!e stages. $t includes de!eloping the market, the correct

sales channels, ramping up the !olume of business and supporting the product. ahria Towngets @== ? results in launching its most of the products and schemes.

4. Advertisin/) Print Media

aily Dinnah

aily Dung

ill oard

5nline d!ertising etc.

&. 'ales (romotion)

Sale promotion is done through print media, banners, electronic media, and some of itsrenowned real estate agents etc.

public relationspersonal selling

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