Green Marketing Report Final

Green Marketing Project Report

On

Green Homes

Table of ContentsEXECUTIVE SUMMARY............................................................................................ 4

COMPANY DETAILS................................................................................................... 6

STAKEHOLDERS........................................................................................................... 7GWCL Stakeholder Chart...............................................................................................7

SITUATIONAL ANALYSIS........................................................................................ 9The Market for Green Buildings..............................................................................9Market Situation in India............................................................................................10Political Environment....................................................................................................10Economic Environment.................................................................................................11Consumer Focus................................................................................................................ 11Market Opportunity........................................................................................................12Threats...................................................................................................................................... 13

Strategic Window of Opportunity and Market Attractiveness.............................................................................................................................................. 14

OBJECTIVE..................................................................................................................... 15

CONNECTING WITH CUSTOMERS.................................................................16Indian Consumer Awareness...................................................................................16Consumer Behavior Influencers............................................................................17Segmenting........................................................................................................................... 18Targeting................................................................................................................................. 19Positioning............................................................................................................................. 21

MARKETING STRATEGY.......................................................................................22Differentiation.....................................................................................................................22Brand Development Exercise..................................................................................23

MARKETING MIX....................................................................................................... 24

REFERENCES............................................................................................................... 26

Green Home Marketing

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EXECUTIVE SUMMARY

ENVIRONMENTAL issues and climate change have marched into the mainstream of popular, political and business thinking over the last few years worldwide. The world today is seeing several means to save energy, be it inventing new electric cars or discovering alternative sources of energy. But what about finding energy-efficient homes as well? These homes can prove to be more energy efficient than those made from timber or steel.

Greha Construction Works Pvt Ltd (GCWL) is a hypothetical start-up. It is a set-up by 5 techno-entrepreneurs who identified an opportunity in the shifting trend towards a cleaner safer environment especially in the Tier I and Tier II cities like Hyderabad, Delhi, Lucknow and Noida. The main reasons for this trend are a niche segment of consumers in India who are conscious of their environment and want to contribute towards their well-being. In this shifting trend of Green Consumers is a basic need for greener, healthier and safer living.

GWCL identified this opportunity. With a backup of five years of experience in Engineering Designs and Technology, GWCL has come up with an idea to build, market and sell Green Homes to satisfy consumer demand.

GCWL is a Construction House that builds sustainable homes based on the concept of Zero Energy. While in ordinary homes where technology leads to vast energy usage, Green Homes with Zero Energy are houses that give as much energy to the environment as they expense through world-class designs and siting. Thus a Zero Energy Green Home is able to support its own living that we term as sustainable so that it has a much longer life, ease of design, carefully planned set-up and a cleaner environment to live in.

Short-term Plan

In Stage 1 of the launch of Green Homes Project called GREHA, GWCL will tie-up with TERI (The Energy and Resource Institute) to develop world-class designs for Zero Energy (to have a successful differentiation strategy) based on Concept of Green Buildings that is the single most crucial factor in the development of green homes. For better promotion and consumer satisfaction, GWCL that already has membership


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from Indian Green Buildings Council (IGBC) shall work for Green Homes Ratings of Gold and Platinum.

Long-term Plan

In Stage 2, GREHA will expand to introduce the concept of built-to-order zero energy homes, the first of its kinds in the residential construction sector that will be its Differentiation Strategy. Since residential home for an Indian Consumer is a lifetime project in which he spends maximum time, energy, money and effort, a better design with comfort of living, and pride of owning are the most important aspects. GWCL will help consumers to achieve that customization based on features that they shall look for in their houses. GWCL through its team of Customer Requirements Development, will ask Consumer for their required features like Solar Roofing, Insulated Walls, Water Treatment Plant Etc and develop a home in a given promised time. This unique mix of a world class product backed by a timed delivery service will give GWCL an added edge in the construction space in India.

Team Even the most powerful ideas may fail if they are not backed by the strategic decisions of an experienced and dynamic team. GWCL Construction House comprises of the following departmental teams:

Strategy and Planning Centre – This team will look after the long-term and short term plans of the company and is headed by us.

Customer Requirements Development Centre – This team is the front face of GWCL shall cater to understanding and taking customer requirements.

Design Centre – While most of the design work in the short term will be outsourced to TERI and other powerful engineering and architectural design houses, this Team will cater to collaborating and converting customer requirements into design elements.

Revenue and Investment ModelShort-term

GWCL will start with an investment of 50 Lakhs that will be shared in the following terms: 40 Lakhs contribution from the owners for 80% of stake 20% of the stake will be for Venture Capitalists for 10 Lakhs of contribution. With this set-up cash, GWCL will acquire land in Tier I and Tier II cities of Lucknow, Hyderabad to and start construction. GWCL will sell built models and semi-constructed homes with payments in two phases. The first phase payment shall be used for further construction. GWCL expects to achieve 25%-35% margins. In 2 years of operation, GWCL will not extract any profits except drawings for salaries, promotions and advertising and other expenses and shall do phased investments in 4 stages to take total investment to 2 Crores. In 2 years, GWCL shall break-even and start planned investment for its long-term model.


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Long-term

In the long term GWCL will aim at building built-to-order homes in Tier I and Tier II cities with the same two-step payment method. The customization of houses with modular design features will help GWCL to target niche customers and will gain revenue for quality and modularity. This shall help GWCL to achieve profit margins of 40% in the long run.

COMPANY DETAILS

Company Name: GREHA Construction Works Pvt Ltd (GWCL)

Company Tagline: Sustainable Living

Company Logo:

Green Homes Project Name (in Stage 1) – GREHA, “building sustainable homes”

Our Partners - TERI and TATA BP Solar

Mission Statement: To promote the design, construction and operation of buildings that are environmentally responsible, profitable and healthy places to live, learn, work and play for conscious customers.

Vision Statement: Our vision is to support a world where buildings become sustainable by consuming less energy and to help people to live in cleaner and safer environment.

Purpose: To transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy, and prosperous and improves the quality of life.

Values: Integrity, Consciousness and equality for all

Corporate Office: XYZ Green Office, Lucknow, UP – 226010


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STAKEHOLDERS

The building market is diverse and complex. The commercial relationships between the many specialists involved are intricate and critical in sparking action on energy efficiency. The sector is characterized by the fragmentation within sections of the value chain and non-integration among them.

GWCL Stakeholder Chart

Shareholders:

The GCWL share has established itself as a construction sector asset on a solid foundation. That is the basis for further growth. GCWL shall conduct intensive dialogs with its shareholders, with analysts and potential investors. In this way, we shall make them more familiar with the specific nature of GCWL's business, the opportunities and risks, the challenges and the fascination. We also consider it


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GWCL

DesignersTERITata Solar BP

Contractors

SuppliersMaterialsEquipment

Agents

ConsumersGovernment AuthoritiesIGBCDA's

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important to gather ideas and suggestions from this target group and apply them wherever appropriate.

Customers:

GCWL inspires confidence in its public partners and clients in the business community with performance and sustained added value. The goal is to keep them informed and satisfied with our offerings.

Contractors and Suppliers:

GCWL values open dialog with subcontractors and Suppliers because mutual understanding is the key to the operational tasks of project execution especially in complex projects. The aim is to combine subcontractors' and suppliers experience and competences with GCWL's specialist knowledge.

Agents: These are the front tying ends of our value chain because they shall help us to identify and satisfy our target markets through understanding of their requirements and delivery of the same.


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The Market for Green Buildings

Green building (also known as green construction or sustainable building) is a structure created using processes and materials that are environmentally responsible and resource-efficient throughout a building's life-cycle: from siting to design, construction, operation, maintenance, renovation, and demolition. The building sector alone accounts for 30-40 percent of global energy use. Over 80 percent of the environmentally harmful emissions from buildings are due to energy consumption during the times when the buildings are in use.

The green-ness of a building is more to do with energy efficiency than anything else. It has been proven that simplified working models and systems will result in environmentally friendly and cost-effective 'green buildings' that can reduce energy consumption by 60-80 percent. They will also lead to improve indoor climate and air quality.

It often emphasizes taking advantage of renewable resources, e.g., using sunlight through passive solar, active solar, and photovoltaic techniques and using plants and trees through green roofs, rain gardens, and for reduction of rainwater run-off.


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SITUATIONAL ANALYSIS

Many other techniques, such as using packed gravel or permeable concrete instead of conventional concrete or asphalt to enhance replenishment of ground water, are used as well.

The common objective is that green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by:

Efficiently using energy, water, and other resources Protecting occupant health and improving employee productivity Reducing waste, pollution and environmental degradation

The fundamental practices, or technologies, employed in green building, from which the method is derived are as follows:

Siting and Structure Design Efficiency Energy Efficiency Water Efficiency Materials Efficiency Indoor Environmental Quality Enhancement Operations and Maintenance Optimization Waste and Toxics Reduction

The initial construction costs are 2-5 percent higher than for a conventional building. But these costs are made up for in energy savings over a period of 5-15 years.

Market Situation in IndiaGreen buildings as a concept in India is gradually picking up pace. There are already many housing complexes, government buildings; corporate offices like L&T house in Hyderabad and educational institutes built as green buildings. Till now the application was limited mostly to metro cities.

The Green Building Market in India is set to touch US $ 4100 Million by 2012. This would give a boost to the construction industry and manufacturers of green material and products. As Building Sector is the third largest consumer of energy and energy consumption is expected to grow at a rate of 4%, Green Buildings have an upper hand in this. IGBC had claimed that by 2100 there shall be Rs 1800 Crores worth of Green Buildings in India.

Political EnvironmentIGBC (Indian Green Building Council) set out its journey to make India a global leader in green buildings in 2001. The green building footprint achieved today is 224 million sq.ft and 347 buildings. Green Building Congress a flagship event on green buildings in India is held in different cities every year, to educate, inform, network and unite forces for spreading the green building movement. This year congress will chalk out


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a roadmap for making green buildings affordable to all consumers in the Indian Market. IGBC is promoting the concept of Green buildings ratings across the nations and bringing the stakeholders in the green construction sector together. The most interesting part was that even the government owned buildings are coming forward to join the Green Homes development phase in New Delhi and Hyderabad. In an announcement made by the cabinet in Delhi in July 2010, the government has proposed to make 15 buildings part of the Green revolution in Delhi. The Delhi secretariat, which houses offices of chief minister and other ministers, will also be converted into a green building under the project. As part of its energy conservation measures, Delhi Government has already decided to implement the Energy Conservation Building Code (ECBC) for government buildings in the capital city of New Delhi. Another extra effort taken up by the Delhi government is that the targets laid out under the Enhanced Energy Efficiency Mission would be to include more 100 existing buildings with area above 10,000 square feet to make them energy efficient by introducing Green Homes technology in Delhi

Economic EnvironmentThe market for Leadership in Energy and Environmental Design (LEED)-rated green buildings in India is projected to increase to A$5B by 2012, and the total market for green building materials and equipment in India is estimated to be more than 10 times the size of the LEED-rated green building market in India.

India’s green building footprint has grown from 1858 m2 in 2003, to projects covering 20.54 million m2 by mid-2008.

A variety of green building projects are planned or have been completed, including exhibition centers’, residential complexes, hospitals, IT parks, educational institutions, laboratories, airports, corporate offices and government buildings.

National shortages of water and power are significant factors encouraging India’s focus on green building.

Consumer FocusThe major drivers for the green building sector in India are coming from the private sector, spurred by the introduction of the Indian LEED rating system, and investor and occupier demand for more amenable and efficient living and working space. Growing consumer awareness about issues such as environmentally appropriate building materials, indoor air quality, renewable energy and even green mortgages. The Green Building movement has gained a tremendous momentum in the last 3 - 4 yrs, today many Corporates (PSUs & MNCs) and the government is considering Green buildings in a major way. This trend has even percolated to the construction of Green Homes for individual requirements. As Indian adults shift towards making purchasing decisions based on core values, namely personal health and environmental issues, their interest in purchasing green-certified, non-toxic, organic,


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and natural products has increased. And, consumers are recognizing that not only is possible, but also cost-effective, to blend their aesthetic preferences with the desire to do something good for the environment. At present, India has over 680 green buildings with a footprint of over 450 million sq. ft and ranks amongst the top countries in green buildings.

Market Opportunity87% of people surveyed by McKinsey & Company in 2007 in 8 countries including India said that they worry about the environmental and social impact of the products they buy – McKinsey & Company. Two-thirds of people surveyed prefer to do business with environmentally responsible companies – 2007 National TechnologyReadiness Survey. 4 out of 10 people globally already face water scarcity and the situation is getting worse. It is everyone’s responsibility to conserve, recycle and use water more efficiently – World Health Organization.

The above facts lead us into a direction of growing opportunity for green buildings and homes especially in developing countries like Indian and China.

Growing awareness and emphasis about environmental improvement among consumers but lack of knowledge in building professionals. There can be first-mover’s advantage here.

Increasing population and urbanization has led to a construction boom in India. Therefore there would not be dearth of clients provided they are convinced about constructing green building.

Large-scale constructions and increasing population has also put several constraints and costs on resources and parameters like water, waste management, electricity etc. Green buildings can save a portion of these costs. For e.g. Maximum use of natural daylight reduces the number and size of lighting fixtures required.

As pointed out by many surveys and findings, sustainable buildings lead to healthier and more productive employees. This will provide highly motivated clients.

Indian government promotes constructing green buildings. There are considerations of tax benefits on making green building that will bring down the ownership of such houses. LEED ratings are given to buildings that meet their norms. Some banks also give loans at lower rate for making green building.


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LEED ratings vs. Efficiency gains

Cost premium in India ranges from 6-8% depending on level of rating

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There is huge scope in range of services and products that can be provided to consumers. That includes consulting service to clients to providing a complete housing/official building.

Indian people give high importance to their homes and are highly involved in their construction. Their quest for a perfect home may fuel the demand for a sustainable house.

Threats Economic recessions have a big impact on the building industry. During them

people may not prefer investing extra amount in making green buildings. Perception of people that making such houses will cause changes in their

lifestyle and reduce their comfort level. One more is that green buildings take more time. .

Indian consumer is very cost conscious and for most of them having a home/office is a lifetime affair. Unless there are visible advantages in making green and sustainable buildings, the market will not gather pace.

Lack of professionals with LEED certification in India. However, it’s a short-term disadvantage.

Sourcing of material can be difficult. Lack of Awareness that Green Homes can help to bring a cleaner

environment.


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Strategic Window of Opportunity and Market Attractiveness

Applying the Strategic window of opportunity concept we see that the window to enter this market has expanded vastly in past one year. The major reasons for this are

End of Great Recession causing boom in construction industry across the country

More focus on environmental factors and sustainable development in people after certain events like Copenhagen summit and increased media focus on environmental issues

Increasing cost and scarcity of resources like oil, electricity, water and difficulties in activities like waste management

Increased support by government for constructing more and more green buildings

Efforts by employers to increase productivity through employee empowerment and care

Hence we can conclude the market attractiveness is high. There may be slow growth initially and it may take some time to break even in fact of materials constraints and getting a sufficient client base. But since most construction business involves huge investment, there are good chances of recovering investment in few short projects. This can be achieved with the following strengths:

Educating the customer Offering more benefits Bringing products closer to the Indian Consumer Building high quality products.


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OBJECTIVE

To have 1 Million m2 of Green House Footprint in India by 2012 which shall give GWCL an estimated market size of 5%-7% of Green Buildings Market in India. Aim is to establish a market niche for environment friendly and conscious customers in Tier I and Tier II cities of Delhi, Hyderabad, Lucknow and Noida.

The other objective is to create, maintain, enhance and protect the brand image for GWCL as a Construction House in the Green Building Industry. The start shall be from residential green homes to green apartments, flats and finally green buildings and impacting every end-consumer of the value chain.


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CONNECTING WITH CUSTOMERS

Indian Consumer AwarenessIndia toped the Consumer Greendex ( "Consumer Greendex," is a scientifically derived sustainable consumption index of actual consumer behavior and material lifestyles across 17 countries)compiled by National Geographic that studied 17,000 consumers. The National Geographic attributed much of the increase in the overall Greendex scores to more sustainable behavior in the housing category in both 2009 and 2010, which was measured by the energy and resources consumed by people's homes. Brazilians, Indians, Mexicans and Chinese topped the housing category. India saw marked increases in its index in this area, as consumers made moves to improve the energy efficiency of their homes. Most people surveyed cited costs as the reason for the decrease in consumption but between 20 and 50 per cent pointed out environmental concerns. There is also a growing trend to conserve fresh water, particularly among Indians.

India scored 62.6, highest among all countries overall with 2nd Place in Housing sub-index.

India Brazil China Mexico0

20

40

60

80

100

120

140

59.4 57 57.2 49.8

62.658 57.3

54.8

2010

2009

GREENDEX

Source : http://environment.nationalgeographic.com/environment/greendex/


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2010

India ranks 1st on the 17 country Greendex. 1st place in goods and foods sub indices, 1st place in transportation and 2nd place in housing.

Brazil ranks 2nd on Greendex. 2nd in food sub indices, 3rd in goods and transportation, 1st in housing

China ranks 3rd on Greendex, 6th place in food , 2nd in goods and transportation, 5th in housing and goods

Mexico ranks 4th on Greendex and 3rd in housing

According to fifth year of the ImagePower® Green Brands Survey that polled more than 9,000 participants in eight countries—Australia, Brazil, China, France, Germany, India, the United Kingdom, and the United States respondents in most of the eight countries showed a general increase in concern about the environment, up an average of 3.5 percent over 2009. According to survey:

Most consumers want to buy from environmentally responsible companies The market for green products is growing in emerging economies

A recent survey published by strategy consulting firm McKinsey, in May 2007, called The Bird of Gold: The Rise of India and Consumer Market says that over the next 20 years, Indian income levels will almost triple and average real household disposable income will grow at a compounded annual growth rate of 5.3%. As income demographics change, so will consumer behavior. The report says that the combination of rapidly rising household incomes and a robustly growing population will lead to a striking increase in overall consumer spending This would impact niche markets such as that of green products, a phenomenon already in evidence.

Consumer Behavior Influencers The most important aspect is to identify the factors that shall really influence Indian Consumer buying behavior pertaining to Green Homes so that suitable target markets can be identified.

Cultural Factors

Indian consumer values about a home being a lifetime asset, perceptions about home being a true value for money (some are ready for invest a lot in homes) with longer life and behavior of making one time investment for a stronger, safer and beautiful home are the most important factors to look at. GWCL will target these


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factors through successful good quality of designs and materials with comfort of living backed by differentiated affordable and premium priced products.

Social Factors

Reference Groups

Primary Influencers: Since home buyout and construction is a highly informed and planned decision, consumers are highly influenced by their family, friends, peer circle, business setup location in deciding the right location, size depending upon numbers of members in family and their requirements, and the environment pertaining to neighborhood. GWCL will target these primary factors through offerings in good landscaping, word of mouth testimonials by existing buyers and promotion of green home features suited to the family requirements.

Personal Factors

Different consumers spend differently on houses depending upon their age, income and social status (some invest a lot of money to give it a good aesthetic appeal while others prefer affordable living). GWCL will target medium to high-income groups who understand the benefits of green homes and are ready to pay a premium price either for appeal or for long-term benefits of sustainability and energy conservation.

SegmentingPeople in Tier I and II cities in India, who are aware of the concept of green buildings, its benefits and the impact of buildings on their health as well as health of the environment and those who are unconscious of green buildings but support the cause for environment. From all these segments, people who belong to the high-income group (HIG) and middle-income group (MIG), form the strategic target segment for our product.

The bases for our segmentation of Indian Population are following:


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Consumer Behavior

Personal

CulturalSocial

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Demographic

Age: This forms a major basis because house buyout and construction is a highly informed decision with high involvement, investment of time and money and is done by people more than 25-30 years of age either with loans or through personal assets.

Income Group: HIG people look for better designs and features for lifestyle living and can pay premium prices for added benefits of going green. MIG people if involved and convinced about the benefits of energy conservation and overall savings in long run shall pay prices for smaller houses.

Education: This class is educated, understands the negative impact on environment and appreciates green products as a means to save the environment.

Social Class: This forms a very import basis for segmentation in India because shift towards green buildings is a trend with a special segment of society that wants to save the environment through its conscious consumption and living. Peer classes in this segment shall highly influence the others towards the benefits of Green buildings especially when people are skeptical about moving towards different building technologies and designs.

Geographic

Urban and Metro: Surveys have shown that the concept of green buildings has picked up pace especially in Indian and China in the Metros and Tier II cities because of increasing consumption of energy, unhealthy lifestyles and lack of greener cleaner environment. These people appreciate the benefits of going green and if unaware shall acknowledge if convinced.

Psychographic

Values and Lifestyle: Since an Indian consumer especially in the home buying market is especially driven by values as they consider house building to a lifetime investment in an asset, they want to reap benefits of sustainability, longer life of a house (even more than 20 years for many people) and features, design and aesthetic appeal of the house. All of them want their houses to be customized, personal and beautiful. Green homes with elegant designs, high quality of materials and good landscaping shall be convincing for the people to buy them.

TargetingBased on the above segmenting parameters, we have identified our Target markets as follows:


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Currently the awareness of green buildings in India is very low, but people are very sensitive and desire very specific features for their homes hence there lies a huge untapped market for our firm. There also lies the opportunity to get projects for holiday resorts, hotels besides corporate buildings and government projects.

When building a house people look for:

Site Costs involved Long term cost benefits Design , Style Impact on environment (yes if I am environment health conscious , no

if am not aware of impacts , I do not care so long I have cost benefits)

Above are the parameters based on which a person would decide to build his house prioritizing them based on this income level, awareness and other demographics.


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Potential Market for Green Homes

Environment conscious

Aware Unaware

HIG (price insensitive): Tier I, II cities

Features of house desired:

Green, Design, Style

MIG (price sensitive): Tier I, II cities

Features of house desired:

Value for money, Design, Energy conservation

HIG and MIG - Tier I and Tier II cities

Can afford green buildings but are unconscious of the offerings of green buildings

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PositioningSince our target market is the segment which is already educated and conscious or unconscious about the green buildings, we offer them

Benefits of a green house A zero energy house Desired design and style

Just like a typical home, a Zero Energy Home (ZEH) is connected to, and uses energy from, the local electric utility. But unlike typical homes, at times the ZEH makes enough power to send some back to the utility. Annually, a ZEH produces enough energy to offset the amount purchased from the utility-resulting in a net-zero annual energy bills. A ZEH combines state-of-the-art, energy-efficient construction techniques and equipment with renewable energy systems to return as much energy as it takes on an annual basis.

Benefits:

Lower Utility Demands

Green and sustainable buildings reduce demand on electric, gas and water utilities means that these infrastructures can do more with less. This can result in lower municipal utility costs over the long run as utilities need not expand and can avoid passing those expansion costs onto utility customers. A net-zero annual energy bills is the unique feature of zero energy homes.

Healthy Occupants

Sick building syndrome is a problem that has plagued homes and offices for decades. Green buildings, however, avoid many of these problems with healthy ventilation systems and use of non-toxic building materials. Sick building syndrome describes a range of health problems that can occur through exposure to the pollutants inside a home, office or other building. Sick building syndrome is usually related to poor indoor air quality, and can be caused by mold, radon, smoke or any number of chemical pollutants. The green architecture contributes to the health of the occupants as well as the environment.

MARKETING STRATEGY


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Differentiation

Marketing Strategy for any company is the most important plan of action that directs its efforts towards attaining its objective. While there is no ideal marketing strategy applicable to Green Homes Market, it can essentially be based on two major outlines:

Differentiation o Product Features and Benefitso Service

Operational Excellence – to achieve cost advantage which is especially important in green homes because consumers are conscious to move towards different designs and technologies and owing to premature markets, the green materials are costlier, not so easily available and there are 5%-6% higher costs in the short run while they may scale to deliver better efficiencies in the long run.

The marketing strategy of GWCL will be phased to gain market share and build a brand image:

In order to achieve its short-term objectives over a period of 3-5 years from its start of operations, GWCL will focus on achieving differentiation through Product Features based on the concept of Zero Energy Homes. This feature is one of its kinds and is very new for the green home market in India. This will help to achieve a premium in real estate offering.

In order to achieve its objective of Green Home Design and Benefits differentiation, GWCL will concentrate on the following:

Product Features

High Quality Designs based on concepts of:o Water Conservation/Treatment, o Thermal Insulation, o Solar Panels.

Use of quality and energy efficient products in the home:o Energy efficient lighting, o Automatic Control Systems for Devices, o Healthy Paints

Siting

Abundant Natural Lightening and Landscaping Smart Design for minimal maintenance Design for maximum natural lighting and air ventilation

All the above product features will help to stand out Greha Green Homes as Zero Energy Homes. It means home as a whole would generate as much energy as it uses


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over the course of time. While elements like Solar Panels will consume solar energy for demand, water treatment will help to conserve water for longer run. Automatic Controls will save electricity. Thus over a longer run, a house will generate as much as it will consume and will become sustainable. After establishing a niche in the green homes market, in the long run when GWCL

will move towards built-to-design homes where it will develop feature modules and partner will equipment providers for features like Thermal Insulation or Solar Roofing, its strategy will shift to achieving Operational Excellence in incorporating these different design features modularly into one house and to be delivered at a promised date.

In all stages of implementation, GWCL focus is to establish its brand in the Green Building Market. The first step towards this is the start of Project Titled as “GREHA”, ”building sustainable homes”. This project shall help to establish a brand portfolio for GWCL and therefore subsequent offerings in long term like green buildings construction, green townships shall be branded projects. The major line for action for brand building shall be development of “branded portfolios” with “unique positioning” for “different varieties of projects”.

Brand Development Exercise

MARKETING MIX


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Green HomesZero Energy

GREHA

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PRODUCT

Green homeso 1200 sq feet – 5000 sq feet houses with modifiable sizes based on target

cities. For Metro City like Delhi, 1200 – 2000 sq ft house. More Tier II cities like Hyderabad, Lucknow and Punjab with enough available land space, target size can go 4000-5000 sq feet houses.

o Design Features Solar Panels and Roofs Thermal Insulation Walls Earth Duct for Fresh Air intake conditioning Water Basin to cool south facing façade in summer through

evaporation Green Roof Tiles

o LEED/Green Home Certified Ratings through IGBC - Gold and Platinum. Rating variant will be dependant on the city to be targeted. In Tier I cities target shall be Platinum Rating and in Tier II target shall be Gold Rating. These ratings will help to improve customer satisfaction for authenticity, quality of materials, Standards of Design and help in improving market valuation of the homes for Resale, Leasing and Renting.

PRICE

The pricing policy for green homes shall be premium pricing because of Green Home/LEED Ratings that shall help GWCL to reap benefits. Because the target group for green homes shall be lifestyle and environment friendly consumers, surveys have shown have this target group is ready to spend extra money for green home designs and aesthetics. GWCL shall plan to achieve 20-30% profit margins in construction after giving shares to agents, contractors, suppliers and royalties to designers.

PROMOTION

Demand State for green homes in India is Latent. Green Users identify the benefits associated with green homes and require houses that are energy efficient and environmentally friendly but are conscious of shifting to new technologies and materials for green designs. Also the target consumer group needs to be highly educated on the benefits of owning a green home and how he can save over costs in the longer run.

In order to deal with this latent demand and make it active, GWCL plans to work with the following promotion strategy:

o Advertisements in Leading Newspapers, Hoardings as all construction


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companies doo Sales commission for Agents/dealers to sell houses to direct consumers.o Website: This shall be a very important marketing tool for promotion of

green homes by GWCL. The website will consist of the following: Virtual Models of existing designs and built houses with features LEED/Green Home Rated houses for sale in Tier I and Tier II cities. Virtual Lab to select green features e.g. water treatment, solar

roofing, thermal insulation, water basins etc. Testimonials of existing customers about their satisfaction

o Carbon Foot printing of the already built houses to consumers to realize the benefits and what contribution their house has made to energy saving and expenditure.

o Tie-ups with engineers/designers to help customers design and plan their green house.

o Tie-ups with TERI and TATA BP Solar as Design and Technology partners for better credit and acclaim.

o Educate customer on the benefits of green home by showing their energy conservation and total reduction in annual costs through various surveys.

PLACE

The target place for green homes shall be Tier I and Tier II cities like New Delhi, Hyderabad, Lucknow, Noida, Gurgaon and Punjab in Stage 1 (Short Term Plan). In long-term plan, the target will be to cover major cities in India.


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REFERENCES

1. Energy Efficiency in Buildings – Business Realities and opportunities, World Business Council for sustainable Development.

2. Building & Environment, Vol. 32. No. 4, pp. 321–329. 19973. McGraw-Hill Construction. Green Building Smart Market Report 2005-

2006.4. Fourth Annual Green Building Survey, Allen Matkins, CTG, 20105. http://www.housinginindia.com/green-homes-india/delhi6. www.projectsmonitor.com/.../120-lakh-green-homes-coming-up-in-india7. www.igbc.in8. www.teriin.org9. www.concreteconstruction.org10. Excerpts from Marketing Green Building Services – Strategies for Success by

Jerry Yudelson11. Greendex 2010: Consumer Choice and the Environment-A Worldwide

Tracking Survey, done by the National Geographic Society and the polling firm GlobeScan.


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