3. www.mastersungroup.com,
+
OpportunityOpportunity
Economy growing at least 7-8 % per annum
Unorganized & fragmented real estate sales & marketing channel
Growing affluence and investment appetite fuelling the concept of
Vacation Home for lifestyle and investment needs
Demand for world class development
Growing asset management & development opportunity for budget
hotels and service apartments
4. www.mastersungroup.com,
+Target Consumers
1.6 million luxury consumers
6-7 million very affluent
9-10 mid affluent
11-12 million mass affluent
40 million upper middle class
72 million up graders
140 million bottom of the pyramid
Urban Population
50%
40%
10%
Bottom of the pyramid Middle Class Rich
Rich
Middle Class
Bottom of
the pyramid
6. www.mastersungroup.com,
+
Land Development – Value ChainLand Development – Value Chain
Vacant Land
Developable Land
Pre-construction Land
Completed Project
Value (example)
Rs 50 Cr
Rs 200 Cr
Rs 250 Cr
Rs 1000 Cr
Concept, plans, approvals,
financial models, business
plans etc
Infrastructure (if required)
Construction finance,
Contractors, Project
Management, pre-sales
7. www.mastersungroup.com,
+Land Development Process
Market
research
Design brief
World class
architects
Design and concept
Modelling
and
forecasting
Marketing
plan
Business plan
Fundraising
agent
Fundraising
Project
management
Construction
Sales and
marketing
Asset
management
Realisation
PRE-CONSTRUCTION
Detailed
plans
Building
approvals
Financial
analysis
Self Outsourced
8. www.mastersungroup.com,
+
Development Snapshot
Customers : Landowners
Initial Value Proposition
Maximize the value of asset
Sustainable Value Proposition
Market based concepts
ROI
Quality of Development
World class design
Case studies
9. www.mastersungroup.com,
+
Development Methodology
Pre-Construction
Financial analysisFinancial analysis
What options are there and which is most profitable?What options are there and which is most profitable?
Benefits of doing this areBenefits of doing this are
Differentiated product – able to sell your product in a crowdedDifferentiated product – able to sell your product in a crowded
marketmarket
Delivering what the market wants = building a brandDelivering what the market wants = building a brand
Price premium and faster sales ratesPrice premium and faster sales rates
= more profit and less risk= more profit and less risk
Then, translating this concept into a site plan and designThen, translating this concept into a site plan and design
A collaborative effort between Promoters, we and panelA collaborative effort between Promoters, we and panel
architects.architects.
10. www.mastersungroup.com,
+
Development Methodology
Business Plan
BUSINESS PLAN = Who is going to do what to make this projectBUSINESS PLAN = Who is going to do what to make this project
work?work?
How are we intending to SELL what we build?How are we intending to SELL what we build?
Who will construct it?Who will construct it?
Who will oversee construction?Who will oversee construction?
What is the operational and marketing plan?What is the operational and marketing plan?
How much money do we expect to make and what funds do weHow much money do we expect to make and what funds do we
require?require?
How will we manage the risks of the project?How will we manage the risks of the project?
Requires decisions on branding and marketing strategy.Requires decisions on branding and marketing strategy.
Need full business plan in order to proceed to fundraising .Need full business plan in order to proceed to fundraising .
11. www.mastersungroup.com,
+
Development Methodology
Design Brief
NOTNOT ““what can I build?what can I build?”” butbut ““what can I sell?what can I sell?””
DESIGN BRIEF = What are you going to build and why?DESIGN BRIEF = What are you going to build and why?
Market researchMarket research
Not just a matter of ordering a report, it needs to be properly analysedNot just a matter of ordering a report, it needs to be properly analysed
Need to consider the potential audience for the development and how to reach them.Need to consider the potential audience for the development and how to reach them.
Need to understand market depth and likely acceptance of conceptNeed to understand market depth and likely acceptance of concept
Need hard data (market research) and soft data (customer research)Need hard data (market research) and soft data (customer research)
Need to identify price points, user preferences, demographics, competitive analysis,Need to identify price points, user preferences, demographics, competitive analysis,
required features, value drivers etc.required features, value drivers etc.
Financial analysisFinancial analysis
What options are there and which is most profitable?What options are there and which is most profitable?
Benefits of doing this areBenefits of doing this are
Differentiated product – able to sell your product in a crowded marketDifferentiated product – able to sell your product in a crowded market
Delivering what the market wants = building a brandDelivering what the market wants = building a brand
Price premium and faster sales ratesPrice premium and faster sales rates
= more profit and less risk= more profit and less risk
12. www.mastersungroup.com,
Development Methodology
Construction & After
As your development partner, we will provide services as required during theAs your development partner, we will provide services as required during the
construction and asset management / exit phases.construction and asset management / exit phases.
These may include any of the following:These may include any of the following:
Project management services (quality, cost control, timeliness)Project management services (quality, cost control, timeliness)
Asset management services (retail mall, hotels, golf course maintenance etc)Asset management services (retail mall, hotels, golf course maintenance etc)
Non-executive project management servicesNon-executive project management services
Development of exit routes / sales strategies to maximise the return to PromotersDevelopment of exit routes / sales strategies to maximise the return to Promoters
13. www.mastersungroup.com,
+
Asset Management Snapshot
• Assets: Budget Hotels, Commercial Complexes, Apartments,
etc.
• Asset Owners : Builders, Business Families
• Initial Value Proposition
– Cheaper, more efficient alternative
• Sustainable Value Proposition
– ROI, Asset Value Appreciation
– Credentials & Quality of Assets
– Capability in sales & marketing, development & other ends of the
value chain
14. www.mastersungroup.com,
+
Asset Management : Role
The asset manager provides the following major services. This is not anThe asset manager provides the following major services. This is not an
exhaustive list. exhaustive list.
Maximises the overall profitability of site.Maximises the overall profitability of site.
Analysis, options and recommendations to owner for decisions to be made by themAnalysis, options and recommendations to owner for decisions to be made by them
Implementation to achieve the objectives and decisions of ownerImplementation to achieve the objectives and decisions of owner
As required decisions for the general manager and management team based on those objectivesAs required decisions for the general manager and management team based on those objectives
Ensures that the strategy is converted to tactics and implemented with changes as requiredEnsures that the strategy is converted to tactics and implemented with changes as required
Looks at each Area of Operations (see above list) and look for efficiencies, improvements,Looks at each Area of Operations (see above list) and look for efficiencies, improvements,
structure, operations and qualitystructure, operations and quality
Create Standard Operating Procedures to capture hotel policy on standards, quality, performanceCreate Standard Operating Procedures to capture hotel policy on standards, quality, performance
measurementsmeasurements
Leads creation of operating budgets, capex priorities, recommendations and implementationLeads creation of operating budgets, capex priorities, recommendations and implementation
Builds management team including hiring, reshaping and firing of senior staff, setting objectives,Builds management team including hiring, reshaping and firing of senior staff, setting objectives,
performance reviews and bonuses.performance reviews and bonuses.
Ensure non-financial objectives are achieved (eg quality, social justice programs, PR etc)Ensure non-financial objectives are achieved (eg quality, social justice programs, PR etc)
17. www.mastersungroup.com,
+Understanding – Vacation HomeUnderstanding – Vacation Home
Segmentation of Vacation Home market internationallySegmentation of Vacation Home market internationally
Vacation
Ownership
Property owned generally for personal use
Timeshare
A timeshare is a form of vacation property ownership.
The use and costs of running the resort are shared among the owners
Vacation
Rentals
Renting out a furnished apartment or house on a temporary basis to
tourists as an alternative to a hotel
Vacation
Exchange
You trade your interval or week for new and different vacation experiences
at comparable resorts across the country and around the world
18. www.mastersungroup.com,
InternationalInternational Demand DriversDemand Drivers
EconomyEconomy
PopulationPopulation
Propensity to spendPropensity to spend
Income LevelsIncome Levels
Rate of borrowingRate of borrowing
Growth rateGrowth rate
Attracting investmentAttracting investment
Government InitiativesGovernment Initiatives
ConferencesConferences
Baby Boomers
Interest Rates
Key movers of the Vacation Home market
Tourism
19. www.mastersungroup.com,
+
Vacation Homes-InternationallyVacation Homes-Internationally
Source: National Association Of Realtors 2006
Desirable Attributes In A Vacation Home
38%
22%
22%
18%
Close To Ocean/Lake/River Sporting Activities
Close To Resort Ares Mountains/Natural Destinations
Leisure Activities Preferred
29%
20%
16%
11%
10%
9%
5%
Water Sports Boating Hunting/Fishing Golf Biking/Hiking Skiing Tennis
Tennis
Mode Of Purchase For A Vacation Home
68%
18%
14%
Real Estate Owners Builders
Golf
Key Learning's:
Internationally activities are critical aspects of Vacation Homes
Brokers / real estate agents play a critical role as channel partners
Locational advantage needs to be broadcast for each individual property
20. www.mastersungroup.com,
+
Vacation Home Buyers: InternationallyVacation Home Buyers: Internationally
Distance (Miles) Vacation Home % Investment Property %
25 44 69
25-99 19 9
100-199 22 5
200-499 1 *
500-999 3 3
1000-1499 * 6
1500 and more 10 8
Median Distance 49 18
* Less than 1 %
Home Size (Sq.ft) Vacation Home % Investment Property %
500 4 1
501-1000 14 14
1001-1500 56 22
1501-2000 11 31
2001-2500 9 12
2501-3000 5 10
3000 and more 1 10
Median Size 1290 1700
Format California Coastal South Florida Golf Destinations Ski Destinations
Studio 600 600 700 NA
1 BDR 590 600 550 550
2 BDR 480 600 450 580
3 BDR NA NA 400 600
Premiums ($ 000) 50-150 50-300 50-150 50-100
Distances between residence & Vacation Home
Usually less than 100 miles
Size of home : 1000-1500 sqf
Average value per sq.ft
Source: Economic Realtors Research
21. www.mastersungroup.com,
US Vacation Home MarketUS Vacation Home Market
0
2000
4000
6000
8000
10000
12000
14000
1990 2000 2005
0
2
4
6
8
10
12
14
GDP (In Billion USD) Vacation home Industry (In Billion USD)
International Vacation Home market is
maturing and seeing considerable
growth
The US$ 13 billion Vacation Home
industry in US is 0.10% of GDP as of 2005
Multiple players having unlimited
product offerings
GDP of US playing an integral role for
burst of Vacation Home industry
Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S
Along with high growth rates comes heightened competition
Brands would soon start at exploiting other geographies
0.05 %
0.08 %
0.10 %
22. www.mastersungroup.com,
India Vacation HomeIndia Vacation Home
0
100
200
300
400
500
600
700
800
900
1990 2000 2005
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
GDP (In Billion USD) Vacation home Industry (In Billion USD)
Given the current economic trendsGiven the current economic trends
we can draw the followingwe can draw the following
hypothesis:hypothesis:
- The Size of the Vacation Home- The Size of the Vacation Home
industry is approximately US$ 0.757industry is approximately US$ 0.757
billion or INR 34,150 Crorebillion or INR 34,150 Crore
Experts predict the GDP growthExperts predict the GDP growth
rate to be close to 8%, the samerate to be close to 8%, the same
would see a rise in income levels – Awould see a rise in income levels – A
factor which is one of the keyfactor which is one of the key
growth driversgrowth drivers
• Generation X will boost the growth of Vacation Homes in India
•India the next growth driver for international companies
0.05 %
0.08 %
0.10 %
23. www.mastersungroup.com,
+
Disposable income 9 lac p.a
Owns D/E segment car
Residing in posh localities
Average age = 36-40
CWE= Mostly Male
Married and has kids
42% live in joint families
35% of wives working
44% traveling abroad for vacation,
at least once a year
Indian Luxury Consumer: HNI
25. www.mastersungroup.com,
+
Vacation Home : Snapshot
• Vacation Home
• 100-200 kms from metros around a natural attraction primarily hill
stations, beaches
• International Vacation Homes in Dubai, London etc.
• Customers
– HNIs & NRIs
• Initial Value Proposition
– Variety & convenience of one stop shop
• Sustainable Value Proposition
– Needs based development
– Reach & access to NRIs
– Destination development and marketing
26. www.mastersungroup.com,
+
Indian HNI : Primary Target
Products
Vacation Home
Purchase/Lease of Commercial
Investment in Real Estate Funds/ REITs
Competitive Landscape
Wealth Managers proffering Equity & Debt
instruments
Dedicated sales team representing high value
assets
Advertising & PR by builders & marketers
Needs
Prestige, Ego Value
High Service Quality
Large portfolio of options
Customized Advisory
Relationship Building
Credibility & Accountability
Opportunities
Convenience of one stop shop for real estate needs
Advice rather than push
Broaden the horizon to look at new emerging opportunities like equity involvement
Wealth Management perspective
27. www.mastersungroup.com,
+
NRI : Secondary Target
Products
Vacation Home
Equity investment in
Commercial , Hotel Real Estate
Development
Competitive Landscape
Wealth Managers proffering
Equity & Debt instruments
Dedicated sales team representing
high value assets
Needs
High Service Quality
Large portfolio of options
Customized Advisory
Relationship Building
Credibility & Accountability
Opportunities
Convenience of one stop shop for real estate needs
Advice rather than push
Broaden the horizon to look at new emerging opportunities like
equity involvement
Reach to micro-segments
28. www.mastersungroup.com,
+
Key Success Factors
Direct Selling & Marketing for HNIs, NRIsDirect Selling & Marketing for HNIs, NRIs
Dedicated sales and service team for HNIs / NRIsDedicated sales and service team for HNIs / NRIs
Dedicated processes and systems to manage service & sales issuesDedicated processes and systems to manage service & sales issues
Dedicated telemarketing & call centre supportDedicated telemarketing & call centre support
Direct marketing strategy comprising of internet marketing and other channelsDirect marketing strategy comprising of internet marketing and other channels
Pioneering new and exciting initiativesPioneering new and exciting initiatives
Example :Halfshare.com specializes in the shared ownership of luxury vacation propertiesExample :Halfshare.com specializes in the shared ownership of luxury vacation properties
throughout North America.throughout North America.
They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-ownerThey help buyers find their ideal vacation property or Vacation Home while matching them with the right co-owner
through a Buyer Match Planthrough a Buyer Match Plan
29. www.mastersungroup.com,
+
Key Success FactorsKey Success Factors
Continuous inventory acquisition by a dedicated team
Dedicated team to scout for projects under development, completed projects, re-sale
inventory
Acquisition could be followed by
Re-packaging the real estate to make it more appealing to the target buyer
Sound Real Estate Knowledge Base
Ability to track trends and assess impact for HNIs
Ability to give a wealth management perspective and offer
Good Service Quality
Training & People development to offer good service experience
Personalized service to HNIs/NRIs
Robust processes for transaction management
Strong performance management system
32. www.mastersungroup.com,
+
Sales & Marketing to Middle Class
Customers : Middle class
Initial value proposition
Good Deal & Good Service Quality
Sustainable value proposition
Distribution channel
Width and depth
One stop shop
Good Deal
Service Quality
34. www.mastersungroup.com,
+
Benefits to FranchiseesBenefits to Franchisees
Business Support
Business Operations Manual
Exciting Inventory & Inventory Management Software
Experienced Management & Franchise Advisory System
Referral& Lead Management System
New Business Generation
Performance Monitor
Staff Recruitment Assistance Programme
Regional Managers and Franchise Operations Centres
Effective Marketing Mix
Advertising & Public Relations
After Sales Service
Regional Marketing Programme
Branded Promotional Merchandising, Brochures etc
Loyalty Card Programme
Personal Business Development
Comprehensive Introductory Programme
Comprehensive Sales Training Programme
Field Support
Recognition Groups for Outstanding Achievers
Software Support & Training
36. www.mastersungroup.com,
+
Key Success FactorsKey Success Factors
Wide Reach to Increase Convenience & Access
Branch network in class A cities
Branch offices in strong NRI markets
Extensive network of agents & franchisees on a win-win model
Wide Choice to Facilitate a One Stop Shop Experience
Continuous inventory acquisition by a dedicated team
Effective Tie-Ups & Alliances to offer complementary &
supplementary services
Incentivizing the network to add inventory
Effective inventory management software and systems
Attractive inventory display & merchandising
37. www.mastersungroup.com,
+
Key Success FactorsKey Success Factors
Good Service Quality
Training & People development to offer good service experience
Effective systems for inventory management
Effective software and systems for CRM
Robust processes for transaction management
Strong performance management system
Continuous inventory acquisition by a dedicated team
Dedicated team to scout for projects under development, completed projects, re-sale inventory
Acquisition could be followed by
Re-packaging the real estate to make it more appealing to the target buyer
Small value additions to make the inventory more valuable
Exclusive marketing and sales rights to add to distribution power
Incentivizing the network to add inventory
Win-Win model for agents/franchisees to populate the site with inventory
Outsourcing of inventory acquisition to agents/franchisees in areas with low development potential
and/or low purchasing power
38. www.mastersungroup.com,
+
Key Success FactorsKey Success Factors
Integrated SoftwareIntegrated Software
A low cost suite of an easy-to-use integrated software systemsA low cost suite of an easy-to-use integrated software systems
Cover every key aspect of successful real estate agency practiceCover every key aspect of successful real estate agency practice
Full technical and training support supplied by the team atFull technical and training support supplied by the team at
Technology.Technology.
Software system has a database, lead management , activitySoftware system has a database, lead management , activity
scheduler, diary and presentations package designed to createscheduler, diary and presentations package designed to create
efficiency, lift sales and allow accountability in the officeefficiency, lift sales and allow accountability in the office
Software system are fully integrated.Software system are fully integrated.
This means that data only needs to be entered once. It is thenThis means that data only needs to be entered once. It is then
available for use in all modules of the systemavailable for use in all modules of the system