Lodha Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Lodha through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Lodha Product Strategy:
Lodha Group is one of the fastest growing real estate companies in India. Lodha group’s product strategy is developing lavishly decorated, modernised and premium class buildings. Most of its projects are known for being world class and having excellent designs suited for a luxurious high-profile lifestyle. The product category in its marketing mix can be divided into three parts- residential real estate, commercial real estate and shopping malls. The residential real estate business consists of Luxury Apartments, Luxury Villas, Terraced Apartments, City centres, greenfield smart cities, Sky Villas and modern luxurious residences. The modern luxurious residences of Lodha again consist of 1, 2, 3, 4 or 5-bedroom homes to suit the needs of different people. All the residential buildings are known for having huge open spaces for golf courses, swimming pools, gardens etc. The commercial real estate offers branded office spaces at different levels- world-class corporate offices, large-scale office campuses and signature boutique offices for small or growing businesses with varying personalised needs. Going with the market trend, Lodha also offers luxury homes to the mid income segment customer through its CASA projects which are in a slightly affordable range.
Image: company website
This concludes the product strategy in Lodha marketing mix & strategy.
Lodha Price/Pricing Strategy:
Below is the pricing strategy in Lodha marketing mix strategy:
Lodha prices its offerings in the extreme premium segment. The prices are well justified by the high-class quality, world class designs in collaboration with famous international architects and developers and posh locations of the buildings.
With CASA, they are focussing on medium range customers but apart from that, all their offerings are for premium high-income buyers. With the lower range studio apartment residences starting from Rs.40+ lakhs, the luxurious villas start from Rs.6 crores and can go up to mammoth prices. Lodha is also known to sell the priciest apartment in India at Altamount Road locality in South Mumbai at Rs.1.6 lakh per square feet, amounting to a total of Rs.160 crores. The commercial real estate also follows premium pricing model owing to modern design, facilities and the Lodha brand of excellence. Lodha Group is one of the highly profitable real estate players of India and was the largest player in terms of annual sales for three consecutive years from 2011 to 2013.
Lodha Place & Distribution Strategy:
Following is the distribution strategy in the Lodha marketing mix:
Lodha brand has its presence in both India and abroad. In India, it has its projects in Mumbai, Thane, Pune, Hyderabad. The company has most of its projects in Mumbai and Thane at posh upscale locations of Altamount Road, Andheri, Bhandup, Dahisar, Goregaon, Kanjurmarg, Mahalaxmi, New Cuffe Parade, Palava, Parel, Powai, Prabhadevi, Upper Worli and Worli. Lodha Group ventured into international real estate by acquiring the landmark MacDonald House at 1 Grosvenor Square in Central London. The land piece was bought from the Canadian Government for over GBP 300 million (Rs. 3,100 Cr). Lodha has about 43 million square feet of prime real estate under development. It also has the largest land reserves in MMR, and around 28 under progress projects across, Mumbai, Pune, Hyderabad and London.
The group is also expanding in Bangalore.
Lodha Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lodha marketing mix is as follows:
Lodha group specially focuses on marketing and branding of its larger than life projects. Lodha uses the tagline- ‘Building a Better Life’ for its real estate offerings. It also uses a variety of other promotional and marketing gimmicks including celebrity endorsements for its projects which include India Movie actors like Akshay Kumar, Twinkle Khanna, Aishwarya Rai Bachchan, Deepika Padukone and famous fashion designer Manish Malhotra. Lodha group uses bill boards across cities and highways as well as ads in local newspapers to promote their projects. Lodha uses the international brand names like Armani/CASA and Trump towers to pull attention of customers having a taste for international designs and architects. It also uses price promotion strategy by offering attractive EMI schemes, tax-free homes and other savings on home purchases. It uses different product placement strategies in its advertisements to attract both the middle segment customer who are price sensitive and the premium high-class customers who are class sensitive.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Lodha Group.
People:
Lodha Group understands the importance of people in delivering on the promise of “building a better life” and tries to recruit the best talent in all the departments like construction, design, architecture, investment, land acquisition, marketing etc. Lodha encourages its employees by treating them well, with respect and keeping the expectations high. It provides its employees opportunities to grow, work with the best minds in the country, work in association with established names like McKinsey, BCG, HUL, Lafarge etc and get rewards and recognition for their contribution. It has been awarded as one of India’s best company to work for by Great Places to Work 5 years in a row. Lodha is one of the largest corporate houses of Mumbai. It has more than 3,870 direct associates and 25,000+ workmen at all of its sites. It’s technical manpower comprising of more than 1,800 engineers, over 800 management professionals and 150 designers and architects is the largest in real estate sector. Given the group’s special affinity towards branding and marketing, it employs over 550 marketing and sales professionals and 300 customer care representatives to provide best class service.
Physical Evidence:
Lodha Group is tremendously successful and is a well-established name in Indian real estate sector with its brand associated with high-end premium projects. It has also got backing in the form of financial investments from some of the world’s best investors like JP Morgan, HDFC Ventures, Deutsche Bank and ICICI Ventures. Lodha has won multiple awards over time such as- the 2017 Best Social Media Integrated Campaign for World Towers and Best Rich Media Campaign for Find Your Kingdom at the National Awards in Marketing Excellence. It also won the Special Recognition Award at ET Best Realty Brands Awards in 2015. Other awards include the 2014 Global Leadership in Real Estate Award, the 2014 National Safety Council Award in the Construction category and 'India's Most Admired Builders' Award in 2014. Lodha Group was also ranked as 'India's Most Trusted Brand' in the Real Estate Developer category by The Brand Trust Report.
Process:
Lodha group follows all regulatory and legal norms for its real estate projects. The system of land acquisitions is all very fair and open for all to see. It has a very smooth purchasing process and experience for home buyers with around 300 customer relation executives to guide them through the process and help them out in case of any grievances. Lodha believes in providing maximum information to the prospective buyers to avoid hassles and therefore keeps its online website updated with all of its projects which have been completed, under construction or planned in the near future. The customers can even get the information based on localities or the project names and show interest to get more details about the projects. Lodha group even provides financing facilities with EMIs suited for all customers’ needs and avoids them the pain of running through banks for getting loans. All other legal procedures like registration of the house and land are also streamlined by the company. This gives an insight in the marketing mix of Lodha Group.
About Lodha:
Lodha group is a Mumbai based real-estate developer known for its high-end commercial and residential real estate. Lodha group was established in 1980 and has since then built a huge reputation for itself in the sector. Its strategy focuses on branding and marketing of its real estate projects. It is famous for developing some of the most premium and high-end buildings in posh areas of Mumbai and nearby. Lodha is also known for collaborating with international premium developers like Armani/Casa Trump, Greg Norman, Jade Jagger, Philippe Starck, Pei Cobb Freed and Kelly Hoppen to bring their expertise, branding and panache to buildings in India. Lodha group relies on high class designs, excellent and timely implementation and a differentiated branding to stand out from the competition.
In recent years, it has closed some very high profile deals with Mumbai Metropolitan Region Development Authority and US consulate to develop world class buildings. Lodha group has a target to sell 1,000 homes each year starting from 2017 to deliver on its promise of a Better Life.
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