Market Feasibility Plan_mh

8/2/2019 Market Feasibility Plan_mh

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MARKET FEASIBILITY

PLANMOBILE HOUSING

Swati Mittal, Kaushal Panchal, Mahipal SinhChauhan


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Market Growth

In India, construction is the second largest economic activity after

agriculture. The investment in construction accounts for nearly 11% of

India's Gross Domestic Product (GDP).

Nearly 50% of its Gross Fixed Capital Formation (GFCF).

It accounts for nearly 65% of the total investment in infrastructure and is

expected to be the biggest beneficiary of the surge in infrastructure

investment over the next five years.

As per the Eleventh Five Year Plan, more than US$500 billion worth of

investment is planned to flow into Indias infrastructure by 2012.

Source: http://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.kmointernational.com/construction-and-infrastructure.php
http://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.kmointernational.com/construction-and-infrastructure.phphttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdfhttp://www.pwc.com/en_IN/in/assets/pdfs/infrastructure-in-india.pdf


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Why is it an unexplored business..???

Less awareness about the product.

Cost of making Mobile house is high.

As a social stigma is attached to this business, people are not

ready to do business .

Government Policies-regarding transportation

Lack of flexibility in on-site design changes.


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Market Size

Target Region : Gujarat-Population(6.3 cr.)

Gujarat represents 5% of Indias population and 6% of its

area.

Market size : 40% of Construction Industry size (Gujarat).

The compounded annual growth rate (CAGR) of industry

sector experienced 6.9 per cent [(1999-2000) to (2006-2007)],

expected to grow at a rate of 8% till 2020 with investment of

over Rs. 860,000 cr.

Source : GIDB

http://www.gidb.org/downloads/vol_1B_summary_2020.pdf
http://www.gidb.org/downloads/vol_1B_summary_2020.pdfhttp://www.gidb.org/downloads/vol_1B_summary_2020.pdfhttp://www.gidb.org/downloads/vol_1B_summary_2020.pdfhttp://www.gidb.org/downloads/vol_1B_summary_2020.pdf


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MARKET SEGMENTATION

Geographic segmentation

Phase 1: Target market Gujarat

Phase 2: Rest of India

Demographics:

Engineers at construction sites.


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OUR PLAN

Insight

Suffocated

environment.

Spacing

lack of familiarity of

the consumers.Lack of awareness.

lack of flexibility in

on-site design changes

PositioningBetter Price

More than limited

walls

Better Service

Services

Material Handling

Assembly on site.

Modularity's

Interiors


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TARGET SEGMENT

Engineers at construction site.

Other Target Segments:

Site Office/Accommodation, Portable Class Rooms, Small

Hospitals, Bathrooms, Camp Site, Terrace Rooms, BeachHouses, Security Rooms, Cellular Phone shelter, Farm

Houses, Bunk House, Modular Cabin, Portable Toilet,

Guard Rooms/ Post, Clinics, Roof top, Hotels, Huts,

Barracks, Portable Kitchen, Cold storages, Exhibition halls

kiosks, Workshops Warehouses, Extended accommodation,Disaster Relief Shelters, Low Cost Housing, Storage Shed,

Transit Camps, Resorts & Hill Cottages, House (one to

three bedrooms)(Up to) three-storey house


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SCOPE OF OPERATIONS

Construction sites at varied locations.

MobileHousing

Hilly Terrain/undulated

regions

Ports/coastalareas

Roads &Highways

ConstructionSites


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COMPETITOR ANALYSIS

The market is untapped to the extent of 60-80 percent,with lesser competition on bigger scale.

There are very less companies that offer expertise in the

market. In reality many companies dont offer prefabthemselves but outsource it to companies who actuallyhave the expertise i.e. Most of the small firms areengaged in installing prefab units bought from thesuppliers. Its only the bigger companies that have their

manufacturing facilities.

Source: The Business of Prefabricated Structures,Nimesh Sharma, KPMG
http://dare.co.in/opportunities/infrastructure-logistics/the-business-of-prefabricated-structures.htmhttp://dare.co.in/opportunities/infrastructure-logistics/the-business-of-prefabricated-structures.htm


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CONTDNO. COMPANY NAME /

COMPITITORSPRODUCT PRICING CLIENTS

1 H.V.V Engg.,

S.G.Highway,

Ahmedabad.

Container Mobile

offices with interior

5-6 lacs (selling

only)

Construction sites,

Project sites Turnkey

Projects

2 R.K. Industries,

Ahmedabad

Container houses 3.504 lacs

(Renting Model)

Govt. projects like

Vibrant Gujarat,

Dams, Roads

Project consultancies

Event companies

3 Mr. Aspy Unwala ,

ahmedabad

Container houses

come office and

mobile laboratory

10-12 lacs

(Rental Only)

Military supply

Guest House

5 Tinny Craft, New

Delhi.

Porta Cabins,

Mobile houses and

containers

Selling Farm House

6 SINTEX Industries Conytainer houses

and offices

3.54 lacs Hilly area are

adorned with cabins


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RK INDUSTRIES..

STRENGTH

Single player in

market Good quality product

WEAKNESS

Unsatisfactory service

High service price


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COMPETITIVE ADVANTAGE

Modular and detachable Pre-Fab Housing.

Redesigning - Innovative design according to Indian

standard

Easy to carry and assemble at site location.

Cost and material effective.

Well Ventilated.

Not just limited to the four walls.


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MARKETINGSTRATEGIES


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PRODUCT/SERVICE

MOBILE HOUSING,prefabricated modular

structures, in standard sections that can be easily

shipped and assembled on site and are designed and

built to be movable rather than permanentlylocated.

Adequate spacing with pleasant interiors adequate

for civil engineers.


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PRICE

One-time installation :

Existing price of Mobile Housing is ranging between Rs.2,50,000Rs 3,50,000

Our price : Rs. 3,00,000 (assuming)

Pricing strategy: Price Penetration

Total Mobile Housing Solution :

Existing service charge is between (Rs20,000-Rs. 30,000)/day inclusive of transportation and installation cost.

Our service charge : (Rs. 10,000)/day

Providing better service due to our new product

Pricing strategy : Price penetration


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CONTD

Material used MaterialRequired

Price Total Price(in Rs)

1 SIP for walls 150 Sq

meter

750Rs/sq

meter

112000

2 SIP for roofing 32 Sqmeter

750Rs/sqmeter

24000

3 Checked ply for flooring 32 Sqmeter

1400/sq meter 44800

4 MS for structuring andframing

430 kg 55Rs/kg 23650

5 Labor charges and others - - 20000

Total Cost 224450

Source: R.KIndustries


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PLACE

Product(Mobile Housing)Dealers, Service Provider

For serviceConstruction/ Infrastructure companies

Direct Customer

One Time installation

Service Provider

Manufacturer(Us)

Dealer/Distributor

Construction/Infrastructure Companies


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PROMOTION AND DISTRIBUTION

PUSH AND PULL STRATEGY:

A push promotional strategy makes use of a company'ssales force and trade promotion activities to createconsumer demand for a product.

The producer promotes the product to wholesalers, thewholesalers promote it to retailers, and the retailerspromote it to consumers.

A pull selling strategy is one that requires high spendingon advertising and consumer promotion to build up

consumer demand for a product. If the strategy is successful, consumers will ask their

retailers for the product, the retailers will ask thewholesalers, and the wholesalers will ask the producers.


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P&D Contd..


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MARKETING EFFORTS(Promotion)

Promotion

Direct marketingConstructionCompanies and Government

Agencies

Awareness

The resale value of Pre-Fab housing in

comparison to concrete housing onsite location Awareness campaign .


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Questions/Discussions

Question One

Discussion

Discussion

Question Two

Discussion

Questions Three

Discussion

Documents

Market Feasibility Plan_mh