Ankit Construction, a well-known company in Nagpur Reality Industry, started its business way back in 1998 as a road contractor. When the business started growing and surplus funds started coming in the company diversified into real estate business in 2002. For the next 10 years they built small flat schemes and sold successfully. The only marketing communication used was the word-of-mouth campaign. After 2010, as the reality business at Nagpur started picking up Ankit Construction launched a large flat scheme in December 2012.
Many small time builders at Nagpur became developers and promoters of big projects having flat scheme of around 200-250 flats in a township. Ankit Construction also started with a flat scheme of 82 flats under the Brand name ‘K-SQUARE’ Narendra Nagar, Nagpur. The scheme was launched in December 2012. The time passed and sales did not pickup despite having the project at good location.
As the company had little experience in residential housing business and lacked of long term vision, initially it did not focus on marketing of the project. As a result, the sales did not pickup despite having flats at good location. In order to improve the sales, in 2013 Ankit Construction made a tie-up with another company Grace Reality to sell its flats. The symbiotic relation lasted for nearly one year. After the bad experience of tie-up no major marketing efforts were undertaken by the company. Moreover, the project got delayed because of fund constraints. In desperation of funds again, Ankit Construction is evaluating the option of taking support from a very reputed builder of Nagpur city to sell their flats and the negotiation is going on.
With the bad experience of tie-up and cash crunch no major marketing efforts has been undertaken by the company yet. The project has got delayed because of fund constraints. The project is almost 75% complete. In desperation of funds, again Ankit Construction is evaluating the option of taking support from a very reputed builder of Nagpur city to sell their Idle Inventory of flats and the negotiation is going on.
- I. Whether engaging Pioneer Builders for selling flats is a right decision of Ankit Construction? Support your answer with proper reasoning. If not then what do you think could be the right solution?
- II. As a consultant to the Ankit Construction do the Positioning of the ‘K-Square’, Narendra Nagar project in Nagpur Market.
- III. ................