Real Estate Business Plan for Prime Properties

This business plan outlines the strategy for Prime Properties, a real estate company offering various types of properties for buying and selling. The plan covers the methods used to generate the business idea, feasibility studies, STP, Porter's five forces, and marketing mix. It also includes market analysis such as SWOT and PEST analysis of the company.

ENTERPRISE AND
ENTERPRENEURSHIP

INTRODUCTION
 Real estate business is the profession of selling, buying, or renting the properties
to the people. This business is much profitable as the value of the land never
lowers instead it always increases.
 Prime properties company is the real estate business company who will offer
different types of properties for buying and selling which includes residential,
commercial, industrial and agriculture land.

Why this business-
 Real estate business is considered as the most promising sector for the new start-
up of the business. The scope of demand of the properties makes this sector the
most profitable sector.
 This sector was selected as it also the profitable business because the value of the
property never decreases instead it increases day by day.

Methods used to generate the business idea-
 Problem inventory analysis was used to generate the real estate business idea by
focusing on the problems. This analysis helps to focus on the new product and
services ideas.
 This analysis was used because by this it becomes very easier to relate with the
known products and services for generating entirely new products and for
suggesting the solution.

Products and services offered-
 The products and services offered by
the Prime Properties are all the
properties which are provided in this
sector.
 Usually, the problem faced by the
people are in the rental services so
by analysing, the rental services will
be provided to the people according
to the needs and wants of the
customers (Chitty and et.al. 2019).

Vision and mission of the company-
 Prime Properties major long term goals
and objectives is to expand its wealth,
going public as well as going through the
new opportunities for the business.
 The company wants to grow as early as
possible to lead in the competitive market
as five years from now.

Feasibility studies
 Feasibility study is an assessment of the proposed plan practically. The
feasibility study helps the company to analyse whether the company will
succeed in the future or not.
 . Prime properties going through these feasibility studies will help this
company to evaluate their future growth (Kikavets, 2019).
 The four forms of feasibility studies are-
 Product/ service feasibility- This feasibility analysis is used to evaluate
the overall performance of the proposed product and service of the
company.

 Industry/ target market- This feasibility study involves
the assessment of the industry attractiveness, target market
attractiveness and the timeliness of the market.
 Prime properties is the business which is much demand in
the present as well as in the future so by this the company
can understand that the company will grow in the future.
STP-
 Segmentation- Through this, the company can identify the
niches with the particular needs, market to find the new
customers and delivering the more effective and focused
marketing messages (Corden, 2019). Prime properties can
do market segmentation like geographic, demographic,
physiographic and behavioural.

 Geographic segmentation- This is the market strategy which is used
to target the products and services at a particular location. It involves
understanding the needs and wants of the particular location (Christy
and et.al. 2021).
 Demographic segmentation- - This segmentation is based on the
demographic variables such as gender, education, income and many
more. This helps the organization to understand the who their
customers are according to this they can address the needs.
 Physiographic segmentation- This segmentation helps in dividing the
consumers on the basis of the personality, lifestyles, social status,
opinions, attitudes and many more. This helps the organization to
address the needs and wants of the customers according to these
segments as this will help in satisfying every customer of the
company.

 Behavioural segmentation- This is the segmentation in which the customers are divided on the
basis of their behaviour patterns while interaction with the specific business. The behavioural
patterns of the consumers includes the actions they perform in their everyday life.
 Targeting- It is the most important element for the start-up business as it allows them to serve to
the particular market. Prime properties will target the customers who are interested in investment
for long term as well as for short term.
 Positioning- It is the process of creating the products and its marketing for fitting to the market
segmented. The tool used to figure out positioning is to understand the unique selling preposition
to the segment.

 Organizational feasibility- This feasibility study
focuses on the sufficiency of the resources by the
organization to bring or launch the product or service to
the market. Prime Properties must check the resources
for the business because lack of resources will not be the
profitable business. The company must ensure the
resources for the successful launch of the business. The
most important resource for the organization is the
budget (Mukhezakule and Tefera, 2019).
 Financial feasibility- This feasibility study enables the
organization to understand whether the business plan is
fiscally viable or not. It basically includes the cost
benefit analysis of the business plan. It outlines the
financial risks and forecasts the expected return on
investment (ROI).

Porter's five forces
 Porter's five forces is the model or tool which is used by the
organizations to identify and analyse the five competitive
forces which helps in shaping the company as well as
determining the weakness of the company. Through this
model, Prime properties will be able to understand its
competition in the market and its weaknesses. The five forces
are-
 Competition in the industry-
 The first force is states the number of the competitors as well
as their ability to undercut the company. The power of the
company lowers when there is large number of competitors
along with the products and services they offer.

 Threats of new entry-
 The power of the company gets affected by the
new entry into its market. If the cost and efforts
are less to enter into the market then the
competitor easily enters the market and can
become an effective competitor which leads to
weakened the position of the company.
 Power of the suppliers-
 This force states that how easily the suppliers
can change the cost of the inputs. It is basically
affected by the number of the suppliers of a
good or services and how much it costs to
switch to the another suppliers.

 Power of the customers-
 This includes the ability of the customers to
make the prices low as their level of power. This
is affected by the number of the customers a
company has, how important each customer is
and how much it would cost by the company to
find new customers.
 Threat of substitutes-
 The substitute products are those which are
similar to the product of the another company.
The company offering the same product as the
other than there is threat of the substitutes.

Marketing mix-
 SWOT analysis:
 SWOT analysis allow company to analyse strength and weakness and
help them to examine opportunities and threats that revolve around company,
there are four elements in the SWOT analysis, these are:
 Strength: strength of every business organization lies in uniqueness they have,
this simply means if company offer innovative or unique product and service in
the market then they can become strong in the market.
 Weakness: weakness of every business organization lies in those areas where
company need improvement, weakness of Prime Properties lies on free
maintenance service they provide to the property owner which cost highly to
them. This company only target elite group of people which limit their marketing
process, this is weakness for company as they are not reachable to those interested
buyer who willing to buy prime properties in the country.

 Opportunity: opportunity is one of the most
important thing for every business organisation, this
allow them to boost their sales in the market,
opportunity are automatically generated if company
improve their weak area which means if Prime
Properties improve those weakness which impacting
company then to can generate.
 Threat: threat for every business organization is
competitors and their movement in the market, it is
very clear that strategies of competitor impact
company's performance and become the biggest
threat. Prime Properties is one those companies who
will going to face neck to neck competition from
industry ruler who have great market share and
ability to attract customer (Teoli, Sanvictores and
An, 2019).

 PEST analysis:
 PEST analysis allow company to examine external factors that might impact company
and its performance, these include:
 Political factor: Political factor is one of the most important element for every company,
government and its policy impact company (Perera, 2017). After Brexit, market of the UK is
unstable, government is taking steps to stable market condition. There is rapid demand in house
and properties in the UK, government is introducing new policy that every real estate company
have to consider.
 Economical factor: Economical factors is another important factor that impact company,
unstable economic condition impact performance of company. After COVID-19 impact, UK's
economy was unstable which simply means every sector will face issue, real estate market of
the UK is still rapidly changing which will impact company's position.
 Social factor: social factor means customer and their behaviour in buying and selling process,
after COVID-19 impact, spending capacity of customer have impacted which means even elite
customer are not ready to buy properties in the UK.

 Technological factor: technological factor is one of the most important
factor for every business organization as this allow company to
understand latest and fastest technology of the industry they are dealing
in.
 Product mix: product mix is one of the most important element in
marketing, this allows company to introduce innovative product and
service into the market to win customer.
 Price mix: price mix allow company to set price of the product and
service according to the market condition covering marketing cost, every
business organization need to understand price a customer is willing to
pay and set price of the product and service accordingly.
 Place- When the organization takes decision regarding the place which
means that they are determining where to sell the products and services
to the customers and how these can be delivered in the market.
 Promotion- This is very essential for every company as it enables the
products to reach to the public.

CONCLUSION
 This report has outlined the business plan of the
organization which includes how this business idea
raised, method used to generate the business idea.
Along with this, it also includes the feasibility
studies such as organizational feasibility, target
market feasibility and many more. Further, it has
discussed the Porter's five forces and the marketing
mix of the company. It also includes the market
analysis such as SWOT and PEST analysis of the
company.

REFERENCES
 Chitty, W., and et.al. 2019. Services marketing.
 Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
 Christy, A.J., and et.al. 2021. RFM ranking–An effective approach to customer
segmentation. Journal of King Saud University-Computer and Information Sciences. 33(10).
pp.1251-1257.
 Corden, J., 2019. STP: Only the beginning. Inside Film: If. (189). p.33.
 GURL, E., 2017. SWOT analysis: A theoretical review.
 Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research-
Granthaalayah, 4(6), pp.25-37.