Casagrand aims for Rs 2,300 crore sales in FY20: Eshwar N, Executive VP, Marketing
In a chat with e4m, Eshwar N talks about building a connection with the consumers, Casagrand's marketing strategies and the brand's commitment towards delivering projects on time
‘Building Aspirations’ is the tagline that one sees with the logo of the leading South Indian real estate developer, Casagrand Builders. And this is the also the positioning that the realty firm has undertaken, says Casagrand’s Executive Vice-President of Marketing Eshwar N. “Casagrand is an aspirational brand for anybody who wants to buy a home and we're very happy to be in that space. An aspirational brand need not be always an expensive brand and as a brand, we give a lot of value for the money that the customer pays,” he says.
Looking at the financial numbers, the 16-year-old realty firm has been growing at 30 per cent CAGR over the last few years. Last year the company clocked Rs 1,800 crore in sales and this year it estimates to end the financial year with sales of Rs 2,200 crore – Rs 2,300 crore. “The market for Casagrand has been good with respect to the fact that we are able to sell more than what the competition is able to sell. So, if we have sold Rs 1,800 crore of inventories in the last financial year, our nearest competition would have sold Rs 500 crore – Rs 600 crore,” says Eshwar.
Marketing Brand Casagrand
Eshwar revels that the advertising budget for Casagrand is around Rs 100 crore – Rs 110 crore. As is the case with real estate marketing, the lead medium is Digital with 35 per cent of the budget allocated to the online space and print garnering another 20-25 per cent of the advertising budget. This is followed by the other support mediums of communication like TV, events, exhibitions, radio and roadshows.
However, what differentiates Casagrand from other realty is its use of television. The company utilised TV recently for not only for its recent brand film but also its premium community project, Casagrand Royale in Chennai to reach a large section of the audience across segments.
Commenting on its recent TVCs, Eshwar says, “Print is a medium which works when you want to reach out to a large audience. However, we thought television will work for project Casagrand Royale and we had our TVC ‘Chance Irukku’ (It is possible).”
Eshwar says that another first for the real estate segment was that the TVC featured four popular celebrities together, Sarath Kumar, Prasanna, Devadharshini and Abirami, who highlighted the four different key features of the project, which meet the dream requirements of many home buyers.
Commenting on the celebrity usage and the response to the TVC, he says: “From this one campaign that we did, we sold close to 200 units out of 550 units. The talking points in the realty campaigns are usually discounts and offers. We wanted to break the clutter and that's the reason we used a celebrity. Celebrities have also been used by other builders but they only use one celeb. However, given the magnitude of the project, we thought it would be innovative to use four for this project. This is a first in the Indian real estate where four celebrities are endorsing one project.”
Commenting on the medium that has the best conversion for realty marketing, he says, “The speed of conversion is what we need to look at. If you look at faster conversion, then print medium works; online conversions are slower than other mediums. However, if you are looking at the cost of conversion and the cost of the sale, then online is obviously the best medium to invest in.”
Expanding Beyond Chennai
The biggest market for Casagrand is Chennai followed by Coimbatore and Bangalore. In fact, the company’s dominance in the Chennai market can be gauged by the fact that it currently has 25 projects (on-going and ready to move) spread across micro-segments markets and geographies.
According to Eshwar, “In Chennai and Coimbatore, we are the largest player in terms of market share and volume of sales that we do. In Chennai, we always take a stand of being a leader in the market and our communication and advertising in this market is bolder. The spends are also high because we have so much inventory to sell here.”
The fact that the company has delivered homes on time has helped Casagrand build its credibility, says Eshwar. Another strategy that has worked has been “in pricing the projects very attractively.”
Casagrand entered the lucrative Bangalore market, which has had many well-known players, a couple of years ago. So how will the brand position itself in Bangalore to stand out from the well-known players? He says, “We have a history in Chennai of delivering projects on time. In Bangalore too, we have delivered to the buyers on time. It makes logical sense for us to take a similar positioning because, in Bangalore, delivery is still an issue for some builders here. That is the void we would like to fill. However, we want a lot more stocks in the region for us to take up a positioning.”
The company is aggressively looking to expand in the Bangalore market and this, in turn, is expected to increase the marketing budget. Says Eshwar, “While our sales target for this financial year is Rs 2,300 crore, for next year we have set a sales target of Rs 2,700-2,800 crore to achieve. So, next year our marketing budget will be around Rs 120-125 crore.’
The Way Ahead
When asked about the key challenge for Casagrand brand, Eshwar says, “The primary challenge for the brand is that we are three times bigger than the second biggest player in Chennai. There could be a level of saturation that we may hit in the Chennai market. We have big aspirations and may look at an IPO in the next two to three years. So for the bigger aspirations that we have, we need to move to other zones faster. We are looking to enter Hyderabad in the next financial year. We are also looking at entering into the education space with a global school.”For more updates, be socially connected with us on
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