Course : MKT401

Section :1

Submitted to : Abul Khair Jyote

Submitted by : Md Zahidul Hassan Jitu

ID : 1822228
Contents
Introduction......................................................................................................................................3

Cross-Cultural Analysis...................................................................................................................3

Environmental Analysis...................................................................................................................4

Home Country Environment........................................................................................................4

Host Country Environment..........................................................................................................6

Hofstede's Dimension....................................................................................................................10

Stages of International Marketing Involvement............................................................................11

Mixture of both International Marketing (Multidomestic) and Global Marketing....................12

Modes of Entry..............................................................................................................................12

Ownership..................................................................................................................................13

Marketing Strategy........................................................................................................................14

Marketing Mix (7P’s)................................................................................................................14

Conclusion.....................................................................................................................................17

References......................................................................................................................................17
Introduction
Real estate is one of the major and booming sectors of Bangladesh. The demand for housing is
increasing exponentially mostly in Dhaka and its nearby areas. It has been found that every year
10,000-12,000 apartments are delivered by the real estate sector.

A personal home is seen as the “Bangladeshi Dream”. A lot of people are shifting to Dhaka
regularly which raises the demand for new apartments. Previously, the buildings were only 2-4
storied ones but now Dhaka has seen the rise of high-rise apartments.

Offerpad is an Arizona-based startup revolutionizing the real estate sector since 2015. Their
multifaceted customer-oriented service makes the buying and selling of homes easier and makes
it an enjoyable experience. They have strong experience and use data-driven technology to
provide the best service to their customers.

If marketed properly, Offerpad can change the whole real estate buying and selling scene of the
country. It can improve the inefficiencies in the process and offer smart solutions to the users.
The performance of apps like Uber in Bangladesh has already shown that it is possible to reach
great heights and be very profitable by grabbing the market here.

Cross-Cultural Analysis
The Americans are usually a part of the “Doing” culture. This means that they are always busy
with their work. They strongly live by the term “time is money”. As the culture motivates
competition, they often work hard in developing themselves and defeating their competitors.

They are more focused on commitments, convenience, quality, and punctuality rather than
having relying on forming relationships to gain the advantage. They are more likely to do one
task at a time and then move on to the next.

The cultural aspects indicate that the Americans are always busy and have very little time and
patience to buy or sell homes in the traditional way as it disturbs their peace of mind. Offerpad
thus offers a wonderful solution for them. It provides a fast solution, within 24 hrs making it very
convenient. Also, just after a house is bought or sold, it’s the responsibility of Offerpad to deal
with the rest.
Bangladeshis on the other hand do have someone who can look after the whole buying/selling
procedures. Most of the time the owners deal with these themselves as they are often elderly
people with less work/no job (retired). Sometimes there is a caretaker or another family member
who does that. Often some unofficial middlemen connect the buyers with the sellers while
charging a hefty commission (no fixed amount is set). Bangladesh has a conservative country, so
repeated visits of potential buyers are not dealt with comfortably. Offerpad can simplify the
whole procedure. The sellers will get a fair amount determined by the experts and the buyers will
get a proper readymade home. The need for frequent visits by the buyers will be eliminated.

However, there are several differences between the culture two countries. Hofstede's dimension
highlighted a lot of these differences. The marketer must be aware of these differences and
eliminate their self-reference criterion (SRC) while operating in Bangladesh.

It might be shocking for the firm to find out that the people here are not as tech-savvy as in the
US. They need to be educated first about the procedures of Offerpad. Since they have high
uncertainty avoidance, it will take time to make them adapt to this new technology. A large
number of people will still prefer the traditional middleman approach no matter what.

Since the country is relationship-oriented and a highly collectivistic one, they will prefer
someone from their network rather than trusting some foreign company. Also, it is not possible
to make the procedures as fast as they are in the US because of lots of factors. So comparing with
that performance will only create dissatisfaction. Therefore, the goal here should be to make the
process of buying and selling homes simpler and easier.

Environmental Analysis
Home Country Environment

Political/Legal
  The political state is highly stable in the USA. The reason America is so powerful and
wealthy today is because of its high political stability. Although it was ruled by a
republican party for the last four years, 2017-2021, which was accused of several
charges such as abuse of power, impediment of the Congress, not handling the
COVID-19 crisis, and the protests due to George Floyd’s death well. However, the
situation is likely to improve as the current ruling party, led by Joe Biden, represents
a democratic government and it has been previously observed that the country thrived
with democracy.
 The USA is one of the top countries to exercise strict intellectual protection rights. As
per the Annual International Intellectual Property, (IP) Index of 2021 USA got the
highest score among all the other countries that were listed. Therefore, innovative
ideas are always burgeoning in that region.
 Although the corruption in the USA is at the worst level in almost a decade it’s still
fairly low in comparison to the host country. The corruption rate is also very low in
the country and is ranked 25 out of 180 countries in the Corruption Perceptions Index
2020.
 Setting up a new business is very easy in the USA. It takes less time to complete the
entire registration process.
 The regulatory system in the country supports the business culture and encourages
competition.

Economic-

 The United States currently is the largest economy in the world. Its GDP currently
stands out to be 21.43 trillion USD (2019), as per the World Bank.
 The country has one of the highest disposable incomes. This means that consumers
have more money in their pocket to spend and invest.
 The labour cost here is high. So, a very high amount of salary must be paid to hire an
employee.
 Several strong labour laws are practiced in the USA.

Competitive Structure
  The market is very competitive with as many as 10 direct competitors with similar
solutions in the same market. Such companies are Open Door, We Buy Houses,
Homie, Redfin, Zillow Group, Knock, Need To Sell My House Fast, Realtor.Com,
Zumper, and Movoto.
 Some of these companies are even bigger than Offerpad with more employees and a
larger revenue stream.
 There is a huge demand for housing in the country but there is a shortage in the
supply of it. Due to the lockdown, people got habituated to living inside their houses.
Thus, they started being more concerned about housing and are looking for better
houses.
The Millenials are making most of the housing purchases as they are starting their off
families and having kids. Other than that, a lower interest rate and a high purchasing
explains the reason behind this rise in demand

Host Country Environment

Economic

 Bangladesh’s economy is one of the fastest-growing economies in the world. In 2019,

its average GDP growth rate was 8% as per World Economic Forum. This shows that
the country is performing well and is ahead of several other Asian countries.
 Due to the COVID-19 pandemic, the GDP of the country was forecasted to drop
down to 3.8 percent. However, as per the annual report of the Centre for Economics
and Business Research (Cebr), the GDP will rise by an average of 6.8 percent
between 2021 and 2025. Therefore, people will be able to afford more and will buy
more homes creating an opportunity for Offerpad.
 It has been predicted that the size of the economy of Bangladesh could be doubled by
2030.
 The economy of the country is bolstering mostly due to its RMG sector, the second-
largest globally with the export of over $35 billion a year from exports, and its strong
earnings from the remittances, which accounted for around $20 billion in 2020.
  There is a huge working age population in the country. Hence, they do the same work
but accept a lower wage.

Political/Legal

Before moving to a foreign country, the company needs to understand its political conditions.

 The political environment in Bangladesh is quite stable since the same political party
is in power for three consecutive times. Although fewer strikes and disputes among
oppositions take place nowadays they are not nonexistent. Various protests from the
groups such as Hefajot have been observed recently.
 New foreign companies regularly face several restrictions while setting up the
company as the legal requirements are extremely strict. Bangladesh ranked 176th out
of 190 countries in the Doing Business Report 2019. It scored poorly in terms of
registering property, enforcing contracts, getting electricity, and trading across
borders.
 A huge inefficiency in the bureaucratic system is often reported. The administrative
procedures are usually very slow with a lack of transparency. This delays the legal
procedures and creates a hassle for the companies. Being a highly corrupt country,
cases such as bribery, embezzlement, and other forms of corruption, enforcement is
very common.
 Agencies such as Bangladesh Investment Development Authority (BIDA) are created
by the government to improve the ease of doing business and also to welcome more
foreign investments.
 Bangladesh is a poor performer in terms of protecting intellectual property rights. It,
therefore, is difficult to come up with innovative ideas and progress. This explains its
low rank, 116 out of 126 countries in the Global Innovation Index 2018. The
trademark registration process here is very slow and often takes more than two years.
 Companies often faces shrewd individuals who extort money from them while
claiming political backing.
 Land related troubles are common. Fraudulent land sales often take place in the
country.
  The labour laws here are not that much strong and are often broken due to weak
regulation.

Competitive

 Firstly, buy/sell of homes through a website or an app is fairly a new concept in the
country. The only bproperty is operating with that method. Since bproperty entered
the market before Offerpad, it has the first mover advantage. However, with a
different model and better promotional strategies, this advantage can be tackled.
 Lastly, even after the advent of such a technological solution, the people of
Bangladesh still rely heavily on informal middlemen/agents who make helps in
buying and selling houses and earns a lucrative commission out of it.
 Barriers to entry are high as it requires substantial capital investments to get into this
business. However, it is very easy for other companies to copy the business model.

Level of technology

 The vision of the ruling government of the country was to make it digital by 2021. A
lot of procedures such as paying utility bills, passports, voter IDs, banking, shopping,
and admission, etc are done digitally.
 The number of internet users in the country rose rapidly. It almost doubles in the past
5 years. As per the insiders in 2020, 67 percent of the population is now using the
internet through mobile phones with an annual growth rate of 13.5 percent on average
over the last five years. The e-commerce sector surged up 30 times over the past five
years. Especially during the pandemic, people started to rely on online purchases
more than ever and this trend is likely to continue. This creates a scope for the online
buy & sell of the houses which Offerpad can exploit.

Cultural

 The Bangladeshi culture is the opposite of that of the USA. Marketers of Offerpad
need to be very careful and must take the differing cultural factors into account.
 Bangladeshis perceive real estate as a status symbol. Huge emotions are often
attached to the property or the apartment they own.
  Since it is a collectivistic society, people often live in a joint family and dreams of
building a home where they can live together as a whole family. It is very common
for individuals here to put their entire life savings in a single flat/building.
 The middle and affluent class (MAC) people are involved more in the buy and sell of
houses. Although the MAC people in Bangladesh is currently only 7% of the entire
population but it is growing at an average rate of 10.5 percent annually.
The middle class people here prioritizes housing even more than food, medical
treatment, and transportation. It has been predicted that this social class will represent
33% of the country’s population by 2030.
 Bangladesh ranked poorly, 71 globally, in the English proficiency index. Although it
is a highly sought language and widely learned but the people of the country still lack
competency.
 A major constraint is that, not many people will be comfortable buying or selling
their homes through a third party international website/mobile phone app. They
would find it more convenient to proceed through their own personal or mutual
connections.

Structure of distribution

 Usually, in Bangladesh, houses are traded after the buyer visiting the place several
times physically. These are often conducted by middlemen or other real estate
brokerage firms.

Geography and Infrastructure

 Bangladesh is a low-lying, riverine country in South Asia, with a mostly marshy

forest coastline on the Bay of Bengal's northern littoral and has an area of 144,000
square kilometers. Most of the regions are frequently flooded due to the Monsoon.
Approximately, 80% land of the country is a lowland known as the Bangladesh plain.
Hills rose in the far southeastern region in the Chittagong Hill Tracts and northeastern
region in the Sylhet Division.
 Out of all the regions, only Dhaka, Chittagong, and Khulna has most of the industries
and are therefore provider of employment. People with better economic statuses are
more likely to live in Dhaka and its surrounding areas.
  Bangladesh ranked 114th out of 140 countries for its infrastructure in the Global
Business Competitiveness Report 2019. Its ranking was 109 th in 2018 and it declined
in 2019. This shows that the country has really poor infrastructure.

Hofstede's Dimension

Individualistic/ Collectivistic Index

Individualistic society is where people focus more on individual aspects of life. In such cultures
like the US, people tend to focus on individual gains, look after themselves and only their direct
families, and are less bothered about growing and together as a community.

Bangladeshis on the other hand are highly family and community oriented people. Maintaining
strong family ties is essential here. Most of the families here are joint families. Even though there
is a rise in single families in the country but they still maintain close connections with relatives
and often visits one another which is not very often in the USA.

A single earner providing a large family is a very common practice in this country. It is because
they prioritize mutual wellbeing over personal desires.

Therefore, the concept of studio apartments is extremely new here as people here prefer places
where they can accommodate a lot of members. Apartments do come up with a lot of rooms for
that purpose.

Offerpad might face some difficulties as people, being collectivistic, tend to rely on their
personal connections, for making such important decisions like buying and selling their houses.

Power Distance

This index shows how power is distributed in a society. The USA has a low power distance and
therefore everyone has a voice. Therefore, anyone and everyone in the family can influence the
buying and selling decision of their apartment. Also in the offices, they mostly follow
decentralization and it is also common for seniors officials to respect and value the ideas and
opinions of their subordinates.

Power distance in Bangladesh is very high. The country scored 80 on this dimension. People
here follow rigid predominant hierarchical positions. People are often respected and followed
because of their age. It is seen as misbehavior if a young member of a family shares conflicting
opinions. Not only that, the ideas and decisions of the people at the lower end of the hierarchy
least valued and often mocked.

The organizational structures are highly centralized with few people deciding for the whole
organization. In a lot of companies, the people in top management are there because of their age
and long tenure rather than their merit and expertise.

Masculinity Vs Femininity

High masculine culture will prioritize success, goals, competition, and achievements over
emotions, care for others, and living a quality life. Feminine cultures encourage people to be
likable by helping each other where masculine culture romanticizes the winner.

Both the USA and Bangladesh have more of a masculine culture with the first having a score of
62 and then later with a score of 55. The leaders in Bangladesh are, therefore, expected to be
more assertive and competitive.

Uncertainty Avoidance

The future is always predictable and surely anything can happen. People tend to suffer from
anxiety due to these unfortunate and unprecedented happenings. The degree to which members
of a society are confronted by unclear or unfamiliar circumstances and have established values
and institutions to prevent them is expressed in the Uncertainty Avoidance ranking.

Bangladesh has a high score (60) in this index. This means that people here tend to follow a
single path followed by strict rules. They always try not to do something out of the box as this be
detrimental to their security. These people often lack the motive to different things and come up
with innovations. They tend to hold on to some predefined values and beliefs just to avoid the
risk of uncertainty.

Stages of International Marketing Involvement

Whenever a company chooses to expand and enter an international market, it must determine
how much marketing involvement and dedication it is willing to make. This is determined using
the following stages:

1) No Direct Foreign Marketing

2) Infrequent Foreign Marketing
3) Regular Foreign Marketing
4) International Marketing
5) Global Marketing

Mixture of both International Marketing (Multidomestic) and Global Marketing

Offerpad will follow the hybrid approach, which is a combination of both international and
global marketing.

The company will provide the same service in Bangladesh, buying and selling of homes, as it
does in the USA. Not only this, their app and website will have the same interface as well. As a
result, they should do global marketing, which focuses more on standardization.

Being a service-based company, Offerpad needs to adopt a customized approach for the
international market (Bangladesh). The offer will send some of their marketing personnel to
Bangladesh and they will also hire several local marketing employees from the country as they
have a better understanding of the market. Advertisements will be customized and targeted
towards the local people and there will be a separate country-specific social media presence.
Since all the marketing strategies and efforts will be directed towards the foreign country, there
should be in-depth analysis of the culture and environment of the country. Decision taking must
also be decentralized so that the marketing personnel of the country can have the freedom to
make sound decisions as per the market demands and preferences.

Modes of Entry
Four different modes of entry are implemented by companies whenever they are entering into a
new foreign market. They are as follows:

1) Exporting
2) Contractual Agreements
3) Strategic Alliances
4) Ownership

Figure 1: Modes of Entry

Ownership

Direct foreign investment will be the preferred mode of entry for Offerpad. Since it is a
technological company with a new concept, it is better to enter a market directly by itself.
Through this the firm can exercise maximum control and can stand out in the market with its
own technical and core competencies.

Although Offerpad is not the first mover in this industry but still the concept of buying and
selling homes through a website or an app is still a fairly new concept in the country. A proper
expertise is required to run the company. Therefore, merging with any other local companies
through any alternative market-entry strategies will not be a smart decision.
The company can also create direct connection with their market. They will be having control
over the advertisements and can easily create a good brand reputation.

Marketing Strategy
Marketing Mix (7P’s)

Product/ Service

The service is provided through

both the website and the mobile
application. Both these mediums
has the same simple design.

Sellers can easilty request an offer

and receive a competitive cash offer
within 24 hours.

The tab “How It Works” is

represented to make the sellers
learn about the procedures. Also
they maintained transparency by
clearly mentioning their pricing
category and benefits in their
website.

Although their main function

is to buy and sell houses they
also provide several
additional services such as:

i) Free Local Move –

Helps the sellers in
shifting to the new
home.
ii) Extended Stay – The sellers are allowed to stay for an extended period ranging from
3 to 60 days.
iii) Free Show-Ready Home Services- Makes your home representable to the market.
iv) Home Improvement Advancement- Allocate funds in advance and renovate the place.
v) Dedicated Experts and Support- A personal team of expert will be there to assist
during the whole procedure.

Price

The company charges a service fee, typically 7% and can vary ranging from 6%-10%
depending on the property, to its sellers. Like other real estate agents it also charges a closing
costs of around 1-3%. Other than that, no commissions is charged on cash offers.

Place

Offerpad will be offering its services in Bangladesh the same way it did in USA, through its
website and mobile phone application. The mobile app will be available in both Appstore and
Playstore.

People

Initially, there will be a team of experts from the home country who will work closely with
the employees of the host country. These experts will then guide the host country employees
and educate them about the culture of Offerpad.

Backend will consist of highly productive, efficient, and skillful employees. Frontline will be
occupied with customer oriented personells who can deal with customers well and solve their
problems while communicating in an effective way as they are the representatives of the
company.

Process

The interface of both the app and the website provides a simple process for its users. All the
informations are readily available inside it which makes it very userfriendly. The service is
delivered to the sellers by the team of experts visiting them. While buyers are also dealt with
wisely to help them get the best deal as per their preferred home type and location.

Physical Evidence
An amazing physical evidence is their logo. Firstly the colour itself signifies that its an
energetic brand. The letters are arranged in such a way to add a sense of humanness to the
brand. Fonts are simple and modern with having tight kerning which represents punctuality.
An unconnected letter represents individuality as they respect and values individual stories
and different personalities. The fonts do have smooth lines signifying trust, stability, honesty
and comfort. Lastly as the home buying and selling can be a daunting task, Offerpad used
rounded corners in their logo which conveys a peopce of mind during the procedure.

Both their mobile app and website has the design with the same theme.

Promotion

It’s a foreign brand bringing a concept which is fairly new in the country. Therefore, the first
task would be to make people aware of it and educate them. So the marketing campaigns
must be done heavily through OVC, TVC, posters infront of buildings, banners, and
newspaper ads.

A strong social media presence will be there to engage more with the customers. The ads
must be redesigned and customized on the basis of local values. All the ads are representing
small families but since Bangladesh is a collectivistic country, new ads showing family
bondings is required.
 They should also market their service through the real estate fair of the country (REHAB
fair). They will also be promoting by wrapping their ads around ride sharing vehicles.
Corporate event sponsorships will also be done to grab the attention of the potential buyers.

Lastly, word of mouth promotion is the best way to promote real estate services. Therefore, a
team of dedicated employees will be there to provide with excellent service and educate the
customers about the technical know how. Their job will be to make it very easy for anyone to
use.

Conclusion
Even though the sector is a competitive one, there is still a scope of huge opportunity. Offerpad
would be the among first companies in the country to come up with this unique concept.
Compared to the rest of the competitors, Offerpad’s method is different.

Just the team must remember that Bangladesh mostly the opposite of the USA. People here being
unaware of such apps do face severe troubles and inefficiencies created by the middlemen. This
scenario is going to decrease if the app is more widely in the country.

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