Shodh's client wanted to enter the economy housing sector in Bengaluru. Shodh identified several key management decision problems to address: 1) assessing the potential and risks of the growing economy housing segment with new competitors; 2) identifying the right target market segment of middle-class consumers; and 3) finding an appropriate location that provided amenities and infrastructure at a reasonable land cost near the city. Shodh also saw a need to understand consumer expectations and demands to help define product offerings.
Shodh's client wanted to enter the economy housing sector in Bengaluru. Shodh identified several key management decision problems to address: 1) assessing the potential and risks of the growing economy housing segment with new competitors; 2) identifying the right target market segment of middle-class consumers; and 3) finding an appropriate location that provided amenities and infrastructure at a reasonable land cost near the city. Shodh also saw a need to understand consumer expectations and demands to help define product offerings.
Shodh's client wanted to enter the economy housing sector in Bengaluru. Shodh identified several key management decision problems to address: 1) assessing the potential and risks of the growing economy housing segment with new competitors; 2) identifying the right target market segment of middle-class consumers; and 3) finding an appropriate location that provided amenities and infrastructure at a reasonable land cost near the city. Shodh also saw a need to understand consumer expectations and demands to help define product offerings.
Shodh's client wanted to enter the economy housing sector in Bengaluru. Shodh identified several key management decision problems to address: 1) assessing the potential and risks of the growing economy housing segment with new competitors; 2) identifying the right target market segment of middle-class consumers; and 3) finding an appropriate location that provided amenities and infrastructure at a reasonable land cost near the city. Shodh also saw a need to understand consumer expectations and demands to help define product offerings.
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Question 1:
Shodh understood that its client wanted to enter the economy
housing sector and due to lack of access to area of pilot project the research project in Bengaluru was given to them. The first step Shodh did was to figure out the management decision problems: 1. Potential of the Segment- As the market of economy housing was still growing and many competitors were entering in the segment, there was no previous data to collect the inference as how the segment will perform also with the increasing opportunity – the risk was equally high. 2. Identifying Target Market- One of the main concerns was to identify the right segment of people to target. The focus was to attract the middle-class segment (i.e., people classified under B1, B2 and C in SEC segment). 3. Location Area- Finding a good location in Bengaluru which would be preferred by customers was also an important decision to be made. A site from where all the basic amenities was easily available, land wasn’t expensive, developed infrastructure, not far from the main city were few points while searching for a location. 4. Lack of clarity in Consumer Expectations- An important factor was to understand the actual demand and preferences of consumers and how much they would be ready to spend to develop product profile. Shodh decided to study geographic, demographic, psychographic segments of potential target market.