POLIS: Continuity of a Sustainable Community

MARK 363-20W Connor Caragol, Claire Hoodmaker
Company: POLIS Elizabeth Navarro, Iris Wen
Product: Housing Development
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Introduction: Executive Summary
POLIS seeks to penetrate the burgeoning economy of India. Arguably the world's next superpower, India
has displayed significant economic growth leading to a rise of a massive and active middle class.
Considering India’s impressive rise, the need for sustainable urban housing is obvious and vital. As an
affordable housing developer POLIS sells newly constructed properties to property management
companies for a profit. The mission of POLIS involves implementing a sense of community, fostering
sustainability and providing housing for low and middle caste families in Mumbai, India.
The most populous city in India and fourth largest city in the world, Mumbai is a mass of sprawling slums
and illegal housing. Urbanization not only applies to the extreme poor and those of lower castes, but also
the working-class citizen, where the consumer forgoes basic household necessities to be in reasonable
proximity to the urban center. POLIS values being a responsible corporate citizen, displaying integrity
and transparency in every phase of business.
POLIS brings prepackaged materials to maturing urban metropolises, employing local citizens to
assemble the structures, and attempt to rally emerging classes for increased participation in the local
economy. Using prefabricated methods and sustainable micro-housing technology, we will use
‘stackable’ structures to house individual units. These will be mass-produced and assembled, while
boasting amenities that are considered necessities to our target consumer.
POLIS will partner with private developers, NGOs, and government agencies to sell these properties to
private management companies. POLIS will be responsible for the development and construction of the
property as well as ensuring that the structure be utilized for its intended purpose. In its initial years,
POLIS will acquire capital investments to fund the construction of the lattice-like structure and additional
unit materials. By hiring locally and purchasing land within the city center, the initial investment will be
significant. Within the first five years, POLIS hopes to have increased market share with a return on
investment and continued construction of properties throughout Mumbai.

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Vision & Mission Statement:
POLIS seeks to provide a clean, safe, and affordable housing option for the growing lower and middle
classes of Mumbai, India. We aim to provide quality construction projects that anticipate and satisfy the
people of Mumbai’s desires and needs. Our target consumer prioritizes location, values security, safety,
and necessary facilities. Using prefabricated methods and sustainable micro-housing technology, we will
use ‘stackable’ structures that can be mass produced and assembled, while boasting amenities that are
considered necessities to our target consumer. To continue to thrive over the next ten years and beyond,
we must understand the trends and forces that will shape our business and prepare for what's to come.
Through innovative partnerships and community-led design sessions, we will work to change the way
homes are designed and built. Well-designed homes should be affordable and available for everyone.
Values:
● Make Unaffordable, Affordable
● Quality Homes that Enhance the community
● Simple, Timely Construction
● Foster Microeconomic Growth
Goals:
1. Provide affordable housing options for the lower and middle classes of Mumbai citizens
decreasing the growth rate of slums
2. Increase market share and profit
3. Localize production and employment to generate economic growth
4. Increase the number of partner NGO’s to fund the expansion of the charitable segment in new
regions.

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TOWS Analysis:
Market Research
Industry Description:
With increasing concentration of economic and commercial activities, rapid economic growth and
influx of population in Indian cities, the pressure for affordable housing is mounting, resulting in the
growth of slums. There is a huge market demand by the marginalized communities for low cost, livable
housing facilities. Analysts say India’s cities need about 18m-22m new housing units to meet the need for
decent, legal shelter. For large cities such as Mumbai, the chronic issue of slums requires urgent attention
along with long-term planning for an affordable housing supply. Public ownership of land and its
inefficient management has contributed to this problem by creating an artificial shortage of land supply
and pushing up property prices. Providing affordable housing has thus become a formidable challenge
confronting potential housing developers and government agencies. While the Indian government is
building affordable homes for low-income workers, much of what is constructed ends up being used by
middle class families or risky investors. With the high end of India’s housing market declining after years
of intense construction, private property developers are willing to build for the bottom of India’s urban
housing market. Government is also showing its interest in this sector by providing cheap land for the
developers constructing low cost housing. This investment provides better access to facilities, higher
standard of living, and better environmental aesthetics. About 70,000 low-income homes have been
provided by the private sector in the last five years. With the aim to realize the vision of slum free India,
the Ministry of Housing and Urban Poverty Alleviation recently announced a plan, which could open
access to valuable government land across the country and generate business for real estate developers.
Competitive Analysis:
As the emerging market for affordable housing grows, there is increased competition between
various development companies. According to Monitor Inclusive Markets, a specialized consultancy that

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looks at market-based solutions to social problems, about 130 low-income housing projects, with a total
of 30,000 units, were started in 22 Indian cities between June 2011 and January 2013.
Target Customer:
The population of Greater Mumbai has increased more than twelve times in the last century. After
independence, with the influx of refugees, both the eastern and western suburbs started growing rapidly.
The target customer for POLIS residential buildings include low-income and middle-income groups. The
majority of slum dwellers identify themselves with the city rather than with their native place of residence
and have plans to settle permanently in the city. In spite of poor conditions in slums, most residents feel
that life in slum is tolerable and city life is certainly better than rural life. Families living in slums
commonly face unhygienic sanitation facilities, unaffordability of anything but a slum and lack of
necessary amenities like electricity, water etc. They also value safety and security from natural resources.
Research findings also indicate that ‘good’ connectivity to frequently traveled places primarily to
workplaces is the most important factor for buyers.
Market Differentiation
As the affordable housing movement begins to garner more attention, it is crucial for POLIS to
differentiate itself from the beginning in order to become the top affordable housing developer in the
country. While not many, competitors of POLIS exist in the affordable housing market in Mumbai. In
order to surpass the competition in the market, POLIS must develop comfortable housing options that are
built quickly and efficiently, and that fit the budget of our target consumer. To make this possible we
crafted our strategic plan with our unique selling proposition in mind: continuity of sustainable
community.
This short sentence represents all that POLIS stands for and our promise to customers. With a
housing shortage of 18.78 million units in Mumbai alone, the extremely high cost of land, and the
continually rising housing prices new options must be made available and fast, as over 50% of the city’s
population is forced to live in dilapidated slums. While the competition has begun to create solutions to
this problem, none offer a value added that can match that of POLIS.
While we are a new company, our knowledge and understanding of the market will be beneficial
for our customers and ourselves. The majority of the competition in the affordable housing market in
Mumbai is real estate developers that got their start in luxury, urban housing complexes and are now
expanding into this emerging market. POLIS possesses the focus on sustainable, affordable housing for
world-class cities that will help us to continue to evolve our system until our impact on the global housing
crisis is felt. By working to tackle one segment of the housing market in Mumbai, much more can be
achieved and we can garner a reputation as a world leader in affordable housing development.
In order to be successful in the affordable housing market, a developer must act and work
quickly. Time is of the essence for the target customer, as the longer the building time, the more
expensive the project will become. Traditional developers and many competitors in the affordable
housing market are not concerned with delays, as that boosts the price of their units. POLIS utilizes a
construction system and supplies that can have a building built and live-in ready in a month. This will
keep costs down and get customers into their units quicker.

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POLIS understands that while the customer is looking for affordable housing, they are also
looking for livable housing, especially if they are coming out of the slums. Not only is POLIS focused on
building a sustainable building that will help the housing crisis in Mumbai, but we also are creating a
community that will grow and withstand the tests of society. POLIS is committed to adding amenities to
its buildings, because even those on the lower income bracket deserve a much higher standard of living
than what they have in the slums. POLIS plans to have safe areas for children to play and parking
available in its buildings, both which are a premium in the city center of Mumbai.
POLIS is not only working to reduce the number of housing units in need, but we are also looking
to create options for our customer. We are committed to continue to plan, develop, and build with our
customer at the center of our mission. While we work to lower the shortage of housing, we are also
looking to continue to create a better life for our consumers and that stems from creating a community
that can remain relevant in our ever-changing times. Together with Polis, you can see and experience the
continuity of sustainable community.
Marketing Message
Though Mumbai faces such a high shortage of affordable housing units, POLIS is not a company
who is just selling homes. Instead, POLIS is committed to selling a lifestyle and that leap that everyone is
looking to take to get out of the slums. While this is very aspirational, our marketing message must show
that it is attainable and now affordable. The campaigns we push out must attract mid-to-low income
homebuyers and paint the picture of the community they can have in a POLIS building.
When purchasing a unit in a POLIS building, customers are guaranteed a home that is affordable,
safe, and livable. They are also promised a high level of care and maintenance for the building and the
units. Customers will also enjoy the amenities of security, fresh water, recreational space, parking, and
more. All of these items are considered luxuries compared to how Mumbaikars are living in the slums. In
our campaigns, it will be crucial for POLIS to portray these, as well as the opportunities, and lifestyle that
can come from owning a POLIS home.
POLIS has chosen to work in the affordable housing industry because we want to work for the
people. We have visions of Mumbai becoming the next large, international metropolis, but in order to get
there the people of the city need a place to live. Typically affordable housing lacks safety and amenities
because of the added cost. Through our marketing, customers will see that is not the case with POLIS. We
offer an ever-evolving lifestyle that allows customers to continue to take control and make their lives
better. They will quickly be able to get out of the slums and into a new home that changes their way of
life. By selling this lifestyle and the opportunities buyers will be confident in their new homes and
confident in the future of their city.
Market Analysis
Introduction/History
Mumbai is built on what was once an archipelago of 7 islands on the west coast of India. The
British government took possession of the islands in 1665, but later leased them to the East India
Company. For more than two centuries, it was used as a British port city. When Mumbai took over as the
principal supplier of cotton to Britain, the population soared and trade boomed as money flooded into the

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city. The manufacturing sector became more diversified with the expansion into the chemical, metal and
engineering industry. After its independence in 1947, the growth of the port, offshore oil, financial
services and the development of national and international trade fostered the growth of the city. Today,
Mumbai is one of the most populous urban areas in the world with a population of over 20.5 million.
Geography
Mumbai is the city that is home to Bollywood and Asia’s largest slum. It is located on the west
coast of India and it sits on a natural harbor. It rests along the Arabian Sea and most of the city is just
above sea level. The city that was once seven islands that then merged into one in the 18th century, is
located on Salsette Island. Mumbai has a monsoon climate. This greatly affects the city, especially in the
three hill ranges that can be found within the city limits, which house many of the city’s slums. The city’s
slums struggle greatly during monsoon season, in which landslides are very common. Within the city
there is a national park, which holds one of the three lakes that can be found in Mumbai.
Economy
The largest and wealthiest city in India, Mumbai, is a leading commercial and financial center of
the country. Though, not always very diversified, Mumbai has moved on from its days of being run by the
textile industry and now is dominated by a wider range of manufacturing and financial services. It leads
India, accounting for just over 6% of the country’s economy and sits at a global top 10 center of
commerce with regards to monetary flow. Real estate is a booming market in Mumbai. It contributes to
the GDP at 6.3% and is the largest generator of GDP. The city is home to the headquarters of over 22 of
the country’s largest corporations- especially financial institutions and banks.
Legal/Political Environment
Similar to many developing nations, India faces extreme corruption especially pertaining to the
housing industry and common utilities. Local government and competing real estate developers have been
known to acquire land and labor through highly illegal methods. The Eminent Domain clause is used
commonly by local government officials to acquire wide swaths of land usually occupied by the lower
classes and using it for public use (Joshi, 2). Other social benefit programs are abused to transfer land
acquired by the government to private equities and slated for redevelopment. These ‘land mafias’ have
great influence in the real estate sector in major cities across India and could present an obstacle for our
firm in acquiring specific parcels for our proposed projects.
Culture
Mumbai is arguably the epicenter for urban Indian culture. Other major Indian metropolises such
as Delhi, Bangalore, Hyderabad, and Chennai, contain a majority presence of Hindus accounting for on
average 80% of the populace or higher. Whereas in Mumbai the Hindu population only accounts for
around 60%, where other ethnic and religious groups account for higher percentages of the total
population.
This diversity contributes well to Mumbai’s cosmopolitan flair. The Alpha City is renowned for
its global presence as a center for economic and cultural exchange. Mumbai is a unique blend of a mature
city stepped in tradition with modern influences of a globalizing world. This amalgam has produced a
wide variety of cuisines, subcultures, artistic expressions, and religions to list a few. For example,
Mumbai is the birthplace of modern Indian cinema. The esteemed Bollywood, has now become the
largest center for film production in the world. Conversely, there is a major push from the artistic and
higher social classes of Mumbai for a return to classic Indian theater. Over the last decade, a thriving

Fall 2013
theater group has been established, which produces shows in a variety of languages. Art, whether public
or private, is a growing sector of expression in Mumbai as well. Typically, India is not known for its
modern artists, but rather Hindu artistry from the antiquities. The government is actually funding artists to
develop local works that portray the cultural zest of the city
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Along with film Mumbai, maintains a large influence over the Indian music industry. Indi-pop
and Bollywood hits can be heard reverberating throughout street side cafes and along major thoroughfares
throughout the city. The local government has also encouraged the growth of western classical music
back into the city. The Chamber Orchestra and Mumbai Symphony have been performing for sold out
audiences. These performances combine the traditional classical style with popular Indian instruments
like the Sitar. Additionally, like in any global city there is a massive English music fan base, which is
another effect of India’s rapid emergence into the global economy.
Since, Mumbai has been a crossroads for merchants for centuries it is fortunate to have a wide
breadth of cuisines to offer its inhabitants. Food ranges from roadside fast food treats aimed at consumers
fighting Mumbai’s hectic traffic, or large dinners to feed an entire patriarchal family. Mumbai contains
some of India’s oldest restaurants, dating back to the British’s colonization. Due to Mumbai’s diversity
and migrant population, meals at aimed at those living alone are a quickly growing trend and delivery
services are at an all-time high. Due to its position along the Spice Route and its cultural ties to England,
tea is the most common beverage in Mumbai and usually precedes and ends most meals.
Mumbai is rich in prestigious Indian universities and quite often play host to international
students seeking the prestige of classical Indian education. There are several academies across the city
solely dedicated to literature, while other universities play to more modern aspects of the city’s growth
like the Indian Institute of Technology. Lastly, festivals help keep the city alive and fresh. Across
different neighborhoods festivals are held nearly once a week celebrating different religious holidays or
even familial traditions. Festivals are one major way the city attempts to build and foster community.
Technology
Like the rest of Mumbai’s culture, the use of technology has grown and become more
resourceful in the culture. India has the second largest phone users in the world: there has been
extensive progress in transforming telecommunications to more modern elements like digital
exchange, mobile switching centers, and media wave radio networks. Over 44 million people use
smart phones in India; and 137 million internet users. Online there are over 18 million social
network users in India, 60% of social networking traffic comes from city centers: Mumbai
generating the highest traffic. The top social media sites in India include Orkut, Facebook,
LinkedIn, Lbibo, and Twitter. There is rapid growth in users 18-24. With 26% growth in
technology users yearly, the use of social media is expected to grow. Modern technology has a
large impact on the distribution of information and is continuing to shape the ideals and cultural
value in Indians. Technology is very accessible in Mumbai and they quickly adapt to the
changes.

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Infrastructure
The average Mumbai citizen spends nearly four hours daily commuting to and from work. The
highways are often times littered with human sized potholes, while trains are dangerously packed
with people. Massive undertakings by the government are targeted at improving the efficiency of
rail and rapid transit systems. The city is currently modernizing its expressway system with
several large projects that will reduce commuting times by up to an hour. The Bandra-Worli Sea
Link, recently opened in 2010 and boasts eight lanes for traffic and spans over 3 ½ miles. This
bridge connects two of the city’s key business centers and reduces travelling time by 60 minutes.
Several attempts are being made at creating functional east to west links to connect the ever
expanding suburbs. Along with roads the Mumbai Suburban Railway is the backbone of the
metropolis. It carriers on average 6 million people per day and is arguably the least reliable urban
metro system in the world. A monorail and subway are under construction close to the center to
alleviate the congestion on the railways. However the MSR continues to expand outward to
reach newly formed exurbs. The Mumbai International Airport hit capacity over six years ago.
The airport is unfortunately surrounded by a densifying urban environment and has little room to
expand. Thus, the government is proposing to construct a new airfield in the far suburbs to
alleviate some stress off of daily traffic movements. The Mumbai port is busiest in the nation and
handles up to 60% percent of cargo imports and exports. In contrast to Mumbai’s ailing
infrastructure it is extremely successful in its function.
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Financial Objectives
Projected Sales
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1 2 3 4 5 Year 6 7 8 9 10

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Units Profit from Sales (USD)
Year 1 150 5,250,000
Year 2 200 7,000,000
Year 3 250 8,750,000
Year 4 300 10,500,000
Year 5 300 10,500,000
Year 10 500 17,500,000
*Sales based off 700 sq-ft 1 bed-room family homes
Selling price at 35,000 USD (Rs2,140,332)
Market Share
Total Revenue/Total Market Revenue
Year 1 5%
Year 2 10%
Year 3 15%
Year 4 20%
Year 5 25%
Year 10 35%
The demand in the housing market for affordable homes in Mumbai shows quick growth in companies
like ours. Because there is not enough residential development for the economic class we hope to draw,
we believe that our attainable high revenue will grow quickly as POLIS plans to expand into other
metropolises.
Costs (USD)
Year 1
Land 200,000
Operating Expense 10,000
Product Components 245,000
Marketing Expense 120,000
Salaries 210,000
Miscellaneous 10,000
Total Expense $795,000
In the first year of POLIS, the company will have a starting cost of $100,000. In addition to that, we are
looking for private investors to generate an additional $1,000,000 to invest in land ownership in Mumbai.
The cost of land in Mumbai is the greatest investment for this in order for POLIS to begin moving scaled
showrooms into an apartment foundation ready for residents to move in and to add apartments to the
foundation. For the first four years there will be a heavy emphasis on marketing in order for us to expand
in the long run and have strong market share as well as brand recognition. At this point, POLIS will hire

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only essential employees to run the company. The company’s first steps will be to have a strong
foundation for growth and focus on land to launch and launch to deliver for efficient results. (View
Personnel Plan for more on the labor force.) Miscellaneous expenses include residential permits,
licensing, building permits, legal fees, insurance, etc. It is crucial for the company to be transparent and
follow necessary steps to create housing in Mumbai. After the first five years, POLIS plans to expand to
Bangalore, increase wages, expand market segments, and increase land purchase. After the fifth year,
POLIS’s goals will also include a pursuit to extend the welfare of homes through non-profit organizations
and non-government organizations.
Projections
The current market shows that estimated earnings before interest, taxes, depreciation, and amortization
(EBITDA) in residential development in Mumbai is 19.2% and is expected to increase. Estimated internal
rate of return (IRR) is 20 to 30%. Since 2007 these have been growing, including gross margin which is
currently at 24%. We aim to produce 200 to 300 units each year for the first five years, with the exception
of the first year where our goals is 150 units. Through the strong real estate innovations, sustainability,
reliability, and convenience, we predict a profit of four times the development spending by year five.
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Total Profit (USD)
Year 1 1,575,000
Year 2 2,100,000
Year 3 2,656,000
Year 4 3,150,000
Year 5 3,150,000
Year 10 5,250,000
Competitive Analysis:
Strengths Weaknesses
POLIS
 Innovative design
 Timely construction process
 Sustainable materials
 Single-segment operation
 Newly emerging company
 Lack of partnerships
 Financial capital
Foliage Group
 Admedabad real-estate market
 Several segment operations
 Sustainable
 Navjivan (Low Income Sector
 CSR
 Lengthy construction process
 Newly emerging company (2006)

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Vastushodh
 Active in real-estate 10+ years
 Three segment operation
 Anandgram (Low Income Sector)
 Established concept
 Located outside city
DBS Communities
 Partnerships with housing
facilitation center
 Single-segment operation
 CSR
 Newly emerging company (2009)
 No focus on sustainability
Objectives:
Market share: Total Revenue/Total Market Revenue
Year 1 Break Even, 10-15%
Year 5 23% Market Share
Year 10 Hold 35% of Market in Mumbai, with expansion to Bangalore
Competitor Mahindra Lifespaces currently holds 23% of residential development
Costs:
Year 1: Initial Costs, $100,000: Set up showroom in Mumbai, hire local people to demonstrate what our
company has to offer, purchasing land to begin building , marketing costs, land near city centre. Achieve
$500,000 in investment
Year 5: Expand to another urban center in India (Bangalore) increase wages, expand marketing, increase
land purchase
Year 10: decrease marketing, decrease wages, focus non-profit aspect
Projections (Profits within the first 5-10 years)
4-8 lakh depending on the size of the home
Estimated EBITDA in market= 19.2%
Estimated IRR= 20-30%
Gross Margin= 24%
Producing 200-300 units each year for the first 5 years (first year expectations= 100-200 houses)
4 times construction spending within first 5 years, reasonable because booming market, as long as we
focus on land to launch and launch to delivery
Profit Year 1, 20% initial investment,
Profit Year 5, 60%
Profit Year 10,
Market Entry Strategy:
The unfamiliarity of the brand presents a large obstacle to appropriately penetrate the market. To
maneuver around this hindrance the company will partner with local NGO’s and India based businesses
that value sustainability. With these alliances it is our intention that our partners will enable us to acquire

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the necessary resources to begin operations. Acknowledging that conducting businesses in Mumbai is an
entirely new venture for management, it is essential to partner with key figures in and out of our industry.
These connections will be the inroads for market penetration.
Before actual operations begin, the company plans to build a small scale structure to demonstrate
the unique features and process our company offers. This will essentially become the company’s
showroom for both market segments. This feature will enable the firm to attract local attention. Free
guided tours and interactive features will provide customers with a unique buying experience. With the
showroom in place local media will be able to provide coverage on the new unique service we intend to
offer. The company has committed to only advertising with solely speaking Hindi media to legitimize
itself as a India centered operation at first. Depending on our success and expansion, we will revise this
strategy. The showroom will spark interest, but we also intend to place advertisements in print especially
on public transportation on local newspapers. Digital ads will also be implemented and targeted at internet
users that are looking for housing in Mumbai. Our local alliances will assist us in receiving televised
media coverage of our showroom, but we do not intend to advertise through television past this.
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Our strategy is very niche focused, but will evolve into a broad differentiation strategy as our
company develops and moves trans border. In penetrating new markets we hope to implement the generic
strategy outlined above, but adjusting to the market condition as necessary. Throughout time we hope the
success of our product leaves a lasting impact on our customers. In theory our advertising expenses
should decrease exponentially over time as we begin to rely on the testimonials of our consumers as our
strongest marketing tool. In attempting to make any brand successful in any new region, expenditures will
usually mount to record highs. In our entry strategy, this constant will be no different. The company must
increase brand awareness and the necessary capital will be used to do so. After the first 10 years of
operation in Mumbai, advertising expenses should be over half of what they were in year 1. We believe
our product is an easy sell for our target consumers regardless, so we expect after brand image and
awareness is increased the units should essentially sell themselves.
Marketing Mix:
Product
The ‘stackable’ homes will be placed within a lattice-like structure, allowing for modules to be
placed on top of and beside one another. The structure will include a lift for homes to be transported from
the ground floor to upper levels. The tower has a minimal projection area on the ground, making it ideal
for dense urban area. Each home unit is made of prefabricated materials that will be mass-produced and
transported to the desired building location. The homes walls will be build using standard oriented strand
board plates and thermal insulation bound by a steel frame. The unit will include windows in tempered
glass and a green roof and outer walls. Units can be easily transported and built within hours, giving
homeowners the opportunity to move to different locations with ease.
Promotion
While remaining committed to our promise to carry on the development of a strong community, it
is crucial for POLIS to utilize an effective marketing plan in order to reach the target consumer. While the
target consumer sits in the mid-to-low income bracket, they are still savvy individuals looking for housing
in India’s financial capital; our campaigns and plans must match that. Instead of just selling housing units,

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POLIS is selling a lifestyle and an escape from the slums at a price that consumers can actually afford.
While that sounds idealistic, customers will be attracted the opportunities that can come when purchasing
a unit in a POLIS property.
POLIS’s marketing must remain cohesive and suit the target market. While the customer we are
looking to attract is intelligent and worldly, it is not likely that you will find them reading a newspaper or
publication in English. For this reason, our print campaigns will be published in local newspapers, which
are more likely to be read and reach the mid-to-low income home buyers we are looking to reach. These
campaigns will be written in Hindi and will promote the fast development, useful amenities, and
affordable price tag that really matter to our customers. They will push the lifestyle that far surpasses that
of the slums and inspire potential buyers.
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We will also continue our print campaign onto the Mumbai’s metro system. On a regular basis
you will find more than 88% of commuters utilizing Mumbai’s public transportation system. Since
advertisements on the metro will have such a large audience, it will be easy to garner a great amount of
attention. Here we will continue to sell the lifestyle and show it is possible to have it all at a low cost.
POLIS also plans to tap into experiential marketing with a model unit at our offices in Mumbai.
Here potential customers can and encouraged to come and walk through what their future home could
look and feel like. While creating the actual experience for consumers, they will be able to envision
themselves living in one of our units and see the dream through their own eyes. While we focus so much
on selling the lifestyle, not much will be better than letting the buyers feel it for themselves.
Distribution
In India consumers typically go through housing authorities to search and rent property. Knowing
this, POLIS has elected to not sell or rent to consumers directly, but rather use property management
firms as a vehicle to distribute the product. The firm will receive all raw materials for production in house
and assemble on site. As outlined in production, the pod structures will be hauled on flatbeds and
assembled in an expeditious manner. After assembly is completed, the firm will then hand over ownership
to the new property managers. It is up to the property management company exactly how to advertise or
sway the consumer to try the product further. POLIS has it’s own marketing strategy that makes it viable
for the property management firm to acquire one of our buildings as we have done much of the marketing
for them. However, when closing sales with consumers it will vary based on the management’s
operations.
In the charitable segment of our operation, potential consumers will be chosen on a needs basis,
predetermined by partner NGO’s and the India Housing Authority. In this segment we will be
relinquishing control of our buildings to our local partners that will then operate it. In this segment no
actual monetary exchange will happen between the firm and managing NGO. All proceeds and charity
will be used to acquire materials, production, assembly, and labor.
After the firm is more established, it may become feasible to market and sell our product online.
Consumers that wish to purchase a building and become the active manager would be able to do so
through a request basis. In a sense the firm would franchise its product into cities that we don’t
necessarily want to maintain a large operation in. This would be for more suburban consumers or those
living in second and third tier cities in India.
Price

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Currently affordable housing in Mumbai means paying Rs25-50 lakh ($400,000-$800,000) for
small one bedroom flat which is only 2% of the market. At minimum, a 1000 square foot, two bedroom
home would cost $30,000 for POLIS to develop. We would like to charge . The median monthly
disposable income after tax in Mumbai is Rs30,000 ($490 USD). By partnering with local bank like
CitizenCredit Co-operative bank, residents can also gain credit and pay off the price of their home in 10
to 15 years. We want our product to be affordable to the generation of 20-30 year olds looking to live in a
modern city at an attainable price to their budget.
lakh= 100,000rupees
Measurement:
We will measure effectiveness of the marketing mix strategies (product, promotion, distribution, and
price) through satisfaction of the product, brand recognition, efficiency in effectiveness of marketing
strategies through market research
Personnel Plan
The firm will elect to employ a diverse labor strategy to support all functions of operations.
Firstly, before actual operations begin an administrative office must be set up in Mumbai. This locale will
be company headquarters for the foreseeable future as we expand into different markets. At the
company’s headquarters we will attempt to employ international and local talent to help support the basic
strategic business decisions. Specifically, we wish to employ mostly local talent to support market
research, advertising, and public relations. We wish to begin hiring for administrative functions well
before our design actually goes to production. With our local talent we hope to raise brand awareness and
begin penetrating this sensitive market. For example, they will assist us to determining what local NGO’s,
property management firms, and local suppliers we will associate with while working in India.
We hope that after 6 months of setting up our head office and the purchase of our production
facility complete, we will begin employing our labor intensive workforce. On the production level we will
look for skilled workers that are ambitious and have a commitment to quality. We want our
manufacturing workforce to be inspired by our vision and be motivated by compensation packages for
ontime high quality production. We hope to pay these workers well above industry levels for similar types
of labor. These employees will ensure that our core competencies come to fruition.
The firm has decided against being the property managers of the buildings we will construct. We
have elected to use local property management firms to buy our properties and manage them in their own
style. The management firm will be a complete separate entity than our business and have no effect on
operations as a whole. However, in order to limit corruption and mismanagement, we will implement a
clause in our sales contract that prohibits price gouging. Thus, the management firms must align their own
management of the properties with the firm’s vision, thus offering an affordable option for consumers to
rent or purchase. To also ensure that the property management firm is in compliance with our contract we
will employ our own area manager to oversee a portfolio of properties to ensure their upkeep and the
satisfaction of consumers.

Fall 2013
15
Lastly, in constructing our buildings we desire to use only local labor. Instead of employing a
random selection of laborers we wish to contract the labor intensive work in constructing the building to
local contractors. The contractors will work in close collaboration with our own construction specialists
who will essential guide and direct construction onsite. We hope to work with a variety of contractors to
get a feel for different work styles, before committing to one to handle construction for the entire Mumbai
operation.
This human resource strategy will leave us more than adequately staffed for the first five years of
operations. As our business expands, it will become essential to hire talent that will help us grow and
differentiate the company. In the future we will look for individuals that are innovators in their own right.
These employees will be used to expand into new regions, where the strategy and implementation may
change depending on external factors. WE see our growth rate and hiring levels to be in tandem. Until our
process and production can be entirely executed with technology, then WE see no need to pull back from
hiring especially in our manufacturing centers. Overall, the firm hopes all employees and contractors are
inspired by its vision and executes their functions to make an affordable, but invaluable home for the
marginalized masses.

POLIS: Continuity of a Sustainable Community

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