Objectives
In the given case, real estate mortgage loans are chosen, as finance mortgage broking business, which will provide loans to real estate professionals, builders and individual homebuyer. The business house is capable to provide the appropriate loans against the mortgaged property with best rates, terms, and cost to fulfil the criteria of the clients.
In the given case, the mortgaged broking business that has been considered, is of the name Claremont Funding. Joan Billings and Maureen Shoe, who are the two principal investors of the business, run this particular organization. They are also licensed brokers.
Objective:
The prime objective of the Claremont Funding is to provide the comprehensive mortgaged brokering services to the clients. Further, the enterprise is committed to provide the personal and specialised services to the clients in accordance with their personal needs. Following are the primary objective of the firm:
- The company has the primary aim to become a profitable institution in the real estate sector. The company majorly focuses on the old town section of the city, which is growing rapidly.
- The company aims to be recognised as a solid corporate entity in a specifically targeted zone.
- The company want to become the most committed and top brokerage firm within three years of its incorporation in a targeted area.
- Further, the company want to earn positive return on investment in its initial years.
- The Claremont Funding is in a business that provides high quality mortgaged brokerage services to the residents and business entities in a targeted area. The main mission of the concern is to provide reasonable mortgage loans at a fair rate of interest. In addition to this, along with the view to provide quality services to the customer the company aims to be friendly and work as a mentor to the clients of the concern. The current business position of Claremont Funding is such that it is full of opportunities, they have excellent place to work in a professional environment, which will complement the company by challenges, rewards, creativity, and enhance the individual ideas.
MARKET analysis summary:
The main reason to start the business is that, in current situation the people tend to purchase their own residential house by the use of mortgaged loan facility. Further, the economy demands for the low interest rates which will attract the people and business organisation to purchase residential properties which will also contribute to the national income of the economy. The old town sections are to be reconstructed. Therefore, the residents of that particular area seeks to obtain loans for the new construction purpose. The Claremont Funding aims to provide such facility in these old township. The cheap and friendly loans will encourage the customers as well as the company will become a reputed brand in the real-estate market.. Furthermore, the company’s office is located in the prime area of the old Township, which will be easily accessible for the residents. In addition to this, the company has tied up with various renowned real estate firms of that area to gain more customer support.
Market segmentation:
The Claremont Funding has divided their customer in to different groups, which are as follows:
The home owners- the homeowners in the old township are coming for the loan for first time reconstructing the house.
Residential refinancing – In this group, the Claremont Funding aims to provide loans to the good and bad credit holders in terms of construction, purchase, debt consolidation, investment in properties or refinancing of the existing loans.
Competitor analysis:
The company is new in the market. Large customers are availed by the financing brokerage house. However, from time of its incorporation, the company had serve 6000 customers in the time span. In a very short term the company is able earn the confidence of larger sector in the old township area. They have convinced the clients to take their loan or financing services for the reconstruction, purchase or for any other reasons. The most competitive financial brokerage institution are demanding high rate of interest , therefor this company getting competitive advantage as being the lowest interest rate loan providers.
Market analysis summary
Marketing strategy:
In the given case, Claremont Funding has adopted a distinguishable way to attract more customers towards the institutions. As there are many financial, institutions in the old township of California, the company is highly sensitive to gets their customers. Instead, for waiting for the arrival of the customer the company has taken an initiative to go to the customers and approached them for the purpose of educating them about loans. Further, the trained and qualified sales team members elaborate the clauses, the terms, conditions, and their benefits to the expected customer of the organisation. In addition to that, the company address the client for the survey regarding the liability of loan that can be borne by the customer, which help the customer to understand the entire loan forwarding procedure. They also provides the guidance to the customers to pay in small and collaborative loan instalment, which fits with the earning of the loan holders.
Moreover, the marketing team of the Claremont Funding is focusing on the targeted segments of the company for present and future events. The company sends marketing messages to the people of Old Township. The exclusive rates of interest and attractive schemes are notify to them. Further, the company advertised in public hoardings and placards to attract the customers to the brand. Providing quality service in low cost is also a part of marketing strategy. The Claremont Funding has grouped with all the top property developers and the real estate brokers for the better accessibility of the customer. The key marketing objectives of Claremont Funding are as follows:
- Increase in sales.
- Build brand awareness.
- Grow market share.
- Launch new products or services.
- Target new customers.
- Improve stakeholder relations.
- Enhance customer relationships
- Improve internal communications
- Increase profit
Financial services and products:
The company provides some basic financial services to the customers, which are as follows:
Conventional mortgage loans:
This is the oldest techniques of loan. Where a person, who needs money loans the property to the moneylender as security. After the full settlement, the mortgaged property papers will be returned back to the owner of the property.
Repayment of mortgages
This is the basic way of repaying all mortgages, however specialised they are, apart from interest only loans, which are different. In this, the loan holder needs to pay the interest with some principal for a particular period.
Buy to let mortgages:
In this, the property is purchased by the people or business organisation for letting out purpose.
First time buyer mortgages
This loan is provided to the customers who does not hold any substantial property rather they mortgaged the property, which is financed.
Market segmentation
Convertible rate loans:
In this, the rate for the entire term is not fix rather the loan holder have to pay the interest as per the latest interest rate policy that is fixed by the governments.
The prime focus of the Claremont Funding is to provide the simple loan solutions to the customers. They are servicing basic and needful loans such as convertible loans; buy to let loans, first time buyer’s loan. The initiative that are taken to promote the products are as follows.
Spread the word:
The company is focus to spread the loan services to the expected clients and general people. So that the people come aware of the financial institution services.
This could be done by the sources listed down as follows:
- Referrals form the accountants and CPA firms who are engaged in the business of buying or selling homes.
- It is better to contact the real estate agents who are selling most of the homes.
- The modern property developers and architect of that particular area, with whom the customers generally collaborate.
Sell yourself:
The best way to sell own products is from own sources. In this marketing tactics, the company will invest in the websites, which hold all the material information of loans, and services that they are providing. The website will contain the testimonials of the past clients and resources which might be beneficial for the loan seekers. Further, the company plans to promote their services in the form of digital advertisements in the real estate agents website, so that the potential homebuyers can easily access the information regarding the loan or financial services.
In addition to that, the company may promote the business in commercial ads on television screens or in radio network.
Researching more information of customer:
In this content, the company seeks to identify the potential customers by open-ended questions. Instead of seeking the type of property and the loan liability, the sales executive intends to understand the personal responses of the customers regarding how they want to take case out of property, what are the future plans? By simple questioning the, the company understand the true needs and motivation of the clients. In addition to this, the customer who are less aware of the answers are the best ones to motivate. Some of the questions that the sales person must ask the targeted customers are.
Has anyone ever explained the loan process to you step-by-step?
Do you know what your credit score is and what is on your credit report?
Have you seen any other rates you like?
What kind of property are you buying? Tell me more about it.
Have you considered rolling other debt into the mortgage in order to lower payments and save money on interest?
Competitor analysis
Growth planning:
The increase in sale will surely contribute to the growth of the concern. However, the concern wants to create a brand image for the customers by providing best services in the most affordable and flexible loan modes. Further, the company wants to become the number-one choice of the customers. The company targeted to attract more customers in the future to ensure the future prosperity of the concern. They are rapidly developing the customer base, which will lead to connect with more potential customers. The target of the concern is to provide at least 10000 new customers in the current. Moreover, in the next year the company’s growth policy considers the financial growth majorly through cash flows, and sales dates, which will be determined ultimately by the Seller and the Buyer and a move out/move in schedule, will be complied with.
Monitoring and measurement:
For the perfect measurement and monitoring, the marketing objectives and your growth objectives will be identifed by the comparison that the company has assessed before the starting of advertising content with the results of post advertising markets. If the company is satisfied with the results then they will continue with the same marketing policy and must develop the new ways to attract more customers. The company can understand that either they have reached there goals by evaluating the increase in the sales and enquires, improvement of the business image, the marketing goals are complementing the targeted areas, the business is getting positive feedbacks from the customers. Further the company must review the goals and results regarding the strong positions and to make new strategies for the next advertising campaign.
Contingency planning:
This particular section of the project analyse the risk involve in the business. The company is operating in the financial sector therefore; it depends on some important assumptions. Further, some financial situations may arise in the course of the business that might affect the profitability and the viability of the business. Change of government policy and rates is the most crucial and sensitive areas of the business. If government lowers the rates then the company might suffer loss as they have provided the loans at higher interest rate and the customer is paying off in the lower interest rate for the due amount, in that case, the company will suffer loss. Further, the financial mortgaged business operates in the strong economy, in case of recession the company will face problems of lowers sales, a recession will attracts the bad debt of the loans.
To meet with the challenges the company must focus the situation well and must make appropriate funds to defend the losses.
Conclusion:
Form the above analysis of the project it can be concluded that the company is in a better situation to deal with. Further, the company has the potentiality to provide loans and quality services to the needy, In addition this, the company is operating in a well business area where potential customers exists. It is advisable for the company to go to the other sections of the city instead of conducting business in a particular area for a long time.
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