The housing market of UK has seen a tremendous change since 1996 and has evolved in an industry contributing generously to the economy. The report will incorporate impact of new firms or start-ups in the UK market in all sectors and types of industries. The report will critically focus on Bricklane which is a real estate industry providing aids in form of houses to people all over the UK. The evolvement of technology and modern ways of living has boosted the performance of new business firms tremendously. Thus, to understand the international market and impact of globalization, an analysis of Bricklane and its performance needs to be evaluated. Its current strategies as well as potential plans should be critically assessed in order to develop products. Various recommendations needs to be developed so as to enhance
Bricklane is a property based industry of UK which was started by a team of young people who stays on rent in the year 2014 (Encinas and et.al., 2018). The aim of the team members is to provide a fairer property deal to everyone in UK. The business is owned and operated by the team with diverse group culture and qualification aspects. The team has focused on providing such products to general public and companies by raising investments globally. Irrespective of the wealth of people Bricklane.com provides aids to each and everyone seeking housing facility (Casey, Goodyear and Armour, 2016). Company has an expert group of people advising on funds, merges and property acquisitions as well as creating portfolios for various multinational companies such as ING, CBRE and LSL Peabody, etc. (Davis, 2017)
Bricklane has setup itself appropriately in the UK market enabling people to invest funds in the UK property especially residential and earn returns from the housing market (Pietraszko and Fong, 2015). Company has currently two types of products to be invested in based on residential property which are London funds and Regional Capitals. Both these funds take in monetary resources from the public and invests in high level properties (Tallon, 2008).
Company has a strategy to carry out a detailed value of the various properties on a monthly basis so as to give a proper description to general public to invest in the best property which will yield higher returns (Henderson and Romeo, 2015).
Another strategy followed by Bricklane is tax efficiency will inspires people to invest more in the property sector using Bricklane.com website. The REIT has provided special assistance to Regional Capital funds by imposing no corporate tax on revenue from property or rent received (Encinas and et.al., 2018).
The partnership with Zoopla property is a strategical plan which backed up Bricklane. With Zoopla, company has evolved tremendously and made available its products to a wide range of people all over the UK (Henderson and Romeo, 2015).
Yet Bricklane has came up with a strategy to safeguard their customers which is one of their prime responsibility (Walliss and Rahmann, 2016). The company uses 128-bit SSL encrypted network to secure personal and vital data of customers.
Company needs to evaluate its marketing plan and strategies in contrast to the UK market (Davis, 2017). Thus, applying the marketing mix theory to real estate business will help in evaluating and formulating future strategies for Bricklane. By applying seven P's of the marketing mix theory to selling property, realtor's can determine a brand’s offering and develop a more effective property marketing strategy (A Fairer Property Market, 2018). These are:
Illustration 1: Marketing Mix
(Source: A Fairer Property Market, 2018)
Product - It refers to as the offering a company made to customers. A real estate or property business is a type of service industry which is created and enhanced by the providers. Thus, Bricklane products are types of services rendered by the team to the general public for investing so as to receive returns later on (Pietraszko and Fong, 2015). The team members are also providing people education regarding market updates and local property sales data. Bricklane needs to evaluate its product performance on a regular basis and discard non performing funds (Coën, Lefebvre and Simon, 2018).
Another point to be kept in mind is to conduct a research about the target market and their needs and wants and then design the product accordingly. Such a strategy will help in gaining higher funds to be invested.
Price - It refers to the amount which customers pay for a particular product. The Bricklane has two types of products which has different prices and return percentage. Pricing of property funds is essential in order to market them in an effective way (Encinas and et.al., 2018). An efficient pricing strategy needs to be incorporated keeping in mind the buyer behaviour and preferences.
The prices of property tends to fluctuate and thus is a major source of revenue for people who has invested in property sector (Beracha, Hardin and Skiba, 2018). At Bricklane the current return for five years is 4.2% and 2.5 % for their two products Regional Capitals and London respectively. Examining sales cycles and price patterns will help in defining which area is profitable so as to advise customers to invest in minimum amount in order to receive grater value (Coën, Lefebvre and Simon, 2018).
Place or Positioning - It refers to a place where the customers can access the services or buy the product of the company. Bricklane majorly operates through its personal website will all necessary details and updates giving customers a clear information about its various services and products (Encinas and et.al., 2018). Brand image is enhanced by the quality services and help rendered by real estate officials. Since Bricklane offers services through online portals it needs to create its web page in an attracting manner so as to enhance customers experience and provide all essential information in a user friendly manner (Tallon, 2008). Key objective behind establishing a leading real estate image is to position products in an effective an efficient manner.
Promotion - It is an essential marketing tool which will enhance the brand image of a real estate through various techniques such as advertising, articles in newspapers and magazines etc. (Henderson and Romeo, 2015). With globalization and digital technology, it is easier to market and promote real estate products thereby increasing overall sales ratio. Bricklane has seen around 84% of increase in total sales last year through promoting its products online using print media. Use of social media and digital techniques has helped companies to evolve in a better way accepting feedbacks and promoting products with proper details (Casey, Goodyear and Armour, 2016).
People - The customers, assistants, agents, support employees and team members of Bricklane who bought and sold funds comes in this category of marketing tools. Marketing involves team efforts in order to sell real estate funds or products (Coën, Lefebvre and Simon, 2018). Through restructuring a healthy culture thereby providing training and development facilities to employees so as to market product in an efficient manner which impacts on profits and company's performance. Such services will help retain talented employees in the company and thus, strengthen brand image (Davis, 2017). However, hiring the right candidate for the right job is essential and Bricklane should focus on resources as they are vital for its overall success.
Process - The steps and procedures which are followed by a property dealer in order to render services and deliver products according to the needs and desires of customers. The process at real estate involves communication technique which is used by employees to convince customers to invest in property products in an effective way (Casey, Goodyear and Armour, 2016). Quality and equal services is essential at Bricklane in order to win customer support. The team members are continuously working towards enhancing services provided to people. The ultimate goal is to provide the client with full transparency and an insight into how Bricklane marketing system will help them (Davis, 2017).
Physical Evidence - Since real estate business is a type of service industry and representation of product and services is vital so as to convey customers in an effective manner. The ultimate objective is to satisfy customers in the best way possible. In order to correct problem in an efficient way, team members at Bricklane needs to undergo a critical research about the time, materials and expected return (How Bricklane.com works: Growing customers’ savings, 2016). The company promotes and advertise using social and print media needs to focus on a target market and then design strategies to fulfil goals and objectives.
Illustration 2: PESTLE Analysis
(Source: UK Residential Property Funds, 2017)
With globalization companies and management firms are expanding internationally in order to expand growth market and profits. Bricklane do seem to have gained some ground over the last year and a few weeks back they were named as one of the top 10 Fintech companies to watch by the Financial Times having backed up by Zoopla (Encinas and et.al., 2018). The company currently operates in Wales, Scotland, Northern Ireland, South East of England, The South west of England, East and West of England and The Midlands. The analysis of International market comprises of evaluating various factors which impacts the performance and operations of real estate as well as the value generated by the property (Beracha, Hardin and Skiba, 2018). The PESTLE analysis will help to identify the potential of the international market so as to estimate the growth of property.
Political - The laws and regulations imposed by the UK government impact the growth of the real estate market. Bricklane is affected by the changes in interest rate and bank loan rate as it resists customers to invest and rather impel them to save for future (Casey, Goodyear and Armour, 2016). The changes in government policies due to digital technology and globalization has affected Bricklane thereby cutting down its overall profit margin. As Bricklane is engaged in acquiring funds and investing it in housing sector which will earn revenue from tenants it needs to acquire huge lands and infrastructure which is surrounded by government taxes and trade barriers (Pietraszko and Fong, 2015).
Economical - The rapid changes in technology and evolvement of digital techniques has provided competitive advantage in the international market thereby growing demand for investment purposes in property segment (Walliss and Rahmann, 2016). The rapid increase in IT sector has also opened new ways for development. Rising middle class with increasing income levels and rapid urbanization causing the current real estate boom in the UK which has enhanced Bricklane brand image. Though high rate of inflation has curbed investment in real estate sector as consumers are investing money in essential products (Encinas and et.al., 2018). The fiscal policies and exchange rate has impacted the international market for Bricklane.
Social - The population growth has increased tremendously which has demanded more need for housing property thereby impelling Bricklane to invest more and more in housing sector so that every one has a housing facility in UK. The change in tastes and preferences of consumers and growing need for proper health has also provided strategic opportunity to real estate business (Coën, Lefebvre and Simon, 2018). Construction housing according to demographics also play a vital role in uplifting overall brand image of Bricklane. The company needs to plan for land by negotiating with government so as to provide housing facility to each and every person in UK thereby generating rents and providing profits to customers who has invested in property sector (Walliss and Rahmann, 2016).
Technological - Technological advancement could be witnessed at each and every second and it impacts the housing company thereby allowing people to buy and sell using internet technology. Globalization has come with its impact and now many companies in the UK have embraced internet marketing and e-commerce (Beracha, Hardin and Skiba, 2018). Thus, international markets are prone to newer technologies and innovation which cater to the needs of customers by impelling them to invest in foreign markets thereby gaining an extra penny due to fluctuations in exchange rate. Quick and new ways of constructing will help Bricklane to expand fast at a high speed so as to provide housing facility to people thereby earning revenue.
Legal - In order to expand in the UK market, Bricklane needs to follow certain legal regulations imposed by government on real estate industry(Coën, Lefebvre and Simon, 2018). The safety and security of people and their personal information needs to be secured by using proper network and encryption channels (Walliss and Rahmann,2016). The government has evolved various laws and acts which Bricklane needs to implement relating to building construction and improvement acts. The manner in which a Bricklane operates in terms of rule of law and how it copes up with the legal requirements of the UK is very vital as it limits conflicts and enhances success of the company (Tallon, 2008).
Environmental - The international environment faced by Bricklane is full of competition from various real estate industry which has higher returns and lower rate of investment. Both internal and external environment of UK affects Bricklane and its performance (Tallon, 2008). Additionally, the construction practices followed by Bricklane was against the environmental policies formed by UK government which has cost a huge amount to the company since its inception. The ministry of UK is taking actions to ensure that such constructions don’t happen in the future and as far as possible the current constructions are put on hold (Beracha, Hardin and Skiba, 2018).
Illustration 3: International Marketing
(Source: UK Residential Property Funds, 2017)
An analysis of entry methods in the UK market is arranged in a structured way that makes possible the entry of new products, technology and services (Brick Lane, 2016). A market entry mode is a significant method for the delivering of a company’s product, technology, and human and financial resources into a foreign market. Thus, entry of new real estate firms is easy in UK markets and has a huge potential as well to grow with the market. There are many entry modes to enter UK market in order to expand business globally thereby increasing competition (UK Residential Property Funds, 2017). These are:
Strategic Alliances - It helps in competing in the international market by building relationship with others thereby gaining competitive advantage. Strategic Alliances in real estate business will help Bricklane to establish relations with partners providing complementary services such as partnership with Zoopla or combine its work with other firm working at the similar level (How Bricklane.com works: Growing customers’ savings, 2016). The crucial aspect related to strategic alliance in order to enter foreign market is risk sharing, asset protection, resource pooling, and the ability to react quickly to market changes.
Joint Venture - It is another form of entry mode into international market and has vast potential to help the business grow especially property based business (Henderson and Romeo, 2015). It helps in sharing both ownership and control which impact the firm to achieve competitive advantage in the international market. The benefits of joint ventures are access to financial resources, pooled research efforts, product development and wider distribution channels.
Global marketing is a vast concept helps in increasing economies of scale of big companies (Coën, Lefebvre and Simon, 2018). The various recommendations for Bricklane to enter international markets are:
- Bricklane should consider both international as well as domestic market and implement policies accordingly. Each segment should be strategically divided in order to design policies and procedures keeping in mind the target group (Casey, Goodyear and Armour, 2016). Being an investment firm, Bricklane needs to design products according to the market conditions in which it operates and thus cannot have same structure for global and domestic segment.
- It is vital to understand local market needs and culture which will base the global market structure of a real estate firm like Bricklane. The team members at Bricklane needs to evaluate customer needs and behaviours as well as marketing condition locally so as to position itself in the international market abruptly (Beracha, Hardin and Skiba, 2018). Thus in order to operate in international market, Bricklane needs to understand the culture and preferences of customers their so as to evolve products and prices accordingly.
- With technology the company has evolved tremendously and it is recommended to use internet based technology to promote products and use social media to advertise plans (Coën, Lefebvre and Simon, 2018). The digital technology has helped Bricklane to devise strategies to capture international market. With such technology feedback could be reviewed and strategies could be formed so as to meet legal challenges in order to operate in international market (Encinas and et.al., 2018).
- It is recommended to have effective communication as it will enhance performance of company both globally and domestically. Open communication network is essential in building relationship as well as nurturing them. Thus, one of the biggest benefits of operating globally with a local presence is the opportunity it provides to develop a deeper understanding of the markets in which your company operates and its potential. It enables you to prioritise and optimise your efforts and budgets effectively (Casey, Goodyear and Armour, 2016).
The essay concludes the impact of new firms in the UK market and the importance of real estate business which will provide housing facility to people of UK. The Bricklane was incorporated by a team of members which has keen interest on developing a housing society for everyone providing them shelter. It uses funds invested by people to provide housing facility to other people of UK. The amount though invested earns revenue at a fixed percentage as well as an extra income though fluctuations in the value of property. The Bricklane has positioned its brand in UK as a sector providing housing space to all and wants to expand globally so as to enhance its operations. The Bricklane operates through its personal website allowing people to buy and sell funds at any point of time. Majorly two funds are operating in the Leeds, Manchester and Birmingham. The essay also incorporates various recommendations for operating in international market as various property business could give a tough competition.
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