365-Day Franchise Home Building - PD House: the Success Proof

Real Estate Press Releases Tuesday August 10, 2010 16:59
Bangkok--10 Aug--Cerebrum PR

Home Building Center - PD House, smiled at its first step to success with the 1st anniversary of Franchise Home Building Business expansion, with the number of franchises increased from 11 last year, to 17 at present, and expected to reach 20 by this year. The Center was confident that they came the right way in ensuring that a home building market foster strongly and be acceptable to wider consumers, as well as expanding a network of PD House’ Home Building Centers nationwide in the future. The success was very much owing to a market strategy under the concept of QSR (Quality + Speed + Relation) that generated business confidence to partners and customers. In addition, consumers tended to choose a more professional home building company because such a company could manage more efficiently with sincere service.

Mr. Sitthiporn Suwannasut, Chairman and Director-General of Patum Design Develop Co. Ltd., or PD House home builder center, revealed that the business began with the idea that the company started to expand in the form of “Franchise Home Building” last year (Y2009). It was the first and only company that built a house in Thailand with the key policy of expanding the home building market to nationwide regions under the brand ‘PD House’ by offering a franchise to those investors or home building service lovers. From the official launch of the business, it now reached the 1st anniversary with the number of franchises expanding from 11 to 17 at present, covering service areas in all regions and more than 45 provinces all over the country.

“The first time that the company announced its decision to expand using the franchise system, those home building incumbents and related businesses were questioning and felt it impossible as they believed that no textbooks taught one to do a home building business. Also, even by transferring the know-how to new investors who were inexperienced, a success was a rare reality. It was viewed that such a new concept would rather bring about a problem to the home building business because of quality problem.

Today is a proof to show that they misunderstood totally. The company put all efforts to develop the franchise model for the home building business systematically by including a business plan, marketing plan, investment and payback, Operation Manual, promotion of the product brand, etc.”

As for the past second quarter, the company expanded franchises to the South for the first time in Phuket, and another in Bangkok, namely Ramintra (8th KM) Franchise, numbered the 16th and 17th, respectively. For the next half of the year, it planned to expand to 20 franchises, with Ayudhaya being the 18th, while the 19th and 20th were still under consideration with respect to readiness and investment possibility in interested provinces, namely Ubon Ratchathani, Burirum, Suratthani, Songkhla, Nakorn Sawan, Ayudhaya, and also Bangkok. Such due consideration was made to satisfy the demand for house building by using a professional home building company.

The key strategy to success that made the company continued growing and stayed competitive was a new marketing strategy based on the concept, so-called, “QSR”, which composed of Quality, Speed, and Relation. This new strategy made the difference for the products and services provided by PD House, with the objectives to truly generate confidence to partner organizations and customers as follows:

1. Quality that resulted from the development of Management and Operations Program in the home building business that could be applied theoretically and practically to the training of the management team and employees. By doing so, the company could build houses and provide services to customers with the same standard quality throughout all PD House franchises nationwide. Customers could be confident with the guarantee period of 3 years for the house, and 15 years for the house structure.

2. Speed for the business management system and construction work. Regarding business management, Home Building Center – PD House could use the franchise system to extend its business to new areas or markets quickly so as to respond to the demand of customers who were looking for a professional home building company, which in turn accelerated the expansion of franchises. As for the speed of construction work, the company employed the Multi-joint Lock prefabricated structure system in constructing every house. Thus, it helped reduce the length of building time by more than 2 - 4 months, and finish the construction quicker than the length specified in the contract for approximately 97% of the total number of contracts.

3. Relation was considered the key strategic factor and essential operational guideline that the company seriously and continuously adhered to for the past 20 years. The company had developed the Home Mileage Program as a tool to continue the provision of after-sale services. With such excellent after-sale services, it led to the second home for many of existing customers, as well as passing of words to new potential customers. At the same time, the company kept good relations with its partner organizations in order to jointly develop and upgrade the quality of house building to a wider acceptable level.

Finally, Mr. Sitthiporn ended by saying that even though the overall picture of the first half of the year showed a decline in the Bangkok and vicinity market due to the political situations. However, it was assessed that the house building market would potentially expand in the second half of the year, particularly the demand for home building in provinces. There was an increasing trend for the consumers, with new attitude, recognition, and behavior, who looked for a professional home building company with social responsibility, like a network of Home Building Center – PD House that had franchises in every region. Customers were confident in the company’s professionalism that enabled efficient management according to their demands and specified budget, and more importantly the after-sale services.

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