Acquisition project | Brick & Bolt
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Acquisition project | Brick & Bolt

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Elevator Pitch​

Do you ever worry about contractors absconding with your money that you've been saving for your dream house? If you ever worry about the quality and tracking the progress of the building because you're staying far away from the site. Here's the solution for everything from Brick & Bolt.

Brick&Bolt the one stop solution for all your construction and renovation needs for your sweet home. B&B consists of highly driven and motivated team of experienced professionals who remove the aggravation from home improvement projects, delivering top-grade results within the time limit anf budget.

Our extensive services, from design and planning to execution as well as post care, we promise hassle free journey. From renovating your house to building your dream home Brick&Bolt has it all covered to bring your ideas to life and put a smile on your face.

Our dedication to high-quality , attention to detail and customer oriented way has paved us the way to leading and trusted name in the industry. Let's join our hands gether to make your home dreams into reality.

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What is Brick & Bolt ?

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CRITERIA

DESCRIPTION

What is it?

Tech-Driven construction company

Founded

2018

Form Factor

  1. Available as an app to download in Android and Apple stores.
  2. Website for desktop and mobile.

Region(s)

  1. Available all over India and immediate cost estimation available in 11 cities including Chennai, Bangalore & Hyderabad.

Value Proposition

  1. Safe Money Transaction : Tansactions work on an Escrow Model. No advance payment is done to the contractor for any stage.No cost overruns.
  2. Transperancy : Clear and detailed quote and online tracking of projects.
  3. Quality Control : Stringent checks through high standard.
  4. Zero delay policy

Nuances of the Product

  1. Technology driven approach : Use of tech to streamline the whole process like real-time tracking to ensure transparency and efficiency.
  2. Quality assurance : Complete checks through the comprehensive QA check points.
  3. End to End service : Complete start from designs and plans to materials and construction process.
  4. Customer centric : Prioritize customers satisfaction and offer warranty post completion as well.
  5. Cost Transparency : The breakdown of the cost and timeline is given well in advance.

Key Differentiators

  1. Tech-enabled Platform
  2. Standardised Process : Brick and Bolt follows standardized process , ensuring consistency and quality which is Fixed timelines,Clear milestones and quality checks at each stages of process.
  3. Transparent pricing
  4. Vendor and Contractor Network : They've time tested network of trusted vendors and contractors ensuring that project has highest quality.

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Understanding Core Value Proposition

Easy and Secure way of building the home project

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Safe Money Transaction​

  • Brick&Bolt money transactions work on an Escrow Model. No advance payment is done to the contractor for any stage.
  • A project is typically divided into multiple stages. For every stage, customer transfers only the stage amount to Escrow.
  • Only once the project is approved by our project management team, the amount is transferred to the contractor.


Quality checks and Real-Time update

  • We assess all projects on the same quality standards called QASCON-BNB (Quality Assessment System for Construction - Brick&Bolt).
  • This has 470+ quality checks per floor of construction. Our project management team assess the quality on these parameters.

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Zero Delays

  • Construction project management software helps to manage the construction activity to give us live updates and helps us to avoid any delays in construction projects.
  • In case of avoidable delays in the project, there's a strict policy where the customer is monetarily compensated.

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Understanding the Users

Sample size : Was able to do a survey with 4 people who have recently finished constructing a home out of which 1 user has done this through Brick&Bolt.

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Homeowners and Property Developers

  • First time home owners : People looking to build their first dream home , looking for safe and reliable construction.
  • Property developers : People looking for developing a residential and commercial who are seeking a partner for management and construction.

Technology driven Customers

  • People who are technology saavy and are interested in tech driven digital tool for management and communication.
  • People are interested in real time tracking and updates and expect transparency through online platform.

Time and Quality sensitive Customers

  • People who have strict deadlines for construction completion.
  • Customers who expect quality and follow proper construction practices.

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Understanding your ICP

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B2C Table

Criteria

User 1

User 2

Name

Shrivardhan

Anoja A

Age

50-65

29-40

Pain Point

Wants quality work at affordable cost.

Wants quality and latest tech in home at an afforable and market price.

Solution

The transparent cost framework in Brick & Bolt ensures there's no cost over-runs and Quality checks ensures there's no compromise in quality.

Brick and Bolt offers various designs and elevations to choose from real-time progress tracking of the project.

Behaviour

Old school thought process, reluctance in accepting the tech driven methods

Tech driven, always looking for better things and accepts the change through technology.

Marital Status

Married or Widow(er)

Single or Married.

Installed Apps

Social Apps : Facebook ,Whatsapp, Youtube,LinkedIn

Fintech : Gpay , Banking Apps.

News Apps : TOI, Inshorts

Shopping: Amazon, Flipkart

Social Apps : Instagram, Whatsapp, YT, X and LinkedIn.

Fintech : Gpay, Phone Pe, Groww and Banking apps.

News Apps : NYT, Inshorts,Buinessline.

Grocery : Blinkit, Instamart, Dunzo.

Shopping : Myntra, Ajio, Amazon, Flipkart.

Spending Habits - Money

Calulative spending habits

  • Spends money for family.
  • Spends money on investments like MF, metals and shares
  • Spends very little on recreations
  • Limits tours / family trips to pilgrimage and outstations to once a year.
  • Spends money on family
  • Spends on investments like shares and trading like forex and day.
  • Spends on eat-outs and travels.
  • Exotic travels and cusines.
  • Subscriptions like OTT, Swiggy one, Zomato gold.

Spending Habits - Time

  • Spends most of the time for office and home needs and for family.
  • Hardly goes out for recreations.
  • Works towards healthy lifestyle.
  • Spends most of time in office and rest in Apps like Fb, Insta and youtube.
  • Time spent at home is usually less as day to day activities also involve gym and meeting with friends.

Perceived Value of Brand

Hard to convince , but once convinced and proved will stay loyal to brand. And will refer to others.

Less hard to convince , always looking for better brand and options.

Average Spend on the Product

Rs.75,00,000 above considering the amount saved through their lifetime

Rs.45,00,000 above considering the amount saved little and rest through the banking finances.

Marketing Pitch

Referrals and personal meets to prove the brand point.

Through social media and through the app to prove the tech in this field.

Frequency of use case

Once or twice in lifetime

Twice or thrice in lifetime.

Value Experience of the product

Higher experience of product due to age factor, would have seen the market and design changes over the years and would expect the best.

Limited experience, higher exposure and higher expectations from the product.

Criteria

ICP 1

ICP 2

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Adoption Curve

High

Low

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Frequency of Use Case

Low

Low


Appetite to Pay

High

Medium


Decision Time

High

Low


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User Flow

  • Landing Page/Home Page : Product Discovery

User searches for home construction and comes across Brick and Bolt Construction Company.

  • Service Selection

User browses through the previous projects and their testimonials . Narrows down on residential or comercial .

  • Account Creation

User creates an account and can rough estimate the cost for building and browse more designs and elevations.

  • Project Consultation request

User is now intrested and raises a request for the project, provides a details of the availabe property.

  • Project Proposal and Cost Estimation

Brick and Bolt provides the customer with detailed project proposal including timeline, costs and design plans.

  • Project Planning and Designs

Brick and Bolt engages with customer to finalise the project designs , Elevations and Plans.

  • Construction Phase

Customers are given live-tracking on the progress through the app. Any issues is raised as a ticket through the app.

  • Quality assurance

Brick and Bolt makes sure the project quality meets and exceeds the customer's expectations.

  • Project Completion and handover

Brick and Bolt hands over the project to the customer officially and promises post-completion warranty and services.

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Competitors in the Market

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Company

Location and year

Company stage

Total Equity

Remarks


Brick & Bolt

Bangalore, 2018

Series A

$16M

-

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BuildNext

Ernakulam, 2015

Seed

$4.45M

  • Uses VR enabled walkthrough
  • BPI (Building performance Indice) for optimization of space and ventilation


WeHouse

Hyderabad, 2017

Seed

$1.56M

  • Available only in two cities

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Size of the market

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Now it’s time for some math, calculate the size of your market.

TAM = Total no. of potential customers x Average Revenue Per Customer (ARPU)


SAM = TAM x Target Market Segment (percentage of the total market)
SOM = SAM x Market Penetration/Share

Total addressable Market

Urban Population according to IBEF (KPMG ,world bank census 2011)

501 Million ( 2024 )

542 Million ( 2025 Forecasted )

Average size of Indian Home- 1300sqft (2023) -source Property Consultant .

Average build cost per sqft - Rs. 1900/-

Calculation : 501,000,000 X 1900 = $11.2B


Serviecable addressable Market

  • ICP is aged 29 to 65 years of age (29-40 is ICP #2 and 50-65 is ICP #1)
    1. Reason for ICP #1: Indians who work till the retirement age and have savings and intend to build a dream home for their family
    2. Reason for ICP #2 : Indians who are middle in middle class and would love to get a home for family through their initial earnings and bank loans ( as a milestone achievement)
  • Took census projected in 2016 from 2011 census and narrowed on the age brackets
  1. 30-34
  2. 35-39
  3. 50-54
  4. 55-59
  5. 60-64


Brick and Bolt primarily concetrates on major cities like Delhi, chennai , Bangalore , Hyderabad and etc this could represent about 15-22% of the Total Addressable Market of 11.2B$ which is 2.5B$.

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Service obtainable Market

33,60,50,000 - 33.6 crore Individuals

Considering wealth for home at 1% 3.36Lakh individuals

33.6Cr % 1 = 3,36,000 individuals.

Brick &Bolt till date has completed 4500+ projects

So, it has achieved 1.5% of the market penetration till date meaning

Brick & Bolt has huge potential to unlock the market.

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Average Project value and market share: If we calculate the average project value is 50Lakhs - 2 Crs depending on the project type, demographic , size and type of project( residential / commercial )

If Brick and Bolt could capture just 1% of the SAM that's around 250Million Dollars of annual revenue potential in Residential sector alone

Demographic distribution of the ICP

  • This data is obtained from census release and NFHS ( National Family Health Survey) and below data is calculative from the Census of India and few other Demographic data


CIty/ State

Age 29-40 (male)

Age 29-40(female)

Age 50-65 (male)

Age 50-65(female)

Delhi

25 lakh

23 lakh

18 lakh

16 lakh

Bangalore

12 lakh

11 lakh

8 lakh

7 lakh

Hyderabad

11 lakh

10 lakh

7 lakh

6 lakh

Pune

10 lakh

9 lakh

6 lakh

5 lakh

Chennai

9 lakh

8 lakh

6 lakh

5 lakh

TamilNadu

45 Lakh

43 lakhs

32 lakhs

31 lakhs


Website traffic and App analysis

Website

Monthly visits

Domain Trust

Page Trust

App Downloads

Brick & Bolt

22,400

49

16

10,000+

BuildNext

6,500

27

22

1,000+

Wehouse

201

30

9

-

Domain and Page Trust Score is marked (0-100) higher the number better the trust.

Website Audit

(Done through SE Tracking)

SE Tracking gave a the website a page quality score of 53 for Construction.

With few High priority suggestions for website improvement.

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Designing Acquisition Channel

Organic search channel

Direct competitor BuildNext has optimised the organic keywords but loses out on the organic traffic.

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Referral Program

Brick and Bolt runs a referral program through it's website

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Currrent Policy of referral of brick and bolt

  • A User can refer by submiting the details through the website and the referer will be notified if the project goes through and there's no tracking for the same.
  • Provides with cashback of 25,000 for projects value above 40Lakhs which is less than 1%.
  • The person getting referred gets a 25% off in modular kitchen from a particular brand.

My Proposal to change the referral Policy

For years, Middlemen have been the shadow pillar in Real-Estate industry. But, Brick and Bolt fails to recognise the same.

Marketing team of the Brick and Bolt should strategize and contact the Middlemen/Brokers in the available cities and explain them about the Brand and Referral Policy.

There should be a Portal and Tracking section in the app for such Successful referrals.

The person getting referred should be given better options of getting cashback in any interior part of the home.

For additional referrals for more than a successful refferal in a year, extra CashBack % should be given for the referer. This will incentivise the referer to work more.

This is an effective and unexplored section of the referral strategy that Brick and Bolt should consider and tap the potential of the referral through Middleman.

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LTV and CAC cost calculations

Assumptions

  • Gross profit from each customer is 15-20% ( source: Google/Quora)
  • Average of 50 customers per month ( 4500 homes in 5 years and considering flats as a single customer)
  • Average size of each project ( 1300sqft-from Google)
  • Average cost of each project ( assumed Rs.1900/sqft)
  • Customer Life time = average of 1.25 year ( to build an house)
  • Retention rate of each customer is 0.20 ( assuming 2 out of 10 customers want to do another project with B&B)

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Average revenue per customer (ARPC)

ARPC = Average revenue per project X no. Of project

= 1300 X 1900 X 1.10

= Rs. 27,00,000/-

Gross Margin

ARPC % 15

= Rs. 4,05,000/-

LTV

ARPC x Gross margin percentage x Customers Life Time

= 27,00,000 x 0.15 x 1.25

= Rs 5,10,000/-


Paid Ads

Calculating CAC based on paid Ads through Google and Social Media

Allocating a fund of Rs.50,00,000/- in total for all the paid ads


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Channel

Search ads /Ad campaigns

CPC

Allocated Costs

Google Ads

Target keywords like construction, interior design, Building etc

Rs.50

Rs.25,00,000/-

Instagram/Facebook

Run an ad campaign targetting home/building searching users and ask them to fill a consultation form

Rs. 12.50

Rs.15,00,000/-

Youtube

Boost the existing youube channel and videos and add a landing page in the description box for searches like home building , renovation and similar terms

Rs. 0.50

Rs. 10,00,000/-

Calculation of CAC

Things to consider

  • Marketing and Advertisement costs
  • Sales team salary and incentives
  • Misc costs ( Event, Trade shows, Referral costs etc)


Calculating CAC for a period of a year

Marketing and Advertisement cost = Rs. 50,00,000/-

Sales and Salary cost = Rs. 2,50,00,000/- ( has a sales force of 40 individuals )

Misc Costs = Rs.25,00,000/-

Customers Acquired = 50 X 12 = 600

Total Acquisition Cost = Rs. 3,25,00,000/-

CAC = Total Cost /no. Of customers

= 3,25,00,000/600

= Rs. 54,200/-

Suggested Strategy /Methods for Facebook Ads

Audience Target

  • Deographic Targetting : Concentrate on ICP's age groups who are intrested in "Home construction" , " Renovation".
  • Location : Target the cities where the Brick and Bolt operates and can specify the areas on the run.
  • Custom Audiences : Use customer lists, website traffic data and engagement with similar ads to create custom audience.

Paid Ads format

  • Video Ads : Create the engaging videos and cut videos from testimonials and highlight the different aspects of the services and Trust and promise by the company.
  • Image Ads : Create engaging photos and High quality image of the completed works, On-site images , before and after of the site.
  • Collection Ads : The target audiences or customer can now browse the different projects through the ad ,making it easier for the audiences to explore different offerings from the company.

Ad Creatives

  • Highlight the Unique Selling Proposition (USP) : Showcase what sets the Brick and Bolt apart from the competitors, like live tracking, Transparent transactions, Escrow Model, No cost over-runs.
  • Strong Call-to-Action ( CTA): Engage the users to visit the company website, Book a free consultation,Get a quote.

Retargeting Campaigns

  • Website Visitors : Retarget the users who have visited the company's website but didn't get converted. Target the ads again and highlight the USP's and offer a discounts in interiors.

Optimization

  • Adjust Targetting : Refine the audience based on performance data, and exclude the non performing targets
  • Creative Refersh : Time to time update your Ad creatives, to avoid ad fatigue and also to keep the users engaged.

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Suggested Strategy /Methods for Youtube Ads

Audience Target

  • Deographic Targetting : Concentrate on ICP's age groups who are intrested in "Home construction" , " Renovation".
  • Location : Target the cities where the Brick and Bolt operates and can specify the areas on the run.
  • Intrest Targetting : Target audiences intrested in Real Estate, Home Renovations or Improvements , Architecture and home decors.
  • Custom Audiences : Use customer lists, website traffic data and engagement with similar ads to create custom audience.
  • Affinity and In-Market Audiences : Target the users who are actively searching for home constructions.

Paid Ads format

  • Truevview in-stream ads : These ads play before, during or after the videos, which can be skipped after 5 secs and Use this to showcase/highlight the testimonials , USP's , Success stories.
  • Trueview discovery ads : These appear in the YOUTUBE search results alongside the related videos. Brick and Bolt can utilize this " How to choose good construction company " , " How to Contruct Home -Basics " , " How to understand construction plan ".
  • Bumper Ads : Non-skippable 6 secs ads which can highlight the company's promises.

Ad Creatives

  • Showcase the completed projects : Use videos that show the trasnformation of the building, HIghlight before and after scenarios.
  • Client Testimonials : Feature satisfied clients discussing their experince with the Brick and Bolt.
  • Process Videos : Create SHORTS, from the long videos and highlight the testimonials, trust , construction process in engaging way. This engagement increase the brand value among the viewers and increases the trust.
  • Explainer Videos : User of animated videos to explain services and benefits of working with Brick and Bolt.

Retargeting Campaigns

  • Website Visitors : Retarget the users who have visited the company's website but didn't get converted. Target the ads again and highlight the USP's and offer a discounts in interiors.
  • Youtube Channel Interactions : Retarget viewers who have engaged with the Content.

Optimization

  • Adjust Targetting : User Youtube analysis and Google ads data to track audience based on views, click-through rates (CTR) and conversion rates.
  • Creative Refersh : Test different ads creative and Time to time update your Ad creatives, to avoid ad fatigue and also to keep the users engaged.

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Content Loop

Content Creations

  • Blog Posts : Write articles on " How to choose right contruction company " , " Understanding the construction process " and also optimise SEO to attract organic traffic.
  • Video Content : Shoot videos showcasing completed projects , testimonials, BTS of construction process.
  • Social media posts : Run the ads campaign based on the suggested ad campaign above in platforms like Meta.
  • Email Newsletter : Create a monthly or biweekly newsletter that includes videos, blogs and promotions.

Content Distribution

  • Youtube Channel : Publish video content on Youtube. Optimize video titles, descriptions and tags with proper keywords .
  • Social Media : Distribute shorter, engaging content on all the social medias like Facebook, Instagram for visual content. LinkedIn for professional updates.
  • Email Marketing : Send newsletters to available email lists giving out latest content with hyperlinks to website or social media.

Audience Engagement

  • Social Media Interactions : Respond to comments, messages and mentions on social media promptly.

Content Repurposing

  • Social Media Posts : Break down blog bite-sized tips or infographics to share on social media.
  • Video snippets : Extract key sections from longer videos to create Shorts/Reels for Instagram,Youtube,Facebook.

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Thankyou

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