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Introduction

Company Profile

CONTENT

Mall- What is all about

Advantages of mall

Research Methodology

Data Analysis & Interpretation

Limitation

Conclusion

Recommendation

Questionnaire

Bibliography

INTRODUCTION

Phoenix Mall is a 03-year-old engaged in development of residential, commercial and retail properties, backed by a team of dynamic and experienced professionals. We have developed various properties in NCR, U.P WEST & UTTRANCHAL for different customer segments. We work on very high standards of professionalism, ethics, quality and customer care.

While undertaking development of a project, we believe in interpreting the essence of the inhabitants and reflect that style into a life-enhancing environment. To envision the completed project, we follow a process of reflection, planning and execution. The final plan is implemented utilizing quality material and workmanship. Our work shows outstanding design and workmanship in every detail.

Through our unique approach, we design and implement the most innovative yet a cost effective solution for each project regardless of its size, whether it is a fresh design or a total redesign or a need to increase the amount of usable space. Royaltech has the experience and expertise to ensure that the promised design concept is translated into reality, on time, within budget and with desired Quality

With a competent team of Engineers, Designers, Contractors, Vastu consultants, Field officers, Site supervisors, Storekeepers, Security guards, and a large force of both skilled and semi skilled workers, over last 02 years we have successfully executed various project for a Variety of clients, which includes corporate houses and public undertakings

VISION

Phoenix Mall , the company is sophisticatedly designed to deliver a unique set of services in the market. The company comes with an aim to meet the diverse needs of its reputed clients. The strategies and business policies are deliberately planned and executed under the supervision of its knowledgeable staff. The company is housed with a dedicated team of professionals delivering quality based properties including Residential, Commercial and International landscaping. The company is rated as add on advantage dealing with the real estate Industry in India.

GOAL

Phoenix Mall is a prestigious name serving its contemporary clients to the best of its knowledge. The company comes with a competent team of professionals planned to meet the quality of international standards. The distinctive approach adopted by the company ensures to provide exclusive services at pocket- friendly rates. From quality to class, from design to style and from cost to usage the company offers all in one making the services preferred in a wide

COMPANY PROFILE

One of the biggest Mall of Bareilly having approx. 5.5 lac sq feet covered area and large car parking.

Located on the main Pilibhit Bypass and well connected with catchments area of over 1 million population. This mall has a large anchor store , vanilla shops, multiplex, food court , specialty restaurants and hyper marts.

food court , specialty restaurants and hyper marts. Pizza Hut 2nd Floor Phoenix United Mall Mahanagar

Pizza Hut

2nd Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

Contact: 0581-2583347

Domino's Pizza

2nd Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

contact: 0581-2583378

Big Bazar

Basement Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

contact: 0581-2583765

Reliance Footprint

1st

Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road ,

Bareilly

contact: 0581-2583293

Reliance Digital

2nd Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

contact: 8400988999 / 9219456683,84

Levi's Store

Ground Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

KFC Restaurant

Ground Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

McDonalds Restaurant

Ground Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

Store 99

Ground Floor Phoenix United Mall Mahanagar Colony Pilibhit Bypass Road , Bareilly

Monte Carlo Showroom

Shop No G-42 Phoenix Mall, Mahanagar Colony, Pilibhit Byepass Road, Bareilly

The growth of Indian organised retail industry has changed the shopping behaviour of the Indian customers. Shopping today is much more than just buying. It is an experience itself. In our study we will be analysing the geographic and demographic factors based on a sample size of 100 from the area of Bareilly and will identify factors which are responsible for the development of mall. The international consulting firm A.T. Kerney anually ranks emerging market economies based on more than 25 macroeconomic and retail specific variables through their global retail development index. For three years (2008, 2009and2010) India has been ranked as no.1 indicating that the country is the most attractive market for global retailers to enter. The favourable demographic and geographical factors are responsible for development of mall, that includes:

Younger population with less dependency.

Urbanization.

Expanding middle and upper class consumer based.

• Opportunity in India‟s tier 2 nd & 3 rd cities.

Greater availabilities of personal credit.

Growing vehicles population resulting in accessibility.

Fast emerging pace of nuclear families in India.

Relief of land(availability of land)

Accessibility

Climate.

Adequate water supply.

In India shopping centres are cluster of store under a common roof. Those that are typically enclosed and also include food and entertainment facilities are called malls. By this definition, large format stand-alone stores which include entertainment facilities themselves or more commonly as “store in stores” are also understood to be malls. But for the purposes of the this study the definition provided by international council of shopping centres is used. It states that “a shopping centre is group of retail and other commercial establishment that are planned, developed,owned and managed as a single property”. It further states that malls, one of the two configuration of shopping centers, are typically enclosed, with climate control walkways and parking in the outlaying areas. Moreover the growth in the Indian GDP and per capita income with the purchasing power parity(PPP) has made Indian market the leader as far as growth of retail industry is concerned. With the rapid economic growth, consumers with increased purchasing power looks for „comfort, easiness and pleasure‟ while shopping. Studies conducted in the past also refer to expectations of consumers in terms of hedonic and utilitarian values.

DEFINITION:

WHAT IS A MALL?

There are as many definitions of malls as the number of malls! One such definition is:

Largely, organized retail developments by the private sector that the country has witnessed over the past few years are colloquially referred to as “malls”.

Malls include almost all the above-discussed organized retailing formats like Super Markets, Hyper Markets, Departmental stores, Exclusive Brand Outlets (EBO‟s), Specialty Stores etc. They also include Multiplexes‟, Gaming Zones and Food Courts. A mall is, therefore, a very broad concept that not only looks into retailing but also caters to the food and entertainment needs of the consumers.

A mall should create an experience of economic well being, serve the community and create greater involvement with the larger community.

EMERGING MALL LANDSCAPE

Driven by the increase in number of organised retailers, a distinct change in the aspirations of the society and profile of the Indian consumer, a large number of developers and corporates are realising the potential and focusing on developing retail real estate mostly malls. Importantly, the Government has also woken up to the need for adequate supporting infrastructure and revision in policies to promote the sector. Following these developments, various

companies are now setting up supporting services to cater to the requirements of malls.

The mall market in India received tremendous importance since the country witnessed the success of its first three malls in 2000 Spencer Plaza, Chennai, Ansal Plaza, Bareilly , and Crossroads Mall, Mumbai. The rate of development has been phenomenal and while there has been talk about a correction or consolidation stage due to oversupply of such retail spaces, however research shows quite the opposite. Findings suggest that India's retail space is, in fact, in short supply and the sector is likely to boom further with possibilities for mall developers and associated services to thrive in such a positive scenario.

Moreover, over 72 per cent of the mall areas in 20 new malls that became functional by 2004, had been already been pre-leased to anchor and smaller vanilla retailers. For malls that will begin to function by 2005, anchor area of over 48 per cent of the total mall area has already been pre-leased, and as for malls to hit business by 2006, 32 per cent of the mall area has been pre-leased by the anchors. So as it should have become evident by now there is no real oversupply of malls in India.

Unlike their foreign counterparts, where 'have enough' has saturated the market, Indian consumers are now demanding bigger and newer retail formats. In fact, studies show that organised retail in India is growing at 25-30 per cent, as against six per cent for the unorganised retail market. And if the number of malls already in existence in our country is any indication of things to come, Indian retail is at an all time high.

Hence we can say that malls, in particular, are contributing hugely to the development of organised retail. Malls are coming up both within cities and at the outskirts vowing to create destinations that will attract thousands of customers every day. Malls are witnessing a boom because they combine all the factors and their unique mix of tenants ensures that all the members of the

family find what they need, in one huge complex, which offers provisions for entertainment, like multiplexes, culinary delights at food courts that serve both Indian and international cuisine. They cater to every segment of the society, ranging from elite to the middle-class, fulfilling consumer‟s every need, whether in fashion, food, lifestyle, or viable family entertainment.

STAGES OF EVOLUTION OF MALLS:

Evolution: This stage is marked by the development of the country‟s first malls – Spencer Plaza in Chennai, Crossroads in Mumbai and Ansal Plaza in Bareilly that together account for a total built-up space of approximately 650,000 square feet.

Acceleration: India is currently in this stage. Beginning 2001, mall developments picked up in a big way, especially after the market was witness to the success of the first few malls. Enthusiastic developers announced mall

projects in every conceivable format, at every available

consumer-expenditure patterns and the growth in the number of organised retail chains further fuelled this boom.In the initial acceleration phase, most developers were able to sell 50-70 per cent mall space prior to, and also during, the construction phase and generate the requisite funds. An example would be of the Garuda Mall in Bangalore, a joint project between the city development authority (BDA) and realtor company Euromer Garuda Resorts, wherein the management claims to have sold off the entire space even before the completion of construction work. While these may be exceptional cases of good planning, the location of the project also plays a considerable role in the successful selling of space. In the same city there are other completed projects that are having a tough time getting brands and retailers take up space. Since most of the developers are joining the bandwagon sans the required planning, a lot many

Changing

projects lack clear positioning, proper space planning, adequate infrastructure, parking, and an understanding of the basic principles of mall management. Understandably, there are apprehensions about the success rates.

Saturation: The third stage in mall development, of saturation, is still a thing of the distant future. Even if we find that domestic retailers have exhausted their appetite for space expansion within malls, there is always the scope for allowing foreign direct investment (FDI) to come in and explore the market further. But however, a few cities are indicating signs of “saturation” for the current market size. To illustrate, Gurgaon on the outskirts of the national capital Bareilly and with a population of 1.8 million, is expecting some 4 million square feet of retail space by 2006, and so, would appear to be headed towards a stage of saturation in mall space. But as per the study conducted by Chesterton & Meghraj, the actual availability of mall space in the next two years will be 9.5 million square feet. In fact if the plans of key Indian anchor retailers like Pantaloons, Shoppers‟ Stop, Westside, Piramyd, LifeStyle, Ebony and Globus, and also the multiplex operators, are taken into consideration, the total available space is less than the requirement of just these key retailers.

Consolidation: Most mature markets have gone through this stage of mall development. In the United States, up to one-third of the nation‟s 1,200-plus malls are already obsolete. Following a decade of consolidation, the 10 largest mall real-estate investments trusts now control 47 per cent of all malls, which includes almost all of the 200 high-performing ones.

Mall development in India is passing through a decisive stage. The supply of retail space is increasing not only in metros and mini-metros but also in non- metros. At the same time, we find that project implementation has slowed

down, possibly due to introspection by developers, trying to figure out more sustainable models to proceed with. The ultimate outcome, whether there will be a further boost to malling activity or a gradual slowdown, will actually depend on the performance of some of the innovative mall concepts likely to make a debut within the next one year.

PROFILE OF BAREILLY MALLS- TRENDS

SIZE OF AN AVERAGE BAREILLY MALL The Bareilly mall developments range between 50,000- 500,000 sq ft. On the basis of size the malls have been classified in three categories, that is small, medium and large sized malls. This can be seen from the table below:

MALL FINANCING

In the US, over 47% of the malls are owned by institutional investors like Real Estate Investment Trusts (REITs) and run by professional mall managers. The mall managers plan the product mix, monitor traffic, joint promotions, and shopping festivals and so on. However, this requires a high degree of control over the development. Therefore, space within the Malls is not sold like office or residential spaces.

However, in Bareilly , developers have been selling space in retail malls to investors who further lease it out to retailers. Most mall developments are pre- marketed on paper before the groundbreaking takes place. Considering that the investors have been getting yields in the region of 10- 18 % on retail properties in different markets, several speculators also enter the market and then try to maximize return by charging high rentals.

Effectively such ownership and financing structures mean that most malls are owned by neither the

Effectively such ownership and financing structures mean that most malls are owned by neither the developer nor the retailer but piecemeal by individual financial investors. This can result in unplanned and uncontrolled development

of the Malls and eventual loss of rental values.

MALL MANAGEMENT

An evolving concept: As discussed earlier, professional mall management is not yet a widely accepted concept in the market due to various ownership issues, extent of developer control and costs involved. Unlike mature markets, most malls in Bareilly are not run as an operating unit. With most space sold to retail investors, the issue becomes further complicated.

A few malls in Bareilly are considering the services of professional mall

managers. Also planning to operate the mall professionally by tracking footfalls

in the different areas of the mall to be able to identify weak areas and address

the issues accordingly.

ADVANTAGES OF PROFESSIONAL MALL MANAGEMENT

1.Ability to maximize revenue: A mall manager earns a fixed percentage of the operating revenues made by the mall a compelling reason for him to drive the revenues up to the maximum and to reduce the operating costs. Revenue sources include those achieved through rents, car parking, advertising and events. 2.Allows developer to concentrate on core business: A professional mall manager takes on complete responsibility of the mall, hence allowing the developer to focus on the core business (i.e., property development).

3.Value-addition to malls: The overall valuation of a professionally managed mall tends to be significantly greater than owner-managed malls. It has been observed that a professionally managed mall adds positive value to the land it has been built on in the very first year of operations. 4.Ease of exit from business: A mall owner can choose to exit the business at any point, without negatively impacting the overall mall operations. 5.Ensure transparency of dealings: A mall manager acts as an independent third-party mediator between the mall owner and the tenant. This ensures transparent and smooth dealings between the two parties. With a large number of malls in the pipeline, one of the critical factors that will distinguish one mall from the rest is the way it is managed. Over the next few years, professional mall management service will establish its significance in the industry.

OUTLETS IN A MALL

The outlets in a mall can be on the basis of three arrangements. They are:

Outright sale: In this the outlet is sold to the stand-alone outlet at the time of the development of the mall.

Lease: Under this arrangement the outlets are on rental basis whereby the retail outlet pays a fixed amount of rent every month to the investor. There has been decrease in Mall rentals since 2000: Although when

compared to models around the world, mall rentals are higher in India but there has been decrease in mall rentals since 2000. This is because of fall in property values, increase in supply, competition and reduction in novelty value. For instance, rentals in Crossroads have reduced by over 25% since

1999.

rentals in Crossroads have reduced by over 25% since 1999. • Revenue Sharing Basis: Under this

Revenue Sharing Basis: Under this kind of arrangement, a tenant would

give the mall owner a percentage of his revenues, with or without a minimum guarantee. (Few anchors pay the mall owners in advance for construction, the way it happens elsewhere in real estate development.) The agreement would vary for different tenants depending on the real-estate cost of the tenant - it would be low for an apparel store, whose inventory expenses will be higher, and high for a gaming and entertainment hub, which doesn't really require any additional expense after the machines have been set up. This is the simplest way for a retailer to minimise his risk. Even if retailers have poor sales, a large part of their turnover is not lost to rentals. Such agreements have other benefits. They could reduce tenant turnover significantly and ensure that the mall remains well occupied. They could also prompt the mall developer to look for ways by which footfalls can be increased, as that would be to his advantage

ADVERTISING:

There are various ways in which advertisements are done within the malls. They can be done either for the stand alone outlets present in a mall or even for any outside brand that is not situated in the mall. The brand wanting to advertise with the mall has to pay a certain amount of rent for the same depending upon the period and the type of advertisement. Moreover malls also undertake advertising to market themselves and make people aware of the happenings in the mall.

IN MALL ADVERTISING:

In mall communication includes the following methods:

Floor Graphics: These are graphic prints, which are put on the floor, and

the customers can notice them while walking. Because they are different they

make the customer take notice.

Door graphics: These are prints, which are put on the glass doors. So when a customer opens the door he notices the signage or the poster.

Standees: These are stands on which a branding visual is mounted. They

can be used for communicating about the promotions, launches, brands etc. If

they are done up properly they draw a lot of attention. A lot depends upon the visual, which has been used.

Flyers: These are handout, which are given to customers walking in a mall. They may also be used at newspaper inserts. They can be used for appraising the customer about the events, promotions, new launches etc.

Tent Cards: These are visuals which can be placed on tabletops, cash counters etc. they are a form of display.

Frontlits and Backlits: These are a form of display which are mounted on

the wall. Depending upon the location of the light it is termed as backlit or frontlit.

PA system: The PA system carries the sound throughout a mall. It can be used for making announcements as well as informing people about the happenings.

Scroller

Besides the above for advertising in a mall posters can be put in the elevators on

the escalator sides etc. The main aim is that wherever a customers vision goes, that area can be used for advertising.

EXTERNAL ADVERTISING:

Newspaper ads: Malls generally advertise in newspapers, magazines etc. These advertisements can be done for advertising about the events, promotions or launch of a new concept. Bombay times, Westside plus, Down Town Plus, Mid-Day etc are mostly used by malls.

Hoardings: Under this method of advertising, big hoardings are put up at

strategic locations in the city. People notice these hoardings and this helps to

create recall value.

Inserts: Fliers can be inserted in newspapers or they can be put in the

building letter boxes. This is cheaper than a newspaper advertisement and it helps to cover a wide area.

Bus Shelters: In this, posters are put on the bus shelters. This is similar to hoardings but it is on a smaller scale.

Radio Mentions: There are 2 methods of radio mentions; RJ mentions and

Radio spots. The trend of listening to radio especially FM has caught up a lot in

India especially in the metros.

Slides: A new method of advertising that is being used is a slide which is

projected during a movie at a theatre or a multiplex. Depending upon the timing

of the show, the desired audience can be targeted.

Internet: Pop-up screens are also increasingly being used by malls.

However not everybody has access to the net and there are many people who close the pop-up without reading. As a result one cannot measure the hit rate.

E-mailers: In this method, the malls send mails to a very huge number of

people informing them about the latest events and happenings at the malls. People are also informed about the offers that they can avail of at the mall. this

is a very cheap method of communicating with their target audience.

Direct Mailers: In this method, the mall sends direct mails to the residence of their target audience. This ensures that the people at least go through their letter unlike in case of E-mailers where the e-mail may be deleted. But however, in case of both the E-mailers and Direct mailers it is necessary for the mall to have a huge database of customers.

THE 4 A’s OF MALLS (different parameters for development of mall)

In August 2011, a group of marketing theorists like Philip Kotler, Jagdish

Sheth, Venkat Ramaswamy, Nirmalya Kumar and Jerry Wind gathered at Bentley College in Massachusetts, US to discuss the future of marketing. Some of them felt that Kotler‟s marketing mix is in trouble since it is not built around the customer and therefore an alternative framework called the 4 A‟s is suggested that is far more consumer-centric. The degree of success depends on how close to 100% a company is able to achieve on each of the 4 A‟s.

A simple formula is used to evaluate the overall marketing program. That is on

the basis of these 4 A‟s and is known as the „market value coverage‟.

Market Value Coverage = Acceptability*Affordability*Accessibility*Awareness

Since the malls are booming, I have considered the 4 A‟s of malls. Here I am discussing how the malls have addressed these A‟s. I have also mentioned why the malls are acceptable, affordable and accessible to the consumers. Furthermore, they are aware of these malls mainly because of the variety of promotions done at malls to attract people. It is because the malls are acceptable, affordable, accessible, and the mall mangers create proper awareness, more and more malls are coming up and hence the malls are booming. But we have to wait, for the future in order to see how many of these malls will actually survive in this face of fierce competition.

ACCEPTABILITY

Most Indian consumers have started preferring malls to other traditional formats of shopping. It is because of this preference amongst the Indian consumers regarding malls; we can say that they are gradually accepting the concept of malls. Following are the reasons for the preference and thus the acceptance of malls in India:

Convenience: The Indian consumers search for convenience and shopping

in a world-class ambience. People find that they have less time than before because of a number of factors that include the increasing number of nuclear families, working women, greater work pressure and increased commuting time. Hence they are looking for convenience, especially when it comes to shopping so that they don‟t have to run all over the city to complete their shopping. Thus they prefer shopping at malls since they provide the customers

with the different variety of products under one roof and hence prove to be convenient for them.

Ambience: Indian consumer prefers the infrastructure at malls. It gives him

an international shopping experience. Moreover for the SECA+ and SECA customers the ambience in mall is very important. They do not like to shop at places where the noise levels are excessively high, or a place which is not well maintained.

Entertainment: Families seek worthwhile entertainment combined with

shopping, food, and options like theatres, bowling alleys and gaming zones. The members of the family find what they need, in one mall, which offers provisions for entertainment, like multiplexes, culinary delights at food courts

that serve both Indian and international cuisine. The needs of the entire family can be met at 1 place. The children can amuse themselves with games; the wife with the household shopping and then can also dine there.

Product availability, quality, display and customer services: The

customers also pay attention to factors like product availability, quality, and

display and customer services. All the possible products from clothes to groceries etc. are made available at malls. Moreover, they are of superior quality. Consumers now have a wider rage of choices, as liberalization of the market for consumer goods has bought many well-known international brands to India and there has been marked improvement in the quality of local manufacturing.

‘Self-service’ format: This format of shopping has brought about great changes in customer behavior, leading to a higher propensity to purchase, when people are allowed touch and feel the products without unnecessary interference from sales attendants.

Thus we can say that the malls are acceptable because they look into customer value. Value from the point of view of customers is the experience that he gets while shopping at the mall. They basically look for experience shopping that is

“Shoppertainment” The malls effectively look into making the experience of the customer a memorable one by the fact that they give so much importance to ambience, entertainment, quality and display of goods etc

AFFORDABILITY

As mentioned earlier, the malls cater to the food, retail and entertainment related requirements of the consumer. Under each of these categories there are various options available to the customer. He can visit the outlet that best suits his requirement and is also within his budget. For example in case of food, there are many food outlets in the food court. Depending upon his budget he can either choose to go to an expensive Chinese restaurant or just have simple fast food. Similar is the case of retail. The customer can either go to a designer boutique or any other retail outlet to buy clothes depending upon his budget.

Thus the variety of outlets that offer a wide range of prices present in a mall caters to the affordability factor of its target audience.

Thus, malls are affordable because they try to address the consumer costs by providing variety of outlets that offer a wide range of prices to the customer. The customer can buy from whichever outlet best suits his budget.

ACCESSIBILITY

Since the malls are being preferred and accepted by people, more and more malls are being developed. In fact statistics say that India is all set to have over 230 malls, and quality retail real estate space of over 40 million sq.ft. of quality retail real estate space by 2006. This shows that the malls are coming up almost throughout the country and hence the accessibility of such malls will become even easier. In fact in Gurgaon, that is called the “city of malls”, has malls in

almost each and every street. A mall before coming up has to do the analysis of the location it plans to set up in. Location analysis has to be done keeping in mind the customer‟s “accessibility”. See Location Analysis.

Again malls are accessible since they look into consumer convenience. Convenience factor depends upon the location. To make the malls easily accessible to their target customers, malls are ensuring that they do proper

location analysis for the same

AWARENESS

There is awareness of the malls amongst the consumers, which can be ascertained by the fact that the malls are being tremendously accepted as mentioned earlier.

Basically the new malls entering the market try to create awareness about their mall in the market by way of promotions. Moreover even the existing malls try to increase the footfalls in their malls by way of promotions.

EVENTS & PROMOTIONS: AN EFFECTIVE TOOL

Events and promotions as mentioned earlier are an important tool for creating awareness about new malls as well as help in increasing footfalls in the existing malls that is it acts as an effective advertising tool. With so many malls coming up in India, each one has to develop strategies that would help them attract people at their malls. Besides other strategies

undertaken to attract crowds, all malls give tremendous importance to promotions and events. Promotions and events act as a major tool for advertising as well as attracting people to visit their malls. They act as effective crowd-pullers since these promotions and events are a source of entertainment for the target audience. Moreover they feel like participating in such events, promotions, and competitions etc. As a result, they may eventually land up buying something by looking around at the stuff available at the mall. So it proves to be an effective marketing strategy. In fact promotions at malls help in increasing footfalls to a very great extent even during time when people do not usually go shopping like the monsoon season. Usually different promotions and events at malls are held at different parts of the year that is from April to March. They are:

April - June: Summer Promotions

July-September: Monsoon Promotions (Sales, Offers)

October-November: Diwali Promotions

December: Christmas Promotions

January-March: End Of Season Sale (EOSS)

Hence we can see from above that Promotions and events conducted at the malls are very diverse. Most malls have promotional activities and events throughout the year which include events for kids, mothers, youth etc. This effectively enables malls to attract all the different age groups. Examples would be “Summer Programmes” for kids during vacations which would include games, drawing competition etc.; Fashion show for youngsters, culinary shows for women etc.

GEOGRAPHICAL PARAMETERS FOR DEVELOPMENT OF MALL IN BAREILLY

A mall before entering the market has to consider the factors which are mentioned below. If it properly plans and decides for the same then it might be able to gain competitive advantage and thus achieve success. The factors influencing the development of a mall are as follows:

LOCATION ANALYSIS

A proper analysis of the location has to be done before setting up a mall at a particular place. Location analysis typically comprises of two stages.

Market Potential: In this the market size has to be assessed on the basis of its

demographic and socio-economic profile (for example, total population base, age profile, income profile). It is also necessary to find out what is the level of spending/ownership and proportion of the population in various socio-economic classes (viz., SEC A, B, C). This enables a high-level assessment of the potential of various cities. A Detailed Intra-city analysis has to be done to identify the specific location best for the mall, within a selected city. In this step the various locations in a specific selected city are to be analysed and then the mall developer should come up with a ranked list of locations. The actual location decision will then depend on the following factors:

Proximity & Suitability: Proximity to, and suitability for, the target market, and the expected footfalls and conversions at the location, have to be taken into consideration under this. The same can be assessed through market research and relevant market Benchmarks

Cost factor: The cost impact of the locations is governed by both real-

estate-specific factors (such as availability and cost of real estate) as well as

non-real-estate factors (such as manpower costs and quality, availability of supporting infrastructure) around the location.

Parking: Reaching the mall or entering it should not be a challenge. The retail experience begins at the parking lot, and it must be addressed from that point onwards. In the foreseeable future, the experience and adequacy of parking will be a significant determinant of the mall's success. Firstly, it is not the absolute parking that is of importance or even of primary importance, but of how much more parking you have from the next, closest mall. However as parking is a crucial differentiator, parking must be planned with a five-year time horizon. The current thumb rule of one parking space for every 300 square feet of people space is already proving inadequate.

SEGMENTATION, TARGET MARKET, POSITIONING AND DIFFERENTIATION STRATEGY FOR MALLS

SEGMENTATION AND TARGET MARKET OF MALLS

The process of identifying subset consumers who have distinct, homogenous demand characteristics is called market segmentation. Market segment consists of a group of customers who share a similar set of wants. When a mall is opened in a particular area its main target area is called the cachement area and the people residing in that area are its main target audience Segmentation in case of malls is done on the basis of the income group a person belongs to. The segments that the malls usually target are the upper class and the upper middle class. But however with the rising income of people in the middle-class, an additional segment of people belonging to this class, also forms a part of their target audience. Under these segments the target audience of malls comprises of all that is kids, parents, youngsters and even adults. Malls have a combination of outlets that would cater to their wide target audience. For example: Kids can go to a mall just to enjoy themselves at the gaming zone, mothers can go to but groceries form the supermarkets and hypermarkets present at the mall and youngsters and adults can either go for entertainment like watching a movie or go shopping. Thus, the different outlets present at a mall would look into the various requirements of all people. The various requirements would be either of food, retail or entertainment. Since malls have all the above three, people can go to a mall to satisfy their respective requirement. Under these categories that is food, retail and entertainment, there are various outlets whereby the customer can visit any outlet depending upon his budget.

For example if a person goes to a mall to buy clothes, he has an option of either going to the expensive boutiques or just satisfying his requirement from any other retail outlet present at the mall.

POSITIONING OF MALLS

Positioning is the act of designing the mall‟s offering and image to occupy a distinctive place in the mind of the target market. The end result of positioning

is the successful creation of a customer-focused, value proposition, a strong reason why the target audience should visit the mall. Currently most operational malls are riding on the first mover advantage and the boom in the retailing sector (with a number of chains emerging) and have no clear positioning. Since there are a handful of organized retailers, malls generally have the same set of retailers taking up space. Therefore if one were to limit the discussion to “organized/ chain stores-type” retailers only, most Indian malls would look and feel the same.

DIFFERENTITATION STRATEGY FOR MALLS

Differentiation is a key word for success in any business. Malls usually differentiate with respect to retail/service mix, ambience, design, target consumer segment, and anything else that can be imagined. This means malls are trying to differentiate themselves on the basis of a few minor aspects that they feel would help gain competitive advantage. But however, such minor aspects do not actually help them in effectively differentiating themselves from their competitors since some malls have similar differentiating aspects which no longer would be then called a differentiating strategy.

RESEARCH METHODOLOGY

Data is collected from shopping malls and nearby areas in Bareilly . The target population for this study will be active mall shoppers and residents of nearby regions. A structured questionnaire was develop to measure the demand and spread of mall organized retailing & development of malls in Bareilly . The questionnaire consists of question concerning demographic and geographic information of respondent.

Research Design Exploratory.

Sampling Design Convenient.

Sample Size 100

Sampling Unit Shoppers and movers at mall & Residents of nearby areas.

Data Collection Standard Questionnaire.

Data Collection Technique Face to face interaction.

Lastly, the questionnaire also consist question to solicit demographic information of the respondent such as gender, age, household income and marital status. Convenience sampling technique will be used in selecting respondent. Questionnaire will be hand carried and personally explained to respondent by the interviewer. Interviewer gave instructions for completing the questionnaire and waited while respondent independently fill out the questionnaire.

Research Problems

The section will identify the limitations that the study suffers from. Each research in performed under certain limitations and they can have a profound effect on the results. Like others studies there are certain hindrances also.

Research Objective

Is to analyse the different geographic and demographic factors that are responsible for the development of mall in Bareilly .

To study which particular segments of malls are going to grow in Bareilly .

To identify the obstacles faced by the shopping malls that are not allowing this sector to further boom.

To study the customer satisfaction of malls.

To study the customer perception towards malls and traditional shopping.

To study the impact of shopping on eating outlets in the mall.

To study the impact on customer perception about entertainment, gaming etc.

The current retail scenario in India

The boom of organized retailing in India esp. malls

The factors that effect establishment of a new mall

Growth and Progress of malls

Marketing of malls

Viewpoint of retailers

Customers shopping behaviour

Future of malls

DATA ANALYSIS & ITS INTERPRETATION

Preferred place of shopping:

shopping

60 50 40 30 20 10 0 Retail Outlets Departmental Stores Malls Any Others
60
50
40
30
20
10
0
Retail Outlets
Departmental Stores
Malls
Any Others

The respondents prefer all the 3 options i.e. Retail outlets, departmental stores and malls more or less equally. This shows that the 3 formats can co-exist.

Whether shopped at a mall or not?

Have you ever shopped at a mall?

6% 94%
6%
94%

Target AudienceHave you ever shopped at a mall? 6% 94% Retail Outlets

Retail OutletsHave you ever shopped at a mall? 6% 94% Target Audience

94% of the target audience has previously been to a mall. Only 6% of the respondents have never been to a mall. This shows that though people may not really shop at mall, most of them have visited a mall at least once. This may be due to the novelty value.

Frequency of shopping:

Frequency of shopping 4% 10% 12% 6% 32% 36%
Frequency of shopping
4%
10%
12%
6%
32%
36%

Once a WeekFrequency of shopping 4% 10% 12% 6% 32% 36% Once a fortnight Once a Month Once

Once a fortnightFrequency of shopping 4% 10% 12% 6% 32% 36% Once a Week Once a Month Once

Once a Monthof shopping 4% 10% 12% 6% 32% 36% Once a Week Once a fortnight Once in

Once in 2-3 MonthsFrequency of shopping 4% 10% 12% 6% 32% 36% Once a Week Once a fortnight Once

once in 6 MonthsFrequency of shopping 4% 10% 12% 6% 32% 36% Once a Week Once a fortnight Once

any otherof shopping 4% 10% 12% 6% 32% 36% Once a Week Once a fortnight Once a

When asked about the frequency of shopping at a mall, a maximum 36% of the respondents said that they go once in 2-3 months, followed by 32% of the respondents who shop once a month at a mall. But only 4% of them shop once a week at a mall. This shows that people do not shop as frequent as 1 week at a mall. However, this may be possible since in general people may not shop so often. In that case whenever people shop they might always visit a mall for the same since 68% of the respondents‟ frequency ranges between 1-3 months

Like Mall shopping or not and reason for the same?

Do you like shopping at a mall?

8% 92%
8%
92%

YesDo you like shopping at a mall? 8% 92% No

NoDo you like shopping at a mall? 8% 92% Yes

Reason for liking to shop at a mall

40 35 30 25 20 15 10 5 0 Variety Ambience Convenint/ Good Quality Decent
40
35
30
25
20
15
10
5
0
Variety
Ambience
Convenint/
Good Quality Decent Crowd
Other
comfortable
facilities

As seen from above, 92% of the respondents like shopping at a mall. This is because of the variety and the quality they offer, ambience, convenience factor and the decent crowd visiting such malls. Whereas, only 8% do not like shopping at a mall since they find them either too expensive or they are located at far away places or they are too crowded.

Reason for going to a mall:

Why do you go to a mall for?

80 70 60 50 40 30 20 10 0 To shop Food and To hang
80
70
60
50
40
30
20
10
0
To shop
Food and
To hang out
To window shop
Any other

entainment

3/4 th of the respondents go to a mall to shop. But half of them also go to window-shop or for food and entertainment. Around 1/3 rd of the respondents just go to hang out. This shows that though there is a need for food and entertainment in a mall, they can only serve as add-ons. The main selling point in a mall will always be the retail portion.

Product categories:

Product Categories

90 80 70 60 50 40 30 20 10 0
90
80
70
60
50
40
30
20
10
0

3/4 th of the respondents usually purchase apparels at a mall. Almost half the respondents also go to shop footwear and apparels at a mall. 1/3 rd of them also purchase food and groceries from a mall. However, no one purchases health and medical products at a mall as of yet. However, there are a number of health product outlets like Health & Glow; The Medicine Shoppe etc are opening up in malls.

When people go shopping they want all their needs to be met under 1 roof. The mall should be a destination point for the entire family.

Average amount Spend:

Average Amount Spent

14% 2% 31% 12% 41%
14%
2%
31%
12%
41%

less than 500Average Amount Spent 14% 2% 31% 12% 41% 500-1000 1000-2000 2000-5000 >5000

500-1000Average Amount Spent 14% 2% 31% 12% 41% less than 500 1000-2000 2000-5000 >5000

1000-2000Average Amount Spent 14% 2% 31% 12% 41% less than 500 500-1000 2000-5000 >5000

2000-5000Average Amount Spent 14% 2% 31% 12% 41% less than 500 500-1000 1000-2000 >5000

>5000Average Amount Spent 14% 2% 31% 12% 41% less than 500 500-1000 1000-2000 2000-5000

As far as spending at a mall is concerned, 41% of the respondents like to spend around 500-1000 at a mall. However, 31% of the respondents do not mind spending around 1000-2000 at a mall too. But only 2% of the respondents are willing to spend above 5000 while shopping at a mall. This could indicate that many people still think of malls as more of an entertainment destination and a place for window-shopping.

Do Promotions attract them to visit malls:

Do promotions attarct you to shop at malls?

36% 64%
36%
64%

YesDo promotions attarct you to shop at malls? 36% 64% No

NoDo promotions attarct you to shop at malls? 36% 64% Yes

As far as the promotions are concerned, 64% of the respondents are attracted to shop at malls because of promotional activities undertaken at the malls. Whereas only 36% said that despite of the promotions, they are not inclined to go shopping at a mall.

This shows that a majority of people goes to malls because of the promotional events and activities held at malls. Hence, promotions prove to be an effective tool of advertising and attracting people at malls.

Entry-fee:

Would you go to mall, if it would charge an

entry fee 31% 69%
entry fee
31%
69%

YesWould you go to mall, if it would charge an entry fee 31% 69% No

NoWould you go to mall, if it would charge an entry fee 31% 69% Yes

When asked the respondents about an entry-fee being charged at malls, 69% of them said that they would not go to a mall that would charge an entry fee. Some of the reasons were that they felt that it was an unnecessary expense since whatever is available at a mall is available at retail outlets too. Some of them said that anyways they go for window-shopping so it is not feasible to pay an entry fee. However, some said that it would also depend upon the amount of entry-fee charged.

Whereas people who said that they wouldn‟t mind paying the entry fee felt that even if one would go to window shop at a mall it would be worth paying the fee because of the diverse collection made available at the mall that is of good quality.

Various services that one would like to avail of in a mall:

Wht services would you liketo avail of in a mall?

90 80 70 60 50 40 30 20 10 0 Baby Sitter Wheelchair MallMap Information
90
80
70
60
50
40
30
20
10
0
Baby Sitter
Wheelchair
MallMap
Information
PCO facility
Parking
Any other
(printed)
Desk
facility

Here, most of the respondents mainly wanted the parking facility, an information desk and a printed mall map. Around 3/4 th of the target audience wanted at least one of these or all these facilities. Other facilities like that of Baby Sitter, Wheelchair etc. was not much wanted by the people. However 1/3 rd of the target audience also wanted to avail the facility of a PCO in a mall.

LIMITATIONS

The present study will be conducted in Bareilly; however the data can be

extended to various other regions of India to get better result and

dimensions from different prospective.

The respondent unwilling towards the research is problem for conducting

the study.

The utilized for short span of time.

The data collected for some demographic parameter is only for few years.

This limits the research as the analysis would be more detailed if the data

is available for more years.

CONCLUSION

A lot of people perceive departmental stores as malls. So mall managers

should clearly position themselves so that such perception does not prevail in the minds of people.

Most people visit malls on monthly basis or even from time gaps ranging

between 2-6 months. It may even be beyond than that in some cases. So in order

to attract people to malls on regular basis, malls should organise promotions

and events regularly say on weekly basis. They can also come up with frequent offers for the customers that would attract people to come at malls.

Most of the people like shopping at a mall because of reasons like variety

offered, ambience, convenience, quality and the decent crowds at malls. Thus, mall managers should ensure that their mall looks into each of these factors effectively. Whereas there are a few people who do not like shopping at a mall since they feel that the malls are either too expensive, or are located at far away places or they are too crowded. In order to induce such people to visit malls, mall managers should do proper location analysis. They should ensure that their mall is centrally located so that it can attract most of its target audience. As far as the affordability factor is concerned, they should try and inform the people that their mall does not only have expensive outlets but also other outlets that would cater to their budgets. They may also come up with schemes, offers and discounts that would be beneficial to the customers.

Since majority of the respondents go to the mall for retail followed by people who go for food and entertainment, a mall manager has to ensure that he gives more importance to retail than to food & entertainment. Though around 10-20% has to be occupied by food and entertainment since they serve as add-ons but the malls managers should not forget the importance of retail in a mall. Thus, around 70-75% space should be allocated to retail.

RECOMMENDATION

Most of the people purchase apparels at malls, followed by people who

purchase footwear and accessories. The mall manger has to ensure that besides apparel outlets, there are enough outlets for footwear and accessories too so that

the customer has enough variety to choose from. Moreover, product categories like cosmetics; books; food and groceries; music; electronics; toys should not be ignored since people do visit malls for purchase of such product categories too.

Since not many people are willing to spend a huge amount at malls, mall managers should induce people to spend more by offering discounts, by

providing them with attractive offers like free items on purchases etc.

Since a majority of the people said that promotions do attract them to

shop at malls, all the malls should definitely undertake promotional activities from time to time.

More than a majority of the people said that they would like a mall to provide them with a printed mall map; an information desk and adequate parking facility. Thus, mall managers should definitely provide these facilities.

Moreover, other facilities like babysitter; wheelchair; PCO‟s can also be provided by the mall managers to attract people.

QUESTIONNAIRE

1)

Where do you normally shop?

Retail outlets Departmental stores Malls Any Other

2) Have you ever shopped at a mall?

Yes, then which one (s) No

3) How often do you shop at a mall?

Once a week Once a fortnight Once a month Once in 2-3 months Once in 6 months Any Other (Please Specify)

--

4) Do you like shopping at a Mall?

Yes No (Please specify the reason)

5) What do you usually go to a Mall for? (Tick more if you like)

To Shop Food and Entertainment (like movies, eating etc.) To hang out To window- shop Any Other Reason (Please Specify)

6) What product categories do you/ would you purchase at a Mall? (Tick more if you like)

Apparels Cosmetics Footwear Accessories Electronics Toys Food & Groceries Music Books and Magazines Medical and Health Products Any other (Please Specify)

7) On an average how much do you spend at each visit to a mall?

Less than 500 Between 500-1000 1000- 2000

2000-5000

5000 and above

8) Do promotions attract you to shop at Malls?

Yes

No

9) Would you go to a mall if it would charge an entry-fee? (Support your answer with reason)

Yes

No

_

10) What are the services that you would like to avail of in a mall? (Tick more if you like)

Baby Sitter Wheelchair Mall Map (printed) Information Desk PCO facility Parking facility Any other

BIBLIOGRAPHY:

BIBLIOGRAPHY

Books:

Marketing Management : Philip Kotler Research Methodology : C.R.Kothari

Internet: