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LALA LAJPAT RAI COLLEGE OF COMMERCE &

ECONOMICS

Topic: Success of Malls lies in the hands of mall

developers.

TYBMS C

SEMESTER: VI

FOR ACADEMIC YEAR

2013-2014

GROUP DETAILS:-

Akshit Kothari 1112261

Jay Samani 1112223

Aarsh Parikh 1112246

Rohan Nihalani 1112291

Benaz Katgara 1112187

Virali Shah 1112220


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INTRODUCTION

A shopping mall, shopping center/centre, shopping arcade, shopping precinct,or simply mall is one or more buildings forming a complex

ofshops representing merchandisers, with interconnectingwalkways enabling

visitors to walk from unit to unit. Shopping malls often have parking garages or

outdoor areas in which visitors can park their vehicles while they are inside the

establishment. Shopping malls are a modern, indoor version of the traditional

marketplaces.

As traders moved into more spaciousshops in the early 19th centuryhigh

streetsdeveloped, but wealthier people (who could afford to travel to city centresfor pleasure) started wanting shelter fromrain, soshopping arcades were

developed. With new innovations likeescalators these evolved into shopping

centres and with the rise of the automobile these evolved into shopping malls.

From early on, the design tended to be inward-facing, with malls following

theories of how customers could best be enticed in a controlled environment.

Similar, the concept of a mall having one or more "anchor stores" or "big box

stores" was pioneered early, with individual stores or smaller-scalechain

stores intended to benefit from the shoppers attracted by the big stores.

Selecting the best location or site for an outlet is a fundamental decision for any

retail business. Location affects customer patronage, market share, salesrevenue, and profit-and consequently the long-term performance and viability of

the business itself. In turn, the performance of businesses at a given location

affects the occupancy and rental rates that the property can achieve. A well-

located retail center can be successful even in a weak economic environment or

an overbuilt market, while a poorly located center may eventually fail.

Therefore, understanding how location affects a retail business is paramount tothe success of owning or investing in shopping centers.

A recent survey of experienced leasing and sales brokers, appraisers, investors,

and lenders provides some insight into selecting successful retail locations.

Specifically, the survey results indicate what criteria real estate professionals

consider predictors of a successful shopping center. The study, conducted in

metropolitan Denver, included 114 practitioners, at least 80% of whom had

more than six years of retail experience and 50% of whom had more than 11years of retail experience.
http://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/High_streethttp://en.wikipedia.org/wiki/High_streethttp://en.wikipedia.org/wiki/Rainhttp://en.wikipedia.org/wiki/Shopping_arcadehttp://en.wikipedia.org/wiki/Escalatorhttp://en.wikipedia.org/wiki/Anchor_storehttp://en.wikipedia.org/wiki/Big_box_storehttp://en.wikipedia.org/wiki/Big_box_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Big_box_storehttp://en.wikipedia.org/wiki/Big_box_storehttp://en.wikipedia.org/wiki/Anchor_storehttp://en.wikipedia.org/wiki/Escalatorhttp://en.wikipedia.org/wiki/Shopping_arcadehttp://en.wikipedia.org/wiki/Rainhttp://en.wikipedia.org/wiki/High_streethttp://en.wikipedia.org/wiki/High_streethttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Retailing


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OBJECTIVES OF THE STUDY

1. To study the consumer behaviour while purchasing different products fromshopping malls.

2. . To study the services offered by shopping malls to their customers.

3. To study the preference of customers between shopping malls and

departmental stores.


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RESEARCH METHODOLOGY

SCOPE OF THE STUDY

Scope of the study is considered only for shopping malls in metros of India.

DATA COLLECTION

This study is descriptive in nature. Secondary data has been used to collect the data. The

information is collected from magazines, internet, business articles and trade journals

RESARCH LIMITATION

The study was restricted only to the malls in India. Keeping in mind the time constraint. and

the study of malls.

.


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DATA PRESENTATION

Six Factors That Determine a Malls Success

1. Comfort

Early malls designed to create the most retail space with the least cost. Traffic

flow was constricted, with a single entrance/exit and crowded, dead-end

corridors. Only the occasional hard bench was provided to allow shoppers some

rest.

Modern mall design focuses on the consumer first, because uncomfortable

consumers mean fewer footfalls and declining business. Forward-thinking mall

developer Westfield Group worked with tvsdesignto develop a comprehensive

amenities package for the furniture, area rugs and accessories in its 57 U.S.

retail centres common areas. Large open areas with comfortable soft furniture

and decorative touches transform a day at the mall into a relaxing, pleasurable

experience.

2. Diversity

Historically, shoppers seeking a specific product or category were forced to

search the mall for their items a tiring, frustrating experience. Malls today

view diversity differently not just a very wide variety of retailers, but a

planned selection of retailers organized to provide convenient shopper access.


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The new North Country Mall in Punjab is a great example. North Country Mallvertically stacks different price points and merchandise zones on different

levels a practice seldom seen in Western malls that permits a broader retail

selection on a smaller geographic footprint.

3. Luxury

Newer malls strive to create a luxury hotel ambience for shoppers.

At tvsdesignwe call this resort retail, with an emphasis on creature comfort

and providing a hospitality experience with the same kind of amenities youdfind at a fine resort. Social gathering areas and services like concierge and a

VIP arrival area help create this resort ambience.

4. Mall Essence

Mall essence is harder to define, but it boils down to branding the retail

environment and the shopping experience. Consumers are seeking a shopping

experience that makes them feel comfortable, encourages them to stay longer

and, more importantly, persuades them to return. New malls can meet or exceed

these needs and consumer expectations by creating iconic shoppertainment

locations.

We at tvsdesigncall this placemaking. Placemaking means crafting a

relaxed environment that allows consumers to take home a memorable

experience one that they want to experience again and again. And that

includes almost every element of the mall retailer selection, mall design,

dining options and amenities.

5. Entertainment


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Entertainment is one of the elements in placemaking, and it applies to every

aspect of the mall that encourages shopper enjoyment. Areas for local

community celebrations and festivals, among them an outdoor plaza,

amphitheatre, and outdoor food court terrace are all planned as social

gathering places.

Mall dining areas are another essentialfeature of 21

stcentury malls, and should be more than just fuelling areas. Plaza

Egaa in Santiago, Chile, has restaurants on the roof of the mall that offer great

views and open space. Together with a multi-screen cinema, an IMAX theatre, a

food court and a jazz club, they help create a powerful entertainment

destination.

6. Convenience

Convenience covers a number of aspects of mall design. Is the facility close topublic transportation, and can that be incorporated into the design, as Plaza

Egaa has? Is sufficient parking available to accommodate a busy shopping

day? Does that parking area support multiple entry points to avoid crowding and

congestion? Does the array of retailers match the needs of local shoppers?
http://www.tvsdesign.com/markets/retail.aspx:/


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Reasons why mall developers are highlighted in the construction

of the mall

Positioning of a mall

"Mall management isn't just about controlling the crowds and security, but it

starts right from the time when the mall is being designed. Before building a

mall, it is very important to understand the demographics of the area. Youcannot plan a super-luxury mall, in an area where the spending power is not

much," says T Anupam, associate vice-president, Korum Mall. Korum is a

newly-opened mall in Thane, along the Eastern Express Highway.

Location of the mall is one of the main factors that decides its success. Good

visibility and access via roads are some of the main prerequisites for a mall.

Zoning of the mall comes next. This essentially means, deciding which tenants

would occupy what space and where. It is very important to have the right mix

of tenants at the right place, so as to ensure smooth flow of customers.

Promotions and marketing

You have to create visibility in the market, to get the desired footfalls. Timely

events and promotional activities in the mall, will make sure that you remain in

the news. Food festivals, exhibitions, film promotions, are some of the

examples of promotional activities that malls often undertake. According toJain, the challenge today, is to constantly keep the interest of the people high.

"We talk to our retailers on a regular basis, to know the consumer trends," he

explains.

Facility management

Facility management refers to the integration of people, place, process and

technology, in a building. It means optimal utilisation of resources, while

ensuring well being of the tenants, providing good ambience and traffic

management. "You have too see to it that all things promised to the retailer are

being delivered, that the ambience of the mall is maintained and there is a

smooth flow of traffic, along with enough security," says Anuradha Gandhi,

business head, Property Solutions.


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CONCLUSION

The study gives an insight about the opportunity as well as the challenge of

building customer loyalty for Shopping Malls in India as more and more

Shopping Malls are opening up in the country especially in big cities and

metros. To conclude, the increase in Shopping Mall retail space provide

sufficient space for new brands but it also results in more options to the

customers, which results in low customer loyalty towards a specific Shopping

Mall. To retain customers, Shopping Malls are undertaking several strategies

and tactics like extra services, better facilities etc. As the customer loyalty is

becoming more crucial, differentiation in terms of consumption chain or the

customer experience can help in building the desired loyal customer base tofight against the nearby Shopping Mall.


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SUGGESTION

Providing wide variety of merchandise is important. Having big brands to

attract higher spenders and also having normal merchandise brands and

quality and utility products is important.

Combination of high-quality merchandise and also the normal

merchandise has to be there. So that even people with low-pockets

spend more. And striking the balance between them is too important.

Products have to be priced smartly. High priced products should be

there. Also on the other hand medium and low priced products are

there. So money is generated from the spenders of all the size and mallcan also hold onto the spenders of different potential.

Striking the balance between the products of different sizes is very

important.

Location of the mall has to be chosen very smartly. It should be made

sure that it is in a good area and also the reach and convenience has to

be kept in mind. This also has a severe trade-off with increasing real

estate prices.

The structure of the mall has to be good. It has to have a good ambience

and has to have facilities. It has to be very well organised and has to

have trained representatives.

The mall has to have proper information kiosks and sign boards and

assistance when needed.

Mall can have many entertainment activities to increase the foot-falls.

Adapting to local culture is extremely important. Malls just dont have to

be the replicas of western culture. They have to adapt to local culture. Different consumers have different buying, spending, and consuming

habits. Malls have to position themselves accordingly.


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Annexure

Questionnaire

Sir/Mam,

As a part of our BMS curriculum, I have undertaken a research study of the factors affecting buying

behavior in shopping malls in Ahmedabad. Please spend your valuable time to respond to following

questions. I ensure that information provided by you will be used only for academic purposes.

Name:

Address:

Gender:

Age: Below 25 25-35 35-45 above 45

Education: Graduate Post Graduate Other______

Family Income: _________

1.

Quality of merchandise in the shopping malls attract me to shop from the shopping malls

Strongly agree agree neutral disagree strongly disagree

2. I prefer to shop from malls as branded and wide variety of products is available.


3. I dont mind traveling a bit(more than 3kms to go to shop at shopping malls.


4.

I dont mind paying a high price for shopping from shopping malls.


5.

I purchase these product from shopping malls.

5.1

Vegetables, grocery and dairy

5.2Household items

5.3

Clothes and cosmetics

5.4Electronics and furniture

5.5Others

6.

I like to have a complete shopping experience when I shop. The ambience, facilities and

atmosphere play a major role while shopping.



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7.

I believe that services, approach of representatives, culture in the mall play an important

role


8.

When I go for shopping

8.1 I do window shopping

8.2 I have specific thing in mind

8.3

I go for entertainment

8.4

I go because malls are status symbols

Thank You!!!


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REFERENCES

Official website of Indian Retail Forumwww.indianretailforum.net

Jain(2009) Location Factors Retrieved fromwww.indianretailforum.com

www.emerald.com

www.thehindubusinesskine.com

www.deadmalls.com

Retailing shopping(Suite101)

http://www.suite101.com/article.cfm/retailing_shopping/65949
http://www.indianretailforum.net/http://www.indianretailforum.net/http://www.indianretailforum.net/http://www.indianretailforum.com/http://www.indianretailforum.com/http://www.indianretailforum.com/http://www.emerald.com/http://www.emerald.com/http://www.thehindubusinesskine.com/http://www.thehindubusinesskine.com/http://www.deadmalls.com/http://www.deadmalls.com/http://www.suite101.com/article.cfm/retailing_shopping/65949http://www.suite101.com/article.cfm/retailing_shopping/65949http://www.suite101.com/article.cfm/retailing_shopping/65949http://www.deadmalls.com/http://www.thehindubusinesskine.com/http://www.emerald.com/http://www.indianretailforum.com/http://www.indianretailforum.net/

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