SALES AND DISTRIBUTION MANAGEMENT

MALL MARKETING











Mall:
Mall is a large, oIten enclosed shopping complex containing various stores, businesses,
restaurants and oIten movie halls usually accessible by common passageways. Malls oIten
incorporate a concept oI Anchor Store. Anchor store is that shop which covers the largest
Iloor space covering about two to three Iloors e.g. LiIestyle, Shoppers Stop. It is also
responsible Ior maximum IootIalls in the mall.
Background:
With over 100 malls operating in India and more than 300 being developed, the opportunities
oIIered in the retail landscape are immense. Mall space is expected to touch 60 million square
Ieet by end-2008. The emergence oI specialty malls is a step in this direction.
Retailers today Iace many challenges, including increasing competitive pressures, thin
margins, high occupancy costs and unpredictable supply base that come in the way oI their
attaining operational eIIiciency and proIitability. As organized retail grows, the market will
only become more competitive and developers will have to work hard to diIIerentiate. Faulty
mall management along with inappropriate tenant mix would lead to poor mall traIIic and
closure oI individual stores in malls. ProIessional third party mall management service
providers are hence likely to come to the Iore. They not only understand these business
challenges, but also have the ability to help retailers eIIectively deal with them.
Need for Mall Marketing:
O The unique challenges Iaced by stakeholders, marketers, managers and retailers oI
shopping centres or shopping malls that sell product and service oIIerings to
consumers and developing solutions Ior dealing with these challenges that will help
major role players in the shopping centre industry to become eIIective product and
service oIIering champions.
O The designing oI an appropriate marketing mix strategy Ior shopping centre is a
diIIicult and a complex process, the implementation oI the marketing mix itselI Iaces
a number challenges Ior stakeholders, marketers, managers and retailers.

!ositioning a mall
Positioning a mall reIers to deIining the category oI services oIIered based on demographics,
psychographics, income levels, competition in neighbouring areas and extensive market
research oI the catchment. For example, iI the market research indicates that the average
number oI households living in a particular area belongs to the upper middle class, then a
high-end retail mall would suit the location. An example oI this practice can be seen in the
upcoming malls, Select City Walk in Saket and DLF`s Emporio in Vasant Kunj. We believe
that these retail developments are prime examples oI good mall positioning. These malls have
been speciIically designed aIter an extensive market research, based on the catchment area oI
South Delhi. The malls provide high-end luxury products catering to the elite class (socio-
economic classiIication A and B consumers) residing in South Delhi.Positioning also reIers
to the location oI the shopping mall. A good location deIined in terms oI Iactors like ease oI
access via roads, good visibility, etc. is considered as one oI the prime prerequisites Ior a
mall. Although other activities such as trade/tenant mix can be revisited or redeIined, the
location remains Iixed, making it an imperative Iactor Ior a mall.

!romotions and marketing
Promotional activities and events in a mall Iorm an integral part oI mall management.
Activities like Iood Iestivals, handicraIt exhibitions and celebrity visits increase Ioot traIIic
and in turn sales volumes. Organising cultural events has time and again proved vital in
attracting consumers to a mall. Such activities may also act as a diIIerentiator Ior a mall.
Developers can work on draIting marketing strategies Ior individual malls to meet the needs
oI the local consumer base and the challenges oI local, and in some cases, regional
competitors.
Ansal Plaza, the Iirst mall in Delhi, is an example oI a successIul mall led by good
promotions and marketing mall management practices.


acility management
Facility management reIers to the integration oI people, place, process and technology in a
building. It also means optimal utilisation oI resources to meet organisational needs. It
broadly includes inIrastructure, ambience and traIIic management.
a. Infrastructure Management InIrastructure management reIers to the management
oI Iacilities provided to the tenants within the mall. This includes provision oI
adequate power supply, saIety issues in case oI emergency and miscellaneous issues
related to signage, water supply, sanitation, etc.. These Iorm an integral part oI mall
management as they are the basic amenities that any tenant would look Ior in a mall.
InIrastructure management also includes risk management issues such as essential
saIety measure asset liability and environmental audits as well as emergency and
evacuation training.
-. Am-ience Management The overall shopping experience provided Ior consumers
becomes an important Iactor Ior the success oI any mall. Ambience management
includes management oI parks, Iountains and overall look oI the mall. A mall is not
just a place Ior shopping but is also a place where people spend their leisure time. In
Iavourable, lush green landscaping with seating Iacilities and the presence oI Iood and
beverage inside or outside the mall can increase Ioot traIIic.
c. Traffic Management TraIIic management includes managing Ioot traIIic into the
mall and parking Iacilities. Foot traIIic management involves crowd management
inside the operational area oI a mall. The Ilow oI people is related to the design oI the
mall and the spatial distribution oI its tenants. For example, a star-shaped mall tends
to have a problem oI crowding in the centre oI the mall, as everyone has to pass
through the centre while moving Irom one side to the other. Circular malls, on the
other hand, would not have this problem. They tend to have better pedestrian Ilow and
less congestion. Managing parking Iacilities includes provision oI ample parking and
manoeuvring oI cars in the parking lot.


inance management
ProIessional Iinancial management oI a mall as a business venture is a must. Mall
management also covers Iinancial management, which involves monitoring and controlling
oI various issues such as:
a. cash receipts and collection oI income including rentals, service charges, car park
receipts, electricity and other utility income
b. developing accounting systems to track the ageing oI debts, payment delay patterns,
bad debts and payment oI all invoices and expenses
c. developing standard Iinancial templates so that a detailed annual property budget is
prepared
d. at times, organising resources to deliver an eIIicient and eIIective annual external
audit