Course Code: MKT509 Course Title: CONSUMER BEHAVIOR

Course Instructor: Divya Kalra

Academic Task No.: 02 Academic Task Title: CASE BASED

Date of Allotment:16/03/2020 Date of submission:26/03/2020

Student’s Roll no: RQ5E52B23 Section: Q5E52 (Group 2)

Student’s Reg.no: 11906662
Evaluation Parameters:

Learning Outcomes: (Student to write briefly about learning obtained from the academic tasks)

To improve the analytical skills & make able to understand the practical situations
Prevailing in the organizations/situation given in the case

Declaration:

I declare that this Assignment is my work. I have not copied it from any other student’s work or any
other source except where due acknowledgment is made explicitly in the text, nor has any part been
written for me by any other person.

Student’s Signature: Varish Priya

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement The best part of the

assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: ______________

INTRODUCTION
K11 Shanghai is an innovative shopping mall housed in a skyscraper with six
floors of retail, dining and art experiences. K11 describes itself as an ‘art
playground, where ideas, trends, and lifestyles collide to form new ideas and
new inspirations’. The concept is completely different from shopping malls
found in the UK and could inspire a fresh approach to retailing. Mintel's
research suggests a similar ‘museum retail concept’ may have the greatest
appeal among UK Millennials.
The retail offering mainly consists of luxury brands mixed with mid-market
names and contemporary Chinese brands. Currently making an appearance at
K11 is Danish homeware and furniture brands HAY, which is hosting a pop-up
space, the HAY Mini Market, between October and December 2015.

K11 isn’t only about the material though; its focus on nature means an entire
floor is dedicated to ‘urban farming’ where herbs, chillis, and other edible plants
are grown – to reconnect Shanghai to nature. Other features include a ‘Dairy
Cow Academy’ where live cows are being kept in pens – not something we
would suggest for the UK retail market, but it certainly demonstrates K11’s
commitment to creating an immersive and novel experience.

K11 MUSEA has taken note of research highlighting Asian millennials as

“Super Consumers”. They are set to drive global consumption with their
spending power set to reach US$6 trillion by 2020. Travel is a key lifestyle
feature and they see travel and luxury as key factors in an indulgent lifestyle
reflective of social status.

Art and culture are also important and K11 MUSEA will host a world-class
public art collection. The 2,000square-foot Sunken Plaza amphitheater is a key
feature with a facade featuring conical-shaped glass panels. Programmed water
patterns and a misting system are also planned. A large LED screen will also
turn Sunken Plaza into an immersive venue for live theatre and music, and film
festivals.

PROBLEM
This case describes the unique concept of "museum retail" that was
introduced and championed by Adrian Cheng, founding father of the K11
Group and K11 Art Foundation. His mission is to assist the ecosystem of art
and culture among the young generation and to bring art to his customers
through art exhibitions and education during a retail mall setting. The core
values of K11 are art, people, and nature all integrated into an art mall
environment. the primary K11 Art Mall opened in Hong Kong in 2009. It
became the forerunner of the K11 Art Malls at several major cities in China
Shanghai, Wuhan, Shenyang, and Guangzhou.

This case highlights the role played by Rebecca Woo (Senior Director,
Operations, Hong Kong, K11 Concepts Limited) in fulfilling the mission of
K11 while maintaining a robust position in an increasingly competitive
market. She focuses on the millennial customers, the fastest-growing
segment within the retail market. These customers are highly interested
in the unique blend of art and commerce and therefore the emphasis on the
shopping experience. K11 engages them by considering multiple factors that
influence their motivation. Using K11's Christmas program in 2017 as an
illustration, this case offers the scholars a tour of the design, design,
development, and launch of a highly successful marketing program.
Importantly, the case illustrates how K11 creates a singular multisense
experience that influences customers' feelings, thinking and behavior.
The main issue of the problem to Chinese millennials are the most coveted
group in the tourism industry – they’re getting richer and yearn to travel more –
but it can be difficult to know how to best market to these consumers. With
millennials being more independently-minded and wanting experiences and
culture as much as shopping experiences, strategies may need to be turned on
their head to appeal to them.

The K11 Art Foundation (KAF) – founded by Adrian Cheng in 2010 – is a non-
profit organization promoting contemporary art and fostering arts appreciation.
With a specific focus on Chinese contemporary art, it has presented over 60 solo
and group exhibitions featuring works of emerging Chinese artists in different
parts of the world.

SOLUTION
They can take the strategies of the marketing segmentation in their retail and
although marketplaces often lookout of delivering the merchandise to the
top consumer, getting your product to their warehouses may present some
logistical challenges. Luckily for SMBs, outsourcing your shipping and
fulfillment is an option. Two of the strongest vendors to think about are
Amazon FBA and 4PX. Both are strategically located and have large
warehouse and distribution systems.
When selecting a vendor, you've got three serious considerations.
First, check out proximity to the marketplace for fast delivery to centralized
warehouses. Next, determine if size/fulfillment capacity can grow together
with your business? And lastly, don't overlook logistics in terms of shipping
options, turnaround, and costs.

The study undertaken was analytical. After all, it describes the state of
affairs, because it exists. A broad survey served to supply general
information about the stores. during this research, data on the retailers‟
population in Tirupur were collected from documents and records (Office of
Tirupur Registering Commerce). There are approximately 500 enterprises
registered within the Tirupur Municipal area and suburbs. thanks to the
precise sort of goods sold being unclassified, observations were used for
categorizing the shop format.120 Retailers are selected as sample
respondents for the study. A stratified sampling technique has been used for
this study. to research the objectives of the study, statistical technique
Descriptive statistics, ANOVA and Kendal coefficient of concordance
have wont to test the influence of 1 variable with other variable taken for
study

STRATEGIE
Retail marketing is comprised of the activities associated with selling
products on to consumers through channels like stores, malls, kiosks,
vending machines or other fixed locations. In contrast, marketing to
consumers attempts to finish a purchase through phone, mail or website
sales. The successful implementation of the components of the
normal marketing mix (product, place, price, and promotion)  is important for
fulfillment in retail marketing. Retail marketing strategy has got to create
interest and converse store planning concept to customers by way of
developing a competitive retail marketing review, by targeting customer
behaviors and by identifying the branding. An analysis of internal
environmental factors, marketing mix plus performance analysis and
external environmental factors customer analysis, competitor analysis,
target marketing research, also as technological, economic, cultural or
political/legal environment likely to follow the success of the market plan.
Each market plan has got to specialize in monitoring the progress and set of
contingencies
That ‘contemporary’ culture Cheng refers to is the maximum amount about
the art because the way it’s presented, says Rebecca. Exhibitions that
make interaction through digital formats, for one, are central to the present.
So are the games and integrated photo opportunities for those with a
penchant for Instagramming their every waking moment. Meanwhile, a year-
round offering of art-specific events to stimulate the space includes a
program of talks and concerts. “The point is there has got to be engagement
between the art and people who visit the mall.”
But sales remain important – it’s a mall in any case . “We merge exhibitions
with the entire customer experience. That goes right from the marketing
campaigns to customer service. It’s also about pushing products for our
tenants which suggests we ask them beforehand of our themed exhibitions to
ascertain how they will be relevant to what’s on display whether it’s
designing specific products or creating an adapted F&B offering.”
Nowhere is that the need for changing the brand image in Chinese
consumers’ minds more important than in Hong Kong. While Hong
Kong remains the undisputed leader in terms of Chinese tourist arrivals
(Hong Kong is technically an outbound tourism destination), it's began
to lose its luster as Chinese travelers, and particularly millennials, are
seeking other destinations. While Hong Kong is different from mainland
Chinese cities, to many, it’s mostly a tax-free shopping haven shortly from
home.

CONCLUSION
After reading this case we get to know the market segmentation and how we
finalize our strategies and knowing the competitor. Also know the current
practical situation of the company and how they survive with their
circumstances. This case also help in figure out the ups and down of the
company and the financial strategies of the company. The case suggests that the
local competitors came up with the innovated products and they provided
customized and on demand-hands-on service to customers. And because the
service is customizable, and they successfully differentiated their product from
the rest, they charged highly for their services. But it is only possible to provide
such services with the kind of business model they are following. In this
business model of customized services, there are certain limitations which are-
they cannot afford to make the customer wait for long, they need to be in direct
contact with customers for customization, they need to customize their
production according to the demand.