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proposal
  Triangle Mall
Management, for    
TriCities Office,
1 Triangle Square,
NOIDA

As Sunflowers looks to expand its operations this year, we feel that there is a natural fit between your
company's goals and our proven developments that offer retail, entertainment, and dining options for
residents of upscale areas with exceptional disposal incomes and exclusive lifestyles.

We believe that our "unmall" mall developments, with their elegant architecture and extensive
landscaping, perfectly fits the image you seek for Sunflowers. Our park-like streets and casual fine
dining anchors create an award-winning environment for retail sales. Our extensive competitive retail
analysis coupled with our exclusive demographic and geographic profiles, regional economic analysis,
and sales potential forecast analysis ensure that our developments maximize your business opportunities.

We at Triangle Mall Management realize that your store opening strategies have been guided primarily
by the number of square feet per location. However, we would like to suggest that our proven track
record at improving sales for small chain stores is applicable to you.

To that end, we have reanalyzed your store sales sample of 14 locations to include the average
disposable income of the areas surrounding each store in the sample. As you can see from the data, there
is a strong correlation between sales and the average disposable income of each surrounding community.

Because Triangle Mall Management establishes its centers only in areas of exceptional affluence, those
in which disposal income is no less than Rs.65Lakhs, we project, based on your 14-store sample, that
Sunflower shops in our developments will do no less than Rs. 10.6 crores in sales. We note that some of
stores in your sample do much better than this and we would expect the same for any stores established
in Triangle developments.

Please review the 14-store data sample: (Following table) and when you are satisfied, give us a call at
your convenience.

Respectfully submitted,
The Triangle Mall Development Team
 Stor Average Disposable Annual Sales
e Income(Rs. Lakhs) (Rs. Crores)
1 22.3 3.7
2 36.6 3.9
3 55.5 6.7
4 46.7 9.5
5 32.4 3.4
6 31.7 5.6
7 41.6 3.7
8 21.4 2.7
9 44.4 5.5
10 34.1 2.9
11 51.8 10.7
12 45.1 7.6
13 52 11.8
14 49.2 4.1

Assignment Questions

1. Should the mean disposable income be used to predict sales based on the sample of 14
sunflowers stores?
2. Should the management of Sunflower accept the claims of Triangle’s leasing agent? Why or why
not?
3. Is it possible that the mean disposable income for surrounding areas is not an important factor
in leasing new location? Explain.
4. Are there any other factors not mentioned by the leasing agents that might be relevant to the
store leasing decision?