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AV Vindhya Ankit Kumar Abhishek Dutta Abhishek Sharma Deepika G V S B Sarada Devi Kamalika Chakroborty September 5, 2011 1
as James J. Targeting and Positioning for consumers / shoppers. Salient examples include Rivali Park in Kandivali-Mumbai. driven by the concept of providing a total quality lifestyle in one locality with residential. ft. school/college and workplace. India is now the fifth largest retail market in the world having over 200 malls with total retail space of approximately 56 million sq. Pune. 2 . Finally. After a successful initiative in Malad-Mumbai. shopping malls in India have grown tremendously over the last decade. This will lead to higher commitment and absorption of shopping centre space. developers are trying to gain a national traction under a common brand name.Introduction In tandem with the retail boom in India. office & hospitality spaces. "The introduction of FDI in multi-brand retail will lead to increased demand. the developments around FDI in retail are opening up new opportunities in the mall space. Shopping malls have become key element of the shopping experience of Indian consumers. Nirmal Lifestyle Mall in Mulund-Mumbai and City Center in Kolkata. Farrell. it has opened 4 malls in Vashi. In another development in the mall space.” As a result malls are drawing in more consumers and higher footfalls. the author of One Nation Under Goods: Malls and the Seductions of American Shopping puts it. but people do move to the suburbs because of the malls. retail. Sanjay Dutt. Bangalore and Hyderabad under the Inorbit brand. Moreover. and also capturing maximum amount of time of shoppers. CEO of Jones Lang LaSalle from a news article. The analysis is based on the study of consumer responses collected in Kolkata’s South City mall and City Centre mall. entertainment. A salient example is that of K Raheja Group promoted Inorbit Mall." What does this report contain? This report contains an analysis of shopping malls with respect to the Segmentation. This development is driven by the notion that a multi-city presence helps in attracting the retailers and cosmopolitan consumers by leveraging the brand value gained in one city. Shoppers look for avenues where they can shop conveniently and spend time comfortably interacting their friends and colleagues in an environment different from home. With virtually no shopping malls a decade back. Another development in the mall space are the increasing number of malls which are being developed or converted to be a part of a large integrated townships. The malls have come up as a suitable and convenient option to meet this need. To quote Mr. “Malls go to the suburbs because people are moving there.
mall managers realized the need to adopt segmentation strategy to target specific consumer segments and position or reposition the malls to attract the target consumer segments. This necessitates consumer segmentation.Why STP? Fuelled by several demographic and lifestyle trends. Recognizing the importance of constant targeting and positioning. targeting and positioning for retailing success. consumer market has become heterogeneous with respect to consumer demographics and psychographic profile. Due to declining sales of their mall tenants and the direct relationship between shopping mall profitability and tenant productivity. this report aims to perform the STP analysis of two prominent shopping malls in Kolkata and make recommendations accordingly. 3 . during the 1990-2000s the competition among the malls in the US increased coupled with transition of consumer market from a mass market to a heterogeneous market. To draw from the experiences of US mall space.
The Indian customs and traditions also ensure that the festivities are accompanied by new clothes. In India consumers generally buy when boosted by certain specific occasions like festivals. etc. targeting and positioning of the shopping malls . wedding season. In order to identify the segments. A shopping location that caters to the diverse interests of the family while solving the issue of convenience would draw repeat consumers. It gives them an occasion for spending quality time along with their families.Since each consumer has a different set of needs and wants. The consumer will be mainly driven by his or her behavior towards shopping depending on the fact whether that person considers shopping as a chore or a fun activity or is constrained by time and cannot linger in the mall uselessly. we have tried to understand the different reasons behind these people visiting malls and their shopping behavior. The members of the family have diverse interests ranging from entertainment for the children to seating space for the elderly or the unengaged spouse to an eating joint for the family to indulge in together. jewellery. Leisure Security Guard Tension free shopping This prompted us to use “Occasion” – limiting factor for shopping and “Task Orientation” – Focus on shopping vs Leisure options as the primary drivers of segmentation. therefore he or she has a different purpose for visiting them.Scope and Methodology SCOPE The main objective of our project was to carry out segmentation. She is also more likely to space her purchases as per the salary cycle. Exclusivity Ease of shopping Security Ease of options Shopping. Generally people in India prefer to visit shopping malls with their families. FAB Analysis of a Shopping Mall Features Adequate Availability of Parking Lot Charges for the same Layout. 4 . summer sale or winter sale. The Indian consumer is thrifty and prefers to buy during the sale season. Aggregate Space Merchandise Aggregation of shops Signage Overall Cleanliness Hygiene of public toilets Aggregation of entertainment options Attributes Accessibility of your Vehicle Parking fees paid automatically Visibility and perceived crowding Variety of shops Space for shopping Ease of navigation Hygienic Environment Feel good Amusement for children Cineplex Safety Benefits Convenience Overall experience of shopping Convenience.
Furthermore. The reason could be that they associated price consciousness and lack of brand awareness or preferences to “low income group”. This also led to a difficulty in distinguishing between segments.The busy shoppers were quite reluctant to talk to us and even when they did. their responses were qualitative in nature rather than quantitative. We interviewed 77 odd people of different age groups belonging to different socioeconomic classes. LIMITATIONS OF THE SURVEY: During the interview process. 5 .METHODOLOGY: We divided ourselves in two distinct groups to cover the four locations that we had decided to cover. we found very few people in AC market when we conducted the interviews at 2:00 P.M in the afternoon on a working day. From these interviews we arrived at certain consumer attributes which influenced their buying behavior. This again limited the range of possible respondents to the study. One of the observations of the interviews was that people did not like to talk about their price preferences and tended to state that they preferred to buy branded products even when the evidence was to the contrary. The interviews were conducted on a Friday evening in the South City Mall and on a Sunday evening in City Center Mall. Due to this reason. The questions were open ended. a wider cross section of the consumers who could be interviewed was missed out. we were limited by time and resources . We started by categorizing the respondents based on their attributes into clusters exhibiting varying degrees of the buying behavior and then with the help of these clusters identified the segments.
Categories 15-25 Female MIDDLE UPM Male MIDDLE UPM 25-35 Female MIDDLE UPM Male MIDDLE UPM 25-45 Female MIDDLE 35-45 Female MIDDLE UPM Male LOW MIDDLE UPM 45Female MIDDLE UPM Male UPM Grand Total HOUSEWIFE STUDENT WORKING Grand Total 24 15 9 6 9 2 7 3 2 20 3 1 7 3 1 1 6 1 13 1 4 9 1 1 1 6 10 6 6 6 1 5 4 1 1 2 8 4 8 2 6 2 2 2 2 18 26 34 24 15 9 6 9 2 7 25 11 5 6 14 5 9 1 1 1 16 12 7 5 4 1 1 2 12 10 6 4 2 2 78 6 . Socioeconomic class and Occupation have been compiled as under. Sex.Analysis SEGMENTATION Demographics: The demographic characteristics of the respondents namely Age.
They are extremely task oriented and are more likely to shop for an occasion. These are more likely to be single with independent incomes. gaming options and multiplexes. 7 . Utilitarians are shoppers who know what they want and therefore want the least amount of aggravation or hassle in the shopping process. they would end up buying something else. They would want to derive maximum benefit of both shopping and leisure at the same time with minimal search costs. Value seekers are likely to be highly price and quality conscious. Social Climbers seek social prominence amidst their peers. Value Seekers are skilled shoppers.Task Orientation and Occasion into seven segments that are defined as below. They come with a particular purpose (shopping of clothes/accessories/grocery). They are more likely to be wanted to be seen and purchasing in a mall and participating in any promotional activities of the mall. and retail outlets. They generally hang out in the malls. Shopping would not be their only activity. They are also likely to utilise the leisure options of the mall than any other consumer segment. They are unlikely to be influenced by brands. knowledgeable about products. They are not likely to be price conscious. As the name suggests they are those buyers who cannot stop themselves from buying. Family Shoppers are families that like to hang out in the mall. They would have a certain value proposition in mind and would shop only when that value proposition is satisfied. They are more likely to seek entertainment options from outside the mall. Shopaholics are those individuals who are high on task orientation and low on occasion. They are more likely to shop under a budget. Their shopping behavior is unlikely to be influenced by the presence or absence of promotional or entertainment options. prices. handbags etc. Impulse Shoppers are the shoppers with the need to walk out of a store buying something from the mall. They would visit both malls and markets. They are less likely to hangout. They are unlikely to visit the markets for purchases especially clothes/accessories like shoes. They are equally likely to purchase rest of their needs in the mall as in the other markets.The categorization of the responses enabled us to group the consumers on the basis of . They are more likely to be influenced by brand names. Even if they don’t find what they originally came to buy. They are low on occasion and low on task orientation. Their choice of shopping locations is again unlikely to be influenced by availability of entertainment or hangout options. They are likely to only purchase their groceries in the mall and utilize the leisure services like food court. They have bigger eyes than pockets. They are not likely to be constrained by occasion to visit the mall. They are moderately price conscious and not unduly brand conscious.
They would prefer to visit the restaurants. They are more likely to be students or single people looking for socialisation avenues. multiplexes and gaming zones.Fun Seekers are likely to visit the mall more for the entertainment options available in the mall than any other purchase. Segment Number 24 Value Seekers 19 Social Climbers 12 Family Shoppers 9 Utilitarian 7 Fun Seekers 4 Impulse Shoppers 2 Shopaholics The above table shows the count of Respondents that fall into the respective Segments 8 . food courts. Their leisure activities are more likely to drive their purchasing decisions.
2. Mall Experience 2. 1. Look for availability of stock Bargaining Power of Suppliers Premium or exclusive product Unique Service a. Departmental Store: C3 Threat of New Entrants New Malls a. Open Market a. Seasonal Discounts c. Accessibility Bargaining Power of Consumers Presence of Brands a. 2. 1. The malls sells slight expensive products 1. 2. Malls coming up in New Town Modernization of Block Markets a. 2. CITY CENTRE Existing Rivalry Between Firms Mani Square a. 1. Gariahat Market caters to a huge base of consumers of Value Seekers 9 . Brands like Planet M. Gaming: Timbaktoo b.TARGETING We used the City Center and the South City malls of Kolkata as the prototypes and applied Porter’s 5 Forces Framework to find out the Target Market issues related to target problems of these malls . Delayed shopping till discount periods 3. Nearby Location does not provide space for growth of newer malls 1. 1. Quality of product Seasonal Habits of consumers a. Well Placed Seasonal Discounts Costlier Designer Products 1. Provides Mall Experience Block Markets a. All residential complexes housing the upwardly mobile 4. Off season shopping habits 2. 1. New malls b. Sports M. etc 1. Forum a. Availability of better daily required service Threat of Substitutes Malls a. Almost Nil a. Cannibalises High Street Image b. Online Retails a. Accessibility to Mall type experience b. Look for best service b. Better Services SOUTH CITY 1. Pricing b. 2.
The mall’s initial targeting was based on: 1. Targeted Impulse Shoppers by providing open area for hanging out As the IT Sector came up in the near vicinity of the mall CC started targeting the IT Crowd also. These two segments of consumers are low on loyalty and thus they easily move to other malls. The other residential hubs in the vicinity include Tollygunge and Jadavpur. Presence of a nearby Pantaloons outlet which attracts a lot of Family Shoppers is affecting the sales of the main anchor shop Shoppers’ Stop. the main target segments of CC were Shopaholics and Impulse Shoppers. In the early years CC targeted the entire population of Salt Lake and its nearby areas. Hyper. More shops providing formal wear came up along with a lot of kiosks selling knick-knacks. The mall is also losing out on the IT crowd to other upcoming malls which provided more consumers in the segment Social Climbers and Shopaholics.CITY CENTER Target Market City Centre came up in the year 2004 and is one of the oldest malls of Kolkata. Metro is good enough to cater the needs of all the segments except for the impulse shoppers in the south city complex with Pantaloons and Shopper`s stop as its anchor shop. Location to target Shopaholics and Family Shoppers 2. SOUTH CITY Target Market The high end retail brands setup inside are well thought of keeping in mind the 1600 families in south city complex consisting five 35+ storied buildings and other target segment in the vicinity. Zodiac. But as per the survey numbers suggest this segment forms not very significant percentage and rest of the segments are very well covered. The Brands Portfolio which includes Pantaloons. Adidas. Thus it had a wider base of Social Climbers and Shopaholics to target at. This has led to considerable loss of business for the mall. Spencers. Pepe. Fame Cinemas. Shopper’s Stop. Diversity of brands to target Social Climbers and Value Seekers 3. Issues with current Targeting: There is currently no specific target market that could be identified with City Center. Issues with current targeting 10 . Shopaholics. The biggest loop hole in City Centre’s targeting strategy is its inability to cater to Utilitarians who are high on task orientation and loyalty. Impulse Shoppers. It is trying to be everything to everybody. Fun Seekers. Levis. Reebok. All these hubs combined would take in the Utilitarians. Family Shoppers and Social Climbers as identified segments into account. Multiplex and Gaming zone for Fun Seekers 4. Initially.
during the interviews conducted at high streets. The scope of the current study is limited to the positioning concept and recommendations on the Positioning Strategy. This could be seen as a big threat in terms of losing the market share due to unavailability of value focused brands for this segment in the south city. Positioning Concept: The product (brand) meaning derived from the needs of the buyers comprising the market target. tenant mix and the activities in the mall to attract the target market.The next shopping hub while comparing the footfall would be Gariahat which mostly caters to the need of value seekers which forms a very large part of the target identified by the survey. The positioning of the shopping mall is often complicated by the presence of the dual market – (i. availability of brands.. Also. Ideally the mall should be designed for the catchment rather than force a mall on the catchment. However. the interviewees were asked to recall any malls that they visited in the recent past and what they liked about the mall. The positioning process follows three distinct steps: 1. If a mall has more of lifestyle stores and its anchor stores are already perceived as exclusive. Based on the interview responses. we propose that the positioning of shopping malls be evaluated on the following parameters: 1. It is a key component of the framework for the development and implementation of the marketing program.e. A majority of the respondents associated the mall with exclusivity. Approximately 74% of the respondents recalled South City Mall without any aids. Positioning Strategy: The combination of marketing actions used to portray the positioning concept to targeted buyers. In the current study. POSITIONING Positioning is one of the cornerstones of marketing strategy. Exclusive vs Standard: Shopping malls have become a socialisation center. and a convenient location. the differences in the positioning of a shopping mall are often not recognized. 2. Positioning Effectiveness: The extent to which management's positioning objectives are achieved in the target market. the positioning of the shopping mall would be a key determinant of the anchor stores. 3. shopper market and retailer market). hangout place with friends. The tenant mix 11 .The objective of positioning is to create a distinct perception of the product (brand) in the mind of the buyer. People like to know that there are other people like them sharing space. The concept of product position is extremely popular and no strategic marketing program is complete without a discussion on positioning. then it is extremely likely that the mall also gets associated with the attributes of the anchor stores.
In fact. 2. a limitation to the interview responses. then it is extremely likely that the location drops from the consideration set of the consumer in any future shopping decisions. City Center Mall: The positioning of the City Center Mall is not cohesive. In trying to be too many things to too many people. Hence. 2.also follows the pattern of the anchor stores. Range of products vs Specialised Mall: A shopping mall is always compared with the high street that has the complete range of products that the consumer wants to purchase and the comparison is in terms of availability of products and associated brands. There is however. It needs to undertake certain promotional activities to differentiate 12 . the anchor stores would not like to be associated with a shopping space that does not include brands/stores with similar attributes or perception. the mall does not have a loyal consumer base except for its catchment area. Proposed Perceptual Map: Based on the evaluation criteria. the likelihood of people who frequent the City Center in Salt Lake city and the the markets surveyed is lower and this could create a bias in the responses. If a mall or the high street gets associated with non-availability of certain related product groupings. The interviews on consumer shopping preferences were conducted in AC Market and New Market that are far away from Salt Lake City. the positioning of the two malls can be visualized as: 1. The consumer wants to reduce search costs as much as possible. South City Mall: South City Mall's positioning is that of an exclusive shopping place where one can find all lifestyle related products and brands at one place. It is also a fun place to hang out with a range of entertainment and restaurant experiences.
13 .itself from other malls.
14 . It should establish some point of difference with other malls by redesigning the tenant mix gradually. Currently it is described more as a fun place to hang out with than as a shopping experience. Positioning Solutions 1) South City Mall: The mall should undertake the following to reinforce its positioning of an exclusive mall: a) Inclusion of exclusive electronic products like Bose/Apple that would complete the product range availability in its stores. b) Conduct fashion shows that reinforce its positioning of exclusive fashion. and by shedding its image of a complete hangout place by having a greater mix of other anchor shops.Recommendations With respect to the two malls studied and based on the analysis we propose the following recommendations with respect to the positioning of the malls: Targeting Solutions 1) South City should try to bring in Value Seekers to their mall by providing junk fashion through certain smaller kiosks which can be spread out throughout the open spaces of the mall. Increase the profile of the anchor shops and introduce more number of small kiosks selling knick-knacks. 2) City Centre Mall: Redefine its positioning. The premium-ness and exclusivity of the mall should also be improved to compete against the upcoming malls in and around Salt Lake.Shoppers’ Stop and C3. 2) City Centre should try and target the Utilitarian segment by increasing the profile of anchor shops. It would increase space utilisation and also improve the shopping perception of the mall.
Do you like to visit the restaurants present in the mall? 14. Do you shop every time you come to the mall? 6. Do you watch movies at the mall? Or standalone theaters? 15. Is there any mall that you like/go to regularly other than this market? 4. Are you constrained by price when you make your purchase? 11. Do you go to any other mall? Guideline Questions used for the interviews in the Markets – AC Market and New Market. Who do you like to come with when you come to the mall? 9. What is it that you get in the market that you do not get in the mall? 6. What do you like about this mall? 3. Do you like the food courts of malls? 13.Appendix QUESTIONNAIRE The following questionnaire were used to start the conversation with the respondents. What have you bought from this market? 5. 1. What is it that you get in the mall that you do not get in the market? 7. based on which their response were noted to formulate the survey results. 1. Do you shop every time you come to the market? 9. Do you prefer branded products over unbranded products? 10. Why do you come to this mall? 2. Do you like the food courts of malls? Or restaurants outside? 16. When are you more likely to come to the mall? 10. Who do you like to come with when you come to the market or go to the mall? 12. When are you more likely to come to the market? Mall? 13. Do you prefer branded products over unbranded products? 7. Do you watch movies at the mall? 12. Are you constrained by price when you make your purchase? 8. Do you like to visit the restaurants present in the mall? 15 . Why do you come to this market? 2. Do you do all your shopping from this mall? 5. What do you like about this market? 3. What have you bought from this mall? 4. Are there any specific occasions when you come to the mall? 11. Guideline Questions used for the interviews in the Shopping Malls. Are there any specific occasions when you come to the market? Mall? 14. Do you do all your shopping from this market? 8.
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