MallManagement:5KeyComponentsofMallManagement

Explained!
ByRohanAgarwal
ADVERTISEMENTS:
Mallmanagementisdefinedasanoveralloperationandmaintenanceoftheentirebuildinginfrastructure,
includingtheservicesandutilities,ensuringthattheyareusedinawaythatareconsistentwiththepurposefor
whichitwasacquired.
Mallmanagementencompassesoperations,facilitiesmanagement,security,accounts,commonarea
maintenance,marketing,leasingandalltheotherfunctionsevenremotelyrelatedtoamall.Thebiggest
probleminthisindustryisfindingtherightkindoftenants,whileleasingoutspacetotenants,itisimportantto
keepinmindtheimagematyouwanttocreateinthecustomersmind.
Inthepast,severalmallswereconstructedwithoutdoinganyfeasibilitystudyorrigorousmarketresearch.
Thoughinitiallytheyweresuccessfulinattractingpeoplebutsoonwentoutofcompetitionbecausetheyfailed
toconvertvisitorsintopotentialbuyers.Thesimplereasonwasfailureinunderstandinglocalneeds.
Assomebodyrightlysaidoneshoulddanceaspertheaudienceliking,sameisapplicableinmallmanagement.
Itseemssurprising,howmalldeveloperscanspendmillionsofrupeeswithoutduediligenceexerciseontheir
feasibility.Butthenewgenerationmalldevelopersarewelleducatedandexperienced.
Theyaredevelopingmallsgraduallybutwithproperresearchandconsultationoftheexpertsconcerned.
Therefore,themarketisgraduallychangingwhereinmoreandmoredevelopersareapproachingproperty
consultingfirmstoconductfeasibilityandpositioningstudiesfortheirprojects.

ComponentsofMallManagement:
MallmanagementisagrowingphenomenonintheIndianindustry.TheIndianretailmarketisexpectedto
continueitsgrowthtrajectoryincomingyearsalso.Mallmanagementhasbeenidentifiedasacriticalfactorfor
thesuccessofmallsandtheretailindustryacrosstheworld.
Broadly,mallmanagementincludesthefollowing:
1.Positioning
2.Zoning
3.PromotionsandMarketing
4.FacilityManagement
5.Financing

1.PositioningaMall:
Itreferstodefiningthecategoryofservicesofferedbyamall.Generallymallpositioningisdeterminedaftera
detailedsurveyofhouseholdsintheareawheremallisgoingtobelocated.Thissurveyincludes
demographics,psychographics,incomelevelsandcompetitioninthearea.Italsoincludesthelocationofthe
mallwhichisdeterminedbytheaccess,visibilityetc.
Theprimaryobjectiveofpositioningistocreateadistinguishimageofamallamongconsumers.Itformsthe
basisfordifferentiatingamallfromitscompetitors.Positioningassistsincreatingadistinctiveimageandtopof
mindrecallforthemasseswhentheythinkofamall.Forexample,whenacustomerthinksofpurchasinga
handicamordigitalcameras,theSoniorCanonbrandscometotopofhismind.
Similarlywhenapersondecidestobuyapairofcontactlenses,nameofRenubrandcomestohismind.This
isaseparateaspectthatatthetimeoffinalpurchase,he/sheadherestothatparticularbrandornot.Basically
finalbuyingdecisionsareinfluencedbyboththebrandappealandsocialstatusoftheperson.
Theobjectivesofpositioningamall/productare:
1.Tocreatesenseofrecognition
2.Topromoteloyalty
3.Toenhanceimage
4.Toenhancegoodwill
5.Toimproveimageofquality
6.Tobeatcompetitors
7.Toattractcustomers
8.Tomaintainandattractgoodsalesstaff
Broadly,mallscanbepositionedintwodifferentways.
a.Onthebasisofofferings
b.Onthebasisofanchors
Thedetaileddescriptionaboutboththeformsisdiscussedasbelow:
(a)Onthebasisofofferings:
Astheverynamesuggests,thesemallsarepositionedprimarilyonthebasisofitsofferingswhichshouldbe
reflectedthroughoutitsretailmix.
Offeringsfurthercanbeclassifiedunderseveralnotionssuchas:(i)Luxury:

Underthistypeofpositioning,amallispositioned,advertisedandmarketedasLuxuryMallswhereselections
oftenantsisexclusivelydoneundertheluxuryclassoftheirvertical.Localandsmallplayersthoughfinancially
soundarediscardedunderthisparticularformofpositioning.Forexample,Sony,Lenovo,Applefallunderthe
luxurysegmentwithintheconsumerelectronicsvertical.Similarly,MonteCarlo,Raymond,PeterEngland,Levis
areluxurywithintheapparelsverticals.
(ii)ValueforMoney:
Valueformoneystylepositioningconveysthemessagetopublicthattheirmallsareneitherexpensivenor
economical.Theyoffervalueformoney.Thisofferingisnotdepictedbyoneormoreoutletbutentiremallwould
representthesamevalueformoneyimage.
(iii)Economy:
Underthisstyleofpositioning,mallownersconveythemessagethattheirmallisforthosepeoplewhoare
moneyconsciousandlookingforaffordablegoodsandservices.Economyclassmallsusuallyarefullof
customersespeciallyonweekends.Impulsebuyingismoreincaseofeconomymallsbecausefirsttimeor
occasionalvisitorsaremoreattractedtowardscheaprangegoods.
(b)Onthebasisofanchors:
Underthistypeofpositioning,mallsarepositionedonthebasisofanchors,malldevelopersdecidetohave.
Theseareclassifiedasunder:
(i)Entertainmentbased:
Themainthemeofsuchmallistoofferentertainmentandallpossiblemeansofenjoyment.Entertainmentis
offeredintheformofmovietheaters,swankyrides,waterfalls,gamingzones,scaryhouses,icerings,buzzy
jumping,Kidsplaystations,RacingCars,VideoGames,interactiveKiosks,andsoon.
(ii)Hypermarket/ValueDriven:
Oneofthemostcommonandwidelyapparentfeaturesofasuccessfulmallisthepresenceofhypermarket.
Theprimaryreasonforhavinghypermarketinamallistoincreasefootfallsandconversionrate.Historyreveals
thatfewmallswhichinitiallyhadnoorverylessoccupancyrate,becameconsumersfirstchoiceafterthe
presenceofhypermarkets.Inshort,underthistypeofpositioning,mallsarepositionedonthebasisof
hypermarketorvaluedrivenconcept.
(iii)SpecialtyBased:
Underthisconceptofpositioning,mallsarepositionedaccordingtothespecialtystoresinthemall.Specialty
storesimplythemessagethatmostofthestoresspecializeinoneparticularsegmentoftheverticalsuchas
consumerelectronics,jewellerystores,bookstores,homefurniturestores,andsoon.Thistypeofpositioned
mallsconveysthemessagethattheyofferallthenationalandinternationalbrandsunderthatcategory.
Note:
Thepositionedmallsusuallykeeptheirofferingssamefortheentirelifespanofthemall.Thoughnewstores,
newbrandscancomeandgobutofferedconceptremainsthesame.Therefore,utmostcaremustbetaken

whilesettingupthemallanddecidingaboutthepositioning.Positioningisanirreversibledecisionand
repositioning.

2.Zoning:
Intheworldofretailing,customerscanbebroadlydividedintotwocategoriesnamelyfocusedbuyersand
impulsebuyers.Focusedbuyersarethosebuyerswhoknowwhattheirrequirementsareandhowtofulfill
them.Therefore,theygotomallwiththeintentionofbuyingandcarrypropermoney.
Ifeverythingremainssameandthingsareaspertheirrequirements,taste,andbudget,theydonotwastetime
andbuythethings.Incase,theyfindthingscostlyoroppositeoftheirexpectations,usuallytheyleavethemall
andcomeback.Whileontheotherhand,impulsebuyersarethosebuyerswhovisitthemallwithnointentionof
buyingbutifsomething,appealsthem,theybuyotherwiseindulgeintowindowshopping.Bothtypesof
customersareimportantforaretailstore.
Butquestionishowretailersshouldentertainthemandincreaserevenues.Zoningisthesolutionofthis
problemthatallowsretailershelpattractbothtypesofconsumers.Zoningisamallspaceallocationexercises
underwhichmalldevelopersbasicallyformulaterighttenantmixtoattractbothtypesofcustomersespecially
theimpulsebuyers.

Zoningreferstothedivisionofmallspaceintovariouszonesfortheplacementofvariousretailers.Amallis
dependentonthesuccessofitstenants,whichtranslatestothefinancialfeasibilityofthetenantinthemall.
Creatingtherighttenantmixnotonlyhelpsinattractingandretainingshoppersbyofferingthemmultiple
choicesandsatisfyingmultipleneeds,butalsofacilitatesthesmoothmovementofshopperswithinthemall,
avoidingunnecessaryclustersandbottlenecks.
Intheeraofcompetition,zoning(sectors)exercise,ifdoneproperlyhelpsinbuildingaseparateimageinthe
mindsofthevisitors.Thisalsohelpsinfluenceshoppersmallpreferenceandfrequencyofvisits,whichiscritical
consideringtherobustupcomingsupplyofmalls.
AdvantagesofZoning:
(i)Allowsthesmoothmovementofshoppersinthemall,avoidingclustersandbottlenecks.
(ii)Createsadistinctimageinthemindsofthecustomers.
(iii)Assistsinformulatingtherighttenantmixandtheplacementofthesetenantswithinthemall.
(iv)Helpsintheselectionofrightanchortenant.
(v)Helpsretailersattractbothtypesofconsumers,especiallytheimpulsebuyers.

TheGreatIndiaPlaceMall(GIP)isoneofthebiggestmallsofNorthIndia,locatedinNoida,NationalCapital
RegionofDelhi.TheGIPisacontemporary,vividretailarcadeforabsoluteshoppingecstasy.Plannedwitha
dreampalacetheme,ithasauniqueambiencewhereshopperscannotresistindulginganddiscoveringa
superlativeexperienceofshopping.
TheretailenvironmentwithitsprimelocationnearSector18,rightattheentranceofNoida,isspreadoverI
millionsqft.Itoffersitsshoppersanunmatchedshoppingcumentertainmentenvironmentwithagamutofretail
stores,wellheeledfoodjointsandamultiplex,allunderoneroofTheretailenvironmentincludessixanchor

storesencompassingdepartmentalstoreslikeLifestyle,Globus,ShoppersStop,Pantaloon,ahypermarket
BigBazaarandahomestylestoreHomeTown.
ThoughafterGIP,severalothermallshavecomeinthenearbylocality,yetTheGreatIndiaPlaceMall
continuestocommandthehighestfoottraffic,continuingtobeoneofthemostsuccessfulmallsinthecityin
termsofannualrevenues.Itisalsowidelybelievedthatoneofthedrivingfactorsbehindthesuccessofthis
mallisitszoningandsuperiortenantmixcomparedtocompetition.
3.PromotionsandMarketing:
Promotionaleventsthathelppromotebrandsareanessentialpartofmallmanagement.Someofthemost
effectivepromotionalmodelsincludecelebrityvisits,foodfestivalsandtalkshows,whichincreasefootfallsand,
asaresult,increasedrevenues.Organizingcultural,national,andreligiouscelebrationshavealsoproved
useful.Considering,malldeveloperscanplanoutmarketingstrategiesforindividualmallsinorderthatmatch
therequirementsoflocalconsumersandaddressingthechallengesoflocalorregionalcompetitors.
Mallsarealsoindulgedinpromotionalactivitiesandevents.Consideringthelocalrituals,preferencesandlatest
trend,eachmallpreparesaMarketingCalendar.
ThecommonexamplesofpromotionsandeventsorganizedinIndiainvolve:
(i)FashionShows
(ii)Exhibitions
(iii)BookFairs
(iv)TravelFairs
(v)MusicalContests
(vi)Auditions
(vii)TalkShows
(viii)SidewalkSales
Besidesthis,eachmallcelebratesvariousnationalandinternationaldayswhicharefamousamongcommon
youth.Publicholidays,longweekends,religiousholidays,educationalbreaks,arealsoconsideredwhile
preparingaMarketingCalendar.
AdvantagesofPromotionsandEvents:
(i)Optimumutilizationofmallspace
(ii)Tocreatenewsourceofavenuesformallretailers
(iii)Toattractnewcustomers
(iv)Tobeatcompetition

AnsalPlaza,apartofHUDCOPlacebuilton35acresofland,isashoppingcomplexsituatednearSouth
Extension,oneoftheposhmarketsinNewDelhi.ThePlazacomplexcompeteswiththebestcommercial
estatesintheworldinitsarchitecturalsplendor,aestheticdetailsandshoppingexperience.Itprovidescomfort
andvarietytothecustomers.OneofthefinestmallsinIndiatoday,hasmadeshoppingmuchmoreenjoyable
thanbefore.
Itoffersaclimatecontrolledenvironmentthatremovesthefatigueusuallyassociatedwithshopping.Careful
employmentofmoderntechnologyhascreatedwelllighted,spaciousandcustomerfriendlyshoppingspaces.
Completewithanamphitheater,ashoppingcomplex,twinlevelparkingandbestofthebrandsunderoneroof,
itoffersacompletefamilyexperience.

4.FacilityManagement:
Itreferstotheintegrationofpeople,place,processandtechnologyinabuilding.Facilitymanagement
companiesprovidespecializedservicestomallsrangingfromparking,security,tohousekeepingandcash
management.FacilityManagementhandleelectromechanicalserviceslikeandsuppressionandfiredetection,
accesscontrol,powermanagement,watermanagementplumbing,SupplyChain,MarketingResearch,
LogisticsandDesignetc.
Inadditiontothistheyalsoofferbusinessserviceslikehelpdeskmanagement,guestrelations,andmeeting
roommanagement.Fewoffacilitymanagementcompaniesalsoprovidesoftserviceslikepestcontrol,
cleaning,andphysicalandsecuritysurveillance,conciergeservices,andadministrationservices.Therearefew
otherexpertfunctionsthatfacilitymanagementcompaniesarealsotakingup.Theseincludeconducting
researchformallstofindouttheirrequirementsregardingissuessuchas
(a)Sitelocationproblem

(b)Whatkindofmalltosetup?
(c)Determiningthecustomerpatterns
(d)Segmenting,Targeting,andPositioning(STP)
Underfacilitymanagementvariousactivitiesareclassifiedasfollows:
(i)InfrastructureManagement:
Itreferstotheoverallsupervisionandadministrationofvariousfacilitiesprovidedtotenants,riskmanagement
measuressuchasadoptingessentialsafetymeasures,conductingassetliabilityandenvironmentalauditsas
wellasimpartingemergencyandevacuationtraining.
Underinfrastructuremanagementfollowingfacilitiesareoffered:
(i)Airconditioning,
(ii)Provisionofadequatepowersupply,
(iii)Safetyissuesrelatedofsignage,
(iv)Issuesrelatedtosignage,watersupply,sanitation,etc
(v)Watersupplyingandsanitation
Alltheabovementionedfacilitiesprovidedtothetenantswithinthemall,formanintegralpartofmall
managementastheseareconsideredthebasicamenitiesthatnaytenantwouldlookforinamall.

(ii)AmbienceManagement:
Thisaspectreferstothemanagementoftheoverallaestheticsandappearanceofamall.
Underambiencemanagement,followingprovisions/facilitiesaremade:

(i)Managementofparks
(ii)Managementoffountains,
(iii)Takingcareofstaircases
(iv)Overalllookofliftsandescalators
(v)Musicandoveralllookofthemall.
(iii)TrafficManagement:
Trafficmanagementbasicallyincludesmanagingfoottrafficintothemallandparkingareas.Foottraffic
managementinvolvescrowdmanagementinsidetheoperationalareaofamall.Theflowofpeopleisrelatedto
thedesignofthemallandthespatialdistributionofitstenants.Undertrafficmanagement,facilitiesareoffered
tomallspertaintotheeffectivemanagingofcrowds,bothwithinthepremisesandintheparkingzone.
Untilveryrecently,mostIndiandevelopersthoughtthatmallmanagementismerelyanothernameforfacilities
management.Therealizationthatthesetwoconceptsaredifferentandthatprofessionalmallmanagementhas
immensebearingonthelongtermviabilityandsuccessofamallisgraduallybeingaccepted.
Thesignificanceoftrafficmanagementisincreasingrapidlyanddemandedbyoneandallbecauseofthe
simplereasonthattheflowofpeopleisrelatedtothedesignofthemallandthespatialdistributionofits
tenants.
Forexample,takeacaseofstarshapedmallwhichthoughattractivebutwillhaveacrowdinginthecentreof
themall,aseveryonehastopassthroughthecentralareawhilemovingfromonesidetotheother.Circular
mallsontheotherhand,maynotfacesuchproblemofcloggingastheyusuallytendtohavebetterpedestrian
flowandlesscongestion.Therefore,utmostprecautionmustbetakencareofwhileplanningaboutthedesign
ofthemall.
Theseare:
(i)Managingfoottraffic
(ii)Parkingmanagement
(iii)Betterpedestrianflow
(iv)Eventmanagementinandoutsidethemalls

5.FinanceManagement:
FinancialManagementisconcernedwiththeacquisition,financing,andmanagementofassetswithsome
overallgoalinmind.FinancialManagemententailsplanningforthefutureforapersonorabusinessenterprise
toensureapositivecashflow.Itincludestheadministrationandmaintenanceoffinancialassets.Besides,
financialmanagementcoverstheprocessofidentifyingandmanagingrisk.

Underfinancemanagementfunction,facilitiesmanagementcompaniescoverthefollowingactivities:
(i)Accountingsystemtotrackthedebtandinvoices,
(ii)Cashreceiptsandcollectionofincome
(iii)Organizingresourcestodeliveranefficientandeffectiveannualaudit.
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