Case Study on Shopping Mall for Gen X

SHOPPING COMPLEX
FOR THE GENERATION X
(GEN X)
The Constructors;
Lydia
Muhammad Ashraf
Danish
Noor Hafiza
Nor Ermi Diana
Nur Shazreen Nadia
Wan Norafidah
MKT 750 MARKETING MANAGEMENT

Business Idea
- Mission & Objectives
- Service and Target
Market
- Positioning Statement
Marketing
Strategy
- Marketing Objectives
- Marketing Strategy
- Positioning
- Product Decision
- Pricing Decision
- Distribution Decision
- Promotional Strategy
Market
Analysis
- Market Segment
- Target Segment
- Our Offering
Competitor
Assessment
- Retail Industry
- 5 Competitive Forces
- Critical Success
Factors
- Direct & Indirect
Competitors
- Competitive Advantages
& Disadvantages
- Competitive Responses
CONTENT

“To be the
shopping mall
destination
delivering world-
class shopping
experience superior
to those of our
competitors in all
markets”
Our Mission
Business
Idea
“To be the
preferred mall of
choice (Gen-x),
delivering
extraordinary
values that exceed
all stakeholders’
expectation”
“To create new
retail formats
and
merchandising
mix that fit
better with our
targeted
customers’
changing
lifestyles. (Gen-
X)”
“To be a
potential leader
in the region
and be
considered as
threat in all
markets that
we operate in”
Business Idea

Our Objectives
Business
Idea
Business Idea
 To be the Most desired shopping complex for Genn-X
 To be the Superior Shopping Complex that fulfil the needs and
wants of our target market
 To offer the wide range of merchandising mix (lifestyle, fashion
and entertainment) that suit our target market (Gen-X)
 Offer an enjoyable, convenience Shopping experience (service)
that enjoyed by Gen-X

Business Idea
Our Service
“Providing a desirable shopping experience over
products, services, facilities and amenities with wide
range and quality of selection that meet and enhances
our target market lifestyle, fashion and
entertainment”
Business
Idea

Business Idea Our Target Market
Business
Idea
Geographic: Gen X who live in Kota Kemuning, Shah Alam.
Demographic: Age between 36-55 years old (1960s – 1979)

Business Idea
Psychographic:
Gen X preference;
Influenced/ Attracted by Marketing and Media
Know how to find info/ want a information,
Married people lifestyle (eg; baby clothes and bedding, toys, baby food)
More into a home-improvement products (eh; DIY, decoration, furniture,
bedding, kitchenware- floor to ceiling)
Casual yet colorful lifestyle
Carried friendships and that sense of family-ships
Value Diversity (Wide range)
Gen X’es lifestyle, interests, and opinions.
Behavioral: Into families kinda of activities, Steady, Facts (Best Deal)
Benefits sought: that cater their Psychographics
Our Target Market
Business
Idea

Our Positioning Statement
“Shopping Complex that tailored for Gen-X”
Business
Idea
Business Idea

MARKET ANALYSIS Market Constitution
Market Segment –
Overall market constitution [Demographic]
DEMOGRAPHIC
INCOME
SHOPPERS PROFILE

MARKET ANALYSIS Market Constitution
Market Segment –
Overall market constitution [Demographic]
 balancing family, life, and
work
 often shop at value-
oriented retailers.
 make things more useful
and practical.
 both cynical and
sophisticated about
products, ads, and
shopping.
PSYCHOGRAPHIC BUYING BEHAVIOUR
THEY SEEK PRODUCT INFORMATION
THEY RESPOND TO DIGITAL AND
TRADITIONAL ADVERTISING
THEY’RE BRAND LOYAL
THEY VALUE DIVERSITY AND
INDEPENDENCE
1
2
3
4
• Lower class-middle class-upper class
• most price conscious and has low price
sensitivity.
• technology as changing their world and
techno literacy is highly valued.
SOCIO-CULTURAL
GEOGRAPHIC
 Urban
 Sub-urban.

MARKET ANALYSIS – Target Segment
SIZE OF THE MARKET
ANALYSIS ON UNMENT SERVED
NEEDS
ANALYSIS ON RELEVANT TRENDS ANALYSIS ON WANTS & NEEDS
MARKET SIZE IN SHAH ALAM
 Growing population in Shah Alam -approximately
750,000 is among the highest in Selangor.
 Selangor as main economic nation : high
population, job and retail industries (Source
Malaysian Statistic Division)
 the focal point of investment and mega projects,
giving high impact to industry
Why We choose Shah Alam?

SIZE OF THE MARKET
NEEDS
UNSATISFIED NEEDS – a desire for information about
product/brands are interacting to reshape the shopping habit.
DESIRE & ABILITY TO SATISFY NEEDS – Both tenants and
project owner since it’s under 1 roof
A WAY OF PARTIES TO COMMUNICATE – Intensive communication on
promotional tools
SOMETHING TO EXCHANGE – Marketing occurs when transaction takes
place from both buyers and seller exchange something of value
1
2
3
4

SIZE OF THE MARKET
NEEDS
As these will play a role in the
perception, habits, behavior or
expectations of consumers.
Culture
• The environment
• the focal point of investment
and mega projects, giving high
impact to industry
Political
• Exposure on high technology –
Eco mall concept etc
• The Internet usage on business to
business marketplace are getting
higher
Technological
Strategic landscape of Selangor –
borderline to Kuala Lumpur city
Natural
• Selangor – Shah Alam contribute
high economic to industry
• Retail industry hs huge impact on
countries economy
Economic
High population, middle – upper
class income, job opportunities
high
Demographic

SIZE OF THE MARKET
NEEDS
• When today’s consumers visit malls, they are looking for
experiences that go well beyond traditional shopping
• Looking for reasonably stylish, and available at reasonable
cost.
• Readily affordable for wider market
• Readily information about consumer lifestyle and trends and
creating concepts for upcoming product lines.
• Urban family prefers to go bigger shopping centers, various
choices in one place for all family members
WHAT CUSTOMER (GEN X) EXPECTS?
THEY SEEK PRODUCT INFORMATION
THEY RESPOND TO DIGITAL AND TRADITIONAL
ADVERTISING
THEY’RE BRAND LOYAL
THEY VALUE DIVERSITY AND INDEPENDENCE
1
2
3
4
• Generation X wants to hear the features of the product as
well as an explanation of why these features are necessary
• They want products and messages designed uniquely for
their tasks and lifestyles.
• Emphasize such communication methods as the Internet, e-
mail, multi-media, word-of-mouth, social events, and peer
gatherings. Interestingly, they respond to direct mail.

SIZE OF THE MARKET
NEEDS
Expecting all basic necessities available
Ready items
Variety of choices
Facilities
Trademark
Sample of Voice of Customers

MARKET ANALYSIS Our Offering
Our Offering
Benefits on deliverables on product features
• Differentiating the consumer offering, with a focus on
experience and convenience.
• Transforming the mall experience by leveraging
technology and multichannel strategies.

Commercial Property / Commercial Real Estate
Industry
Buildings or land intended to generate a profit, either from capital gain
or rental income
Retail Category:
“Power centers” with large anchor stores
Manage Industry Products and Industry Activities to compete
Industry Products Industry Activities
• Retail property management
• Real estate brokerage
• Land management
• Construction
• Developing and managing malls
• Collecting rent
• Managing security
• Managing trash and recycling
collection
• Approving prospective tenants
and representing current property
owners
Competitors Assessment
Competitors
Assessment

Threat of New Entrants
Threat of Substitute
Products / Services
Bargaining Power
of Suppliers
Bargaining Power
Of Buyers
Rivalry Among
Existing Firms
1. Economies of scale
2. Product Differentiation
3. Access to distribution
channels
4. Independent retailers
decreased
5. More chain stores
6. Capital Requirements
7. Government policy
1. Price sensitive - moderate
bargaining power
2. Difficult to bargain for
better price
3. High quality products –
retailers’ honest
1. Deal in a wide range of
products / services
2. Deal with various products
from different store
3. Chances of shifting is high
1. Supplier concentration
2. Reduce power + retain
customers – differentiate
products and create strong
brands
3. Less power
1. Price discounting
2. New product introductions
3. Advertising campaigns
4. Service improvements
Industry’s Five
Competitive Forces
Competitors
Assessment

1. Location / Site
Centre of the Selangor
 Shah Alam, Klang, Subang
Good location:
Allow ready access
Attract large number of customer
Increase the potential sales of retail outlets
Ideal of good location:
Located near public transportation
Enjoy all day traffic
Have a big catchment population
Provide transport and parking facilities
2. Size
Size are relevant to the size of the market that it intends to serve
Size and quality of facilities are also relevant
Critical Success Factors (CSF)Competitors Assessment
Competitors
Assessment

3. Accessibility
Provide access maps, efficient parking operation
Able to attract pedestrian to pass through the shopping mall
Provide shuttle bus services
Near the side of road and transportation may benefit from a higher
volume of traffic passing through
4. Customer Service
Wrapping gifts
Member card – Redeem points
5. Visibility
Signage of the shopping mall are important for providing visual cues to
the shoppers
Competitors
Assessment

6. After-sales Service
Maintenance or repair of equipment by retailers during warranty period
Any product found broken or in a damaged condition will be exchanged
immediately by the sales professional
Create a section in organization’s website where customers can register their
complaints
Toll free number where customer can call and discuss their queries
7. Customer Loyalty Programmed
Offers incentives, gifts to consumers on achieving certain milestone
Customer loyalties can be enhanced through weekly/monthly newsletter
about various promotions
8.Food and Drinks
Demand variety and fun in refreshments
Food outlets will offer new concepts, menus, dishes
Food courts / food street will offer economically-priced food
Competitors
Assessment

9. Help Desks / Concierge
Provide stroller
Offering maps, directions
Friendly and multi-lingual staff
10. Entertainment
Kids’ competitions – games, sports, magic shows, face painting, competitions
11. Exhibition Hall
Exhibition – Education, Property, Housing, Investment, Baby Expo
12. Good Facilities
Lift, escalator
Kids Center
Mothers and baby room
Competitors
Assessment

13.Design and Layout
Travelling distance from one shop to another must
not too far
14.Shopping Environment
Special features like fountains and landscaping –
create luxurious atmosphere
Competitors
Assessment

Competitors
Assessment
Our Direct CompetitorCompetitors Assessment

Sogo is the largest single department store in Kuala Lumpur
700,000 square feet filled with the latest fashion trends, home convenience
wares, hottest sales and promotions.
Prices are usually cheaper than what the other department stores offer
compared to Parkson, Metrojaya and Isetan
The mall has multiple floors with various stores within the department store
Sogo has multiple yearly warehouse clearances where shoppers can enjoy
discounts up to 70%.

known as JAYA JUSCO is set up in Malaysia in 1984
was established in Malaysia, in response to the 4th Malaysian
Prime Minister Dato' Seri Dr. Mahathir's request to help
modernise the retail industry in Malaysia using the world's most
advanced management expertise
aim was to grow with the people of Malaysia through the
transfer of expertise from Japan to Malaysia

740,000 square feet of Net Lettable Area
2,500 car parks and over 240 retailers spread across 4 levels,
is the destination of choice for shopping, dining, entertainment and
parklife in the area
Key retailers include Parkson, Golden Screen Cinemas, Fitness First,
Zara, Uniqlo, Urbanfresh, Daiso, Harvey Norman, Courts and MPH
Bookstore.

• The Curve
• located to one of the biggest expat enclaves of the city; Mont Kiara
• 250 stores spread out over 3 floors
• Main attraction: variety of restaurants and street bazaar on weekend
• KL Festival City Mall
• a leasehold commercial hub situated along the bustling Jalan Genting Kelang,
Danau Kota, Setapak
• wide selection of retail units such as Bora, Kitchen, Lamage, Modern Mum, Nichii
Fashion and much more
Our Indirect CompetitorCompetitors Assessment
• Alamanda Putrajaya
• shopping mall that serves the residents of Putrajaya and surrounding towns
• is usually packed during the weekends where many residents around here will bring
their family for a time of relaxation and shopping
• Carrefour, Parkson, Cold Storage are the anchor tenants of this mall

KL SOGO
Competitive Advantages
• Sales & Discounts every month
• Home Delivery
• S Card
• Collect points and redeem
vouchers
• Free Parking
Competitive Disadvantages
• Location – congested
• Limited Parking and eateries
& Disadvantages
`
Competitors
Assessment

Competitive Advantages Competitive Disadvantages
& Disadvantages
`
• Offer various product – home
appliance, groceries, clothing etc
• RM1 Parking
• Aeon Card – collect points and
discount to members
• Customer service – provide
wheelchair, stroller
• Limited brands of clothing
• Discounts only applies to members
AEON
Competitors
Assessment

Competitive Advantages Competitive Disadvantages
& Disadvantages
`
SETIA CITY MALL
• Strategic Location
• Offer variety of products
• Wide choice of brands
• Wide selections of restaurants
and eateries`
• Paid Parking
• Limited Parking
Competitors
Assessment

Uniquely Cater for Gen-X
Food street Vendor Theme
Bazaar Event
Digital Video Display
Build customer loyalty
Reward customer to every RM1 they spent
Membership programmes – special sales
day to members, collect points and redeem
Free parking to members
Vouchers to members on their birthday
Our Competitive ResponsesCompetitors Assessment
`

Our Competitive ResponsesCompetitors Assessment
`
Slasher Sales
• Sales every end of the month
• Up to 70% discount
• Aim for big volume of sales

MARKETING OBJECTIVE
To attract and retain the Generation X customer to shop in the shopping
complex by:
Offering broad product / services line
Offering high quality product / service
Spending heavy promotional expenditure
Marketing Strategy
Marketing
Strategy

TYPES OF MARKETING STRATEGY
“PIONEER STRATEGY NICHE PENETRATION”
Primary Objective:
 To maintain leading share position in target segment that is the
Generation X
Strategic Objectives:
1. Increase Generation X awareness and willingness to buy
MARKETING PROGRAM:
 Heavy advertising directed to the Generation X to generate awareness by using radio, television,
newspaper, magazines, leaflet, flyers, social media (e.g. Facebook, Instagram)
 Extensive introductory sales promotions to induce trial, but focused on Generation X
 Offer free parking for certain limited time
 Offer meal voucher or cash rebate
2. Increase tenant ability to rent
MARKETING PROGRAM:
 Trade promotion aimed at gaining solid distribution among tenants (retailer) and distributors
pertinent for reaching Generation X
 Offer engineering installation
Marketing Strategy
Marketing
Strategy

Paco Underhill, the author of Why We Buy said, "In order to get
people to buy, you have to get them there, and the
entertainment coefficient in a mall is something that builds
traffic-pure and simple".
Therefore, shopping at this shopping complex should be a diverse
experience that the other shopping complex can’t offer.
Entertainment and recreational activities should be
incorporated within the Generation X experience.
The positioning theme will be developed based, not on its physical
attributes, but on Generation X feelings toward the shopping area.
The most important characteristics include a comfortable
atmosphere (local feel), friendly service,
appearance/cleanliness, convenience, quality of
merchandise and reasonable price.
Marketing
Strategy
POSITIONINGMarketing Strategy

1) Product decisions
Features
• Men & women fashion:
clothing, footwear, accessories,
timepiece
• Food & beverages:
restaurants, cafes, fast foods,
bakeries, food court
• Beauty & health:
pharmaceutical products,
supplements, health and
beauty items, and weight loss
products
• Home & living: hardware
shops, home improvement
store, furniture store
Marketing Strategy
•Kids: apparel, footwear, toy store,
accessories
• Leisure & entertainment: cinema, karaoke
• Services: ATM, post office & courier,
money changer, locksmith, cobbler
• IT & gadgets: telco shop, mobile shop,
computer shop
• Others: textiles, specialised clothing,
optical, clinic
• Facilities: information counter, shuttle
bus, baby care room, children playground,
boutique park, bazaar and flea market,
covered car park, shopper with special
needs such as elderly and handicapped
Marketing
Strategy

Augmented Products
• Level one (non-tangible physical
product)
Core benefit: a place to shop
• Level two (the tangible, physical
product)
Actual benefits: products retailers,
restaurants and services stores
Brand name: Padini, McDonalds,
Starbucks, etc.
• Level three (consists of lots of added
value) Augmented benefits:
entertainment, special needs, parks
and bazaar, leisure, banks
1) Product decisionsMarketing Strategy
Marketing
Strategy

Marketing Mix 4P’s : product, price, place, promotion
Develop Marketing Strategy
- market analysis
- segmentation
- targeting
- positioning
Marketing Mix Decision
- define the retailers and what products they sell
- distribution
- promotional strategies
Manage Demand curve
- demand price relation
2) Pricing decisionsMarketing Strategy
Marketing
Strategy

Cost
- all fixed and variable cost is calculated
- costs and profits are two dominant factors having direct impact on
selling price
- here, costs include rental building costs, building maintenance
costs, and marketing costs
Environmental Factors (PEST)
- political: pricing policies against rules and regulations prescribed by
the governments
- economic: big impact on price level and degree of variation in price
of the product. Example, price is kept high during inflationary
conditions.
- social: customers demographic background and purchasing power
: ready to pay high price for a quality and/or branded products
- technology: website and online shopping
Marketing
Strategy

• Set Pricing Objective
- profit maximization
- revenue maximization
- price stabilization
• Determination of Price
- use one or combination of the above factors and make a
pricing structure, give discounts etc.
• Quality Leadership
-use price to signal high quality, to position the product as
quality leaders
Marketing
Strategy

• distribution decisions focus on establishing a system that allows
customers to gain access and purchase a marketer’s product
• focus on establishing a system that allows customers to gain access
and purchase a marketer’s product
• determine what value a channel partner adds to the shopping
complex according to their products
• a good channel partners are influenced by their customer service,
delivery, and availability of their products
• understanding the basics of creating a distribution channel will help
us choose and manage the optimal selling avenues for our business.
Marketing
Strategy
3) Distribution decisionsMarketing Strategy

No.3 - Less direct channel
(manufacturer – distributor – user)
• This less direct channel works well when the
number of customers either goes up or down
• This channel is also helpful when the
intermediary functions increase
• Building material industries (shopping complex)
usually follow this distribution channel structure

Pull strategy
• motivate the gen X to seek out our shopping complex in an active
process
• getting the gen X to come to the shopping complex
• pull strategy works well with highly visible brands – in this case, the
name of the shopping complex & its’ existence in the residential area
• good brand awareness
Examples of pull tactics
• Advertising and mass media promotion
• Word of mouth from the residents
• Customer relationship management
• Sales promotions and discounts via direct mail or leaflets
Marketing
Strategy

Definition
The Free Management Library
defines Promotion as “to keep
the product in the minds of the
customer and helps stimulate
demand for the product.
Promotion involves ongoing
advertising and publicity
(mention in the press)."
Objective
To create a competitive
advantage through the use of
integrated marketing
communication
3) Promotional StrategyMarketing Strategy

Nur Shazreen Nadia
Wan Norafidah
Dedicated Team Members;
Prof Dr Sofiah
Special Thanks to;

Case Study on Shopping Mall for Gen X

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