A COMPARITIVE STUDY ONCITY CENTER AND RAMEE MALL Pradeep.M Roll.No: 45 Mall Management March 2013 Chennai Business School
Learning Outcomes:The main objective of the study is to learn various steps to successful establishing of Mall fromconcept stage to opening of the mall and then managing it further with best practices of CRM,marketing, operations, leasing, tenant mix, facilities management, atmospherics,communication mix and other add-ons like entertainment options, its importance, multiplexoperations, brand valuation for mall, parking management, food court management, retaindemand analysis, location analysis and site selection, store design, layout planning, footfalls andmarketing planning , Maintenance management, etc..The Study focuses in depth in • Understanding the concept of Zoning and Tenant mix across two different malls • Get an idea of role and significance of different types of tenants like, anchor tenants and vanilla tenants • Knowing about major issues concerning tenants and tenant mix management • Understanding the concept and need for marketing and promotional activities in a mall • How Mall positioning and Customer profiling is integrated • Effectiveness of Horizontal and Vertical navigation • Role of Anchor Tenants and its correlation with Footfalls • Proportion of Retail-Food-Entertainment-Services and its importance for a mall.
Parameters City Center Ramee Mall Remarks City Center is situated at Mylapore which is a cultural hub and neighborhood in the southern part of the city of Chennai, the catchment areas are Mandaveli, Adyar, Marina, Royapettah, Mountroad etc..Location Mylapore Teynampet Ramee Mall is situated in the heart of Chennai, Anna Salai Teynampet which covers the main areas like T.Nagar, Nungambakkam, Egmore, Mylapore, Gopalapuram ,Royapettah, Alwarpet etc, City Center occupies first five floors of the property. The remaining 5 floors are occupied by corporate offices. Ramee mall occupies the first three 180,000sq.ft 201,879sq.ft floors of the property. The remainingSize 15 floors are occupied by Hyatt Regency Chennai. Comparatively both the mall has almost same retail space. Complete mix of apparel, The clusters of like and similar tenants fashion accessories, can hold up the rent levels more consumer durables with a Clusters of like and successfully than shops of similar type blend of few fast food similar tenants together. being spread widely apart across theTenant Mix kiosks’ makes its very property. Though Ramee has made a interactive to customers good tenant mix doesn’t attract much but failed in forming a crowd. In case of city center its vise cluster. versa. The presence of a strong Anchor store is also a very critical factor in determining the success of that mall. Strong brands like Lifestyle & Shoppers Stop acts as a pillar to protect the brand. They attract the majority of theAnchor Store Lifestyle, Landmark, INOX Shoppers Stop, Q-Play customer through their brand names & it results in the increase of footfalls in the malls & thereby generating more sales to other stores also. Both the malls don’t have any food & grocery supermarket, which is very unhealthy.
In both the malls vanilla stores were of similar size. Park Avenue, Indigo Nation, Timex, Eye T World, Mochi, Health & Glow, Archies, MAC, Biba,Vanilla Stores Begum etc.. Krylan etc.. Vanilla Stores in City center are low premium and budgeted brands where as in Ramee it’s more of luxury brands. The walk ins is significantly very low in Ramee when compared to City center. The ratio of walk ins in each mallWalk ins Weekdays – 15000 Weekdays – 1500 between weekdays and weekends(Approximate of Weekends – 25000 Weekends – 5000 City – 1 : 2.4the Mall) Ramee – 1: 3.33 The walk ins is actually 3.3 times more in Ramee during weekends than weekdays. More or less the percentage of walk ins to the anchor stores in both the malls is same. 70% - 80% of total walk ins 70% - 75% of total walkWalk ins in the ins But when actual numbers are taken itAnchor Stores makes a huge difference City Center - 16000 Ramee - 2500 On an average the conversion rate for City Center is 52% where as for Ramee its 70%Likely conversions LS - 45% - 50% SS - 45% - 50%( Your LM - 30% - 40% QP - 85% - 90%guesstimate) in INOX - 55% - 65% The Conversion for Q-Play isAnchor Stores significantly high because it’s a destination point where people make a planned purchase.
There are a variety of ways to get in City Center has Ramee has contact with customer service conceptualized a French conceptualized a representatives in both the malls. The Theme Boutique Theme representative tries to make yourInternal & External shopping experience more enjoyableBranding Differentiated in the form Differentiated in the by providing General Mall Information, of Kiosks and Vanilla stores form providing Services Mall Maps, Lost & Found, Mall Gift proportion in the mall Cards, Wheelchairs, First Aid Announcement Services, etc. Designed in a double The Ramee Mall is dumbbell shape, anchors designed in a ‘T’ shaped Both the malls have strategically Landmark and lifestyle fashion (single dumbbell located their food court and occupying two different shaped), entertainment zone at their top floors corners and vanilla retailers Anchor tenant Shoppers to bring the maximum foot traffic. in the middle Stop at each floor endLay out and vanilla retailers in But Ramee looks more organized food court and the middle. when compared to City Center. Multiplex(INOX) is positioned on the top floor food court is positioned Both the malls placed restrooms at the to attract consumers on the top floor to end of long service corridors. vertically up attract consumers vertically up Ramee Mall’s tenant mix based on zoning not only helps attract and Ground Floor – Complete Ground floor – retain shoppers by offering them wide mix of kiosk’s, fashion International Luxury range of choices and satisfying accessories stores and brands (Mostly Fashion multiple needs, but also facilitates the consumer durables. Apparels) Impulse smooth movement of shoppers within (Impulse as well as planned buying products the mall, purchase)Zoning Whereas in City Center few vanilla 1st and 2nd floor dominated 1st and 2nd floor well tenants have moved out (probably by anchor stores(Landmark known premium brands lockdown period would have expired) and Lifestyle) and some with consumer durable due to which the flow of similar vanilla stores, Kiosk’s in the and fashion accessories. tenants is missing. To overcome this middle.(planned purchase) (Planned Purchase) gap City Center has converted dead space in the common area in to attractive kiosks.
The size of the floors is almost same in 44,000 sqft at the both the malls. People tend to cover ground floor, entire floor very well, but still the 50,000 sqft on the first navigational movement horizontally is Ground, 1st, 2nd floor – floor, comparatively good in City center thanNavigation 40,000 sqft approx 75,000 sqft on the Ramee.( Horizontal ) second floor and 50,000 sqft as parking Ramee has got some dead drop points space. in its 1st & 2nd floor and some tenants are yet to come. The Vertical Navigation is good in both the malls, strategically located food court and entertainment zone at their top floors to bring the maximum footNavigation 5 floors + 1(parking) 3 floors + 1(parking) traffic. Since Ramee mall has got only( Vertical ) 3 floors, the traffic travels all the way up to the top floor with minimal reduction of footfalls in each floor. Ramee has got comparatively more number of service providers than any other malls in Chennai, the reason is their main customer base is fromProportion of Ret - 60% Ret - 50% Hyatt Regency, to serve them RameeRetail, Ent - 15% Ent - 20% has come up with too many serviceEntertainment, Food- 20% Food- 20% providers.Food & Services Serv - 5% Serv – 10% (Air/Train ticket booking, Spa/Saloon, Money transfer/exchange, ATM, Photo shoot, International Courier, Mehandi, Tour consulting etc..) Both the malls made good proportion that caters their customer base. Both the malls provide comparatively good ample parking and maneuvering of cars from the parking lot. 2 floors of underground Underground Covered covered Car/Bike Parking Car/Bike Parking facility Smart car parking in City Center facility available (70k sqft) available (50k sqft) enables customer to choose theirFacilities – Car parking plan depending upon theirParking / Bike Open Air Parking available Open Air Parking usage hours. It’s good to have such aParking inside the mall premises available inside the mall plan. In near future it is expected that
premises all the malls will follow such a plan. Pickup / Drop point available Valet Parking available Though both the malls have Pickup / Drop points, only in Ramee it serves Smart car parking Pickup / Drop point well. The multiple lanes at the available entrance of city center confuse people so that drop point doesn’t cater its purpose. The car parking fee at Ramee mall is a standard Rs.30 irrespective of the number of hours spent. Car-Rs20/ 1st hr However they need to have an Additional Rs10/hr arrangement or consideration for Car -Rs30/per day people who need to come and leave Bike -Rs15/1st hr within 15min? (like say - pick up aCharges Additional Rs5/hr baggage from store/ return an item/ Bike -Rs20/per day pick up an alteration given). Full day parking-Rs40 on weekdays and Rs60 on City Center has customized its parking weekends charges in such a way that customer can avail their parking coupon in hourly or full day basis Digital mall directory at Ramee follows a user friendly touch Roof top fine dining with multiple points screen enabled digital mall directory, scenic beach view where as in City Center they follow the Toilets – separate for printed mall directory displayed Toilets – separate for customers and beneath a huge transparent glass. customers and Staff Staff The Roof top fine dining with scenic Water softening and beach view is really outstanding, no Building and floor purification other malls in Chennai has suchOther Facilities directories detection facility. system Signage directing customers towards Ramee’s signage is significantly good Water softening and elevators, toilets and in terms of visibility, font size, font purification fire exits color and readability when compared to City center. Signage directing Uninterrupted power customers towards supply with power City Center has to improve its power elevators, toilets and fire backup supply to next level; there is a gap of exits few minutes when it turns from direct Emergency lighting in all current to generator. areas
Both the malls has well defined the category of services offered based on demographics, psychographics, income levels, competition in neighboring areas and extensive market research of the catchment. Positioned itself as a "family destination Positioned itself as a Ramee is clearly perceived as a mall shopping mall built with a “boutique Shopping for entertainment. Q-Play Bowling French theme, both the Mall and Entertainment Alley, Video games, and a kid’sCustomer Profiling exteriors and interiors destination”. entertainment zone appear to support& Mall Positioning designed based on French the perception. Another factor architecture. contributing to the perception is the The mall provide absence of a departmental store like The mall provides premium high-end luxury Big Bazaar or Easy Day in the mall. and budget products products catering to the catering to the middle class elite class City Center is also clearly perceived as (socio-economic (socio-economic a mall for entertainment. The mall classification B1, B2, C classification A and B having low range of shops is hardly consumers) consumers) visited for purchasing goods, with lifestyle, Landmark and INOX as anchor stores; it is a hang out place for the population in the catchment area, especially students. Weekdays: Weekdays: Least crowded – 10am – Least crowded – 10am – The Least and Most crowded time in 11am 1pm weekdays is more or less same in both the malls. But there is a significant Most crowded- 6pm to Most crowded- 6pm to difference in weekends. It is because 9pm 9pm of the prime location of City CenterLeast and Most which is very near to Marina Beach,crowed time of Weekends: Weekends: Kapaleeswarar temple and Santhomethe week Least crowded – 12pm – Least crowded – 10pm – Bascillica which are tourist spots and 1pm 1pm naturally Chennai Citi Center also attracts many tourists. Most crowded- 4pm to Most crowded- 6pm to 9pm 9pmMarketing & At least one or two events One or two events per Organizing cultural events has provedPromotion per week. month. vital in attracting consumers to a mall.activities Highly Involved with City Center is keener on such activities, Uses Print media for Social networking which also act as a differentiator forconducted by the marketing & promoting websites to marketing & the mall.Mall promoting
In city center when a customer shops at their anchor stores, they reimburse the parking fee paid. Parking Coupons from Loyalty cards provided In Ramee Mall a special loyalty card isCRM measures Anchor tenants (typically for Hyatt Regency given to Hyatt Regency customersused by the Mall not a CRM measure) customers where they can avail discount if they make a minimum purchase of Rs.5000 Both the malls follow a healthy practice which motivates customer in shopping and makes loyal towards the mall. CCTV equipped, CCTV equipped metal detectors at all entry metal detectors at all Both the malls need to have those points entry points signing boards that will clearly tell people where from and how to Patrol & Escort crew Emergency Phones or escape. Today these malls are not just available Call Boxes visited by educated crowd. If people are educated and made to understand 2 Emergency exits multiple fire escape there will be less panic and we canSafety & Security routes with panic doors avoid mishaps.measures of the Equipped with Fire alarmMall and fire extinguishers, Equipped with Ramee mall has Emergency Phones safety masks, oxygen automatic fire which is highly visible, located in cylinders, sufficient water suppression systems, parking areas and in the mall itself. I sources etc.. smoke detectors, heat personally encourage such measures, detectors, fire and this has to be followed in all the extinguishers, safety malls. First aid kits masks, oxygen cylinders First aid kits, ambulances on duty Though the size of both the malls looks similar, the no of employees workingNo of Employees in city center is double the time when compared to Ramee. The reasonworking in the 150 – 200 80 – 100 behind this is the footfalls.Mall (approximate ) Footfalls play a key role in determining no of employees in a mall. More the footfalls, more employees to manage.
City Center is built up with a French theme, taking inspiration from traditional French culture. The Roof allows natural light to pass through. 35% natural lighting 10% natural lighting Natural lighting helps to create aLighting softer, friendlier environment. Ramee is built up with Boutique theme where electrical lighting is very essential to maintain the consistency of look and feel of the place. Temperature was not Temperature was City Center’s air-conditioning is not uniform all over the mall uniform all over the mall good enough to relieve people from except some dead drop heat. Having such good foot traffic City Central atrium was super spots Center has to do something about this. hot and humidA/C Ramee should improve on using power supply at an optimal level and reduce *Time of visit : Saturday 2pm *Time of visit: Friday 12.30pm wastage. The rating is given considering the factors like Management of parks, fountains, overall look of the mall, Lush green landscaping with seating Facilities, Infrastructure, Hygiene etc..Ambience & Rating: 2.5/5 Rating: 4/5comfort inside City Center should improve the overall shopping experience provided for consumers because at the end it becomes an important factor for the success of any mall. The number of Kiosks in city center is comparatively very high than Ramee mall. 30% - 35% of the shops are Hardly 6-8% of theKiosk’s vs Retail Kiosk’s shops are Kiosk’s Looking at the bigger picturestores considering mall’s catchment, demographics, and customer profiling both the malls has good spread of kiosks.
16 yrs – 26yrs 16 yrs – 26yrs (Students & Bachelors) : (Students & Bachelors) : 3 to 4 hrs 3 to 4 hrs 26yrs – 30yrs 26yrs – 30yrs (Married Couples): (Married Couples):Average time 2 to 3 hrs 2 to 2.5 hrs In both the malls, the average timelikely to be spent spent in entertainment zone is high,by customer ( 30yrs – 40yrs 30yrs – 40yrs also the maximum time is spent by ageaccording to (Married Couples with (Married Couples with group of 16 to 26yrs.profile ) Children): 2 to 2.5hrs Children): 1 to 2.5hrs 45yrs to 55yrs: 45yrs to 55yrs: 2 to 3 hrs 2 to 3 hrs Above 55yrs Above 55yrs 1 to 2.5 hrs 1 to 2.5 hrs Staff’s don’t wear a Wearing uniform can distinguish Staff’s wear a uniform uniform employees and customers.Mall employees Knowledge about the mall Knowledge about the Ramee Mall should work hard on is very good mall is very bad educating their employees; make them in line with mall branding. The restrooms in Ramee mall are in line with latest infrastructure and simply at its best. They are super clean and well stocked, but restrooms in CityRestroom Rating: 1/5 Rating 4.5/5 center are tucked into the corners andMaintenance are much disproportionate compared to the area and footfalls of the mall. They smell like no other, forcing you to hold your breath, and run out quickly. Connected only by MTC City Center is very well connected in Well connected by MRTS buses as of now. terms of public transportation than elevated rail network and any other malls in Chennai. MTC buses. Metro Rail system is inConnectivity progress right now, but The ongoing Metro Rail construction walk able distance from it will take 2 yrs to would take 1.5 years to complete; Marina beach complete once it is completed Ramee will get a significantly a better connectivity.
City Center has its competitiveLandmark Marina Beach Anna Arivalayam advantage on its location. It is very near to Marina Beach, Kapaleeswarar temple and Santhome Bascillica which are tourist spots. With three entry points, traffic Management within the mall is betterTraffic 2 entry/exit points + 1 for Single entry/exit point + organised in City Centre. Also, the parking 1 for parking strategically located exits ensure thatManagement moviegoers can get back to the mall for a quick dinner or even a late night shopping trip.
Report: A good location defined in terms of factors like ease of access via roads, good visibility,etc. is considered as one of the prime prerequisites for a mall. Both the malls have a very goodlocation but City Center being very near to Marina Beach, Kapaleeswarar temple and SanthomeBascillica which are tourist spots makes it a competitive advantage.Ramee has got a cluster of tenants, the customer perception is that the property offers greatervariety and therefore will have the item that the customer seeks. The customer is thereforemore likely to visit the property and acquire goods. City Center doesn’t have a cluster patterninstead they have sprinkled Kiosks all over the mall which have a 360 degree exposure and areplaced in high customer traffic areas. But too many kiosks may look bad; it can give a highstreet shopping experience to customers. City center has to significantly reduce the number ofkiosks to survive in the near future.Both the malls have restaurants, entertainment and movie theaters (yet to come in Ramee) tothe mix. In addition to generating regular traffic, supermarkets can fill vacant spaces left byclosed department stores or other large tenants. It’s a way to lease space to somebody whogenerates a lot of traffic on an ongoing basis. And because the mall pulls people from a greaterdistance [than a shopping center], it’s now seen as a pretty good place for food stores tolocate.”Like in a movie, storylines help create a consistent look and feel to the space. Many times thestory is part of the architectural and interior concept. In both the malls, the lighting wasdifferent and supportive of the storyline. Lighting design complements and adds to the scheme.Further to this, Signage’s used in Ramee mall show contrast of dark solid figure against a whitebackground and significant to be seen by the visually handicapped and the aged. City Centeruses fancy signage using “Queen” and “King” is confusing and should not be encouraged. It isnot easily distinguished by the visually handicapped and the aged.Both the malls have placed restrooms at the end of long service corridors. Unfortunately I canonly give City Center a rating of 1 out 5 stars because the bathrooms are gross. There is alwaysa line. They smell bad. They are always dirty and in need of attention. Ineffective ventilationmakes restrooms unbearable.Ramee has to work on drafting marketing strategies for them to meet the needs of the localconsumer base and the challenges of local and regional competitors. I personally feel Ramee totake responsibility to generate productive footfall by signing up for revenue share and loweredrentals.
Ramee has to consider putting their employees in uniforms. There is a famous quote “you dressyour employees to match your brand”.Once the mall opens up and the number of vacant shops is huge, the consumer perceives themall as lacking because in an enclosed space the unlet premises are extremely conspicuous.This leads to a bad first impression in the consumer’s mind. The same applies to a tenant too, ifprospective tenants see more of unlet areas, they perceive the mall as having failed to attracttenants and may even change their mind to set up shop in the mall. Unfortunately, both themalls fall in to this. It’s time to start working on this gap.CONCLUSION Positioning & profiling of the Mall plays an important role for the success of any Mall. Avery well designed Mall constructed with lot of aesthetics can be a failure if the positioning andprofiling is not done in a professional way. After positioning, Zoning & Profiling of the Mall is avery critical aspect. It requires lot of planning and understanding the psyche of the buyers.Right mix of the brands and products with right zoning & profiling is a key to success of theMall.It is important to know that, even though both the malls carry shopping goods, entertainmentand food, perception of the target population varies from mall to mall. Perception has taken atilt towards the dominant component of the mall could be entertainment, shopping or someother aspect. It is clear that both the malls are centrally located. The only difference is that thetarget segment is different. City Center caters to the middle income group, where as Rameecaters to the upper income segments.