A COMPARITIVE STUDY ON CITY 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 from concept 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, multiplex operations, brand valuation for mall, parking management, food court management, retain demand analysis, location analysis and site selection, store design, layout planning, footfalls and marketing 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 floors of the property. The remaining 15 floors are occupied by Hyatt Regency Chennai. Comparatively both the mall has almost same retail space.

Size

180,000sq.ft

201,879sq.ft

Tenant Mix

Complete mix of apparel, fashion accessories, consumer durables with a blend of few fast food kiosks makes its very interactive to customers but failed in forming a cluster.

The clusters of like and similar tenants can hold up the rent levels more Clusters of like and successfully than shops of similar type similar tenants together. being spread widely apart across the property. Though Ramee has made a good tenant mix doesnt attract much crowd. In case of city center its vise versa.

Anchor Store

Lifestyle, Landmark, INOX

Shoppers Stop, Q-Play

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 the 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 dont have any food & grocery supermarket, which is very unhealthy.

In both the malls vanilla stores were of similar size.

Vanilla Stores

Park Avenue, Indigo Nation, Timex, Eye T World, Mochi, Health & Glow, Archies, MAC, Biba, Begum etc.. Krylan etc..

Vanilla Stores in City center are low premium and budgeted brands where as in Ramee its more of luxury brands.

The walk ins is significantly very low in Ramee when compared to City center.

Walk ins (Approximate of the Mall)

Weekdays 15000 Weekends 25000

Weekdays 1500 Weekends 5000

The ratio of walk ins in each mall between weekdays and weekends City 1 : 2.4 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.

Walk ins in the Anchor Stores

70% - 80% of total walk ins

70% - 75% of total walk ins

But when actual numbers are taken it makes a huge difference City Center - 16000 Ramee - 2500

Likely conversions ( Your guesstimate) in Anchor Stores

On an average the conversion rate for City Center is 52% where as for Ramee its 70% LS - 45% - 50% LM - 30% - 40% INOX - 55% - 65% SS - 45% - 50% QP - 85% - 90% The Conversion for Q-Play is significantly high because its a destination point where people make a planned purchase.

Internal & External Branding

City Center has conceptualized a French Theme Differentiated in the form of Kiosks and Vanilla stores proportion

Ramee has conceptualized a Boutique Theme Differentiated in the form providing Services in the mall

There are a variety of ways to get in contact with customer service representatives in both the malls. The representative tries to make your shopping experience more enjoyable by providing General Mall Information, Mall Maps, Lost & Found, Mall Gift Cards, Wheelchairs, First Aid Announcement Services, etc.

Lay out

Designed in a double dumbbell shape, anchors Landmark and lifestyle occupying two different corners and vanilla retailers in the middle food court and Multiplex(INOX) is positioned on the top floor to attract consumers vertically up

The Ramee Mall is designed in a T shaped fashion (single dumbbell shaped), Anchor tenant Shoppers Stop at each floor end and vanilla retailers in the middle. food court is positioned on the top floor to attract consumers vertically up

Both the malls have strategically located their food court and entertainment zone at their top floors to bring the maximum foot traffic. But Ramee looks more organized when compared to City Center. Both the malls placed restrooms at the end of long service corridors.

Ground Floor Complete mix of kiosks, fashion accessories stores and consumer durables. (Impulse as well as planned purchase)

Ground floor International Luxury brands (Mostly Fashion Apparels) Impulse buying products

Ramee Malls tenant mix based on zoning not only helps attract and retain shoppers by offering them wide range of choices and satisfying multiple needs, but also facilitates the smooth movement of shoppers within the mall,

Zoning
1st and 2nd floor dominated by anchor stores(Landmark and Lifestyle) and some vanilla stores, Kiosks in the middle.(planned purchase) 1st and 2nd floor well known premium brands with consumer durable and fashion accessories. (Planned Purchase) Whereas in City Center few vanilla tenants have moved out (probably lockdown period would have expired) due to which the flow of similar tenants is missing. To overcome this gap City Center has converted dead space in the common area in to attractive kiosks.

Navigation ( Horizontal )

Ground, 1st, 2nd floor 40,000 sqft approx

44,000 sqft at the ground floor, 50,000 sqft on the first floor, 75,000 sqft on the second floor and 50,000 sqft as parking space.

The size of the floors is almost same in both the malls. People tend to cover entire floor very well, but still the navigational movement horizontally is comparatively good in City center than Ramee. Ramee has got some dead drop points in its 1st & 2nd floor and some tenants are yet to come.

Navigation ( Vertical )

5 floors + 1(parking)

3 floors + 1(parking)

The Vertical Navigation is good in both the malls, strategically located food court and entertainment zone at their top floors to bring the maximum foot traffic. Since Ramee mall has got only 3 floors, the traffic travels all the way up to the top floor with minimal reduction of footfalls in each floor.

Proportion of Retail, Entertainment, Food & Services

Ret - 60% Ent - 15% Food- 20% Serv - 5%

Ret - 50% Ent - 20% Food- 20% Serv 10%

Ramee has got comparatively more number of service providers than any other malls in Chennai, the reason is their main customer base is from Hyatt Regency, to serve them Ramee has come up with too many service providers.
(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 covered Car/Bike Parking facility available (70k sqft) Open Air Parking available inside the mall premises Underground Covered Car/Bike Parking facility available (50k sqft) Open Air Parking available inside the mall Smart car parking in City Center enables customer to choose their parking plan depending upon their usage hours. Its good to have such a plan. In near future it is expected that

Facilities Car Parking / Bike Parking

premises Pickup / Drop point available Smart car parking Valet Parking available Pickup / Drop point available

all the malls will follow such a plan. Though both the malls have Pickup / Drop points, only in Ramee it serves well. The multiple lanes at the entrance of city center confuse people so that drop point doesnt cater its purpose.

Car-Rs20/ 1st hr Additional Rs10/hr Car -Rs30/per day

Charges

Bike -Rs15/1st hr Additional Rs5/hr Bike -Rs20/per day Full day parking-Rs40 on weekdays and Rs60 on weekends

The car parking fee at Ramee mall is a standard Rs.30 irrespective of the number of hours spent. However they need to have an arrangement or consideration for people who need to come and leave within 15min? (like say - pick up a baggage from store/ return an item/ pick up an alteration given). City Center has customized its parking charges in such a way that customer can avail their parking coupon in hourly or full day basis

Roof top fine dining with scenic beach view Toilets separate for customers and Staff Building and floor directories detection system Water softening and purification Signage directing customers towards elevators, toilets and fire exits

Digital mall directory at multiple points Toilets separate for customers and Staff Water softening and purification Signage directing customers towards elevators, toilets and fire exits Uninterrupted power supply with power backup Emergency lighting in all areas

Ramee follows a user friendly touch screen enabled digital mall directory, where as in City Center they follow the printed mall directory displayed beneath a huge transparent glass. The Roof top fine dining with scenic beach view is really outstanding, no other malls in Chennai has such facility. Ramees signage is significantly good in terms of visibility, font size, font color and readability when compared to City center. City Center has to improve its power supply to next level; there is a gap of few minutes when it turns from direct current to generator.

Other Facilities

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 shopping mall built with a French theme, both the exteriors and interiors designed based on French architecture. The mall provides premium and budget products catering to the middle class (socio-economic classification B1, B2, C consumers) Positioned itself as a boutique Shopping Mall and Entertainment destination. Ramee is clearly perceived as a mall for entertainment. Q-Play Bowling Alley, Video games, and a kids entertainment zone appear to support the perception. Another factor contributing to the perception is the absence of a departmental store like Big Bazaar or Easy Day in the mall. City Center is also clearly perceived as a mall for entertainment. The mall having low range of shops is hardly 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.

Customer Profiling & Mall Positioning

The mall provide high-end luxury products catering to the elite class (socio-economic classification A and B consumers)

Weekdays: Least crowded 10am 11am Most crowded- 6pm to 9pm Weekends: Least crowded 12pm 1pm Most crowded- 4pm to 9pm

Weekdays: Least crowded 10am 1pm Most crowded- 6pm to 9pm Weekends: Least crowded 10pm 1pm Most crowded- 6pm to 9pm

Least and Most crowed time of the week

The Least and Most crowded time in weekdays is more or less same in both the malls. But there is a significant difference in weekends. It is because of the prime location of City Center which is very near to Marina Beach, Kapaleeswarar temple and Santhome Bascillica which are tourist spots and naturally Chennai Citi Center also attracts many tourists.

Marketing & Promotion activities conducted by the Mall

At least one or two events per week. Uses Print media for marketing & promoting

One or two events per month. Highly Involved with Social networking websites to marketing & promoting

Organizing cultural events has proved vital in attracting consumers to a mall. City Center is keener on such activities, which also act as a differentiator for the mall.

In city center when a customer shops at their anchor stores, they reimburse the parking fee paid.

CRM measures used by the Mall

Parking Coupons from Anchor tenants (typically not a CRM measure)

Loyalty cards provided for Hyatt Regency customers

In Ramee Mall a special loyalty card is given to Hyatt Regency 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, metal detectors at all entry points Patrol & Escort crew available 2 Emergency exits

CCTV equipped metal detectors at all entry points Emergency Phones or Call Boxes multiple fire escape routes with panic doors Equipped with automatic fire suppression systems, smoke detectors, heat detectors, fire extinguishers, safety masks, oxygen cylinders First aid kits, ambulances on duty Both the malls need to have those signing boards that will clearly tell people where from and how to escape. Today these malls are not just visited by educated crowd. If people are educated and made to understand there will be less panic and we can avoid mishaps. Ramee mall has Emergency Phones which is highly visible, located in parking areas and in the mall itself. I personally encourage such measures, and this has to be followed in all the malls.

Safety & Security measures of the Mall

Equipped with Fire alarm and fire extinguishers, safety masks, oxygen cylinders, sufficient water sources etc..

First aid kits

No of Employees working in the Mall ( approximate )

150 200

80 100

Though the size of both the malls looks similar, the no of employees working in city center is double the time when compared to Ramee. The reason behind this is the footfalls. Footfalls play a key role in determining no of employees in a mall. More the footfalls, more employees to manage.

Lighting

35% natural lighting

10% natural lighting

City Center is built up with a French theme, taking inspiration from traditional French culture. The Roof allows natural light to pass through. Natural lighting helps to create a 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 uniform all over the mall Central atrium was super hot and humid

Temperature was uniform all over the mall except some dead drop spots

City Centers air-conditioning is not good enough to relieve people from heat. Having such good foot traffic City Center has to do something about this. Ramee should improve on using power supply at an optimal level and reduce wastage.

A/C

*Time of visit : Saturday 2pm

*Time of visit: Friday 12.30pm

Ambience & comfort inside

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.. Rating: 2.5/5 Rating: 4/5 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.

Kiosks vs Retail stores

30% - 35% of the shops are Kiosks

Hardly 6-8% of the shops are Kiosks

Looking at the bigger picture considering malls catchment, demographics, and customer profiling both the malls has good spread of kiosks.

16 yrs 26yrs (Students & Bachelors) : 3 to 4 hrs 26yrs 30yrs (Married Couples): 2 to 3 hrs 30yrs 40yrs (Married Couples with Children): 2 to 2.5hrs 45yrs to 55yrs: 2 to 3 hrs Above 55yrs 1 to 2.5 hrs

16 yrs 26yrs (Students & Bachelors) : 3 to 4 hrs 26yrs 30yrs (Married Couples): 2 to 2.5 hrs 30yrs 40yrs (Married Couples with Children): 1 to 2.5hrs 45yrs to 55yrs: 2 to 3 hrs Above 55yrs 1 to 2.5 hrs

Average time likely to be spent by customer ( according to profile )

In both the malls, the average time spent in entertainment zone is high, also the maximum time is spent by age group of 16 to 26yrs.

Staffs wear a uniform

Staffs dont wear a uniform Knowledge about the mall is very bad

Wearing uniform can distinguish employees and customers. Ramee Mall should work hard on educating their employees; make them in line with mall branding.

Mall employees

Knowledge about the mall is very good

Restroom Maintenance

Rating: 1/5

Rating 4.5/5

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 City center are tucked into the corners and 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.

Connectivity

Well connected by MRTS elevated rail network and MTC buses. walk able distance from Marina beach

Connected only by MTC buses as of now. Metro Rail system is in progress right now, but it will take 2 yrs to complete

City Center is very well connected in terms of public transportation than any other malls in Chennai. The ongoing Metro Rail construction would take 1.5 years to complete; once it is completed Ramee will get a significantly a better connectivity.

Landmark

Marina Beach

Anna Arivalayam

City Center has its competitive advantage on its location. It is very near to Marina Beach, Kapaleeswarar temple and Santhome Bascillica which are tourist spots.

Traffic Management

2 entry/exit points + 1 for parking

Single entry/exit point + 1 for parking

With three entry points, traffic Management within the mall is better organised in City Centre. Also, the strategically located exits ensure that 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 good location but City Center being very near to Marina Beach, Kapaleeswarar temple and Santhome Bascillica which are tourist spots makes it a competitive advantage. Ramee has got a cluster of tenants, the customer perception is that the property offers greater variety and therefore will have the item that the customer seeks. The customer is therefore more likely to visit the property and acquire goods. City Center doesnt have a cluster pattern instead they have sprinkled Kiosks all over the mall which have a 360 degree exposure and are placed in high customer traffic areas. But too many kiosks may look bad; it can give a high street shopping experience to customers. City center has to significantly reduce the number of kiosks to survive in the near future. Both the malls have restaurants, entertainment and movie theaters (yet to come in Ramee) to the mix. In addition to generating regular traffic, supermarkets can fill vacant spaces left by closed department stores or other large tenants. Its a way to lease space to somebody who generates a lot of traffic on an ongoing basis. And because the mall pulls people from a greater distance [than a shopping center], its now seen as a pretty good place for food stores to locate. Like in a movie, storylines help create a consistent look and feel to the space. Many times the story is part of the architectural and interior concept. In both the malls, the lighting was different and supportive of the storyline. Lighting design complements and adds to the scheme. Further to this, Signages used in Ramee mall show contrast of dark solid figure against a white background and significant to be seen by the visually handicapped and the aged. City Center uses fancy signage using Queen and King is confusing and should not be encouraged. It is not easily distinguished by the visually handicapped and the aged. Both the malls have placed restrooms at the end of long service corridors. Unfortunately I can only give City Center a rating of 1 out 5 stars because the bathrooms are gross. There is always a line. They smell bad. They are always dirty and in need of attention. Ineffective ventilation makes restrooms unbearable. Ramee has to work on drafting marketing strategies for them to meet the needs of the local consumer base and the challenges of local and regional competitors. I personally feel Ramee to take responsibility to generate productive footfall by signing up for revenue share and lowered rentals.

Ramee has to consider putting their employees in uniforms. There is a famous quote you dress your employees to match your brand. Once the mall opens up and the number of vacant shops is huge, the consumer perceives the mall as lacking because in an enclosed space the unlet premises are extremely conspicuous. This leads to a bad first impression in the consumers mind. The same applies to a tenant too, if prospective tenants see more of unlet areas, they perceive the mall as having failed to attract tenants and may even change their mind to set up shop in the mall. Unfortunately, both the malls fall in to this. Its time to start working on this gap. CONCLUSION Positioning & profiling of the Mall plays an important role for the success of any Mall. A very well designed Mall constructed with lot of aesthetics can be a failure if the positioning and profiling is not done in a professional way. After positioning, Zoning & Profiling of the Mall is a very 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 the Mall. It is important to know that, even though both the malls carry shopping goods, entertainment and food, perception of the target population varies from mall to mall. Perception has taken a tilt towards the dominant component of the mall could be entertainment, shopping or some other aspect. It is clear that both the malls are centrally located. The only difference is that the target segment is different. City Center caters to the middle income group, where as Ramee caters to the upper income segments.