Just recently we were invited to present our profile and idea to a group of General Mangers and Marketing Managers of a development company who is developing an upscale shopping mall. Before we could really begin to present our thoughts, we were bombarded with this question: “How can we get the target tenants into their mall?” And the whole was only focused on that particular problem that they could seem to solve. To us the answer to the problem is simple Marketing Planning. Simple Economic and Marketing is more than enough to solve their worries or problem.
They should just step into the shoes of their potential tenants and they would realize what tenants want in return for paying the extra cost they would have to endure if they operate in shopping malls. If I am paying for the high rental fees and maintenance fees, all I want is as follows (demand part of the equation):
- A steady flow of quality consumers,
- A good steady flow of revenue income,
- Optimal efficiency of income over cost,
- No or low direct competition within the mall,
- A well structured and organized management to handle issues that may occur.
So, as the Management of the shopping mall they would need to make sure happens is the placement of the followings before they can really speak of attracting potential tenants (supply part of the equation):
- A forward looking vision of the mall as a whole,
- A proper detailed marketing plan for the mall as a whole and for the individual tenants,
- A niche or specialty that attracts constant flow of quality shoppers for the long run,
- A plan to optimize not only revenue income but the also the profitability of their tenants,
- A reduced supply of competition, • A strong professional team to run and manage the shopping mall and to serve the tenants,
- A well plan traffic flow or circulation of shoppers within and out of the mall.
If I am to pay for the high cost involved in operating in shopping malls, I would need to first be sure that I can make sufficient margins to pay for the costs and still make a hefty profit or better profits as compared to the current made at the current location. What businesses want is just a simple brighter future, as with everyone on this island!