strategic marketing to enhance centre productivity...secondary target audienceabc1 women, 25-55...

Strategic Marketing to enhance

Centre Productivity

Prof. Dr. Filipa Fernandes

A good strategy should be

concrete on the inside and

chewing gum on the outside, not

the other way around.

External Challenges

• Political Climate

• Economy

• Trade Area Turnover Potential

• Consumer Attitudes and Actions

• Competition

“It is only when the tide goes out …

that you can see who has been swimming without their trunks

on”

Warren Buffet

Global Economic Squeeze

Internal/Industry Challenges

• Retailer Performance

• Property Positioning/Branding

• Ownership Priorities

• Questioning Marketing’s Contribution

• Centre Potential

• Size of Budget

• On-line retailing

The Property as Product

• Analysing the centre– Competitive Advantages

– Competitive Disadvantage

– Physical Characteristics

– Merchandise Opportunities

Everyone should conduct an annual

shopping centre audit.

Conducting a shopping centre

audit

A vibrant destination ?

Marketing Audit

• Audit process

• What are we trying to achieve ?

• Best Practice

• Competitive schemes – key issues

• What makes Diagonal Mar different ?

• Brand Values

• Brand Communication

• Budget

• Review customer targeting

Barcelona Shopping

Centres

www.barcelonaby.com

www.geographyfieldwork.com

www.aboutbarcelona.com

http://w3.bcn.es/ab/asia/equipment/controller

www.softguides.com/barcelona/shopping/shopping.html

http://www.bcninternet.com/touristinfo.php

http://en.wikipedia.org/wiki/Avinguda_diagonal

www.barcelonaconnect.com

www.webarcelona.net/shopping/shopping.htm

www.world66.com/europe/spain/catalonia/barcelona/shopping

www.travelmail.co.uk/guide/destination_guide_page.html

www.sidestep.com/travel-info

www.aedec.com/ingles/imprimibles/schistory

Barcelona Web links referring to shopping in the city

Audit Process

– Events plan, little measurement, unfocused

– Budget unrelated to targets

– Campaign lacked consistency and messages

– Lack of community focus

– No apparent press/profile strategy

– Lacking in retailer communication/feedback

– Short term planning

– No local pride

Diagonal Mar research summary

• Exit survey

– 45% live locally

– 54% outside area

– 44% female

– Social class bias to Average +

– 75% employed

– 42% car / 35% foot

– 50% visit weekly and average dwell is 1hr 16 mins

– Respondent spend €63

– Stores visited Alcampo, FNAC, ZARA, MediaMarkt

Diagonal Mar research summary

• Marketing guidance

– Key motivators variety and choice of store/ accessibility/ service

– *High advertising recall of television(74% ) billboards (42%) and

bus (37%)

• Retailer popularity – MediaMarkt , FNAC, Cinemas

• Other destinations visited – leisure focus to Maquinista. Glories, El

Corte Inglés

• Of telephone survey 34% never visited despite *, but DM shoppers

are loyal

• There are perception issues on location, access and egress

• DM is largely a district centre despite size and regional aspirations

Competitive Centres

Does this address the

messages ?

Does this convey

brand values ?

Does this match our

customer profile ?

Brand values

fun

aspirational

contemporary

service

local pride

inclusive

stylish

fashionable

an ‘in’ place

family

accessible

scale

Press and Media

Messages

Focus on three key areas

• External

– Fashion

– Accessibility

– Community

• Internal

- retailers

- staff

-stakeholders

• Media selection

based on target selection

• Messages

or target focus

• ie access or

family/ fashionista’s

• Press, broadcast, web,

magazine, outdoor, ambient

Key Performance Indicators• Revenue - sales

• Reputation - brand

• Relationship – our audience

• If any marketing activity does not meet one or more

of the above KPI’s we do not consider it

• It helps to focus on the objectives

• It helps contain the budget

Marketing planningR

ES

EA

RC

H C

OLL

EC

TIO

N *

DA

TA R

EV

IEW

*Specific,

Measurable,

Achievable,

Realistic,

Timebound

SWOT

Strengths

• Size

• Range of stores

• Terrace/Leisure

• Car park ?

• Potential hotel/tourist market

• Environment/facilities

• Footfall

• Positive research reaction

Weaknesses

• Location ?

• Car park

• Lack of fashion offer

• PR perception

• Strength of competitors

• Lack of brand

• Architectural history

• Design/circulation

• Distance from city ‘centre’

• External impact/signage

SWOT

Opportunities

• New store openings

• Internal improvements

• Landlord investment

• Brand strength

• Marketing and

Communications strategy

• Positive management

• Improved CR

• Improved web platform

Threats

• Enhancements to local

competitor centres

• New floorspace in catchment

• Failure to deliver new retailers

• Reactive marketing

• Economic pressures on housing

market

• Reducing budgets

Targeted Marketing

• The use of the centre by the groups identified in

the research is commensurate with the

immediate population

• The aim is to focus the marketing spend on those

groups most likely to help achieve the agreed

objectives and spend targets

• Define the categories and match messages

– ie segmentation

1. Young People:

� Young Talents Campaign

� Barcelona TV Sponsorship

� Terrace Animation

2. Tourists:

� Bus Turístic Sponsorship

� Bookstyle + Bookstyle Pocket

� Prestige

� Time Out

� Metropolitan

3. Neighbours: � Local Community Activities

4. Accessibility:

� Next Stop Diagonal Mar

� Billboards

� Badalona Monologues

� City Buss

5. Brand Awareness:

� DiR Sponsorship

� DM Fashion VIP Team

� Press Bureau Fees

� TNC Sponsorship

7. Children:

� Carnival

� Father’s and Mother’s Day

� Easter Workshop

� Back to School Workshop

� Halloween

8. Fashion:

� January Sales

� July Sales

� Spring

� Fall

9. Christmas: � Christmas Advertisements

Investment on Media

Total Budget: 560.000 €

5%

22%

1%

33%

11%

2%

16%

10%

Young People Tourists Neighbours Accessibility

Brand Awareness Children Fashion Christmas

Reporting and Measurement

• Evaluation is key

– Traffic, sales, customer and retailer feedback, car

counts, surveys (qualitative and quantitative), web

data, event respondents, promoter feedback ; PR

measurement

• Event assessment v sales impact

• Sales promotion ROI

• Web analysis and registration/loyalty

Reporting and Measurement

• Measurement against objectives and timeframe

• Reporting – monthly and quarterly ; annual plan for

retailers and regular retailer updates

• Reporting for reporting sake is not effective

• If plan agreed report against the plan and budget

• PR plan to be measured against key messages

• Consider performance fees for third parties achieving

targets

Diagonal Mar Objectives

• To increase spend from €63 to €70 by end 2008

• To increase dwell time to 1 hour 30 mins by mid 2009

• To drive the affluent customer segments by 10% by mid 2009

• Reduce ‘non-visitors’ response by 10% by mid 2009

• To increase positive media coverage of key messages by 25% by end

2008

• To extend penetration of extended catchment by 5% by mid 2009

• To revive and refresh the brand with positive recall in all chosen

market groups ( Focus groups – Spring 2009 )

Actions and priorities

2008 2009

Marketing Planning Budget review Budget review

Web Site Creative review Tourism initiatives

Segmentation of customer

groups

Review in-line with new stores New store openings

Third party agencies

setting targets

Experiential marketing Gift card

Loyalty programme

CR plan Media Relations focus Re-brand

Transition brand Business Campaign Brand development

Leasing Support Customer Services Leasing support

Recruitment Events programme City wide sponsorship

Communication to

retailers

Commercialisation Major integrated

capmpaign

Integrated Marketing

• Contributes to objectives on all levels

• Seeks to deliver holistic approach

• Involves range of skill sets – marketing, media, PR and

events;

• Underlying annual theme with key events

– Reflective of the core messages

– Large events with relevant

Meadowhall, UK

Best Practice Example

from Global Markets

Your Product Mix

• What type of centre do you have?

• Positioning

• Price points

• Merchandise

Your Product Mix

The Site:

Parking, Landscaping, Lighting, Security, Signs,

Building Exterior, Services, Ambience, Environment

Your Product Mix

• Building Interior:

Entrance, Floor, Ceiling, Fixtures,

Landscaping, Security, Restrooms, Food

Court, Cafes, Signage, Attractions

Your Product Mix

Do you have the product mix your shopper is

looking for?

• Inventory of merchant mix

• Inventory the product mix

• Determine what is missing/gaps in offer

• Work with the leasing team

• Research and Prospect – focus

• Groups of local consumers, office workers, other niche

markets

Your Product Mix

Retailer Involvement:

– Themed retail, restaurants,

entertainment, taste testings

– In-store promotions, demos,

appearances

– Site inspections, technical tours,

seminars

– Retailer meetings

Your Product Mix

Specialty Leasing

– regional merchandise, crafts, music, foods

– local attraction RMU’s with

– Branded / gift items

– product demos & samplings

– artists in residence

Your Product Mix

Do you have the amenities your shoppers are looking for?

– Develop on-site concierge services including:

• financial services/currency exchange

• photocopying, faxing, internet

• strollers, wheelchairs

• gift certificates

• shipping and storage

• transportation information

• information on area attractions

• calling cards

Your Product Mix

MOST IMPORTANT:

Customer service and a well-trained staff!

TRAIN THEM AGAIN, AND AGAIN….


• Selling its Benefits

– Tenant Mix

– Location

– Uniqueness

– Customer Services

Customer Services

• Ideal platform for differentiation

• Key motivator from research

• Current provision is adequate but not special

• Aim to exceed expectations and delight !

• www.westfield.com/merryhill

• Customer relations and service recovery

• Kiddy Cars/Child safe scheme/play areas/parents rooms

• Car parks / Toilets / Information points / ‘Ask me’

• Tone of voice – accessible and friendly

• ‘Touch the customer voyage’

Inviting Store Fronts

Inviting Exterior

Unique Product

Connecting to the consumer


• Connecting to the consumer– Research

• How old?

• Where do they live?

• What’s their income?

• Where do they shop?

• How often do they shop your centre?

• How much do they spend?

• What stores do they shop?

• Who is your most productive shopper?


• Connecting to the consumer– Media

• What are they reading?

• What are they watching?

• What are they listening to?

• Do you have the right message?

• Are you delivering the right message at the right time?

• Targeting Digital Media

Research

•Qualitative

•Quantitative

•Market share

•Demographics

•Frequency – new IT techniques on-line

•Benchmarking – in portfolio v national trends

TARGET MARKET

Primary Target Audience ABC1 women 25-45, brand focused,

married, working, no children, living within

30 minutes drivetime. Both existing and lapsed Cambridge users.

Secondary Target AudienceABC1 women, 25-55 married with children.

Living 30-60 minutes drivetime. Lapsed Cambridge

users.

Tertiary Target Audience Short-term visitors to Cambridge.

NB. Students will form an important target group for the scheme; however, their close proximity to the

scheme along with the transient nature of their lifestyle will mean that only limited targeting will need to take

place.

Red - primary sub-catchment (50% of shoppers)

Yellow - secondary sub-catchment (29%) (up 4%

YoY)

Green – tertiary sub-catchment (15%)

The marketing campaign concentrates on consolidating

the core primary catchment and will endeavour to draw

in from the secondary & tertiary populations (and

further afield: Norwich, Peterborough) where there is

great potential for growth. Marketing activities have

been chosen that will attract this core demographic to

the centre.

GRAND ARCADE’S CORE CATCHMENT

DEMOGRAPHICS

Media

• Planning

• Buying

• Selection

• Channels

– TV, radio, print, digital, outdoor, transport

The Architects of Fashion

GRAND ARCADE - KEY ACTIVITY SCHEDULE PROPOSED FOR 2010

J F M A M J J A S O N D

Generic Brand initiatives

Bus T-sides new

Website campaign

General PR launch

Tourism

Cambridge Visitor Guide + maps

Hotelier liaison

Tourist e-shots

Visit Cambridge web-link

Tactical Initiatives

Key Activity

Valentine's Day

FASHION

EVENT

Easter

Animals

May Ball

Event Film Festival

FASHION

EVENT

HalloweenCHRISTMAS

LAUNCH

DM / Datacapture competition

Radio

Explorer magazine

Style/Velvet

Regional Newspapers

GA Magazine

CEN Strip ads

PR

Internal posters

Sanctury Opening

Cambridge Visitor Guide

Online PPC

e-shots

Adgates (tbc)

TV

Integrating Marketing with other Disciplines

• Management– Security perception

– Maintenance/Housekeeping issues that affect the consumer

– Understanding property cash flow

– Interfacing with retailers

– Mall activity

– Marketing support of failing retailers

– Void Unit policy

Integrating Marketing with other Disciplines

• Leasing– Marketing as a partner in securing deals

– Combining research needs and findings

– Analysing turnover to find growth opportunities

– Understanding consumer trends and finding stores to meet them

– Supporting failing retailers

– Ensuring brand consistency

The Power of Marketing (Core Customers)

• Strategic and Tactical Planning

• Long Term Branding Program– For newly opened remodeled centres

– For centres with a unique product mix

– For store awareness

The Power of Marketing: Branding

“A brand is a living entity and it is enriched or

undermined cumulatively over time, the

product of a thousand small gestures.”

- Michael Eisner, former Disney CEO

Who is in charge of those thousand small gestures? Who is your

“Chief Brand Officer?”


It’s all about the branding!


• Ask yourself if you and your colleagues really

understand what makes your brand unique

and different in the marketplace. What is

your brand usp ? And how do you

communicate that ?


• When was the last time you examined all of

your brand touchpoints objectively?

– Customers are demanding

– Grade your touchpoints like a customer

– Better yet, get real customers involved in the

process


• Review the basics – the four P’s of product, price, promotion and place.

– Are your products “me-too” replicas of your competitors’?

– Does your merchandise mix and price points match your customer?

– What are you doing to entice customers?

– Is you shopping centre a “place” your customer wants to visit?


• Add the three E’s: Empathy, edit and experience

– Empathy, are you doing all you can to make your

customers’ lives easier?

– Edit, have you walked through all the needless brand

clutter and simplified decisions for your customer?

– Experience, what is the holistic impact of your brand

experience? Is it all customers expect or does it fall

short?


• Communicate, communicate, communicate.

– Bring all of your brand ambassadors together

regularly

– It’s better to solve these issues together rather

than in front of customers and competitors


• Own something: a word, color, icon, service,

something!

The Power of Marketing (Core Customers)

• Sales Driven Plan for Immediate Results

– To increase store/category productivity

– Based on consumer/seasonal demand

• Customer Service

– As a competitive advantage

– As a marketing angle

The Power of Marketing: Tourism/Visitors

• Every centre has an inflow market– Tourists, casual visitors, weekend holiday

makers

– Where do they come from?

– How do they travel?

– Where do they stay?

– Where do they go?


• Research the visitors market– Convention and Visitors Bureaus

– Bus/Transportation companies

– Hotels

– Travel web sites

– Airline


• Tourism Advertising– Media

• Hotel Brochures

• Outdoor / OOH

• Airports

• Travel Magazines

– Partnership Programmes• Hotels

• Cabs, tours buses, trains

• Hotel shopping shuttles

• Rental Car Agencies

• Cruise Lines


• Tourism Marketing Programmes

– Coupon books

– Entertainment and events

– Tour bus driver/guide programmes

– Travel trade shows

– Editorials

The Tourist Market may offer strong opportunity for incremental

sales growth in your shopping centre

Integrate with other centres, civic programmes, tourism companies

to create loyalty, spend and awareness

Sales Growth

WHY?

Tourists have more time.

They need to buy gifts to take back home for friends and family.

They want to take back items to remember the trip.

Tourists typically spend 2 or more times the amount as a local visitor.

What To Do?

• Continue to market ourselves positively

• Understand the key issues in your market that are important to the travelling consumer.

• Make travel journalists your friends - 61% of travellers said they read articles about travel or destinations in the media.

• Look towards your own local clientele - “unique shopping packages”.

• Develop “get away weekends” and partner with your hotels.

• Create a new brand…..• Use on-line travel sites

What is Las Vegas?

“Shoppertainment”

World Class Shopping

Alternative Revenue objectives

• It is important that activities promote or reflect the centres brand values whenever possible and achieve one or more of the following

• Generate significant revenue

• Add to the customer experience

• Support the retailers activity

• Reflect or enhance the centres brand image

Branding and Sponsorship South African style

Lift banners

The Power of Marketing: Sponsorships and Partnerships

• Introduction

– Think globally, act locally

– Match up prospective sponsors with market demographics

– Determine what can be sponsored

– Seek partnerships not just one-offs


• Types of sponsorships

– Income generating

• Long term naming rights

• Shopping centre use fees for short term programmes

– Advertising

– Prizes

– Exhibits

– Merchant Resources

– Local Headquarters for National Programs

– Cross Promotion with Non-competitive Resources


Sponsorship Sales ToolsConsumer demographics

Amount of common area space and size of parking areas

Footfall

Retailers that sell the sponsor’s product

Signing, advertising and publicity


• Making the sale– Establishing relationships

– Pricing based on gross impressions, cost of print, broadcast media

– Marketing the property as a viable alternative media

– Placing value based on sponsorship goals• Does income stay at property/marketing budget

• Does income go back to property bottom line

Alternative advertising

• Escalators

• Toilets

• Lamp-posts

• External 48 sheets

• Lift Advertising

• Floor vinyls

• Taxi’s ; center vehicles

Innovation and

humour add to

attractiveness

Plasma screens in

action

Eastgate Basildon, Award winning ....reverse

vending programme

www.utiqueshop.com

Vending for

the future !

AREA/CATEGORY DISCUSSION POINT COMMENTS OUTCOME

Market Review

Income Level 5% - 12% Income Target Links in with masterplan and budget

requirements

Agreement of approach regarding target level

of income.

Asset Review

Staffing & Management Demarcation of staffing roles

Management of staff

Recruitment

Timings

Agreement required on number of staff,

organisational structure and process to recruit

and train staff

Staffing roles defined

Position description developed

Recruitment strategy agree

Timings and strategy agreed

Templates & Reporting Formats Current requirements for documents

and reports

A full suit of documents and approved

reporting templates is required

Shortfalls in current documentation identified

Reporting templates agreed and developed

Marketing Material & Rate Card Marketing strategy

Marketing material

CAPEX

What format will the marketing material take?

Who is responsible for development? What is

the budget?

Marketing strategy agreed and budget

allocated. Team member allocated for

development.

Budget, CAPEX & Business Plan Development required A detailed budget by area including expenses

is required. A strategic business plan is

required for approval. Interim management

strategies need to be discussed.

Agreement on the process to develop the

business plan and budget achieved. Roles,

responsibilities and timeframes agreed.

Interim management strategy agreed

Interim Management Strategy &

Database

Required immediately To be implemented immediately after the

workshop

Interim management strategy agreed and

implemented and enquiries database

commenced

118

Advertising

Internal Advertising Strategy for marketing Three possible routes for marketing have

been presented for consideration

Agreement on the preferred route for

marketing achieved. Target budget

agreed.

External Advertising Development of opportunity Areas for usage need to be identified and

local authority guidelines clarified.

Possible rates and CAPEX require

development

Possible sites identified and

communication with local authority

commences. Business case for

cost/expense developed

Non-Standard Advertising Development of strategy Development required as part of

masterplan. Advertising rates to be

agreed as part of rate card development

Possible sites identified holistically and

guidelines established as to types and

formats

Brand & Content Filters Development of strategy Guidelines and a database of brands and

content needs to be developed

Allocation of tasks to develop brand and

content strategy

Advertising Packages Development of packages Individual sites and uses need to be

agreed along with rates for each. Once

sites and usages are agreed packages can

be developed

Discussion on packages and approach to

develop packages agreed

General Income

Initiatives Types of general income List types of general income and

suitability, decide locations and

commence market appraisal

Target general income initiatives agreed

and market approach decided

Gift Cards Approach to gift cards Clarification on approach to gift cards

required. If income producing approach

agreed, develop strategy

Clarification on approach to gift cards

achieved. Further action if required.

AREA/CATEGORY DISCUSSION POINT COMMENTS OUTCOME

Assessing Marketing Productivity

• Based on overall property performance/cash flow

• Based on income/sales generated

• Based on footfall

• Based on customer satisfaction

• Based on retailer demand

• Based on positive media

Summary

• Sponsorship, partnerships and alternative revenues are increasingly important for centre owners and landlords

• Centres must strike a balance of the space they use

• Venue owners must realise that they now own media that is increasingly important to brand owners

• Must avoid over commercialisation and carefully consider all opportunities and how they fit together

• There are greater opportunities for the larger national / regional centres

• Alternative revenue should now be an essential part of the marketing mix

Challenges

Questions

ICSC European Partners

ICSC European Partners

ICSC Global Partner

strategic marketing to enhance centre productivity...secondary target audienceabc1 women, 25-55...

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