SeminaronContemporaryIssuesforCorporate Growth

AstudyonCustomerRetentioneffortsbyShoppingMallsin India Submittedto: Prof.NeetuGanapathy SubmittedBy: SumitK.Jangid ent Mysore,Karnataka

ExecutiveSummary DissertationTitle:AstudyonCustomerretentioneffortsbyShoppingMallsinIndia. Fa uGanapathy Nameofstudent:SumitK.Jangid Indiaisthemostattractiveretailindust tsoforganized retailindustryaregettingaffectedbythisboom,favourablyaswellasu hoppingMallsinIndiaisgrowingatelectricrateandthusthechallenge oropportunityo stomersisalsogrowingfaster. This study focuses on the need of customer reten loyalty programsetc.,whichenablestheIndianShoppingMallstobecompetitiveandbette ngandupcomingMalls.Thestudyofexistingloyaltyprogramsand other customer retenti n understanding the current situation and strategies better. Their analysis provi f the relationship between the natureoftheutilityofferedandthecustomerexperien tility Map. Itwasfoundthatloyaltycardprogramshavenotworkedaswellasexpected itofhavingloyaltyprogramisthatretailerscanquantifynew customerlossesandintrod oretainorencouragethemost profitablecustomers. PGDMNo:7113 i

SomeofthemajorRecommendationsare: o Introductionofshoppingmallloyaltycard. o Co eme o CustomizedLoyaltyPrograms SumitK.Jangid Date:05/09/2008 ii

Acknowledgement The satisfaction that accompanies the successful completion of any task would without the mention of the people who have made it possible with constantguida nt. I take this opportunity to express my profound gratitude and deep regards e Prof. Neetu Ganapathy for her exemplary guidance, valuable feedbackandconstant ntthroughoutthedurationoftheprojectand preparation of this report. Her valuabl e of immense help throughoutmycontemporarystudy. Myseveralwellwishershelpedm y;Ivirtuallyfallshortofwords toexpressmygratefulnesstothem. SumitK.Jangid iii

Contents

PageNo. i iii iv 1 6 10 16 20 21 24

ExecutiveSummary Acknowledgement TableofContents .LiteratureReview Ch.4.CommonfeaturesamongIndianShoppingMalls Ch gMalls Criticalfactorsforsuccessfulloyaltyprograms LoyaltyprogramofGlo rumMall LoyaltyprogramofShoppersStop Ch.6.CustomerRetentioneffo arudaMall GopalanMall Ch.7.Analysis Succe lityMap AnalysisofBuyerUtilityMap Ch.8.Doloyaltyprogramsreally h.11.Recommendations Ch.12.FurtherResearch Ch.13.Reference iv

1.Introduction Recently,thepresshasbeenfullofarticlestoutingthegrowthofShoppingMallsinInd ndmetros.ProjectionsfromF&Rresearch:MallsinIndia2007,say thatIndiawillhave hecountryby2015withtheretail space of 350 million sq. ft. in comparison with year 2007. Articles suggestthattheretailindustrywillbebeneficiatedgreatlybythi lable forretailingasitwillensuremorevisibilityandinteractionwithconsumersandh rturnoversandprofits.Moreretailspaceisanecessitytohandleandcaterto newretai nalbrands)thatarecomingintothemarket.This supportstheideathatadequateretails kforprosperousretail industry. However, the actual examination of the influences f these new ShoppingMallsopeningatthearmdistanceshasbeenlessdocumented.Whati hopping Malls on brands strategies, customers power in the channel, customers Though, the vibrant retail boom is pushing up the number of Malls in the coun emainsaboutthesuccessoftheseMalls.ThemajorconcernforShoppingMalls ownersandi ionrate.Thishasledtotheclosureofindividual shops,atseveralMalls.Manytenants centageofconversions fromthosewhowalkthroughtheportalsoftheseMalls.Observersr g bags are missing in the hands of the supposed shoppers visiting these Malls. hattheinitialexcitementaboutshoppinginthe Mallsisalreadyondeclineand 1

that consumers are reverting to their traditional shoppingdestinations. Therefore, esamarketingchallengetoretaincustomersandencouragerepeatpurchase.Itisa wellk mersspendmorethantheaveragecustomers. The issue of competitive rentals has alr re are Malls in very close proximitytoeachotherinbigcities.Successandfailure iaduring the past few years indicate that not all the Malls are successful. A y experts, only 1012 percent of operational Malls in India have been successfu rsavailablewithvariousretailandrealestateanalysts.ShoppingMallsintierIIcities fcompetitionthatShoppingMallsofbigcitieslikeMumbai,NCR orBangaloreareexperien titionhelpscustomersastheyhavemore optionstoshop,butforShoppingMallstomakep pingis becomingdifficult.ThesolutioncouldbebydifferentiatingyourShoppingMallf igquestionis,how? Retaining existing customers is always the desirable situati ess. In the situationoftuffcompetition,thesearetheonlyassetofthebusinesswho thyouandworkingaspromotersthroughwordofmouth. India is the land of diversi nd that Indian customers prefer cross shoppinguntilorunlesshe/shegetssomeextr tproductfromthe sameplace.Thisismainlybecause,inIndianmarket,almosteveryreta scustomers.Onthebasisofthesefindings,itcanbesaidthatloyaltyisnoteasytobui sthebiggestchallengeShoppingMallsaregoingtoface 2

inthenearfuture;especiallyinmetrosandbigcities,whereShoppingMallsareveryclos

Significanceofthestudy Indiaisthemostattractiveretailindustryintheworldnow;ittellsthefactthattheg alls in India is not going to stop or slow down in near future. The most b pid growth will be the big cities of the country like Mumbai, New Delhi and Shopping Malls are opening up more difficult it would be for Shopping Malls to with them. Sensing this issue some Shopping Mall developers have started spendin fforts for gaining customerloyaltyfortheirShoppingMalls.Theneedforthehourist onvertthemintocustomersandtrytoretainthemaslongasyoucan. Today the greate tionship programs is in retail and Shopping Mallsinparticular,buteffectivenesso gramsisalsoamajorconcernfor multibrandedShoppingMalls.

Objective: The objective of this study is to analyze loyalty programs of Shopping Malls, rretentioneffortsadoptedbyIndianShoppingMalls,analyzethesuccessfactors, andto ecustomerloyalty. 3

ShoppingMallinBrief: ShoppingMallisthenewandmodernversionoftraditionalmarketplace.AShoppingMall or ingorsetofbuildingsthatcontainavarietyofretailunits,with interconnectingwalkw oeasilywalkfromunittounitorstoretostore. People often use the word Mall p, Westside or Pyramid, unknowingly.Actually,theyarenotShoppingMalls,butanother dretail calledDepartmentalStore.ForumofBangalore,InorbitofMumbaiorMetroWalk lesofretailformatswhichactuallycomesunderthecategoryof ShoppingMalls.Indiais llswhichareprovidingaretailspaceof 47.4 million square feet. The number of S ated to rise by 335% by 2010to600ShoppingMalls.

CustomerLoyaltyinBrief: Customerloyaltyreferstothefeelingsorattitudesthatinclineacustomereithertoretu or outlet to purchase there again, or else to repurchase a particular product, lemisoftenraisedthatsomeproportionofcustomerswill still defect to competitors isfied with the brand. Hence, customer satisfaction does not ensure customer loy er loyalty is purely a behavioural phenomenon. Customermaybesatisfiedbytheof ovidedbyShoppingMall,butit does not mean that he will be loyal to that Shop ain and again 4

there only for shopping. The basic reason for caring about customer satisfaction dstoloyaltyandcustomerretention. It is possible for customers to be satisfie all environment, services etc.,butnotrepurchasedueto,amongotherthings,poorprod eekingor multiple sourcing and large promotional deals. This is the same happen ppingMallsofbigcities,customerscomeanddonotfindanythingexcitedapartfrom grea moffaboutthatShoppingMall.Theseissueswillbedealtin detailatthelaterpartof ers may be unsatisfied but continue to purchase, for example, when dealingwith fShoppingMallsoftierIIcities. 5

2.ResearchFramework Methodology: ThisstudywillexaminetheeffortsmadebyIndianShoppingMallstoretaintheircustomers oyalty among their existing customers. It utilizes the secondary and primary dat h. Secondary data involves the collection of data through past researchstudies, ines,books,leadingdatabases,articlesandinternet,while primary data involves the of the customer retention efforts adopted by Shopping Malls in Bangalore. This lights the common phenomenon of ShoppingMallsacrossthecountry. Thestudywouldfo merloyaltyusingdifferentiationstrategies.Itusesa four stage research strategy, earch design, then collecting secondary data, then collecting primary data, and yzing the available data. Such studies are capable of capturing data to answer ons associated with the subjectunderresearch.

Nature: Studys objective is to achieve exploratory rather than explanatory results. Stud alinnaturewhichgivesabetterunderstandingofthevariousloyaltyprogramsand effort lsinIndia. 6

Hypothesis: ResearchHypothesisforthestudyisthatLoyaltyeffortsandprogramsadoptedbyShopping ullHypothesisofthestudyistheyarenoteffective.

Limitations: Common limitations of the study are unconscious influence while data collection tation. The other limitation of the study is that only Shopping Malls in Banga edthus,collecteddatacannotbegeneralizednationwide.

ModelsandTheories: ThestudywillbetakinginferencesfromthetheoryofDifferentialCongruence:CoskunSaml ingGroup(BCG)matrix. ThestudyisusingBuyerUtilityMapforanalyzingtheeffortsmad oretainandattractthecustomers.

Buyerutilitymap: It outlines all the levers companies can pull to deliver utility to customers erentexperiencescustomershavewhileusingtheproductorservice.Cuttingacrossthe st xperience are the levers of utilitythe ways in which companies unlock utility rs. By locating a new product or service on one of the 36 spaces of the buy arly see how the new idea creates a different 7

utility proposition from existing products. A customers experience can usually b ntoacycleofsixdistinctstages,frompurchasetodisposalinthecaseofproduct. UtilityLevers Purchase Customer Productivity Simplicity Convenience RiskReduction e Environmental Friendliness aintenance Disposal 8

InthebuyerutilitymapforaShoppingMall,thebuyerexperiencecyclewouldbedifferent ycleforaproduct. UtilityLevers TheFourStagesoftheBuyerExperienceCycle(forShoppingMalls)

Interaction Customer Productivity Simplicity Convenience RiskReduction Fun&Image ntal Friendliness Social Responsibility Services Purchase Addons

Here,theexperienceofcustomersstartfromtheInteractionwithShoppingMallafterth n the Malls, which are almost to necessities for any Shopping Mall in todays eretailstoresoftheMallisthenextandmostimportant buyerexperiencestageinthec enbyShoppingMallsinits offerings like music shows, mehndi competitions, dance iz competitions etc.comes. 9

3.LiteratureReview Dr.TrivediShekhar(2008)Zoominginonmalls,RetailBiz,May2008.

Standardizationofmallsisoneofthecommonphenomenonsamongmallsdevelopers.The look eralissameandsomewhatpresentsauniformappearanceto the customers. Standardizatio efits but uniformity may tend to dull customersdesire.Developershavenotthought lcatchmentprofile. ShoppingMallshavegivenbirthtoanewshoppingcultureShoppert ry to the real shopping take place, people are opting shopping more for their ose. Authortalksaboutblackspotsofmalls.Hesaysmallsattractdifferentleveloffoo om shoppers within its various parts. For example, ground floor attracts more f ny other floor. Shops around the atrium get the maximum number of shoppers.How inlocationsinthemallwhichareoverlookedbyvisitors. They are called black spots bserved black spots are outlets near the entrance,outletsnearescalatorsandeleva heendofgalleries. Shinde,Devendra(2008)CareforyourBrand,thewayyoucarefo ustomersarewillingtotraveltoanearbymallforthatshoppingexperiencethathedoesn tore. The most common mistake done by national retailers is 10

Standardization.Nationalretailershavetotakecareaboutmakingthebrandrelevanttoth ecatchmentareaofthestores. Gopal, Prashant (2007) Malls betting on enterta ers, New Delhi (http://www.livemint.com/2007/05/14003113/Mallsbettingonentertainment.html)

Whenpeoplegoforshopping,they,especiallyyouthspendtheirentiredayatthemall.The oforspendinganentiredaythereatthemall.Strongentertainment needs to be in a to the mall. Increase in footfalls is not only importantbuttoconvertthosefoot nisthekeytosuccess. Needofthehouristocreateamall,wherepeoplecanspendtime are providing the same things for entertainment. Like movie theatres, bowlingall es,restaurants.Norealdifferentiationcouldbeseenamongthe malls. Prof.Sundar, ianretailbrands (http://www.bim.edu/pdf/Larticle/Building_Successful_Indian_Retail_Brands.pdf)

The research stresses on retail as a brand rather than retailers merely selling usofthisstudywasonbrandingtheretailbusinessitself.Storedifferentiationismissi ized retail. Leading retail stores like Shoppers stop, Lifestyle, Globus, Pyramid monbrands,similarambienceandasamecommitmenttoimproved service.Realdifferentiati hem.Nationalandinternationalretailersare 11

finding difficult to understand the psyche of the local Indian customers, their erencesetc.LocalizationwithGlobalizationisnecessaryformalls. Situation of lack l suppliers in India is also testing the supplychain of these organized retail lability of stock is one of the major factors for building loyaltyforaparticu bility,legitimacy,consistency,proximity,valuearetheessentialcharacteristicsof a l branding creates a brand preference, which goes beyond the product or service lopersneedtocreatedistinctivebrandidentitiesfortheirspecific malls. Everitt, oppingMallbrand,29thApril2008 (http://industry.bnet.com/retail/100044/howtobuildashoppingmallbrand/)

Seventypesofshopperprofileshaveidentifiedintheresearch.Twotypesofshoppersare of the sales of retail stores. These two types are Navigators and Socialsee dent,creativetypeandtheyshopforwhattheyare passionateabout.Socialseekersalso oothersforvalidation. Navigatorsneedanexpertmall,wheretheyfind,whattheywant. allswhichprovideasenseofsecurityandconsistency. Different loyalty programs shou d for different type of customers to understandandrewardthembetter,intheirown 12

King,SharonR.(2008)Shoppersgetawards;Mallsgetloyalty,TheNewYorkTimes, Thurs (http://query.nytimes.com/gst/fullpage.html?res=9902E4DF103CF930A15751C1A96E9582 60)

Mallsaregivingrewardsforshopping.Rewardsrangefromprepaidcallingcards,magazine redit cards to vacation trip etc. creating relationship with customers is the k yscompetitiveworld. Redeemablepointsofferedbymallsthroughvariousloyaltycardsdo ll from those customers/card holders. But, these efforts help in keeping them c ll,addsomemorepointsandgetbetterrewardforsomespecialoccasions; likeDiwali,Ch ceyInvolveteensinmarketingeffortstocreatebrandloyalty (http://www.icsc.org/srch/education/newsletter/involveteens.pdf)

Studies have found that teens become more brand loyal when they feel that a c stands them. Malls need to take proactive steps to tap this key customer group ach programs with the support of marketing team are alsoorganizedbythemallsto mentsincustomersmindspace. Pradhan, Swapna, Shopping Malls in India Impl etail Biz, June,2008. Inherarticleassociateprofessor,SwapnaPradhandiscussesthe fthe mall culture across the countrys evolving retail landscape. She talks abo ch have been defined by Chesterton Meghraj as greater than 500,000 sq ft and 13

incorporate large entertainment area, with enough spaces for parking and excellen ucturalbenefitsthatshallbepassedontotheretailer.Thetargetaudienceforthe Gen ut of town visitor and the person from the city looking for entertainmentoptio ell and Vishwanath, Vijay, Localization: The Revolution in Consumer Markets,Har iew. (http://www.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?articleID=R0604E&ml_a ction=get article&print=true)

Malldevelopersneedtoinvestsomequalityeffortinunderstandingtheshoppingneedsof eted"catchment"areasandthenbuildacarefullyplannedportfolio ofretailoptionsthat etargetedcustomers.Malldevelopersalso havetocreatedistinctiveidentitiesfortheir chliketheidentitiesthathave developedovertimeformajorshoppinghighstreetsinva .Their workisnotdonejustwhenthemallhasbeencommissioned! Anand,Kumar(2008 merfriendlytest,TheEconomic Times,9thAugust,Page5. (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/In dian_retail_se ctor_fails_consumerfriendly_test/rssarticleshow/3346373.cms)

ArticleraisesconcernsabouttheshoppingexperienceprovidedbytheIndianretailsector. periencemayleadtomoretimeaswellasmoneyspendingonthestores. Thearticlealsor ackedshoppingcenters,lackofseating arrangementetc.whichultimatelyhampersthereta ralsosayswiththehelp 14

ofasurveythatretaildesigningistheneedfortodaysretailmarket.Retaildesigndoes totherfactorsalsolikedeterminingconsumersattractionetc. Jain,Pradeep,(2008) r,Julyedition.

WriteristheMDofParsvanathDevelopersLtd.Hetalksabouttheanchorstoresthatthey hopping Mall to attract serious customers again and again. Speciality Mall for nsidered here but it can give a different position from other Shopping Malls a genuine customers. Customers want perfect shoppingexperienceandevenaminuteimperf rtthemtoanothersubstitute Mall.Mostofthetime,Malldevelopersleaseoutthespace 15

4.CommonFeaturesamongIndianShoppingMalls

Shoppertainment: PeopleusetospendtheirwholedayinaMallthesedays.TheydonotgotoaShoppingMall ohavesometimeforrelaxation.ShoppingMalls whichcaterstoeachandeverysegmentof omeandspend time with their families. These new developments have given birth ulture Shoppertainment. Now Shopping Malls are not only a retail format the tion for people for meetings, get together, having fun etc. The fact that Mall ep in mind that they do not divert from their prime business of retailingthou ngintotheirbusinessmodels.

ShowBusiness: MultiplexesinShoppingMallsarenotastrangethingasentertainmentaspectrelatedwith dy been mentioned earlier. In Mumbai, the fourscreen multiplex at Mumbai s Eter nder Mall (also Cinemax) on Ghodbunder Road have become film hubs while, Nirmal provides a sixscreen PVR, which can seat 1,850 people. Bangalore s Garuda Mall commodate 1,300 people per showatitsINOXtheatre.ForumMall s11screenPVRmultipl sIndia s largestmultiplex.TheexperienceofwatchingmovieonPVRGoldclassscreensis ding,whichultimatelycreatesexcitementaboutPVRandpositivefeelingabout Forum, the e trend of having at least one multiplex in Shopping Mall is continuouslyandr 16

 Standardization: Standardization is one of the common happenings seen among the Shopping Malls i mostalltheMallslooklikesimilarwhetheritisexteriorsorinteriors.Theyalso prese ecustomers;whichdonothelpsinenhancingcustomer experience and upon that it dul re to come again and again to the ShoppingMall.MostoftheMallsareprovidingth ntalso.Like movietheatres,bowlingalleys,arcadegames,restaurantsetc.Norealdiffe e seen among the Malls these days in India. We will find the architecture, li soryitemswhichcreatestheshoppingexperienceverymuchsimilarinaDelhiMall andin lture,buyingpatterns,customersegmentsarevery different. Localization of the Ma care of while developing a Shopping Mall.

MissingLocalFlavour: As mentioned above the Localization of Malls is very much important to appeal h and every time they decide to shop. The next most important thing in retail rience,theinteractionofcustomerwiththestore.Andthat experiencecannotbebuildup kencareofthelocalpreferences, tastes,localculture,andvaluesystems.AllthebigM ationalfrom local.TheyallwantuniformityintheirMallsonargumentthatthedifferenc negative outlook of biasness towards a particular city or else. To some extent eded but when it comes to emotional senses local catchment is the necessityfor llcanhaveuniformityintermsofservices,policiesetc. 17

but it cannot have uniformity on size, colour, interiors, exteriors, tenant mix, naleventsetc.throughoutthecountrylikeIndia(diversifiedcultures).

SpaceCrunch: Packedparkinglots,busyfoodcourtsandrestaurants,crowdedanchorstoresthisisthe ingMallsinIndia.TheaveragesizeofShoppingMallsinIndia is2.5lakhsq.ft.,whic dStates.Becauseoflackof adequatespace,shoppersfindthemselvesinashoponlyandn erience of Shopping Mall does not even come into the picture when the Mall is can Shopping Malls have the luxury of space and thus able to attract customers e wider variety of offerings like amusement attractions, aquariums,skatingrinks, unityhallsetc.Younameitandthatwillbethere in their Shopping Malls, but this n Shopping Malls because they cannotscalethemselvesduetospaceconstraints.

RetailEstate: Almost every Mall owner group is originally a real estate group which has dive esintoretailrealestateafterseeingthisvibrantgrowthinIndianorganizedretail mar heleadersinRealEstateDevelopment,havingdiverse interestsinRetailing&Hospitality y,theyaretheproudownersofInorbit Malls,HyperCITY,ShoppersStopandCrosswordsho ganized retail by taking a first giant step to successfully establish "Shopper s estige GroupisoneofSouthIndiasmostsuccessfuldevelopersofrealestate.Itisthe 18

ForumMallsinIndia.ThegroupisabouttoexpanditspresenceinMallbusinessbyopening tieslikeHyderabad,Cochinetc.Theseareonlysomeofthe real estate groups becoming understand that operating and developingMallsneedcertainkindofexpertiseandreal annottackle thissituation,theyneedpeoplewhoareexpertsinMallmanagement.Becaus llmanagement,mostoftheMalldevelopersofferthesamekindofMalls which have space d films, but as the number of Malls will increase peoplewilllookforMallsloca hatwillbecomeamajorfactor inraisingorloweringitsassetvalue. Afterobserving heIndianShoppingMalls,itcanbesaid that now after a long period of time afte es Malls need some differentiationintheirofferings,servicesetc.toregenerateth ng people,whichcouldbeoneoftheprimemotivesforthecustomerstostaywithapartic 19

5.LoyaltyProgramsbyIndianShoppingMalls Otherthanthesecustomerexperiencefocusedfacilities,ShoppingMallsarenotdoingmuc ersortobuildloyaltyamongcustomers.Mainly,becausemostofthe Mall owners are in tate so they consider these Malls in very constrictedsense.LikeconstructingaMa talsfromtheretailstoresand be happy with the rentals retail stores are paying provided by them. They do not focus on marketing strategies for these Shopping developed countries.Now,wewillanalyzetheloyaltyprogramofsomebigdepartmentstore imilartoaShoppingMalllikeShoppersStop,GlobusMallandsomeShopping Malls.

LoyaltyProgramOverview Almost 80 percent of shoppers in the Europe now belong to at least one loyalt nd is fast catching up in India but how well do they really work? They are pectedto.Thematterhastoprobeintoandanalyzedashow advances in customer data ome companies to revise their Loyalty businessstrategiesindifferentways.Therear ngprograms,frequentflyer programs,frequentMallcardsandfrequentpetrolprograms.Th ump schemes, Service tax holidays and, some of them even donate to charities l who use their Credit card reward points. There are plastic cards, smart cards, agnetic strips Cobranded Credit Cards. Within the next couple of years players iance, are working on using 802.11 to Flash your mobile phone at a 20

readerasyouwhizthroughcheckout,andyou llgetacoupleofrupeesknockedoffyourbil ze. Credit Card companies are offering programs by tying up with various Shoppi nts to offer discounts and lure the customers towards using theirshopsandCredi ycards,ShoppingFestivalsandprizeshavealways been,firstandforemost,acheapwayf lltostarttrackingtheir customersshoppinghabits,morecustomersthanevernowconside edto specialtreatment. Criticalfactorsforsuccessfulloyaltyprograms

SpecificObjectives: A successful loyalty program is based on specific measurable targets and objecti es the retailer to design appropriate loyalty strategies and target relevant con s.Theprogresscanbemonitoredagainstthegoalsandtargetsafter thelaunchofthepro nbemadeaccordingly.

ProperpriorResearch: Gaining the most accurate information about customer behaviours, motivation and e nsiscrucialtothesuccessofaloyaltyprogram.Theresearchneedstobewell balanced sperspectiveslikedemographicprofileand socioeconomic status of customers, purcha behavioural drivers, reward expectations,specialinterestsandlifestylefactors. 21

InnovativeandCreative: Innovation and creativity are among the key factors that define a successful cu rogram,particularlyintheretailsector.Theprimaryobjectiveoftheretaileris tokee omerfrombeingloyalbyofferingaloyaltyprogramthat isuniqueandexciting.

EmotionalTouch: Emotional connect is the most critical factor, which can decide the fate of a he basic and the prime objective of a customer loyalty program is to make the edandvalued.Thebestprogramsconstantlyworkonbuilding a long term relationship rough various initiatives like customized loyaltycards,newslettersthatnotonlyhel stomerstayintouchbut alsocreateasenseofbelonging;acardoragiftonbirthdaysa ing membersonly events. Memberonly events like giving special privilege to loya easonalsaleetc.

Software: As with any strategic involvement, the operational aspects are as crucial to th s of a loyalty program as the concept and plans. Loyalty software that combine ns like data tracking and storage, automated transactions, updatingmembershipdeta ndchumetc.canensurethattheloyaltyinitiative iswellcocoordinated,efficientand 22

OrganizationalCommitment: Customer loyalty programs need complete support and commitment from the top mana er to be successful. Nothing could be more disastrous than a disgruntledemploye siasticallyadministeringaloyaltyprogram.

ContinuousCommunication: A loyalty program is not a onetime event. The best programs maintain an activ ecustomerbyinformingthemofnewdevelopments,offersetc.and seekingtheirfeedback. d and remember that loyalty programs can be designed in quick timebuttheeffec yareimplementedisofutmostimportance.It takesmanylongyearsforanorganizationto ndofcustomers towhomitshouldtargetitsloyaltyprograms.Thetrulysuccessfulloyalt short term measures to expand the customer base. By aligning with the organizat , mission and vision, they contribute significantly to long term profitability,g titiveness. 23

CustomerLoyaltyProgramofGLOBUSMall"PRIVILEGECLUB" ThecustomerrewardprogramfollowedatGlobusiscalledthe GlobusPrivilegeClub .This graminIndiawherethemembersarerewardedimmediatelyfortheir purchaseatanyofthe hipcards: PrivilegeCard: WhenacustomerpurchasesmerchandiseworthRs.2000ormo ble to become a privilege card holder. These purchases can be spreads across t thsofthefirstpurchaseatGlobus. Privilegecardbenefits: Membersgetinvitest dforthem. Members can enjoy the exclusive new product privileges. They get the rchasethenewproductsbeforethelaunch. Specialhoursarereservedforthemembersdu eroccasions givingthemthefreedomtoshopattheirleisure. Thememberscanalsoava eupsthatGlobushaswiththe nationalandmultinationalbrandsandotherleadingoutlets 24 PrivilegeCard GoldCard

GoldCard: WhenacustomershopsforRs.15000ormoreinasingleyear,thenhebecomesel ldCardBenefits: Memberscanenjoythebenefitsofreservedcarparkingattheoutlet hegarments,itwillbehomedeliveredfreeofcosttothe members. The Gold card me its of the special counter, opened exclusivelyforthem. Thememberscanals heseasonalcollection. Thememberscanalsoenjoythebenefitsoffreetravelpackages.

CustomerLoyaltyProgramofForumMall This is the first step taken by any Shopping Mall in India to come up with ugh,itisnotacustomerloyaltyprogramfromForumMallofficially.ButForum andICICI reditcardcalledthe ICICIBankForum credit card. The strategic tieup of ICICI l help the bank provide a privileged statustoitscustomersforeverypurchasethey 25

Benefits: Thecreditcardgivesahostofbenefitstothecustomers,whichincludesrewa ountsinadditiontotheexistingfeaturesoftheICICIBankcreditcard. TheICICIBank ardanditallowsthecreditcardholder toearn8rewardpointsforevery200rupeesspen elcome voucher of Rs. 250, redeemable at Forum Mall in Bangalore awaits every itcardholder. This credit card also gives the cardholder privilege parking and eting at PVR cinemas.

CustomerloyaltyprogramofShoppersStop Though, Shoppers Stop does not come underthe category of a Shopping Mall still gitsloyaltyeffortsforthegoodofthestudy.Thereasonforconsiderationisthe large tryandtheyproclaimtheirstoresasShoppingMalls. Thecustomerloyaltyprogramfollo lledthe FirstCitizen . TypesofFirstCitizenCards: ClassicMoments SilverE 26

Benefits: RewardPoints: AClassicMomentmembergets1pointforeveryRs.100spentatShopper sSt arns 1 point for every Rs.50 spent at Shopper s Stop. A Golden Glow memberear entatShopper sStop.Additionalrewardpointsfor spendingonprivatelabels.ASilverE ointandaGoldenGlow member earns 2% extra Reward points for purchasing inhouse shish, andLife. Associatecards: AClassicMomentsmembercanapplyforoneassociate lveredge member can apply for two associate cards by paying Rs.I00. A Golden yforthreeassociatecards,twoComplimentary,onepaid. Otherbenefits: Free car cluding valet parking made available at all outlets of Shopper sStop,forthemem ntregularupdatesonallmegaeventsatShopper sStop. Exclusivecashcountersareprovi ethestore. Specialinstoreandoutstoreoffersaremadeavailableexclusivelyforthe enexclusivepreviewofthemerchandiseduringthesaleperiod. Free home delivery of ved parking facilities, additional 5% discount (duringsale)fortheGoldenGlowmemb 27

Enrolment: AcustomerneedstofilluptheapplicationformandpayRs.150tobecomeamemb ogram. The customer earns 100 bonus points and also receives a Classic Moments gwithabenefitguide. Upgradation: A Classic Moments member has to complete a within the validity period of two years to upgrade to Silver Edge. A Silver E plete a shopping of Rs. 4O, OOO during the two year validity period to become . Renewal: AClassicMomentsmembershipcardcannotberenewed. A Silver Edge me hopping of Rs. l0, 000 during the Validity periodforhiscardtogetrenewed. A inashoppingofRs.4O,OOOduringthevalidity periodfortherenewalofhiscard. Re emed by the member by presenting the card and receiving the reward pointcertif catecanbeusedwithin6monthsfromthedateofissue. 28

6.CustomerRetentionEfforts By

IndianShoppingMalls NoteveryIndianShoppingMallsofferloyaltyprogramstoitsexistingcustomerstobuild mwiththebusiness,buttheyaretryingtoretainthecustomersby focusing on exciteme xperience characteristic. Here, we try and list down some of the common efforts ping Mall owners to attract potential customers and retain them. Later in the cuss the loyalty card programs usedbysomeoftheIndianShoppingMalls.

MusicShows/Competitions: The most common strategy adopted by Shopping Malls worldwide to attract people s to organize some events like musical shows, dance or singing competitions, ga ally for youth. Most of these events started on the festival occasions, but to aywith collaboration with some corporate entityShoppingMallsarrangetheseshowsto citementamongits customers.

ArtShops: ShoppingMallshaveartshopslikePortraitmaking,Potterypainting,creatingcartoons, c verimpressions,gettingaglamorousphotoshot,handicraftsshops 29

etc.ThesesmallshopsoccupythevacantspaceavailableintheShoppingMalllikeplaces fthewalkways,andopenareainMalletc.Generally,theyare not allotted the actual n the Shopping Malls as these are very smallmoneyinvestedshops.Butthegrowing tractioninto companieslikeColourfactory,FirstImpressions,MakemyToon,StarShotse hetargetcustomersfortheseshopsareuppermiddleincomegroup,eliteclass customers res keep attracting people because first, they are not highly expensive and sec personalized services which give the feel of luxuryatveryacceptableprice.

ProductDisplays: Display of products like cars, antique objects etc. in the Shopping Malls attra ntothe Shopping Mall. Forum Mall, Bangalore isadopting this product display str ely to bring footfalls in the Mall. Gopalan Mall, Bangalore has allotted thefr lecompanytodisplayitsproducts.Thisstrategyisbasically topullpeopleintotheSho

IconicorConceptTenants: Kind of retail stores also play an important part in attracting potential custo lefamousorbigbrandsattractpeople.Alsosomeverydifferentoruniqueshops likeScar etopullcustomers,especiallyyoungstersinto Shopping Malls and those stores. Appl thrills and invite people into ForumMall,Bangalore. 30

SignBoards: IntheearliestMallsofthecountry,wewouldnotfindanysignboardsorconvenience ass reanintegralpartofanyshoppingcenterasthey help customers and provide them ex e their experience better with the Shopping Mall. Some time these small things tly to women and elder people who do not want to roam in search of the reta rdsgivethemtheextrahelp.

Babycarecorners: As the number of working ladies is increasing in India and in cities particula fBabycarecornershascomeupinShoppingMallsandbigdepartmentstores. Shopping Mal mothers of new born, who need any assistance theywillgetitfromthepersonnelor anleavetheir babiesinthatbabycarewithbabysittersanddotheirshoppingwithoutwo n.Thisconceptactuallytargetsnewmothersandbygivingthemthefeeling ofcare,Malls

SeatingFacility: As most of the Malls are targeting to youth, they are forgetting about aged p hocannotroaminaMallwithouttakingrestlikeyoungsters.Theyneed sometimeforrela ttheirshopping.Some ShoppingMalls havestartedthinkingandimprovingonthisaspect airsnear 31

liftssothatpeopledonotneedtostandwhilewaitingforlift.Thisshowstheconcernfo customer experience. But still this issue has not taken into considerationseriou yofShoppingMalldevelopers.

PersonalAttention: InMallslikeGlobuswhichismoreoflikedepartmentstore,alotofpersonalattentionis espeoplehelptheshopperswiththeshoppingcart.Once the dress is finalized they s counter. This reduces the weight of carrying the shopping bag with you. But in is service could be very trickytoprovide. To substantiate the data collecte rces, primary data of 3 ShoppingMallsinBangalorehasbeencollected.Datacollectio nal method.

ForumMall: Popular Shopping Mall in Bangalore, located on Hosur Road in the Koramangala the Best Mall Award at Real Estate Excellence Awards 2007 held at Le Meridien, 07 ForumhastheonlyApplestoreinSouthAsia.IfyouwanttogetaMacoranApple p 32

ItalsohasaBoseandSwarovskistore. TheMalldoestheproductdisplaystoattractpeop ayed areofbig,famouscompanieslikeAudi,Volkswagenincarsetc.

Interiors of the Mall are good and in fact better than other two Shopping Mal y.

AsmentionedearlierMallhasagoodamountofluxuryoriconicbrandstoreswhich tempts

Ithasbabycarecornersnearrestrooms,whichhighlightstheconcernoncustomer conveni

To assist customers in searching the desired destination or retail store, Direct e put up on the walls at convenience places. These directory boards give infor y retail store on that floor, escalators, lifts etc. through graphicalrepresenta

MallhassketchpicturemakingshopattheentranceoftheMall. Parkingfacilityisgood evels.Itisanamazingideafor providingextracomforttocustomers.Ifacustomerwants does not have to park his vehicle at the basement parking area and go through eveloftheShoppingMall.Now,hecandirectly parkhisvehicletotheadjoininglevelfo heMall.

ForumMallsellsGiftvouchersForumGiftVoucher.Itgivesofferingslikefashion, acce s and food. The Forum Gift Vouchers are available in the denominationsof: o Rs 00 33

o Rs.250.00 These can be purchased at the help desks against cash or credit c orders against cheques which will be delivered to your address. It gives an op poratehousestousethesevouchersforincentiveprograms andordertheseGiftvouchersf

GarudaMall: TheMallislocatedonMagrathRoad,Bangalore. IthousesthebrandslikeMango,Guess p,Westside, PlanetSport,Adidas,Reebok,Fabindia,SwarovskiandTitan. At the entr all, msn was conducting a competition among the peoplethere.Itwasthecenterof sallovertheplaceto watchtheevent. The Mall has some unique brand stores l er Malls in Bangalorehave.ItgivesanadditionaladvantagetoGaruda. Mall develop sign boards to helpcustomers toroam around easily. Sign boards give information only not about the whole ShoppingMall. Seatingarrangementwasnotproper.TheM lynearlifts. Asectionofafloorisdedicatedtoentertainment.Itwashavingahealthy 34

TheMalloffersshoppersawiderangeofcuisinesatthefoodcourtwithover20food coun izzlers.

There are dining options in five exclusive restaurants serving Oriental, Continen erraneanandFrontiercuisines.

Mallhasitsownparkingwhichiscategorizedintovisitorparking,corporateparking and

GarudaalsosellsgiftvouchersGarudaMallGIFTVOUCHER.TheseGiftVouchersin theMal DiamondGiftVoucher o GoldGiftVoucher Rs.1000.00 Rs.500.00

GopalanMall: It is located on the prime location at Mysore Road, Bangalore. But, still it hecustomersafteritsintroductionperiod,consistently. Amotorcyclewasondisplay nantmixwasnotveryattractiveandcontemporary.Retailstoresweremostlyof slowmovin mentsectionwasintheMall. Foodcourtasusualhadadecentcrowd. Roaming around th ent. To find the escalators or stairs, thankstothelackofsignboardsandpersonn 35

The customers are mostly the aged customers not the youth. Thus, the seating f portant. Mall has the seating facility, but the chairs were not installedinthe ellasatappropriateplaces. ParkingfacilitywasgoodintheMall.

Efforts MusicShows,Competitions ArtShops ProductDisplay Iconic/ConceptTenants SignBoards ers Seatingfacility PersonalAttention ForumMall Yes Yes Yes Yes Yes Yes Fair No GarudaMall Yes Yes No Yes Yes No Good No GopalanMall No Yes Yes No No No Poor No 36

7.Analysis SuccessandfailurefactorsforShoppingMalls: Following factors have been identified as most crucial for the success or failu ngMall: Tenant mix The term tenant mix refers to a combination of factors onofspaceornumberofunitsoccupiedbydifferentretail/servicetypes,aswell asthe tsinthecentre. Anchor tenants in the malls An anchor store implies a s ermsofsizeorasquarefootage.Itcaterstotheneedofthepeopleacrossallages,it temsrangingfromclothstohouseholditemsfrom differentbrands.LikeWestsideinaShop ndDesignofthemallsTheinteriorsanddesignofthemallhavetoaddress twokindsof er. Forthetenantsfactorslikefloor,builduparea,energyefficiency,securitymovemen veandtimelygarbageremovalsystemandsafetyshouldbetakencare of.Whereas,forthe fety,easycustomercirculation,wide passageways to shop around with trolleys, ampl ce, easy access from shoppingareaswithtrolleystothevehicleparkingarea,adequate he tired to sit and relax and phone facilities should be provided. Customers verallexcitementthattheshoppingexperienceoffers. OtherfactorsAmpleparkingspa ,andseriousfootfallsetc. 37

ApplicationofBuyerUtilitymaponIndianShoppingMalls: UtilityLevers Customer Productivity Simplicity Interaction Services Purchase A rStagesoftheBuyerExperienceCycle(forShoppingMalls) Personal Assistance Multilevel Parking Multilevel Parking ValetParking SmallArtshops GiftVouchers LoyaltyCards BabyCare corners GiftWrapping Desks CustomerHelp Desks Convenience SignBoards Escalators Lifts SeatingFacility Risk Reduction Personal Assistance Interiors SecurityCheck GiftVouchers Multiplexes MusicShows Various Competitions Programmes onpublic awareness Fun&Image Exteriors ArcadeGames ConceptShops Environmental Friendliness Social Responsibility 38

WecannowmonitortherealobjectivesofthesestrategiesandtacticsadoptedbyIndian S hey are targeting on customer benefits? And on Which stage of buyingexperience ing?

InteractionStage: At the first stage of buyer experience cycle Interaction. Personal assistance hopping Malls personnel in a Shopping Mall directly hits to create convenience ith the additional benefit of simplifying the process of customer interaction wi ng Mall. Interiors and Exteriors are the most important aspect of any Shopping mpressionincustomersmindswiththespaciousnessofthe Mall.Theycreateanimageint eShoppingMall.

Services: Services like Multilevel parking, Valet parking, Sign Boards, Escalators, Lifts, facility etc. also focus on making the customers experience with the Shopping hisexperiencestageofservicesisthesupportstagefortherestofthestages asthese yerexperience.Multilevelparkingsimplifiesthe process of complete shopping experi stomers can park their vehicle to the levelwhichtheyintendedtoshoporvisit.Gr ongcustomerscan be a major factor in success. Absence of which may result in lity. Propersecuritycheckreducestheriskamongthecustomersandmakestheexperience 39

Purchase: Though, Shopping Malls cannot do much during purchasing stage of the customer e xceptselectinganappropriatetenantmixasretailoutletsgenerallyface the purchasing le. But by selecting a good and contemporary tenantmix, ShoppingMallsensuretha ainsuptodateandattractcustomers.By introducingthecreativeconceptofshopslikep ainting,andphoto shot etc. Mall developers try to enhance the productivity of hey can shopformuchmoremodernandfreshfashioninthemarket.Asdiscussedearlier, cedGiftVouchersforitscustomers.Thebenefittothecustomersis thatnowtheydonot kesofanotherperson.Theycanbut thesevouchersandgiftittothepersontheywantto ift voucher and shop according to his/her likes and dislikes. This reduces the omersandsimplifiesthepurchasingprocess. Multiplexes,Entertainmentsection(Arcade ceptoruniqueshopshelpsin creatinganimageofaShoppingMallamongthecustomers.As lbusinessoftheShoppingMall,theycomeunderpurchasestageofexperiencecycle. An e oss to me when I was collecting the primary data for Forum MallinBangalore.O RtoresembletheForumMallbecause ofthepublicityofPVRcinemasinForumMall. 40

Addons: ShoppingMallsprovideaddons,whicharenotaskedbythecustomersbuttoenhancethe cu ild loyalty among existing customers, Shopping Malls offer loyaltycardsforexisti hisisacommonpracticeamongtheShoppingMalls abroad.InIndia,itisnotacommonpra umMallhasstarted a loyalty cum credit card with association with ICICI Bank. fits to its customers in terms of privileged parking, privileged ticketing at P cial discountsatparticipatingstoresandgiftvouchersetc.aftercollectingcertainrew care corners concept tries to target the mothers of new born and focus on giv le shopping in the Mall. Though Indias Shopping Malls are not quite big, but edhelpforthesekindofcustomerscustomerhelpdesksat thegroundflooroftheMalls eutilityofbuyers.Various competitions and music shows try to create the excite sphere in a Shopping Mall as well as in customer shopping experience, which re nd givethemsometimefreefromtheworriesoftheworldtheycarrywiththem. Some S rganized some public awareness programmes on Pollution, Diseases like Polio, AIDS programmes come under corporate social responsibility(CSR).Althoughthisisnotthe chShoppingMallsdothese programmes, they also try to project themselves as a p d want to get noticedamongthemasses. No Shopping Mall has yet focused on t al Friendliness of their operations,activitiesetc.Thisaspectcouldprovideamassiv etoShopping 41

Mall over others as people are becoming more and more environment conscious, be ableaboutproblemscausedbywastagesetc.Thus,aShoppingMallcanproject itself as ndly operated Shopping Mall like its environment friendly wastagetreatmentprocedu eesonachievingcertainamountofsalesorfootfalls etc. 42

8.DoLoyaltyCardProgramsreallyworkwell? Thestraightanswerwouldbenotaswellastheymighthavebeen.Thesuccessofthese fthese programs. Majorityof theretailersarestill strugglingtogetitright.Them edtobeaddressedfromtheview ofaretaileriswhethertheyreallydriveloyaltyornot m expertslikeJimBarnesisthatloyaltyprogramshavelittleornoeffectongenuinecus ge percentage of senior executives feel that they are developing relationshipswi ersthroughtheseloyaltycardprograms,andaddonservices etc.butmostofthecustomer heseniormanagementlevelexecutivesaresooutoftouchwiththeircustomerswhen itcom ns? Results of the various surveys performed by retail organizations show that eiveatonofvalueinloyaltyprogramsandusethemoftentoearnrewards.But,they have .AccordingtoJimBarnesloyaltyProgramsexpert,one mustnotconfuseloyaltyprogramsw eday,theseprogramsdrive shorttermbehaviour,notloyalty.Mostcustomersareinitfo hat come with them, not because they hold the company in especially high regar amsinfluencecustomerbehaviour?Ofcoursetheydo.But,ifwearelookingto build long the kind of loyalty that is grounded in an emotional connection,retailersshould artaloyaltyprogram.Themostnegative part of these loyalty programs is that the st important aspect to 43

identify the loyal and the non loyal customers and develop a unique relationshi udybyMcKinseystatesthatloyaltyprogramsfailtoincreasecustomerloyaltythatthey spectiveofaretaileraloyaltyprogramhastogeneratebrand loyalty to the retailer. for retailers dissatisfaction with loyalty programswere: 1. Customization:Loyalt venotbeendesignedwithrespecttotheconsumer segments. 2. Costs:Administrationcost ementingtheseloyaltyretailprograms. 3. Revenues:Theseretailloyaltyprogramshaveno dincreaseinrevenues oftheseretailstoresforwhomtheseprogramsweredeveloped. 4. : Retailers have not used and collected appropriate details about customer sdata esigntheseloyaltyprograms. Mostloyaltyprogramsarenotdesignedwithveryfinedata etween customers who would recommend a particular business to friends and those nowingthiscouldmeanmillionsofadditionalrevenueforcompanies.Thetendencyof loyal g in new customers at no charge to the company is particularly beneficial.Many ttodoenoughwiththeirloyaltyprogramdatato makethecustomerfeelspecial.Oneoft altycardprogram is that retailers can quantify new customer losses and introduc gned to retainorencouragethemostprofitablecustomers."Withoutaloyaltycard,oneh 44

about the size of the inflow and outflow of new customers, Learning to play etter can help companies reap big cash rewards. Profits rise as a customer s r mpanylengthens.Thereisthereforeaneedtotaketheleadinloyalty programsbecauseit mentthatcancoordinatebetweenbusiness processes, external dataanalytics, vendors tives who can translate output intoaction.Inretailtoday,everycustomerhasadiff omerbelongs to a different social class and hence forth the motivation and sat are also different,itisnotsufficientthatcustomersaretreatedalike. 45

9.Findings o India is facing a vibrant growth in the number of Shopping Malls and this astfornextsomeyears. o Uniformity in Interiors, Exteriors, and Offers etc. of preventing to createastrongdifferentiatorontheseparameters. o Entertainmenthasal essityforanyShoppingMalltohaveinorderto attractfootfallsonregularbasis. o Av eisverylesscomparetoShoppingMallsabroadlikeinU.S. o Tenantsalwaysplaythemos lureofanyShoppingMall. o Environmentalfriendlinessutilityamongthebuyerutilities ndian ShoppingMallsfordifferentiation. o Loyalty Programs adopted by Indian Shopp ave not been successful as expected. Retailers are also dissatisfied because of related with these programsandlesserthanexpectedrevenuegrowth,withthedifficulty oftheseloyaltycardprograms. o Oneofthebenefitsofloyaltycardprogramsisthatret tomer losses and introduce programs designed to retain or encourage the most pr mers. o ShoppingMallsarefocusingmoreonhowtocreateabettercustomerexperience,bu lyonhowtheycouldimprovetheefficiencyoraddconvenience into the consumption cha (Reference: Discovering New Points of DifferentiationbyMcMillanandMcGrath,HBR199 46

10.Conclusion The study gives an insight about the opportunity as well as the challenge of yaltyforShoppingMallsinIndiaasmoreandmoreShoppingMallsareopening upintheco dmetros.Toconclude,theincreaseinShopping Mallretailspaceprovidesufficientspace esultsinmoreoptions tothecustomers,whichresultsinlowcustomerloyaltytowardsas retain customers, Shopping Malls are undertaking several strategies and tactics l ervices, better facilities etc. As the customer loyalty is becoming more crucial ation in terms of consumption chain or the customer experience can help in bui alcustomerbasetofightagainstthenearbyShoppingMall. 47

11.Recommendations

1. NotJustanotherCard: In India, the market has been full of loyalty cards and customers also expect heir tangible benefits. The call of the hour for Shopping Malls is not to dev o card, but some different offerings or totally different conceptofloyaltycard. nistheonlykeyavailablewiththeShoppingMalls tobuildcustomerloyalty. Oneconcep hoppingMallloyaltycardwiththecoalition oftenantslikeAdidas,Sonyetc.andservice erCard.Theconcept would work like this: Customers will get the bills separately l stores as usual.Theywillearnsomepointsbasedontheirshoppinginthatparticular erhastoredeemcertain%ofearnedpointsonthestorewherehehad shopped and rest ther stores of the Shopping Malls. Thesystemwilltelltheinformationaboutthepoi eraswellas particularstores. o For example: I shop from an Adidas store in G and I earned lets say 200 points. Now as per the loyalty program rules, I c t Adidas store only and rest 80 points in other shops of that Mall.

2. ShoppingMallscanalsolookata CollegeSavingsScheme exclusivelywhereina certain % of sales is ploughed back and held in a fund to aid college expens 48

customer or his nominee at a future date. This scheme will target to those sh nareinschoolsandwillbejoiningcollegeinnearfuture.Thisschemecan have associa also who can also help by giving their shopping pointstothesamecustomer.Itwi legestudentsforshortterm savings.ThisschemewillworkasCSReffortbytheShopping ting socially good image, emotional connect with shoppers, concern about their f llowingassociates(whichmaymeanmorecustomers,newcustomers) the Shopping Mall act a sales promotion strategy. This model is doing fantastically well in United St a greater probability because of more emotionalcustomers,morefamilyorientedcultu

3. Anotherconceptcanbedevelopinga "MileageProgram(MP)"basedonpurchase intheShoppingMall,theusualmoreyoupurchasethemoreyouearnmile/points.This will tegoryspecific(McDonalds/fastfoodrestaurants, Nike/Sportswear outlets) and the oth ntire mall based. Any consumer purchasingworthXXXXamountinanycategorystoreofy alsoinMP2list.Basedoncertainslabsofpointstheconsumerswillgetvariousprizesfo alprizeswillbediscounts/couponsetc.asthatis instantandattractsconsumers.Butfo ssymbolthings,i.e. Membership of exclusive Country Club, Return tickets for 2 ort, MembershipofanyairlinesPrivilegeClass,TicketsforTopendFashionShows(Versac ts/OperaShowsetc. 49

o This card is basically to cater both kinds of customers together; customers w e benefits like discounts etc. as well as to customers for whomstatusisalsoi

4. Differentiation: AsdiscussedearlierinthereportStandardizationinInteriorsandExteriorsisoneofthe ndianShoppingMalls.ShoppingMallcantakeastepforward to differentiate itself fro spects. Example could be like Theme of ShoppingMall(onseasonalbasis).CurrentSh endingmucheffort onEnvironmentalFriendliness;aShoppingMallcandifferentiateitself g and communicating the environmental friendly operations like Eco Trash Removal

5. CustomizedLoyaltyPrograms: Today,everycustomerhasadifferentneedandeverycustomerbelongstoadifferent socia otivationandsatisfactionlevelsarealsodifferent,itis not sufficient that custome like. Customized Loyalty program can overcome this issue and will be able to b gingness among the customers.

6. InvestmentCommitment: To design a leading loyalty program, Shopping Mall owner should always be willi he strategy, technology and processes to ensure maximization of potential. 50

Thereisalsoaneedtoinvestinsophisticatedanalyticstogeneratetheinsightsthata

7. Enhancingthecustomerexperience: Conducting focus groups will ensure that the customers will come up with their chcanbeincludedwhiledesigningtheloyaltyprogramsorstrategies. 51

12.FurtherResearch Beyond this study, the emerging challenge and opportunity of customer retention esearchopportunities.TheapplicabilityoftheBuyerUtilityMaptoShoppingMallsand ge eloyaltyprogramscallforfurthervalidation.Furtherresearchesmay analyzethepotenti onsrelatedwiththerecommendationssuggestedinthe study. 52

13.References ArticlesandResearchstudiesReferred: o Anand, Kumar (2008) Indian retail sector fails consumerfriendly test, The Ec gust,Page5. o Chakraborty,Somasroy,(2007)Only1012%ofmallsinIndiasuccessful, une23,2007. o Dhanabhakyam,M.andShanti,A.,IndianRetailIndustryItsgrowth,Cha s. o Dr.TrivediShekhar(2008)Zoominginonmalls,RetailBiz,May2008. o Everitt, opping Mall brand, 29th April 2008 (http://industry.bnet.com/retail/100044/howtobu ingmallbrand/) o FICCIandErnstandYoungReport,2007Indiatohave600ShoppingMall ls in India, 2007 edition maps Shopping Centre Developments acrossIndia. o Gent ndia s malls pull in people who aren t buying, International HeraldTribune,May Prashant (2007) Malls betting on entertainment to draw in shoppers, New Delhi. emint.com/2007/05/14003113/Mallsbettingonentertainment.html) 53

o Gotsis,TraceyInvolveteensinmarketingeffortstocreatebrandloyalty (http://www. ducation/newsletter/involveteens.pdf) o Jain,Pradeep,(2008)MustforMalls:USP,Reta 8. o King, Sharon R. (2008) Shoppers get awards; Malls get loyalty, The New eptember4,2008. (http://query.nytimes.com/gst/fullpage.html?res=9902E4DF103CF930A15 751C1A96E95 8260) o Pradhan, Swapna, Shopping Malls in India Implications for il Biz, June,2008. o Prof.Sundar,BuildingsuccessfulIndianretailbrands (http:// /Larticle/Building_Successful_Indian_Retail_Brands.pdf) o Rigby, K. Darrell and Vishw anath, Vijay, Localization: The Revolution in Consumer Markets,HarvardBusinessR /www.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?articleID=R0604E&ml_actio n= getarticle&print=true) o Shinde, Devendra (2008) Care for your Brand, the way y skin, Retail Biz,March2008. o Worlds biggest Mall planned in Gurgaon, The tim 005, (http://timesofindia.indiatimes.com/articleshow/1149016.cms) 54

WebsitesReferred: o http://en.wikipedia.org/wiki/Shopping_mall o http://www.garudamall.net o http:// www.globus.in o http://www.krahejacorp.com/retailing.html o http://www.shopperssto p.com o http://www.theforumexperience.com o http://www.upromise.com 55

14.Annexure o MallSpaceGrowthinIndia: Source:F&RResearch:MallsinIndia2007

o NumberofShoppingMallsinIndia: State Maharashtra NCR W.B. Karnataka A.P. Tamil jab U.P M.P. Rajasthan No.of Malls 50 55 30 20 19 13 15 14 13 11 9 State Uttarakhand Assam Chandigarh Jharkhand Goa H.P. J&K Orissa No.of Malls 8 8 6 Source:http://www.researchandmarkets.com/reportinfo.asp?report_id=579542&t=o&cat_ id= 56

 o StatewisedistributionofShoppingMalls(Graph): No. of malls in states 60 50 55 50 No. of Malls 40 30 20 10 0 30 20 19 13 15 14 13 11 9 8 8 6 4 2 2 2 1 1 1 1 . U. P Ke ra la G oa t ra sh tra kh an d W .B . A .P ar a st ha ar h n ig G uj Ra ja ah a

ar a M States Ut t C ha nd J & K

o DistributionofShoppingMallsinbigcities: City Mumbai NewDelhi* Kolkata C Malls 32 30 21 11 14 Bangalore Chennai M etro C ities Kolkata New Delhi* Mumbai 0 5 10 15 11 14 21 30 32 20 25 30 35 *(exceptGurgaon,Noida,and Faridabad) No. of Malls 57

o ObservationalForm(checklists)tocollectprimarydata:

Category o ParkingFacility o PublicTransport o SecurityCheck o Customerhelpdesks o Interior rs o RetailOutletMix o CustomerProfile o SeatingArrangement o SignBoards o Eateri o RestRooms o LoyaltyCards o ProductDisplays o ArtShops o Multiplexes o MusicShow tionsetc. o Others o Remarks 58