Strategic Marketing to enhance Centre Productivity...Secondary Target AudienceABC1 women, 25-55...
Transcript of 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….
The Property as Product
• 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
Inviting Exterior
Inviting Exterior
Unique Product
Unique Product
Unique Product
Connecting to the consumer
The Property as Product
• 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?
The Property as Product
• 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?”
The Power of Marketing: Branding
It’s all about the branding!
The Power of Marketing: 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 ?
The Power of Marketing: Branding
• 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
The Power of Marketing: Branding
• 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?
The Power of Marketing: Branding
• 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?
The Power of Marketing: Branding
• 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
The Power of Marketing: Branding
• 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?
The Power of Marketing: Tourism/Visitors
• Research the visitors market– Convention and Visitors Bureaus
– Bus/Transportation companies
– Hotels
– Travel web sites
– Airline
The Power of Marketing: Tourism/Visitors
• 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
The Power of Marketing: Tourism/Visitors
• 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
The Power of Marketing: Sponsorships and Partnerships
• 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
The Power of Marketing: Sponsorships and Partnerships
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
The Power of Marketing: Sponsorships and Partnerships
• 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