ContentContent

Operation Management

Conceptualization of Seller

Legal

Organization Structure-Mall

Case Study on Viviana Mall

A mall is place where consumer can access different variety of product on a single location where the consumer enjoying the

benefit of selecting of his own base product with multiple option in front of him. It also provides consumer a place for Entertainment and he enjoys the various services like play area for child, movie

theater for family and food area for his refreshment.

Concept of the MallConcept of the Mall

Globally, mall management broadly includes:

• Positioning a mall

• Zoning

• Promotions and marketing

• Facility management

• Finance management

Operation ManagementOperation Management

Positioning a mall refers to defining the category of services offered based on demographics, income levels, competition in neighbouring areas and extensive market research of the catchment.

For example, if the market research indicates that the average number of households living in a particular area belongs to the upper middle class, then a high-end retail mall would suit the location.

Positioning also refers to the location of the shopping mall. A good location defined in terms of factors like ease of access via roads, good visibility, etc. is considered as one of the prime prerequisites for a mall.

Positioning a Mall - location of the shopping mallPositioning a Mall - location of the shopping mall

Tenant mix refers to the combination of retail shops occupying space in a mall.

A right tenant mix would form an gathering that produces optimum sales, rents, service to the community and financiability of the shopping mall venture.

Generally, there are two types of consumers visiting malls :1)focused and 2)impulse buyers.

The time spent by focused buyers in malls is relatively lower compared with impulse buyers who also enjoy window shopping.

Zoning – the division of mall space into zones for the placement of various retailers

Zoning – the division of mall space into zones for the placement of various retailers

Promotional activities and events in a mall form an integral part of mall management.

Activities like food festivals, handicraft exhibitions and celebrity visits increase foot traffic and turn the sales volumes.

Organising cultural events has time and play vital role in attracting consumers to a mall.

Such activities may also act as a differentiator for a mall.

Promotions and MarketingPromotions and Marketing

Facility ManagementFacility Management

Facility management refers to the integration of people, place, process and technology in a building

Ambience Management –includes management of parks, fountains and overall look of the mall. A mall is not just a place for shopping but is also a place where people spend their leisure time.

Traffic Management –includes managing foot traffic into the mall and parking facilities. Foot traffic management involves crowd management inside the operational area of a mall. For example, a star-shaped mall tends to have a problem of crowding in the centre of the mall, as everyone has to pass through the centre while moving from one side to the other. Circular malls, on the other hand, would not have this problem. Managing parking facilities includes provision of ample parking.

Finance managementFinance management

Professional financial management of a mall as a business venture is a must. Mall

management also covers financial management, which involves monitoring and

controlling of various issues such as:

Cash receipts and collection of income including

Centals, service charges, car park receipts,

Electricity and other utility income

Developing accounting systems to track the ageing of debts, payment delay

patterns, bad debts and payment of all invoices and expenses developing standard

financial templates so that a detailed annual property budget is prepared at times.

0rganising resources to deliver an

efficient and effective annual external audit

Salle attract the consumer by providing attractive discount at various intervals

Salle provide the consumer with multiple option on various and latest fashion , technologies, advance gaming and ext.

Because of multiple option available with seller the buyer (Consumer and seller) both enjoys of there on enjoys of benefits.

Depending on the consumer behavior with the seller and area , He try to reorganized his product to take advantage by liquidating his inventory

The seller having the multiple stores ,options and providing the consumer with discount , membership option. By this way a seller materialized , increased the sale and attracting more customer ,he trying to achieve his objective of profit

Conceptualization Of Seller Conceptualization Of Seller

For building a multiplex, a food court, a banquet hall, a disco or a Family Entertainment Centre (FEC) in a mall, these areas of the mall should be specially registered under the Shops & Establishments Act, 1948 with BMC. Electricity permission is to be taken from MSEB.Parking license is to be taken from BMC for developing a parking area in the mall.Insurance In case of a multiplex theatre construction in a mall, a NO OBJECTION CERTIFICATE is to be obtained from neighbour.To construct a food court, a food license is to be obtained from BMC along with kitchen license that is to be obtained for the kitchen attached.

Legal Frame WorkLegal Frame Work

Legal Contract

Lease contract between mall management & shopThe Lease office letter Presented to tenant should inform basic economic provisions in the process. Items that involve matters as rent details, tenant’s tax participation (I.e. Land tax, VAT) Contribution to common area maintenance and operation costs, insurance .Percentage rent above break even point if applicable, marketing & Promotion participation and expenses and rent review provisions as well as special conditions.Method of measurement of area is defined in the contract , calculating the base rent and outgoing charges.Bank Guarantees / Security deposited .Percentage share / Rent & sales Fig.

Revenue-sharing evolved with brands usually paying a minimum guarantee or a certain share of generated revenues each month.

For some apparel brands, revenue-share percentage is between 10 and 14 percent.

For footwear retail is between 12 and 14 percent .

Fashion accessories command around 8 percent.

The supermarket segment shares between 3 and 6 percent of revenues as rent

Typical range for vanilla retailers is 1-3 percent.

Revenue Source (Revenue-share or minimum guarantee model)

Revenue Source (Revenue-share or minimum guarantee model)

Typical Organization StructureTypical Organization Structure

S2RJ Mall

One of the largest malls in India, is set to become shopper’s destination. 7 main-anchor , mini-anchors and 150 shops and have widest variety of brands. Viviana Mall is all set to open Cinepolis - one of the largest multiplexes in the country with 14 cinema screens that seats up to 2,400 people and the most number of shows . Viviana have 2 level basement parking area which have 2400 car parking capacity

Viviana MallViviana Mall

Different activities in which different age groups like to Different activities in which different age groups like to engageengage

Different activities in which different age groups like to Different activities in which different age groups like to engageengage

Description of Timings Duration Remarks

Mall Timings 9 AM - 9 PM 12 Hrs.

Cleaning Time 6 AM - 9 AM 3 Hrs.

Major cleaning carried out before opening of Mall for customers, in presence of security staff.

Diesel Delivery 7 AM - 9 AM 2 Hrs.

Escalator / Lift Repairs 11 PM - 7 AM 8 Hrs.

Escalators generally require 5-6 hrs time for maintenance work, in the presence of security staff.

Garbage Disposal 7 AM - 8 AM 1 Hr.To be carried out in the presence of security staff.

Emergency Lighting - -Required by Inverters and/or emergency lights in all common areas and shops.

Electrical Breakdown 24 Hrs. 24 Hrs.Typical minor electrical faults in shops require 10mins to 40mins to repair.Recommendation - Have ample number of electricians at all times.

Air Conditioning Maintenance Works 7AM - 10 AM 2-3 Hrs.

Normal maintenance of AHU's etc. installed in shops and common areas. Cleaning of filters etc. of AHU's, in the presence of security staff for common areas and in the presence of shop owners for the shop.

Plumbing Work 11 PM - 7 AM 8 Hrs.All plumbing work to be done at night in the presence of the security staff.

OPERATION SCHEDULE

MALL OPERATION SCHEDULEMALL OPERATION SCHEDULE

Viviana Mall Special Features

1 million square feet retail space.

Food courts spread across 2 levels.

Won the prestigious Cityscape Award for the Best Future Retail Development.

Located on Eastern Express Highway, Thane.

Accessibility from Mulund, Ghatkopar, Powai, Chembur, Vashi, Airoli, CBD Belapur, Dahisar, Borivali and Bhayandar.

280 shops with scalable area ranging from 300 to 1,50,000 square feet.

1,25,000 square feet Hypercity (largest in Central Mumbai).

Lease

Space on hire

Revenue Share

Pay and park

Hanging banners

Revenue GenerationRevenue Generation

Sheth Developers Tied up the contract with Pizza Express on 10% profit

share per month.

Management team maintains a database server where all the transaction of

Pizza Express stored in the database server, so that at the month end

management team can cross check the monthly profit statement of Pizza

Express.

It will show the overall view of profit share

Recommendations In Revenue LeckagesRecommendations In Revenue Leckages

Recommendations In Revenue LeakagesRecommendations In Revenue Leakages

Continued...

Recommendations In Revenue LeakagesRecommendations In Revenue Leakages

V/s

Sushma S

Swapnil S

Jayesh D

Rahul G

Sushma S

Swapnil S

Jayesh D

Rahul G