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Inorbit Malad

By basitdll Mar 30, 2011 2401 Words
Inorbit Mall
LocationMalad
Date of LaunchFebruary 2004
Total Area500,000 sq.ft
No. of Stores120
No. of FloorsGround + 2 Floors
Timing11:00 to 23:00
Target Segment SEC A and B
Location Analysis
Inorbit mall is located at Malad (West), the western suburb of Mumbai.. At present, Various residential and commercial buildings have sprung up especially in Lokhandwala, Millat Nagar ,Oshiwara , Goregaon and Malad.. The nearest station is Goregaon and Malad. The mall is well connected by road and rail and has a high visibility. According to our study, the location is perfect as the Western suburbs

a) Are highly populated
b) Have high propensity to spend
c) Do not have many shopping zones
d) 60% of the catchment has travelled abroad and around 60 % have vehicles (data by Mr.Arjun, Store Manager of Arrow Store) Footfall analysis
Inorbit Malad commands one of the highest footfalls in Mumbai. The footfall in weekdays is between 60,000 and 65,000. During weekends, the footfalls can go upto 1,20,000. The footfalls are at its highest during the sale period . The footfalls are its highest on December owing to the holiday period. The Arrow store in the mall has a footfall of 30 per day during weekdays and 100 per day during weekends and Holidays

Catchment area

The primary catchment area of Inorbit is from Malad to Jogeshwari. The secondary catchment area includes the area from Lokhandwala to Kandivali. The tertiary area is from Borivali to Vile Parle.75 % of the total footfalls are from the primary and secondary catchment area. Design and traffic flow

The first two levels are dedicated to retail while the upper floors are devoted to leisure and entertainment. There are 4 elevators, 5 escalators for vertical movement of visitors and 2 numbers of freight lifts with separate access for loading and unloading materials. There is a 15-feet corridor which helps in maintaining a free-flow of shoppers and provides easy access to the stores. The Mall is accessible by ramps at all entrances, thereby making it accessible to physically challenged persons. There are three entry points, one each from the two anchor stores and another entry directly to the mall atrium. With three entry points, traffic management within the mall is better organised. The Mall is equipped with adequate escalators, lifts and smoke detectors that are connected to the Integrated Buildings Management System. Landscaped Gardens are present in both the front and rear areas. The interior design is designed by world class International interior designer M/s BentelPublic direction signages are provided on all the floors. Every floor is provided with floor map showing the fire exits. For guiding, the public help desks are provided at entry and exit points. The entry of the Mall is fully equipped with metal detector including carry luggage. Public address system is provided. Tenant portfolio

The mall has 120 stores which ranges from Clothes to Toys, Candies to FMCG and accessories to Games. Shoppers Stop and Lifestyle are the two anchor stores in the Mall at the two corners of the mall. Mr.Pradeep Lalchandani, Store manager of Blue Tonic stated that Inorbit Malad has a strong tenant portfolio and a very organized zoning mix. He also told that the mall is designed in such a way that it attracts both serious and impulse buyer. The stores are given at 33 months lease period and 10 months rent is paid in advance. The mall follows a profit sharing model with all the retailers. There is a wide disparity between the rents paid by different retailers depending on * Location of the store (commands high rent if near escalator, elevator or near the entrance) * Old and new tenants

The Arrow store pays a very low 50,000 rent for an area of 700 sq.ft, which enumerates into Rs.72/sq.ft. The reason, as told by the Mr. Arjun, Store Manager of Arrow, is because they are one of the first tenants in the mall. All the stores which are with Inorbit Mall from the start pays an extraordinary low rent. According to Mr. Pradeep, this differential rent system may change soon. The toy shop near the entrance, which has couple of branches in Mumbai, pays rent of 60,000 for 175 sq.ft. It started its operations 2 months back. Retail Store| Visibility| Floor| Rent paid| Area| Rate/sq.ft| Arrow| High| 1st| 50,000 /-| 700 sq.ft| Rs.71|

Toy Shop| Very High| Ground| 60,000 /-| 100 sq.ft| Rs.600| Blue Tonic| High| 1st| 2,40,000 /-| 475 sq.ft| Rs.505| Color Plus| High| 1st| 4,50,000 /-| 600 sq.ft| Rs.750| Shoppers Stop| Very High| Ground & 1st| 30-35,00,000/-| NA| NA| Inorbit is now on the verge of making it as an INTERNATIONAL Mall as in where it will shift its tenants to more international brands 1) More revenue per store as it follows a profit sharing model with its tenants. This is because the profit margin of International Brands like GAS and DIESEL is more than Blue Tonic and Color Plus 2) There are around 450 waitlisted applicants for stores. Majority of them are International Brands 6 months back, Wal-Mart CEO Mike Duke had visited Inorbit Mall scouting for location. Mr. Pradeep told us that they are ready to pay high revenue share to the mall and thus Spencers have to move out. The Mall management now collects 3 – 15 % of the total sales as their share, depending on the nature of business. Ownership Structure

The mall is wholly owned by K Raheja Corporation. They are privately held company and does not have foreign investment. The loan for initial investment was supported by HDFC. Personnel Management
There are 42 employees working in the Main office of Inorbit Malad which is in the 2nd Floor. Then there are 250 people working for the mall and services. Most of the employees disguise themselves as customers and take a periodic check all over the mall. The Security personnel in the stores are under the management of Inorbit and not of the stores. They also have housekeeping and cleaning department .The stores in the mall charge an extra Rs.35/sq.ft as Camp charge which includes security, cleaning and maintenance. Facilities

| | | | | | | | |
| Ambulance
| | ATM
| | Auto stand
| | Baby Care
| |
| | | | | | | | |
| | | | | | | | |
| Baby Change
| | Bag Park| | Car Calling
| | Car Spa
| |
| | | | | | | | |
| | | | | | | | |
| Communication Center
| | Cool Cab
| | Cyber Cafe
| | Forex
| |
| | | | | | | | |
| | | | | | | | |
| Gift Wrap
| | Information Kiosk
| | Lost & Found
| | Mechanic| |
| | | | | | | | |
| | | | | | | | |
| Meeting Point
| | Newspaper
| | Wheel Chair
| | Wi-fi
| |

Good security system especially for women because they provide a box whereby a woman is taken in a box like structure when entering the mall and security check is done. The box also advertises the store “sach” 1700 cars can be parked in the designated parking area in the basement and another 1700 cars behind the Mall. Car wash facility is also provided. Sniffer dog squad at all Inorbit malls. Inorbit is probably the only mall in the city which has its own sniffer dog squad. The four-member squad is taken around the premises three times a day. They have a very good signage boards all over the mall and this helps in easy navigation. Marketing activities

The mall has been very successful in its marketing activities. The mall has the concept of morning walk, where people from nearby areas use the mall for morning walk. This is first of its kind and has become a success. They also have banners near the mall which is placed on the divider between the road which gives high exposure. Also the mall management conducts events for kids and family inside and outside the mall. Customer satisfaction level

We did an informal survey on 20 customers by asking them 3 questions 1. How many times do you visit the mall?
2. Are you happy with the overall quality of the mall?
3. How much time do you spend in the mall?

We found that majority of the people visit the mall once in a month. The Customer satisfaction is very high – 90 %.
The customers spend around 3-4 hrs in the mall.

Crawford Market
The market is situated opposite the Mumbai Police headquarters, just north of CST railway station and west of the Mohd. Ali Road. Most of the sellers inside the market sell imported items such as foods, cosmetics, household and gift items. It was the main wholesale market for fruits in Mumbai until March 1996, when the wholesale traders were relocated to Navi Mumbai. Location

Footfall analysis
Crawford Market attracts large number of customers from all over Mumbai. The footfalls on weekdays range from 8000-9000 and on Saturday it goes upto 12,000. Crawford not only attracts customers from nearby areas but also from Panvel, Thane and Borivali. Restaurants in around CST also buy products from this market. It has stores of FMCG products, perfumes, dry fruits, staples, poultry, grocery, pet stores, luggage etc.

The reason for high footfalls can be attributed to
1. Products
They stock products like perfumes, dry fruits, FMCG, poultry, bags, utensils, fruits and vegetables and pets. But their USP lies on the selling of imported products, mainly from U.A.E, Saudi Arabia and U.S.A. the high selling products are Chocolates, Pepsi and Mayonnaise. All types of chocolate are available from Cadburys to Lindt and cooking chocolates. Pepsi which costs Rs. 25 is available for Rs. 22 (Imported from Dubai). At the same time we found that imported cosmetic products are charged higher than MRP in India. For example, Nike Splash High which is available for Rs. 170, is sold at Crawford Market for Rs. 190 (Imported). As the shopkeeper of Armaan Beauty World told us, there are enough customers ready to buy this product. They also have poultry products which has wholesale and retail selling. The customers are mainly uptoByculla. There are 12 stores which only sell cigarettes and Hukkas. The cigarettes are sold to the paanwalas as well as customers 2. Location

The location of Crawford Market is a one stop shopping area. It is like an open mall where all type of products are available. For textiles ,there is Mangaldas market and Kalbadevinearby. For mobile phones and Chinese electronic items, Manish market is just behind Crawford Market. Abdul Rahman Street for toys and stationary items and Nagdevi Street for mechanical and Spare parts. People from all over India come to any of the above places for wholesale buying as well as for self-use. Each market facilitates each other’s sales. For example, a person visiting Mangaldas market may visit Crawford market as it is nearby. This highly promotes impulse buying. Ownership pattern

Crawford market has a mixed ownership pattern. Most of the shops have been bought from BMC and the owners operate it whereas few of the shops are still under the possession of BMC which they rent to retailers. Also some of the owners have rented their own shops to retailers.The rent of the shops vary from 25000 to 80000 depending on the size and the visibility(location in the market) of the shops. The traders do not have in-house warehouse. They store their inventory in nearby buildings and in the Kasai mosque nearby. The goods are then transported using hathgaadis to the market. The shops also pay Rs.1000 indirect charge unofficially. A 10 sq.ft store which sells cigarette pays a rent of 40,000.This store has been in the market for 50 years. The VIP collection which sells bags pays a rent of 60,000 for an area of 300sq.ft. If a new retailer is opening the store in the same place, he has to pay rent of 2-2 ½ lakhs.

CBD and mall (comparison)
1. Level of service in a CBD is low as compared to malls. 2. Marketing and promotion aspects are high in malls whereas in CBD its negligible(sometimes totally absent) 3. A CBD is more product centric rather than a mall wherein many other factors like ambience, visual merchandising, shopping experience, entertainment, leisure etc. play a vital role.

A mall or a CBD?
Which retailers should opt for a mall and which should chose a CBD is a highly debatable question. Our view and recommendation is as follows:
1. Well known retailers who follow a franchise pattern or they have chain stores can open their store in a CBD as well as a mall. Both in a mall as well as a CBD they will enjoy high footfalls.( 2. A small retailer who is new in the market should opt for a CBD. In a mall the degree of competition for him would be very high because of alreadyexistingwell-known brands in the mall which could prove fatal for the new retailers survival. So the chances of succeeding in a CBD is more than starting in the mall. A small retailer would be first worried about sustaining in the market and achieving the break even rather than developing and enhancing his brand image which he can do better by operating from a CBD. Moreover, retailers providing non-branded goods should prefer a CBD. 3. Entertainment retailers(specifically gaming zones) should prefer a mall over a CBD as the customers walking in a mall expect an overall shopping experience so the chances of their success in a mall is higher. Services like gaming zones are very high on their intangible factors (like experience) which forms an important part of shopping experience which a mall customers looks for. Whereas a customer walking in a CBD would be more product specific and won’t be bothered about adding on his experience or availing entertainment services. 4. High end retailers like Louis Vuitton would prefer a mall over a CBD because they cater to a niche segment and they focus much on conversion rate as compared to footfalls. They would try to minimize the number of window shoppers.

Comparison between Inorbit Malad and Inorbit Vashi
Anchor Stores| Shoppers StopLifestyle| Shoppers StopHypercity| Multiplex| Fame Cinema| No|
Gaming Zone| Time Zone| No|
Customer Feedback Machine| Yes| No|
Parking Capacity| 1600| 650|

FACILITIES | INORBIT VASHI | INORBIT MALAD |
Rain Man Assistance | Yes | No |
Special Room for kids | Yes | No |
Newspaper | No | Yes |
Gift Wrap | No | Yes |
Mechanic | No | Yes |
Car Spa | Yes | No |
Cool Cab | No | Yes |
Car Calling | No | Yes |

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