marketing’s contribution to increasing centre performance · • tenant/merchandise mix ......
TRANSCRIPT
MARKETING’S CONTRIBUTION TO
INCREASING CENTRE PERFORMANCE
Tony Longstaff
Marketing Analytix UK
• Determining Centre Value
– Net Operating Income
– Capitalisation
SHOPPING CENTRE
FINANCIAL ANALYSIS
NET OPERATING INCOME
• Gross Income
LESS:
• Operating Expenses
NET OPERATING INCOME
• Gross Income
• Rent
• Premiums
• Speciality Leasing
• Other Income
SHOPPING CENTRE
FINANCIAL ANALYSIS
• Income
– Fixed Minimum Rent
– Percentage Rent
– Turnover Rent
– Total Rent
– Other Income
NET OPERATING INCOME
LESS:
• Operating Expenses
• Administration Expenses
• Unrecovered Costs
• Other Operational Expenditure
CAPITALISATION
Basic Formula V = I / R
• V = Value
• I = Income
• R = Rate (capitalisation rate or expected return)
THE ROLE OF CENTRE MANAGEMENT
• Oversees Administration Functions
• Operating Income/Expenses
• Capital Expenditures for Real Estate Improvement
• Operational Expenditures for Maintenance
• Marketing
THE FOUR ASPECTS OF
ADMINISTRATION
• Planning
• Implementing
• Monitoring
• Reporting
LEASING TEAM
• Rent Sources
• Negotiating Rents
• Tenant/Merchandise Mix
• Prospecting – finding new retailers
COMMERCIALISATION
• Temporary Tenants
• Seasonal Revenue
• RMU’s/Barrows
• Sponsorships
• Others
THE MARKETING MANAGER’S ROLE IN
INCREASING CENTRE PRODUCTIVITY
• Increase Centre Footfall & Sales
• Increase Rent
• Reduce Expenditure
• Develop a Strategic Marketing Plan
• Simple SWOT analysis
– Identify Strengths and Weaknesses
– Opportunities and Threats
• Goals and Objectives
– Set Measurable Objectives that are Linked to the
Business Plan
DEVELOPMENT
• Site Location
• Tenant Mix
• Current and Future Competition
• Customer Profile
• Dealing with Changes in Retail Environment
– Market Size
– Accessibility
– Significant New Retail Competition
– Tenant Mix
– New Distribution Channels
– E-commerce
MARKETING’S CONTRIBUTION TO
INCREASING CENTRE PERFORMANCE
Key points……
MARKETING’S CONTRIBUTION TO
INCREASING CENTRE PERFORMANCE
Tony Longstaff
Marketing Analytix UK