CHAPTER I
INTRODUCTION
1.1
Our Understanding Of The Project
1.1.1 An Overview Of Supermal Karawaci
1.1.1.1
Background Of The Project
Supermal Karawaci (“SK”) is a shopping mall located in Lippo Karawaci,
Tangerang a western part of Jakarta. Being redeveloped after the riot in May 1998,
which burned and destroyed several parts of the mall, the biggest area mall in Jakarta
is trying return back in business.
After acquired from Group Lippo (PT Lippo Karawaci) by Rodamco BV in
2000, steadily the mall with total area of 12.5 hectare and space area of 80,000m2 is
continuously take several improvement actions. However, the market development in
the shopping mall/retail area of the property sector has increased dramatically. New
entrants are coming into the market together with their new services and major
tenants, which will be the main key selling point of the majority mall management in
Jakarta.
SK is also facing increasing competition from its new competitors. Supported
with the growing of residential area nearby the Karawaci area, many new shopping
centers/malls were built. Slowly but sure, these new shopping center/mall are eating
the market share which previously enjoyed by the SK. Supported with a well-known
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major tenants and similar target segment & positioning, these mall are intercepting
the visitors who previously are the main visitors for SK.
Compared with other mall, which have a clear targeting and positioning, SK
currently employs a wide range of business segments. SK serves from the lower
segment up to the high-segment and does not have a focus target market. This
condition caused many problems for SK, like slow growth on revenue, stagnant
occupancy rates and no point of attraction for the visitors to visit SK.
Facing this current situation, SK’s management considering to redefine its
market segmentation, targeting and positioning to retain and develop its position to be
a market leader in the mall sector.
1.1.1.2
SK’s New Owner Profile – Rodamco-Asia NV
Based in the Netherlands, a member of Rodamco Group with investment
spread around the world and is among the world’s largest properties companies.
Rodamco has billions of investment in North America, Europe and Asia, and
expanding rapidly in Asia under Rodamco-Asia NV.
Some of Rodamco-Asia’s portfolio included: Fraser Serviced Apartment –
South Korea, Capital Square – Singapore, Central Plaza – Bangkok (Thailand),
Maple Place – Beijing (China).
Rodamco-Asia has strong commitment for investment in Indonesia.
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Figure 1.1 – Rodamco-Asia’s Portfolio
Source: SK’s leasing presentation
1.1.1.3
Lippo Karawaci Township
SK located in the Lippo Karawaci Township with the following facilities:
•
Modern office towers
•
Apartments and condominiums
•
Imperial Golf Club (18 hole golf court, designed by Desmon-Muirhead)
•
Gleneagles International Hospital
•
Imperial Aryaduta (4-stars International Hotel)
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•
Imperial Country Club
•
International and Local School and Universities
•
Safe and well managed environment development and improvement
•
Wide range of residential types from exclusive houses to townhouse and a
themed residential precinct with approximately 30,000 residents from
diversities of ethnic background.
Figure 1.2 – Lippo Karawaci Township
Source: SK’s leasing presentation
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1.1.1.4
Big Population Catchments Of Supermal Karawaci
SK has the advantage of big population catchments in its surrounding area.
The current population in 8 km radius (considered as primary market of SK) is 1.7
million people.
2004
Figure 1.3 – SK Trade Area Map
Source: SK’s leasing presentation
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Figure 1.4 – SK Surrounding Area
Source: SK’s leasing presentation
“located in the strategic
Central Business District, the
heart of Lippo Karawaci”
Figure 1.5 – SK Strategic Location At Lippo Karawaci
Source: SK’s leasing presentation
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1.1.1.5
Market Potential Area of Supermal Karawaci
Located in the center of Lippo Karawaci residential and trading area in 105
Diponegoro Boulevard, Lippo Karawaci 1200, Tangerang. The distance from Jakarta
is 20 km away, made SK is one of the major regional shopping center in Jakarta.
Figure 1.6 – SK Is One Of The Major Regional Shopping Center In Jakarta
Source: SK’s leasing presentation
SK has divided its market potential into two type categories based on the location
radius from SK, i.e. Primary Market Area (8 km radius) and Secondary Market Area
(20 km radius). The detail explanation of the two types of market areas are explained
as follows:
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Table 1.1 – Primary and Secondary Market Areas of SK
Primary Market Area
Secondary Market Area
People who works and study in the
surrounding area of the SK
•
Approximately up to 8 km radius
from SK
Office complexes
Schools students and workers
Universities students and
workers
Professionals in Siloam
Gleneagles Hospital
Residence in Lippo Karawaci
Town
Citra Raya Estate
Bumi Serpong Damai Town
People who live in the surrounding area
Lippo Karawaci
•
Approximately within 8-25 km
radius from SK
Gading Serpong Estate
Palem Semi Estate
Harapan Kita Estate
Tiga Raksa Estate
Villa Melati Mas Estate
Modernland Estate
Ligamas Estate
Puri Indah Estate
Taman Alfa Indah Estate
Bintaro Town
Source: SK’s leasing presentation
1.1.2 Supermal Karawaci Mission And Core Values
1.1.2.1
Mission Statement
The mission of SK are being able as a favorite shopping destination in West
Greater Jakarta by offering value of money and variety in merchandise, food and
entertainment; providing excellent facilities and customer services; and delivering the
highest possible returns to shareholders and stakeholders.
1.1.2.2
Core Values
•
SK perseveres and has the courage to overcome any obstacles
•
SK commits to uphold the highest standard of integrity
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•
SK adds value in what we do through innovation and continuous
improvement.
•
SK is open to any feedbacks and criticism
•
SK works as a team
•
SK is fair and reasonable in all dealings with business partners, customers
and colleagues.
•
SK cares for the community and our neighbors.
1.1.3 Supermal Karawaci Mall Components
SK mall components are described as follows:
Components
Dept. Stores
Book stores &
magazines
Food Court
Food Festival
Timezone
Studio 21
Cinema
Table 1.2 – SK Mall Components
Description
Features a wide general merchandising goods of fashion, accessories,
house ware, etc
Featuring Gramedia as mini anchor destination bookstore
Located in the level ground of the mall, providing international franchised
brands of cuisines with 1,200 seating capacity enhanced by giant 6 by 8
meter and the best quality plasma video wall which is one of the
promotion tools to keep the audience in the two levels of Food Court
updated with what’s the new things in the mall
Located in the upper ground level of the mall with 300 seating capacity,
providing the local favourites as well as the Asian Food Delight which
serves non-halal food, the area within serving famous Asian delicate
cuisines
The biggest Timezone in the world and the first 4,000 sqm indoor air
conditioned family entertainment in Indonesia with the roller coaster
among other games and play arenas
Cinema showing 7 screens cinemas (theatres)
Dragon Water
park
The most unique and fantastic not to mention the largest Water Park in
West Jakarta
PASS
The most complete and largest Automotive Service Center in West
Jakarta
Source: SK’s leasing presentation
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1.1.4 Supermal Karawaci Major Current Tenants
SK enjoys relationship with major retailers, food & beverage, electronics store
and other type of products, which are currently becoming the major tenants in SK.
Figure 1.7 – SK Major Current Tenants
Source: SK’s leasing presentation
SK major current tenants is listed as follows:
•
Matahari Dept. Store, Rimo Dept Store
•
Timezone, Grand Bowling, Menara Club, 7 screens of Cinema 21, Batik
Keris
•
Ace Hardware, Gramedia, Agis Electronic
•
Starbucks Coffee, Sakae Sushi, Johan Bread, Cakes Kitchen, Kaya Toast,
Gandy Tavern, Hanamasa
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•
Esprit, U2, Giordano, Korz, Orange, Lea
•
Mc Donalds, Wendy’s, KFC, Texas, New Zealand, Baskin Robbins,
A&W, Texas, Yogen Fruz, Popeye, Doner Kebab, Pizza Hut
•
ATM Boutique and center of LippoBank, BCA, BNI, BTN, Mandiri, BII,
Danamon.
1.2
Problem Definition
SK’s management realizes that the current mall marketing strategy is no
longer adequate in facing the tight competition in the shopping mall industry,
especially without a clear concept supported with the right segmentation and
positioning. The unclear target market creates many problems for SK’s management
in surviving from the competition and maintains itself as the market leader in
suburban Jakarta (primary and secondary area).
Budi Fauzi & Wiria (BF&W) Solutions, a Group Field Project (GFP)
Program Magister Manajemen Universitas Bina Nusantara formed as the
requirements of thesis completion (as final task) in the course of study in Program
Magister Manajemen Universitas Bina Nusantara.BF&W managed by three persons
as team members: Lukas Budi Kurniawan Harnata, Fauzi Agusta Moenir and Wiria
Chakradinata, will try to address the above problems through performed a research
project which will resulted a new marketing strategy for SK’s management. The new
marketing strategy is expected may answer the current problem faced by SK’s
management.
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1.3
Importance Of This Project
This proposed project is considered important for SK due to the following aspects:
•
SK needs to change for improvement. With the increasing competition from its
existing competitors coupled with many new entrants have entered to this
crowded retail/commercial property sector, SK has to apply the proper marketing
strategies to differentiate itself and make improvement. This will become the
main strategic factor that SK must bear.
•
SK needs to implement new business strategies by changing the current business
landscape to win the bigger market shares in the retail/commercial property
sector. Eventually, it will improve the financial performance of SK.
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1.4
Goals And Objectives
The main objectives and benefits of this project are as follows:
Defining New Marketing Strategy of SK
Objectives
Benefits
To provide solutions for SK’s problems:
To have the following benefits:
•
•
Develop
new
SK’s
marketing
•
Win the bigger market share, which
strategies.
finally
Implement the new strategies.
performance.
•
Running
improve
the
the
financial
business
smoothly
among the competitors especially in
its home base.
To provide new research in the strategic Enrich to the body of knowledge in the
marketing field project for:
•
strategic marketing fields especially in:
Best practice in strategic marketing
•
plan for shopping mall/retail property
sector.
•
Deeper
mall/retail property sectors.
•
knowledge
segmentation,
in
targeting
market
and
Strategic marketing plan of shopping
Shopping mall/retail property sector
characteristics research
support
in
that
defining
market
positioning of shopping mall/retail
segmentation,
property sector.
positioning of shopping mall/retail
property sector.
targeting
will
and
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1.5
Scope Of Work
The scopes of work of this project are as follows:
•
Initial review of the current condition of shopping mall/retail property sector and
historical performance of SK’s marketing strategy
•
-
Shopping mall industry review and SK’s business model
-
Snapshot of current SK’s marketing strategy
-
Current SK’s marketing strategy performance
Perform marketing diagnostics to obtain a comprehensive understanding of the
current SK’s marketing strategy and business situation
•
-
Competitors analysis and market survey
-
Review and analysis of current SK’s marketing strategy
Develop new marketing strategy for SK
-
Segmentation, targeting and positioning strategy
-
Branding and communication strategy
-
Traffic generation strategy
-
Tenant mix strategy