Algorithm For Marketing Feasibility Assessment Of Retail Property Concept

Abstract

Nowadays, going to malls is one of the entertainment types. Even though the main goal of shopping and recreation centers is obtaining commercial benefits for owners and tenants, they also create social interaction spaces. Besides, shopping and recreation centers provide jobs, diversity of people's leisure, and produce a flow of budget incomes. The competitive edge of malls reduces because their design and construction often lack a unique concept. The successful operation of such facilities requires them to include shopping units as well as recreation and leisure activities: billiards, fitness-centers, spas, spaces for kids, cinemas, catering services, etc. The concept of the mall must appear at the design stage, and all of its components must have some value for consumers. The concept is a system of marketing, architectural, finance, social, and psychological solutions that determine the future image of the facility and the order of its construction, market launch, and subsequent operation, development, and promotion. The mall concept is determined by the market segment and consumer groups. This research work reviews the algorithm for developing a marketing concept. The concept comprises a descriptive component that consists of market analysis, territory description, floor area calculations, and mall unit arrangement; the construction component that determines the works to be performed, cost estimates; and the economic component with the investment requirement calculations, payback times, as well as income and expenditure items. The marketing concept must be developed in detail to assess the risks and plan the financial success of the property.