PART A: Commercial Sector Details

1. Chandigarh City Profile

1.1 Location :

Chandigarh is located near the foothills of the Shivalik ranges of the Himalayas in Northwest India. It covers an area of approximately 114 sq kms and shares its borders with the states of Haryana in the south and Punjab in the north. The exact cartographic coordinates of Chandigarh are 30.74° N 76.79° E. The surrounding districts are of Mohali and Ropar in Punjab and Panchkula in Haryana. The boundary of the state of Himachal Pradesh is not too far from the north of Chandigarh.

1.2 Connectivity :

Chandigarh is very well connected to the state of Punjab, Haryana, and Himachal Pradesh. The city is directly connected to Delhi by National highway 22, which connects it with Shimla too. NH 21 and NH 64 connect Chandigarh with the state of Punjab. Chandigarh also acts as a gateway to many tourism and pilgrimage centers in the neighboring states of Himachal Pradesh, Jammu & Kashmir, Punjab and Haryana.

Map 1: Regional Connectivity Map Chandigarh


  By Road Transport :
 
Several State road transport corporations connect Chandigarh with major cities and towns of the neighboring States, Punjab, Haryana & Himachal Pradesh. The bus stand is in the center of the city (sector 17).

By Train :
 

Chandigarh is linked with its principal gateway city, Delhi. Chandigarh railway station is 8km from the city center in sector 17. Other important and long distance trains are also connected from various parts of the country.

By Air :
 

Indian Airlines, Jet Airways, Jagsons, Raj Air are the major airlines, which serve daily flights to the city. The airport is 11 kms from downtown. Taxis are available for airport transfer.

Map 2: Master Plan - Chandigarh


1.3 Master Plan Chandigarh :

The city center (Sector 17) is the heart of Chandigarh activities.It comprises the Inter- State Bus Terminus, Parade Ground, District Courts, etc. on one hand, and vast business and shopping center on the other. The 4-storey concrete buildings house banks and offices above and showrooms/shops at the ground level with wide pedestrian concourses. The Neelam piazza in the center has fountains with light and water features. A proposal to set up an eleven storey building in Sector 17 is in the offing. Sector 34 is another newly developed commercial sector.
Real estate in the study region largely has been governed by the Development Autdorities for a long period of time and the role of private developers has been marginal in the study region. Chandigarh Administration, HUDA & PUDA are the major developers involved in real estate development. Although this kind of model has ensured the lesser investment risks for individual small time investors but has slowed down the process of development and lesser options available for the buyers. As per the Chandigarh administration, Chandigarh has been divided into three phases, as per its developmental activities i.e. Phase I (Sector 1-30), Phase II (Sector 31-47), Phase III (Sector 48-56). But as per the plot area and character of the city has been divided into following ones.

Map 3: Pattern of Urban growth




























Demographic & Socio Economic Profile

2.1 Demographic Profile :

Chandigarh was planned for a population of half-a-million.In Phase I, 36 sq kms of land was acquired by the city administration for construction of 30 sectors. Land for seventeen additional sectors (Sector 31 to 47) was acquired and developed during the second phase to cater for a population of 3,50,000. The predominance of ¾ storey apartments in the second phase provide for higher population dimension. However, Chandigarh has now grown beyond its planned capacity. Hence, development in the third phase has started in sectors 48 and beyond. The Union Territory of Chandigarh has a total area of 114 sq. kms and has witnessed decadal population growtd (1991-2001) of 44.33%. It had a population of 8,08,515 in the last census (2001). By 2021 tde population of Chandigarh is projected to be around 19.5 lakhs (at current rate of growtd), which is approx. four times tde planned capacity of the city.

2.2 Socio-Economic Profile :

The resident population of the city has a relatively higher level of high-income group and medium income group as compared to the median city in India. Development Profile of City.

2.3 Strategic Important Zones & Emerging Growth Corridors :

Real estate in the region largely has been governed by the Development Autdorities for a long period of time and the role of private developers has been marginal in the study region. Chandigarh Administration, HUDA & PUDA are tde major developers involved in real estate development in the region (HUDA in Haryana and PUDA in Punjab). Although this kind of model has ensured lesser investment risks for individual small time investors, it has slowed down the process of development and lesser options available for the buyers. Chandigarh city, with a strong economic base and a considerable number of upper middle and high-income groups of population, offers wonderful propensity to the prospective national and international investors. The advantages that Chandigarh Offers over other major cities of the region are:

Geographically, the city is located at the foothills of Shivalik, so it enjoys good regional linkages and connectivity with important cities of Punjab, Haryana, Himachal and also well connected with Delhi. This is one of the biggest reasons to invest in the city.
Chandigarh is fast becoming an IT hub, which attracts the population and has become a reason for the investment driven market.
Chandigarh has a sound environment as far as law and order is concerned.
The city is prosperous and its people have very high paying capacity and hence can support high-end retail and entertainment activities. This can be concluded on the basis of the fact that Chandigarh has the highest per capita income in India.

Map 4: Map showing major Growth Corridors of the City




3. Retail Sector Overview :
Chandigarh and its surrounding cities (includes Mohali, Panchkula, Mani Majra, Kharar, Zirakpur and Dera Bassi) are prime targets for various developers for the development of retail and entertainment projects. Since the city mostly accommodates the higher income group population, it seems more feasible to develop quality retail and entertainment destinations in and around the city. At present, all the retail activities in Chandigarh, Panchkula and Mohali exist in the form of booths, bay shops, double story shops and SCO’s and SCF’s located in designated commercial areas and at three levels viz. Community Shopping Center at neighborhood level, Sector level markets and City Center Market that caters to the needs of city level shopping needs. Sector 17 market in Chandigarh and Dhillon Fun Republic in Mani Majra are the only operational destination points for the visitors and buyers.

Map 5: Map showing High Street Retail Area in Chandigarh region
























3.1 High Street Retail Zones :

Chandigarh has always been “The best choice” for the shoppers from Punjab, Haryana and Himachal Pradesh, which comprise of a catchment population with high disposable incomes. This has fuelled the demand of retail spaces in this region. The prime retail areas can be classified as North, Central, South & East.

Table 1: Retail Zones










3.2 Organized Retail Scenario :

With the increasing demand for organized retail markets of international standard, various theatres and cinema halls in the city are transforming to multiplexes, shopping centers and entertainment plazas. Jagat theatre in Sector 17 has recently been developed on the similar lines, where the TDI Group has acquired the cinema plot for the development of TDI multiplex, with a total built up area of approx 85,000 sq feet with Fun Republic as the multiplex operator. It has occupied almost half of the total built up area. Besides 4 screens, the shopping mall also has almost 70 shops and commercial establishments. The leisure area would have food courts and games for the entertainment of the visitors.

Table 2: Location of Organized retails


Shopping Malls in Chandigarh
1.
Centra Mall, Phase-I, Industrial Area Chandigarh
Under Construction
2.
City Emporium, Phase-I, Industrial Area Chandigarh
Under Construction
3.
TDI Mall, Sec-17, Chandigarh
Under Construction
4.
Shopping Mall in K.C. Theatre
Under Construction
5.
DLF Chandigarh Infocity Mall, IT Park
Under Construction

4. Case Study: DLF City Center :
DLF's City Centre retail-cum-entertainment complex is located in close proximity to the Chandigarh Infocity Park, Rajeev Gandhi Technology Park and the residential and recreational area of Mani Majra and Panchkula.

Map 6: Location Map of DLF City Center


















4.1 Location :
Chandigarh Technology Park, Kishangarh – near the City Railway Station, at the footdills of the Shivalik Hills

4.2 Area :
190,000 square feet

4.3 Accessibility :
Close to Sector 26 and 28, it is a 15 to 20 minutes drive from Sector 17 and 21 – the retail hub of Chandigarh

4.4 Connectivity : (approximately)
247 kms from Delhi
99 kms from Ludhiana
234 kms from Amritsar
220 kms from Shimla

4.5 Components :
Retail Arcade, Cafes, Food Court and Multiplex



 4.6 Catchments :
Sector 17, 21, 26 &28 of Chandigarh and satellite towns of Mani Majara and Panchkula.

4.7 Number of Floors :
G + 2

4.8 Parking :
220 (approximately)

4.9 Shop Sizes :

The Shop Sizes range from 572 square feet to 3,655 square feet.

4.10 Salient Features of tde Mall :

 Elegant front elevation.
 34 feet wide atrium.
 3 screen multiplex and a multi-cuisine Food Court.
 24 hours CCTV security surveillance.
 Approximately 18 lakhs sq feet of IT campus with companies like Infosys, IBM, HP, Virsa Systems, Onicra, Winshuttle, Net Solution, Outerbay, Taurus, Q A Infotech, Esys, ICICI Prudential, Airtel and Mahindra Tech.

4.11 Retail Summary :

Retail Summary for DLF City Center
Particulars

Area (SFT)
Units
Total BUA (SFT)
Super Area (SFT)
Lower Ground Floor
       

Bank Branches

1,500

8

12,000

20,040
Total Lower Ground
 Floor
 

8

12,000

20,040
Ground Floor
       

Anchor 1

10,000

1

10,000

12,500

Shops

800

15

12,000

20,040

Bigger Shops

1,500

10

15,000

25,050

Total Ground Floor
 

26

37,000

57,590
First Floor
       

Anchor 1

15,000

1

15,000

18,750

Shops

900

15

13,500

22,545

Bigger Shops

1,200

8

9,600

16,032

Total First Floor
 

24

38,100

18,750
Second Floor
       

Multiplex Lobby /Audi

6,000

1

6,000

7,500

Small shops

700

15

10,500

17,535

Small shops

1,000

6

6,000

10,020

Restaurants

1,000

6

6,000

10,020

Wet shop options

1,200

4

4,800

8,016

Total second Floor
 

32
 

53,091
Third Floor
       

Multiplex (3 screens)

18,000

1

18,000

22,500

Food Court

15,000

1

15,000

18,750

Total Third Floor
 

2

33,000

41,250

TOTAL
 

92

120,100

190,721

4.12 Floor Plans :

Map 8: Ground Floor Plan



Map 9: First Floor Plan



Map10: Second Floor Plan


 

PART B: Marketing Strategy

1. Introduction :

A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy.
A strategy is different from a tactic. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results.

A good marketing strategy should integrate an organisation's marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed. This allows the organization to carry out its mission effectively and efficiently.

2. Retail Strategy :

2.1 Retail Development Initiatives :

Redefine traditional shopping by offering leisure destinations for the family.
Introduce new retail brands for greater customer selection and satisfaction.
Partnering with top international and national brands, to create destination shopping centers.
Implementing companionship leasing to facilitate convenient retail store expansion networks witdin Indiabulls shopping centers.

2.2 Defining Trade Area :

Defining a Trade Area for a site is critical, as the Trade Area highlights the potential market for a specific site.
The concept of a trade area is to highlight the area from where visitors who make the great majority of sales at a given site reside.

Factors affecting the trade area size include

Location of competition
Travel times
Physical boundaries
Psychological boundaries
Once the trade area has been created the task of determining the market sophistication of trade area residents can begin.

2.3 Determining Market Sophistication :

Once the above mentioned market analysis has been completed the market sophistication can be determined through a comparative analysis.
The subject market could be compared to otder markets where a track record of retail success has been established.
If no comparison is possible the level of market sophistication can be determined though an analysis of the available data gatdered.
Through the market data gatdered, create a profile of the average consumer from this market and design the mall based on this consumer profile.

The average consumer profile should include :

Level of employment
Family size.
Entertainment
Vehicle
Disposable income
Preferred shopping habits
Preferred brands


Through the definition of the average consumer, it is possible to create a range of the expenditure potential of the market area.


2.4 Reasons for most visited shopping place

Base: All Respondents
908
Good quality/ guaranteed products
36
Reasonable price
29
Get fresh items
24
More variety
23
Located near by
11
Cleanliness I good
10
Home delivery is given
10
Good service
10
Good behaviour of seller/ staff
10
Available all items at one place
8
Like to go there
6
Gives quick Service
5
We get things of our preference
5
Tasty food
4
Going tdere from many years
4
Get all types of household items
4

2.5 Market Sophistication - Defined :


HIGH 












LOW 
 
Increased Disposable Income witdin tde Trade Area
 
Presence of International Quality & Format Malls
 
Strong Economic Base witd Growtd Potential







 
Limited Supply of Modern Floorspace in Market
 
Site is Located in Distressed Area of City
 
3rd Tier City

2.5 Catchment Area Consumer Profile :


S
O
P
H
I
S
T
I
C
A
T
I
O
N

HIGH 












LOW 

 
Increased Car Ownership
 
Brand Savvy
 
Influenced by Shopping Experience










 
Value Oriented Consumer
 
Majority of shopping occurs at traditional retail places
 
The mall is seen to be new and subsequently intrigued by such tdings as entertainment.

3. Case Study: Mall cum Multiplex Site in Chandigarh


3.1 Location : The site is located on ‘Plot Nos. 29 & 29A, Industrial Area Phase–I, Chandigarh’, towards South West of city on an 80 feet wide road connecting Madhya Marg.



3.2 Present Land Use/Site Situation :
Office and shed of a Hume pipe industry are present on site, which would be demolished before the possession is taken.
The site has a boundary wall, which extends at the rear side to encroach approximately a 100 feet wide strip of land, which was demarcated as railway siding under some scheme.
A High Tension Line of running load 170 amps (11kw) crosses through this encroached area.
Some transmission lines for supply to the present industry are supported on two electric poles within site.

3.3 Immediate Surroundings :
Front-80’ Wide Road
Left-Bhushan Steel Industry
Right-A Green Belt
Rear-Office and Sub-Station of Bhakra-Beas Management Board (BBMB)

3.4 Distance from Commuting Points : Inter State Bus Terminal (Sector 17) – 4.5 KmsRailway Station – 1KmAirport –5 Kms.

3.5 Site Features :

Shape & Dimensions : The site is rectilinear in shape with the front edge tapered and the dimensions as shown in illustration.
Terrain : The site has a plain terrain and is about 2’-3’ below the road level. It does not have any particular slope. Also, there are no elevations or depressions on the site.



Total FSI Area : 24558.16 X 2=49116.32 Sq Yards OR 41067.15Sq Meters.

Permissible Height : 30 meters.

Permissible Ground Coverage : 50%

Ground Coverage Achieved : (50/100) X 24558.16 = 12279.08 Sq Yds.

Setbacks :

Front – 100’ or 30.48 Meters.
Side – 40’ or 12.19 Meters.
Rear – 30’ or 9.14 Meters.

Parking requirement: FSI Area =41067.15Sq Meters.
ECS Requirement 41067.15/ 50 = 832.143 ? 833 ECS.
Space Requirement 833 X 27.87 = 23215.71 Sq Mts.

3.6 Strategy for Commercial Property in Chandigarh :

3.6.1 Chandigarh Market Overview

Site Size: 6 Acres
Market Sophistication: High
Prototype: City CentreA2
Potential Opening Date:Q-1 2011

3.6.2 Chandigarh Market Overview

chandigarh



3.6.3 Chandigarh Tenant Mix by Level witd Unit Count  (Sqft)