One Borneo

Embed Size (px)

Text of One Borneo

  • 7/30/2019 One Borneo


    1.0 Introduction

    One Borneo Leisure & Lifestyle Hypermall is Sabahs largest

    shopping mall. It is comprises of 1.5 million sq ft which is

    approximately three times the size of Centre point shopping centre

    and acquired with more than 600 retail lots. One Borneo is located

    about 7km away from the city centre which is adjacent to University

    Malaysia Sabah (UMS) with close proximity to the state and federal

    administrative centre.

    One Borneo has providing a very wide range of merchandise and

    services that attract thousands of visitors every day. One Borneo

    Hypermall is home to a large collection of restaurants, label

    clothing, department stores, entertainment outlets, appliance stores

    and supermarkets. It also houses 3 hotels, 2 apartment block

    towers, a cinema multiplex, night spots and an upcoming aquarium

    that should be finish in the not too distant future. One Borneo also

    houses 4 hotels, 2 apartment block towers, a cinema multiplex,

    night spots and an upcoming aquarium that should be finish in the

    not too distant future.

    The unique shopping concepts included the Jalan-Jalan street

    bazaar, the Handicraft & Batik Gallery with Cultural Heritage Centre.

    The hypermall will also house One Borneos 36-lane state-of-the-art


  • 7/30/2019 One Borneo


    bowling centre, 10-screen multiplex & KTV lounge, one-stop bridal

    centre, homemaker/children centre, IT/internet centre, DIY stores

    and Autocity.

    2.0 Identifying the Problems

    In every shopping center, it was facing its own problems. The

    problems can be a minor or major form in the operation. Sometime,

    the problems are good to address. Thus, the improvement can be

    made to the current inconvenience and dissatisfaction condition. For

    One Borneo Hypermall too, there are several problems have been

    identify according to the survey and research towards the customers

    that included households and individuals. After the problems had

    been identified and recognized, the best selected strategic and

    improvement needs to implement to overcome the existed


    2.1 Complaints from Customers

    The customers are begun to complain when they needs and

    wants cannot fulfill by the retailers. Sometime they were

    dissatisfaction with the current buying environment when some

    barriers existed. The complaints from customers might arise when


  • 7/30/2019 One Borneo


    the pricing of the merchandise are too costly, the qualities of the

    merchandises are in queries, the quality of service by shuttle bus

    and the insufficient and condition of parking spaces.

    Mostly, the customers of One Borneo Hypermall are comprised

    by the UMS students. The reason is the geographic location has

    encouraged the expenditure in the shopping centre. As we know,

    One Borneo Hypermall was situated near University Malaysia Sabah.

    Thus, the students are easily gone there for their meals or in

    personal purchasing. The outlets in One Borneo Hypermall were

    offered costly merchandises. Since the major customers are

    students, it may be a financial burden to them in buying expensive

    merchandises. The consideration must be taken by the

    management team when selecting the tenants. As well, the income

    level of people in Kota Kinabalu still not very high. They cannot buy

    the luxury merchandise as frequently. Another, some qualities of

    merchandises were under queries because of its low quality in

    performance. Currently, the problem that existed at here was

    transportation where UMS students relied the shuttle bus go to One

    Borneo. The problem arises when the students are confronting with

    the difficulty to get bus because the unpunctual of the shuttle bus

    service. Besides, in this period, the shuttle buses were under repair

    and maintenance. This has caused inconvenience among the


  • 7/30/2019 One Borneo


    students to go there. In some more, the condition and numbers of

    parking spaces also might be a problem in that shopping centre. The

    parking spaces might not enough to support the capacity of the

    excessive cars during the events hold in the shopping centre.

    2.2 Under- performance of the centre or the anchor tenants

    Usually the management of shopping centre will go around

    finding the famous and branded retailers to open stores at there.

    The reason is the retailers may help in attracting crowd to the

    shopping centre. The anchor tenants in One Borneo Hypermall are

    Giant, Parkson and Golden Screen Cinemas (GSC). These three

    major retailers are the strengths of the One Borneos management

    team. They had attracted many customers to go to shopping and

    hang out in shopping centre. In a low period season, the tenants

    may face difficulties and pressure in sales. At that moment, buyers

    less contribute to expenditures. Thus, the events or sales may

    useful to stimulate the customers in buying merchandises.

    2.3 Vacancies and difficulty in filling empty spaces

    Another problem existed in One Borneo Hypermall was the

    vacancies and difficulty in filling empty spaces. As we know, the

    rental for outlet in One Borneo Hypermall was very expensive. It was

    almost RM4000 per month. For those small outlets, their sales may


  • 7/30/2019 One Borneo


    not ideal as be planed. They were faced the problem in their

    financial if their continuity occurred loss. As a result, they may end

    up by closing their shops. Thus, management team needed to

    recognize the vacancies left and continue to find the tenants which

    have interest to open stores. It was a tough work to find the suitable

    tenants because not every tenant was recognized and agreed the

    terms and condition under contract. They maybe have their own

    ideas and thought. So, the management team was encouraged to

    advertise their vacancies in the media press such as newspapers or

    magazines. Besides, the un-strategic location for the shops may

    contribute in difficulty in filling empty spaces. The areas were less

    pass by the customers because the location may not ideal as well. It

    may become a barrier for the tenants to run business.

    2.4 The offering of merchandise other than what is required by

    the target market

    Compared to Centre Point (CP) shopping centre, the choices of

    merchandises in One Borneo Hypermall were limited. In Centre Point

    shopping centre, there were more middle scale outlets than luxury

    outlets in One Borneo. The buyers were affordable to buy

    merchandises from the outlets in Centre Point. There also more

    varieties. The customers might more easily to find and purchase


  • 7/30/2019 One Borneo


    their preference of goods or products compared One Borneo

    merchandises. One Borneo Hypermall not actually was good choice

    in offering the goods and products that really fulfill the needs and

    wants by the target market. For example, the lack of low prices

    merchandises might be a constraint for the customers in buying

    them. For some customers, they were not demanding on high

    quality merchandises. Commonly, they have intention to buy low

    price product rather than its quality.

    2.5 Ineffective Communication

    One of the problems that recognize from the One Borneo

    hypermall is ineffective communication. Communication is effective

    when the message sent by sender decoded rightly by receiver.

    Some of the shops have poor communication. The causes are:

    I. Unclear Message

    For effective communication, messages bring out need to be

    clear. Unclear message will make people misunderstood. In any

    communication both parties are responsible. The sender of the

    message must ensure that the recipient received the message, and

    the recipient should make sure he understood the intended


  • 7/30/2019 One Borneo


    message. Many tenant use banner, flier, and catalogue as a tool of

    communication. For example, Giant use catalogue, the IT shop use

    banner to promote their IT product and some of the optical shop use

    flier to attract customers. Although these are the faster and

    effective ways to bring the message out, but it also cause some

    problem to the consumers. As an example, the messages that

    provide by optical shop in the flier are not clear enough. Inside the

    flier, it only stated frame include lenses are at the price of RM138

    and RM 168 and the Sun glasses are RM98. The messages are

    unclear and will make the customer misunderstood that all optical

    are at the price of RM138, RM168 and all sun glasses are at the

    price of RM98. Besides that, Giant is having a big problem about the

    price tag. The price that stated at the catalogue is discrepancy with

    the price that inside the Giant hypermarket. It might due to

    inefficient price management to update the product prices but it will

    cause inconvenience to a lot of consumers. Some of the consumers

    feel they are cheated by the Giant supermarket and having bad

    impression against Giant.

    II. Message Overload

    Furthermore, message overload is a barrier to successful


  • 7/30/2019 One Borneo


    communication. Message overload is when a person receives too

    many messages at the same time, and the messages are

    complexity. Message overload will affect consumer lost the focus

    point. Besides that, it also will affect the consumer lost the interest

    in seeing the poster or the banner. For example, the banner of

    reducing using plastic bags outside the Parkson department store

    contents too many word. Usually, people will ignore it. Only the

    banner with the picture that has bright color and content less word

    will attract the attention of consumer. If the message is not

    received, there was no point in sending it. So, it is important to have

    the attention of consumers.

    2.6 Tenant mix does not satisfy the needs of customers

    Another problem that faced by One Borneo hypermall is the

    tenant mix does not satisfy the needs of customers. Many tenants

    are closing down for example, Anna Cafe. The main reason that

    Anna Cafe closing down is because the product and services does

    not satisfy the consumer needs. Demand of the shop is low and it

    cannot cover the fixed expenses such as the rental and utility fees.

    The main drink sold at Anna Cafe is coffee. Anna Cafe is facing

    many competitive at One Borneo. Its main competitors are

    Starbucks and Dome. Starbucks and Dome are well known with its


  • 7/30/2019 One Borneo


    coffee products. One of the reasons that Anna Cafe lose up is due to

    the quality of coffee are not high as Starbucks and Dome. Thus,

    Anna Cafe with less competitive advantages absolutely can be

    easily defeated.

    Besides that, recently Canton House, food and beverage anchor

    is also closed down. Its main dishes are Chinese food and

    considered as Non-Halal. Nowadays, consumer tastes have become

    more sophisticated, and the customers desire with the products that

    are fresh, hygienic, safe, competitively priced and in a Muslim

    country, meat products that are Halal, or prepared the Islamic ways.

    This is why Canton House lost a lot of customers especially Malay

    customers, and cannot satisfy most of the customers needs. The

    target markets are become narrowed than other restaurant which is

    provided the Halal food.

    2.7 The centre experiences very strong competition from

    competing/ new centres

    Even One Borneo Hypermall is the 1st and the largest lifestyle

    hypermall in east Malaysia, but it still facing the strong competition

    from competing. For example, Suria Sabah, Centre Point and City

    Mall are all competitors of One Borneo. The most threatening is

    Suria Sabah. Suria Sabah is one of Kota Kinabalu's most popular


  • 7/30/2019 One Borneo


    places for shopping with its prime city centre location on the

    waterfront. Compare to One Borneo, location of Suria Sabah is more

    strategy. This is because Suria Sabah is located at prime city centre.

    It crowded with people. Compare to One Borneo, its location is not

    as strategic as Suria Sabah. One Borneo is located out of the prime

    city that is 7km northwards along the Jalan Sulaman Highway.


    Most of the retail stores of Suria Sabah are local brands. This

    giving the Suria Sabah a unique character and merchandise profile

    that is very different from most shopping complexes that are

    dominated by chain retailers. Suria Sabah has many special

    features. The special features of Suria Sabah include first Golden

    Screen Cinema (GSC) 3D hall for 3D movies. Suria Sabah is the first

    GSC that provided the 3D movie around the Sabah. At that moment,

    it helps Suria Sabah attract many consumers. Besides that, the first

    Metrojaya and The Reject Shop outlet in Sabah at located in Suria

    Sabah. It becomes one of the competitive advantages of Suria

    Sabah. Besides that, it also has large food court with unique sea

    view with other specialty food outlet. The sea view at the food court

    attract many people choose to dining at the food court.


  • 7/30/2019 One Borneo


    For other side, Suria Sabah has over 2000 car park bays with

    car wash. It is very convenience for the visitors. They can easily find

    the parking space and having the car wash services when they are

    shopping at Suria Sabah. Furthermore, Suria Sabah is close to tour

    operators which is Wisma Sabah and it also has wheelchair

    accessible and handicapped friendly toilets. Lastly, Suria Sabah has

    the largest collection of ladies beauty and cosmetics outlets. These

    can attract many visitor included local and foreigners.

    Although Suria Sabah is a new centre, but its unique

    characteristic and strategy location had bring forward the threats

    towards One Borneo. Thus, One Borneo need to have better

    management practices in order to gain the future competitive

    advantages. This can prevent One Borneo from becoming the dead

    mall in the future.

    3.0 Research Objectives

    3.1 Distinguish the existing primary and secondary trade areas

    The primary trading area is the geographical area from which

    the shopping centre derives 50 to 70 percent of its customers. In

    One Borneo Hypermall, the primary trading area could be the Giant

    hypermarket at the ground floor. This is because Giant was the only

    hypermarket in One Borneo. Giant with its nature of the


  • 7/30/2019 One Borneo


    merchandise sold and the assortment offered could attract much

    people to consume at there as well as achieve the high satisfaction

    among customers and fulfill their unique needs. Moreover, Giants

    strategic location (proximity with well known franchise stores KFC,

    McDonald and Pizza Hut) will encourage people to stroll at Giant

    after them having their meals at these franchise stores, especially

    students and families. Besides, KFC, McDonald and Pizza Hut which

    are operate opposite among each others at the corners had shape

    the another trade area which it account for the majority of a

    customers. These three stores have its own competitive advantages

    that could manage to attract much more customers and survive in

    the market. People are more tend to enjoy their meals in these

    stores which their dishes are different from the daily meals. As

    example, students usually will enjoy their meals out of one of these

    three stores when they enjoy their leisure time in One Borneo.

    Besides, these three stores strategic location which is nearest with

    the escalators had contributed to its trade areas. When people come

    down from upstairs, these three stores will be the first sight of them.

    It could attract people to buy the products from these stores.

    The secondary trade areas refer to the geographical area of

    secondary importance which generating about 20 to 30 percent of

    its customers. In One Borneo, the secondary trading area was


  • 7/30/2019 One Borneo


    Golden Screen Cinema (GSC). GSC as one of the anchors which

    located at 4th floor had become the primary entertainment while

    people stroll at there. Most of the UMS students purposely go to One

    Borneo to enjoy their leisure time in GSC in order to release their

    pressures. Moreover, F.O.S outlets nearest by became the place to

    go while people waiting for the movie time. Starbucks was also

    nearby GSC with take only few steps also became the place to go

    before and after the movie start.

    3.2 Establish the socio-economic and demographic profile of the

    customers living within these trade areas

    Socio-economic is the social and economic experiences and

    realities that help mold one's personality, attitudes, and lifestyle.

    The socio-economic for the customers within these trade areas can

    be defined from customers income or wealth. The requirement of

    purchasing power of these trading areas was not such high as luxury

    areas. People can enjoy their ultimate shopping experiences

    throughout these areas. For example, Giant hypermarket was

    offered the lowest prices of its products, thus everyone can

    purchase with fewer consideration.

    Education was one of the socio-economic factors in these

    trading areas. Education level can shape customers views towards


  • 7/30/2019 One Borneo


    retail stores and their buying decision. Customers with higher

    education level often are smarter buyers who are desire for the

    merchandise that could exceed their expectation. They will no

    purchase that particular merchandise from the same stores if its

    merchandise couldnt fulfill their expectation.

    3.3 Establish the shopping patterns of the customers

    The shopping patterns of the customers can determine based

    on the household, leisure and sport. The customer shopping

    patterns can determine via the stages in the buying process. The

    stages in the buying process are need recognition, information

    search, evaluation of alternative, purchasing the merchandise and

    service, and postpurchase evaluation.

    The first stage, motivation that influence customer to go

    shopping can assort into the type of needs, conflicting needs, and

    stimulating need recognition. The type of needs classifying as need

    utilitarian needs and hedonic needs. The objective of consumers

    goes shopping to satisfy utilitarian needs are to accomplish a

    specific task. Hedonic needs are the objective the consumers go

    shopping for pleasure.

    After customer decides a need, they ingress search the

    information about retailers, channels, or products that their needs.


  • 7/30/2019 One Borneo


    The customers can search information to help them do purchase

    decision. Sources of information could be via family, friends,

    neighbours, or ask the sales people, or dealers, or read specialist

    magazines to help with the purchase decision.

    The third stage in buying process is evaluation of alternatives.

    In this stage, the customers need to establish criteria for evaluation,

    features the buyer wants or does not want. The customer may

    decide that the merchandise need to buy based on highest rank of

    products in their mind.

    The next stage of buying process is purchasing the

    merchandise or service. The customers may choosing buying

    alternative includes products, the retail store and method of

    purchase. Then, purchase the merchandise or services that

    customers satisfaction.

    The final stage of buying process is postpurchase evaluation. At

    here, the retailer may know the satisfaction or dissatisfaction of the


    In One Borneo Hypermall, most of the shopper will be

    characterized as purposeful. The shopping patterns of customers in

    One Borneo is depends on the customer purpose. The customer who

    shopping in One Borneo is fulfills their wants, necessity or personal


  • 7/30/2019 One Borneo


    purpose. Today's consumer will practice a more reasoned and

    rational trading down with deal-seeking behaviors like coupons and

    comparison shopping. Trading-down behavior was related to the

    choice of retailer, product, or brand. However, private label brands

    will remain a significant factor due to their increasingly higher

    quality and low cost since retailers don't have to advertise or

    promote them to the same degree as national brands. Research

    findings included in The New Consumer Behavior Paradigm also

    indicate that one-fifth of consumers will continue to forgo buying

    items that seem too expensive, resulting in a contraction for the

    luxury and gourmet foods markets. One Borneo is the luxury

    Hypermall and its luxury merchandises are usually bought by tourist

    rather than local shopper.

    3.4 Identify the image of a centre compared to major competing


    The image of One Borneo Hypermall can be recognizing via

    the reputation and appearance of One Borneo. The reputation of

    One Borneo in Kota Kinabalu is good and attraction. The design of

    One Borneo can attract the local community and tourist comes to

    centre. At One Borneo, there have brand retailer operate. The

    customers may easy find their favorites brand their like in One


  • 7/30/2019 One Borneo


    Borneo. The appearance of One Borneo also one of the images can

    compare to Suria Sabah. One Borneo is the first and largest lifestyle

    Hypermall in East Malaysia. Besides, One Borneo has famous mall

    director that operate in the One Borneo.

    3.5 Identify the strengths and weakness of the centre in

    comparison to other centres

    Strengths Weakness


    Customer loyalty



    In the One Borneo Hypermall, there have several of strengths

    and weakness compare with other centres. The first strength of the

    One Borneo Hypermall is reputation. One Borneo is famous

    Hypermall in Kota Kinabalu because it is the first and largest lifestyle

    hypermall in east Malaysia. One Borneo is the ultimate shopping

    experience for local and foreign tourist alike.

    Customer loyalty also is the strength that having in One Borneo

    compare to other centres. The community of One Borneo has


  • 7/30/2019 One Borneo


    conducted some activities to build loyalty. One Borneo has offered

    the platinum card to the customer who registers as the platinum

    club members. The members who hold this member card can enjoy

    discount and other facilities that provide in the One Borneo.

    One Borneo possesses more entertainment facilities compared

    with other centres. The entertainment facilities having in the centre

    can let the customers ease and enjoyable in the One Borneo. The

    entertainment facilities that located in the One Borneo are bumper

    car, K Box KTV, Golden Screen Cinemas, Pool Zone and etc.

    The only weakness of One Borneo is location. The location of

    the One Borneo is far from the Kota Kinabalu Town. Most residents

    living around centre city are more tend to stroll at nearest shopping

    mall, for instances, Centre Point and Suria Sabah. The customers

    who stroll in One Borneo mostly are residents nearing One Borneo


    3.6 Focus on specific issues like media use and propensity to

    support specific stores

    Specific store that we choose is SASA Beauty Retail. SaSa is

    cosmetics retail which sells over 600 brands, covering over 16,000

    skincare, fragrance, make-up and hair body care products, health

    and beauty supplements under international brands including own-


  • 7/30/2019 One Borneo


    brands and exclusive products. In One Borneo Shopping Centre, the

    store is located at Lot G-226, Ground Floor. The store operation is

    start from 11:00am until 10:00pn on Monday to Friday and 10:00am

    until 10:00pm on Saturday and Sunday.

    SaSa cosmetics in One Borneo Hypermall using media channel

    to market the product and to communicate with their customer. The

    main media use by SaSa Beauty Retail is Personal Selling. Personal

    selling is communication processes in which sales associates help

    customers satisfy their need through face-to-face exchanges of

    information. The salespersons would provide information and

    services to their customer which customer can get information

    about the product before buying process by customer. SaSa use

    sales promotion as media to communicate to customer. Sales

    promotion is special incentives or excitement-building program that

    encourages consumers to purchase a particular product or service.

    SaSa use samples to offer potential customers the opportunity to try

    a product or service before they make a buying decision. Besides,

    their also use coupons to attract customer to come their store. The

    coupons offer a discount on the price of specific items when theyre

    purchased. To advertise the product, SaSa use leaflets and poster.

    Leaflets are distributed to customer whom people pass by SaSa

    store. The leaflets are attractive design and provide information of


  • 7/30/2019 One Borneo


    product while poster hanging on walls which content some new

    product to let the customer knows.

    3.7 Assess its performance and position in the marketplace, and

    prospects for the future. Is it future promising or questionable?

    What does it need to do in the future to provide strong financial

    returns? Why?

    After doing observation regarding market research, our groups

    realized that One Borneo Shopping Centre have ability to assess its

    performance and position in the marketplace. As we know, One

    Borneo is still new in shopping centre marketplace which the One

    Borneo completed constructed in 2008.

    The attractiveness of One Borneo can give comfortable to Kota

    Kinabalu citizens and also give value to Kota Kinabalu City Hall.

    According to Kota Kinabalu population of people, One Borneo will

    provide the catchment for its retail business to public from in and

    around Kota Kinabalu. One Borneo provides 600 retail outlets within

    the building are spread across four floors. One Borneo Hypermall

    shopping centre is the best place for discover seamless shopping

    pleasure with outlets ranging from latest clothes, jewellery, watches,

    accessories, leather and various regional designer brands.

    To assess One Borneo marketplace positioning, One Borneo

    Hyper mall has 1.5 million square fit of shopping, leisure and dining


  • 7/30/2019 One Borneo


    outlets besides containing a deluxe hotel, specialist medical centre

    and a private college which make One Borneo differentiate to others

    shopping centres to help in positioning in marketplace. Besides that,

    there have international and regional chain hotel groups positioned

    at One Borneo such as Novotel Hotel, Courtyard Hotel, Grand

    Borneo Hotel and Tune Hotel which bringing hotels room at One

    Borneo. Besides, the four condominium blocks consist of Tower A, B

    and Price Tower (Tower C) give accommodation to people in or out of

    Kota Kinabalu. The lower ground floor designated the market hall/

    household/ services zone that largest supermarket in Sabah, 84,000

    square feet Giant Supermarket whilst the Golden Screen Cinema

    (GSC) complex with 8 screening halls and 36 lane bowling alley. One

    Borneo also provide amenities such as transportation services by

    taxis and bus shuttle as well as disabled-friendly facilities for those

    visiting the shopping mall, exclusive event and promotional areas

    and platinum lifestyle card. One Borneo Hypermall has a good

    position in the marketplace to attract tourist and citizens in Kota

    Kinabalu to shopping and spending in One Borneo.

    Prospects for future, One Borneo must continue first public

    aquarium and ocean discovery centre called Aquatica in shopping

    mall. The Aquatica can attract the customer in shopping mall

    besides buying things. To build Aquatica is still questionable because


  • 7/30/2019 One Borneo


    the projects expenditure is higher. One Borneo can build

    playgrounds and sport centre which focus on children and teenagers

    as target market. Sport centre such as indoor football can attract

    students from private and public college around One Borneo.

    To provide strong financial returns in the future, One Borneo

    should make sure the retail store lease with the price which retailers

    can afford. In One Borneo Hypermall, there still have store not yet

    leasing to retailers because the price for 900 square feet is RM

    5000. Once retailers revenues unable to cover its fixed expenses, it

    will force the retailers to close down the stores and lease to more

    empty stores in One Bornoe.

    3.8 Identify the following questions:

    a) The target market that you think the shopping centre is

    directing its efforts and why?

    Due to One Borneo was located nearly the University Malaysia

    Sabah, thus, absolutely UMS students will be the primary target

    market. Recently, UMS have expanded its students hostel to the One

    Borneo apartment had increase the market opportunities of

    retailers. One Borneo is home to large collection of restaurants,

    entertainment outlets, departmental stores and supermarkets. As a

    result, Group of students will consume more at One Borneo in term


  • 7/30/2019 One Borneo


    of daily food, entertainment and others. Besides the students, One

    Borneo had also directing its effort toward tourist. One Borneo was

    surrounding by numbers of hotels, such as Novotel Hotel, Grand

    Borneo, Courtyard Hotel and Tune Hotel. Moreover, One Borneo

    consists of numerous of international brand outlets that could

    attract this group of customers. In addition, tourists are more willing

    to purchase luxury merchandises if compared to the local citizens.

    b) How the shopping centre strives to satisfy the needs of the

    target market

    One Borneo Hypermall have offered several merchandises and

    services to fulfil the needs of its target market. Free shuttle bus

    services have been provided for UMS students to solve their

    transportation problem. Moreover, there are also particular shuttle

    buses provides free back and forth service to Warisan Square,

    central of Kota Kinabalu to its hotel customers. Nevertheless, there

    are some restaurant offered with the student prices, for instances,

    Apple, CVC, My Kitchen. It could help students to save their cost and

    satisfy their needs. Besides, some well known international

    franchises such as Starbucks, KFC, McDonald and Pizza Hut became

    the choices of tourists since most of they are still unable to adjust


  • 7/30/2019 One Borneo


    their tastes with the local foods. Many anchor tenants could be

    found in the One Borneo, for instance, Giant Hypermarket had

    provided breadth and depth of merchandises with the lowest prices

    that could fulfil every shopper. Golden Screen Cinema (GSC) became

    the first choice of students during their leisure time. This is because

    GSC has provided the special offer (lower price than usual) to

    students during the weekdays. In addition, GSC was also became

    one of platforms for students to release their pressures. Parkson

    departmental store was another tenant existed in One Borneo.

    Breadth of variety and depth assortment has been provided by

    Parkson, which aims to cover every aspect of needs. Different

    brands of clothes, dresses, shoes, accessories cover all the clothing

    needs from men to women as well as child. Undeniable, shopping

    mall that always satisfy customers needs will build the customers

    loyalty as well as competitive advantages over its competitors.

    c) How the shopping centre builds a long-term advantage over

    the competitors.

    There was highly competition among shopping malls in Kota

    Kinabalu City. To survive in market, One Borneo could put more

    effort to satisfy its major customers UMS students. Better services

    and products should be served to them. The problem that we


  • 7/30/2019 One Borneo


    discussed above should be solved and more types of stores should

    be introduced into One Borneo. For instances, more entertainment

    facilities should be prepared in order to attract these group of

    people to consume in One Borneo, thus increase the profits of

    retailers and reduce the empty spaces too. Besides, One Borneo

    should continue its construction of first public aquarium and ocean

    discovery centre called Aquatica in shopping mall. The Aquatica can

    attract the customer in shopping mall as well as simulate the

    shopping environment. Lastly, more unique stores should be opened

    in term to differentiate One Borneo from other competitors and build

    up its unique image.

    d) Conclude with how effective you think the shopping centre

    strategy is for each tenant.

    The tenant strategy for One Borneo seems more likely

    insufficient since there was number of retail stores closed up time

    by time. This might because the shop rental was high and some

    stores unable cover with its and force to end up their businesses. It

    will lead to more vacancies and fewer choices for customers.

    Moreover, there are less or no renovations towards its shopping

    mall. Renovating is a frequent and planned event to keep the

    tenants happy, the customers coming back, and the property


  • 7/30/2019 One Borneo


    looking good. However, in One Borneo, some broken floor tiles was

    existed until today and no renovation action towards it. When

    customers discover it, it will bring the bad impression towards One


    3.9 Discuss and make a recommendation of competitive

    advantages for the chosen shopping centre.

    One Borneo is the one shopping centre that really popular

    among people at Kota Kinabalu but this is not the only shopping

    centre that have been build in Kota Kinabalu. The others shopping

    mall that can be One Borneo competitor such as Centre Point and

    Suria Sabah. Suria Sabah is the new shopping centre.

    To compete with others shopping centers, One Borneo should

    make an improvement to manage the shopping centers to compete

    with their competitors and make a different. One Borneo can provide

    uniqueness store offering. One Borneo can lease store to the

    retailers which can sell unique product which their competitor have

    not provide uniqueness store. The product provide in the store

    should be current updated with new design and style.

    One Borneo Hypermall should improve the signage and

    graphics because One Borneo still lack in advertising the store

    product and also the event highlight. Signage and graphics can help


  • 7/30/2019 One Borneo


    customers locate specific products and departments store and

    provide product information. Graphics such as photo panels which

    hanging on wall at specific place which customer can see. Signage

    in One Borneo also should be improved. Signage is very important

    to identify the location of store in shopping centers. The sign are

    hung from the ceiling which customer can see.

    Lastly, One Borneo Hypermall also needs to improve their

    website which still lack of information. The website needs to provide

    details information which customer can know each store before they

    come to shopping.

    4.0 Appendixes

    Outlook of One Borneo Hypermall


  • 7/30/2019 One Borneo


    Night view of One Borneo Hypermall


  • 7/30/2019 One Borneo


    Major anchors of One Borneo: Giant as primary trading area

    Primary trading areas: KFC which nearest with Giant


  • 7/30/2019 One Borneo


    Another store contributes to primary trading areas: McDonalds

    Aquatica that still under construction and its empty spaces in front


  • 7/30/2019 One Borneo


    Stores that closed down and lead to vacancy

    Trading areas that with fewer people passed by


  • 7/30/2019 One Borneo


    Situation at car parking area

    SaSa Beauty Retail


  • 7/30/2019 One Borneo


    5.0 Referenes

    1. Levy & Weitz, Retailing Management Eight Edition. Published by

    McGraw-Hill International Edition.

    2. 1 Borneo Hypermall, Retrieved from


    3. Creating a Competitive Advantages, Retrieved from


    4. Tenant Mix Strategy & Mix, Retrieved from

    5. N.Danev (2011), What are socio-economic factors? Retrieved



  • 7/30/2019 One Borneo