Oakbrook Center Presentation-Final

OAKBROOK CENTER ANALYSISBY CONNIE CASTELLUCCI, SCARLETT CHENG, LYNN LIU, ERIC MILLS, GRACE ZHONG

PRODUCT DESCRIPTION: OAKBROOK CENTER

PRODUCT DESCRIPTION• Oakbrook Center is an upscale super-regional shopping

center located near Interstate 88 in Oak Brook, Illinois

• Primarily accessible by driving, 18 miles from Chicago Loop

• Originally opened in 1962, is now the second largest Chicago land shopping center

• 138 store and services• 25 restaurants and eateries

Source: http://www.oakbrookcenter.com/

METHODOLOGY• Segments and targeting were determined using a

combination of intercept conversations and loyalty card surveys

• Mall demographics were determined using a cross analysis of those tactics

CUSTOMER SEGMENTATION

SHOPPER SEGMENTING

Core Consumer* Demographics

• Female

• 25 to 54 years old

• Caucasian

• $35,000 - $150,000 income

*Core Consumers make up 36% of total shopper base

SHOPPER SEGMENTING

Non-Core Consumer Demographics

• Other* Female

• All ages

• Caucasian

• All income levels

• 52% of total shoppers

*Other Female consumers includes all non Core Consumer Women Shoppers

SHOPPER SEGMENTING

Non-Core Consumer Demographics*

• Male

• All ages

• 32% are over $75,000 in income

*12% of total shoppers

SHOPPER SEGMENTING

63% of core shoppers visit at least twice per quarter

28%

23%24%

9%

4%

12%

1

2

3

4

5

6

7

2 X Month1 X Month1-2 QTR2 X Year1 X YearDon't goWeekly

SHOPPER SEGMENTING

65% of core shoppers visit 4 of more stores

2%

33%

65%

0%

1

2

3

4

12 or 34 or moreFriends

SHOPPER SEGMENTING

52% of core shoppers visit for greater than 2 hours

7%

42%

42%

10%

1

2

3

4

1 hour>1 to 2>2 - 4>4

SHOPPER SEGMENTING

57% of core shoppers shop due to deals

12%

12%

58%

18%

1

2

3

4

Knowtrendsdealsfun

TARGET SHOPPER GROUP

TARGET SHOPPER GROUP

Who are the most valuable shoppers?

What made them most valuable?

Find out other potential shoppers.

TARGET SHOPPER GROUPCharacteristics

Variables to identify valuable shopper*:

• Recency of visiting the mall **

• Frequency of visiting the mall

• The amount of money spent in the mall

• Household income level

*: see appendix for analysis process

**:lack of information about visiting recency of each shopper

CUSTOMER VALUE GROUPF-M VALUE

2

3

4

5

6

7

8

0 50 100 150 200 250 300 350

124

203

297

283

182

99

37

Distribution of Customers by F-M Value

Count of Consumers

F-M

Val

ue

CUSTOMER VALUE GROUPPercentage

210%

317%

424%

523%

615%

78%

83%

Percentage of Customer Value Group

TARGET CUSTOMER GROUPHH Income Level

Targeting on HH Income of $100k and over

Reasons:

1. Draw Effectiveness >1.0, attracted by the Mall

2. SPI > 1.0, contributing more to sales

3. Average of total spend per visit: $255, comparing to the average of the whole group at $169

MALL SPEND BY HH INCOME

<$24k $25k-$34k $35k-$49k $50k-$74k $75k-$99k $100k-$149k $150k-$199k $200k+$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$150

$42

$138 $133

$96

$207$197

$445

TARGET SHOPPER GROUP

Other variables relevant to identifying potential customers (not strongly related)

• Number of stores per visit

• Length of visit

• Whether shopping with companions

• Age

• Gender

• Household composition

• Location: distance from the mall

COMMUNICATION STRATEGIES

COMMUNICATION

What message will they be most receptive to?

How often?

By what means?

RECEPTIVE MESSAGE

51.2% I like to find great deals, so I am interested in finding the best sales and discounts.

CLUB BENEFIT

59.2% Information about upcoming sales.

54.9% special promotions only for Club members

34.6% Information about upcoming special events

• Information of sales, discounts and events is more receptive

HOW OFTEN?

Daily12%

A couple of times a week21%

Once a month21%

Never2%

Once a week 44%

• Once a week would be more appropriate.

BY WHAT MEANS?

76.4% don’t like a text message from mall

76.6% never heard of QR code

BY WHAT MEANS?

1.

3.

2.

91.9% daily use

0.6 % don’t use

44.8% daily use

29.5 % don’t use

39.4% daily use

37.3 % don’t use

6.3%

84.1 %

0.4%

93.4 %

20.0%

70.6 %

1.2%

95.1 %

• Email, Facebook and Groupon are the main means.

RECOMMENDATIONS OF SERVICES OFFERED

SHOPPING PACKAGE

• Shopping

• Dinning

• Beauty & Spa

SHOPPING

Fashion Stylist Available for Private Shopping Appointments

• Schedule Online/Phone

• Before & After hours available at selected retailers

• Received Gifts or Discounts

DINING

Special Treatment at Fabulous Restaurants

•  No Waiting In Line

• Chef’s Table Seating

• Private Dinning Spaces Available

BEAUTY & SPA

Special Offers on Spa and Beauty Treatments

• Anthony Vince Nail Spa

• Mario Tricoci Hair Salon & Day Spa

IN STORE EVENTS

Partnerships with at least one key tenant

• Store Events and Specials

• Provided discounts for shoppers to buy products at its stores

THANK YOU!

APPENDIX

Correlation among variablesCorrelations

  numstores numhours spend gender age income

numstores

Pearson Correlation 1 .485** .250** .101** -.169** -.058**

Sig. (2-tailed)   0 0 0 0 0.004

N 2764 2756 2755 2540 2748 2499

numhours

Pearson Correlation .485** 1 .423** .131** -.082** -0.018

Sig. (2-tailed) 0   0 0 0 0.359

N 2756 2762 2753 2540 2745 2497

spend

Pearson Correlation .250** .423** 1 .057** .057** .314**

Sig. (2-tailed) 0 0   0.004 0.003 0

N 2755 2753 2763 2542 2746 2500

gender

Pearson Correlation .101** .131** .057** 1 -.066** 0.018

Sig. (2-tailed) 0 0 0.004   0.001 0.394

N 2540 2540 2542 2557 2541 2317

age

Pearson Correlation -.169** -.082** .057** -.066** 1 .213**

Sig. (2-tailed) 0 0 0.003 0.001   0

N 2748 2745 2746 2541 2763 2502

income

Pearson Correlation -.058** -0.018 .314** 0.018 .213** 1

Sig. (2-tailed) 0.004 0.359 0 0.394 0  

N 2499 2497 2500 2317 2502 2513

**. Correlation is significant at the 0.01 level (2-tailed).

Coefficiency of gender/age/income and spend

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 1103.612 3 367.871 79.142 .000b

Residual 10649.157 2291 4.648    

Total 11752.769 2294      

a. Dependent Variable: spend

b. Predictors: (Constant), income, gender, age

Coefficientsa

Model

Unstandardized CoefficientsStandardized Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 2.783 0.287   9.689 0

gender 0.316 0.128 0.049 2.467 0.014

age 0.012 0.031 0.008 0.378 0.706

income 0.484 0.033 0.3 14.714 0

a. Dependent Variable: spend

TARGET SHOPPER GROUPVARIABLESFrequency recode

How often do you visit Oakbrook Court?

Weekly ----48 days a yearAt least twice a month ----30 days a year Once a month ----12 days a year Once or twice every three months ----6 days a year Twice a year ----2 days a year Once a year ----1 days a year I don't go to Oakbrook Court. ----0 days a year

Monetary recode

When you go to Oakbrook Court, how much do you spend on average?

0 - $25 ----$12.5 one time $25.01 - $50 ----$37.5 one time $50.01 - $75 ----$62.5 one time $75.01 - $100 ----$87.5 one time $100.01 - $125 ----$112.5 one time $125.01 - $150 ----$137.5 one time $150.01 - $175 ----$162.5 one time $175.01 - $200 ----$187.5 one time More than $200 ----$225.5 one time

TARGET SHOPPER GROUP

FM=Frequency*Monetary

Segment 1 Segment 2 Segment 3 Segment 4 Segment 5

FM <$150 $150.1-$1000

$1000.1-$3000

$3000.1-$4500

>$4500.1