MARKETING OF MRT COMMERCIAL PREMISES

Abstract

The popularity of the tender system as an approach to marketing commercial development owned by public authorities is due to the need for such organisations to ensure that all deals are conducted in a fair manner. In this respect, MRTC is no different from other statutory boards. However, unlike other public authorities which usually have in-house marketing teams, the MRTC appointed a private marketing consultancy firm to undertake the task of marketing and leasing its commercial premises. The challenge in marketing MRT shops revolves around promoting a new concept of shopping i.e., suscipient shopping to prospective tenants and the general public. Besides the inherent weaknesses of the tender system, there were other constraints faced by the marketeer in meeting this challenge. The most serious constraints were the two policies imposed by MRTC, namely, the policy of keeping a "low profile" and that of avoiding competition. The over-capacity of retail space in the market coupled with other restrictions arising from ill-considered design of the "product" and non-availability of utilities such as gas and water for the shops further impedes the marketeer's task. Therefore, it would be interesting to evaluate the performance of the appointed marketing consultant under these constraints. Another issue raised in this study is the conflict between the presumed intentions of the policy of keeping a low profile and the form of marketing adopted i.e. public tender. The significance of the second policy of avoiding competition was also examined. The study concluded with the suggestion that greater flexibility can be introduced into the marketing process of the shop units in the remaining stations. This can be achieved without compromising on equity which is a critical consideration for MRTC. The need for flexibility is particularly important at the tenant selection stage. Negotiations with prospective tenants (who failed to secure a unit after the submission of bids) in order to offer them units which are in lower demand is a preferred alternative to etendering. Similarly, allocating units that are not taken up in the first round of tender exercise should be done on a first-come-first-served basis to achieve full occupancy rate. To ensure a better choice of prospective tenants, a prequalification exercise should be carried out at the initial stage of the tender exercise.