Simon Property Group has a lot to explain. The company broke a $25 million campaign last month to brand its 145 malls and forge a bond with the 100 million shoppers who visit them. Most consumers don’t know who runs the local mall, and Simon is the first developer to aggressively brand its real estate.
Themed “Simply Simon,” the broadcast, print, and in-mall campaign positions Simon malls as part of consumers’ lifestyles. Two TV spots play up product selection, value, and entertainment; print ads carry the tagline “We provide the stuff, you provide the life.”
At the same time, Simon launched S, a glossy monthly magazine distributed free in malls. Time Warner Custom Publishing produces S, reprinting stories from Time magazines including People and Sports Illustrated. A customized “Mall Talk” section lists special offers and events in each mall. Time Warner signed a three-year deal to publish the magazine, which may eventually solicit ads.
“No one else has the structure or the programs in place to do this kind of branding,” says vp-corporate marketing Shari Simon.
But the whole effort could mean more to Simon’s tenants and marketing partners like Visa USA and Pepsi-Cola Co. Consumer branding can help Simon’s ambitious plan to make its malls prime promotional real estate for non-retail marketers. Since the August ’97 launch of its marketing arm, Simon Brand Ventures, the company has aggressively courted partners for in-mall promotions, touting its 2.3 billion shopper visits a year. If Simon becomes the only mall brand that consumers recognize, that could be a mighty valuable bargaining chip.
Simon’s latest partner is AT&T, which is swapping long-distance service for MallPerks points. Consumers get MallPerks points when they sign up with AT&T, and can redeem points either to pay the phone bill or buy something at the mall.
In the end, deals like that will win consumers. Simon’s real lure for shoppers may be its five-year-old MallPerks loyalty program. This year, the company will build 50 MallPerks Marketplace service centers, where shoppers can redeem MallPerks points, play Pepsi’s and others’ quarterly promotions, and get deals from mall stores or local partners like movie theaters and restaurants. Marketplace is “the new wave in customer service,” Simon says.
The company will continue to expand MallPerks with more offers and more members (now 2.3 million) via direct-mail and in-mall signage. Simon earmarked about $3 million for signage, including a pledge at all entrances, and posters touting Simon services like MallPerks and its co-branded Mall V.I.P. Visa card.
Simon pooled all its malls’ marketing budgets for ’99 to fund the Simply Simon campaign, which replaces all advertising for individual malls this year. That’s good news for smaller properties that couldn’t afford TV alone, and frees up all mall managers to handle local marketing deals, Simon says. Publicis, Indianapolis, handles the national campaign.
Simon wants its $22 million worth of ads to boost traffic, which pleases retail tenants. As long as Simon delivers on programs like MallPerks, it will please shoppers, too. n
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