...7-ELEVEN HOW TO TRUN THE SITUATION AROUND In April, 2011. Allen Zhang, the 7-eleven’s Chief Operator of Eastern Market in China, was standing in front of the window of his office. He was called into deep thought by the dilemma facing the company. On the video conferencing just held, headquarter in Taiwan was very dissatisfied with the poor performance of the branch office in Shanghai, which runs counter to its expectations. Allen looked at the crowded street. He found that the only 7-eleven convenience store on the street was besieged by two FamilyMart stores that were filled with customers. He couldn’t help wondering: What’s wrong with the company’s strategy that was so successful in such overseas markets as Japan, Taiwan, and US, but failed the competition in Shanghai? What contributes to the competitor’s success? Is it because the voluntary chain style that FmailyMart adopts is superior than the regular chain style that 7-eleven adopts in Shanghai? If 7-eleven were to open its market by changing the regular chain style to voluntary chain style, would it turn the situation around or would it evoke new problems? Obsessed with all of these questions, Allen realized that it is time for some changes for the company to achieve its initial goals and as the big market share as possible in this promising market. CONTEXT THE CVS (CONVENIENT STORE) INDUSTRY The prosperity of the convenient stores is because supermarkets are almost all of large scales and in the suburbs...
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................................................................................................................................... 5 c) Core Competencies and Strategic Advantages ......................................................................... 6 3. Target Market …................................................................................................................................... 6 a) Who is our target market? ….................................................................................................... 6 b) Market Segments …................................................................................................................. 7 c) Demographics …...................................................................................................................... 7 4. Marketing Strategies …........................................................................................................................ a) Product...
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...7 – Eleven | | External analysisTeam members: Number of characters (including spaces, footnotes, end notes and text boxes): _22,999_Signatures of all the participating group/team members:_____________________________ __________________________________________________________ __________________________________________________________ ____________________________ | | Project no.: 1 Class and group number: Table of Contents Introduction 2 INTRODUCING 7-ELEVEN 3 Marketing mix 3 Product 3 Place 4 Price & Promotion 4 People 4 Process 4 Physical environment 4 Mission 5 Vision 5 Values 5 Objectives 6 Macro environment – PESTLE analysis 6 Political 7 Economical 7 Socio cultural 7 Technological 7 Environmental 8 Legal 8 Porters five forces analysis 8 Competitive analysis 11 Conclusion 12 List of sources: 13 Introduction The retail industry in Denmark had a very good performance in 2012, after continued stagnation over the review period. In general, the retail industry is sensitive to any economic fluctuations and therefore it was very much affected by the financial crisis which occurred 3 years ago. The crisis “shattered consumer confidence dragging out through 2009-2010.” Last year, in 2012, the reduction in unemployment, growth in incomes and prospects of economic recovery all “contributed to growing value sales in the majority of retail channels. “ Despite the growth...
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...and has no time to go to supermarket everyday and that triggers them to approach the convenient store. With many outlets and easy to access 24/7, 7-Eleven welcomes every customer to get their daily needs. We are providing groceries, snack foods, candies, instant foods, drinks, reading materials, and also services such as prepaid reload and ATM service where customers can fulfill their daily needs even though they don’t have time to shop. All of our 1,497 stores are open 24 hours everyday out of 7 days in a week to assure that customers can get anything they need anytime and anywhere. We create a simple and convenient as an adjustment toward people’s lifestyle, which is very mobile and active. With our motto, 7-Eleven will Always There For You. Company Description History Founded in 1927, 7-Eleven is known as The Southland Ice Company in Dallas, Texas whom the founder is J. C. Thompson. It was started as an ice vendor which eventually began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. The idea managed to satisfy the customer and also increased sales of the company. (7-Eleven Malaysia Sdn. Bhd., 2010) The first company’s convenient outlets were known as Tote’m stores which named since customers ‘toted’ away their purchases. It became 7-Eleven when the stores extended its business hours from 7 a.m. until 11 p.m. and open seven days a week. The company’s corporate name was changed from The Southland Corporation to...
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...1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned? 7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality. An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative...
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...Cornela Maria Rampengan 7- Eleven in Taiwan 7-Eleven Inc. was the world’s largest operator, franchisor and licensor of convenience stores, with annual sales of more than $ 62 billion. Its company become a pioneer the concept of convenience stores in the US, where it had 7.200 stores. This concept was also expanded to several countries, which are North America, Europe, and Asia and the largest store located in Asia. 7- Eleven was founded in 1927 as the Southland Ice Company in Dallas, Texas. It started by selling ice blocks and the first stores were known as “ Tote’m stores because customers “ toted” away the ice blocks. Tote’m changed its name to 7-Eleven in 1946, when the stores were open from 7 A.M. to 11 P.M. daily and during 1950s, 7-Eleven started moving beyond the Dallas market into other regions of Texas and also into Florida and Washington DC. By time being, they stay open 24 hours started by accident in 1962, at a store in Austin, Texas located close to the university campus. Mission of 7-Eleven : “ Meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high quality products and services at everyday prices, speedy transactions and a clean, friendly shopping environment.” The concept of convenience stores that developed by 7-eleven was shaping the way American shopped, which is Americans shopped at big box stores and supermarkets for all their weekly or monthly supplies. Basically, three distinctive features of the American...
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...7-Eleven Inc is the operator, franchisor and licensor of convenience stores. As an American company, it expanded the global market quickly and successfully, especially in Taiwan. Marketing is key to 7- Eleven’s success. In learning its global corporation’s marketing mix, I will mainly focus on following four parts. First, the company’s marketing strategy in the united state will be discussed. And then 7- Eleven’s market entry strategy in Taiwan will be focused on. Thirdly, marketing mix about 7-Eleven Taiwan will be analyzed deeply and critically. Last, some minor suggestion will be given to make 7-Elevendeveloped better in the further. The marketing strategy in the United States is innovative and unique. A tits initial stage, the decisive factors for this company’s success are that7-Eleven launched an innovative store and service in the United States and then entered into this “Blue Ocean”. As we can see, in 1940s, the concept of convenience store was challenging because shopping in convenience store is new and unfamiliar consumer behaviour for American people. As a store, it sells convenient service more than its product. So this is an innovative marketing segmentation. Moreover, the convenience store can meet the unsatisfied demand in American market. At the second stage, when the store expanded over its original market into other districts in America, the company took the standardization of business format, including the logo, location, store’s layout and merchandising...
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...7-Eleven in Taiwan: Adaptation of convenient stores to new market environments – CASE – 1. How has the convenience-store concept evolved in the United States? The convenience store concept began when an enterprising employee of one of Tote’ms stores (now 7-Eleven), began offering milk, bread and eggs on Sundays. Customers found the service very convenient, thus the stores started opening for extended hours (from 7 am to 11pm) and therefore the name changed to 7-Eleven. In 1962, the stores started opening 24 hours 7 days a week, and this became increasingly popular due to the new working schedules of Americans. More than 10 million people in the U.S. were awake at 3 am, 7 million of whom were employed in some kind of work. This new American work style needed exactly what 7-Eleven was offering: a convenient store open at all times, offering fresh-high quality products and services at everyday fair prices, speedy transactions and a clean environment. 2. Is the concept universal across countries, including Taiwan? The concept of convenience stores follows similar lines in different countries outside the United States. In 1969, 7-Eleven opened its first international store and from them on, the company followed a successful global expansion that seemed to follow positive trends despite the local competition. Wherever a franchisee opened a 7-Eleven store, they had to follow some norms that the Americans found to be very important in representing its brand like the logo...
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...Franchise Informational Brochure Process and Basic Information Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. REVISED 10/12 Table of Contents Introduction Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is franchising with 7-Eleven all about and how do I get started? 2 Financial Preview of the 7-Eleven Franchise System . . . . . . . . . . . . 3 What am I financially responsible for as a Franchisee? Franchisee Qualification Process at a Glance . . . . . . . . . . . . . . . . . . 6 What does the qualification process entail? Franchisee Basic Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What are the basic qualifications to become a Franchisee? 7 Franchisee Experience Requirements . . . . . . . . . . . . . . . . . . . . . . . . What are the basic experience qualifications to become a Franchisee? 8 Franchisee Financial Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 9 What are the basic financial qualifications to become a Franchisee? Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a franchise...
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...Netherlands. In regards to pharmaceuticals, they are not as prominently used as they are in the US, however the need for general over-the-counter medications are still there. Products like Paracetamol, Advil and Condoms are commonly bought regularly by the Dutch consumer. Therefore, the general pharmacy needs will be sold alongside general health care products like tooth-paste, deodorant, tooth brushes, shampoo and conditioner etc. This assortment of merchandise meets the needs of the average Dutch consumer on a somewhat daily bases. The combination of food, snacks and general health care is rare to find in the Netherlands, giving us a competitive edge. Dutch people are known to be very simplistic, meaning it is important for the 7-Eleven to be quick, easy and necessary for the locals . Dutch...
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...SEVEN-ELEVEN JAPAN CO. CASE ANALYSIS What is the future outlook for Seven Eleven Stores in USA? Seven-Eleven is part of an international chain of convenient stores. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. The Seven-Eleven business model consists of five key elements: * A differentiated merchandising strategy; * Utilization of 7-Eleven’s retail information system & Managed distribution; * Providing a convenient shopping environment; and * A unique franchise model. Let us have a brief look over 7-Eleven stores in US and Japan: Seven-Eleven Japan: * High density market presence with 50-60 stores supported by distribution centre. * Limited geographical presence * Emphasized regional merchandizing * Processed and fast foods contributed to most of its sales * Products like food and beverages, magazines and consumer items such as soaps and detergents * Services offered like payment of electricity bills, telephone, gas bills, meal delivery services, 7 dream e-commerce, electronic money offering and many * Advanced information technology helped store to analyse store data every day morning and helps in having valuable shelf life * Information system installed in every outlet and linked to HQ, Suppliers and 7-eleven distribution centres. Uses ISDN to collect, process and feedback POS data quickly * Delivery frequency...
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...1 i CASE STUDY ~ SEVEN-ELEVEN JAPAN CO. Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing SevenEleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2003. During that period, the number of stores increased from 2,299 to 10,303; annual sales increased from 386 billion to 2,343 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company's return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 3.6 billion that year, averaging almost 30 visits to a SevenEleven annually for every person in Japan. COMPANY HISTORY AND PROFILE Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World . War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company. After a trip to the United States in 1961, Ito became convinced that superstores...
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...SWOT OF 7-ELEVEN 7-Eleven is part of an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. Strengths* Real estate availability* Localized assortment* Convenience* High margins* Franchise model allows for faster expansion* Relatively standardized stores allow for more optimized operations | Weaknesses* High margins/prices* Limited assortment offering* Not perceived as a place to buy a complete meal* Not a first choice destination for shoppers* High turnover of staff | Opportunities* Fresh food offerings* Increase share of meals (i.e., breakfast, lunch, dinner, snacks)* Private label development | Threats* C-store competition and other small-box retailers (i.e., Fresh & Easy, Marketside)* QSR or similar companies (quick service restaurants); Starbucks, McDonald's, etc.* Higher shrinkage on fresh food could potentially impact margins | 7-Eleven successful in every countries because the company has earned its name being the largest in dealing with convenience store regarding franchising and licensing. Additionally, the stores of the company are being operated almost in 18 countries and spread is organized according to per capita basis in these countries. The store chains are covering all the leading countries like United States, Japan, Canada, Hongkong, Thailand and Malaysia. Besides that, 7-Eleven provide a complete range of product to the conscious customers facing time constraints...
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...pursue an opportunity and to make a profit (Scarborough, 2012). 7-Eleven is a very successful brand and franchise that is known worldwide. As a frequent patron of this established, an opportunity has been identified to directly compete with 7-Eleven. As a competitor in the convenience store market the establishment would be called G’s Stop N’ Go. As a direct competitor, research is necessary to understand the strengths and weaknesses of 7-Eleven to be able to compete and make effective decisions. From state to state and city to city 7-Eleven’s can be found everywhere are very visible and known. But based on the companies SWOT analysis a weakness that has been identified was the hacking of ATM machines that negatively impacted consumers’ loyalty (7-Eleven, Inc., 2013). FBI has investigated the case and stated that a Citibank server that processes ATM withdrawals at 7-Eleven convenience stores had been breached. ATMs hackings at 7-Eleven stores reflects the company's weak application security system (7-Eleven, Inc., 2013). To take advantage of this weakness, G’s Stop N’ Go would have industry proven application security system that are secure and up-to-date. That way customers can make purchases and use the ATM to make transaction without fear of hacking. Next G’s Stop N’ Go must have a wide selection of products at different price points to serve a wide range of customers. Just like how a consumer can go into an 7-Eleven and make a quick purchase of what he or she is looking for...
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...Seven-Eleven Japan1 Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing 7-Eleven in the United States. On September 1, 2005, Seven & I Holdings Co., Ltd., was established as the holding company for Seven-Eleven Japan, Ito-Yokado, and Denny’s Japan. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2007. During that period, the number of stores increased from 2,299 to 12,034, annual sales increased from 386 billion to 2,574 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company’s return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan’s largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 4.1 billion in 2007, averaging almost 35 visits to a Seven-Eleven annually for every person in Japan. Company History and Profile Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company...
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