Contents 1. 7- Eleven Background 2. 7- Eleven Retail Offering 3. 7- Eleven Target Market 4.

7 -Eleven Retail Market Strategy (a) Differentiated merchandising (b) Retail Information System (c) Managed Distribution (d) Providing a convenient shopping environment

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5. 7-Eleven Site Selection Issues and Strategy 6. 7-Eleven Merchandise Selection and display Strategies 7. 7-Eleven Store Layout and Design Strategies 8. 7-ElevenStrategies to Enhance Customer Satisfaction and Loyalty 9. 7-Eleven Future Strategies

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7-Eleven stores also provide a variety of services. 7-Eleven in Malaysia was incorporated on June 4. 7. Operating primarily as a franchise. it is the largest chain store with more than 38. Malaysian 7-Elevens are owned by 7-Eleven Malaysia Sdn. the United States.Eleven Retail Offering : 7-Eleven focuses on meeting the needs of convenience oriented customers by providing a broad selection of fresh.Seven Eleven 7 -11 7. from photo copying to fax and even courier services. of Japan. speedy transactions and a clean. high quality products and services at everyday fair prices. Ltd.500 products. Taiwan. Bhd. Canada. including its proprietary Slurpee and Big Gulp. Each of 7-Eleven stores carries over 2. safe and friendly shopping environment.Eleven Background : 7-Eleven is part of an international chain of convenience stores. surpassing the previous record-holder McDonald¶s Corporation in 2007 by approximately 1. Malaysia and Thailand. which in turn is owned by Seven & I Holdings Co. with its largest markets being Japan. Hong Kong. 7Eleven still have on-going plans to expand its network of stores nationwide to reach out to more customers while continuously introducing new and innovative products and services to meet customer¶s requirements.000 outlets operating around the world.000 retail stores. household needs to mobile phone reload cards. 2 . operating under SevenEleven Japan Co. 1984 by the Berjaya Group Berhad . which now operates 1.067 stores nationwide (as of Jan 2010).000 stores. 7-Eleven offers diversified products and merchandise ranging from fresh food. Its stores are located in eighteen countries. the Philippines. With over 1.

The time traveled to a 7-Eleven store is 10 minutes or less for 76 percent of customers. with stores and products designed to meet the needs of busy shoppers with fair prices and speedy transactions in a clean. 7.Eleven Target Market : 7-Eleven target consumers ages betwwen13 to 24 because this age group is among the chain's most frequent users. In addition to its own branded products and other nationally known brands. The distance from a customer¶s residence to the 7-Eleven store visited is under 10 miles for 84 percent of customers. and lottery tickets in states where they are legal.7. A majority of customers (54%) are unmarried. as well as automated teller machines. clocking 20 visits per month to their local 7-Eleven.Eleven Retail Market Strategy : For 7-Eleven. 54 percent fall into the 25 to 44 age group. each 7-Eleven outlet offers a variety of convenient services based on the individual needs of the neighbourhood in which it is located. Such services include the sale of money orders.000 and RM60.000. Almost 8 in 10 (78%) 7-Eleven store trip visits have a customer¶s residence as the origin or destination. and friendly shopping environment. long distance phone cards. Almost three-quarters (72%) of 7-Eleven customers have an annual household income between RM20. Nine in 10 customers travel less than 10 miles to a 7Eleven store. Most stores also have photocopying equipment available to customers for a small fee. and 53 percent have attended or completed college. the emphasis is on convenience. safe. 3 . 7-Eleven management believes that the characteristics of its customers are representative of convenience store customers as a whole.

and The ability to make delivery adjustments and perform write-offs on a hand-held unit. (b) Retail Information System. including many not traditionally available in convenience stores. 7-Eleven implements its merchandising strategy through a variety of means. the company promotes new high-potential items. 7-Eleven was the first major convenience store chain to use an integrated set of retail information tools. supported by a centralized price book. These products include high-quality fresh foods that are delivered daily to stores. debit and stored value card authorization.(a) Differentiated merchandising 7-Eleven offers a broad array of products. It employs itemby-item inventory management to keep top-selling items in-stock. Café Select coffee. Effective utilization of the system is the foundation of the company¶s business model. pricing and inventory control. crispy grilled tortillas with spicy Mexican filling. The 7-Eleven retail information system features: A point-of-sale. In addition. merchandise messages and historical sales information. to meet the needs of its customers. the company sells a number of products that are developed specifically for its stores. Daily ordering. Category management and item level sales analysis. The company¶s merchandise assortment also features items specifically identified with 7-Eleven. including Slurpee semi-frozen carbonated beverages. Automated back-office functions. which are connected directly to the company accounting system. The company expects its franchisees and store managers to monitor customer buying patterns to maximize store sales by staying stocked on popular items. payroll. Big Gulp fountain beverages and Big Bite hot dogs. In addition. such as sales and cash reporting. 4 . touch-screen system with scanning and integrated credit. Integrated gasoline and ³pay-at-the-pump´ functionality. managing product assortment and merchandising effectively. supported by five-day forward-looking weather forecasts. such as 7-Eleven Go-Go Taquitos®.

The distribution centers. modernized store signage and installed canopies over the gasoline pumps. the company uses 5 distribution centers in the Malaysia to service approximately 1067 of its stores. the company has improved lighting inside and outside its stores.(c) Managed distribution 7-Eleven works with its vendors and distributors to provide daily delivery of fresh food and other items to its stores. to lower the cost of delivery. safe and clean store environment. In addition. Off-peak. Vendors include independently-owned and operated bakeries and commissaries that provide daily deliveries of fresh foods. to its stores. and baked goods. These centers typically serve stores within a 90-minute drive. offer a number of advantages over other distribution systems. and to shift deliveries to off-peak hours. Each center serves about 200 stores. consolidated deliveries that allow store personnel to focus on store operations and reduce congestion in a typically small 7-Eleven store parking lot during peak sales times. and Access to products that traditionally have not been available to individual convenience stores. (d) Providing a convenient shopping environment 7-Eleven seeks to provide its customers with a convenient. including: More frequent deliveries of timesensitive and perishable products such as milk. More customized deliveries and improved in-stock levels. 5 . bread and fresh foods. on average. such as sandwiches. around $80 million was spent for store maintenance and the replacement of store equipment. The majority of 7-Eleven stores in the United States and Canada provide more than 6 million daily customers with 24-hour convenience. seven days a week. salads. Over the last several years. which consolidate orders from multiple suppliers for daily distribution to individual stores. In 2004.

it is not an unusual scene for two 7-Eleven shops to stand face to face across an intersection. If a store is set up in ordinary location. The 7-ELEVEN stores offer over 2500 products meeting consumers need . Good locations not only can bring many customers but also can bring a higher profit. it just can attract consumers from one direction. Already mentioned in Page 2 . schools. Seven-Eleven starts also emphasized more on regional merchandising to attract the local preferences in terms of food items. This helps them to increase the sales. Besides. consumers can reach it easily even in Malaysia . 7 ELEVEN is everywhere. In general.7-Eleven Site Selection Issues and Strategy : Location is one of the important factors. 7-ELEVEN also sets up in subway stations. magazines etc. The 7-ELEVEN company thinks it much more obvious and also can catch consumers¶ eyes. stores don¶t like to set up stores at an intersection. Intersections are 7-ELEVEN¶s favorite locations and are usually located in there. and has developed a range of beverages and foods that contain strictly selected ingredients to strengthen product structure.More information can refer back to : Page 2. 7-Eleven Merchandise Selection and display Strategies : 7-ELEVEN utilizes team merchandise and international procurement to launch foreign top sellers. the feature of the 7-ELEVEN stores are that they set up their stores in intersections. Seven± Eleven Retail Market Strategy : (a) Differentiated merchandising 6 . hospitals. However. Sometimes. beverages. to expand their territory. Besides. almost every community has one 7-ELEVEN store. and rest areas of highways. Therefore. shopping malls. near the traffic signals and a corner.

making their stores about twice as large as those of their local counterparts. To get noticed. The new look complements the overall convenience offer. integrating food service within the store. Its new strategy aims to provide a personalised in-store experience featuring a new range of food-to-go products. attractive display cases and dedicated food service. making it possible to have a better mix of products on their shelves. 7-Eleven has transformed the previous store footprint into a cafe -style format featuring a modern food service zone. Already mentioned in Page 2. More information can refer back to : Page 2. 7-Eleven stores-mostly located in commercial districts and near office buildings-have store fronts some eight metres wide. a µserved for you¶ product delivery style and new store design to highlight the availability of food service.7-Eleven Store Layout and Design Strategies : 7-Eleven stores take at least 120 square meters. easy to read menus. bold use of its logo. Seven± Eleven Retail Market Strategy : (d) Providing a convenient shopping environment 7 .

the company has undertaken a fairly ambitious investment program to further broaden its infrastructure and technology. 7. Packaging is key to creating consumer awareness. The consistent look. A similar back room device sees to it that the store's soft drink dispensers never run out of syrup. showing consistency. 7-Eleven is loaded with innovative new devices to simplify life for both employees and shoppers. In the back room of the store is an ice machine that automatically fills the store's dispensers without staff intervention. Besides that7-Eleven stores also use degradable plastic bags in response to environmental protection and to gain good reputation and trust from the consumers. packaging.Eleven brand. 7-Eleven¶s category managers working closely with Suppliers to make the final packaging decisions. Customers may place orders at a drive-up window. 8 . 7-Eleven is one Convenience-store chain that has embraced the power of packaging as it widens its own-brand assortment to help build shopper loyalty. Working in conjunction with systems specialists at Electronic Data Systems (EDS). and logo are important to creating the brand.7-Eleven Strategies to Enhance Customer Satisfaction and Loyalty : 7-Eleven has moved aggressively to add new products and services that meet its customers' needs and to increase the convenience of its stores. The chain¶s store-brand strategy is to be the lowest-cost selection while also offering shoppers convenience and value with product quality that equals or surpasses that of national brands. with input from marketing and other in-house departments. and building consumer confidence towards 7-Eleven products.Eleven select products are presented on multiple tiers. The outlet's 21-spout coffee bar is equipped with airtight dispensers that keep the coffee from burning. especially because there is no advertising of the 7. To facilitate these additions.

Eventually. This ability to analyze product trends and pinpoint slow-moving products gives the corporate merchandising team the ability to work with franchisees and store managers to increase sales by custom -fitting the product mix to each individual store and its unique customer base. where the company feels there exists a great deal of potential for significant expansion. expanding in existing markets. The company's Retail Information System allows franchisees and individual store managers to evaluate sales on individual products in their inventory. population density.7-Eleven Future Strategies : There are four key elements in 7-Eleven's corporate strategy for future : increasing samestore merchandise sales. offering check cashing. remove slow-selling products from their kiosks will be located in many of the chain's outlets. and traditional ATM services. ease of access. and increasing the value of the company's licenses and expanding internationally. most importantly. and developers hope that in the future. The rationale for tapping the potential in existing markets focuses on the efficiencies that can be achieved by drawing on existing distribution centers. 9 . It announced plans to open 125 to 150 new stores by 2003 in such existing markets. Using the Retail Information System. providing an opportunity to analyze sales trends and customer preferences as well as the many factors that affect each of these areas. bakeries. the company believes these new and innovative services should fuel growth by attracting new customers to its stores. Most importantly. The company has been developing and testing its proprietary V. Because it is the granddaddy of convenience retailing. store managers are better able to maintain optimal inventory levels and. corporate merchandising experts work to develop and introduce new products. 7-Eleven's store development efforts are concentrated on its core urban and suburban markets. In the area of increasing same-store merchandise sales. money orders. visibility. 7-Eleven customers will also be able to use the service to purchase tickets to major entertainment and sporting events and even pay bills electronically. traffic volume. it comes as no surprise that an important element in 7-Eleven's strategy for future growth is to look for new ways in which to provide greater convenience to its customers. providing greater convenience to customers. and overall economic activity immediately surrounding the kiosk program. self-service V. Factors considered in the evaluation of potential sites for new stores include demographics. money transfer. V.

The last element of the corporate growth strategy focuses on international expansion and attempts to increase the value of licenses. Long-range corporate plans envision moving into a number of countries where 7-Eleven. The company feels that it can offer prospective licensees a more attractive financial opportunity through its continuing expansion and broadening of the corporate infrastructure. all of which will strengthen the value of the 7 Eleven brand. currently has no presence. Inc. 10 .

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