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7 ELEVEN PRESENTATION
Transcript of 7 ELEVEN PRESENTATION
- 7 Eleven is the biggest player in the category of convenience stores excluding gas stations.
- It operates more than 6,000 stores in the US and Canada and has 31,000 store franchises or licenses worldwide. It sells gasoline in 2,100 stores, which accounts for 40 percent of overall sales.
- The remaining 60 percent of sales comes from merchandise sales. A majority of 7-Eleven's revenue is derived from tobacco products (29.1%). Beverages are another major product seller for 7-Eleven, accounting for 23.5% of total merchandise sales in 2004.
- At the lower end of the scale, smaller amounts of revenue are generated from the sale of dairy products (4.4 %) and fresh food (7.7 %).
The key success factors for convenience stores are as follows:
• Proximity to residential areas to provide easy access
• Access to a multi-skilled workforce that is ready to work flexible hours and are able to provide
friendly and helpful service to customers
• Ability to minimize stock build-up to keep costs low, but also have popular products available
• Store layout, design, shelf management, service, product range and cleanliness
According to seven-eleven CEO and President : “Now we can use technology as a surrogate for being able to talk to every customer who walks in the door.”
PRODUCTS AND SERVICES
Among 7-Eleven's offerings are private label products, including Slurpee (frozen soft drink -introduced in 1967).
Big Gulp introduced in 1980 that packaged soft drinks in large cups ranging insize from 20 to 64 US fluid ounces (0.59 to 1.9 liters).
Citgo, the gas brand sold at many locations up until 2006, which had locations adjacent to or near several 7-Eleven locations.
Since 2005, the company has offered 7-Eleven Speak Out Wireless, a prepaidphone service where a cellphone can be purchased directly from a 7-Eleven store and activated on the spot.
In 2009 that it was releasing two low-priced proprietary wines in the United States and Japan (under the "Yosemite Road" brand).
The following two tables represent financial benchmark information for the convenience store industry. The information is based on 190 companies, out of which 48 are small companies. The first column represents aggregate data for the 190 companies. The second column represents the same information for the 48 small companies.
1. Introduction, history, executive summary of 7/11
2. Brief financial analysis of 7/11
3. 7/11 product and service
4. Mission and vision
5. Market strategies and targets of 7/11
6. Porters five forces and SWOT analysis
7. Success factor
8. Position in the market
The following chart indicates the average cost structure experienced by convenience store operators:
PRODUCT AND SERVICE
Chilled temp items
Sandwiches, sweets, milk
Warm temp items
Box lunch, rice balls, fresh bread
Ice cream, Ice cube etc.
Room temp items
Canned food, Instant noodles etc
Of the Shelf
7-Eleven, Inc., is the world's largest operator, franchisor and licensor of convenience stores.
Founder : Joe C. Thompson
Current CEO: Joseph DePinto
More than 43,500 stores
More than 45,000 employees
Revenue: 17,000 billion US dollar
Net income: 2,000 billion US dollar
Our Vision Is to Be the Best Retailer of Convenience
Mission and Vision
Position in the Market
7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 40,000 outlets, surpassing the previous record-holder McDonald's Corporation in 2007 by approximately 1,000 retail stores
In 2008, 7-Eleven was named as the No.1 overall franchise by Entrepreneur, beating out Subway, which had held the number one spot for 15 years. In addition, they were also ranked No.2 in Low Cost Franchises
In a four-week period, customers visit a 7-Eleven store an average of 17 times, 80 percent of their total trips to any convenience store.
Position in the Market
Position in the Market
7-Eleven Mission is to be your convenient neighborhood store.
7-Eleven convenience stores don’t focus on what it sells or how much it sells, they focus on the customer’s experiences and how 7-Eleven convenience stores impact the customer’s daily life.
7-11 is part of an international chain of convenience stores.
7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor, and licensor of convenience stores with more than 50,000 outlets.
Operating in Australia, Japan, Taiwan, Malaysia, Philippines, Singapore, South Korea, Thailand, China, Hong Kong, Macau, Scandinavia, United States, Canada and Mexico...
: Dallas, Texas.
: Seven & I Holdings Co.(Tokyo, Japan).
: Joseph DePinto.
: $84.8 billion (Estimated-2009).
: 45,000 (2010)
: 7-eleven.com/ 7andi.com/ sej.co.jp
- 7-Eleven illustrates how a brand needs and can benefit from adapting to a local market.
- The placement strategy : most of 7-Eleven stores all over the world are conveniently located in office areas and are opened around the clock.
- Traditionally, 7-Eleven's entry strategy is to target urban markets.
- 7-Eleven always innovates its product range and offer additional services that meet local traditions and customer needs.
7-Eleven Marketing Strategy is more geographic and convenient
7-Eleven focuses on food products as their marketing strategy
7-Eleven wants to serve their customers with the best quality and monopolistic products, so they are really careful in buying products. When buying products, they aim to:
7-Eleven main target are
, they also target the
whom have no time to go to supermarket to buy groceries. The busy people choose 7-Eleven because it is convenient to get anything they want and it’s easy to find anywhere.
PORTERS FIVE FORCES
Bargaining power of Seller
No single supplier that monopolizes
IT Product and service suppliers
Potential New Entrants
The threat of new entrants is very high
The cost of opening convenience store is low => new competitors.
Foreign general merchandiser and distributer
Established retailer shifting strategy to discounting andmegastores
Bargaining Power of Buyer
The bargaining power of customers in 7-eleven is high
Buyers can easily switches to other convenience stores
Consumer in small Town USA
Consumer in Metro politan in USA
Canadian and American Consumers
Other foreign Consumers
Substitute Product and services
The competition of alternative products:
Home shopping network (TV)
Electronic shopping (Internet)
Door to door sales
Convenience stores has no considerable differentiation =>the pressure of competition is high
First 7-11 convenience store opened in Tokyo
The company ran into financial difficulties, selling off its ice division, and was rescued from bankruptcy by Ito-Yokado Southland Corporation entered into bankruptcy protection
IYG, The Japanese company gained a controlling share of 7-Eleven,acquired 70% of Southland’s common stock.
Ito-Yokado formed Seven & I Holdings Co. and 7-Eleven became its subsidiary.
Founded in Dallas, Texas, when an employee of Southland Ice Company, Joe C. Thompson, started selling milk, eggs and bread from an ice house.
All stores were open from 7 am to 11 pm, hence the company began to use the 7-Eleven name.
- Be the first to have great new items
- Get the best products in the category
- Be the only retailer to carry certain products
The 5th largest retailer in the world (in 100 countries)
PRODUCTS AND SERVICES
7-Eleven factors are considered as contributing factors for customer satisfaction
The performance of 7-eleven can continue to sustain the achievements
Franchising and licensing.
Convinence(Providing products to the customers who facing time constraints in comfortable.)
Being market leader of many developed countries.
Lack of communication with the customers
The lack of main power holding them together follow company mission as well as policies is a problem
Not perceived as a place to buy a complete meal
Area for dining is insufficient
The price of it is usually higher than supermarket
The employees not loyal
Concentrate on the following changes: food service evolution, payments innovation and in-store network technology.
Consumers tend to use the privately labeled products
Focus on the product organic and healthy foods
Expand to China market
Growing demand for organic products
Intense competition(competitors are not only from inside industry but also from outside industry)
Convenience store's competition and other small-box retailers