MARKETING STRATEGIES OF 7-ELEVEN

Business Strategy

Franchise Model – As per the 7-Eleven new brand, it encourages local businesses to
invest and drive market growth. The Company controls its franchises' entire structure to ensure
that they all have high quality service, cleanliness, and value for the firm's money to its
consumers.

Local Marketing Support

7 – Eleven offers a wide range of brand management support services and materials to allow
franchisors to interact effectively with store goods and promotions:
• Packages for Grand Opening
• Bilingual support;

• Personalized point of sales materials

• Signage in-store

MARKETING MIX:

Marketing mix involves depending on merchandise, pricing, positioning, and promotion.

Marketing tactics consist of consumer focus, feedback, and usability in the fight to become the
market leader (Bilro & Loureiro, 2020). Once the Company has been able to find a key driver,
evaluate the market, target segment and recognize the demands, every sector or every Company
needs to develop a strategy to boost the Company's growth and success. For which 7-Eleven uses
a campaign combination of 4Ps such as:

 Product
 Price
 Place
 Promotion
Product Strategies:

Every day, items only available at 7-Eleven carry millions of loyal consumers into
franchisees' doors. The pioneer in delivering new food to the grocery market, 7-Eleven offers
fresh burgers, vegetables, fruit, and pastries every day. 7-Eleven now has a full range of 7-Select
private label brands that sell consumers food options they enjoy at low regular costs. 7-Eleven
strives to when buying goods,
• Be the first to get any cool new products
• Have the best goods in the category
• Be the only store to sell such products;
7 – Eleven has new product development weekly and continually reinvests in product
growth.

Vast Buying Power, Great Margins

7 – Eleven buys more than 6,700 stores in the United States alone. This purchasing power lets 7-
Eleven secure attractive rates and conditions that allow franchisees to sell goods to consumers at
high prices while maintaining full profit margins.

Consolidated Distribution and Daily Delivery

7 – Eleven partners with suppliers across the World to identify the items that consumers would
enjoy. To ensure that the 7-Eleven merchandise mix is a real advantage for franchisees, 7-Eleven
has set up consolidated consolidation centers to ensure that all items requested by franchisees are
distributed on a single daily basis.

Pricing Strategies:
Convenient shops compete for the price of coffee, the cost of fountain beverages, and the
price of other privately owned items. The prices of goods that stores purchase from sellers are
not substantially different. Since it is the biggest chain, 7-eleven costs of its private label items
are comparatively high compared to other convenience stores. The firm can also set high prices
on goods not sold by other convenience stores (Itjhai, 2011).
Placement Strategies:

7-Eleven spearheaded the odds and ended store in 1927 at Southland Ice Company in
Dallas, Texas (YIFANG, 2018). In 1954, the organization opened a store outside of the territory
of Texas. 7-Eleven at that point extended globally when it opened stores in Mexico in 1971. In
the same year, the organization focused on England and Scotland as its first passage in the
European market. After three years, 7-Eleven opened the primary store in Japan. Following quite
a while of developing its stores universally, 7-Eleven global open its 25,000th store in 2006. In
2009, 7-Eleven had more than 35,000 stores in 18 nations around the World, with its biggest
market in Japan, the United States, Canada, Philippines, Hong Kong, Taiwan, and Thailand.

Promotion Strategy:

The organization presented the Tote'm store in 1927 and started selling gas the following
year. The store name, 7-Eleven, was introduced in 1946 after changing the store hours from 7
a.m. until 11 p.m. sharp to 24 hours—the 7-Eleven first mission in 1969 quote. In very nearly 30
years, 7-Eleven zeroed in on building up its new items and administrations, for example, ATM,
Slurpee, Deli Central, World Ovens, Café Select, Gulp, Domo. Slurpee is one of the client's
refreshments. It is a slushy carbonated solidified beverage that serves at 28 degrees (Wang, 2020)

As of late, 7-Eleven began to add a reward for everybody entering the 7-Eleven Day
moment dominate match on the Slurpee site. After entering the match, they will get a code and
site connect to buy $7.11 yard passes for shows at select Live Nation scenes the nation over.
What's more, 7-Eleven made collectible Slurpee cups and Slurpee straws, including Domo and
statement the fluffy earthy colored animal with a brand name perplexing open-mouth articulation
that is overwhelming 7-Eleven store this fall and quot. 7-eleven additionally Domo-nized its food
and drinks, for example, the Big Bite and sausage. Caffeinated drink. Chief Rich Collins of Big
Tent Entertainment, the promoting and authorizing organization for Domo, remarked and quot
because Domo has such a colossally given, religion like after among children, youngsters and
youthful grown-ups, we accept he's an ideal counterpart for 7-Eleven and its notorious Slurpee
brand and quot (WANG, 2018).
Competitive advantages

Market segmentation and the Taiwanese witnessed the service of the shop. 7-11 offers goods and
delivers high-quality services; thus, customers would like to shop at 7-11. Moreover, it has the
same background; therefore, 7-11 will easily integrate into China's culture.

Efficient transportation facilities. Depending on the efficient logistics system with specialized
hardware and applications. 7-11 will comfortably beat small size retail grocery stores.

International Strategy (Think Global, Act Local)

A business that embraces an international competitive orientation makes no difference between

domestic and foreign market markets aims to represent the same market that occurs in many
countries around the World and creates global strategies to compete with other international
businesses.

Porter 5 Forces:

Competitive rivalry

The convenience store industry in Taiwan is very concentrated, with the top five firms
accounting for more than 95% of the market share. In comparison, several new techniques, such
as gifts, e-wallets, and e-commerce, can be quickly replicated. Companies would also strive to
implement new strategies to improve their productivity.

The power of the buyer

Chain grocery stores are the domestic demand industry, their downstream customers.
Their position in the market is to provide comfort for shopping and service. They also have more
price benefits over most retailers, which means that they do not have to give customers
discounts.

The power of supplier

Chain stores have the last mile's benefits; any supplier needs to negotiate with others, and
convenience stores can charge a high slot price. Also, each organization is beginning to create
private brand products; thus, the suppliers' influence is not a hazard.

The threat of substitutes

 Convenience stores are currently functional. They offer bread, stationery, newspaper, and
magazines; they also have mailing, ATMs, photocopying, and laundry facilities. No other
industry will replace the market since the convenience store relies on its strong customer service
channel. As a consequence, the thread of replacements is imperfect.

The threat of entry

The demand for convenience stores in Taiwan has saturated; hence, growth has been weak. Also,
every Company has expanded its resources and aims to develop and integrate the logistics
infrastructure. They have already gained a great deal of expertise in designing products,
strategies, revenues, and advertising; thus, they have significant advantages in economies of
scale and market value. Consequently, it is difficult for new entrants to grow its market share and
service quality.

COMPETITOR ANALYSIS:

99 Speedmart 7-Eleven KK Mart

Number of outlets 450 Outlets 1,497 Outlets nationwide 62 Outlets nationwide

nationwide nationwide

Operating hours 10 a.m. - 10 p.m. 24 Hours 24 Hours

Products available Groceries & Freshmart Groceries, fresh foods, Groceries, fresh foods,
ATM, and photocopying ATM, and photocopying
services. services.
Benefits to customer Trolley provided Points by business partners None

Freebies and Discount None Freebies based on seasons None

& Discount depends on
business partners
 99 Speedmart is a fast-growing convenience store chain founded in 1987 by Mr. Lee
Thiam Wah, who is the owner of the Company itself. More than 450 stores worldwide, 99
Speedmart continues to grow its business and is still fighting to remain the top industry leader.
99 Speedmart sells the same commodity as 7-Eleven except without services such as the ATM
system and bill payment. 99 Speedmart provides its customers with trolley services. 99
Speedmart, 2014)

Although another rival is KK Mart, which is part of the KK Group established in 2001, it
desires to become a household name across Malaysia and beyond. Created by Dato's Dr. Chai
Kee Kan, also known as KK Chai, KK Mart has more than 62 outlets nationally and continues to
grow. KK Mart still runs 24 hours a day, making 7-Eleven a strong rival. (Group KK, 2014)

From the table above, we can compare how good each store is. 7 – Eleven is known to be
the best and most convenient retail business in the market. 7 – Eleven has the highest number of
stores worldwide, making it the easiest to find customers wherever they are. Besides, 7-Eleven
runs 24 hours and can be very helpful to consumers in an emergency. Furthermore, 7-Eleven
offers goods and also programs that make it very diverse to consumers. And when shoppers order
goods at 7-Eleven, they will get points when representatives of 7-Eleven's corporate partners. 7-
Eleven does offer discounts and freebies based on offerings and seasons.

New positioning and accompanying new marketing strategies for 7-eleven Malaysia vis-à-
vis the competitor

The rivalry is warming up in Malaysia's general store market. Store extension by existing
players and the passage of an unfamiliar player at any rate as of late have represented a test to 7-
Eleven Malaysia, which has about 80% of the market. Sian Review in an ongoing meeting that
Bison is on target with its arrangement to add 70 new stores a year, a guarantee it made to
investors during the organization's first sale of stock last March. While it expects to open a
similar number this year, it will focus on more than 70 stores in 2018. Such a bullish procedure
comes from the low entrance pace of retail odds and ends stores in the nation. More fragile
market assumptions and higher working expenses have influenced the profit at market pioneer 7-
Eleven. Net benefit in the quarter finished Sept. 30 fell 30% to 11.6 million ringgits ($2.6
million) on a 547 million ringgit income. The organization's yearly extension plan of 200 new
stores missed the mark regarding its objective in 2016. It figured out how to open 113 stores
before the finish of September, as indicated by Maybank Investment Research, which has a "sell"
suggestion on the stock.

Since its nearby posting in May 2014, 7-Eleven has been patching up contributions at the
about 2,000 stores it works in Malaysia, luring clients with more splendid design, prepared-to-eat
suppers, and more extensive scope of installment administrations. Yet, contenders like Bison,
which has 315 stores presently, are likewise attempting to give relative contribution and
administrations. Buffalo obtained nearby bread kitchen Otaru Fine Food a year ago to expand its
food determinations. In 2018, it intended to turn out more prepared to-eat items to catch
developing interest from the more youthful populace in metropolitan zones where most of its
stores are concentrated.

Buffalo began in 1996 as a paper remains on the edges of Kuala Lumpur. Dissimilar to 7-
Eleven, which utilizes an establishment model, Bison possesses 100% of every one of its stores.
Aside from papers and new food, which are conveyed straightforwardly to stores, 88% of its
items are sent from focal appropriation habitats to minimize expenses. Just 15% of its stores
work 24 hours, decreasing work overheads (Lau, 2019).

7-eleven Malaysia implementing the new strategy

It can be seen that any time 7-Eleven opens its stores, there will be another local or
international competitor store right next to or in the same store as the 7-Eleven store. So not all
consumers are going to 7-Eleven shops when they have more than one grocery store to pick from
for shopping (Mangyao, 2018). With GST's introduction, the rise in retail prices; therefore,
implicitly stops a few buyers from going to 7-Eleven stores because they find the goods pricey.
GST also leads to an increase in expenses, such as rent and service. Also, the minimum wage
mandate's announcement has contributed to a rise in manufacturing and delivery prices.

The current trend of 7-eleven

Convenience-store chain 7-Eleven Malaysia preserved its sustainability amid the effects
of the coronavirus pandemic. Income for the first half of the current financial year from the
convenience store of the brand and pharmacy firms contributed to US$5.8 million and US$1.4
million, respectively. The Group's accumulated earnings after tax for the half-year amounted to
$3.35 million. The Company stayed healthy amid the Covid-19 constraints that forced limited
hours and some shops' temporary closing. Stores are also unable to sell for 24 hours. While the
Company remained profitable, most commodity segments reported lower sales, except cigarettes,
which rose 22.7% over the reporting period (Verhezen et al., 2016). In the second half of its
financial year, the Company plans to seek more growth prospects as the trading conditions
steadily rebound.

Recommendation

7-Eleven should strive to be a more substantial provider to expand the number of shops
or branches around the country and become a more attractive employer. Compared with the
professional preparation offered, customer care will be much more tailored to establishing a
strong partnership between the vendor and the consumer. 7 – Eleven workers come from teens,
but there is no prerequisite for this generation. As a result, the new and successful labor force 7-
Eleven will remain high in the convenience store market. 7 – Eleven benefits from providing a
minimum salary to workers, but this may be considered coercion. However, it is a safe way to
keep labor costs down. There is much change in people's lifestyle, but 7-Eleven can stay-up-to-
date and be the first to satisfy the consumer's demands.

Future strategies

7 – Eleven Holdings Malaysia Bhd will have to adjust its "game plan" if the government
intends to expand the MCO duration further. Which could see the Company evaluating its target
to open new 7-Eleven outlets. 7 – Eleven Malaysia typically takes about two months to launch a
new shop. Like other companies, 7-Eleven Malaysia is not spared the consequences of the
Covid-19 pandemic, but the bearing on the sales of the convenience store chain retailer is
'cushioned.' This is because convenience stores are deemed to be essential companies and are
permitted to run during the MCO but with reduced operating hours. The research firm expects 7-
Eleven Malaysia to launch 125 new stores a year for FY20 and FY21. 7 – Eleven Malaysia can
launch a mandatory general offer (MGO) to purchase Loving Pharmacy Group Bhd at RM2.60
per share. The takeover bid can be made after the chain of convenience stores has increased its
stake in Caring Pharmacy to 38.57% from 13.22% in the past.
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