7 Eleven Target Market

7 Eleven Target MarketThis probe of the bitty business, 7-Eleven chain p bentage, was conducted oer two month period from July, with some(prenominal) sources of education, more(prenominal) as the actual transshipment centers and the learning from internet. The 7-Eleven chain strain was percipient up as an ice house in Dallas, Texas in 1927, and it is one of the worlds largest operator, franchisor and licensor of public toilet shops. This article stresss to explore a comprehensive description and understanding intimately 7-Eleven and try to find out the secret of success, as well as giving some suggestions.The 7-eleven chain store was started out in 1927 and was introduced to Australia in 1977. An ice dock employee in the Southland Ice Company began to offer milk, plunder and eggs on Sundays and evenings when grocery stores were closed. This revolutionary business idea produced quenched clients and then the chain store was established.In November 2005, 7-Eleven, In c. became an indirect subsidiary of 7 I Holdings Company, a Japan-based organization.Their prime function is to consistently serve the ever-changing inevitably of guests for their restroom.The store can forever adapt quickly to accumulate the nodes changing needs. It is the most(prenominal) obvious feature that makes it incompatible from other doojigger stores. With the newest products and redevelopments applying in the store, and the newest ways of business surgical process, the store can be hired more(prenominal) expeditiously than others. For short, the perpetual improvement made the store memory ahead in so many brands of chain stores.As a whatchamacallit store, 7-Eleven brinyly faces three types of competitors. The first on is supermarkets, such as Wal-Mart. Second, small shops (probably not has a brand). Third, other brands of contraption stores, such as Lawson (founded in 1975 in Japan).The targeted customer is young hit working raft, normally un-married, as a result, the location of 7-Eleven always near office buildings, shop malls, parking lots, subway station, et al. too the traveler is besides its main customer. In Australia, stores in suburban areas often operate as petrol move (wikipedia.org, 2010).7-eleven, Inc. is the words largest toilet facility retail chain. The company operates franchises and licenses more than 7,100 stores in the U.S. and 7-Eleven licensees and affiliates operate approximately 31,400 7-Eleven and other widget stores in countries including Japan, chinaware, Thailand, South Korea, China, Australia, et al (7-eleven.com, 2010). The main dissemination of 7-eleven around the word can be seem in the t sufficient bellow fig.1Fig.1 the main dissemination of 7-Eleven around the word groundFirst Store OpenedNumber of LocationsUnited States1968584Canada +1969457Mexico19711,180Japan197112,753Australia1977397Sweden1978191Taiwan19804,735China (Hong Kong, Shenzhen, Guangzhou Macau)1981, 1992, 1996, and 2005, respectively1,680Singapore1983493Philippines1984469Malaysia19841,115Norway1986177South Korea19892,282Thailand19895,409Denmark1993126Beijing, mainland China200493Shanghai, PRC200920Indonesia20095Rsource http//corp.7-eleven.com/AboutUs/InternationalLicensing/tabid/115/Default.aspx(4) SuppliersIt can be seen from the table bellow that the most commodity of 7-Eleven is diet, in which the bear upon food account most. As a result, the main supplier of 7-Eleven is food maker, especially who produce the processed food. The non-food products suppliers is versatile, such the contributer of a variety of prepaid card.Fig.2 the commodity root word of 7-ElevenProduct TypePercent%food75processed food31.5fast food30selling foodsuch as milk, cheese13non-food products25Data resource http//www.7-11bj.com.cn/com_1.html4. Personnel inside in makeupTo achieve their business goals, the store has many various departments that people or the technical equipment can help the store improve and perform be tter. production line ConsultantsA Business Consultant is a 7-Eleven employee assigned to the store and who visits the store twice a week.The business consultants can help the store in the following ways domiciliateer in the development of budgets and business plans for the storeProvide advice, coaching and assistance on how to improve the businessAssist with the analysis of the stores gross salesdataProvide continual training and focussing on the ever-improving system of the storePromote efficiency to help increase the stores profitabilityDaily DeliveriesCombined Distribution Centers pull products from multiple suppliers matched to the stores tramp and deliver daily to the store-everything from the proprietary Fresh Foods and Fresh Bakery items to dairy, eggs and sting foods.The spoken language prison term is scheduled, so the employer know when to expect itThe employer invite fewer deliveries during the day, when customer traffic is heaviestThe delivery reduce the chance o f raceway out of stock because it can replenishitems dailyThe employer are able to consolidate work, so he/she can spend more time satisfying his/her customers and growing the businessThe Advertising SupportThe advertising support can be seen in the following waysTV and radio spotsBillboardsWebsitesPublic relationsPoint-of-purchase materials5. Technology(1) An efficient information meshAccording to the needs and development of business, 7-Eleven has established a highly efficient comprehensive integrated information network. The overall systematic chain trouble can be realized through it. The main functions of the integrated information network are followsCollecting the sales information of commodity, forecasting the orders, and purgative the orders data regularlyAnalyzing the ordering information of multiple store by POS System, and move the result to manufacturers and wholesalers automatically analyzing the selling data of different stores and sent the result to all stores a utomatically analyzing the whole operation focus information of the enterprise.The severes manufacturer begins to prepare the orders after receiving the data, and the wholesalers begin to prepare the ordered sell.The diffusion centers begin to distribute the merchandise to all chain stores after receiving the merchandise specific details of headquarters through POS system.The information network is richly used in sales, ordering, purchasing, commodity inspection, accounting, etc. The network final payments a suppose of automatic processing in receiving order, data processing and transmitting, summons issuing, address managing, et al., achieving business automation processing. The whole efficiency of the operation is improved greatly.2Advanced logistics and distribution systemAggregate distribution is the unique distribution system of 7-Eleven. 7-Eleven has establish a common distribution center which play the merchandize of the manufacturers that delivered by other wholesal ers. The transport efficiency is improved greatly as the increased of delivery amount of priceys to every stores and the reducing of delivery times. The delivery distant and time is reduced greatly as the shrinking of the distribution area.6. Government regulations(1) MerchandiseThe products they provided are classified in different criteria. Besides the basic classification, the products are classified as products that are needed in the morning, afternoon, late afternoon, evening and late iniquity, which is extraordinary and convenient for customers to choose the goods they need.(2) p determinationThe 7-Eleven Way principles are illustrated in the acronym as the follows (See Fig.3)I CARE about(predicate) People Teamwork.Fig. 3 The 7-Eleven Way principles about People TeamworkICARE(the acronym)I- IntegrityC-client emphasisA-AccountabilityR-RecognitionE-Excellent Execution(3) Marketing PrinciplesThe following four marketing principles capture been punctuate and must be follo wed by workers.Complete merchandizeput the merchandize that customer need mostFresh management keep the merchandise fresh in 24 hoursClean storekeep the shop clean in 24 hoursSmile service play the charming of smile service.7. Global business environmentOn one hand, convenience store has a broad prospect with the urbanisation and economic development. Convenience store is a very promising new type. As matter of fact, convenience stores has live on one of the bread and butterstyle is ultramodern fast-paced life. On the other hand, convenience stores allow also stick one of the most competitive retail industries for its nature.For 7-Eleven, both opportunities and challenges exist. In over all, it has a good global business environment, the market occupy is great and greater, but the disputation in the midst of convenience store has become more and more drastic.8. The Business StrategiesThe spot for the success of a chain store is convenience, which is also the primary fact or for its survive. The main function of the chain store is 24 hours business everyday. In Adelaide, reach 24/7 is the key to success for 7-Eleven. The opening hours of is area is 9am 5pm, so it is very difficult for people to find shop at night. Besides, all small part convenience stores open in 24-hour.7-Eleven introduced convenience for customers to more deeply realize that the convenience meaning the full benefit of the customer to do everything. For example, the toilets chuck up the sponge of put to the customer open, free use of parking lots. As long as there is demand, do not demoralize goods, and the staff does not have to say hello, you can use the convenience store facilities. In fact, free use of only a handful, or bread, Fan Tuanzi, or a bottle of water, consumers will buy something from the store back.Convenience stores are open already from the time of SEVEN-ELVEN (from 7 am to 11 pm), to 24 small businesses development, according to different store locations, th e golden hours each shop is different (Fei Ming-sheng2002). A large number of consumers go to the convenience store to buy lunch and drinks. In addition, 7-Eleven store often operating at night prime time, due to the phenomenon that work overtime is widespread, many people snack on his way lieu almost all the convenience stores, convenience that fully reflects the store characteristics.Importantly, the efficiency of the center in order to provide services, the services they give full play to the wide differences in the role of the individual into the retail market. Best to chase Japanese 7-Eleven differentiated services, in order to complete every 7- Eleven convenience store customers into the life situations and let the container on the goods naturally waving to customers. Although the pavement area of 7-Eleven convenience store is only 30-40 square meters, it operates more than 3,000 kinds of commodities, daily average sales of 4 million per unit area of 2.35 million yen sales, great turnover rateup to 43 times a yr (Fu tie-shan, 2004).7-Eleven convenience store business model is the most lively and diverse, such as convenience stores not only sell food and beverages, newspapers, magazines, tobacco, health care products, such as three meals a day, but also pre-order disc CD, seasonal merchandise, and a variety of payment services and automatic teller (ATM) services and other financial ticket.Receive e-mail service launched recently, the formation of a truly integrated approach to facilitate the center of home life.24-hour convenience stores and can thus determine the needs of consumers at different levels (Zhou Jia-gao, 2002).The tog up mode of 7-Eleven can draw as follows from the analysis above.Fig.4 SWOT mode of 7-ElevenStrength(1) Wide marketing channelsThere are many stores(2) Related services is manyThe product exploitation capabilities is pure(3) A large number of original products which has great attraction to customers(4) keen brand image(5 ) Regularly updated the product informationOpportunity(1) The demand is large and the market has a great potential(2) Has a good cooperation and relationship with many companies which will create many business opportunities.(3) The expenditure habits of people will be changed.Weakness(1) The price is a modest higher than other stores(2) Larger number purchase is not obtainableThreat(1) the market of convenience store will be intensiveness(2) Facing the threat of sales promotion launched by supermarkets(3) Peer competition(4) Can not meet consumer brand with special preference9. Recommendations(1) Customer focusWhy can 7-Eleven always attract different customer crowds of different cities and regions? How 7-Eleven master the demand of customers. The word of Toshifumi Suzuki, the owner of 7-Eleven can always unveil the hidden meaning that the key of retail business in nowadays psychology rather than not economics (Pilieci, 2009.). Indeed, the competition between convenience stores is not the pace of expansion or the price. The main consumer group is of convenience store is white-collar workers and single people, etc. They rarely seek cheaper. Therefore, the competition between stores will ultimately fall to the service. The beliefthe satisfaction of customer needs is the key to the success of retail industryis the consistent idea of 7-Eleven. As a result, 7-Eleven establishes has established the operation tenet of follow the need of various customer needs. 7-Eleven constantly study and explore the products customers really want and how to meet customer needs from the view, thinking and action of customers. This is why 7-Eleven can take the good business strategies I mentioned above.(2) Brand strategyBrand management is an inevitable process if an enterprise wants to be success. 7-Eleven now not is only stand for convenient, but also the representation of safe and secure. Sometimes, even though the price in 7-Eleven is slightly higher than other stores, custo mer will still buy things in 7-Eleven. 7-Eleven has become a close booster station of our people. We like it and trust it. The founder has realized that most of the goods in convenience store are necessities which are so comment that anyone can open a convenience store only those who win the favorite of customer can win the business. At the early days, 7-Eleven has designed its logos and operated it continually and seriously.(3) Characteristic operationAlthough the 7-Eleven is a convenience store, it has carried out the characteristic operation in service and products which make it different from other store. For example, the targeted customers of 7-Eleven is young single working people 24 hours operation, etc.Convenience store is a very promising new type industry. Convenience stores and shopping has become one of the lifestyles in modern fast-paced life. For the convenience store, the customer needs need to be focused with great effort. It also should try to development its chara cteristic convenience services and products. Meanwhile, for the development of a company, a good brand is essential.The successful baffle of 7-11 convenience stores not only fit leaning of convenience store industry, but also left much consideration and revelation to the development of other industries.10. Referencewikipedia.org, 2010.7-Eleven,Fu Tie-shan, 2004. The successful experience of 7-11 convenience stores in Japan and its enlightenment, Jiangsu Business Discussion,07(3),p,24.Zhou Jia-gao, 2002. The success of 7-11 convenience stores in Japan, Management Science Digest. 44(06), P. 34.Fei Ming-sheng2002.Franchise in China Inspiration of the victor of Japanese 7-11 Self-service StoresBusiness Research,11(05),p.124.Pilieci, V., 2009. 7-Eleven unplugs phone deal, moves Hundreds of cellphone owners left on hold by sale to Quickie. Ottawa Citizen. http//en.wikipedia.org/wiki/7-ElevenRetrieved September 5, 2010. http//www.capital of Canadacitizen.com/news/ottawa/Eleven+unplugs+p hone+deal+moves/2161149/story.html. Retrieved September 1, 2010.