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Running head: 7-ELEVEN MARKETING STRATEGY 1 7-Eleven Marketing Strategy Name Institution

7-ELEVEN MARKETING STRATEGY 2 7-Eleven Marketing Strategy Executive Summary 7-Eleven is a multinational convenience stores chain whose headquarters is located in Irving, Texas. It operates franchises and has licensed approximately, 56, 000 stores in about 18 countries. The firm was founded in 1927 while being known as Tote’M Stores and name changed in 1946 to 7-Eleven (Adbu, 2013). Over the years the company has built its reputation gaining customer loyalty and development of a strong brand name across the United States, Europe, and Asian countries. The company is renowned for the large drink sizes famously known as the Big Gulp. The stores sell different types of drinks and beverages including Big Gup which is one of its flagship product. Among other products fast food, such as sandwiches, salad fruits and prepared food (Abdu, 2013). The competitive edge of the company results from its strong brand name and strategic locations across the world. The company has always focused on the customer’s convenience and delivering quality. Besides, it has drawn its success by providing a business model which makes franchising convenient for its partners. Furthermore, the company has highly invested on advertisements to ensure that it continuously attract new customers and promote customer loyalty. Current Marketing Situation Market Description The convenience store industry is fast growing across the world. Its market shares and sales have increased overt the years. The convenience stores industry sales have been increasing over the years. As at 2016, the total sales recorded was approximately 575 U.S. dollars in the United States alone. The number of stores has drastically increased to about 154, 0000 (Surathkal

7-ELEVEN MARKETING STRATEGY 3 et al., 2017). The rise results from the conveniences created by the stores. The typical customers at the convenience stores are considered to be individual between the age of 18 and 34 (Li, 2011). According to market research, approximately one-third of the total sales made by convenience stores are from cigarettes and beer. Coffee has also been established as one of the products which sales the most in the convince stores. The services of offering fresh fruits, and the prepared foods, have accelerated over the recent past with many people preferring ready to eat meals. The trend has been attributed to the changes in the economy whereby people take much of their time at work. Therefore, 7-Eleven being an industry leader stands a chance for further growth and enhancement of its competitiveness. Product Review Convenience stores often sell a broad range of goods, particularly, dairy, coffee, beverages, soft drinks, beer, and other in-house products. Different stores sales a combination of different products, however, cigarettes, fresh juice, and prepared foods are almost standard in all stores. Furthermore, the recent trends in the markets whereby the prepared foods have become familiar have resulted in the stores concentrating more on it. 7-eleven like all the convenience stores focuses on a line of products which it believes to be convenient for its clients having been on the market for approximately 88 years. Some of the products found in the 7-eleven convenience stores include big gulp beverages and partially frozen soft drinks. Among other products fast food, such as sandwiches, salad fruits and prepared food (Abdu, 2013). The Big Gulp has been one of the most recognized products of 7-eleven.

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7-ELEVEN MARKETING STRATEGY 4 Competitive Review The convenience store industry is very competitive with the entry of numerous stores across the United States and in the Global framework. Across the United States, there are more than 150, 000 stores competing for the same market share (Surathkal et al., 2017). However, the main competitors for 7-Eleven include the Wal-Mart, Welcome, and ParknShop. These shops are offering fierce competition to the business in addition to the growing number of other convenient stores. Furthermore, the increasing number of fast food stores across Europe, for instance, KFC has offered a stiff competition to the industry particularly on the line of prepared foods. The increasing number of coffee shops, for example, the McDonalds and the Starbucks has also carved off a percentage of 7-Elevn’s market share (Liao et al., 2008). However, 7-Eleven distinguishes itself from its competitors by providing many private-labeled and propriety items. The firm has employed some restaurant-quality teams whose duty is to creatively and innovatively introduce new food to the chain. Channels & Logistic Review 7-Eleven success is dependent on an efficient distribution system.7-eleven Operates Franchises and licensed stores but carefully monitors their operations. Its supply chain combines the overall chain character. It does this in two ways that are, customer closeness and process excellence. The chain performance is enhanced through the concentration of cost reductions, inventory reduction, operations convenience and maximum order satisfaction. Each of the stores licensed by 7-Eleven has its unique characteristics which make the network of distribution complex. However, the company has some regional distribution centers which manage and provide logistical support to the stores. The limited spaces within all their stores enhance

7-ELEVEN MARKETING STRATEGY 5 efficient management of the inventory. As a result, each store realizes precise replenishment and fast demand response (Rosenbloom, 2012). The incurred cost for the responsiveness is transferred to the customers who are willing to pay the extra money for convenience. Therefore, the regional distribution centers ensure that the stores operate efficiently and within the standards of 7-eleven. SWOT Analysis600 Strengths 7-eleven has high brand equity. It is seen as the market leader in the convenience store industry. As a result, the company has continuously earned customer loyalty and decreased price sensitivity. Besides, it has consistently received stable revenue across its outlets. The diversity of income has also been one of the strengths of 7-Eleven. The firm operates numerous stores and in different countries across the world. Therefore, it has diversified its income across the different market. It cautions the company when one market faces economic shock waves. &-Eleven has made it mandatory to have its stores strategically located in areas where there is high traffic. It has opened more than 50, 000 outlets across the world to enhance customer convenience, thus promoting customer loyalty (Abdu, 2013). Many of the stores are franchised to offer strengths to the organization. In this way, business model expansion becomes easier since the locals primarily do the operations. Moreover, it does not necessitate the firms to have an enormous capital to enhance development. 7-Eleven has branded some of its products, for instance, the Big Gulp and the Slurpee. Branding boosts the company’s image, and sales since some of the customers may prefer them over other products (Li, 2011). 7-Eleven has various strengths to take advantage of and increase its market presence.

7-ELEVEN MARKETING STRATEGY 6 Weaknesses In spite of the franchise's business model being a force as illustrated above, it is also a weakness to 7-Eleven. Operating a large number of Franchisees across the globe is complex. It eliminates the aspect of direct control and management of the daily operations of the stores. As a result, the firm brand of the company may be affected by reducing services among some of the shop operators. Again, there is a high overall cost structure resulting from recruitment, training and monitoring the franchises. The stores attract high staff costs. The operations of the stores are majorly 24 hours a day. Therefore, there is the need to employ more staff to operate the store. The cost is transferred to 7-Eleven since it has to protect its margins. The strategic choice of locations likely attracts a higher rental price. It therefore, needs to adopt a premium pricing approach control the high operating structure. Consequently, the outlets loose on the budget- conscious consumers who are more sensitive to prices (Li, 2011). If the company develops measures to improve on these weaknesses, there is no doubt it will gain a competitive edge. Opportunities Despite the shortcomings, 7-eleven has a broad range of possibilities which it can grab. A steady market development is a significant opportunity for the company. Increasing the number of stores in the countries of operations as well as raising the number of countries it is venturing into is critical. The company can enter into new markets such as the Middle East and Africa which offers incredible opportunities. The increasing number of food outlets across the globe provides another opportunity to 7-Eleven. The company can co-brand with some of this stores, for instance, those selling fast foods which are not common in its stores. The move will attract more customers, particularly those who are not into convenience buying. Furthermore, the move

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7-ELEVEN MARKETING STRATEGY 7 will boost its promotional strategy. The company has also managed to create strong relationships with the main manufacturers who have strong brands, for instance, Gatorade. Such partnership presents more opportunities since the company can enhance it and include more firms. The company can also utilize new business models and aspects such as online retail. It will increase its sells, since some of the consumers prefer making their orders online. On the other hand, it can enhance the products offered in its stores to meet the convenience and demand of the customers. Threats Security is a major concern with many of the 7-Eleven stores. The fact that it operates 24- 7 attracts greater safety concerns. As a result, more costs of operations are incurred to boost it. Besides, the minor stealing and shoplifting in some stores and locations are still an issue (Rosenbloom, 2012). Some of the stores have a few employees to be on the lookout at all times. 7-Eleven has provided logistical support to its associates, for instance, offering video cameras. The increasing number of fast food stores poses a significant threat to the firm. Besides, many of these stores have gone online. It is a substantial risk, particularly in the case where people are becoming digital. The supermarkets also have increased in number, increasing competition in the industry. Objectives and Issues First-year Objectives The implementation of the marketing strategy will result in different outcomes for the company. Nevertheless, within the first year, the firm hopes to increase its market presence to promoting brand awareness. Indeed, the company’s brand is strong, but it’s not known all over. Therefore, the aim is to make sure more people known 7-Eleven and also get to experience what

7-ELEVEN MARKETING STRATEGY 8 7-Eleven is all about. Besides, the awareness shall be enhanced by putting in place various promotional strategies which will make the brand stand out among its major competitors. The promotion shall focus on new markets in the existing and new region. The company shall also expand its operations to the Middle East within the first year of implementing the strategy. As a result, an addition of approximately 300 stores shall be opened within this period. Consequently, 7-eleven expects to increase its sales by about 10%. Second Year Objective The goals in the second year are to increase traffic in all outlets by approximately 15%. With rigorous advertisement, more people will flow into the stores for different products. As a result, the sales of each store will increase. Therefore, it is expected that the sales in the second year of implementation, should increase by approximately 15%. Besides, 7-eleven expects that in the second year of implementing the marketing strategy, the franchises shall also benefit. An increase of 8% profit merging is anticipated at the end of the second year. Consequently, the total profit margin for the company should estimate 15%. The number of stores shall increases by an additional 400 by the end of the second year due to an increasing number of franchises attracted through the advertisements and other promotional strategies. Besides, many of these new stores shall be in the new regions. Issues Nevertheless, several challenges are anticipated. Financial constraints are a major problem that shall have to be addressed in the process. Implementing such an aggressive marketing strategy requires adequate funds which may not be the case due to the budgetary allocations. Secondly, the economic changes also affect the implementation of the policy. The

7-ELEVEN MARKETING STRATEGY 9 costs of some aspects may increase due to inflation causing difficulties on how to balance the marketing budget. Besides, it may influence the preferences and perceptions of the customers since some may become sensitive to prices. Undertrained franchises can also be an impediment to a successful marketing strategy. Poor implementation of some of the aspects by the franchisers may result in an adverse outcome. Marketing Strategy Positioning Strategy 7-Eleven has positioned itself as a food shop destination through steadily delivering healthy, hygienic, best value, and available fresh food and beverages all the day. Therefore, the firm focuses its position strategy’s strength through producing fresh foods and beverages. It has always provided a variety of foods to meet the needs and demand of its customers. With the increasing necessity for healthy lifestyle across the United States, 7-Eleven ought to position itself as a one-stop store which guarantees hygiene and healthy foods. Convenience and value are other factors considered by the customers. The quality of 7-eleven products should be beyond reproach. Quality comes first at the prices. Furthermore, the stores are conveniently located to meet the demand of customers. More stores should be opened in strategic places to ensure that all customers are served conveniently. Product strategy The 7-Eleven product strategy is designed by putting more resources to find out more about their target customers. Extensive research is done to learn how customers shop, what they expect from the products, their reaction to the products, what inspires them to buy our products, we then propel our marketing strategy and our production toward that, which is very innovative.

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7-ELEVEN MARKETING STRATEGY 10 It has made us serve our customers' interests better, so they will come shopping in our stores because we have everything of what they need. It leads to a significant improvement across the product portfolio. 7-Eleven conduct quality tests to ensure that all the goods meet the uniform standards. It results in the creation of the right product quality, good package size, and corrects product positioning. Besides, 7-Eleven has startegicaly positioned its products as the healthiest in the world. It seeks to tap into the modern market where healthy lifestyle has become and norm. Pricing strategy The 7-Eleven pricing strategy relies on keeping prices of products as competitive as possible with other brands. Products sold include coffee, chips, bread, and eggs, which is commonly sold like any other brands are charged regular prices. But privately labeled products like Slurpees, and Big Gulp, have their prices a little bit higher than standard market prices. The explanation for the increased prices of its private labeled products is simply because these commodities are liked by its shoppers and are only available at 7-Eleven stores. Above all, the store offers shopping solution under one roof for all the needs of customers and the time span of 24 hours on a daily basis at which the store operates; the customer is satisfied with paying some premium pricing for the convenience availed by 7-eleven brand. It gives an important insight into the marketing mix pricing strategy of 7-Eleven stores. Distribution Strategy 7-Eleven has an advanced delivery system that is designed to ensure efficient deliveries to the stores are made on a daily basis. They have centralized distribution centers (CDCs) have been very useful. 7-Eleven operators place store orders by some period each day for deliveries out to the store that day. The computer system immediately combines these requests and

7-ELEVEN MARKETING STRATEGY 11 transmits them to the CDCs that support these stores. The orders are then acted upon quickly. 7- Eleven's efficient electronic Investment has improved its supply chain efficiency. 7-Eleven franchises its businesses, as such, the franchisors are directly in control of the business. However, the company has placed regional centers to monitor and oversee the operations to ensure that the retailers meet their standards. For efffciency purposes and to ensure that market is met on time, it is necessary to further decentralize the regional centers to each country of operations. Furthermore, the suppliers should be sourced from the local chain to make distribution short and fast to enhance consumer satisfaction. Marketing Communication Strategy 7-eleven has invested in a network system which has made customer link to be secure. 7- Eleven's web is effective in the enhancing communication. That has closely linked suppliers, stores, and employees who have helped reduce the cost. The complexity of 7-Eleven system construction has significant advantages. First, it can monitor customer's requirements. Secondly, 7-Eleven's sales data and software analytics can be used to improve the product quality control, product pricing and product development and other key components which form an essential part of market communication strategy. Sales information and analysis in the system from these stores can be completed in a shorter period. This advancement has made 7-Eleven’s faster and differentiates goods or packaging that is used to attract shoppers. '7-Eleven's sales and product development capability are immense and highly advanced. 7-Eleven needs to improves its communication center to ensure that the customers can call at anytime of the day to give their compliments, complaints and make inquiries concerning different stores in the country. Scondly it shall utilize the social media to pass critical information

7-ELEVEN MARKETING STRATEGY 12 to the consumers. The franchisors will have a special communication platform through which they can engage with the company’s management. Market Research To run a successful business, '7-Eleven's needs to learn about their customers, competitors and retail industry. Market research entails data analysis, which helps 7-Eleven Market research is the process of analyzing data to help 7-Eleven understand which products and services are in demand, and how to be competitive more to maintain a huge market share. Market research also provides 7-Eleven valuable insight to help them: Reduce business risks, identify current and upcoming problems in the retail industry, and identify sales opportunities available which have not been maximized. Market Organizational chart Action Plan Event Activity Date Market Research Surveys 2 Weeks President/CEO VP-Market &Operations Operations Division Strategic merchandise division General Merchandise division Marketing Division

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7-ELEVEN MARKETING STRATEGY 13 Business Intelligence Developing Marketing Plan Draft and 3 weeks Marketing Organization 2 Weeks Marketing Communication Strategy 4 Weeks Product 1 Week Price 1 Week Distribution 1 Week Promotion Advertising Social Media Television Ads. 1 Month 1 Month 2 Months Budgets Annual Marketing Budget MARKET RESEARCH & MEMBERSHIPS Cost Analyst Fees Analyst 700 MARKETING COMMUNICATIONS Corporate Brand Development Brand Framework 50 Corporate Templates 100 Corporate Identity Standards 70 Sales presentations 80

7-ELEVEN MARKETING STRATEGY 14 Marketing Agency Special Projects 250 Management Fees 150 Public Relations Agency Fees (or Consulting Retainer) 150 Wire Services 70 Clipping Services (if not included in above) 30 Analyst Tour 300 Article reprints 200 PR campaign support 300 Brand Awareness Online advertising 100 Print advertising 80 Keyword 40 interactive programs 60 Website / Interactive Website development 40 Website traffic reporting tool 50 SEO program maintenance 120 Email Marketing 50 Events - 150 Sales Support - 150 Totals 3,360 Controls Market Share The primary goal of any marketing strategy is to convince clients to buy products. 7- Elecven will utilize the market share to determine the effectiveness of its strategy. One of the goal of the marketing plan is to increase its marketing share. The more the share of 7-eleven increases across the globe the more effective the strategy. For instance the market share of the

7-ELEVEN MARKETING STRATEGY 15 firm has been estimated at 30% in the United States. However, with the implementation of the plan, the company should raise the share to approximately 40%. Any measure close tothis percentage indicates the improvements made by the market plan. Target Market Sales The market sales is one of the most significant control measure that is used to determine the success of the plan. According to the objectives of the market strategy, slaes ought to increase y approximately 15% after the implementation of the program. If sales are low, then further market research needs to be done to see why the targeted audience is not responding to the marketing tools. Effective record keeping shall be implemented in all stores to facilitate analysis to determine the sales in each store, region and for the entire company. Budgeting In 7 Eleven, a marketing budget is a balance between the cost of coming up with the advertising materials and resources as illustrates in the commercialization plan. All of these expenses require close monitoring to minimize spending and maximize profitability.through budgeting the company will be ina position to understand the flow of cash across the stores. The utilizisiation of funds during marketing is critical since it ensures that the right investements are made. Budgeting also allows the company to determine the amount of reveue it is collecting to establish if the marketing investments made are effective. Customer Feedback

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7-ELEVEN MARKETING STRATEGY 16 The marketing plan put in place by 7-Eleven aims at influencing the consumers to purchase its products. Therefore, one of the control measures put in place is to monitor and evaluate customers’ feedback based on the data received from the customers. The customers will always leave their comments either online or at the comments boxes placed at every store. The data shall be analyzed and reviewed to understand the level how customers accept the products from 7-Eleven. In this case, the firm shall be able to determine the impact of the marketing strategies. Marketing Tools Digital Media Computer software technology in 7-Eleven can reach potential customers with targeted, measurable communications. There are different forms of digital platforms which can be utilized by the firm to advertise its products. First, the company shall constantly update its official website. Besides, it will directly link its site with various tours and travel industries as advertising partnership. It will ensure that people accessing the services of these companies can also visit the link of 7-Eleven and get to know about the amazing products the company offers. At the same time, the company can employ or seek the services of some bloggers to post the advertisements on the blogs. Nevertheless, the blogs must be trustworthy and respected in the society. Social Media

7-ELEVEN MARKETING STRATEGY 17 Social media stand out as one of the most efficient modern tools of marketing. 7-Eleven will use various social media platforms to ensure that it reaches out to its target market. Indeed, many of the people across the globe today are on Facebook and twitter. On Facebook, the firm will establish its official page which will continually be updated by its employees. The consumers shall be engaged and their questions and concerns addressed in time. Besides, Instagram provides a fantastic opportunity to market the serene eating environment created by the Traditional Media Traditional media is another tool of marketing that will be utilized. It includes the use of billboards, television, banners, and telephones. Advertisement content shall be placed on these platforms with the aim of reaching a high number of individuals. The traditional media shall be used in 7-Eleven's strategy since it is still one of the most efficient advertisement tools. Due to the expensive nature of the ads, 7-Eleven will limit itself to only the television and magazines tools of ads. Print Media The print media shall be used in as an instrument of advertising. 7-Eleven will target the various health magazines to advertise its products. It will define itself as the best solution to hygiene and healthy foods. Furthermore, it will strategically use business cards and brochures to market various products. The business cards will be given to the customers to ensure that they can call the information center in case they want to trace one of the 7-Eleven stores close to them. The brochures will illustrate different products from the company which the consumers can buy as an alternative or addition to their purchase.

7-ELEVEN MARKETING STRATEGY 18

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7-ELEVEN MARKETING STRATEGY 19 References Abdu, G. (2013). Analysis of consumer behavior affecting consumer willingness to buy in 7- eleven convenience stores. Universal Journal of Management , 1 (2), 69-75. Li, M. L. (2011). Impact of marketing strategy, customer perceived value, customer satisfaction, trust, and commitment on customer loyalty . Lynn University. Liao, S. H., Chang, W. J., & Lee, C. C. (2008). Mining marketing maps for business alliances. Expert Systems with Applications , 35 (3), 1338-1350. Rosenbloom, B. (2012). Marketing channels . Cengage Learning. Surathkal, P., Dey, M. M., Engle, C. R., Chidmi, B., & Singh, K. (2017). Consumer demand for frozen seafood product categories in the United States. Aquaculture Economics & Management , 1-16.

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