1) Description on the selected organization

7-Eleven was founded by J. C. Thompson in 1927 as The Southland Ice

Company in Dallas, Texas. When an enterprising employee in a small ice
storefront began offering milk, bread and eggs on Sundays and evenings when
grocery stores were closed. This was the beginning of the convenience store
industry as it is known today Franchise (7-eleven, 2010).The company's first
convenience outlets were known as Totems stores since customers "toted" away
their purchases, and some even sported genuine Alaskan totem poles in front
(7eleven, 2010).
By 1945 Southland owned stores scattered over north-central Texas,
operating from 7 in the morning to 11 at night, seven days a week. In 1946 the
firm Tracey-Locke, commissioned to create a new name, chose '7-Eleven' to
emphasize the firm's commitment to long operating hours to serve customers
better. At the end of the 1950s, John Thompson began to introduce 7-Eleven
stores outside of Texas, in Virginia, Maryland, and eastern Pennsylvania. In
reaction to mass migration to the suburbs, Southland opened more suburban
stores (Historyofbusiness , 2011).
The company's corporate name was changed from The Southland
Corporation to 7-Eleven in 1999 (7eleven, 2010). The 7-Eleven name has been
the pioneer in its trade, earning the title of worlds leading convenience
store .Having a strong customer-centric focus, 7-Eleven saw new ways to grow
through innovation, hitting new heights that continuously move the convenience
store industry forward. Together with its global licensees, franchisees and
affiliates in 16 countries, 7-Eleven operates over 50,000 stores worldwide
(7eleven, 2010).
The first 7-Eleven store in Malaysia opened on 9 October 1984 in Jalan
Bukit Bintang, Kuala Lumpur and it is still in operation today and achieved a
milestone with its 1000th store opening in 2008. In Malaysia, 7-Eleven Day is
celebrated on 7 November (7/11) instead of July 11 which is the official birthday

of the 7-Eleven convenience store (7eleven, 2010). 7-Eleven Malaysia serves

over 900,000 customers daily, 7-Eleven stores can be found across bustling
commercial districts to serene suburban residential compounds throughout
Malaysia, from petrol stations and LRT stations to shopping malls and medical
institutions. 7-Eleven is Always There For You (7eleven, 2010). He stores carry
an average of 1,800 products, including its own propriety brands such as Big
Gulp and Slurpee was launched on 10 November 2008 for a limited time only
(7eleven, 2010).
In 2009, 7-Eleven introduced fresh brewed coffee and other hot beverages
together with packaged fresh food and bakery for the convenience of customers
looking for ready-to-eat hot food. All food items sold in 7-Eleven are certified
HALAL and undergo stringent quality control to ensure tastefulness and
freshness (7eleven, 2010). Not only that, 7-Eleven stores use degradable plastic
bags in response to environmental protection and also 7-Eleven introduced new
complimentary products and services, differentiating the brand by allowing bill
payment service, selling frozen food, ready-to-eat food and fresh food. Other
services available at 7-Eleven include the sales of mobile, IDD/STD, Touch N Go
reload, soft pins, ink cartridge, refill and photocopying, fax, ATM, internet games'
starter packs and reloads via MOL Point top-ups (7eleven, 2010).

Being the premier neighborhood convenience store, community building is

in the heart of 7-Elevens corporate social responsibility framework. 7-Eleven
Community Care is a non-profit entity set up to implement 7-Eleven Malaysias
corporate social responsibility and philanthropic initiatives. We believe in giving
back to the society we operate in, with a commitment to support the
underprivileged groups and to sustain environmental conservation effort at the
local community level across all regions (7eleven, 2010).

2) Descriptions of general marketing mix elements

Marketing professionals and specialist use many tactics to attract and
retain their customers. These activities comprise of different concepts, the most
important one being the marketing mix. There are two concepts for marketing
mix: 4P (Product, Price, Place, and Promotion). However as a service is not
tangible the marketing mix for a service has three additional elements People,
Process and Physical Evidence thats call 7P (Bob, 2011).
Product - It must provide value to a customer but does not have to be tangible at
the same time. Basically, it involves introducing new products or improvising the
existing products (Bob, 2011). For example, within this element, need to consider
such things as product range; which is Quality, Packaging, Durability, After Sales,
Warranty, Branding, Features (Clarity, 2005).
Price - Pricing must be competitive and must entail profit. The pricing strategy
can comprise discounts, offers and the like (Bob, 2011). Within this element of
the mix we should consider list price and discount price; payment terms ; and the
price sensitivity of your market. For example worth remembering is the
connection of price to our position in the marketing because specifically that only
one operator in any market can be the cheapest (Clarity, 2005).
Place - It refers to the place where the customers can buy the product and how
the product reaches out to that place. This is done through different channels,
like Internet, wholesalers and retailers (Bob, 2011). The choice of such channels
is important, as is the variety of channels we use. For example, a common issue
for businesses beginning to trade on-line is how that will affect their off-line
business (Clarity, 2005).
Promotion - It includes the various ways of communicating to the customers of
what the company has to offer. It is about communicating about the benefits of
using a particular product or service rather than just talking about its features
(Bob, 2011). There are many different promotional techniques, each with their
own strengths which is Advertising, Public Relations, Sales Promotions and

Direct Selling. These techniques are used to communicate the specific benefits
of our product to our customers (Clarity, 2005). For example, summer bakery
shop gives their customer buy 2 free 1 for their bread at the several time.
People - People refer to the customers, employees, management and everybody
else involved in it. We need to consider the knowledge and skills of our staff; their
motivation and investment in supporting our brand (Bob, 2011). For example,
people element is one where the importance of regarding marketing as an
integral part of the way you do business is crystal clear (Clarity, 2005).
Process - It refers to the methods and process of providing a service and is
hence essential to have a thorough knowledge on whether the services are
helpful to the customers (Bob, 2011). For example, the more high contact your
product, and the more intangible, the more important it is to get your processes
right(Clarity, 2005).
Physical Evidence - It refers to the experience of using a product or service.
When a service goes out to the customer, it is essential that you help him see
what he is buying or not. For example- brochures, pamphlets etc serve this
purpose. what can you buy for 7p with a push a leaf of bread (Bob, 2011).

3)
Identification and discussion of marketing mix elements in the selected
organization
Product
7-Eleven convenience stores commonly offer a range of grocery and food
items including hot food and beverages which is Tobacco product, beverage, and
confectioneries snack foods, household good, publications, perishables and
other foods. Not only that, 7-Eleven offer services that are usually only available
in more specialized store, such as pre-paid mobile phone reload, fax,
photocopying services. A selected number of 7-eleven convenience stores also
sell automotive supplies and offer access to ATM. These types of products and
services provided by 7-Eleven Malaysia. The numbers of differences in product
levels. Whichever 7-Eleven stores selling are customers expected product. Need
when all shop closed at night because not all shops open 24hours (Gouatm,
2010).

Price
Malaysia 7-Eleven retail currently embarking on a program to franchise a
significant proportion of existing 7-Eleven convenience stores. The franchising
program will provide 7-Eleven stores with additional income derived mainly from
franchising fees and will free up capital for reinvestment in areas. All 7-Eleven
stores price level higher then mini market and other retail stores. But customers
willing buy for higher price because only 7-Eleven open 24 hours. When the
other store closed 7-Eleven open for customer needs. Price differences are
RM0.20 to RM1.00. For example: Beverage and snacks normal price between
RM1.20 to RM1.40 but in 7-Eleven selling around RM2.00 to RM2.30. However,
in price wise 7-Eleven might competitive with other retailers (Gouatm, 2010).

Place
7-Eleven convenience stores are commonly located at high-traffic and
easily accessible sites which is alongside busy roads, highway rest stops, petrol
stations, transportation hubs and shopping centres, 7-Eleven keep on open new
stores wherever 7-eleven dont place. 7- Eleven make new operation system will
facilitate to costumers. This makes it easy and convenient for customer to visit
the stores. The 7-Eleven brand names are an established and global brand name
that has generated high brand name awareness among consumers. There is
good chance that 7-Eleven stores are located close to most urban customers.
Surround Malaysia, 7-Eleven needed when emergency situation for consumers.
Easy to purchase food and things whenever customer needs. (Gouatm, 2010).

Promotion
7-Eleven Malaysia promoted every month such as contest and promote
certain products. Pick certain products reduce the price and promote for 1 month
or 2 month period. Monthly highlights food and non-food parties for promote 7Eleven among public. 7-Eleven prize certificates is an ideal convenient gift as it is
valid at all 7-Eleven Malaysia. 7-Eleven Malaysia visit some handicapped to
contribute some foods and non-food. Malaysia 7-Eleven retail won number of
awarded with a National Franchisee of the Year and Best outlets sales growth
categories.. Each month promotes 7-Eleven retails websites like own 7-Eleven
websites, Facebook and through newsletter
(Gouatm, 2010).

People
7-Eleven stores continuously employ and trains staff via its new Employee
Training Program and Store Manager Training Program. The training centre is in
KL there are also 35 training stores all over Malaysia to ensure the sufficient flow
of trained workforce for 7-Eleven outlets new convenience stores. So, 7-Eleven
employees know how to impress and serve customers (Gouatm, 2010).

Process
Each convenience orders for goods are made based on the sales
forecast.
7-Eleven stores send their orders for goods to a Business to Business vendor,
which is simultaneously notified to 7-Elevens head office and the
CDC(Combined Distribution Centre). The Business to Business vendor
aggregates orders from individual 7-Eleven convenience stores, and places
orders to good vendors.
A substantial portion of the goods that the group purchases for its 7-Eleven
convenience stores are delivered to the groups CDC. In keeping with the flowthrough warehouse concept, the CDC acts as a central clearing house that
distributes goods from various vendors to individual 7-Eleven convenience
stores. Some goods, such as tobacco product, products with short shelf life such
as newspaper and bread, product that require specialist channels such as an icecream and chocolate, that are delivered directly from the vendor to individual 7Eleven convenience store.

The good are received by individual 7-Eleven convenience store, where they are
checked to ensure that the order is complete. The goods are then placed on
display at the 7-Eleven convenience stores and sold to customers (Gouatm,
2010).

Physical Evidence
7-Eleven is expending food service offering at 7-Eleven convenience
stores by offering new premium fresh food and beverage items to customers.
7-Eleven retails plans to work closely with fresh food manufacturers that are
located close to 7-Eleven convenience stores to supply freshly prepared food
items, including local specialties, for sale at 7-eleven convenience stores.
7-Eleven retails have embarked on a pilot Hot Beverage program which was
launched on 19 April 2009. The goal of the Hot Beverage programme is to
provide customer with both high quality and freshly brewed specialty coffee at
affordable prices, available to customers 24 hours a day, seven days a week. 7Eleven retails efforts to introduce new premium fresh food and beverage items at
7 eleven convenience stores are on-going. New items are being progressively
introduced at its 7-eleven convenience stores (Gouatm, 2010).

4) Recommendations on improvements of the marketing mix elements

Product
7-Eleven has limited assortment offering. Customers may find the items
that they need but they have only limited choices because 7-Eleven does not
provides all the brands that customers want. So that, 7-Eleven is not a first
choice for shoppers. Customers probably will go to supermarkets or a bigger
store to buy groceries, food, beverage or any of the daily needs as they can have
more choices and bigger power of purchase. (Paradise, 2014) 7-Eleven need to
increase more brands of an item to satisfying customers needs and wants.
Furthermore, every morning, fresh meal will be available at 7-Eleven stores for
people to take away and get a quick breakfast. As customers know there are a lot
of quick service restaurant such as McDonald, KFC, Winter Warmer and also
Starbucks that make customers has a lot of choices to get a quick breakfast to
start a daily life. So that, 7-Eleven should increase the menu of quick breakfast
so that the customers have more choices and buy what they like. Other than that,
some customer might think that the foods sell at 7-Eleven are not fresh as
sometimes foods are place in the oven. 7-Eleven should find more fresh food
supplier so that customers have a fresh food to start a daily life. Lastly, there are
a lot of changing in peoples lifestyle, therefore 7-Eleven should keep updated
and be the first one to provide the customers needs and wants.
Price
7-Eleven takes high margins which mean the item sell in the outlets are
slightly expensive compare to price in supermarket, mini market and other retail
stores. (Paradise, 2014) 7-Eleven should lower down the selling price to
reasonable price so that the customer willing to buy even its not over 10 p.m. For
example, beverage and snacks normal price between RM1.20 to RM1.40, but in
7-Eleven selling around RM2.00 to RM2.30. Due to this price range, some
customer not willing to buy the same item in 7-Eleven with other retail stores,
because the price is higher. Not only that, lower down the selling price to

reasonable price also can increase the sales maximizing the profit of the
company.
People
7-Eleven has high employee turnover rate. Even 7-Eleven is well-known
stores; many of the employees turn out the job as working because 7-Eleven
requires them to work in shift which is in the morning or at night. Moreover, most
of the employees quit the jobs because they want to find a more stable job as
they take this as a part-time job. (Paradise, 2014) Further, the people employed
in 7-Eleven will determine the quality of services of 7-Eleven. 7-Eleven should
provide professional training for the employees of the 7-Eleven to become
friendly employees, courteous employees, knowledgeable employees, helpful
employees to increase the customer service. Also, employees can build up
strong connection between the customers and retailer. Employer of 7-Eleven
should increase the wages of employees so it can lower down the employee
turnover rate.
Place
7-Eleven should increase the number of stores or outlets all over the
country.
Physical Evidence
Employer of 7-Eleven must make sure the hairdressing of employee is tidy
and the window or floor is clean. Also, ensure that the 7-Eleven stores have
enough spaces for visitors near to the entrance. Furthermore, employees must
have a good attitude to serve the customers. At last, employee must make sure
the food and beverage items in 7-Eleven are fresh.
Promotion
Even though 7-Eleven have a business website, 7-Eleven should
advertise through social network such as LinkedIn, Twitter, Magazine and

Television so that the consumers can know the promotion about the product of 7Eleven and how it could benefit the customer. 7-Evleven probably has some
awesome events or promotion, but nobody cares if customers dont have a
chance to know about it.
Process
7-Eleven must improve the efficiency of the CDCs, which are a vital part of
its business operations. CDCs are operated by several different third-party
partners. (MAYNARD, 2014) 7-Eleven should improve CDCs efficiency by
upgrade the process to computerize. 7-Eleven would reduce operating expenses
and better manage the daily delivery of fresh food products to the stores, a key
area of growing business for the company. Also, it would help to ensure accurate,
timely, damage-free product delivery and maintain low labor cost. Not only that,
7-Eleven should have a system for collecting and analyzing feedback from the
customers so that the ideas are fed into a new product development process that
is ongoing.

5) Summary
7-Eleven was founded by J. C. Thompson in 1927 as The Southland Ice
Company in Dallas, Texas, operating from 7 in the morning to 11 at night, seven
days a week. In 1946 the firm Tracey-Locke create '7-Eleven' to emphasize the
firm's commitment to long operating hours to serve customers better. The first 7Eleven store in Malaysia opened on 9 October 1984 in Jalan Bukit Bintang,
Kuala Lumpur. 7-Eleven Malaysia serves over 900,000 customers daily.
7-Eleven operating business with 24 hours. 7-Eleven convenience stores
offer a range of grocery and food items, beverages, confectioneries snack foods,
household good, publications, perishables and other foods. Not only that, 7Eleven offer services that are usually only available in more specialized store,
such as ATM, pre-paid mobile phone reload, fax, photocopying services. 7Eleven convenience stores are commonly located at high-traffic and easily
accessible sites which is alongside busy roads, highway rest stops, petrol
stations, transportation hubs and shopping centers. This makes it easy and
convenient for customer to visit the stores. Customer can purchase food and
drink easily whenever customer needs. 7-Eleven Malaysia promoted every
month such as contest and promote certain products. Pick certain products
reduce the price and promote for 1 month or 2 month period. Each month
promotes 7-Eleven retails websites like own 7-Eleven websites, Facebook and
through newsletter. In order to satisfying customer, 7-Eleven stores continuously
employ and trains staff via its new Employee Training Program and Store
Manager Training Program. Further, 7-Eleven stores send their orders for goods
to a Business to Business vendor, which is simultaneously notified to 7-Elevens
head office and the CDC. The Business to Business vendor aggregates orders
from individual 7-Eleven convenience stores, and places orders to good vendors.
7-Eleven is expending food service offering at 7-Eleven convenience stores by
offering new premium fresh food and beverage items to customers.

7-Eleven retails plans to work closely with fresh food manufacturers that are
located close to 7-Eleven convenience stores to supply freshly prepared food
items, including local specialties, for sale at 7-eleven convenience stores.

For improvements of the marketing mix of 7-Eleven, 7-Eleven need to

increase more brands of an item and the menu of quick breakfast to satisfying
customers needs and wants. Furthermore, 7-Eleven should lower down the
selling price to reasonable price so that the customer willing to buy. Not only that,
lower down the selling price to reasonable price also can increase the sales
maximizing the profit of the company. Other than that, 7-Eleven should provide
professional training for the employees of the 7-Eleven to become friendly
employees, courteous employees, knowledgeable employees, helpful employees
to increase the customer service. Employer of 7-Eleven must make sure the
hairdressing of employee is tidy and the window or floor is clean. Also, ensure
that the 7-Eleven stores have enough spaces for visitors near to the entrance
and the food and beverage items in 7-Eleven are fresh. Moreover, 7-Eleven
should advertise through others social network such as LinkedIn, Twitter,
Magazine and Television so that the consumers can know the promotion about
the product of 7-Eleven and how it could benefit the customer. Besides that, 7Eleven should improve CDCs efficiency by upgrade the process to computerize.
7-Eleven would reduce operating expenses and better manage the daily delivery
of fresh food products to the stores. 7-Eleven should have a system for collecting
and analyzing feedback from the customers so that the ideas are fed into a new
product development process that is ongoing. Lastly, 7-Eleven should increase
the number of stores or outlets all over the country.

Reference
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7-Eleven. (2010) History of 7-Eleven. [Online] Available from:

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SEPT 2014]
7-Eleven. (2010) Where it All Began [Online] Available from: http://franchise.7eleven.com/franchise/history [Accessed 20 SEPT 2014]
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MAYNARD. (2014) 7-Eleven Case Study. [Online] Available from:

http://www.hbmaynard.com/CaseStudies/2004/SevenEleven07-22-04.asp
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