Bachelor of Science in Business Administration Major in Marketing

7-ELEVEN
A Company Case Study

Presented to:
Mrs. Elisa D. Arpilleda

In Partial Fulfillment of the Requirements

for the Subject Marketing
Research
(MMgmt.2)

Submitted by:
Cris Jacob C. Inumerable
Hazel O. Panelo

Date Submitted:
September 14, 2015
Chapter 1
 General Profile of the Company
Historical Background
7-Eleven is the world’s largest convenience store chain operating,
franchising and licensing more than 56,400 stores in 18 countries, of which
nearly 10,500 are in North America. 7-Eleven also is one of the nation's largest
independent gasoline retailers. Its company’s name was changed from The
Southland Corporation to 7-Eleven, Inc. after approval by shareholders on
April 28, 1999.
Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience
store concept during its first years of operation as an ice company when its
retail outlets began selling milk, bread and eggs as a convenience to guests.
The name 7-Eleven originated in 1946 when the stores were open from 7
a.m. to 11 p.m. Today, offering busy shoppers 24-hour convenience, seven
days a week is the cornerstone of 7-Eleven's business.
7-Eleven focuses on meeting the needs of convenience-oriented guests by
providing a broad selection of fresh, high-quality products and services at
everyday fair prices, speedy transactions and a clean, friendly shopping
environment.
Each store's selection of about 2,500 different products and services is
tailored to meet the needs and preferences of local guests. Stores typically vary
in size from 2,400 to 3,000 square feet and are most often located on corners
for great visibility and easy access.
Well known for the Big Gulp fountain soft drink, Big Bite grill items,
the beverage and its fresh-brewed coffee, 7-Eleven’s food service offerings bring
guests a proprietary line of prepared-fresh-daily and daily delivered deli
sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads
and baked goods.
7-Eleven offers consumers a number of convenient services designed to
meet the specific needs of individual neighborhoods, including automated
money orders, automatic teller machines, phone cards and, where available,
lottery tickets.
The company operates, franchises and licenses approximately 8,600
stores in the U.S. and Canada. Of the close to 7,800 stores the company
operates and franchises in the United States, more than 6,400 are franchised.
Outside of the U.S. and Canada, there are more than 47,800 7-Eleven
and other convenience stores in Japan, Taiwan, Thailand, South Korea, China,
Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway,
Sweden and Denmark. 7-Eleven has announced plans to open stores in the
United Arab Emirates and Vietnam.
7-Eleven, Inc. is privately held and became a wholly owned subsidiary of 7-
Eleven Japan Co., Ltd. in Tokyo, Japan, and its affiliates on Nov. 9, 2005.
In the Philippines, 7-Eleven is run by the Philippine Seven Corporation
(PSC). Its first store, located in Quezon City, opened in 1984. In 2000,
President Chain Store Corporation (PCSC) of Taiwan, also a licensee of 7-
Eleven, purchased the majority shares of PSC and thus formed a strategic
alliance for the convenience store industry within the area. Now 7-Eleven
abounds within the many islands of the Philippines with 1400 stores in urban
areas nationwide.
Company VGMO
MISSION
At 7-Eleven we are on a mission to make life a little easier for our guest.

VISION
Our vision is to be the best retailer of convenience.
OBJECTIVES 
In order for 7-Eleven convenience stores to maintain its leadership in the
market of Hong Kong, an improvement plan should be conducted in the human
resource development of the organization. The company should undergo a
series of reorganizations. The company should work on downsizing.
Performance-based development strategy is the appropriate strategy to use to
increase the organization, the team and the individual to be more efficient and
effective.
It is a strategy that focuses obsessively on bridging the gap between
anticipated and actual business results. The HRD should be the major driver
in scoring their improvements. 7-Eleven should take an effort to fundamentally
alter the way performance of the organization’s performance.
            7-Eleven currently is the market leader in the convenience store over
its close competitor which is the Circle K. To maintain this market rank, 7-
Eleven should redefine the organization. In order to this, objectives are
identified.
 
Objectives:
1. To ensure that people across the organization understand its vision
2. Create a work environment in which it is possible to pursue this vision
3. Coach people on how to collaborate effectively within their own units and
across business lines
4. Improve the problem solving and decision making abilities of individuals
and teams
5. To develop processes for streamlining operations, rebuilding teams and
opening new lines of communication
6. To remove organizational barriers that hindered productivity and
profitability
7. To increase trust between the people in the organization
Organizational Structure

Company Product

Product

 Food Items
 Hot Food
 Big Bite
 Pizza
 Siopao
 Hotdog
 Siomai
 Fresh Food
 Sandwich
 Salad
 Fruits
  Off the Shelf
 Candy
 Chips
 Snacks
 Frozen
 Beverages
 Cold
 Big Gulp
 Iced coffee
 Slurpee
 From the fridge
 Juice
 Milk
 Soft Drinks
 Sports & Energy
 Water
 Hot
 7-Eleven Coffee
 War Temp Items
 Box Lunch
 Rice balls
 Fresh bread
 Frozen Items
 Ice cream
 Ice cube etc.
 Room Temp Items
 Canned food
 Instant noodles etc.
 Magazines
 Soaps, Detergents etc.
  Game, Software

Chapter 2
Marketing Management
7-Eleven uses 4P’s of marketing mix such as:
 Product
 Price
 Place
 Promotion
Product Strategies
Every day, products available only at 7-Eleven bring millions of loyal
customers through franchises’ doors. A leader in bringing fresh items into the
convenience space, 7-Eleven delivers fresh sandwiches, salads, fruits and
pastries daily. 7-Eleven has a full line of 7-Select private label products, which
offer customers food items they love at low everyday prices. And of course, no
one can forget about 7-Eleven/s legendary, iconic products, like the Slurpee
drink, Big Gulp drink and famous coffee.
When buying products, 7-Eleven aims to:
 Be the first to have great new items
 Get the best products in the category
 Be the only retailer to carry certain products
7-Eleven has new introduction weekly, and continuously reinvests in product
development.
Vast Buying Power, Great Margins
7-Eleven buys for more than 1,500 stores here in the Philippines alone. This
buying power helps 7-Eleven negotiable favorable pricing and terms that left
franchises offer products to customers at great prices while retaining maximum
profit margins.
Consolidated Distribution and Daily Delivery
7-Eleven works with vendors across the globe to find the products that
customers will love. In order to ensure that dynamic 7-Eleven product mix is a
true asset to franchises, 7-Eleven has created centralized consolidation
centers, so that all the products franchises need arrive in a single daily.
Pricing Strategies
Convenient stores compete with each other in coffee price, fountain
drinks price, and other private-owned products price. Price for items that the
stores buy from vendors are not significantly different. Due to it is the
company, 7-eleven prices its private label products relatively high compare to
other convenient stores. In addition, the company has the potential to set high
price for the items that other convenient stores do not carry.
Placement Strategies
7-Eleven pioneered the convenience store in 1927 at Southland Ice
Company in Dallas, Texas. In 1954, the company opened a store outside of the
state of Texas, 7-Eleven the expanded internationally when it opened stores in
Mexico in 1971. In the same year, the company targeted England and Scotland
as its first entry in European market. Three years later, 7-Eleven opened the
first store in Japan. Then after years of growing its stores internationally, 7-
Eleven international open its 25,000 store in 2006. In 2009, 7-Eleven has more
than 35,000 stores in at least 18 countries worldwide, with its largest market
in Japan, the United States, Canada, Philippines, Hong Kong, Taiwan, and
Thailand.
Promotion Strategies
The company introduced Tote’m store in 1927 and begun selling gasoline
the next year. Then 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 store.
The 7-Eleven first campaign in 1969, the campaign was and quot. In almost 30
years, 7-Eleven focused developing its new products and services such as ATM,
Slurpee, Deli Central, World Ovens, Café Select, Gulp, Domo. Slurpee is one of
customer’s favorite beverages. It is a slushy carbonated frozen drink that
serves at 28 degrees. Recently, 7-Eleven started to add a bonus for everyone
entering the 7-Eleven Day instant win game on the Slurpee website.
 In addition, 7-Eleven made collectible slurpee cups and slurpee straws
featuring Domo and quot the fruzzy brown creature with a trademark
enigmatic open-mouth expression that is taking 7-Eleven store by storm this
fall and quot.
7-Eleven also Domo-nized its food and beverages, such as the Big Bite
and hot dog, Energy drink. CEO Rich Collins of Big Tent Entertainment, the
marketing and licensing company for Domo, emended and quote because
Domo has such a hugely devoted, cut-like following among kids, teens and
young habits and quot. 7-Eleven doesn’t only drive sales with TV and radio
spots, billboards, websites and PR.
 CHAPTER 3
SWOT ANALYSIS
The Strength
The first strength in this company can be seen through the brand
recognition. 7-Eleven is one of the strong brands of convenient store in the
world. The big sign of 7 can be recognized from far away anywhere you go.
Next, 7-Eleven provides franchise system which make the business
expands faster. It allows local entrepreneur to own their outlets and make
profits. 7-Eleven can be considered as the largest player size and global reach.
Besides, the strength that 7-Eleven has is convenience. As the concept
itself is convenience. As the concept itself is convenience store, 7-Eleven can
easy to be approached or access by the customers. Located all over the
country, you can easily find the outlet by the alley or anywhere you are.
7-Eleven also carry its strength through the geographical presence. With
over 1,497 stores located all over the country, you can easily find the outlet by
the alley or anywhere you are. At the petrol station, shop lots and shopping
malls.
At last but not the least, 7-Eleven has goods marketing strategies. No
matter the where is the area, people know the logo “7” with orange, red, white
and green color. 7-Eleven provides everything that people needs when they feel
uneasy to go to supermarket or when in a emergency especially after 10 p.m.
which most of the supermarkets and shops already closed.
The Weaknesses
Like every other business, 7-Eleven also has its weaknesses. 7-Eleven
takes high margins which mean the items sell in the outlets are slightly
expensive compare to price in supermarket.
Besides, the weakness of 7-Eleven is because of high employee turnover
rate. Even 7-Eleven is well-known, many of the employees turn out the job as
working with 7-Eleven requires them to work in shift which is in the morning
or at night, Moreover, and 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.
Furthermore, the weakness has in 7-Eleven is limited assortment
offering. You might find the items you need but you can have only small
choices as 7-Eleven does not provides all the brands that people want.
On top of that, 7-Eleven is not a first choice for shoppers that make it
one of the weaknesses. For sure people will go to supermarkets or a bigger
store to buy groceries or any of the daily needs as they can have more choices
and stronger power of purchases.
The Opportunities
Like many other companies, 7-Eleven also has lot of opportunities. The
opportunity in this company is fresh food provided. Every morning, fresh meal
will be available at 7-Eleven stores for people to take away and get a quick
breakfast.
Next, the appearance of freebies and discounts is also opportunity in this
company. Discounts are gives depends on what its business partners offer.
Sometimes when it comes to certain seasons. 7-Eleven will has it own
attraction as it is giving out freebies to customer when they purchase certain
amount. It is because the new trend is increasing among the customers that
they want to use these freebies and discounts, even it is not what they need it
or whether they want to use these freebies after, they still want to have it.
 Besides, the opportunity in this company is not many convenient stores
open 24 hours a day and 7 days a week. Therefore, 7-Eleven is one of the
stores that people can stop by in the middle of the night only to get whatever
they need.
The Threats
The threat in this company is the intensity competitors. There are many
convenient store and other small-box retailers on the streets. In example, KK
Mart is of the convenience store that becomes well known to people nowadays.
As it is trying to increases the number of outlets, KK Mart also operates 24
hours a day and 7 days a week.
Next, the threat that may occur in this company is lot of QSR in the
market. As people knows there are lot of quick service restaurant or also
known as fast food chains such as McDonald, KFC and also Starbucks that
make people has lot of choices to get a quick breakfast to start a daily life.
Besides, higher shrinkage on fresh food could potentially impact
margins. Some people might think foods sell at 7-Eleven are not fresh as
sometimes foods are place in the oven. Lack of fresh food supplier also
becomes the factor for this threat.
 CHAPTER 4
RECOMMENDATION
To become a more desirable employer 7-Eleven should target to be a
better provider and increase the number of stores or outlets all over the
country. Besides, with the professional training provided, customer services
can be much better in order to build up strong connection between seller and
the buyers.
7-Eleven employees come from teenagers, although there is no
requirement for employees to be of this age. Therefore, with the fresh and
active workforce 7-Eleven can stay strong in the convenience store market.
7-Eleven benefits from paying minimum wage to employees but this
could be seen as exploitation. However, it is a good way to minimum the labor
cost low.
There are lot of changing in people’s lifestyle, therefore 7-Eleven should
keep updated and be the first one to provide the customer’s needs.
CONCLUSION:
Marketing strategies applied by 7-Eleven clearly gives the all the
information that is necessary for the growth and development of a business.
The strategies that are implemented by 7-Eleven consist many basic
essentials features like innovative ideas, market research, customer views,
forecasting consumers demand, organizing and planning.
In this modern world, the demand for goods such as groceries are
increasing at an alarming rate because it is a daily needs products that
customers will always buy and buy every day.
Most of the companies carry different types of marketing strategies in
order to serve their customers in a more efficient and better ways than their
competitors as they want their business to be stable in the market and can
survive for each such a long term.
REFERENCE
http://www.7-eleven.com.ph/products.php

https://www.7-eleven.com/Thirsty/Cold/

https://www.7-eleven.com/Thirsty/From-the-Fridge/

https://www.7-eleven.com/Thirsty/Hot-Drinks/

http://www.7-eleven.com.ph/about711.php?title=Organizational%20Chart

http://corp.7-eleven.com/corp/7-eleve n-profile

http://www.slideshare.net/cakirfrkn/7eleven-presentation

http://www.slideshare.net/cakirfrkn/7eleven-presentation

https://www.google.com/search?q=7-
eleven+products&biw=1440&bih=789&source=lnms&tbm=isch&sa=X&sqi=2&v
ed=0CAcQ_AUoAmoVChMIsM2zwK_mxwIVio6OCh3U6wlb
APPENDIX