PRESENTED BY

GROUP-3
OVERVIEW:

1. BACKGROUND OF 7 ELEVEN
i. PRODUCTS AND SERVICES BY 7
ELEVEN
ii. MARKETING STRATEGY OF 7 ELEVEN
1. IMPLEMENTATION OF IT
2. MIS AS JIT (JUST IN TIME)
3. MIS AND DSS AS QUALITY CONTROL
4. REVISION OF A FEW CONCEPTS
5. QUESTIONS FOR DISCUSSION
6. CONCLUSION AND LEARNINGS
THE BACKGROUND:
• 7-Eleven, Inc. was founded in Dallas, Texas in 1927
• 7-Eleven, Inc. is the world's largest operator, franchisor and licensor of convenience stores
with more than 24,000 units worldwide.
• The company name was changed from “The Southland Corporation” after approval by
shareholders in 1999.
• IYG Holding Company, a wholly owned subsidiary of Ito-Yokado Co., Ltd., and Seven-
Eleven Japan Co., Ltd., has owned a majority interest in 7-Eleven, Inc. since 1991. Seven-
Eleven Japan operates more than 9,400 7-Eleven stores in Japan and Hawaii under an area
license agreement with 7-Eleven, Inc. 7-Eleven, Inc. stock is traded publicly on NYSE under
the symbol SE.
• 7-Eleven purchases a wide variety of goods and services on the local, regional and national
level. They are not a manufacturer, so every item we sell in our stores and all goods and
services we use in day-to-day business operations must be supplied by vendors.
• 7-Eleven has been the leader in franchising and licensing in the convenience store industry for
46 years. The company entered franchising in 1964, signed its first United States area
licensing agreement in 1968, and signed the first international licensing agreement with
Mexico in 1971.
• OPERATING IN Australia, Japan, Taiwan, Malaysia, Philippines, Singapore, South Korea,
Thailand, China, Hong Kong, Macau, Scandinavia, United States, Canada AND Mexico.
 PRODUCTS AND SERVICES:
1. Among 7-Eleven's offerings are private label products, including Slurpee, a partially frozen soft
drink introduced in 1967.

2. Big Gulp introduced in 1980 that packaged soft drinks in large cups ranging in size from 20 to
64 US fluid ounces (0.59 to 1.9 liters)

3. Citgo, the gas brand sold at many locations up until 2006; as well as Chief Auto Parts, which
had locations adjacent to or near several 7-Eleven locations.
 PRODUCTS AND SERVICES:
4. They bought White Hen Inc. on August 10, 2006, mostly in or around the Chicago area, and
plans to convert all of the remaining White Hens to 7-Eleven stores

5. Since 2005, the company has offered 7-Eleven Speak Out Wireless, a prepaid phone service
where a cellphone can be purchased directly from a 7-Eleven store in the US and Canada and
activated on the spot.

6. On November 3, 2009 that it was releasing two low-priced proprietary wines in the United
States and Japan (under the "Yosemite Road" brand)
MARKETING STRATEGIES OF 7 11:
1. July 11 is marketed as "7-11 Day" in the USA, during which participating 7-Eleven stores offer up
to 1,000 customers a free Slurpee of their choice of 7.11 oz.
2. 7 Eleven Cycling Team is an early example of their sports marketing. The 7-Eleven Cycling
Team, later the Motorola Cycling Team, was a professional team founded in the U.S. in 1981
under Jim Ochowicz, a former U.S. Olympic cyclist. The team lasted 16 years under banner of 7
11.
3. Since the 2007, 7-Eleven began a promotional partnership with the Chicago White Sox to begin
home night games at 7:11 PM.
4. In anticipation for the July 2007 release of The Simpsons Movie, 7-Eleven turned 12 of its North
American stores into Kwik E Mart. many regular items, such as coffee and sandwiches, had
special Simpsons-themed wrapping and packages. As part of the movie promotion, 7-Eleven held
Simpsons contests as well, which one entered by buying certain products in 7-Eleven stores.
This promotion turned out to be a huge success for 7-Eleven, with Simpsons fans driving as far
as hundreds of miles to buy the special themed merchandise.
It also resulted in a 30% increase in profits for the converted 7-Elevens.
 IMPLEMENTATION OF IT:
1. Year 2004 7-Eleven installed HP servers and networking switches in all US stores for
implementation of RIS (Retail Information system) .
2. This system collect data from point of sales terminals in every store and transmit the
same to central database.
3. 7 T.B Oracle Database is managed by EDS to store 6 Million US customers
transactions every day across country.
4. Analysis of above database to help understanding of
 Customer Demand
 Pricing of each product
 Interest in new product
 Which items are selling in which store
 Seasonal demand of item ,
 which items are most profitable etc .
IMPLEMENTATION OF IT:
Use of IT Management help in
1. Understanding of sales trend
2. Improve product assortment
3. Eliminate slow moving product from inventory.
4. Increase same sale by stocking products that are high in Demand
5. Develop New product according to Customer needs (i.e fresh food)
6. Help to determine which item to order exact quantity for each store.
7. System consolidate the order and transmit to same to Suppliers .
8. Use of this system to get information for customer choice and Preferences.
MIS AS JIT:
• Inventory arrives at stores just as it is needed, a minimum inventory is kept on the
shelves.
• It reduces the cost of investing in and keeping inventory, as well as the cost of
spoilage, they seldom run out of stock.
• Most stores have arrangements with their suppliers for quick delivery of products they
sell, and so they do not need large inventories.

Other uses of the information system are :

1. Electronically transmit orders to distribution centers and manufacturers (via satellite),

2. Determine which products to keep in each store (70 percent of the products are
replaced each year),
3. Determine how much shelf space to allocate to each product.
4. Track employee performance (for rewarding high performers).
MIS AND DSS AS QUALITY CONTROL:

1. The company maintains a high level of quality.

2. A team of 200 inspectors visits 7-Eleven stores regularly. Even the company’s president
occasionally drops into stores incognito to check quality.
3. Quality control data are collected and analyzed continuously by a computerized decision
support system at headquarters.
4. Brands that do not meet strict quality requirements are immediately discontinued.
5. Quality is extremely important in USA, where fresh hot meals are sold at convenience
stores
BEFORE WE PROCEED….. A FEW CONCEPTS TO
REVISE
Response Strategy(Porter)
Response Strategy (Porter and others)
 Porter’s Model in Action
Potential New Entrants

•Foreign general merchandiser and

distributer
•Established retailer shifting strategy
to discounting and megastores

Bargaining power of Bargaining Power of

Suppliers Intra industry Buyer
•US Product Manufactures Rivalry •Consumer in small Town USA
•Foreign Manufactures •Consumer in Metropolitan in USA
•IT Product and service suppliers •Canadian and American
•Business Partners •Wal-Mart
Consumers
•Other foreign Consumers
•Corporate buyers
Substitute Product and
services
•Home shopping network (TV)
•Electronic shopping (Internet)
•Telemarketing
•Purchasing Clubs
•Door to door sales
Porter’s Value Chain Model
Administration and management electronic scheduling and
messaging system

Human resource work force planning system

Technology computer aided design systems

Procurement computerized ordering system

Firms value chain
model
Inbound Operations Sales and services Outbound
logistic Marketing Logistic

Automated Computer Computerize Equipment Automated

warehousin controller d ordering maintain Shipment
machining
g system system ance system scheduling
system
systems
SOME QUESTIONS TO DISCUSS:

WHAT ARE THE BENEFITS OF RETAIL INFORMATION SYSTEM OF 7-11 ?

1. The store can keep record of the daily transactions and saves data in database(EDS).
2. Analyzes information from above, about customer demand, pricing of products and
customer’s interest in new products and identifies fast selling items / seasonal items /
not-so-profitable items.
3. Managers can identify sales trends, improve products, eliminate slow moving products
from inventory, increase same store sales by stocking products of high demand.
4. Store managers get information of weekly/daily/monthly sales to determine which item
to order and exact quantity to need for their stores.
5. Above info + OTS knowledge of neighborhood  Final Ordering Decision
SOME QUESTIONS TO DISCUSS:

WHY KNOWING THE CUSTOMER IS IMPORTANT FOR 7-11 ?

To check the other way round technically … What is CRM and why it is important ?
Goals of a Customer Relationship Management Plan
1. Increase customer retention and company profits.
2. Better serve the customer and increase competitive advantage.
3. Build and maintain a relationship with your customers, so that you know their current
and future needs and can incorporate trends into your strategy.
4. Manage customers through the sales pipeline by creating a relationship.

Moreover …. “Studies consistently show that it costs 8 times more to cultivate a new customer than
to keep an existing one.”

7 Eleven is a retail outlet – CUSTOMER IS GOD !

SOME QUESTIONS TO DISCUSS:
IN TERMS OF PORTER’S MODEL , WHAT
STRATEGIC FORCES DOES THE RIS SEEKS TO
ADDRESS?
Bargaining Power of supplier

 In order to counter Bargaining power of supplier , company need

to supply from multiple supplier and different products as for as
certain product specification are meet .
 In 7- Eleven Product as to meet quality specification and deliver
JIT and therefore the force of suppliers are decreased .

Substitute Products and services

 This can be encounter by innovative approaches with the help of

IT
 In case of 7-Eleven the IS supported the creation of new innovative
products and services , that no other retail company offer at that
time.
SOME QUESTIONS TO DISCUSS:

WHICH OF THE STRATEGY DESCRIBED IN THE

CHAPTER DOES TO THE RIS SUPPORTS?

• Cost leader ship- Providing products and service at lower cost in

the industry (JIT )

• Product differentiation- Being unique in the industry

• Customer focus- Selecting niche market and achieving cost leader

ship and product differentiation , taking customer taste ,choices
and preferences .
SOME QUESTIONS TO DISCUSS:
SOME QUESTIONS TO DISCUSS:
Referring to Porter’s 5 forces model …
SOME QUESTIONS TO DISCUSS:
Referring to Porter’s value chain model …
SOME QUESTIONS TO DISCUSS:
Referring to Porter’s 5 forces model …
CONCLUSION & LEARNINGS: