7-11
Marketing
Problems
Midterm
Strategy 7‐Eleven is a gasoline service station, and considered a Quick service restaurant (QSR). The issue you face Mr. DePinto is in regards to the 6% loss of share in the fresh food categories, a category that has allowed 7‐Eleven to gain 39.5% margins. Fresh food sales have been around 50% of total sales. This, along with research, shows that consumers want fresh, natural ingredients. To help the company grow share in the fresh food category, I have come up with a strategy that will be tested in the 250+ stores within the South
Florida market. This test market is ideal because it mirrors the national market for urban stores.
new product I am suggesting is an all in one lunch aimed primarily at the company’s fresh foods.
Consumers will be able to pick a sandwich, chips, and fresh desert priced at $7.11. This will save cost of packaging a new product, and allow for customization of the meal. Coffee will also be 11 cents less from 11 am to 7 pm to try and bring sales in through out the day. This reduction in pricing is represented in a dollar amount to help develop associations that will strengthen the brand. A social media ad campaign will also be implemented to help reduce costs, and help me reach my goal of growth of 3%.
My strategy has multiple parts. First, 7‐
Eleven locations should price gas 7 cents less than that of competitors. As of today gas prices in Palm
Beach County range from 3.83‐3.92 a gallon. A 7‐ cent reduction would mean 3.76 in the less expensive locations. The average mark up on gas over the last 5 years has been 15 cents (cost 3.68 a gallon for us). In 2009 the average gas station sold
4,000 gallons of fuel per day per day. At today’s price, that equals $600 a day per gallon. If the company takes 7 cents off price per gallon, gas sales would equal $280 a day, everything else held constant. In
Strategy 7‐Eleven is a gasoline service station, and considered a Quick service restaurant (QSR). The issue you face Mr. DePinto is in regards to the 6% loss of share in the fresh food categories, a category that has allowed 7‐Eleven to gain 39.5% margins. Fresh food sales have been around 50% of total sales. This, along with research, shows that consumers want fresh, natural ingredients. To help the company grow share in the fresh food category, I have come up with a strategy that will be tested in the 250+ stores within the South
Florida market. This test market is ideal because it mirrors the national market for urban stores.
new product I am suggesting is an all in one lunch aimed primarily at the company’s fresh foods.
Consumers will be able to pick a sandwich, chips, and fresh desert priced at $7.11. This will save cost of packaging a new product, and allow for customization of the meal. Coffee will also be 11 cents less from 11 am to 7 pm to try and bring sales in through out the day. This reduction in pricing is represented in a dollar amount to help develop associations that will strengthen the brand. A social media ad campaign will also be implemented to help reduce costs, and help me reach my goal of growth of 3%.
My strategy has multiple parts. First, 7‐
Eleven locations should price gas 7 cents less than that of competitors. As of today gas prices in Palm
Beach County range from 3.83‐3.92 a gallon. A 7‐ cent reduction would mean 3.76 in the less expensive locations. The average mark up on gas over the last 5 years has been 15 cents (cost 3.68 a gallon for us). In 2009 the average gas station sold
4,000 gallons of fuel per day per day. At today’s price, that equals $600 a day per gallon. If the company takes 7 cents off price per gallon, gas sales would equal $280 a day, everything else held constant. In
Cited: 27 Mar. 2012. . "Florida Gasoline Price Data." Fuel Economy. Web. 27 Mar. 2012. "How GasBuddy Works." Palm Bay Gas Prices. Web. 27 Mar. 2012. "List of Counties in Florida." Wikipedia. Wikimedia Foundation, 22 Mar. 2012. Web. 27 Mar. 2012. "Research." CRFA -. Web. 27 Mar. 2012. . "SIC to NAICS Cross Reference 2011 Version." NAICS Association. Web. 27 Mar. 2012.