7-11

Topics: Fast casual restaurant, Marketing, Fast food restaurant Pages: 5 (1062 words) Published: October 5, 2013




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
reality
the
number
of
transactions
at
 the
pumps
would
increase
as
a
result
of
this
 deduction,
although
overall
profits
would
still
be
 less.

Using
gas
as
a
loss
leader
will
bring
more
 consumers
in,
who
now
have
more
disposable


income.
This
will
in
turn
lead
to
higher
sales
of
 merchandise
within
stores.
This
will
call
for
a
new
 Plano
gram,
calling
for
Fresh
foods
being
located
 closer
to
registers.
Those
buying
gas
may
not
walk
 through
the
store,
so
having
the
Fresh
foods
near
 the
register
will
increase
the
likelihood
that
 consumers
will
buy
it.

To
counter
the
worse
case
 scenario
of
this
nearly
$400
loss
on
gas,
in
store
 products
could
be
raised
by
slightly
(if
criteria
for
 success
are
not
initially
achieved).




These
three
things
will
help
us
reach
both

of
our
segments.
I
want
to
target
consumers
who
 are
on
the
go,
specifically
commuters,
with
the
gas
 pricing,
and
meal
deal.
I
want
to
use
the
mid
day
 coffee
pricing
to
target
those
who
could

potentially
enter
locations
later
on
in
the
day,
 specifically
the
elderly
and
stay
at
home
mom
and
 dads.



The
Execution
of
this
strategy
is
fairly

simply
on
the
gas
end;
consumers
watch
gas

prices
more
closely
than
anything
else.
The
Plano
 gram
movement
will
cost
no
more
$5,000
dollars
 per
store,
which
franchisees
will
be
expected
to
 pay.
This
will
allow
for
much
focus
to
be
spent
on
 advertisement
of
products,
and
new
products.
The








To
be
successful,
this
plan
has
two
criteria
for
 success.
The
first
Criteria
for
success
will
be
 regaining
the
6%
of
share
lost
in
Fresh
foods.
The
 second
Criteria
of
success
will
be
a
gain
of
overall
 market
share
in
The
QSR
industry.
The
industry
 generates
roughly
$20.4
billion
dollars
a
year
 (solely
QSR,
no
connivance
store/
gas
sales).

 





Appendix

Step
1:
Defining
Reference
Market





Step
2:
Macro‐Segmentation


Fruit


B2C


Sandwiches

Coffee

Smoothies/shakes




Appendix

Step
3:
Detecting
Variables
for
Macro‐segmentation
...

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.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • 7-11 Japan Essay
  • Own a 7-11 in Thailand Essay
  • 7 11 Retail Marketing Essay
  • 7 11 Case Answers Research Paper
  • 7 11 Supply Chain Analysis Essay
  • 7-11 background summary company analysis Essay
  • 7 Eleven Essay
  • 7 Eleven Essay

Become a StudyMode Member

Sign Up - It's Free