This document analyzes and compares two convenience store brands, 7-11 and Ministop. It observes their mission/vision, locations, customers, and operations. Key findings are that customer demographics and product offerings are similar between brands. The most important factors are location near foot traffic and good customer service. The document concludes convenience stores should focus on speed of service, price competitiveness, and adding delivery options to enhance convenience.
2. MISSION
7-11 MINISTOP
Is to be your convenient We realize a society full of
neighborhood store. beaming smiles with
“deliciousness” and
“convenience”.
3. VISION
7-11 MINISTOP
To be the best retailer of To be the leader in the
convenience. convenience store
industry, preferred by
customers in terms of
assortment, price and
quality of products and
value-added service.
4. OBSERVED BRANCES
7-11 MINISTOP
•G/F BSA Tower •G/F Prince Plaza II
Condominium, Legaspi St. Condominium, Legaspi St.,
Makati City Makati City
•Tandang Sora along •EDSA Northbound cor.
Commonwealth Highway Corregidor Rd.
•Mindanao Ave. cor
Tandang Sora
•Mindanao Ave. cor. Quirino
Ave.
6. METHODOLOGY
• The analysis was mainly conducted through
observation.
• Each branch was observed 2x (peak hours and
slack hours) with 1 hour per observation
period.
• Observation Period: April 27 – May 3, 2012
• Branches were differentiated between those
with Makati against those outside of Makati.
7. ON CUSTOMERS
7-11 MINISTOP
•Age is between 16 – 40 years •Age is between 20 – 40 years
old old
•Both male and female on •Both male and female on
equal distribution equal distribution
•Usually buys specialty foods •Usually buys specialty foods
such as slurpee, hotdogs as such as the kariman and
well as cellphone load chicken meals as well as
•Stays for as short as 1 minute consumer goods
to as long as 20 minutes •Stays for as a short 5 minutes
to as long as 20 minutes
8. ON CUSTOMERS
7-11 MINISTOP
•Composed of office •Composed of office
employees, condominium employees, condominium
tenants and their household tenants and their household
help, students from help, students from
elementary to college, elementary to college,
passersby specially commuters passersby specially commuters
and families living nearby the and families living nearby the
branch branch
9. ON CUSTOMERS
7-11 MINISTOP
•Peak hours of customers vary •Peak hours of customers vary
from store-to-store. Those in from store-to-store. Those in
Makati area have early Makati area have early
morning and lunch as peak morning and lunch as peak
hours. Those outside Makati hours. Those outside Makati
have morning and early have morning and early
evening as peak hours. evening as peak hours.
•2-5 customers arrive during •2-5 customers arrive during
peak hours peak hours
•Arrive and leave •Arrive and leave
10.
11. ON LOCATION
7-11 MINISTOP
•15 to 20 passers-by per •15 to 20 passers-by per
minute during peak hours, minute during peak hours,
about 3 to 7 passers-by per about 3 to 7 passers-by per
minutes during slack hours minutes during slack hours
•Near establishments such as •Near establishments such as
beauty salons, schools, police beauty salons, schools, police
station and even fastfood station and even fastfood
chains chains
•Near residential areas such as •Near residential areas such as
condominiums and condominiums and
subdivisions subdivisions
12. ON LOCATION
7-11 MINISTOP
•Near a loading zone, •Near a loading zone,
stoplight, bridge crossing stoplight, bridge crossing
•Usually located in an •Usually located in an
intersection intersection
•Passers-by are always “on the •Passers-by are always “on the
go” and rushing either to go to go” and rushing either to go to
their offices or to their homes their offices or to their homes
13.
14. ON THE ESTABLISHMENT
7-11 MINISTOP
•Products include fresh fruits, •Products include fresh fruits,
packed meals and consumer packed meals and consumer
goods, household cleaning goods, household cleaning
items, food items and items, food items and
beverages, cigarettes, beverages, cigarettes,
newspapers and magazines newspapers and magazines
•Prices are slightly higher •Prices are comparable to
(PHP1-2 difference) compared regular retail (supermarket)
to regular retail (supermarket)
15. ON THE ESTABLISHMENT
7-11 MINISTOP
•2 cashiers open during peak •2 cashiers open during peak
hours, 1 cashier open during hours, 1 cashier open during
slack hours slack hours
•Can serve 4 – 10 customers •Can serve 4 – 10 customers
per minute during peak hours, per minute during peak hours,
while 2 – 5 customers can be while 2 – 5 customers can be
served during slack hours served during slack hours
•Cleanliness is from good to •Cleanliness is from moderate
excellent to good
16. ON THE ESTABLISHMENT
7-11 MINISTOP
•No restroom •No restroom
•Has long tables with 4 to 5 •Has 3 tables with 4 chairs
chairs or two small tables with each
4 chairs each •Cashiers do not speak much
•Cashiers would notice if a and thus, not much upselling is
customer is not being happening
attended
•Very good at upselling
additional products
17. ON THE ESTABLISHMENT
7-11 MINISTOP
•Staff assigned on the Makati •Staff assigned on the Makati
branch were much more branch were much more
courteous compared to those courteous compared to those
assigned outside of Makati assigned outside of Makati
18.
19. CONCLUSION
• In the convenience store industry, there is not
much difference between the customer make-
up and the establishment. Basically, what can
be found or observed on one will the same
finding or observation on another. Because of
this, there is no real market segmentation.
• What matters a lot are the location and the
customer service.
20. CONCLUSION
• Even stoplights and foot bridges are important
considerations in getting the location of a
convenience store. These landmarks ensure
that there is constant pedestrian traffic that
can potentially be customers to the
convenience store.
• Customer service greatly affects the
“convenience” that is being offered by the
store.
21. CONCLUSION
• In a convenience store, speed of service is
approximately equal to convenience. Thus,
increase in customer traffic should be
responded quickly. This is done by the
increase in number of cashiers during peak
hours.
• Price can also be a consideration. For
example, 7-11 is known to have higher prices
and thus, some potential customers prefer
other means to purchase what they need.
22. RECOMMENDATION
• To add more of the “convenience” in
convenience stores, they can adapt delivery of
purchases taken either online or over-the-
phone. For example, they can deliver the
purchases on nearby condos at a certain
minimum amount of purchase. This will
definitely add to the “convenience” that is
being promoted by this industry.