7 eleven

3 7-Eleven Malaysia Sdn. Bhd.
Introduction
“Always there for you”
Nowadays, convenient store becomes the famous store to purchase daily
stocks such as groceries, snack foods, candies, toiletries, soft drinks, tobacco
products, and newspapers. The word ‘convenient’ itself, shows that the convenient
store concept is easy to be accessed by customer which it is different from
supermarket. People are getting busy in daily life with works and has no time to go to
supermarket everyday and that triggers them to approach the convenient store.
With many outlets and easy to access 24/7, 7-Eleven welcomes every
customer to get their daily needs. We are providing groceries, snack foods, candies,
instant foods, drinks, reading materials, and also services such as prepaid reload and
ATM service where customers can fulfill their daily needs even though they don’t
have time to shop.
All of our 1,497 stores are open 24 hours everyday out of 7 days in a week to
assure that customers can get anything they need anytime and anywhere.
We create a simple and convenient as an adjustment toward people’s lifestyle,
which is very mobile and active. With our motto, 7-Eleven will Always There For
You.

Company Description
History
Founded in 1927, 7-Eleven is known as The Southland Ice Company in Dallas,
Texas whom the founder is J. C. Thompson. It was started as an ice vendor which
eventually began offering milk, bread and eggs on Sundays and evenings when
grocery stores were closed. The idea managed to satisfy the customer and also
increased sales of the company. (7-Eleven Malaysia Sdn. Bhd., 2010)
The first company’s convenient outlets were known as Tote’m stores which
named since customers ‘toted’ away their purchases. It became 7-Eleven when
the stores extended its business hours from 7 a.m. until 11 p.m. and open seven
days a week. The company’s corporate name was changed from The Southland
Corporation to 7-Eleven, Inc. in 1999. (7-Eleven Malaysia Sdn. Bhd., 2010)
Company’s Profile
7-Eleven Malaysia Sdn. Bhd. is the owner and operator of 7-Eleven stores in
Malaysia. 7-Eleven has been a prominent icon for over 28 years. 7-Eleven is the
pioneer and the largest 24-hours convenience store operator in Malaysia. (7-Eleven
Malaysia Sdn. Bhd., 2010)
7-Eleven opened its door to local entrepreneurs through its unique franchising
program in 2009 upon achieving its 1,000 mark in stores network. 7-Eleven is the first
franchisor in the local market offers existing profit-making stores to franchisees. (7-
Eleven Malaysia Sdn. Bhd., 2010)
7-Eleven Malaysia Sdn. Bhd. has 1,497 stores nationwide which serves over 800,
000 customers daily. 7-Eleven can easily be found across bustling commercial
districts to serene suburban residential compounds throughout Malaysia, from petrol
stations and LRT stations to shopping malls and medical institutions. 7-Eleven use its
unique motto which is Always There For You. (7-Eleven Malaysia Sdn. Bhd., 2010)
Vision
To be the best retailer of convenience (7-Eleven Malaysia Sdn. Bhd., 2010)
Mission
To consistently serve the changing needs of customers for their convenience (7-
Eleven Malaysia Sdn. Bhd., 2010)

SWOT Analysis
The Strength:
The first strength in this company can be seen through the brand recognition.
7-Eleven is one of the strong brand of convenient store in the world. The big sign of 7
can be recognize from far away anywhere you go. (Paradise, 2014)
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 in size and global reach. (Paradise, 2014)
Besides, the strength that 7-Eleven has 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. (Paradise, 2014)
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 stations, shop lots, in shopping malls and also in the
centre of busiest place in town. (Paradise, 2014)
At last but not least, 7-Eleven has goods marketing strategies. No matter the
where is the area, people knows the logo ‘7’ with orange, red, white and green colour.
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. (Paradise, 2014)

The Weakness:
Like every other businesses, 7-Eleven also has its weaknesses. 7-Eleven takes
high margins which means the items sell in the outlets are slightly expensive compare
to price in supermarket. (Paradise, 2014)
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, 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. (Paradise, 2014)
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. (Paradise, 2014)
On top of that, 7-Eleven is not a first choice for shoppers that makes 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. (Paradise, 2014)

The Opportunities:
Like many others 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 store for people to take away and get a quick breakfast.
(Paradise, 2014)
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 like 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. (Paradise, 2014)
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 store that people
can stop by in the middle of the night only to get whatever they need. (Paradise, 2014)

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
one of the convenience store that becomes well known to people nowadays. As it is
trying to increases the numbers of outlets, KK Mart also operates 24 hours a day and
7 days a week. (Paradise, 2014)
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. (Paradise, 2014)
Besides, higher shrinkage on fresh food could potentially impact margins.
Some people might think the 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. (Paradise, 2014)

THE SEGMENTATION AND TARGETING
Market segmentation is a marketing strategy that involves dividing the single
market into smaller segments. The reason for dividing the market into smaller
segments is to make it easier as they are divided to small groups of customers based
on the criteria such as age and gender, or other distinctions, like location or income
and try to produce different products according to their needs.
7-Eleven uses demographic segmentation strategy with age as the parameter.
The main target segments are adults and youth. They also target mainly the working
people or family whom have no time to go to supermarket to buy groceries. They take
children into consideration because the children are more attract to the freebies and
candies. The youth also prefer convenient store to get their prepaid reload or
withdraw money. The busy kind of people choose 7-Eleven because it is convenient
to get anything and also it is easy to find.
7eleven’s biggest target market is busy shopped at an everyday store. It has
tailored its products and services like speedy transaction to meet the needs of these
shoppers. The company’s other target markets are coffee the beverage lovers. That’s
why it has put much emphasis into making some of the finest fresh-brewed coffee,
sloppy and big gulp beverages which it is well known for around the world. The
company also offers smart snacks and to go meals to better target busy people in fast
paced cities or countries (itjhai, 2011)
Its customers mostly are male (60-70%) , age 18 to 44 years old . In addition the
company targets low income workers and students as their secondary market, which is
why 7-eleven opens 24 hours, provides games and fun at low prices. Thus the
company serves a more diverse market than most convenience stores. As for the
teenagers or students, they love the prepaid phone cards because they make them
more independent (itjhai, 2011).

COMPETITOR ANALYSIS:
99 Speedmart 7-Eleven KK Mart
Number of outlets
nationwide
450 Outlets
nationwide
1,497 Outlets nationwide 62 Outlets nationwide
Operating hours 10 a.m. - 10 p.m. 24 Hours 24 Hours
Products available Groceries & freshmart Groceries, fresh foods,
ATM and photocopying
services.
Groceries, fresh foods,
ATM and photocopying
services.
Benefits to customer Trolley provided Points by business partners None
Freebies and Discount None Freebies based on seasons
& Discount depends on
business partners
None
99 Speedmart is a rapid growing convenient store chain which was founded in
1987 by Mr. Lee Thiam Wah who is the director of the company itself. More than 450
outlets nationwide, 99 Speedmart keep expanding the business and also struggling to
be top in the market. 99 Speedmart also provides same product like 7-Eleven only
without services like ATM machine and also bills payment. 99 Speedmart provides
trolley services for its customers. (99 Speedmart, 2014)
While another competitor is KK Mart which is under KK Group founded in
year 2001, comes with the desire of becoming a household name throughout Malaysia
and beyond the shores. Founded by Dato’ Dr Chai Kee Kan also known as KK Chai,
KK Mart has over 62 outlets nationwide and keeps expanding. KK Mart also operates
24 hours everyday which make it a good competitor to 7-Eleven. (KK Group, 2014)
From the table above, we can compare how good is each of the convenient
store. 7-Eleven is considered as the best and stronger convenient store company in the
market. 7-Eleven has the most outlets nationwide which makes it is the easiest to find
by customers anywhere they are. Besides 7-Eleven operates 24 hours which in case of

emergency it can be very useful to customers. Futhermore, 7-Eleven sells products
and even services which make it has lot of variety to customers. Even when customers
purchase products at 7-Eleven, they can get points when they are the member of 7-
Eleven’s business partners. Lastly, 7-Eleven do provides discounts and freebies based
on offerings and seasons.

MARKETING STRATEGIES OF 7-ELEVEN
Business Strategy
Franchise Model – As per franchise model of 7-Eleven, it allows local entrepreneurs
to invest and makes the business expand faster. The company monitors all the
framework of its franchises to ensure that they always provide good quality service,
cleanliness, and value for the money offered by the company to its customers.
National Marketing and Advertising Initiatives
7-Eleven doesn’t only drive sales with TV and radio spots, billboards, websites and
PR. Check out the Advertising Gallery below!
Local Marketing Support
7-Eleven provides a full range of local marketing support services and materials so
that franchisees can get the word out about store products and promotions efficiently:
 Grand Opening packages
 Bilingual support
 Customized point-of-purchase materials
 In-store signage
 and much more!

MARKETING MIX:
 Marketing mix means focus on the product, pricing, placement, and
promotion.
 Marketing strategies consist customer orientation, input, and accessibility in
the struggle to the be the leader of the market.
 After the business manage to find the key factor, analyzed the market, target
segment and understanding the demands, every business or every company
needs to come up with formula to accelerate the growth and progress of the
company.
 For which 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 franchisees’ doors. A leader in bringing fresh items into the
convenience space, 7-Eleven delivers fresh sandwiches, salads, fruits and
pastries daily. 7-Eleven also 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 item introductions weekly, and continuously reinvests in product
development.
Vast Buying Power, Great Margins
7-Eleven buys for more than 6,700 stores in the U.S. alone. This buying power helps
7-Eleven negotiate favorable pricing and terms that let franchisees 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 the dynamic 7-Eleven product mix is a true asset to
franchisees, 7-Eleven has created centralized consolidation centers, so that all the
products franchisees need arrive in a single daily delivery.

Pricing Strategies:
Convenient stores compete with each other in coffee price, fountain drinks
price, and other private-owned products price. Prices for items that the stores buy
from vendors are not significantly different. Due to it is the top 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 (Itjhai, 2011).

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 then 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 25,000th
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 (Itjhai, 2011)

Promotion Strategy:
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 & 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 (Itjhai, 2011)
Recently, 7-Eleven started to add a bonus for everyone entering the 7-Eleven Day
instant win game on the Slurpee website. After entering the instant win game, they
will receive a code and website link to purchase $7.11 lawn tickets for concerts at
select Live Nation venues across the country. In addition, 7-Eleven made collectible
slurpee cups and slurpee straws featuring Domo & quot the fuzzy brown creature with
a trademark enigmatic open-mouth expression that is taking 7-Eleven store by storm
this fall & quot. 7-elevent 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, cmmented & quot because Domo has
such a hugely devoted, cult-like following among kids, teens and young adults, we
believe he’s a perfect match for 7-Eleven and its iconic Slurpee brand & quot (Itjhai,
2011).

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, customers 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 everyday.
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 such a long
term.

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 maintain 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 customers needs.

References
7-Eleven Malaysia Sdn. Bhd., 2010. Company Factsheet. [Online]
Available at: http://www.7eleven.com.my/html/default.aspx?ID=2&PID=12
[Accessed 18 May 2014].
99 Speedmart, 2014. Our History. [Online]
Available at: http://www.99speedmart.com.my/history.htm
KK Group, 2014. KK Group of Companies. [Online]
Available at: http://kkgroup.my/KKGroup/
Paradise, M., 2014. SWOT Analysis on 7-Elevenn. [Online]
Available at: http://www.managementparadise.com/forums/principles-
management-p-o-m/208076-swot-analysis-7-eleven.html

Group Members:
1) Muhammad Izzat Syahmi Bin Oh Eddy TP032332
2) Nur Syamim Binti Mohamad Kamal TP031454
3) Siti Rafizah Binti Ghazali TP031383
4) Izzah Binti Turijan TP031687
No. Tasks / Description / Responsibilities Names &
Signatures
1 Dividing the tasks, leader of the group and
responsible for research and providing
documentation and slides for the company profile,
SWOT analysis and competitors analysis.
2 Responsible for research and providing
documentation and slides for the segmentation and
marketing target.
3 Responsible for research and providing
documentation and slides for marketing strategies
and marketing mix.
4 Responsible to assist third member and also
providing documentation and slides for the
conclusion and recommendation.

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