GROUP 24
SUPERSTORE
23/8/2020
Table of Contents
INTRODUCTION .......................................................... 1
PROSPECTIVE SITES FOR THE STORE………….2
EXPANSION STRATEGIES ........................................ 3
CUSTOMER ACCUQUSITION STRATEGY ........... 4
STORE LAYOUT……………………………………5
MARKETING STRATEGIES………………………..6
SWOT ANALYSIS……………………………………7
ALLOCATION OF FUNDS…………………………8
INTRODUCTION
Seven-Eleven Japan Company was founded in the year 1973 and had its first store in Tokyo, and
by the year 2004, Ito-Yokado group owned the company and thus, managed successful
supermarkets in Japan and that, Seven-Eleven had realized unique growth in the business sector.
This report will be focusing and deal with several discussion and case analysis of Seven-Eleven
Japan Company within the rising truth of Seven-Eleven as a leading convenience store chain as it
can be within Japanese retail business functions. The critical analysis will incur as to how the
company does its business operation reflecting their supply chain management as well as upon
valuing their logistics into a more effective and reliable perspective. The understanding and
execution of supply chain process and outcomes have to be present and supply chain analysis of
Seven-Eleven is given more weight and value. The utilization of supply chain strategy of Seven-
Eleven and such performance drivers upon the balance nature business responsiveness and the
awareness of certain risks involved.
Extensive franchise network played a key role in the daily operations. With the help of franchise
network they:
✓ Boosted distribution efficiency
✓ Improved brand awareness
✓ Increased system efficiency
✓ Enhanced efficiency of franchise support services
✓ Improved advertising effectiveness
✓ Prevent competitors’ entrance into the dominant area
2
PROSPECTIVE SITES FOR THE STORE
the company classified different places in three broad categories such as growth markets,
leadership market and turnaround markets. with recent changes bought in by the FDI policies of
india the construction has reached a new height in terms of industrial projects. Hence we have
taken the most suitable place for the expansion which are:
• Bangalore
• Mumbai
• Delhi
We also tried to analyze the current market situation and its demand through the following :
• Buying power of buyers:
The bargaining power of consumers is high due to availability to wide choices. As more number
of stores are opening up we got to be crucial in terms of our launching and customers will be
more attracted towards us.
• Competitive rivalry:
There is high competition in the market. Company has to do a lot of marketing in terms of
branding and differentiating their products.
• Threats of new entrants:
It is difficult to get entry into such a market until the offerings are differentiated and can lead to
significant cost savings.
• Threat of substitutes:
As there are many players in the market, threat of substitutes is high. Every step we take and
regulate should be well planned before implementing them.
EXPANSION STRATEGIES:
• 24 HOURS STORE
The store would be running throughout the day and night with different shifts of employees,
through this customers could come in any time for purchase and make themselves comfortable in
shopping. This will ensure a continuous purchase from them also will be providing free parking
spaces and wireless connectivity for everyone.
• Market concentration
We would be having a cluster of 10 to 20 stores in a small geographic area supported by
distribution center. Through this method efficiency would increase regardless of global presence
and allows seven eleven to receive products in a cluster of stores as opposed to individual and
disseminated store. Within a market concentration tactics can devised in order to amplify every
ones profit by using economies of scale.
• PRODUCT SUPPLY AND DISTRBUTION
Seven eleven has stores across with world in over 71000 stores and more than 45000 employees
working. Our strategy was to focus on shareholder value by improving supply chain management
in the subsidiaries. For increased retail stores and asset productivity it planned to implement cost
structure in the coming expansions throughout India. We will focus on our working capital
management and introduce information technology in areas where required. Will often try to
implement new strategies through various offers and big bonanza sales to boost our top line
sales.
STORE LAYOUT:
Store layout needs to guide the customer silently about where he or she wants to go and for
exposing them to the entire store offerings. We have chose the grid layout system for out store.
• Cost efficient
• Easy to pick up things
• Checkout counter would be at the entrance for smooth flow of customer traffic.
• Employees kept at each stall
4
CUSTOMER ACCUQUSITION STRATEGY
Customer relationship activities have the most impact on customer retention. Every customer
service encounter has the potential to gain repeat business. Its said that successful CRM
implementation will allow our customer service, sales and marketing people to have a holistic
view of each and everyone.
• Customer satisfaction is our top priority:
We at seven eleven don’t just focus on sales, we create customers and make them satisfied.
In addition to the immediate profit they made they provide on the first scale, as satisfied
customers will help us build our business. They become a reservoir of repeat buyers and they
automatically refer more business to you from their friends and business contacts.
• Whatever seven eleven promise more, they deliver:
We have to make sure that we don’t make any promises that we cant keep. Always try
exceeding customer expectations. It also makes it difficult for competitors to steal customers
from us even if they have lower pricing strategy. The customers wont risk an uncertain
experience with a competitor when they know they will get more than they expect from us.
• Customers should know how much we value them:
We have to make our customers realize how much we think and value them. Communicate
with them regularly and announce new products or services to them before we even
announce it to the general market.
• Reward programs:
We would be keeping a Seven points reward scheme for our customers where they can earn
point for each purchase they would be making and also later use those points in getting cash
vouchers upto 5000 rupess for shopping.
MARKETING STRATEGIES
Marketing strategy is a method of focusing an organization's energies and resources on a
course of action which can lead to increased sales and dominance of a targeted market niche.
A marketing strategy combines product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's marketing goals, and
explains how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and allocation
of resources. It is most effective when it is an integral component of overall firm strategy,
defining how the organization will successfully engage customers, prospects, and competitors
in the market arena. Corporate strategies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing strategy is closely linked
with sales.
• Spread across 80,000 square feet of shopping area, Seven eleven will provide the
shoppersa never-before-experienced shopping delight. The store will carry a range of
over 95,000 products catering to the entire family. Shoppers will have the option to
choose from a wide array of products in every category ranging from fresh produce, food
& grocery, home care products, apparel and accessories, non-food FMCG products,
consumer durables and IT, automotive accessories, lifestyle products, footwear and much
more
• seven eleven offers some unique services to the shoppers like tailoring, shoe repair,
watch repair, a photo shop, gift services and laundry services, all within the store. The
store also houses its own fresh bakery, serving “hot, off-the-oven” bread and bread
products throughout the day and local savouries, an ice-cream train for the kids, a chakki,
ready-made batter and loose tea and pickle for the housewives. It will also sell fine
jewellery and fashion jewellery as part of its lifestyle section.
• It will also house a health and wellness store providing pharmaceutical drugs and other
wellness products. For the shopper’s convenience, the store has a cafeteria providing
quality food and beverages for ready consumption, an ATM machine and a consumer
service / membership desk to provide the customer a truly international shopping
experience.
6
SWOT ANALYSIS
Strengths
Keeping local brands at the outlets is more profitable and also makes the supply chain more
efficient. Being a bulk purchaser, Seven eleven can offer products at very low prices. Also
taking into consideration the local brands, the products at the outlets would be easily
acceptable by the customers. And there would be comparatively less efforts needed by the
marketer to explain the product to the consumers.
Weaknesses
In some cases, few regional brands strongly liked by the consumers offer lower margins than
that offered by the national brands. It has to face a tough competition by big shopping malls
i.e. Big Bazaar, Spencer Hyper, Vishal Mega Mart and the upcoming Wall Mart.
OPPORTUNITIES:
To survive in today’s world globalization is important. The store have a wide
opportunity to go more global to improve and expand its business. They also have the
opportunity to consider more overseas supplier which will actually give them cost advantage,
rather than suppliers available on a local level. They also have the opportunity to maximize the
use of available technology to improve their functioning and to gain competitive advantage.
Threats:
If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise, display, prices
and turnover. Shopping Culture: Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends and largely confined to
Window-shopping. Cultural Variation leads to variation in merchandise in India at different
geographical locations. Competition from future group and various other retail stores which are
growing rapidly.
ALLOCATION OF FUNDS
NO . OF STORES (INITIAL STGAE) – 20 STORES = 100 CRORES
EMPLOYEES SALARY = 10 LAKHS
FACILITIES = 50 LAKHS
MARKETING AND ADVERTISING = 20 LAKHS
INVENTORY = 50 LAKHS
SECURITY = 2 LAKHS
MAINTNANCE AND REPAIRS = 30 LAKHS
