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Micromarket Analysis (7-11 vs. MINISTOP)

This is a micromarket analysis of two of the largest convenience store chains in the Philippines - 7-11 and MINISTOP.
This was created by Group 4, ENTREP, S63, Ateneo Graduate School of Business.

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Micromarket Analysis (7-11 vs. MINISTOP)

  1. 1. MICROMARKET ANALYSISPrepared By:Caballero, VoltaireCatubay, MhelodyCrisostomo, KathleenLigayo, MichaelNg, John
  2. 2. MISSION 7-11 MINISTOPIs to be your convenient We realize a society full ofneighborhood store. beaming smiles with “deliciousness” and “convenience”.
  3. 3. VISION 7-11 MINISTOPTo be the best retailer of To be the leader in theconvenience. convenience store industry, preferred by customers in terms of assortment, price and quality of products and value-added service.
  4. 4. OBSERVED BRANCES 7-11 MINISTOP•G/F BSA Tower •G/F Prince Plaza IICondominium, Legaspi St. Condominium, Legaspi St.,Makati City Makati City•Tandang Sora along •EDSA Northbound cor.Commonwealth Highway Corregidor Rd.•Mindanao Ave. corTandang Sora•Mindanao Ave. cor. QuirinoAve.
  6. 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. 7. ON CUSTOMERS 7-11 MINISTOP•Age is between 16 – 40 years •Age is between 20 – 40 yearsold old•Both male and female on •Both male and female onequal distribution equal distribution•Usually buys specialty foods •Usually buys specialty foodssuch as slurpee, hotdogs as such as the kariman andwell as cellphone load chicken meals as well as•Stays for as short as 1 minute consumer goodsto as long as 20 minutes •Stays for as a short 5 minutes to as long as 20 minutes
  8. 8. ON CUSTOMERS 7-11 MINISTOP•Composed of office •Composed of officeemployees, condominium employees, condominiumtenants and their household tenants and their householdhelp, students from help, students fromelementary to college, elementary to college,passersby specially commuters passersby specially commutersand families living nearby the and families living nearby thebranch branch
  9. 9. ON CUSTOMERS 7-11 MINISTOP•Peak hours of customers vary •Peak hours of customers varyfrom store-to-store. Those in from store-to-store. Those inMakati area have early Makati area have earlymorning and lunch as peak morning and lunch as peakhours. Those outside Makati hours. Those outside Makatihave morning and early have morning and earlyevening as peak hours. evening as peak hours.•2-5 customers arrive during •2-5 customers arrive duringpeak hours peak hours•Arrive and leave •Arrive and leave
  10. 10. ON LOCATION 7-11 MINISTOP•15 to 20 passers-by per •15 to 20 passers-by perminute during peak hours, minute during peak hours,about 3 to 7 passers-by per about 3 to 7 passers-by perminutes during slack hours minutes during slack hours•Near establishments such as •Near establishments such asbeauty salons, schools, police beauty salons, schools, policestation and even fastfood station and even fastfoodchains chains•Near residential areas such as •Near residential areas such ascondominiums and condominiums andsubdivisions subdivisions
  11. 11. 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 anintersection intersection•Passers-by are always “on the •Passers-by are always “on thego” and rushing either to go to go” and rushing either to go totheir offices or to their homes their offices or to their homes
  12. 12. ON THE ESTABLISHMENT 7-11 MINISTOP•Products include fresh fruits, •Products include fresh fruits,packed meals and consumer packed meals and consumergoods, household cleaning goods, household cleaningitems, food items and items, food items andbeverages, 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)
  13. 13. ON THE ESTABLISHMENT 7-11 MINISTOP•2 cashiers open during peak •2 cashiers open during peakhours, 1 cashier open during hours, 1 cashier open duringslack hours slack hours•Can serve 4 – 10 customers •Can serve 4 – 10 customersper minute during peak hours, per minute during peak hours,while 2 – 5 customers can be while 2 – 5 customers can beserved during slack hours served during slack hours•Cleanliness is from good to •Cleanliness is from moderateexcellent to good
  14. 14. ON THE ESTABLISHMENT 7-11 MINISTOP•No restroom •No restroom•Has long tables with 4 to 5 •Has 3 tables with 4 chairschairs or two small tables with each4 chairs each •Cashiers do not speak much•Cashiers would notice if a and thus, not much upselling iscustomer is not being happeningattended•Very good at upsellingadditional products
  15. 15. ON THE ESTABLISHMENT 7-11 MINISTOP•Staff assigned on the Makati •Staff assigned on the Makatibranch were much more branch were much morecourteous compared to those courteous compared to thoseassigned outside of Makati assigned outside of Makati
  16. 16. 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.
  17. 17. 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.
  18. 18. 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.
  19. 19. 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.