7-Eleven and MyNews Malaysia Marketing environment analysis

1. 7-ELEVEN
and
myNEWS
MARKETING ENVIRONMENT
ANALYSIS
Presented by Tan Yaw Kuen (GSM)

2. Agenda
1. BACKGROUND INTRODUCTION (7-ELEVEN and myNEWS)
2. MICROENVIRONMENT
3. MACROENVIRONMENT
4. IMPERATIVES TO EXCEL BUSINESS BY TAKING ADVANTAGE OF CURRENT
SHORTFALL
5. CONCLUSION

3. BACKGROUND INTRODUCTION
7-Eleven was founded by
J. C. Thompson in 1927
as The Southland Ice
Company in Dallas,
Texas.
1st store Tote’m establish
1946 later became 7-
Eleven to reflect the stores'
new, extended hours - 7
a.m. until 11 p.m., seven
days a week.
History of 7-Eleven Malaysia
o The first 7-Eleven store in Malaysia opened on 9 October 1984
o They are pioneer and the largest 24-hours convenience store
operator in Malaysia. Upon achieving its 1,000 mark in stores
network
o Own proprietary brands such as Slurpee frozen beverages and Big
Gulp fountain soft drinks. Fresh brewed coffee and other hot
beverages together with packaged fresh food and bakery for the
convenience of customers looking for ready-to-eat hot food
o The variety of services available at 7-Eleven include the bill
payment service, sale of mobile phone reload cards, IDD/STD,
Touch N Go reload, internet games' starter packs, reloads via
MOL Point top-up, ink cartridge refill, photocopying, fax,
automated teller machine (ATM), and bulletin board for
neighbourhood community notices.
o The first myNEWS convenience retail chain store opened in
Dec1996
o myNEWS has evolved from a single newsstand of 200 sqft to the
largest homegrown retail convenience store chain in Malaysia.
o As of June 2020, myNEWS has more than 530 outlets nationwide.
o It is currently serving over 6 million customers monthly and has
more than 2000 employees
o joint-venture partner with WHSmith Travel operate WHSmith stores
Partner with BGF Retail South Korean to launch first CU stores
within Malaysia in 2021
o Partners with Japanese fresh food producer Gourmet Kineya to
produce ready-to-eat meals
o Partner with Ryoyupan Baking Co. of Japan in producing bakery
products
A single newsstand of
200 sqft homegrown
retail convenience store
Founded by Dang Tai
Luk, its first flagship
store opened on 25
December 1996.
History of myNEWS
Malaysia

4. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o 7-Eleven success because of their strong governance
and integrity that have reduced risks to the business
and produced beneficial value for stakeholders.
o The Board directly oversees all matters pertaining to
the Group’s overarching sustainability agenda, strategic
decisions, and initiatives by reviewing existing strategies
to keep them consistent with the current best practices
whilst ensuring that the stakeholders’ expectations are
fulfilled.
o Then the Sustainability Chairman collaborates with the
Sustainability Working Group (SWG) and oversees that
all implemented initiatives align with the Group’s
strategic direction and policies
o The company also strives to uphold the highest
standards of professional conduct by establishing
policies and manuals that will manage employees and
partners towards fostering corporate culture which
include Malaysian Anti-Corruption Commission
(Amendment) Act 2018.
o Invested in their employee’s career development and
knowledge growth to achieve both their personal and
professional goals.
o The Board takes full responsibility for the
overall performance of myNEWS by setting the
strategic directions and objectives
o The Group’s business operations are reviewed
to maintains full and effective oversight over
the management of myNEWS as the board and
management are committed to continually
refine and improve these processes continues
to improve its monitoring process on the
implementation of its internal control measures
and sustainability initiatives.
o The compliances and practices adopted by
Mynews in pursuance of good corporate
governance. which is embedded in Code of
Ethics and Conduct.
o They have cultivated a work environment and
culture that “Always Welcoming, Delightfully
Surprising” where employees are constantly
challenged to do their best through a creative
approach.

5. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o 7-Eleven also partnership with Boots, the UK's No. 1
Skincare Brand is now exclusively available, and their
products range from the Vitamin C Brightening,
Cucumber, Korean Sheet Mask or Ingredients range
for flawless skin and hair
o Partnership with other food and beverage companies
like ANDA Drinking Water and ANDA Natural Mineral
Water where it sourced from natural tropical
rainforest away from pollutions, contaminations and
is untouched by human hands.
o A memorandum of understanding (MoU) with SATS
Food Services Sdn Bhd (BSFS) to collaborate and
cooperate in the food supply chain to provide wide
range of delicious baked goods and fresh food to 7-
Eleven’s convenience stores domestically.
o myNEWS stores sell snacks and beverages that
supplied by local suppliers such as snack
product and instant noodles Maggie from
Nestle, soft drink from coca-cola, pepsi and
others snack product from local suppliers in
Malaysia..
o myNEWS partners with Japanese fresh food
producer Gourmet Kineya to produce ready-to-
eat meals like sandwiches, onigiri and bento set
for its convenience stores while the partnership
with Ryoyupan Baking Co. of Japan in producing
bakery like MARU bakes bun products to serve
its customers.
o Established two separate agreements with
Japanese wholly owned companies, GK Asia
And Bhd and MRA Bakery Sdn Bhd, to develop,
produce and sales of Halal ready-to-eat food
and bakery products respectively.

6. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o The first convenience store mobile
truck in Malaysia has proudly been
on the road for 5 years since
September 2013. Aimed at the
increasing on-the-go youths and
young working adults,
o Buy now and pay later as well as go
cashless and pay with myNEWS
Loyalty Card, credit or debit cards,
Alipay, TNG e-wallet and Boost in
our stores
o Send, return & pick up your parcels
with easy & efficient delivery
services available in our stores
o 7-Eleven use a Dual distribution marketing
arrangement to use an intermediary to sell their
products and services while simultaneously selling it
themselves by offering franchise to entrepreneur to
operate their branded product in exchange for a license
and loyalty fee.
o In term of media intermediary, 7-Eleven leverage on
media companies like online newspaper The Star, The
Edge to update stakeholder or communities regard to
their company event or activities.
o 7-Eleven also provide buy now pay later
through financial institutions credit
card either Visa or Master.
o Send, return & pick up your parcels
with easy & efficient delivery services
available in our stores

7. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o Actively engaged with customers through various social
media platforms in building brand awareness and
connection with our customers.
o Through the community Care program, they
demonstrate gratitude by giving back to the local
communities by supporting the under-privileged groups
and to sustain environmental conservation efforts such
as of natural disasters and promote recycling to avoid
waste.
o Sustainability & Corporate Social Responsibility (CSR)
Malaysia Awards for five (5) consecutive year since its
inception in 2017
o Environment, Social and Governance (ESG)
are the commitment to minimize our
environmental footprint and dedicated to
supporting the communities.
o Through CSR initiatives and activities, They
aim to be a champion for compassion,
welfare and goodwill.
o Strive to improve the living conditions of the
community and strongly believe education
has be provided to everyone where
myNEWS participates in project
development and implementation, fund
raising events, initiatives and activities that
empower the communities.
o Employees at myNEWS are always given the
opportunities to join the sport and
recreation activities to maintain a healthy
work life balance.

8. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o Relatively large competition in the convenience store
industry in Malaysia as number of convenience stores
is already on the verge of saturation
o When there is new competitors like myNEWS, KK
SuperMart enter the industry then it will affect the
market share of the companies as 7-Eleven is on of the
pioneer in convenience store in Malaysia
o A variety of competitive strategies are organized for
various marketing items such as buying 1 get 1 or
buying 2 discounts.
o 7-Eleven's marketing strategy is not based on price
wars but using differentiated strategies. It is more
appealing to consumers as convenience stores with
high stores coverage locations nationwide.
o Many new modern convenience store like
myNEWS, FamilyMart has replaced those
thousands of so-called "mom and pop"
shops family run traditional retailer due to
lifestyle change.
o myNEWS recently have posed a challenge
to 7-Eleven which is one of pioneer of
convenient store chain in Malaysia.
o As Competition is heating up in Malaysia,
myNEWS had change their marketing
strategy to acquire local bakery Otaru Fine
Food last year to beef up its food selections
to roll out more ready-to-eat products to
capture growing demand from the younger
population

9. MICROENVIRONMENT Company Suppliers Marketing Intermediaries Competitors Customers
Public
o 7-Eleven Mission and Core Values exemplifies their
customer relation strategy that consistently serve the
changing needs of our customers for their
convenience.
o To provide top-notch customer experience by
interacting with customers through different
platforms, such as social media, live chat, in person
and messaging applications
o Understand of the needs and wants of customers and
in relation thereto, adjust their products, services and
customer support to meet or surpass their customer
expectations.
o Customer experience is the ‘new marketing’ after
being awarded the ‘CXP Best Customer Experience
Award 2020.
o myNEWS key customer driven value creation
is the strategic trade-off that the company is
fulfilling the consumer demands through its
differentiated products and services.
o Always welcoming its customers to the store
greeted by friendly staff and a welcoming
ambiance.
o Relentlessly and consistently changing and
improving to bring quality products,
convenience and excellent shopping
experience
o With its new tagline "Always Welcoming,
Delightfully Surprising", the brand myNEWS
will continue to foster a trusting relationship
with its customers

10. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
o 7-Eleven uses demographic segmentation strategy
with age as the parameter. The main target segments
are adults and youth. Its customers mostly are male
(60-70%), age from18-44 years old.
o 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.
o They also target mainly the working peoples or
families who have no time to go to supermarket to
buy groceries. The busy people choose 7-Eleven
because it is convenient to get anything and also it is
easy to find any part of Malaysia where their stores
are located near residential and commercial areas.
The company’s other target markets are coffee and
beverage lovers.
o myNEWS promotional campaigns does not
target any specific demographics except festive
season promotion.
o Currently, myNEWS promotional campaigns
focus on the pricing and loyalty programmes of
the fresh food and ready to eat products that
target segment range from youth and adults
market.

11. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
The economic factors as below can impact 7-Eleven
business future growth and profitability:
o The increasing of inflation in the Malaysia economy
weakens the buying power from consumers.
o Core infrastructure developing by Malaysia
government to facilitate and improve business
environment. 7-Eleven can access the present
infrastructure to drive growth in retails and services
sector in Malaysia.
o Supply chain epitomises the indirect economic
benefits of the retail industry with a continuous cycle
of demand and supply that can create wide economic
ripples by the Direct economic contributions come
from the employment of a variety of occupations,
including but not limited to, logistics, freight &
transportation, finance, marketing, insurance, real
estate, IT and technology services.
As local retailer in Malaysia, the performance of
myNEWS is very much correlated to the
economic performance of the Malaysia's
economy.
Following economic factors that can impact myNEWS business future
growth and profitability:
o The increasing of inflation in the Malaysia economy weakens the
buying power from consumers
o The skill level of human resources in Malaysia is moderate to high
in the Services sector. myNEWS may leverage it to not only improve
services in Malaysia but also can leverage the skilled workforce to
create global opportunities.
o Efficiency of financial markets in Malaysia that provide opportunity
for myNEWS access vibrant financial markets and easy availability
of liquidity in the equity market of Malaysia to expand further
globally.
o The volatile exchange rate of Malaysia can impact myNEWS
investment plans not only in the short term but also in the long run.

12. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
o Developments and dissemination of mobile technology
has changed customer expectations.
o to enhance user experience with increasing speed
through accessing 5G
o transitioning towards digitalisation by gradually
empowering the entire organisation with cloud
computing
o adopted financial technology to implement various
payment systems, such as e-wallets, cards, online
purchasing platforms and in-store handheld devices.
o With online and delivery on demand, our
omnichannel business continues to increase
and our cashless transactions count
continues to grow with the increasing
popularity of e-wallets which include our
own Mynews membership app via high
internet infrastructures and facilities such as
5G broadband network
o Empowerment of supply chain partners
through technology has shortened the
product life cycle and it has enabled
suppliers to quickly develop new products
with lowering cost of production.

13. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
Government intervention in the Services sector and in particular Retail (Grocery) industry can impact the fortunes of the 7-Eleven and myNEWS in
Malaysia. The key impact area as follow:
o With the government new policies, it may improve the investment sentiment in the Services sector by giving the wider acceptance of the suggested
policies among population when increasing of global pressures to adhere to World Trade Organization’s regulations on Retail (Grocery) industry
o Both 7-Eleven and myNEWS have benefitted from lower taxation policies throughout the western hemisphere and resulted in high profits and
increasing spending in the research and development. However, the increasing inequality may lead to changes in the taxation policies as they are
looking into Retail (Grocery) specific taxation policies to contain the carbon footprint of the Services sector.
o Legal plays an important role in the development of Retail (Grocery) sector in any economy. Both 7-Eleven and myNEWS management have to
consider specific legal factors before entering local market like copyrights law, discrimination laws, system of justice, time taken to deliver justice,
intellectual property rights protection etc especially to meet data protection laws which has emerged as critical part of not only privacy issues but also
intellectual property rights.

14. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
• Malaysians are giving higher preferences to
experiential products rather than traditional value
proposition in Services sector.
• 7-Eleven realize that over-consumption of processed
foods in Malaysian eating culture could inadvertently
lead to poor dietary quality and obesity in current
hence they expanded product range with fresh and
nutritious foods to provide their customers with
healthy alternative scan that provide enhanced
customer experience
• All food items sold in 7-Eleven are certified HALAL and
undergo stringent quality control to ensure
tastefulness and freshness to meet Malaysian eat and
drinking culture.
• During festive season, 7-Eleven roll out many
promotion and reward activities to celebrate each
festival together with all Malaysians such as Ramadan
special promotion their Slurpee beverage.
o myNEWS enhanced customer experience by
diversifying their product into fresh food
production with starting production and sale of
Halal ready-to-eat food and bakery products
respectively to adopt and capture food and
beverage consume culture of young generation
in Malaysia.
o They roll out promotion activities during the
festive season to celebrate together with all
Malaysians as this is part of Malaysia culture.
o At the same time, myNEWS also launched
myNEWS Malaysia App provides you with a fast
and easy cashless payment using only an App.
Keep track of myPOINTS earned and receive
exclusive members-only rewards like earn
points for cash, free coffee, birthday freebies
and others.

15. MACROENVIRONMENT Demographic Economic Technology Cultural Natural Environment
Political & Legal
7-Eleven’s community care entity help to carry out
corporate social responsibility initiatives as below:
o To create greater awareness among customers as
recycling is become as a norm and waste management
especially for units close to the urban cities become
more importance.
o Renewable technology is also another interesting area
for 7-Eleven. It leverages the trends in this sector by
providing its subsidies to invest in the renewable
sector.
o 7-Eleven has already decreased electricity use in store
operations by an estimated 21 percent over the past
seven years via projects such as LED lighting, energy
management systems and high efficiency HVAC units.
o To reduce packaging waste, 7-Eleven is designing eco-
friendly packaging, such as a recyclable stay-hot coffee
cup, private label beverage bottles made with recycled
materials, and hot food packaging made with less
material.
myNEWS recognises the importance of giving
back to the society regardless direct or indirect
impact so It creates a sustainable platform by
striving to reduce carbon footprints which is with
the efforts of preserving the environment focus
on energy consumption, waste management,
recycling and reusing as below:
o To reduce energy consumption, staff in myNEWS office switch off the
lights and air-conditioners when they are not needed. Hand-dryers are
available in the washrooms to reduce the usage of paper towels. We use
energy saving light bulbs and light-emitting diode (LED) bulbs to promote
energy conservation.
o To eliminate waste, myNEWS practises recycling of carton boxes as well
as other recyclable items in the distribution center. myNEWS is
collaborating with experts from recycling industry to implement recycling
project.
o In myNEWS outlets, they promote run “no plastic bag” campaign that
encourage their customers to reduce the usage of plastic bag, reuse their
tote bags during purchases, and recycle the recyclable items to protect
the environment.

16. SUGGESTION TO EXCEL BUSINESS BY TAKING ADVANTAGE OF CURRENT SHORTFALL
1. At present, convenience store in Malaysia has reached a mature stage of the market as this retail industry is already
on the verge of saturation and the emerging demand is only for replacement.
2. Despite Malaysia entered the “transition to endemic” phase which will see the re-opening of the economy that
recalibrate back to normalcy and gradual path of recovery however impact of slow GDP growth, high inflation and
weak currency make the convenience stores slow and sluggish in growing.
3. In addition, there is a relatively large competition in the convenience store industry as many convenience stores are
available at anywhere that consumers can get the service they want Even retailers of the same size, such as
myNEWS, 99 Speemart, KK SuperMart or large multinational retailers such as 7-Eleven, FamilyMart and Aeon
Express overseas competitors start to use price wars and use attractive products and services as centre of their
strategies to stay competitive
4. Hence 7-Eleven convenience stores shall focus on rolling out its blue ocean strategy like new 7-Café store format,
which will be the pivot to refreshing our 7-Eleven brand image, through a blend of enhanced product offerings,
services and much improved in-store shopping experiences and customer engagement. In the pharmaceutical
segment, which had shown much resilience over the pandemic, shall continue to strengthen its market share together
with The Pill House and Wellings group
5. On the other hand, myNEWS key strategy shall continue to drive their business increasing Footfall by leveraging
number of stores at good location, right product mix and good quality products and customer service especially
interesting shopping experience gained from CU stores. All foods and beverages also shall further improve and
innovate by working closely with Japanese and Korean partners. On the other hand, myNEWS also can consider a
competitive strategy based on the strength of each stores brand which include Mynews customer value store (CVS),
Mynew Supervalue, WH Smith and Korean CVS CU.

17. CONCLUSION
In summary, both microenvironments and macro environment could
affect convenience store businesses directly or indirectly.
Microenvironment: Immediate environment including suppliers,
customers, competitors, and stakeholders. Both 7-Eleven and
myNEWS to understand their organisation strength and weakness on
their internal strategies and initiatives
Macroenvironment: PEST (Political, Economic, Social, and
Technological) are often outside of the retailer’s control and are
typically of a larger scale and are usually of an economic and industry
viewpoint to understand new competition, the threat of new
competition and the bargaining power of suppliers and customers.
It is important for organisation to develop business sustainability
governance framework which usually established with three-tier
structure. Top executive decision makers, middle layer of management
and bottom level executors. In a three-tier structure, information
flows both ways between staff and managers, and between managers
and the executive level so that sustainability efforts are observed
across the entire organisation, specific issues are directly tied to
middle and bottom level to manage and develop countermeasure
plans, execute the strategies and monitoring then review the
performance.