7 eleven pricing strategy
TRANSCRIPT
7-Eleven Pricing StrategyAimal –Business Administration Class of 2013-(工商管理 131 阿马尔
7-Eeleven Outline..
• Introduction to 7-eleven• Pricing Strategy• Promotions • 7 Eleven Employee Training
Introduction to 7-Eleven Company
• 7-Eleven is a chain of convenience stores in many countries throughout the world. It is open 24 hours a day and markets itself as a place to buy items quickly and close to home. The old days of borrowing a cup of sugar from your neighbor are long gone. Today, a cook who finds she is missing an ingredient is much more likely to run to the local 7-Eleven to purchase the item than to knock on a neighbor's door. With convenience, of course, comes a higher price. The groceries, food and other items at 7-Eleven are often sold at a much higher price than these items can be found for elsewhere.
Introduction to 7-Eleven Continues…
• The 7-Eleven chain began in Texas in the 1920s. The Southland Ice Corp., a local ice distributor, began to sell groceries such as milk and eggs along with their ice. They found they could charge a higher price for these goods because they were conveniently located. As Southland realized the value of convenience, they launched a chain of small grocery stores across the Dallas area. The stores were open from 7 a.m. to 11 p.m., which gave the store its name. The chain continued to add stores, and by the 1950s had more than 100 locations. In the 1960s they began to stay open 24 hours. Today, 7-Eleven is open 24 hours a day, 7 days a week, with locations all over the world.
Pricing Strategy• Stores such as 7-Eleven are categorized as
convenience stores. They sell products including groceries, beverages, convenience foods and a small amount of household items. Because they are located in residential neighborhoods, they can charge premium prices on these goods. People will pay this price because shopping at these stores is quick and efficient, and saves them a trip to grocery stores, which may be farther away with longer lines.
7-Eleven Pricing Strategy Continues..
• There is a standard belief that shopping at convenience stores such as 7-Eleven is uneconomical. Items including milk and bread may cost 30 to 50 percent more at a convenience store than they do at a grocery store. If one were to calculate the total cost of a shopping excursion, including the cost of gas and wear and tear on a car, shopping at neighborhood stores 7-Eleven is often cheaper than shopping at the grocery store. This is because of the fact that these stores are purposely located within neighborhoods and residential areas.
Promotion
7 Eleven Employee Training
• Video…
