7-Eleven was founded in 1927 as an ice and beverage stand in the City of Dallas in the United States and has gradually evolved from selling essential items to today’s one-stop-shop convenient store, offering a wide variety of products, fresh food, and services. The store name “7-Eleven” was created to reflect the company’s extended hours: 7:00 am to 11:00 pm and seven days per week. Since the 1960s, 7-Eleven has introduced its hallmark “around-the-clock” 24-hour operating mode. In 1991, the company was acquired by a Japanese company and its parent company is now Seven & I Holdings Co., Ltd.

7-Eleven pioneers the concept of small grocery stores offering convenient long hours and has grown into the world’s largest convenience store chain. Nowadays, 7-Eleven operates, franchises, and licenses 68,000 stores in 17 countries and regions globally. In Hong Kong, 7-Eleven uses franchises to welcome entrepreneurs to join as franchisees and grow the business together. It has set up a comprehensive franchise model that provides franchisees with support in many aspects, including store operations training, consultancy services, financial processing, logistics management, and marketing.

7-Eleven uses customized strategies in different regions. In Taiwan, as people are used to measuring good deeds by donation, 7-Eleven created an innovative and unique CSR program called Rhythm of Love Wall to draw people’s attention and encourage them to donate small change they have in their pocket. As a result, 7-ELEVEN increased its store visitors by 37% and increased the public’s preference of 7-ELEVEN’s cooperated charity group. In Hong Kong, competitions among retail stores are fierce. 7-Eleven developed a Hello Kitty redemption program that centres around the collection of 35 Hello Kitty charms. The target market for this program was women aged between 25-and 39, working class with a stable income. The idea of bringing forth the good old memory of Hello Kitty in a needs-based convenient store was successful. The redemption program was turned into a successful sales engine by building an emotional bond with the target market. 

As a result, 7-Eleven recorded double-digit growth in total sales during the redemption period. In the Philippines, 7-Eleven is one the most well-known and trusted brands with 2100+ stores nationwide. Thirty million Filipinos live within a kilometer of a 7- Eleven store. With its highly efficient logistics operation, 7-Eleven Philippines is pioneering a new business model to allow customers to receive goods purchased via online kiosks in 7-Eleven stores the next day in metropolitan areas, and within a few days in remote areas.

Answer ALL questions. Your answer to each case shall have a minimum of 300 words.

a. Discuss FOUR advantages and disadvantages respectively of franchising that 7-Eleven used in Hong Kong. 

b. How would you characterize 7-Eleven’s marketing strategies in Taiwan, Hong Kong, and the Philippines? 

Answer rating: 100% (QA)

1a Advantages 1 Mutual growth to business Franchises will offer growth and development to 7Eleven st... View the full answer