MICROMARKET ANALYSIS

Prepared By:Caballero, VoltaireCatubay, MhelodyCrisostomo, KathleenLigayo, MichaelNg, John

MISSION

7-11Is to be your convenient neighborhood store.

MINISTOPWe realize a society full of beaming smiles with “deliciousness” and “convenience”.

VISION

7-11To be the best retailer of convenience.

MINISTOPTo be the leader in the convenience store industry, preferred by customers in terms of assortment, price and quality of products and value-added service.

OBSERVED BRANCES

7-11•G/F BSA Tower Condominium, Legaspi St. Makati City•Tandang Sora along Commonwealth Highway•Mindanao Ave. cor Tandang Sora•Mindanao Ave. cor. Quirino Ave.

MINISTOP•G/F Prince Plaza II Condominium, Legaspi St., Makati City•EDSA Northbound cor. Corregidor Rd.

OBSERVED BRANCES

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.

ON CUSTOMERS7-11

•Age is between 16 – 40 years old•Both male and female on equal distribution•Usually buys specialty foods such as slurpee, hotdogs as well as cellphone load•Stays for as short as 1 minute to as long as 20 minutes

MINISTOP•Age is between 20 – 40 years old•Both male and female on equal distribution•Usually buys specialty foods such as the kariman and chicken meals as well as consumer goods•Stays for as a short 5 minutes to as long as 20 minutes

ON CUSTOMERS

7-11•Composed of office employees, condominium tenants and their household help, students from elementary to college, passersby specially commuters and families living nearby the branch

MINISTOP•Composed of office employees, condominium tenants and their household help, students from elementary to college, passersby specially commuters and families living nearby the branch

ON CUSTOMERS

7-11•Peak hours of customers vary from store-to-store. Those in Makati area have early morning and lunch as peak hours. Those outside Makati have morning and early evening as peak hours.•2-5 customers arrive during peak hours•Arrive and leave

MINISTOP•Peak hours of customers vary from store-to-store. Those in Makati area have early morning and lunch as peak hours. Those outside Makati have morning and early evening as peak hours.•2-5 customers arrive during peak hours•Arrive and leave

ON LOCATION7-11

•15 to 20 passers-by per minute during peak hours, about 3 to 7 passers-by per minutes during slack hours•Near establishments such as beauty salons, schools, police station and even fastfood chains•Near residential areas such as condominiums and subdivisions

MINISTOP•15 to 20 passers-by per minute during peak hours, about 3 to 7 passers-by per minutes during slack hours•Near establishments such as beauty salons, schools, police station and even fastfood chains•Near residential areas such as condominiums and subdivisions

ON LOCATION

7-11•Near a loading zone, stoplight, bridge crossing•Usually located in an intersection•Passers-by are always “on the go” and rushing either to go to their offices or to their homes

MINISTOP•Near a loading zone, stoplight, bridge crossing•Usually located in an intersection•Passers-by are always “on the go” and rushing either to go to their offices or to their homes

ON THE ESTABLISHMENT7-11

•Products include fresh fruits, packed meals and consumer goods, household cleaning items, food items and beverages, cigarettes, newspapers and magazines•Prices are slightly higher (PHP1-2 difference) compared to regular retail (supermarket)

MINISTOP•Products include fresh fruits, packed meals and consumer goods, household cleaning items, food items and beverages, cigarettes, newspapers and magazines•Prices are comparable to regular retail (supermarket)

ON THE ESTABLISHMENT

7-11•2 cashiers open during peak hours, 1 cashier open during slack hours•Can serve 4 – 10 customers per minute during peak hours, while 2 – 5 customers can be served during slack hours•Cleanliness is from good to excellent

MINISTOP•2 cashiers open during peak hours, 1 cashier open during slack hours•Can serve 4 – 10 customers per minute during peak hours, while 2 – 5 customers can be served during slack hours•Cleanliness is from moderate to good

ON THE ESTABLISHMENT

7-11•No restroom•Has long tables with 4 to 5 chairs or two small tables with 4 chairs each•Cashiers would notice if a customer is not being attended•Very good at upselling additional products

MINISTOP•No restroom•Has 3 tables with 4 chairs each•Cashiers do not speak much and thus, not much upselling is happening

ON THE ESTABLISHMENT

7-11•Staff assigned on the Makati branch were much more courteous compared to those assigned outside of Makati

MINISTOP•Staff assigned on the Makati branch were much more courteous compared to those assigned outside of Makati

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.

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.

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.

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.