Marketing Management

Project Report of Organizational BehaviorSubmitted to: Sir. Abdullah KharSubmitted by: Group# 6 Qurat ul ain (120131) Noshaba Nargis (1201302 Sidra Shafqat (120139) Mina Ali (120154) Syed Muhammad Awais (120152) Shakeeb Faheem (120157) Numeera Yousaf(120167)

Seven eleven introduction 7-Eleven branded stores under parent company Seven & I Holdings Co.. The stores are located in 16 countries with its largest markets being Japan (15,000), the United States (8,200), Thailand (6,800), Indonesia, Canada, the Philippines, Hong Kong, Taiwan, and Malaysia.

Top Honors7-Eleven has been honored by numerous companies and organizationsThroughout its 86 years in business.Recent7-Eleven accolades include: No. 1 on the CNN TRAVEL International staffers list of favorite chains in the World for travelers. No. 1 on Entrepreneur magazine's "Top Global Franchises" list for 2013 No. 3 on Fast Company's "World's Top 10 Most Innovative Companies in Retail" for 2013 No. 4 on Entrepreneur magazine's "Top 10 Franchises" for 2013 America's Best Franchises ranks 7-Eleven in the Top 50 of its 2013 Franchise 500 No. 1 in Store Growth by Convenience Store News for 2012 No. 2on Forbes magazine" for 2012 and ranks no. 3 in brand awareness and no. 6 in longevity among top franchises No.4 among Top 100 Global Franchises by Franchise Direct for 2012 No. 12 among Top 75 Retailers & Wholesalers by Supermarket News for 2012 NEs "Top Franchise for the Money"for 2012 Forbes magazine rates Slurpee Lite frozen drink as one of nine products that triumphed in 2012 No. 2 on All Business"Top 5 Franchises

Advertising and Marketing Campaigns That Connect7-Eleven is one of the best known brands in the world, in part because it pursues timely, innovative and attention-grabbing advertising campaigns that connect with core customers and keep them coming back into the stores. National Marketing and Advertising Initiatives7-Eleven doesnt only drive sales with TV and radio spots, billboards, websites and PR. Check out the Advertising Gallery below!Local Marketing Support7-Eleven provides a full range of local marketing support services and materials so that franchisees can get the word out about store products and promotions efficiently:Grand Opening packagesBilingual supportCustomized point-of-purchase,-

7-Eleven rolls out mobile marketing test campaign in 200 stores

7-Eleven Inc. is testing a mobile marketing campaign in San Diego, with approximately 200 of its stores participating in the program. The test runs through Dec. 31. During this time, local residents can send the keyword FAST (in Spanish, RAPIDO) to short code 72579. In response, they will receive a message informing them which of 7-Elevens best-selling beverages they have won. We are experimenting with mobile marketing to see how customers will react to getting coupons from 7-Eleven for free proprietary beverages, said Margaret Chablis, director of communications at 7-Eleven, San Diego. Basically we are just testing to try and get a sense of whether customers like it.

Mission And Vision At 7-Eleven, our purpose and mission is to make life a little easier for our guests by being where they need us, whenever they need us. Our vision is to be the best retailer of convenience. Our mission is to be your convenient neighborhood store.

The Supply Chain Management Concept A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.

Supply chain has also been a major, and continuing, focus for the organization Back in 2005/06 7-Eleven began a sizable project with SAP to go from a completely distributed supply chain to one in which about 90 per cent of stock can now be automatically replenished. Under the old system, every store would order from an agreed-upon list of suppliers and all the stock would be delivered directly to the store. The stores then sent the invoices to 7-Eleven headquarters for payment.

Under the new system, 7-Eleven HQ generates store orders, which are reviewed by the stores via an SAP portal so that adjustments can be made. The consolidated orders then run through a centralized supply chain. The organization more recently introduced what it calls a virtual supply chain to enable it to sell more value-added services.

Major operations1: material flow2: information flow How to Achieve Strategic Fit Understanding the Customer Lot size Response time Service level Product variety Price

Benchmarks for next 5 yearswhat is benchmarking? A standardized method for collecting and reporting critical operational data in a way that allows meaningful comparisons between different organizations

Why benchmark?

Benchmarking allows seven eleven to compare performance against others and is an excellent way to share best practices, highlight areas for improvement, and/or demonstrate above average performance!

Why Is It Important

Identify areas of seven eleven operation needing improvements, as well as areas of excellence.Establishes creditable standards for productivity and cost effectiveness. Compare seven eleven operation to others based onCommon standards of measurements. Identify organizations with best practices from which you can learn.

Asda:

IntroductionAsda was obtained by US corporation Wal-Mart in June 1999. Wal Mart is the worlds largest retailer. Stores are concentrated mainly in the North of England and Wales. It is a Britishsupermarketchain whichretailsfood, clothing, general merchandise, toys andfinancial services. It also has amobile phone network,Asda mobile. Its head office is at Asda House in Leeds,west yorkshierIn 1999, Asda became asubsidiaryof the American retail companyWalmartand today is the UK's third largest chain by market share afterTescoandSainsbury's.As of October 2013, Asda's share of the UK grocery market stood at 16.4%. Purpose Offers services such as CDs, DVDs, Groceries, Games, Electrical, Flowers, Furniture, Local Gifts, and Mobile phones, Opticians, Pharmacy, Photo, Travel, Delivery and Insurance. Asda aim is to produce good quality products at low prices. Finance Asda has retained its title as the UK's cheapest supermarket ahead of rival Tesco, according to new research. Since being bought by Wal-Mart, ASDA has set off a price war in the UK by initiating Wal-Mart's aggressive "price-rollback" program. The chain came out on top in the annual report produced by trade magazine The Grocer, which compares the cost of household items in each of Britain's major stores. Asda again came out the cheapest, at an average of 167.60 per basket. Marketing campaigns Asda has developed a new 45 million marketing strategy that will see the end of the "always low prices" slogan.The new phrase will be "more for you for less", which Asda believes will emphasise the quality and freshness of its food and drink products as the low price angle was not working as well as it used to with consumers. Asda's marketing promotions are usually based solely on price, with Asda promoting itself under the sloganBritain's Lowest Priced Supermarket, 16 Years Running. As a wholly owned division of Walmart, Asda is not required to declare quarterly or half-yearly earnings. It submits full accounts toCompanies Houseeach October. In the "Asda price" campaign,customers tap their trouser pocket twice, producing a 'chinking' sound as the coins that Asda's low prices have supposedly left in their pockets knock together. Asda's marketing promotions are usually based solely on price, with Asda promoting itself under the sloganBritain's Lowest Priced Supermarket, 16 Years Running. As a wholly owned division of Walmart, Asda is not required to declare quarterly or half-yearly earnings. It submits full accounts toCompanies Houseeach October. In the "Asda price" campaign,customers tap their trouser pocket twice, producing a 'chinking' sound as the coins that Asda's low prices have supposedly left in their pockets knock together. Advertising for Asda had featured thefairground Attractionsongperfect. In 1997, theSpice Girlslicensed their name and image to Asda for the creation of over 40 different Spice Items for Christmas 1997, including goods such as party supplies, official merchandise etc. In the smiley face "rollback" campaign, aCGIsmiley face bounced from price tag to price tag, knocking them down as customers watch. Major operations Operations management in ASDA stores is concerned with creating, operating and controlling a transformation system which takes inputs of a variety of resources and produces outputs of goods and services which are needed by customers. Within large and complex organizations operations is usually a major functional area, with people specifically designated to take responsibility for managing all or part of the organizations operations processes. Operations management is concerned with the design, management, and improvement of the systems that create the companies goods or services. Operations management is therefore critical to organizational success. Producing goods and services needed by customers: It is the major part for the management of ASDA Company. Developments of products according to the interest of customers, delivery, advice to the customers etc. are the roles of the operations management. SWOT Analysis Strengths low prices, friendly employees Weaknesses quality of food substandard Opportunities expansion Threats other supermarkets, price wars etc.

Issues from retail perspective Could mean a fundamental redesign: inputs Manufacturing process Investment hurdles Start with iconic areas: Packaging material types Transportation Responsible sourcing initiative Goal: Build a more environmentally and socially responsible supply chain. Initiatives: Required demonstration of compliance with environmental laws and regulations. Improved supplier energy efficiency. Higher standards of product safety and quality.Greater transparency and ownership Benefits for suppliers Increased engagement opportunities. Opportunity to leverage the power of Asda network. Inventory reduction. Improved collaboration and improved flow. Think out of the box. Multi supplier collaboration Three suppliers, all based within nine miles of each other. Ordering 2/3 times a week in full trucks. Day 1 for 3 lead time. Concept: Coordinate together Seven day ordering Customer demand based Keys to successful collaboration with asda Take risks Dont be afraid to be innovative. Work together to see the opportunities. Be open and dont give up. There isnt one collaboration mode! Its not one size fits all. Organizational Culture:

Asda beliefs that every colleague within the company makes and help influence the organization's culture. These are: to provide excellent service to our customers to show respect for the individual to strive for excellence To act with integrity. Organizational Culture: The four colleague pledges demonstrate what Asda is committed to providing for its workforce. These are: Fairness at work. Opportunity for all. Respect for each other. Pride in Asda.Leadership: An audit of management at Asda indicated the following positive behaviors:Fairness brought to life by leaders who are empathetic and recognize their colleagues.Opportunity for all promoted by leadership that encourages colleagues and is communicative.Respect for each other shown by leadership which is collaborative and listens to colleagues.Pride in Asda by inspirational and motivational leadershipHRM involves consideration of:

Workforce planningRecruitment and selectionTrainingAppraisalMotivation and employee recognition Asdas comprehensive HR strategies engage colleagues and support the organizational culture. This includes Asdas Best Welcome induction programmed, Star programmed to recognize excellent customer service, as well as Asda Academys framework for training and development and its Colleague Steps for career progression. Asda offers its colleagues a wide range of opportunities for career development. This includes supporting and investing in its colleagues to gain qualifications that will enable them to become the next generation of leaders at Asda. Recruitment: Asda promotes career opportunities on its dedicated careers website. When recruiting, it aims to attract and retain talented colleagues with the best fit for the job. Part of the attraction comes from offering competitive salaries and benefits such as its Share save scheme and colleague discounts. In 2013 Asdas Share save scheme had record payouts where 19,040 colleagues shared 61.7 million. Asdas online recruitment process has improved the speed and efficiency of recruitment, making applications easier for candidates and selection faster for management. Asda advertised 27,000 jobs last year and its dedicated careers site handled over 1.5 million applications. Asda also uses social media channels such as LinkedIn, as well as recruitment firms such as Remploy, to access the widest range of potential recruits when advertising job vacancies. Roles and responsibilities: As one of the UKs largest employers Asda offers a wide scope of opportunities. From students seeking work experience to apprenticeship and graduate training in a variety of areas. Living Asdas colleague pledges means that everyone is treated fairly and given the opportunity to progress their career. Regardless of what point of entry a candidate chooses, Asda has the same goal for recruitment, to recruit colleagues who share the same beliefs and outlook as the company. Selection: Applications are registered through Asdas online recruitment system, Asdas HR team then shortlist appropriate candidates for interview or an assessment center. Two documents are vital here: a job description and a personal specification. A job description indicates what the job entails, specifying what tasks will be undertaken by the appointed colleague. The personal specification outlines the essential and desirable personal qualities and skills required for the role. These inform applicants and help managers select the candidates that best match the requirements for the position Training and development: At Asda, each new colleague is put into a specific training plan designed for their role. This is based around the companys Colleague Steps process which has three key stages Step In, Step On, Step Up. This training varies from attending training workshops to taking formal qualifications relevant to their role. Step In is a four week induction programmed that all new colleagues undertake. This culminates in the award of an accreditation certificate and a performance review to allow colleagues to move into the Step On stage after six months of service. This stage includes coaching, a City and Guilds retail apprenticeship and further responsibilities such as first aid training, moving to a new department and becoming a training buddy. Next in career development at Asda is Step Up. Again, following a positive performance review, colleagues can seek career progression. Experienced colleagues, through progression, are able to build upon their knowledge to deliver excellent customer service within a variety of roles. Asdas success relies on its effective and engaged teams of colleagues. Through Asda leaders living the colleague pledges, the company can ensure that it recruits the right person for the job across all formats and levels of seniority. Asda focuses on recruiting colleagues that share its beliefs and will help the company to continue to grow and deliver excellent customer service. By providing structured training and development programmers, supported by it being such a large organization,

Walmart...

Introduction: Founded by Mr. Sam Walton in 1962 and incorporated on October 31, 1969. First store opened in Bentonville, Arkansas Today 6600 stores worldwide in countries It is an American public corporation & also largest public corporation by revenue in the world. 1.3 million People working.

It operates under its own name in U.S.A having operations in 50 states. It operates in Mexico as Walmex. In United Kingdom as Asda. In India as Best price. It has wholly owned operations in Argentina, Brazil and Canada.

Rewards and Recognition: Year 2001:Co. named Walmart, as the 3rd. most admired company of America.The financial Times & Price water house Coppers ranked it as the 8the most admired company in the world.

Year 2002:Rated as the no. 1 company on the fortune 500 list presented with the Ron Brown award for corporate leadership.

Major Operations: Operations management (P.O.M) is about the transformation of production and operational inputs into outputs, that when distributed, meet the needs of customers.

Operations strategy: Capturing market share with everyday low price strategy. The process of creative destructions. Cultural adaptation. Training employees because people are key to Walmarts business. Buy at less to sell at less. Withdrawal strategy. Competitive strategy: Different shop designs for each demographic group. All product in one store. Competence in use of information technology for logistics system. Highest customer satisfaction.

Productivity: Creating more than 210,000 jobs in the U.S. Saves working families more than $2500 per year. Discounting on food alone boosts the welfare of American shoppers by approx. $50 billion per year.

Porters five forces of competition: Rivalry of existing competitors. Barriers to entry. Power of buyers. Power of supplies. Substitutes.

Service layout: Introduce new layout to improve customer experience with faster service. Always offer unbeatable prices. Layout of the stores will save customers time as they shop for everyday necessities. In this layout, create an open shopping environment that helps customers find what they are looking for quickly.

Facility factors: Shop location. Shop layout. Shop size. Warehouse size.Warehouse layout

Product & Service factors: Price.Low prices than competitors... Sales.Net. Sales of Walmart $ 405 billion... Suppliers.Networked communication and just in time...

Human resource factor: Number of employees. Age, gender and sexual orientation. Skill. Wages.

Wal-Marts Supply Chain Hub and Spoke System In the early 1970s, Wal-Mart became one of the first retailing companies in the world to centralize its distribution system, pioneering the retail hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as distribution center (hub), from where they were dispatched to the individual stores (spoke). Wal-Marts Procurement Wal-Mart emphasized the need to reduce purchasing costs and offer the best price to the customer. The company directly procured from manufacturers, by passing all intermediaries. Wal-Marts Procurement Wal-Mart finalizes a purchase deal only when it is fully confident that the products being bought is not available elsewhere at a lower price.Using EDI for Procurement The computer systems of Wal-Mart were connected to those of its suppliers. EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold. On receiving information about the sales of various products, the suppliers shipped the required goods to Wal-Marts distribution centers.Logistics Management An important feature of Wal-Marts logistics infrastructure was its fast and responsive transportation system. The distribution centers were serviced by more than 3500 company owned trucks.Cross-docking To make its distribution process more efficient, Wal-Mart also made use of a logistics technique called cross-docking. In this system, the finished goods were directly picked up from the manufacturing plant, sorted out and then directly supplied to the customers.Inventory Management Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. With the rapid expansion, it was essential to have a good communication system. Hence, Wal-Mart set up its own satellite communication system in 1983.Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns. Instead of cutting the inventory across the board, Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels. Employees at the stores had the Magic Wand, a hand-held computer which was linked to in-store terminals through a radio frequency network. These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers. The order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system. Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves.Voice-based Order Filling (VOF) In 1998, Wal-Mart installed a voice-based order filling (VOF) system in all its grocery distribution centers. Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt. They were guided by the voice to item locations in the distribution centers. Inventory Management (quick replenishment) Since the floor area of any Wal-Mart store varied between 40,000 to 200,000 square feet, movement of goods within the store was an important part of logistics operations. Wal-Mart made significant investments in IT to quickly locate and replenish goods at the stores.Inventory Management (retail link system) In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system. More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories. Details of daily transactions (~10 million per day) were processed through this system.CPFR By the mid-1990s, Retail Link had emerged into an Internet-enabled SCM system whose functions were not confined to inventory management alone, but also covered collaborative planning, forecasting and replenishment (CPFR).RFID Technology (Radio Frequency Identification) In efforts to implement new technologies to reduce costs and increase the efficiency, in July 2003, Wal-Mart asked its top 100 suppliers to be RFID compliant by January, 2005. Wal-Mart planned to replace bar-code technology with RFID technology. The company believed that this replacement would reduce its supply chain management costs and enhance efficiency.Targets of Wal-Mart Wal-Mart U.S., the largest unit of retail giantWal-Mart storesInc.,it is confident about its momentum heading into the holidays, as it outlined a strategy that includes more emphasis on smaller-format stores and more e-commerce. For the first time since it began online sales in 2000, Wal-Mart broke out its e-commerce goal: Speaking at the annual analyst meeting, executives said the company targets world-wide online sales of $9 billion by fiscal 2014. Last year, Wal-Mart U.S. had total sales of about $260 billion, including e-commerce, accounting for roughly three-fifths of the company's business. Coming off a strong back-to-school period, Wal-Mart U.S. said it plans to increase its marketing, including featuring commercials on layaway, as well as on ad-matching guarantees and price comparison on a basket of goods against rival retailers. Wal-Mart U.S. also will useFacebookand other social media to drive sales, such as allowing its 22 million Facebook fans to vote on toys they'd like to see "rollbacks," or temporary discounts, on. Wal-Mart U.S.'s comparable sales for the first half have risen 2.4%, as it increased traffic and gained market share Wal-Mart U.S. last year returned to comparable sales growth following two years of declines, helped by its strategy to broaden product assortment and add back products such as hunting and fishing equipment, and to lower prices.

CSD:INTODUCTION Before independence there were combined csd stores in sub-continent. In August 1947 emerged the CSD Pakistan. Between 1948-59, CSD enjoyed the status of a full-fledged Government Department, with complete tax exemption / rebates / In 1959, CSD was re-designated as a Full-Fledged, Self-Sustaining Commercial retail merchandising.

Today, it comprises 6 Zones, 126 Outlets, 5 Zonal Depots, 32 Hire Purchase Business Centers and 3 Petrol Pumps. The growth of CSD outlets in the past five years is depicted below:-

Why Shop With CSD? Reduced Rates:CSD provides daily-use items to all clients at a price 6-8 % lower than the market. Profit Sharing with Customers:through concessional/discounted rates and Loyalty Cards. No Credit Card Fee: Special Sales / Promotional Packages: Refund/ Exchange Policy:We offer refund/exchange of the goods, purchased at any CSD Shop, within 7 days of purchase.

Major operations Procurement Enhancing Supplier Base: In new era, CSD has ventured in establishing new stores, equipped with modern facilities. In order to feed such stores with increased customer flow, procurement has been stream lined, made effective and very proactive. Bulks of the products are being procured from Producers to eliminate middle man. The suppliers base has been enhanced specially by registering CSD for E Procurement with M/S Tejari Pakistan which has put CSD in a better negotiating position. It is bringing more transparency and effective savings in procurement

Low/Competitive Pricing: The new business operations are designed to work on low profits, selling large volumes thus, and passing on relief to more customers and at the same time generating more profits through huge turnover. In-store branding was also carried out in which CSD earned substantial amount. It incl renting out spaces, branding of store pillars, checkout counters, cat signs and Narrow Casting.

Supply chain a. Distribution: To ensure timely availability of max items at each outlet, a comprehensive replenishment program exists; adequate stocks are maintained at local/outstation shops and Depots. To attain a comfortable financial flow, bare min stocks to cater for requirement of 15/20 days of sale are being kept at local and outstation Shops. Most of the stocks are delivered by suppliers directly at major shops and at Depots, thereafter bulk breaking is done for further distribution to smaller shops of far flung areas. b. Control of Losses: Stock taking of each shop is done on monthly basis. Besides, due to increased frequency of Surprise Stock Taking by the central team and effective mechanism, NO case of theft/embezzlement has been found or registered during period July 2006 to date. c. Stock Management: The inventory is monitored, regulated and distributed as per demand at various locations.CSD Volume of Business d. Quality ManagementCSD Management ensures procurement of best quality products for its customers. Quality of all products is ensured.

Benchmark for next five years a. Simplification rectification of minor objections Decentralization. Previously all applications were received and processed at Head Office Level which took more time and added difficulties for the customers. Now this process has been decentralized by establishing HPBCs at various stations which is more effective Establishment of Hire Purchase Business Centers (HPBCs). 34 x HPBCs with independent Telephone lines have been established at various stations to provide speedy information about HP Schemes, Issue /receipt Customer Service Center. HP Customers Service Center (CSC) has been established which provides speedy access to information and resolution of complaints Additional Benefits to JCOs and Soldiers. Customer Feed Back.Being a customer Oriented organization; CSD management caters for the customer needs and to facilitate them, by providing befitting shopping atmosphere and quick response to their suggestion/observation DIFFERENCE BETWEEN WALMART AND CSD CSD WALMART

Particularly targets defense servantsNo such agenda

Located only in one countryLocated all over the world

Comparatively small scale retailer with small number of employeesA huge retailer giant with large number of employees

Less bulk purchase of inventory so small amount of capital investedHeavy purchase of inventory so large amount of capital invested

Simple distribution channelComplex distribution channel

Hard to accessEasily accessible

Comparatively low variety of products availableWide range and variety of products available

A rise in prices do impact its sales and profit to great extent

Rise in incomes or good economic cause no grand effect on its sales volume

Offer small discountsOffer deep discounts

Offer in certain products only to its specific customersNothing like that

Dont have any significant marketing campaignHuge marketing and promotion campaign

Csd rejected modernizationAll the modern methods are employed

Suffers from conventional and slight inconsistent managementHighly efficient and consistent management

Located in main areas of the citiesMakes stores in small markets , wipes put businesses there and gain monopoly

Its growth rate is very smallIts growth rate is very high

Its closely held businessIts publicly held business now

Majority of the stores are going into lossesMajority of the stores are going into profits