7-Eleven Marketing Model
The Innovative Marketing Model of 7-Eleven:
A Case Study
By: Jordan Barnes
MBA 6012
5/22/2015
Background and History 7-Eleven, Inc. operates and franchises the most recognizable chain of convenience stores in the United States and 15 other countries including, Canada, Japan, China, the Philippines, Australia, and Mexico. The 7-Eleven chain began in 1927 as an icehouse in Dallas, Texas by the name of the Southland Ice Company. Soon after, it began opening and operating stores under the name “Tote 'm Stores”. In 1946, the company extended it 's hours of operation from 7am to 11pm. As a result, the company decided to change the name of its ' stores to 7-Eleven. In 1999, the corporation changed its name from the Southland Corporation to 7-Eleven, Inc. In 2006, President and CEO Joseph DePinto decided he wanted to change the focus of the corporation. He used a pyramid analogy to explain that he wanted the customer at the top, the store level employees and managers in the middle, and corporate at the bottom. In doing this, the customer is the main focus, followed by the employees—the people who have the most contact with customers. This “pyramid” enforces the company 's product strategy known as the Retail Initiative. The Initiative utilizes technology to allow the store operator (whether franchisee or corporate store manager) to make key decisions in the products the store carries. A new product can be put on the shelf and within a day, store operators can see how well customers respond to the product. From there they can decide whether the price point is correct or if the product will even be profitable. Overall, the Retail Initiative gives store operators the opportunity to focus on products on an item by item basis. Slow selling items can removed from the shelves. This gives a big time global brand the focus of a single-store operation. In order to be an industry leader, a company has to be able to adapt to the ever
A Case Study
By: Jordan Barnes
MBA 6012
5/22/2015
Background and History 7-Eleven, Inc. operates and franchises the most recognizable chain of convenience stores in the United States and 15 other countries including, Canada, Japan, China, the Philippines, Australia, and Mexico. The 7-Eleven chain began in 1927 as an icehouse in Dallas, Texas by the name of the Southland Ice Company. Soon after, it began opening and operating stores under the name “Tote 'm Stores”. In 1946, the company extended it 's hours of operation from 7am to 11pm. As a result, the company decided to change the name of its ' stores to 7-Eleven. In 1999, the corporation changed its name from the Southland Corporation to 7-Eleven, Inc. In 2006, President and CEO Joseph DePinto decided he wanted to change the focus of the corporation. He used a pyramid analogy to explain that he wanted the customer at the top, the store level employees and managers in the middle, and corporate at the bottom. In doing this, the customer is the main focus, followed by the employees—the people who have the most contact with customers. This “pyramid” enforces the company 's product strategy known as the Retail Initiative. The Initiative utilizes technology to allow the store operator (whether franchisee or corporate store manager) to make key decisions in the products the store carries. A new product can be put on the shelf and within a day, store operators can see how well customers respond to the product. From there they can decide whether the price point is correct or if the product will even be profitable. Overall, the Retail Initiative gives store operators the opportunity to focus on products on an item by item basis. Slow selling items can removed from the shelves. This gives a big time global brand the focus of a single-store operation. In order to be an industry leader, a company has to be able to adapt to the ever
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