Professional Documents
Culture Documents
7-Eleven
Philippines
DataGroup
7-Eleven
Philippines
7-Eleven
CONTENTS
CONTENTS............................................................................................................................................. 2
Retailer Analysis - Introduction ............................................................................................................. 20
Structure of this report ....................................................................................................................... 20
1. The Retailer Report Analysis ................................................................................................ 20
Products ......................................................................................................................................... 20
Trading Area .................................................................................................................................. 20
Retail Competitors ......................................................................................................................... 21
Retailer ........................................................................................................................................... 22
Operations ..................................................................................................................................... 22
Buyers & Consumers ..................................................................................................................... 23
2. The Retailer Competitive Environment ................................................................................. 24
Products ......................................................................................................................................... 24
Trading Area .................................................................................................................................. 24
Retail Competitors ......................................................................................................................... 24
Retailer Operations ........................................................................................................................ 24
Buyers & Consumers ..................................................................................................................... 24
3. Market Research ................................................................................................................... 25
4. Business Planning ................................................................................................................. 25
SECTION 1 ........................................................................................................................................... 26
Analysis ................................................................................................................................................. 26
Part A : Base data on the Retailer ................................................................................................... 27
Part B : Financial Data..................................................................................................................... 42
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Footfall ...................................................................................................................................... 57
Lighting ..................................................................................................................................... 83
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Proficiency ................................................................................................................................ 97
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Core National Database Open the Core Database here ....................................................... 409
Sections ........................................................................................................................................... 409
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Products
The Product Groups (1 to 15) data is shown in the tables as
Product Group #1 to Product Group #15
Trading Area
The Trading Areas (1 to 15) data is shown in the tables as
Trade Area #1 to Trade Area #15
In addition data is given for all the significant Towns and Cities in Philippines, a list of
these can found here:-
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/RP.html
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Retail
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
Retailer
Operations
The Retailer Operations (1 to 15) data is shown in the tables as:
Operations #1 to Operations #15
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1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Buyers &
Consumers
The Buyers & Consumers (1 to 15) data is shown in the tables as:
Buyers #1 to Buyers #15
The Analysis of 7-Eleven consists of about 23 Parts or chapters with over 3600 research issues which
have been investigated through Surveys of the Staff of 7-Eleven, the Customers, the Competitive
companies, Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers, Trade &
Industry Experts, Banks & Financial Institutions, the Regulatory Authorities, and other sources.
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3. Market Research
The market research is Country specific, and provides data on all the Cities and Towns in the
home country: Philippines
For a list of Cities and Towns:
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/RP.html
The report provides historic, current and forecast Market data, Financial data for the retailers, Industry
data for the trade, Survey data, and a large body of market research for each of the Philippines Cities
and major towns.
World Market Research data (on potential overseas expansion opportunities for 7-Eleven) is available
as part of the After-Sales Service.
4. Business Planning
This section provided Business Planning software and utilities.
To make the data handling easier, the documents and databases are also
supplied on DVD or Hard Disk Drive which can then be used as a standalone
data source or, if required, manipulated and correlated with business planning
or statistical software.
The breakdowns of Product Groups, Trading Areas, Competitors, Retail Operations, and Customer /
Buyer Profiles are limited to 15 in each group because the Excel spreadsheets frequently analyse the
correlation of data between 2 groups of 15. Because of the general limitation of record field numbers
(generally 255 fields) one can only produce a 15 x 15 matrix.
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SECTION 1
Analysis
7-Eleven
7-Eleven - Philippines
7-Eleven
Key Personnel:
1. Chairman
2. Chief Executive
3. Directors
4. Executives
Corporate Summary:
5. Company Description
6. Company History
7. Legal Entity & Ownership
8. Company Facilities
9. Company Key Assets
10. Mainline product / service
11. Product / services provided
12. Parent Company
13. Bankers
14. Year established
15. Current employees
16. Issued capital
17. Shareholders
18. Last published turnover
19. Subsidiaries
20. Associated companies
21. Companies represented
22. Agencies
23. Physical processing locations
24. Capital investment
25. Advertising expenditure
26. Advertising media
27. Advertising posture
28. Sales promotion activity
29. Method of selling
30. Distribution
31. Distribution network
32. Use of distribution channels
Corporate Observations:
33. Stores
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Swot Analysis:
53. Strengths
54. Weaknesses
55. Opportunities
56. Threats
Goals:
64. Renovating premises, stocking, staff hiring and marketing
65. Sponsorship & Hosting events
66. Penetrate and raise awareness in the targeted consumer market
67. Achieving a higher profit margin
68. Building the customer base
69. Generate repeat and referral sales
70. Expansion potential
71. Reputation as a quality retailer
Exit Strategies
Management:
72. Organisational Structure
73. Leadership
74. Staff Members
Financial Plans:
75. Finance Requirements
76. Use of Funds
77. Cash Flow
78. Balance Sheet Topics
79. Financial Assumptions
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The above topics are covered as brief or concise elements to give an impression of the topic based
on trade and industry analyses. The body of the report provides the detail.
The Corporate Observations section is a concise headlining, or sound bites, of certain issues which
concern the retailer. In fact the Observations are based the analyses of several datasets which have
then been distilled into as few words as possible. In order to understand the data behind these
observations readers should consider the datasets shown below.
1. Company Description
A brief description of the activities of the company.
2. Company History
The corporate milestones for the company.
3. Legal Entity & Ownership
Listed, Private, Family.
4. Company Facilities
Retail Locations
Distribution
Property Portfolio
Production
5. Company Key Assets
Brands
Cashflow position
Copyrights
Customer Base
Customer Relations
Designers
Franchisees
Internet Presence
Investments
Liquidity
Locations
Management
Market Share
Patents
Product Range
Staff Abilities
Trademarks
Value Proposition
6. Stores
Number and location of stores
7. Store Brands
Retail brands of the stores
8. Store Sales Channels
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SWOT ANALYSIS:
26. Strengths tested:
Advertising Effectiveness
Brand
Business Alliances
Business Innovation
Competition
Consumer base
Cost advantages
Culture
Customer Service
Direct delivery capability
Economies of Scale
Excellent customer service
Experience and understanding of the Retail industry
Experience in the field
Financial Resources
Future Changes available
Good reputation among customers
Good Staff Training
Good Website
Industry knowledge
Innovative sales techniques
Intangible Strengths
Large administration component
Management
Market Lead
Market Location
Market Share
Personnel
Product Uniqueness
Proprietary knowledge
Relationship marketing
Relationship with customers
Relationship with employees
Relationships with suppliers
Reputation
Shopping experience and customer service
Sole supply agreements
Standards
Store Fitting & Systems good quality
Store Locations
Strong Brands
Superior product performance vs. competitors
Technology
Training
Unique brands
Use of new technology
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Contract theory:
Business contract theory holds that a business is a community of participants organized around a
common purpose. These participants have legitimate interests in how the business is conducted
and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise
being run by employees and managers as a kind of representative democracy.
Stakeholder theory:
Stakeholder theorists believe that people who have legitimate interests in a business also ought to
have a voice in how the business is conducted. The obvious non-owner stakeholders are the
employees. However, stakeholder theorists take contract theory a step further, maintaining that
people outside of the business enterprise ought to have a say in how the business operates. Thus,
for example, consumers, even community members who could be affected by what the business
does, for example, by the pollutants of a factory, ought to have some control over the business.
Business as property:
This philosophy holds that the business is essentially someone's property, thereby its owners have
the right to dispose of it as they see fit, within the restraints imposed by the law. Workers and
consumers have no special rights over the property, other than the right not to be harmed by its use
without their consent. Workers voluntarily exchange their labour for wages from the business
owner; and they have no more right to tell the owner how he will dispose of his property than the
owner has to tell them how to spend their wages, which is property belonging to the workers.
Furthermore, consumers have no rights to govern or manage the business, which belongs to
someone else.
Diversification Strategy:
Product diversification involves modifying the companys product/s or service/s to expand into new
markets by leveraging the companys existing product or service experience and reputation.
This strategy is especially attractive for companies operating in a saturated market. The product
diversification strategy calls for the company to go outside its existing business and develop new
products or services for a customer segments and new markets. This diversification might be based
on appealing to new customer demographics or price points.
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Regardless of which product development strategy is utilized, the process requires thoroughness
and a series of benchmarks throughout the process. These benchmarks help the company to
assess whether the expensive and time consumed in the product development process should be
continued.
Potential consumers must play a vital role in the product development process, and the consumer
evaluation of the new products or services should be conducted at concept, prototype and final
product stage.
Internet Strategy
The company should have a specific, fully costed, plan to invest in an Internet presence to sell
product online by advertising, marketing, taking orders, fulfilling orders, invoicing and collect
payment over the Internet.
1. Is the companys online strategy fully planned?
2. Is the retailers website a me too rationale?
3. Does this retailer have a valid business reason to operate an online selling site?
4. Does the online selling operation adversely reflect on the retailers brand?
5. Would the retailer be better advised to seek other channels to the market?
6. Will the retailers prospective product buyers search for them on the Internet?
7. Can the retailer adequately describe and demonstrate the value proposition of the products
over the Internet?
8. Can the retailer successfully compete in the online market space?
9. Can the retailer make a profit from the Internet?
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Marketing Strategy
The marketing strategy is composed of several interrelated components which embraces the
marketing mix:
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36. Operations
Evaluation of the operations strategies which influences the retailers performance:
New product/service development strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Vertical integration strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Facilities strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Technology strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Workforce and organization strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Capacity adjustment strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Supplier development strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Inventory strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Planning and control systems strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Improvement strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective
/ No comment
Recovery strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
GOALS
Evaluation of the achievement of goals which influences the retailers performance:
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EXIT STRATEGIES
Envisaged / Unknown / Not planned.
Operations
Brands
Product Lines
Store Locations
Operating divisions
Operating companies
Shareholders & Investors
MANAGEMENT
Evaluation of the retailers management:
46. Leadership
Company Leadership: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment
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FINANCIAL PLANS
48. Finance Requirements
Companys Financial requirements: Well met / Sustainable / Adequately met / Unsustainable / No
comment
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Balance Sheet and Management Accounts for 7-Eleven: as an Excel file: Part_B_2
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61. Un-recoverable Debts as a Ratio of Total 91. Stock Turnover (Sales as a ratio of Stocks)
Debt 92. Credit Period
62. Un-recoverable Debts as a Ratio of Debts 93. Creditors' Ratio (given as Creditors divided
Within Agreed Terms by Sales times 365 days)
63. Total Sales Costs as a % of Sales 94. Default Debtors given as a Ratio of Total
64. Total Distribution & Handling Costs as a % Debtors
of Sales 95. Un-Recoverable Debts given as a Ratio of
65. Total Advertising Costs as a % of Sales Total Debts
66. Total After-Sales Costs as a % of Sales 96. Working Capital / Sales
67. Total Customer Compensation Costs as a 97. Materials & Energy Costs as a % of Sales
% of Sales 98. Added Value
68. Total Variable Marketing Costs as a % of 99. Investment as a Ratio of Added Value
Sales 100. Value of Plant & Equipment as a % of
69. Total Fixed Marketing Costs as a % of Sales Sales
70. Total Fixed Marketing Costs : Ratio of Total 101. Vertical Integration (Value Added as a %
Variable Marketing Costs of Sales)
71. Variable Sales Personnel Costs as a Ratio 102. Research & Development Investment as a
of Marketing Costs % of Sales
72. Variable Distribution & Handling Costs : 103. Capital Expenditure Investment as a % of
Ratio of Marketing Costs Sales
73. Variable Advertising Costs as a Ratio of 104. Marketing Costs as a % of Sales
Marketing Costs 105. Current Ratio (Current Assets as a ratio of
74. Variable After-Sales Costs as a Ratio of Current Liabilities)
Marketing Costs 106. Quick Ratio
75. Sales Personnel Variable Costs as a Ratio 107. Borrowing Ratio (or Total Debt as a ratio
of Sales of Net Worth)
76. Sales Personnel Variable Costs as a Ratio 108. Equity Ratio (Shareholders Funds as a
of Debtors ratio of Total Liabilities)
77. Sales Personnel Variable Costs as a Ratio 109. Income Gearing
of Un-Recoverable Debtors 110. Total Debt as a ratio of Working Capital
78. Exports as a % of Sales 111. Debt Gearing Ratio (Long Term Loans as
79. $ Hourly Pay Rate a ratio of Net Worth)
80. $ Hourly Wage Rate 112. Average Remuneration (all employees -
81. Capital Employed full and part)
82. Return on Capital 113. Profit per Employee
83. Return on Assets 114. Sales per Employee
84. Return on Shareholders' Funds 115. Remunerations / Sales
85. Pre-tax Profit Margins 116. Fixed Assets per Employee
86. Operating Profit Margin 117. Capital Employed per Employee
87. Trading Profit Margin 118. Total Assets per Employee
88. Return on Investment 119. Value of Average Investment per
89. Assets Utilisation (ratio of Sales to Total Employee
Assets) 120. Value Added per Employee
90. Sales as a ratio of Fixed Assets
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Data is given on the 15 main product lines which represent at least 80% of revenues at 7-Eleven.
In-House Brands
Data is given on the 15 main products which are considered as being In-House Brands or Own
Brands. This is the In-House Brand addendum.
Data is given on the 15 main products which are considered as being Third Party Brands. This is the
Third Party Brand addendum.
Data is given on the 15 main Ancillary and Add-Value Products & Services. This is the Company
Services addendum.
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
The composition of the retail trading area population is critical to the retailer. The population will
include a variable mix of income groups, family groups, homeowners or renters, age groups, ethnic
groups, educational norms, employment groups, et cetera. Each population mix will determine how
the general population in the trading area is likely to purchase various consumable and durable
products.
To analyze market opportunities for a trading area, one needs to examine data and ask questions like
the above about residents of the trading area. This data must include the absolute number of
residents, as well as their household characteristics. Current and projected demographic, lifestyle and
consumer spending data about the trading area from secondary sources can provide this information.
Demographic and lifestyle data about the trading area can give one a starting point for an in-depth
analysis of specific business and retail development opportunities. This data also can help understand
how the broader population changing.
Demographic Data
It is assumed that product preferences vary across different groups of consumers. These preferences
relate directly to consumer demographic characteristics, such as household type, income, age, and
ethnicity. For this reason, it is not only the amount of demand that truly matters to a trading area; the
Mix of Consumers also has a major impact on a trading area, and therefore must be thoroughly
examined in all retail analyses. Albeit, there is a great deal of data included in these studies which
then has to be analysed. The enormous amount of data can leave the user with a large number of
tables and consequent information overload; therefore a number of toolkits are provided by
DataGroup to assist users with software to present and interpret the data.
Interpretation of demographic data is often missing in market analysis; however in neglecting this data
one fails to fully appreciate how consumers spend their time and money. Specifically, the data
provides insights into new business or retailing opportunities in the trading areas. Understanding and
interpretation of demographic data includes the following elements:-
Population and household composition data allow one to quantify the current market size and
extrapolate future growth. Population is defined as all persons living in a geographic area.
Households consist of one or more persons who live together in the same housing unit;
regardless of their relationship to each other (this includes all occupied housing units).
Households can be categorized by size, composition, or their stage in the family life cycle.
Typically, demand is generated by the individual or the household as a group. Thus, the entire
family influences a household purchase, such as a family car or TV. Individual purchases, on
the other hand, are personal to the specific consumer. Anticipated household or population
growth may indicate future opportunities for a retailer. An analysis of household and/or overall
population growth provides aggregate potential retail demand in a population.
Household income data is a good indicator of the populations spending power. Household
income positively correlates with retail expenditures in many product categories. When
evaluating a market, retailers look at the median or average household income in a trading
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area and will seek a minimum number of households within a certain income range before
establishing a business or setting prices. Another common practice is to analyze the
distribution of household incomes. Discount stores may avoid high income areas. Some
speciality fashion stores target incomes above $100,000 households. A few store categories,
such as auto parts, are more commonly found in areas with lower household incomes.
However, using income as the sole measure of a markets buying preferences can be
deceptive and one needs to consider all categories of demographic data when analysing a
market.
Highly affluent households with annual incomes above $200,000 comprise one of the
fastest growing segments of the population; increasing in some countries by more
than 3 percent each year since 2008. They are strong consumers, as well as
physically active and conservative in their habits. Gearing a retail mix toward this
segment may require a focus in luxury goods and services. High-end department and
technology stores, as well as cultural amenities like museums and concert halls, are
frequented by the most affluent households within a population.
Middle-income households with annual incomes between $50,000 and $100,000 are
much more mindful of their expenses than highly affluent families. These households
tend to be more frugal and selective in their buying behaviour, shopping at discount
outlets for groceries and other goods rather than high-end stores, especially since
2008. Superstores are particularly popular for middle and low-income households.
Education levels also figure into the socio-economic status of an area. Because income
usually increases with advancing educational attainment, many retailers focus on income
level rather than education. There are some exceptions to this, though. Bookstores are often
cited by retailers as a business whose success is directly correlated with the number of
college educated individuals in the trading area. Similarly, computer and software stores are
often located in areas with high levels of education. In general, areas with high levels of
educational attainment tend to prefer luxury items; and, they may have a preference for
shopping at smaller, non-chain specialty retail stores located in the fashionable districts. They
also tend to visit cultural establishments like museums and theatres at a frequency over three
times greater than those without a college degree. On the other hand, less-educated
populations generally have lower incomes and thus tend to prefer shopping at discount retail
outlets and chain stores. This group also spends more money on car maintenance and
tobacco products than those with a college degree.
Occupational concentrations of white and blue-collar workers are used as another gauge of a
markets product preferences. Speciality apparel stores thrive in middle to upper income
areas and those with above-average white-collar employment levels. Discount clothing stores
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and used car dealerships are successful in areas with a higher concentration of blue-collar
workers. Office supply stores and large music and video stores are especially sensitive to the
occupational profile. These retailers target growth areas with a majority of white-collar
workers.
Ethnicity is another factor retailers consider when choosing merchandise to carry. Data show
that ethnicity affects spending habits as much as other demographic characteristics, such as
income and age. Tastes in goods and services vary between ethnic groups, and local retailers
are wise to cater to the different needs of ethnic groups in their trading area. Ethnicity
influences retailers product mix, including the lines of clothing they carry, and their
advertising. Retailers that use segmentation based on race and ethnic groups must make
sure their efforts effectively measure the true preferences and behaviours of the community.
Housing ownership and rate of housing turnover is an important factor for some retailers to
consider. Home ownership directly correlates with expenditures for home furnishings and
home equipment. Furniture, appliances, hardware, paint/wallpaper, floor covering, garden
centres and other home improvement products all prosper in active housing markets.
Demographic statistics are especially useful if they are presented in comparison with other locations.
To see how the target trading area differs from other locations, it is useful to provide comparison sets
of data: comparable populations and the regional or national data as a whole.
1 Philippines
2 Southern Tagalog
3 National Capital Region
4 Manila
5 Central Luzon
6 Western Visayas
7 Central Visayas
8 Southern Mindanao
9 Bicol
10 Ilocos
11 Eastern Visayas
12 Western Mindanao
13 Cagayan Valley
14 Northern Mindanao
15 Muslim Mindanao
In addition the individual Cities and Town in Philippines are provided in the Market Research in
Section 3
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/RP.html
Comparing the target trading area with other populations and the regional data allows demographic
baselines to be established. These baselines will help determine whether the target trading area has
low, median, or high values in each demographic category. For instance, after examining
demographics for the target trading area, it may appear that there are a high proportion of white-collar
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7-Eleven - Philippines
workers. However, this observation cannot be verified until one know what constitutes an average
number of white-collar workers.
Comparable populations can include five or six urban areas of similar size in the same region. The
urban areas chosen should reflect similar distances from metropolitan statistical areas of the region.
Depending on the geographic size of ones primary trading area, one will need to select similar-sized
trading areas.
In addition to comparable populations, adding regional or national statistics will provide a broader
benchmark for comparing a specific trading area. Regional or National data will include a blend of
urban and rural areas. Accordingly, it will not be limited to uniform populations. However, differences
between the trading area and the regional or national data (such as per capita income) will be used
later in ones analysis of retail or service business opportunities.
Detailed local census data is readily available from various national government agencies around the
world. For example, the U.S. Bureau of Census data can be retrieved at several geographic levels
(county, city/village, census tract, zip code, etc.); and similar data exists in many countries.
In addition to the government data, there are numerous, national data sources that can provide
demographic estimates for a particular trading area; albeit, much of this data is based on the
government and other public sources. Unfortunately much government data is not packaged in user-
friendly comparative formats that make it easy to compare one geographic area with another. One
needs to be able to tap into the knowledge of skilled demographers who have designed data products
centred on particular industry needs.
The essential retail tool is the correlation of general population demographic data with individual
markets and products. These DataGroup databases are designed to provide such data.
Lifestyle Data
Adding consumer lifestyle data takes the market analysis nearer to the reality of any market
forecasting situation. This data recognizes that the way people live (lifestyle) influences what they
purchase as much as where they live (geography) or their age, income, or occupation (demography).
Lifestyle data enables one to include the consumers interests, opinions, and activities and the effect
these have on buying behaviour in the retail analysis.
Lifestyle Segmentation examines the relationship between a populations lifestyle characteristics and
its product preferences. Retail revenues of particular Product Group classes are stimulated by large
concentrations of populations of similar characteristics and tastes. As a result, a retailer can develop
product mixes targeted to specific customer segments which display a high propensity to consume
the product range(s) being marketed.
Concentrations of lifestyle segments create demand for specific products or services. This tendency
to cluster is based on the evidence that people prefer to live close to those similar to themselves.
Homes and cars in any particular neighbourhood are usually of similar size and value. If one could
look inside the homes, one would find many of the same products. Neighbours also tend to participate
in similar leisure, social, and cultural activities.
The quality of a segmentation algorithm is directly related to the data that it inputs. High certainty
algorithms allow one to reliably predict consumer behaviour. In a retail business targeting particular
consumers, the algorithm allows the retailer to identify products and services that appeal to that
market segment. The usefulness of a segmentation algorithm depends on how well the data
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7-Eleven - Philippines
incorporates lifestyle choices, media use, and purchase behaviour into the basic demographic mix.
This supplemental data comes from various sources, such as till receipt records, credit reference
agencies, automobile registrations, magazine subscription lists, consumer product-usage surveys,
and so forth.
These DataGroup databases offer lifestyle cluster data, which utilize sophisticated statistical models
to combine several primary and secondary data sources to create their own unique cluster profiles for
each product group and market segment. Most models start with data from block groups that contain
500-1500 households. In rural areas, the data is more typically clustered by post or zip code. This
data will breakdown each geographic area into one or more of the over 100 defined market segment
classes based on differentiated socio-economic and demographic characteristics.
The Segmentation will include quantitative data, such as the Consumer Values Models, Product Life
Cycle Models, Buying Power Index, Quality Index, Advertising Efficiency Models, and so forth, which
measures potential demand for specific products or services groups. These indices compare the
demand for each market segment with demand from both regional and national consumers. It is
tabulated to represent a value of 100 as the average demand. The indices can be aggregated into a
single value. Values above 100 indicate residents are more likely to purchase that product or
participate in the respective activity. Conversely, values below 100 indicate residents are less likely to
purchase the given product. These values are then shown for the Trading Area of the specific
Retailer, the Regional and National values and the overall Median value.
From this data, a clear picture of the important demographic, socioeconomic, and consumer
behaviour of residents in a specific Trading Area emerges.
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Lifestyle segmentation generalizes the types of customers in the trading area, which is useful in
making sense of a complex market. However, this simplification may not fully capture the particular
behaviours of the customer base or may overlook the propensity to consume of differentiated groups
in the trading area. Since data is continually updated in these DataGroup databases, lifestyle
segments are evaluated in near real-time. This is valid both where social and economic conditions
remain constant and where significant changes may make a static view of the segment less
representative of reality.
Thus lifestyle segments can greatly help one understand customers in the trading area only where the
survey data is gathered and updated on a regular and statistically valid basis.
Estimates of household spending give an idea of the size of a market in value terms. For example,
Secondary data are available that allow one to estimate the size of the local food or restaurant
market, based on the number of households in the trading area. In addition, Primary data is useful to
provide refined estimates based on local demographics. It is important to remember that these
estimates measure the amount of spending by households residing in the trading area, not
necessarily spending within the trading area that also includes non-residents. Conversely, residents of
the trading area may choose to spend outside the trading area.
Consumer Expenditure Surveys are the primary data source for Propensity to Consume estimates
that covers a whole range of household spending. The results of the surveys provide a
comprehensive picture of household spending and are used to revise the Consumer Price Index and
the Purchasing Parity Index for national (and sometimes regional) markets.
The Consumer Expenditure Survey usually includes a Diary Survey of daily purchases and an
Interview Survey of general purchases over time. The Diary Survey reflects record-keeping by
consumer units (individual and household shoppers) for two consecutive week periods. This
component of the Consumer Expenditure Survey collects data on small, daily purchases that could be
overlooked by the quarterly Interview Survey. The Interview Survey collects expenditure data from
consumers in interviews conducted on a randomised monthly basis. The data from both surveys is
integrated to provide a comprehensive database on all consumer expenditures.
In addition to the Consumer Expenditure Survey, there are supplementary and complementary
datasets to provide more sophisticated estimates of specific market segments and product group
consumption patterns. For example, a Differential Probability Model links spending by the consumers
surveyed to all households, with similar socioeconomic characteristics, with opportunity costs and
differential spending patterns. The results are spending estimates based on the demographics of a
particular trading area, which are reported together with the average spending per household and a
spend Propensity to Consume index. The index compares the spending of the trading areas
households to the regional and national average.
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Demographic data for a trading area is often reported as single values for each demographic
category. For example, the trading area income is reported as one value, even though income can
vary across the trading area. GIS, however, can display demographic values in finer detail by
geographic unit (zip code, street blocks, etc.). Mapping these variations may reveal valuable visual
information that can be used to show the attractiveness of different retailing locations and assist retail
site planning.
In addition to understanding the propensity to consume within a specific trading area, one also needs
to analyse geographic factors which may assist or impede those consumption patterns. For example,
geographical barriers (rivers, railroad tracks, highways, et cetera), which may divide an area and
thereby put certain locations in a shadow zone which is difficult for consumers to reach. By contrast,
rapid transit transport links may assist service industry retailers, and stores selling small or easily
transported items.
GIS is not limited to producing maps and graphics, but can also be used as an analytical tool in
demographic analysis. Non-resident visitor profiling is vital for many companies, such as commuter
transportation, catering and tourist attractions. While collecting demographics for the surrounding
resident market is a straightforward process, non-resident visitors can come from a wide area; and
obtaining and analysing demographics for every area that produced a non-resident visitor is
unrealistic using traditional methods. In these instances, GIS can be used to profile demographics of
the non-resident market.
Many businesses, such as hotels, and Destination retail venues (like flagship department stores or
luxury goods shopping streets), dependent on non-resident visitors and the use of data mining
techniques for customer records and payment records can be interfaced with GIS to produce a more
comprehensive view of a business actual catchment area.
The demographic profile is even more useful when it is given some perspective. Similar to the
comparable population analysis, the visitor demographic profile can be used to determine what makes
visitors demographically different from the general population. Instead of comparing local trading area
demographics to those of other populations, the visitor demographics can be compared to the
demographics of a larger region. For instance, if visitors primarily originate from a regional area, the
visitor demographic profile can be compared to the demographics for the entire population of that
region. These demographic profiles of the trading area visitors and the larger region can be compared
on a category by category basis.
Once the visitor origins have been mapped, GIS is used to determine the trading areas containing
each visitor and extract the associated neighbourhood demographics. These neighbourhood
demographics are used as a proxy for the demographics of an individual visitor.
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GIS is used to combine all of the demographics extracted from every visitor neighbourhood.
Combining the trading areas creates a demographic profile of the visitors. To aid in the analysis, GIS
also creates a demographic profile of the larger region. The regional demographic profile includes
every trading area in the region instead of just those neighbourhoods that produced visitors. These
profiles are then used to examine differences in visitor demographics.
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Neighbourhood Analysis
The ideal tenant mix in which a retailer locates a store will depend on the various indicators of retail
success including sales density, visitor traffic, visitor demographics and often more importantly, the
nature and customer base of the other retailers in the retail space.
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Site Analytics
Site Analysis
It is essential for retailers to analyse and integrate data from each site. This includes sales, inventory,
visitors, conversion rates, staffing numbers, marketing and advertising promotions, public holidays,
weather, and other variables. This data gathering should be automated and DataGroup can provide
clients with suitable site based software that will capture this data.
Site Analytics
The analysis of the data will provide retailers with many tangible business planning tools, including:-
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Footfall
Footfall Analysis
The collection of this data is essential to the analyse and understanding of customer behaviour and
trends as well as to allow retailers to understand conversion rates and retail location characteristics in
order to improve their business planning and forecasts. The understanding of footfall data can allow
the evaluation and understand of before and after scenarios for marketing and promotional activity;
understand footfall during both slack as well as peak periods; benchmark performance amongst
individual sites and generally in regions; and allow the use to see how and when one might improve
ones profit ratios. Essentially, one gains insight into how one might optimise sales performance
through better sales efficiency, conversion rates, and customer service.
Footfall Analytics
The question of whether a retail site is performing to its full potential can only be answered if one can
analyse visitor numbers and compare those with other sites, other competitors and other distribution
outlets.
Essentially, the first question one must ask is if the property is properly positioned and located for
maximum profit and minimum risk.
Retailers use the data to locate their store portfolio, organise their markets, and segment their
customer data.
Retailers can measure the effectiveness of each location in attracting potential customers to their
premises. This is done in conjunction with different methods of marketing and promotion for different
store locations to develop an understanding of store performance and untapped store potential. This
is then extended to analyse conversion ratios to determine whether footfall numbers can be converted
into tangible sales.
Footfall Technology
The technology used to capture footfall data is relatively straightforward and essentially consists of in-
store sensors which count visitors and the appropriate data recorder and software to record those
visits. These sensors will consist of one or more of the following technologies, Car Counting Retail
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Traffic, Laser Counter, Stereoscopic Video Cameras, Thermal Cameras, Wireless Infrared Beam, et
cetera. The actual equipment used always depends on the individual site circumstances.
Footfall measurement should be flexible, intuitive, and non-intrusive. Systems are designed for self-
administration and customised reporting of datasets:
Conversion Rates
Conversion Analytics
The Conversion Rate is of course a vital issue. After having invested in footfall, the retailers want to
know how to convert that footfall into revenue. These measurements also allow retailers to identify
poorly performing stores where footfall is not being converted into sales.
Conversion Factors
The factors which influence conversion rates are complex; however they are decipherable with the
use of suitable software. Data analysis allows all the relevant factors to be considered when
evaluating and formulating store strategies. These may include the following issues:-
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
4. Select the range that best describes the approximate annual sales for the company at this
location.
a. Less than $100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Dont know or Other
5. How much would you estimate you spent (in total) on the following advertising, sales and
marketing activities (at this location) in the past 6 months?
a. $0
b. Less than $500
c. $500 to $1,500
d. $1,500 to $9,000
e. $9,000 to $20,000
f. $20,000 to $50,000
g. $50,000 or More
h. Don't know
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6. Specify what percentage of your annual advertising budget is spent in the following
categories:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday & greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
7. For each of the following advertising, sales and marketing services listed, which have your
company purchased in the past 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
8. For each of the following advertising, sales and marketing services listed, which do your
company plan to purchase in the next 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
9. If you conducted a direct mail campaign in the past 6 months, how did you go about preparing
and sending your direct mail for the most recent campaign you ran?
a. Did the entire process internally (everything from writing letter, buying supplies,
printing, stamping and mailing)
b. Outsourced the direct mail to an agency
c. Used an on-line provider
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10. If you conducted a direct mail campaign in the past 6 months, which of the following items did
you send as part of the most recent campaign you ran?
a. Postcard
b. Coupon
c. Letter
d. Newsletter
e. Brochure
f. Gift item
g. Other
11. How satisfied are you with the overall results of your direct mail campaigns; that is, the
increase in sales you generated or the overall impact on your business.
a. Extremely satisfied
b. Somewhat satisfied
c. Neither satisfied nor dissatisfied
d. Somewhat dissatisfied
e. Extremely dissatisfied
12. If you outsourced your advertising, print production, or direct sales campaigns, what was your
opinion of the performance you received:
a. Poor value for the money/ price
b. Low quality of finished product
c. Too complicated
d. I like to be able to see the proofs or samples before the campaign
e. Uncomfortable outsourcing
f. Want to do it ourselves
g. Slow speed of service
h. Too much of a hassle to switch vendors
i. Dont trust the supplier
j. Other
13. How likely would you be to outsource your advertising, print production, or direct sales
campaigns?
a. Very likely
b. Somewhat likely
c. Somewhat unlikely
d. Very unlikely
e. Other
14. If you use a direct mail or sales prospect list, how did you acquire the list that you used most
recently?
a. The companys own customer list
b. Purchased a list from an external list broker
c. Purchased a list from a catalogue
d. Purchased a list from a direct mail agency
e. Purchased a list from an on-line list service
f. Did not acquire a list
g. Dont know
15. Would you be likely to consider using a list from a partner company, and providing your
company list in exchange?
a. We dont use lists or use only the companys customer list
b. List quality important
c. Uncomfortable with sharing
d. Too much of a hassle to arrange co-operative deals
e. Other
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16. Regarding the role you play in selecting Website Services for your company. For each of the
items below, tell us what your individual involvement is in the purchasing process.
a. Advertising
b. Determine need to purchase
c. Evaluated various products/vendors
d. Authorised / approved purchases
e. Determined where to purchase
f. Placed orders
g. All of the above
h. Other
Focus Panels
Customer Surveys of 7-Eleven: as an Excel file: Part_E
In respect of the current (Test / Benchmark) advertisement campaign that promotes this company /
product / brand and current advertisement campaign of 14 competitive companies / products / brands:
18. After considering the advertisements, divide them into three groups. That is, arrange the
advertisements into those you:
a. Will watch over and over again
b. Might watch several times
c. Never want to watch again
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24. Here are listed several concepts or feelings. Pick out the concept or feeling you think is most
closely associated with the advertisements:
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life
25. Tell us about a situation in which you have consumed/used/bought/etc. the product and felt
like the people or characters shown in the advertisement.
26. After watching the test or benchmark advertisement. What people, characters, or things stand
out in the advertisement?
27. What thoughts and feelings is each person and character having during the advertisement?
How do you know that?
28. What does the advertisement say about the product? Where in the advertisement do you see,
hear, or feel that?
29. What parts of the advertisement don't seem to fit together? That is, parts of the advertisement
that causes some confusion or perhaps is distracting?
30. Pick out the concept or feeling you think is most closely associated with the advertisement.
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life
31. After seeing the companys advertisement, tell me how strongly you think it will motivate
people like you to purchase the product during the next one or two weeks?
32. How do you rate the advertisement?
33. Why do you think it will motivate people like you to purchase the product?
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35. Other than trying to get you to buy the product or service, what is the main message of these
advertisements?
38. If you were describing this advertisement to a friend, would you say these advertisements
were:
a. Active
b. Attention-getting
c. Boring
d. Cheerful
e. Creative
f. Emotional
g. Energetic
h. Genuine/sincere
i. Honest
j. Humorous
k. Informative
l. Irritating
m. Memorable
n. Natural
o. Offensive
p. Pleasant
q. Satisfying
r. Strong
s. Unique
t. Warm-hearted
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40. Based on the Product features advertised, and in the Company advertisements:
a. The advertisement message is understandable.
b. The advertisement is believable
c. The advertisement's message is relevant to me.
d. The benefits described in the advertisement are believable to me.
41. After viewing this advertisement, would you consider purchasing the product?
42. These advertisements are much better than other advertisements for competitive products in
this product category.
Evaluation of TV, Newspaper, Print, and other advertisements viewed for the retail store:
45. Indicate your evaluation of Store TV, Radio, and Internet advertisements:
a. Attractive
b. Interesting
c. Informative
d. Professional
e. Entertaining
f. Effective
46. Indicate the number of friends, relatives or neighbours consulted while researching for this
product.
47. Indicate the number of TV or radio advertisements that you remember seeing during your
search for the product purchased.
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48. Indicate the number of Consumer reports that you reviewed in researching for the product
purchased.
49. Indicate the number of Newspaper or magazine advertisements that you remember seeing
during your search for the product purchased.
50. Where was the last place you saw or heard an advertisement for this Store?
a. newspaper
b. magazine
c. TV
d. Radio
e. Internet
f. Flyer
g. other
52. What time of the day do you most often watch TV?
a. morning
b. afternoon
c. evening
d. late night
60. What other brands of product(s) in this category have you used?
a. I haven't used the product(s), but I'm familiar with it.
b. I know nothing about the product(s).
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63. What would be your main reason for buying the product?
64. Overall, how interested are you in buying this product if it were available?
a. Not at all Interested
b. Not Very Interested
c. Neither Interested nor Uninterested
d. Somewhat Interested
e. Very Interested
65. Which of the following best describes your need for this product?
a. I really need this product because nothing else compares.
b. This is a minor improvement over what I currently use.
c. It looks okay but is about the same as my existing product.
d. My current product would serve me better.
e. I do not need this product?
66. What price would you expect to pay for the product(s)?
67. Assuming the this product is priced comparably to other major brands, would you say it is:
a. Very poor value
b. Somewhat poor value
c. Average value
d. Fairly good value
e. Very good value
68. In what ways does the described product appear to be superior to other product(s) in this
brand category?
69. Overall, what would be your most important factors in choosing a product(s) in this category?
a. Value
b. Best performance
c. Good repair/Warranty service
d. Recognised brand name
e. High quality
f. Shopping convenience
g. Easy/fast service
h. Discount
i. Good sales personnel/dealer/outlet
j. Broad selection of products
k. Do not know
l. Other
70. Other than the product itself, which of the following would most influence you when deciding
to buy the product(s)?
a. Commentary in the media or on TV
b. Commentary on the Internet
c. Word-of-mouth
d. Sales/service representative
e. Industry publications
f. Advertising
g. Trade shows/events
h. Guarantee/warranty offers
i. Other
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Shopper behaviour is constantly changing and by understanding the response to different marketing
approaches and channels, one ensures the best value from the marketing budget.
Site Analytics enables one to capture the timings and category of marketing campaigns, alongside all
the critical site data to evaluate marketing within the context of key variables such as weather, time of
year and critical outcomes such as traffic and retailer sales lift.
In considering the overall direction of the company's marketing effort, how would you rate:
73. the company's vision and direction?
74. the overall company operations today, compared with a year ago?
75. the financial strength of the company?
76. the efficiency of workflow in the company?
77. the company's skill in marketing products?
78. the ability to develop strong consumer promotions?
79. the regular introduction of new products?
80. the introduction of new, innovative packaging?
81. the company's focus on improving customer satisfaction?
82. the quality of relationships with distributors?
83. the company's effectiveness with retailers?
84. the quality of the promotional activities?
85. the quality of the sales support materials?
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
Customers demand an in-store experience in return for shopping (in personal) at speciality retail
outlets; and increasingly at general retailers as well. The improvement of store-level operations is
often not a prime concern of senior corporate managers; however failure to be aware of the
expectations of customers will only damage profitability. An effective site operations program which
creates a differentiated (and hard for competitors to replicate) store experience will attract and hold
the attention of shoppers.
Delivering an experience that is satisfying to customers and differentiated from competitors drives
both repeat visits and improved store productivity. Conversely, a failure in satisfying the expectations
of a fulfilling experience will leave customers wanting to try competitive offerings; be that a new store
brand or an existing store brand with a new offer or promotion. Furthermore, a bad store experience
will generate a ripple of negative comments with that customers family, friends, and co-workers.
For every retail situation, the interaction with the customer represents a mosaic of perceptions,
neuroses (and indeed psychoses) on the part of the customer; within the container which represents
both the store environment and the actions of store personnel. The help the customer (indeed to help
the customer spend his or her money) the retailers must provide an appropriate store experience
which includes:-
Whilst the Product & Retail Offer design presents to the customer the outward sign of the store
experience, this can represent a major investment for the retailer, and any defects may entail major
upgrades such as new layouts, a new visual image, and brand enhancements; and these often
require substantial capital investment and time commitment to execute. Likewise, customers perceive
the impact of offer Support Programs that might be introduced at a corporate level, however even the
best programs must be underpinned by effective and consistent on-site execution. Otherwise, the
retailer makes promises and offers in its advertising and other communications that many of the
outlets cannot fulfil for operational reasons. By contrast, Site Operations, can be rapidly improved and
this will yield improvements in the customer experience and result in improvements in revenues.
Reliable store performance to ensure a high level of customer store experience will lead to greater
customer loyalty, consistent repeat business, and more flexibility to expand the product offering.
The key to reliable store performance is properly selected, trained, and motivated employees who are
more productive, consistently more effective with customers, and more aware of store effectiveness
and performance. In such retail environments a retailer can expect like for like outlet revenues to be
25-50% greater than the average. Notwithstanding the fact that personnel performance
enhancements take time to implement, such improvements involve little or no capital outlays and help
differentiate a retailers stores from those of competitors.
Retailers should consider and expect several factors to be critical to their operation:-
4. A consistent product offering from friendly and knowledgeable employees who quickly assist
and guide customers to the right products.
5. Help and Advice with customer requests.
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For retailers to excel in consistent site operations they must understand that sustained execution
requires more than just operations manuals and a full complement of staff.
Retailers must develop and use interconnected operating system with detailed and fully defined
processes that can deliver a consistent customer experience across the entire store chain.
Through clearly defined customer interaction scripts, detailed daily activities guides and employee
schedules, targeted hiring, training, and development, and a motivating career path and
compensation plan, employees have the tools and authority to truly focus on the customer and deliver
the right experience again and again.
Without a thorough store operating system, retailers (irrespective of enormous and creative
advertising, strong product offers, and high quality store designs) will be compromised.
Sales and profit margins may vary across a store network. Customer numbers and sales may vary by
200-300% across individual stores; however in trying to understand what accounts for performance
differences one might naturally look at individual store locations and customer traffic flow, local
competitive set and density, differences in size, layout, and age of store, and local marketing and
pricing. However retailers often fail to understand the impact on revenues from an inconsistent
customer experience.
Variances in customer store experience produce a 20-40% sales performance difference. In contrast
to the other factors, this portion of the difference is not structural and can be remedied rapidly and
effectively.
Retailers should use independent Mystery Shoppers and regular Customer satisfaction surveys to
monitor these dynamics.
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30. Senior staff not regularly visiting and shopping at franchisees stores
31. Senior staff not regularly visiting and shopping at competitors stores
Improving store-level operations usually yields a high return on investment and tends to increase
sales and margins by between 5-15%. Good quality site operation creates a sustainable competitive
advantage and differentiation, in addition to a reinforced culture of customer focus, motivated and
productive employees, and lower staff turnover. Such improvements benefit retailers of all sizes,
formats, and competitive positions and unlock latent value from store operations
The benchmark of all good retailers is the placing the customers at the very centre of the site
operation. However much managers may be involved in hiring staff, organisation, and maintaining
sites, the prime imperative must be the dynamic between customer and store experience. Retailers
cannot allow this vital relationship to vary store by store due to the vagaries of either inconsistent
store presentations or employee training. Managers must ensure that adequate systems exist which
provide staff-customer interaction guides, customer handling scripts, service tools, and explicit
systems which guarantees that employees know how to treat customers and create a consistent store
experience.
Senior corporate managers at retailers should maintain a regular and rigorous, critical assessment of
the current operations in order to identify if and where gaps exist with best practice.
A professional product offerings and brand management are of course essential; however they must
be complemented by consistent site execution at each outlet.
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Distribution channels
Retailers that operate franchise, license, or dealer distribution channels must seek to control the on-
site operations of their distributors, especially in the matter of customer store experience.
Customers do not differentiate between one type of store operation and another, they only see the
store brand and they expect and demand a consistent level of customer service.
The most successful franchisors make sure that their franchise operating system and standards
enable the franchisees to execute the required customer experience.
Retailers distributing their products via third party outlets need clear guidelines for their distribution
channel:-
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88. Excitement
89. Innovation
90. Investment in Digital devices, POS and Display
91. Quality design concepts
92. Showcasing
93. Technology
94. The Beating Heart of the brand
With Main Streets and High Streets in decline, and evidence of tough times in shopping centres and
malls, it is becoming increasingly clear that retailers cannot simply sit back and wait for consumers to
pass their doors. Retailers have to develop their stores as Destinations. Consumers come to the store
not because they happen to be passing down the street, but because they are specifically attracted to
the store.
Retail multiples are bombarded with the constant noise and distraction of independents that open a
store with a local fanfare, distract the consumer, and then equally quickly disappear. These
independents, whilst being a nuisance, can act as a stimulus to established retail chains because the
independents often bring innovative approaches and interesting service offerings to consumers. The
retail chains can often learn from independents and apply the lesson across their network.
Multiples engage in gimmickry on an ad hoc basis from time to time. The Selfridge's department store
in London produced a "No-Noise" in-store promotion whereby they attempted to sell name brand
products with no logos. The store suggested that it was, "To help you find balance in this fast-paced
world customers to find a moment of peace in a world where we are bombarded by a cacophony of
information and stimulation."
Burberry has used digital high tech for its brand of reinvention. The grand opening of its largest Asia
Pacific store dramatized its bad weather gear by making it virtually rain during its "Burberry World
Live" launch. Then Burberry turned its flagship London store on Regent Street into a "living website"
a digitally-enhanced shopping experience that filled the 44,000-square foot space with innovations of
all kinds (including that previously debuted digital rain). In the Chicago store it hosted a local event
that continued the theme of "retail as theatre," incorporating digital media, entertainment and fashion.
These however are more evidence of over exuberant PR people rather than any real attempt to
produce meaningful in-store experiences.
More significant was when Marks & Spencer installed 10 virtual mirrors in their retail stores to coincide
with their virtual mirror application available on their website. Customers can see, in-store, how
cosmetics and make-up look against their skin, without actually applying the makeup. This uses
technology which helps the customer consider choices and possible combinations without the time
and inconvenience of the actual physical application of cosmetics.
The use of digital technology to display products, select products, pay for products and ultimately
deliver products to the customer will increase in the future and retailers should offer this as an option
to customers. The integration information provision to the customer and e-commerce is attractive to
many customers.
For the future there is the suggestion of the availability of ad hoc product designs, indeed in one
London shopping centre a company offers 3D printing which manufactures products to order. 3D
printing for general use may be some way away, but it is coming.
Similarly the use of new materials is also coming. Imagine the use of Graphene and other advanced
materials in a consumer context.
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Visual Trademarks
The retailers identifiable trademark and logo provides a visual image to trigger the consumers
memory recall of the store name. This is done with a combination of words, pictures, colour, shape,
typeface, texture and/or style to make the image prominent. The overall image of the store must be
Identifiable even in the absence of the store name (which might be obscured because of the viewing
angle or some obstruction. The successful trademark image should be unique, indicative of the
retailers products and services, and be consistent with the overall impression the retailer wishes to
imprint on the consumer.
Unmistakable Storefronts
Storefronts must provide instant recognition and memory recall, both at a distance and up close. The
use of a well-designed combination of exterior architecture, signing and window displays initially
ensures a powerful first impression, and thereafter reinforces that impression each time it is viewed by
the consumer.
Exterior Architecture
The store exterior look is often referred to as the architecture, and comprises of various
aspects such as building materials, architectural style and details, colours and textures.
The stores architecture must accord with and reinforce the consumers expectation of the
retailer and the brand.
Store Signage
Store signage is the essential element of the storefront, identifying the retail brand and
encouraging consumers to patronise the store. The value of strong storefront signage cannot
be underestimated, both in terms of brand recognition and competitive advantage in a
crowded retail landscape.
Store Faade
The store frontage should entice and inform passing potential consumers. Consumers should
consult a stores windows as they might look at the stores catalogue or web site. The more
interest, movement and animation found in the store window the greater the effect on
potential consumers.
Vantage Point
The design of the storefront must consider the customer's vantage point, the speed of
passing foot and motorised traffic, and the opportunities available to attract the attention of
potential customers.
A storefront with a 90 angle of approach will very rarely be adequate, either in a street
location or a shopping mall. The direction of customer traffic flow is influenced by various
factors, site access points, the location of nearby parking or public transport, the nearby high
traffic volume venues, and the width of streets or shopping mall corridors, et cetera. All these
factors will influence how and from where consumers view the storefront. A good retail
storefront design will include modular elements which will allow individual storefronts to be
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customised for the particular location. Thus the design elements can be positioned to face left
right or head-on.
Store Entrance
The store entrance can be a barrier to entry or an invitation. The flow from the outside to the inside
should be effortless. Whereas street locations do pose questions of security, energy conservation and
the reduction of exterior nuisance; in shopping malls retailers can use wide and open entrances which
allow seamless entry from the mall to the store. Many retailers rely on impulse purchases and
therefore it is important to create an open storefront by removing physical barriers and providing an
unobstructed view into the store interior with a glass frontage. Removing barriers also includes
removing the clutter of notices, credit card signs, unrelated logos, and other muddle which tends to
build up in retail locations.
Those stores which require doors for climate control, security or because the store offering suggests a
need for intimacy, have less opportunity to attract impulse buyers; and therefore the task of a
welcoming store entrance is even greater. For such retailers, an unobstructed and welcoming
entrance accompanied with a well-designed window display is essential.
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Visual Look
The store front, and an interesting entrance way, helps in delaying the passing of customers; and
establishes a positive first impression which might lead to that customer entering the store. Once
inside, the stores visual messages should create feelings of consistency or clarity. Consistent aisle
patterns, efficient merchandising and unambiguous signs support the overall brand image of the
store.
Visual Hook
A visual hook is analogous to the hook in music that produces a hit tune. It is a refrain, often
repetitive, which calls attention to the store and re-enforces both the store brand and consumers
sentiments towards the brand. Powerful visual hooks are created integrating visual merchandising
components to give a more memorable impression. An exciting store presentation, effectively signed
product offerings, powerful interior displays, in-store animation or events, all help attract customers to
the store.
Effective visual hooks provide an impetus to consumers, especially the impulse buyers. By creating a
compelling hook for product offerings using the appropriate techniques a retailer can greatly increase
impulse buys and encourage passing trade. Increasingly brand hooks use sensory mechanisms for a
total image package.
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212. What did you think about the Store Lighting in general?
213. Was the lighting level sufficient?
214. Did you see any faulty light fixtures with lamps burned out?
215. Was the lights properly aimed or directed?
216. Did the store have old-style or modern lighting?
217. Did the store have accent lighting to highlight particular products?
218. Should the store upgrade or modernise the lighting?
224. What did you think about the Store Floor Plan?
225. Could you easily move though the floor pattern?
226. Should the store change the floor plan?
227. What did you think about the Store Floor Colour Scheme?
228. How would you describe the Store Colour Scheme?
229. Should the store change or modernise the colour scheme?
230. What did you think about the Changing Rooms, Rest Rooms and other facilities?
231. Were the stores facilities clean?
232. Were the stores facilities decorated appropriately?
233. Should the store change or modernise their facilities?
234. What did you think about the Store Product Pricing system?
235. Are all products priced using a pricing system for a uniform appearance?
236. Are the prices attached in a consistent pricing channel?
237. Should the store change or modernise the Product Pricing system?
238. What did you think about the Store Interior Signing?
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239. Did the Store Interior Signing reinforce the Store Brand?
240. Did the store have old or obsolete signs displayed?
241. Did the store have inconsistent or confusing signs displayed?
242. Should the store change or modernise the Store Interior Signing system?
243. What did you think about the Store Maintenance and General Appearance?
244. Did you notice any badly maintained areas?
245. Was the sales area clear of miscellaneous paraphernalia?
246. Were the staff untidy?
247. Were the product displays badly maintained?
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Display Type:
294. Floorstands
295. Endcaps
296. Powerwings / sidekicks
297. In-line / gondola / full-line merchandisers (specialty)
298. In-store media
299. Digital signage
Location of each display:
300. End of aisle (front or back)
301. Perimeter / racetrack
302. In-aisle
303. Front end
Placement of display:
304. Primary
305. Secondary
Variables:
306. Category and brand the display is advertising
307. Static vs. Motion
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Lighting
Customer Surveys of 7-Eleven: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
311. What did you think about the Store Lighting?
312. Was the Store Lighting too little?
313. Was the Store Lighting too much?
314. Was the Store Lighting too intrusive?
315. Was the Store Lighting too hot?
316. Was the Store Lighting warm?
317. Was the Store Lighting cold?
318. Was the Store Lighting too coloured?
319. Did the Store Lighting display the products well?
320. Was the Store Lighting designed to hide the products?
321. Did the Store Lighting allow you to see the product colours or textures or details well
enough?
322. Could the Store Lighting be improved?
323. How could the Store Lighting be improved?
Store Facilities
Customer Surveys of 7-Eleven: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
324. Did the store have any additional Facilities?
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s. Rest rooms
t. Restaurant or cafeteria
u. Samples
v. Shopping bags
w. Specialist advisers
x. Storage
y. Telephones
z. Ticket outlets
aa. Valuation services
bb. Water fountains
Store Image
Customer Surveys of 7-Eleven: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
329. Do you think that the store has a particular Image?
330. How would you characterise the Image?
331. Did the store Image meet your expectation of the Store Brand?
332. Were you happy with the store Image?
333. Did the store Image confirm the Retailers Product Quality?
334. Did the store Image confirm the Retailers Product Value?
335. Did the store Image confirm the Retailers Product Brand/s?
Conversion Rates
Customer Surveys of 7-Eleven: as an Excel file: Part_F
Derived from the Customer Surveys:
348. Did the Exterior of the store influence your decision to enter the store?
349. Did the Interior of the store influence your decision to look at the products?
350. Did your experience of the store influence your decision to purchase?
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Derived from the Customer Surveys. Customer Ranking of the Retail Site (1 to 10):
354. The store's location in your community
355. The store's physical location in the neighbourhood and street
356. The location and amount of parking available to customers
357. The physical appearance of the store's parking lot
358. The store's architectural design
359. The exterior colour of the store
360. The location and size of store windows
361. The location and size of store doors
362. The accessibility of the store for the physically handicapped
363. The size and location of the outside store identification signs
364. The graphic design of the outside store identification signs
365. Lighting of the outside store identification signs
366. Outside lighting around the store and parking areas
367. Outside store security
368. Landscaping around store and parking areas
369. Overall outside appearance
370. Window treatments
371. Types of window displays
372. The overall store layout
373. Aisle spacing for handicap access
374. The interior design of the building
375. The interior wall, floor and ceiling colours
376. The floor covering
377. The interior fixtures and display areas
378. The interior lighting
379. Adequate heating and air conditioning
380. Rest room facilities
381. Location of a customer service area
382. Availability of a customer courtesy telephone
383. Availability of water, coffee, beverages and snacks for customers
384. Play area, toys and activities for children
385. The organisation of the product displays
386. Demonstration area for products
387. Product information displays and counters
388. Display of specific products
389. Service department layout and access
390. Integration of technology with product displays
391. Use of product packaging in display areas
392. Storage of inventory
393. Overall housekeeping and visual appeal
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403. Select the scale that best indicates the way you would describe the store.
a. Good selection
b. High prices
c. High quality
d. High fashion
e. Good service
f. Easy to shop in
g. Friendly
h. Good sales and promotions
i. Sophisticated
j. Traditional
k. Different
l. Take chances
m. Confident
n. Creative
o. Sociable
p. Stands out in the crowd
q. Simplified lifestyle
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
Purchasing Behaviours
Customer Surveys of 7-Eleven: as an Excel file: Part_G
1. Goal orientated behaviours
a. Like to get exactly what they set out for
b. Aim is to complete shopping trip as rapidly as possible
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8. Necessity consumer
a. Shopping trip is always organised
b. Purchasing goals
c. Time goals
d. Shopping trips executed according to plan
e. Male 55+ demographic group
f. Low circular use
g. Tends to use few retailers
h. Seeks familiarity with store layout
i. Planned navigation of store
j. Most retailer loyal
k. Most consistent use of written list
l. Not interested in bargain hunting
m. Describes self as controlled and restrained
n. Most accurate in predicting total spend
o. Lowest purchases on impulse
p. Least number of trips per week
q. Shortest time in store
11. Generally planned: Purchases that were referred to generically, before entering the store, but
not bought by particular brand.
12. Unplanned: Purchases that were not mentioned, before entering the store, and were bought
on impulse.
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13. Substitutes: Purchases that were specifically identified by name or brand, before entering the
store, but the actual purchase reflected a substitute of brand or product.
The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally
Planned, Unplanned, and Substitutes categories. The average in-store decision rate, across all retail
sectors, in developed countries, is about 40%.
The suggestion that shoppers are planning their purchases less, and deciding more at the shelf, is not
strictly accurate as more shoppers are stating that they did not find what they were looking for when
they entered the store. This means that the product, brand or size of the article they were seeking
was not available and thus they had to purchase something else, or go to another store.
When shoppers do make an impulse purchase this is usually not because of impulsiveness but
because it was a purchase of something that they had forgotten and they remembering that they
needed or wanted an item once in the store. The second reason for impulse buys was because
shoppers say that the item was on sale or at a lower price than at a competitive store.
Consumer Surveys
15. Thinking about the last several years, how often do you buy premium products?
a. Always
b. Frequently
c. Sometimes
d. Seldom
e. Never
16. Think about the stores you go to most often. Is they closer to:
a. Your home
b. Your place of work
c. Your favourite shopping area
17. About how many minutes does it take to get to the store you go to most often?
d. Under 5 minutes
e. 5-10 minutes
f. 10-15 minutes
g. 15-20 minutes
h. More than 20 minutes
18. Think about the store you go to most often. What are some reasons this store is your
favourite?
a. Convenient location
b. Convenient hours of operation
c. Close to work
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d. Close to home
e. Close to favourite shopping area
f. Lowest prices
g. Fast payment
h. Fast in and out
i. Happy with brands
j. Never had trouble with their products
k. Have a credit card for that brand of store
l. Like the products
m. Friendly service
n. Force of habit
o. Other
19. In an average month, about how much does your total household spend on the product?
21. What are the three best features you would expect to get with a store card?
a. Generous grace period
b. Bonus rewards for frequent purchases
c. Low interest rate
d. Use for several different companies
e. Easy to get one
f. End of year rebate
g. Free gifts
h. Promotions
22. At the time of the purchase decision, I had little time to search for information.
23. There was a wide difference in performance between the available choices.
24. Because the product was being offered on sale for a limited time period, I felt I needed to
purchase the item quickly.
25. If this product broke down I would feel that replacement or repair was a high priority.
26. My (our) budget was very tight at the time of the purchase.
27. I felt obligated to make a careful analysis of the alternatives before making a selection.
28. I have one or two favourite stores I shop in for this type of purchase.
29. I felt it was necessary to talk to a number of friends or family because of my lack of
knowledge and expertise about this product category.
30. I felt I would obtain a better deal on this item by shopping around and comparing prices.
31. I like to devote considerable time and energy when making a product choice such as this one.
32. Selecting an appropriately styled product was very important to me.
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33. I can make many connections or associations between the use of this product and
experiences in my life.
34. I was very concerned about possible product problems when searching for the item I
purchased.
35. Using the product I purchased is one of the most enjoyable things I do.
36. I did not have any favourite brands in this search category before beginning my search.
37. I felt quite knowledgeable about this product category before I began shopping for it.
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Survey research methods measure contemplative opinions of the respondents and rely on techniques
such as surveys or facilitated focus groups. For accuracy one need a valid sample size which is
usually in the range 500-1500 valid responses.
Store Audit
In preparation for the customer surveys the store layout was surveyed and each day an audit of
specific display types throughout the store was conducted prior to the start of interviewing. The
purpose of the store audit is to record and identify the display materials which produce a measureable
impact on customer decision-making and emotional response.
The store audit includes, a traffic flow pattern, an aisle schematic, photographs and spatial position of
each display present as well as coding of the following information:
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Supplementary research
Researchers and mystery shoppers equipped with smartphone and mobile applications which could
register reactions are able to analyse the impact of displays:-
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
Queue performance is a very important issue for retailers and those who get sales desk staffing
wrong, or have lengthy queues risk creating a poor store image which can harm sales. Customers
hate and avoid queuing and will typically avoid retailers where queues are common.
If shoppers are in a store where they see long queues at the checkout they can be deter from making
full use of their shopping time or budget; indeed they may abandon their planned purchases
altogether and go to another store. Retailer should have empirical evidence of average wait times and
overall transaction times at each location.
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17. Observations reveal that the retailer is probably aware of the optimum ratio of till staff to
customers at which marginal sales exceed the incremental staffing costs.
18. Observations reveal that the retailer is using traffic detectors at store entrances and till points
to monitor shopper numbers and queuing behaviour.
19. Observations reveal that the retailer is able to calculate average queue lengths, wait times
and transaction times.
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Proficiency
Customer Surveys of 7-Eleven: as an Excel file: Part_H
Derived from the Customer Surveys:
101. Credibility: Store/Outlet Level
102. Credibility: Branded Specialities
103. Credibility: Company Advertising
104. Credibility: Company Level
105. Credibility: Company Offers & Promotions
106. Credibility: Counter Staff
107. Credibility: Dedicated Specialities Staff
108. Branded Product Information: Store/Outlet Level
109. Branded Product Information: Company Level
110. Branded Product Information: Counter Staff
111. Branded Product Information: Dedicated Specialities Staff
112. Staff Awareness of Product: Branded Specialities
113. Staff Awareness of Product: Counter Staff
114. Staff Awareness of Product: Dedicated Specialities Staff
115. Staff Comprehension of Product: Branded Specialities
116. Staff Comprehension of Product: Counter Staff
117. Staff Comprehension of Product: Dedicated Specialities Staff
118. Staff Confidence in Product: Branded Specialities
119. Staff Confidence in Product: Counter Staff
120. Staff Confidence in Product: Dedicated Specialities Staff
121. Staff Efficiency: Store/Outlet Level
122. Staff Efficiency: Branded Specialities
123. Staff Efficiency: Company Level
124. Staff Efficiency: Counter Staff
125. Staff Efficiency: Dedicated Specialities Staff
126. Staff Efficiency: Offers & Promotions
127. Staff Efficiency: Problem Solving
128. Staff Integrity: Advertising & Promotions
129. Staff Integrity: Store/Outlet Level
130. Staff Integrity: Branded Specialities
131. Staff Integrity: Company Level
132. Staff Integrity: Counter Staff
133. Staff Integrity: Dedicated Specialities Staff
134. Staff Integrity: Offers & Promotions
135. Staff Performance: Store/Outlet Level
136. Staff Performance: Branded Specialities
137. Staff Performance: Company Level
138. Staff Performance: Counter Staff
139. Staff Performance: Dedicated Specialities Staff
140. Staff Performance: Offers & Promotions
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Stores
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_I
The following parameters are examined by Expert Appraisal:
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Retail Developments
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
Online Selling
Globalisation and technology is at the heart of future growth. Retail is increasingly a global business,
bringing about changes in consumer wealth distribution and the manner in which their demands are
met. A middle class with disposable incomes is now to be found in many developing countries and
this has altered the landscape of retail distribution, with the need to service both domestic as well as
overseas consumers.
As input materials prices, wages and transportation costs fluctuate, and as currency rates shift around
the world, there is a dynamic within the retail supply chain in relation to where goods are
manufactured, how they are distributed, and how they are shipped to their final consumers. Retailers
increasingly have to turn their focus away from domestic consumption, and to the complexity of cross-
border sales, made even more complex due to different platforms of selling internationally to more
sophisticated global consumers.
Over 25% of online shoppers around the world (mainly the younger demographics in the developing
countries) made their first online purchase within the two years. Furthermore consumers in the rapidly
developing economies are shopping online nearly four times as often as those in the post-industrial
developed countries. Social media also allows people to research or follow specific retailers or brands
without limits on borders. Each of these trends, as they continue to evolve globally, creates both direct
and indirect impacts on how bricks-and-mortar stores are perceived in different countries.
Each year some 50 million consumers in the Asia-Pacific region will join the ranks of online
consumers. By 2020 these new consumers will be spending an amount equivalent to that spent by
consumers in developed countries now. E-commerce sales growth in the Asia-Pacific countries is
increasing at greater annual rates than those in developed countries. The reason for this is not only
the nature of the consumer demographics in these countries, but also the deficiencies in the nature
and distribution of traditional retailers.
As e-commerce and mobile commerce and supporting infrastructure accelerates around the world, it
is encouraging new distribution channels in developing markets. Multinational retailers can test the
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water by opening an online store in untested overseas markets before committing to a physical
presence which involves considerably greater capital investment.
Multi-channel access to existing and potential customers (from bricks-and-mortar to catalogues to
online and mobile) is an important consideration when making a market entry, and establishing a
presence separate from physical outlets is a useful and relatively risk-free strategy given that local
companies are already likely to control the prime retail sites.
The consumers retail store expectations and perception in new markets must be well deliberated and
planned, however new stores in new markets can operate as flagship locations, primarily in high
traffic and high impact destinations, and also take on the role of directly show casing the retailer's
product offerings. Such flagship locations can then act as a template for future expansion and
examples to franchisees and joint-ventures.
It is essential for multinational retailers to fully understand consumers in different markets, and their
different expectations, preferences and needs. Then use this knowledge to produce market plans for
multi-channel sales execution. Consumers in all locations want the same thing, a simple, seamless,
trouble-free purchasing experience. This might lead to increasing levels of complexity for retailers;
however such complexities are easily solved by technological solutions.
Whilst technology may expand commerce in developing markets, logistics infrastructure may not
adequately enable retailers to keep the pace with demands and this might result in a reduction in the
consumer purchasing experience. The inability of domestic logistics service providers to fulfil high
volumes of customer parcel shipping at low costs and within a reasonable delivery timeframe
dramatically impacts the direct-to-customer channel in many areas. Therefore, retailers have to
establish their own distribution networks or rely on outsourced express shippers in order to achieve
fulfilment efficiencies.
Various impacting factors in transnational retailing include rising transportation and energy costs,
fluctuations in currency values, the shipment modes, pricing and timing, and so forth. These factors
require retailers to adapt the way their goods are transported from source supplier to final sales
destinations.
Retail trade buyers who are unable to use sea transport due to lengthy shipping times are turning to
supply sources geographically closer. In addition as transport costs rise in addition to labour rates in
Asia there is ever more need to find alternatives to supply sources. Reasonable priced and more
quickly delivered domestic supply sources are increasingly more important for many retailers. Indeed,
with production closer to demand, retailers can more easily interact with product designers and
suppliers and thereby respond immediately to trends and changes in buying patterns.
As consumers around the world increase their reach and capacity to spend, fulfilling their demand for
retail products and brands is becoming very complex. As information technology and communications
becomes widespread around the world, from developed economies to emerging and developing
markets, retailers encounter new challenges as well as the ability to profit from new opportunities.
Finding and using the right channels, methodologies and business models will be essential in tapping
this potential.
Multi-channel retailing has opened up new markets; both in developed and developing countries, and
online sales are growing strong both in developed and developing countries. However, supply chain
disruptions will undoubtedly occur and therefore retailers must pre-plan and add diversification to their
business model to mitigate these risks as much as possible.
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Web Presence
Retail website, product and satisfaction survey:
33. How often do you use the web to find product information?
o. Everyday
p. Several times a week
q. About once a week
r. Several times a month
34. Did you find what you were looking for on the companys site?
s. Yes, I found exactly what I was looking for
t. Yes, but not the brand/size/colour/ etc.
u. I found a related product but not what I wanted
v. No, I didn't find what I was looking for
35. If you did not find exactly what you wanted, explain where you found it.
36. Do you have one or two specific suggestions about how we should add to or improve the
site?
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Website Design
Customer Surveys of 7-Eleven: as an Excel file: Part_I
General Website Evaluation of the retailer:
37. Did the menu of items on the home page make sense to you?
38. If no, what would you like to see changed?
39. Did you experience any problems downloading files?
40. Approximately how many pages did you browse during this visit?
41. How satisfied are you with your experience with the web site?
42. If you are not totally satisfied, describe the reasons for your dissatisfaction below?
43. What additional information or features would you like included on the web site?
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49. Based on your experience, how would you rate the quality of the companys website?
f. Very high quality
g. High quality
h. Average
i. Below average
j. Unacceptable
50. Tell us what can be done to improve the quality of the information on the companys website?
Company Website visit history, success in finding products searching for, and satisfaction.
53. How often do you use the web to find product information?
a. Everyday
b. Several Times a Week
c. About Once a Week
d. Several Times a Month
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54. Did you find what you were looking for on the companys site?
a. Yes, I found exactly what I was looking for
b. Yes, but not the Brand / Size / Colour / Etc.
c. I found a related product, but not what I wanted
d. No, I didn't find what I was looking for
e. Other
55. If you did not find exactly what you wanted, explain what you were looking for.
56. How likely are you to recommend and revisit the companys site?
a. Very Likely
b. Likely
c. Unsure
d. Unlikely
e. Extremely Unlikely
f. Other
58. How likely are you to return to the companys Web site?
59. How likely are you to recommend the companys Web site?
60. What features had influenced your decision to continue using the website?
61. What is it about the site that you would most like to see improved?
62. What changes or additional features would you suggest for the website?
63. In a typical week, how many hours do you spend visiting this website?
a. 0 to 1
b. 1 to 2
c. 2 to 4
d. 4 to 10
e. More than 10
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l. Other
71. If you have, or plan to purchase goods on the Internet, what kinds of goods would you be
most interested in?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
l. Books or magazines
m. Services
n. Financial & Insurance product
Website Feedback
Website feedback and respondent Internet usage:
73. What were your reasons for your last visit to the companys site?
a. Product information
b. Customer Support information
c. Competitive information
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78. When browsing the companys site, how long do you typically spend here?
82. How often have you used the web to gather product information?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. This is my first time
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Web Demographics
86. How long have you been using the Internet (including using e-mail, gopher, ftp, etc.)?
a. Less than 6 months
b. 6 to 12 months
c. 1 to 3 years
d. 4 to 6 years
e. 7 years or more
87. What is your primary language (i.e., the one you speak most of the time)?
88. This is a sensitive question that can help Internet developers to understand the needs of
current web users - it is not intended to offend.
a. Are you disabled or impaired?
b. Rather not say
c. Vision impaired
d. Hearing impaired
e. Motor impaired
f. Cognitively impaired
g. Not impaired
89. How frequently do you access the internet from the following places?
a. Home
b. Work
c. School
d. Leisure location
e. Other
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Internet Shopper
Study benchmarking internet use and shopper profiles and behaviour:
95. About how much did you & all other people in your household spend for gift-giving during this
past 3 months?
96. Overall gift purchases, in total:
97. About how much of that was spent on:
a. Purchases at local retail stores:
b. Purchases through mail-order catalogues:
c. Purchases on the Internet:
98. About how many hours per week is a computer in your home usually used on-line for e-mail
or the Internet?
99. How many hours per week is spent on your home computer:
a. personally on-line for e-mail or Internet access
b. personally for purposes other than on-line access
c. by someone else on-line for e-mail or Internet access
d. by someone else for purposes other than on-line access
100. Think about your own personal use of a computer in your home just during the last 3
months. About how often did you use it for each of the following activities?
i. Daily
ii. 2-3 times a week
iii. Once a week
iv. 2-3 times a month
v. Once a month
vi. Under once a month
vii. Not at all
a. Check or send e-mail messages
b. Look at financial information (stocks, trends)
c. Read on-line news or magazines
d. Conduct business-related work
e. Visit Internet sites related to my hobbies
f. Visit auction sites
g. Visit other retail sites looking for merchandise
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151. For some people the following things are hard; but not for others. Tell us which are hard for
you:
a. Sending or reading email messages
b. Using word-processing programs
c. Installing computer software
d. Configuring computer drivers
e. Fixing a system (e.g., Windows) problem
f. Installing an operating system (e.g., Windows)
g. Browsing the Internet
h. Using an Internet search engine
i. Making a purchase on the Internet
j. Finding the best price on the Internet
k. Using an Internet shopping App
l. Finding Internet-retailer ratings
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Online Purchases
Customer Surveys of 7-Eleven: as an Excel file: Part_I
172. How many online purchases have you made in the last month?
a. None
b. 1-4
c. 5-10
d. 11-15
e. 16+
176. What are the top two Product or Special Interest Group sites you visit?
177. Before starting this survey, how familiar were you with the companys website?
a. Not familiar
b. Heard of website
c. Visited website
d. Made purchases
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179. How many times did you visit the companys website over the last month?
a. Never
b. 1-3
c. 4-6
d. 7-10
e. 11+
f. Don't remember
181. Which item would you be interested in purchasing from the companys website?
182. Given the item you have specified, now how beneficial might the website be to you?
a. Not beneficial
b. Somewhat beneficial
c. Beneficial
d. Very beneficial
183. If you were buying a GIFT, which items on the companys website would you consider?
184. How many purchases have you made at the companys website over the last year?
a. None
b. 1-3
c. 4-6
d. 7-10
e. Don't remember
185. How would you describe your experience visiting the companys website?
a. Never visited site
b. Poor
c. Mediocre
d. Neutral
e. Good
f. Excellent
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191. Compared to other product(s) in this category that are available, would you say that
the product(s) is:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
f. Don't know or never used
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194. Based on your experience with the product(s), how likely are you to again buy a
Company Product?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely
195. If you have contacted customer service, were all problems resolved to your complete
satisfaction?
a. Yes, by the company or its representatives
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
d. No problems / No contact with customer service
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The retail environment has gone from single channel (retail sites or online) to multi-channel or omni-
channel. All retailers now have to consider a multi-channel approach to the market.
Consumers perceive few boundaries in their shopping behaviours and retailers need to find efficient
and effective ways to manage the intricate logistics involved in serving consumers.
Whether retailers fully appreciate these changes in the retail distribution world is debatable and one
must analyse the technological developments and the implications for order fulfilment.
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Loyalty Schemes
Customer loyalty schemes are an effective way to improve your customer-retention levels. The high
cost of bringing in new business compared to retaining existing clients is undisputed, thus increasing
customer retention can significantly boost bottom-line profits. Notwithstanding, many companies are
missing a trick when it comes to building customer loyalty.
In a competitive marketplace where customers find it easy to switch supplier, loyalty schemes are an
effective way to increase customer retention and improve profitability. To build a loyal clientele,
keeping the customer satisfied with ones day-to-day operations is not always enough. The fact that
customers are satisfied does not stop them from taking their business to a competitor who offers them
something extra.
To increase loyalty, one needs to recognise and reward the best customers. A loyalty scheme can be
used to incentivise and delight the most valued customers. That in turn can increase profitability.
Loyalty initiatives allow one to focus on the best customers and improve customer satisfaction levels.
Loyal customers buy more and are often willing to pay more, which boosts cashflow. By increasing
loyalty, one can increase profitability and extend the time they place their business with the company.
Loyal customers are also good for business because the customer become the best advocates of the
company. They recommend the company to others, saving marketing costs. A loyal customer's
endorsement is more powerful to their friends and family than any advertising campaign.
Customers like loyalty schemes because they feel they are getting rewarded for giving the company
their business. Thus the scheme needs to offer customers something they will appreciate. However, it
should also be devised with profit in mind.
The company is trying to reward customers for behaving in the way that it wants.
The rewards offered to regular customers can vary from fixed discounts to extra goods or prizes.
Foremost, the scheme should be simple to use and the rewards should be attractive and attainable. If
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customers have to spend a lot to get a small gift, they will be insulted. At the same time, the company
must make sure it can recover the cost reasonably quickly.
The data generated by a loyalty scheme can also be used to improve business. Loyalty programmes
put the spotlight on customer behaviour. They can show the best clients - and highlight the worst.
It can be more profitable to lose bad customers than to gain new ones. While the best customers may
be bringing in the lion's share of profit, the worst customers, the bargain-hunters that spend little and
only buy discounted goods, can actually cost money. The loyalty scheme can significantly improve
this scenario by rewarding customers and actively dissuading the worst.
Loyalty schemes can also be used to win back lapsed customers. These customers are much easier
to win over than cold prospects. They know the company and the company knows them, their buying
history and where and how to reach them.
The data generated by a loyalty scheme can offer other valuable insights. It can highlight defection
patterns and can also help the company improve your product range and stock selection. Knowing
what the best customers frequently buy helps one choose which lines to stock - and which lines to
expand.
Social Media
Social media in a retail context is the action of Peer pressure to create sales.
As social media had evolved, so has how consumers make purchase decisions, particularly the
younger and more suggestible demographics.
The constant interconnectedness of social media sites, coupled on mobile devices have snowballed
the effects of peer opinion on purchases. Crowd Sourcing, meaning the tapping of the collective
awareness of ones peer group, or a section of the audience, is a growing trend.
Over 50% of this younger demographic is likely to explore brands via a social network, versus less
that 27% of older demographics.
Over 50% of this younger demographic versus less that 20% of older demographics use mobile
devices to access user opinion before buying a product.
The growth of photo-sharing and similar websites that allows users to create and share products and
ideas go viral faster than before. Over 30% of online shoppers have made a purchase based on what
they saw on such sites. Retailers are increasingly using these sites for marketing promotions.
Caution should however be exercised before large marketing investments are made in this area. As
with all trendy and fashion driven activities, especially those concerning the younger demographics,
the shelf life of these market efforts are limited and unpredictable. There are already signs of user
fatigue with social media sites and user growth in these activities will become unsustainable in the
future. When that happens, the use of these promotional venues by retailers will become counter-
productive.
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
Pricing Study
This survey is about the Companys brand(s) / product(s) / service(s) as described to respondents
individually and as a basket of products.
The baseline for this survey is the 15 major Product Lines of the Company. A more comprehensive,
with individual products and more product groups is available on request.
2. About how many units of these products would you buy over the next year at each price point
listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what price would you expect to pay for these products / services?
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7. At what price would these products begin to look so expensive that you would never consider
buying them?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
8. If you knew that the average price of similar brand / product / service was [Price], would you
expect to pay more or less to buy the described brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less
9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use
10. How often could you find a use for the described brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use
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11. Based on the description, how interested would you be in buying the described brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested
12. What is it that you like most about the described brand / product / service?
13. What do you like least about the described brand / product / service?
14. Which of the following best describes your need for the described brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.
Pricing Strategies
Price Discounting
Many retailers reacted very quickly to the financial crisis by discounting prices across the
board without fully understanding the impact on demand or profitability. This has had a
dramatic effect in many retail sectors where recession-driven discounting has fundamentally
eroded both the value of the market, and the value proposition of the product sold.
Consumers price expectations are lower and buying behaviour has changed.
Unsustainable Pricing
Whilst retailers know that current price levels are not sustainable, they also recognise that
downturn discounting has re-set the price baseline for consumers, who are now unwilling to
pay more. This problem is compounded by inflation and rising input costs, causing retailers to
be squeezed from both sides.
Customers Segments
Retailers cannot identify their most profitable customers segments, and do not have the
information available to understand the impact of price changes on demand patterns.
Recession-driven discounting has attracted and retained less profitable customers and this
has serious implications for the go-to-market strategy.
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Strategies
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_J
15. Pricing strategy as a Boardroom decision
16. Align pricing to the overall business strategy, and the new market dynamics
17. Obtain accurate customer, competitor and market information
18. Drive consistent execution
19. Prepare for future challenges
Price Discounting
When demand fell in the wake of the financial crisis, retailers were driven by the need to maintain
sales volumes and protect market share, therefore critical pricing decisions were taken in a hurry and
many retailers resorted to price reductions across their product and service portfolios.
55% of companies reduced prices across the board
65% of business leaders fear recession-driven discounting has hit profits
50% conducted price wars with competitors
Retailers were forced to make reactive pricing decisions without adequate information and many
companies felt compelled to competing on price.
50% of retailers entered into price wars with competitors.
55% of retailers reduced prices which resulted in reduced margins.
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Stagnant Prices
65% of retailers state that recession-driven discounting will not be sustainable in the long
term.
52% of retailers state that their companys overall pricing strategy is not sustainable.
Retailers fear that price increases will face stiff market resistance, because customers used to a
decade of low inflation, followed by heavy price-cutting, perceive discounts to be the norm. A majority
of retailers, 56%, state that customers who enjoyed discounts during recession will be unwilling to pay
higher prices in better times.
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Inflation
With consumer product prices stagnant, rising commodity and price inflation compounds the
problems of retailers. 53% of retailers are experiencing cost inflation, and forecasting further
rising costs.
70% of retailers state that they will have problems in passing on rising input costs to their
customers; and 53% state categorically that they will be unable to do so.
Profit Margins
Price erosion coupled with cost inflation may be depressing retailers profits by 3-12%.
Profitability
40. Retailers are unlikely to recover their profit position in the next 12-36 months.
41. The restoration of pricing levels will take longer that the predictions generally make in the
retail trade.
42. Low customer purchasing power is likely to ensure that prices remain depressed for at least
24 months. After this time, retailers will not have the same price / customer / product mix
which they enjoyed before the recession.
Customers Base
Lacking critical business intelligence, companies have been pricing their way through
recession in the dark. 70% of retailers state that determining a coherent pricing strategy is
very difficult, and 60% state that it is extremely difficult to obtain accurate data on the impact
of pricing on profitability. 50% believe that recession discounting policies have attracted less
profitable customers
60% of retailers state that they do not have accurate data on the impact of pricing on sales
performance and profitability.
45% of retailers state that their company lacks the management tools and right information to
support informed and effective pricing decisions.
55% of retailers state that identifying the most profitable customers presents is difficult as
does identifying the most profitable products or services. Over half of retailers state that they
do not understand what customers require and what is the value proposition they seek.
Two thirds of retailers state that they do not have a consistent and coherent pricing strategy.
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51. To understand profitability by customer, retailers need visibility of the true cost to serve, and
how that may change over time.
52. Few retailers have a strong, granular understanding of their costs to serve by customer,
product or channel. This limits their ability to accurately analyse the likely impact on
profitability of pricing and other changes.
53. Retailers have not come to terms with different sales volumes, changing customer behaviours
and the impact of falling prices. These factors do not affect the cost-to-serve equation in a
linear fashion, and for this reason retailers are finding it difficult to understand which product
offerings and which market segments are actually generating a profit.
Differential Value
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_J
54. Retailers know that in striving to maintain sales volumes, they have been operating in markets
they might not have chosen to play in. 50% of retailers state that they believe that discounting
policies have attracted and retained less profitable customers during the recession.
55. Retailers will produce a tiered pricing structure for different customer segments in the future.
56. Retailers will not be able to focus discounts on their most profitable or highest-spending
customers segments in the future.
57. Retailers face risks in shifting customer demographic focus.
58. Business plans, growth projections and investments are all made on the basis of an accepted
customer demographic, and buying habits.
59. Known customers demographic have known spending patterns and spending power.
60. Retailers who offered discount promotions during the recession need to be careful of how this
may have affected the customer base as they have educated their customers to a price point
and a level of value that they might not be able to maintain.
61. Retailers may not have the ability to spot such a shift, as internal reporting systems are often
too slow to recognise this until it is too late.
62. Many retailers do not know which customers and product lines drive profit.
63. Underlying retailer transactional systems fail to provide the information to accurately calculate
costs to serve.
64. It is often impossible to determine profitability by customer, product or channel.
65. Business intelligence is critical to provide the insight to identify where value is really
generated in an organisation.
66. Retailers need to invest in information gathering; however there is often reluctance to
undertake this because heavy investment in ERP (Enterprising Planning) systems has often
failed to realise the anticipated benefits.
67. The omission of a business intelligence input has meant an inability to capitalise on the data
and business insight ERP can provide.
68. More efficient and accurate cost allocation provides an understanding of true profitability by
customer, product and channel. Retailers can then focus on retaining and growing the
accounts of their most profitable customers and shedding unprofitable product lines.
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Future Strategies
Retailers understand the need to re-align pricing and are keen to introduce premium priced products
or variable pricing, however there is not a great deal of confidence in being able to execute such
strategies.
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
1. Confidence that the company will gain additional market share in the industry in the coming 2
years?
a. Very confident
b. Confident
c. Somewhat confident
d. Not sure
e. Somewhat doubtful
f. Doubtful
2. What is the range of your outlets sales volume of company products last year?
i. $250,000 - $499,000
ii. $500,000 - $999,000
iii. $1,000,000 - $2,999,000
iv. $3,000,000 - $4,999,000
v. $5,000,000 - $9,999,000
vi. $10,000,000 - $19,999,000
vii. $20,000,000 or more
4. How much of your business volume is accounted for by this companys own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
5. How much of your profit is derived from this companys own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
6. Which of the following company product lines do you fully support at this time?
7. Compared to the market leader, how do your products offer advantages in selling situations?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
8. Compared to the market leader, how do your products offer advantages in profitability?
a. Strong advantage
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b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
9. Compared to the market leader, how do your products offer advantages in service and
supplies business?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
10. Which product line do you see as offering a stronger competitive position to your company?
11. Overall, have actions taken by company senior sales and marketing management over the
past year had an impact one way or another on your business?
a. Very positive impact
b. Positive impact
c. Somewhat positive impact
d. Not sure
e. Somewhat negative impact
f. Negative impact
g. Very negative impact
12. Describe which actions had the greatest impact on your business, and why:
13. Which of the following best describes the influence you feel you have with company senior
management?
a. A lot of influence
b. Some influence
c. Very little influence
d. No influence
14. On average, which of the following best describes company management's timeliness in
response to your requests and inquiries?
a. Very timely
b. Somewhat timely
c. Mixed
d. Somewhat slow
e. Very slow
16. Which of the following administrative areas would you say presents the greatest opportunity
for improvement?
a. Order processing
b. Shipping
c. Inventory tracking
d. Billing and credits
17. How do you rate your companys marketing and sales programs?
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18. Compared with the investment support level in your company business this year, what are the
investment support plans for next year?
a. Greatly increase support
b. Increase support
c. Maintain same level of support
d. Decrease support
e. Greatly decrease support
19. Why did you answered the way you did about your investment support plans for your
company business for next year?
20. What suggestions do you have for company senior management which would help you
improve the success of your company business next year?
21. Overall, I am very satisfied with the way the retailer performed (is performing):
a. Strongly Disagree
b. Somewhat Disagree
c. Neither Agree nor Disagree
d. Somewhat Agree
e. Strongly Agree
28. The store senior staff are making a positive contribution to customer service.
31. Compared to how you felt about the retailer before this purchase, what is the likelihood of
completing another purchase with the retailer?
a. Better, based on performance
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32. Considering the overall value, you paid for the product, was it
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it
Inventory Control
Product life cycles are shrinking, which adds pressure to get final products into consumers' hands
much faster than before.
With more aggressive competition, keeping inventory lean while still meeting fluctuating demand
patterns becomes critical, and underlines the need for technological solutions to manage inventory
and orders.
Just-in-time inventory
Just-in-time inventory management allows for the reduction of stock and storage costs, but may
increase transportation costs and potentially delivery times. The Speed versus Cost equation is well
known to all retailers and these considerations will particularly impact retailers with seasonal, short
shelf life and trend based products.
Microwave merchandising
The fast-fashion global retailers from Sweden, Spain, the UK and other countries, have dominated the
clothing industry in recent years, by attracting considerable consumer bases, expanding revenues
and expanding aggressively in prime markets in both developed and developing countries. The
success of retailers like Zara, H&M, and others is the quick turnaround times for product ranges and
store displays. This stimulates interest and demand.
These retailers are changing and defining buyer expectations. Consumers are now seeking new
product ranges in 6 to 9 weeks as opposed to 6 to 9 months. Many of these retailers manage the
entire production and distribution process in-house; this reduces risk and ensures an efficient supply
chain.
Those retailers without upstream integration processes must respond with a strategy of smaller orders
distributed amongst a greater pool of suppliers. This however tend to lead to increased unit costs and
therefore the long-term competitiveness of such a strategy is uncertain.
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Issues covered with Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail
Negotiators include:
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Technology Usage
The use of communications technology by consumers, and the evolution of diverse retail channels
require that retailers be able to sell and deliver wherever the customer is located. Consumers expect
a wider variety of products from a single source and better product value without any loss in product
or service quality. To enable retailers to adequately compete they need to capture and utilise the
necessary business data:
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Showrooming
Future retail strategies include the use of retail stores more as showrooms or giant catalogues for
consumers to feel and touch the product.
Traditional retailers were compromised when Amazon released a price-checking app that allowed
users to scan barcodes in rival stores and check for cheaper prices online. What this means is that
any retailer providing a showroom may be doing so for the benefit of a third party online merchant.
Retailers have made enormous long-term capital investments creating distribution centres which
move crates and pallets to stores. Now however they must develop distribution networks capable of
getting single items to the customers door. Amazon is the leader in this field, using site selection,
automation and tax strategy to deliver pricing and delivery service that is challenging the traditional
retail traders. In the futuristic distribution centres of its subsidiary, Zappos, order picking is handled by
robots. The robots enable Amazon to turn off the lights and forget about air conditioning in a large
portion of its enabled distribution centres. It allows them to employ a fraction of workers in what was a
traditionally labour-intensive operation.
Amazon acquired the maker of these robots, Kiva Systems, and will likely automate a great deal more
of its operations in the future. In the meantime, Amazon continues to build distribution centres faster
than anyone else.
While most distribution centres do not have the robotic labour, they are still a blend of high technology
and a lot of manual labour. The 2,000 workers in Amazons 1-million-square-foot Chattanooga,
Tennessee facility are connected by about seven miles of fibre and 700 internet access points.
Amazon invested in a mezzanine level for this facility; and that will nearly double the floor space. With
so much investment and such specific facility requirements it is clear why Amazon has gone the build-
to-suit route. Between its two existing facilities in Tennessee, Amazon has spent over $140 million.
Due to the material handling needs, each centre processes a different type of goods. The
Chattanooga centre is set up to handle mostly smaller items, while the Cleveland, Tennessee site
handles large items like televisions. Amazon is adding two more sites in Tennessee for an additional
investment of $150 million.
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Of course it is not only Amazon investing in advanced automated materials handling and distribution
centres, retailers from all sectors have little alternative but to invest in such facilities in order to
compete in terms of both operating margins and customer service. These distribution centres also
demonstrate the trend towards larger facilities which allow economies of scale and operational time
efficiencies.
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Part L : Strategies
Retailers must fully analyse the strategy of retailing from each perspective of a strategic methodology
which has to plan for and adapt to a complex, changing environment. Both opportunities and threats
must be considered. By engaging in strategic retail management, the retailer is encouraged to study
competitors, suppliers, economic factors, consumer changes, marketplace trends, legal restrictions,
and other elements. A retailer prospers if its competitive strengths match the opportunities in the
environment, weaknesses are eliminated or minimised, and plans look to the future (as well as the
past).
The point of sale is becoming increasingly important for two reasons. Firstly because the consumer
media environment is becoming more fragmented making it more difficult to reach shoppers with
traditional tactics; and secondly, because retailers are getting stronger, smarter and better at
marketing.
The power that used to rest almost entirely with the national brand marketers who used advertising to
direct people to the stores to demand their products is shifting to the retailer. The advertising industry
has taken its eye off the ball by not understanding the importance of distribution-channel management
and thereby the brand owners have suffered.
In turn, there is no doubt that the adage change or die will define the retailing sectors in the
immediate future. Whether individual retailer die will depend on if they change.
The change is often simply the ability to provide a multichannel sales environment to ones
customers.
It is not that physical retail sites are dead, physical locations allow shoppers to touch and feel
products. In certain retail sectors this is essential. Retail outlets have real people who can provide the
kind of personal advice and service thats essential to certain product sales. These attributes can be
harnessed and used to provide consumers with a real shopping experience.
For retailers to address the challenges of the future they need to embrace their customers
preferences and expectations.
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Data Mining
The enormous availability of data allows retailers not only to identifying segments, but also to target
micro-segments based on patterns in individual consumers research and purchase behaviour. This
kind of analysis enables a stronger relationship with customers as the data specificity allows retailers
to cater to specific needs and wants.
This approach can help develop offers tailored to the individual and target underserved consumer
segments, with distinct marketing and product offerings. Some retailers have developed micro-sites
targeted at specific consumer segments.
Bespoke Service
While technology has allowed for more sophisticated targeting, it is important to remember that
consumers shop at stores for the Store Experience and contact with a real person.
Retailers offering personal shoppers across multiple channels can bring a valuable store experience
that is supported by just-in-time data. Some retailers enhance the bespoke service with a phone app
that identifies when customers enter the store and prompts staff to engage with the customer armed
with that customers purchase history and preferences.
An important part of making personal contact with customers is by creating familiar neighbourhood
connections. Various mobile apps offer local businesses innovative ways to use product offers that
encourage shoppers into their stores, and then keep them coming back with further offers, events and
promotions.
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Collaboration
Retailers need to find new partners and collaborators to get the capabilities, expertise, and access to
customer bases that they cannot easily develop on their own. Cross-retailer loyalty schemes help
create the same multi-category loyalty experience that Amazon has created through their Prime
offer. Retailers can look to promote products and services across the on- and offline worlds through
personal one-to-one marketing delivering email and text offers to mobile phones. This can be
triggered when the consumer is in the neighbourhood of one of the retailers stores.
Uniqueness
Brand images are becoming depreciated and consumers perceive even the prime brands as being
commonplace. This has led to a reduction in the price premiums previous expected by brand retailers.
Retailers need to develop unique products, with fresh brands and innovative presentation and
promotion. Exclusive lines of merchandise, private label offerings, and celebrity endorsed collections
help to differentiate one retailer from another.
Market Leadership
Store retailers can move into new, untapped markets where competitors do not have a foothold or do
not have an adequate product offering. Highly fragmented markets attract online suppliers, and here
there are opportunities to bring a lot of buyers and sellers together. The developing Asian and other
markets are extremely attractive in this respect.
Multichannel retailers need to perfect the digital shopping experience; customers increasingly demand
a trouble-free and effortless interaction with retailers. The ability of retailers to turn physical stores into
profit centres will determine if they are able to prosper or become another victim of the irresistible
digital revolution.
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Many retailers that expanded rapidly before the downturn did not have a worst case scenario market
strategy; and they are now suffering in the absence of a cogent business plan to carry them through
the bad times. Difficult trading conditions mean that it is a challenge to make any headway in an
aggressive and uncertain market place.
The challenge is to develop a strategy to fit the changing demands of the market.
Challenging economic conditions are impacting on the retail sector across the world and underlying
problems need to be addressed.
Not only does rising inflation diminish discretionary spend, but spending patterns and product demand
is also evolving and retailers may not have the necessary resources to survive these changing
circumstances.
Retailers need to critically analyse their internal organisation to confirm that they have the basics:
Operating Strategies
Retailers that expanded when easy capital was available and the economy was growing are now
struggling because they neglected to develop a strategic business plan incorporating different
economic scenarios. Even those business managers who did plan for uncertainty may not have
incorporated all the variables and scenarios which have been experienced recently. Few managers
could have foreseen such a dramatic change in consumer purchasing behaviour, economic instability
and challenging market conditions.
Whilst there exists economic uncertain in many markets, and despite the fact that many businesses
have taken steps to ensure their survival, there is still ambiguity in profitability forecasts.
Understanding the underlying operational and market factors allow the development of a competitive
and sustainable strategy. Business plans and projections, investments decisions, and future
strategies are all made on the basis of a known customer demographic and fully understood
customers purchasing behaviours. When customer demographic, spending patterns, spending levels,
and product preferences change, then the consequences always impact on profitability. Knowing
which factors are controllable, and those which are not, is critical to survival.
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Cash management
Optimising cash management is the key to retail management in the present economic conditions.
Maximising cash flow and working capital by strict budgeting and benchmarking should be the focus
for all managers. The maintenance of sufficient cash balances and the identification of unforeseen
calls on cash together with specific and timely plans for corrective actions must be a fundamental
goal.
Retailing Operations
Operational efficiencies, continual systems improvement, better customer service, exceeding
customer expectations, are the focus points for all retailers.
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Financial Planning
Indirect taxation is frequently a retailers third largest burden on cashflow and as such, has a major
influence on the company's operation and financial performance. Retailers are now more able to use
multi-channel selling and distribution, and transfer pricing mechanisms, to optimise both cashflow and
retail prices. The use of distribution from lower cost sales or value added tax jurisdictions may provide
significant opportunities to improve margins and cash management.
Data management
Effective data management and its use as a vital resource can greatly assist retailers. In conjunction
with this is the absolute need for data security. Recent breaches in data security at high profile
retailers have highlighted the importance of adequate protection of customer data. The retail sector is
particularly vulnerable to cyber-attack, considering the huge amount of customer data held from
online shopping, loyalty schemes and other marketing incentives. Adverse publicity about stolen data
will damage reputations and potentially could damage sales revenues.
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Controls
Many recent corporate failures were as a result of ineffective control on stock, cash and management
information. Know what is happening in the business on a day-to-day basis through the right
management information and act on it before its too late.
Stakeholder Management
A companys strategic plans should include mechanisms to support, and in turn retain the support of,
key stakeholders; especially in tough economic times, when support from stakeholders, from
investors to creditors are critical. Ideally one maintains a dialogue with all the stakeholders, and the
more adept one is in this respect the more one is likely to succeed in the long term.
Value Preservation
Retailer financial health will range from intensive care in an effort to turn the business around, to
stable good health, to vigorous and expansive acquisition activity. However, whatever the health of
the company, the key driver will be the preservation of value.
The current economic circumstances have seen some failures and much stagnation which
encourages restructuring to decrease costs or increase margins. Albeit there are also a number of
retailers for whom this period will provide an opportunity to expand their business through M & A.
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For retailers in a precarious financial position one strategy is to consider finding shelter from the storm
through capital restructuring or creditor arrangements; and if that fails then a white knight take-over. In
these circumstances the preservation of any residual values becomes even more critical.
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95. Locations
96. Operations
97. Merchandise
98. Store Management
99. Customer loyalty
100. Five Forces:
101. Bargaining Power of Vendors
102. Barriers to Entry
103. Competitive Rivalry
104. Threat of Substitution
105. Large Customers
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184. When challenged by a competitor with a differential advantage, the established retailer will
adopt strategies and tactics in the direction of that advantage (making the innovator less
attractive)
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Situation Analysis
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
Situation analysis is an honest evaluation of the opportunities and threats facing the retailer:
17. What is the firms current status?
18. In which direction should the retailer be heading?
a. Organisational mission
b. Ownership and financing
c. Management options
d. Goods / Service sold
19. Opportunities and marketplace openings
20. Market gaps retailers have not yet not capitalised on
21. Competitive threats
22. Adverse marketplace factors
23. Trend spotting
24. Customers satisfaction
25. Competitive advantages
26. Merchandising shifts
27. Store locations
28. Price points
29. Promotional strategy
30. Retailer image
Organisational Mission
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
The organisational mission is the retailers commitment to a type of business and to a distinctive role
in the marketplace.
31. Attitude toward consumers
32. Attitude toward employees
33. Attitude toward suppliers
34. Attitude toward competitors
35. Attitude toward regulations
36. Is the business based on the goods and services sold or consumer needs?
37. Is the retailer a market leader or a follower?
38. Does the retailer seek a broad customer or a narrower customer base?
39. Does the retailer change company goals as a reaction to a dynamic retail environment?
40. Does the retailer have good organisational skills?
a. Strong customer service
b. Popular products
c. Community involvement
d. Excellent retail locations
e. Excellent execution in delivering products
f. Consistent delivery of its value proposition
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Goods/Service Categories
The strategic plan is centred on the selection of goods/service categories, the lines of business, in
which the retailer operates.
Management Abilities
Management abilities depend on the aptitudes of the managers:
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Financial Resources
Adequate projection of the financial resources needed is essential to the retailer.
Time Constraints
Time constraints on managers differ significantly by goods or service category:
Objectives
The situation analysis leads to how the retailer sets objectives for the long-term and short-terms
performance targets required.
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Sales
Sales objectives are related to the volume of goods and services a retailer sells and includes:
Profit
With profitability objectives the retailer will seek a minimum profit level during a designated period.
Satisfaction of Stakeholders
Retailers typically strive to satisfy their stakeholders: shareholders, customers, suppliers, employees,
and regulators.
b. Treatment of customers
c. Staffing turnover
Image Positioning
Image positioning is how the retailer wished to, and possibly is, perceived by consumers and others.
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Selection of Objectives
Clearly set goals and a strategy to achieve:
Checklist
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
135. Capital investment
136. Goodwill
137. Sales
138. Inventory levels
139. Profits
140. Customer base
141. Sales seasonality
142. Debts
143. Property
144. Storefronts
145. Store fixtures
146. Merchandise assortment
147. Advertising policy
148. Customer service policy
149. Pricing policy
150. Units & locations
151. Trading area overlaps of stores
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Overall Strategy
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
This involves two components:
169. controllable variables (the aspects of business the retailer can directly affect)
170. uncontrollable variables (those to which the retailer must adapt)
Controllable Variables
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
171. Store location
172. Managing the business
173. Merchandise management
174. Pricing
175. Communicating with the customer
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Store Location
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
176. Store location decisions
177. Store and/or non-store format
178. Competitor locations
179. Transportation access
180. Population density
181. Type of neighbourhood
182. Nearness to suppliers
183. Pedestrian traffic
184. Store composition
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Uncontrollable Variables
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
245. Consumers
246. Competition
247. Technology
248. Economic conditions
249. Seasonality
250. Legal restrictions
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Consumers
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
251. Demographic trends
252. Lifestyle patterns
253. Tastes
254. Consumer trends and desires
255. Price range of customer purchases
Competition
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
256. Entry of competitors
257. New or established competitors
258. Competitors target markets
259. Competitors merchandising focus
260. Competitive edge
Technology
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
261. Computer systems
262. Inventory control
263. Checkout operations.
264. Warehouse
265. Transport of merchandise
266. Consumer ordering
267. Online activities
Economic Conditions
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
268. Unemployment
269. Interest rates
270. Inflation
271. Tax levels
272. Annual gross domestic product (GDP) growth
273. Economic factors
274. International economic factors
275. National economic factors
276. Provincial & local economic factors
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Seasonality
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
277. Seasonality
278. Weather
279. Cycle of demand
Legal Restrictions
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
280. Statutory laws and regulations
281. Competition laws
282. Fair trading practices
283. Zoning laws
284. Blue laws which limit the times during which retailers can conduct business
285. Construction codes
286. Consumer restrictions
287. Licensing
288. City / town jurisdictions
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Tactical Decisions
Tactical or Short-run decisions for each controllable part of the strategy:
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Controls
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
347. Systematic process for analysing the performance of the retailer.
348. Retail audits
349. Strengths and weaknesses revealed as performance is reviewed.
350. Identification of profit drivers.
351. Identification of profit problems.
Feedback
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.3
352. Management receives systematic feedback
353. Positive feedback on sales low employee turnover.
354. Negative on falling sales and high employee turnover.
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Whatever politicians might say about the economic climate, and whatever their prognosis is for the
future, the fact is that economic conditions have radically changed in recent years, and are forecast to
remain difficult for retailers in the immediate future.
Recent retail bankruptcies, store closings, and increasingly vacant retail space is all too evident in
many countries.
The retail is one of the largest commercial sectors in all countries the effects of a retail downturn
ripples throughout the national economies of all countries. Consumer spending also accounts for 50
to 65% of most national economies and this is the key indicator of the state of a national economy.
Economic Conditions
The current economic conditions are not encouraging to retailers. It is normal in bad economic times
that the small retailers suffer, usually disproportionately, however there is also evidence that the
largest of retailer group are also suffering.
The factors which are effecting the economy also include rising commodity prices, rising product
prices, lower disposable incomes, lower savings rates, declining consumer spending, a housing
slowdown, and rising unemployment. All of these indicators guarantee that the period of strong retail
expansion and increasing profit margins and over for the foreseeable future. Retail is of course the
final link in the supply chain and as demand weakens the effects will ripple through the supply chain,
the logistic providers, and the manufacturing base.
The impact on manufacturing, distribution, and employment in other industries may endure for far
longer than the events that actually triggered the economic decline. As economic forces slow or stop
altogether, retail demand further weakens thus exacerbating the decline. In the end, the retail industry
as a whole is severely affected and here the losers will outnumber the winners.
Forecasts for retail are negative and it is probable that the retail sectors will not even meet the
lowered expectations of recent government forecasts.
Retailers will have to change their business planning and business models to survive in the long term.
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Consumers felt wealthier and they spent more, thereby fuelling the expansion of consumption, which
in turn simultaneous stimulated the growth and inflation in the housing market. At the start of the
demand growth stage, consumers paid off credit card debt accumulated in the previous periods by
refinancing their homes. Unfortunately, real incomes did not rising during this period and many
consumers smoothed their new wealthier consumption levels with more credit card debt. Many
households refinanced their homes more than once during this expansion, only to be faced with the
reality of the situation when home prices did cannot continue to increase at the same rate and the
equity in the home did not have the same liquidity as traditional savings.
Consumers are not at a stage where they have liquidated much of their savings, and are unable to
obtain credit, and therefore must sustain a lower level of spending and accept a reduced standard of
living. This response to economic times entrenches the downturn, and increases its duration.
Whereas Consumption Smoothing explains the fundamental choices behind savings and spending for
the consumer, it does not explain their specific spending decisions. During a recession, the typical
consumer is forced to make difficult decisions and economic trade-offs. In terms of consumption these
choices are often manifested as substitution between goods.
When budgets are constrained, the typical consumer will substitute down or choose inferior products.
Consumers will replace an expensive branded food item with a less expensive or own-brand food
item.
This trading down is a type of consumption smoothing allowing the consumer to get the same level of
consumption but at a lesser quality per unit. This theory of product substitution holds when there are
inferior products to trade down to and they are reasonably product substitutes for the more expensive
product. This process is frequently seen is the consumers choice of where to shop. While most
retailers are experiencing sales declines, discount retailers are thriving as people trade down from
expensive specialty and department stores to shop at discount and wholesale stores. These trends
have great impacts on a retailers strategy to survive a recession or downturn.
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the majority of small and independent retailers these deals are not a good investment and can
exacerbate the effects of the downturn. The discounts are intuitively appealing to retailers; however
inventory is only as useful to a retailer as its ability to be converted to cash quickly. Even with a heavy
discount, on infrequently sold items there is little or no profit in the sale.
Retailers, big and small, must put their liquidity ahead of considerations such as profits and mark-ups
per unit. Often retailers are hesitant to liquidate or reduce inventory at a loss per unit in tough times
and therefore feel a cash-flow crunch. With no cash safety net or reserves, any additional shock to
their demand can make fundamental business expense payments difficult to maintain. During a
recession, many retailers are bankrupted for cashflow and liquidity reasons.
Many retailers were unprofessional and did not anticipate the downturn; many then compounded this
by underestimating its severity and duration. This demonstrated inadequate management and bad
business planning. These retailers were not realistic about their sales prospects and did not make the
difficult planning decisions necessary.
Retailers needed to analyze the inventory for the essential items and then actively reduce the stock of
non-essential items. Retailers needed to set limits for ordering new inventory and then produce firm
plans for on-going management, presentation and marketing of the inventory they had. The
successful retailers retained as many months of cash reserves as possible that would be sufficient to
cover basic expenses such as rent, utilities, and wages.
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Staff Costs
Audit of Retailer Economic Strategy by Expert Appraisal:
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Checklist
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.4
29. Excessive inventory financing
30. Profitable inventory
31. Unproductive inventory
32. Supplier Debt levels
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The strategic planning challenge for both medium scale and large retailers is clear and increasingly
global. Global retail strategy must consist of several factors:
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Opportunities
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.5
18. Foreign markets used to supplement domestic sales.
19. Foreign markets represent good growth opportunities when domestic markets are saturated
or stagnant.
20. The retailer is able to offer goods, services, or technology not yet available in foreign
markets.
21. Competition is less in foreign markets.
22. Tax or investment advantages in foreign markets.
23. Government and economic shifts allow entry to foreign firms.
24. Communications is easier. Online activities enable the retailer to reach customers and
suppliers outside the domestic markets.
Threats
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.5
25. Cultural differences between domestic and foreign markets.
26. Management styles not easily adaptable.
27. Foreign governments place restrictions on some operations.
28. Personal income poorly distributed among consumers in foreign markets.
29. Distribution systems and technology inadequate.
30. Institutional formats vary too greatly.
31. Currencies and exchange rate problems.
Standardisation
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.5
32. Application of domestic strategies directly to the foreign markets
33. Standardisation of personnel systems
34. Standardisation of physical facilities
35. Standardisation of operations
36. Standardisation of advertising messages
37. Standardisation of product lines
38. Standardisation of factors to be adapted to local conditions and needs
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Developed Markets
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.5
43. Issues:
a. Increasing competition, deteriorating margins, and saturation
b. Consolidation and rationalisation (cost cutting), forcing poor performers out of the
market
c. New enabling technologies
d. Demanding customers
e. Limited growth
44. Implications:
a. Retailers must focus on maximising operational efficiencies, vendor relationships,
infrastructure, and technology
b. For growth, large retailers are expanding regionally and then globally into developed
or developing markets
Developing Markets
Expert and Industry Appraisal of 7-Eleven: as an Excel file: Part_L.5
45. Issues:
a. Minimal purchasing power per capita, yet strong economic growth, pent-up demand
b. Huge customer base, representing up to 70% of the worlds population
c. Infrastructure issues, transportation, communication, etc., may pose problems
d. Disorganised, fragmented retail structures that are vulnerable to new entrants
e. The number of indigenous large retailers is small to none
f. Strong protectionist measures may exist
46. Implications:
a. Tremendous opportunity for large retailers, limited competition, huge growth potential
b. Initial entry may need to be through intermediary, joint venture, etc.
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Three factors in retailing are of particular relevance to businesses and each factor imposes unique
requirements on retailers.
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28. Multi-format
29. Diversity of the customer base
30. Diversity and range of retail formats
31. Distinctive image
36. Innovation
37. Innovative products and services
38. Controlled labels
39. Speciality products
40. Sub-brands
41. In-store or on-site subsidiary products & services
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Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the basic goods and services it sells. It has a strong impact on the total
retail experience. Among the factors composing a customer service strategy are store hours, parking,
shopper-friendliness of the store layout, credit acceptance, salespeople, such amenities as gift
wrapping, rest rooms, employee politeness, delivery policies, the time shoppers spend in checkout
lines, customer follow-up, and so forth.
Satisfaction with customer service is affected by expectations (based on the type of retailer) and past
experience, and shoppers assessment of customer service depends on their perceptions, not
necessarily reality. Different people may evaluate the same service quite differently.
The same person may even rate a retailers customer service differently at a different time, or in a
different location, because of its intangibility, though the service stays constant. Service varies widely
from one retailer to the next, and from one shopping channel to the next. The challenge for retailers is
to ask shoppers what they expect in the way of service, listen to what they say, and then make every
attempt to satisfy them.
Unfortunately, the customer is not always right. Just as retailers know they can never underestimate
the taste or intelligence of their customers, so too they can never overestimate the propensity of some
of their customers to engage in sharp practice. Of course, just as hotels cost into their pricing the fact
that some of their customers will steal the towels, so too those retailers whom offer a liberal refund
policy cost into their pricing the returns. Whereas in good times retail purchase return may be 4-6%, in
bad times this increases to 5-8%; and this has an even greater impact because retailers are already
suffering from a reduction in sales, margins and profits.
Clearly retailers must think very seriously about the balance of good customer service and excessive
pandering to customers.
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Relationship Retailing
Retailers have the best possible motive to engage in relationship retailing, whereby they seek to
establish and maintain long-term bonds with customers, rather than act as if each sales transaction is
a completely new encounter. The motive for adopting such relationships is of course that it is more
profitable for the retailer.
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98. Department stores will find it difficult to survive the mass retailers and lifestyle specialists
and will need to re-invent themselves.
99. Shopping malls will need to change to maintain their market share.
100. Compressed lifecycles for products, stronger retail concepts, and global brands mean the
days of the large, mass-merchandised specialty chain are over.
101. Experiential retailing concepts will mix context and commerce in the future.
102. E-commerce will act as more of a vehicle for retailing than as the cash register. The
majority of sales will continue to be channel through retail stores.
103. Consumers will embrace new technologies that give them better information and more
control over the shopping process.
104. Stores and sales staff will have greater capabilities as retailers adopt technologies to better
utilise retail space and allow greater employee productivity. Over time, some smart store
solutions will displace human resources with technology.
105. M-commerce remains a mainly a B2B (business to business) than B2C (business to
consumer) sales method. The consumer is still attracted to more tangible methods of
purchasing and the store experience.
106. Globalisation of retailers will accelerate as national borders disappear and trade is de-
regulated and liberalised.
107. As retailers become more globalised they will seek alternative and more secure sources of
supply and this will mean that retailers become more involved in manufacturing.
108. Retailers will become brand managers as the search for competitive differentiation
accelerates. This will include more own branding, higher quality own brands and the
ownership of stand-alone brands.
109. Retailers will Brand-Share by integrating with complimentary retail brands, sharing
customer bases and leverage location strength through innovative store-within-a-store, or
brand-sharing, partnerships.
110. Retailers will attempt greater Brand Extension and seek to extend their brand into other
consumer and business markets thereby transcend competitive boundaries
111. Suppliers will strive to become providers of best-in-class categories as they take on an
increasing number of activities that traditionally have been the responsibility of the retailer.
112. As more suppliers get locked out of traditional retail channels, supplier direct to consumer
will become a more viable scenario for the future.
113. In a buyers market, where technology is changing the dynamics of the buyerseller
interface, the relationship between retailers and consumers will become much more
symmetrical and will favour the consumer.
114. For Retailers and Suppliers alike, survival will mean developing a New Concept of their
business model rather than just trying another redesign.
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Retailer must strictly apply the concepts of Value and Relationship so that customers strongly believe
that the firm offers good value for the money, and that both customers and channel members want to
do business with that retailer.
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7. Consumers believe that the retailers prices have moved close to competitors. Comparison
shopping for prices is very easily done online and thus prices have moved closer together
for different types of retailers.
8. Consumer believe that the Retailer is differentiation and the retailer is not perceived as a
me too retailer.
9. Consumers believe that there is a specific value/price level for each product offering.
10. Consumers believe that the Retailer can command a higher price for the same article by
adding better customer service.
The retail Value Chain represents the total bundle of benefits offered to consumers through a channel
of distribution. Consumers are only concerned with the results of a value chain, not the process.
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35. Augmented retail strategy (extra Value Chain elements that differentiate the retailer from
others and are the key to continued customer patronage):
h. Exclusive brands
i. Superior salespeople
j. Loyalty programs
k. Delivery
l. Personal shoppers
m. Special services
n. Valet parking
36. Potential retail strategy (Value Chain elements not yet perfected by the retailers competitors
in the same category were the retailer to capitalise on potential features gain a head start
over their adversaries):
o. 24/7 store hours
p. Unlimited customer return privileges
q. Full-scale product customisation
r. Instant fulfilment through in-store orders accompanied by free delivery
s. In-mall facilities
t. Transportation
38. Providing value-enhancing services that customers do not want and therefore will not pay
extra.
39. Competing in the wrong value / price segment. Retailers must ensure that their pricing points
are commensurate with the value offered, and that the value / price position reflect consumer
perceptions of the retail segment.
40. The belief that augmented elements alone create value. Retailers may offer a high-end
benefit not available from competitors, however this will not compensate for the unavailability
of more basic like adequate parking.
41. Paying lip service to customer service. Retailers may believe that the customer is always
right; however they sometimes act contrary to this philosophy. This may include having a high
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turnover of sales staff, charging for returned goods that have been opened, and not offer
ordering of out of stock items.
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Relationship Retailing is the process whereby retailers seek to form and maintain long-term bonds
with customers, rather than act as if each sales transaction is a new encounter with them. For
relationship retailing to work, enduring value-driven relationships are needed with other channel
members, as well as with customers; developing these is a challenge.
Customer Relationships
Loyal customers are the backbone of a business and in retailing this can have profound effects on
profitability as 30% of a retailers customers will represented over 70% of a retailers profits.
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Core Customers
It is worth nurturing relationships with some customers rather than with others; these are the retailers
core customers, being their most regular customers. This group of customers need to be identified,
tagged and retained.
33. Customers that place the greatest value on what the retailer has to offer
a. Customers that prefer the retailers products
b. Customers that prefer the retailers customer services
c. Customers that prefer the retailers special strengths or uniqueness
34. Customers that are worth more to you than the retailers competitors
a. Customers that warrant extra effort and investment
b. Customers who are worth more to a competitor will eventually defect
The retailers desired mix of new versus loyal customers depends on that retailers stage in its life
cycle, goals, and resources, and its competitors actions.
A mature retailer is more apt to rely on core customers and supplement its revenues with new
shoppers. A new retailer faces the dual tasks of attracting shoppers and building a loyal following; it
cannot do the latter without the former. If goals are growth-oriented, the customer base must be
expanded by adding stores, increasing advertising, and so on; the challenge is to do this in a way that
does not deflect attention from core customers. Although it is more costly to attract new customers
than to serve existing ones, core customers are not cost-free. If competitors try to take away a
retailers existing customers with price cuts and special promotions, a retailer may feel that it must
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pursue competitors customers in the same way. Again, it must be careful not to alienate core
customers.
Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the goods and services it sells. Customer service affects the total retail
experience. Consistent with a value chain philosophy, retailers must apply two elements of customer
service: expected customer service is the service level that customers want to receive from any
retailer, such as basic employee courtesy; augmented customer service includes the activities that
enhance the shopping experience and give retailers a competitive advantage.
The attributes of personnel who interact with customers (such as politeness and knowledge), as well
as the number and variety of customer services offered, have a strong effect on the relationship
created.
Planning the best customer service strategy can be complex and challenging especially during
economically difficult times which is causing retailers to cut costs in many areas of their businesses;
albeit customers still expect the same level of service. Customer service satisfaction has always
been a key for positive financial results. Businesses must not make customer service investments
only to keep pace with growth, they should view their spending as a strategic benefit to bring greater
customer satisfaction and retention.
Some retailers realise that customer service is better when they utilise employee empowerment,
whereby workers have the discretion to do what they believe is necessary, within reason, to satisfy
the customer, even if this means bending some rules.
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Customer Satisfaction
Customer satisfaction occurs when the value and customer service provided through a retailing
experience meet or exceed consumer expectations. Only very satisfied customers are likely to
remain loyal in the long run.
Loyalty Programs
Consumer loyalty programs reward the retailers best customers, those with whom it wants long-
lasting relationships.
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Channel Relationships
Within a value chain, the members of a distribution channel (manufacturers, wholesalers, and
retailers) jointly represent a Value Delivery System, which comprises all the parties that develop,
produce, deliver, and sell and service particular goods and services.
The ramifications for retailers include:
82. Each channel member is dependent on the others. When consumers shop with a certain
retailer, they often do so because of both the retailer and the products it carries.
83. All value delivery system activities must be enumerated and responsibility assigned for
them.
84. Small retailers may have to use suppliers outside the normal distribution channel to get the
products they want and gain adequate supplier support. Although large retailers may be
able to buy directly from manufacturers, smaller retailers may have to buy through
wholesalers that handle small accounts.
85. A value delivery system is as good as its weakest link. No matter how well a retailer
performs its activities, it will still have unhappy shoppers if suppliers deliver late or do not
honour warranties.
86. The nature of a given value delivery system must be related to target market expectations.
87. Channel member costs and functions are influenced by each partys role. Long-term
cooperation and two-way information flows foster efficiency.
88. Value delivery systems are complex due to the vast product assortment of superstores, the
many forms of retailing, and the use of multiple distribution channels by some
manufacturers.
89. Non-store retailing (such as mail-order, phone, and online transactions) requires a different
delivery system than does store retailing.
90. Due to conflicting goals about profit margins, shelf space, and so on, some channel
members are adversarialto the detriment of the value delivery system and channel
relationships.
When members of a Value Delivery System forge strong positive channel relationships, they better
serve each other and the final consumer.
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The terms customer service and service retailing are not interchangeable. Customer service refers to
the activities undertaken in conjunction with the retailers main business; they are part of the total
retail experience. Service Retailing refers to situations in which services are sold to consumers.
There are four unique aspects of service retailing that influence relationship building and customer
retention.
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The intangible (and possibly abstract) nature of services makes it harder for a retailer to develop a
clear consumer-oriented strategy, particularly because many retailers (such as opticians, repair
people, and landscapers) start service businesses on the basis of their product expertise. The
inseparability of the service provider and his or her services means that the owneroperator is often
indispensable and good customer relations are pivotal.
100. Perishability presents a risk that in many cases cannot be overcome. Thus, revenues from
an unrented hotel room are forever lost.
101. Variability means that service quality may differ for each shopping experience, store, or
service provider.
Service retailing is much more dependent on personal interactions and word-of-mouth communication
than is goods retailing:
Relationship marketing benefits the customer, as well as the firm. For services that are
personally important, variable in quality, and/or complex, many customers will desire to be
relationship customers. Medical, banking, insurance, and hairstyling services illustrate some
or all of the significant factors, importance, variability, and complexity, which would cause
many customers to desire continuity with the same provider, a proactive service attitude, and
customised service delivery.
The intangible nature of services makes them difficult for customers to evaluate prior to
purchase.
The heterogeneity of labour-intensive services encourages customer loyalty when excellent
service is experienced. Not only does the auto repair firm want to find customers who will be
loyal, but customers want to find an auto repair firm that evokes their loyalty.
Knowledge of the customer combined with social rapport built over a series of service
encounters facilitates the tailoring of service to customer specifications. Relationship
marketing does not apply to every service situation. However, for those services distinguished
by the characteristics discussed here, it is potent.
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Ethics
In dealing with their constituencies (customers, the general public, employees, suppliers, competitors,
and others), retailers have a moral obligation to act ethically. Furthermore, due to the attention paid to
firms behaviour and the high expectations people have today, a failure to be ethical may lead to
adverse publicity, lawsuits, the loss of customers, and a lack of self-respect among employees.
When a retailer has a sense of ethics, it acts in a trustworthy, fair, honest, and respectful manner with
each of its constituencies. Executives must articulate to employees and channel partners which kinds
of behaviour are acceptable and which are not. The best way to avoid unethical acts is for firms to
have written ethics codes, to distribute them to employees and channel partners, to monitor
behaviour, and to punish poor behaviour, and for managers to be highly ethical in their own conduct.
Often society may deem certain behaviour to be unethical even if laws do not forbid it. Most observers
would agree that such practices as these are unethical (and sometimes illegal, too):
113. Contacts which do not disclose the sponsor and the purpose of the contact.
114. Competition prizes not advertised in a clear, honest, and complete way.
115. Merchandise shipped without receiving customer permission.
116. Telemarketers knowingly call a consumer with an unlisted or unpublished phone number.
Social Responsibility
A retailer exhibiting social responsibility acts in the best interests of society, as well as itself. The
challenge is to balance corporate citizenship with a fair level of profits for shareholders, management,
and employees. Some forms of social responsibility are virtually cost-free, such as having employees
participate in community events or disposing of waste products in a more careful way. Some are more
costly, such as making donations to charitable groups or giving away goods and services to a school.
Still others mean going above and beyond the letter of the law, such as having free loaner
wheelchairs for persons with disabilities in addition to having legally mandated wheelchair
accessibility to retail premises.
Retailers know that socially responsible acts do not go unnoticed. Though the acts may not stimulate
extra profits for firms with weak strategies, they can be a customer inducement for those otherwise
viewed as me too entities. It may also be possible to profit from good deeds; a retailer donates
excess inventory to a charity for the poor, it can take a tax deduction equal to the cost of the goods.
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Consumerism
Consumerism involves the activities of government, business, and other organisations to protect
people from practices infringing upon their rights as consumers. These actions recognise that
consumers have basic rights that should be safeguarded.
Retailers and their channel partners need to avoid business practices that violate consumer rights and
to do all they can to understand and protect them, for reasons that include the following:
To avoid customer relations problems, retailers must devised programs to protect consumer rights
without waiting for government or consumer pressure to do so.
Retailers should enacted programs to test merchandise for specific attributes:
122. Value
123. Quality
124. Misrepresentation of contents
125. Safety
126. Durability
Other consumerism activities should be undertaken by the retailer:
127. Setting clear procedures for handling customer complaints
128. Sponsoring consumer education programs
129. Training personnel to interact properly with customer
Summary:
130. Understand what value really means and highlight its pivotal role in building and
sustaining relationships.
a. Undertake activities and processes to provide a given level of value for the consumer.
b. Consumers perceive the value offered, based on the perceived benefits received
versus the prices paid.
c. Perceived value varies by type of shopper.
d. Value chain represents the total bundle of benefits offered by a channel of
distribution.
e. Value chain comprises store location, ambience, customer service, the
products/brands carried, product quality, the in-stock position, shipping, prices, the
retailers image, and so forth.
f. Elements of a retail value chain visible to shoppers.
g. Expected retail strategy which represents the minimum value chain elements a given
customer segment would expect from the retailer.
h. Augmented retail strategy which includes the extra elements that differentiate the
retailer.
i. Potential retail strategy includes value chain elements not yet perfected in the
retailers industry category.
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131. Understand both customer relationships and channel relationships which may be
nurtured.
a. Enduring relationships with other channel members, as well as with customers.
b. Realisation that loyal customers are the backbone of their business.
c. Applying relationship retailing with consumers which identify factors which should be
considered:
i. the customer base
ii. customer service
iii. customer satisfaction
iv. loyalty programs
v. defection rates.
d. Which shoppers are more worth nurturing because they are a retailers core customers.
e. The attributes of personnel who interact with customers
f. Number and variety of customer services offered.
g. Improved customer service by empowering personnel
h. Implementation of specific tactics as to credit, delivery, and so forth.
i. Customer satisfaction because the value and customer service provided in a retail
experience meet or exceed expectations.
j. Loyalty programs which reward the best customers with whom a retailer wants to develop
long-lasting relationships.
k. Sound value-driven retail strategy.
l. Study of defections, how many customers are lost, and why they no longer patronise the
store.
m. Members of a distribution channel jointly representing the value delivery system.
n. Distribution activities which are enumerated and responsibility assigned.
o. Category management.
134. Interplay between the retailers ethical performance and relationships in retailing.
a. Ethics of the retailers moral principles and values
b. Social responsibility
c. Consumerism
d. Act in a trustworthy, fair, honest, and respectful way.
e. Avoids unethical behaviour through written ethics codes, communicate them to
employees, monitor and punish poor behaviour, and has ethical executives
f. Recycling and conservation programs
g. Consumer rights to safety, to be informed, to choose, and to be heard.
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Consumers in developed countries spend most of their after-tax income on such services as travel,
recreation, personal care, education, medical care, and housing. In developed countries between 70-
80% of the labour force works in services.
During the past 30 years, the prices of services have risen more than the prices of many goods
because manufacturing has migrated to low cost countries and of course services incur the local
labour costs. In addition, technological advances, automation has substantially reduced
manufacturing labour costs, but many services remain labour-intensive because of their personal
nature.
Many traditional goods retailers are now turning their attention to the provision of services and the
historic dividing lines between goods and services retailers is now very blurred.
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Standardising services:
18. Reduces their variability
19. Makes it easier to set prices
20. Improves efficiency
Services can be standardised:
21. By clearly defining each of the tasks involved
22. Determining the minimum and maximum times needed to complete each task
23. Selecting the best order in which to do tasks
24. Noting the optimum time and quality of the entire service
Service retailers may be able to make services more efficient:
25. By automating them and substituting machinery for labour.
26. Optimum location of a service centres
27. Use of mobile customer service facilities
Pricing decisions can be improved:
28. Communicate value through their pricing
29. Satisfaction-based pricing recognises and reduces customer perceptions of uncertainty that
service intangibility magnifies
30. Service guarantees
31. Benefit-driven pricing
32. Flat-rate pricing.
33. Relationship pricing which encourages long-term relationships with valuable customers
through long-term contracts and price bundling
34. Cost leadership techniques
35. Negotiated pricing where the retailer works out a one-time pricing arrangements with
individual customers because of a unique or complex service
36. Contingency pricing where the retailer does not get paid until after the service is performed
and payment is contingent on the services being satisfactory.
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This data is available on a Corporate basis and on a Location/Site basis for 7-Eleven
1. Gender
2. Age
a. Under 13
b. 13-17
c. 18-25
d. 26-34
e. 35-54
f. 55-64
g. 65 or over
3. Marital status
a. Single, never married
b. Married without children
c. Married with children
d. Divorced
e. Separated
f. Widowed
g. Living with partner
5. Are there any children in at home, if so, what are their ages
a. Under 10
b. 10 to 15
c. 16 to 19
d. No, no children at home
6. Indicate the number of children in your household under the age of 18.
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a. 0
b. 1
c. 2
d. 3
e. 4 or more
f. How many Boys
g. How many Girls
9. Do you
a. Own
b. Rent your home
c. Other
10. Which of the following best describes the area you live in?
a. Inner city / downtown
b. Urban
c. Suburban
d. Rural
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b. Middle Management
c. Junior Management
d. Administrative Staff
e. Support or Functional Staff
f. Student
16. The organisation you work for comes under which of the following categories?
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
17. Can you estimate your organisation's total budget for this year?
a. less than $1 million (US)
b. $1 million to $10 million (US)
c. $10 million to $100 million (US)
d. $100 million to $500 million (US)
e. $500 million to $1 billion (US)
f. over $1 billion (US)
g. Do not know or Rather not say
18. During an average week, most of your professional correspondence (postal mail or e-mail) is
with which of the following:
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
19. Indicate which of the following are sources of revenue for your organisation:
a. Sales to individuals or private organisations (but not contracts)
b. Sale to government organisations (but not contracts)
c. Contracts to do work for private organisations
d. Contracts to do work for government organisations
e. Contracts to do work for other organisations
f. Government appropriations
g. User charges and fees
h. Donations
i. Don't know or Other
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Brand Survey
Derived from the Customer Surveys:
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Customer Surveys
Customer Surveys of 7-Eleven: as an Excel file: Part_N.1.6
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13. In thinking about your most recent experience with the retailer, was the quality of customer
service you received:
a. Very Poor
b. Somewhat Unsatisfactory
c. About Average
d. Very Satisfactory
e. Superior
15. How satisfied are you with the product(s) regarding the following items?
a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, customer service etc.)
18. Compared to other product(s) in this category that are available, would you say that the
product(s) is/are:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
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21. Based on your experience with the product(s), how likely are you to buy again?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely
22. If you contacted the companys customer service, were all problems resolved to your
complete satisfaction?
23. In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Superior
26. Which of the following qualities of the service representative stood out (as being superior)?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other
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b. Not enthusiastic
c. Didn't listen carefully
d. Unfriendly
e. Unresponsive
f. Other
g. No qualities irked me
29. What would best describe your experience, when you called?
a. Kept me waiting on hold
b. Had to explain several times
c. Didn't know how to handle problem
d. Had to ask others
e. Spoke slowly
f. Other
g. No improvement needed
32. The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
33. My phone call was quickly transferred to the person who could best assist me:
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
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34. Over the next 12 months, how likely are you to replace your product with another (product or
brand)?
a. Certain
b. High chance
c. Equal chance
d. Low chance
e. Never
35. In your most recent customer service experience, how did you contact the representative?
a. In Person
b. By Telephone
c. Internet
d. Through a Dealer/Retailer/Broker
e. Other
f. Sufficient information was available on the internet to solve my problem.
36. About how long did you have to wait before speaking to a representative?
a. I was taken care of immediately
b. Within 3 minutes
c. 3-5 minutes
d. 5-10 minutes
e. More than 10 minutes
38. About how long did it take to get this problem resolved?
a. Immediate Resolution
b. Less than a day
c. Between 2 and 3 days
d. Between 3 and 5 days
e. More than a week
f. The problem is still not resolved
39. How many times did you have to contact customer service before the problem was corrected?
a. Once
b. Twice
c. Three Times
d. More than Three times
40. Overall, how satisfied are you with the customer service experience?
41. If you were less than totally satisfied, what could have been done to serve you better?
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Customer Satisfaction
Customer Surveys of 7-Eleven: as an Excel file: Part_N.1.7
Net Promoter Score (NPS) TYPE survey. The *Net Promoter Score is a common test of
customer satisfaction.
The score is calculated by sorting respondents into Promoters (High), Neutrals (Middle) and
Detractors (Low), then subtracting the percentage of respondents that are Detractors from the
percentage that are Promoters. This survey calculates a Net Promoter Score type for two
instances: the purchase of a specific Brand Model and overall feelings of the Brand. In
addition, it collects other feedback and demographic information for future segmentation.
*The Net Promoter Score is a registered trademark of Bain & Company and Satmetrix.
1. Considering only your most recent purchase experience, how likely would you be to
recommend the purchase of the product(s) to a friend or colleague? (0 is not at all likely, 10 is
extremely likely)
2. Considering your complete experience with the company, how likely would you be to
recommend the company to a friend or colleague? (0 is not at all likely, 10 is extremely
likely)
Customer Voices
Customer Surveys of 7-Eleven: as an Excel file: Part_N.1.8
1. There would be something missing in my life if the store / brand did not exist.
2. I have the feeling that I really understand the store / brand.
3. I have feelings for the store / brand that I do not have for other companies/brands.
4. The store / brand has always been good for me.
5. The store / brand and I have a lot in common.
6. The store / brand reminds me of things I have done and places where I have been.
7. The store / brand can always count on me.
8. I trust the store / brand
9. I am satisfied with the quality of products of the store.
10. The quality of the products of the store is important to me.
11. I am satisfied with the value for money I get from store.
12. The value for money I get from store is important for me.
13. I am satisfied with the reliability of the products of the store.
14. The reliability of products of the store is important to me.
15. I am satisfied with the product guarantee from the store.
16. The product guarantees at the store is important to me.
17. I am satisfied with the expertise of the store service staff.
18. The expertise of the store service staff is important to me
19. I am satisfied with the fast response of the store service staff
20. The fast response of the store service staff is important to me.
21. The store sales people are friendly.
22. The friendliness of the store sales people is important to me.
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6. If you contacted customer service, have all problems been resolved to your complete
satisfaction?
a. Yes, by the company or its representatives.
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
7. Based on your awareness of the product(s) / service(s), is it better, the same, or worse than
other brands?
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a. Much Better
b. Better
c. About the same
d. Worse
e. Much Worse
9. Based on your experience with the product(s), how likely are you to buy the product(s) again?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not
10. Based on your experience with the product(s), would you recommend this product to a friend?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not
1. Purchase Satisfaction: How much do you agree or disagree with the following statements
about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. This is one of the best products I could have bought.
b. This product is exactly what I need.
c. This product hasnt worked out as well as I thought it would.
d. I am satisfied with my decision to buy this product.
e. Sometimes I have mixed feelings about keeping the product(s).
f. My choice to buy this product was a wise one.
g. If I could do it over again, Id buy a different make/brand.
h. I have truly enjoyed this product.
i. I feel bad about my decision to buy this product.
j. I am not happy that I bought this product.
k. Owning this product has been a good experience.
l. Im sure it was the right thing to buy this product.
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2. How much do you agree or disagree with the following statements about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. I am pretty satisfied with the product(s) I chose.
b. I am pretty certain that I made the best decision about which product(s) to select.
c. I felt confused while shopping for the product(s).
d. I am pretty sure that one of the other brands of the product(s) that I did not
choose would have been equal to or better than the brand I chose to satisfy my
desires and expectations.
e. It is likely that the brand of the product(s) I chose is better than the other brands
of the product(s) I am currently familiar with.
f. If I could do it over again, Id buy a different make/brand.
Product Ownership
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
4. What was the name of the store where this product was bought?
5. What price did you pay for this product?
6. How many Company products do you own?
7. How many similar products of any brand do you own?
8. How many Company products have you bought in the past 12 months?
9. How many similar products of any brand have you bought in the past 12 months?
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2. About how many units of this new product would you buy over the next year at each price
point listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what would you expect to pay for the new product(s) / service(s) like the one
described? (Nearest dollar)
4. At what price would this new product begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
5. At what price would this new product begin to look Fair Value?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
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g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
7. At what price would the product begin to look so expensive that you would never consider
buying it?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
8. If you knew that the average price of similar New brand / product / service was [Price], would
you expect to pay more or less to buy the described new brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less
9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use
10. How often could you find a use for the described new brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use
11. Based on the description, how interested would you be in buying the described new brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested
12. What is it that you like most about the described new brand / product / service?
13. What do you like least about the described new brand / product / service?
14. Which of the following best describes your need for this new brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.
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2. Having been told / seen a list of features that are part of the product: How important is each
feature to you?
a. Not At All Important
b. Extremely Important
7. Based on the product description, how interested would you be in buying this product if it
were within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Extremely interested
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Product Survey
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
3. How satisfied are you with the service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied
5. For your NEXT product purchase, how likely are you to purchase from the retailer?
a. Very likely
b. Somewhat likely
c. Not sure
d. Somewhat unlikely
e. Very unlikely
6. Which of the following modes did you use for your last purchase of the product(s)?
a. Store
b. Mail order
c. Internet
d. Over the phone
e. Other
7. What are the THREE main reasons you didn't purchase the product(s) from the retailer?
8. If you could change something about the retailer what would it be?
9. Are there any other comments you have for the retailer?
10. How did you first discover this product was available for purchase?
a. Advertising - TV, newspaper, magazine, radio
b. Ad in another product(s) - brochure, preview
c. Friends/Family/Someone told me about it
d. Read a magazine article/review
e. Saw it in the store/Browsing in store
f. Through the mail/mail catalogue
g. Other
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c. It is familiar
d. Good for the whole family
e. Saw it in the store
f. I like the product(s)
g. It was on sale
h. Other
18. If you do not have all of your service work done at this company, tell us why:
a. Location
b. Quality of service
c. Price
d. Parts not available
e. Treatment by personnel
f. Cannot get work done quickly enough
g. Service Department hours
h. Length of time to get service at companies
i. Time it takes to get repair order written up
j. Other
19. Have you returned to this company for any type of service during the past 12 months?
a. Yes
b. No
c. Not sure
20. For your most recent visit to this company, what type of service did you have done?
a. Routine maintenance
b. Repairs
c. Service repairs you paid for
d. Warranty-covered repairs
e. Other
21. Overall, how satisfied are you with this service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied
22. Did you have any concerns with the companys handling of this service visit?
a. Yes
b. No
23. Did you let the company know about your concern(s)?
a. Yes
b. No
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25. How satisfied were you with the action taken by the company to address your concern(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied
Product Purchases
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
5. Based on your experience, how does the product(s) compare with other brand product?
a. the product(s) is better
b. About the same
c. the product(s) is worst
d. Not sure
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8. How frequently are you using the product(s) as compared to a month ago?
a. More frequently
b. About the same
c. Less
d. Not sure
10. Do you typically read the back and side panel of the products package?
a. Yes
b. No
c. Don't remember
12. What other brands of product(s) in this category have you heard of or used before?
a. Brand A
b. Brand B
n
c. Brand
d. Don't know
e. None or Other
13. Which of the following attributes enticed you to try the product(s) initially?
a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Not sure or Other
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1. Approximately how many times did you shop for electrical or electronic products in the past
year?
2. Indicate the approximate total amount your family spent on electrical or electronic products
within the last year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Don't know/Not sure
3. During the past year, have you or a member of your family purchased a major electrical or
electronic product?
4. If yes, what item was purchased?
a. TV (priced more than $800)
b. TV (priced between $400 and $799)
c. TV (priced less than $400)
d. DVD Recorder / Home cinema
e. Home Computer
f. Household White Goods
8. The total number of hours spent inside retail stores while making this decision?
9. How many brands or individual products did you examine in the different retail stores?
10. The item was purchased:
a. as a gift for someone not in your household.
b. as a gift for someone in your household.
c. to be used mostly by other members of your household.
d. to be used mostly by yourself.
e. Other
11. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. More than 5 times
f. Don't know/Not sure
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13. Approximately how many times did you shop for electronic products in the past year?
14. Indicate the approximate total amount your family spent on electronic product within the last
year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Can't say
15. During the past year, have you or a member of your family purchased a major home
appliance or white good product?
16. How much did you pay for the item(s)?
17. If you purchased accessories, how much did you pay for these items?
18. How many phone calls were made to retailers while deciding to purchase this product?
19. How many times did you visit the different retail stores?
20. The total number of hours spent inside retail stores while making this decision?
21. How many brands or individual products did you examine in the different retail stores?
22. The item was purchased for the following reasons
23. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. 5-6
f. More than 6 times
24. Which of the following have you purchased within the last month?
a. Microwave
b. Household white goods
c. audio/car stereo/radio/cassette
d. Calculator
e. Video / computer game
f. Computer
g. Phone
h. TV
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25. In thinking about your most recent experience with the Company, was the quality of customer
service you received:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
26. If you were not totally satisfied with the customer service, describe the reasons for your
dissatisfaction.
28. If you were not totally satisfied with the process of getting your problem resolved, describe the
reasons for your dissatisfaction.
29. Would you say the value of the Company product, as compared to its price, is:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
30. The following questions pertain to the customer service representative you spoke to most
recently:
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
The following questions pertain to the process by which your most recent service contract
was handled:
34. The waiting time for having my questions addressed was satisfactory.
35. My phone call was quickly transferred to the person who best could answer my question.
36. The automated phone system made the customer service experience more satisfying.
37. Consider the total package of the Company including customer service, features and benefits,
and cost. How satisfied are you with the company?
38. If the Companys Products were no longer available, what would you replace it with?
a. Functional Competitors
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b. In-Kind Competitors
39. All things considered, over the next 12 months how likely are you to replace the Company's
Products?
a. Certain
b. High Chance
c. Not sure
d. Low Chance
e. Never
40. If you are looking to replace Company's Products, what are some of the reasons for doing
so?
42. What are some things that the Product/Service could do better?
43. In your opinion is the product better, about the same or worse than other companys
product(s)?
a. Better
b. About the same
c. Worse
46. How often are you using the product(s) as compared to a month ago?
a. More
b. About the same
c. Less
d. Can't say
48. Do you typically read the back and side panel of the products package?
a. Yes
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b. No
c. Not sure
50. What other brands of product(s) in this category have you heard of?
55. Overall, how satisfied are you with the Product / Service?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
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58. What recommendations would you offer for improving the Product or Service?
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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1. Within what price range are the daytime clothes you typically purchase?
a. $30.00 or less
b. $30.01 to $50.00
c. $50.01 to $70.00
d. $70.01 to $90.00
e. $90.01 to $110.00
f. $110.01 to $130.00
g. $130.01 to $150.00
h. $150.01 to $170.00
i. $170.01 to $210.00
j. More than $210.00
2. When shopping for everyday clothes, how many stores do you typically visit?
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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Listed below are statements about shopping behaviour for clothes and about clothing fashions:
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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Statements about shopping behaviour for clothes and about clothing fashions.
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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1. I prefer to invite friends over for dinner rather than take them out to eat.
2. If a product is out of stock in a supermarket I would substitute rather than go to another store
to get it.
3. I would rather shop in a large supermarket than a small supermarket.
4. I enjoy preparing meals at home.
5. I plan meals ahead of my shopping trip.
6. A supermarket is a good place to buy CDs and tapes.
7. I like supermarket shopping.
8. If they were available, I would buy hot, ready-to-eat foods (e.g., pizza, chicken) in a
supermarket.
9. Supermarkets make too much money.
10. I use as many coupons as I can to keep my grocery bill down.
11. A supermarket is a good place to buy automotive products.
12. I like to try new grocery products when they first come out.
13. Supermarkets do a good job in meeting the needs of single shoppers.
14. Too many products are out of stock when I shop.
15. The way supermarkets are laid out makes it easy to find the products I need.
16. Supermarkets would overcharge if they thought they could.
17. I try to save time by buying all groceries at one store.
18. I have been buying less Convenience Foods to cut back on my grocery spending.
19. Computerised checkout scanners benefit shoppers.
20. I normally buy some products on my grocery shopping trip that I hadn't planned to.
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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Select the answer that best expresses how important you think the factor is to you in selecting a
supermarket.
1. Fast checkout
2. A gourmet food section
3. Low priced advertised specials
4. Close to where you live
5. Offers coupons in newspaper advertisements
6. Courteous, friendly employees
7. Offers generic products
8. Makes it easy to cash checks
9. Large selection of wines
10. Offers several brands to choose from in a category
11. Provides menu and recipe ideas
12. Convenience of parking
13. High quality fruits and vegetables
14. Has a prescription pharmacy in store
15. Wide selection of ethnic foods (i.e., Mexican, Japanese, etc.)
16. Open 24 hours
17. Quality of meat cuts
18. Wide selection of store private labels
19. A service deli (with clerks to prepare product of your choice)
20. Provides nutritional information about products
21. Wide selection of national brands
22. Has bakery in the store
23. Offers a variety of health and personal care products
24. Offers variety of smaller size (e.g., single serving) products
25. Large selection of fruits and vegetables
26. Sells fresh seafood
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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Comparative list of retail merchandise items to profile store preference by merchandise category:
Thinking of all the stores in this area where you or your family might shop, in which store would you
most likely shop for the following items?
1. Men's underwear
2. Women's underwear
3. Sports equipment
4. Men's sweaters
5. Women's dresses
6. Fishing tackle
7. Costume jewellery
8. Maintenance-free battery for a car
9. Auto oil filter and/or motor oil
10. Power lawnmower and other power garden tools
11. Exterior house and trim paint
12. Jeans for yourself
13. Small kitchen appliances
14. Sports or casual slacks
15. Portable TV
16. A digital camera
17. Installation of a car exhaust system
18. Ceiling fans and accessories
19. Paint for your living room
20. Small power tools such as a power drill
21. Mobile phone
22. Hand tools such as hammers, screw drivers
23. Easy to assemble furniture
24. Exercise equipment
25. Bicycles for yourself or your children
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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4. Overall, how interested are you in buying this service in the future?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested
5. Based on the description, what price would you expect to pay for the service?
6. If additional features were added to the basic concept, what would expect to pay?
7. If you wanted to buy/have this new service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other
8. Which groups of people do you expect to be the greatest users of this service?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other adult
g. Teen 13-18 years
h. Child 8-12 years
i. Child 2-7 years
j. Infants
10. How aware are you of the following companies that offer similar services?
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2. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
c. About 1 minute
d. 2-5 minutes
e. More than 5 minutes
f. I left a message
g. Does not apply
h. Other
3. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
g. Does not apply
5. Overall how satisfied are you with the companys customer service representative?
a. Very satisfied
b. Satisfied
c. Average
d. Dissatisfied
e. Very dissatisfied
f. Very dissatisfied
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1. Have you ever bought / ordered the product(s) from the retailer?
2. Overall, how would you rate the Customer Service from retailer?
a. Excellent
b. Good
c. Average
d. Poor
e. Terrible
f. Not Sure
3. How satisfied are you with the Customer Service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied
4. Would you recommend the Customer Service from the retailer to a friend?
a. Yes
b. No
c. Not Sure
d. If no, why not?
5. For your NEXT product(s) purchase, how likely are you to purchase from the retailer?
a. Definitely would buy
b. Probably would buy
c. Might or might not buy
d. Probably would not buy
e. Definitely would not buy
6. Which of the following modes did you use to place the order for the product(s)?
a. In-store
b. Mail order
c. Internet
d. Over the phone
e. Fax
f. Other
7. What are the THREE main reasons you didn't purchase the product(s) from another
company?
8. What would you change about the process of purchasing the product(s) (i.e. placing the
order, mode of payment, delivery, etc.) from the retailer?
10. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
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c. About 1 minute
d. 2-5 minutes
e. More than 5 minutes
f. I left a message
11. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
13. Overall, how would you rate your satisfaction with the companys customer service
representative?
a. Extremely satisfied
b. Satisfied
c. Neutral
d. Unsatisfied
e. Extremely unsatisfied
14. Do you have comments or suggestions that would help us improve the companys customer
service?
15. Overall, I am very satisfied with the way the retailer performed (is performing).
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
26. What would be the primary reason for being very satisfied with the retailer service
representatives?
27. What would be the primary reason for being very satisfied with the retailer store senior staff?
28. Compared to how you felt about the retailer before, what would you say is the likelihood of
purchasing again?
a. Better, based on performance
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29. Considering the overall value of the project you paid for, was it
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it
d. Not sure
30. Overall, how do you feel about your experience the service provided?
a. Excellent
b. Very Good
c. Good or Fair
d. Poor
31. How would you rate the product for ease of use?
a. Excellent
b. Very Good
c. Adequate
d. Poor or Very Poor
32. In speaking with the support representative, how would you rate the following?
a. Friendly
b. As friendly as I expected
c. Friendly
d. Average
e. Less friendly than I expected
f. Unfriendly
33. Professionalism
a. As professional as I expected
b. Professional
c. Neither professional nor unprofessional
d. Less professional than I expected
e. Unprofessional
35. When solving your problem, how would you rate the information provided?
a. Extremely well presented and understandable
b. Well presented and understandable
c. Sufficient to solve the problem
d. Difficult to understand
e. Extremely difficult to understand
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b. No
38. If you needed to contact the company's support service again and were given the option to
speak with this representative, would you?
a. Yes
b. No
39. How would you rate the company's support as compared to that of other companies?
a. much better than other companies' support.
b. better than other companies' support.
c. about the same quality as other companies' support.
d. worse than other companies' support.
e. much worse than other companies' support.
f. I have never contacted another company for support.
40. What features/attributes of this support service are the most valuable to you?
41. What do you find least appealing about this support service?
42. Overall, how interested are you in buying this support service?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested
43. Based on the description, what price would you expect to pay for the support service?
44. If you wanted to use the support service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other
45. Who do you expect will use the support service most?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other
46. How often do you use products from this product(s) in this category?
a. Every day
b. Once a week
c. Once a month
d. Every three months
e. several times a year
f. Less often
g. Never used
47. How aware are you of the following companies that offer similar services?
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9. There was sufficient information available on the support web site to solve my problem.
a. Strongly Agree
b. Somewhat Agree
c. Neutral
d. Somewhat Disagree
e. Strongly Disagree
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17. Overall, how satisfied are you with the customer service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
18. If you were less than totally satisfied, what could have been done to serve you better?
8. With the overall value of the company's services compared with the price paid?
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
b. No
c. Not sure
17. Which of the following MOST influenced your purchase of Brand products?
a. In-store display
b. Previous experience with the brand
c. Price/Good value
d. Style/Appearance
e. Colour/Design
f. Size/Capacity
g. Weight
h. Warranty
i. Comfortable
j. Quality construction
k. Durability
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11. Overall, the value of Company's services compared with the price paid is:
e. Poor Fair
f. Good
g. Very Good
h. Excellent
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7. Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
9. Overall, the value of the company's services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
10. Would you recommend the company's services to family, friends or colleagues?
a. Yes
b. No
c. Not sure
Rate your satisfaction with the dealer service department on each of the following:
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12. Select the category of service work performed for the last service visit:
a. Warranty
b. Non-warranty
c. Scheduled maintenance
d. Other
14. After your service visit, did someone from the company contact you by phone or by mail to
see if you were satisfied with the overall service experience?
15. Would you recommend this company to a friend or relative as a place to have their products
serviced?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
16. Should you need service again, would you return to this company?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
17. If you are not totally satisfied with the service, state below the reason(s) for your
dissatisfaction.
26. How long did you have to wait before a salesperson attended to you?
a. 0-2 minutes
b. 3-5 minutes
c. 6-10 minutes
d. 11-15 minutes
e. more than 15 minutes
27. On your most recent service, how would you rate the service in the following areas?
a. Quality of work performed
b. Avoiding inconveniencing you
c. Making you feel comfortable
d. Willingness to go out of their way to satisfy you
e. Friendliness and helpfulness of cashiers
f. Having convenient hours for service
g. Ease of obtaining an appointment
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28. Did the following things occur on your most recent service visit?
a. You were explained the work to be performed beforehand.
b. You were explained the work performed and the breakdown of the charges.
c. You were informed when the work was done.
d. The paperwork was completed and waiting
e. They contacted you to ensure the work was performed to your satisfaction
30. How satisfied are you with the customer service you received most recently:
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
31. If you were not totally satisfied with the customer service, describe the reason(s) for your
dissatisfaction?
32. Describe the aspects of the service that you were completely satisfied with?
33. How satisfied are you with the process of getting your question resolved.
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
34. If you were not totally satisfied with the process of getting your question resolved, describe
the reason(s) for your dissatisfaction?
35. If you were satisfied with the process of getting your question resolved, describe the
reason(s) for your satisfaction?
36. How would you rate the product's value for money:
a. Excellent
b. Good
c. Fair
d. Poor
e. Not sure
Choose an option that closely represents your opinion about the customer service representative that
you spoke to recently:
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Choose an option that closely represents your opinion about the process with which your most recent
service contract was handled:
42. The waiting time for having my questions addressed was satisfactory.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
43. My phone call was quickly transferred to the person who best could answer my question.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
44. The automated phone system made the customer service experience more satisfying.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
Consider the total package i.e. the customer service, the product(s) features, benefits, and cost:
46. If the product(s) were no longer supplied by the company, what would you replace it with?
a. Functional Competitors
b. In-Kind Competitors
47. All things considered, over the next 12 months how likely are you to replace the Companys
product(s) with a Competitors Products?
a. Very certain
b. High chance
c. Low chance
d. No chance
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e. Not sure
48. What are some of the reasons that you are looking to replace the Companys product(s)
during this year?
59. How could the company improve the quality of support we provide to you?
61. Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
62. Overall, the quality of the company's sales department service is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
63. Overall, the value of the company services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
64. Would you recommend the company services to family and friends?
a. Yes
b. No
c. Not sure
d. Other
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65. In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent
68. What about the process of getting your problem resolved stands out?
70. Was there anything about the courteousness of the service that stands out as being
superior?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other
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f. No improvement needed
g. Other
76. The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
77. My phone call was quickly transferred to the person who best could answer my question.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
80. Overall, how satisfied are you with the product(s) / service(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
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81. How likely are you to use/purchase the product(s) / service(s) again?
a. Very likely
b. Probably
c. Maybe
d. Probably not
e. Definitely not
f. Never used
83. What recommendations would you offer for improving the product(s) / service(s)?
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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Website Evaluation
Customer Surveys of 7-Eleven: as an Excel file: Part_N.1.30
1. How often you visit the companys website.
a. Everyday
b. Once a week
c. Once a month
d. Rarely
2. When you visit the site, are you using the computer from
a. Office
b. Home (including a home office)
c. Equally from the home and office
d. Other
4. How much effort did you have to take to find the companys web site?
a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected
5. From your experience with other sites, rate the following features of the web pages:
a. Visual appearance/layout
b. Content
c. Writing style
6. From your experience, what do you find is the biggest challenge in using the companys site?
a. I am new to the Internet
b. Information I am looking for is not available
c. Information is not well organised
d. There is just too much information
e. Hard to navigate through the information
f. Takes too long to load a page
g. Downloadable files or forms are in a format I cannot use
7. Did the menu of items on the home page make sense to you?
8. Did you experience any problems downloading files?
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2. In the past three months, have you purchased products or services through the Internet, for
your personal use?
3. Which products or services categories have you most recently purchased online?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
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l. Books or magazines
m. Services
n. Financial & Insurance products
o. Other
4. Thinking back to the Internet retailers you've purchased from, have you ever:
a. provided feedback of the product or services they sell
b. completed a survey for that Internet retailer
c. communicated with other users via e-mail or chat rooms
d. When you began shopping on the last occasion, were you:
i. Just surfing the net
ii. Intending to make a purchase.
iii. Other
6. Did you return the merchandise or cancel the service after you received it?
7. Did you contact the customer service department of this Internet retailer with a complaint or
problem?
8. How much would you estimate you have spent with this Internet retailer in the past twelve
months?
a. less than $50
b. $51-$100
c. $101-$150
d. $151-$200
e. more than $200
9. How many transactions have you made with this Internet retailer over the past 12 months?
11. When you began shopping on the last occasion, were you:
a. Surfing the net with no intent to purchase
b. Surfing the net with intent to make a purchase.
c. Other
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2. How satisfied are you with your current skills for using the Internet?
a. Very satisfied - I can do everything that I want to do
b. Somewhat satisfied - I can do most things I want to do
c. Neither satisfied nor unsatisfied
d. Somewhat unsatisfied - I can't do many things I would like to do
e. Very unsatisfied - I can't do most things I would like to do
4. Some websites ask for you to register with the site by providing personal information. What
percentage of the time do you enter false information when asked to register?
a. Rather not say
b. I've never falsified information
c. Under 25% of the time
d. 26 - 50% of the time
e. 51 - 75% of the time
f. Over 75% of the time
g. I've never registered with a site
5. Why don't you purchase more products and services on the web, either for yourself or for
your work/business?
a. Not applicable
b. Never tried it
c. Too complicated to place order
d. Faster/easier to purchase locally
e. Not familiar with vendor
f. Don't trust that my credit card number will be secure
g. No receipt/documentation
h. Difficult to judge the quality of a product/service
i. Not enough information to make a decision
j. Generally uncomfortable with the idea
k. Other
6. In your opinion, what is the single most critical issue facing the Internet?
a. Finding things/navigating around
b. Speed/bandwidth
c. Government regulation
d. Equal access for all
e. Unacceptable adult content
f. Internet crime (e.g. hate crimes, stalking)
g. Paying for online services or information
h. Censorship
i. Privacy
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j. Other
7. Which of these groups have you become more connected to through the Internet?
a. None
b. People who share my political interests
c. People who share my hobbies/recreational activities
d. People who share my religion
e. People in my profession
f. People in my family
g. People in similar life situations (e.g. self-help groups, support groups)
h. Other groups
8. Complete the following sentence in the way that comes closest to your own views: "Since
getting on the Internet, I have "
a. become MORE connected with people like me.
b. become LESS connected with people like me.
c. Don't know/can't say
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
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1. Company leadership is fully committed to the long-term success of their sales partners.
2. Top management responds adequately to needs in the marketplace.
3. Top management strengthens the company's competitive position.
4. Company leadership can be trusted to do what they say they will do.
5. Company leadership is committed to support and work with the sales team.
6. The company and the sales team are unified, moving in one direction together.
7. The company and the sales team share a positive, winning attitude.
8. There is effective communications between the promotion agency and the company.
9. The promotion agency listens to and understands the sales team's needs.
10. The company's marketing is aligned in support of the sales network.
11. There is effective communications between the company's marketing group and the sales
teams in the field.
12. The marketing group listens to and understands sales teams' needs.
13. Employees understand the company's vision and values.
26. To what extent will the company give greater emphasis to effective business planning over
the next few years?
a. Great extent
b. Moderate extent
c. Slight extent
d. Not at all
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1. In your opinion, how have customer satisfaction ratings changed at your organisation in the
past year?
a. Improved considerably
b. Improved somewhat
c. Has remained about the same
d. Has declined somewhat
e. Has declined considerably
f. Don't know
4. How often does your organisation conduct surveys to evaluate customer satisfaction?
a. Monthly or more often
b. Quarterly
c. Semi-annually
d. Yearly or less often
e. We don't
6. Has your organisation initiated programs to improve customer satisfaction within the past
year?
a. Yes
b. No
c. Don't know
7. What sector of the industry do you believe needs the most improvement in customer
satisfaction?
8. What is the most compelling reason for your organisation to improve customer satisfaction?
a. Fear of losing customer to competitors
b. Fear of losing revenue
c. Fear of increased consumerism
d. Fear of damage to organisation's reputation
e. Other
9. In your opinion, has customer satisfaction been shown to have a direct effect on your
organisation's bottom line?
a. Yes
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b. No
c. Don't know
10. All employee applicants are screened with a test to determine their desire to serve customers.
11. We offer an unconditional 100% guarantee of satisfaction for everything we sell or service--
we make it easy for customers to return anything, without hassle.
12. We trust the judgment of the companys employees and empower them to resolve customer
complaints on the spot.
13. We believe that the companys employees and associates are the best ambassadors of the
companys brand.
15. Every employee and sales associate always greets customers by their names whenever we
speak to them.
6. Overall, how satisfied were you with your last training course:
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Extremely Dissatisfied
7. with the materials you received before the course and their value in preparing you to more
fully participate in the sessions?
8. with the "skill-based" training that emphasises interaction and participation?
9. with applying the business process to a specific product line?
10. with your ability to apply the knowledge and skills from the sessions?
11. with the overall logic and consistency to the series of sessions you attended?
12. that you received at least one specific skill or tool that will enable you to become more
effective in selling company products?
13. with the tools you have been provided to improve the satisfaction rating with your customers?
14. that there was a sufficient amount of time allocated to cover the content in the individual
sessions?
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15. that the information and skill building were relevant to your learning needs?
16. that the sessions changed your behaviour and enhanced your effectiveness in launching new
products?
17. that the information and skill building activities on maintaining and developing accounts were
relevant to your learning needs?
18. that you are incorporating the use of your existing sales analysis tools frequently enough in
calling on your existing accounts?
19. that you are focusing on providing Total Customer Satisfaction with every customer by
soliciting their problems and needs which are not being met?
10. How did your customers first hear about the product(s)?
a. TV
b. Radio
c. Magazine
d. Newspaper
e. Internet
f. Friend/relative/associate
g. Haven't heard of it before
h. Not sure
11. Overall, how do your customers rate the quality of the product(s)?
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a. Poor
b. Fair
c. Good
d. Very Good
e. Excellent
12. What is it that you personally would most like to change about the product(s)?
14. When was the last time you personally used the product(s)?
a. Under 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. Not sure
Distribution Operations:
7. Relative to the companys competitors, products are consistently available in inventory.
8. Compared to the companys competition, the time between receiving and shipping orders is
shorter.
9. Our company relies on supplier drop shipments to consumers to satisfy online orders.
10. Our company's distribution system can handle the volume of online orders.
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11. Relative to the companys competition, online orders are filled from the companys existing
inventory.
12. Compared to the companys competition, the companys relies heavily on backorders.
International Markets:
13. Before we started the companys primary Web site, some people in the company had
experience in international markets.
14. My company knows how to market products in other countries.
15. Few people in my company's primary Web site operations are knowledgeable about foreign
markets.
16. Our e-commerce strategy considers differences between the home market and foreign
markets.
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Channel Issues:
33. We find it difficult to change established procedures to cater to the needs of e-commerce
customers.
34. We can easily change the manner in which we carry out tasks to fit the needs of e-commerce.
35. This firm will not aggressively pursue an e-commerce strategy that causes existing
investments to lose value.
36. We are willing to sacrifice sales from existing channels in order to improve sales on the
companys primary Web site.
Supplier Relations:
37. There is open communication between the companys e-commerce business and the
companys most important supplier.
38. Our e-commerce business and the companys most important supplier share common
objectives.
39. Our most important supplier makes it difficult for the companys e-commerce business to do
its job.
40. Our most important supplier does not like many of the things the companys e-commerce
business does.
41. The products we get from the companys most important supplier can also be purchased by
end-users on the companys most important supplier's Web site.
42. Our most important supplier does not offer products to end-users on their Web site.
43. There is an overlap in products offered to end-users on the companys Web site and the
companys most important supplier's Web site.
Market:
44. Customers' preferences change frequently.
45. Our customers rarely request new products.
46. Customer needs are becoming more predictable.
47. Customer loyalty is decreasing.
48. On the Internet, the rate of firm failure is high in this retail category.
For the most recent annual fiscal period for your primary Web site:
49. Approximate revenue growth (%)
50. Approximate total online sales (in US $)
51. Percentage of Web site customers that were repeat purchasers (%)
52. Advertising dollars as a percentage of sales dedicated to e-commerce (%)
53. Percentage of sales generated from affiliate program (%)
54. Approximate advertising budget (in US $)
55. Percentage of sales generated from outside the headquarters' country (%)
56. Indicate the extent to which your company's Web site has achieved the following outcomes
relative to its original objectives for the most recent annual fiscal period.
a. objectives Met
b. objectives Well above
c. objectives Well below
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General inquiries into your e-commerce operations, focussed on your company's primary e-commerce
Web site.
63. Indicate when your company entered the online market, relative to the competition, in the
online retail category you specified at the beginning of the survey.
64. Indicate your current job title.
65. How many Web sites does your company currently operate?
66. How many of the Web sites you specified in question #1 are e-commerce sites (i.e., allow
online purchases)?
67. What is the main retail category that your Web site operates in?
Brick-and-Mortar Operations:
Regarding your brick-and-mortar operations (i.e., retail store(s) operating in the physical
marketplace):
70. Does your company operate one or more brick-and-mortar retail stores?
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79. How many marketing agreements does your company have with search engines and portals
for its primary e-commerce Web site?
a. 1-3
b. 4-9
c. 10-19
d. 20-49
e. 50 or more
f. Do not know
80. On average, how many unique visitors does the primary e-commerce Web site receive each
month?
81. Is your primary e-commerce Web site the result of a joint venture or partnership with another
company?
82. Is your primary e-commerce Web site maintained by an outside firm?
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5. Select the range that is closest to the approximate annual sales for your company, at this
location:
a. Less than 100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Don't know
6. What was your involvement is in the website development and maintenance process?
a. Determine need to purchase
b. Evaluate various products/vendors
c. Authorise/approve purchase
d. Determine where to purchase
e. Place orders
f. Other
8. Has your company purchased any of these service in the past 6 months:
a. We did not purchase
b. Developing a Website
c. Registering a domain name
d. Web Hosting Services
9. How much would you estimate your company spent in the past 6 months on the following web
related activities (at this location)?
a. Did not purchase
b. Don't Know
c. $1,500 to $5,000
d. $5,000 to $10,000
e. $10,000 to $25,000
f. $25,000 or more
g. For Developing a Website
h. For Web Hosting Services & Maintenance
10. Does your company plans to purchase this service in the next 6 months:
a. Developing a new Website
b. Registering a new domain name
c. Web Hosting Services
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12. How satisfied are you with the overall quality, look, feel, and functionality of your website?
a. Very satisfied
b. Somewhat satisfied
c. Neutral
d. Somewhat dissatisfied
e. Very dissatisfied
13. Which one of the following business sectors best describes your core business?
a. Communications/transportation/utilities
b. Banking/finance/insurance/real estate/legal
c. Retail
d. Value added information service provider
e. Government
f. Data processing/computer
g. Education
h. Business services
i. Other
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SECTION 2
Competitive Environment
7-Eleven
7-Eleven - Philippines
Competitive Environment
Leisure Goods
Luxury Goods
Food & Drink
Investments
Furnishings
Footwear
Durables
Clothing
Medical
% % % Home
% % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Disposable Income and Discretionary Spending (together with the consumers own assessment of future trends)
is measured during Consumer Surveys when consumers were asked specific psychometric questions which
tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social
/ income group, and full age spectrum, surveys.
Whereas in developed countries the Value Proposition of many brands have suffered in recent years
for a variety of reasons, in many developing country markets the Value Proposition of many branded
products have survived intact. Many consumer durables have seen their perceived worth diminished
during the last decade or so in North America and Europe. This is due to both the popularization of
the brands which make them less exclusive, and because they are perceived to be less costly to
manufacture and less durable. Some formerly high end brands have suffered for these reasons.
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There are psychological reasons which currently make developing country markets more durable
1
than, for example, the United Sates or the United Kingdom markets and that is the general neurotic
(and sometimes psychotic) psychology of fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led sections of the population to succumb to eating disorders (which has led to obesity)
and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight
people (over 50% of the adult female population in the United Sates and the United Kingdom are
over-weight) and clinical obesity (over 35% of the adult female population in the United Sates and
over 25% of the adult female population in the United Kingdom are clinical obese). This means that
these individuals find it increasingly difficult to interact and interface with fashion products and as a
consequence they do not perceive themselves to be capable of engaging with much of the fashion
industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.
1
The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-
There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries -
Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.
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Market Opportunity
Analysis of the development of the retail trade and its life cycle
The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
Analyse consumer buying behaviours
Evaluate consumer Shopping Experience criteria
Identify consumer channel preferences
Correlate consumer channel usage with purchasing criteria
Provide flexible and adaptable retail channel options
Observer changes in consumer buying behaviours
Adapt and respond to consumer buying behaviours
The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries:-
Price
Availability
Brand
Quality
Shopping experience
Store Personnel
Store appeal
Promotional actions
Et cetera
How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.
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Retail Franchising
Multi-Brand Retail
Owned Exclusive
Consumer Party
Social Network
Direct Selling to
National Brand
Telemarketing
Sales Tactics
Brand Stores
Independent
eCommerce
Distributors
Selling via
Licensing
Exclusive
Retailers
Stores
Plan
Markets AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Wholesale - Domestic
Wholesale - Foreign
owned & controlled
Retailer - Foreign
Retailers - Joint
controlled
controlled
Ventures
Ventures
Others
Markets % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Multiple-Channel Development
Developing a Multi-Channel approach to the consumer is often very effective and allows:-
Efficient access to each market segment
Increased market coverage
Lower channel cost
Opportunities for targeted and customised selling
More precise control of channels
The introduction of Complementary Channels, each of which targets different product or
consumer segments.
Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.
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2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
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Multi-channel Distribution
Non-Exclusive Distributor
retailers
Exclusive Distribution disadvantages:
Risk in reliance on an exclusive
distribution system
Mainly geared to big brand, high price,
high margin and low volume products
Trade Area #1
Trade Area #2
Intensive Distribution advantages include:-
Trade Area #3 Potentially increased retailer sales
Wider consumer recognition
Trade Area #4 Enhanced product exposure
Trade Area #5
Trade Area #6 Intensive Distribution disadvantages:-
Applicable to low price, low-margin
Trade Area #7 high street brands
Trade Area #8 Products require constant refreshing
and high stock turn
Trade Area #9 Difficulty controlling brand image
283
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Trade Area #1
284
More attention to the Marketing Mix
ERP methodology
Professional Management
The Trading Areas marked with an X indicate the need for the distribution strategies to be analysed in
Symbiotic marketing
7-Eleven - Philippines
Purchasing power
Independent Wholesalers
Independent Retailers
Regional Wholesalers
National Wholesalers
Regional Retailers
Agents & Jobbers
National Retailers
Mail Order
Catalogue
Online
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.
285
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Catalogue Brands
Discount Brands
Regional Brands
National Brands
Global Brands
Online Brands
Trade Area #1 Niche Brands
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
286
7-Eleven - Philippines
The future of the Retail Trade in shown in the market research data for Philippines and the various
markets covered.
The Research focuses on the Retailers in the Major Cities in the country (Philippines). A full list of the
cities and towns in the database can be found here:
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/RP.html
The overall Market Data covers each of the Philippines major towns and cities can be found here:
Market Data Major Towns
Detailed Market Data covers each of the Philippines major towns and cities can be found here:
Detailed Market Data Major Towns
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7-Eleven - Philippines
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
288
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Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1 Philippines
2 Southern Tagalog
3 National Capital Region
4 Manila
5 Central Luzon
6 Western Visayas
7 Central Visayas
8 Southern Mindanao
9 Bicol
10 Ilocos
11 Eastern Visayas
12 Western Mindanao
13 Cagayan Valley
14 Northern Mindanao
15 Muslim Mindanao
289
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Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_SURVEY_DEFI.htm
290
7-Eleven - Philippines
Industry Performance
Industry Performance
Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers
Trading Area Industry & Retailer Performance Surveys for the Trading Area
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
291
7-Eleven - Philippines
The overall Market Data covers each of the Philippines major towns and cities can be found here:
Market Data Major Towns
Detailed Market Data covers each of the Philippines major towns and cities can be found here:
Detailed Market Data Major Towns
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7-Eleven - Philippines
Consumer Attitudes
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
293
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Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1 Philippines
2 Southern Tagalog
3 National Capital Region
4 Manila
5 Central Luzon
6 Western Visayas
7 Central Visayas
8 Southern Mindanao
9 Bicol
10 Ilocos
11 Eastern Visayas
12 Western Mindanao
13 Cagayan Valley
14 Northern Mindanao
15 Muslim Mindanao
294
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Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
Consumer Surveys
Consumer Surveys
295
7-Eleven - Philippines
Industry Performance
Industry Performance
Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers
Trading Area Industry & Retailer Performance Surveys for the Trading Area
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
296
7-Eleven - Philippines
Competitive Factors
Retail Brands
The Survey results in this report cover the following Retail Brands in Philippines:-
Brand Research
% Market Share
Data Available
Selling Space
Competitive
Revenues
Stance
Stores
Type
SqM
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
LB = National Brand : RB = Regional Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands
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Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Retailers % % % % % % % % % % % % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
The Price Differentials shown here are Purchasing Power Parity weighted.
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7-Eleven - Philippines
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Product
Groups
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
The Price Differentials shown here are Purchasing Power Parity weighted.
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7-Eleven - Philippines
Product Groups
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
300
7-Eleven - Philippines
Product Pricing
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
301
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Product Quality
Premium
Basic Quality Median Quality High Quality
Quality
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
302
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Product Specifications
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
303
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No Target Specific
Some Targeting Highly Targeted
Audience Audience
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
304
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Product Volumes
Median Restricted
High Volume Low Volume
Volumes Volume
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
305
7-Eleven - Philippines
Product Utility
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
306
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Product Maintenance
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
307
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Product Merchandising
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
308
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Product Advertising
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
309
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
310
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Shopping
Brand name Product Design Advertising
experience
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
311
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Some
Me Too Different Unique
difference
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
315
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Communications Tactics
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
317
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Advertising Tactics
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
318
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Brochures &
Press releases Audio-Video Press Kits
print
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Not really
Very visible Visible Unspecified
visible
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
320
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Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
321
7-Eleven - Philippines
Merchandising
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
322
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Product Display
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Distribution
Brands differentiate themselves in terms of price, quality and design. For the purposes of the rest of
this section branded products will be categorised as:
High priced brands: These global brands are committed to luxury, style, and quality.
Middle range brands: These brands bring trends to the high street; they are design-led and
are sold at high street prices.
Low cost brands: Low cost brands offer contemporary designs and current trends at low
prices, especially distributed in department stores and supermarkets.
Retail Level
There are three types of retailers: Vertically-integrated Retailers; Independent Retailers; and
Department Stores.
Vertically-integrated retailers operate wholly-owned retail outlets and sell only the brands
selected by that company. Vertically-integrated retailers tend to have an international
presence. Many high range designer brands, middle range high street brands and low cost
brands are vertically integrated. They are located on main streets and in shopping centres; in
addition high range brands and middle range high street brands sell their ranges in
department stores.
Independent retailers sell a selection of brands and are independent of the brands they sell.
Independent retailers can take many forms. Their stores tend to sell middle range high street
brands, however some may sell high range designer brands. Independent retailers tend to
specialise in one type of product category, and generally provide their customers with more
choice and variety for those categories. Independent retailers may own and operate a chain
of stores under a common fascia and are typically known as branded resellers. Other
independent retailers may be small local boutiques. Independent stores are mainly located on
the main shopping street in towns and cities and in shopping centres.
Department stores are quite different. They sell a wide variety of products from clothing to
home-wares, and electrical appliances to cosmetics. In terms of branded products,
department stores tend to sell high range brands and/or middle range high street brands; low
cost brands are rarely sold in department stores. Department stores are generally located in
central locations in cities and large towns.
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concessionaires landlord and earns a rent or commission from the concession. Therefore,
the department store has less risk as it does not own the concessionaires stock, i.e., it is not
a reseller. However, a department stores commission is affected by fluctuations in sales. The
actual stock and the profit from sales, excluding the commission, belong to the concession,
i.e., the vertically-integrated brand.
Own-bought products are branded items purchased by the department store from the
manufacturer or its agent or distributor for resale. For own-bought products the department
store bears the risk. Own-bought retailing is therefore similar to the arrangement described for
independent stores, where a selection of brands is sold in the same store; the difference
being that independent stores typically specialise in one type of product category, whereas
department stores sell different types of product categories.
Although products may be retailed through department stores under different arrangements, it
is not obvious to the consumer which brands operate under each arrangement, i.e., whether
the brand is sold under a concession or own-bought arrangement, as their presentation is
seamless. The percentage of branded products that is own-bought versus concession varies
across department stores.
Brand Competition
At the retail level brand competition tends to differ by type of retailer. Vertically-integrated international
brands compete at a high level by promoting their branded product internationally.
Independent retailers and department stores compete through the range of brands and products they
stock in their stores, and by building store image. In order to get the brands they want into their store,
department stores further compete on the commission rate, location in store and merchandising.
Branded reseller chains, for example, sports retailers, also compete on store reputation through store
advertising and promotions etc. Department stores compete on store image by creating a shopping
experience and through promotional activity to attract footfall.
The past decade has seen a big increase in the number of brands available, especially in terms of the
location density of the global brands.
Value
Retailers within the same product categories compete on value, i.e., the combination of price, design
and quality. Retail competition tends to start with competition among different brands within the same
range, be it high range, middle range or low cost. Once a brand positions/markets itself within one of
the product categories, it competes mostly with other brands within the same range by pricing at a
level that reflects the quality, design and brand image that has been created.
In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a
retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are
increasingly also offering on-line shopping.
Low cost brands primarily compete on price by offering contemporary designs at low prices. The
ultimate goal of these brands is to set their prices low. Consumers are looking for value for money
when purchasing these brands.
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Location
Location is of critical importance in retail. In most countries, despite the growing number of out of town
shopping centres, the main street is still a major draw for retailers. Thus, there is demand and
competition among all retailers for prime main street locations.
Vertically-integrated international brands sold throughout the world and the outlets of these brands
are similar in design and layout. Independent retailers and department stores can differ somewhat in
different areas.
Although the international brands enjoy economies of scale, local conditions in each country are often
quite different, and local retailers can often profit by being more orientated to local markets. Retailers
operating in some countries tend to have larger selling areas and therefore can offer a broader
product range.
Supply Chain
The supply chain and, in particular, distribution for each type of retailer and supplier, tends to vary.
Vertically-integrated branded companies supply products internally to retailers, while other brand
companies supply products through wholly-owned wholesalers, agencies or third party distributors.
Products are typically designed by the brands themselves and manufactured mostly in the Far East,
and sometimes in Europe or South America. In certain instances, the manufacturer is owned and
operated by the brand and in other instances it is outsourced by the brand. Some brands use buying
teams or groups to source their products around the world and are not aligned to, or contracted, with
any manufacturer; they may also have different buying teams for different markets. Occasionally,
brands outsource part of their manufacturing operations to distributors.
Vertically-integrated branded retailers and concessions in department stores source their product
from their parent company. Vertically integrated brands internalise the supply, wholesale and retail
aspects of their supply chains. The retailers and wholesalers are part of the branded company and
operate under the instruction of the parent company. The brand supplies its products to its stores and
concessions in department stores. There is no intermediary or third party involved in the supply chain.
Own-bought product suppliers to independent stores and department stores, use wholly-owned
distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes
ultimately depends on how the branded company wishes to operate its distribution and the benefits or
service each distribution type can offer.
Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.
Some brands have two separate wholly-owned wholesalers for each Trading Area; others have one
wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has
a country representative, an employee of the brand, to manage the supply. Most wholly-owned
wholesalers use selective distribution arrangements, i.e., supply to a number of different independent
stores and department stores. For example, a wholly-owned wholesaler may supply that brands retail
chain plus to other distribution chains. In the case of some brands, there may be an exclusive
distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the
product in the country.
Some brands distribute through independent agents. The agent places the order to the brand on
behalf of the retailer and receives a commission in return for placing the order. The agent does not
buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may
negotiate terms and prices either with the agent or the branded supplier; at what level the retailer
negotiates terms varies depending on retailer size. Most agents distribute more than one brand.
Branded companies and retailers tend to prefer not to deal with a middle man, therefore, these types
of agency agreements are rarely found in the market.
Some brands distribute their product through third party distributors. Third party distributors buy
products from the brand and resell it to retailers in the country, i.e., they are the customers of the
brand and have an account with them. Therefore, third party distributors take on a business risk. For
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example, Distribution downstream to the retail level can be either an exclusive or selective
arrangement. However, given the preference of not dealing with a middle man distributors are rarely
found in the market. Most of the brands sold through third party distributors are lesser known brands.
Nature of Competition
Ultimately suppliers compete for consumer demand by building brand awareness and through
interactions with retailers. However, some suppliers compete mostly at the brand level. Brand
competition is a critical feature of competition at supply level. Brands compete by establishing a brand
that reflects the image and category in which they wish to operate; high range, middle range or low
cost. They will also price their product in a way that reflects the category and brand image they have
created. Where they sell through independent retailers and department stores, they generally choose
retailers whose own image is aligned to that of the brands image.
High range brands compete with each other by establishing a desirable brand through
expensive image building mechanisms.
Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.)
compete on price.
Suppliers also compete in their interactions with retailers, in terms of space, commission, and
location in the store. For example, concessions in department stores will compete for the best
location in the store, i.e., where there is the most footfall. Suppliers also compete to have their
products sold in the signature stores in a city.
There are some supplier price differentials in each county and these are usually in the range 1-10%.
This suggests that, despite the rising cost of doing business, the level of competition in most countries
(as well as the expansion in the volumes sold) kept prices from rising relative to other countries
except when the exchange rates changed significantly.
The 2008 recession and the depreciation of some currencies, coupled together, have significantly
impacted upon the retail business. Retail sales declined in many countries. Increasing numbers of
retail chains have gone into administration in some areas, due largely to the global economic crisis.
The effect of the price gap between some countries has been that footfall and same brand sales in
some countries have reduced significantly due to consumers changing their behaviour, where the
effect is not so significant in other countries.
Consumers shopping behaviour has changed in a number of ways: Consumers are reducing the
volume of purchases they are making. Consumers are increasingly buying from discount suppliers.
Consumers are switching. Low cost branded stores do not appear to have been as negatively
affected as other stores; what they have lost in terms of consumers reducing purchases overall, they
have gained from consumers switching from mid-range to their low price/high value stores. In
addition, Retailers contend that consumers are switching to retailers that source their product in
currencies less impacted by the exchange rate.
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Retailer Reaction
The exchange rate fluctuations and the global recession have occurred simultaneously and it is
therefore not clear how much of the decline in sales is attributable to the recession and how much to
the exchange rates.
In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of
product. They have reduced the cost of doing business by reducing opening hours, working hours and
pay.
With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch
supply by switching brands, or by-pass the current branded supplier and source product from an
alternative supplier.
The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their
suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,
requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality
of retailing and limited buyer power of stores in some countries.
Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the
coming year. Thus retailers decide on their stock and volume of purchases between six months to a
year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order
to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these
agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.
Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this
may be done a number of months in advance, by the time product appears on the shelf, exchange
rates may have changed. This effect should diminish as retailers purchase the next round of stock
which will be based on more recent exchange rates.
The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,
i.e., the extent of its buyer power. National retailers are often small in international terms.
Switching brands may not be a possible option if the brand is a must have brand for the retailer, for
example, consumers expect all sports stores to have certain international sports brands. It will
negatively affect the retailers image if it does not have the must have brands for certain categories of
products.
Retailers, independent stores and department stores contend that sourcing product by by-passing the
current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is
difficult. They state that the head office or equivalent regional distributor will direct the retailer back to
the designated national distributor. Most international brands use wholly-owned wholesalers, thus the
alternative source of supply is simply a different arm of the same company. In some cases retailers
have been successful in renegotiating the currency in which they pay, but in most cases this has been
refused.
Retailers attempts to get better prices following currency depreciation may be more difficult in some
countries. Some retailers that operate in several countries may be able to benefit from sourcing
product for their stores in one country through their supply chain in another country. Thus, any
potential benefits arising from the changes in one currency may be spread across that retailer outlets.
For department stores and independent retailers, alternative sources of supply, such as the grey
market, may be an option. However, products from the grey market are seldom the latest design and
may be limited in the range and options it comes in. It also has limitations in terms of consistency of
supply, and thus may not be an adequate option.
The individual stores of vertically-integrated middle range retailers do not have any alternative option
to source product, as they must source their product internally. Prices in these stores are not set by
the retailer but the head office of the brand and therefore they are constrained by the controlled
supply channel in which they operate. These vertically-integrated brands are large international
brands that operate on a large scale. Any national market is likely represents only a small portion of
their overall business.
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Some low cost retailers are not experiencing as much difficulty in switching sources of supply as
independent stores or department stores. This is due to the fact that they tend to be vertically-
integrated and are not aligned with any one supplier but instead they source manufactured product
from the Far East based on the best price, design, quality and range. These low cost retailers market
themselves on price.
Despite the constraints faced by some retailers, they are reacting by re-pricing products, increasing
sales/discounts and promotions, and trying to source new products that have more attractive price
and quality characteristics.
Supplier Reaction
Suppliers responses to increased pressures from retailers to reduce prices will depend on their ability
and willingness to reduce prices.
Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their
ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream
supplier. Brands source product directly from their own, or contracted, manufacturers. This is often
done in the Far East or other countries and therefore they operate in a number of currencies. Supplier
costs are therefore largely in various exchange rate susceptible currencies. In reality, national
suppliers may have a small portion of costs in their own currency and may not be able to pass on the
current expectation that exists in the market.
In addition, brand companies tend to be vertically integrated upstream through contracted
manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight
distribution arrangement, the seasonality, and likely hedging aspects of suppliers operation, the
extent to which they can quickly react to changes in currency fluctuations will be limited.
Overall, suppliers are being negatively affected by falling sales and the depreciation of operating
currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated
that the currency depreciation warranted a price increase in their country but that branded companies
would find it difficult to increase prices in that country because of recessionary pressures.
The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to
operate across a number of countries.
Conclusion
Differences in price level between different national markets have to some extent always been
present, and changes in the differences in price level arise, amongst other reasons, due to currency
movements. Since 2008 branded goods prices in one country have fluctuated in comparison with
other countries. The effect of the pricing changes is driving consumers to change their shopping
behaviour to the detriment of the majority of retailers. Low cost retailers however have not been as
negatively affected; what they may have lost in terms of reduction in consumer spending they have
gained from price conscious consumers switching to them. Among other things, retailers have
responded by increasing sales/discounts and promotions, and in some instances re-ticketing items to
bring down in price.
However, the extent of the response of retailers is limited by the extent to which they can reduce their
costs of doing business, for example, reducing opening hours, and their cost of product. The ability to
reduce cost of product is constrained by three elements; the seasonality of the market, limited buyer
power and the ability to switch sources of supply.
Stocks and prices are determined six to 12 months before they appear in store. In most countries
retailers are relatively small internationally.
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Low cost retailers can easily switch sources of supply, though with a time lag. They are not aligned
with any particular manufacturer and source product based on a mixture of quality and low price. If
they are not happy with supply they will source it from elsewhere.
At the other end, vertically-integrated retailers operating in some overseas countries cannot switch
supply and are constrained by the parent companys distribution arrangements. The stock available to
these stores is purchased centrally; their ability to switch will depend on how quickly they can
renegotiate price with their manufacturer or find another source of supply elsewhere.
Retailers who resell a range of brands (independent retailers and department stores) also have
limited ability to switch supply and find identical product elsewhere. They have long term relationships
with brands which they need to maintain. They are thus seeking price reductions from suppliers.
The extent to which these retailers can negotiate lower prices is dependent on their buyer power.
Department stores and branded resellers may be able to source supply in favourable currencies
through their international operations. In some instances locally-operated retailers have been able to
switch to paying in a different currency but in the main they have not. Thus locally operated retailers
may be temporarily disadvantaged compared to international retailers.
The instability of the exchange rates has had a significant impact on retailing in many countries.
International brands which manufacture outside the country will likely adjust their forthcoming
seasons prices in line with the currency fluctuations.
Brands differentiate themselves in terms of price, quality and design. The products are generally
manufactured in lower cost areas. The depreciation in the value of some currencies and the recession
have led to a fall off in demand for branded products generally, though low cost retailers appear to be
benefiting from consumers switching to them from more expensive brands.
Retailers have responded by increasing sales/discounts and promotions, and in some instances by
re-ticketing items to bring down the price. The extent to which retailers may reduce prices is
dependent upon the extent to which they can reduce their costs.
Their ability to reduce the amount they pay for the products they sell is constrained by three elements;
the seasonality of the market, limited buyer power and the ability to switch sources of supply.
Seasonality in the Market: The prices paid by retailers to suppliers were set six to twelve
months ago and renegotiating those prices is difficult, though retailers have indicated that
they have had some limited success.
Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent
on their buyer power. Stores that have access to stock through related overseas stores have
slightly more scope to access products at lower prices. In some instances retailers have been
able to switch to paying in other currencies but in the main they have not.
Switching Sources of Supply: The ease with which retailers may switch to alternative better-
value sources of supply depends upon the type of product that they retail. Low cost retailers
can most easily switch sources of supply, though with a time lag (due to seasonality). Such
retailers are not so aligned with any particular manufacturer. The supply chains of the mid-
range retailers who operate wholly-owned retail outlets and sell a single product brand are far
less flexible. These retailers tend to have an international presence; purchasing and
distribution arrangements for the outlets in any particular country are typically determined
centrally. Retailers who resell a range of brands (e.g. supermarkets and department stores)
also have limited ability to switch sources of supply. Such retailers argue that they have long-
term relationships with branded product suppliers which they need to maintain. Alternative
sources for a particular brand cannot be relied on to come in the full range of products or to
be from the current season. A notable feature of retailing is the apparent low level of
alternatives for many retailers. With the exception of low cost products, competition is largely
about branding and image, within a particular price/quality range. Thus, it is difficult for stores
with on-going relationships with brands to switch to alternative brands. As the seasons roll on
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and the seasonal pattern of sales continues, all brands have the opportunity to set national
prices in a way that reflects more recent exchange rates.
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Distributor Distributor
Distributor Distributor
Domestic Direct
Joint Ventures other
owned investment
Market % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Retail
Retail Joint Retail Direct
Domestic Retail other
venture investment
owned
Market % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
333
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Trade Area #1
Domestic No
%
Distribution control
%
control
%
of loss of investment
334
start-up costs
Distribution Channel: Advantages Disadvantages
term risk
Domestic no direct
%
investment
up costs
Direct investment
%
start-up costs
Knowledge
7-Eleven - Philippines
Domestic Distributors -
Domestic Distributors -
Domestic Distributors
Direct Retail
Franchisees
Unspecified
Investment
Exclusive
% % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
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Domestic Distributors -
Domestic Distributors -
Domestic Distributors
Direct Retail
Franchisees
Unspecified
Investment
Exclusive
% % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
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Competitiveness
Vulnerabilities
Opportunities
Survivability
Dynamism
% % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Start-up Costs
There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Indepe
ndent Store launch (probably carrying Branded product lines) and the use of a Distributor or Exclusive
Wholesaler to introduce a new Brand to the country concerned.
A Cost comparison given for 1, 3, 5, and 10 stores on the grounds that there may be some cost a
dvantages associated with the economies of scale of opening multiple outlets.
Inventory Costs
The Start-up costs data excludes the initial Inventory investment. This is because there are a large
number of ways in which Franchised Brands, Independent Retailers, In-Store Departments and sales
via Distributors are financed.
Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.
Similarly there are inventory financing deals available for In-Store Departments.
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IT Equipment &
Rental Month 1
Cash-in-Hand
selling space
Store fitting
Marketing
Supplies
Services
cost (000)
up Cost
System
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Total Independent
Utilities & Deposit
Property Deposit
100 SqM
IT Equipment &
Rental Month 1
Cash-in-Hand
selling space
Store fitting
Marketing
Supplies
Services
cost (000)
System
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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IT Equipment &
Rental Month 1
Cash-in-Hand
Start-up Cost
selling space
Store fitting
Marketing
Supplies
Services
cost (000)
Deposit
System
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Distributor / Exclusive
Support Equipment &
Business Expenses
Wholesaler Sign-up
Marketing Support
Public Relations
Miscellaneous
Cost (000)
IT Services
Supplies
Banking
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Premises Acquisition
Systems Installation
Initial Contractual
Launch Delay
Negotiations
Store fitting
Regulatory
Total Time
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Premises Acquisition
Systems Installation
Initial Contractual
Launch Delay
Negotiations
Store fitting
Regulatory
Total Time
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Systems Installation
Marketing Support
Initial Contractual
Requirements
Launch Delay
Negotiations
Regulatory
Total Time
Financial
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
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Single Store
Single Store
10 Outlets
10 Outlets
10 Outlets
Per outlet
3 Outlets
5 Outlets
3 Outlets
5 Outlets
3 Outlets
5 Outlets
000
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
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The DataGroup Toolkits contains the following spreadsheets to enable users to produce:-
Start-up financial data is shown above and this forms both the Fixed Capital and Working Capital for
the start-up.
The format of this balance sheet is based on U.S. accounting standards.
See: http://www.dg-di.eu/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm
http://www.dg-di.eu/BASE_FOLDERS/xls/CASH_FLOW.xls
CASH FLOW FORECAST
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Fr = Forecast : Ac = Actual Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac
'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000
1 Revenues 0
2 Orders 0
3 TOTAL SALES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
RECEIPTS
4 Sales receipts
5 Sales debtors
6 Loans / Grants received
7 Miscellaneous income
8 CASH ACCOUNT TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Capital
10 Asset & other disposals
11 TOTAL RECEIPTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
PAYMENTS
12 Finished Materials Cost
13 Fuel Cost
14 Electricity Cost
Total Input Materials + Energy
15 Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Payroll Costs
17 Wages
18 Directors' Remunerations
19 Employee Benefits
20 Employee Commissions
Total Employees
21 Remunerations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
40 Cash in Bank 0
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http://www.dg-di.eu/BASE_FOLDERS/xls/PROFIT_LOSS.xls
PROFIT & LOSS ACCOUNT
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12 Year 1 Year 2 Year 3
'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000
1 Domestic Revenues 0
2 Overseas Revenues 0
3 Total Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
57 Operating Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
58 Depreciation: Structures 0
59 Depreciation: Plant and Equipment 0
60 Depreciation: Miscellaneous Items 0
61 Total Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
62 Trading Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
63 Interest Paid
64 Non-trading Income
65 Pre-tax Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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7-Eleven - Philippines
http://www.dg-di.eu/BASE_FOLDERS/xls/BALANCE_SHEET.xls
BALANCE SHEET
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
'000 '000 '000 '000 '000 '000 '000
1 Fixed Assets: Structures
2 Fixed Assets: Plant and Equipment
3 Fixed Assets: Miscellaneous Items
4 Fixed Assets 0 0 0 0 0 0 0
5 Capital Expenditure on Structures
6 Capital Expenditure on Plant and Equipment
7 Capital Expenditure on Vehicles
8 Cap. Expend. on Data Processing Equipment
9 Capital Expenditure on Miscellaneous Items
10 Total Capital Expenditure 0 0 0 0 0 0 0
11 Retirements: Structures
12 Retirements: Plant and Equipment
13 Retirements: Miscellaneous Items
14 Total Retirements 0 0 0 0 0 0 0
15 Total Fixed Assets 0 0 0 0 0 0 0
16 Finished Product Stocks
17 Work in Progress as Stocks
18 Materials as Stocks
19 Total Stocks / Inventory 0 0 0 0 0 0 0
20 Debtors
21 Miscellaneous Current Assets
22 Total Current Assets 0 0 0 0 0 0 0
23 Total Assets 0 0 0 0 0 0 0
24 Creditors
25 Short Term Loans
26 Miscellaneous Current Liabilities
27 Total Current Liabilities 0 0 0 0 0 0 0
28 Net Assets / Capital Employed 0 0 0 0 0 0 0
29 Long Term Loans
30 Miscellaneous Long Term Liabilities
31 Shareholders Funds 0 0 0 0 0 0 0
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http://www.dg-di.eu/BASE_FOLDERS/xls/Project_Financial_Analysis.xls
Project Financial Analysis
INPUT SHEET: USER ENTERS ALL BOLD NUMBERS
Deprec. method(1:St.line;2:DDB)= 2 If you do not have the breakdown of fixed and variable c. Market risk premium = 5.50%
Tax Credit (if any )= 10% expenses, input the entire expense as a % of revenues. d. Debt Ratio = 30.00%
Other invest.(non-depreciable)= 0 e. Cost of Borrowing = 9.00%
Discount rate used= 10.69%
WORKING CAPITAL
Initial Investment in Work. Cap= $15,000
GROWTH RATES
1 2 3 4 5 6 7 8 9 10
Revenues Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Fixed Expenses Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0 1 2 3 4 5 6 7 8 9 10
INITIAL INVESTMENT
Investment $150,000
- Tax Credit $15,000
Net Investment $135,000
+ Working Cap $15,000
+ Opp. Cost $7,484
+ Other invest. $0
Initial Investment $157,484
RESIDUAL VALUE
Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $100,000
Working Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,846
OPERATING CASHFLOWS
Lifetime Index 1 1 1 1 1 1 1 1 1 1
Revenues $240,000 $264,000 $290,400 $319,440 $351,384 $351,384 $351,384 $351,384 $351,384 $351,384
-Var. Expenses $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692
- Fixed Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EBITDA $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692
- Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0
EBIT $90,000 $132,000 $149,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692
-Tax $36,000 $52,800 $59,680 $63,888 $70,277 $70,277 $70,277 $70,277 $70,277 $70,277
EBIT(1-t) $54,000 $79,200 $89,520 $95,832 $105,415 $105,415 $105,415 $105,415 $105,415 $105,415
+ Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0
- Work. Cap $45,000 $51,000 ($38,400) $7,260 $7,986 $0 $0 $0 $0 $0
NATCF ($157,484) $39,000 $28,200 $123,920 $88,572 $97,429 $105,415 $105,415 $105,415 $105,415 $105,415
Discount Factor 1 1.10685 1.225116923 1.356020666 1.500911474 1.661283865 1.838792046 2.035266976 2.252735252 2.493440014 2.759864079
Discounted CF ($157,484) $35,235 $23,018 $91,385 $59,012 $58,647 $57,329 $51,794 $46,794 $42,277 $106,259
Investment Measures
NPV = $414,267
IRR = 42.43%
ROC = 75.60%
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SWOT Analysis
Opportunities Threats
Opportunities Threats
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Opportunities Threats
Opportunities Threats
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Opportunities Threats
Ability to reach smaller and more remote retailers Competitors business policies
Potential to achieve better market penetration Possible loss of Brand Equity
Ability to use Distributors local expertise Potential fragility of Distributor
Opportunities Threats
Ability to reach smaller and more remote retailers Competitors business policies
Potential to achieve better geographic coverage Loss of Brand Equity
Ability to use Distributors local knowledge Potential fragility of Distributors
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Competitive Analysis
Retail Brands
Marketing activities
Customer service
Expansion plans
Pricing structure
Brand strengths
Product criteria
Product design
Product Lines
Brand quality
Locations
Sales
Retailers % % % % % % % % % % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Relative difficulty
Markets % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
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Brand Concept
A brand is defined as: A name, term, sign, symbol, or design, or combination of them, intended to
identify the goods and services of one seller or group sellers and to differentiate them from those of
competitors.
Branding thus is a means to distinguish one product from another and these differences may be
functional, rational, or tangible and fundamentally related to product performance of the brand.
In the developing countries a Brand is frequently no more than a European sounding name on a
copy of some European design. This use of facsimiles by developing country producers has shown
the limitations of their business models.
It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be generic
or standard products which simply bear the label or identification of a supermarket or some other
retailer. In general labels do not have the same status as brands in the mind of consumers, albeit the
quality and designs may have little differentiation; however consumers expect labels to have lower
price as than brands.
Brand Equity
Brand equity is intangible added value endowed to products and services. This value may be
reflected in how consumers think, feel, and act with respect to the brand, as well as the prices and
price premiums demanded by a brand, market share, and ultimately the profitability that the brand
commands for the firm. Brand equity is an important intangible asset that has image and financial
value to the firm. In the regional markets there is no extended history of brand image creation and it is
for this reason that developing country companies have to be particularly attentive to the
enhancement the brand equity of their products.
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Brand Knowledge
Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, that
becomes associated with the brand. In particular, brands must create strong, favourable, and unique
brand associations with the target customer base. Brand knowledge is low in many developing
country markets and this presents opportunities to new brands entering those markets.
% Social Group
% Age Group Awareness
Awareness
AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+
Market % % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand knowledge and awareness is assessed during Consumer Surveys when consumers were
asked specific questions to test the strength of their awareness of named brands. The data above is
derived from statistically accurate social / income group, and full age spectrum, surveys.
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Brand Equity can be seen as a group of five categories of the assets and liabilities of a brand that add
to or subtract from the value provided by a product or service to a firm and/or to that firms customers.
In the regional markets consumer in many markets are relatively unfamiliar with these brand assets
and therefore marketing strategies can be employed by companies to enforce these assets in the
mind of consumers.
In the regional markets insufficient attention has been paid to these issues and this has generally led
to the lack of global competitiveness of regional brands.
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Market % % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for the
brands they purchased and then specifically if they would purchase the same brand(s) again. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
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Market % % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were asked
specifically if they believed that the brands they purchased were of a better product quality than other
or cheaper brands and if in general they believed that expensive brands were of a better product
quality. The data above is derived from statistically accurate social / income group, and full age
spectrum, surveys.
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Brand
Brand Image Attributes Product
Associations
Related
Favourable
Benefits
Associations
Strength of
Attitudes
Associations
Uniqueness
of
Associations
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Brand Resonance
The brand resonance model also views brand building as an ascending, sequential series from
bottom to top.
Brand resonance refers to the nature of the relationship that customers have with the brand and the
extent to which customers feel that they are in sync or empathetic with the brand.
Producers in the regional markets have to decide with which brand concept they wish to align. They
can seek to produce a Global brand or they can seek to produce a Market Segmented brand. What
corporate history has suggested is that companies wishing to engage both concepts often fall
between both stools.
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It is necessary to assess the strength as well as understand the nature of the brands equity, relative
to competitive brands, and to monitor that over time.
Assessing the strength of brand equity can be done by finding Brand Awareness, Salience, Brand
Preference and Brand Users.
Attracted to Global
Attracted to Local
Performance
Acceptance
Judgments
Salience
Feelings
Imagery
Brands
Brands
Styling
Style
Market % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Brand Resonance is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
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Brand Awareness according reflects the extent to which people can either remember or
recognize a brand. When people think about brands in a product category, those come to
mind represent recall brand awareness; they are recalled based only upon a category cue. If
someone is shown a list of brand names or pictures of packages, those that can be identified
represents recognition brand awareness.
Brand Salience depends upon awareness, but reflects the relative strength of that awareness
in relation to the target markets awareness of other brands in the category. This relationship
will be reflected in the relative relationship between what is known as top -of- mind
awareness and all the other brands in the category of which someone is aware.
Brand Preference, like brand salience, can be an indicator of the strength of brand equity.
Brands that are preferred are likely to enjoy greater equity than those that are not. Preference
for a niche brand may be high in its market segment, but relatively low in the global market as
a whole.
The market for branded products in developed countries is a highly competitive market whose main
characteristics is the similar positioning of a large number of competitive brands and, in this respect,
the brands image developed by marketing communications can influence the adoption process of the
products. In the regional markets, especially in the less developed countries, there is not the same
level of competition and this represents an opportunity for new brand entries.
The marketing stimuli used to influence the purchase decisions, must transmit a coherent message in
all advertising and communication activities. The co-ordination of this process must consider such
aspects as the brand awareness and the brand image, as determined by the nature of the consumers
perception.
The image is a mental representation of the brand and the products attributes and benefits. It is a
multi-dimensional phenomenon that depends on the consumers perception of those attributes and
benefits. In branded products, both mental representation and its perception are built in a continuous
way, and developed through the image of fashion transmitted by each seasonal collection and by all
activities of marketing communication.
The overall effect of product branding depends on the integration of all the components of the
marketing communication plan, including visual merchandizing, with the product design. All these
three elements have an impact over the product adoption process and a similar final goal: to influence
the purchase option of branded products through the satisfaction of a certain product image demand.
Whereas the European and US fashion retailers have very long experience of these issues, the new
regional brands have a very steep learning curve.
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Brand managers need to develop systems to regularly reinforce the brands image in relation to the
overall brand identity and consumer awareness of the importance criteria for that product brand.
Brand management is less of a developed art in the regional markets than it is in the US or Europe.
The brand may benefit from an enhanced reputation and closer proximity to its buyers if the design of
each collection takes into consideration the following aspects:
In order to keep or develop the value of the symbolic message of the brand, the brands
image management should be focused on a small number of distinct styles;
The consumer buys or uses branded products of different types and styles;
An effective brand image developed through constant re-designs, allows the brand to achieve
image coherence and to capitalize on it in the market by building a global presence.
The adoption process of product brands reflects the significant impact of the popular and
cultural image that a brand transmits as well as its inherent identification potential (social,
cultural and economic).
Recognizing this, consumers search for brands that approximates with their own aspirations, needs
and wants; rather than that of the stereotypical people who may have appeared in advertisements
and the media. This is especially the case in markets which have traditionally been less exposed to
global culture. Whereas the upper middle classes in the developing countries are increasingly
exposed to global stereotypes, nonetheless the traditional aspects of these markets frequently
outweigh the global imagery.
The store image development is established through its geographical location, the retail space which
it occupies and its external design. In addition it is defined by the products that it offers and their
representation in the internal space of the store. The combination of these factors defines the store
atmosphere, or look, or personality. This should at all times conform to, and confirm, the target
customer bases expectations of the store.
In many developing countries the store locations and the store space represents a major contributing
factor to mitigate the relatively high cost of global brands. The consumer is not only buying the brand,
but is also buying into the shopping experience in a way that is more profound than experienced in
Europe or the USA.
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2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Consumer confidence is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
Consumer Confidence
Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; the
definitive gauge of consumer sentiment around economic and social concerns across countries.
After periods of speculation and uncertainty around the economic conditions, at some stage
consumers reach a state of resignation to the economic realities and the majority will then usually
adopt rational spending levels for various product groups.
Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt to
make sense of media coverage of economic circumstances, the propaganda of their political masters,
and their own empirical experience of the situation.
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In terms of the consumption of consumer products, the net effect is the changes in the propensity for
consumers to save rather than spend.
In the regional markets, as in the rest of the world, consumer confidence has fallen to its lowest level
in many years. The regional markets, and more particularly China and India are not forecast to
survive the current economic recession any better than the USA or Europe.
Over 50% of global consumers state they put their spare cash into savings; this is an increase of over
6% since 2010, and up 12% since 2008. The worlds most determined savers have always been in
the Asia-Pacific region, where an average of 61% of consumers chooses to save rather than spend.
Holidays and vacations continue to be a popular choice; with 26% of developing consumers planning
to spend on their annual holidays, by contrast 24% of consumers currently choose to buy new clothes
on a regular basis.
Consumer markets in developing countries have changed rapidly, and with strong growth in
disposable incomes, plus the development of modern urban lifestyles, developing country consumers
are becoming increasingly sophisticated and knowledgeable about branded products. Advertising and
the media allow companies to communicate with consumers in many different ways and therefore
brand propositions are now a part of daily life.
Foreign brands remain relatively powerful in the regional markets, especially in clothing and personal
care products; but increasingly brands have to be associated with value and suggest a clear and
evident Value Proposition. Developing country consumers are turning as suspicious and
discriminating as their US and European counterparts; and indeed the learning curve and product
awareness amongst developing country consumers is evolving much more rapidly than it did with US
and European consumers in the past.
Developing country markets are difficult to forecast because of the variability of the numbers of people
living in reduced financial circumstances and the more rural aspects of population distribution.
Literacy rates are variable in many developing country countries. Income is frequently less well
distributed across the whole population than in other regions. The market also tend to be highly
regional for geographic or infrastructure reasons. A mosaic of cultures and languages in some
countries contribute to the difficulties of companies seeking to establish homogeneous brand images.
Understanding buying pattern of consumers in the regional markets is a challenging endeavour. The
developing country consumers lifestyle and profile is evolving rapidly for a number of fundamental
reasons:
1. Population Age Distribution, especially the population below the age of 25.
2. The rise in the self-employed and financially self-sustaining segments of the working
population.
3. The rise of the AB, C1 and C2 segments of the social groups.
4. Levels of discretionary spending amongst the urban middle classes.
5. The increase in the number of higher income households.
6. The increased consumption of technology and convenience products.
7. The rise in the use of credit and payment cards and other financial instruments.
8. The availability and cost of credit.
9. The increasing shift from price consideration to design and quality.
10. The adoption of aesthetic values and awareness of the projection of a personal image.
11. The increasingly critical evaluation of the Value Proposition of products and the Price Value
Functionality considerations which are in the minds of consumers.
12. The acceptance of enjoyment of luxury items and an increased willingness to experiment with
branded products.
13. The acceptable of product obsolescence and the dictates of what is, and what is not,
perceived as being fashionable.
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By contrast there are factors which tend to differentiate, and often limit, many developing markets:
1. The relatively high portion of disposable income spent on Food and Housing.
2. The relative pricing of branded products.
3. The effectiveness and physical distribution of retailers, especially in large countries with
limited infrastructure.
4. The pressure on the gross margins and therefore the profitability of the entire supply and
distribution chain.
5. The difficulty for large scale retail operations and multiples to realise a good level of
profitability.
6. The national shopping habits of consumers which sometime inhibit the impulse buying of
products.
7. The influence of family and cultural imperatives on the younger consumer age groups whom
tend to represent the major segment of the brand market.
8. Consumer attitudes and influences when shopping as a family group as opposed to shopping
individually or with peer group.
In most developing markets there are certain events, attitudes and preferences which impact on the
purchase of branded products.
3. Special event purchases. The purchase of products for cultural, family and special events is
more important in certain markets.
4. The relative trust in local brands. There is a substantial degree of trust and confidence in local
brands.
5. The relative perception that foreign brands are of a higher quality than local brands is largely
age based. After the age of 24 this perception of the superiority of foreign brands rapidly
diminishes.
6. The relative effect of socio-economic groups and educational levels on brand perceptions.
7. The relative average spending during shopping trips. Younger demographics spend more per
trip than older demographics.
8. The relative average frequency of shopping trips. Younger demographics shop more
frequently than older demographics. Up to 24 years of age the shopping frequency is likely to
be once every 4 weeks, whereas this reduces after 25 years to once every 6 weeks, and
reduces further as age increases.
9. The age group of consumers. Whereas the younger demographics believe that local brands
can compete effectively with foreign brands they nonetheless feel that foreign brands offer
other benefits.
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Special occasion
Special occasion
Social & Family
Everyday
Work
Work
Market % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Usage & Purpose of purchases is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.
11. Perception of Designer v- Standard / High Street Brands. In developing markets there are
growing perceptions that Designer Brands do not offer any particular quality benefit over
Standard / High Street Brands.
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13. In urban areas, amongst the middle classes, 40% of consumers were aware of brands from
newspapers, 25% of consumers were aware of brands from magazines, and 23% of
consumers were aware of brands from Television and Films.
Celebrity endorsements in certain countries are usually limited to local brands or certain types
of international brands, namely, sportswear, denim, and youth casual wear.
Celebrity endorsement
Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessed
during Consumer Surveys when consumers were asked specific psychometric questions
which tested and cross-checked the issues mentioned here. The data above is derived from
statistically accurate social / income group, and full age spectrum, surveys.
Celebrity Celebrity
Endorsements Endorsements
irrelevant important
Market % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Celebrity endorsements were assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.
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International Brands
Quality & Design
Planned Buying
Impulse Buying
Local Brands
Convenience
Brand name
Value
Price
Market % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were asked
specific psychometric questions which tested and cross-checked the issues mentioned here. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
Brand Selection
Consumers who purchase products from Exclusive brand outlets tend to visit the store specifically
because they are attracted to that brand, not for reasons of brand comparison.
In multi-brand outlets the majority of women select and purchase a particular brand because of the
shopping experience. Overall preference for one brand over another is based on the shopping
experience generated by the chosen brand.
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When shopping, price is the main consideration for young buyers and this extends to other
generations. Young buyers are not as brand loyal as their parents, with generally less than 50%
indicating brand loyalty as a major factor. There is an opportunity for more in-store marketing and
promotions as 25-40% of young buyers indicating that in-store promotions do drive purchases. In
addition a significant percentage of younger buyers are influenced by store merchandising and
displays.
Store Merchandising
In Store Promotions
Product Packaging
Advertising offers
Press Advertising
Promotional Staff
Brand Loyalty
Loyalty Card
Presents
Price
Market % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Purchase Drivers are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
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Domestic Brands
Markets % % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Brand Perceptions are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
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Customer Service
Atmosphere
Promotions
Location
Design
Other
Price
Markets % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Branded products are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
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Customer Service
Atmosphere
Promotions
Location
Design
Other
Price
Markets % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
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There is little that any regional brands can do to counter the European and US brands. The reasons
for this the brand equity of the established brands and the fact that these brands are so entrenched in
the global market that it would be both expensive and ultimately counter-productive for any newcomer
to attempt to overturn the apple cart.
To counter the global brands a newcomer will have to succeed in each of the following areas:-
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The global players have spent decades working on these areas, and many of the global players have
had only marginal success. The marginality of their success is measured in their Return on
Investment, which has been only moderate in the past, and had indeed shown decline since 2008.
For regional brands to succeed they will need to re-think the traditional brand retail model.
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It is not possible to speculate how companies may produce better designs. The experience is that
many national designers are greatly influenced by US and European design concepts. Of course the
only reason that such designers are successful is because there is consumer demand for their
designs; ergo they have to produce US and European styles in order to succeed. The global brand
managers use designers to create the consumers perception of what is, and what is not, desirable. In
this respect the consumer is very malleable and is sufficiently neurotic to believe that this year green
is the new black or brown is the new chique. One can never under-estimate the style sense of the
consumer, or over-estimate the ability to ability brand managers have in manipulating a gullible
customer base.
The question then is what regional brands can do to be better than the global brands. Once again one
returns to the consumer.
Product Price. The major high street brands have firm control of product pricing levels.
Product Design. The major high street brands decide themselves on what is desirable at any
particular moment in time.
Store Location. The major high street brands have the market power to command the prime
locations.
Product Promotions. The major high street brands have the market power to beat any
competitor in promotional activity.
Store Atmosphere. New brands can compete here by catering to specific consumer
demographic and market segments.
Store Service. New brands can compete here by catering to specific consumer demographic
and market segments.
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Brand designers in the same industry generally use similar marketing methods to reach customers.
How can brands and designers get creative and use unconventional marketing methods to distinguish
their business from the competition?
This is specifically an area where new brands can start to compete with the tired marketing tactics
used by the major high street brands. There are a number of ways in which new entrants to the
market can change the interface between brand and buyer; and these will inevitable depend on the
segmentation of the customer base to achieve a more friendly interaction with the customer.
The most cost-effective way of improving interaction with customers is to use new technology to build
databases on customers, to better interact with customer in-store, and as a means of communications
with customer to encourage them to visit stores.
RFID chips in Store Loyalty Cards
Most women carry a purse full of store loyalty cards, and these may or may not encourage the
consumer to return to a particular store. However the inclusion if a RFID chip in the card will allow
store to use a range of customer interface procedures when customer return to the store.
For example, an RFID chip will allow the customer to be identified as she enters the store and then a
series of screen displays using an interactive Avatar could engage the customer in conversation using
voice recognition software.
This conversation would use that customer previous purchases and choices as point of conversation.
Screens would be placed at various locations in the store and the dialogue could continue and also
direct the customer to particular products and promotional offers.
Hallo Jane, welcome back. If you would prefer me not to help you please say -Yes- now.
OK. Can I show you some of our special offers in your size?
How did you like the skirt you bought the last time you were here?
When two customers are within the same range of the same Avatar, the Avatar could introduce one
customer to the other.
Jane, can I introduce you to Betty? She has been a customer here for over two years.
Ladies, did you know that we have a special offer this week on jeans. You will find them in
the next section beside the changing cubicles.
The use of automated systems based on customer identification would potentially enhance the
shopping experience for the buyer and at the same time allow the collection of valuable market
intelligence.
Special Occasions
Small brands are more flexible in their operations and they are more able to interact with specific
customer segments. By matching specific customer segments with specific product offering and
special promotions a retailer can attract customers in a much more effective way than any major high
street retailer.
By building up consumer contact lists, categorised by demographic and social groupings, products
could be promoted to these customer segments through special occasions (during weekends or
evenings) where specific product ranges could be presented. The product ranges could then be
maintained through online marketing.
Spontaneous Eventing
The most profitable and dynamic customer segment tends to be the under 24 year group. This
demographic could be attracted to spontaneous events held in the retail premises or in local clubs or
other locations. These events would combine a social occasion with the promotion of particular
product offerings. Such events would be announced by mobile telephone messaging at the last
moment and would be intended to divert young people from their usual social haunts to the event.
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One would build into the system exclusive events for high spending customers and these would
involve musicians, local celebrities or special guests. There would be amongst the general customer
base a desire for inclusion into this inner circle.
There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,
brands.
A unique brand offering attracts more attention and results in more sales is a reasonable
assumption; however there is nothing unique in the industry.
One might imagine that the use of novel textiles or build-in electronics may be possible; however the
fact is that if there was any viable possibility for such innovations they would already have been
seized upon by the major brands.
Gimmicks and gadgets tend to devalue the long-term image of brands and they should be avoided.
Excellent
Average Brands Good Brands Unspecified
Brands
Retailers % % % %
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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In the developing regions the new and untapped markets tend to be in the less affluent and rural parts
of the developing countries. Unfortunately this population has little disposable income to spend on
branded products.
There is no new or untapped market demand available to overseas brands in developing regions.
What local and segmented demand for products which exists in each country is catered for by local
entrepreneurs offering discount products. Each market has its own domestic brands which cater for
the middle price range products. Overseas brands have high overheads and cannot compete in the
lower end of the market and are therefore limited to a relatively small part of the overall product
market.
Niche Markets
There are niche markets, niche re-vitalisation and niche development; and there is always some
opportunities in each area.
Geographic Niches
Districts with limited competition often provide strong retail niches where it is very easy for shoppers
to find a retail brand locations isolated from competitors. Downtowns areas are often available for
strong niche locations. Niche locations can also provide cost advantages because retail space is
usually affordable and staff wage expectations are lower.
Customer Segment & Demographic Niches
The identification of customer segment niches requires local knowledge. The possibilities include:-
Ethnic demographics
Office workers
Older customers segments
Sports enthusiasts
Students
Tourists
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Brand Superiority
Brands have to offer potential buyers as many benefits as possible; especially, product superiority,
product differentiation, or a very strong brand image or heritage.
New brands and newcomers are limited in the benefits they can offer. The democratisation of the
luxury brands and their general availability (if not financial accessibility) means that the bar has been
raised for all the middle ground players. Thus Product Superiority and Product Differentiation are now
perceived by consumer as being the preserve of the luxury brands. In general this also applies to
Brand Image and Brand Heritage.
Thus is it increasingly difficult for High Street brands to offer their customers anything other than the
things being sought by the average retail customer. Those brand benefits are generally regarded as
being:-
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The High Street brands are thus limited to offering a lower product price, a better store atmosphere,
better store service, and a more convenient store location. The benefits of design and promotions are
transitory and very variable.
The cost of doing a good job in Brand Building and Design is not necessary any more than the cost of
producing mediocre brands and designs.
The building of a heritage brand always starts with a brand name which has a sufficient resonance to
be able to persuade consumers that it has sufficient weight to carry such a brand image.
For developing country companies it will be necessary to buy an existing name and convert that into a
brand image. To be a heritage name it must have resonance in Europe and the USA and this means
that the name must be widely known in Europe and the USA.
Once a suitable name has been purchased then a developing country company can use the normal
brand creation tools to build the name into a brand.
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Brand Resonance
Building a strong brand uses a sequence of steps, in which each step is dependent on the success of
the previous step such as. These are as follows:-
The implementation of these steps, essential in the creation of the best brand identity, brand meaning,
brand responses, and brand relationship, is a complicated and difficult process. The components of
the process involve the following concepts:-
Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily
the brand is evoked under various situations or circumstances.
Brand Meaning is made up of two major categories of brand associations that exist in customers
minds related to performance and imagery, with a set of specific subcategories within each. These
brand associations can be formed directly (from a customers own experiences and contact with the
brand) or indirectly (through the depiction of the brand in advertising or by some other source of
information, such as word of mouth). These associations serve as the basis for the positioning of the
brand and its points-of-parity and points-of-difference. Creating strong, favourable, and unique
associations and the desired points-of-parity and points-of-difference can be difficult for marketers,
but essential in terms of building brand resonance. Strong brands typically have firmly established
favourable and unique brand associations with consumers.
Brand Responses refers to how customers respond to the brand and all its marketing activity and
other sources of information that is what customers think or feel about the brand. Brand responses
can be distinguished according to brand judgments and brand feelings, that is, in terms of whether
they arise from the head or from the heart.
Brand Judgments focus on customers personal opinions and evaluations with regard to the brand.
Brand judgments involve how customers put together all the different performance and imagery
associations of the brand to form different kinds of opinions.
Brand Feelings are customers emotional responses and reactions with respect to the brand. Brand
feelings also relate to the feelings that are evoked by the marketing program for the brand or by other
promotional means.
Brand Resonance refers to the nature of this relationship and the extent to which customers feel that
they connect with a brand and feel in synchronization with it. With true brand resonance, customers
have a high degree of loyalty marked by a close relationship with the brand such that customers
actively seek means to interact with the brand and share their experiences with others.
The importance of the brand resonance model is in the checklist it provides for brand building. It
provides a basis by which brands can assess their progress in their brand building efforts as well as a
guide for marketing research initiatives. Brands must have a Duality. That Duality is the brands
connection with the Consumers Head and Heart. One important point reinforced by the model is that
a strong brand has such a duality. A strong brand appeals to both the head and the heart. Strong
brands blend product performance and imagery to create a rich, varied, but complementary set of
consumer responses to the brand.
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Brand Persistence
Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brand
following to sustain the brand over a period of time. Each year there are hundreds of brands
introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for more
than 5 years. The lifecycle of a brand depends on the professionalism and determination of the brand
managers.
d. Strategy
Strategic analysis of customer expectations
Strategic blueprint to meet the customer expectations
Strategic Business Plan
Strategic marketing objectives
e. Focus
Focus on the customer base segments which meet the profit objectives of the brand
Focus on realistic marketing goals
Focus on the medium and long term development of the brand
f. Monitor
Seek and automate customer base feedback
Formalise data collection and collation
Monitor customer attitude and perceptions
Automate the systems
g. Communicate
h. Create value
i. Database management and systems automation
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The question of whether brand managers should produce innovative new brands and designs or tap
into the potential of existing or little used brands is asked by managers in every major supplier. The
answer is that neither option is easy or affordable for the average established brand producers, let
alone a newcomer.
The global brands have thousands of brand managers seeking just these answers; however the
reality of the situation is that there is little innovation to be achieved and few brands to be re-vitalised.
Thus brand managers are left with the same tired mantra of what is the new black and what is in this
season.
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Industry Checklist
Any checklist used by producers and brand managers will include some fundamental topics. These
include: product fundamentals, principles and elements of design; product options and preparation;
product selection and continuity; and consumer strategies.
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
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Performance Indicators
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
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Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
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Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
Decision-making
processes to
selecting,
purchasing, and
development
brands.
Evaluating the
impact of trends
and forecasting on
consumer choices.
Determining the
criteria for products
that meet the
needs of
consumers.
Ability in planning
product mixes and
coordinating
existing product
ranges.
Analysis of the
quality of product
crafting, materials,
and design.
Analysis of the
selection and use
of products.
Evaluating apparel
care procedures.
Analysis of the
sources for
purchasing
products.
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Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
Planning the
impact of visual
merchandising.
Identifying
strategies for
promoting products
and services.
Planning the
functions of the
operational and
marketing
processes.
Product displays
using the elements
and principles of
design.
Analysis of viable
merchandising
techniques.
Determine the
impact of
technology on the
marketing and
merchandising of
products.
Identify viable
markets for
products.
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The data provided by the market difficulties, market, financial and consumer analyses indicate a road
map for market entry into the countries. It is necessary not only to evaluate the short-term prospects
(1-7 years), but more importantly the medium term (7-14 years), and the long term (14+ years). More
important than the size of the market potential is the potential for the return on investment. Therefore
this section will attempt to provide a concise appraisal of the market entry possibilities and the
rationale behind those choices.
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #1
S = 1-7 years
M = 7-14 years
L = 14-21
years
Markets S M L S M L S M L S M L S M L S M L S M L
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment and
the regulatory environment for the products and the operation of a business.
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Market Potential
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #1
S = 1-7 years
M = 7-14 years
L = 14-21
years
Markets S M L S M L S M L S M L S M L S M L S M L
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
The market potential is a function of market size, disposable income and propensity to consume. In
some countries, notable China, there is demographic dysfunction due to the one child policy and this
has created a serious problem with standard distribution of the population. Essentially in China there
are fewer females and there is an aging population. Both these factors in China will impact womens
fashion products.
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Financial Potential
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #1
S = 1-7 years
M = 7-14 years
L = 14-21
years
Markets S M L S M L S M L S M L S M L S M L S M L
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
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S = 1-7 years
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #1
M = 7-14
years
L = 14-21
years
Markets S M L S M L S M L S M L S M L S M L S M L
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
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Year
Markets 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
The data above is derived from relative product, market and financial analysis.
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The data provided by the above analyses is used to provide a breakdown of the potential of Return on
Investment for each product category for each market in the short-term (1-7 years), the medium term
(7-14 years).
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
The data above is derived from relative product, market and financial analysis.
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National Distributor
Brand owned retail
Franchising via
Franchising via
Franchising via
Promote brand
Sole Investor
wholesalers
franchisers
individual
through
chain
% % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from the opinions of the trade and retail experts in each market.
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399
SECTION 3
Market Research
for
7-Eleven
Markets
in
Philippines
7-Eleven - Philippines
The report will give market data for each of the below Product and Market Sectors, by year. Historic
data from 1997 and Forecast data to 2028. Data is given for the Philippines National Market plus
market data for each major City in Philippines.
Product Sectors
This database scans all the Retail Sectors, and certain Service Industry Sectors to identify all those
product areas which represent the markets for 7-Eleven. These are existing markets and potential
markets for future development.
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Survey Data
Discussions with the local experts covered the following issues based on the interviewees personal
or corporate experiences. Interviews were conducted with various industry experts.
Retail experts at Trade Magazines or other Media were interviewed regarding the existing market
conditions for the brands, the existing penetration of retail brands, and the future prospects.
Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail Negotiators were
interviewed.
The surveys of Consumers and Retail Customers were done to analyze overall retail issues, Brand
awareness and attitudes towards brands and imports, criticisms of existing retailers, methods for
retailers to improve service, et cetera. The Surveys covered Retail Store Customers and Consumers
of products and services.
Consumer Surveys
Surveys of Consumers and Buyers:
Consumer Surveys
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Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers
Trading Area Industry & Retailer Performance Surveys for the Trading Area
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Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT
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Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1 Philippines
2 Southern Tagalog
3 National Capital Region
4 Manila
5 Central Luzon
6 Western Visayas
7 Central Visayas
8 Southern Mindanao
9 Bicol
10 Ilocos
11 Eastern Visayas
12 Western Mindanao
13 Cagayan Valley
14 Northern Mindanao
15 Muslim Mindanao
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Retail Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
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Geographic Coverage
The report will provide data for Philippines National market, plus market data for the largest City and
Town in Philippines.
See: http://www.dg-di.eu/BASE_FOLDERS/World_Cities/RP.html
Financial data
The databases give Financial data and Margins by year Historic: 1997 to Current, and Forecast to
2028.
There are a large number of Financial Scenarios available, for example, the Median Scenario:-
There are a large number of Financial Margins & Ratios available, for example, the Median Scenario:-
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Philippines
Market Research
General Contents
This report provides users with commercial intelligence on the markets and industry in the national
market, product sectors, financial and industry data on each of the Towns and Cities. There are a
large number of towns covered in this report for which overall market data is provided. Detailed
market and product data is given for End User significant towns and for End User significant Product
Launch towns. Detailed financial data is given for commercially significant towns and for commercially
significant Product Launch towns.
This report is formatted to give both a narrative description of the various matters covered as well as
provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible word
processors) to produce their own reports and documentation. Experienced users will be able to use
the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics - as
well as sophisticated business and commercial forecasts and models. The databases are provided in
both Excel spreadsheets and an Access database. Explanatory notes are provided as word processor
documents or in PDF formats.
The narrative in this report is necessarily illustrative in its terminology and seeks to provide a basic
degree of business logic and theory which indicates the rational applied in the forecasting and
modelling methodology.
The databases provided are specifically designed to provide users with a uniform and consistent
numeric measure of both (normally) quantifiable values as well as conceptual factors which are
(usually) only capable of qualification. Experienced users will know how to apply forecasting and
modelling software to the numeric data provided to generate highly detailed and discrete business
planning models. The databases provided in this report can be used directly with databases on other
product, markets and industries in other countries. The databases are specifically designed to be
transnational, currency neutral, inflation and purchasing parity adjusted, product parity and product
equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or
merged programmatically in business planning models to provide multi-national and multi-level
analysis.
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Sections
Preface
Chapters
Databases
Financials
Industry
Markets
Products
Grids
Reference
Contents
Legend
Cities
Countries
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Chapters
Chapter 1 ADMINISTRATION
Chapter 2 ADVERTISING
Chapter 11 DISTRIBUTION
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Chapter 40 MARKETS
Chapter 45 PRICING
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Chapter 56 SURVEYS
Chapter 58 TECHNOLOGY
412
SECTION 4
Business Planning
7-Eleven
7-Eleven - Philippines
BUSINESS PLANNING
Checklist
Before one can develop a realistic business plan one needs to establish the business objects and
then to produce a database with the following parameters:-
1. Business start-up
a. Company Law
b. Capital Requirements
2. Credit
a. Availability of trade credit
b. Banking policies
c. Foreign Exchange regulations
d. Remittance of Profits
e. Credit data considerations
3. Employment
a. Employment contracts
b. Employment laws
4. Import of Goods
a. Quotas & Licensing
b. Prohibitions & Restrictions
c. Free imports
d. Tariff-rate quotas
e. Approvals & Inspections
5. Import Duties
a. General Rates
b. Most-Favoured Nation Rates
c. Agreement Rates
d. Preferential Rates
e. Tariff-rate Quota Rates
f. Provisional Rates
g. Preferential Duty Reductions
6. Taxes
a. Value Added Taxes, Reduced Rates, Exemptions, Rebates
b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes
c. Miscellaneous Taxes
8. Authorities
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a. Customs
b. Financial
c. Commerce
d. National, State, Regional, City administrations
9. Compliance
a. Tax compliance
b. Enforcement of regulations
c. Treatment of foreign enterprises
d. Corruption
10. Retailing
a. Regulations
b. Domestic Retail Development
c. Foreign Retail Investments
d. Economic & Political policies
e. Establishment of enterprises
f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)
g. Consumer Markets
h. Logistics & Supply Chains
i. Retail Location & Property
j. Infrastructure difficulties
k. Transaction Costs
l. Bureaucracy
m. Distribution Channels
n. Personnel
o. Financial management
p. Availability of premises
q. Availability of services
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e. Service provision
f. Customer Demand / Expectation satisfaction
g. Product Pricing
h. Retail Channel Development
i. Product Mix
j. Marketing Mix
k. Family size and composition
l. Geographic location
m. Regional diversity
14. Competition
a. Domestic Competition
b. International Competition
c. New Entrants
d. Retail Consolidation
e. Aggressiveness of Players
f. Bargaining Power of Suppliers
g. Bargaining Power of Buyers
h. Cost Reduction
i. Location & store siting
j. Internet
k. Payment systems
16. Tactics
a. Control and Define Supply Chain and Distribution policies and finances
b. Enter smaller cities
c. Concentrate of younger demographics
d. Entrench & strengthen brand recognition
e. Develop Sales Channels / Internet / TV / Malls / Shopping experiences
f. Offer intangible benefits
g. Reduce Costs and Reduce Prices
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Checklist implementation
Business Planners should input their business objectives and parameters using a database format,
for example, the Business_Planning_Checklist_Retailing.xlsx file which is found in the Toolkit.
Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &
Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,
Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in the
supporting documentation.
Once the business planner has defined the business objectives and the necessary parameters
attention can then be turned to the practical isolation of locations for retail outlets. This is necessary
irrespective of whether a decision has been made to open brand owner stores or to franchise the
brand.
Next one needs to select the target geographic areas within Philippines; and this is done with
reference to the City and Town data in the core database. The data accessed should include:-
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Cashflow
The client can order Cashflow projections (as part of the After-Sales Service) once operational
parameters have been set. The operational parameters are the initial retail capital investments, store
location, overheads, staff levels, et cetera.
Cashflow projections are done using a monthly interval and will depend on which month the retail
store will open. It is not possible to produce Cashflow projections without knowledge of the Start
month and other market criteria. The first few months of sales revenue in the retailers business will
depend on which month a store first opens. Other items, like before start-up expenses, opening
balances, et cetera, must be known before a Cashflow projection can be made.
Cashflow Calculator
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Users can produce a basic printed Business Plan if that is all that is needed. For a more detailed
Business Plan, the software will take users through a series of forms and utilities which will allow one
to specify the commercial plan objectives and the project events; one then produces a Project
database. Users can then generate an advanced Project Dialogue database which provides
detailed guidelines and a project management action plan for the country covered by the project. In
addition, if needed, users can obtain additional human resources and support services to produce an
assisted Business Plan. The software then generates a Business Plan Web which incorporates the
business plan objectives and the underlying market research findings. Finally, if needed, a modelling
level Business Plan is available, and this incorporates highly sophisticated business forecasting
components.
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The business plan programme is installed by running Business Plan Program Installation & Setup.
The installation puts this shortcut on your desktop to open the database.
When you install the Business Plan software it creates a Business Plan directory folder on your
computer. So that you can easily find the folder, it is put on your root directory. The structure of this
folder is shown here.
From this folder you can generate any number of Business Plan projects, and these individual
projects are then saved to the Project folder you specify in the project generation process. See the
structure of this directory here.
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How it works...
First, review the Market Research to gain an understanding of the market and the industry. This is a
simple process which allows users to browse the Market Research Web and quickly pick those areas
of interest and potential business opportunity.
Second, install and run the Business Plan software to generate the detailed commercial and project
management databases. Each Business Plan is a single project and the user can run as many
projects, or business plan scenarios, as required.
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The Business Plan software takes the user through a series of database forms and spreadsheets
which will result in the production of a comprehensive and cohesive Business Plan:-
One can modify the business plan, or run as many different scenarios as necessary, to refine a
particular business plan or to explore alternatives.
Third, run the Project Dialogue software to generate the advanced Project Action Plan databases for
the country covered by the project.
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The Project Dialogue software takes the user through a series of database forms and spreadsheets
which will result in the generation of the detailed Project Action Plan databases and timetables for the
country that the project will cover:-
Fourth, users can obtain further services as part of the After-Sales Service, including a Service Team,
Consultants, Resources, Support Services, and Corporate Research; and this allows users to access
additional project resources and/or produce more detailed analyses and blueprints for project
management.
There are many ad hoc services through which users can obtain the help they need to assist them to
reach their business goals. These ad hoc services can range from a full Service Team which can
produce a fully implemented turnkey project, to the simple provision of a consultant on the other end
of a telephone line to immediately answer a technical or commercial question, or the loan of a
programmer or systems engineer for a few hours. In addition to the human resources, users can also
access a wide range of commercial and physical resources, support services, and corporate
intelligence.
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These resources and services become an integral and operational part of the project and are
managed by the project managers.
Fifth, users generate the Project Web which will allow users to view the project in its entirety.
Users do not need to complete all the forms; however the ones which users do not complete will
result in incomplete project web pages. Users can edit out these unwanted web pages. Users can of
course return to these forms later and complete any missing data and then re-generate the project
web.
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Users can update the project data as often as users require and then re-generate the Project Web (if
users specify the same Project Name then the new project web will over-write the existing web).
Users can also generate as many separate Projects designs or scenarios as users wish (each with a
unique Project Name) and these will generate separate Project Webs for viewing and discussion.
Finally, users can obtain software and databases to generate highly detailed medium and long-term
business planning analyses and forecasts for company management and investors.
There are diverse utilities, forecasting and modelling tools available for advanced business modelling
and forecasting; and one can use these to produce highly detailed analyses, or specialized business
planning forecasts and documentation, reports, spreadsheets, and other items to assist company
management in their medium and long-term planning activities.
This is especially useful where users are involved in technical/industrial processes, or a complicated
distribution system, or intricate financial operations, or a technologically evolving product, where one
has to coordinate and manage the project elements over an extended geographic space and/or over
a medium or long-term timescale.
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Retailer Analysis Report
7-Eleven
Methodology
For a general description of the methodology used to prepare this database see: Methodology
Presentation
The report is delivered as follows:
6. All DataGroup / Data Institute products are generated for each client order to ensure that the
client receives the most up-to-date information. This also produces a unique database for the
client; for this reason we archive a copy of the unique database for use if the client needs any
future work from the database. http://www.dg-di.eu/about-delivery.html
7. However, in addition to the report there is a vast amount of data and services which a client
can access. This is done as part of the After-Sales Service.
7-Eleven - Philippines
There is a 12 months After-Sales Service from date of delivery. See After-Sales Service
When you want the database updated then you can simply order an update. When you want more
detailed information on any part of the database then you can order the information you need.
This database has been uniquely generated for each order and includes a 1 year After-Sales Service.
A DataGroup / Data Institute service representative is assigned to each client (see the covering letter
which accompanied your order delivery).
After-Sales Support: support@data-institute.org
All reports, studies and consultancy assignments must inevitably mean that the publishers or
consultants are trying to interpret the needs and expectations of their clients. Unfortunately in most
cases, with most publishers, the clients will not receive all the data they need. This is not the case
with a DataGroup report.
The main problem that DataGroup has to resolve is that the database for each report would, if printed,
be about 20 volumes of 600 pages for each volume. Clearly this amount of information (12,000
pages) would be unusable and unwanted by the majority of clients - and indeed the cost would be
twenty times greater.
Thus with After-Sales Services clients have 12 months Support whereby clients can obtain more
information and data on markets, industries, competitors, distribution channels, end users, et al.
All DataGroup / Data Institute products have a 12 month After-Sales Service and what this means is
that from 12 months after the data of purchase a client can obtain more data or services at a greatly
reduced cost. After-Sales Services are usually provided at 35%-55% of the normal retail costs. This is
because this work is done during off-peak hours.
http://www.dg-di.eu/about-after-sales.html
Costs: The current cost is 75 per hour; this includes all researcher, computer & database access.
The cost of this After-Sales Service is low and provides a highly cost conscious method of acquiring a
vast amount of additional and more detailed information at a relatively low cost. No other Publisher
provides such a service to their clients
Delivery of the results produced is 7-14 days. For more urgent After-Sales Service work the costs
depend on the clients time frame and the availability of our researchers.
Quotations: We quote client in advance for After-Sales Service work and this quotation states the total
cost of the job, plus the anticipated delivery time.
After-Sales Services are usually provides on DVD, Memory Stick, USB Hard Drive or online.
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The main benefit of these Resource Webs is that the data is available to all the clients staff and
professional advisors wherever they may be, and also when data is updated or new data is added
then there is a common and know point of access for that data.
Resource Webs are maintained for the use of the client for a period of 12 months from the data of the
last data addition or update to that site.
These dedicated web sites are provided as part of the After-Sales Service. We try to make the web
site as visually attractive as possible and for this we simply need the clients permission to use their
company logo and their own website's colour themes.
Product Level
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Toolkits
To assist users there is a Toolkit to be found on the 5 DVDs, online downloads, or Hard Disk Drive-
DVD 1
1. Data Manuals
2. Document Templates
3. Help files
4. Manuals Templates
5. Microsoft Utilities
6. OpenOffice
7. Business Plan Images
8. Reference files
9. US Census Data Tools
Because all DataGroup and Data Institute database are directly compatible with U.S.
Government databases (especially the Department of Commerce, US census, NIST, Treasury,
et al) it is sometimes useful for users to use US Government data handling tools to manage not
only US Government data, but also the data provided by DataGroup and Data Institute.
Alternatively, if you are already using this US Government software you can simply access the
DataGroup and Data Institute databases with the same software. In generate DataGroup and
Data Institute databases we use the same database parameters, structures and field names as
those found in US Government databases, and thus uses can correlate and query databases
without undue difficulty.
DVD 2
1. Database Utilities
2. Enterprise Resource Planning
3. Integrated Development Environment
If you intend to implement DataGroup and Data Institute databases online (internet or intranet)
then an Integrated Development Environment is often the easiest route to data dissemination
and data manipulation.
DVD 3
There are about 40 Statistical packages provided in this Toolkit. These are Open-
Source packages which are generally free to use. The following packages are
available:-
acslX, ADaMSoft, ADMB, AMPL, Analyse-it, Analytica, Angoss, APMonitor, ASReml,
Automlab, Baudline, Bayesian Filtering Library, BMDP, BV4.1, CalEst, Ch, Chronux,
COMSOL Script, CSPro, DADiSP, DAP, Data Applied, Dataplot, Demetra+, EJS, ELKI,
Epi Info, Euler Mathematical Toolbox, EViews, FAME, FEniCS Project, Fityk, FlexPro,
GAUSS, Genedata Analyst, GenStat, GeoDA, GLIM, GNU Data Language, GraphPad
InStat, GraphPad Prism, gretl, Hermes, IBM SPSS Modeler, IBM SPSS Statistics,
IDAMS/WinIDAMS, IDL, IGOR Pro, IMSL Numerical Libraries, Izenda, JAGS, JHepWork,
JMP, JMulTi, Julia, KPP, LabPlot, LISREL, Macsyma, Madagascar, MadArtSoft,
Madeline, Maple, Mathcad, Mathemagix,, Mathematica, MATLAB, MCSim, MedCalc,
Minitab, MINUIT, MLwiN, Mondrian, NCAR Command Language, NCSS, NMath Stats,
numberGo Publisher, NumXL, Octave, O-Matrix, OpenBUGS, OpenEpi, OpenMx, OptimJ,
Orange, Origin, OriginPro, PARI/GP, Partek, PAW, Perl Data Language, Ploticus, Primer-
E Primer, PSPP, PV-WAVE, Q research software, QtiPlot, Quantum, R, R Commander, R
Rattle GUI, RapidMiner, RATS, Revolution Analytics, ROOT, Sage, SALOME, Salstat,
SAS, scikit-learn, Scilab, SciPy, SHAZAM, Shogun, SigmaStat, SigmaXL, Simfit, Simul,
SOCR, SOFA Statistics, SPC XL, Speakeasy, S-PLUS, SPSS, Stata, Statgraphics,
STATISTICA, Statistical Lab, Stat-JR, Stats Helper, StatXact, SUDAAN, Systat, The
Unscrambler, Trilinos, Unistat, VisSim, Waffles, Weka, WinBUGS, Winpepi, X-12-ARIMA,
XLfit, Xlisp-stat, XploRe, Yorick.
DVD 4
Microsoft Server 2003 utilities and resources. These are for clients implementing
databases on Microsoft Server 2003 systems.
DVD 5
Microsoft Server 2008 utilities and resources. These are for clients implementing
databases on Microsoft Server 2008 systems. Microsoft Server 2012 migration
utilities are also provided in this Toolkit.
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ERP Packages: Adempiere, BlueErp, Compiere, Dolibarr, Fedena, GNU Enterprise, JFire, Kuali
Foundation, LedgerSMB, OFBiz, Openbravo, OpenERP, Opentaps, Postbooks, SQL-Ledger, Tryton,
WebERP, 1C:Enterprise, 24SevenOffice Start / Premium / Professional, abas ERP, Accpac, Agresso
Business World, AMS Advantage, BatchMaster ERP, Bowen & Groves, CGram Enterprise, Clear
Enterprise, Comarch Altum, Compass ERP, Compiere, Comprehensive Patient Administrator, COA
Solutions Ltd - Smart Business Suite, Consona Corporation Intuitive / Made2manage / AXIS /
Cimnet / Encompix / DTR, Epicor Enterprise, Global Shop Solutions One-System ERP Solutions,
HansaWorld, ERP Adage (Adage), ERP LN (Baan), ERP LX (BPCS) ,ERP SL (SyteLine), ERP Swan
(Swan), ERP SX.Enterprise (SX.Enterprise), ERP VE (Visual Enterprise), ERP XA (MAPICS), IFS
Applications, JD Edwards EnterpriseOne & JD Edwards World, JustFoodERP.com, kVASy4, Kingdee,
Lawson M3 / Movex, Lawson S3, Log-net, Maximo (MRO), Microsoft Dynamics AX, Microsoft
Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Momentum, MyWorkPLAN,
NetSuite, Openda QX, OpenMFG, Oracle e-Business Suite, Paradigm, PeopleSoft, Plex Online, QAD
Enterprise Applications, Ramco Enterprise Series 4.x, Ramco e.Applications, Ramco On Demand
ERP, MAS 90, MAS 200, MAS 500, Technology One, SAGE ACCPPAC, SAGE Pro ERP, SAGE ERP
X3, SAP Business Suite, SAP Business ByDesign, SAP Business One, SAP Business All-in-One,
TaskHub, SYSPRO, SYS-APPS, mySAP, Visibility.net, WorkPLAN Enterprise
Enterprise Feedback Management Systems: SynGro, Perseus (Vovici), Clicktools, DatStat, Inquisite,
SPSS, FIRM (Confirmit), NetReflector, Allegiance, Enetrix, Satmetrix, RightNow Technologies,
Mindshare Technologies, Data Illusion, KeySurvey (WorldAPP), Kinetic Data, CustomerSat
(MarketTools), Medallia, Interview SA, Surveynomics, Invoke Solutions, Qualtrics, Fizzback,
Grimmersoft, QuestManager, QuestBack, Globalpark, DataCycles, Dub Studios, eLustro, Kinesis
Survey Technologies, Knowledge Wave, myK (myKnowledge), mySurveyLab.com, QuickSearch,
Ransys, ResponseTek Networks Corp., TalkFreely, XTCO, Zarca
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Report Cost
Retailer Report
7-Eleven - Philippines
Report Pricing
SECTION PART CONTENTS Euros
1 A Base Data on 7-Eleven 280
B.1 Financial: Management Figures 160
B.2 Financial: Full Balance Sheet (purchased with Part B.1) 90
C Product Data is provided with all the Parts below.
D Retail Locations data (Corporate) 750
E Advertising, Marketing & Events (Corporate) 750
F Store Experience (Corporate) 750
G In-Store Customer Purchasing Behaviours (Corporate) 750
H Customer Handling (Corporate) 750
I Selling Strategies (Corporate) 750
J Pricing & Price Points (Corporate) 750
K Performance Analysis (Corporate) 750
L Strategies (Corporate) 990
M Retailing (Corporate) 990
N Supplemental Survey Data 990
Discount Structure
Part A plus any 2 Parts: Discount 15%
Part A plus any 4 Parts: Discount 20%
Part A plus any 9 Parts: Discount 40%
All 17 Parts: Discount 50%
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About DataGroup
DataGroup was formed in 1974 by a group of management consultants and information technology
specialists whom had previous worked with, amongst other organisations, the U.S. Department of
Commerce, Bank of America, Chase Econometrics, The Marketing Strategies Institute, the OECD in
Paris, and MITI in Tokyo. DataGroup was established in order to develop a systemised,
computerised, and uniform methodology to facilitate real world forecasting models for macro-
economic, micro-economic, market, product, and industry purposes.
For full details of DataGroups history please see: About DataGroup
DataGroup Clients
DataGroup do not publish a list of current client list due to client confidentiality; however a partial list
of client in the period 1975 to 2000 is shown here: DataGroup Client 1975-2000
7-Eleven
Philippines
Ref: 7699899607176
Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright by DataGroup Stiftung. All rights reserved.
No part of the contents of this document may be reproduced for third party distribution or transmitted to third parties in
any form or by any means without the written permission of the publisher. DataGroup publications are available
worldwide only through authorized distributors. DataGroup 1974 2015
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U.S. Government Departments and Agencies are recognized. The copyright and trademarks of all publishers and producers of ancillary
documentation and software are recognized.
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