CASE STUDY PRESENTATION - A CASE ON SEVEN ELEVEN JAPAN

GROUP MAVERICK

GROUP MAVERICK Name ID

Md. Khaleduzzaman Sowrav 13164067 Sabia Sultana 12264029 Md. Gias Uddin Biswas 11164036 Nusrat Afrin 09364036 Nur-Un-Naher 13164013 Tanzila Nahreen Chowdhury 11364019 Muhammad Tanvir Hossain 13164042 Taukir Ahmed 13364065 Ahmed Wasi Uddin 13164047 Tawhida Zaman 10264033

SEVEN ELEVEN JAPAN

Mission: To make life a little easier for our customers by being where they need us, whenever they need us.

SEVEN ELEVEN JAPAN Founded by Masatoshi Ito

Established: November 1973

Headquarter: Tokyo, Japan

The company was first listed on the Tokyo Stock Exchange in October

1979

With more than 50,000 stores worldwide, Seven-Eleven is the world’s

largest convenience stores.

Operates in 15 countries, largest market in Japan with 16,664 stores

In 2013, Seven-Eleven had $3.7 billion operating profit.

BACKGROUND OF SEVEN ELEVEN

In 1991,SEJ purchased 64.3% interest of Southland Corporation to save

it

SEJ freshness extend to timely accommodation of changing needs and

taste

Two way communication with franchisees

Analyze POS data to assist manufacturers in new product development

Ordering know how

Delivery operations

BACKGROUND OF THE STUDY

Competitive Strategy To provide high-availability of a variety of reasonable quality

products at reasonable price

Dominance Strategy High distribution efficiency Brand Awareness (Cluster of stores (50-60) in small geographic

area supported by a distribution center) System efficiency Franchisee Support service Advertising effectiveness Entry Barrier for competition

Consumer

Product

Marketer

• Less female consumer

• Lack of involvement with aged Generation

• Frequent change in store layout• Random change in product SKU • High dependency on technology

• Lack of wide product range offerings

• Maximum dependency on perishable items

ISSUES

PROBLEMS

Expensive current information system configuration

Short Product Life Cycle

Quality Control problem

Problem in delivery process

Less point of difference

Lack of strategic implementation in US and at Southland Corporation

ANALYSIS OF ISSUES Less female consumer

- Only 36% consumers are female- Lack in product variation for females

Lack of involvement with aged generation- 57% of consumers aged between 10-29

Limited product offerings- Offering only processed food, Fast food, Fresh Foods & non-food items

Maximum dependency on perishable items- Perishable items have short shelf life- Fluctuation in demand- Challenges to handle unavoidable circumstances

ANALYSIS OF ISSUES (CONT…)

Random change in product SKU - Considering the space constraint they are changing their products- Consumers will miss their desired products

Frequent change in store layout- Product mix on the gondola is constantly changing- Can create confusion amongst consumers

High dependency on technology- Lack of human interface- In case of technological failure, there can be disaster

ANALYSIS OF PROBLEMS Life span of product is shrinking

- New products are introduced and deleted at a faster rate- Requires continuous effort on product innovation

Quality Control problem-They do not have any measure for quality control

Problem in ordering process- Ordering process requires 1.5 to 2 hours.

ANALYSIS OF PROBLEMS (CONT…)

Less point of difference

- Main competitors copied SCM techniques.

Not full use of Information System

- They still depends on Operation Field Counselors (OFCs)

Lack of strategic implementation in US and at Southland

Corporation

Differences between geographic, consumer trends and distribution networks

RECOMMENDATIONS

Seven eleven can focus on attracting female consumer as we saw the frequency of female are less in the store. They might run a sales promotion as a temporary basis to identify potential demand of female products.

They can introduce completely new segment with female needs: cosmetics, undergarments, perfumes, recipe books, clothes, also baby products to ultimately draw attention of females.

RECOMMENDATIONS (CONT…)

Randomly changing display shelf layout might create confusion to those regular customers out there. It's also important to fix the aisles of different categories of products in order to ease of finding the desired product.

Customers visit seven eleven regularly will easily identify bakery shelf if it's properly marked and kept settle for a longer period.

Too much dependency on technology can be minimized and human interference can be encouraged.

RECOMMENDATIONS (CONT…) Too much focus on perishable items can create

dissatisfaction among customers. Because, firstly, customers will buy the products with a

dilemma whether it's fresh or rotten. Secondly, seven eleven itself will suffer from low stock for

those limited shelf life products  And finally, huge number of customers might turn out due to

failure of the store to fulfill their demand. Like; they can store frozen foods, instant foods, proper cooling system/ temperature control, dry items, bakery items, grains, etc.

FUTURE COMMENTS

Motivating Employees Performance-Based Incentives

Employee Recognition

Ownership Options

Home Delivery

Standing Order Delivery Model

Customized Pricing and Availability

Customer Management

FUTURE COMMENTS (CONT…)

More Secured and Unique Information System

Information Security

Standards for Information Security Management

The Information Security Management framework is provided complete with all five key modules of Software.

FUTURE COMMENTS (CONT…)

CONCLUSION

Seven-Eleven was able to modernize the convenience store by using-

a tailor made information system continuous innovations always placing high priority on the community and

its culture. Seven-eleven continues moving forward in its role as

a distribution group that can respond to customer expectation through continuous innovation and group synergy.

THANK YOU ALL

QUERIES….