Research Title:

Marketing Strategies of selected Convenience store

near Manuel A. Roxas High School.

Statement of the Problem:

This study focuses in what are the marketing strategies of

the selected convenience store near Manuel A. Roxas High School.

Specific Problem:
1. What is the demographic profile the customers in terms of
Age:
Gender:
Educational Attainment:

2. What are the level of satisfaction of the customers in

terms of
2.1 Accessibility
2.2 Safety

3. Which of the selected convenience store has more marketing

strategy?
4. How do customers perceived the marketability of a convenience

store in terms of:

4.1 price of the product

4.2 quality of the product

4.3 service rendered by the crews to customers

5. What are the marketing strategies used by the convenience

stores?
 Chapter 1
INTRODUCTION
A convenience store is a small retail business which stocks
everyday items which the average person uses. It may range from
snack foods to toiletries to tobacco products. In the United
States, convenience stores are often associated with fuel
stations. They are often located along busy roads or at important
intersections in a community. Convenience stores also go by a
number of different names. They may be referred to as corner shops,
party stores, corner stores, or c-stores. People sometimes
underestimate how important convenience and corner stores are to
a community. They are operated by local people and employ local
people. They are very important to the community.

Convenient stores have tended very popular crime target,

notably shoplifting and robbery. Convenient store have their plans
on establishing special task forces through the help of the
authorities. In America, every convenience stores are often been
targeted through armed robbery. Some areas of the United States,
it is unusual for store clerks to be working with armed bulletproof
glass and windows, or even during daylight hours. Some convenient
stores may even limit their access inside at night or at wee hours,
which requires every customer to approach through a walk-up window
for this situation in making purchases. The main dangers are that
almost all convenience stores may have only one person working in
night shift mode. Most of the transactions are in cash value and
easy resold merchandise like liquor, lottery tickets, and
cigarettes on the site.

Two popular convenience store here in the Philippines, the

first one is the 7-Eleven. It is a Japanese-owned American
International chain of convenience stores. Their headquarters is
to be found at Dallas, Texas. In the year of 1946 the chains name
was changed from "Tote'm" to "7-Eleven" which reflects their
company's new extended hours. Even though it's typical outlet is
small in size and carries a limited stock of food, drinks, and
other high turnover products but stays open for long hours. The
other one is the Ministop, a chain of 24-hour convenience stores
that operate as a grocery and fast food diner combined. It has a
core business policy which is quality, services, cleanliness and
assortment/availability. Minister is not just for emergency
grocery purchases by people who need to leave after a minute. The
benefits of convenience store are they are a natural destination
point for the neighborhood in which they are located. If someone
requires a couple of items that doesn’t justify a trip to the local
grocery store, then a trip to the convenience store down the street
makes more sense. Although the prices at a convenience store tend
to be a little higher, customers spend less to get there, which
creates a pricing balance. People stop by these stores because
they are convenient, having what they need to get through their
day. Convenience stores usually charge significantly higher prices
than conventional grocery stores or supermarkets. A convenience
stores order smaller quantities of inventory at higher per-unit
prices from wholesalers but their products are just the same
products in other stores. The main concern of this study is which
convenience store is better even the prices are more expensive and
even they have a wider choice of stores where they can choose to
shop which follows the suggested retail price (SRP) on every
product.

SIGNIFICANCE OF THE STUDY

This study is identified to be beneficial to the following:

To the company. This study can help them to gain more knowledge in

dealing with different consequences as they manage their business.

To the customers/respondents. This study can help those who are

also curious about the marketability and the marketing strategy on
how the owners handle their business.

To the marketing students. This study can help as a reference and

they can get information from the result of this research. They
also get some ideas which are relevant to their topic or study.

To the future researchers. They can use this as their reference in

creating their own research. This may contain some ideas which are
relevant to their study.
 SCOPE AND DELIMITAION
This research was conducted to be able to know the marketing
strategies of selected convenience store near Manuel A. Roxas High
School. The researchers conducted this study in two selected
convenience stores in selected area that near in Manuel A. Roxas
High School, which is the 7-Eleven and the Ministop which operates
24hours and 7 days a week are not included as respondent in the
study.
DEFINITIONS OF TERMS
The following terms were defined within the context of the study:

1. Accessibility

Extent to which a consumer or user can obtain a good or

service at the time it is needed.

2. Convenience Store

Sells convenience goods, and opens usually from early hours

to late at night.

4. Marketability

The ability of a commodity to be sold or marketed.

5. Marketing strategy

An organization strategy that combines all of its marketing

goals into one comprehensive plan.
 CHAPTER 2
REVIEW OF RELATED LITERATURE

Foreign Literature

In United States, the convenience store industry continued to show

its resilience in 2014, growing steadily in number of retail
outlets during in economy still trying to find its feet. According
to 2015 and NACS/Nielsen convenience industry store count
increased from the year prior’s count of 151,282 stores as of
December 31, 2013. The annual survey shows that the convenience
retailing industry roughly doubled in size over the three decades.
At year-end 1984, the store count was 85,300 stores, at the year-
end 1994 the store count was 98,200 stores and at year end 2004
the store count was 138,205 stores.

According to Nielsen, convenience store account for 33.9% of all

retail outlets in the United States, which is significantly higher
than the U.S total of other retail channels including drugstores
(41,799 stores), supermarket/supercenter ( 41,529 stores) and
dollar stores (26, 572 stores).

NACS Chairman Steve Loehr, Vice- President of operation support at

La Crosse, Wis - based kwik - trip said that their continued growth
even during sluggish economy, shows that our core offer of
convenience resonates more than ever with our customers, whether
they visit as for a fuel fill- up, quick snack or drink, or stop
by four fill in groceries or healthy take-out meals.

Among the States, Texas continues to leadin store count with 15,434
stores. The rest of the top 10 states for convenience stores are
California ( 11,403), Florida (9,810), New York (8, 247) , Georgia
(6,766), Nork Carolina (6.301), Ohio (5,539), Michigan, (4,907),
Illinois (4,670), and Pennsylvania ( 4,604) which nudged virginia
out of the top 10 in 2014.

In Costa Rica, Family owned operated convenience stores called

pulperias have been common since 1990s and there are many of those
stores in every neighborhood. In the 2010s modern convenience
stores were introduced, mainly by the AMPM company, Competitors
launched brands such as Musmanni Minisuper (a chain of bakery
stores promoted to convenience stores), Vindi (operated by
Automercado Supermarket company) and Fresh market (operated by
AMPM in format appealing to prosperous neighborhoods).

While in Indonesia, Convenience stores may on; be built usually

500 meters from nearest traditional market. In small city or rural
areas, this means a smaller area are often built side by side or
at maximum within 50 meters of each other.

Local convenience store brands are Indomaret and Alfamart. Both

targeting all public, where imported brands like 7-Eleven, Circle
K or Lawson are targeting big cities and cater to a lifestyle more
than “convenience”. To be classified as a convenience store,the
store should occupy no more than 100 meters square of service area,
on in some local residence, up to 250 m.

Indonesian government restrict convenience store license, so it

can only be bought by franchisee, using different name and
different brand, or classifying it as cafeteria. A convenience
store with a cafeteria license is only allowed to sell maximum 10
percent of its service space for non-food/ beverages product.

In Japan, the convenience-store chains have gradually increased

their presence in the retail sector they need to evolve even
further during the third phase. Demographic and social changes in
japan, including an aging population increase in the number of
women entering the work force, present convenience stores with new
opportunities. Women and elderly people, who have infrequently
patronized convenience stores to date, are now potential new
categories of clientele as they discover the convenience of being
able to do all their shopping and run all their errands within
walking distance of their homes.

As the total number of convenience stores in japan tops 55,000

locations, the three major convenience-store chains have been
steadily increasing their network through aggressive store
openings, the leveraging of their store networks as infrastructure
and their stores as bases is key to the next phase of evolution in
new business development.

In emerging countries centered on Asia, the convenience store

market is in phase two of development. In countries where consumer
spending is forecast to increase accompanying economic growth, the
retail sector are also expected to develop. It is in these
promising markets where a polished business model for convenience
stores originating in Japan can gain a foothold and allow
FamilyMart to grow. (FamilyMart annual report, 2015).

Local Literature

7-Eleven is the largest convenience store chain in the country. It

is run by the Philippine Seven Corporation (PSC). Its first store
located in Valenzuela City opened in 1948. Its branches are now
approximately 1400. Branches of Ministop operated by the Robinsons

Convenience Stores Inc.; and Family Mart operated and franchised

by the joint partnership of Ayala Corporation and Rustans which
are one of the largest shopping mall operators in the Philippines.

“We anticipate this trend in the convenience store segment to

persist in the advent of past-paced and more demanding lifestyles
of consumers” said Lourder Deocareza, the new business development
head for Kantar World panel.

Based on Nielsen’s shopper trends report, as cities and urban

centers in the Philippine countries to expand in the next 10 year,
convenience - driven lifestyle will wield a strong influence on
Filipinos shopping habits and way of life.

“This is becoming a precious commodity and to cope, consumers are

looking and willing to spend for products and service which provide
convenience” Navalta said a Nielsen’s shopper insights leader in
the Philippines.

Among retail channels, convenience stores saw the most rapid

expansion at 8%, with a store count of 2,900 compared to about
1,000 stores in 2011, Nielsen reported.

There a growing number of convenience stores, following their

rising popularity among consumers. Key players like 7-Eleven and
Ministop which have one to two check-out counters and are
operational 24 hours a day have stimulated this solid growth as
they have started to expand their footprint into the provinces .An
Maybank ATR Kim Eng titled Asean corporate insight reported that
Philippine Seven Corporation of 7-Eleven, would continue to be the
leader in the industry 1282 outlets that delivered P17.1 million
revenues and P20.6 billion sales last year (2015).

According to the Press release of the county’s largest convenience

store operator, Philippine Seven Corporation grew its net profit
last year by 27.9 percent to P873.3 million on the back of improved
operating margin and continued store expansion. For year 2015, PSC
- The local license of 7-Eleven Convenience Stores in the
Philippines will increase its capital expenditure budget by more
than 50 percent to 3 billion to support its accelerated store
expansion strategy.

The improved financial performance was attributed to the increase

in sales of all corporate and franchise- operated store, which
posted growth of 19.3 percent to P20.6 billion at end 2014 compare
to the previous year. Overall, PSC opened 286 new stores and closed
down 13 stores last year. Ministop which operates 24 hours and
seven days a week, was brought to the Philippines by Robinsons
Retail Holdings,Inc. in partnership with Ministop Japan and
Mitsubishi Corporation. Its goal was to answer the needs of
Filipinos for quality products they can get on the go.

Fourteen years later, Ministop has served millions of Filipinos as

it continues to expand its network of stores all over the metro,
having recently celebrated the opening of its 400th store at the
Trion Towers in Bonifacio Global City. 24 hour chain is committed
to ensuring fast and efficient service at all times in efforts to
provide affordable food and Beverage choices to its customer.

Local Study

A study conducted by Kantar World panel leader in consumer

knowledge and insights based on consumer panels shows a 45%
increase in convenience store purchase from January 2014 to January
2015. Kantar world panel traced the shopping behavior of 3,000
Filipinos homes in urban and rural areas across the country.
Findings show that from 16.1% in 2014, 18.5% homes are now buying
in convenience stores with one to two check-out counters and are
optional 24 hours a day like 7- Eleven and Ministop.

Convenience store channel is the fastest growing retail channel in

the Philippines at 45% followed by direct sales at 31% and drug
stores at 11%.
A majority of convenience store buyers are from the National
Capital Region, South Luzon, and Mindanao, from classes ABC and
Urban households that are typically comprised older homes with
residents aged 13 and above. (Rappler.com, 2015)

“The convenience store sector will mirror the consumer landscape

in the next few years as the country enjoys more economic
development” said Tara Prabhakar a TNS Asia Pacific Managing
Director of Retail and Shopper.

“The consumer landscape is changing. About 70 percent of the

Philippines will be urbanized by next year. The cost of doing
business has actually gone up so it makes more economical sense to
look smaller (store) format,” Prabhakar shared, adding that as
more people go to the cities to work and live, there will be a
bigger market for convenience stores. (Manila Bulletin, 2014)

The market share of convenience store was rise to 0.3% from 0.2%
in 2014. Registering the highest compared traditional (+2%) growth
and modern trade channel (-2%) while Filipinos spend most for food
purchases, the personal care category experienced the fastest
growth at 2.5%. The study further shows that top 4 food purchases
remain the same with ice cream, total milk, snacks and alcoholic
beverages.

According to Sakolnakorn, T. 2013 Violence in the lower south of

Thailand has happened for more than 8 years, and it has affected
the lives of local people; there is economic decline and many
businesses are falling. The objective of this study is to analyze
the management problems of convenience stores in lower-south
Thailand and to study the management strategies of convenience
stores for survival in this violent situation. We conducted in-
depth interviews with 55 local owners of convenience stores in the
towns of the Pattani, Yala, and Narathiwat provinces. We selected
the sample by convenience sampling and purposive sampling
technique.

According to Keenan Jefferyartis, A college student’s budget is

near-impossible to manage. Between having to pay for food, school
supplies, events, and everything in between, some college students
watch their allowance slowly trickle away as the week rolls on by.
As students become hard-pressed for cash, they search for easier
ways to find their daily necessities. And that’s where convenience
stores come in. These havens for college students are affordable
and easily-accessed shops where everything students might need is
sold at reasonable prices. Everything from cheap snacks to hot
meals can be found in these convenience stores. But among the many
similar stores along Taft Avenue, which is really the most
convenient to go to? Taking on this challenge, we decided to
compare two of the most famous of these stores in the hopes of
deciding which convenience store reigns supreme. Is it 7-Eleven,
at the foot of One Archer’s Place? or Ministop, at the base of
EGI.

According to Artis, K. and Tan, W., 2014, the writers realize that
neither store is a clear cut above the other. 7-Eleven can boast
about selling fruits and hot brewed coffee, not to mention cheaper
rice meals. It seems like you must pay more, though, if you want
a meal that will actually fill you up. On the other hand, Ministop
has the edge in terms of cheaper donuts and more variety with their
meals, as well as paying less for two pieces of fried chicken, a
college favorite. When it comes to the myriad of snacks and drinks
being sold, the differences seem marginal. The writers agree,
though, that despite their differences, both stores fulfill their
role as quick and easy stops for students in the area. Whether
it’s a midnight snack you’re looking for, or perhaps a hot meal,
or even last minute-school supplies, these convenient stores are
open 24/7, ready to serve.

Foreign Study

Based on the thesis presented by Lee Wei Ting of Malaysia, as

the lifestyle of the Malaysian consumers becomes more hectic, they
demanding more convenience-oriented retailing to the benefit of
convenience stores. Malaysians are increasingly switching their
spending patterns from traditional grocery stores to modern
convenience stores.

Convenience stores registered strong growth, largely due to

vigorous expansion of in terms of outlet by chained and independent
players, coupled with promotions by chained convenience store
operators. According to Euromonitor (2009), the sales in
convenience stores grew 168 percent between 2002 and 2007, and it
has predicted that it will grow another 55.2 percent in the
following five years.

According to Bianchi, (2009), convenience stores (C-stores)

constitute a successful formal in developed market such as the
U.S, Canada and Japan. As an example, 7-Eleven became the largest
worldwide convenience store chain in March 2007, operating 34,000
stores in 17 countries, even larger than the world wide number of
Mcdonald’s store. Only a few studies of convenience store (c-
stores) are found in the literature and they have all been held in
a developed market context (Lassk, 2000; Rapp and Islam, 2006;
Sparks, 2000; Suiton anf Rafaeli 1988; Welsh et al., 2003;
Worthington, 1989) These studies show that convenience store
attributes for consumers are location, product assortment,
knowledge of sales associates, speed check out, service, store
layout, and parking.

Most of the studies focus on the convenience orientation of

consumers ( Anderson, 1972,1971 ; Brown,1989 ; Bucklin, 1963 ;
Gross and Sheth, 1989 ; Kellie, 1958 ; Morganosky, 1986 ; Nickols
and Fox, 1983 ; Reily, 1982 ; Yale and Venkatesh 1986 ) . These
studies view convenience as anything that helps the consumer to
reduce its time and effort during their shopping process, but are
mostly focus on the product market. In a retailing context,
although , there is no one clear definition of a convenience store
for the purpose of these paper we will define it as a small,
centrally located store, featuring ease of access, late - night
hours, and a limited line of merchandise and dot charges above -
average process compared to a large supermarkets that generates
large volume sales. (Bianchi, 2009)

According to Wrigley, N. and Wood, S.,2018 The impact of the global

economic crisis, together with the ‘digital’ storm of unrelenting
growth in online retail and its complex substitution and
modification effects, had significant implications for UK town
centers and high streets. Dramatically increased vacancy rates
within town centers have focused policy debate on the drivers of
town centers’ vitality and viability in the context of profound
technological and consumer culture shifts. As consumers turned
away from ‘big basket’ one-stop weekly shops at large out-of-
center stores and began shopping ‘little and often’ using a
fragmented range of alternatives, the convenience store sector,
significantly altered by corporate entry, grew rapidly. However,
there is surprisingly little empirical evidence on the impacts of
these new-generation corporate convenience stores on town center
and communities.

According to Ruff, R. and Akhund, A., 2016 Local food environments

can influence the diet and health of individuals through food
availability, proximity to retail stores, pricing, and promotion.
This study focused on how small convenience stores, known in New
York City as bodegas, influence resident shopping behavior and the
food environment. Small convenience stores in New York City are an
easily accessible source of foods and beverages. Bodegas may be
suitable for interventions designed to improve food choice and
diet.
 CHAPTER 3
Research Methodology
RESEARCH DESIGN

The descriptive method of research was used in this study .

This is designed to investigate and to gather information.

Descriptive survey method seeks to ascertain respondents

experiences on a specified subject. It aims to describe the

marketability of selected convenience store near Manuel A. Roxas

High School.

Population and Sampling

The respondents are total of 10 random customers from 7eleven

and Ministop.

RESPONDENTS OF THE STUDY

The respondents of this study include 10 customers, fifty

percent are from 7-Eleven and the remaining 50 percent are from

Ministop convenience store that near in Manuel A Roxas High School.

The Respondents must be ages 13 years old and above.

THE RESEARCH INSTRUMENT

The researchers instrument have one set of questionnaire.

This set is for the customers of both 7-Eleven and Ministop

convenience store open 24 hours and 7 days that is chosen to

conduct. It is consist of several questions involve the customer’s

perception about the marketability of convenience store in terms

of their price, location and service rendered by the crews.