• Global Market Strategy
• OXXO and its entrance to the Developing World
• Some recommendations
3.- 7 Eleven
• Success keys
• 7 Eleven : A comparison between the Develop and the Developing world
People schedules regarding not only their professional activities but also therush in which they are obliged to live in their personal lives, a typical road trip or a simply craving are some reasons why convenience stores are seem today as a major business opportunity.
This kind of business model consists of stores that offer service 24 hours, 7 days a week and have many branded products commonly consumed. The variety usually consists in any kind of product that representsa small necessity and can be obtained quickly. Lately, convenient stores have also adapted new commercial and marketing techniques that include the quick payment of some services such as: telephone, water, electricity and in some of them you can even pay for a plain or bus tickets.
This strategy of course, is focused on offering commodity to the consumer. The accessibility, proximity andconvenience of schedules are aspects that give this business model a strong market niche. The intention is to have a large amount of consumers that frequent these establishments in order to meet immediate needs without spending too much of their time doing it.
Location strategy is the most important strategy in these stores. Sites where they are mainly located are close to residential areas and gasstations. This gives really quick access to them and meets the goal of becoming the first choice in the consumer’s mind.
This business model has several success stories that have managed to position themselves as brands leaders in this sector, not only in a domestic market but worldwide as well.
The two companies that I will try to approach in order to answer question 1 from this assignment are:OXXO (Grupo FEMSA Coca Cola) as the company operating in the developing world, and 7 Eleven as the company operating in both develop and developing world.
“OXXO: REDIFINING CONVENIENCE, ONE NEIGHBORHOOD AT A TIME”
OXXO, is a chain of convenience stores from Mexico founded in Monterrey in 1977. With over 7,000 stores across Latin America it is the largest chain of this kind of store in Mexico. Itis wholly owned by the beverage company FEMSA (Fomento Económico Mexicano) wish is owned by Coca Cola. The store layout follows a pattern similar to the store 7-Eleven.
By itself, OXXO was created as a marketing plan to use company- owned stores to promote and market the Cerveceria Cuauhtémoc beer brands. What they attempt and manage to do was the creation of owned stores to promote the beerbrands within the FEMSA-Coca Cola group, sold in the traditional Market network of local wholesalers and the local supermarkets and small stores. The success of these stores was so big that the project kept growing until its presence was all over Mexico.
In 2009 it was announced that OXXO will open their first international store in Bogota, Colombia. Today Bogota counts with 7 OXXO stores and keepsgrowing.
OXXO, is the largest and most profitable convenience store chain in Latin America and the largest nationwide seller of Coca-Cola products with revenues of 53,549 million pesos per year, and Operating Income of 4,457 million pesos and 6.6 million clients per day. (FEMSA, 2010)
As a marketing strategy, OXXO wants to suit consumer’s needs offering consumers convenient services (FEMSA, 2010)such as nearby locations, 24 hour service in most cases, fast and confortable shopping experience, easy access and the ability to pay services bills. As a lifestyle, OXXO has become very important to Mexicans, who no longer visit the typical corner store but that much rather go to an OXXO, not only because its near their home but also because they can find a clean, well-structured place where...