Essay on Extended Marketing Mix of Convenience Store

1226 Words Dec 13th, 2011 5 Pages
Background of the Study Convenience stores are in demand all over the world for its unique commercial properties. They are usually open 24 hours a day, seven days a week, carrying a limited life of high turnover convenience products and are conveniently located for quick in and out shopping. These stores provide “fill-in” purchases for consumer needs. Engaging into this kind of business with the right location, pricing strategy, inventory of products, and pleasant customer approach, it can generate high profit margin that can cover up expenses upon entering the business. As today’s fast technological advancements, convenience stores faced both an opportunities and threats in its industry. Management of different stores decided to …show more content…
they also offer high quality, freshly ground coffee sales that are providing great competition for big coffee house chains like Starbucks coffee, 85C, Mr. Brown Coffee, and Dante Coffee.
In Canada and U.S., convenience store is operated by supermarkets and hypermarkets to extend their products and to gain sales in fast manner. The U.S. convenience stores industry, with nearly 145,000 stores across the country, posted $511 billion in total sales in 2009, with $328 billion in motor fuel sales. A Canadian has won in the Global Convenience Industry Award recently – winners are Scott Lombard, JTI-Macdonald Corp. and Magda Grabowski, Mac’s Convenience Stores. Since 2006 Canadians have achieved outstanding results at this international competition producing six winners (Canadian Convenience Stores Association, 2011) Convenience stores rely heavily on the point of sale. Customers’ ages and gender, as well as tomorrow’s weather forecast, are important data. Stores place all orders on-line. As the store floor sizes are limited, they have to be very careful in choosing what brands to sell. In many cases, several stores from the chain do business in neighboring areas. This strategy makes distribution to each store cheaper, as well as making multiple deliveries per day possible. Generally, food goods are delivered to each store two to five times a day from factories. Since products are

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