Competitor Analysis As for competitors, C-store’s main rivals are the existing competitors and other potential competitors of convenience store market. In Guangzhou, 7-Eleven, Ok and C-store are the three pillars of convenience stores. So our project will focus on the existing competitors 7-Eleven and OK convenience stores to analyze.
In this part, I am going to identify the distinctive characteristics and values of 7-Eleven and OK with the theory of brand triangle, to see what make them a brand. And then I will analyze the scale and goals of 7-Eleven and OK convenience stores with the theory of SWOT and 4P, to see how they manage theirs business. • Corporate Brand Analysis |Image |Identity |Positioning | |7-Eleven |The world’s largest operator, |commodities including 7-select, |Located in 18 countries, private | | |franchisor and licensor of convenience|food, drinks, play, cash and cards|label products, | | |stores |and private label products, like |Fresh, high-quality products at an | | |Landmark of city life, creative and |Slurpee |everyday fair price | | |updated |Powerful international brand |Speedy transactions | | |special corporate culture | |Clean and friendly | |Circle-K |Successful in Hong Kong |Represent the Instant culture |Variety service covers many spectrum| | |To be the best and most convenient |Offering distinctive products and |Mid-priced | | |place to shop and work |fast-food |Stores with large space | | |Pop culture |quality branded fuels |Comfortable and clean environment | |C-store |The famous and leading brand of |Offering popular products and |Mainly focus on Chinese market | | |convenience stores in China |home-made products |Low price strategy | | |Active, fresh, friendly |Like fresh bakery, tomatoes |Local brand | | |Native culture |kitchen |Popular consumption | Chart4. The Brand Triangle Analysis As the chart shown us, 7-Eleven, as the world’s largest operator, franchisor and licensor of convenience stores, is the landmark of city life. 7-Eleven enjoys great reputation and has created more than 39,000 outlets with its success and the power of the brand. The products of 7-Eleven cover the spectrum from food to drinks, cards, play, periodicals and 7-select. More attractively, 7-Eleven offers private label products, like Slurpee, and a rather wide array of warm food, including traditional items like steamed, filled bun. With its wide variety of products, good services and updated image, 7-Eleven easily earn the eyeball of the customers.
Compared to 7-Eleven, Circle K has fewer branches than it. But Circle K also has been one of the most popular and successful operators of convenience stores in Guangzhou. Circle K is well known around the world for offering busy consumers a wide variety of quality products and services in a fast, friendly, and clean environment. In addition, according to the culture and the living standard of Guangzhou, Circle K creatively launched new services, like offering fresh bread, coffee and so forth, which attract more and more old customers to buy things here. Its famous brand value and particular adjustment to the changing market make itself a success.
As for C-Store, obviously, the brand identity has less power than 7-Eleven and Circle K since it mainly focuses on Chinese market. C-Store started fairly late, but with its popularity consumption and low-priced strategy, it has grown rapidly in recent years, being the leading brand of convenience store in China. C-Store put themselves into customer’s shoes to see what customers need and what could make it better. Although the variety of C-Store’s products has left much to 7-Eleven and Circle K, its home-made products and popularity products can be found a ready market in our country, like fresh bakery and tomatoes kitchen, also attract customers.
Corporate brands can increase the company’s visibility, recognition and reputation in ways. The brands add economic value to the variety of products and services. When the brand works, it expresses the values and sources of desire that attract customers. The followed charts have fully demonstrated this point. [pic] Chart4. 2 The Popularity of Convenience Stores Our survey Chart4. 2 has shown that 7-Eleven own 70% popularity, Circle K enjoys 14% popularity while C-Store only has 9% popularity. [pic] Chart4. 3 The Consumption Rate of Convenience Stores Our survey Chart4. 3 has shown that 66% people would like to buy things in 7-Eleven, 17% people choose Circle K while only 8% people firstly choose C-Store.
Obviously, compared with other convenience stores of this kind, 7-Eleven is well known by customers and the first choice of most customers. 7-Eleven brands help its products and services received much credit and support from a wide range of consumers. There are two reasons mainly attribute to this result. Firstly, 7-Eleven pay more attention to its brand. Its products and services enjoy great reputation of their high quality and best value of money and make a different to others. Secondly, 7-Eleven has overcome the limits to location. It can be seen all the Guangzhou over. On the contrary, the investigation showed up the brand of C-Store has yielded little result. Facing with fierce competition, C-Store should pay more attention to develop and enhance its brand. • SWOT Analysis |7-Eleven |Circle k(OK) |C-Store | |Strength |As the world’s biggest convenience |Its various products and its |It creates a nation brand which| | |store, it is the most competitive brand|buffet-style service meet the youth |mainly focuses on Chinese | | |in the world, which has lured most |requirement. |market to suit local people’s | | |customers. |OK launch a lot of new, fashionable, |flavor. | | |7-Eleven has great innovative |special goods to suit the youth. |The hot foods chose by | | |capabilities.
Its private label |It enjoys great reputation and is |customers themselves, which | | |products and extra services are |competitive brand in the retail |reduce the volume of work and | | |attractive and updated. |market. |let customers have first hand | | |It has 70% the first highest market |Its position is so high that others |on experience. | | |shares in Guangzhou. |can not learn their strategy. |Low-priced strategy suit | | |Its convenience (located here and | |popularity. | |there), unique flavors and fair price | | | | |made it famous. | | | |Weak |It is too many stores to control. |The price is higher than other |Its brand is scaled-down | | |It is small in area and merchandise is |convenience stores. |version of international brand. | | |displayed limitedly |Its brand is a slightly scaled-down |Products and services are not | | |The price is higher than other |version of 7-Eleven. |variety enough. | | |convenience stores. | | |Opportunity |7-Eleven meets the youth requirements, |As the famous brand in international |With the increasingly | | |which is a big market. |market, it attracts many customers. |development, it has great | | |Its brand contributes greatly to the |The instant cultures gradually accept|potential in the market. | | |sale of goods. |by the customers. They would not work|China’s WTO accession provides | | |With the improvement of living |so hard for market shares. They aimed|a good platform to enter | | |standard, the market will row |at the target market. |international market. | | |steadily. | | | |Threat |The fierce competition in the retail |The habit of consumption was burnt |Its name recognition is poor. | | |market, it mainly threat by OK, C-Store|into customers. The brand 7-11 |Many people still don’t know | | |and others, which grow increasingly. |affects the customers. |what it is. | | | |Fierce competition. |Immature. | Chart4. 4 The SWOT Analysis of Convenience Stores
As the above analysis, from brand to price, from market position to market share, from company culture to social culture… we can see the fierce competition among 7-Eleven, Circle K and C-Store. Although 7-Eleven, Ok and C-store are the three pillars of convenience stores in Guangzhou, C-store still has a long way to catch up with 7-Eleven and Circle K. C-store is the leading brand in Chinese retail market, but 7-Eleven and Circle K enjoy great reputation in the world. Their famous brand and good quality of products and services help them received much credit and support from a wide range of customers. With their profound cultural background and by buying other famous company, their gratifying results have built unique brand images in customers’ heart.
In addition, with a quick, critical eye, positioning themselves all aspects of development, 7-Eleven and Circle K retain a pole position in retail market. In addition, 7-Eleven has the service of valuing the cards. It is important and convenient to Guangzhou people. It is one of the most obvious reasons why so many people choose 7-Eleven as their first choice. However, C-store has grown at a very rapid rate. So it has a great potential to compete with them. If C-store wants to survive and succeed in Guangzhou retail market, it should chart a new course and find a new niche for itself, for example, by adjusting strategies, creating new products and so forth.