Segmentation Strategy
Segmentation Strategy
Segmentation Strategy
Segmentation Strategy
Demographic Segmentation
Age gender lifecycle and occupation
Psychographic Segmentation
Social Class and Lifestyle 7-Eleven focuses on segments of middle-upper and upper social classes
Geographic Segmentation
Focus of 7-Eleven remains on the urban part of the population
Behavioral Segmentation
Personality, usage frequency and degree of loyalty of consumers
Market Segmentation
Mass marketing
7-Eleven uses demographic segmentation strategy with age as the parameter. The main target segments
are adults and youth. They also target mainly the working people or families whom have no time to go to
supermarket to buy groceries. They take children into consideration because the children are more
attract to the freebies and candies. The youth also prefer convenient store to get their prepaid reload or
withdraw money. The busy kinds of people choose 7-Eleven because it is convenient to get anything and
also it is easy to find. 7eleven’s biggest target market is busy shopped at an everyday store. It has tailored
its products and services like speedy transaction to meet the needs of these shoppers.
The company’s other target markets are coffee the beverage lovers. That’s why it has put much emphasis
into making some of the finest fresh-brewed coffee, sloppy and big gulp beverages which it is well known
for around the world. The company also offers smart snacks and to go meals to better target busy people
in fast paced cities or countries. Its customers mostly are male (60-70%) , age 18 to 44 years old . In
addition the company targets low income workers and students as their secondary market, which is why
7-eleven opens 24 hours, provides games and fun at low prices. Thus the company serves a more diverse
market than most convenience stores. As for the teenagers or students, they love the prepaid phone
cards because they make them more independent.
7eleven basically relies there location strategy by analyzing their market segmentation wherein 7 11
focuses on mass marketing and the dongalo branch of 7 11 is located in the places within/near
establishments such as beauty salons, schools, police stations and even along fast food chains. It also
established branches near residential areas such as condominiums and subdivisions, loading zone
wherein there is stoplight, bridge crossing and usually located in intersection where many people pass by
and rushing whether to go to their offices or to their homes. Thus, most of their customers composed of
office employees, condominium tenants, and their household, students from elementary to college,
passersby specially commuters and families living nearby the branch that look for a convenient and
instant store to buy common commodities.
In the convenience store industry like 7 Eleven, what matters a lot are the location and the customer
service. Even stoplights and foot bridges are important considerations in getting the location of the
convenience store. These landmarks ensure that there is constant pedestrian traffic that can potentially
be customers to the convenience store. Customer service greatly affects the “convenience” that is being
offered by the store
6. Segmentation of 7-Eleven
7-Eleven marketing strategy uses different means of segmentation to reach an increase in market
penetration.
6.1. Demographic segmentation
6.1.1. Age
7-Eleven has consumers of age groups
20-45 years
45-60 years
6.1.2. Gender
7-Eleven has a broad product portfolio for both males and females
6.1.3. Life-cycle stage
Consumers for 7-Eleven, according to the marketing strategy, are in the following various life
cycle stages:
Single students
Single graduates
Single people living at home/not living at home
Young couples without children
Married couples with one to four children – all at home
Married couples with one or two children in college
Old married couples with an empty nest
6.1.4. Occupation
The marketing strategy devises the following occupations for 7-Eleven consumers:
Professionals
Students
House makers
6.2. Psychographic segmentation
6.2.1. Social class
7-Eleven has operations spread across the western developed countries such as America, the
united kingdom, and the Netherlands
It also has operations in emerging markets such as Brazil, India, and China
6.3.2. Density
The consumer segments for 7-Eleven are regular and frequent users of the product
6.4.3. Benefits sought
7-Eleven has created, developed, and maintained a brand that satisfies all consumers under the
undifferentiated marketing strategy and mass marketing
No compromise on quality has been made in the broad product portfolio
To ensure the influence of a single marketing strategy, the 7-Eleven has also adopted a consumer-
centric approach in its overall marketing strategy and operations as well
This was used for targeting strategy as well as for maintaining growth
A process strategy is a documentation approach that helps a business achieve their goals and transforms
resources into goods and services. In this strategy it defines a specific process, explores its goals and
provides detail on how to bring the desired outcome.
The major processes that are included in process strategy are process structure which determines how
processes are designed relative to the kinds of resources needed while customer involvement are the ways
in which customers become part of the process.
So the process strategies that 7 11 used are the combination of product focus strategy and mass
customisation strategy.
For 7 11 to keep up with the competition since there are many convenience stores that are also open they
keep up with it by updating their goods based on market success rates. They produce, improve and
enhance the existing products rather than focusing on new ones. So if we compare Walter mart
Convenience Store to 7 11, 7 11 have ready to eat food like sandwiches, foods for lunch and etc, you can
also buy snacks like donuts, siopao, and etc that other convenience stores do not have. So while
producing and enhancing their products, 7 11 also uses mass customisation strategy. All of us know that
slurpee is the popular product of 7 11 aside from ready to eat foods. So to have the slurpee, 7 11 uses
specific machine called slurpee machine to make it. So if we look in to it, 7 11 focuses on mass marketing
which helps the business to influence all segments mentioned in segmentation strategy. And also through
the help of segmentation strategy, 7 11 have enough information about the consumers and they can
improve certain products based on the consumers buying behavior and reviews.