International Business

Project Part 3
Lizbeth Valdez
Angelica Vidal
Chantel Navy
Mellisa Andrade
Essence Taylor

International Business Part 3

Product/Services/Retail
Strategy & Description
The Netherlands is known to have a very active population with a heavy nightlife presence. The Dutch do not spend money on unnecessary products, meaning we must cater to things that they will need on a day-to-day and night-to-night basis. They are more health conscious than the average American, so we will not implement the same over-the-counter fast foods as in America. The Netherlands has their version of fast food, Frikandel and Bitterballen which are essentially meat based fried snacks. Also fried cheese pastries, instead of pizza, fried chicken and hot dogs. The Dutch also love eating french fries with mayonnaise and Turkish foods, like kebabs and rolled up pizzas. Additionally we will include fresh fruits, vegetables and the every-day necessities, for example bread, milk, cheese, eggs and cold cuts are very popular every-day foods in The Netherlands.

In regards to pharmaceuticals, they are not as prominently used as they are in the US, however the need for general over-the-counter medications are still there. Products like Paracetamol, Advil and Condoms are commonly bought regularly by the Dutch consumer. Therefore, the general pharmacy needs will be sold alongside general health care products like tooth-paste, deodorant, tooth brushes, shampoo and conditioner etc. This assortment of merchandise meets the needs of the average Dutch consumer on a somewhat daily bases. The combination of food, snacks and general health care is rare to find in the Netherlands, giving us a competitive edge. Dutch people are known to be very simplistic, meaning it is important for the 7-Eleven to be quick, easy and necessary for the locals

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Dutch people are known to be social and excessive smokers, meaning there will be a behind the counter section that offers a large assortment of cigarettes and lighters. Additionally, the counter will have the common snacks, like chips, chocolate bars and gum. There will also be a very section of candy including their popular brands like Haribo, Kinder, Katja, Venco, RedBrand, De Ruijter and Verkade.

Brand Positioning including the visual description and image

* New logo * Store layout will be very minimalistic * Store layout will only follow the 7-Eleven logo color scheme, rather than a variation like many other 7-Eleven locations * Clean store, with products easier to find * Getting away from the cheap feel of a “typical convenient store” * Sales associates will look professional and well put-together * Self checkout option for those who are doing an in-and-out shop or who are buying only a few items * 7-Eleven will focus on being a healthier convenient store since people in The Netherlands are more health conscious * Brand image will be convenient, good quality and one-stop-shop

Target Customer - describe life, income, spending habits of your new customer

* Males and females * Ages 16-44 * Beverage lovers * Millennials * Spends a lot of time out/Active lifestyles/Healthy/Fit * High School students, college students, young professionals, professionals * Daily shoppers, buying only necessities * Practical Spenders/Do not spend excessively * Bike riders, making it easy for them to access stores, but can not buy in huge bulk

Local and Global Pricing Strategy; Promotion Strategy

Since the Dutch do not like to spend money on things they do not need, it would be beneficial to keep the prices at the 7-Eleven very cheap and affordable, like it is here in the US. The cheaper the price, the more inclined the customers will be to buy the products frequently. There are few competitors in the Netherlands because convenience stores are not very common there, and if they are they do not have a broad mix of merchandise, but more specialized to the type of retailer. Promotionally, it would be strategic to advertise 7-Eleven as the “24 hour convenience store” because 24 hour retailers are rare to nonexistent in the Netherlands. The mere fact that the concept of 7-Eleven is so new and practical will be a strong promotion strategy.
Although the Dutch like things cheap, they also like things of quality and do not like the idea of a retailer being “trashy” or “cheap.” That is why it is important for 7-Eleven to have a minimalistic and aesthetically pleasing merchandise assortment and packaging.

Intellectual property protections and product liability issues

Since 7-Eleven is a chain store, the copyrights, patents, trademarks and trade secrets are protected by the company, meaning that the owner of the 7-Eleven store overseas will need to follow the rules in not changing or claiming to own any of those property protections. Doing this will not be difficult, however 7-Eleven will need to agree to change how they run the business in the Netherlands, simply because the mind-set is very different to that of the Americans and the working environment must adapt to the culture. The visual logo will remain the same, and the overall concept of the store will remain the same, but management strategies will need to be changed to accommodate the dutch workers and customers.
Product liability will also pose minimal to no issues when bringing 7-Eleven to the Netherlands because the merchandise can be legally sold in the Netherlands. However, the 7-Eleven in the Netherlands will have conceptually the same products, but they will be locally sourced and offering the Dutch version of products, making it very difficult to create liability issues.

Competitive Analysis As 7-Eleven looks to expand in the Netherlands there must be a competitive analysis of major competitors within different sectors of the Netherlands. Location can be key in the start up of a new business especially globally. For this reason a look into competitors both locally and globally have been analyzed. Within the Netherlands a well-known smaller version of an already mass supermarket, SPAR express continues to dominate throughout Europe and Australia. Key factors that have made SPAR express so successful are as follows. Every store is independently owned which gives the storeowner the liberty to make decisions towards benefits for the store locally. All SPAR express store must continue to meet world-class standards but have the possibility of tailoring products and produce to the locals. The similarity within the SPAR express format to 7-Eleven is working to offer customers a range of products and the convenience of long operating hours. Although the main difference is SPAR express store much like the supermarkets works to provide their customers with fresh produce, obtained locally. SPAR express understands their target market maybe in a rush but that they are purchasing quality products and produce while going about their day. Tesco express the quick stop version of the supermarket chain did not have a prominent stature in the United States but globally has been dominating. The Tesco Company has recently changed their core purpose and value in order to better accommodate today’s society. They have chosen to acknowledge that in order to do business it has to do with more than functionality there needs to be the progression in work, understanding of values, and taking responsibility in what is left behind through a business legacy. As for values Tesco has demonstrated putting their customers and their needs first. Making sure to treat others how they want to be treated whether it is a co-worker, customer, or investor supporting each other for the work done together that will later lead them into opportunities. Their main core value is “We use our scale for good” this statement dictates the idea of maximizing the brand image whether it is through offering new jobs to millions, reducing food waste, as well as providing affordable quality products and produce. Tesco uses this strategy within their supermarkets and convenience store to show an impact as a whole through this they build brand awareness and loyalty. Within the city of Tokyo there is another convenience store compared to 7-Eleven. Lawson has over 11,000 locations all of which are solar powered. The stores also partners with popular anime series in an otaku-courting collaboration where anime fans can meet each other and perform a courtship outside the virtual world. This represents Lawson’s store catering to a specific audience, which will ultimately generate major brand interest and sales. The Lawson’s Company has also taken a new approach in what is truly important to better the business; they have started within their corporate in “ Creating Happiness and Harmony in Our Communities.” They then address their involvement in recognizing the changes throughout society and adapting as a business. As a company their emphasis on community is explained through their expansion via export with oversea markets. Lastly in the States, Famima, which is derived from the Asian-based chain FamilyMart has created a competitive edge for 7-Eleven. Famima has created a new appearance for the average convenience store with a European styling. The store makes sure to offer fresh produce, prepared meals for on the go, and the option to have products delivered. Famima contains a wide selection of merchandise from personal care necessities, pre-prepped meals, snacks, beverages, fresh brewed coffee, magazines, greeting cards, and an ATM located inside every Famima store. The Famima franchise works to interact with their customers and offer the best “ hospitality, quality, trust, and security.” Taking competitors approach into consideration there is a responsibility to establish a fundamental for the 7-Eleven company expansion into Northern Europe. Locating an opening of three stores in three major cities in the Netherlands will allow an observation of how business is handled with those first three accessible stores. Our major store location, which will be kept with a close eye, is the Amsterdam store, capturing the essence of both the city in the décor as well as offering premium service to locals and tourists. 7-Eleven has been built around customer service and noted for running 24-hours a day seven days week, although closed on national holidays, taking note of this 7-Eleven stores will apply this towards the Dutch culture as well. In continuation offering high-quality products and freshly picked produce will be another task for Dutch 7-Eleven locations, because recognizing our customers wants and needs will further brand loyalty in the new market. As for marketing, advertising, and promotions currently as a company 7-Eleven has mastered campaigns. With bilingual labeling, billboards, direct deals and offering in-store, and facilitated navigation of the website. Which is important for technologically accelerated society; direct answers via the internet can reduce any confusion or difficulties before the customers enters a 7-Eleven store. Another interactive approach is 7-Eleven’s promotions getting the customers to come in and present a slip, token, or certificate for the outcome of a free product only impacts interest and demand. In the Netherlands and relatively most Northern European countries have progressed in the idea of advertising constantly moving forward on how to make the marketing dialect an experience for the target market. 7-Eleven will take this in perspective for communication of offerings within the store, building on social media, providing the key to convenience through new technology that will make the purchasing experience swift, enriching, and productive.

Marketing and Promotion

Advertising will be used in a very extreme manner. 7/11 is something people already have heard or know. The citizens of Amsterdam that travel to the United States have heard of 7/11. Advertisement will be displayed on buildings, in newspapers, and all over the Internet. The launch of 7/11 is getting very tech savvy in this advertising plan to launch the new and exciting 7/11 in Amsterdam. 7/11 will have commercials on local television channels to attract customers, and let them know they can have a hot dog or chips at any time they desire.
The Internet is playing the biggest role in this because we are launching our new 7/11 app just for this country, and we will be raffling prizes, sending coupons, and just getting a new feel, and a different interaction with our customers. We have been mobile, and attracting our customers for months since we already have our Facebook, Twitter, and Instagram accounts open. We will really take the mobile advertising, and social media to the highest point because we want to innovate and make 7/11 a place they can go and get their snacks, and feel at home.

Our mobile strategies will consist of having a 7/11 app and we will send notifications every time we get a new product in store or when we a discount. We will also have a loyalty program.
Our prices are going to be pretty similar to the ones in the United States prices that range from .99 cents to 7$.

We are pleased to announce that we will have different Dutch snacks such as “Poffertjes” they are small fluffy pancakes made with yeast and buckwheat flour.

We will also have “Oliebollen” during the holidays this snack is a Dutch traditional during New Years they are deep fried balls of dough that are similar in taste to a cake doughnut.

The day 7/11 opens we will have a big celebration in every retail location we will have giveaways for the first 100 people that show up to the event. We will have local radio and news, shop up to our event we will also have guest celebrity appearances. It is just something we are really excited about, and cannot wait for this big event and launch of 7/11 in Amsterdam.

Foreign Market Entry Strategy

7-Eleven has set itself up as prime example for endorsing in a franchise. Offering various ways into applying for a franchise whether the franchisee is an existing owner or a new entrepreneur looking to further their knowledge and business ethics. In the case of the Netherland locations the business conversion format will be applied, here current convenience store owners can increase their profitable by investing the 7-Eleven brand name. This would be a great a approach due to the fact that by acquiring local owners who have worked with the residents and have background experience can better relate when it comes to customer offering. They will understand the customer what they want, look for, and purchasing habits that can drive the business as well as the owner in a progressive direction. As for trade and the exporting of goods 7-Eleven will work to remain local with products and produce they feature in the stores. Primarily due to the fact that in partnership with local business owners they will provide what will be required, restocked, and demanded for each location specifically. Although the objective remains to continue holding popular products such as Slurpee’s a signature go to ice blended beverage. The idea is to have products outsourced globally from different companies whether it is with Hershey chocolates, which would be transported from the states. It is a matter of working with the community by doing business with sellers on products customers find not as foreign to them, and prepped meals that are nationally well known. The new stores can launch themselves with product offerings that are not foreseeable in being purchased there must be a balance between what we import globally and locally. As well as it must be noted that within EU countries there is a 0 % tariff on exports to other EU countries, which allows continental brands to transport smoothly. As for foreign exchange there must be a declaration to customs and pay a VAT (value added tax) under the company name. In addition the Netherlands is avidly well- known for their business in trade with experts in the field of distribution and sales. In reference to licensing the business conversion format established and mentioned earlier has the following regulations as stated by 7-Eleven Corporate:

It will be the duty of the franchisee and our corporate management to be diligent when looking into licensing agreements, as it cannot be taken lightly. Although there are different jurisdictions in the Netherlands than in the States it is important to ensure the customers safety and the store owners duty is clarified not tampered with if so there can be actions taken. Licensing will also be a voucher on trademark, logos, website management, advertising, and transportation of goods in the prospect of covering the basis of what is required in opening and running a business in the Netherlands. 7-Eleven has done well in remaining an exemplary corporation on how closely it runs it’s stores, now it is a matter of enticing this ethic in the Dutch culture, while keeping an open mind of the Dutch culture. The strategy behind the size of market entry is starting small and simple easing the 7-Eleven franchise into the minds of the Dutch customer. There will three major stores to as startups, in popular cities Amsterdam, Rotterdam, and La Hague. Within these major cities the goal is to stay alter in communication with store owners as to what can be improved, and removed so that in future store openings we are prepared. Product offerings will be accounted for convenience and relevance to the specific locations. Although each store will be categorized with personal care products, beverages, meals, fresh produce, baked goods, outdoor accessories, and more in correspondence to usage in the demographic area. Leading into market share goals, within a vastly growing economy like the Netherlands, and the expansion of 20 stores in three years the 7-Eleven company looks to achieve 2.5 million in sales by 2020. Product sourcing is an area that must be done carefully whether it acquiring from partnering companies such as PMA fresh connections or local farmer’s markets. To opting out for name brand products in different categories of food. Reaching out to local makers of outer gear, coffee mugs, or branching to vendors who provide an assortment of products. The idea is to continue with the sellers’ known to 7-Eleven, collaborate through boarders, and support local entrepreneurs. Moving in a more sustainable approach the idea for transportation will be making sure our products are routed securely while practicing energy efficiency and environmental mechanism that will represent our objective for a better tomorrow in the long run. Doing this through transportation will be the beginning, and entitle a leadership on achievable goals for other layers to the 7-Eleven company. Furthermore this launches the idea of organization and staffing strategies. Will work to accommodate our Dutch employees in health benefits, insurance, vacation and sick days’ pay. Creating equality has been highlighted as a key the manner of business ethics for the Dutch, so making our employees aware of working together to achieve a common goal and supporting one another is a principal in the business ethic. Knowingly forming an order in a step-by-step process when carrying out business objectives, trips, and other activities in relation to the company will be highly noted by the Dutch as they work better when given a strategic direction. Meeting and business decision go hand in hand it will be requirement to hold a monthly meeting as this way the employees will see their suggestions and comments are being acknowledged. There will be an implementation of grounds to follow when proceeding with business decisions and negotiations. Employees will be given appropriate lunch breaks as it seen as a necessity in the Dutch culture, although no food should be eaten while on the job. Dress codes must be followed, not a formal attire more so kaki pants and polo shirt commonly associated with the attire as well as a name badge. Most importantly is noted to be respectful, shake hands, and stating one’s name will create an impact in the fortune for further business endeavors as well as holding current employees trust. Lastly it is often said “time is money” in the Netherlands for this reason there will be not time wastes or set aside to operate inappropriate conduct. There will be a weekly, and monthly schedule for each store, monthly time sheet, sales sheet, and records of transactions. Order, time, and reliability as a company that works together can foresee our core purpose and values.

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