In recent years, there is an increasing number of large stores with rich products,
good items management, low operating
costs and good marketing strategy and so on. However, the fixed location and complex shopping steps of large stores inconvenience to the
people, the situation which led
to changes, so produced a small grocery store supermarket and living in another
format - convenience stores. The
convenience stores
with its goods and convenience were popular by people
in the world, same way in Adelaide. While mentioned convenience stores, the
most popular of convenience stores in Japan. Therefore, the AM/PM convenience
store wants to open the new convenience store in Adelaide, in order to bring
the Japanese management
idea into South Australia.
This
report aims to present the advice to the management of a company intending to
develop in Adelaide. Seven aspects can be concerned, which
are branding, product, target market, analysis of the local brand in Adelaide, location, competition and
sales strategy.
2. Name
AM/PM is a convenience store franchise chain in Japan. The
"convenience" as the most important aspect of attracts customers. AM/PM is
a success convenience store in Japan. There are many products in the store,
for example, fruit, hot dogs, condiments and cold drink at so on. All food can
ensure freshness and abundant. Moreover, AM/PM can also produce limited
specialty foods as snacks, both beautiful and delicious. It is worth mentioning that coffee is special customized
according to customer needs, and provides a lot of flavors
and sweeteners, this is unique of
the AM/PM convenience store.
Because it has the operating
characteristics of the supermarket, grocery store operating costs of the price
advantage and convenience advantages, quickly won the favor of consumers, and
thus to rapid development. (AM/PM 2011)
In relation to the
named, the AM/PM convenience store do not change the original name, because the name that
AM/PM is simple and easy to remember, it can attract customers, and its meaning is obvious that the store opening all
day, from am to pm.
3. Product
Due to the smaller shops, the most commonly used as the main necessities of life,
including general food, groceries, drinks,
cosmetics, and small drugs, tobacco, alcohol and so on, the ratio of food
accounted for 45% of all goods, 30% of goods are for daily using, and the others is about 25%.
According to the Australia Food and Drink
Report Q3 2011,
the Soft
Drinks Sales
is 26 percent and Mass Grocery Retail Sales is 27 percent in Australia in 2011(Australia Food
and Drink Report Q3 2011).
This shows that people's
consumption power is good.
Therefore, the customer
is mainly a radius of 500 meters within the scope of the residents. In
addition, young people who seek entertainment, enjoyment, habit
"Nightlife" and those used to fast fast-paced life or those who need for shopping in case of emergency, those people are the object of service.
5. Analysis of
the local brand in Adelaide
There are many convenience stores in
Adelaide because of it take a lot of conveniences for people's lives; we will
analyze the two convenience stores, which are K Food Express and
Metro Convenience Store. The two
stores have gained local recognition. Through the analysis of these two
convenience stores, we get some experience for future work.
5.1 K Food Express
K Food Express
is an Adelaide Australia based convenience store chain, operating
from convenient locations across Adelaide. K Food Express is all about
being able to purchase what you need when you need, whilst at the same time
enjoying a high level of service from our friendly staff. K Food Express aims
to provide quality products with a great service 24-7.
The store located 30 Charles Street
Plaza in Adelaide.
The store surrounded by schools,
commercial areas, there is a very favorable
geographical position, which for the store to bring a high profit (KFOODEXPRESS 2008).
Metro Convenience Store is a business that is based in
Adelaide. Metro Convenience Store is listed including: Food and General Stores.
Some of those businesses included within the radius of 5 km are SA Convenience
Store. In Adelaide, the store located Shp8/136 North Tce. It around the school and business district, there is a
large population movements so that plays a positive impact on sale of goods (Metro convenience 2011).
The
development of convenience
store, the choice
of site is half the battle. In order to better
reduce the company's current and future loss of property, creating the ability to
continue to profit, the
location of store
should be chosen carefully.
As mentioned above, two convenience stores, their
position in the education area (the University of Adelaide and University of
SA), office area (David Jones,
Harris
Scarfe and Myer),
business area (Rundle Mall)and
transportation hub area. For example, with
over 400,000 customers every week and 23 million visitors annually,
Rundle Mall is Adelaide’s premier retail destination and meeting
place (Rundle Mall, 2011).
Therefore, shop located in the residential area that
convenient access to the places where people or communities where more mobile
population, so that consumer demand for quick and timely purchase, in order to
win consumers.
Talking to the convenience store of local brand such as K Food Express and Metro
Convenience Store in Adelaide, it has been a certain position of trust in people's
minds, coupled with has been
operating for a long time, has established a unified image of a good
shop, ordered a unified business model, business strategy mature distinctive,
has attracted a certain amount of customers patronage. While AM/PM convenience store is new convenience stores, it needs to make a great effort and a certain period
of time to attract the customer. Therefore, there is some competition.
In order to succeed
in the competition, AM/PM convenience
store should strengthen the
quality and variety, because AM/PM convenience
store is foreign brands, so
can introduce a lot of Japanese local specialty products sold in stores, but
also to increase the quality of service. In addition, AM/PM convenience store can
provide delivery services, as long as one-time purchase of goods reached $ 50, it can send
goods to customer’s home.
A good marketing strategy in order to
have a good sales performance, there is a good sales performance, business
investment to be successful. So there are four strategies on sales.
8.1 Display & Procurement Strategy
The correct of display product that it
is helpful for consumers shopping convenience, and can play the role of a good
impression to consumers. In the
display of goods, the goods should display clear, and similar goods are
classified put together, clear and easy for customers to select goods. For procurement, buy some unique goods such as each
country's specialty products, make it different from other types of convenience
stores.
When set prices, company should try to reduce the cost of
procurement goods, selling products to customers at lower prices.
AM/PM convenience
store chose the goods of special and fun, there is a
discount of this kind of goods every day, so that bringing fun to customers in
the shopping.
In the surrounding schools and commercial send leaflets, there is a
small gift while holding leaflets shopping in the store.
If customers buy $30 or more, it can get the
reusable bags with image of the store for customers, shopping bags one side is the name of
the store, the other side says store’s slogan, "AM/PM, always on your side." So as to enhance kindness with
customers, but also played the role of propaganda.
Due to the relatively high cost of
television advertising, company should consider
send the fun stickers with store’s name and address.
In summary, the report provides some
suggestions for AM/PM convenience store into the
Adelaide market. According to above analysis,
we can get to know that the AM/PM convenience store want to be
successful in the competition, it should be do this following: Firstly, there
is a good name, the name of convenience store is called
AM/PM is a good choice,
which means telling people service
all day from morning to night.
Secondly, there are rich products.
The purpose of service is to give people the
convenience in life, so the products are daily necessities mainly, and the main
target is to nearby residents. Thirdly, it should have a correct site. The
place with more people and convenient transportation should be chosen. Finally,
a good marketing strategy is important for business.
Not only to make display & procurement Strategy, but also to do publicity strategy and pricing strategy.
At the same time, it should learn the experiences from the same industry in
local market. There is several experiences benefit to the
AP/PM convenience store, such as select site, sales strategy. Therefore,
the store name, product type, target market, location, competition among the market, sales strategy and customer
needs should be considered by AM/PM Company in order to enter the Adelaide
market successfully in the
future.
