The Marketing Report of AM/PM Convenience Store in Adelaide

1. Introduction

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%.

4. Target market

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).

5.2 Metro Convenience Store

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).

6. Location

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.

7. Competition

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.

8. Sales Strategy

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.

8.2 Price Strategy

When set prices, company should try to reduce the cost of procurement goods, selling products to customers at lower prices.

8.3 Publicity strategy

8.31 The discount of special goods

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.

8.32 Send leaflets

In the surrounding schools and commercial send leaflets, there is a small gift while holding leaflets shopping in the store.

8.33 Bag for shopping

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.

8.34 Advertising

Due to the relatively high cost of television advertising, company should consider send the fun stickers with store’s name and address.

9. Conclusion & Recommendation

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.