Hospitality Service Marketing

Running head: SERVICE MARKETING 1
Hospitality Service Marketing
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SERVICE MARKETING 2
Background on the business
7-Eleven was founded in 1927, in Dallas. The organization was formed at a period when
the southland ice company was famous for its sale of staples such as eggs and milk in the region
(Armstrong, 2015). 7-Eleven was significantly focused on the aspect of convenience for its
consumers, as well as the provision of commodities which could not be accessed by consumers
at certain times. 7-Eleven embraced the 24-hour working system, which aimed at capturing a
more significant market share hence increasing its sales. The organization also managed to
remain unique from other stores and supermarkets considering its extended working hours
(Baker & Vincent, 2016). The management in the organization further booked into the
development of an international expansion strategy, which would help ensure that 7-Eleven is
recognized across the world. 7-Eleven owns more than 36000 stores outside the united states,
and is well recognized for its high-profit margins.
the entity further embraced the Taiwanese market and opened its store in the region. 7-
Eleven adopted the product assortment strategy and managed to position itself in a more
geographically accessible location in different countries it chose to venture (Baker & Vincent,
2016). However, poor performance was registered upon its introduction in the Taiwan market.
The management, therefore, considered the important to adopt a further strategy which would
help focus on enhanced performance. Just like any other profit-making the organization, 7-
Eleven is focused on making high levels of profits, and reducing staff turnover rates in the
process (Baker & Vincent, 2016). These strategies and motives are a driving force towards the
growth of 7-Eleven in the convenience store industry.
Target market

SERVICE MARKETING 3
The primary target market for 7-Eleven is the Taiwan population. The region has a high
population which is expected to lead to the creation of high demand for the commodities offered
at 7-Eleven. This, in turn, leads to the convenience and excellent growth potential for the
organization especially in the major cities in the country (Berry, 2016). 7-Eleven was ranked as
the giant in convenience store industry in Taiwan and has since managed to maintain its position
in the market and competitive edge. The organization has accumulated revenue of more than 0-
37 billion per year. Most of the competition faced by 7-Eleven is from the supermarkets and
significantly established shops in Taiwan, which was also located in developed cities. The most
intense competition has been attributed to the cultural perspective of the people, where Taiwan
based entities tend to focus on Taiwan relate cultural commodities that have already been
embraced by consumers, while 7-Eleven focuses on diversity production and distribution of
staples for the consumers (Chesney, 2016). The primary target group is staple food buyers,
which constitutes the majority stock in most convenience stores. This includes families and
individuals, who rely on stores to obtain their consumables on a daily basis.
Marketing conditions and positioning
Conditions
The service market in Taiwan reached saturation in the mid-1990s. There were more than
2000 stores in the country owned by 7-Eleven, and at least two convenience stores were located
on every street, in every city. A lot of competition was also present in the market, considering the
fast-growing business models which were also adopted by other organizations (Baker & Vincent,
2016). Owing to such market conditions, 7-Eleven management decided to take up the
opportunity to focus on ways through which revenues could be increased, without necessarily
having to open new stores. Due to these aspects, the arrangement between the organization and