Question

you are advertising the owner of today convenience store, a new, franchised 24 hrs open store. today she also sell daily necessities fast food and snack to cuetomers for a price that is on avarage slightly higher than other stores . what conpetitive strategies could today could today convenience store excert? which one will have defficulty excercising?

Answer 1

Few points to note in this case:

1. We are advertisers of the store
2. The store is 24/7 open
3. Prices at the store are comparatively higher

We being the advertisers of the store, our main focus area should be on highlighting the best of the store and covering the weak points. So, following few strategies can be used to benefit the store.

1. Target audience: Since the store is 24/7 open, its target audience is bound to be beyond the housewives and residents of that area. Hence, the store should be well lighted during night times and sign boards/hoarding should be put up on the main streets to draw customers at odd hours.
2. Products range: The store needs to have a wide product range for mainly two reasons: high price and wide target audience. The customers should benefit in some way if they have to shell out more at your store. If you offer a wide range of products, customers can meet all their requirements under one roof there by saving time and hassle to check other places. This way they won’t mind shelling out more. Since target audience is wide and store is open 24/7 it needs to keep products that are required at odd hours.
3. Home delivery: Since the store has price on the higher side, it needs to offer add-on services like home delivery. It will increase the reach of the store, customers won’t mind paying high for add-on services, will add to advertisement for the store.
4. Posters/bill boards/pamphlets: Advertisements should be done in nearby localities highlighting its strong points like 24/7 open, wide product range, home delivery, etc.
5. Use internet to reach out to customers: Social media plays a major role today. So, you need to make sure that your store shows up in the search results. Also, being present on social media platforms like Facebook, Instagram, Pinterest will boost your sales.
6. Different payment options: Having a range of payment options from cash to card to payment through various apps always increases the convenience for the customers leading to happy customers.
7. Offers for returning customers: reward points can be given to customers on their purchase that can be encashed on next purchase. This will not just get customer loyalty but will help you create database that can be used to further analyse sales and customer habits.
8. Have an eat out option: Eateries always draw crowd and hence drives up sales. The store being 24/7 open, have an eatery makes more sense.

Now all these options will sound lucrative, but some can be difficult when exercising them.

1. Wide product range: As we know products at convenience store have short shelf life, it is difficult to maintain wide product range. But, it is important to maintain a wide product range to have a competitive edge over other stores. Over a period of time, store can build up its database that will help it analyse customer habits and data on fast moving products. This will help the store in maintaining the product range appropriately.
2. Eat out option: Though having an eatery is very lucrative in terms of attracting more customers, but having one may not be everybody’s expertise. For this the store can either rent out a space to a vendor if this option lies beyond store’s expertise or it can source food items from outside and sell.