7/11 debacle and what small businesses should know.

From a local area marketing concept the 7/11 model simply can’t stack up and what you should learn from their mistakes.

$1 Slurpee’s are a massive success” a spokesperson for 7/11 has been quoted as saying in various industry publications.

7 11 debarcle what you should learn

So why are they in a mess?

Let’s break it down.

The logic behind a strategic local area marketing campaign is to drive traffic and increase both basket size and profit. As 7/11 is positioned as a bolt on to a service station, one would think (trying not to use the ‘assume’ word) that the aim is to attract more drivers to stop and fill up?

I would be interested if 7/11 took any statistics on the demographic of the purchaser of their $1 Slurpee’s, I know my kids queued up for theirs and brought nothing else. Yes it drove traffic to the outlets, but at what cost, did they just run a break even or worse negative profit margin campaign only to attract the wrong market?

Was the actually thought through that this was a possible outcome?

Then fast food giants Hungry Jacks and McDonalds was able to quickly steal their thunder and use it as an add on sale for their meals, which made sense from a product bundling position.

A successfully executed Local Area Marketing strategy should focus at its core on changing the behavior of your target market in your favor and rewarding them for participating.

As part of a successful strategy, all situations need to be taken into consideration such as the damage caused when you attract the wrong type of customer, and just as bad, when you competition both direct and indirect, retaliate by copying your idea only to execute it better.

Next time your planning a Local Area Marketing campaign, make sure you don’t just take into account your target market, but other factors such as secondary or hidden markets and both direct and in direct competition.

Your Local Area Marketing initiative should be unique to you and any others who copy will not be as rewarded.


If you need help with your Local Area Marketing Strategy or want to explore creative ways to connect your local business with the local community, simply give us a call on 1300 946 227 or email us at getconnected@workslocal.com.au.

Workslocal, we connect local business with their local community so you can enjoy the hometown advantage.