7-Eleven has a clear cost leadership strategy. Known for being quick and accessible, 7-Eleven is open when others are closed, and most products can be bought with spare change.
Products 7-Eleven is famous for. Image Source: 7-Eleven Official Facebook Page
Now, 7-Eleven wants to do more.
Consumer preferences have shifted towards wholesome eating, and while positive adjectives like “fast” and “convenient” are associated with 7-Eleven, “healthy” isn’t one of them. Its new partnership with Tony Horton Kitchen in its Los Angeles stores though, has produced “fresh on the go” choices like quinoa salad and cold-pressed juice. Sound like something from Whole Foods? Perhaps, but at half the cost.
Although 7-Eleven is capitalizing on the healthy eating market trend, it isn’t compromising cost leadership. These items are being sold for under $7 so it can stick to its value proposition of low cost while expanding customer segments.
It’s a smart move, as supermarkets like Safeway and Wal-mart are offering healthier options too. Organic is the new point of parity in the supermarket industry.
The new Tony Horton Kitchen products at 7-Eleven. Image Source: Los Angeles Register
It’s also a risky move though. 7-Eleven may find changing its image so radically could be difficult. When one mentions 7-Eleven, the candy lined racks, Slurpees, and taquitos come to mind. Its move towards “healthy” might leave 7-Eleven’s current customers thinking it’s “selling out”, while the new market of wholesome eaters 7-Eleven is targeting might not take it seriously.
Whatever the case, I’ll be excited to try these products if they come to Canada.
References:
Article: http://www.ibtimes.com/7-eleven-teams-p90x-creator-offer-healthy-food-options-1697849
Text Hyperlinks: https://www.7-eleven.com/
Image Sources: https://www.facebook.com/7Eleven
http://www.losangelesregister.com/articles/eleven-605498-foods-horton.html
My comment on your blog post!
https://blogs.ubc.ca/jwhaley/2014/11/09/7-elevens-new-healthy-heaven/