7&I holdings` discounts in its food & beverage products

Largest Convenience store - 7 / 11 Japan company announced on 18^th June that it will give approximately 20 % consumer discount on these item: Coca-cola, Fried Noodle - Nissin, and others 70 food and beverage related products.

In convenience, there are basic fixed price which is sales of food and beverage. Therefore, it is quite phenomenal for 7 /11 to have discounted price among these products. Furthermore, this strategy will eventually affects food and beverages products in others convenience store.

As for one case example, starting from 22 June, 1 coupon will be distributed for each returning consumer purchase of any products. There are 12.000 shops under 7 & I holding Japan. In addition for it, this discount campaign will be conducted under Ito-Yokado and York Benimall until August 10^th.

At the discount store of Ito-Yokado, starting from 22 June, Apart from general products, there will be 30-50% discount for private new products. By the middle of this year, it is planned to expand its product until 350 different products.

Comment:

This type of strategy called cut-throat strategy. It has will explore many strength inside particular company to cut the operating cost. However, this kind of competition cannot be sustained long. There should be some others strategy which is focusing more into customer expected value. However, product diversification strategy which is implemented lastly will help companies to meet the consumer demand.