BUS8375 – Research Methods and Data Analysis

Phase 1- Convenience Store, Section-8

BUS8375 – Research Methods and Data Analysis

Retail sector analysed: Convenience Store

Conestoga College

Fall Semester – 2019

Section no. 8

Instructor Andrea Jansen

Group 8


The retail sector has always been one of the most impetuous and rational industries a business can engage in. The business patterns are at the expense of present trends and demand from customers. One day, a business could be the market leader and might see a downfall in profitability and naivety in the next. Retailers need to offer high-quality goods and services coupled with excellent shopping experience with a commitment on long-term success.


The aim of this study is to inform the investor about the convenience store and retail industry. Since the retail industry is evolving rapidly, it generates certain opportunities for the stakeholders seeking to make a move to enter in this sector.

In order to achieve this, we look forward to collecting the required information through in-depth analysis which gives us an up-to-date real picture of this market along with the overall quality of the services; the customer benefits and concerns in such a manner that the investor can make full profitable use of the opportunity.


The marketing mix is generally a series of distinct variables that can affect the choice of a consumer to buy or use a product. The 4P’s of marketing are Product, Price, Promotion and Place. To a certain extent, these four variables can be regulated by a business. Upon careful review and mixing these strategically, a desired customer behavior can be achieved from the target audience.

The marketing mix (4P’s) of a convenience store focuses on the nature and strategic objectives of the retail business. This provides an opportunity for marketing strategies that deal with local, regional and global circumstances for the retail industry. Every business proprietor has to optimize how they use the Four Ps to handle their business to create a good marketing strategy. The internal marketplace, including the rivals and customers must be considered while assessing the strategy to each P. Below is an evaluation of a convenience store against its major domestic rivals.


The product corresponds to the tangible (physical products) or intangible (unquantifiable services). This also involves the connection or the experience with your product that consumers and clients have.

The packaging, characteristics, consumer-friendly items, name of the item, its quality, the design or customer support may attract them. They might be making transaction for the item but the actual purchase depends on the overall customer experience.


According to a 2018 industry report, 153,237 convenience stores are operating in the U.S. These stores generated $616.3 billion in sales for an average of nearly $4 million per store. Profit margins, however, are typically thin in the food industry, and convenience stores are no exception.


In selecting a perfect place for a convenient store we need to consider some factors that include, population, purchasing power of the people residing near that area, competitors, availability of routes to access the store, flow of traffic, parking and the most important thing the cost of the place.


The best way to promote the product of convenience store in the market is first and foremost to offer a big variety of products, to promote the convenient store online or people can online buy the products from the store, inviting the customers to use Google to review the store, creating a mobile app of the store, digital marketing etc.


The retail landscape is being shaped by the new trends and forces. The techno-economic developments have the most profound impact on it, in particular. However, competitive stress has also been increasing over time, due to the increase in number of market competitors and rapid increase in the amount of e-retailers. Globally, retail revenues have continued to increase and are anticipated to reach $28 trillion by 2020. The retail sector contributes significantly to the GDP of the nation and also contributes towards employment. However, in the macro environment there are certain factors that influence and design its future

Retailers should make better use of technology such as cognitive intelligence and artificial intelligence to better serve their customers and increase the share of their market, so that they are able to leverage the evolving demographic and economic patterns. Below is a PESTLE analysis to demonstrate how different forces influence the retail sector.


The policies of the government impact any retail store’s income and profitability. These provisions do have an impact on the economy, buyer practices and the international commercial laws.  The only option remaining for the retail company is to abide with these changes.  

The laws affect the products imported, exported and sold at the convenience store. The convenience stores that offer food products must conform rigidly to the health guidelines proposed by the government. Failure to comply with these rules will add the company’s legal concerns.


A robust economy enables customers to purchase the products they desire, instead of just buying the products they need. It also suggests that the profitability of Retail Company is of greater interest to investors. Only with the rising economy can that happen. The contrary is true when it is on the decrease. As noticed through the consumer behaviour pattern, shoppers save money for goods of necessity. They tend to spend the very least on food while the remainder goes on unpaid bills. This can occur with rising levels of unemployment or in some situations when a certain sector is hard to hit than others.

The retail industry could continue even during the recession. It is one of the few sectors that managed to scrape through. The global sales are expected to reach $30 trillion by end of 2020. At present, the retail sectors are expanding in the global economy. In the event of poor economy, the amount of goods provided does not matter as no one can afford or justify the purchase. Lest the retailers respond correspondingly by cutting rates, they’ll suffer a loss of profit.


Consumer preferences are the primary social variables affecting the retail sector. For instance, people like to purchase products in bulk. This is the basic concept of the Canadian retailer CostCo; where electronics, food and apparel can be found in relatively large amounts. Other stores as well mass stock different products to prevent them from being exhausted quickly.

The retailers don’t purchase these goods on a whim. Market research is used to detect customer behaviour patterns, changes and buying trends. Knowledge and understanding of both of these helps to discover more profitable products. Retailers offering online products can collect information from the data provided by the customers, easily detect the products that people buy, rely on or ignore completely, and then create their offerings from these data.

Social trends have a significant effect on the retail sector. Consumer preferences along with demographic changes will have a profound effect on the retail sector. Retailers need to improve the way they serve their customers and think ways of better customer experience to attract higher numbers of millennials. The popularity of the products has also been affected by the demographic changes. More demand is on technological products than ever. The new generation’s demands are very different from older ones. Customer service is becoming increasingly important, and the popularity of retailers depends on how well they’ve developed their customer experience. More attention must be given to customer engagement.

Companies make targeted advertisements to customers most likely to visit and buy products from their stores. Large distributors can do it easier than moms/pop shops. Nevertheless, even smaller businesses can benefit by offering sales on the products and certain discounts.


Every day retail stores use a wide range of technology. For instance, POS system machines and cash registers for money management following a sale. It is a basic standard for every store. With the advancement of technology, stores embrace new technical systems, both hardware and software. Technologies like cloud computing, cognitive, distributive and artificial intelligence are forecasted to shape the retail in the next few years. For example, stores shift to iPads or computers at the cash registers. It is proven to be fast, efficient and easy to use.

Thanks to the internet, the retail industry has gained significantly. Not only to enhance their facilities, but also to reach audiences worldwide. Most businesses have a website. It is primarily a digital product catalogue. Larger retail stores offer an online selection. The goods are delivered either to the customer’s door or to the closest store for collection.


The legal considerations in the retail industry are also equally crucial. It is influenced by so many laws in regards to business and employment. Furthermore, packaging and product laws are also applicable to this industry. The legal scenario is generally somewhat complex, and distributors need to be cautious because any breach could lead to heavy penalties.

Before opening, a retail store has to comply with legal obligations. It comprises compliance with tax legislation, labour legislation and more. As a business expands abroad or offers products over the web, legal considerations become more complicated. The failure to abide by these laws and regulations will lead to legal disruptions such as going bankrupt and foreclosure.


Most retail stores also offer food products. Environmental conditions do affect the selection and quality of the items. It involves taking into account more political and economic factors. For example, retail operators fear to pay a soda tax which is an increased tax towards the sale of soda in retail shops.

The retail industry is also impacted by concerns like sustainability. It is confronted with renewable energy, reduction of waste, packaging and a number of other sustainability issues. In addition, the focus is also on environmental responsibility for procurement and packaging of the products. It should aim to reduce its carbon footprint and achieve 100% long-term use of renewable energy.

Contamination is also a big concern. For instance, food like lettuce needs to be tossed out once it is contaminated, which is costly for the companies. The big retailers make use of the block chain technology through which source of the contamination is located easily rather than spending extra time to figure out where it started, and when contamination happens, each shop in the chain has to get rid of the product irrespective of the food being contaminated or not.

Also in the stores, we cannot overlook the environmental challenges. All retail shops must meet environmental requirements for consumer and employee safety, which are set by the government and are non-negotiable.


Frue, K. (2019). PESTEL/PESTLE Analysis of The Retail Industry. Retrieved 25 September 2019, from https://pestleanalysis.com/pestel-analysis-of-retail-industry/

Pratap, A. (2019). Retail Industry PESTEL Analysis. Retrieved 26 September 2019, from https://notesmatic.com/retail-industry-pestel-analysis/

Makos, J. (2015) 8375 – Lec. 2 – PROJECT – PESTLE Analysis F19 Retrieved September 27, 2019, from eConestoga.

Marketing Mix: The 4Ps Of Marketing For Businesses. (2019). Retrieved 27 September 2019, from https://toggl.com/marketing-mix-4ps/

N.D. (2014) 8375 – Lec. 2 – PROJECT – Marketing Mix 4Ps F19 Retrieved September 27, 2019, from eConestoga.

Supermarket Strategies the Four P’s. (2019). Retrieved 27 September 2019, from https://charnghongwang.wordpress.com/professional/supermarket-strategies/

Walmart Inc.’s Marketing Mix (4Ps) Analysis & Recommendations – Panmore Institute. (2019). Retrieved 27 September 2019, from http://panmore.com/walmart-marketing-mix-4ps-analysis-recommendations

Karanbeer Singh, 8599250
Tanveer S. Pawra, 8426397
Harpreet Singh, 8334286

No. of words: 1905

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