A MARKET RESEARCH STUDY TO
IDENTIFY HOW NORTH OF THE BORDER
CONVENIENT STORE CAN EXPAND
BUSINESS TO FRANKLIN PIERCE
COLLEGE STUDENDTS
Presented for
JM North of the Border
Presented by
Michael Marione, Beth Lucier, Jordan Silverman,
Maria Clifton, and David St. Lawrence
What is a Convenience Store?
The National Association of Convenience Stores
(NACS) defines a convenience store as a retail business with primary emphasis placed on providing the public a convenient location to quickly purchase from a wide array of consumable products (predominantly food or food and gasoline) and services.
The (NACS) has specific descriptions (or class system) of what is or is not a convenience store.
The class system is based on the following:
• Petroleum
• Hours of Operation
• Parking Accessibility
• Size in Square Feet
• Amount of Product Offerings
• Fast Moving or Slow Moving
• Less than 800 square feet
• Gasoline is always the focus of this operation with the owner usually being an oil company or petroleum marketer.
• The store sells only the fast-moving items
(tobacco, beverages, and snacks)
• Parking is usually only at the pumps.
• Hours may vary widely depending on the location.
• 800 to 1,200 square feet in size
• Extremely popular with the oil companies and the emphasis is on gasoline sales. However, in such locations, the owners view store sales as an important part of the revenue and margin picture.
• Grocery selection is usually very thin and foodservice beyond prepared sandwiches.
• There usually is not any parking other than that at the pumps, although some locations do have modest striped parking.
• Open hours usually range from 18 to 24 hours.
• Range from 1,500 to 2,200 square feet, are becoming more numerous.
• Affiliated with oil companies and are in the size range of a converted two-bay service station.
• They differ from the "mini convenience store" in a broader product mix and grocery offering.
Also, simple foodservice (hot dogs, nachos, popcorn, etc.) may be offered.
• Parking and extended hours are common.
• The are about 2,400 to 2,500 square feet in size.
• Products include: dairy, bakery, snack foods, beverages, tobacco, grocery, health and beauty aids, and perhaps prepared foods to go, fresh or frozen meats, gasoline.
• Size have 6 to 12 striped parking spaces or some form of convenient pedestrian access.
• Hours are extended compared to average retailers with a large percentage open 24 hours per day.
• Sizes are 2,800 to 3,600 square feet range.
• Such stores can accommodate more shelving for additional grocery products or room for significant fast food operations and seating.
High profit margins in fast foods.
• Most have about 10 to 20 marked spaces.
• Hours are extended.
• Very large stores (4,000 to 5,000 square feet)
• Usually offer an array of products and services arranged in departments. For example, such stores may offer variations such as a bakery, a sit-down restaurant area, or a pharmacy.
• Many of these locations do sell gasoline.
• The number of parking spaces is substantial.
• Hours are extended.
Research is necessary to identify how
North of the Border Convenience Store can expand business to
Franklin Pierce College students.
• Determine what students wants and needs are for a convenience store
• Identify the convenience stores that students most often patronize
• Identify what additional services North of the Border should provide students
• Determine why students patronize North of the Border competitors
• Population of Franklin Pierce College:
1,608 students
• Our Sample Size: 176
• Formulated a data collection form
(survey)
• Convenience Sample: We asked students in the campus center, dorms and classes if they would fill out our surveys.
• Analyzed the data with SPSS software.
JM North of the Border is located in Rindge,
New Hampshire. Ahmad Mortada and his family began reconstruction after buying the building. Over the past two years, this former marina and small house has turned into a large convenience store, marina, and eat-in sub shop.
Mortada was born in Lebanon with four brothers and five sisters. Their family was close although his country was at war. After a major family tragedy they immigrated to
America for a better life. After working vigorous hours at a gas station, he saved up enough money to buy his convenience store.
• Which Convenience store do you most often patronize in the Franklin
Pierce College Area?
• Have you ever patronized North of the Border?
• If yes, please rate their service
• Do the hours of operation effect what convenience store you patronize?
• Which hours do you most often patronize convenience stores?
• What do you most often purchase at a convenient store?
• How far would you travel to a convenient store?
• Please rate the customer service at the convenience store you patronize.
• Does the appearance/cleanliness of the store affect your patronage?
• What services can North of the Border/Waterfront provide to Franklin
Pierce College students to ensure your patronage?
• What is your gender?
• How old are you?
Which store do you most often patronize in the FPC area?
100
90
80
70
60
50
40
30
20
10
0
47
32
Mr. Mikes -
Jaffrey
3
Mr. Mikes -
Fitzwilliam
3
North of the
Border/
Waterfront
Mobil of Jaffrey
87
Foggs
4
Gabby's
Vali d
Which covenience stor e do you most often patronize in the FPC ar ea?
Mr. Mi kes - Jaffrey
Mr.Mikes of Fitzwi lliam
North of the Border/
Waterfront
Mobil of Jaffery
Foggs
Gabby's
Total
Frequency
47
3
32
3
87
4
176
Percent
26.7
1.7
18.2
1.7
49.4
2.3
100.0
Vali d Percent
26.7
1.7
18.2
1.7
49.4
2.3
100.0
Cum ulative
Percent
26.7
28.4
46.6
48.3
97.7
100.0
How far would you travel to a convenience store?
19%
23%
1-2 Miles
3-4 Miles
5 + Miles
58%
Do the hours of operation effect what convenience store you patronize?
40%
60%
Yes
No
Which hours of operation do you most often patronize a convenience store?
73
70
40
30
20
10
0
80
70
60
50
16
6 a.m. - 12.p.m.
12 p.m. - 6 p.m.
6 p.m. - 12 a.m.
17
12 a.m. - 6 a.m.
37%
Have you ever patronized North of the Border?
63% yes no
Vali d
Have you ever Patr onized Nor th of the Bor der?
Yes
No
Total
Frequency
111
65
176
Percent
63.1
36.9
100.0
Vali d Percent
63.1
36.9
100.0
Cum ulative
Percent
63.1
100.0
70
60
50
40
30
20
10
0
2
Very Poor
Please rate customer service at North of the Border
0
Poor
18
Average
49
Good
48
Excellent
59
N/A
Rate customer service at the convenience store you most often patronize
84
40
30
20
10
0
90
80
70
60
50
3
Very Poor
5
Poor
62
Average Good
22
Excellent
45
40
35
30
25
20
15
10
5
0
Vali d
Mis sing
Total
What do you most often purchase at a convenience stor e?
Gas
Beer/Wi ne
Tobacco Products
Del i
Snacks
Drinks (Soda,
Gatorade, Coffee, etc.)
ATM
Lottery
Total
Sys tem
Frequency
23
22
26
41
21
25
2
1
161
15
176
Percent
13.1
12.5
14.8
23.3
11.9
14.2
1.1
.6
91.5
8.5
100.0
Vali d Percent
14.3
13.7
16.1
25.5
13.0
15.5
1.2
.6
100.0
Cum ulative
Percent
14.3
28.0
44.1
69.6
82.6
98.1
99.4
100.0
What do you most often purchase at a convenience store?
41
23
22
26
Gas Beer/Wine Tobacco
Products
Deli
21
Snacks
25
Drinks
2
ATM
1
Lottery
50
40
30
20
10
0
Cross tabulation 1
Please rate the cust
Very Poor
Poor
Average
M r. M ike
M r.M
s
- Ja ike ffre s y
No rth of F
M itzw ob
Fo ill
B s
G ord er/ ab ffe ry by' s
Good
Excellent
Which covenience store do you most often patronize in the FPC area?
• Fogg’s is the most often patronized convenient store
• Most popular hours of patronage are from 12 p.m.- 12 a.m.
• The deli is the most often purchased product.
• Student’s are mostly willing to travel up to 4 miles for a convenient store.
• Appearance and cleanliness are important.
• Delivery and later hours are in demand.
• Time
• Scheduling
• Population
• Sample Size
• SPSS Software
• Respondents understood the vocabulary.
• Respondents shopped at
Convenience Stores
• Respondents are being truthful while filling out surveys.
• We found that deli products were the most often purchased product.
• We can conclude that most students are most willing to travel only 3-4 miles to a convenient store. (58%)
• The most often patronized convenience store is
Foggs (49.4%)
• North of the Border was third with 18.2% of students patronage
• Expand hours
• Expand advertisement to FPC community
• Delivery
• Keep up with appearance and cleanliness