North of the Border Study

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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

Introduction

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.

Parameters of a

Convenience Store

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

KIOSK

• 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.

Mini Convenience Store

• 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.

Limited Selection

Convenience Store

• 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.

Traditional Convenience Store

• 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.

Expanded Convenience Store

• 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.

Hyper Convenience Store

• 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.

Problem Statement

Research is necessary to identify how

North of the Border Convenience Store can expand business to

Franklin Pierce College students.

Research Objectives

• 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

Methodology

• 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.

History of North of the Border

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.

Ahmad Mortada, Owner

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.

Survey Questions

• 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?

RECAP

• 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.

Limitations

• Time

• Scheduling

• Population

• Sample Size

• SPSS Software

Assumptions

• Respondents understood the vocabulary.

• Respondents shopped at

Convenience Stores

• Respondents are being truthful while filling out surveys.

Conclusions

• 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

Recommendations

• Expand hours

• Expand advertisement to FPC community

• Delivery

• Keep up with appearance and cleanliness

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