A MARKET RESEARCH STUDY TO IDENTIFY HOW NORTH OF THE BORDER CONVENIENT

STORE CAN EXPAND BUSINESS TO FRANKLIN PIERCE COLLEGE STUDENDTS

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

IntroductionIntroduction

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

Parameters of a Convenience Store

• Petroleum• Hours of Operation• Parking Accessibility• Size in Square Feet• Amount of Product Offerings• Fast Moving or Slow Moving

The (NACS) has specific descriptions (or class system) ofwhat is or is not a convenience store.

The class system is based on the following:

KIOSKKIOSK

• 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 StoreMini 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 StoreLimited 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 StoreTraditional 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 StoreExpanded 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 StoreHyper 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 StatementProblem Statement

Research is necessary to identify how

North of the Border Convenience Store

can expand business to

Franklin Pierce College students.

Research ObjectivesResearch 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

MethodologyMethodology

• 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 BorderHistory 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, OwnerAhmad 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 QuestionsSurvey 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 covenience store do you most often patronize in the FPC area?

47 26.7 26.7 26.7

3 1.7 1.7 28.4

32 18.2 18.2 46.6

3 1.7 1.7 48.3

87 49.4 49.4 97.7

4 2.3 2.3 100.0

176 100.0 100.0

Mr. Mikes - Jaffrey

Mr.Mikes of Fitzwilliam

North of the Border/Waterfront

Mobil of Jaffery

Foggs

Gabby's

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Which store do you most often patronize in the FPC area?

47

3

32

3

87

4

0102030405060708090

100

Mr. Mikes -Jaffrey

Mr. Mikes -Fitzwilliam

North of theBorder/

Waterfront

Mobil of Jaffrey Foggs Gabby's

How far would you travel to a convenience store?

23%

58%

19%

1-2 Miles

3-4 Miles

5 + Miles

Do the hours of operation effect what convenience store you patronize?

60%

40%

Yes

No

Which hours of operation do you most often patronize a convenience store?

16

70 73

17

0

10

20

30

40

50

60

70

80

6 a.m. - 12.p.m. 12 p.m. - 6 p.m. 6 p.m. - 12 a.m. 12 a.m. - 6 a.m.

Have you ever patronized North of the Border?

63%

37%

yes

no

Have you ever Patronized North of the Border?

111 63.1 63.1 63.1

65 36.9 36.9 100.0

176 100.0 100.0

Yes

No

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Please rate customer service at North of the Border

2 0

18

49 48

59

0

10

20

30

40

50

60

70

Very Poor Poor Average Good Excellent N/A

Rate customer service at the convenience store you most often patronize

3 5

62

84

22

010

203040

506070

8090

Very Poor Poor Average Good Excellent

What do you most often purchase at a convenience store?

23 2226

41

2125

2 10

510

15

2025

30

3540

45

Gas Beer/Wine TobaccoProducts

Deli Snacks Drinks ATM Lottery

What do you most often purchase at a convenience store?

23 13.1 14.3 14.3

22 12.5 13.7 28.0

26 14.8 16.1 44.1

41 23.3 25.5 69.6

21 11.9 13.0 82.6

25 14.2 15.5 98.1

2 1.1 1.2 99.4

1 .6 .6 100.0

161 91.5 100.0

15 8.5

176 100.0

Gas

Beer/Wine

Tobacco Products

Deli

Snacks

Drinks (Soda,Gatorade, Coffee, etc.)

ATM

Lottery

Total

Valid

SystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent

Which covenience store do you most often patronize in the FPC area?

Count

50

40

30

20

10

0

Please rate the cust

Very Poor

Poor

Average

Good

Excellent

Cross tabulation 1

RECAPRECAP

• 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.

AssumptionsAssumptions

• Time• Scheduling• Population• Sample Size• SPSS Software

• Respondents understood the vocabulary.

• Respondents shopped at Convenience Stores

• Respondents are being truthful while filling out surveys.

Limitations

ConclusionsConclusions

• 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 Recommendations

• Expand hours • Expand advertisement to FPC community• Delivery• Keep up with appearance and cleanliness