7-Eleven Turns on the TV
Convenience retailer 7-Eleven is creating a digital TV network for display in its more than 6,200 U.S. and Canadian store locations. Upon full deployment, the network is expected to offer around-the-clock programming to more than 190 million monthly viewers.
Known as 7-Eleven TV, the network will feature national and local entertainment news and weather, as well as commercials promoting products including 7-Eleven’s private label brands. Commercial time will also be made available to third-party suppliers and manufacturers which sell items through 7-Eleven. The retailer says its estimated 2.3 billion consumer impressions per year will approach the viewership levels of national TV networks.
7-Eleven is developing a new means of promoting its private label brands as it is preparing to roll out 265 new private label SKUs by the end of this year and another 300 private label SKUs during 2010. 7-Eleven has been busy developing private label products this year, especially those included in its 7-Select grocery/CPG brand. In March 2009, 7-Eleven launched a promotional special featuring its private label 7-Select chips product that led up to a widespread expansion of the 7-Select line during summer 2009.
The 7-Select product range includes beverages, snack foods, paper goods, personal care products, and items in many other categories. In November 2008, 7-Eleven introduced 26 new 7-Select snack products and in March 2009, rebranded its private label bottled water product under the 7-Select brand. The company estimates 7-Select water represents about 25% of its total bottled water sales.
Other retailers have also been taking advantage of in-store digital TV networks to perform targeted promotions. For example, regional fast food retailer Carl’s Jr. is bringing theBITE Network, an in-store digital TV network from IndoorDirect, to 133 stores in the San Diego and San Francisco, CA areas. TheBITE Network features a combination of customized entertainment and advertising tailored to reach quick-serve and fast food restaurant customers. It airs on LCD screens and also features text with breaking news, sports updates and local time and weather. In addition, theBITE Network emphasizes on sports, music and entertainment which appeals to the young male audience Carl’s Jr. has been actively pursuing this year.
7-Eleven is partnering with Digital Display Networks, which will provide turnkey services and supervise installation, content production and advertising sales. Two LCD high-definition TV monitors with directional audio, which reaches only those consumers positioned in front of monitors, are being installed in each store, with the complete network expected to be operational nationally by Q4 2010.