7-Eleven in Taiwan

7- ELEVEN IN TAIWAN: ADAPTATION OF CONVENIENCE STORES TO NEW MARKET ENVIROMENTS

Marketing Management

 

OUTLINE

• History • Company Profile: • SWOT • Problem Statement • Problem Solution • Summary

Company Profile Mission Meeting the needs of convenience-oriented customers by providing a broad selection of fresh, highquality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment .

Because: • American buyer behavior • Need daily-use item • Weekly – monthly supplies

• Standardization Business Format 

The stores in the 7-Eleven chain were separated from one another by long distances

  Areas

where people congregated, became the natural sites for 7Eleven locations (a gas station retailer)



Had sufficient space for parking

• International Expansion  In

1969, 7-Eleven opened its first store outside US

 In

1974 Asian region by entering Japan

 In

1980, it opened the first store in Taiwan, Thailand, and South Korea

• Convenience Stores Industry In Taiwan   Almost

every major global retailer had its presence in Taiwan



High population density



Characteristics of Taiwanese society, the zoning was vertical: 

 individual, would always be people entering or exiting the high-rise



Obsession with immediacy; they did notlike to wait



Had many street vendors serving low-cost, tasty but not entirely hygienic food

• 7-eleven In Taiwan 

PCSC launch of 7-Eleven stores in Taiwan

Phase One: Imitation • Tested U.S. Model • 3 minor “mistakes” on the part of PCSC in setting up the franchise:   Target   Had

consumers were housewives

spread the group resources thin

  PCSC

was buying premises

Phase Two: Localization • PCSC started to loosen up some of the established systems and

structures, principally to ownership, location and merchandise  Renting The

new franchisees were setting up stores

 PCSC

appealed to the younger generation

 Moving 

the premises from various landlords

location in the corner side

Provide local product, more fresh and consumed immediately

Phase Three: Innovations • Concept of customer convenience also in the level of

technology • Service offerings : 1. Pre-Order 2. Delivery and Pick Up 3. Telecom 4. I-Cash 5. Coffee Counter 6. Seating Areas 7. Taxi Services

Infrastructure Of HQ • 6 major businesses of UPEC:

Provisions Dairy

Logistic

Consumer Health

UPEC General Foods

Instant Foods

Beverage

SWOT Strength

- Brand recognition - Convenience - Franchise system - Geographical presence - Marketing strategies

Opportunities - Provide fresh food - Open 24 hours - Increase share of meal - Promotion/discount

Weakness - High margins - Not gain top-of-mind recall - Limited assortment offering - Not first choice of shopper

Threats - Intensity competitors - Low consumer confidence - Served fast food

Problem Statement • What kind of marketing strategy that 7-Eleven

used to attract customers in Taiwan ? • There is differentiation of the services offered by 7-

11 in Taiwan which provides a competitive advantage from chain stores and more effective than in US. Why?

Problem Solution •

Marketing mix: 4P Product Price Place Promotion

• Analyzed the market, target segment, and understanding demand

• • • •

Franchise model, allow local entrepreneur to invest Provide daily necessities and supplementary service There is standardization and localization in Taiwan Core service in Taiwan (Innovation)

Summary •

7-Eleven in Taiwan, had to adapt to the market very quickly because he wanted attention to what is demand and also pay attention to marketing strategies, in terms of product, price, place and promotion. Opportunites with the franchise and implement healthy living by providing different foods served in the US. Globalization has opened trade opportunities for different corporation. In future, 7- Eleven will have to expand into numerous country.

THANK YOU