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, high-

quality 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 7-

Eleven 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 consumers were housewives

Had 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 premises from various landlords

The new franchisees were setting up stores

PCSC appealed to the younger generation

Moving 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:

UPEC

Provisions

Dairy

Beverage

Instant Foods

General Foods

Consumer Health

Logistic

SWOT

Strength

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

Weakness

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

Opportunities

- Provide fresh food

- Open 24 hours

- Increase share of meal

- Promotion/discount

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