the development of 7-11 in taiwan

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"Gan Ah" is a disc-shaped woven bamboo container for exposure and dried stuff. Because the traditional grocery stores often have many "Gan Ah" to put some goods, so the traditional grocery store known as the "Gan Ah" store. Taiwan's agricultural community in the 1950s, "Gan Ah" stores throughout Taiwan every corner of the countryside. The store sold the daily needs of firewood, rice, oil, salt, soy sauce, vinegar, tea, farm tools, household hardware, tobacco, candies and cookies, children's toys ... and so on. At the time, the traditional grocery store is a gathering place for nearby residents. You can buy nothing, but just go there a nice chat. Some stores even offer TV (television was very rare) and benches, so that folks can sit down together to watch puppet shows or opera, here is full of strong human touch. However, when the industrialization and economic development, young people have left the countryside to the cities, and alcohol and tobacco monopoly system is relaxed, then "Gan Ah" stores gradually lost the advantage. Characteristics of traditional grocery store 1. It has a license to sell alcohol and tobacco, and the door hanging exclusive "alcohol and tobacco" iron

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This document is to describe the development of 7-11 in Taiwan

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"Gan Ah" is a disc-shaped woven bamboo container for exposure and dried stuff. Because the traditional grocery stores often have many "Gan Ah" to put some goods, so the traditional grocery store known as the "Gan Ah" store. Taiwan's agricultural community in the 1950s, "Gan Ah" stores throughout Taiwan every corner of the countryside. The store sold the daily needs of firewood, rice, oil, salt, soy sauce, vinegar, tea, farm tools, household hardware, tobacco, candies and cookies, children's toys ... and so on. At the time, the traditional grocery store is a gathering place for nearby residents. You can buy nothing, but just go there a nice chat. Some stores even offer TV (television was very rare) and benches, so that folks can sit down together to watch puppet shows or opera, here is full of strong human touch.

However, when the industrialization and economic development, young people have left the countryside to the cities, and alcohol and tobacco monopoly system is relaxed, then "Gan Ah" stores gradually lost the advantage.

Characteristics of traditional grocery store1.It has a license to sell alcohol and tobacco, and the door hanging exclusive "alcohol and tobacco" iron sign.2.Most of the store's lighting subtly, messy arrangement of goods.3.There is a wooden table and benches, neighbors often drink tea and chat here.4.The main commodities are daily necessities.5.Most of the owner use of their own house for business, so the operating time is not fixed.

UNI-PRESIDENT ENTERPRISES CORP. founded Unification Super Store Co. in 1978. The following year opened 14 "Unified Super Store" in Taiwan, and to introduce 7-ELEVEN. At that time due to lack of experience, both store locations, products, pricing, target customers, everything needs to explore. The result was seven consecutive years of losses. Fortunately, this company adhere to continuous efforts, try to integration of local, Japanese and Western philosophy. It is through the adjustment and transformation of Imitation, Localization, Innovations in three stages, and finally gain recognition of the Taiwan people, and replacing the traditional grocery store. Since then, the convenience store has entered a golden age in Taiwan.

7-ELEVEN's core marketing strategy, is to provide "convenient service" as the source of all marketing thinking. In order to satisfy the needs of the majority of consumers, and to become "a good neighbor offers you convenience" as the goal. It has adopted the following strategy:1. Set of four business philosophyCommodity structure completeFresh quality assuranceClean thoroughlyFriendly and fast service

2. Chain management systemA. Direct: operating and marketing tasks entirely controlled by the headquarters, the profit belongs to headquarters.B. Delegate franchise: 7-ELEVEN responsible for the rent and all the logistical support operations, such as merchandise selection, logistics, information systems, engineering, maintenance, etc., so that Delegate franchise can concentrate on managing the store. Limited to 50 years of age couple run together.C. Franchise: Franchise pay the rent and the cost of store decoration, so the distribution of profits and delegate join are also different, with the delegate to join the rest of the rights and obligations are the same.

3. Customer-oriented marketing conceptA. Your convenience good neighbors, to provide customers with convenient and secure merchandise and servicesB. Customer group: young people and workers, aged 13 to 35C. Commodity Strategy: Strengthening commodity structure, small amount of diversity, emphasizing the convenience and uniqueness, the average from 2000 to 2500 kinds of commodity items. Combined with consumer trends, to develop new products. The introduction of a strong brand, the market opportunity. Differentiated products, the development of a special commodity, its own brand. Service goods, such as courier, telephone cards, ATM, photocopying, sent on behalf of flowers, payment of telephone bills, pay taxes.D. Pricing Strategy: The cost of goods + convenience = price Do not make price competition.E. Promotional activities are easy to implement, to avoid increasing the burden on the staffF. Advertising Strategy Advertising theme is to improve the store image, and focus on its own brand merchandise. Build store image, to become the customer's convenience good neighbor.G. Public welfare activities marketing strategy Purpose is to contribute to the community, help the weak and backward. Provision of 10% of the advertising budget as public welfare activities budget every year. Let Public welfare activities become a part of the business. 7-ELEVEN store dense network is the best media pipeline. 7-ELEVEN support credibility groups. Facilitate doing good pipeline to customers. Cohesion customers love to help people who need to be helped. Marketing methods to design the overall Public welfare activities. Such as 1992's "Hunger thirty", and 1993s "Love come back". Gained international marketing communications excellence award (the world's first prize) for two consecutive years.

Although 7-ELEVEN been a loss in the previous seven years. But by developing differentiate with retail stores and supermarkets. 7-ELEVEN launched boiled eggs, "Scarlet" ice... gradually to target customers from housewife into younger. Through many customs observed roadside food stalls, 7-ELEVEN also started decoration dining tables and chairs, where guests can create a clean, bright dining environment. In recent years also launched valet fee, courier and other caring services, so many programs can be solved in a convenience store.

Convenience store concept imported from the United States, and finally improved success in Taiwan. 7-ELEVENs history is like a mirror of Taiwan's economic development and people's livelihood. Elements of its success, not only advanced information systems or a complete logistics system. 7-ELEVEN firmly grasp the pulsation of social development, in-depth understanding of public life patterns changing needs, constantly striving to change itself, a breakthrough innovation, and finally succeeded to get consumer recognition.

Does 7-ELEVEN have a chance to develop in Europe?

The flow of people is the basis of the convenience store performance. From this point of view, Europe is the region with the highest population density. Such as the Netherlands, it has only 41,500 square kilometers, but there are 16.8 million population (January 2013 Statistics Netherlands). Its population ranked 61st in the world, per capita GDP ranks eleventh in the world.

We generally believe that Europeans live relatively slow pace. They do not like the rush of life, so the relatively low demand for convenience stores. Is that true? If convenience stores can help people solve problems in daily life, in exchange for more free time. It does not conflict with the needs of a leisurely life.

According to the Benelux market research report released MindTree, consumer awareness of the current path difference online and offline increasingly blurred. Known entity digitized "Phygital" (Physical + Digital) consumer age, anywhere can use smart phones to action across product comparison and cross paths parity, physical stores are increasingly blurred and electricity supplier path differences. [footnoteRef:2] [2: MindTree benelux detailed report,http://www.mindtree.com/phygitalshopper/benelux/pdf/mindtree-benelux-detailed-report.pdf]

Phygital consumers via mobile phones to check prices in the physical path of behavior is subverting the traditional paths of supply and demand patterns, the number of paths digitized entity, the possibility of new electricity supplier orders, and virtual channel electricity suppliers are also materialized, the new delivery point or experience storefront to reach consumers. Through the development of new technology and ecosystem, the physical channel digital and Virtual path materialized pace will accelerate.

400 consumers in the Benelux give their shopping experience and expectations for e-commerce, retail supermarkets, furniture, household items and floral products pathway. MindTree summarized five observations and recommendations:

1. Consumers expect a seamless shopping experience between the different channels. Fifty percent of consumers use online resources while shopping.

2. Consumers will benefit from the in-store technology. Ten percent of supermarket customers want a faster shopping experience as self-scan checkouts.

3. Consumers are willing to share personal information, but not on social media: eighty percent want to share personal information with retailers for a better shopping experience, only four percent want to do this via social media.

4. Consumers want more information, both online and in the store itself. Twenty percent want to know how busy the store and get personalized recommendations.

5. Consumers pay more for an excellent shopping experience. Thirty percent of consumers want flexible purchase and delivery options.

7-ELEVEN has successful experience in Taiwan, if it can integrate the concept of Phygital, may be able to impress the hearts of European consumers. In fact, 7-ELEVENs shopping site http://www.7net.com.tw/ has provided thousands of products online. Consumers who purchase goods from the site in the morning can get the goods in the real store next day. Although this is only a prototype of Phygital, but if it can be adjusted towards the refinement and localization, then build a platform with European habits and preferences. With the Phygital era, 7-ELEVEN still has the chance of success in Europe.

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