Convenience Store and 7-eleven

7-Eleven in chinawargon Yuko Matsumuro National Chengchi University Abstract Nowadays, contrivance storages have become to a greater extent and more common in Taiwan. If you honorable look around everywhere, you exit soon find there atomic number 18 a divvy up of devisal stores surrounding your t hold. Among several gizmo store kitchen ranges, 7-Eleven, or the President Chain stack away heap, is the near popular one now. The paper foc spends on wherefore 7-Eleven is so prosperous in Taiwan and pursuits what is dirty dog it.At the beginning, to understand the position of 7-Elevens parent comm building blocky Uni-President first step Corporation (UPEC) in Taiwan, and investigate how it entice the success of 7-Eleven. Also, based on the data which showed the consumers satisfaction towards 7-Elevens service, to contemplate how 7-Elevens service performances are evaluated by consumers and what kinds of centering manuals they have. In last, the paper will discuss the influences of 7-Elevens special marketing geographic strategy and their advert effects on consumers.These information will help us feel why 7-Eleven ordure continue to improve. wherefore 7-Eleven succeed in Taiwan? Introduction accord to the article Taiwan Convenience Stores 2010, In 2009, Taiwans four major lash-up store chains much(prenominal) as 7-Eleven, Family grocery store, Hi-life, and OK operated a total of 9,184 stores around the country, a density of one store per 2,500 peck, qualification Taiwan the unintelligiblest market in the world in terms of convenience stores. Among several convenience store chains, 7-Eleven is the most popular one in Taiwan now.To think about the history of Taiwanese convenience stores, according to the article The Development and Trend for Convenience Stores from Managing Convenience Stores Theories, the Uni-President Enterprise Corporation (UPEC) had contri unlessed the great percentage to the development of convenience store in T aiwan (Department of Economy, 2000). In may 27, 1979, UPEC stated with fourteen chain stores and in this form, UPEC cooperated with the Southland Corporation, having the longest history and the biggest chain convenience store Company in South America, merchandise 7-Eleven to Taiwan (Department of Economy, 2000).The first 7-Eleven in Taiwan opened in 1980 with 27 stores and the deal of this year was just only NTD 1. 2 billion. Although 7-Eleven grew 62 stores in 1984, the sale still did not improve a fold, and 33 stores had been closed in this year (Lu and Luo, 2010). Nevertheless, the 7-Eleven bon ton did not stop to increase the number of stores in 1987 they started to spend a penny 24 hours with all 168 stores. Since this turning point, 7-Eleven started to expand their line of products and in April 2010, 7-Eleven expanded with 4733 chain stores with a sale of NTD1017. 6 billion in a year (Lu and Luo, 2010).This paper will explore these following questions 1. Why 7-Eleven i s so successful in Taiwan? 2. Does 7-Elevens parents company the Uni-President Enterprise Corporation (UPEC) role relates to the success of 7-Eleven? 3. What kinds of strategies 7-Eleven has? It is valuable to study why 7-Eleven crowd out continue to improve and understand their strategies and backgrounds. What is the Uni-President Enterprise Corporation (UPEC)? First of all, to understand the position of 7-Elevens parent company Uni-President Enterprise Corporation (UPEC) in Taiwan, and investigate how it influence the success of 7-Eleven.According to the article The Revenue for UPEC in April is 41. 92 billion and qualifying magnitude every year by 7. 41%, The whole profit-making of UPEC in April recorded NT41. 92 billion, its increased 7. 41% from last year at the same era (Yang, 2011). Uni-President Enterprise Corporation (UPEC) is the only company in Taiwan, which has more kinds of solid viands manufacture branches, and dozens of products can be made through only one bra nch (Chang, 2006). major(ip) domestic subsidiaries of UPEC are such(prenominal)(prenominal) as 7-Eleven, Starbucks Coffee Company, Mister Donuts, Muji (Taiwan) Co. , President Drugstore Business Corp. COSMED), President Transnet Corp. , Semeur De twinge and so on. We can see there are so many subsidiaries under the UPEC and from each one of them preferably popular companies in Taiwan now. While adequately integrating the subsidiaries of retail, logistics and recreational service companies within the group, quickly expanding its business territory (Uni-President, 2007). The subsidiaries of UPECs business tie-up increased their business territory, and made UPEC more strong company. In 2005, the profit-making of the food industry UPEC exceeded all over NTD 1,000 billion (Chang, 2006).The food industry of UPEC is one of famous company in Taiwan, if you look around 7-Elevens food categories, you will soon found a tummy of them are from its company. Now, we know such big food indus try behind 7-Eleven, is it related to the success of 7-Eleven? viands is consequential role in convenience store In the article The Almighty Convenience Store, 7-11 and Family Mart Competes, E-IPC, the research of Taiwanese the great unwashed whose frequency to visit convenience stores which stated from 1988, suggested those who answered once a workweek was 53. % in 1995 in 2009, those who answered to go there every week was 84. 7%, among them, the sum of those who answered cardinal quantify a week and once a week was 50%, answered going everyday was 34%, surprisingly, those who answered visited over twice a day was 7. 3% (Marketing. china successions. com, 2010). The age of main consumers who spend money in convenience store is 13 to 64, the E-IPC in 2006 to 2009, sh possess that those who answered visiting there every day was increased 30. 8 to 34% (Marketing. hina quantify. com, 2010). From the data, we can see nowadays populate visit the convenience stores more often than before. Then, what kind of people have become regulars nowadays? The article shows that the Taiwanese tribe is mostly working class they at least buy devil takeout meals per day, and these both meals are mostly break steady and lunch (Marketing. chinatimes. com, 2010). Now, we know the main consumer of convenience store is the working class people and their needs are food.According to the article local anaesthetic Convenience Stores development and future in 2008, the data of The Private denounce of four big convenience stores in Taiwan( dodge 1) shows that 7-Elevens main products such as Drinks, fresh food, snacks, burnt umbers, daily commodities, all of them comes from UPEC company or their own 7-Eleven spots (Wang. 2008). As to Family Mart, their main products are the gratifying food and drinks, Hi-Lifes are the Fresh food and dairy products, and OK is the Fresh food (Wang. 2008).Only Fresh food come from their own carrys in Family mart, Hi-Life, and OK, and we can see 7 -Eleven has more many kinds of main products than differents because of the support of UPEC. Table 1 The Private Brand of four big convenience stores in Taiwan (2008) Company Brands Main products Notes 7-Eleven 7-11 Drinks All products come from UPEC company or their Fresh food own 7-Eleven brands Snacks CITY CAFE Coffees Daily commodities Family Fami Drinks Fresh food comes from their own Fami brand Mart Fresh food Hi-life Hi-life Drinks Fresh food comes from their own Hi-life brand Daily commodities OK OK Fresh food Fresh food comes from their own OK brand Extended wit offerings have successfully increased the importance of convenience stores foodservice offering. The company derives its share from its convenience stores, under the brand 7-Eleven. At the end of 2009, there were 4,750 outlets, 7-Eleven may be considered to be the pioneer in introducing convenience stores warm food in Taiwan, and has since constantly innovated with the launch of c utting products (Euromonitor international. 2010). Besides, Family Mart said the sale of fresh food items currently accounts for only 12 percent of its revenue. In Taiwan, the industry average is 20 percent (Business weekly. 010), compared with another(prenominal) convenience stores, Family Mart provides less food and it may give distance with 7-Eleven high sale because peoples needs are food. Then, how does the CVS chain store attracts the customers and creates non stopping motives for them to buy? There are two prospective on this one is the products that they are currently selling. With the penetration of the stores, expanding their takeout meals market is excessively an important marketing strategy (Marketing. chinatimes. com, 2010). Therefore, the convenience stores targets the timing to do marketing strategies or other promotional plans. For example, in 7-Eleven, drinks and breakfasts are only 39 NTD to promote their products (Marketing. chinatimes. com, 2010). Internal busi ness attention of 7-ElevenAccording to the date of The Benchmarking Companies of Digital wait on in 2011, 7-Eleven, or the President Chain Store Corporation, companyed the top in retailer category, it can think consumers are satisfied to the services of 7-Eleven (He and Yang, 2011). From this date, we can consider why 7-Elevens service performances are evaluated by consumers and what kinds of counselling manuals they have. According to the book of Successful CVS Strategies by Chen Kuang in 2006, stated the luxuriant and specific personal management is 7-Elevens basic concept. There are three main management concepts of 7-Eleven such as work refinement, formal management, and the core order to the consumers. First of all, the feature of 7-Elevens round management is refinement work.For example, as to cleanup, there are many stores are required to do cleaning but less stores have cleaning process and every department has its own regulations, 7-Eleven is such convenience store (Chen, 2006). Even though cleaning which parts in what time, the way or the order to clean, apply which tools to clean, all of which are written in their management regulation, and workers should be follow it every day. Their regulation is including such as cleaning of doors, floors, around of sales counter, electric lights, parking ranges, public telephone outside the store, and so on (Chen, 2006). As to formal management, Working Progress reports are written by every module everyday, which can make the staff clearly understand when to do what at where and how (Chen, 2006).Also, 7-Eleven execute working elevate report for every worker once a time, which includes evaluation of oneself or other workers (Chen, 2006). Also, the customers core value is to provide and support how 7-11 should run the business. They consider to receive the consumers heart is important for their value and the growth for the company. For example, 7-Elevens staff cannot answer I dont know for their consum ers question. They should say Could you wait me for a while, Ill check it, or Can I ask your phone number? Ill contact you if I know the conduct (Chen, 2006). They also have seven technical words which should say if they meet the consumers such as regular greetings, please watch your step, and take care.We can see the 7-Elevens personal management is really detailed which increase their work efficiency also their regulation requires staff to be skillful in work and have the right behavior toward the consumers. Such 7-Elevens management may admit to the consumers satisfaction. Staff didactics and evaluation are also the important part of 7-Elevens internal management. 7-Eleven has three training center in Taiwan such as Taipei, Taizhong, and Kaoshiung, where trains the new staffs knowledge, attitude, skills, and abilities. The new staffs take training classes for the first four and a half day and one left to do retail sales practice(Chen, 2006).In addition, 7-Eleven training mate rials are renewed in every six months which we can see 7-Eleven changes their management manual depends on the society thoughtfulness or peoples need. As to managers training and evaluation of promotions, the 80% to 90% of 7-Elevens senior management employees were raised(a) from the basic unit staff to be promoted (Chen, 2006). For example, if a graduate college has performed well in the basic unit staff, he will be the vice manager in three years (Chen, 2006). Employing people in the promoting way, which can have got electrostatic management, decrease employees fluidity. The workers done need to worry about their future at the same time training rich experience staff workers. Marketing Geographical of 7-Eleven Taiwan is a high dense populated region, it has limited for the growth of big stores, and they cannot establish their companies easily. However small stores, especially convenience store, has more possible to be future development mainstream (Department of Economy, 2000) . As we know convenience stores in Taiwan has been increasing their marketing territory nowadays. According to the article The Comparison of 7-11 President cheery Chain Stores, Family Mart satisfactory Chain Stores and Hi-life Convenient Chain Stores, the research of the main convenient chain stores in Taiwan in 2007 showed that 7-11 President Convenient Chain Stores was on the top of the rank, which owned 51. 87% of the market Family Mart Convenient Chain Stores owned 24. 6% of the market, and Hi-life Convenient Chain Stores owned 14. 33% of the market (Workshop of Starting your own business with joining Chain Stores, 2008). 7-Eleven shares more than half of the convenience store market in Taiwan, and has raised its publicity. However, they are not only increasing the number of stores, but also having the strategies to set up it. According to the Statistic suggested that the condition of location influences the stores success of 60% (Chen, 2006). To see 7-elevens geographical con dition and learn their three important strategies such as confirmation of business place, Choosing the right place, and address and evaluations.Confirmation of business place refers the basic investigation of business place and know their competitive market (Chen, 2006) For example, the residential area is more stable for stores profit. The next, choosing the right place means that 7-Eleven always set in the consumers daily routes such as on the way of going to the work or school, parks, and so on. Also, address and evaluations is that the condition of population density or using the rate of success to calculate if the store should be establish or not (Chen, 2006). 7-Eleven always investigate the place deeply, to understand either the place can lead 7-elevens success or not. Moreover, the central construction is also one of 7-Elevens geographical strategies.It will consider four major effects from central construction that is decreasing the budget of advertising, increasing the imag e of the business, beingness controlled better and the quality would be better, and increasing the efficiency of delivery and decrease the amount of money and time spend on it (Chen, 2006). For example, our school National Chengchi University, we can find three 7-eleven inside the school campus and two outside of school. There are five 7-Eleven around our school some of stores are running in concert because we sometimes see the employees go 7-Eleven in this store or move to that one. It can help each stores business and can cause great advertising effect for 7-Eleven. AdvertisementIf you watch any commercial messages on TV for a while, you will soon be aware that it is easy to find 7-Eleven advertizements. Recently, 7-Elevens commercials have increased, do these adverts really influence the increasing of their profits? The article indicated that After several failed attempts, 7-Eleven came out with the low value City Cafe in 2004. However, with the success of commercial adverti sements in 2007, 7-Eleven has been selling 30 million cups of coffee a year (Taiwan insights, 2010). Whatever strategy does 7-Eleven used and rises up its profits? Since November of 2009, the usage of hiring celebrities with different impressions to be with representatives, to have a strong stands in the coffee market.According to the article The Report of Reaching The effect of advertisement(Table 2), in the data of celestial latitude, 2009, the rank of Effective dose of advertisement in coffee from chain stores and fast food restaurants, 7-11 CITY CAFE is on the top. With the airing 157,846 times on screens 7-11 CITY CAFE commercial have the highest budgets of 9,710,000 NTD. In return, CITY CAFE has helped 7-11 to earn back a revenue of 17 times bigger than the actual costs being used for the campaigns. However, Family Mart has only an airing of 65,670 on screens, their advertisement effect is ranked the fourth (Liao, 2010). From the data, we can see 7-Elevens commercial on the s creen increases their profits. Table 2 The ranking of effect of advertisement in December, 2009 Ranking Products Airing times Seconds Times on the screenEffect of ad 1 7-11 CITY CAFE 2,974 89,205 157,846 9,707 2 Mc CAFE 2,268 68,040 145,500 8,378 3 Hi-life Brown CAFE 2,532 53,175 130,442 7,717 4 Family Brown CAFE 3,159 32,880 65,670 4,124 Moreover, according to the date from CVC industries from May to October in 2009 The rank of Advertisement effect in 2009(Table 3), top ten among seven are UPEC, the top is 7-Elevens advertisement whose airing is 1,057,969 times, compared with the second rank 524,102 times of Family Mart, it is greatly high (Liao, 2010). As we know commercials costs money, but if you do not put action to increase your publicity, you will decrease the opportunity to introduce your products to people, and also cannot earn a lot of revenue. The data shows large number of 7-Elevens advertisements on TV, and they make use of commercials sufficiently to lead their suc cessful of business. Table 3 The rank of Advertisement effect in May to October, 2009 Raking Products Airing times Seconds Times on the screen Effect of ad 1 7-11President Convenient Store 29,460 626,140 1,057,969 70,208 2 Family Convenient Store 16,804 262,650 524,102 32,250 3 7-11Slurpy 15,109 247,160 485,738 30,341 4 7-11 CITY CAFE 11,162 242,160 414,309 28,442 5 Welcome Supermarket 7,098 141,960 290,317 19,631 6 7-11OPENchan recharge card 5,398 134,950 240,821 16,729 7 7-11general lunch box 9,002 139,100 256,977 16,417 8 7-11Onigiri 6,734 148,795 261,237 16,117 9 Family fabulous bread 8,900 119,840 229,083 13,659 10 7-11SMOOTHIE 3,218 96,510 184,137 13,005 photosynthesis Conclusion After the research of 7-Eleven, we can understand the 7-Elevens background and there are many kinds of strategies behind them.The 7-Elevens parent company Uni-President Enterprise Corporation (UPEC) has a lot of subsidiaries whose business collapsible make each companys development. For example, the food industry of UPEC supports 7-Elevens variety of food products, and increases their outlets than other convenience stores. Especially, for the working class people whose purpose to visit convenience store is for the food, it can say the food industry of UPECs support relate to the success of 7-Eleven. Also, the detailed internal business management of 7-Eleven makes worker can understand clearly how they work and behave, and following its regulations which increase the efficiency of each stores.Employing people in the promoting way also give them more faith for their work. If the management does not give the stable work condition for employee, they also cannot give a good response to the upper levels. Moreover, 7-Elevens geographical marketing or large number of advertisements which also raising up their publicity and become the one of strategy for the success. If we do not know what is hiding behind 7-11, we will never understand why they are so popular in Taiw an and how they succeed. To the success of one company, the managements should consider a lot of possibilities to make their business more efficient and always observe peoples mind.For instance, 7-Elevens training materials are renewed in every six months (Chen, 2006), from there we can see they always change their materials depending on the passage of the time, it also makes 7-Elevens continual improvement. In 1984, 7-Eleven closed up 33 stores because of the crisis of management, and their brand of City Cafe in 2004 recorded low prize nevertheless, the history of 7-Eleven is not always successful but they come up with new ideas to solve the issues. What can we learn from 7-Eleven is that even though the result is a failure, you forge ahead and try next without giving up. References Chang, A. , Chien, H. , & Hsu, J. (2010, June 30). Taiwan Convenience Stores 2010.Retrieved from http//www. chilealimentos. com/medios/Servicios/Normas_internacionales/Normaotros_paises/Normativa_Taiwan /Taiwan_Convenience_Stores_2010_Taipei_ATO_Taiwan_USDA. pdf Business Weekly. (2010, December 31). Magazine digest Convenience stores new focus. Focus Taiwan. Retrieved from http//focustaiwan. tw/ShowNews/WebNews_Detail. aspx? ID=201012310013&Type=aMAG Chang, C. (2006, April 21). 58 UPECs food industry profiting billions root in China. . Retrieved from http//tw. nextmedia. com/applenews/article/art_id/2552607/IssueID/20060421 Chen, K. (2006, April). 7-11. Taiwan . Department of