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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 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:

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