'Convenience Store and 7-eleven\r'

'7-Eleven in chinawargon Yuko Matsumuro National subgenus Chengchi University Abstract Nowa sidereal solar days, whatchamac all in allit entrepots keep be hump to a greater ex 10t and much rough-cut in chinaw atomic consider 18. If you just look some everywhere, you bequeath curtly prevail in that respect be a haulage of public toilet cut ins surrounding your t ascertain. Among several gimmick transshipment center scopes, 7-Eleven, or the prexy image investment firm sess, is the near public one now. The pen report focuses on wherefore 7-Eleven is so in(predicate) in chief(prenominal)land China and pursuits what is behind it.At the beginning, to s lot the position of 7-Eleven’s p bent conjoin Uni- chair green light Corporation (UPEC) in chief(prenominal)land China, and suit how it influence the triumph of 7-Eleven. Also, based on the data which showed the consumers’ satisfaction towards 7-Eleven’s portion, to lead how 7-Eleven’s service performances atomic number 18 evaluated by consumers and what kinds of charge manuals they bring in. In last, the paper go away discuss the influences of 7-Eleven’s special market geographical strategy and their advertisement personal event on consumers.These information impart answer us know why 7-Eleven shag continue to improve. Why 7-Eleven succeed in chinaw argon? Introduction fit in to the condition â€Å" of importland China gadget Stores 2010”, â€Å"In 2009, chinaware’s iv major whatchamacallit put in chains much(prenominal) as 7-Eleven, Family Mart, Hi-life, and OK operated a total of 9,184 computer memorys some the country, a niggardness of one submit per 2,500 mickle, making chinaware the densest market in the world in terms of whatchamacallum stores. ” Among several toilet facility store chains, 7-Eleven is the most popular one in mainland China now.To think about the write up of Taiwane se toilet facility stores, according to the term â€Å"The tuition and Trend for Convenience Stores” from Managing Convenience Stores Theories, the Uni-President Enterprise Corporation (UPEC) had contributed the great authority to the step-up of convenience store in Taiwan (De vocalisationment of Economy, 2000). â€Å"In May 27, 1979, UPEC stated with cardinal chain stores and in this course, UPEC cooperated with the Southland Corporation, having the longest history and the biggest chain convenience store localise in South America, imported 7-Eleven to Taiwan” ( section of Economy, 2000).The offset 7-Eleven in Taiwan capable in 1980 with 27 stores and the sales event of this course was just altogether NTD 1. 2 gazillion. Although 7-Eleven grew 62 stores in 1984, the sale still did non improve a lot, and 33 stores had been unopen in this year (Lu and Luo, 2010). Nevertheless, the 7-Eleven troupe did non s exceed to outgrowth the number of stores; in 1987 they started to cook 24 hours with all 168 stores. Since this routine point, 7-Eleven started to expand their occupancy and in April 2010, 7-Eleven spread out with 4733 chain stores with a sale of NTD1017. 6 billion in a year (Lu and Luo, 2010).This paper will explore these pursuit questions: 1. Why 7-Eleven is so advantageful in Taiwan? 2. Does 7-Eleven’s mention’s company the Uni-President Enterprise Corporation (UPEC) role joins to the triumph of 7-Eleven? 3. What kinds of strategies 7-Eleven has? It is valuable to study why 7-Eleven plunder continue to improve and substantiate their strategies and backgrounds. What is the Uni-President Enterprise Corporation (UPEC)? get-go of all, to insure the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan, and engage how it influence the success of 7-Eleven. harmonise to the expression â€Å"The tax income for UPEC in April is 41. 92 billion and change ma gnitude annually by 7. 41%”, â€Å"The alone profit-making of UPEC in April recorded NT41. 92 billion, its ontogeny 7. 41% from last year at the same time” (Yang, 2011). Uni-President Enterprise Corporation (UPEC) is the wholly company in Taiwan, which has to a greater extent kinds of intellectual nourishment manufacture branches, and dozens of products tush be made through only one branch (Chang, 2006). Major municipal subsidiaries of UPEC are such as 7-Eleven, Starbucks umber Company, Mister Donuts, Muji (Taiwan) Co. , President Drugstore trade Corp. COSMED), President Transnet Corp. , Semeur De Pain and so on. We arsehole externalise at that prat are so more subsidiaries down the stairs the UPEC and each of them quite popular companies in Taiwan now. â€Å"While adequately integrating the subsidiaries of sell, logistics and recreational service companies at bottom the group, rapidly expanding its stemma territory” (Uni-President, 2007). The s ubsidiaries of UPEC’s note tie-up increased their business territory, and made UPEC more powerful company. In 2005, the profit-making of the nutriment industry UPEC exceeded over NTD 1,000 billion” (Chang, 2006).The aliment industry of UPEC is one of noted company in Taiwan, if you look about 7-Eleven’s viands categories, you will shortly found a lot of them are from its company. Now, we know such big solid solid sustenance industry behind 7-Eleven, is it related to the success of 7-Eleven? Food is important role in convenience store In the denomination â€Å"The Almighty Convenience Store, 7-11 and Family Mart Competes”, E-IPC, the analyze of Taiwanese people whose frequency to pick up convenience stores which stated from 1988, suggested those who answered once a workweek was 53. % in 1995; in 2009, those who answered to go in that location every week was 84. 7%, among them, the sum of those who answered third times 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% ( market. chinatimes. com, 2010). The age of main consumers who turn over capital in convenience store is 13 to 64, the E-IPC in 2006 to 2009, shown that those who answered visiting there every day was increased 30. 8 to 34% (Marketing. hinatimes. com, 2010). From the data, we can contain at once people visit the convenience stores more often than before. Then, what kind of people grow locomote regulars nowadays? The article shows that the Taiwanese population is by and large working segmentation; they at least bribe devil scanout meals per day, and these two meals are mostly breakfast and lunch (Marketing. chinatimes. com, 2010). Now, we know the main consumer of convenience store is the working syndicate people and their needs are fodder.According to the article â€Å"Local Convenience Stores development and adjacent in 2008”, the data of â€Å"Th e Private break up a style of four big convenience stores in Taiwan”( confuse 1) shows that 7-Eleven’s main products such as â€Å"Drinks, scented nutrition, snacks, coffees, workaday commodities”, all of them comes from UPEC company or their own 7-Eleven distinguishs (Wang. 2008). As to Family Mart, their main products are the â€Å" alert food and drinks”, Hi-Life’s are the â€Å"Fresh food and dairy products”, and OK is the â€Å"Fresh food” (Wang. 2008).Only Fresh food come from their own brands in Family mart, Hi-Life, and OK, and we can discern 7-Eleven has more many kinds of main products than others 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 | | | | urban center coffee bar |Coffees | | | | | unremarkable 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 | | | | quotidian commodities | | |OK |OK |Fresh food |Fresh food comes from their own OK brand | â€Å"Extended menu offerings submit 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 whitethorn be considered to be the innovate in introducing convenience stores fast food in Taiwan, and has since constantly innovated with the launch of sassy products (Euromonitor international. 2010). Besides, â€Å"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 other convenien ce stores, Family Mart appropriates less food and it whitethorn give distance with 7-Eleven’ luxuriously sale because people’s 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 likely on this; one is the products that they are currently selling. With the penetration of the stores, expanding their takeout meals market is besides 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). inborn business management of 7-ElevenAccording to the succession of â€Å"The Benchmarking Companies of digital Service in 2011”, 7-Eleven, or the President drawstring Store Corporation, clubed the top in retailer category, it can regular ize consumers are satisfied to the services of 7-Eleven (He and Yang, 2011). From this date, we can consider why 7-Eleven’s service performances are evaluated by consumers and what kinds of management manuals they start. According to the book of â€Å"Successful CVS Strategies” by Chen Kuang in 2006, stated the detailed and particular(prenominal) personal management is 7-Eleven’s canonic concept. There are three main management concepts of 7-Eleven such as work refinement, dinner dress management, and the core value to the consumers. First of all, the feature of 7-Eleven’s staff management is refinement work.For example, as to cleaning, â€Å"there are many stores are required to do cleaning but less stores have cleaning process and every division has its own commandments, 7-Eleven is such convenience store”(Chen, 2006). Even though cleaning which separate in what time, the way or the order to clean, using which tools to clean, all of which a re written in their management regulation, and role players should be fol economic crisis it every day. Their regulation is including such as cleaning of doors, floors, round of sales counter, electric car lights, parking areas, public telephone outdoor(a) the store, and so on (Chen, 2006). As to formal management, â€Å"Working Progress reports are written by every staff everyday, which can hold up the staff clearly consider when to do what at where and how” (Chen, 2006).Also, 7-Eleven execute working progress report for every worker once a time, which includes paygrade 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 harvest-festival for the company. â€Å"For example, 7-Eleven’s staff cannot answer â€Å"I don’t know” for their consumers’ question. They should for mulate ‘Could you wait me for a while, I’ll check it’, or ‘Can I ask your phone number? I’ll touching you if I know the result’” (Chen, 2006). They in like manner have seven technical voice communication which should say if they meet the consumers such as regular greetings, please watch your step, and take care.We can see the 7-Eleven’s personal management is truly detailed which increase their work qualification; likewise their regulation requires staff to be precise in work and have the right doings toward the consumers. Such 7-Eleven’s management may lead to the consumers’ satisfaction. Staff fostering and evaluation are besides the important part of 7-Eleven’s internal management. 7-Eleven has three rearing center in Taiwan such as Taipei, Taizhong, and Kaoshiung, where trains the new staff’s knowledge, attitude, skills, and abilities. â€Å"The new staffs take instruct come apartes for the first four and a half day and one left to do retail sales practice”(Chen, 2006).In addition, â€Å"7-Eleven training materials are renewed in every sextet months” which we can see 7-Eleven changes their management manual depends on the society condition or people’s need. As to managers training and evaluation of promotions, â€Å"the 80% to 90% of 7-Eleven’s senior management employees were raised from the staple fibre unit staff to be promoted” (Chen, 2006). For example, if a graduate college has performed well in the canonic unit staff, he will be the vice manager in three years (Chen, 2006). Employing people in the promoting way, which can maintain stable management, decrease employees’ fluidity. The workers through need to worry about their hereafter 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 harvest-feast of big stor es, and they cannot progress to their companies easily. However microscopic stores, especially convenience store, has more contingent 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 â€Å"The Comparison of 7-11 President commodious set up Stores, Family Mart Convenient concatenation Stores and Hi-life Convenient bowed stringed instrument Stores”, the research of the main convenient chain stores in Taiwan in 2007 showed that â€Å"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 start 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 overly having the strategies to set up it. â€Å"According to the Statistic suggested that the condition of location influences the store’s success of 60%” (Chen, 2006). To see 7-eleven’s geographical condition and figure their three important strategies such as confirmation of business place, Choosing the right place, and regale and evaluations.Confirmation of business place refers â€Å"the basic investigation of business place and know their warring market” (Chen, 2006) For example, the residential area is more stable for stores’ profit. The next, choosing the right place message that 7-Eleven forever and a day set in the consumers’ daily routes such as on the way of going to the work or indoctrinate, 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 es tablish or not (Chen, 2006). 7-Eleven ceaselessly investigate the place deeply, to consider either the place can lead 7-eleven’s success or not. Moreover, the central construction is as well one of 7-Eleven’s geographical strategies.It will consider four major gists from central construction that is decreasing the cipher of denote, increasing the image of the business, being controlled bring out 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 impertinent of school. There are five 7-Eleven around our school; some of stores are rill together because we sometimes see the employees go 7-Eleven in this store or work to that one. It can help each stores business and can cause great advertising effect for 7-Eleven. advertIf you watch any commercials on TV for a while, you will soon be aware that it is easy to find 7-Eleven advertisements. Recently, 7-Eleven’s commercials have increased, do these advertisements really influence the increasing of their profits? The article indicated that â€Å"After several failed attempts, 7-Eleven came out with the low price metropolis Cafe in 2004. However, with the success of commercial advertisements in 2007, 7-Eleven has been selling 30 million cups of coffee a year” (Taiwan insights, 2010). Whatever strategy does 7-Eleven apply and rises up its profits? Since November of 2009, the usage of hiring celebrities with unalike impressions to be with representatives, to have a plastered stands in the coffee market.According to the article â€Å"The motif of Reaching ‘The effect of advertisement’”(Table 2), in the data of December, 2009, â€Å"the rank of ‘Effective panelling of advertisement’ in coffee from chain stores and fast food restaurants, Ã¢â‚¬Ë œ7-11 CITY coffee shop’ is on the top. ” With the airing 157,846 times on classifys 7-11 CITY CAFE’ commercial have the highest budgets of 9,710,000 NTD. In return, CITY CAFE’ has helped 7-11 to overhear back a revenue of 17 times bigger than the actual cost being used for the campaigns. However, Family Mart has only an airing of 65,670 on inters, their advertisement effect is ranked the fourth (Liao, 2010). From the data, we can see 7-Eleven’s commercial on the screen increases their profits. Table 2 The ranking of effect of advertisement in December, 2009 Ranking |Products | diffusion times |Seconds | propagation on the screen|Effect 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 â€Å"CVC industries from May to October in 2009 ‘The ran k of Advertisement effect in 2009’”(Table 3), top ten among seven are UPEC, the top is 7-Eleven’s 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 stage your products to people, and also cannot earn a lot of revenue. The data shows large number of 7-Eleven’s advertisements on TV, and they make use of commercials sufficiently to lead their successful 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 | acceptable 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 | | | | | stopping point After the research of 7-Eleven, we can derive the 7-Eleven’s background and there are many kinds of strategies behind them.The 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) has a lot of subsidiaries whose business tip-up make each company’s development. For example, the food industry of UPEC supports 7-Eleven’s 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 UPEC’s 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 receipt to the upper levels. Moreover, 7-Eleven’s 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 Taiwan 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 people’s mind.For instance, â€Å"7-Eleven’s training materials are renewed in every half dozen months” (Chen, 2006), from there we can see they always change their materials depending on the passage of the time, it also makes 7-Eleven’s 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 give away 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/We bNews_Detail. aspx? ID=201012310013&Type=aMAG Chang, C. (2006, April 21). ??????????? 58?????? ???? â€Å"UPECs food industry profiting billions rooting in China”. ????. Retrieved from http://tw. nextmedia. com/applenews/article/art_id/2552607/IssueID/20060421 Chen, K. (2006, April). 7-11??????. Taiwan: ??????????. Department of\r\n'