7-ELEVEN IN TAIWAN Yuko Matsumuro

Introduction Convenience stores in Taiwan A total of 9,184 stores around the country Taiwan convenience store chains have become the densest market in the world 7-Eleven is the most popular one

The history 1980 The first 7-Eleven opened in Taiwan 27 stores NTD 1.2 billion 1984 7-Eleven grew 62 stores 33 stores had been closed in this year 1987 Started to work 24 hours 168 stores 2010 4733 stores NTD1017.6 billion 2011 4757 stores

Questions Why 7-Eleven is so successful in Taiwan? Does 7-Eleven’s parent’s company the Uni-President Enterprise Corporation (UPEC) role relates to the success of 7-Eleven? What kinds of strategies 7-Eleven has?

What is UPEC? & Food

What is UPEC?

Food is important role in convenience store 1 E-IPC, the research of Taiwanese people whose frequency to visit convenience stores which stated from 1988 1995 Answered once a week was 53.1% 2009, Answered once a week was 84.7% among them… 50% : three times a week and once a week 34% : everyday 7.3%: over twice a day

Food is important role in convenience store 2 Answered more than twice a day mostly working class they buy two takeout meals at least per day (mostly breakfast and lunch) Example:7-Eleven, Drinks ＋ breakfasts ＝39 NTD

The Private Brand of four big convenience stores in Taiwan (2008) Company Brands Main products Notes 7-Eleven 7-11 做選素材 原味覺醒 CITY CAFÉ Drinks Fresh food Snacks Coffees Daily commodities All products come from UPEC company or their own 7-Eleven brands Family Mart Fami Fresh food comes from their own Fami brand Hi-life from their own Hi- life brand OK from their own OK

Personal management

Personnel management 1 The research shows consumers are satisfied by 7-Eleven’s services How 7-Eleven’s service performances are evaluated by consumers? What kinds of managements do they have?

Personnel management 2 Detailed and specific personal management i. Work refinement Example: Cleaning ii. Core value Example: 7-Eleven’s staff cannot answer “I don’t know” for their consumers’ question. Seven technical words

Staff training and evaluation Doing retail sales practice Training materials are renewed in every six months

Marketing Geographical & Advertisement

Marketing Geographical 1 Geographical condition “According to the Statistic suggested that the condition of location influences the store’s success of 60%” (Chen, 2006). Confirmation of business place Choosing the right place

Marketing Geographical 2 Central construction Decreasing the budget of advertising Increasing the image of the business Being controlled better and the quality would be better Increasing the efficiency of delivery and decrease the amount of money and time spend on it

The rank of Advertisement in May to October, 2009 (Unit: a thousand dollars) 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 photosynthesis 3,218 96,510 184,137 13,005

Conclusion 7-11 is still increasing Keys to Success: Understand Analyze Strategic thinking

Thanks!!