Running head: 7-ELEVEN IN TAIWAN7-Eleven in Taiwan Yuko Matsumuro National Chengchi University 1 and investigate how it influence the success of 7-Eleven. or the President Chain Store Corporation.7-ELEVEN IN TAIWAN Abstract Nowadays. The paper focuses on why 7-Eleven is so successful in Taiwan and pursuits what is behind it. convenience stores have become more and more common in Taiwan. 7-Eleven. the paper will discuss the influences of 7-Eleven’s special marketing geographical strategy and their advertisement effects on consumers. At the beginning. If you just look around everywhere. is the most popular one now. Among several convenience store chains. In last. you will soon find there are a lot of convenience stores surrounding your town. to understand the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan. to consider how 7-Eleven’s service performances are evaluated by consumers and what kinds of management manuals they have. Also. based on the data which showed the consumers’ satisfaction towards 7-Eleven’s service. These information will help us know why 7-Eleven can continue to improve. 2 . “In May 27. in 1987 they started to work 24 hours with all 168 stores.184 stores around the country. 1979.6 billion in a year (Lu and Luo. Family Mart. UPEC stated with fourteen chain stores and in this year. 7-Eleven is the most popular one in Taiwan now. Although 7-Eleven grew 62 stores in 1984. 7-Eleven started to expand their business and in April 2010. Nevertheless. 2000). a density of one store per 2. “In 2009.7-ELEVEN IN TAIWAN Why 7-Eleven succeed in Taiwan? Introduction According to the article “Taiwan Convenience Stores 2010”. 2000). making Taiwan the densest market in the world in terms of convenience stores.” Among several convenience store chains. 7-Eleven expanded with 4733 chain stores with a sale of NTD1017. imported 7-Eleven to Taiwan” (Department of Economy. according to the article “The Development and Trend for Convenience Stores” from Managing Convenience Stores Theories. This paper will explore these following questions: 1. The first 7-Eleven in Taiwan opened in 1980 with 27 stores and the sale of this year was just only NTD 1.500 people. Taiwan’s four major convenience store chains such as 7-Eleven. 2010). Since this turning point. 2010). Hi-life. the 7-Eleven company did not stop to increase the number of stores. having the longest history and the biggest chain convenience store Company in South America. Why 7-Eleven is so successful in Taiwan? 3 . the sale still did not improve a lot.2 billion. and OK operated a total of 9. UPEC cooperated with the Southland Corporation. the Uni-President Enterprise Corporation (UPEC) had contributed the great role to the development of convenience store in Taiwan (Department of Economy. To think about the history of Taiwanese convenience stores. and 33 stores had been closed in this year (Lu and Luo. The food industry of UPEC is one of famous company in 4 . 2011). and made UPEC more powerful company. “The whole profit-making of UPEC in April recorded NT41. Does 7-Eleven’s parent’s company the Uni-President Enterprise Corporation (UPEC) role relates to the success of 7-Eleven? 3. President Transnet Corp. In 2005. Major domestic subsidiaries of UPEC are such as 7-Eleven.92 billion and increasing annually by 7. the profit-making of the food industry UPEC exceeded over NTD 1. President Drugstore Business Corp. 2006).. and dozens of products can be made through only one branch (Chang. to understand the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan. Mister Donuts. rapidly expanding its business territory” (Uni-President. The subsidiaries of UPEC’s business tie-up increased their business territory. Starbucks Coffee Company. its increased 7. (COSMED). According to the article “The Revenue for UPEC in April is 41.41% from last year at the same time” (Yang. We can see there are so many subsidiaries under the UPEC and each of them quite popular companies in Taiwan now. What kinds of strategies 7-Eleven has? It is valuable to study why 7-Eleven can continue to improve and understand their strategies and backgrounds. “While adequately integrating the subsidiaries of retail. 2007). Uni-President Enterprise Corporation (UPEC) is the only company in Taiwan.92 billion.41%”.7-ELEVEN IN TAIWAN 2.. and investigate how it influence the success of 7-Eleven.000 billion” (Chang. What is the Uni-President Enterprise Corporation (UPEC)? First of all. which has many kinds of food manufacture branches. logistics and recreational service companies within the group. Muji (Taiwan) Co. Semeur De Pain and so on. 2006). you will soon found a lot of them are from its company.chinatimes.com.chinatimes.chinatimes. snacks. Now.com. those who answered visited over twice a day was 7. and these two meals are mostly breakfast and lunch (Marketing. among them. those who answered to go there every week was 84. the data of “The Private Brand of four big convenience stores in Taiwan”(Table 1) shows that 7-Eleven’s main products such as “Drinks.8 to 34% (Marketing. we know the main consumer of convenience store is the working class people and their needs are food. if you look around 7-Eleven’s food categories. Now. 2010). As to Family Mart. From the data. suggested those who answered once a week was 53. the sum of those who answered three times a week and once a week was 50%. shown that those who answered visiting there every day was increased 30. The age of main consumers who spend money in convenience store is 13 to 64.7-ELEVEN IN TAIWAN Taiwan. the E-IPC in 2006 to 2009. coffees. 2010). daily commodities”.com. 2010). their main products are the “Fresh food and drinks”. and OK is the “Fresh food” 5 . surprisingly.1% in 1995. According to the article “Local Convenience Stores' development and future in 2008”. the research of Taiwanese people whose frequency to visit convenience stores which stated from 1988. 7-11 and Family Mart Competes”. Hi-Life’s are the “Fresh food and dairy products”. fresh food. 2008). in 2009. all of them comes from UPEC company or their own 7-Eleven brands (Wang. is it related to the success of 7-Eleven? Food is important role in convenience store In the article “The Almighty Convenience Store. answered going everyday was 34%. we know such big food industry behind 7-Eleven. they at least buy two takeout meals per day. Then. E-IPC.3% (Marketing. we can see nowadays people visit the convenience stores more often than before.7%. what kind of people have become regulars nowadays? The article shows that the Taiwanese population is mostly working class. 2010). 2008). The company derives its share from its convenience stores. the industry average is 20 percent” (Business weekly.” 7-Eleven may be considered to be the pioneer in introducing convenience stores fast food in Taiwan. At the end of 2009. and we can see 7-Eleven has more many kinds of main products than others because of the support of UPEC.7-ELEVEN IN TAIWAN (Wang.750 outlets. 2010). Table 1 The Private Brand of four big convenience stores in Taiwan (2008) Company Brands 7-11 做選素材 原味覺醒 CITY CAFÉ Family Mart Hi-life Main products Notes 7-Eleven Drinks Fresh food All products come from UPEC Snacks company or their own 7-Eleven Coffees brands Daily commodities Drinks Fresh food Drinks Daily commodities Fresh food Fresh food comes from their own Fami brand Fresh food comes from their own Hi-life brand Fresh food comes from their own OK brand Fami Hi-life OK OK “Extended menu offerings have successfully increased the importance of convenience stores foodservice offering. In Taiwan. there were 4. “Family Mart said the sale of fresh food items currently accounts for only 12 percent of its revenue. and has since constantly innovated with the launch of new products (Euromonitor international. Besides. Hi-Life. under the brand 7-Eleven. compared with other convenience 6 . Only Fresh food come from their own brands in Family mart. and OK. all of which are written in their management regulation. formal management. According to the book of “Successful CVS Strategies” by Chen Kuang in 2006.7-ELEVEN IN TAIWAN stores. the convenience stores’ targets the timing to do marketing strategies or other promotional plans. Then. 2010). how does the CVS chain store attracts the customers and creates non stopping motives for them to buy? There are two prospective on this. 2011). stated the detailed and specific personal management is 7-Eleven’s basic concept. For example. we can consider why 7-Eleven’s service performances are evaluated by consumers and what kinds of management manuals they have. the way or the order to clean. With the penetration of the stores. Internal business management of 7-Eleven According to the date of “The Benchmarking Companies of Digital Service in 2011”. First of all.chinatimes.com. and the core value to the consumers. 7-Eleven. expanding their takeout meals market is also an important marketing strategy (Marketing. as to cleaning. 2006). For example. it can say consumers are satisfied to the services of 7-Eleven (He and Yang. the feature of 7-Eleven’s staff management is refinement work. Therefore. Family Mart provides less food and it may give distance with 7-Eleven’ high sale because people’s needs are food. ranked the top in retailer category. 7-Eleven is such convenience store”(Chen. From this date. There are three main management concepts of 7-Eleven such as work refinement. or the President Chain Store Corporation. in 7-Eleven. using which tools to clean. and workers should be follow it every day. “there are many stores are required to do cleaning but less stores have cleaning process and every department has its own regulations.com. 2010). one is the products that they are currently selling.chinatimes. drinks and breakfasts are only 39 NTD to promote their products (Marketing. Their regulation is including such as cleaning of 7 . Even though cleaning which parts in what time. 2006). “7-Eleven training materials are renewed in every six months” which we can see 7-Eleven changes their management manual depends on the society condition or people’s need. Taizhong. They should say ‘Could you wait me for a while. For 8 . Also. where trains the new staff’s knowledge. attitude. please watch your step. They consider to receive the consumers’ heart is important for their value and the growth for the company. 2006). 7-Eleven’s staff cannot answer “I don’t know” for their consumers’ question. which can make the staff clearly understand when to do what at where and how” (Chen. and abilities. “Working Progress reports are written by every staff everyday. 2006). and take care. They also have seven technical words which should say if they meet the consumers such as regular greetings. 7-Eleven has three training center in Taiwan such as Taipei. As to formal management. skills. 2006). the customers' core value is to provide and support how 7-11 should run the business. Such 7-Eleven’s management may lead to the consumers’ satisfaction. Staff training and evaluation are also the important part of 7-Eleven’s internal management. Also. floors. 7-Eleven execute working progress report for every worker once a time. also their regulation requires staff to be precise in work and have the right behavior toward the consumers. We can see the 7-Eleven’s personal management is really detailed which increase their work efficiency. As to managers' training and evaluation of promotions. “the 80% to 90% of 7-Eleven’s senior management employees were raised from the basic unit staff to be promoted” (Chen. 2006). around of sales counter. public telephone outside the store. I’ll check it’. In addition. and so on (Chen.7-ELEVEN IN TAIWAN doors. 2006). electric lights. “The new staffs take training classes for the first four and a half day and one left to do retail sales practice”(Chen. which includes evaluation of oneself or other workers (Chen. or ‘Can I ask your phone number? I’ll contact you if I know the result’” (Chen. and Kaoshiung. “For example. parking areas. Marketing Geographical of 7-Eleven “Taiwan is a high dense populated region. Family Mart Convenient Chain Stores and Hi-life Convenient Chain Stores”. 2008). 2006) For example. 2006). According to the article “The Comparison of 7-11 President Convenient Chain Stores. However. it has limited for the growth of big stores. and has raised its publicity.7-ELEVEN IN TAIWAN example. “According to the Statistic suggested that the condition of location influences the store’s success of 60%” (Chen. the residential area is more stable for stores’ profit. they are not only increasing the number of stores. which can maintain stable management. which owned 51. Choosing the right place. The workers done need to worry about their future at the same time training rich experience staff workers. As we know convenience stores in Taiwan has been increasing their marketing territory nowadays. 2006). To see 7-eleven’s geographical condition and learn their three important strategies such as confirmation of business place. decrease employees’ fluidity. Confirmation of business place refers “the basic investigation of business place and know their competitive market” (Chen. The next. especially convenience store. Employing people in the promoting way. but also having the strategies to set up it. Family Mart Convenient Chain Stores owned 24. and address and evaluations.56% of the market . if a graduate college has performed well in the basic unit staff.33% of the market” (Workshop of Starting your own business with joining Chain Stores. However small stores.87% of the market. 7-Eleven shares more than half of the convenience store market in Taiwan. and they cannot establish their companies easily. choosing the right place means that 7-Eleven always 9 . 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.and Hi-life Convenient Chain Stores owned 14. 2000). has more possible to be future development mainstream” (Department of Economy. he will be the vice manager in three years (Chen. our school National Chengchi University. do these advertisements really influence the increasing of their profits? The article indicated that “After several failed attempts. and increasing the efficiency of delivery and decrease the amount of money and time spend on it (Chen. some of stores are running together because we sometimes see the employees go 7-Eleven in this store or move to that one.7-ELEVEN IN TAIWAN set in the consumers’ daily routes such as on the way of going to the work or school. It can help each stores business and can cause great advertising effect for 7-Eleven. 2006). to have a strong stands in the coffee market. Moreover. Recently. 7-Eleven always investigate the place deeply. 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. However. we can find three 7-eleven inside the school campus and two outside of school. 10 . 2006). It will consider four major effects from central construction that is decreasing the budget of advertising. the central construction is also one of 7-Eleven’s geographical strategies. the usage of hiring celebrities with different impressions to be with representatives. you will soon be aware that it is easy to find 7-Eleven advertisements. to understand either the place can lead 7-eleven’s success or not. with the success of commercial advertisements in 2007. Advertisement If you watch any commercials on TV for a while. Also. Whatever strategy does 7-Eleven used and rises up its profits? Since November of 2009. 2010). 7-Eleven came out with the low price City Café in 2004. being controlled better and the quality would be better. parks. 7-Eleven’s commercials have increased. and so on. 7-Eleven has been selling 30 million cups of coffee a year” (Taiwan insights. There are five 7-Eleven around our school. increasing the image of the business. For example. 442 65.159 Seconds 89. 2010).057. according to the date from “CVC industries from May to October in 2009 ‘The rank of Advertisement effect in 2009’”(Table 3).717 4.969 times.000 NTD.378 7.846 times on screens 7-11 CITY CAFÉ’ commercial have the highest budgets of 9. in the data of December.7-ELEVEN IN TAIWAN According to the article “The Report of Reaching ‘The effect of advertisement’”(Table 2). 2010). 2009 Ranking 1 2 3 4 Products 7-11 CITY CAFÉ Mc CAFÉ Hi-life Brown CAFÉ Family Brown CAFÉ Airing times 2. However. we can see 7-Eleven’s commercial on the screen increases their profits. ‘7-11 CITY CAFÉ’ is on the top.268 2. the top is 7-Eleven’s advertisement whose airing is 1. From the data. 2009. Table 2 The ranking of effect of advertisement in December.040 53.” With the airing 157.846 145.710. The data shows large number of 7-Eleven’s advertisements on TV.205 68.102 times of Family Mart.974 2. and also cannot earn a lot of revenue. and 11 .175 32. you will decrease the opportunity to introduce your products to people. compared with the second rank 524. “the rank of ‘Effective dose of advertisement’ in coffee from chain stores and fast food restaurants.670 on screens. their advertisement effect is ranked the fourth (Liao. Family Mart has only an airing of 65. top ten among seven are UPEC. In return.880 Times on the screen 157. but if you do not put action to increase your publicity. it is greatly high (Liao.532 3. CITY CAFÉ’ has helped 7-11 to earn back a revenue of 17 times bigger than the actual costs being used for the campaigns.707 8.500 130. As we know commercials costs money.670 Effect of ad 9.124 Moreover. 804 15. Especially. we can understand the 7-Eleven’s background and there are many kinds of strategies behind them.117 13.417 16.083 184.160 141.208 32.140 262.160 242.950 139. and increases their outlets than other convenience stores.102 485.7-ELEVEN IN TAIWAN they make use of commercials sufficiently to lead their successful of business.002 6.317 240. for the working class people whose purpose to visit convenience store is for the food.960 134. 2009 Raking 1 2 3 4 5 6 7 8 9 10 Products 7-11President Convenient Store Family Convenient Store 7-11Slurpy 7-11 CITY CAFE Welcome Supermarket 7-11OPENchan recharge card 7-11general lunch box 7-11Onigiri Family fabulous bread 7-11SMOOTHIE photosynthesis Airing times 29. For example.460 16.237 229. Also.341 28.098 5.821 256.250 30.734 8.309 290. and following its 12 .659 13.977 261.398 9. the detailed internal business management of 7-Eleven makes worker can understand clearly how they work and behave.510 Times on the Effect of ad screen 1.100 148.137 70.650 247.005 Conclusion After the research of 7-Eleven.795 119.738 414. 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.218 Seconds 626.840 96.631 16.969 524.900 3.729 16. Table 3 The rank of Advertisement effect in May to October.442 19.057. it can say the food industry of UPEC’s support relate to the success of 7-Eleven. the food industry of UPEC supports 7-Eleven’s variety of food products.162 7.109 11. 7-Eleven closed up 33 stores because of the crisis of management. and their brand of City Café in 2004 recorded low prize. Employing people in the promoting way also give them more faith for their work. they also cannot give a good response to the upper levels. If the management does not give the stable work condition for employee. from there we can see they always change their materials depending on the passage of the time. 13 . For instance. we will never understand why they are so popular in Taiwan and how they succeed. 2006). What can we learn from 7-Eleven is that even though the result is a failure. the history of 7-Eleven is not always successful but they come up with new ideas to solve the issues. If we do not know what is hiding behind 7-11. you forge ahead and try next without giving up. “7-Eleven’s training materials are renewed in every six months” (Chen. 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. the managements should consider a lot of possibilities to make their business more efficient and always observe people’s mind. Moreover. To the success of one company. In 1984. it also makes 7-Eleven’s continual improvement.7-ELEVEN IN TAIWAN regulations which increase the efficiency of each stores. nevertheless. (2006. Z. (2010. Y. January). December). Euromonitor international.com/convenience-stores-in-taiwan-become-a-strong-com petitive-factor/article He. (2010. Marketing.xkm. 蘋果日報. & Luo. May 01). W.【電視廣告效果】專題調研報告“The Report of reaching ‘The effect of advertisement’”.com/applenews/article/art_id/2552607/IssueID/20060421 Chen.pdf Liao. Taiwan: 中國生產力中心. 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