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Running Head: The Successful Marketing Strategy of 7-Eleven Own Brand, 7-Select
The Successful Marketing Strategy of
7-Eleven Own Brand, 7-Select
Submitted by
Ruth Zeng
1098200103
Submitted to
Dr. Aiden Yeh
2
Wenzao Ursuline College of Languages
January 11, 2013
TABLE OF CONTENTS
Introduction ……………………………………………………………… . 1
Background: ……………………………………………………………… . 6
Theoretical Framework: ………………………………………………… .8
Methodology: ………………………………………………………………. 12
References: ……………………………………………………………… . 14
Appendix
Consent/Cover Letter …………………………………………………………16
Questionnaire/Interview Questions ……………………………………………18
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Introduction
In the role of strategy, marketing focuses on a business's intention in a market. It
represents the boundary between the marketplace and the company, and knowledge
current and emerging happenings in the marketplace is extremely important in any
strategic planning exercise. Actually, there are different marketing strategies between
different products, which are based on company's need. Basically, marketing strategy
deals essentially with the interplay of three forces which known as the strategic three
Cs: the customer, the competition, the corporation.It is an endeavor by a corporation
to differentiate itself positively from its competitors, using its relative corporate
strengths to better satisfy customer needs in a given environmental setting. (Subhash
C. Jain, 2000)
One of successful marketing strategies is branding. Generally speaking, brand is
a symbol of one company and it is the intangible assets. Using one brand, the
customers would know the product or make a position for one product or company.
Also, it can influence the customer’s perceptions and drive up the store choice and
loyalty.( C. Whan Park, Bernard & Deborah 1986) Also, Gardner and Levy
(1995)emphasis that communicating a brand image to a target segment has long been
regarded as an important marketing activity. It also writes that the long-term success
of a brand depends on marketers’ abilities to select a brand meaning prior to market
entry, operationalize the meaning in the form of an image, and maintain the image
over time. It means that brand is an important symbol for one company and a great
brand image can help company to establish a clear product positioning in customer’s
mind and also can insulate the brand from competition (Oxenfeldt and Swann, 1964).
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In these recent years, 7-Eleven had huge quantities of stores, about 4,820, in
Taiwan; however, they still created their new own brand, 7-Select, to establish their
product positioning in customer’s mind and also defeat their competitors. Therefore,
this research paper will study three parts: (1) why 7-Eleven needs to create their own
brand even if they have pretty huge quantities of store, (2) study what the successful
marketing strategy of brand and (3) does customer satisfy their own brand product.
The theory that will be used as the framework in this research is called the
Strategy Brand Management: Building Measuring, and Managing Brand Equity. This
book focus on three main parts: (1) understanding the perspectives of brand
management, (2) the equity and value of brand and (3) the process of developing
brand. The author uses these three main parts to show what brand is and how to
establish an outstanding and strong brand which can influence and persuade the
customer’s attitude and another important purpose is company can stand out from
competitors.
Above these questions and discussion, I distributed the questionnaire to
understand the customer’s opinions about 7-Eleven and its own brand, 7-Select. Also,
it can be seen if customers are satisfied with their product or not and if 7-Eleven is
successful in branding strategy focusing on the customers. The copy number of
questionnaire is about 100 copies. It was distributed to the participant who is college
student in Taiwan and bought the product of 7-Select before. The result shows that the
majority customers are satisfied the product of 7-Select and they agree with that
7-Eleven follows their belief, which 7-Eleven believes that the customers can own the
price and quality together, to serve customer. The rest customers think 7-Select’s price
is not reasonable and they are not willing to buy 7-Select product again. Although
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some customers disagree with that 7-Select is a successful brand in marketing, the
majority customer agree with it and they are willing to buy it. It show that the
acceptance of 7-Select is higher in marketing and it could be said a successful brand.
This research intends to contribute to make clear the reasons and advantages of
creating own brand for company and also for customers. It takes 7-Eleven’s own
brand, 7-Select for example. This research can show how 7-Eleven create its own
brand and demonstrate if it is successful or not. Also, it can be seen the position of
7-Eleven in customer and knew what the reason they are the loyal customers of
7-Eleven. In addition, it can be understand if the customer who bought the product of
7-Select because they are loyal customer of 7-Eleven or just because they agree with
the value of 7-Select or they think the product is good enough. In the end, this
research paper’s result and conclusion will make clear if one company needs to create
one brand to establish the image of store and company or not.
This paper is arranged as follows. The next section will be discussed the
background of this filed, which is retail industry in Taiwan. This is followed by the
theoretical framework from different literature. Then, it would provide the
methodology to explain how to solve and demonstrate the problems and discussions
and suggestion for future research conclude the paper.
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Background:
According to the seventh edition of the Standard Industrial Classification which
is issued by Directorate-General of Budget, Accounting and Statistic, Executive Yuan,
R.O.C (Taiwan) in 2001, the retail industry is defined as: the limited companies
whose main business is retail goods such as department stores, retail stores, street
vendors, gas stations, consumer cooperatives.
In the year of 1950 to1988, Taiwan’s retail industry was belonging to a
traditional and familial management. This management had some characteristics. For
example, the managers had not many concepts about management and they wait for
customers in store rather than carrying out some active or attractive promotions to
promote the goods. ( Liao, 2005) In that time, the retail industry was not popular even
the convenience. Liao (2005) also mentioned that until the year 1989 to 2003, large
international chains entered in the domestic, it stimulated the local industry and
leaded to change in the market. There were some change characteristics. For example,
stores were active, bright light, neatly arranged merchandise, popular prices and stores
extended hours to meet the different periods of consumer needs.
Now, according to the Department of Statistic of Ministry of Economic Affair
R.O.C, the statistics of retail industry of general merchandise show that the total
turnover in 2011 is about 628 billion and the total turnover in 2011 is about 978
billion. It shows that in these ten years, the total turnover is increasing about 300
billion in retail industry. Besides, the department stores accounted for the most market
share, it is about 27.03 % and the second is convenient stores, 24.64%
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By 2012, Taiwan has high density of convenience stores and competition is very
intense. Taiwan's four leading convenience chains, namely 7-Eleven, Family Mart,
Hi-Life and OK, have a total of 9,810 outlets for a population of 23 million. (Tan,
Chen, 2008) Among this huge number, according to the stores of official website, the
store’s number of 7-Eleven is about 4,820, Family Mart is about 2,814, Hi Life is
about 1,286, and OK is about 890. 7-Eleven gradually emerged in the domestic retail
industry, becoming the top of retail industry and also opened the gold time of
convenience stores in Taiwan. (Yang, 2005) This show that 7-Eleven is occupied the
most of marketing.
Convenience Stores
Quantity of Stores
7-Eleven
4,820
Family Mart
2,814
Hi Life
1,286
OK
890
Total
9,810
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Theoretical Framework:
According to American Marketing Association (2007), the definition of
marketing is: marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large. However, from the aspect of company,
marketing is seen as a task to promote the company’s outputs and products and also it
should find and stimulate the customer to buy goods. It can use pricing, product
development and communication to promote the product and sometimes some
changes of goods or creating a new creative product development are necessary for
stimulating the buyers.
Slater and Olson stated that marketing strategy is “a set of integrated
decisions and actions by which a business expects to achieve it marketing objectives
and meet the value requirements of its customers.” (2001, p. 1056). Marketing
strategy is concerned with decisions relating to market segmentation and targeting,
and the development of a positioning (Slater and Olson 2001). The marketing
segmentation is making the whole market divide into many small market segments.
The purpose is to better satisfy the needs of its potential customers. After the market
has been separated into its segments, the sellers will select a segment or series of
segments and target it. The targeting is evaluating each marketing segment’s
attractiveness and selecting target markets and it has to be sorted. The sort is
considered in the quality of customers in market and the ability of spending of
customers, and it also has to be thought about the advantages and disadvantages
which compare with competitors. The last step is positioning. The positioning is
finding the position for the selected targeting marketing segment. Choose the position
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depends on company’s resources and abilities and then trough marketing mix to
develop and convey the concept of selected positioning.
The tool which is creating, communicating, delivering product and value and
also achieving the goal of marketing is marketing mix. The element of the marketing
mix is the “4Ps”. 4Ps are product, price, place and promotion for short (Rajan
Varadarajan, 2009, P127). Description of 4Ps is provided below:
(1) Product: The Product management and Product marketing aspects of marketing
deal with the specifications of the actual good or service, and how it
relates to the end-user's needs and wants.
(2) Price: This refers to the process of setting a price for a product, including
discounts.
(3) Promotion: This includes advertising, sales promotion, publicity, and personal
selling, and refers to the various methods of promoting the product,
brand, or company.
(4) Place: This refers to how the product gets to the customer; for example, point of
sale placement or retailing.
For success in product, brand is a main tool to discriminate and differentiate
between own product and competitor’s in selected targeting marketing segment.
According to the American Marketing Association (AMA), a brand is defined as a
name, term, symbol, or design, or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate them from
those of competition. Creating a brand of one company is in terms of having actually
a certain amount of awareness, reputation, prominence, and so on in the marketplace
and choosing a name, logo, symbol, package design, or other attribute that identifies a
product and distinguishes it from others. These different components of a brand that
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identify and differentiate can be call brand elements (Keller, 1998). One way to create
the brand name is based on the tangible objects such as people, place, animal or birds
or other things or objects. The other way is based on the abstract meaning of company
or product like using words with inherent product meaning or that suggest important
attributes or benefits.
For a one brand, it should be integrated with product and it is also important to
contrast a brand and product. According to Phillip Kotler, a well-regarded marketing
academic, a product is anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a need or want. Another
well-respected marketing academic, Harvard’s Ted Levitt, concurs and argues that the
new competition is not between what companies produce in their factories but
between what they add to financing, delivery arrangements, warehousing, and other
things that people value. Thus, one company success in brand is not only just
producing great product, but also needs to combine the meaning of brand in their
product to convey to their customers and it also can show their difference with
competitors effectively.
Now, one company needs to use brand to show their reputation and also contact
value with its customer. In 1998, Keller bring up the CBBE model that is
customer-based brand equity for short. This CBBE model incorporates recent
theoretical advances and managerial practices in understanding and influencing
consumer behavior. It approaches brand equity from the perspective of the consumer
－whether it be an individual or an organization. Understanding the needs and wants
of consumers and devising products and programs to satisfy them are at the heart of
successful marketing (Keller, 1998). Also, David Aaker (1991) adopts a much broader
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view. His CBBE dimensions are: Brand loyalty, brand awareness, perceived quality,
brand associations, and other proprietary brand assets. Kapferer (1997) also extends
Keller’s approach by defining brands assets (his term for CBBE) to be: brand
awareness, brand image, perceived quality, evocations, and familiarity and liking.
The brand is connected to the product category, either in terms of specific beliefs
or meanings of one company, which wants to convey to customers. To create the
differential brand which has some kinds of meanings or attitude in product, it is
important that some of strongly brand associations are not only favorable but also
unique. The unique means that the brand needs to provide a competitive advantages
and reason to let customer think why they should buy it. Thus, how to build and create
a strong, unique brand is an important marketing strategy company needs to consider.
According to the CBBE model, building a strong brand can be thought of in terms of
a sequence of steps (Keller, 1998, P.75):
(1) Ensure identification of the brand with customers and an association of the brand
in customers’ minds with a specific product class or customer need.
(2) Firmly establish the totality of brand meaning in the minds of customers by
strategically linking a host of tangible and intangible brand associations with
certain properties.
(3) Elicit the proper customer responses to this brand identification and brand
meaning.
(4) Convert brand response to create an intense, active loyalty relationship between
customers and the brand.
These four steps of brand building are to create the right brand identity, brand
meaning, brand responses, and brand relationship between company and customers.
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Methodology:
Abstract
This paper studies that the successful marketing strategy of 7-Eleven own brand,
7-Select. If one company wants to contact its value with customer and also wants to
tell its customer about their spirit of brand and company indirectly, they might use
customer-based brand equity (CBBE) model to be their branding strategy. This CBBE
model understands the needs and wants of consumers and devises products and
programs to satisfy them are at the heart of successful marketing It approaches brand
equity from the perspective of the consumer－whether it be an individual or an
organization.
7-Select has it unique strategy in its product and spirit of brand. Its value is that
they believe the customer can own the price and quality together. It means that the
customer can use low price to buy the same high quality product, also it wants to
convey the information about its seven main advantages that are they would “Select
production, Select quality, Select price, Select content, Select rank, Select relief,
Select convenience” for customer. Therefore, this paper studies that if 7-Eleven’s
branding strategy is successful in conveying its value and spirit of brand or not.
Method
For these problems, I examine these by questionnaire. To studies that if customer
buy the product is because they agree with the value and spirit of brand or is another
reason. The questionnaire focus on three main parts that are store imagine of 7-Eleven,
spirit of brand, 7-Select and the product and price of 7-Select.
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Participants
The copy number of questionnaire is about 100 copies. .The population for this
research questionnaire is students from university and college. The participants are all
the people who bought the product of 7-Select or used the product before, because it
can be much credible, which the participants can use their own experience to finish
the questionnaire.
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References:
1. Subhash C. Jain, School of Business Administration University of Connecticut.
“Marketing Planning & Strategy, sixth edition “ (September 16, 2000)
2. C. Whan Park, Bernard J. Jaworski, & Deborah J. Maclnnis. “Strategic Brand
Concept-Image Management”. Journal of Marketing , Vol. 50(October 1986)
3. Kusum L. Ailawadi, Associate Professor of Business Administration, Tuck School
of Business Dartmouth College & Kevin Lane Keller, E. B. Osborn Professor of
Marketing ,Tuck School of Business Dartmouth College. “UNDERSTANDING
RETAIL BRANDING: CONCEPTUAL INSIGHTS AND RESEARCH PRIORITIES”
(Revised September 27, 2004)
4. Wee Kheng Tan, Assistant Professor Kainan University, Dept of Information &
Electronic Commerce No 1 Kainan Road, Luchu, Taoyuan County, Taiwan & Shih
Kuo Chen, Kainan University, Dept of Information & Electronic Commerce No 1
Kainan Road, Luchu, Taoyuan County, Taiwan. “USING SELF-SERVICE
TECHNOLOGIES (SST) IN A RETAIL SETTING: A STUDY IN TAIWAN’S
CONVENIENCE
STORE
CONTEXT”
(IADIS
International
Conference
e-Commerce 2008)
5.
全 家 便 利 商 店 企 業 網 ,
經 營 績 效 ,
取 自
http://www.family.com.tw/enterprise/about_mamage.aspx
6.
7-ELEVEN
全 國 最 新 店 數 ,
營 運 概 況
,
取 自
http://www.7-11.com.tw/company/about/Business.asp
7. Kevin Lane Keller, Amos Tuck School of Business Dartmouth College, “ Strategic
Brand Management: Building Measuring, and Managing Brand Equity” (1998)
8. American Marketing Association,
http://www.marketingpower.com/Pages/default.aspx
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9. Executive Yuan, http://www.ey.gov.tw/Default.aspx
10. Ministry of Economic Affair
http://www.moea.gov.tw/Mns/populace/home/Home.aspx
11. Rajan Varadarajan, Distinguished Professor of Marketing at Texas A&M
University Location Bryan/College Station,
“Strategic marketing and
marketing strategy: domain, definition, fundamental issues and
foundational premises”( September, 2009)
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Appendix
Appendix 1: Consent/Cover Letter
The Successful Marketing Strategy of
7-Eleven Own Brand, 7-Select
2012/12/21
Dear Participant:
親愛的受訪者:
My name is Ruth Zeng and I am a college student at Wenzao Ursuline College of
Languages. For my research paper in Research Writing course, I am examining
the successful marketing strategy of 7-Eleven own brand, 7-Select. Because you are
the loyalty customer of 7-Eleven, I am inviting you to participate in this research
study by completing the attached survey.
我是文藻外語學院的學生，我的名字叫做曾翊芳。 在研究寫作的課程裡，
我的研究論文需要探討 7-Eleven 自由品牌 7-Select 的成功行銷策略。因為您是
7-Select 的忠實顧客，所以我想邀請您藉由填寫附上之問卷參與這項研究。
The following questionnaire will require approximately around 10 minutes to
complete. There is no compensation for responding nor is there any known risk. In
order to ensure that all information will remain confidential, please do not include
your name. Copies of the project will be provided to my Research Writing instructor.
If you choose to participate in this study, please answer all questions as honestly as
possible and return the completed questionnaires promptly. Participation is strictly
voluntary and you may refuse to participate at any time.
接下來的問卷需要約十分鐘來完成。完成這份文件將不會獲得酬勞，同時也
不具有任何風險。為了確保所有資料的隱密性，請勿在資料中填寫您的姓名。此
研究的副本將提供給我的指導教授。如果您決定參與此項研究，請盡可能在回答
所有問題時，填寫真實的答案，並且盡速繳回。此項調查全屬自願性參與，您可
在任何時間點拒絕參與
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Thank you for taking the time to assist me in my educational endeavors. The data
collected will provide useful information regarding the satisfaction of new brand of
7-Eleven to customers. If you would like a summary copy of this study please do not
hesitate to contact me. Completion and return of the questionnaire will indicate your
willingness to participate in this study. If you require additional information or have
questions, please contact me at the number listed below.
感謝您花時間協助我完成此項研究。蒐集後的資料將提供關於顧客對
7-Eleven 自由品牌 7-Select 的滿意程度的寶貴資訊。若您需要此項研究簡要的
副本，請不吝與我聯繫。如期完成並繳回此份問卷即表示您參與此研究的意願。
若您還有任何疑問或需要其他資訊，請由下方的電話號碼連絡我。
If you are not satisfied with the manner in which this study is being conducted,
you may report (anonymously if you so choose) any complaints to The English
Department, Wenzao Ursuline College of Languages, 高雄市三民區民族一路 900
號, TEL：+886-7-342-6031; FAX：+886-7-342-7942.
若您對於此研究進行的方式有任何建議，您可向文藻外語學院英文系提出任
何反應(不具名)。地址: 高雄市三民區民族一路 900 號, TEL：+886-7-342-6031;
FAX：+886-7-342-7942.
Sincerely,
Ruth Zeng
[email protected]
Aiden Yeh, Ph.D.
Instructor
[email protected]
誠摯地感謝您的協助
曾翊芳
[email protected]
指導教授:葉佰賢 博士
[email protected]
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Appendix 2: Questionnaire/Interview Questions
This purpose of questionnaire is understand the your opinion about (1)7-Eleven’s
store image, (2)the brand image of 7-Eleven’s own brand, 7-Select, (3)the product of
7-Select and (4)the reflection after you buy it.
First part questions below are answering the personal information and the
frequency of going to 7-Eleven. The rest of questions are answering Agree, Disagree
and No comment, or if necessary, you should choose the reason or write down your
opinion and comment.
The definition of some terms:
*7-Select’s value: 7-Eleven believes that you can own the price and quality together
*7-Select’s original purpose of brand: Select production, Select quality, Select price,
Select content, Select rank, Select relief, Select convenience
I.
Personal Information.
 Male
 Female
2. Age:
3. How frequently do you go to 7-Eleven?
 once a month  once two weeks
 once a week
4. How frequently do you buy the goods of 7-Select?
 once a month  once two weeks
 once a week
everyday
 everyday
II. This part wants to understand your opinions about 7-Eleven’s store image.
1. I think 7-Eleven has a good store image.
a. Agree b. Disagree
c. No comment
2. I think the goods of 7-Eleven are put on shelf clearly and you can easy to find
the goods you want.
a. Agree b. Disagree
c. No comment
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III. This part is about the brand image of 7-Eleven’s own brand, 7-Select.
1. I buy the goods of 7-Select is because of its value of brand, which 7-Eleven
believes that you can own the price and quality together.
a. Agree b. Disagree
c. No comment
2. I agree with that 7-Select is following the value of brand to get price and
quality together to serve customers.
a. Agree b. Disagree
c. No comment
3. I buy the goods of 7-Select because I know the original purpose of its brand
name for seven selections.
a. Agree b. Disagree
c. No comment
IV. This part is about the product of 7-Select. (Price, Package)
1. I am satisfied with the product of 7-Select after I buy it.
a. Agree b. Disagree
c. No comment
2. Compare with the same product of other convenience store (ex: family
market, OK), I think the price of 7-Select product is much reasonable.
a. Agree b. Disagree
c. No comment
3. I think if the price of 7-Select product is lower, it might influence the quality
of merchandise.
a. Agree b. Disagree
c. No comment
4. I think the design of package of 7-Select can get my attention to buy it.
a. Agree b. Disagree
c. No comment
V. This part wants to understand your reflection after you buy the product of
7-Elect
1. I am satisfied with the product of 7-Select after I buy it.
a. Agree b. Disagree
2. If you agree, would you be willing to buy it next time?
a. Agree b. Disagree
c. No comment
3. If you disagree, what the reason is.
a. Too expensive
b. The quality is not good enough
c. Other. _________