Documente Academic
Documente Profesional
Documente Cultură
"Main Entrance!"
report
convenience store
A little history on 7 Eleven They have more than 4600 stores in Taiwan
Toshifumi Suzuki
Floor layout
Customers tend to shop in a more deliberate and efficient manner Time spent on the whole buying process is crucial
Instant Noodles
Fresh Food: (Bread/Toasts) Cookies Chips Basic Necessities & Cosmetics Confectionery Products Canned & Food Fats and Oils Specialties
Counter
Entrance
Media Shelf
HH Necessities
Assortments mix
Category Group 2024 Ice Cream and Frozen Desserts Group 2026 Fluid Milk Group 2037 Fruit Juices Group 2038 Frozen Specialties Group 2051 Bread & other Bakery products Group 2052 Cookies & Crackers Group 2064 Candy & other Confectionary Products Group 2065 Chocolate & Cocoa Products Group 2066 Chewing Gum Group 2086 Bottled, Canned Soft Drinks & Water Group 2096 Potato Chips, Corn Chips & Snacks Group 2099 Food Preparations Major Brand(s) Uni-President Uni-President Uni-President 7-Eleven Uni-President Ritz Wrigleys Meiji Wrigleys Uni-President, Wei Dan 7-Eleven Uni-President, Wei Dan
Is NCTU 7-Eleven successful in attracting their targeted market to shop with them?
Their superior location is a major advantage over their competitors There is a wide array of fresh food which is replenished daily They can consider preparing more fresh food rather than microwavable
Buying behavior Seek to satisfy their hedonic needs Look upon celebrities as reference groups to guide them on the latest fashion
Consumer buying behavior of segment 2 Segment 2 - High net worth individuals (both local and international)
Annual income of at least USD 100,000, upper class of society, attend social functions regularly
Buying behavior Price of products are least of their concern They value the entire shopping experience more Obtain information from their own social networks on places to patronize to get the latest fashion goods
Retail Mix
Understanding the consumers needs is the foundation of a good retail strategy If you offer a retail mix oblivious to the market environment and your consumers need, they will patronize other shopping malls in the area Mall layout & design, Store mix, Retail communication mix
Types of Stores
Level Basement 1
Floor Guide Description Grand Market High quality food court and shops for urban living Avenue 101 Popular regional brands
Examples Jasons market, Grand Market Food Court Kenneth Cole, Bally, Ted Baker
Level 1 Level 2
Level 3
Level 4
Level 5
De Beers, Jean Paul Gaultier, Kookai The Galleries European and global flagship Cartier, Louis Couture stores Vuitton, Celine, IWC City Square High end restaurants and Wasabi Buffet, cafes Maxims de Paris Financial Centre Financial centre and banquet halls International Banquet Hall
Regional/Global Competition
Taipei 101 should look at the global competition
Work together with the other shopping malls in the Hsin Yi district Conduct coordinated sales promotions to attract shoppers
Introduction
Hennes & Mauritz (H&M), is a well known Swedish apparel company worldwide, with 1,800 stores spread across 35 countries. Offering fashion and quality at the best price. Aim to be located in the best business location. Taipei is the essential business center in Taiwan.
Factors To Consider
Target market
Fashion pursuer, good quality, middle price
Trade Area
Taipei City
Trade Area
Trade Area Zhongxiao Type CBD Accessibility Very High Competition Level Very High Demographic Type Employees, fashion pursuers Unique fashion pursuers Employees, students, travelers Students
Zhongshan
Artistic, Shopping Transportatio n center, cram schools, old CBD Teenager recreation
Medium
High
Very High
Medium
Ximen
High
Medium
Tienmu
Residence
Medium
Medium
Foreigners, residents
Sogo
MRT
Din Hao
at&t
MRT
Mango
Min Yao
Mango
NY NY
Movie Theater
Neo 19
Taipei 101
Retail Site
Retail Sites Accessibility Visibility Adjacent Stores Restriction & Cost
East Zone
Very High
High
13,000NT/pi ng/month
XinYi District
High
Medium
10,000NT/pi ng/month
Probability of Mango customer shopping at H&M: (136/5)/[(136/5) + (121/5)] = 0.529 Forecasted Sales at H&M = $0.529 * 5.94m = $3.14m East Zone (Sales at Sogo: NT4,000,000,000) H&M Average Store Size 136ping Sogo 3636ping
Organization Structure
Chairman
Jeffrey H. Brotman
CEO
James D. Sinegal
CFO
Regional GM
Divisional GM
Info systems
Regional COOs
The Directors
HR Management
Requirements: Every employee has to start work from the bottom regardless of education level 3 month probation period
HR Management
Reason: Reduce employment turnover rate Build up a pool of committed and loyal employees Understand how each department functions Facilitate the buying and selling activities
Hsinchu Personnel
To take into consideration the size and management practices of Costco. Administrative Personnel Floor Personnel
Administrative Personnel
DEPARTMENTS ADMINISTRATIVE Senior Management Membership Department Accounts Department Marketing Department 5 10 3 5 PERSONNEL
Purchasing Department
IT Department Logistics Department TOTAL ADMINSTRATIVE PERSONNEL
5
2 30
60
Floor Personnel
FLOOR PERSONNEL FLOOR PERSONNEL Pharmacy Pharmacy Optical Optical Tire Center Tire Preparation Food Center Food Preparation Operations and Maintenance 5 5 5
5 5 5 15
15 4 4 10 10 36 36 80 80 140 140
Operations and Maintenance Floor Helper/ Sample Personnel Floor Helper/ Sample Checkout Counters Personnel
Checkout Counters TOTAL FLOOR PERSONNEL TOTAL FLOOR PERSONNEL TOTAL PERSONNEL NEEDED TOTAL PERSONNEL NEEDED
Floor Personnel
FLOOR PERSONNEL Pharmacy 5
Optical
Tire Center Food Preparation
5
5 15
4
10 36 80 140
Information Systems
Electronic data interchange (EDI) Intranet Extranet: Costcos CRX (Collaborative Retail Exchange) program No RFID usage
Information Systems
Intranet
CRX: Vendor Managed Inventory System Inventory method: continuous review system (monitored continuously with each sale)
Extranet
Merchandise Management
It is about managing a portfolio of merchandise inventory. Uses their retailers information to monitor the performance of their merchandise portfolio. Buyers want to offer the right quantity of right merchandise. Want to avoid over stocking or a stock out situation Want to satisfy financial objectives
1. Forecasting Sales
Costco offers a majority of staple merchandises
Staple Merchandises Category Sales over many seasons Sales of a specific style over many seasons Sales vary dramatically from one season to the next
Yes Yes No
Sales Time
1. Forecasting Sales
A record of sales for each SKU is available. Buyers forecast future sales from extrapolating historical sales. Information from vendors about market research on merchandise categories is useful in buyers forecasting.
2. Assortment plan
A list of the SKUs that a retailer will offer in a merchandise category. Have to reflect the firms retail strategy, trade off between too much and too little assortment etc.
2. Assortment Plan
Costcos retail strategy: offering good products at good value. Costco offers a few SKU per category (4000SKU) - Fewer SKUs will reduce inventory investment, space
2. Assortment Plan
Costcos retail strategy: offering good products at good value. Costco offers a few SKU per category (4000SKU) Fewer SKUs will reduce inventory investment, space Avoid low merchandize turnover rate Better control E.g. Dairy products
Costco offers National and Private Brand Costco considers complementary SKU
5. Buys Merchandise
Requires a good information system
Averitt Express
Thank You!