Whether the “Premier Points Card”
activity at 7- ELEVEN is successful
than that at Family-Mart.
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Open-John team
9654016 陳顗伃 Kelly
9631018 江美儀 Mei-Mei
9631022 莊晴晴 Jenny
9631039 林怡汝 Karen
9631006 段思宇 Rachel
I. Introduction
• With intense competition of convenient store
recently, the two biggest store, 7-ELEVEN and
Family-Mart, have their own special way to market
merchandise. In these marketing activities, we have
noticed that the “Premier Points Card” activity at 7ELEVEN seems to get more attention to the public.
Thus, we want to talk about : whether the “Premier
Points Card” activity at 7- ELEVEN is successful
than that at Family-Mart.
II. Literature Review
A. Background of premier point card activity
- “Premier point card activity” is structured
marketing efforts that reward and therefore
encourage, loyal buying behavior.
- The first premier point card activity appear to have
been the “trading stamp programs”.
-They encourage repeat buying and thereby improve
both retention rates and “share of wallet” from
regular customers.
II. Literature Review
B. Premier point card activities among
convenience stores
- In 2004, 7-ELEVEN had promoted premium
program first.
- 7 months later, Family-Mart followed 7ELEVEN’s step.
- Since then, the business battles among
convenience stores were begun.
II. Literature Review
C.
Convenience
store
Business
Philosophy
7- ELEVEN V.S. Family-Mart
7-ELEVEN
Family-Mart
1.Leading customers to a
new quality of life.
2. Rapid responses of
consumers’ demand.
1.Take customers’
satisfactions as their top
priority.
3. Focus on “store image”.
Q.C. (Service, Quality,
and Cleanliness) business
principle thoroughly.
2. Implement the S &
II. Literature Review
• D. Uni-President’s Logistic Subconglomerates
-COSMED is a franchise drugstore for drugs.
-STARBUCKS franchise stores are known for their
coffee.
-Cold Stone Creamery is an expert in ice cream
-Mister Donuts insist on offering only the freshest
products in a variety of different flavors.
-Muji promotes a simple, natural and quality lifestyle
and insists on using carefully selected materials for
all products.
II. Literature Review
• E. The start of “Open-John”!
Name
Open-John!
Blood type
Type O
Birth place
Open planet
Birthday
11th July, 2006
Height
Height of 4 rice rolls
Weight
Weight of 2 pineapples
III. Problems
• “Premier Points Card” activity at 7-ELEVEN
seems to be more attractive, and we wonder
why “Premier Points Card” activity at 7ELEVEN catch more attention of customers
than activity at Family-Mart.
IV. Hypothesis
• Hypothesis 1: “Premier Points Card” activity at 7ELEVEN is more attractive to consumers than that at
Family-Mart.
• Hypothesis 2: The premium of Uni- Presidents’
subsidiaries, which Family-Mart doesn’t have, is the
most important reason that attracts customers to collect
the points of 7-ELEVEN.
• Hypothesis 3: As to cartoon figures, consumers may
prefer to exchange 7-ELEVEN’s Open-John’s figure to
Family-Mart’s cartoon figures.
• Hypothesis 4: Those who seldom go to 7-ELEVEN to
consume will go to 7-ELEVEN to consume specially
for its “Premier Points Card” activity.
V. Methodologies
• We will give customers of 7-ELEVEN in
NCTU the questionnaires. We made the
questionnaire on the net
http://www.my3q.com/
• Use the pie chart and statistic to analysis.
• There are total 48 people who done this
questionnaires on the internet.
VI. Research Analysis and Results
• Test of Hypothesis1
• By question 3: In all kinds of Premier Points
Card activities, which one would you like most?
• A.□ 7-ELEVEN（if you check this , please
answer number 4）
• B.□ Family-Mart（if you check this , please
answer number 5）
• C.□ others
The pie chart
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Null hypothesis: pA=pB
Alternative hypothesis: pA>pB
Level of significance: α=0.05
Criteria: reject the null if Z*>1.645
Analysis: Z*=8.415>1.645
Decision: reject the null at 0.05 level of
significance
• Conclusion: the true proportion of 7-ELEVEN
preference is more than Family-Mart.
• Test of Hypothesis 2
• By question 4: Is the main reason attracts you
to join this Premier Points Card activity of 7ELEVEN that you can get discount at the store
cooperated with Uni-Presidents enterprise?
• A.□ yes
• B.□ no
The pie chart
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Null hypothesis: pA=pB
Alternative hypothesis: pA>pB
Level of significance: α=0.05
Criteria: reject the null if Z*>1.645
Analysis: Z*= 3.055>1.645
Decision: reject the null at 0.05 level of
significance
• Conclusion: the proportion of approval is more
than disapproval.
• Test of Hypothesis 3
• By question 5: Comparing with Family-Mart’s
cartoon figure, you prefer redeeming 7ELEVEN’s Open-John figure?
• A.□ yes
• B.□ no
The pie chart
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Null hypothesis: pA=pB
Alternative hypothesis: pA>pB
Level of significance: α=0.05
Criteria: reject the null if Z*>1.645
Analysis: Z*=4.491>1.645
Decision: reject the null at 0.05 level of
significance
• Conclusion: the proportion of redeeming
Open-John’s figure preference is more than
Family-Mart’s cartoon figure.
• Test of Hypothesis 4
• By question 6: If you are more convenient to
consume at Family-Mart, would you increase
the consuming amount and frequency of 7ELEVEN because of its Premier Points Card
activity?
• A.□ yes
• B.□ no
The pie chart
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Null hypothesis: pA=pB
Alternative hypothesis: pA>pB
Level of significance: α=0.05
Criteria: reject the null if Z*>1.645
Analysis: Z*=0.408<1.645
Decision: fail to reject the null at 0.05 level of
significance
• Conclusion: the data doesn’t refute the
hypothesis that under stated conditions, the
probability of go to 7-ELEVEN and FamilyMart is the same.
VII. Conclusions
Hypothesis 1: “Premier Points Card” activity at 7ELEVEN is more attractive to consumers than that at
Family-Mart.
→It’s true.
Hypothesis 2: The premium of UNI- Presidents’
subsidiaries, which Family-Mart doesn’t have, is the
most important reason that attracts customers to collect
the points of 7-ELEVEN.
→It’s true.
Hypothesis 3: As to cartoon figures, consumers may
prefer to exchange 7-ELEVEN’s Open-John’s figure to
Family-Mart’s cartoon figures. →It’s true.
Hypothesis 4: Those who seldom go to 7-ELEVEN to
consume will go to 7-ELEVEN to consume specially for
its“ Premier Points Card” activity.
→It’s false.
Why is 7-ELEVEN more success?
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Promote their figures by many way
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TV commercials (Family-Mart only use this.)
Parade
Embedded Promotion in yoyo channel and
baseball games
Blogs
Stores
Why is 7-ELEVEN more success?
• Integrate the channels (7-ELEVEN only)
– Starbucks, Mister Donut, and Cosmed
• Innovation
– 7-ELEVEN develops a great amount of new products every
year.
– Except new goods, 7-ELEVEN also creates new services.
– For examples, delivery service and agency Receipt and
Payment service are the most revolutionary.
– Convenient stores not only sell goods, but also convenience.
7-ELEVEN always think how to integrate more daily
chores for consumers. So consumers can get all they need
in 7-ELEVEN. In further, it means 7-ELEVEN maybe
become an indispensable part in our life.
Why is 7-ELEVEN more success?
– Family-Mart is a follower. While 7-ELEVEN makes
promotions, Family-Mart always copies them.
– In 2005, 7-ELEVEN made the promotion that consumers
could collect points to exchange with something free.
– Because portrait rights of popular roles of cartoons had
been occupied, Family-Mart could not copy the promotion
in this time.
– Collection points for exchanging gifts have been taken by
other industries for a long time; for instance, credit card
industry. But it was first time in the convenient store
industry. Thanks to the promotion, the monthly revenue of
7-ELEVEN rose to an all-time high. It was 101 billion
NTD.
Integrate the channels
• Uni-President will have unmatchable
competitive edge since they include
Starbucks, Mister Donut, and Cosmed into
collecting point promotion.
• Points collected at 7-ELEVEN not only can
exchange goods in 7-ELEVEN, but also in
Starbucks, Mister Donut, and Cosmed.
• This will attract consumers.
Innovation
• Family-Mart always copy promotion programs
of 7-ELEVEN.
• In 2005, 7-ELEVEN made the promotion that
consumers could collect points to exchange
with gifts.
• Family-Mart could not copy the promotion in
this time. Because portrait rights of popular
roles of cartoons had been occupied.
Innovation
• Collection points for exchanging gifts have
been taken by other industries for a long time.
However, it was first time in the convenient
store industry.
• Thanks to the promotion, the monthly revenue
of 7-ELEVEN rose to an all-time high. It was
101 billion NTD.
Commends
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For 7-ELEVEN
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–
the quality of gifts is important to customers.
Make strategic alliance with other industries
which does not belong to Uni-President.
Commends
• For Family-Mart:
– Family-Mart should create some new idea for
marking.
– Family-Mart should make strategic alliance with
other companies for increasing attractive power.
– Family-Mart could offer free door-to-door delivery
service to make customers more convenient.
References
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Balasubramanian, S. K., Karrh, J. A., & Patwardhan, H. (2006), “Audience
response to product placements: An integrative framework and future research
agenda.” Journal of Advertising, 35, 115–141.
Auty, S., & Lewis, C. (2004), “Exploring children’s choice: The reminder effect of
product placement.” Psychology & Marketing, 21, 699–716.
Brennan, S., Rosenberger III, P. J., & Hementera, V. (2004), “Product placement in
movies: An Australian consumer perspective on their ethicality and acceptability.”
Marketing Bulletin, 15, 1–16.
Arjun, C. & Morris, B.H. (2001), “The chain of effects from brand trust and brand
affect to brand performances:the role of brand loyalty.” Journal of Marketing, 65, 2,
81-93.
Chaudhuri, A. & Morris, B.H. (2001), “The Chain of Effects from Brand Trust and
Brand Affect to Brand Perormance: The Role of Brand Loyalty.” Journal of
Marketing, 65, 81-93.
Gould, S. J., Gupta, P. B., & Grabner-Krauter, S. G. (2000), “Product placement in
movies: A cross-cultural analysis of Austrian, French and American consumers’
attitudes toward this emerging, international promotional medium.” Journal of
Advertising, 26 (4), 41–58.
Kotler,P. (2000), “Marketing Management,” 10th ed, New Jersey, Prentice Hall.
d’Astous, A., & Séguin, N. (1999), “Consumer reactions to product placement
strategies in television sponsorship.” European Journal of Marketing, 33, 896–910.
References
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Afuah (1998), “Innovation Management: Strategies, Implementation, and
Profits,” New York: Oxford University Press.
Gardener, E. and Trivedi, M. (1998), “A communications framework to evaluate
sales promotion strategies,” Journal of Advertising Research, May-June, p67-71.
Baldinger, A.L., Rubinson, A.K., & Joel, M. (1996), “Brand loyalty: the link
between attitude and behavior.” Journal of Advertising Research, 22-33
Bhote, K.R. (1996), “Beyond Customer Satisfaction to Customer Loyalty- The
Key to Greater Profitability.” American Management Association, New York,
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Higgins, J. M. (1995), “Innovation: The Core Competence.” Planning Review 23,
no.6: 32-25.
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Management Journal 14, no.2: 135-144.
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Journal of Management Science 17, no.1: 99-120
Drucker, P. F. (1985), “Innovation and Entrepreurship: Practice and Principles.”
London: William Heinemann.
Student：Shu Chiung-Fang Advisor：Wang Chao-Ming(2005) “The Study of
Selling Private Brand Products of Convenience Chain Stores for Consumer
Behavior Effect --Example by 7- ELEVEN Convenience Store’s OPEN-Chan
Toy Figurine”.
Student: Huang Cing-Yu Advisor：Huang Jen-Hung(2006) “The Study of
Effects of Symbolic Meaning and Customer Value on Collecting Behavior of
Collectable Premium”.
References
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Liu, Matthew Tingchi; Brock, James L. “Redemption behavior for credit card
reward programs in China”
Liao Yin-Ru & Wang Qiao-Ting & Li Yun-An “Marketing Research of “7ELEVEN”and “Family-Mart” convenience stores in Hualien area”.
Journal of Uni- President, Taipei, 2005
Tain-Xia Magazine, Taipei, 2005
<Appendix I> Questionnaire in English
• Dear all:
This is an academic research questionnaire, the
purpose is to understand "the difference of Premier
Points Card activity between 7- ELEVEN and
Family-Mart." I would like to conduct a survey and
please provide your valuable information. Your
answers will be important to the success of our
research, and I hope you to answer truly. As the
survey is confidential, please feel safe to answer. I
truly appreciate your assistance.
1.How often do you go shopping at a convenient store within a week?
• □ 0~3 times
• □ 4~7 times
• □ more than 8 times
2. When you choose convenient store, which one will you prefer?
• □7-ELEVEN
• □Family-Mart
• □others
• □no effect
3.In all kinds of Premier Point Card activities, which one would you like most?
• □ 7-ELEVEN
（if you check this ,please answer number 4）
• □ Family-Mart
（if you check this ,please answer number 5）
• □ others
4. Is the main reason attracts you to join this Premier Point Card activity of 7ELEVEN that you can get discount at the store cooperated with UNIPresidents enterprise?
• □ yes
• □ no
5. Comparing with Family-Mart’s cartoon figure, you prefer redeeming7ELEVEN’s Open-John figure?
• □ yes
• □ no
6. If you are more convenient to consume at Family-Mart, would you increase
the consuming amount and frequency of 7-ELEVEN because of its Premier
Point Card activity?
• □yes
• □no
－The questionnaire is finished . Thanks for your assistance!
<Appendix II> Questionnaire in Chinese
• 我們希望藉由這份問卷來瞭解7-11和全家便
利商店的集點活動之間的差異性，目的是
學術上的研究並不會涉及商業用途，請安
心作答。請您依真實情況回答。非常感謝
您撥空填寫此問卷。
1. 請問您在一個禮拜內，至便利商店消費頻率為
• □0~3次
• □4~7次
• □8次以上
2.而當你在選擇消費店家時，哪一家企業會是您的偏好？
• □7-11
• □全家
• □其他
• □無影響
3.請問您在如此眾多的集點活動中，您最喜歡何者？
• □7-11
• □全家（選此選項者請跳至填答第五題）
• □其他
4.請問促使您參與7-11集點活動的主要原因為可獲得與統一企業合作店
家的優惠嗎？
• □是
• □否
5.相較於全家的好神公仔，您會比較想兌換7-11open將公仔而非好神公仔？
• □是
• □否
6.若您平常至全家便利商店消費較為方便時，請問您是否會因為這次7-11
的集點活動，而增加您至7-11的消費量及消費次數？
• □是
• □否
再次感謝您的配合！