Analysis of the Innovative Models Adopted by the Tourism and Hospitality Industries 觀光餐旅企業創新模式分析 ABSTRACT With rapid changes in the economic environment in the 21st century, the tourism and hospitality industries have grown rapidly within the economic systems, and its importance in some advanced countries has replaced that of industry. In the age of global competition, service innovation has gradually become a dominant subject of study in the service industry. As industrial structure changes, labor-intensive international tourist hotels, as a part of the service industry, relies on the macro environment for survival, and is also deeply affected by service innovation.Based on the theoretical framework of innovation in the tourism and hospitality industries, this study referred to the four aspects of innovation proposed by Rob Bilderbeek and Pim Den Hertog (1998), namely (1) new service concept, (2) new client interface, (3) new service delivery system, and (4) technological options. This study also treated the five top tourism and hospitality companies in Taiwan between 2005 and 2009 as case study companies, and analyzed their operational data on the innovation of corporate management. Keywords: Service Innovation, Tourism and Hospitality Industries 摘要 隨著 21 世紀經濟環境的急劇轉變,觀光餐飲業在經濟體系內不僅成長快 速,在幾個先進國家中的重要性與角色更是取代了工業。在全球化競爭的時代, 服務創新(Service Innovation)逐漸成為服務業的一門新顯學。隨著產業結構的快速 變遷,勞力密集的國際觀光餐飲業屬服務業的一環,營運成敗除了受外在環境的 景氣影響外,著實受其服務創新之影響甚鉅。本研究針對觀光餐飲業的創新理論 架構,主要以 Rob Bilderbeek 與 Pim Den Hertog 等學者於 1998 年 8 月發表之論文 中指出創新架構的四個構面:(一)新的服務概念(New Service Concept)、(二)新的 客戶介面(New Client Interface)、(三)新的服務傳遞系統(New Service Delivery System)、及(四)技術選項(Technological Options)為主軸,並以 2009 年台灣觀光餐 飲業前五大企業為案例公司,針對公司的經營資料,調查分析業者經營的創新或 獨特事項,供國內相關產業參考。 關鍵詞:服務創新,觀光餐旅 I. INTRODUCTION As the income level increases and the information technology advances in Taiwan, the public consumption demands have become more diverse and changeable, especially on service demands. As to industrial development, professional work division results in higher economic benefits; thus, the demand for innovative service also becomes significant. According to the statistics of the Council for Economic Planning and Development (CEPD), in 2002-2005, values of output in tourism service industry of Taiwan were only 2.1-2.6% in GDP and the percentages were lower than the global figure. In recent years, the Ministry of Transportation and Communications has actively combines local features to increase the economic value of the tourism industry. The CEPD optimistically estimated that by 2009, tourism service industry in Taiwan would reach 5.2 million person-times of foreign visitors, 120 million person-times of domestic travelers, and $448.3 billion NTD as output of value. Taiwan would become a popular tourist destination in Asia. As market competition intensifies, besides R&D of technical products, the innovation ability is also crucial to businesses. The earliest study on business innovation was proposed by J. Schumpeter, the German economist, who defined innovation in 1912, and suggested the classification of innovation in 1934. The five criteria of innovation are: (1) new products; (2) new production process; (3) expansion of new market; (4) new sources of supply for materials and semi-finished products; (5) to construct or avoid monopoly. His definition has been valued by the academia and business circles, and wide applied to enhance corporate competitiveness. Regarding the innovation theories for the service industry, “Services in Innovation: Knowledge Intensive Business Services (KIBS) as co-producers of Innovation” published by Rob Bilderbeek and Pim Den Hertog in August 1998 is the most representative one. The framework of innovation includes four dimensions: (1) new service concept; (2) new client interface; (3) new service delivery system and (4) technological options. Relation model and conceptual descriptions of four dimensions are shown in Figure 1 and Table 1: II. Literature Review A. Definition of innovation Schumpeter (1934) initially proposed the idea of innovation, and suggested that innovation is the core of economic growth. According to Drucker, innovation is the special function of entrepreneurship. Innovation and entrepreneurship are practice and 2 training. In other words, innovation must be applied to enterprise activities (Hsiao & Li, 1991). Upon the above study, Higgins & James (1995) indicated that innovation is the most significant corporate asset in the 21st century. It means that the process of invention would result in considerable value for individual, groups, organizations, industries or societies. Clark & Guy (1998) suggested that innovation is the process to transform knowledge into practical products. They emphasized the interaction between people, things and related organizations and information feedback in the process. Moreover, innovation is the main source of knowledge creation and diffusion of technology knowledge. Afuah (2003) indicated that innovation is to use new knowledge and provide customers with new services and products needed, including invention and commercialization. B. Types of innovation The above definition and content of innovation demonstrate that the dimensions of innovation are very broad, and can be examined from different perspective. Thus, scholars classify the innovation and the criteria of the classification are different. Some is based on subjects of innovation, such as technical, managerial, product and manufacturing innovation; some is based on innovation levels, such as jumping and sequential innovation; some describes innovation by different stages of innovation. Given the diversity of innovation, scholars also divide innovation into several types. Schumpeter (1943) initially proposed five types of innovation, including new products, new methods of production, new sources of supply, the exploitation of new markets and new ways to organize business. Daft (1978) divided innovation into “technical innovation” and “administrative innovation” which became the significant criteria for future scholars’ innovation classification. C. Characteristics of creativity According to the above views on creativity, most scholars suggest that creativity should be explained by multiple instead of one dimension. Thus, in recent years, the studies on creativity gradually adopt confluence approach (Sternberg & Lubart, 1995 & 1999), and treat creativity as a combination. In order to completely probe into creativity, it is necessary to integrate views of different schools and consider multiple dimensions as well as environmental and cultural factors. According to the confluence approach, the main factors of creativity include “intelligence”, “knowledge”, “thinking approach”, “personality traits”, “motive” and “environment”, as described below: Sternberg (1988) emphasized that creative thoughts are based on knowledge. When a person is ignorant about something, he would not produce any new related ideas. A person needs knowledge as a basis for further development in order to know how to apply and expand the innovation. Sternberg & Lubart (1995) further suggested how knowledge enhanced creativity: 1) knowledge allows people to reduce the possible ignorant risk when creating new works in certain field; 2) knowledge encourages those with creativity to be innovative; 3) knowledge enhances the production of high-quality products, and quality is also one of the indices of creativity; 4) knowledge allows people to focus on new things instead of wasting time on basic things. Based on the above, 3 creativity must be based on knowledge of specific fields in order to be the most effective. III. Research Method Data collection A. Literature Review This study generalized innovative models according to foreign and domestic scholars’ and experts’ statements on service innovation, particularly service innovation framework proposed by Bilderbeek et al. in 1998 (SI4S Synthesis Paper, 1998, “Services in Innovation: Knowledge Intensive Business Services(KIBS) as Coproducers of innovation”, Rob Bilderbeek, Pim den Hertog, Göran Marklund, Ian Miles). The innovation contents of the case companies were applied to the framework of four kinds of innovation as criteria for future studies. B. Information of operational environments of case companies This study probed into current operation and innovative characteristics of top five enterprises of hospitality service industry in 2005~2009 announced by the CommonWealth magazine, and collects data by the following methods: (1) Corporate websites: search for information on the corporate websites; collect and study related information. (2) Papers: collect the related articles from professional journals, reports, or master’s theses and dissertations. (3) Books: collect publications related to service innovation or on operational characteristics of the case companies. (4) News and reports in newspapers, magazines or on websites. C. Selection of case companies This study selected top five companies in the hospitality service industry from 2005 to 2009, and reorganized the representative innovation approaches. Top five companies are 85 Cafe, Wang Steak, Grand Formosa Regent, Sushi Express and President Starbucks. (1) 85 Cafe: Comestibles Master Group is the most well-known headquarters of chain stores in Taiwan. In 2009, the business volume reached $6.283 billion NTD. Its subsidiary company, 85 Café, has successfully established 91 chain stores from July 2004 to December 2005, and all chain stores gained profits. In 2005, it was voted by YAHOO as the first among the top ten headquarters of coffee chain stores, and successfully defeated Starbucks. In 2005, it received the Golden Jubilee Award as the number one consumers’ brand, the Golden Diamond for high-quality product, and the Golden Prize for the Top Ten High-quality Products in Taiwan. In 2006, its target was to sell 45 million cups of coffee, and enter the Chinese and overseas markets as a world-class brand. (2) Wang Steak: Wang Steak is well-known in Taiwan, as well as Tasty (steakhouse), Taoban (Japanese cuisine), Giguo (hotpot), Yuan Shao (BBQ) and new “ikki” (fine 4 Japanese cuisine). Wang Group has six brands in the food and beverage industry in Taiwan with 43 stores, including Wang Steak (11), Tasty (13), Taoban (11), Giguo (5), Yuan Shao (2) and ikki (1). In addition, it has developed 2 brands in China with 8 stores, including Wang Steak (6) and Tasty (2). In the US, it owns Porterhouse. Besides engaging in the food and beverage industry, Wang Group also own A+Math Center and Guinness World Record Witness Center. (3) Grand Formosa Regent: Grand Formosa Regent is devoted to enhancing the competitiveness of its hotels, and becoming the leader in the market. It has introduced TCE-Total Customer Experience to enhance service quality and satisfy customers’ expectation from customers’ perspectives. Besides upgrading the facilities and service quality from the TCE perspective, it has also integrated the departments of finance, procurement and HR. Since the opening of Grand Formosa Regent Tianhsiang (Hualien) in 1997, Grand Formosa Regent has become a wellknown hotel group in Taiwan. It form alliances with Four Seasons and The Regent Group in 1992, it has become a member of the large-scale chain hotel groups in the world, further enhancing its reputation and capacity. (4) Sushi Express: Sushi Express Group was formerly a subsidiary of Jing Chiu Co., Ltd., which specialized in garment export, founded in 1978. In order to expand diverse operations, the found of the company, Mr. Jing-chiu Chen, invested in the service industry in 1996, and founded the first take-out Sushi shop. In the same year, Sushi Express was established, and the business was expanded to wholesale and other food brands. It is the most successful example of transformation. Sushi Express Group focuses on Japanese food and wholesale of food supplies. Its sales channels include retailers and online shops. By 2005, there were 100 directoperated chains of Sushi Express around Taiwan. In 2006, the business was expanded to China, including Shanghai, Suzhou and Beijing. In 2007, the food brands, including Teishoku 8, Japanese hot pot and hot pot express, were established. In 2009, the business in China was expanded to Hong Kong. Currently, there are totally 254 direct-operated stores in Asia. (5) President Starbucks: President Starbucks Coffee Corp. was formally founded on January 1, 1998. It was the joint venture of Starbucks Coffee International in U.S. and President Corp. and President Chain Store Corp. under Uni-President Group. Starbucks Coffee Company of President Starbucks Coffee Corp. selected and baked high-quality coffee beans, and trained excellent local talents to provide high-quality coffee and service for consumers in Taiwan. With unique spatial design, consumers recognize Starbucks as a “third place” to enjoy coffee, outside of home and office. IV. Case Study A. History History of case enterprises is briefly described below: (1) 85 Cafe founded its baking department in January 2003. The brand was formally named 85 Café in July 2004. The first 85 Café in Australia was opened in September 2006; the first 85 Café in Shanghai was opened in December 2007, the 5 first 85 Café in the U.S. was opened in Irvine, California, in September 2008. By December 2008, there were 324 stores in Taiwan. By September 2009, there were 74 stores in China and 400 stores worldwide. (2) Wang Steak was opened in November 1992. By December 2004, there were six food brands (Wang Steak, Tasty, Taoban, Giguo, Yuan Shao, ikki) under Wang Group, including 43 stores. In addition, two brands were developed in China, with 8 stores: Wang Steak (6) and Tasty (2). In U.S., there was one brand (Porterhouse). (3) Grand Formosa Regent Taipei defines its position in the market as the most excellent and popular five-star international hotel in Taipei. The target consumers are international business travelers and local customers. The decoration is simple and elegant, and the service is delicate and sophisticated. It expects to provide highquality accommodation and food, and become the model of modern life in Taipei. (4) Sushi Express Group was formally under Jing Chiu Co., Ltd., founded in 1978. The founder Mr. Jing-chiu Chen began with garment export business. In order to achieve business diversity, Mr. Jing-chiu invested in the service industry in 1996, and founded the first take-out Sushi store. In the same year, Sushi Express was established, and he also extended the business to wholesale of food supplies and other food brands. It is the most successful example of transformation. (5) President Starbucks Coffee Corp. was founded on January 1, 1998. Its products play a leading role in food industry of Taiwan, China, Asia and the world. President Corp. is also one of the largest corporate groups in Taiwan. The related industries include feed, oil, food, drink, logistics, channel, finance, insurance, and recreation. B. Profits The case companies are included in the top 500 enterprises of the service industry by the CommonWealth magazine. They are also have stable operation and rich profits. The profits are shown in Table 2. C. Brand building (1) The mission of the Comestibles Master Group is to provide five-star products and fair prices to the public. With bright decoration and simple brand image, the stores allow consumers to enjoy the aesthetics and temptation of desserts in an open space. Its aim is to establish creative food stores that could trigger customers’ vision, taste and smell. (2) By strategy of horizontal development, Wang Group has created nine brands of food service over the past 16 years. The differences of the brands are their market positions and consumers. The management believes that small and medium enterprises are not suitable for diverse operations. It is because given a small scale, the resources are limited; moreover, under competitive markets and reduced internal demands over the recent years, business diversity would not be able to grasp special niches, hence, the business would soon be eliminated by the market. (3) By operational strategy upon profit and innovation, Steven Pan regained the stock ownership of Grand Formosa Regent Taipei and Tianhsiang by stock swap in 2000, and thus, Grand Formosa Regent entered into a brand new stage. As the president, Steven Pan reconstructed Grand Formosa Regent based on his 9 years of 6 managerial experience, as well as creativity in design and marketing. He enriched the content of the brand by culture, history and creativity. (4) Sushi Express Group focuses on Japanese food. The wholesale business targets retail channels and online shopping. By fair-price brands, such as Japanese sushi, hot pot, and hot pot express, the business was expanded to Hong Kong in China in 2009. There are currently 254 direct-sale stores in Asia. (5) The coffee business of President Starbucks emphasizes on humanistic characteristics and quality, focuses on its customers and employees, purchases the best coffee beans in the world, and provides consumers with the best coffee products and the most comfortable place. It has become a leading coffee brand in the world and is valued by international scholars who call it the “legend of the coffee kingdom”. D. Innovative structure of the Bilderbeek model Innovation frameworks of Bilderbeek, individual innovation frameworks and content of case companies are shown in Figures 2~6. E. Operational concepts and strategies (1) Operational concepts and strategies of 85 Cafe 1. Quality: enhance the overall product quality and produce high-quality products by high-quality equipments; strict management guarantees high quality. 2. Professional: product R&D to enhance high-quality competitiveness, emphasize professional talent training and enhance original advantages by products. 3. Innovation: respond to market environment, constant R&D by innovative thoughts to enhance international competitiveness. 4. Responsibility: always be responsible for the chain stores and consumers; constant guidance and support for the chain stores; maximum customer satisfaction to fulfill maximum corporate responsibility. 5. Diligence and Reliability: 85 Café is based on diligence and reliable attitude. 6. Customer satisfaction: continuously improving service attitude, beyond customer satisfaction. 7. Innovation and energy: pursue innovation and be energetic at work. 8. Lifelong learning: Everyone in 85 Cafe keeps learning modestly. (2) Operational concepts and strategies of Wang Steak 1. Honesty: honesty is the priority when treating people and things; be honest to the company, co-workers, suppliers, customers, government and families. Honest attitude is also reliable. 2. Team work: belief in positive chain reaction 1+1+1=9; with encouragement, everyone’s potential will be inspired. 3. Innovation: be creative, mature and modern, dare to challenge the tradition, not to be close-minded, and analyze everything by figures. 4. Satisfaction: satisfy the customers, company and people; satisfy oneself and it is not self-conceited but being modest. (3) Operational concepts and strategies of Grand Formosa Regent 7 Regent International Hotels Group constructs the word of mouth by unique customer service, careful attention, and persistent quality commitment. It also results in special Regent culture (“Regent experience”). It combines local customs and luxury and world-class hotels, and creates sincerity and personalized service. Each hotel of Regent International Hotels is considered a local business, and is modeled by its surrounding environment. It significantly reflects rich local cultural customs which sometimes can be mysterious. The customers in the hotels are in the unique atmosphere, and feel being well served. (4) Operational concepts and strategies of Sushi Express Group The materials of Sushi Express are directly delivered from the origins of production. 65% is imported from foreign countries and 35% in purchased in Taiwan. For instance, fresh salmons delivered from Norway six times a week, low temperature tunas from Kaohsiung Harbor and Donggang, as well as high-quality rice are strictly screened by central kitchen of Sushi Express. Logistics vehicles deliver the materials to direct-sale stores around Taiwan at 4℃ every day. The stores persist in 100% fresh materials and do not sell them on the next day. Health inspection is conducted every week. The requirement of details is to give the best to customers. (5) Operational concepts and strategies of President Starbucks In order to effectively reduce the impact on environment, Starbucks makes efforts on three points of environmental protection. 1. Source of coffee, tea and paper use 2. Product and personnel transportation 3. Shop design and operational approach (electricity and water resource, waste recycling and processing) V. Conclusions and Suggestions A. Conclusions The innovation approach of the hospitality business is based on framework of Bilderbeek model, including New Service Concept, New Client Interface, New Service Delivery System, and Technological Options. Moreover, the management guru Peter Drucker suggested that “innovation” means customer value and satisfaction by changing the resources. In lecture the “Blue Ocean Strategy of Service Industry Innovation”, Professor Shih-chun Hsu indicated four types of service industry innovation: (1) increase service content or options; (2) delicate content of original service content; (3) general effect of different service content; (4) independently operate certain service from the original organization; create new value by service innovation; construct unique image so that it is difficult for rivals to imitate or follow. It is called “Blue Sea strategy”, as shown in Table 3. By literature review, this study generalizes eight kinds of hospitality industry innovation: (1) operation and management innovation (e.g., IT, computers, information processing and internet); (2) marketing innovation (e.g., market segmentation and positioning of prices); (3) new products or new brand development innovation; (4) service content innovation (e.g., delicacy diversity and customization); (5) market 8 segmentation and positioning innovation; (6) general effects of resource integration or multiple service content. The operation is shown in Table 4. B. Suggestions Corporate innovative strategy aims to maintain the leading position in the industry; thus, it is insufficient to only rely on downsizing, cost reduction and process reconstruction. Companies must use resource scale, develop the employees’ potential and construct core profession in order gain competitiveness in the market. This study suggests that corporate innovative strategy should be based on network of primarysecondary framework, and treats the business group as an alliance of small enterprises and network of internal entrepreneurs. Upon common vision and overall operational strategy, the companies can construct powerful profit communities, develop core profession needed in group network, encourage innovation and entrepreneurship by employees, and achieve innovation through teamwork, in order to ensure sustainable development of the business groups. REFERENCES 1. Schumpeter, J. A. (1934), “The theory of economic development”, Harvard, Sternberg, MA. (Eds.), Handbook of Creativity. NY: Cambridge University Press. 2. Bilderbeek, R., Den Hertog, P., Marklund, G. and Miles, I. (1998), “Services in Innovation: Knowledge Intensive Business Services (KIBS) as Co-producers of Innovation”, Report of SI4S project, Step Group. 3. Drucker, T., Hattori, R. A., Rostain, A., & Wycoff, J. 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Descriptions of four dimensions of innovative service Dimensions of service innovation New Service Concept New Client Interface New Service Delivery System Technological Options Descriptions Innovation in manufacturing industry, such as introduction of new products or new production approach, is extremely specific. However, service innovation sometimes is obvious (e.g., logistics delivery and ATM), but it mostly is abstract. It is a kind of feeling of special agreement (e.g., ideas, concepts and problem-solving approaches). Service content of corporate service innovation is presented by marketing (e.g., selection of customer service, customized service, after-sale service support and home delivery) according to characteristics of original or potential customers’ demands. Employees’ potential is energized by organizational arrangement and training. Thus, the employees will be more capable of developing and providing innovative service in order to executive and deliver more precise service. Technology is not the necessary option of service innovation. For instance, supermarkets and cafeterias do not require high technology and they only need carts, warehousing system or cooking tools, careful selection of materials, etc. Table 2. Business volume of case enterprises in recent five years (unit: hundred million NTD) Years 2005 2006 2007 2008 2009 Company 85 Cafe 22.78 23.60 27.79 34.7 62.83 Wang Steak 26.86 34.70 43.15 46.57 52.85 Grand Formosa Regent 29.32 28.67 41.87 42.45 42.99 Sushi Express 21.68 21.61 27.68 35.94 37.48 President Starbucks 26.37 28.48 31.59 35.11 35.60 11 Table 3. Case hospitality firms upon four dimensions of Bilderbeek innovation (1) Dimensions New Service Concept New Client Interface Firms 1. It offers five-star 1. Target customers: 18-24 products and fair prices. years old students, young 2. Brand positioning: fivegeneration and most of star coffee, cake and baking them are females store 2. There are about 121 3. Small stores that chains in Taiwan (still specialize in tea and cakes: increasing); they are mostly 85 Cafe sell featured snacks and in northern and central drinks such as coffee, tea Taiwan. There are 68 stores and cake and provide in northern Taiwan, 43 delivery service. stores in central Taiwan, 9 stores in southern Taiwan and one store in eastern Taiwan. 1. Immediate reward and 1. Customers are share benefactors and co-workers 2. Unrelated to politics and are family members. Wang Steak government, stocks, out-of- 2. Dolphin reward system business investment and 3. Learn more, do more and loans play more 1. Private butler service 1. Introduce TCE-Total hotel: Tai Pan Residence Customer Experience to & Club enhance service quality; 2. Philosophy of Grand satisfy customers’ Formosa Regent: pursuit of expectation from prominence customers’ perspective 3. Operational strategy 2. Traveling plan of “homeupon profits and innovation to-hotel” of the club. Grand Formosa Regent 4. Because of cooperation with Carlson, headquarters of Grand Formosa Regent is located in Minneapolis, Minnesota, as Carlson group. The business offices are in L.A., New York, London and Tokyo. 1. The highest quality and 1. Actively create a dining the fairest prices are the environment with Sushi Express most key brand meanings international of Sushi Express Group. competitiveness, and serve 2. Sushi Express Group each customer by concepts 12 focuses on Japanese food, and wholesale business targets on retailer channels and online shopping. Emphasize human characteristics and quality; respect customers and employees President Starbucks of “health, nutrition and delicious”. 2. 10% serve charge in Sushi Express is cancelled 1. Promote the “Aid Plan for Bunun Children” to care for aboriginal children’s education. 2.Hold the “Blue Note Blend” in stores to promote local artistic activities 3. “Weave the rainbow for Atayal children by a cup of coffee” was held in stores around Taiwan Table 3. Case hospitality firms upon four dimensions of Bilderbeek innovation (2) Dimensions New Service Delivery Technological Options Firms System 1. 85C is the visual focus; it Exclusive food taking and is an easy-to-remember order window and process; brand open working space 2. Public relation of 85 Cafe advertising image; media publicity 3. Four stages of marketing (AIDA) are successful! Wang Steak 1. Plan of lion dance group Computerization process 1. In August 1992, Four e-reservation device to Seasons Hotel and Regent deliver data by WWW; Hotel formed an alliance. travel agencies can reserve 2. In November 1997, hotels of Grand Formosa Grand Formosa Regent Carlson group, as one of Regent only by keying in the leaders in the global the code "RE" chain tourism industry, acquired Grand Formosa Regent from Four Seasons. 1. In 2009, business in Logistics and online China was expanded to shopping Hong Kong; there are 254 Sushi Express direct-sale stores in Asia. 2. production: 65% is imported from foreign nations and 35% is 13 purchased in Taiwan 1. In 2002, President Starbucks Coffee Corp. had 100 stores in Taiwan. 2. President Starbucks establishes “Star Club” for public welfare President Starbucks Computer information system Table 4. Service innovation models of cases in hospitality industry Names of Grand firms Wang Sushi President 85 Cafe Formosa Innovative Steak Express Starbucks Regent approaches Operation and management Marketing Brand development Service content Market segmentation Resource integration Marketing New Service Concept The first dimension characteristic knowledge (corporate intelligence) New Client Interface The second dimension customers attributes (market information) Technological Options The fourth dimension ve De Dis trib utio n . Org me lop nt New Service Delivery System The third dimension skill and attitude (human resource management) Fig. 1 Four-dimension model of innovative service 14 Marketing Target customers: 1824 years old students, young generation, and most of them are females. It offers five-star products and fair prices to win the Taiwanese market. Exclusive food taking window and process; open working space ve De Dis trib utio n . Org me lop nt 85C is the visual focus; it is easy-toremember brand Four stages of marketing (AIDA) are successful. Fig. 2 Innovative structure of the Bilderbeek model for 85 Café Marketing Immediate reward and share Unrelated to politics and government, stocks, out-of-business investment and loans Customers are benefactors and coworkers are family members Dolphin reward system Computerization process ve De Dis trib utio n . Org me lop nt Plan of lion dance group Fig. 3 Innovative structure of the Bilderbeek model for Wang Steak 15 Marketing Private butler service hotel: Tai Pan Residence & Club Operational strategy upon profits and innovation Introduce TCE-Total Customer Experience to enhance service quality Traveling plan of “home-to-hotel” of the club e-reservation device to deliver data by WWW ve De Dis trib utio n . Org me lop nt Guest rooms feel like home In August 1992, Four Seasons Hotel and Regent Hotel formed an alliance. Fig. 4 Innovative structure of the Bilderbeek model for Grand Formosa Regent Marketing The highest quality and the fairest prices are the key brand meanings of Sushi Express Group Logistics and online shopping . Org ve De Dis trib utio n Actively create a dining environment and serve the customers by concepts of “health, nutrition and delicious” me lop nt Materials from origin of production: 65% is imported from foreign nations and 35% is purchased in Taiwan Fig. 5 Innovative structure of the Bilderbeek model for Sushi Express 16 Marketing Promote the “Aid Plan for Bunun Children” to care for aboriginal children’s education. Emphasize on human characteristics and quality; respect customers and employees Computer information system ve De Dis trib utio n . Org me lop nt In 2002, President Starbucks Coffee Corp. had 100 stores in Taiwan. Fig. 6 Innovative structure of the Bilderbeek model for President Starbucks 17