王品集團 case report
財政四 王瑜彤
財政三 李怡
財政三 蔡冠眉
國貿四 張兆嘉
13 SBUs OF WOW PRIME
Core Value
• People:
The more extensive people, the bigger the company.
• Group Culture:
Group culture is the root of a company, and a company
can be more successful with strong root.
Brand Value
• Restaurants Management Expert:
“Through our management system, we provide customers’ the
ultimate experiential enjoyment.”
• Excellent Brands Developer:
“1993, we built 11 successful brands. Through constant innovation,
we bring customers diversified dining experiences.”
• Profitable Business Model Creator:
“We have 20% increase in annual sales revenue and the profit is
reflected the result that we continued commitment to our
customers’ satisfaction.”
PRICING STRATEGY
<Relationships between some SBUs>
STEAK
JAPANESE
WANG
Ingredient
Champaign
✔
Salad
✔
TASTY
陶板屋
原燒
✔
✔
✔
Appetizer
✔
Antipasto
✔
✔
✔
✔
✔
✔
✔
✔
Soup
✔
✔
Bread
✔
✔
Rice
Main
✔
Plum Soup
✔
✔
✔
Sawa
✔
Vinegar
Dessert
✔
✔
✔
✔
Soft Drink
✔
✔
✔
✔
Price (10% Fee Excluded)
NT$1350
NT$518
NT$518
NT$628
A La Carte (Not Main)
NT$150
NT$110
NT$110
NT$100
Segmentation between WANG STEAK, TASTY, 陶板屋 and 原燒：
WANG
High price level of steak
TASTY
Medium price level of steak and the West taste
陶板屋
Medium price level of steak and the Eastern taste
原燒
Medium price level of steak and the Japanese Barbeque taste
Target between WANG STEAK, TASTY, 陶板屋 and 原燒：
WANG
Consumer with quite high budget constraint
TASTY
Consumer with medium budget constraint and
陶板屋
Consumer with medium budget constraint
原燒
Consumer with medium budget constraint and enjoy cooking for
him or herself
Positioning between WANG STEAK, TASTY, 陶板屋 and 原燒：
WANG
Exquisite food and high quality of serving
TASTY
Variety of food and rich flavor
陶板屋
Japanese flavor and creative cooking
原燒
Japanese barbeque and table service
• Why to launch two restaurants in the same price and supply same items?
FULLFILL DIFFERENT PREFERENCE!!!
Taiwanese always seeking for something new in food. And it is very
inexpensive in having such good service and steak. Therefore, there are
are a numerous potential customer. Besides, the two restaurants provide
different cuisine. Customers can choose one of them to fit their need. And
the company can serve more customers.
IKKI
Segmentation
Medium price level of Japanese cuisine
Target
Customer who likes to have a whole set of
Japanese food, since Japanese cuisine are usually
ordered a la carte
Positioning
Based on Japanese concept, European technique.
Having a series of new Japanese cuisine in a meal
<Pricing>
Whole set
Ingredient
Price(a la carte)
Soup
NT$110
Salad
NT$110
Steamed dish
✖
Rice
NT$110
Sea Food
✖
Iced Shake
NT$70
Main
NT$220
(Teriaki Chicken, Pork and Beef only)
Dessert
NT$110
Soft Drink
NT$90
NT$698
(Fee Excluded)
<70% Pricing>
• Pricing at the 70% of the customer’s expecting price
• Based on the customers
• Make it well worth its value
Famonn Coffee
• Different with others, Famonn Coffee provides
customers order coffee, cake and bread a la carte.
• Main Competition: 85°C, Starbucks
COFFEE(SIZE:L)
NT$60~90
NT$70~120
NT$38~60
NT$65~105
CAKE(ONE PIECE)
NT$95~155
NT$75~90
• Why FAMONN got the deficit five years in a row since it was launched？
Since that the coffee shop is a perfect competitive industry.
FAMONN doesn’t show its differentiation with other
competitions. Second, FAMONN is not as well-known as other
departments. And last, the crowd in Taiwan doesn’t have the
habit to have afternoon tea. It is much normal to take-out,
which is not how FAMOMM operates.
• FAMONN is going to raise the revenue by operating more stores around
Taiwan?
 Increase the reputation
 Depends on quantity？
1.Increasing the quantity will make the average cost decreases, BUT
2.While the operating cost increases, price stands still. In the short run,
before the average cost goes down, FAMONN should figure out
something to cost-down. So that the quantity will be doubt to be not
as well as usual.
3.Operating a new branch implies the wage cost, rent cost and so on.
It is not sure that the quantity will work.
Teppanyaki ---Hot7 vs. 夏慕尼
• Bundling of sales(free to accept or not):
(1) Hot７:
If consumer ordered a set of the meal cost
NT290 (+10% of service fees); otherwise it’ll cost each
dishes of NT60, and the total is much more than NT290,
so consumer will choose to order the set of the meal
to get much more buyer surplus than they thought .
(2)夏慕尼：
If consumer ordered a set of the meal cost NT1030
(+10% of service fees); otherwise it’ll cost each dishes
of NT130, and the total is much more than NT1030, so
consumer will choose to order the set of the meal to
get much more buyer surplus than they thought.
• STP between hot 7 and 夏慕尼：
Hotpot ---聚 vs. 石二鍋
• Bundling of sales (enforce to accept):
(1)聚 北海道昆布鍋：
Consumer should order a set of the meal cost NT359 (+10% of service
fees), or they won’t have other choices to have in this restaurant.
(2)石二鍋：
Consumer should order a set of the meal cost NT218 (without service
fees), or they won’t have other choices to have in this restaurant.
• Why they can enforce consumer to accept?
ELASTICITY!!!!!!!!!!
When people eating hotpot, they won’t only eat the soup, they
would like to have meat or vegetables, and they need to. So
consumers have the smaller elasticity about the ingredients.
Seller have bigger elasticity to decide the price.
• STP between these two hotpot restaurants：
Vegetarian food ---舒果
• Differentiation Strategy:
Vegetarian food restaurants in Taiwan cook in
Chinese favor in large part. 舒果 segments itself to
serve Milan Food, which is from Italy. It success to
have the big part of the market in the vegetarian
food restaurant. It provides set of meal in vegetarian
is also a different way from its competitors.
Italian food ---Ita 義塔
• Promoting Strategy:
(1)Member System:
If a consumer becomes Ita’s member, he’ll have
many other coupons. For example, he can get
different kinds of present every year, get 50%
discount on his birthday, or go to Vieshow theater
to watch a movie in different discount on different
days and so on.
(2)Price
Reduction:
If a consumer buy the coupon tickets of Ita, he’ll get
4% of discount if he buy more than 20 tickets at one
time.
TR=P*Q, when P↓, Q will↑
∆TR/∆P < ∆TR/∆Q, so P ↓ Q ↑, P*Q ↑
Profit=P*Q-TC, when P*Q ↑, TC constant
total profit will ↑
Pork ribs ---品田牧場
• Peak loading pricing strategy:
(1)Situation analysis:
It provides two kinds of price level of the set meal, one costs
NT258 and the other costs NT318. The NT258 one is only offered
at the lunch time on Monday to Friday. And the NT318 one is
offered at anytime, no matter on the weekend or at the
dinner time.
(2)Why is it peak loading pricing strategy?
1.
Lunch time on Monday to Friday:
Consumer is less, the seller need to expense the excess
capability to avoid wasting.
2.
Dinner time or on the weekend:
Consumer is much more, the seeker need to disperse
overloading amounts of people to keep the capability in the best
use.
INFORMATION ASSYMETRIC
Moral Hazard Problem of Wowprime
• Moral hazard occurs when one party takes more risks because
someone else bears the burden of those risks.
• One of the moral hazard events of Wowprime: The problem of
cooking oil made from recycled restaurant waste of Famonn
Coffee in 2014.
Recycled Pig Oil Case of Famonn Coffee
• During the food safety crisis in 2014, Famonn Coffee was detected
that they had used the recycled pig oil from the Chang-guann
Company to make their tomato vegetable soup.
• At first, Wowprime declared that they didn’t use the contaminated
pig oil. However, the government discovered Famonn Coffee used
three kinds of recycled pig oil after their second check.
Subsequent Handling
• Since Wowprime didn’t reveal the reality, the government would
penalize Wowprime for 3 million dollars at most according to the
Food Safety Law.
• Wowprime admitted they had used the questionable oil, but they
had already replaced it since it had misgivings. To compensate
customers, Wowprime announced that customers could get a
large-size drinks for free if they took their receipt to the stores.
Solutions to Moral Hazard Problem
• Reveal the origin of their ingredients to the public
To gain customers’ trust, Wowprime should declare the origin of
their ingredients to the public. As a result, customers can have their
meals without suspicion.
• Establish good enterprise image
Enterprise image is the first thing that customers know of a big
company. Therefore, a good enterprise image can gain customers’
faith and create a successful enterprise.
Conclusions
• In terms of the pricing strategy, same kind of food from different
restaurants of Wowprime might have different prices, so that they
can attract different level of customers. Besides, their meals are
provided by a set, making the meals full of diversification.
• Wowprime often holds different activities to raise their prestige.
Also, the unique style of each restaurant makes people remember
it in their mind since their first sight.
Suggestions
• Wowprime takes account customers’ opinion seriously. Each
restaurant provides feedback format to customers when they
finish their meal. However, Wowprime should consider adding
more ways to acquire customers’ feedback, for example, an
online comment system, etc.
• Beside trying to retain the original customers, Wowprime should
also think how to gain other people’s favor, so Wowprime can
become more and more popular among all customers.