1. “Fresh Coffee, Served Right!
7 Eleven Coffee
“Fresh Coffee, Served Right!
Before Your Eyes”
Donguk, Kim
Kyungil, Choi
Minseok, Park
JinHo Lee
Hello we are south korean group
Today we are going to present about the fastest growing coffee brand in Japan
Coffee market in Japan is change rapidly, and we focused on the weak sign of the market change.
And We want to apply this coffee brand in China

2. Marketing THE 7 eleven coffee01 02 03 04 05 06
About
7 eleven
Success of
Low price coffee
Key Success
Factor
Coffee Market in China
Marketing THE 7 eleven coffee
in China
Q&A
First, We will tell you 7 eleven briefly, and tell you about recent success of low price coffee in Japanese market also we will find key success factor of that product.
Then we will analyze Chinese coffee market and finally we will tell you about our marketing plan for China

3. About 7 eleven
58,300 convinience stores (as of January 2016) in 17 countries
In 1927, Southland Ice Company employee John Jefferson Green began selling eggs, milk, and bread from one of 16 ice house storefronts in Dallas, with permission from one of Southland's founding directors, Joe C. Thompson, Sr.[6] Although small grocery stores and general merchandisers were available, Thompson theorized that selling products such as bread and milk in convenience stores would reduce the need for customers to travel long distances for basic items. He eventually bought the Southland Ice Company and turned it into Southland Corporation, which oversaw several locations in the Dallas area.
In the late 1980s, Southland Corporation was threatened by a rumored corporate takeover, prompting the Thompson family to take steps to convert the company into a private model by buying out public shareholders in a tender offer.[11] In December 1987,John Philp Thompson, the chairman and CEO of 7-Eleven, completed a $5.2 billion management buyout of the company.[12] The buyout suffered from the effects of the 1987 stock market crash and after failing initially to raise high yield debt financing, the company was required to offer a portion of stock as an inducement to invest in the company's bonds.[13][14]
Various assets, such as the Chief Auto Parts chain,[15] the ice division,[16] and hundreds of store locations,[17] were sold between 1987 and 1990 to relieve debt incurred during the buyout. This downsizing also resulted in numerous metropolitan areas losing 7-Eleven stores to rival convenience store operators. In October 1990, the heavily indebted Southland Corp. filed a pre-packaged Chapter 11 bankruptcy in order to transfer control of 70% of the company to Japanese affiliate Ito-Yokado.[18]
Southland exited bankruptcy in March 1991, after a cash infusion of $430 million from Ito-Yokado and Seven-Eleven Japan. These two Japanese entities now controlled 70% of the company, with the founding Thompson family retaining 5%.[19] In 1999, Southland Corp. changed its name to 7-Eleven, Inc., citing the divestment of operations other than 7-Eleven.[20] Ito-Yokado formed Seven & I Holdings Co. and 7-Eleven became its subsidiary in In 2007, Seven & I Holdings announced that it would be expanding its American operations, with an additional 1,000 7-Eleven stores in the United States.
Established in 1927 in Dallas
Japanese affiliate itoyokado’s take over ownership in 1991

4. Japan’s coffee market
■ Source : Marubeni Corp trading Company of Japan)

5. 7-eleven’s success factor

6. 7 eleven in China

7. History of Coffee in China
Phase – 1
Appearance of
instant coffee.
Incidence :
Nestle entered into China’s market with a slogan of
“Coffee—A good beginning of a day”
Results :
Gradually, Chinese people were affected by the western lifestyle and accepted coffee.
Phase – 3
Starbucks entered into China
Incidence :
Starbucks occupied a large market share in a short time, making ground coffees like espresso and cappuccino became a kind of fashion drink.
Results :
Western lifestyle has rooted deeply in the mind of more and more Chinese young customers in this period.
Phase – 2
Arrival of
ground coffee.
Incidence :
Such as UBC Coffee, advocated fresh ground coffee, and expand throughout China with franchise business model.
Results :
Coffee flavor were accepted by an increasing number of people.
Phase – 4
A variety of coffee franchise brands entered
Incidence :
A growing number of coffee franchise brands occupied China’s coffee market
Results :
The monopolization of Starbucks was broken.

8. Coffee Market in China ▪ China’s coffee market
- Instant coffee(coffee mix) is decreasing
- RTD coffee(canned coffee) is decreasing
- Fresh coffee(brewed coffee) is increasing
RTD stands for “Ready to Drink”

9. Coffee Market in China ▪ Market share - Star bucks have 31.5%
Market Growth
Etc
Mac
Costa
Zhe
jiang
▪ Market share
- Star bucks have 31.5%
- UBC coffee have 22.5%
- Zhejiang have 7.7%
▪ Low price coffee
- only Mac coffee sell cheap coffee

10. China Coffee Market Positioning Map
High
Price
Low
High
Brand Image
Target Market
Low

11. China Coffee Market STP
Segmentation
Target Market
Positioning
Demographic
20s ~ 40S
Primary Segment: Students
Key Exemplars:
low price
Psychographic:
Price Sensitive
Rational
Secondary Segment:
Office worker
Point of Parity Dimension(s)
High quality
Behavioral Take out coffee
Tertiary Segment:
Housewife
Point of Difference Dimension(s)
Everywhere you can buy
This is china coffee market stp. 7eleven’s main strategy is cost leadership. So they are focusing on price sensitive customer. Their segmentation is demographically 20~40 psychographiclly price sensitive and rational, behaviorally they prefer take out coffee. So they target customer is first students. They don’t have enough money to spend $4 for just coffee. Second target is office worker. They don’t have enough time to stay in café after lunch. Because the lunch time is just 1 hour. Third target housewife. They are the most price sensitive group. So Seveneleven position is low price. And point of parity is high quality. Actually raw matuial cost is very cheap. Starbucks mariral cost just 30 euro. They can use same one or better one. And point of difference is 7 eleven is everywhere and open 24hour. Customer can buy high quality coffee whenever they want.

12. China Coffee Market 5Ps People Price Place Product Promotion
Hire Chinese management level
Survey customer group to determine needs
Price
Low price and differential price between take out and in store
Using Chinese favorite number ex) Americano: 8.88￥
Place
Near school and office town
- Where customers mainly take out coffee.
- Where rational customers are
This is 5ps. First people, they have to hire more local people as mangement level and survey customer group to determine need and taste. Next is price. It is now just how much it is. Chinises people really like number 8. for example 8888 phone number is aroud 100,000달러. We can provide the coffee 8.88위안 which is 1유로. Next place should be near school and office town. Actually 7 eleven store are already there. Next poduct, they have to provide high quality coffee using premium coffee bean such as rainforest alliance certified beand. And they have to localizing taste and provide. Lastly promotion they can co promote with local mart, depalremt resetna. Ans sns
Product
Premium espresso blend, rainforest alliance certified beans
Localizing taste
Promotion
Affiliated event with local mart, department, and restaurant
SNS promotion, Coupon,

13. Q&A