New Diversification Strategy • || Red Wine Promotion || • -
of
Wang Steak
LAI, YI - CHING
Portfolio Writing
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
FASHION
MANAGEMENT
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LAI
MA.
Outline
YI - CHING
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Motives Brand Image & Slogan Brand STP
Problem: Profit & Differentiation I.
Strategy: red wine promotion
II.
A brief introduction of wine market in Taiwan
I.
Segmentation
II.
Targeting
III.
Customer perception
III.
Positioning – 4P
IV.
Solution
V.
Feedback
Branch : Zhongshan Store I.
Style
II.
SWOT
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Motives
Conclusion References
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According to my last job in Wang Steak, the head of Wowprime Inc. leads the first place of food business chain in Taiwan, I choose this luxurious brand as my research target. With brand introduction ahead, clear market orientation and brand image is fully elaborated. Based on the background information of this brand, I would like to propose idea – Red Wine promotion in the branch where I used to work – Zhongshan store to increase revenue. It is because of red ocean market of steak nowadays in Taiwan, Wang Steak strives hard to explore niche market. Following I will illustrate SWOT analysis in Zhongshan store at first, and mention about execution with feedback from customers in my store. Although profit pursuit is the ultimate goal over all, the strategy is also aimed at blending red wine culture into high-market steakhouse in Taiwan. It has come out a series of success through red wine promotion on fostering our brand image as more glorious and luxurious. By developing this niche market, Wang Steak launches promotion campaign to convey brand’s image through Red Wine culture in a brand new way via dedicating to creative strategies executed by every branch in Taiwan.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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LAI
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Brand Image & Slogan •
Image ►
|只|款|待|心|中|最|重|要|的|人 ▲slogan - Brief History – Wang Steak is an authentic steak brand launched by Dai Shenyi in 1993. Originated from Taichung, in middle of Taiwan (R.O.C.). Wang Steak means “ the extreme upscale” literally in Chinese, and it is also the head (first) brand of Wowprime corporation. Prestigious for high quality steak imported from the US, paired with French wine – Vinsobres , Clarke etc., and premium services offered is the necessity for each Very Important Person, our dear Guests. Besides, the brand adopts rose and wine to deliver its glorious appearance and culture, with classic dining seats and elegant ambience.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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LAI
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Brand STP
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Segmentation : High-end tier Generally, high-end restaurant accounts for around 5% in domestic food market, Wang Steak targets at high-price stage to differentiate its luxurious image from other local food brands, and intended to compete with exotic steak brands.
Targeting : Taiwanese steak market & top class customer Authentic food brands were rare in 1980s in Taiwan, however, Mr.Dai captured the trend of western food development in Taiwan due to Asian’s worshipping mindset toward western culture. Besides, food industry is beyond time limitation that food is always the basic necessity for human beings. As a culture-cultivated businessman, Mr. Dai wishes to convey Taiwanese culture and manner through exquisite cuisine. Henceforth, he constructed the relationship of Western cuisine and Taiwanese friendliness to attract the class of bourgeois and toptier customers. ►
Dining invitation
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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Positioning – French cuisine Steak is the main course of the brand (plus a dish of lobster) because steak has already become the privilege image of high-end western culture since 1980s. The following I use 4P marketing theory to detail the brand positioning.
• PRICE • $1390 to $1690 New Taiwan dollars per meal, plus extra 10% of service fee. Single dish ranges from 150 ~ 2600 NTD.
• PRODUCTS • • Steak Meal Bun • Aperitif •Salad • soup• Main Course • Plum Syrup •Desserts•Drinks Wine (French/Spain/Argentina) Option for single dish is also provided.
• PROMOTION •
Differentiation strategy
(Main Course NT$890~2600/dish. Bun, Aperitif Drink, Plum Syrup at NT$100/dish.)
• Traditional Wang Steak (OUR SPECIALTY) Well-Done Wang Steak ( stewed method ) •Quality of food ingredients Beef Selected : U.S. Prime & Choice On Total Quality Management (TQM) basis Follow official food criteria and laws Steak tenderness(doneness) and temperature are highly-demanded Keep FRESH before reaching dining table • SOP of Reservation & Reception Professional process Taiwanese hospitality
• PLACE • 12 Branch Zhongshan / Nanjing / Roosevelt / Guangfu / Banqiao / Taoyuan / Zhongli / Hsinchu / Taichung / Tainan / Kaoshiung / Zuoying
• Customized service Celebration (birthday/special day) Customized meal except vegan meal •Wine Pairing Recommendation and introduction of wine service Special discount of combo
mission Exquisite cuisine with Exclusive service.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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LAI
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Zhongshan store •
Zhongshan North Road, Taipei.
With the same mission to offer “ Exquisite cuisine with Exclusive service “, each branch has commitment to brand vision – maximizing profits and optimizing brand image. I would like to take the branch – Zhongshan store where I worked before as the example, to solve the problems on marketing.
• Style : Modern fashion Located on luxury street – Zhongshan North Road (Taipei) , and surrounded by international hotels, the target of guests are mainly
Businessman or Foreign tourists.
Foreign tourists Bourgeois –
Ordinary Family
Professor
/ Couple
/ Doctor
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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• SWOT analysis
Strength
Weakness Limited accommodation / only 80 seats high turnover
Golden location & tourist-oriented / foreign culture accessibility
Threat Opportunity fast - paced / Efficient dining option for businessman
▲
more and more homogeneous dining options emerge in the surroundings
Wine List
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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•Problem: Profit & Differentiation • •Strategy: red wine promotion With the fact of situation, it is clear that our branch targets at efficient pace and foreigner’s market due to environment factor. Recently, Homogeneous market ( high-price restaurant ) has grown in a rapid pace, and almost aims at customized service, not to mention selected quality of steak catering to customers’ taste. Our initial “Diversification strategy” has lose competitiveness nowadays. Consequently, the newest decision of the brand redirects to optimize brand image with ROSE and WINE, which have always been distinct symbols of the brand. According to this, we opt to execute practical solutions within each branch, and most importantly, improving gross profit. The key focus is the Red Wine promotion in store. By advocating concept : Wine Pairing, which originates from French dining custom, each store proposes creative strategies on red wine sale. The following is a successful case of our store to raise profits and promote wine culture.
•A brief introduction of wine market in Taiwan As steak market thrived in 1970s in Taiwan, and gradually became an insanity that appealed a host of gourmets and gluttons on STEAK. Inevitably, steak were soon popular with the public, so as relevant knowledge of beef. Western cuisine blew up a wave in domestic food industry, therefore, wine and beverage come alongside massively into Asian countries between 1980 and 1990. Initially, Hong Kong was the first concentrated place of imported western wine including red wine. Followed by China and Taiwan, more and more importers realized great influence brought by red wine market. The bar chart illustrates the trend of growth and number of red wine in Taiwan in recent year.
Ten
thousand
Liter
2003 ~ 2015 imported quantity of red wine in Taiwan
•Ministry of Finance (R.O.C.)
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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From bar gragh above, it shows the fact that red wine market has grown steadily in Taiwan except 2008 -2009 (Global Economic Depression), and has keep up-going trend. That means red wine has been widely accepted by Taiwanese nowadays. 2013-2015 number of imported red wine in Taiwan Resource: Ministry of Finance (R.O.C.)
France
Spain
Chili
Australia
Italy
USA
▲ Imported red wine is mainly from France, but red wine from South-America countries like Chili are also gaining attention from Taiwanese in recent years
• Customer Perception There are typically four stage of how Taiwanese view red wine. 1970s – 1997 After entering domestic market, red wine had gradually been all the rage because people believe red wine is good for health so the majority jumped on the bandwagon. The sales volume climbed to the peak of 23 million liter. 1998 – 2001 After red wine craze, the popularity slumped hugely. However, a minority of people were fascinated with red wine culture, hence, wine still remained a basic demand on the market. 2002 – 2008
In this period, sales volume of red wine rebounded and grew in Taiwanese market steadily with 12 % increment in 2007 comparing to 2001. Taiwanese re-attracted by wine because of international influence. It showed a prospecting future for red wine. After 2010 Except from Global Economic Depression (2008~09), wine market kept growing. But it is worthy to mention that the quality of wine declined after Depression except Fine Wine market. Nevertheless, wine becomes widely-accepted in Taiwan.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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LAI
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•Solution As wine is widely-accepted in Taiwan nowadays, it is much easier to promote wine in restaurant. Aiming at this niche, Wang Steak releases Wine Pairing strategy, to differentiate itself from other competitors. With high-demanded standard, Wang Steak carefully seeks for wine merchandisers with Fine Wine background, to guarantee high quality of taste. Beyond branding differentiation, profit is the other crucial factor for brand operation. Red wine will definitely bring an extra revenue in general and provide value-added effect that optimizes operation. In Zhongshan store, our staff have proposed several tactics on promoting: ★ Discount combo: This is the longest campaign in our store almost lasting more than three months. This combo includes a single glass of red wine ( TILIA ) and of spirit (Chardonnay). The kind of wine are the basic one with cheapest price, so that this option is suitable for guests who only need a little taste on wine for refreshment, and also for those who don’t have enough dining time, referring to the largest group of guests in or store - Businessman. Despite the kind of wine is the basic one, they still bear prestigious fame with guaranteed taste and smell around the globe. ★ The best “Pairing” recommendation: It is widely known that red wine pairs steak, and spirit (liquor) pairs seafood. Our main courses provide both steak and seafood, thus, it is a great point to cut into wine promotion. While ordering, we would also inform about the pairing selection, which might sound much more romantic when dining in a luxurious place. Special offer is also a marketing trick that it sounds a little bit cheaper to order a bottle than mere one glass of wine. Well-understand of guest’s mindset and penetrating knowledge are essential skills on promoting. For instance, strong health awareness is deeply rooted in Taiwanese culture, and red wine certainly contains ingredients that could improve health condition, such as heart disease. In this regard, it is the opportunity for us to strongly recommend local people to order. In addition, this tactic is usually effective on foreigners due to exotic custom of wine culture. The most popular dishes are the Wang’s steak, well-done tenderness with chewy and firm texture through traditional processing is the selling point that attracts those who are starving. After a bite of beef, a sip of Pinot Noir brings extreme fantastic enjoyment. As for seafood, fruit aroma in Sauvignon Blanc could well balance the strong smell of shrimps and oysters, etc. As for sparkling wine, it suits for appetizer, salad or bun, and we provide two type of this – Brut and Moscato, bitter and sweet taste respectively. We target at the young group between 18 – 35 age, because this kind of wine is usually popular with young female, especially.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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★ Free tasting experience – Ribeye & Clarke Unlike above tactics, this attempt costs the most highly. We offer free taste for guests on special festivals to shed light on the promotion of high-price wine. Take Chateau Clarke (from Borteaux) for example. Clarke is the most expensive kind among all, and we recommend to pair Clarke with ribeye steak, which is our double meal, the most expensive as well. On special day such as Chinese and Western Valentine’s day, people incline to celebrate it with delicacies. We aim at the time point on double meal promotion. Meanwhile, this is in hint of the best wine to pair with - Clarke. Surrounded with good ambiance for particular celebration, a free glass of Clarke would be the best company of ribeye. We utilize this chance to illustrate type, character and taste of Clarke, persuading our guests with a real sip on it. Although this promotion costs a lot at first, however, relying on our strength of golden location and great accessibility to various nationalities of people in one of prosperous regions in Taipei, via this tactic could we capture not only top-tier customers, but also middle-class and the ordinary. Through this free experience, we enlarge exposure of Clarke, shaping its unique position.
• Feedback After active promotion on wine, it is obvious that our guests gain more interest in wine pairing, which makes wine list more accessible when people order the meal. Through several months, the gross revenue has an improvement owing to wine sale. We keep monitoring on performance evaluation and sales statistic by week and by months, to track the effect and efficiency. In this way, we could understand the instant problems and adjust. Discount combo is basic solution to get customers into wine list at the first step. Accordingly, this might trigger their curiosity on wine list, increasing possibility on wine sale. This promotion is lasting almost half-an-year and has always been steady of popularity. Wine pairing depends on the way we sale, and type of taste. This method could not work on each table because of customer’s willingness on trying wine, time limitation(in a harry situation), incomplete detail introduction, and etc. In some condition, wine sale could raise resonance due to brand loyalty of customer themselves, however, delivering the concept of wine pairing has always been the core of strategy, and what we could improve are fostering relationship with guests, strengthen talking skills and provide professional service. As for free taste experience, this practice arouses the greatest effect. Our guests reacted as being attracted to Clarke, though it is not cheap. It reflected on our sales statistic table that Clarke really prompts revenue income and opens its reputation among Taiwanese.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
FASHION
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•
LAI
MA.
Conclusion
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Wang Steak has been a luxurious steak brand prestigious for exclusive service and high-quality steak since 1993. However, facing a host of competitors popping up in food industries, original diversification strategy of customized service comes across serious consistency in Taiwan. Being aware of this, Wang Steak tries to seek niche market to cooperate with. Wine is easily to be associated with steak, for not only the wine market has mature development in Taiwan, but also perfect combination of “wine and steak” in people’s perception. Accelerating cooperation with wine companies is a constructive solution to find a brand-new market for Wang Steak, and it is because wine has been one of brand image (display in store) from the very beginning, Wang Steak has good relationship with several wine merchandisers. Therefore, wine promotion is chosen as the latest goal on profit growth and brand reinforcement.
In the past, Wang Steak shapes its own brand via word of mouth to accumulate customer’s loyalty and fame. However, trend goes on creative, eye-captured form to attract consumers, not merely limited to traditional diversification policy. Wang Steak puts emphasis on wine pairing strategy, on one hand, consolidating the relationship with loyal customers via additional offer, on the other hand, attracting potential group such as wine lovers into Wang Steak.
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
FASHION
MANAGEMENT
LAI
MA.
YI - CHING
Although red wine promotion has not been executed for long enough so far, the development feasibility is prosperous according to recent performance. In future, it is possible to co-brand with wine importers on wine marketing field. In this way, the possibility of potential customers will increase. Furthermore, holding some events related to wine in store for the public and professional courses for staff are foreseeable, accelerating promotion. The experience of wine sales is an impressive memories for me as I learnt both skills and knowledge that I was completely unfamiliar with before. I believe well begun is half done. The development of wine market in high-end steakhouse is achievable based on mature market that has already existed. Turn passion into profession is the best footnote for the strategy, while building a brand requires dedication of whole staff.
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Reference
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Statistic of imported wine https://web.customs.gov.tw/News_Content.aspx?n=1F7726156BC53908&sms=62F2C4D35690CE93&s=1 F6F7A9FBE770DB7 https://portal.sw.nat.gov.tw/APGQ/LoginFree?request_locale=zh_TW&breadCrumbs=JTdCJTIyYnJlYWR DcnVtYnMlMjIlM0ElNUIlN0IlMjJuYW1lJTIyJTNBJTIyJUU1JTg1JThEJUU4JUFEJTg5JUU2JTlGJUE 1JUU4JUE5JUEyJUU2JTlDJThEJUU1JThCJTk5JTIyJTJDJTIydXJsJTIyJTNBJTIyJTIyJTdEJTJDJTdCJ TIybmFtZSUyMiUzQSUyMiVFNyVBOCU4NSVFNSU4OSU4NyVFNyVBOCU4NSVFNyU4RSU4Ny VFNiU5RiVBNSVFOCVBOSVBMiUyMiUyQyUyMnVybCUyMiUzQSUyMmNoYW5nZU1lbnVVcmw yKCclRTclQTglODUlRTUlODklODclRTclQTglODUlRTclOEUlODclRTYlOUYlQTUlRTglQTklQTInJTJ DJ0FQR1FfNycpJTIyJTdEJTJDJTdCJTIybmFtZSUyMiUzQSUyMihHQzQxMSklRTclQTglODUlRTUlO DklODclRTclQTglODUlRTclOEUlODclRTclQjYlOUMlRTUlOTAlODglRTYlOUYlQTUlRTglQTklQTIl RTQlQkQlOUMlRTYlQTUlQUQlMjIlMkMlMjJ1cmwlMjIlM0ElMjJvcGVuTWVudSgnJTJGQVBHUSU
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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LAI
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yRkdDNDExJyklMjIlN0QlMkMlN0IlN0QlMkMlN0IlN0QlNUQlMkMlMjJwYXRoVXJsJTIyJTNBJTIyJ TIzTUVOVV9BUEdRJTJDJTIzTUVOVV9BUEdRXzclMkMlMkZBUEdRJTJGR0M0MTElMjIlN0Q= http://tipsywithme.blogspot.com/2016/04/3.html http://www.winenote.com.tw/post/968/ Wang Steak official web page https://www.wangsteak.com.tw/about.html Taiwanese steak brand https://www.gq.com.tw/life/food/content-27416.html Wang steak branding https://money.udn.com/money/story/5612/4085321 Wine pairing https://tastespirit.com/p/20279.html Wine market in Asia http://blog.sina.com.cn/s/blog_5ec8fa070100k4rn.html https://andrew19103.pixnet.net/blog/post/36167217%E5%B8%82%E5%A0%B4%E4%BA%8C%E4%B8%89%E4%BA%8B-%E5%B0%8D%E6%96%BC%E5%8F%B0%E7%81%A3%E8%88%87%E5%A4%A7%E9%99%B8%E 7%9A%84%E7%B4%85%E9%85%92%E5%B8%82%E5%A0%B4%E8%A7%80%E5%AF%9F red wine growth in Taiwan http://tipsywithme.blogspot.com/2016/04/3.html https://blog.xuite.net/dennis6818/twblog/127547034%E4%BB%A5%E4%B8%80%E4%BD%8D%E8%B3%87%E6%B7%B1%E7%9A%84%E8%91%A1% E8%90%84%E9%85%92%E5%95%86%E6%A5%AD%E5%8B%99%E4%BA%BA%E8%BA%AB%E 5%88%86%E8%AB%87%E5%8F%B0%E7%81%A3%E8%91%A1%E8%90%84%E9%85%92%E5%B 8%82%E5%A0%B4%E7%9A%84%E7%B6%93%E7%87%9F
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TURN PASSION INTO PROFESSION – WANG STEAK LUXURY &
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Thanks for your time!
LAI
YI - CHING