台灣傳統市場之水產舖經營分析與管理策略─以北投市場為例 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 y. sit. io. 以北投市場為例. er. Nat. 台灣傳統市場之水產舖經營分析與策略管理─ a. n. v l C Booth In Traditional Operation of Seafood Market— ni hengchi U. Bei-Tou Market As The Model. Student: Casey Yi Cheng Chen Advisor: Professor Jack Wu. 中華民國一百年一月 January 2011.

(2) 台灣傳統市場之水產舖經營分析與策略管理─以北投市場為例 Operation of Seafood Booth In Traditional Market— Bei-Tou Market As The Model. 研究生：陳怡誠指導教授：吳文傑. Student: Casey Yi Cheng Chen. 國立政治大學. 學. ‧ 國. 立. 政治 Advisor: 大 Jack Wu. ‧. 商學院國際經營管理英語碩士學位學程. al. A Thesis. y er. io. sit. Nat. 碩士論文. n. iv n C Submitted to International h e n g c hMBA i U Program National Chengchi University. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一百年一月 January 2011.

(3) Introduction Traditional Market is one of the most ordinary forms of daily goods sales/trading center in Taiwan. Traditional market model was first established in Taiwan during Japanese Era; it was later diversified and re-structured in KMT Era and transform into the Traditional market like what we know presently.. This business report is basically aimed at how to operate a. successful Seafood Booth in Traditional Market, therefore understanding the background of. 政治大. traditional market will be necessary in order to get better pictures of how to operate a booth. 立However, rise of modern shop had threatened the survival. successfully within the industry.. ‧ 國. 學. of traditional market in recent years. How to find a new way of management became essential for development of this traditional business.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v.

(4) Table of Contents 1) Preface-Why Traditional Market? Why Seafood ?..........................................4~7 2) Background of the industry…………………………………………………7~13 2.1) Traditional Market………………………………………………………7~8 2.2) Types of traditional market…………………………………………….9~12 2.3) Bei-Tou Community market and its development……………………12~13 3) Strategy and Analysis……………………………………………………...14~42 3.1) Environment Analysis………………………………………………...14~19. 政治大. 3.2) SWOT Analysis………………………………………………………20~23. 立. ‧. ‧ 國. 學. 3.3) First Phase Strategy-3.3.1) Product Differentiation…………………..24~30 3.3.2) Service Differentiation…………………...31~32 3.3.3) Cost Down Strategy……………………...33~34 3.3.4) Development of Uniqueness Strategy……35~38 3.4) Second Phase Strategy………………………………………………..39~41. y. Nat. sit. 3.5) Summarization of first-second phase strategy……………………………42. n. al. er. io. 4) Financial Statement………………………………………………………..43~46. i Un. v. 5) Summary and Conclusion…………………………………………………47~49. Ch. engchi. 4.

(5) 1) Preface Why Traditional Market ? Asia is the region which focuses the most on the development of cuisine and cookery compared to other places of the world. diversified in Asia.. The cooking materials also tend to be much. Out of Asia region, Chinese can be considered as the race that spend the. most time on doing R&D on food industry.. There is an old Chinese dialect “Chinese is the. race who handles the food materials the best in the world (中國人是最懂吃的民族)”.. The. 政治大. best example is that Chinese cuisine can divide to 8 different style: 1) Shandong style(魯菜). 立. ‧ 國. 學. 2) Szechwan style(川菜). 3) Yangzhou style(揚州菜). ‧. 4) Cantonese style(粵菜). sit. n. al. er. io. 6) Zhejiang style(浙菜). y. Nat. 5) Fujian style(閩菜). 7) Emblem(安徽菜) 8) Hunan Style(湘菜). Ch. engchi. i Un. v. Despite the above mentioned cookery styles, there are also tons of uncountable Chinese style snacks and appetizers, thus the demand for different kinds of food materials is huge in Chinese region compared to other places in the world.. However, Taiwan is one of the. earliest places which start up the economy development in greater Chinese region. Therefore the development on the food and beverage also tend to be very early. Especially Taiwan’s trading history can trace back as early as 200 years ago. Therefore the cuisines in Taiwan also mix with some other foreign style like Japan or European cuisine.. In Taiwan,. the density and varieties of restaurant can also rank in top 10 in the world, however, a lot of 5.

(6) figures could support this idea. Category. Number in 2008. Franchise brands in restaurant industry 1,500 Number of Restaurant. 96,591. Value of annual output. 1.8 trillion. For the store numbers of 96,591, it only counts the number of restaurants which belongs to franchise system.. If we include the single restaurant and vendors, the numbers will be more. astonishing. This gives us an obvious statement that Taiwanese love to eat and willing to try different kinds of taste.. 政治大 Whether you are a chef from the restaurant or ordinary house 立. The food market is not only enormous; but also has a lot of. potential hidden in Taiwan.. wife, you can buy the cooking materials from different channels, they are:. ‧ 國. 學. 1) Supermarket/hypermarket. sit. y. Nat. 3) Traditional market. ‧. 2) Internet/Shopping Channel. io. er. Supermarket/Hypermarket is the most popular channel to purchase the food materials in. al. v. n. present day. Most of the Supermarket/Hypermarket has below characteristic:. i n C U 1) Clean and bright environment for consumers h e n gtocshop hi 2) Diversify varieties of foods、drinks and other daily goods 3) Strong marketing campaign and advertising 4) Convenient location and parking spaces. All above characteristics make Supermarket/Hypermarket became the major trend for consumers to buy the daily goods.. For the internet and shopping channel, it’s a new kind of. shopping platform, therefore the level of acceptance from the public is still not as common as physical store shopping, but it is growing with the tremendous speed.. For traditional market,. it is probably the only channel which is declining on the market size and output of the value. 6.

(7) compared with previous platforms.. But from the perspective of a new generation enterpriser,. the observation and conclusion will be different.. For a newbie who intends to join the food. industry, traditional market is the best entrance to cut in.. After a long time collection of. evidence and research, there are a lot of proofs supporting the potential of traditional market in food industry.. It also bring the birth of this business plan on “Operation of successful. Seafood Booth in Traditional Market”. Why Seafood ? Seafood has always been popular and highly accepted by mass market.. Among all kinds 治政 of daily consumption goods: Meat、Vegetables、Cereals、Fruits、Seafood and Grocery items, 大立 Meat and Seafood are the two main categories which has the highest return on gross margin. ‧ 國. 學. and largest consumption market. By comparing meat and seafood, the biggest difference is. In seafood industry, there are five sectors: Fish(魚)、Shrimp(蝦)、Crab(蟹)、. sit. y. Nat. shell(貝) and Mollusk(軟體).. Products are more diversified in seafood industry.. io. al. This. er. poultry(畜).. In meat category, there are basically two sectors: Birds(禽) and. ‧. based on varieties.. n. gives seafood business operator more opportunities on diversifying the management strategies and products. Ch differentiation.. iv n major advantage is the supply chain or eAnother ngchi U. source for acquiring the seafood tend to be more complicated and fluctuated than meat industry due to catching on fishery is very unpredictable.. If seafood business operator has. strong supply chain and rich products sources, seafood operator can usually enjoy more consolidated customer base and higher margin than meat operator.. Overall, Seafood. industry could be a good business if operator could manage the supply chain and strategy well.. Traditional Market and Seafood ? Traditional market still plays an important role in Taiwan’s daily food supply in different communities.. Due to traditional market’s special characteristic in Taiwan, traditional market 7.

(8) is one of the fastest stepping stone to join the food industry. Even the importance of traditional market might be affected by new channels like supermarket/hypermarket or E-shopping, but it still has stable market base in food industry.. As a new entrepreneur who. has limited resource and wishes to join the food industry, traditional market provides a stable market base and lower barrier for entry compared to other food-related sectors.. Among all. types of foods varieties, seafood tends to have strongest diversification on products and broader markets for business operator to handle. selling products in traditional market.. That’s why seafood is choosing as major. The goal of this business plan is doing the. comprehensive analysis on the model of running the successful seafood retail in traditional. 治政 market. The paper will also cover the research on traditional 大 market’s future development 立 and transformation which can merge with food business and local tourism in order to launch ‧ 國. 學. a greater profit and regional economy.. ‧. Nat. sit. n. al. er. io. Traditional Market. y. 2) Background of the Industry Ch. i Un. v. Traditional market used to be major trading center of daily goods in Japanese Era like previously examined.. engchi. While Taiwan was still at stage of agricultural society during. Japanese colonial period, traditional market plays an important role (perhaps the only preference) as shopping center for ordinary family and distribution cluster for all kinds of daily. goods.. As. time. passed,. Taiwan’s. society. industrial/commercialize base society during KMT era.. starts. to. upgrade. to. an. The function of Traditional market. is placed by more modernized Hyper/Supermarket or shopping center which was ran by large Corporations.. If that’s the trend for daily goods consumption, why do we choose Traditional. Market? What is the advantage or competiveness of operating a booth in Traditional Market? These issues can be dressed by below points: 8.

(9) 1) Convenient location-Most of the Traditional Market locate at very convenient spot within each town or city.. In early era, place where traditional market locate usually. represent the business center of a place; therefore it enjoys the benefit of high volume of traffic flow and frequent visit of the passengers.. The development and local infrastructure. also start to build around the traditional market.. Even till now, core of town and city might. not be around the traditional market anymore, but the population density near the traditional market is still considered high since it’s used to be living center of a community. 2) Culture of the Traditional Market-Due to its long history, the culture of traditional market tends to be friendly and heart warming.. The relationship between store owner and 治政 customers are like friends or neighbors. Therefore the 大 people age between 40 and above 立 have the habits of going to Traditional Market. Market does not only represent a shopping. ‧ 國. 學. place, but also a place for socializing and interaction between the neighborhoods.. ‧. 3) One Stop Shopping-Traditional Market is the cluster of small booths which sale. sit. y. Nat. different kinds of daily goods. Shopper can enjoy the convenience of one stop shopping. io. er. with diversified varieties of daily goods.. al. 4) Price competiveness- Traditional Markets are owned by public institution and. n. iv n C government, therefore the rent/electricity/tax the extreme low cost. h e nallgenjoys chi U reflect on the operating budget and the sale price. running the business in traditional market.. This can both. It is also the strongest competiveness on. Booth owner can prevent the rip off of the. profits from the channels and large distributors. The cost can be saved and generate the greater profit for both the consumers and booth operator. This will later be addressed in section of financial analysis.. Types of traditional market While we talk about traditional market, most people will think about clusters of booths which sale different daily goods. But there are actually different types of traditional market; 9.

(10) they can be classified as below: 1) Distribution market(批發市場) It is the uppermost supply source for daily goods.. In each county or city, there are several. distribution market which responsible for supplying the household foods for local residents. These distribution markets usually constitute by clusters of different products sectors and supply the goods to traditional markets like evening market(黃昏市場) or community market(社區傳統市場).. The distribution market provides a platform for all kinds of. producers to gather together and have a channel to sale their products to lower stream food business operators.. These food business operators do not supply previously mentioned. 治政 traditional market operators. Most of restaurants or hotels 大 chef also come to distribution 立 market to procure their catering materials. The operation time for distribution market(批發 ‧ 國. 學. 市場) usually starts at 2 am in the morning and ends at 8 am.. After the buyers from. ‧. different sectors come to acquire the materials they need, they can bring these materials back. sit. y. Nat. to their place and start the operation. So for traditional market’s booth operator, they can. io. al. er. start their business around 6~7am in the morning after they finish procuring the materials in. n. distribution market, it is also the same for restaurant or hotel’s chef.. Ch. n engchi U. iv. In Taipei, the largest. distribution market are central fish market(中央魚市) and Huan-Nam market(環南市場). They considered as upper stream supplier for daily products. 2) Community Market(社區傳統市場) Distribution market is the source of distributing the products to lower stream channel. Community Market(社區傳統市場) is the lower stream channel which face the consumers and supply the goods directly to them.. The business hour for community market usually. take time between 6am~noon. The consumers for community market are mostly household wives or ordinary citizens who live in the nearby community.. Most community markets. locate at center of a region or district in order to provide the fair distance for member who lives within the area.. The traffic flow usually tends to be high and busy. 10. However, this.

(11) type of traditional market is the one most of people are familiar with.. They also have the. strongest impact on sales by the rise of more modernized channels like supermarket or shopping mall.. 3) Evening market(黃昏市場) It is what we called afternoon or evening market which opens from 4 pm till 8 pm.. The. main markets they serve are the working group who usually got off from work after 5 pm. This kind of market was established after Taiwan transfer from traditional agricultural based society to business oriented society after 70s. Due to increase population of late worker, the society was split into 2 types of. 立. 治政 consumers groups: 大 early birds. and working group.. Traditional market also has to adjust its service according to the characteristic of the. ‧ 國. 學. inhabitants who live around them. Thus traditional market locates in business district turn. ‧. into evening market and market locates in residential district still stay as early market.. The. sit. y. Nat. basic function is still the same on providing the service of food supply, but the content might. io. market.. er. be adjusted according to the characteristics of people living in the community around the. al. For example, evening market locates in busy business district might focus more on. n. iv n C the food materials which is easy to handle foods or snacks in order to meet h e nlikegmicrowave chi U the needs of busy white collars.. 4) Special types of traditional market(特殊性傳統市場) The special types of traditional markets are the markets which focus on certain groups or markets, so the products these markets sale also tend to be more focused on certain category or consumers groups.. The best example will be Shi-Dong(士東) market in Tian-Mu(天母). area. Most of inhabitants live in Tian-Mu area are Japanese people, therefore there is large market for Japanese foods like sashimi or Japanese related food materials.. Due to. characteristic of Japanese people, the request for cleanliness and sanitary will also tend to be 11.

(12) higher than Taiwanese.. Therefore Shi-Dong(士東)traditional market’s environment tends to. be very clean and the products it display are mostly Japanese related stuff.. Despite. Shi-Dong(士東) market, another example of special type traditional market is named Small Nan-men(小南門) market.. Most of the inhabitants live in this area are retired government. workers who come from mainland China after world war two. Therefore there are a lot of rare foods like Northeast style sauerkraut or inland dumplings are sold in mall Nan-men(小南門) market.. The foods sold there also tend to be different on taste compared to other places.. 5) Tourism type of traditional market/fish market (觀光漁市型傳統市場). 治政 This type of traditional market can also be called fish market 大 since 90% of the products in 立 this market sale are seafood related items. This type of market usually locates near the ‧ 國. The main customers it serves are tourists who come during the. However, even its main function is to serve as tourism purpose, but inhabitants The weakness is the preference of the. sit. y. Nat. live around it can still come and shop in the market.. ‧. holidays.. 學. harbor or fishing port.. io. er. food materials seems to be limited in the seafood category.. al. n. iv n C After classifying all types of traditional in Taiwan, it is clear that different types of h emarkets ngchi U traditional markets was established based for needs of different kinds of customer base. However, Community market is the type of traditional market This BP focuses on.. First of all, community market is the mass kind of traditional market. which is suitable for ordinary households.. Therefore it has the largest customer base.. Secondly, since community market has the closest relationship with mass market, therefore the diversification of the products are also greater than other types of markets.. The. strategies or ideas we can apply on operation of the profitable seafood booth are also more plentiful.. Last but not the least; community market represents a large working population in. Taiwan’s labors forces.. If this kind of power could be coordinated, it has a strong 12.

(13) bargaining power to cooperate with government and launch some large-scale programs together in order to attract high flow of the capitals.. Bei-Tou(北投) Community Market and its development This business plan was mainly focused on ways of operating the successful seafood booth in community market.. Despite the operation of profitable seafood booth, the profitable. traditional market can also combine with its special cultural or environmental characteristic around it to produce the greater profits.. After long time study and research, Bei-Tou(北投). 政治大. traditional market was choose as the study model and the process of business plan is. 立. comprised like below flow path:. ‧. ‧ 國. 學. 1) Strategies of operating a profitable seafood booth=profitable booth. 2) Expansion of the booth in order to expand the profits=profitable traditional market. sit. y. Nat. n. al. er. io. 3) Strategic alliance with other booths and drive the events/activities which can combine with. i Un. v. the characteristic of Bei-Tou( such as hot spring、hotels) and assistance from the local. Ch. engchi. government in order to formulate the tourism related activity to expand the business nationally=program of alliance between traditional market and local tourism The profit model this business plan aims is not only on operation of the profitable retail business, the final goal is to re-structure the traditional market business and combines the resources from the traditional market with the local culture(在地文化) in order to shape up a new type of district which includes the function of tourism and fine foods. The reason Bei-Tou is choose as model is based on few specialties it has 1) Bei-Tou has long history and resources of hot spring where rest of Taipei areas do not have. It an be seem as attractiveness for development of tourism business. 13.

(14) 2) Bei-Tou traditional market is one of the most profitable night markets due to its stable population of inhabitants around it (250,000 people). Therefore Bei-Tou has advantage of stable market base for a seafood booth to make the profits compare to traditional markets in other areas. 3) If we combine Taipei city、New Taipei City and KeeLung(北北基) as greater Taipei life circle(大台北生活圈), there are around 7.25 million of population and it states around 1/3 of total population in Taiwan.. Bei-Tou locates in the middle part of this life circle and it has. the advantage of equal distance from any place within greater Taipei life circle(大台北生活圈 ).. This characteristic of central traveling spot can provide greater attractions for. 治政 inhabitants within this life circle come to Bei-Tou to shop 大 and tour if the program was 立 launched. ‧ 國. 學. 3) Strategy and Analysis. ‧. 3-1) Environment Analysis(Externally/Internally). Nat. sit. y. After assessing the background of traditional market and seafood industry, it is important. al. n. investment.. er. io. for venture capitalists to understand the environment internally and externally before. i Un. v. Despite the strength addressed on previous sections, there are also increasing. Ch. engchi. threats from competitors and challenge from the change of the society.. However, these. points might affect the overall performance of business and increase the uncertainties on operating the seafood booth in Traditional market.. They can be identified internally and. externally as below: External Environment Analysis 1.Increase challenge from new Channels like Super/Hypermarket Ex:Costco, Carrefour, Geant, Sinon Mart. 14.

(15) 2. Change of the social structure ex: Average population of Family decreases, Increasing population of female working force 3. Change of the consumption Habit Youngsters have less tendency of taking care the meal by themselves 4. M-Shape Society Consumers are spreading to 2 extreme ends of buying power For the analysis of external environment, we can study these threats in more detail ways. 政治大 1. Increase challenge from new Channels like Super/Hypermarket 立. one by one:. ‧ 國. 學. Super/Hypermarket is the major trend of daily goods consumption in present days.. From. the study showed that 85% of consumers below age of 35 have the habits of shopping the. ‧. daily goods in more modernized channels like supermarket or hypermarket.. The biggest. Nat. sit. y. reason is it provides the brighter and cleaner shopping environment; therefore the shopping. n. al. called supermarket and hypermarket.. er. io. experience is good for most of people. However, there are differences between what we so. i Un. v. Even both kinds of channels represent the main trend. Ch. engchi. of shopping habits for younger generation, but there are slightly differences between these two types of modern channels. 1-1) Supermarket: Supermarket focuses more on sales of daily goods like meat、seafood and food grains.. The shopping spaces tend to be smaller compare to hypermarket since it. focuses more on stuff needed for daily activities. The best examples will be Sinon mart(興農/楓康)、PX mart(全聯) and welcome(頂好). 1-2) Hypermarket: It focuses more on sales of multi-products. meat、seafood and food grains.. Despite the daily goods like. It also includes the products which can be used for. convenient purpose like electronic goods、fashion goods or even sport goods.. 15. The shopping.

(16) spaces will also tend to be greater than supermarket since it covers more varieties of the products and services. The best examples will be Costco、Carrefour(家樂福)、RT Mart(大潤發)and Geant(愛買). 2. Change of the social structure The social structure of Taiwan had been transformed from agricultural society to business oriented society. There are more people devoted into the working force compared to old days.. However, increase participation of female working force will be one of the examples. of social change. Since female represents largest consumption base for traditional market, so increase number of female working force will also affect the business of the retail market.. 治政 Another factor of influence is the low birth rate and decrease 大 of the family size. As we can 立 see that new born babies are decreasing every year, it also represents the shrinkage of the ‧ 國. 學. consumer market.. ‧. 3. Change of the consumption Habit. sit. y. Nat. The demand for consumption on daily goods for youngsters is changed like previously. io. al. It is also the culture of fast food(速食文化).. n. efficiency and timing.. er. examined. Conveniences become the priority for them and everything is scaled by scale of. Ch. n engchi U. iv. In old days, a meal is. not only a meal, it also represents an opportunity for family members to gather together and care for each other after end of one day.. Nowadays, reunion of families can only be seemed. during certain big holidays like Chinese New Year or Moon festival.. It also brings the. negative impact on consumption of the daily foods. 4. M-Shape Society M-shape society represents the larger gap on differences of wage rate within the society. In the past, the population in different wage rate might allocate fairly with close numbers at different level. Due to change of economy, the stratification of wage rate for each level seems to disappear.. Nowadays, working force can simply be classified at two far extreme. sides: either rich or poor. The middle class seems to either decrease or being pushed to 16.

(17) either sides of far extreme. low-middle earning classes.. Traditional market’s main consumer base is focused on If the middle class is being split, then the half of the original. customer base in middle class can be seemed as disappeared.. A recent study on M-shape. society had predicted that 70% of population in Taiwan society might be pushed into lower end of poor side in next few decades. seemed as middle class.. If we simply state that 30% of original population is. As M-shape society phenomenon becomes more severe, it means. 1/3 of middle class will turn into richer end while the other 2/3 of middle class turns into poorer end.. From traditional market’s point of view, this 1/3 of middle class can be seemed. as loss due to change of the society.. But from booth operator’s point of view, whoever can. 治政 manage this 2/3 of middle class, it might lead to growth of大 the business. 立 ‧ 國. 學. After the study on external environment, we can find that due to low performance on. ‧. economy in past few years, consumer’s preference become more price based oriented. This If traditional. sit. y. Nat. can best explain by phenomenon of M-Shape society like previous examined.. io. er. market could supply the goods with cheaper price than super/hypermarket or dinning outside,. al. customers would still turn back to traditional market due to their price oriented characteristic.. n. iv n C In conclusion, M-shape society is probably element which is favorable for operation h e nthegbest chi U of the seafood booth in traditional market while the other three elements are considered as negative affects for operation of the traditional market.. After the analysis of external environment, we will analyze the internal environment like below listed: Internal Environment Analysis 1.Outdated Structure Old fashioned Design/decoration. 17.

(18) 2. Cleanliness Most markets remain a lot of place for improvement. 3. Moving Lane/Traffic Most locate in heart or center at region 4. Cost Structure Lowest among any kind of Channel. 5. Age Structure of Operators Average age between 45~55, but average is decreasing in past 2 years.. 政治大 It is the specialty of the traditional market which is irreplaceable 立 6. Culture of Friendliness(人情味). 1. Outdated Structure. ‧ 國. 學. It is one of the weakest parts on development of traditional market.. Most of the. ‧. traditional markets in Taiwan were established since Japanese era. Therefore the internal. y. sit. io. er. 2. Cleanliness. Nat. design and architectures all seem to be old fashioned and worn-out.. al. iv n C It is also one of the reasonshstopping i U from shopping in traditional e n g cthehyoungsters n. Despite the infrastructure, cleanliness is another tumor which stops the growth of the market. market.. Luckily, government starts to be aware of the weakness and start to think about. how to change the conditions in order to stimulate the growth of the traditional market. That’s why government begin to host the activity like “Festival of traditional market” and invest more than NTD$30 billion on re-construction of the infrastructure/hardware in 2009. In long run, government is encouraging each market develops its own specialty or characteristic in order to become the assets of local community and cultural heritage.. From. booth operator’s perspective, we can enjoy the benefit from the policy of the government. 3. Moving Lane/traffic. 18.

(19) Most of the traditional markets were established since Japanese era.. These traditional. markets serve as center for shopping and trading in each town or countryside. most of their locations are located at transportation links.. Therefore. It provides the benefit for. operating the booth in traditional market since most of traditional markets have high flow of customers due to its convenient location. 4. Cost Structure Despite the political support, low cost structure on operation is another main benefit for operator that we had mentioned in previous sections.. Last but not the least, most of the. operators in traditional market tends to be older generation with lower education background.. 治政 If we could bring the new ideas+ strategic thinking, the differentiation could easily be made 大立 compared with the competitors. One thing to be aware is that the average age for booth ‧ 國. 學. operators has been decreased in past few years, it is the sign which signaling the increasing. ‧. participation of the younger generation into this market.. sit. y. Nat. 5. Age Structure of Operators. io. al. Most of the younger. er. Average age for booth operator is between 45~55 years old.. n. generations do not have interest of involving in the industry.. Ch. n engchi U. It is another benefit for us to v i. participate in the industry since the future competition seems to be rare.. But there is another. interesting study showed that the average age for booth operator in traditional market is decreasing in past two years. This evidence shows that there is increasing number of young working force being aware of the potential of the traditional market in the future.. However,. overall competitions still seem to be low in the future. 6. Culture of Friendliness(人情味) Traditional market has the culture of friendliness between booth operators and customers. It is culture which is being passed down from older generations and it can be seemed as the Chinese way of interactions between people. of the modern channels.. It is also something you will never see in any. However, it is the strongest advantage of traditional market which 19.

(20) can be sued to differentiate with modern channels.. After the analysis of internal environment, it is clear that traditional market still enjoys the advantages of good location、low cost of operation and low competition for new beginners. But there is still the problem on internal structure and cleanliness.. The good news is that. government is aware of the urgency of restructure and that is why government invested more than 180 million on hardware in past few years.. This shift of funds can solve the problems. that traditional market had since old periods. Even though restructuring might take a bit of time, but good thing is that traditional market is heading toward the right direction and the future can still be anticipated.. 立. 政治大. ‧ 國. 學. 3-2) SWOT Analysis. W. ‧. S. n. al. er. io. sit. y. Nat. 1. Low fixed cost of operation 1. Structure of consumers 2. Convenient location 2. Internal structure and environment 3.Promotion&resource from government 3.Storage/Quality maintaining hardware and public institution 4.Change of buying habits for youngsters Ex: Top 10 most popular booth/market vote Festival of Taiwan Traditional Market 4. Closer contact with customers 5. Free charge of Income Tax. Ch. engchi. i Un. v. 6. Cluster Effect. O. T. 1. M-Shape Society 1. Expansion of Hyper/supermarket 2.Less competition for youngsters to devote 2. Change of the consumption behavior into the industry 3. Change of the family/social structure 4. Lack of scale of economy 1. Strength From SWOT analysis, it is clear that the strength of operating a seafood booth in traditional market is still basically on low operation cost and convenient location. Free 20.

(21) charge of income tax and low management fees make the selling price very competitive compared to franchise/supermarket.. Another special benefit of operating the booth is the. contact between customer and booth operator tend to be closer than regular employee from organized corporation and customers due to the structure of the system and environment (both internally and externally). Customers tend to have stronger royalty toward the booth once they get used to the service and products that booth offer.. It is also something which is. not easy to be placed by modernization of the hardware or pricing strategy.. Government has. also been aware of the importance of traditional market since it does not only represent a type of food supply chain; but also represents a local culture of communities.. Taiwan 治政 government has held the activities like Festival of Traditional 大 Market every year in order to 立 encourage the participation of consumers upon the traditional markets. There will be votes. ‧ 國. 學. based on competitions of best gift (最佳伴手禮)、best booths on-line. The competitions on. ‧. best booth are divided into different categories based on varieties of products as below:. sit. y. Nat. 1) Snack category(小吃類). io. al. er. 2) Prepared foods(熟食類). n. 3) Seafood/poultry(生鮮肉品類) 4) Sundry goods(雜貨類). Ch. engchi. i Un. v. Despite the best booths contest, there are also secondary activities like photography contest、 painting contest in festival which are held for stimulation of the buying desire.. However,. overall purpose of the festival is aimed for bring up of the business in traditional market. Last but not the least, since every traditional market comprises 300~500 booths and every booth will have its major selling products and it can form a cluster effect. from traditional market is different compared to super/hypermarket.. Cluster effect. There are a lot of. handmade products or foods which is made by local materials sold in traditional market. Stuff you can see in traditional market will be rare to see in modernized channels and it can form cluster effect base on its specialty of the products preference. 21.

(22) 2. Weakness For the weakness part, environment and out-fashioned design are always the tumors that decrease the willingness of consumers come to shop in traditional market.. If the demand for. traditional market drops, it will bring the impact to sales of seafood booth directly. Despite the above mentioned long existing internal weakness of the industry. The most threatened external factor is the changing behavior for new generation consumers.. As times passed,. younger couples do not have habits of making the meals on their own.. Especially Taiwan. society is transformed into a more commercialized and industrial society, younger generations tend to concentrate more time and efforts on the jobs rather than. 治政 shopping/handling the everyday meal. Thus the demand大 for shopping the daily goods also 立 decreases. These factors would do the enormous harm to survival of the booths located in ‧ 國. 學. traditional market.. However, internal threat (environment) and external threat (dropping. ‧. demand for shopping the daily goods for youngsters) are main conflicts that we must conquer. y. sit. io. er. 3. Opportunity. Nat. in order to maintain the operation of the booth.. al. Opportunity exists as strength remains; so does threat stays as weakness were exposed.. n. iv n C Positive side always exists as negativehside comes and vice e n g c h i U versa.. The biggest opportunity. for us to operate a booth in traditional market is the increasing formation of M-shape society. Population was divided into two groups and both groups fell into two extreme side of M shape society, the lower half which represents the market who seeks for cheaper price on daily goods will be our target segmentation. tremendously speed in past few years,. The population for this market seen to grow at. which means the demand for booths in traditional. market would increase as a large proportion of market trend is shifting to more of price orientation. 4. Threat From the threat perspective, the biggest one still comes from the increasing challenge from 22.

(23) newly developed supermarket/hypermarket.. Since the. procurement from. these. supermarkets can exercise the advantage of economy of scale, the price tends to be more competitive with these new channels.. For the booth in traditional market, the buying power. of the booths definitely can’t compare with the large corporation.. Advertisements from. supermarket/hypermarket are also strong and attract the attentions of the customers. These advertisements influence the buying habits of the market by continuously broadcasting and bring certain level of damage for sales in supermarkets.. 3-3) FIRST PHASE STRATEGY. 治政 In order to make the seafood booth successful, strategies 大 play important role to help 立 achieve the goal. Strategies can basically divide into two main directions: Differentiation or ‧ 國. 學. Price competiveness.. Both methods will be applied to our seafood booth in order to make. ‧. the profits. However, below four strategies will be the main tactics that we use to make our. sit. y. Nat. seafood booth different from the rest:. io. er. 1) Products Differentiation (Differentiation). al. n. 2) Service Differentiation (Differentiation). ni Ch 3) Cost Down Tactic (Price Competitiveness) U engchi. v. 4) Development of uniqueness (Differentiation) Above strategies constitute the first-phase strategy which aims to make the operation of the booth profitable. Once the booth business starts to stabilize, it will lead to second phase of our strategy: Long Term expansion. Second phase will focus more on expansion of the booth business and seek for new methods of running the sales of seafood.. The new methods. will not limit seafood sales in booth anymore, but bring the seafood sales to other new channels in order to reach different customer base. the seafood sales in other new channels.. It can be seem as the diversification of. The long term goal is to combine the unique. specialty of traditional market which is formulated by its booths with local environment in 23.

(24) order to promote the tourism for greater business opportunities.. However, second phase. strategy will be emphasized more in later paragraphs.. 3-3-1) Products Differentiation In order to make our booth outstanding and different compared to others, products must be unique and special enough that consumers do not see often at the other booth.. At the same. time, these products also need to be attractive and fit to mass consumers’ taste. Therefore while most of seafood booth focus on selling the fish only with few combinations. Our booth will aim at seafood like below combination:. Fish. 立. 2 Shrimp. 6~7. ‧. 3 Shell/Mollusk Locos/Squid/Octopus/Mussel. 5~7. 學. Cod Fish/Basa Fish/Pomfret/ Salmon/Spearfish/ Litopenaeus vannamei(白蝦) Tiger Prawn (草蝦) shelled fresh shrimp(蝦仁). ‧ 國. 1. Products. 3~5. Nat. n. al. er. io. sit. River Crab/Three Spotted 3~6 Crab/Crab Tube 5 Value Added Hot Pot item/salad series/Stir 10~15 Products Fried items/snacks Total 27~40 Red highlights are our focus seafood 4 Crab Series. y. # Category. 政治 Varieties 大. Ch. engchi. i Un. v. While other seafood booth focus their products on varieties of fish, our booth tend to focus on all type of mass products.. Fish、Shrimp、Shell/Mollusk、Crab and value added products. can all be seem on our display table.. Our customer can enjoy one stop shopping for all. kinds of seafood. This kind of shopping model is still rare in most of the traditional markets. Out of all these categories, our booth will concentrate more on Shrimp、Crab and Value Added Products. on meal table.. In Asian culture, fish is still being seemed as the most important seafood. It is why almost every seafood booth displayed the fish products at best spot.. Our seafood booth will still sale fish since it is the mass product in seafood family, but our. 24.

(25) attention will be shifted more on other secondary seafood: shrimp、crab and value-added products.. Our product differentiation aims to sale something that other booths do not expert. in and make the characteristics of our booth more special compared with others. Despite Fish, Shrimp rank as second most popular and wide accepted food among varieties of seafood. But most seafood 1. Shrimp(蝦) booth in traditional market sale fish only or concentrate mostly on fish and few types of shrimps to serve as contrast. Crab rank as 3rd best accepted specie in seafood family. But 2. Crab Series(蟹) like shrimp, crabs are mostly seemed in more specialized seafood shop or nearby the cluster of seafood shops. As the society is transforming into busier and faster rhythm social unit. There is increasing demand for “fast foods” or 3.Value-added “Microwave type of Foods”. Our Booth also offers the Product(調理加工品) well-prepared fast foods with different types and flavors of value added products.. 立. ‧ 國. 學. 1. Shrimp (蝦). 政治大. ‧. The varieties of shrimps will be concentrated on 5~7 major types of shrimp.. In Taiwan,. two largest shrimp groups for consumption are white shrimp(白蝦) and tiger prawn(草蝦).. y. Nat. er. io. than fish categories.. sit. Most of the all you can eat buffet and hot pot restaurants use these two shrimps even more In regular families, these two kinds of shrimps are also main dishes on. n. al. Ch. i Un. v. dinning tables. So on our booth, these two types of shrimps will be placed as main products. engchi. and good quality will be key point for selling.. However, despite the mass products of white. shrimp and tiger prawn, the high-class type of shrimp will also be put in order to attract some mid to high income families. Under this circumstance, Fleshy Prawn(明蝦) and lobster(龍蝦) will be placed at position behind white shrimp and tiger prawn on our display table. Since Fleshy Prawn and lobster are focused on higher income families, therefore there will be special container for deposition of these two products.. In order to increase the gap of. differentiation between our booth and other booth, professionalism on shrimp and difference will have to be made and can be clearly compared with other booths by consumers. There is another high level acceptance shrimp product called shelled shrimp(蝦仁) which will be 25.

(26) placed at front position on display table. Shelled shrimp is like white shrimp and prawn, seemed as frequently used seafood in each family.. The quality of shelled shrimp in booth. can reflect the professionalism of the booth manager on procurement ability of the shrimps. The price of shelled shrimp is set to be between White shrimp/ Tiger prawn and Fleshy Prawn /lobster.. So despite above mentioned shrimps, there will also be “season limited” shrimps. put in our varieties of shrimps during the big holidays like New year、Moon Festival in order to stimulate the sales and strengthen the differentiation strategy.. These season limited. shrimps will be “Red shrimp from Argentina(阿根廷天使紅蝦)、Blue Diamond shrimp(中東藍鑽蝦) and Sea Prawn(海肥蝦). These shrimps are limited within certain time periods and. 治政 can only be acquired through limited supply channels in 大 Taiwan. Therefore our booth can 立 use these rare shrimps to shield the sales of our regular shrimps like white shrimp and tiger ‧ 國. 學. prawn. These season limited shrimps play the role of strong promotion of our brand on. Characteristic. Focus consumers Place of origin Taiwan 、Thailand、 White Cheap、high acceptance for mass All level of shrimp customers and can be supplied income families Vietnam 、 Malaysia (白蝦) whole year long and South America Higher price than white shrimp, All level of Vietnam Tiger but meat and taste are more solid income families prawn than white shrimp. High (草蝦) acceptance for mass customers and can be supplied 3/4 year long Higher price than white shrimp Mid~high level Peng-Hu Fleshy Prawn /Tiger prawn, mostly used in high income families. (澎湖)、Australia level restaurant. Growth period (明蝦) is around 3~4 months/year. Higher price than white shrimp High Mid~high Cuba、Australia and income Philippine Lobsters and Tiger prawn, the price is a bit level higher than Fleshy Prawn. The families. (龍蝦) growth period is around 3~4 months/year. Another form of shrimp, mostly All level of Taiwan、Vietnam Shelled use in soup stir fried and congee. income families Shrimp high acceptance for mass (蝦仁) customers and can be supplied 3/4 year long. io. sit. y. Nat. 1. Shrimps. n. al. er. #. Below chart is our menu for shrimp varieties.. ‧. “shrimp professionals”.. 2. 3. 4. 5. Ch. engchi. 26. i Un. v.

(27) All level Argentina 、 Middle of East and South-East income families, Asia. especially for those who knows shrimps well. Red shrimp from Argentina (阿根廷天使紅蝦). 2. Crab Series (蟹) It is another category in seafood family with high level of acceptance from mass consumers. Steamed crabs(大閘蟹) have been very popular in Taiwan recently due to its. 政治大 seafood due to its limited supply sources. On our booth, crabs will be secondly focus 立 good taste and freshness.. Due to its difficulty of acquirement, the varieties will basically focused on 3~5. types of crabs.. 學. products.. In most of the traditional market in Taiwan, it is rarely seems. ‧ 國. For the mass customers’ products, river crab(沙蟹/石蟹) will be placed at. ‧. front position due to its low price and long growth period. For the consumers who focus. sit. y. Nat. more on taste and specialty, Three-spotted crabs(三點蟹) is the product focused for them. Like shelled shrimp(蝦仁)in shrimp, there is also another processed crab product called crab. io. al. er. 6. Season Blue Diamond shrimp Limited (中東藍鑽蝦) Shrimps Sea Prawn (海肥蝦). v ni. n. tube(蟹管肉) which is used widely in soup、stir fried and simple dish.. Ch. engchi U. The price range for. crab tube is lowest among all of the crab products and it also fit the needs for mass customers. It is another major selling crab product at our booth.. Because most of the crab products are. short with their growth periods, so our booth has to centralize the resource and capitals to ensure the stability of the supply on few crabs.. Therefore the varieties of crabs we sale will. not be as diversified as shrimps. Basically strategy is to secure supply of three types of crabs: 1) cheap and popular crabs (river crabs) 2) higher level of crabs (three-spotted crabs) and 3) Cheap and processed crab product (crab tube). However, since most of the seafood booth in traditional market does not have a lot of types of crabs or even not selling crabs at all, therefore our booth can still make strong differentiation compared to the other competitors.. 27.

(28) The crab combinations will be showed like below chart: #. 1. Crabs. Characteristic Focus consumers Place of origin Long growth period of half All level of China、Taiwan year. Price and taste are also income families River Crabs (石蟹/沙蟹) suited for mass market consumers.. Short growth period of 3~4 High Mid~high China income Three-Spotted months/year. Taste is also level suitable for mass consumers, families. 2 Crabs but price acceptance might (三點蟹) suitable for higher income families. Long growth period of 3/4 All level of China、Vietnam year. Price and taste are also Income families. Crab Tube suited for mass market Main focus on 3 (蟹管肉) consumers. products like congee、stir fry. 政治大. 學. ‧ 國. 立. 3.Value-added Product(調理加工品). Value-added products cover a very wide range of food categories.. Simply speaking,. ‧. value added products are processed foods which can be eaten. These products include all. y. Nat. The strategy of putting value-added products is to enrich the. n. al. er. io. and microwave products etc.. sit. kinds of hot pot materials (火鍋料)、souse products(醃製品)、 lobster salad(龍蝦沙拉系列). Ch. i Un. v. products combinations of the booth. These value added products fit the needs of fast food culture in current society.. engchi. However, there will be around 10~15 types of products at our. booth like below listed: # 1. 2. 3. Name Characteristic Focus consumers Lobster High level of acceptance and low price. All level of Salad It can be eaten right away after open up of income families (龍蝦沙拉) the bag. Hot pot High level of acceptance and low price. All level of products Especially hot pot is one of the most income families popular way of handling the meal in (火鍋料理) Taiwan. Seafood It’s wrapped with shrimp and cabbage for All level of Rolls fried usage. income families (海鮮捲). 28. Origin place Taiwan. Taiwan. South East Asia.

(29) 5. 6. 立. ‧ 國. ‧. io. sit. y. Nat. 8. 學. 7. 政治大. n. al. er. 4. It is made by different ingredients like All level of Taiwan Meat Ball sailfish(旗魚)、pork(貢丸) etc. It is also income families series very popular food in Taiwan, mostly used (丸子系列) for soup. level Japan It is what we called souse products(醃製 Higher family. 品). Himono is the Japanese term of income Mostly will be Himono handling and dried the fish. They are (一夜干) snacks used in Japanese style dish while white collar or drinking mostly. The ingredients used office workers. for Himino are mostly mackerel(鯖魚). In Taiwan, the technology of food All level of Taiwan invention is considered advanced income families compared with other countries. Fast foods Nowadays there are even Fast foods packs packs. These packs can be put in (速食 microwave or stove and can be handled 調理包) within 3~5 minutes. The most popular packs in the market now are Ginseng chicken pack(人參雞)and Buda jumps the wall(佛跳牆調理包). These are ready to eat snacks which can All level of Taiwan families. Korea Cold dish be eaten after unpack. They are usually income series used as side dish on dinner table. The Mostly will be Japan (涼菜系列) most popular cold dishes are soybean(毛 elders or working 豆)、black bean(黑豆) and Kimchi(泡菜). groups. All level of Taiwan These are like Fast foods packs (速食 Taiwan families. Traditional 調理包) in section 6, but this focus more income Mostly will be Snacks on Taiwanese traditional style of taste. ( 台灣傳統 The focus products will be spiral shells(燒 elders or working groups. 小吃系列) 酒螺) and shrimp roll(府城蝦捲) etc. Despite the seafood, there will be certain All level of Taiwan portion of meats sold at our booth, but income families. Livestock meat products are mainly focused on Mostly will be &poultry processed ones which can be eaten right elders or working (畜禽類) away after unpack, they are oil groups. chicken(油雞)、drunk chicken(醉雞) etc.. 9. 10. Ch. engchi. i Un. v. New year This section is set up strategic purpose All level of Taiwan packs during the Chinese New Year. New year income families. (年菜系列) is considered as the holiday with strongest This set of products consumption power. Therefore products will only be placed for New year packs focus on stuff which during Chinese is popular and widely accepted by mass New year in order customers during the new year, they are to stimulate the mullet roes(烏魚子)、fins(魚翅) and fish buying motivation roes(魚卵) etc. These products will only and strengthen the attractiveness of the be seemed during the holiday. products lists of the booth 29. 、、.

(30) Due to high turnover rate and quick invention of value added products, the above mentioned products might be adjusted according to seasons and trend of the food markets and consumers tastes. However, the main purpose of displaying the value added products at booth is to enrich our food varieties of the booth and also expand our market to more efficiency- oriented and fast food oriented consumer base.. There is another advantage of. adapting the value added products is that there is no problem on growth period for value added products.. Because most of these value products are artificial or processed foods,. therefore the supply will not be affected by weather or any other natural conditions.. Thus. the shortage of the products might be factor to consider while managing the seafood products,. Price Range. Shrimp. Nat. Low Cost High Cost Crab. io. 2. al. n. Low Cost. 3. Value added Product. C Margins rate rangeh. Lobster、Flashy Prawn White Shrimp、Tiger Shrimp. y. 1. NTD$600/K and above NTD$600/K and below NTD$400/K and above NTD$400/K and below. ‧. High Cost. Specie(Item). Three-Spotted crabs. sit. Standard. er. Category. 學. #. ‧ 國. 治政 but it will never be the issue for value added products. Base 大 on these three main categories 立 our booth will focus, products price ranges will be classified like below:. River Crab、Crab Tubes. iv n shrimp U roll、Lobster salad、hot pot i e n g Tainan h c series、Taiwan Traditional Snacks、cold dish snack etc. about 20~30%. 3-3-2) Service Differentiation Despite the products differentiation, service we offer will also vary with others: # Service Differentiation 1 E-Business. Blog-It’s the most popular and widely accepted internet tool for mass consumers. It serves the same function as websites and enables the viewers to interact with the Blog operator. We can. 1-1 Blog. post the latest information and price on Blog and nurture the basic customer base 30.

(31) through Blog. Yahoo Blog will be the main tool our booth would run. 1-2 Face Book. Face Book-It serves the similar function as Blog, it will also be applied due to some users who feels more comfortable with Face Book than Blog, therefore we would also take care of the face Book users.. 1-3 Shopping site Site-We can also sale our products through large bidding platform in order to develop a new channel, such as yahoo bidding site、Ihergo(合購網) Most of the Booth operator just perform the basic service on 2 Delivery service retailing. Our Booth will serve our customer not only through regular retail and internet sales, but also door to door delivery once the customer’s consumption value had reached NTD$3,000, this service has below tactics involved in: 1) Encourage the group shopping in order to attract more customers know about our booth. 2) Increase the efficiency and turning rate of the stock. 3) In order to reach the amount, consumer will need to invite the others to do the shopping together. It helps to do free advertising on our brand and increase the popularity of the booth. It’s the special service which was offered for 2 kinds of 3 Personal shopping service customer 1) Whose consumption amount is more than NTD$5,000 (客製化代採購服務) 2) Royal customer (ex: Who has more interaction with us on internet or customer who come to shop at booth regularly). 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. The Menu we offer for personal shopping service will be different compared to our daily sold seafood at booth. The seafood on the menu 1) will be changed according to season 2) If there is anything customer want but not on our special menu. They can provide their own list to us, we could also help them to shop and deliver to their doors. There are two goals for personal shopping service 1) Increase the service differentiation of our booth compared to other seafood booth 2) Increase the customer royalty It is clear that our service differentiation basically focus on two elements: E-Business and customization. From E-Business perspective, even though the average age that comes to 31.

(32) shop in traditional Market is older. Due to formation of M-shape society, there is increasing amount of younger working employees come to shop in traditional market.. These. customers are mostly married women and aged between 25~40. This consumer group has characteristic of price oriented, and also familiar with modern internet technology. Therefore E-business is a way to attract the attentions of them.. In fact, our booth does not. only provide the service on internet, we also have physical shop in traditional market and it can give them more faith on our honesty and quality of the products compared to some shopping sites on line.. From the perspective of customization, despite the personal delivery. service and group purchase premium, our booth can customize a list of seafood materials. 治政 according to different seasons for our royal customers and 大 advise them the market price. 立 Customers can pick the items they are interested and let us do the service of procurement ‧ 國. 學. through our supplier chains and deliver the products to their door.. This can guarantee. ‧. customers’ acquirement of best seafood during each season with lowest cost.. It is also the. sit. y. Nat. challenge for us to build the relationship with customers. Once customers found out that our. io. er. booth’s ability of providing them the best seafood materials with lowest price, it can solidify. al. the royalty of customer base. However, base on E-Business and customization, the service. n. iv n C differentiation strategy aims to increasehthe level of trustU e n g c h i from customers in order to promote the brand awareness of the booth, thus expand the market shares. 3-3-3) Cost Down Strategy Price plays a key role on the business of the booth.. Without a competitive price, the sales. can never generate. Therefore the price is the most competitive weapon which can help us compete with outsiders (super/hypermarket) and insiders (other booth operator). proceed as following: Direct Supply from Utmost (Get rid of the mid players) Original Supply Chain. Our Supply Chain. 32. We can.

(33) Farmer/Fishery Upper Supplier. Farmer/Fishery. Upper Supplier. Distributor. Powerful Window. Booth. Booth. Booth. Booth. End User. End User. End User. End User. Middler sss. 政治大. According to my current working position as seafood procurement agent, I personally have. 立. the closer connection with upper-stream suppliers compare to other seafood booth operator.. ‧ 國. 學. Thus I can use my resources help me getting the products without being ripped off by what so called upper suppliers.. Food industry is basically the business of how to reach the upper. ‧. It is also why our booth can. io. sit. Nat. cost will also be minimized according to the level you reach.. y. stream producer. Whoever has the connections to reach the upmost stream, the operation. n. al. er. obtain certain special products like season limited shrimps or value added products through our supplier channels.. Ch. i Un. v. This difference of supplier chain does not only minimize our cost,. engchi. but also increase the diversification of the products we can offer compared to other booth operator. For the outside competitors like super/hypermarket, the cost of operating the booth in traditional market is definitely much lower.. First of all, it is free charge of income. tax according to government regulation. Therefore booth retailers do not have to provide receipts while doing the business in traditional market.. It is the policy that government. posted to protect the growth of the local food retail business and it can provide at least 5% of the space on pricing for booth operators compare to outside competitors.. Secondly, the. rental fees on booth also enjoy the benefits from government’s patronage on market space. The rental fee of the booth is based on the land scale your booth occupies. But most of the 33.

(34) traditional market is public owned association, therefore the rental fees is considered very cheap compared to real market price.. In average, a monthly rental fees for a booth cost. around NTD$ 3,000~5,000 dollars in traditional market and this gives seafood booth another advantage on operation cost.. Not only the rental fees, actually every traditional market in. Taiwan enjoys the discount on price of hydro and electricity due to government policy. However, these fees are very stable and would not adjust unless there is change on the government’s patronage policy.. Therefore overall cost on running the booth in traditional. market is very cost competitive.. Third, Government has hosted a lot of funding programs. on development of the hardware in traditional markets in recent years. These funding. 治政 improve the environment of the market and its surrounding 大 areas in order to increase the 立 competiveness of the traditional market against the large retail corporations. For example, ‧ 國. 學. Taipei government has distributed the capitals for more than 5 billion dollars on expansion of. ‧. the parking spaces near 10 largest traditional markets in 2009. These policies slowly change Last but not the least,. sit. y. Nat. the impression of what people think of traditional markets in old days.. io. al. er. the location of the traditional markets is mostly at center of the community or place with high. n. flow of passengers. Therefore the booths in the market can enjoy a stable flow of the visitors without any extra fees.. Ch. engchi. i Un. v. 3-3-4) Development of the unique culture and style There will also be varieties of marketing or promotion strategies we could use to stimulate the sales and increase the consumers’ interests. # 1. Strategy Combination with local specialty/resource. Examples/explanation Bei-Tou market can cooperate with local Hot Spring+Hotels to hold “Hot Spring Festival”. Cooperation with Government’s 2010 Taipei’s Festival of Traditional Market program/event 1) Design of the Logo Management of the personal 3 2). Design of the Slogan “Booth” Brand 2. 34.

(35) 1. Combination with local specialty and tourism resource Our model for booth operation is on Bei-Tou traditional market.. The reason we choose. Bei-Tou market is not only for its high consumers flow like previously mentioned, another main reason is due to its rich resources on tourism like hot spring、historical bathhouse(傳統澡堂) 、gorgeous clusters of hotels and beautiful scenic sights like path of sakura(櫻花步道) during spring and summer.. However, the tourism resource of Bei-Tou will have to be. addressed before cut into strategy of combining the traditional market with local resource. Taipei government had put tourism as one of the key development on future green economical development. As idea for environmental protection is increasingly being aware. 治政 by mass public, every government aims to develop clean 大economy with lesser degree of 立 pollution. That’s why tourism is being marked as key policy for economic development. ‧ 國. 學. Bei-Tou is famous for its antique hot spring culture and natural scenic sights like Guan-Du These resources give Bei-Tou the strong backup to. ‧. natural park、Yang-Ming Mountain etc.. sit. y. Nat. attract tourists come and incurs the consumption. Below is the statistical data on tourists. io. al. Guandu natural park、Bei-Tou hot spring. er. flow for four largest tourism spots in Bei-Tou:. n. museum、Katagalan culture museum and Yang-Ming Mountain National Park.. Ch. engchi. 1) Guandu natural park(關渡自然公園 ). i Un. v. Numbers 95,272 108,125 96,771 114,542 107,284 521,994 of tourists years. 95. 96. 97. 98. 99. 95~99. 2) Bei-Tou hot spring museum(北投溫泉博物館) Numbers 181,581 149,385 189,302 291,296 281,647 1,093,211 of tourists years. 95. 96. 97. 98. 99. 35. 95~99.

(36) 3) Katagalan culture museum(凱達格蘭文化館 ) Numbers 76,295 261,258 187,045 116,494 161,648 802,740 of tourists years. 95. 96. 97. 98. 99. 95~99. 4) Yang-Ming Mountain National Park(陽明山國家公園) Numbers 2,231,000 2,2196,000 1,751,000 2,006,000 1,813,600 10,021,200 of tourists years. 95. 96. 97. 98. 99. 95~99. From the above statistical data, we can see that even the numbers of visitors might fluctuate. 政治大. according to different year, but overall number for visitors is increasing in each tourism spot.. 立. These tourists can provide our booths and traditional market another source for consumption. ‧ 國. 學. if we can implement a complete tourism program or package which can combine both the Most of the booth operators in traditional market As time changes, sales is not only about. Nat. Marketing and package of. io. sit. quality of the products and competiveness of the price anymore.. y. currently still focus on doing the business of retail.. ‧. tourism resources and local foods/culture.. n. al. er. the products/service is another main tactics retailers have to be aware in order to differentiate with other competitors.. Ch. i Un. v. Since Bei-Tou has absolute advantage on location (like previously. engchi. examined) in Greater Taipei region and plentiful tourism resource, booth operators in Bei-Tou can cooperate together and form an association of Bei-Tou Traditional market which not only manage the business and maintenance of the order, but also implement the program or festival in order to combine all the resource like previously mentioned to attract more consumption from the visitors. This kind of activity can only be successful by cooperation between local government and local business.. This strategy aims at greater scope of profits. by expanding the business of traditional market to combine with local tourism, thus lead-time preparation and plan will have to be detail and it might take certain period of time. However, if this strategy can successfully connect the local food/culture of traditional market 36.

(37) with tourism, the development can expand from retail business to greater regional tourism business.. 2) Cooperation with Government’s program/event Taiwan Government has been aware of the importance of traditional market in recent years, therefore. they. had. hosted. the. event. “Traditional. of. Market. Festival”(http://www.2010market.com.tw/show3.html) each year in order to encourage more visits of the customers to traditional market. to improve the visibility and popularity.. Our booth can also use this kind of opportunity. Beside the government’s event, there is also the. 治政 interflow of experience between traditional markets which 大is hosted by Taipei City Market 立 Administration Office every few months. Our booth can also use these chances to learn and ‧ 國. 學. inspect from each others work. Under some circumstances, we can also alliance with other. The information flow on new. sit. y. Nat. products together in order to minimize the cost of products.. ‧. booths that has similar ideas with us and integrate the procurement quantity on some of the. io. between booths.. er. products can also be exchanged with increase frequency on exchange of the experience. al. However, efficiently use of the resource government provides is another. n. iv n C main strategy our booth can manipulatehin order to increase e n g c h i U booth’s strength. 3) Management of the personal “Booth” Brand. Brand management is another strategy we will apply on the management of the booth business.. It can also be seemed as another type of differentiation.. Most of the booth. operators in traditional market do not have the ideas of creating its own brand or specialty. So we will design our logo and shop sign at the booth in order to enhance the awareness of the booth.. Despite the logo and shop sign, every time our customers bring its own bag to. carry the products they bought from us, there will be 2 dollars deduction as encouragement of environmental protection. For the package materials our booth offers, it will also focus on 37.

(38) materials that is friendly to environment and recyclable in order to incur more responses from customers who has same kinds of attitudes like us. The logo will also be printed on the package materials in order to do the advertisement for the booth.. Last but not the least,. there will be a slogan and theme being put on all our media or advertisement campaign in order to express the culture and ideas of the booth.. The slogan will be “eating with healthy. and tasty seafood can coexist with saving the planet earth.” This slogan perfectly shows the spirit of our booth and intends to make difference with other booths in traditional market. However, the intention of the slogan is to attract the interest of younger generations and make them understand that buying seafood in traditional market can also be environmental. 治政 protection and fit the main social stream. 大立 ‧ 國. 學. 3-4) Second Phase Strategies: Long Term Expansion. ‧. After going through the first phase strategy (year 1~5), the booth is expected to have a Therefore there. sit. y. Nat. stable business and looking forward to expand the business to wider range.. io. al. er. is a second phase strategy which focuses on development of the booth for longer time period. n. and larger scale. They are listed as below: year. Strategy. Ch. engchi. iv n U Target. Expand the booth from one to Reach to certain economy of scale in five. One booth per one order to strengthen the procurement famous traditional market. ability and expand the products line. We 6~10 can also form a franchise of seafood booth in traditional market with our own brand. Despite the retail business of Diversify the business and start to the booth, we would move to manipulate the seafood market and play 11~20 upper stream and start to do the role as distributor. the distribution business(盤商) Allocate enough capitals to One line( 一條龍 ) control from the invest the upmost stream. It upmost stream to the channel of retail in 20 and beyond can either be the processing order to maximize the profits and gain the factory、fishing boat or fish absolute control farm. For the year 6~10, the strategy is to expand the booth numbers to other traditional 38.

(39) market.. In Taipei City, there are total of 48 public traditional markets.. Basically we will. focus on 10 largest traditional markets with highest customers flow for booth expansion. The target is to increase the booth numbers in order to apply economy of scale on buying the products.. In food industry, large consumption can ensure the lower price.. The target. numbers for booth expansion is around 4~5 booths and the main traditional markets we focus are like below listed: # Market Name. Characteristic. 1 Shi-Dong market (士東市場). Advantage. Locates in Tian-Mu(天母) with high flow of foreign residents. The consumption is also stronger than other traditional markets. 2 Small A lot of special mainland Nan-men style foods can be found here, thus numbers of (小南門) customer flow consider as market. top five among all traditional markets in Taipei 3 Tam-Shui High flow of tourists with (淡水) market stable consumption from Tam-shui residents.. 政治大 High consumers flow.. Focus more on The residents around mainland the market are mostly related food retired public servants. materials.. 學. ‧. ‧ 國. 立. High consumers flow with strong buying power due to foreign residents. Operation Strategy Focus on products that fit the needs of foreigners.. sit. n. er. io. al. y. Nat. Consumers are The products comprised of local combination residents and tourists. will be similar Especially there are with Bei-Tou two large universities since both located in Tam-Shui places are which provide stable famous places customer base. for tourism 4 Yong-Chuan Locate in downtown Taipei. Residents living around Focus more on (永春)market Hardware is very advanced Yung-Chuan are mostly high quality with higher income residents white collar working food materials around the market. groups with high with easy income. handling characteristic.. Ch. engchi. There will be one booth per one market.. i Un. v. The target is aimed to reach the quantities of. five to six booths (including Bei-Tou). According to our 6~10 years plan, the speed for development will be around 1 booth/year. Each of these booths would carry exact same brand/logos as Bei-Tou market.. The target goal is to make these booths formed a franchise. of booths in traditional markets in each popular traditional market.. As the representative,. we can integrate the procurement in order to strengthen the bargaining power with suppliers 39.