กลยุทธ์โต้กลับ #cp เปิด #Lotus´s go fresh ใกล้ #7eleven กันคู่แข่ง #cj [ThaiFranchise Today] EP67

Summary

The video script highlights the competitive strategies between CJ and CP in the Thai convenience store market. CJ employs the Hotelling Model by opening stores near 7-Eleven locations to leverage existing customer bases. In response, CP counters with a strategic approach of opening Lotus Gold Fresh stores alongside 7-Eleven to block CJ’s expansion and maintain market dominance. CP further diversifies its offerings with bulk grocery items and 'All Grocers' outlets, creating a comprehensive retail experience. This rivalry is intensifying as both companies compete for prime locations and consumer loyalty, shaping the future of the retail landscape in Thailand.

Takeaways

• 😀 CJ’s strategy involves opening convenience stores near 7-Eleven locations to attract customers in those areas, capitalizing on the existing customer base of 7-Eleven.
• 😀 CJ uses the 'Hotelling Model,' opening stores adjacent to 7-Eleven to reduce the need for location analysis, targeting customers who already frequent 7-Eleven.
• 😀 Despite initial perceptions, CJ's proximity-based strategy has proven successful in some locations, attracting more customers than 7-Eleven in certain areas.
• 😀 CP Group (owner of 7-Eleven) responded to CJ’s strategy by implementing a similar approach with its Go FR stores, positioning them next to 7-Eleven to prevent CJ from establishing nearby stores.
• 😀 The market strategy is not just about physical store proximity but also about customer behavior, offering different products and services to cater to diverse needs.
• 😀 7-Eleven stores under CP Group have diversified by introducing the 'All Grocers' concept, which offers larger packages of daily necessities and household items, providing a one-stop-shop experience.
• 😀 CP Group has been proactive in controlling prime retail spaces, locking out competitors like CJ by strategically opening Go FR and Lotus Gold Fresh stores near 7-Eleven outlets.
• 😀 CJ has expanded to more than 1,500 convenience store locations in the past 1-2 years, while 7-Eleven operates more than 15,000 outlets across Thailand, making the competition fierce.
• 😀 Despite their different product offerings, both 7-Eleven and CJ target similar customer segments, focusing on daily convenience and affordability, leading to direct competition for retail spaces.
• 😀 The retail space battle between CP Group and CJ shows how businesses are using strategic positioning to dominate valuable market locations, preventing competitors from gaining a foothold in key areas.

Q & A

What is the key strategy used by CJ in competing with 7-Eleven?

CJ uses the 'Hotelling Model' to open stores near or next to 7-Eleven outlets, strategically placing them in high-traffic areas to attract 7-Eleven's existing customer base. This method allows CJ to easily tap into new customers without the need for extensive site analysis.

How does the competition between CJ and 7-Eleven impact the market?

The competition creates a tense environment where both companies aim to secure prime locations to prevent each other from expanding. CJ targets areas near 7-Eleven to attract their customers, while 7-Eleven responds by using similar strategies to protect its territory.

Why is it difficult for CJ to continue using the 'Hotelling Model' against 7-Eleven?

It is becoming more difficult for CJ because CP, the parent company of 7-Eleven, is now using the same 'Hotelling Model' strategy, opening its Lotus Gold Fresh stores near 7-Eleven to prevent CJ from securing prime locations. This limits the opportunities for CJ to expand in high-demand areas.

What is the role of Lotus Gold Fresh in CP's strategy?

Lotus Gold Fresh serves as a complementary store to 7-Eleven, offering fresh foods and groceries. By positioning it next to 7-Eleven, CP can target different customer needs while blocking CJ's expansion in nearby areas, making it harder for CJ to compete.

What advantage does CP have over CJ in terms of managing store locations?

CP has the advantage of managing multiple brands, including 7-Eleven and Lotus Gold Fresh. This allows CP to secure prime locations for its stores and prevent competitors like CJ from establishing a foothold in those areas, effectively controlling the marketplace.

How does the customer base differ between 7-Eleven and Lotus Gold Fresh?

7-Eleven focuses on providing convenience products for daily consumption, while Lotus Gold Fresh caters to customers looking for fresh produce, meats, and groceries. This differentiation allows CP to target different customer segments even when the stores are located near each other.

What is the significance of the 'All Grocers' model introduced by 7-Eleven?

The 'All Grocers' model allows 7-Eleven to sell bulk items and household goods, such as large packs of products or buy-one-get-one-free deals. This model aims to compete with larger grocery stores and attract customers who need both daily convenience items and larger household products.

How is the CP group's strategy evolving in response to CJ's competition?

CP is evolving by introducing new store formats like Lotus Gold Fresh and expanding their offerings to meet customer needs more comprehensively. They are also leveraging the power of their multiple brands to lock down key locations, preventing CJ from gaining a competitive edge in the market.

What challenges might CJ face in the future as a result of CP's new strategies?

CJ will face difficulty in finding new prime locations for its stores, as CP has effectively blocked many of the best sites by opening their own stores in the same areas. This will limit CJ's ability to grow and attract new customers, especially in key urban centers.

How does the competition between CJ and CP reflect broader market trends in Thailand?

The competition reflects a growing trend of consolidation and territorial control in the retail sector. Both companies are using strategic store placements to protect their market share, which is becoming increasingly competitive as convenience and grocery shopping continue to merge in the retail space.