Main Topic: Wang Ping Steak Market Segmentation

Hosts: James Stanworth , Clyde Warden

In the next three shows, we visit Wang Ping Steak in Taiwan. Clyde and James are in studio to present the background of the steak restaurant market in Taiwan and China. What makes this topic interesting is the lack of beef in Chinese cuisine. How have firms marketed the concept of beef--a problem faced by McDonald's and skipped over by KFC? There is a clear steak market built up from the 1960s to 1990s, which included both restaurants and the ever-exciting night markets. A standard model of steak emerged and the market segment was stable. Wang Ping has changed all that with a big emphasis on service--never part of the mainstream steak market before. A totally new design, learning from the production efficiencies of McDonald's, and a clear market segmentation has led to a rapid dominance of the steak market, and a firm that wins award after award, stays in the popular press and requires reservations days in advance.

Wang Ping Restaurants

Beef is product that has required education of consumers in order to fit into the local culture. The high end restaurants, such as Chris Ruth, could always depend on expats and consumers who have traveled overseas and bought into the Western assumptions of steak. I suspect these consumers also appreciate wine and coffee, and generally have a jet-setting life style. For the rest of Chinese consumers, a standard steak meal developed, which could be found from chain restaurants to the popular night markets. Clyde and James visited the Wang Ping empire, by eating at all three of their main stores, in Taiwan and the PRC. The changes in the market are quite rapid and amazing. Wang Ping has changed the format, segmented the market, and most importantly, used service to captivate customers and teach them what a steak meal is all about. Since the three main chains, Wang Ping, Tao Ban Wu, and Tasty, serve different markets and present very different servicescapes, we will devote a whole show to each restaurant.

They designed systematically points of contact, from the entrance, to the table, to the core product.

Photos:

Thanks to Michal Turton for some of the traditional steak photos.

• (1) Tasty's logo uses a red motif. (1) Tasty's logo uses a red motif.
• (2) The entrance way is easy to spot at night, especially in Taiwan where big signs tend to get crowded out. (2) The entrance way is easy to spot at night, especially in Taiwan where big signs tend to get crowded out.
• (3) Tao Ban Wu's color is purple. (3) Tao Ban Wu's color is purple.
• (4) The menu is standardized, but multiple courses cover this up by including one or two choices within each course. (4) The menu is standardized, but multiple courses cover this up by including one or two choices within each course.
• (5) Feedback form and promotional material. (5) Feedback form and promotional material.
• (6) A service emphasis includes showing customers how to cut their steaks. (6) A service emphasis includes showing customers how to cut their steaks.
• (7) Presentation is quite different from the traditional hot plate steak. (7) Presentation is quite different from the traditional hot plate steak.
• (8) I asked for some help. (8) I asked for some help.
• (9) My service supplier did a good job showing me how. (9) My service supplier did a good job showing me how.
• (10) Dessert is all about presentation. (10) Dessert is all about presentation.
• (11) Take away dogie bag is well done, and often needed because the servings are quite large. (11) Take away dogie bag is well done, and often needed because the servings are quite large.
• (12) Ponderosa was an early entry to the market. (12) Ponderosa was an early entry to the market.
• (13) Set menus for the core product. (13) Set menus for the core product.
• (14) Food bar is all you can eat, which is quite popular for families. (14) Food bar is all you can eat, which is quite popular for families.
• (15) A new addition, faux brick. (15) A new addition, faux brick.
• (16) Inside are noodle stands, looking just like noodle stands on the street, and here customers can make their own! (16) Inside are noodle stands, looking just like noodle stands on the street, and here customers can make their own!
• (17) Ruth's Chris Steak is such high class, that it really is high, on top of one the tallest buildings in Taichung. (17) Ruth's Chris Steak is such high class, that it really is high, on top of one the tallest buildings in Taichung.
• (18) A typical traditional steak house flier. (18) A typical traditional steak house flier.
• (19) Dung Dah steak, a typical traditional local player. (19) Dung Dah steak, a typical traditional local player.
• (20) The shop spills out on to the sidewalk--like most retailers in Taiwan do. (20) The shop spills out on to the sidewalk--like most retailers in Taiwan do.
• (21) Cooking equipment is pushed right out into the public space. (21) Cooking equipment is pushed right out into the public space.
• (22) Fit into the normal first floor retail space--no structural changes required. (22) Fit into the normal first floor retail space--no structural changes required.
• (23) Piles of wood holders waiting for hot plates. (23) Piles of wood holders waiting for hot plates.
• (24) Vat of steak sauce. (24) Vat of steak sauce.
• (25) Large glass right at the sidewalk makes it easy to draw attention, hoping to get attention based on lots of activity inside. (25) Large glass right at the sidewalk makes it easy to draw attention, hoping to get attention based on lots of activity inside.
• (26) Wide open inside, tables are lined up; big enough to seat families. (26) Wide open inside, tables are lined up; big enough to seat families.
• (27) The classic traditional steak meal, found at Dung Dah, other steak house, and night markets. (27) The classic traditional steak meal, found at Dung Dah, other steak house, and night markets.
• (28) The typical salad bar--well supplied with mayonnaise. (28) The typical salad bar--well supplied with mayonnaise.
• (29) Simple open servicscape; here with some wall and ceiling decorations. (29) Simple open servicscape; here with some wall and ceiling decorations.
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ConsumerCam:

Show Links:

• Ruth's Chris Steak House.
• A consumer's photos of a dinner at Wang Ping Steak.
• Wang Ping Website Taiwan.
• Wang Ping Website PRC.
• Tao Ban Wu (Japanese theme) Website.
• Tasty Website Taiwan.
• Tasty Website PRC.

Bottom Line:

• Chinese consumers have been eating steak, but normally at night markets and simple steak houses.
• Market had high end imported restaurants, but mostly local small chains and independent operators.
• Local steak house servicescape tends to be very minimal.
• A standard format developed that includes steak, egg, noodles, and a salad bar.
• Large all you can eat steak houses became popular in the 1990s, such as Taichung Steak House.
• Ponderosa has innovated to offer local metaphors, such as street noodles, as well as increased service levels.
• Wang Ping Steak enters this market with a very different approach, emphasizing cost savings through systems, but with high contact service and market segmentation.