Jollibee

Jollibee Foods Corporation

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Prepared For Prepared By

Mr. Bashir Hussain,

Senior LecturerSchool of BusinessNorth South University

Nazmus Sakib

ID: 091-0866-030MKT202

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Table of Contexts

Content Page

Jollibee: Getting Inside 4

Target Market 6

Market Positioning 7

Marketing Mix 8

Focusing on Competitors 11

Conclusion 12

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Jollibee Foods Corporation

Who would have guessed that a giant cartoon bee character

could become the national symbol for delicious, affordable and

fast food in the Philippines? Well, that’s what began in

1975 when Tony Tan Caktiong opened an ice cream shop in Cubao,

Quezon City. The results of his efforts have been nothing short

of phenomenal.

Though jollibee began as an ice cream parlor, it was the

move to diversify to more types of food like hamburgers that

really put them on the map. In every major area in the

Philippines, one can count on multiple Jollibee’s being around;

ready to serve you a yumburger, chickenjoy, or your own personal

favorite.

According the official Jollibee website, in less than 10

years, in 1984, Jollibee reached the 500 million pesos sales

milestone. Another 5 years later in 1989, Jollibee accomplished

another amazing feat - reaching the 1 billion pesos sales mark -

and being the first fast food chain in the Philippines to do so.

Other notable accomplishments include becoming part of the top

100 corporations in the Philippines in 1987, and becoming the

first food service company to be listed in the Philippine Stock

Exchange. The prestigious award of “World Entrepreneur of the

Year” was given to founder Tony Tan Caktiong in 2004 for the

inspiring work he’s done. Additionally, the Far Eastern Economic

Review has judged Jollibee as “The Most Admired Company” in the

Philippines over the last 6 years.

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What’s the secret to the success of Jollibee? Is it the

creative marketing and unique branding they’ve pioneered in the

realm of fast food? Is it the focus on traditional Filipino

culture and the fact that they try to still seem a “local

favorite” despite the fact that they’re the nation’s most

prevalent restaurant? I’d say it’s a combination of all these

things and more. Jollibee has indeed revolutionized the fast

food industry in the Philippines. Today they satisfy the

appetites of Filipinos everywhere with 600 stores in the

Philippines and over 30 international stores.

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Target Market:

“Jollibee Foods Corporation” targets its market very

strategically. First of all, JFC can be considered as a nicher

as it specializes on its local market. Though it has penetrated

its market by operating overseas, JFC tends to serve the

Philippines who are living there. JFC has 1200 stores worldwide

of which 1079 are located in the Philippines.

Jollibee Segmented fast food market according to several

variables and had chosen some of them according to its resources

and technological ability.

Geographically, JFC mainly serves local Philippines market

that has already been stated above.

Demographically, it tends to serve almost all customers.

But still the market is segmented according to age to serve the

children superior value. A Filipino business analyst notes that,

in a normal family weekends are reserved for children and

parents ask them where they want to go. Thus, JFC wants to be

appealing to children. This segmentation can also be considered

as “Family Life Cycle” Segmentation.

Jollibee also tries to capture some occasions like birth

day party. They serve this segment very nicely.

JFC tends to serve every possible segment. Thus they are

expanding their business overseas aggressively to go beyond

Geographical barriers.

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Positioning:

Ensuring high traffic needs an emphasis on store location

and positioning Jollibee in the minds of the consumer as a place

that they would enjoy eating fast food. This entails proper

branding and positioning of the service offered.

JFC had brought to everyone’s lips the promise of langhap-

sara (smells good so it must taste good).

Jollibee also projected itself as world class brand by

expanding its market overseas.

Jollibee seems to be more people’s place than the specials.

Its nationalist view is a key fact. Personnel at Jollibee

communicate with customers in local language rather than English

unlike to its competitors as Mc Donald’s.

JFC provides more homely environment than competitors with

tailored food menu to meet the local peoples’ needs.

It is a super place for children that has ever been.

Children can come with their parents and play here while being

served with special items specially made for them. Also, JFC

facilitates birthday party arrangement for them.

Thus the value proposition of JFC that has distinguished it

from competitors is, “Jollibee provide special Philippines meal

at a cheaper price in a very much homely environment and is a

place where people come for joy.”

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Marketing Mix:

Product:

In the case of Jollibee, it went from being an ice cream

parlor to serving hamburgers made with a home-style recipe. This

change in product was in response to events triggered by the

1977 oil crisis which would have doubled the prices of ice

cream.

The product offered by Jollibee appeals to the Filipinos

taste for spicy burgers. By concentrating its resources on

satisfying the Filipino palate, Jollibee has been able to serve

localized dishes that are unlike any found in the other fast-

food chains in the Philippines. In addition to offering the

usual French fries that accompany the meals found in McDonald’s,

KFC, Burger King, and so forth,

Jollibee also serves rice or spaghetti, Filipino style.

Even the burgers are cooked exactly as Filipinos want them done—

sweeter and with more seasonings, often likened to what a

Filipino mother would cook at home.

Menus in outlets across the globe adjusted to local

preferences to differentiate it from other standardized players

like Mc Donald’s and KFC who maintain the same menus worldwide

with minimal changes.

Jollibee even incorporated recipes from employees to truly

capture local tastes.

Jollibee’s phenomenal growth owes much to its strict and

committed adherence to high standards as symbolized by "F.S.C.":

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Food (F) served to the public must meet the company’s excellence

standards or it will not be served at all; the Service (S) must

be fast and courteous; and Cleanliness (C), from kitchen to

utensils, must always be maintained.

Price:

Price is closely related to customer satisfaction. Thus,

JFC provides its high quality fast-food products at a relatively

cheaper price. According to its commitment to serve each and

every Filipino, JFC keeps things affordable for all. “The DLSU

Survey” shows that, 94% of JFC’s customers think it’s affordable

or cheaper.

Place:

The location of outlets is of key importance to the

marketing strategy of Jollibee. It has established a large

number of outlets to be easily accessible by the customers.

According to “DLSU Survey”, 77% stated that they care about the

Accessibility of Fast-food Outlet and 72% is satisfied that

Jollibee has maintained it very well. Overseas, the outlet in

Hong Kong is located at Central where a large number of

Filipinos gather which can be an example of Jollibee’s good

placing strategy.

Recently, to capture more share from their customer’s

wallet, JFC introduced home service. Loyal customers, for some

reason who can’t get out of home but want to have a bite of

“JFC”, now can get Chickenjolly or Jolly Hotdog by a phone call.

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Jollibee Management carefully selects their franchisors to

make sure that they can meet its standard. To be a franchisee of

JFC, one has to invest 15-30 million pesos.

Promotion:

Local brands: Brands in local market are strong contenders

and not to be underestimated. Jollibee often have the advantage

of intimate knowledge of consumer tastes and consumer preference

through local pride. Jollibee used the wave of nationalist pride

to promote a Filipino brand of hamburger. This strategy met with

great success.

Investing in socio-civic programs designed to serve its

host communities further secured Jollibee’s position as a

Filipino company for the Filipino. Advocacy campaigns such as

the early Christmas drive “ma-Aga ang pasko sa Jollibee,” again

endorsed by Aga Mulach, the poverty housing project with Habitat

For Humanity, and the “Kaya Mo Yan Kid” or “You can do it,

kid!” campaign to encourage kids to show their potential

contributed to the company’s overall success, not only with its

customers but with all its stakeholders.

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Competitors:

Competitors like Mc Donald’s have more money and highly

developed operation systems that enable it to control its

quality, costs, and service at the store level. Thus Mc Donald’s

can operate in a less cost.

But it has a plain patty which is part of its global menu.

And because of its standardized product line Central decision

process, Mc Donald’s can’t be flexible with the local needs and

wants.

Mc Donald’s surely has a high quality food line with extra

value proposition but Filipinos haven’t got some American Taste

buds. They want foods as that is cooked by their mothers at

home. They want special different tastes around the calendar.

Mc Donald’s doesn’t satisfy local taste in Philippines and

that’s why like other competitors of JFC, can’t capture the

market.

Besides, Mc Donald’s actually broaden the opportunity for

Jollibee. JFC benchmarked this American giant to have better

understanding in operating system management and operated more

efficiently.

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Conclusion:

Recipe for success

Jollibee’s rapid growth is due to its superior menu line-

up, creative marketing programs, and efficient manufacturing and

logistics facilities. It is made possible by well-trained teams

that work in a culture of integrity and humility, fun and

family-like.

As a corporate citizen, Jollibee is also committed to give

back to its host communities through meaningful and lasting

socio-civic projects.

A triumph for and of the Filipino

Jollibee dedicated its continuous success to the Filipinos

who have been there from the very start.

Jollibee is so well-loved every time a new store opens,

especially overseas; Filipinos always form long lines to the

store. It is more than home for them. It is a stronghold of

heritage and monument of Filipino victory.