JOLLIBEE FOODS CORPORATION:

INTERNATIONAL EXPANSION

CASE ANAYSIS BY:

DEEPTHI RAGHUNATH(24)
GIA DCUNHA(30)
GUNIN MATTACK(32)
GURVIR SINGH SANGHA(33)
HARI KUMAR M.P.(34)
Marketing:

Jollibee depends on high customer traffic and tight operations mangement. It offers
great service to the high volumes of people who patronize its outlets by functioning as
a well-oiled machine with close tabs on daily operations.

Jollibee focus:

USP:
The Unique Selling Porposition of the Jollibee brand is :
1) Fast, Good, Clean, Cheap food
2) Caters to local needs( Spicy patty)
3) Consistency, reliability over all its outlets.

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.
Jollibee also projected itself as world class and not a local brand.
The service that is offered should be consistent over all Jollibee stores, however this
might be a problem as the division has been slimmed recently and resources might be
stretched too far.

Product:

In the case of Jollibee, it went from being an ice cream parlour to serving hamburgers
made with a homestyle 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 Donalds and KFC who maintain the same menus
worldwide with minimal changes.
Jollibee even incorporated recipes from employees to truly capture local tastes.
“ McDonalds entered the Philippine market in 1981 and many assumed the Big
Mac would soon dominate the market. Surprisingly, McD’s ended up getting stung
by the bee. Jollibee has secured a 65% market share and is out pacing McDonalds
at its own game. Jollibee accomplished this by local adaptation of the menu and by
positioning the food chain as a family restaurant.”

Source: Branding Insights from the Zyman Institute of Brand Science

Place:

The location of outlets is of key importance to the marketing strategy of Jollibee. For
Example, the outlet in Hong Kong is located at Central where a large number of
Filipinos gather.

Promotion:

Local brands: Brands in local market are strong contenders and are not to be
underestimated. Local managed brands like Jollibee in the Phillipines, 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.

Source: http://elearning.utcc.ac.th

“Jollibee attributes this success in part to its internal branding which focuses on
"great taste and happiness" which includes "value for money, the happiest store
experience, and the haven for kids.”

Source: Branding Insights from the Zyman Institute of Brand Science

Beach head strategy:

New Markets like papua New Guinea and San Francisco which had an immigrant
population can support the Beach head strategy which entails expansion in a market
with little or no competition. Jollibee is an emerging market brand and can easily
establish a beach head in foreign countries by targeting areas with a high immigrant
population.

Competition

Competitors like Mc Donalds have more money and highly developed operation
systems.
Mc Donalds doesn’t satisfy local taste in Phillipines. It has a plain patty which is part
of its standard global menu.

Jollibee doesn’t have the big name to generate the high level of trust, and to choose
franchisers in the partner countries
Go in for BLUE OCEAN strategy- expand in places where there is an unmet need,
which isn’t being met by any of the existing vendors, hence there is little or no
competition.
EXPANSION STRATEGY:
Source: http://elearning.utcc.ac.th
Jollibee’s key
success factors
(KSF)
Niche Market
Highly localized menu.
Food variety that
targets the Filipino
palate.
Operations and IT
State-of-the-art
automation of
commissary.
Use of IT to speed up
operations efficiency
and study consumer
trends.
Customer Service
Fantastic customer
service:
- Service orientation
pervasive in many
of its activities.
- Recruitment,
Transferability to Actions required to
overseas markets allow a successful
transfer of
KSF
Likely. - Introduce the more
popular Jollibee meals
- Overseas markets that are
that are chosen are found in the
locations Philippines.
with high - Slowly bring in the
concentrations of other varieties.
Filipinos. - Ingredients used must
be identical to those
used in
the Philippines to
ensure consistent
quality and
taste.
- Use a marketing
strategy that leverages
on
Jollibee’s brand equity.
Likely. - Use the blueprint
of the commissary in
- Replicate the same the
kind of technology Philippines.
and - High initial
operating efficiency. investment to bring
in state-of-the-
art automation that
will help generate
the
volume and
efficiency required
by the overseas
branch.
Likely. - Jollibee should seek to
understand the
- The mission expectations of local
statement and strong customers and adapt
management its
beliefs in recognizing performance
the importance of its standards, and so on
selection, and training front line staff in profit accordingly.
(cycle for success) of generation. - Jollibee should bring
staff. in the best crew from
- Empowerment and its
motivation of staff. Philippines’s branches
to train the local hires
in
Jollibee technology.
- Important that Jollibee
has a management
team in
the overseas market
that shares the same
zeal and
ideals as those in the
Philippines
headquarters.

Location Moderate - Jollibee should

Good, high traffic and continue to expand to
convenient locations. - Jollibee may be a late areas with
comer in the fast-food high Filipino
Communities are industry of the concentration and gain
populated largely with overseas market. a foothold in
Filipinos. - Launch pad strategy such areas first.
of setting up outlets in
places with high
Filipino concentration
may
help offset the late
comer disadvantage.

By benchmarking McDonald’s operations and developing an

understanding of its business model, Jollibee
executives were able to bring their own chain up to world-class
standards. In particular, they focused on
learning about the sophisticated operating systems that enabled
McDonald’s to control its quality, costs,
and service at the store level—an area of weakness in the local firm
that had constrained further
expansion. Subsequently, through use of IT in its operations and
state-of-the-art automation in its

commissary, Jollibee has been able to drastically reduce production

time and ensure quality consistency
and the highest standard of cleanliness in its food products.

Human Resource Management

High standards of service. Jollibee ensures that it provides top-

notch services in all its outlets. Jollibee’s
success can also be attributed to its organizational culture. Through
stringent recruitment and selection
procedures, Jollibee ensures a service-oriented staff to man its
outlets. Willing to pay above-average
compensation, Jollibee ensures loyalty among its staff members and
this translates into better service
performance and dedication toward serving the customers. Training
programs equip its staff with the
necessary skills needed to better perform their tasks. By hiring
professionals to devise strategies for its
store operations, Jollibee is able to create a professionalism and
service excellence.