Jollibee Foods Corporation

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Prepared For Prepared By

Mr. Bashir Hussain, Nazmus Sakib

Senior Lecturer ID: 091-0866-030
School of Business MKT202
North South University
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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.": 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
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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.

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.
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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.