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Jollibee Foods Corporation

Nazmus Sakib
This document aims to analyze Jollibee Foods Corporation to have a good understanding on Marketing Strategy. I ll discuss about JFC s undertaken Marketing Policies on Target Market , Marke Positioning , Marketing Mix and also analyze its competitors to have a broader view. So, let s listen to a successful Marketing Story.

North South University

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Prepared For Mr. Bashir Hussain,

Prepared By

Nazmus Sakib
ID: 091-0866-030

Senior Lecturer School of Business North South University

MKT202

Table of Contexts

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Content

Page

Jollibee: Getting Inside

Target Market

Market Positioning

Marketing Mix

Focusing on Competitors

11

Conclusion

12

Jollibee Foods Corporation

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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 Company in the Philippines over the last 6 years. The Most Admired

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
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that they try to still seem a they re the nation s of all most these

local favorite

despite the fact that I d say has it s a

prevalent things and

restaurant? more.

combination

Jollibee

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.

Target Market:

Jollibee
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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 Segmentation. Jollibee also tries to capture some occasions like birth day party. They serve this segment very nicely. JFC expanding tends their to serve every possible segment. Thus to they go are can also be considered as Family Life Cycle

business

overseas

aggressively

beyond

Geographical barriers.

Positioning:

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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 needs. competitors with

tailored food menu to meet the local peoples

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.

Marketing Mix:

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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

courteous; and Cleanliness (C), from kitchen to utensils, must always be maintained.

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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 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. JFC , now can get

Promotion:
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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.

Competitors:
Competitors like Mc Donald s have more money and highly developed operation systems that enable it to control its quality, costs, and
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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, Jollibee. JFC Mc Donald s actually this broaden the opportunity to have operated for

benchmarked in operating

American

giant

better more

understanding efficiently.

system

management

and

Conclusion:

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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.

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