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.