The Marketing Strategies of Jollibee Foods Corporation

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Cainta Catholic College

Cainta, Rizal

APPLIED RESEARCH 1 

“THE MARKETING STRATEGIES OF JOLLIBEE FOODS CORPORATION”

 FINAL DEFENSE

Submitted by:

Jesfer Tenorio

11-Abm-St. Pio de Pietrelcina

Submitted to:

Dr. Joel C. Javiniar

OBJECTIVES:

• To know and investigate the different marketing strategies of Jollibee Foods Corporation.
• To know how effective the company’s practices in terms of marketing.

CHAPTER 1

Introduction

In the business industry, marketing is one of the ways in establishing the company’s product to be more noticeable and saleable to the public. It is a form of communication for a seller or company to build a good image in terms of management and exchange relationship with its buyer or customers. Effective strategies in marketing are mostly the reasons why a company or corporation is successful.

Fast food chain restaurants are one of the firms that mostly in touch and easy to communicate to the citizens and public. They provide affordable yet mouth-watering foods and family-oriented products and services. Around the world, when we heard the words “fast food restaurants”, we tend to think of the famous McDonalds, the world’s largest quick-service fast food chain. But the case is, in the Philippines there is a company named Jollibee Foods Corporation (JFC) that is controlling four brands− Jollibee, Delifrance, Greenwich Pizza and Chowking that dominated the market.

One of the most successful and well-known establishments in the country is the Jollibee Foods Corporation. Over the years, it has become an increasingly profitable fast-food chain with thousands of restaurants in the Philippines and hundreds in other countries worldwide employing ten to hundred thousand workers all in all and its branches are keep on growing as the time goes by. They have offered a lot of products which are accepted by citizens, such as spaghetti, hamburger, sundae, fries and fried chicken. They always have product innovation and promote it nationwide through their various advertisement and promotions. They have their own techniques and strategies in changing their advertisement which persuades customers.

During the 1990s, JFC extended its sights overseas, placing several of the restaurants in different Asian and Middle Eastern country locations. By September 2004, the total number of stores worldwide in the JFC Group had grown to 1,128, of which 1,008 were located in the Philippines, and the balance in several other countries, led by the recently acquired Yonghe King chain in China. That year, Jollibee beat 31 other entrepreneurs from around the world to win the 2004 World Entrepreneur of the Year award, sponsored by Ernst and Young, one of the world’s top accounting firms. (Wirtz 2014)

Here in Taytay, Rizal the Jollibee has four branches. The first one is located in Taytay Uptown Rizal Avenue, the second one is in Tanchoco Avenue Manila East Road, the third one is in SM City Taytay and the last one is in the Kaytikling Dolores. In terms of promotions, in every season or month’s theme they distribute coupons and post billboard advertisement. In that way, people may recognize their product promotions and purchase it in much less cost and effort. Also, they are establishing good customer service so that the citizens may patronize their products and services.

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Fig.: A typical store branch of Jollibee.

Background of Study

In the Philippines the term fast food is pretty much synonymous with the Jollibee brand. It took more than just one man for it to because that way but all it took to start was a man name Tony Tan Caktiong. In 1975, Tony Tan Caktiong, a Filipino-Chinese, and his brothers opened two ice cream parlors in Manila’s commercial districts of Cubao and Quiapo named Magnolia Ice Cream. These ice cream parlors were an instant hit among food-loving Filipinos, who came to associate the stores with special occasions such as birthdays and holidays. In no time, the Tan brothers had decided to expand their menu and began offering other quick meals such as hot sandwiches, spaghetti and burgers. After its second year of operations, the Tan brothers noted that the store was actually earning more from the side orders, specifically their burgers, than from the ice cream. He looked around the world and saw the King of success chains like McDonalds were having interested of opening a franchise for an existing fast food chain like Burger King or Wendy’s, he decided to expand with the opening of his own chain of his of hamburger. Serving fast food restaurant named Jollibee in 1978 since McDonalds hadn’t yet entered into the Philippines; Tony capitalized on his fact by establishing his brand among the Filipino people.

The division of Jollibee really tries to serve the specific needs of the Pilipino people and its culture by focusing its product development as well as its marketing and advertising to target the unique and traditional. (http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/Jollibee%20Fast-Food.htm)

Following the taste and feel of the market, the Tan brothers decided to develop their own unique brand by coming up with a menu that would appeal to the Filipino palate. Jollibee was conceived as a fast-food outlet of high quality but reasonably-priced food products tailored especially for Filipinos, who were served by a jolly, “busy-as-a-bee” restaurant crew. Hence, the birth of the bright red and yellow “Jolly Bee” mascot, which had since become a favorite among Filipino children. In response to the growing popularity of their sweet homemade burgers — made from their mother’s secret recipe — and the other hot meals. By that time, the firm had seven outlets. When McDonald’s entered the Philippine market in 1981 and began opening stores in Manila, some industry observers questioned whether the little 11-store local chain could survive. However, Jollibee’s management team decided to see this as an opportunity that would allow them to benchmark the American giant’s operations and then 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. As Tony Tan gained a better understanding of McDonald’s business model, he recognized not only strengths but also specific areas of weakness in the latter’s strategy, reflecting its standardized product line and a US-dominated decision processes.