Marketing of Services

Jollibee Food Corporation

Case Study
 Presented by,

Parth Upadhyay
Pravin Mehta
Nisha Dubey
Raju Bhutiya
Sanidhya Singh
JOLLIBEE FOODS CORPORATION
 Jollibees Introduction

In 1975 Tony Tan and his brothers opened two Ice cream parlours
in Manila, Philippines

In the same year they expanded their menu and began offering
quick meals

Soon they realized that their revenue is more from the side orders

In 1978, Jollibee Food Corporation(JFC) is formed

 JFC : Values-
Mission- Vision
Question-1 Evaluate Jollibee Food Corporations performance in the Philippines. What are
the secrets of its success in terms of marketing, operations, and human resource strategies?

Dominant position as the leading fast food chain in the

Phillipines
High quality and reasonably priced
Menu tailored specifically for Filipinos preferences
Strong understanding of Filipino psyche langhap-
sara (smells good so it must taste good)
Strong understanding of Filipino taste and
preferences-
Highly diverse variety of offerings; enlarged menu
Offerings for all walks of life in a single location.
FSC commitment
 Secrets of Success of JFC in Terms
of Marketing, Operations and HR

The acronym FSC represented its commitment

towards these three areas:

Every Food (F) item served to the public must

meet the companys excellent standards or it
will
not be served at all, Service (S) must be fast
and
courteous; and Cleanliness (C) from sidewalk to
kitchen, from uniforms to utensils, must be
maintained at all times.
 Marketing Strategy

Closer to Filipino families

Wide awareness as local service provider
viewed as Patriotic business
Unique Filipino taste
Comfortable and homely environment- use of
local language
In-store play activities for children and use of
cast and captivating characters like Hetti-girl
and Jollibee giants
Advertising strategy that was deeply rooted in
traditional values
 Human Resource Management

To maintain high standards it is required that

employees should be committed to FSC.
Training programs for the employees and
managers
Paid the highest compensation and benefits
package
Opportunities for qualified crew members to
pursue career path in management positions
Question-2 In what ways does JFCs strategy of adding new brands leverage or
dilute the strengths of the original Jollibee concept?

Actually more earning from side orders.

They decided to develop their own brand that would
appeal to the Filipinos.
Jollibee was conceived as a fast-food outlet of high
quality but reasonably-priced food products tailored
especially for Filipinos.
 Addition of New Brands

1989
First Philippine Food chain to cross
1 Billion Peso mark

JFC went to Public on Philippine

1993 Stock
Exchange

1994 Purchased Greenwich Pizza

 Addition of New Brands

Acquired right to operate

1995 Philippines
Franchise of Delifrance

Bought Chowking Foods

2000
Corporation

JFC topped the Asias Most

2004 Admired
Company survey
Question-3 What rational and emotional attributes do you
look for in a fast-food restaurant? Do these attributes fit
your favourite food establishment in your country?
Emotional
Rational Attributes
Attributes
Taste
Friendly
Ambience
atmosphere
Cleanliness
Family togetherness
Affordability
Hang outs
Faster service/Quick & Home
Mass Appeal
delivery
Reference
Accessibility
Better environment
Variety
for kids
Frequency of advertisements
Patriotic
and promotional offers
Language
Offering seasonal products
Question-4 Evaluate JFCs performance overseas. To what extent can the
company transfer its core competency in its overseas operations? Should it
modify its consumer-driven strategies to suit foreign markets, even if that
means Jollibee becomes much less Philippine in nature?
 Evaluate JFCs Performance
Overseas
Early 1990s- Jollibee restaurants were operating in Hong Kong, Spain and
Guam , Vietnam, Brunei , Indonesia, Dubai and Kuwait.
1998- entered one of the most demanding fast-food markets in the world, the
US (2 million Filipino immigrants).
In the US, by late 2004, six years after its entry into this market, JFC only had
seventeen store- 9 Jollibee and 8 Chowking.
Marketing effectiveness has been diluted in the very competitive California
environment by the need to promote there separate brands, each
representing a different ethnic food category: Fillipino, Chinese and Japanese.
Management time and resources have been franchised (renamed Tomis
Teriyaki), a food category in which JFC had no prior experience.
At the end of 2003, prior to the purchase of Yonghe King in 2004, JFC had
only 33 overseas stores, an increase of only 6 from the twenty-seven it had at
the end of 1999.
 Key Success
Factors
Quality Control Know- How (High quality and reasonably
priced)
Highly diverse variety of offerings; enlarged menu
Courteous, Personalized customer service
Clever Advertising
Convenient Locations
Strong understanding of Filipino psyche ,taste and
preferences
Offerings for all walks of life in a single location
FSC commitment
 Question-5

Should Jollibee continue its efforts to go international or

concentrate on expanding and consolidating its foothold
in the Philippines only? Why?
 SWOT Analysis
Strengths
Customer loyalty & strong image in local market.
Cost Advantage in local market.

Weakness
Tomis Teriyaki House did not grow according to expectations.

Opportunity
Online retailing.
International Expansion.

Threat
Intense Competition.
Change in tastes.
 Philippines market has already been captured, so they can keep
it up with their current approach and strategies towards
Philippines market but they should also expand overseas to
grow globally and to become A Truly World Class Business as
per the companys strategy.
On entering US market they focussed on immigrants but US
citizens also liked the offering, so there were chances of growth
that they can improve and grow further.
Tomis Teriyaki House did not grow according to expectations.
Yonghe King in China brand development is the priority.
Improvement in cost structure, sustain positive growth are the
major challenges to ensure the long term soundness of the
business.
 They should research and understand the overseas market
properly as they did in Philippines and operate overseas with
keeping in consideration the dynamic nature of the market.
By the early 1990s Jollibee restaurants were operating in Hong
Kong, Spain and Guam , Vietnam, Brunei , Indonesia, Dubai and
Kuwait.

Hence they should try to operate overseas and they should be

ready to adapt the overseas market as per requirement and at
the same time as weve said before that, they should also
continue to grow and expand in Philippines market as well with
their current strategies and approach.
 THANK
YOU