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Marketing Strategy of Jollibee
Marketing Strategy of Jollibee - December 7th, 2010
Jollibee Foods Corporation (PSE: JFC) is the parent company of Jollibee a fast-food restaurant chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red Ribbon, and Manong Pepe's. Since its inception, Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in the Philippines and 57 in other countries employing 29,216 workers. Including all its brands, JFC has 1,804 stores worldwide and total sales of more than US$1 billion as of December 2008.
In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor in Cubao. Sometime in 1978, Caktiong and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to burgers, after his studies showed that a much larger market was waiting to be served. Lumba became Caktiong's first business and management mentor.
The Jollibee mascot was inspired by local and foreign children's books. Lumba created the product names "Yumburger" and "ChickenJoy". He had the company incorporated and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a long-term marketing strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong and Lumba went on an observation tour in the United States, attended food service and equipment conventions. Caktiong placed Lumba in charge of franchise development
Jollibee depends on high customer traffic and tight operations mangement. It offers great service to the high volumes of people who patronize its outlets by functioning as a well-oiled machine with close tabs on daily operations.
The Unique Selling Porposition of the Jollibee brand is :
1) Fast, Good, Clean, Cheap food
2) Caters to local needs( Spicy patty)
3) Consistency, reliability over all its outlets.
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.
Jollibee also projected itself as world class and not a local brand.
The service that is offered should be consistent over all Jollibee stores, however this might be a problem as the division has been slimmed recently and resources might be stretched too far.
In the case of Jollibee, it went from being an ice cream parlour to serving hamburgers made with a homestyle 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 Donalds and KFC who maintain the same menus worldwide with minimal changes.
Jollibee even incorporated recipes from employees to truly capture local tastes.
“ McDonalds entered the Philippine market in 1981 and many assumed the Big Mac would soon dominate the market. Surprisingly, McD’s ended up getting stung by the bee. Jollibee has secured a 65% market share and is out pacing McDonalds at its own game. Jollibee accomplished this by local adaptation of the menu and by positioning the food chain as a family restaurant.”
The location of outlets is of key importance to the marketing strategy of Jollibee. For Example, the outlet in Hong Kong is located at Central where a large number of Filipinos gather.
Local brands: Brands in local market are strong contenders and are not to be underestimated. Local managed brands like Jollibee in the Phillipines, 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.
“Jollibee attributes this success in part to its internal branding which focuses on "great taste and happiness" which includes "value for money, the happiest store experience, and the haven for kids.”
Beach head strategy:
New Markets like papua New Guinea and San Francisco which had an immigrant population can support the Beach head strategy which entails expansion in a market with little or no competition. Jollibee is an emerging market brand and can easily establish a beach head in foreign countries by targeting areas with a high immigrant population.
Competitors like Mc Donalds have more money and highly developed operation systems.
Mc Donalds doesn’t satisfy local taste in Phillipines. It has a plain patty which is part of its standard global menu.
Jollibee doesn’t have the big name to generate the high level of trust, and to choose franchisers in the partner countries
Go in for BLUE OCEAN strategy- expand in places where there is an unmet need, which isn’t being met by any of the existing vendors, hence there is little or no competition.
Last edited by bhautik.kawa; August 27th, 2015 at 10:16 PM..
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Re: Marketing Strategy of Jollibee
Re: Marketing Strategy of Jollibee - May 18th, 2015
These is the fusion of 4 P's of marketing used in marketing product,price,place promotion. these are very important information because i can use these as a reference and as a case study.
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