Jollibee Case Study Marketing

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Tony Tan Caktiong and his brothers put up a two-branch ice cream parlour in Manila’s commercial districts of Cubao and Quiapo during 1975. It got expanded as they include hot sandwiches, burgers, and other meals. Their business was successful though it eventually outsold the ice cream product. In January 28, 1978, Tom Tan and his brothers formed the Jollibee Foods Corporation (JFC). As they made a fast-food outlet, they decided to develop an own brand including a mascot, a menu that would look appealing to the Filipino palate and they brought the promise of “Langhap Sarap” or smells good so it must be good. Jollibee is the largest fast-food chain in the Philippines and they maintained to manage its dominant position. It was also called to be the “King of the Burger Market”. They have 25 international stores in other countries and achieved system-wide retail sales of up to P19.8B (US$390M). It ranks of the 100 Filipino corporations in 1981 and able to compete head-on with the global players (e.g. McDonald’s, Burger King, and Carl’s Jr.). During 1989, Jollibee became the first Filipino fast food chain that broke the 1B peso sales mark. They acquire a portfolio of other fast-food concept (Greenwich Pizza and Chowking) and brought here in the Philippines a foreign brand (Delifrance bakery products). They gained success in overseas operations and they continue to grow more. They also continued to deliver same-store sales growth in year 2000. Jollibee was featured in several magazines such as Forbes, Far Eastern Economic Review and Asian Business. They ranked Jollibee to be among top Asian companies. In Euromoney, they was recognized as the Number One Food Company in Asia and Best Managed Company in the Philippines by Asiamoney. The company’s success is attributable to its constant drive to provide quality, consistently reinventing the menu and making each visit a memorable one for friends, Filipino families, and loved ones. They provide high quality food, giving a fast and comfortable service, and friendly crews. They have understood the importance of catering local taste preference. Filipino families especially OFWs abroad are their major customers because they feel a sense of community, a symbol of togetherness, and good times when eating at Jollibee. Challenges and Case:

Can Jollibee exert most of their effort not only here in the Philippines but also outside the country? •Can they compete with their global competitors?
How will they advertise and promote the Jollibee’s taste of hometown food overseas? •Will it be appealing to the foreign people or only for the Filipinos? •Can they develop a product that has both Filipino and International preference? •Can they still get high sales without reaching communities with a large Filipino population? IFE Matrix

StrengthsWeightRatingFirm’s Score
No. 1 leading and largest fast food chain in the Philippines 0.06
4
0.24
King of Burger0.0430.12
Better in QSR (quick-service restaurant)0.0540.20
Caters to the mass0.0640.24
Best manage company in Asia (by Euromoney)
0.06
4
0.24
Strong market0.0540.20
Keen understanding of Filipino taste0.0540.20
Often reaches of quota sales0.0540.20
Regular product development0.0330.09
Competitive0.0640.24
Variety of foods0.0630.18
Horizontal integration (buying of competitors - e.g. Mang Inasal) 0.05
4
0.20
Financial Capability0.0640.24

WeaknessWeightRatingFirm’s Score
Inconsistent quality of service (employees, facilities, etc.) 0.05
2
0.10
Unstandardized quality of foods0.0610.06
Availability of some foods are seasonal0.0320.06
Lack of research and development for global expansion
0.04
1
0.04
False marketing0.0510.05
Market segmentation0.0420.08
Poor sanitation0.0510.05
13.03

EFE Matrix
OpportunitiesWeightRatingFirm’s Score
Better in providing total customer satisfaction
0.04
3
0.12
Successful...
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