Marketing Planning JOLLIBEE Identify a
Assume you have been appointed as a marketing consultant for Jollibee. As part of the international expansion program, the management wants you to prepare a report to identify marketing opportunities. The report should cover the following information:
a) Identify three potential markets for expansion
Jollibee Foods Corporation (JFC) is banking on franchising and overseas expansion to continuously boost its earnings in the long run. The aggressive expansion program is in line with doubling the company’s earnings in 5 years, company officials said.
JFC board chairman Tony Tan Caktiong said the ideal business mix is 50-50 for franchising and company-owned expansion. JFC’s branches outside the Philippines are all company-owned, except those in the Middle East. In the Philippines, 45% of the stores are company-owned while 55% are franchised.
For its overseas expansion, CEO Ernesto Tanmantiong said the quick-service restaurant chain plans to expand its global footprint by putting up stores in Malaysia, Myanmar, Europe and Japan “after five years because we need to focus on China and the US.” JFC is also branching out in Canada next year while the company is still studying prospects in Indonesia, one of the fastest growing economies in Southeast Asia.
The potential markets for expansion are the following:
Three Options for Expansion
Papua New Guinea- Raising the Standard
New Entrant into 3 store fast food chain
Tingzon offered to put up all capital required
Hong Kong- Expanding the Base
3 Store already established, possibility of a 4th one.
High volume with Filipinos but not with residents (Chinese)
4th store location high traffic but few Filipinos
California-Supporting the Settlers
Success in Guam led them to believe US had potential
Food Appealed to Filipinos and Americans
Decided on Daly City-Large Filipino population
Plans to appeal to Asian Americans and then Hispanic Americans
b) General information about the potential markets (geographical location, capital,
a) Identify three potential markets for expansion
Jollibee Foods Corporation (JFC) is banking on franchising and overseas expansion to continuously boost its earnings in the long run. The aggressive expansion program is in line with doubling the company’s earnings in 5 years, company officials said.
JFC board chairman Tony Tan Caktiong said the ideal business mix is 50-50 for franchising and company-owned expansion. JFC’s branches outside the Philippines are all company-owned, except those in the Middle East. In the Philippines, 45% of the stores are company-owned while 55% are franchised.
For its overseas expansion, CEO Ernesto Tanmantiong said the quick-service restaurant chain plans to expand its global footprint by putting up stores in Malaysia, Myanmar, Europe and Japan “after five years because we need to focus on China and the US.” JFC is also branching out in Canada next year while the company is still studying prospects in Indonesia, one of the fastest growing economies in Southeast Asia.
The potential markets for expansion are the following:
Three Options for Expansion
Papua New Guinea- Raising the Standard
New Entrant into 3 store fast food chain
Tingzon offered to put up all capital required
Hong Kong- Expanding the Base
3 Store already established, possibility of a 4th one.
High volume with Filipinos but not with residents (Chinese)
4th store location high traffic but few Filipinos
California-Supporting the Settlers
Success in Guam led them to believe US had potential
Food Appealed to Filipinos and Americans
Decided on Daly City-Large Filipino population
Plans to appeal to Asian Americans and then Hispanic Americans
b) General information about the potential markets (geographical location, capital,
References: http://www.pinoyinvestor.com/smartinvestor/jollibee-banks-on-franchising-overseas-expansion-to-boost-long-term-earnings-04-aug-2014 http://en.wikipedia.org/wiki/Jollibee http://www.allfreepapers.com/print/Jollibee--Case-Study-Analysis/1794.html http://cdn.intechopen.com/pdfs-wm/12111.pdf http://business.inquirer.net/164038/jollibee-13-profit-up-24-5 http://nhobeelab.weebly.com/industry-analysis.html