Jollibee Foods Corporation engages in the development, operation and franchising of Quick Service Restaurants (QSR). Other activities of the Group include the lease of real estate properties.
The franchising segment is involved in the franchising of the Group’s QSR store concepts. The real estate segment leases store sites mainly to the Group’s independent franchisees.
Jollibee is a phenomenal success story of a business. It began as a two-branch ice-cream parlour in 1975 offering hot meals and sandwiches and became incorporated in 1978 and signify the birth of the revolutionised fast- food in the Philippines and it was the first fast food chain to break the 1 billion pesos sales mark in 1989 as well as the first food service company to be listed in the Philippine Stock Exchange in 1993.
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When it comes to Filipinos, there will only be one kind of fast food restaurant that Filipinos cannot and will not trade for, and that is the Jollibee Philippine. The company provides the most mouth-watering fast-food foods. Jollibee did not start on selling hamburgers or chickens but was first started as an ice cream parlour at Cubao in 1975 by Tony Tan Caktiong with “Jolibe” as the original name selling ice-cream rather than burgers. The two original products of the company were named as “Yumburger” and “Chickenjoy”.
Jollibee’s phenomenal growth owes much to its strict and committed adherence to high standards and organisational objectives as symbolized by “F.S.C.”:
Food- everything served to the public must meet the company’s excellence standards or it will not be served at all.
Service- must be fast and courteous
Cleanliness- from kitchen to utensils must always be maintained.
Jollibee dedicated its continuous success to the Filipinos who have been there from the very start. Jollibee is so well-loved every time a new store opens, especially overseas. It is a stronghold of heritage and monument of Filipino victory.
The company has an American-style fast-food chain with Filipino-influenced dishes specialising in burgers, spaghetti, chicken and some local Filipino dishes. In the Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets, the chain serves Pepsi products. It’s kind of a Filipino version of McDonald’s. It may be a little different for Americans or Europeans who are use to the McDonald’s hamburger meal. The beef tastes a lot different at Jollibee.
Jollibee Foods Corporation is not a household name when it comes to the global market. But in the Philippines, it’s the king of the burger market. One industry analyst said “if McDonald’s is the Goliath of fast food, Jollibee is its Filipino David.” Although Jollibee is much smaller than other fast-food companies in global terms, Jollibee concentrates most of its limited resources within the Philippines. But its primary advantage comes from simply doing a better job of giving Filipino consumers what they want.
To be in the position in the market JFC undertake several marketing activities to hold their market share. It will be shown on the following figures.
Figure 1: JFC’s Traditional Media
Table 1: JFC’s Traditional Media
JFC is engaging with the newspapers or magazines which are common practice but still the company reach different market segments which could be very beneficial for JFC.
For a very convenient way to hand out to the JFC’s market, the company is using brochures and flyers with their marketing message, company image, specific product features and benefits.
Even in 1980, JFC launched their 1st television commercial and until now they are using the power of television in reaching their market.
To capture their current and potential market, JFC is using the radio broadcast using commercial jingles of the company, performed by famous singers in the country.
Out of Home
Billboard is one of the tools being used by the JFC in their marketing because economically speaking it is more affordable for the company working for them twenty-four hours a day, seven days a week unlike other ads. Usually famous celebrities are contracted to be the endorser of their company to gain and retain a high market share.
Another strategy of JFC in reaching the market is by using the transit media. Advertisement using vehicles (e.g. buses, Pinoy jeepneys, taxi, and rail transits) is a very effective way of the company to reach all the segments of their market.
* JFC has an official website (www.jollibee.com.ph) which is an excellent opportunity for them to notify the market what their business is all about. The website can help them in offline marketing. it helps people find you. Anyone around the world can see what you have to offer. This enables JFC to reach a multitude of potential customers. This is also helpful for the overseas market who is interested in the company’s product.
CURRENT ENVIRONMENT AND OPERATIONS
JFC undergo the environment scanning in gathering, analyzing, and dispensing information for their tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering. Below is their current environment:
Figure 1: JFC’s Current Environment
Table 2: JFC’s Current Environment
Staff- JFC recognizes their staffs and employees modern and comprehensive training programs are given to them. Managers are regularly updated on the latest store operations systems, people-oriented management skills, among others. Service crews are trained on various store stations and food-service innovations. The company also offers career opportunities for qualified and exceptional crew members to further their food-service careers as managers.
Finances- According to wrightreports.ecnext.com, year over year, Jollibee Foods Corp. has been able to grow revenues from $43.9B to $48.0B. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 84.02% to 82.14%.
Facilities/Materials- To have a high quality products, JFC has their own Commissary System, ensuring the manufacture and distribution of safe and high- quality food in the most cost-efficient manner. The company can provide their own supplies for their entire operations having the three big commissaries in the entire Philippines.
System- JFC turned to NetSuite. NetSuite OneWorld gives the company a fast and cost-effective way to automate reporting, perform real-time analytics, conduct audit trail analysis, operate an international supply chain, consolidate international financials, and enforce corporate governance standards.
Wages- another way to recognize the staffs and employees of JDC, they provide the highest compensation and benefits packages in the fast-food industry in the country.
Clients- at the present the main target market of Jollibee is the children. Jollibee lures kids with in-store play activities and a cast of captivating characters. In broader area JFC has captured more than 65% share of the hamburger market in the Philippines. This is more than half of the fast-food market as a whole. Their secret is Smart Niching concentrates on serving the unique tastes of Filipino market.
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Competitors- JFC is the leading operator of quick-service restaurants in the Philippines but McDonald’s is undoubtedly the undisputed market leader in the world in terms of market share in the same industry. In the Philippine setting though, a local food chain known as Jollibee has taken over the reign of McDonald’s. The reason is the taste of Jollibee’s product lines played a pivotal role in its successful battle for market supremacy over McDonald’s which has a westernized taste. Marketing practitioners stated that Jollibee was successful in formulating its products to suit the particular taste of the Filipino consumer.
Media- JFC has an excellent relationship with the media industry in the Philippines. Because of this the company already ensure fair coverage in terms of any controversy arise involving their organization. Media relations for JFC increased their credibility and allow a message to spread much faster than advertising alone. Evidence of the benefits of media is that the media helped JFC during 1980 to launch its 1st TV commercial and from 1983 up to the present the media supports the Langhap-Sarap TV ad campaign for its market.
Distributors- With over 1,800 restaurants worldwide and almost 200 new stores opening each year, Jollibee has enjoyed dramatic growth since its humble beginnings. Each store offers the same products and services. Having standardised recipe and materials from their own commissaries JFC ensures high quality products for each distributor send off to their customers.
Economic- Philippines is the 4th largest economy in South East Asia the 36th largest economy in the world by purchasing power according to the International Monetary Fund in 2009. JFC ensures that their product line up has an affordable pricing pattern for their market. The company should be price sensitive that they are serving budget friendly meals to their customers. In this strategy they will capture their market not just because of the product’s distinct taste of but also by their pricing pattern.
Environmental and Legal- JFC is one of the companies in the Philippines who support the legislations of the government regarding environmental issues. One shift done by the company was by reducing the usage of harmful materials such as styrofoam and plastics and started to used environment friendly materials. Such supplies are quite expensive but the company should still cooperate to support the legislation.
Demographic- with an estimated population of 92million as of 2009, JFC engaged with the business with a market share of 50% according to the company’s website. Kids are the target market of JFC. Statements stated that if you will have 1 kid as a target market expect to have 1-3 adult accompanying the child. In this matter there will be a domino effect regarding the turnover of the customers. Filipinos are happy people. They love to dine-in with their favourite restaurants with or without occasions. This factor should be considered as advantage for JFC.
Cultural- Every country has its own food preferences; JFC may not meet the taste of each country’s local but as a Filipino owned company, it captures the taste of the locals and even the other nationalities that is there no doubt that Jollibee is apart of Filipino cultural pride. To avoid culture and religion conflict, one of the strategies made by JFC is through its ingredients for its enormous recipe line up. The company should avoid having conflict with Islam religion because the big percentage of Philippine population embraced such religion that’s why they should use Halal approved ingredients and materials
Technological- Technology played a key role in the growth of JFC. The company embraced the importance of keeping up with changes in business computing and technology. Technology investment is very essential to the company because of the competition arising within the industry. The company should continue to endow for the right technology toad for their productivity and efficiency of the day to day operations and can help them take on more clients.
SWOT ANALYSIS (Strength, Weaknesses, Opportunities, and Threats)
Figure 3 JFC SWOT ANALYSIS
JFC is well-known in the Philippines because of its well committed and confident management. Because of this the company at the present is well established in the Philippines and it is safe to say that around 90% of Filipinos are acquainted with Jollibee. This goes as well to those Filipino migrants across Asia. Thus, if establish in countries where there are Filipinos, there is no doubt that they will utilize what Jollibee has to offer. But JFC will experience difficulty in positioning their brand in foreign areas like Asia, because the company’s reputation is not yet well-established in all Asian Countries.
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