History of Jollibee Free Essay Example

In 1975 Tony Tan and his family opened a Magnolia Ice Cream parlor in Cubao – History of Jollibee

Sometime in 1978, Tony Tan and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to hotdogs, after his studies showed that a much larger market was waiting to be served. Lumba became Tan’s last business and management mentor. The Jollibee mascot was inspired by local and foreign children’s books. Lumba created the product names “Jollibee” 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. Tan 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, Tan and Lumba went on an observation tour in the United States, attending food service and equipment conventions.

Tan placed Lumba in charge of franchise development. Marketing Strategy: The marketing strategy of Jollibee Food Corporation is attraction and highly commercialized using various media including TV, Radio, Newsprint and more, they must have spend millions of their budget to stay on top of the mind of their customers especially among the Filipino. Jollibee focus: USP:

The Unique Selling Proposition 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.

Positioning: 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.

Product: 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. ” Place: 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.

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 are as with a high immigrant population. Competition 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. How Jollibee deals with his competitors: MANILA, Philippines – With over 2,000 branches around the country, there is bound to be a Jollibee anywhere you go in the Philippines. Jollibee’s continued success in the Philippines and the company’s aggressive expansion overseas is making international headlines.

Jollibee’s Filipino-Chinese founder Tony Tan Caktiong is now on the cover of Forbes Asia’s February issue. Tan talked to Forbes Asia about how he started his business with an ice cream parlor and how his restaurant with a bumble bee mascot managed to beat American fast food giant McDonald’s in the Philippines. After opening the ice cream parlors in 1978, Tan said he decided to shift from ice cream to hamburgers when he saw customers wanted sandwiches. However, the entry of McDonald’s in the Philippines in 1981 was a cause of concern for the fledgling fast-food chain.

Tan recalled how they went to the US to study McDonald’s operations and studied how Jollibee compared to the American fast food chain. “We found that they excelled over us in all aspects – except product taste… It suited Americans but not really Filipinos. Our (food) tends to be sweeter, more spices, more salty. We were lucky as it was not easy for them to change their product because of their global image,” Tan told Forbes Asia. Jollibee worked hard to compete with McDonald’s, from advertising to stores to service. And their hard work paid off. We were surprised customers ranked us higher in courtesy and service style. Maybe they felt we were warmer? And then they liked our marketing, promotion, and advertising better. And then customers kept just coming back,” he said. One advantage Jollibee had was offering hamburgers and other fast-food with a distinct Filipino flavor. For instance, Jolly Spaghetti has a sweet meat sauce with hotdog slices. Eventually, McDonald’s took the cue from Jollibee and offered McSpaghetti and other similar products aimed at the Filipino market.

Forbes Asia said Jollibee now controls 18% of the market in Metro Manila, handily beating McDonald’s which is said to only have 10% share of the market. Jollibee now operates the country’s largest food service, with a total of 2,040 stores as of end-September. The firm’s stores include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King. For its foreign operations, the company has 541 stores as of end-September. Aside from the Jollibee foodchain, stores abroad include Yonghe King, Hong Zhuang Yuan, San Pin Wang, Red Ribbon, Chowking, and Chow Fun.

But what is the secret to Jollibee’s phenomenal success? “We keep things simple and fill a simple need: very tasty food at a reasonable price. To this day I repeat to my people what my father told me – you have to make sure your food tastes really good,” Tan said. Marketing Design What is Research Design? 1. According to David J Luck and Ronald S Rubin, “A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of planning.

1. According to David J Luck and Ronald S Rubin, “A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of planning.
If the design adheres to the research objective, it will ensure that the client’s needs will be served.

2. According to Green and Tull, “ A research design is the specification of methods and procedures for acquiring the information needed. It is the over-all operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures.

Step in planning the Research design
1. Determining work involved in the project.
2. Estimating costs involved
3. Preparing time schedule
4. Verifying results Marketing design of Jollibee: Marketing Promotion Promotion: Local brands: Brands in local market are strong contenders and are not to be underestimated.

Local managed brands like Jollibee in the Philippines, 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 stockholders. “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 ”