The Marketing Genius of Jollibee

30. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ PLACE STRATEGY: STRATEGY JOLLIBEE MCDONALDS BURGER KING PHILIPPINES 1130 600 23 INTERNATIONAL 270 38000 12300 STORE TYPES RESTAURANTS, KIOSKS RESTAURANTS, KIOSKS RESTAURANTS, KIOSKS LOCATION SELECTION Within major cities or municipalities with high foot traffic. Malls, buildings, near schools, palengke, hospitals Within major cities or municipalities with high foot traffic. Malls, buildings, near schools, palengke, hospitals Mostly in Metro Manila; hi-end areas

31. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ PROMO STRATEGY Jollibee: Focus on family and relationships as well as being Pinoy and lasang Pinoy - TV Commercials - Viral Videos (Kwentong Jollibee, JolliSerye) - Jollibee Studios - CSR

32. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ McDo: Focus on family and relationships as well as excellent customer service Burger King: Focus on product taste

33. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ COPING WITH THE COVID PANDEMIC

34. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ The Marketing Genius of Jollibee 1. The Winning USP 2. Very clearly focused on target market 3. Products that are “panlasang Pinoy” 4. Pricing for the working-class 5. Placement in 1130 sites 6. Promotions focused on family & relationships as well as the Filipino taste

35. http://www.linkedin.com/in/marialourdjeancarbajal https://www.linkedin.com/in/von-ryan-aranzanso/ https://www.linkedin.com/in/micktalattad/ https://www.linkedin.com/in/john-mark-carino/ The End Group 1: Aranzanso, Von Ryan Carbajal, Maria Lourdjean Carino, John Mark Talattad, Michael Leo

Editor's Notes

How can you forget that famous tagline?
Who does not know this bedimpled endorser and his favorite chicken?
How can you not be touched by those viral videos?
Three Men & a Babe productions presents
The marketing genius that is JOLLIBEE.
We start with a description of the fast food market or from hereon we will call QSR which stands for Quick Service Market. We will include also discussion of the major players. Then we center on Jolibee and its winning USP that consistently create, deliver and communicate to their primary target market. After that, we will present the specific strategies for product, place, price and promotions that support the USP and finally, the adjustments made during the pandemic.
According to the report published by Allied Market Research, the QSR market was estimated at P235 billion in 2019 and is expected to hit P395 billion by 2026, registering a Compounded Annual Growth Rate (CAGR) of 6.9% from 2019 to 2026. .
The rise in demand for convenience food, key promotional strategies of quick service restaurants, and implementation of effective pricing stratagems fuel the growth of the Philippine market. On the other hand, increase in health issues on fast food consumption ie it is unhealthy, it poses risk to cardiovascular disease, restrains the growth to some extent. However, rise in the number of millennial populations and surge in social media marketing are expected to create multiple opportunities in the near future.
The QSR market record millennials as their major customer segment as this category largely prefers convenient and quick food products, which led to boost the number of fast food outlets in the region constituting both domestic and international brands.
Nielsen Media Research has defined millennials as adults between the ages of 22 and 38 years old in 2019. CNN reports that studies often use 1981–1996 to define millennials, but sometimes 1980–2000. Millennials accounted ~1/3rd of the total population in Philippines i.e. ~106 million in the year 2019, which shows the large consumer group for quick service restaurants.
The Philippines quick service restaurant market is segmented on the basis of food type and nature. These major market segments are further categorized into various sub-segments. In this report, we will consider the burger and sandwich plus the chicken subsegments. In this market, Jollibee is the leader based on number of stores with 30%, followed by Mcdonalds at 14%. Similarly, Jollibee is the leader in the market based on revenue with 37%, followed by Mcdonalds at 20%. Other local players dominating the QSR market for the same subsegment includes Burger King, which is a far third.
The Philippines quick service restaurant market is segmented on the basis of food type and nature. These major market segments are further categorized into various sub-segments. In this report, we will consider the burger and sandwich plus the chicken subsegments. In this market, Jollibee is the leader based on number of stores with 30%, followed by Mcdonalds at 14%. Similarly, Jollibee is the leader in the market based on revenue with 37%, followed by Mcdonalds at 20%. Other local players dominating the QSR market for the same subsegment includes Burger King, which is a far third.
A quick history of the 3 key players in the fast food industry. We chose Burger King as the 3rd key player because of similar product lines – Burger/sandwich and chicken.
Jollibee was founded in 1975 by Tony Tan and his family as an Ice Cream Parlor with just 2 branches. In 1978 with then 7 branches, the Yumburger became its first flagship product. Several products were introduced in succession such as Jolly spaghetti in 1979, Chickenjoy and French fries in 1980. In under 10 years of operation, Jollibee entered the Top 1000 corporations and later the Top 500 in the country, assuming leadership in the Quick Service Restaurant market. So what’s the secret to its success?
McDonald’s is the biggest restaurant chain in the world and considered the pioneer of fast food concept – affordable and quick service. Its first store was in San Bernardino, California. Although McDonald's is best known for its hamburgers, cheeseburgers and french fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts. McDonald's Philippines, known locally as McDo, is the master franchise in the Philippines, held by the Golden Arches Development Corporation. With founder, Dr. George T. Yang, it entered the fast food market in 1981, 6 years after Jollibee, with the first store in Morayta. Today, there are over 600 restaurants all over the nation.
Burger King is an American chain of hamburger fast food restaurants, founded in 1953 as Insta-Burger King, in Jacksonville, Florida. Its menu has expanded from a basic offering of burgers, French fries, sodas, and milkshakes to a more diverse set of products. In 1957, the "Whopper" became the first major addition to the menu, and it has become Burger King's signature product since. The first Burger King store in Manila was opened at the UN Avenue back in 1998, more than 20 years after Jollibee. In October 2011, Jollibee Foods Corporation acquired a 54% stake in BK Titans, Inc., the franchisee of Burger King locally. Today, it has 23 restaurants in selected urban locations.
We now present to you the comparison of the USPs of the 3 players and the description of their target market.
Jollibee is true and remains true to its competitive advantage – offering the best tasting fast food, bringing the joy of eating to the Filipino family. In fact, that is the corporate mission statement. The brandname itself is also consistent to its USP. It is a play on the words jolly, connoting happiness and enjoyment plus bee, which is a hardworking animal much like the Filipino. The Filipino mark is everywhere in the brand. The menu is mostly Western food but made for the Filipino palette.
The USP. Jollibee is true and remains true to its competitive advantage – offering the best tasting fast food, bringing the joy of eating to the Filipino family. In fact, that is the corporate mission statement. The brandname itself is also consistent to its USP. It is a play on the words jolly, connoting happiness and enjoyment plus bee, which is a hardworking animal much like the Filipino. The Filipino mark is everywhere in the brand. The menu is mostly Western food but made for the Filipino palette.
Jollibee knows its target market very well: the traditional family and all communication materials focus on the importance of family values. Specifically, it addresses the young working class professionals, 20-35, if they are parents, they show their love to their children or parents or significant others, thru food, a very Filipino behavior. They were raised by parents who similarly treat them to Jollibee when they were kids. They seek fun and share that with loved ones on paydays, birthdays or any day of celebration.
By contrast, the toughest competitor, McDonalds, focused on convenience and customer service, very American values. In fact, it started the fast food trend worldwide with the insight “people don’t dine, they eat and run”. Their food taste and quality is consistent globally since their aim is to make every Filipino try and enjoy their world-famous food. To “glocalize” the brand, they add products to the menu to adjust to the native taste. The customers are more on the upper economic class not just because of the prices but because their product names are too sophisticated for the masses.
By contrast, the toughest competitor, McDonalds, focused on convenience and customer service, very American values. In fact, it started the fast food trend worldwide with the insight “people don’t dine, they eat and run”. Their food taste and quality is consistent globally since their aim is to make every Filipino try and enjoy their world-famous food. To “glocalize” the brand, they add products to the menu to adjust to the native taste. The customers are more on the upper economic class not just because of the prices but because their product names are too sophisticated for the masses.
Another Americal chain Burger King is the third biggest player but the franchise is also owned by Jollibee Foods Corporation. BK represents authentic American flavor and American customer service. The segmentation is that BK will cater to the premium category, a promising market due to the growing economy in the Philippines. The target are upper and middle class customers, mostly males, 18-35, who love great tasting, quick serving fast food.
Another American chain Burger King is the third biggest player but the franchise is also owned by Jollibee Foods Corporation. BK represents authentic American flavor and American customer service. The segmentation is that BK will cater to the premium category, a promising market due to the growing economy in the Philippines. The target are upper and middle class customers, mostly males, 18-35, who love American tasting, quick serving fast food.
The Jollibee Marketing Mix
Jollibee is a fast food restaurant with American-influenced food items, as well as casual Filipino fare. Jollibee food product’s unique edge over its competitors is its unique blend of flavors that appeal to the Filipino palate or “panlasang Pinoy” which is also gaining popularity among customers of its international stores. Jollibee’s food product line are: Yumburger (1978), Champ (1984) Jolly Spaghetti (originally Spaghetti Special, launched in 1979) Chickenjoy French Fries Palabok Fiesta (1982) Breakfast Joys (1985) Jolly Twirls softserve ice cream (1988) Jolly Hotdog (1990) Peach Mango Pie (1990) The Filipino taste is foremost in all its product. The Jolly Spaghetti, for example, is their sweet-style interpretation of spaghetti, which is being advertised as "the meatiest, cheesiest spaghetti". Chickenjoy, the hand-breaded fried chicken is praised for being crispy and juicy; it’s made with a secret marinade and served with a side of very tasty gravy.
McDonald’s product strategy employs Permanent Product Strategy and Temporary Product Strategy. The permanent products include their basic hamburger, cheeseburger, Bigmac, quarter pounder, fries, apple pie and Egg Mcmuffin to name a few. These products have the same American taste and can be found in all stores globally. This strategy ensures that there is always something familiar for consumers on the menu whenever they dine at McDo wherever in the world In addition to its permanent product offerings, McDonald's regularly develops temporary products to offer its customers. The McRib, Twister fries, Shake shake fries, and different McFlurry and McFloat flavors for example, are products that are offered only seasonally and ensures that customers visit more often. Local Product Development and Local Adaptation Strategies are also being employed by McDonald’s as it has created several products to meet consumer demand in the local markets. Here in the Philippines, customers have come to love menu items such as Chicken McDo, Burger McDo, McSpaghetti, and Crispy Chicken Fillet with rice. Burger King’s business focuses on burgers as its main product. BK burgers get that fabulous taste by grilling them in the broiler, That fatastic freshness that meat lovers desire and crave for – flame broiled. Moreover, it can be customized or mix and match the ingredients to the individual customers preference – add cheese, bacon or extra beef patties. This appeals largely to males, who crave for bigger servings.
Except for Chicken Joy, Jollibee prices are comparable to McDonald’s since they are fighting for the same market segment – the working-class, age 20-35 years old. Chicken Joy has become the banner product of Jollibee so they are capitalizing on this opportunity. Burger King is clearly more expensive and still consistent with their focus strategy.
Jollibee is the clear leader in number of restaurants which makes it the most accessible fast food chain. Even in the lowly palengke you can find a Jollibee store. McDonalds is a poor second but the impression is wherever a Jollibee stores is located, McDonalds is not far away. Burger King has a few selected stores, mostly located in Metro Manila and highly-urbanized cities.
As a Filipino owned company Jollibee capitalized on the culture of the Filipinos. The culture of being Family oriented. The bonds and relationships of a Filipino company builds trust and togetherness and that is what Jollibee wants to represent in its brand. Relationship building and strong family orientation are key success points of Jollibee. Jollibee is not just a “food franchise”, they simply want to represent the bridge that brings the family together through “SALO-SALO” which everything is meant to be shared not just with family and loved ones. Jollibee Studios is the first channel of its kind in the Philippine branded entertainment and aims to deliver quality content that is bound to make the viewers cry, laugh, fall in love, and more.
McDonald’s adverstising and promotions almost mirror Jollibee’s – focusing also on family. Mcdonald’s also highlights the store’s clean and safety standards particularly helpful during the pandemic. McDonalds also has its CSR program called Ronald McDonald’s House Charities Philippine Chapter to give back to communities like the “Happy Meal and Stripes Run” for the children in deprived areas and the “Kindness Kitchen” for displaced OFWs. Burger King promotions is always about the product – Bacon Cheeseburger, the impossible Whopper and more recently the Angry Whopper.
The only thing that is permanent in this world is change. The past year the pandemic brought upon challenges in everyone’s lives. The only way to cope up is to adapt. Jollibee was the first ones to take up the challenge. In the first quarter of the pandemic majority of the outlets closed down to adhere with the ECQ protocols what Jollibee did was to find a way to reach out and serve its customers without having an outlet to sell their products in. Jollibee tapped the groceries to sell READY-TO-COOK FOOD, Jollibee shifted its promotions to cook at home frozen goods. Jollibee also setup Cloud Kitchens to cater goods to be picked or delivered to certain locations.
In summary, we have discussed the Marketing Genius of Jollibee as follows: 1. They have a Winning USP: affordable, accessible family-oriented fast food for the Filipino taste2. They know their target market very well: working-class professionals, 20-35 yrs old, who love the Filipino taste and family celebrations3. Their products are “panlasang Pinoy”4. The ir Pricing are for the working-class5. They are present in 1130 sites making it the most accessible fast food store6. Their promotions are focused on family and relationships as well as the Filipino taste.

The Marketing Genius of Jollibee

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