Jollibee Singapore opened its first outlet in 2013 and has since become the top-earning international location. It faces various forces including government policies on employment and food safety, social trends toward health and collectibles, and advances in technology allowing card payments and delivery apps. Jollibee implements an 8Ps approach covering products and meals, pricing strategies, a single store location, promotions through digital media, quality control processes, employee interactions, and family-friendly restaurant design. Further suggestions include adding a playground, more mascot appearances, takeaway options, and automated ordering.
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A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
Executive Summary:
Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp.
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
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A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
Executive Summary:
Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp.
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This is a micromarket analysis of two of the largest convenience store chains in the Philippines - 7-11 and MINISTOP.
This was created by Group 4, ENTREP, S63, Ateneo Graduate School of Business.
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1. SINGAPORE POLYTECHNIC
SP BUSINESS SCHOOL
SERVICES MARKETING
BA 5120
SERVICE BUSINESS REPORT
of
JOLLIBEE SINGAPORE
by:
CATHERINE ANN PAN | P7183948
2. Company Background
• Jollibee Singapore outlet opened on
March 12, 2013 at Lucky Plaza Orchard.
• Opening led by Hotelier Jenny Chua
(founder of Beeworks) and Denny
Flores, Jollibee’s Vice-President for
International Operations
• founded by FORBES-ranked billionaire
Tony Tan on January 28, 1978
• became the Philippine fast food giant’s
number one outlet globally in terms of
sales
• One out of 92 international outlets and
4000 stores worldwide
3. Forces facing the business
Government Policies
• Ratio of foreigners and locals under a
company – company must adhere to fair
employment practices of giving equal
opportunities to both local and foreigners.
• Standards for clean and safe food
environment – business must be able to
obtain certification meeting food hygiene
standards.
• Halal Certification – business must ensure
they are halal certified as Singapore is
diversified with variety of races where
there’s a big fraction belonging to the
Muslim community.
4. Forces facing the business
Social Changes
• Consumers going “healthy” – in line with the changes,
businesses are trying to promote their food as “healthy” by
adding healthier menus.
• Avid toy collectible consumers – consumers are more than
willing to queue and spend just to get their hands on these
collectibles. McDonald’s is a good example of a food outlet
who provide these products along with a meal purchase.
• Consumers that are into spicy foods – most food outlets have
regular and spicy menus in order to serve different consumer
tastes.
Jollibee Singapore however has not applied all of these
three yet. It will be beneficial for the business if they do
since currently these are some of the major consumer
drivers when it comes to food.
5. Forces facing the business
Business Trends
• Customizable and affordable menu options – expensive cost
of goods made businesses adjust their menus and the prices
in order to meet the customer budget. Some customers find
set meals as expensive and so they opt for customizable
option if the price will be lesser.
• Support organizations – some businesses take part in charity
organizations where at times they’ll conduct promotions
where proceeds will go towards these foundations.
Jollibee Singapore has practiced these trends so far. Their
meals as per fast food standards is cheaper than its
competitors and affordable options are provided for ala
carte menus as well. They also support organizations,
mostly catering to kids and the poor.
6. Forces facing the business
Advances in IT
• Card payments (Nets, VISA, credit, debit, master cards, etc) – most
businesses in Singapore has implemented card payments. Jollibee
Singapore as of this writing only accepts payments by cash.
• Social Media tools– most businesses have social media accounts
other than their website to reach customers since people nowadays
are more into these tools. Jollibee Singapore has no advertisement
in the country and therefore uses these tools to create awareness
and promotions. Currently they have a Facebook, Twitter and
Instagram account.
• Delivery services on app/website – this is one of the trend being
practiced by most businesses. Jollibee Singapore can’t apply this
because currently they have no delivery service. Customers need to
go to the store premises to avail the food.
7. Forces facing the business
Internationalization
• Taste differences – because of trading policies in the country, some
ingredients may not be allowed to be imported. Certain
certifications (Halal) may limit the resources that can be used to the
food therefore altering the taste which at times is almost the same
or will have a big difference from the original food in the country of
origin.
• Opt-out dishes from menu – in line with the trade policy,
sometimes, the food itself is not allowed to be produced depending
in the country and therefore, fan base of such menu will be missing
out these dishes.
• Opportunity in working with diversified employees – international
outlets provided such opportunity especially in a country filled with
variety of races. Proven effective on certain types of customers who
prefers to be served with employees of the same race.
8. 8Ps implemented - Product
Core product
• Provide delicious American-style food with a Filipino
twist
• Happiness on every bite
• Value Meals for an affordable price
• Hygienic environment and safe food
11. 8Ps implemented
Augmented Product
• Party/Event Reservations
• Social media platforms for inquiries, feedbacks and
suggestions
• Mascot entertainment on reserved events
• customer service
12. 8Ps implemented
Price
• Psychological pricing
Example: Yum with Cheese for 2.20, add drinks for 4.60 Value Meal
• Optional - product pricing
Example: Add 0.50 cents to upgrade rice with Mashed Potato, French Fries or
Buttered Corn
• Project Bundle pricing
Example: Bucket Meal A (16 pcs. Chicken, 4 sides, 2 spaghetti, 4 medium
soda) for only $28.00 instead of:
13. 8Ps implemented
Place
• Zero - level distribution channel – describes the
channel between the fast-food chain and its
customers. Customers go directly to the outlet to
avail the product. Currently, there’s only one outlet in
Orchard, Singapore.
• Franchising – Jollibee Foods Corporation also offers
franchising packages to interested parties.
14. 8Ps implemented
Promotion
Jollibee Singapore’s promotional activities did not include any TV
or radio advertisements and only concentrated in reaching
consumers by:
• Advertising through electronic media (Internet, News Online,
YouTube, Social Media)
• Sales Promotion through social media
• Marketing Public Relations
• In-store print ad posters.
15. 8Ps implemented
Production and Quality
• Production
predict the number of orders that are expected to come
the next day and plan the amount of product supply they’ll be
receiving.
• Quality
adheres to all the standards and certifications required as
per strict food regulations affecting all channels in the food
industry from the manufacturer supplying the food items to the
food outlet itself.
20. 8Ps implemented
Suggestions
• Indoor playground
• Special mascot
appearances even
without event
reservation
• Take away corner
• Automated
ordering service