Company BackgroundJollibee is one of leading food company in the Philippines and is ranked among one of the Asia’s top food company.
It has a largest market of fast food in its home country and it has four different concepts of fast foods under different brand identities but controlled by Jollibee Stores. Having a wide market all over Asia, the growth of Jollibee is not large enough and mostly its growth in China is due to their purchase of Yonghe King Chain.Whenever we discuss about fast food restaurants, the first name which comes in our mind is of McDonalds which has the world’s largest chain of fast food restaurant. But, this is not the case in the Philippines where Jollibee has been the name for fast food for more than two decades. Jollibee doesn’t have a popular global name but in its home town it has four popular brands named- Jollibee, Delifrance, Greenwich Pizza and Chowking.In 1990’s JFC wanted to expand internationally by opening some of their stores in Asia and Middle East.
The company’s chairman and CEO Tony Tan Caktiong wanted JFC to grow internationally and also improving its quality and growth in their domestic country and having goals of profitability, growth, capturing a large international market share and help developing their home country. In June 2005, JFC had a total increase in their stores all over the world.It had 1200 stores out of which 1079 were in their home country and a large number in China because of Yonghe King Chain in China. Jollibee has done a great job by winning the 2004 World Entrepreneur of the year award and also beating 31 other entrepreneurs.
Capturing Filipino Taste Buds In Philippines people love to eat and eat five times daily and some snacks between them. They love to sit and chat with friends while they are eating. Therefore, it has become a global market for Mcdonalds, Burger King, and KFC, Wendy’s and Pizza Hut.With all these competitors all around them JFC has managed to be the leading fast food chain in the Philippines by tailoring their menus according to the people’s taste over there. JFC understanding of Filipino psyche was so well that it brought to everyone’s lip the promise of langhap-sara which means the food smells good, so the food will also be good.
With their meals, they offered rice or spaghetti. Their moist burger patties and spicy sauces were so Filipino and their burgers were often compared to what a Filipino mother would cook at home.This strong understanding of the Filipinos taste and preferences set Jollibee distinct from all other competitors. With an increase in competition Jollibee has broadened its food varieties but their all time favorite menus are still there like chicken joy, spaghetti, jolly hotdog, French fries, and their famous yum burgers. Their enlarged menu included more rice based products such as honey beef rice and Shanghai rolls, variety of burger choices from mushroom to garlic and cheese and many new flavors of their ice creams.
Never before in Philippines has a single location of fast food chain offered so much in variety. Addition Of New brands Jollibee became the first Philippines fast food company to cross one billion peso sales in 1989. JFC went public on Philippine stock exchange to widen its capital base and for expanding its franchises locally and internationally in 1993. Jollibee brand achieved market dominance; the firm was also pursuing a strategy of diversification as a hedge against both competition and downturns in specific market.
JFC was studying the portfolio of their competitors of fast foods and therefore it applied its marketing skills and operations differently from all others. JFC in 1994 purchased Greenwich Pizza which was Philippines famous and leading pizza and pasta chain. Next year JFC bought a franchise of Delifrance a French bakery which has its headquarters in France due to changes in the taste of the Filipinos. In 2000, JFC bought Chowking Foods Corporation which was Philippine’s top chain of Chinese fast food.
