Jollibee Food
Corporation in the
Philippines
GROUP 1
I. INTRODUCTION
Jollibee has been most successful in the Filipino
market due to its customer and company base in
the country itself. Jollibee has developed its
presence in the daily lives of Filipino families.
Jollibee is a major figure of pride and success for
Filipinos everywhere because of the humble nature
that Jollibee’s success stemmed from.
“Currently, Jollibee has a total of 765 stores
in the Philippines, 39 in Vietnam, 13 in
Brunei, 27 in the United States, 8 in Jeddah,
three in Qatar and one each in Hong Kong,
Kuwait and Singapore” ( Samaniego, 2013).
Known for its focus on family, customers, and
quality of service
But in our country, we have lots of fast
food chains that most Filipinos visit. Two
of these fast food chains that are most
popular in the Philippines are Jollibee and
Mcdonalds and these two have
differences.
First, Mcdonalds has a mascot of a clown or a
human. Secondly, McDonalds’ scheme of color is
yellow. Also, it is affordable and is suitable for those
people who have enough budgets. It is founded by
an American and some of the tastes of McDonalds’
food are quite bland. However, in contrast with
Mcdonalds, Jollibee has prices that are expensive.
Jollibee was founded by a Filipino-Chinese and the
taste of its food or products are tastier than
Mcdonalds. So, those are the differences between
Mcdonalds and Jollibee.
II. HISTORY OF JOLLIBEE FOOD
CORPORATION IN THE PHILIPPINES
Jollibee, the barong-wearing Filipino icon, is only 41 years
young—hardly the oldest restaurant or franchise in the
country—which makes its raging, seemingly unstoppable
success all the more impressive. From an ice cream
parlor that sold another man’s ice cream to a global power
that saves ailing restaurant chains, the company is at the
peak of its game, and Jollibee's history is an inspiration to
all Filipinos.
The history of Jollibee is a classic rags-toriches tale of an ambitious family finding
success in greener pastures. His parents took
the whole family and emigrated from
Southeast China. They settled in Davao
where they opened a restaurant. Tan Caktiong
graduated with a chemical engineering degree
from the University of Santo Tomas.
A trip to an ice cream plant when he was 22 inspired
him to pursue a Magnolia Dairy Ice Cream franchise
and he opened two—one in Cubao and another in
Quiapo—using P350,000 of his family’s savings.
Ice cream wasn’t sustainable enough so Tan
Caktiong added hot savories to the menu. These
became so popular that by 1978, he ended his
franchise and converted his restaurants to the first
iteration of Jollibee.
Why is it called Jollibee?
What does a bee have to do with pineapple burgers
and spaghetti? The bee was chosen because it
connoted hard work, while its association with honey
evoked the sweet life. Jollibee’s first branding efforts
are attributed to marketing consultant Manuel
Lumba, who first met Tan Caktiong in 1978 when
Jollibee was still called “Jolibe” and the now prolific
CEO needed advice on where to steer the business
next.
In an interview with Entrepreneur, Lumba
said, “Watching the guests, I quickly
noticed that there were leftovers when it
came to certain products, but not with the
hamburger sandwich. [With that] I thought
the business had a potential winner.”
Lumba patterned the bee design after his six-yearold daughter’s comic books. “If Disney had a
mouse, why couldn’t I have a bee? Then I added a
chef’s hat to suggest quality food, a red dinner
jacket with a vest to boot, white gloves that
reminded me of Disney characters, and taking
inspiration from Tony Velasquez’s Nanong
Pandak comic book character, I exaggerated the
cheeks.” The crude design was polished by an
advertising company and Tan Caktiong invested
millions to secure the trademark.
 The name also needed work. From Jolibe, it
became Jollibee. An extra L and E were added to
make it more recognizable as “jolly bee.” Lumba
did much more than a facelift. He risked money
and face by purchasing ad space in a PBA
game—a gamble for a little-known hamburger
restaurant—which eventually introduced Jollibee
to a wider audience. He edited the restaurant’s
design and advised that pomp should every
branch opening.
The Jollibee effect
In 1978, after Jolibe became Jollibee and
stopped selling ice cream, the Yumburger
became its flagship product. The famous
spaghetti was introduced a year later, and
after that, the beloved fried chicken. By the
time a rival fast-food chain planted its roots in
the Philippines in 1981, Jollibee already had a
strong hold on the Filipino fast-food palate.
In the next decade, Jollibee continued to
dominate, launching its palabok, Champ
hamburger, Jolly Twirls, and in the ‘90s,
the Jolly Hotdog and Peach Mango Pie.
More mascots joined in, more menu items
were launched. By 1987, Jollibee was a global
brand with its first overseas outlet in Brunei.
From those few outlets in the late '70s,
Jollibee has opened branches all over the
world, from Papua New Guinea
to Milan, mascots have come and gone, TV
shows have been produced, prime ministers
have driven through.
Jollibee himself has toured the
Philippines and gotten a glow up,
becoming a Funko Pop (twice!), as well
as appearing on Glee and comic books
like The Avengers and The Flash.
Jollibee and his cheeky smile today have
become synonymous with a truly Filipino
success story that is now a source of
patriotic pride. It is estimated that the Jollibee
brand is now worth several billion
pesos." The Jollibee Food Corp. owns and
operates numerous restaurant franchises in
the Philippines, as well as overseas.
Locally, its portfolio includes Mang Inasal,
Chowking, Greenwich, Red Ribbon, Burge
King Philippines. Internationally, it has
Smashburgers as well as a stake in Panda
Express Philippines. Its acquisition of The
Coffee Bean & Tea Leaf is only another
unsurprising step in its world takeover.
III. SWOT Analysis of Jollibee in the
Philippines
The SWOT analysis examines the
strengths, weaknesses, opportunities
and threats facing a given entity.
Applying SWOT to Jollibee gives
insight into what the brand is facing
presently.
Strength
Brand Image
Their brand image and loyal customers are the top
strengths this firm possesses. Jollibee has been able
to channel and adapt to the Filipino community so
effortlessly, mainly because that is where Jollibee
Foods Corporation is based. Having firsthand
knowledge of the demographic being sought is
essential to achieving success in such a competitive
and ruthless industry.
A company values on family
Jollibee’s values on family, the customer, and quality
align itself with the values Filipinos hold dear. Filipinos
are deeply rooted in the family and hold the family and
community at the center of the social structure
(Kwintessential, 2014). The Filipino community is
collectivist. Collectivist values center on the group as a
whole, not individuals. “. In these societies, kinship ties
are much stronger and may take precedence over
expertise in matters of appointments and promotions.
Great tasting products and quality systems
Jollibee’s growth is due to its delicious menu lineup – like its superior-tasting Chickenjoy, mouthwatering Yumburger and Champ hamburger, and
deliciously satisfying Jollibee Spaghetti -ably
complemented with creative marketing programs,
and efficient manufacturing and logistics facilities. It
is made possible by well-trained teams that work in a
culture of integrity and humility, fun and family-like.
Weaknesses
The Filipino population
The major weaknesses surrounding Jollibee are also its
biggest strength—the Filipino population. Jollibee’s success
is due to the loyalty and commitment that the Filipino people
give towards its brand. As stated earlier in the report, the
Philippines ranked 16th and 18th for nationality and country of
origin in terms of demographics for the entire United
Kingdom. With this in mind, it is questionable as to whether
Jollibee could succeed in a segment where there is not
many Filipino consumers.
Jollibee does not have a base in Europe at all
Another weakness is that Jollibee does not have
a base in Europe at all. Jollibee has locations in the
Philippines, the United States, Saudi Arabia, etc…
but not a single location in Europe. “In total, Jollibee
has 97 stores outside of the Philippines, including
those in the United States.” (Torrijos, 2013). If
Jollibee is to consider entering the UK market, then
having insight into European cultures would be
imperative since they are a corporation consisting
solely of Filipino executives.
Competitors
Jollibee’s presence in the global sector of
fast food is not yet on part with that of
competitors, such as McDonalds or Yum!
Brand. “In 2012, the top four global players, all
based in the US (McDonalds', Yum! Brands,
Doctor's Associates, and Burger King)
accounted for approximately 23.5% of the
available market share.”
Opportunities
Grow Globally
Jollibee has many opportunities that would allow the
business to grow. The first opportunity Jollibee has is the
chance to expand globally. One of Jollibee’s goals is to become
a global brand (Jollibee Foods Corporation, 2008). With this
company wide goal in mind, the opportunity of expanding
internationally has never been more apparent and welcomed.
Jollibee’s international locations include: the United States,
Qatar, Saudi Arabia, Kuwait, Vietnam, Hong Kong, and Brunei
(Jollibee, 2014c).
Social Media Marketing or use of Technology
This informal means of communication gives
people a way of expressing their opinions and
experiences with companies. Social media affects
all levels of a business since the customers and
users are able to offer suggestions or concerns on
any issue they decide to post about online.
Socialnomics discusses the impact of social media
and its use in the business world.
Unique Product Offerings
Another opportunity that Jollibee has is offering
unique products compared to that of its competitors.
Jollibee’s products all possess a cultural flair adapted
to the tastes of the Filipino population. As stated in
Jollibee’s 2008 annual report, Jollibee is committed to
adapting to foreign tastes and preferences and sees it
as a part of growth (Jollibee Foods Corporation,
2008).
Treats
Competitors
A major threat being faced by Jollibee is the
bargaining power of consumers and the amount of
competitors that are in the fast food industry.
Consumers have many options at their disposal for
whatever need they may have. This is apparent in the
fast food industry that Jollibee is a part of. The top
chains are: McDonalds, Wetherspoon, Greggs, KFC,
Costa Coffee, Starbucks, Pizza Hut, Domino’s Pizza,
Subway, and Nandos.
Health Epidemics such as Obesity
Another threat to Jollibee is obesity. As stated
before, obesity is an issue being faced by
massive amounts of people everywhere. More
people are choosing unhealthy eating options
than ever before. The Daily Mail reported that
“More than half of all meals eaten out in Britain
are – for the first time – from fast food
restaurants” (Poulter, 2012).
IV. Conclusion
Jollibee is a very successful business that has
been experiencing major growth; however, they
have intense competition to be faced if they are to
become a major global competitor in the fast food
industry. After conducting the various analyses of
Jollibee and the fast food industry in general, I have
come to the conclusion that Jollibee should enter
the UK market, but not alone. Jollibee should enter
a joint venture with a business, such as Burger
King, that is on the decline and needs assistance
kick starting their sales again.
THE END