Foods Corporation free essay sample

In this section  we have laid  emphasis on  the inception of Jollibee Foods Corporation, their expansion in various countries like Singapore, Honk Kong, Brunei, Taiwan, Indonesia, and California etc. Further we have discussed the Strengths, Weaknesses, Opportunities and Threats to Jollibee in the fast food industry. We have dealt with different problems like the management issues, the market issues, business expertise, financial resources, inventory management etc. This would help in better understanding of Jollibee’s present condition and future sustainability in the modern and fast changing business world. After the SWOT analysis we identified certain issues with Jollibee which concerned the Management, business, expansion etc. There  were issues like improper  utilization of financial resources, lack of promotional campaigns, communication gap between the different wings of  Jollibee and between the Management and the employees. Keeping in mind these issues we have come up with a few recommendations. We have discussed them through Human Resource, Marketing, Financial and  Operations perspective. Then we have discussed the Strategic decisions with regards to expansion in the future in California, Hong Kong and Papua New Guinea. We have studied various pros and cons of  expansion in each of the above mentioned countries and reached the conclusion that California is the most favorable location. The reasons for the location being that there is a huge Philippine population in Dale City of California which will help in the establishment of  the store. Also they have successfully catered to the taste buds of the people in Guam which will help them  serve the Americans better and thus the expansion could be a success. Later we have conversed about the implementation plan and how  to go about  it. At the end of the document we have attached appendix for the reader’s facilitation. It contains certain tables and graphs for better understanding of the financials of Jollibee Food Corporation. Business Landscape: Company History; Jollibee Food Corporation began as an Ice- cream parlor in the year 1975 and was run by the Chinese Filipino Tan Family. But later they diversified in to sandwiches when the 1977  oil crisis occurred and the President Tony Tan Caktiong (TTC) expected the ice cream prices to soar. The hamburger recipe developed Tony’s father who was a chef also became famous and a year later hey opened five store in Manila, where the family incorporated as Jollibee Food Corporation. Friendliness pervaded the organization and become one of the â€Å"Five Fs† that summed up Jollibee’s philosophy. The others were â€Å"flavorful food, a fun atmosphere, flexibility in catering to customer needs and a focus on families†. Background: Until 198 1 it was a smooth sailing for Jollibee, but then came Mc Donald’s to Philippines. But the group was fearless and had confidence in the spicy taste of their Hamburger which appealed to the Philippine customers. Slowly Jollibee forayed in to the foreign markets and began with its investment in Singaporean 1985 in 1988 with  the help of some family friends. Their next venture was in  Taiwan again with the help of family acquaintance, but this also did not last long and the transaction came to an end on the basis of distrust between the local manager and Jollibee management in1988. Brunei was another joint venture that they entered into in 1987 August. Then they forayed in to the Indonesian Market in the year 1989, opening a store in Jakarta but due to conflicts with the local manager again this store also had to be closed down. In 1994 the International Division was created with Tony Kitchner, as the Vice President. Kitchner went about differentiating the International Division from the Philippine part of   Jollibee and tried to create a more formal culture for the division. Kitchener’s strategy rested on two themes: 1) Targeting expats 2) Planting the Flag But as the international business grew, the relation  between the International Division and the Philippine operations started turning sour. In 1996, TTC realized that  he could no longer support Kitchner  as the expansion strategy was costing heavily and they were losing a lot  of money. In February 1997, Kitchner left Jollibee. Then, Kitchner, Manolo P (Noli)  Tingzon was hired as the replacement. Now he is considering the three options for profitable expansion. They are: Papua New Guinea, Honk-Kong and California. Papua New Guinea has no much  completion for Jollibee. In Hong Kong there are several management issues and in California things seem to be quiet pleasant. Target Market: Jollibee Food Corporation targets its market very strategically. First of all, JFC can be considered as a nicher as it specializes on its local market. Though it has penetrated its market by operating overseas, JFC tends to serve the Philippines who are living there. JFC have 1200 stores worldwide of which 1079 are situated in Philippines. Jollibee segmented fast food market according to several variables and had chosen some them according to its resources and technological ability. Geographically, JFC mainly serves local Philippines market that has already been mentioned above. Demographically, JFC tends to serve almost all customers. But still the market is been segmented according to age to serve the children superior value. A Philippino business analyst notes that, in a normal family weekends are reserved for children and parents ask them where to go. Thus, JFC wants to be appealing to children. This segmentation can also be called as a â€Å"Family Life† Cycle segmentation. Jollibee also tries to capture some occasions like birthday party. They serve this segment very nicely. JFC tends to serve every possible segment. They are expanding their business overseas aggressively to go beyond Geographical barriers. 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. Marketing Mix: Product: In the case of Jollibee, it went from being an ice cream parlor to serving hamburgers made with a home style 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 Donald’s and KFC who maintain the same menus worldwide with minimal changes. Jollibee even incorporated recipes from employees to truly capture local tastes. Price: Price is closely related to customer satisfaction. Thus, JFC provides its high quality fast food products at a relatively cheaper price. According to its commitment to serve each and every Philippines, JFC keeps things affordable for all. The DLSU survey shows that, 94% of JFCs customer thinks it’s affordable or cheaper. 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. Promotion: Local brands: Brands in local market are strong contenders and are not to be underestimated.