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Market analysis of Jollibee Fast Food Restaurant - Essay Example

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Market analysis of Jollibee Fast Food Restaurant

The company “Jollibee” was introduced in the year 1975 by five Chinese Filipino brothers known as the Tan Caktiong family. Initially, they opened a two branch ice-cream parlour (Thompson and Martin, 2005) which later developed into a fast food restaurant offering unique Filipino cuisine. Soon, the company emerged to be one of the most successful business food chains in Philippines. In 1981, Jollibee had established 11 stores in Manila whereas McDonald’s had just opened one store (Hill and Jain, 2011). By 2003, it had opened 467 stores in Manila and had earned a market share of more than 50% and revenue of $500 millions. It had surpassed the revenues of McDonalds in 2003 (Hill and Jain, 2011).
The key strategies followed by Jollibee Company were as follows:
 It offered American fast food but kept the Filipino cuisine in mind. For example, it served Asian style hamburgers and the pastas tasted like ‘Chinese Chowmein’. Desserts offered were of unique flavours like Peach Mango Pie and Banana Langka. They kept the local consumers’ taste and preference in mind (Thompson and Martin, 2005)
 They studied the operation system and marketing strategies devised by McDonald’s very closely. Jollibee offered the same range of products but with a difference in taste, so that it would set them apart from its competitor (Hill and Jain, 2011).
 Prices of food products were kept lower than that of McDonald’s (Hill and Jain, 2011)....
Prices of food products were kept lower than that of McDonald’s (Hill and Jain, 2011). These strategies worked very well and eventually Jollibee became one of the most coveted and popular restaurants of Philippines. Environmental Analysis Current Market Trend and Position The company Jollibee is operating worldwide with 750 stores operating in the Philippines itself. It has become a market leader in fast food restaurant business. It enjoys a lion’s share of the profits that is greater than the other multinational brands combined. The company has embarked on an international expansion with 80 stores operating outside Philippines; 26 stores in the USA, 32 stores in Vietnam, 11 stores in Brunei and 7 stores in Qatar, Kuwait, Hong Kong and Jeddah. It has received the ‘Best Employer’ award in Philippines from Hewitt (Jollibee, 2013a). The company’s international marketing strategy has been a huge success and this is mainly due to the large flock of Filipino population residing abroad, which provided as a readymade market base to the company (Gillespie, Jeannet and Hennessey, 2010). As per some theorists, the USA fast food market is saturated despite that Jollibee has performed very well in the US and the Middle East markets (Hill and Jain, 2011). According to a survey conducted in Philippines, Jollibee has received the highest ranking in the consumer category ahead of major brands like Nestle, Procter & Gamble, etc (Gillespie, Jeannet and Hennessey, 2010). Target customers The target customers of Jollibee Company would be consumers of all ages. Fast food is preferable among the teenagers and adults alike. Jollibee focuses on the importance of traditional family values and ...Show more
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This paper analyzes how Jollibee Company has become one of the finest fast food restaurants of Philippines. Its unique marketing strategy devised by the owner will be discussed. In this paper, you will also find the environmental analysis of the company, Its current market trend and position, target customers, competitor analysis and international expansion plans…
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