MICRO ECONOMICS1

MICRO ECONOMICSBECON1201

SIM CHUNG ANG

BBA YEAR 1 SEMS 2

Date of Submission

26 July 2012

Lecturer:HJ AZAHARI HJ AHMAD

Table of Contents

Title Page1.Executive Introduction Company Background Company Value Company Mission Company Vision

34455

2.Marketing Mix Price Product Promotion Place

6678

3.Success Factor of Jollibee 94.Strength and Weakness of

Jollibee10

5.Competitor of Jollibee 116.Marketing Measures Marketing Budget

1213

7.Strategy Recommendation 158.References 16

2 | P a g eBECON 1201 MicroeconomicsIndividual Assignment- Jollibee Food Corporation

Executive Introduction

In this report, it’s about a famous fast food restaurant in

Brunei Darussalam which is Jollibee. Jollibee is always favoring

for most of the time and there are more than 10 branches in

Brunei Darussalam. In today’s highly competitive environment, it

is becoming increasingly difficult to differentiate on fast food

outlet from another. In Brunei Darussalam is starting to growing

with it tourism, every years there is increase visitor from other

country. This might help to improve country economies.

Jollibee is providing a combination of excellent food at value

pricing, with fun packaging and atmosphere. In Brunei Darussalam

is increasing demand for fast food, which we can see consumer

consumed when shopping and walking around inside shopping mall.

Jollibee their main priority is establish their outlet in a most

of the crowded mall and place in Brunei Darussalam. With their

further effort they are having at least one outlet in most of the

district at Brunei Darussalam, so consumer can easily to obtain

their food.

The report consists of the following:

Company Background

Marketing Mix


Quality of Service

Competitive Position

Success Factor

Marketing Measure


Company Background

According to Wikipedia (2012) Jollibee Foods Corporation (widely

known as Jollibee) is a fast-food restaurant chain based in the

Philippines. Jollibee is a phenomenal success story: what began

as a two-branch ice cream parlor in 1975 offering hot meals and

sandwiches became incorporated in 1978 with seven outlets to

explore the possibilities of a hamburger concept. Thus was born

the company that revolutionized fast food in the Philippines.

Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red

Ribbon, Manong Pepe Karinderia, and Delifrance. Since its

inception, the Jollibee brand has become an increasingly

profitable fast-food chain with 2,510 stores worldwide and total

sales of more than US$1 billion as of December 2008.

According to Wikipedia (2012) Jollibee is also the name of their

mascot, a large bee in a blazer, shirt and chef's hat. The

Jollibee mascot was inspired by local and foreign children's

books. Manuel C. Lumbalumba formulated a long-term marketing

strategy: listing up a number of consumer promotions and traffic

building schemes. Jollibee CEO stressed that developing internal

strengths was critical. The stores were re-designed, the service

transformed into a full self-service, fast-food operation with

drive-through. As the country's leading fast food chain, Jollibee

has grown exponentially on all aspects on operation.

Company Values


Customer Focus

Excellence

Respect for the Individual

Teamwork

Spirit of Family and Fun

Humility to Listen and Learn

Honesty and Integrity

Frugality

(About Us: Jollibee Food Corporation, 2012)

Company Mission

To serve great tasting food, bringing the joy of eating to

everyone.(About Us: Jollibee Food Corporation, 2012)

Company Vision

We are the best tasting QSR..

The most endearing brand…

that has ever been…

We will lead in product taste at all times…

We will provide FSC excellence in every encounter…

Happiness in every moment…

By year 2020, with over 4,000 stores worldwide, Jollibee is truly

a GLOBAL BRAND.(About Us: Jollibee Food Corporation, 2012)


Jollibee Marketing Mix

Price

The prices set by Jollibee are reasonable which are affordable by

the people. It offers set meal which is more economical. The

prices are fixed and sometimes it will offer discount when there

is an event like the fasting month for the Muslim. Customers can

enjoy lower prices if they are doing promotion on their

anniversary or other event.


Before doing any changed on pricing Jollibee will calculate the

price elasticity of demand. When the price of a Jollibee

changes, other things equal, the quantity demanded will change.

The price elasticity of demand measure the responsiveness of the

changed in quantity demanded to the changed in price. Price

elasticity is a number representing the percentage changed in

quantity demanded for one-percent changed in price.

Promotion

In Philippines Jollibee had introduced several mascots. Jollibee

started a TV show call Jollitown. It is star by the Jollibee

mascot to cope the attention of kids

In Brunei, Jollibee’s promotion is very successful to their

entire valued customer wherein they used to frequent their outlet

through strong marketing or promotion, like media, advertising

and sale promotions. Jollibee also have its own international

website which allows its customer for references.eg, price and

servings. Jollibee also provide catering and some events and

birthday celebration.

Jollibee also take part in ‘Tulong Mindanao Charity Auction and

Bazaar’ in Brunei Darussalam. This is a first public charity

event for helping in rehabilitation and reconstruction of

Philippines communities which damage by typhoon, which is happens


is in December 2011. This could be part of their promotion to

improve their company reputation.

Product

Jollibee is in monopolistic competition they do not offer same

products but differentiate their products from their competitor.

Product differentiation is the process by which producers are

able to convince customer that their particular product is

different from other competitor.

Jollibee is an American-style fast-food restaurant with Filipino-

influenced dishes. Jollibee usually sell burgers, spaghetti,

chicken, French fries and soft drink. Food that served in

Jollibee must meet the standard level or else it will not be

served at all because their foods are substitute goods and there

is a lot of competitor. And the serving is fast and hygiene is

the main priority of the business.

Jollibee also provide different set meals. E.g. Kids meal,

desserts and set lunch. Their aim is to target different groups

of people from young to old. They also follow the local deviation

from standard menu is a characteristic for which the chain is

particularly know, and one which employed either to abide by

regional food prohibited such as there is religious prohibition


of beef consumption in India and in Brunei all the serve to

Muslim have to be in halal. Or they would make available food

with which the regional market is more familiar.

Image source: (Menu, 2012)

Place

Jollibee had many branches worldwide. It is in United States,

Saudi Arabia, Hong Kong, Vietnam, Malaysia, Indonesia, Dubai and

Brunei. In Brunei, Jollibee at town area where there are crowded

with people’s, and near to shopping area. It is situated where it

can be easily spotted, so that it

can attract customer.



Image 1: Jollibee YayasanBranch

Image 2: Jollibee Gadong Branch

Image 3: Jollibee Giant RimbaBranch

Image 4: Jollibee Seria Branch

Success Factor of the Jollibee

Jollibee introduce their FSC standards, this is part of their

advertising strategy, because this would make their customer to

feel safe, comfortable, and enjoy their nice meal. (F) Is the

food served to the public must meet the company’s excellence

standards. (S) Service they provided must fast and courteous and

lastly (C) cleanliness from the kitchen utensils, food and place

provided for customer must always be maintained.

Managers are regularly updated on the latest store operations

systems, people-oriented management skills, among others. Service

crews are trained on various store stations and food-service

innovations. Jollibee also offers career opportunities for

qualified and exceptional crew members to further their food-

service careers as managers.

Jollibee use market niche strategies to beat their competitors.

In terms of global market Jollibee is a mouse among the elephants

but in the Jollibee control over a big share of hamburger and

fast food market in Brunei Darussalam. Market niches Jollibee

develop products for their customer must also develop message

that is made especially for their target customer. They target

groups customer so that it meets their customer needs better than

others. They are specializing in one.


However marketing strategy should always be updated because

another company may already use to strategy hence the strategy

will be outdated. Hence the strategy should be updated time after

time. A good marketing strategy could improve the business by

showing what they should do next, causing them to allocate their

budget more efficiently.


Strength and Weakness of Jollibee

Initially the strength of Jollibee is their brand equity, in

Brunei Darussalam almost everyone know the brand of Jollibee. In

Philippines, Jollibee Food Corporation (JFC) they are using the

automation of commissary to do their production and they also use

computerize to speed up the process efficiency and study consumer

needs. JFC they high initial investment to bring in state of the

art automation that will help to produce the quantity and

efficiency required by the overseas branch. This will achieve

economics of scales, the more they produce the lower to their

cost of production. This would help out them to drastically

reduce production time and ensure quality of consistency and the

maximum standard of hygiene in its food products. So, this had

ensured that their supplies are enough for consumer demand. Most of the people are happy with the customer service which

provided by Jollibee. Jollibee they empowerment and motivate

their staff so that they will serve their customer better and

they always choose their best crew to train their new team.

Manager of outlet, are seeking to understand the expectation of

local customer and adapt its performance standard. Other than

that, they also have to follow the organization group in the

overseas market that shares the same enthusiasm and idea as those

in the Philippines headquarters.


Somehow, there still have weakness for them; they are lack of

more effective marketing skill as growth revenues decrease. So

the manager of the outlets should find they way to increase their

sell by doing more promotion or they can have more event on their

outlet.

Secondly, they lack in dept planning and research in the

expansion of foreign markets. Although they have a lot of outlet

worldwide but their most important is focus on the Philippines

and Asia they should have more branches in other country like

China or maybe they can expand into Europe market.


Competitors of Jollibee

Jollibee in Brunei Darussalam it has a lot of competitor. Their

direct competitor is KFC, Sugar bun, and Macdonald. McDonald’s is

the world’s largest food service organization. McDonald’s holds

more than 40% share of the US fast food burger market, MacDonald

is more than thirty thousand outlets more than hundred country

while KFC having more than ten thousand outlets in more eighty

country. KFC and it is franchised employees are more than two

hundred thousand in all over the world. They two are the main

rival of the Jollibee in Brunei Darussalam. Jollibee has more

than two thousand store worldwide and total sales more than 82

billion Peso every year.

KFC consider the one of the largest fast food restaurant in

Brunei Darussalam They have few success factor that makes them

successful in Brunei Darussalam. The first main factor is the new

products of their company, and it is important that KFC learn to

develop and introduce new products in such a way that new

consumer will be attracted to the store. From time to time the

KFC will introduce new food or menu to attract more customers.

Secondly KFC is a multinational corporation for several decades.

As a result the company is familiar with their logistic and

quality problem. So their foods are always in stock because they

have a good logistic and in a good quality. KFC shows that they


can work with host countries and businesses within the host

country to develop a strategy which was works for them.

The product offer by KFC which is similar to Jollibee, they just

do not offer menus for noodles. While other like chicken,

desserts, sandwiches, burger and other which are alike.

Marketing Measures

Firstly for small marketing measure we can do more advertisement

on Brunei and Muara district because there consist of 200,000

population and it is the busiest district and there are divided

in to 14 section such as Gadong, Berakas A, Berakas B, Pengkalan

Batu, Kilanas, Kota Batu, Mentiri, Serasa, Kianggeh, Lumapas,

Saba, Sungai Kedayan and others. Jollibee have a lot of branches

on these all places so in these all place we can add more

advertising by giving more flyers, can add more billboard

advertising on roadside to attract more customer.

On other hand, we can host a website on internet by using buzz

marketing or we can use such as Twitter, Facebook and Youtube to

do advertisement. A lot of other fast food companies are making

inexpensive funny video and placing them in these forums or


Image Source: (2012, KFC

social network for public to pass on to their friend. These

commercials are having more rapid feedback than a normal

television commercial.

Secondly, for medium marketing measure, I recommend of having

more branches throughout Brunei Darussalam. I would recommend

open up another branches in Kuala Belait although is there one

outlets Seria town. But, it is not easy accessible for residence

stay at Kuala Belait town. Although Kuala Belait is having less

population and not the capital of the Brunei Darussalam, but this

is the place where the oil and gas process district which means

there is a lot of expatriates or foreigner. So, this could expand

our targeted market.

Then, lastly the large marketing measure, they can expand their

business in to other countries like India. India is the third

largest in the world for purchasing power parity (PPP) according

to international monetary fund and CIA world facts books.

So, there is a huge market for Jollibee if they expand their

market into India. This might increase their sales and market

share. But they it needs a lot capital to do this marketing.

Marketing Budget


Small Medium Large

Advertising $15,000 $25,000 $60,000Web Development $10,000 $15,000 $20,000Marketing Training $5,000 $10,000 $30,000New Outlet 0 150,000 300,000Total Marketing Expenses $30,000 $200,000 $410,000

Advertising Web Development

Marketing Training

New Outlet Total0

50,000100,000150,000200,000250,000300,000350,000400,000450,000

Marketing Budget

Small Marketing Medium Marketing Large Marketing

From the table and graph above we can see the cost of the

marketing. For the total of the small marketing needed of fifteen

thousand for their advertising on billboard on roadside and

printing of the leaflets. The web development requires ten

thousand to develop and maintenance of the webpage and the pay

for employees to feedback customer. Lastly the five thousand19 | P a g e

BECON 1201 MicroeconomicsIndividual Assignment- Jollibee Food Corporation

which is allocate for the marketing training which is giving

training for their staff for marketing their product. The total

cost of this small marketing measure is thirty thousand.

The total cost for medium marketing is two hundred thousand. The

highest cost is for their new outlet in Kuala Belait branch which

is one hundred and fifty thousand. This cost is including of

rent, furniture, heating and lighting and interior design.

Whereas, the other fifty thousand is allocate for advertising,

marketing training and web development.

For the large marketing we are decided to extend our market to

India. So the cost will be higher. The total cost is four hundred

and ten thousand. The new outlet is cost three hundred thousand.

The outlet will design to follow India culture and belief to

attract India population. Whereas, the sixty thousand will used

for advertising, thirty thousand will used to marketing training

this considered not very high cost because the standard living

in India is not so high.


Strategy Recommendation

Even though Jollibee has defined their target market but they

still need to redefine their generic menus to emphasis on

research to provide more localize food menu which suitable for

every country.

In addition, they need a huge investment into IT systems, which

allow Jollibee to manage their day to day operation from every

branch and in headquarters can know the sales of every division.

This can help Jollibee to align the goals of the different

geographic divisions; Jollibee should seek to create two

strategic business units under the company brand: International

and Domestic

This will allow the International Division to ensure greater

coordination across IT activities, as well as pooling procurement

purchases wherever geographically possible. This should help to

increase cooperation at a firm-wide level.21 | P a g e

BECON 1201 MicroeconomicsIndividual Assignment- Jollibee Food Corporation

To achieve market dominance, Jollibee should focus on increasing

the presence in international markets. The international market

will only need a good communication plan and good promotional

tactics in getting the newly introduced products, and focusing on

products, getting it known, and creating loyal customers. In

addition, the company should improve on its research and

development from new markets, potential achievement and new

products to be developed.

For each of the other business units, Jollibee should communicate

the company culture through company meeting to ensure that the

company interests are achieved. Advertising campaigns though do

not always have to be Jollibee sponsored. As recommendation, the

other business units should focus on environment publicity.

End Text Referencing

1. 2012,Jollibee,Viewed 1 July 2012,< http://en.wikipedia.org/wiki/Jollibee >

2. 2012,About Us: Jollibee Food Corporation, Viewed 1 July 2012, <http://www.jollibee.com.ph/about-us>


3. 2012, Menu, Viewed 1 July 2012, < http://www.jollibee.com.ph/menu/burger>

4. 2012, Menu, Viewed 1 July 2012, < http://www.jollibee.com.ph/menu/chicken>

5. 2012, Menu, Viewed 1 July 2012, < http://www.jollibee.com.ph/menu/noodles>

6. 2012, Menu, Viewed 2 July 2012, < http://kfc.com.bn/?c=combomeals>

7. 2012, Menu, Viewed 2 July 2012, <http://kfc.com.bn/?c=snacksburger>

Reference List

1. http://www.jollibee.com.ph/2. http://en.wikipedia.org/wiki/Jollibee3. http://www.scribd.com/doc/23484200/Jollibee-Foods-

Corporation4. http://www.docstoc.com/docs/14423409/Jollibee5. http://kfc.com.bn/6. http://www.scribd.com/doc/28845092/KFC7. http://www.allfreepapers.com/print/Jollibee--Case-Study-

Analysis/1794.html


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