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Marketing Mix Of Jollibee – The Rise from A Humble Family Ice Cream Parlor To Global Fastfood Chain

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Jollibee is the most immense fast-food corporation in the Philippines. They have made significant progress in America’s fast-food scene over the last two decades. In this post, we’ll find out the Marketing Mix of Jollibee and what its secret is in going global. Researching the competition may be Jollibee’s secret.

Jollibee Foods Corporation is the conglomerate that owns the Jollibee fast-food restaurant chain. They also have other brands including Burger King Philippines. They own Chowking, Red Ribbon Bakeshop, Greenwich Pizza, and Mang Inasal. These are fast food restaurants, restaurants, and bakeshops found all over the Philippines.

Jollibee is the leading market leader in the Philippines. They have a larger market share than all other foreign fast-food brands in the Philippines combined. Currently, Jollibee has more than 1,200 outlets worldwide. Are you ready to find out the about Strategic Marketing Mix you can use?

Jollibee Foods Corporation

Jollibee and McDonald’s are two of the most powerful players in the Philippines’ fast-food industry. Yes, in terms of a global store count, the United States-based McDonald’s overshadows Jollibee. However, in the Philippines, Jollibee is a complete sensation.

Jollibee easily outperforms McDonald’s and Burger King in terms of popularity and local market share. It has over 750 stores in the Philippines putting it at the lead of the market race.

How did Jollibee start?

Jollibee started out as an ice cream parlor in the late ’70s until Mcdonald’s came in. Tony Tan Caktiong, Jollibee Foods Corporation founder made the huge decision to research this new competition.

He flew to the States to find out more about McDonald’s. When he came back, he reinvented Jollibee —all by copying almost everything about his nemesis. He realized that the competition has better service, operation, and promotion and all he did is raise his restaurant’s standards to their level.

Yet, there is one thing he knows McDonald’s couldn’t compete in: the flavor. McDonald’s can’t just change their product due to a global image they need to keep. Jollibee on the other hand made sure to satisfy the Filipino palette. Sweet, generously spiced, and salty, the food is just how the locals want it.

The moment they stepped foot on Philippine soil, the McDonald’s fast-food restaurant chain was already old news.

Currently, Jollibee has 66 locations in 12 U.S. states. JFC had over 1,200 Jollibee outlets worldwide as of April 2018. They have locations in Southeast Asia, the Middle East, East Asia, North America, and Europe.

Jollibee Foods Corporation in Turin, Italy
Turin, Italy

Marketing Strategy Of Jollibee

So, how is Jollibee making it in the global scene?

Jollibee delivers great-tasting, high-quality, and budget-friendly food to the masses. Their main product is the Filipino-favorite crispy Chickenjoy. One of their other bestsellers is the Yumburger (this is their signature product for some time), and sweet-tasting Jolly Spaghetti (Filipinos like their spaghetti sweet).

Jollibee Foods Corporation follows ironclad standards of food quality, service, and cleanliness. They have what they call the FSC for their fast-food restaurant chain.

F-FoodFood served to the customers must meet the company’s excellence standards. If it doesn’t meet the company’s standard, it will not be served at all
S-ServiceService must be fast and courteous.
C-CleanlinessCleanliness must be maintained from the kitchen to utensils.

The marketing strategies of Jollibee are captivating and highly marketed. They utilize a variety of media such as television, radio, newspapers, and more. It won’t be surprised if they spent millions of dollars to stay in the minds of its customers, Filipinos in particular.

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Mr. Caktiong plans to spend $251 million in 2021 to speed up store expansion both in the Philippines and worldwide.

Jollibee relies on a huge volume of customers and effective operational management. Their operation is a well-oiled machine. Managers oversee daily operations to deliver outstanding service to the droves of customers that visit its stores.

Jollibee Marketing Plan 2021

So what does Jollibee have up its sleeves? There is a reason why Jollibee seems to have the guts to enter the global market —and it’s not just plain hubris.

The marketing strategy of Jollibee involves expanding its global reach. Jollibee declared in an email that it plans to open 500 fast-food restaurant chain outlets in the United States and Canada over the next five to seven years.

The company mentioned that it will establish 28 locations in the United States and Canada in 2021. Their goal is to reach 300 stores by 2024.

Jollibee Marketing Mix

What is a marketing mix, exactly?

In the 1950s, Neil Borden popularized the marketing mix concept. Then came Jerome McCarthy who introduced the 4Ps found in the Jollibee marketing mix. Borden was a Harvard University advertising professor. His article “The Concept of the Marketing Mix” was published in 1964 and originally has more than 4 elements. It illustrated how businesses should employ advertising methods to engage their customers.

Companies are still using the themes Borden introduced to sell their goods and services decades later.

What Is The Marketing Mix For A Restaurant?

You can use the Marketing Mix principle to help dial in your menu to maximize profit potential. This is because the menu is a restaurant’s No.1 marketing tool. Here’s a rundown of how you can use the marketing mix to boost your business.

Here’s the marketing mix of Jollibee and pretty much what other businesses follow.

4ps Of Jollibee

The 4Ps are the four essential factors involved in marketing a good or service to the public. The 4ps of Jollibee includes the following:

Product

Product refers to the goods or services that a company offers. In the case of Jollibee, it is the food.

Price

Price refers to the amount that you make your customer pay. In the 4ps of Jollibee, the idea of psychological pricing is used.

Place

The concept of place refers to the location where a product is marketed. This doesn’t only refer to the physical place where the business is built. It can even refer to the Menu where the product is shown.

Promotion

The concept of promotion in 4ps refers to the company’s advertising efforts as well as public relations. It involves any promotional strategy to convince customers they need your product.

Product

Product refers to goods and services that a business offers to its customers. In principle, a product should meet existing consumer demand. On the other hand, you can make your product so appealing that your customers are convinced they really need it.

This results in new demand. Smart, right?

Business owners and executives need to be knowledgeable about a product’s life cycle in order to be effective. They need to have a strategy for dealing with products at all stages of their life cycle. The kind of product you offer also influences how much your company can charge. It also dictates where your business should be placed, and how it should be promoted in the marketplace.

Jollibee Foods Corporation is known for its food which brings the nostalgic Filipino taste. They produce and sell simple food you can pick up and now, even deliver. It can also reach a wide range of market target groups because of its diversified product.

Jollibee Foods Corporation also promises that product usage will satisfy your psychological demands. Imagine if you’re an American living in Asia for years and someone serves you a good old pot roast. Nostalgic right? This might be how Filipinos abroad feel after a bite of Chickenjoy or a mouthful of Palabok.

Place

When a business decides on where to locate, it involves analyzing where they should sell a product and how to get it to the market. The ultimate goal here is to be able to deliver your items in front of the customers who are most likely to buy them.

Jollibee Positioning Strategy

One thing you’ll notice with Jollibee is how strategically they position their stores. They always make sure to build a branch in places where there are a lot of people. This ensures a high volume of consumer traffic. The main idea is to be a family destination after all, so expect entire families sitting at tables beside you!

crowded fast-food outlet due to effective Jollibee Positioning Strategy

The Jollibee branch in Hong Kong, for example, is located in the Central district, which attracts a high number of Filipinos. They provide excellent service to large crowds in every store. They work like a champion soccer team going for that goal.

Position strategy can relate to placing a product in certain stores. It can also refer to placing a product on a specific store’s display. In some circumstances, product placement can refer to the inserting of a product on television broadcasts, films, and online pages. Basically anywhere you can draw attention to your product and business.

In company-operated stores, Jollibee Foods Corporation has more control over operations, as well as store architecture and design. To add, they recently launched an online order placement and tracking website. This move was claimed to be quite a success for Jollibee.

jollibee delivery

It makes sense especially during the global pandemic where people opt for food to be delivered.

Jollibee’s products can be found in supermarkets and hypermarkets all around the US. To maintain quality control and conditions of negotiation for its product placement, Jollibee Foods Corporation contracts with partner agencies in various nations and markets.

Promotion

Jollibee uses its social media presence to directly engage with customers. In the Philippines, customers can use the loyalty card to exchange points for products or other exciting gifts as directed by the company.

They also have community influencers as part of their on-the-ground promotional efforts. This helps increase Jollibee Foods Corporation’s visibility while also assisting in the development of stronger brand recall.

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Promotion Of Jollibee

As we mentioned above, Jollibee promotes itself through the usage of community influencers. There’s nothing wrong with a few Tik Tok influencers dancing to Doja Cat, right?

Influencers make them more likable and maintain direct interaction with customers on social media.

Jollibee is very aggressive in its marketing initiatives. They focus a lot on their commercials through numerous mediums including TV, newspapers, and radio.

They actually create short films based on a true story depicting family love and happiness. They show people how fun is magnified when they have a meal together. This is the main part of their marketing approach.

Believe it or not, a lot of their ads are tear-jerkers. Check this ad below:

And here’s an ad made for Filipino families abroad during the pandemic.

Filipino families like most Asian families are quite bonded. Family is such an important part of the business and the in-store environment makes it a point for customers to feel at ease.

Perhaps, the biggest selling factor here is that people become emotionally bonded to Jollibee establishments.

Pricing

How do you put a price on goods?

As a marketer, you should match the pricing to the product’s actual and perceived worth. Of course, this includes supplier costs, seasonal reductions, and rival prices.

But what do we mean by “perceived worth?”

Some business owners give their customers the illusion that they have a luxury item by boosting the price. On the other hand, they may also reduce the price to encourage more people to try their product.

the effects of price in 4ps Of Jollibee

As a business owner, you need to decide when and whether discounting is necessary. A discount may attract more customers, but it may also give the impression that the product is cheap and ordinary. Yes, a product can seem lower quality than if it was when it was priced higher.

Jollibee Foods Corporation promotes positive brand and product perceptions among its target consumer groups. They do this by charging a premium for some of their product lines. They also utilize psychological pricing which successfully adds more value to its products from the perspective of customers.

You might ask “Why not just say it’s worth $7?”

illustration on psychological pricing in marketing mix

Image from: youtube.com

This “broken pricing” is thanks to what we call “Psychological pricing.” This concept refers to the strategy where you set prices that are less than a whole number. The idea behind this is that customers will read the slightly reduced price and think it is “lesser.” Well, yes, it sort of is…but the truth is, it’s just a cent cheaper.

Psychological pricing Marketing Mix Of Jollibee

Geographic pricing also enables Jollibee Foods Corporation to cover shipping and customs costs for locations outside of the Philippines.

The company is also known to use a popular bundle pricing strategy with what they call the “combo meals.” So, you get more savings for more purchases.

jollibee combo meals

7ps Of Marketing Mix Of Jollibee

As mentioned in the previous section, marketing mix refers to the four Ps of marketing which include product, price, place, and promotion.

Because Jollibee is a service marketing brand, it has 3 additional Ps. People, Process, and Physical Evidence. These are the key components of marketing a product or service, and they interact strongly with one another.

What Are The 7 Ps Of Marketing Mix?

Now, let’s find out about the 3 additional “Ps” to create the 7ps Of Marketing Mix Of Jollibee. So what are the 7 Ps Of Marketing Mix and what are its benefits to your business?

In 1981 Booms and Bitner added 3 more components to the marketing mix. This becomes the extended marketing mix that aims to cater to the needs, wants, and expectations of customers. Your customers’ desires always change after all.

People

“People” is an important aspect in the 7ps of marketing mix of Jollibee. This includes anyone involved with the product or service. It makes no difference whether they are involved directly or indirectly.

Your staff, salespeople, customer service teams, and anybody else involved in the marketing and sales operations are all part of it. Each of these people plays a unique role in the creation, marketing, distribution, and delivery of products and services to customers.

“People” doesn’t only refer to the ones you sell to or advertise to. To provide great service, you want your employees to be productive. Furthermore, you want them to have a favorable impact on your consumers.
Jollibee Foods Corporation understands the value of its employees in developing strong customer relationships. Jollibee Foods Corporation ensures that all employees receive regular training in order to develop and improve their skills.

Customer Service Strategy Of Jollibee

Customer service was given a high priority at Jollibee. As mentioned in a previous section, one of the key result areas the staff is evaluated in is for customer service.
Everyone in the company takes the customer service strategy of Jollibee very seriously. Jollibee’s training is not only field-related but also focuses on essential management and organizational skills.

Process

The delivery of your product or service to a customer is referred to as “Process.”

It describes the full experience of your buying process. This starts from your customers being aware that your brand exists, proceeds to go to your sales funnel, goes through your distribution, and takes part in a post-purchase customer relationship. So, from noticing your product, thinking about buying it, actually taking out the credit card to buy, and putting in a review (whether it’s good or bad).

Functions, activities, tasks, and processes must be mapped out. This ensures that your processes run smoothly and efficiently. Check your processes on a regular basis to ensure they are simple and increase your ability to generate revenue. This step may involve a number of trial and error phases.

Jollibee Foods Corporation has put in place organized and systematic processes to ensure that the company grows consistently. All stages of the operational processes are focused on maintaining a high level of product quality and standard.

Systematic processes are in place for all operations, from product procurement to final sale.

Physical Evidence

Customers should always receive something tangible to assure them of a valid purchase. Consider how braces straighten your teeth, and hairdressers give you a new look. Receipts serve as proof of purchase as well as tracking information.

It gives your customers assurance that you are legitimate. Imagine how nervous you would feel after purchase if the link you clicked doesn’t bring you to the company website. Facebook pages and even social media accounts serve as physical evidence too.

This tangible item (or even a simple email confirmation) validates the purchasing experience and fosters a sense of value from the purchase.

Physical evidence is also important in Jollibee Foods Corporation’s marketing strategy, as it works to influence consumers in favor of the brand and its offerings. Jollibee has distinct packaging that distinguishes it from other industry players. Jollibee Foods Corporation’s packaging also has a vibrant touch, with colors and patterns changing on a regular basis.

The company’s logo is straightforward and easily recognized by customers. The brand logo has also become a symbol of nostalgia and sentimental connection for consumers who choose to dine at Jollibee.

packaging as Physical Evidence in 7ps Of Marketing Mix Of Jollibee

The product packaging is engaging and matches the brand image developed and maintained by Jollibee Foods Corporation. It is inviting, fun, and festive.

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Marketing Mix Of Jollibee – Jollibee Marketing Research

The Jollibee brand’s unique selling proposition is food that is quick, good, clean, and inexpensive. They make sure to address local requirements. Furthermore, they aim to be consistent and dependable wherever they are.

jollibee foods corporation founder mr. coktiong

Instead of avoiding rivalry with other global big names, Jollibee decided to focus on improving internal strategic planning.

Their main secret for success? Research and SWOT. As you may have read in a previous section Mr. Coktiong went to the US and looked into McDonald’s like some sort of spy.

A comprehensive SWOT analysis is a marketing approach that helps companies analyze internal and external issues. This helps you reach a marketing objective by assessing Strengths, Weaknesses, Opportunities, and Threats. Employing this assessment, Mr. Coktiong realized what Jollibee needed to get a fighting chance.

This method of analysis assisted Jollibee in focusing on the Filipinos’ passion for sweet flavors and spice. It is perhaps one of its unique selling propositions that other overseas competitors couldn’t match. Jollibee made sure to deliver food that appeals to Filipinos’ preference for spicy burgers, rice-based meals, and sweet-tasting spaghetti (Sorry Italians).

If there is something to take away from Jollibee’s success story, it’s researching the competition and being open to improvement and change. At the same time, you need to know what to give your customers to keep them coming back. This is perhaps the secret to an effective marketing mix of Jollibee.

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