Jollibee Strategic Plan

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Date Submitted: 03/27/2011 09:15 AM

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Franchising and Marketing strategy

By 1980 with the entry of big competitors such as A&W and KFC, Jollibee already had 21 franchises around the country. Adding to the Filipino taste, the company developed products that could compete with the new comers. Therefore launching the Chickenjoy and Jolly Spaghetti. That's not all, with news of McDonald's coming to the country the following year; Jollibee had its first step to advertising and the mascot strategy.

And as predicted, the biggest fast-food chain in the world is here, McDonald's. It would also follow that the 'little bee' will soon loose its sting. True enough, the color, ambiance, service and food of McDo ate up a fair share of Jollibee sales.

Tony Tan leaned on a friend to counter this problem, though it meaning that it is not a pure family controlled business anymore. Smith Lanning was a management consultant that Tony met in a convention. The two became close friends and later on helped each other. The business know-how of Smith Lanning taught Tony a basic strategy. Go into advertising, PINOY ADVERTISING.

After spending a whole year's profits on advertising, launching new products together with the Langhap-Sarap theme in commercials, Jollibee got back at McDo posting 500 million sales in 1984. By 1985, the company was the prime fast-food chain in the country getting the most of the market share.

In 1987, after a series of hardships and controversies, Jollibee opened in Brunei and Taiwan, and the rest followed. Sales ballooned to 1.3 billion in 1989 just to show the amount of patronage the company experiences. And as usual, advertising is not solely for the original Yumburger, but there are already a wide product offering from Jollibee at the time.

Going Public

The 1987 advertising and expansion campaigns showed that the company needed money if sooner than later. Jollibee financial consultant Paul Rosenberg saw this and recommended to Tony that the company should go public to gain...