Jollibee

University of San Carlos

School of Business and Economics

Case Study

Jollibee Food Corporation

Submitted By:

Kyle Rubin

Ma. Suzette Martinez Ty

Rachel Booc

Submitted To:

Dr. Emmylou Llorca

August 1, 2013

I.CASE SUMMARY

Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double.  Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches.  From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp.  

Jollibee portraying itself as a fast-food outlet of high-quality at an affordable price specifically tailored for the Filipinos, the chain has appealed to devoted locals. With its introduction of in-store play activities for children and a cast of brand mascots, it reaches and appeals to the children and is evidently more popular than its nearest competitors. Recognizing that a normal Filipino family’s weekends are normally reserved for children, the previously mentioned activities add value to Jollibee's position as the prime destinations for family outings.

Jollibee projects itself as being closer to Filipino families as compared to its competitors. There is already widespread awareness locally that Jollibee is a local Filipino establishment, which in turn appealed to the mass population whom felt more comfortable in a familiar setting. Tailoring its menu towards the Filipino taste, it positioned itself as the favorite destination for family outings as compared to its related competitors.

Being a major player in the Fast-food industry in Philippines, they constantly enjoyed economies of scale in terms of retail...