Introduction to Marketing: Jollibee Case Study Analysis and Insights

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Case Study
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This case study examines Jollibee's marketing strategies, focusing on its international expansion and adaptation to various markets. The analysis covers the company's response to consumer needs and wants, macro-environmental factors, and internal environment considerations. It delves into Jollibee's market segmentation, product adaptation, and multi-branding approach, highlighting its direct expansion strategy. The study also explores the application of the marketing mix (product, price, place, and promotion) in different global markets, emphasizing menu localization and promotional strategies. The document references relevant marketing concepts and academic sources, providing a comprehensive overview of Jollibee's marketing approach and offering insights into its global success. It highlights the importance of understanding the target market and developing long-lasting associations with local associates for successful market segmentation and expansion. Finally, the case study concludes with an assessment of the effectiveness of Jollibee's marketing mix, emphasizing the need for a balanced approach to branding and customer satisfaction.
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Running Head: MANAGEMENT 0
INTRODUCTION TO MArKETING
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MANAGEMENT 1
Case Questions and Answer
1) For any individual, needs are known to be the basic human requirement (Schwartz,
2012). In terms of physical needs, Jollibee serves the need for food for human
existence. The next needs are the social needs and in relation with the fast food chain
like Jollibee, it concerns with having a “taste of home” specifically for the expatriates
of Filipino employed in other countries. Jollibee also served self-esteem need of the
population with showing that easting fast food products are associated to fast stepped,
young and modern lifestyle.
In relation to wants that are being fulfilled by Jollibee, they are termed to be a desire
of particular objects that are compelled by needs and designed by consumer
personality, beliefs and knowledge. The wants that the fast-food chain contended are
the consumer want to intake fast food rather than other sorts of foods, to discover a
location where all can adore meals that recall them of household as to treat their
homesickness and also the place where they can manage to form unique events or
gatherings with their friends and family. At last, the wants also relate them to be seen
as personalities who lead a present lifestyle.
2) The macro environmental factors surrounded near Jollibee includes the political
factors where the retail chains in the fast food market have to stand by to various rules
and regulations set by every nation. In various scenarios, to successfully undertake
operations, the fast food chain required to pass the standards established under the
food and safety standards (Aung & Chang, 2014). In addition, developing long term
and well connection with the native suppliers is also necessarily important as there are
different and numerous culture in various nations. In relation with economic factors,
the key focus is on the increasing prices of the commodity like rice as there will be a
negative impact on Jollibee revenue with rise on production cost. It will also have a
higher influence on the channels where rice is used at their main ingredient. In
addition, a customer will lower his/her expense on fast food at the time of economic
crisis and the will be more inclined towards home based meals.
Considering social factors, the consumption or intake of fast food can be decreased as
customer are now getting more aware about health. In addition, globalisation has
enabled various multinational and American fast food outlets to mark their footprint
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MANAGEMENT 2
into Asian and Middle East marketplace and thus, there will be more competition for
Jollibee. When time arrives, the market share of Jollibee can also be impacted due to
low demand and at the time of increase in fast food outlet suppliers. In terms of
technological and environmental aspects, business needs to be responsive towards
environment while fulfilling their responsibility such as recycling, reducing and
reusing the resources (Leonidou et al, 2013) and it requires Jollibee to emphasis on
the development of technology to re-design its packaging of food and other materials
towards the benefit of environment.
At last, it is very important for Jollibee to understand the target market as well as
developing long lasting association with local associates to segment the market more
successfully.
3) Expanding the business internationally enable to achieve more economy of scale (Hsu
et al, 2013). Firstly, Jollibee is focusing on selecting the international market more
carefully such as the company main focus is to target those market where expatriates
of Filipino are available in larger number and the competition is less. In relation to its
internal environment, the company also comes up with a new division that undertakes
all practices and assessments associated to franchising. To ensure being efficient and
consistent throughout all outlets, global franchises also adopted the standardised
Jollibee floor plan while carefully trailing necessary operating decisions.
In related to expand its operations in the markets of China and US, several ways are
used by Jobbliee to collect significant data such as sending group of employees to
examine the marketplace and sector and recruit the locals so that to gain better
understanding of the consumer behaviour. The next strategy that is used by Jollibee is
adaption of product in which the company re-structure its service and product offering
to fulfil and satisfy the various local wants and needs. For example, in UAE, the
Chowking offers functions rooms for customers who often support the outlet with
celebration of unique events and also for gatherings. Furthermore, it alters its menu to
fulfil its target segment who seek desire for enjoying meal with a “taste of home”.
Taking out another example, it will be Brunei chain that provides various Asian alike
servings to match the taste as of local familiarity.
Jollibee also makes itself as a place providing superior quality fast food at reasonable
cost and with different menu items as per the various customer outlook and taste in
several global markets. At last, the business use multi-branding approach to develop
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MANAGEMENT 3
its name in the fast food sector and to ensure that it obtains more share in the market
as when the one brand name fails, the company can tap on others in the equal sector.
It is rational for the business to expand its operations in the international market
directly as the company has established brand name in Philippines marketplace, it will
be at ease for Jollibee to appeal its targeted customer who is originated from that
nation even.
4) In the international markets, Jollibee is using product, price, place and promotion as the
marketing mix strategy to grab more market share and customer attention. In relation with
product, the business emphasizing on the menu localisation to native taste and likings and
also holding its main trademark as American fast food. In addition, Jollibee also focusing
on bringing new servings as well as services at each place and corner. The pricing of its
menu item is far reasonable at par. Considering place strategy of marketing mix, Jollibee
has its target market and outlets situated in UAE and US such as its first ever outlet in the
US was introduced in Daly City where there is larger number of Filipino immigrants.
Considering the key transportation mode in America, the business also introduced more
drive-thru spaces in US outlets in contrast with the Philippines. The business also
introduced other chains in top cities and places including Dubai and New York.
In relation with promotion as a marketing mix strategy, the business adopts unique ways
by showing an enjoyable personality with using symbol of big bee on shirt, hat and
blazer. Furthermore, the global department of Jollibee connect a slogan “great burgers,
great chicken” to its logo as well as from future perspective, the business also retains
higher budget to execute its promotion and marketing plans. The new campaigns of the
company in Indonesia will emphasis on branding and in-store initiation. Ultimately, these
strategies related to company marketing mix are very much appropriate, however,
Jollibee requires to keeps its American status on a relative side while not focusing much
extreme on menu localisation. In other words, the business must undertake innovative
practices for its distinct branding being fast food outlet while not been unclear to
customers.
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References
Aung, M. M., & Chang, Y. S. (2014). Traceability in a food supply chain: Safety and quality
perspectives. Food control, 39(1), 172-184.
Hsu, W. T., Chen, H. L., & Cheng, C. Y. (2013). Internationalization and firm performance
of SMEs: The moderating effects of CEO attributes. Journal of World Business, 48(1), 1-12.
Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and
capabilities as drivers of hotel environmental marketing strategy: Implications for
competitive advantage and performance. Tourism Management, 35(1), 94-110.
Schwartz, S. H. (2012). An overview of the Schwartz theory of basic values. Online readings
in Psychology and Culture, 2(1), 11.
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