“THE MARKETING PRACTICES OF JOLLIBEE FOODS CORPORATION”
A Thesis Proposal to be submitted to the Dean and Faculty of Business Administration Program of Father Saturnino Urios University
The Researchers:
Statement of the problem
The study attempts to investigate the marketing practices of Jollibee Foods Corporation.
Specifically, the study will seek an answer to the following:
1. What are the marketing practices of Jollibee foods corporation in terms of
1.1 Products and services
1.2 Pricing strategies
1.3 Product innovation
1.4 Customer service
2. Does the marketing practices of Jollibee foods corporation create a competitive and comparative advantage in terms of:
2.1 Products and services
2.2 Pricing strategies
2.3 product innovation
2.4 Customer service
3. Does the marketing practices of Jollibee Foods Corporation affects their sales and production?
Research Paradigm
Input Process Expected output
Marketing practices in terms of:
• Products and services
• Pricing strategies
• Product innovation
• Customer service
• Interview
• Formulate questionnaire
• Distribute Customers
• Tabulation of data
• Presentation of data
• Analysis and interpretation
Proposed marketing strategies that are more effective than what they have at this time for improvement.
Chapter 1
The Problem and Its Scope
Introduction
Marketing practices is a one way of establishing the company to make the product more saleable. It focuses on providing accurate information so that they can make informed decisions for the strategies they will implement.
Jollibee Foods Corporation is one of the most competitive and progressive food establishments in the country. They have conquered different areas nationwide. Having almost thousands branches in the country. They have offered a lot of products which are accepted by masses, such as spaghetti, hamburger and fried chicken. They always have product innovation and promote it nationwide through their various advertisement and promotions. They have their own techniques and strategies in changing their advertisement which persuades customers.
Here in Butuan City the Jollibee has two branches. One is located in Gaisano Mall and other one is in J.C Aquino Avenue Butuan City. In terms of promotions, they distribute coupons as one their strategies in product promotions. Through this, customers can be able to purchase their product in a less cost and efforts. They also establish good customer service in such way that customers will patronize their and services.
Indeed they had planned to operate abroad to expand their business operation. Aside from establishing good service they had tried their very best to maintain the good quality and never the less improve and create new products. To motivate customers from local to national as well international.
Review of Related Literature
In order to provide direction, references and support to the study. Various literature and studies are presented.
Marketing practices commonly referred to the 4P’s of marketing. Which is composed of interrelated variables such as product, place, promotion and price that a company combines in order to satisfy a target market. Each 4P’s should be related and no single element must be independent to the other elements. Some written stressed that the interaction of 4P’s influence the buying decision making process of customers at profit-maximization level. However one of the famous writer emphasized that marketing practices adopted by a certain company defines positioning strategy in which the product greatly affects its acceptability and market performance.
Market competition helps business firms in improving the quality of its products and services. Those two cannot with the competition and quality fails in the end. However the bottom line is customer services. Food companies have been growing rapidly for many years and have increased the breadth depth of services provided. Jollibee Foods Corporation is a fast food restaurant chain based in the Philippines. Jollibee is the number one fast food chain in the Philippines, even beating the world’s most famous McDonalds. For many years the company is considered as one of the best run in the country. The company’s long-term marketing strategy, listing a number of consumer promotion and traffic-building schemes.
Jollibee is the leading fast food chain in the Philippines. Alone in the 1,686 stores worldwide, that means 207 stores abroad. In June 2008, Jollibee operates a total of 1,479. In June 2008, Jollibee to the presence of McDonalds operating also in the Philippines. Jollibee in terms of global market, Jollibee is a mouse among the elephants but in the Philippines Jollibee control over 80% share of hamburger and 55% fast food market as a whole. Market riches Jollibee develop products for their customer must also develop message tailored specially for their target customer. They use communication tools as a niche to reach their audience. They target groups customer so that it meets their customer needs than others. They are specialized in one cited by the Far Eastern Economic Review as number one employer in the Philippines. We are now globally well known. The Asian Wall Street Journal and Hewitt Associates ranked as third among all ASIA’s most admired companies in 2001. Recognized by the world Economic Forum as the “OVERALL LEADERSHIP” among the top 10 companies in the Philippines doing business in ASIA.
In the Philippines the term fast food is pretty much synonymous with the Jollibee brand. It took more than just one man for it to because that way but all it took to start was a man name Tony Tan Caktiong. He looked around the world and saw the King of success chains like McDonalds were having interested of opening a franchise for an existing fast food chain like Burger King or Wendy’s, he decided to expand with the opening of his own chain of his of hamburger. Serving fast food restaurant named Jollibee in 1978 since McDonalds hadn’t yet entered into the Philippines; Tony capitalized on his fact by establishing his brand among the Filipino people. Instead of trying to Lean everything from scratch, Tony traveled to the United States to lean the tricks of the trade from the already established chains such as McDonalds. By implementing these tried and true business practices back in the Philippines, Tony hard work began to pay off when his business began to rapidly expand. The division of Jollibee really tries to serve the specific needs of the Pilipino people and its culture by focusing its product development as well as its marketing and advertising to target the unique and traditional.
Today Tony Tan Caktiong serves as a success story and a role model for entrepreneur around the world. As to the Jollibee advertising in any business, no matter how you slice it, the more effective your advertising, the more successful you will be. The fast food industry is no different, and the people at the Jollibee Philippines definitely know what they’re doing when it comes to advertising. They know their target audience very well towards the typical family in the Philippines.
Though successful as it is, its story to involve the humblest of all beginning into one of the Philippines largest food service. In 1984, Jollibee reached the 500 Million sales rank. In 1987, barely 10 years in the business, the company joined the rank of the Philippines top 100 corporations. It then became the first Philippines fast food chain to break the 1 Billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippines Stock Exchange. Thus, broading its capitalization and laying the ground work to sustained expansion locally beyond the Philippines. Market share of more than of the entire local fast food industry. Aside from the Philippines Jollibee also had stores in US, Taiwan, Indonesia, Hongkong, Gaipan, Brunei and Vietnam. Economic conditions motivated product diversification, but expansion was driven by customer demand for uniquely flavored hamburger. Expansion come quickly to Jollibee’s do to management’s ability to capitalized on the company’s inner strengths and its philosophy t five F’s. Friend liners, flavorful food, flexibility in meeting customer demands, fun atmosphere and a focus on family. Management knew they had several core competencies in product offerings, quality and customer services as well as room for market expansion growth potential for Jollibee appeared to be limitless.
When it comes to family, they have made a concerted effort to make sure that Filipinos associates Jollibee with wholesome family meal. Not so much with nutritional sense (it is a fast food overall), but wholesome meaning that feeling you get inside your heart when you watch a perfect nuclear family with two parents. One boy and one girl enjoy the deliciousness of chicken joy on T.V. Jollibee is targeting two areas: both the pallete as well as the heart. It might strict to say that people will think that by going to Jollibee, this family can somehow transform and conform to this social norm. And yet, in the real world, when you walk into a Jollibee, you look around and many times that’s what you see: Filipino families congregating and enjoying their meal together. That is why at the end of the day, whether the advertising is effective or not. Jollibee keeps selling hamburgers and chicken joy, so they must be doing something right with their advertising. And the secret behind this success is it’s intangible factor that their targeting the person’s heart. In the end, it’s clear that the advertiser of Jollibee have been doing their research and know the Filipino culture very well. In addition to knowing the culture, I would go so far as to say they are contributing to the culture and changing it at the same time. Something not many companies can say. Now the trick will be to see how successful Jollibee International can be by learning how to cater to a country’s niche food desires the way Jollibee Philippines has.
You can achieve success in a multitude of market by making sure you have the attributes such as amount of capital market segment targeting, company founders held values and the employees who are hired, as well, have own enormous significance. Still something that many companies lack to take them to the next level is the organizational structure that allows the right people to be in the right place. There’s a saying that people goes. First you gotta have the right people on the bus. Then you gotta make sure each person on the bus is sitting the right seal that’s designed specifically for their unique strengths. At the beginning of 1994, Jollibee had the same idea occur when they introduced in a host of changes to their business. This changes were mostly focused on creating more structure and taking advantage of more resources. First of all they hired Tony Kitchener the first outsider vise president to handle their international operations. This was the key to move to separate Jollibee international from Jollibee Philippines. They introduced FSM’S known as Franchise Service Managers to help their franchise owner’s abreast of the new changes. These changes were aimed to creating a “world-class” view and you could see some of the changes visibly through the newly differentiated a dress code change as well as began to recruit from outside. These changes kept Jollibee a head of the game 10 years. Their success would be great as to garner the entrepreneur of the year award by Emst and young for founder Tony Tan Caktiong.
The Jollibee chose its mascot to be bright yellow and red, they are more than vibrant enough to catch the eye’s attention. These colors are expose to children who grow up on Jollibee begin a lifelong association bright yellow and red with delicious, affordable and fast food. Reminiscent of the memorable flavors of popular condiments for hamburger (or yumburgers) and hot dogs, the yellow and red bee named Jollibee’s smiling face is friendly enough to be a favorite among kids. And his face is prevalent in many locations that include playrooms foe children. This cartoon figure is aimed at the younger generation but it does not dominate the other generations.
Everyone loves a winner. As an entrepreneur, you want to see your small business succeed. You don’t have time for failure however, some business do fail. Like the Coca-Cola sweetened the recipe for their cola in 1985. Although many people liked the new taste; there was a vocal backlash. Within three months, the company reintroduced the original flavor as Coca-Cola Classics which was soon outselling New Coke. So if you a brand that people feel passionately about, you need to be careful about changing it. Customers of your small business help it grow, and you need to keep them loyal. Boo.com was an internet fashion retailer. Attempting to buy market share, the company burned through over $100M in eighteen months before running out of money. So keep a tight control of your budget. And now, that not all business models can transfer successfully from high street to the web. Another is the Barings Bank long before the credit crunch, another banking institution Barings Bank, the oldest Merchant Bank in London failed spectacularly. It collapsed in 1995 after Nick Leson cost 827mi speculating on futures contracts. It’s important to keep track of your small business assets and closely monitor your employees to make sure they are spender your money responsibly. The Sinclair C5 was launched in January 1985. It was a radical vehicle a battery-assisted pedal tricycle. Sir Clive Sinclair, its inventor thought it would revolutionize commuting. Seen as impractical and even dangerous, it failed to sell well and became the butt of many jokes. If your small business is too “out there”, you will have a difficult marketing task and a potential flop. Another is the McDonalds was intended for Catholics and couldn’t eat meat on Friday. It featured a slice of pineapple instead of a beef burger. When it was test marketed in 1963, it flopped. In contrast, McDonalds Filet-O-Fish (which contains fish rather than meat) has been much more successful. So if at first, you don’t succeed, change the formula and try again. Occasional minor failures in your small business help it adopt allowing you to try ideas before spending how much on them. Another is the Pony Express was set up in April 1860 to transport messages on horseback quickly across North America. The introduction of the First Transcontinental Telegraph provided a new means of communicating, and was far quicker and more reliable. The Pony Express ceased operation in October 1861, two days after the telegraph line opened. So if your small business relies on manual proceed, you need to automate them. Otherwise, your competitors will and you will have a business failure on your hands. ITV Digital in 1998, a consortium of three companies Carlton Television, Granada Television and B Sky B won a government auction to provide the world and first digital TV network. The service launched as on digital. B Sky B was later forced to withdraw and service was rebranded ITV, Digital ITV was direct competition with B Sky B’s Digital satellite television from the outset, and failed to compete. Despite a massive investment licensing the TV nights to the football League, ITV Digital went into administration in 2002. It’s difficult for new business to compete on equal terms with an established market leader. Kim Basinger bought a town in 1989, Kim Basinger bought the small town if Braselton, Georgia for $20M. Her intention was to build movie studios and most a film festival to attract tourists. This venture was never been successful. It highlights the importance of location, something you should be vigilant of in your own small business.
Significance of the Study
The study will benefit the following sectors of the community.
1. Jollibee Company
As one of the most beneficiary of this study the results of this study will provide them guidelines to help them improve their marketing practices to satisfy more the needs and expectations of their clients.
2. Jollibee Employees
The findings of this study will give them vital and vivid information on
satisfying clients as they avail their services. They can also use their skills and build better relationship towards clients, to be able to patronized the services offered by the business.
3. Customers
The findings of this study will make them become vigilant and aware of
How the marketing practices of the company persuade them and meet their satisfaction as clients.
4. Local Government
The study will serves as basis in the formulation of a certain business
operation specifically in the food Industry and will give them the idea to promote programs to help improve their services in order to meet clients expectations and also of the local government.
5. National Government
The study will give them guidelines in the formation of improving business
and help them provide more revenues as a result of the business.
Definition of Terms
Marketing practices- In this study this refers to the marketing process which is practiced by the company.
Product- In this study this refers to goods offered by the Jollibee Foods Corporation to the market.
Customer- In this study this refers to the operations executed by the company to satisfy their customer needs.
Pricing Strategy- In this study this refers to how Jollibee Foods Corporation label their prices into their products.
Product Innovation- In this study this refers to the development of the company product and to how it is being innovated.
Competitive Advantage- In this study this refers to the company advantage compared to any other competing company.
Comparative Advantage- In this study this refers to the comparison of Jollibee Foods Corporation among other company.
Sales- In this study this refers to the quantity of the sales of Jollibee Food Corporation.
Production- In this study this refers to the production output of Jollibee Food Corporation in implementing their strategies.
Research Methodology
This study utilized the descriptive method of research, specifically the descriptive survey method using a researcher-made questionnaire for data gathering. These questionnaires were distributed to specific respondents and retrieve after being filled up. Gathered data were tallied and tabulated for presentation, interpretation and analysis. The collection of data was complemented with unstructured interviews to verify and clarify some items which were not very clear to the respondents.
Research Environment
This study was conducted in FSUU, Butuan City. FSUU was founded on October 21, 1901 by Fr. Saturnino Urios, a Jesuit missionary. He was popularly known as the Apostle of Agusan because he converted the natives to Christianity.
The institution started as the Butuan Parochial School catering primarily to boys. The missionaries of the Sacred Heart (MSC) took over the area of Agusan from the Jesuits in 1935. Then, World War II came and the school was closed. After the war, Fr. Antonies Jansen, MSC, became the parish priest of Butuan and subsequently restored the parochial school. He became the rector up to 1947. The school was renamed Fr. Urios High School. The MSC fathers administered the school until 1976.
The MSC fathers were generous, affectionate, and accommodating. The management of the school under the MSC administration was benevolent authoritarian. The policies were determined by the MSC administration. Rev. Fr. Harry Engelen, the last MSC Dutch Rector made the school financially stable. He established the Faculty management Program and gave salary increases.
A lay president, Dr. Juanito A. Lao, was appointed I 1976 pursuant to the introduction of the Filipinization Law wherein foreigners had to cease from administering schools in the Philippines. The lay president administered the school for 22 years, from 1976 to 1998.
Msgr. Juan de Dios Pueblos, the archbishop of Butuan became the successor of Dr. Lao from 1998 until 2004, and Rev. Fr. John Christian U. Young followed, until the present.
Over the years, the student population increased, particularly in the college department. The development prompted the enhancement of the college’s pool of educators, as well as the corresponding expansion and upgrading of its facilities and curricular offerings. From its humble beginning, FSUU continues to evolve into one of the leading educational institutions in the province of Agusan.
As a response to the continuously increasing number of students, and the need to have more classrooms and facilities, an Industrial technology laboratory in a four-storey building will be constructed in June 2006. This is also in preparation for the university status of the school levels which will be located in Libertad, Butuan City, three kilometers away from the main campus.
Presently, the school offers eight (8) programs aside from the elementary and high school: Commerce, Accountancy, Engineering, Computer Studies, Nursing, Art and Sciences, Teachers Education, and College of Law. The school also offers Graduate and Post-Graduate Programs such as Master in Business Administration, Master in Public Administration, Master of Arts in Educational Management, Master of Science in Nursing and Doctor in Management and Doctor in Philosophy in Education.
From 1901 to the present, FSUU, as a Catholic educational institution, continues to invention a community of men and women committed to the pursue to work of Christ for the wholeness of society.
Research Respondents
The respondents of this study were the administrators, academic and non-academic personnel and selected senior students of FSUU, Butuan City, The researcher took only fifty (50) percent from the total number of population as respondents and they were chosen truth random sampling.
The administrators include the Vice-Presidents, Deans, Chairpersons, and Directors of different offices. Out of twenty four (24) total number of school administrators only twelve (12) or fifty (50) percent were chosen to be respondents. The academic personnel were also included as respondents in this study. There were one hundred sixty identified academic and non-academic and only 80 of 50% were chosen as the respondents of this study. The researcher included the 50% of the graduating students in every program offered by the school. For Commerce Program, there were two hundred (200) identified graduating students in which the researcher utilized the one hundred (100) graduating students only. For Computer Studies Program, there were forty six (46) graduating students and the researcher only got twenty three as respondents. In the Accountancy Program, there were fifty-eight (58) identified graduating students and only twenty-nine were chosen as respondents. Engineering had only sixty-eight wherein thirty-four (34) were included, Arts and Sciences Program had eighteen (18) while only nine were included. Nursing had two hundred fourteen (214) identified graduating students where one hundred seven were included. Teacher’s Education had eighty (80) identified graduating students where there were only forty (40) students were included and Bachelors of Law had twenty-eight (28) graduating students where fourteen (14) students were included as respondents of this study. Overall, there were three hundred fifty six total number of senior students included in this study. Although the schools offer graduate programs but these were not included because they conducted classes during weekend onl
Table 1
Research Respondents
Respondents
N
Percentage
Administrators
12
2.68
Faculty and Staff
80
17.85
Selected Senior Students
356
79.47
Total
448
100.00
Research Instruments
This study used researcher-made questionnaire which is an adaption from the PAASCU self-survey instrument, the Institutional Monitoring and Evaluation for Quality assurance in Higher Education (IQuAME) and items from the Malcom Baldridge National Quality Award Self Evaluation Questionnaire. The researcher-made questionnaire was divided into six areas namely: Strategic Planning, Administration, Governance and Management, Management of Resources, Support for Students, Quality of Teaching and Research, and Community Involvement. There were two sets of questionnaires. The first set included all the above-mentioned areas which were answered by the administrators, academic and non-academic personnel. The other set of questionnaires included only three areas: Support for Students, Quality of Teaching and Research which were answered by the selected senior students from the different programs.
Validity and Reliability of Instruments
To the check on the construct validity the instruments were presented and approved by the panel.
Research Procedures
Survey questionnaires were distributed to the identified respondents to gather data. Gathered data were tabulated and tallied for presentation, analysis and interpretation.
Dry Run Procedures
In order to determine the functionality of the researcher-made instruments as a means of data collection, the researcher conducted a dry run among respondents from FSUU , ten senior college students, three administrators, and seven academic and non-academic personnel who were not included in the actual study. The instruments were distributed among the respondents who were given sufficient time to fulfill them up. After this, the accomplished questionnaires were retrieved. The responses were tallied and tabulated an item analysis of the results were conducted in order to determine the trend of responses.
After all items were answered within a reasonable range of variation, the instruments were then finalized for administration.
Gathering Data
The researchers sought permission from the President of FSUU, through the HRMDO Director to conduct the study and to administer the questionnaires. Then, distribution of the questionnaires to the respondents followed upon the approval of the request. Structured interviews were made in order to check and verify responses and findings. The following included the procedures undertaken in the study:
1. Permission from the President of FSUU through the HRMDO Director to undertake the study was done.
2. Planning and developing the research instrument followed.
3. Establishing the validity and reliability
4. Distribution and Retrieval of data gathering tools
5. Analyzing and interpreting of the data
Treatment of Data
For purposes of analyzing and interpreting the collected data, the respondents were divided into four groups: Administrators, Academic Personnel, Non-Academic Personnel and Selected Senior Students.
The weighted mean of each item in the statement of the problem number 1 and 2 was determined through the weighted average mean using the following formula:
Where
F=frequency
n=total observation
t-tests was also used in the computation of the hypothesis test based on the formula presented below:
t=
where = mean of the first sample
= mean of the second sample
= standards deviation of the first sample
= standard deviation of the second sample
= number of items in the first sample
= number of items in the second sample
For the purposes of arriving at a definite interpretation of the scales in each questionnaire, the researcher used the following hypothetical mean range:
Weights Hypothetical Range Interpretation
4 3.25-4.00 - To a Very Great Extent (VGE)
3 2.50-3.24 - To a Great Extent (GE)
2 1.75-2.49 -To a Moderate Extent (ME)
1 1.00-1.74 - Not Practiced (NP)
Dear Respondents:
We are conducting a study on “The Marketing Practices of Jollibee Foods Corporation” and we need your cooperation to make this study successful. Rest assured that the data information you have shared to us will be valued and treated with at most confidentiality. Thank You.
Questionnaires
1. What are the marketing practices of Jollibee Foods Corporation in terms of:
1.1 Products
a. What are the products that are commonly demanded by the customer?
Fries
Hamburger
Fried Chicken
Jolly Spaghetti
If others pls. specify _________________
b. What are the products being offered by the company?
Fries
Hamburger
Fried Chicken
Jolly Spaghetti
If others pls. specify _________________
c. How they maintain the quality of their products?
By having a constant supplier to produce the raw materials needed.
By always providing the complete ingredients of the products.
By giving the product a perfect form and shape.
All of the above
None of the above
If others pls. specify _________________
d. How do their products maintain their customers loyalty?
By giving quality delicious products.
By providing incomparable taste of product.
By giving a world class quality of product.
All of the above
None of the above
If others pls. specify _________________
e. How do their products affects their customer loyalty?
It motivates customers to be loyal bec. of the taste of the product.
It encourages customers to patronize not just the product but as
well as the company.
It makes the children love the food offered by Jollibee.
All of the above
None of the above
If others pls. specify _________________
1.2 Pricing Strategies
a. Is there any standards used in pricing the products?
Yes No
b. Is there any monitoring in product pricing?
Yes No
c. Do they maintain a mark-up price with regards to the product they
produce?
Yes No
d. Do they label their prices according to the cost of their products?
Yes No
e. Do they label their product based on the competing product which other
produce?
Yes No
1.3 Product Information
a. What are the strategies used in product innovation?
Hiring famous Chef
Having some experimentation
Maximizing an existing product to create a new product
All of the above
None of the above
If others pls. specify _________________
b. Is there any standards used in product innovation?
Yes No
c. how do innovated products encourage the customers to patronize the
company?
By giving the company the accountability for something new to
offer.
By giving new taste to the customers.
By giving benefits of the doubt if weather the products is good or
not.
All of the above
None of the above
If others pls. specify _________________
d. Is the motivated products always effective to the customers?
Yes No
e. How does their innovated product increased their production sales?
By encouraging customers to purchase the newly enhance product
By providing something new to offer
By giving the customers a new choice for food
All of the above
None of the above
If others pls. specify _________________
1.4 Customers Service
a. What are the strategies used in terms of customer service?
Make the customer feel comfortable when they enter the establishment.
Deliver the food on time
Make them feel as if they were the King and Queen of the
establishment.
All of the above
None of the above
If others pls. specify _________________
b. Is there any standards in terms of customer service?
Yes No
c. What are the common practices they used in customer service?
Keep the place clean
On time delivery of food
Hospitable treatment of the crew or staff
All of the above
None of the above
If others pls. specify _________________
d. How they maintain their customer service?
By always reminding the crew or staff about customer service.
By giving a reward for the crew or staff who gave most of customer
service.
By putting customer service into their code of ethics.
All of the above
None of the above
If others pls. specify _________________
e. Is customer service important unto their establishment?
Yes No
A Thesis Proposal to be submitted to the Dean and Faculty of Business Administration Program of Father Saturnino Urios University
The Researchers:
Statement of the problem
The study attempts to investigate the marketing practices of Jollibee Foods Corporation.
Specifically, the study will seek an answer to the following:
1. What are the marketing practices of Jollibee foods corporation in terms of
1.1 Products and services
1.2 Pricing strategies
1.3 Product innovation
1.4 Customer service
2. Does the marketing practices of Jollibee foods corporation create a competitive and comparative advantage in terms of:
2.1 Products and services
2.2 Pricing strategies
2.3 product innovation
2.4 Customer service
3. Does the marketing practices of Jollibee Foods Corporation affects their sales and production?
Research Paradigm
Input Process Expected output
Marketing practices in terms of:
• Products and services
• Pricing strategies
• Product innovation
• Customer service
• Interview
• Formulate questionnaire
• Distribute Customers
• Tabulation of data
• Presentation of data
• Analysis and interpretation
Proposed marketing strategies that are more effective than what they have at this time for improvement.
Chapter 1
The Problem and Its Scope
Introduction
Marketing practices is a one way of establishing the company to make the product more saleable. It focuses on providing accurate information so that they can make informed decisions for the strategies they will implement.
Jollibee Foods Corporation is one of the most competitive and progressive food establishments in the country. They have conquered different areas nationwide. Having almost thousands branches in the country. They have offered a lot of products which are accepted by masses, such as spaghetti, hamburger and fried chicken. They always have product innovation and promote it nationwide through their various advertisement and promotions. They have their own techniques and strategies in changing their advertisement which persuades customers.
Here in Butuan City the Jollibee has two branches. One is located in Gaisano Mall and other one is in J.C Aquino Avenue Butuan City. In terms of promotions, they distribute coupons as one their strategies in product promotions. Through this, customers can be able to purchase their product in a less cost and efforts. They also establish good customer service in such way that customers will patronize their and services.
Indeed they had planned to operate abroad to expand their business operation. Aside from establishing good service they had tried their very best to maintain the good quality and never the less improve and create new products. To motivate customers from local to national as well international.
Review of Related Literature
In order to provide direction, references and support to the study. Various literature and studies are presented.
Marketing practices commonly referred to the 4P’s of marketing. Which is composed of interrelated variables such as product, place, promotion and price that a company combines in order to satisfy a target market. Each 4P’s should be related and no single element must be independent to the other elements. Some written stressed that the interaction of 4P’s influence the buying decision making process of customers at profit-maximization level. However one of the famous writer emphasized that marketing practices adopted by a certain company defines positioning strategy in which the product greatly affects its acceptability and market performance.
Market competition helps business firms in improving the quality of its products and services. Those two cannot with the competition and quality fails in the end. However the bottom line is customer services. Food companies have been growing rapidly for many years and have increased the breadth depth of services provided. Jollibee Foods Corporation is a fast food restaurant chain based in the Philippines. Jollibee is the number one fast food chain in the Philippines, even beating the world’s most famous McDonalds. For many years the company is considered as one of the best run in the country. The company’s long-term marketing strategy, listing a number of consumer promotion and traffic-building schemes.
Jollibee is the leading fast food chain in the Philippines. Alone in the 1,686 stores worldwide, that means 207 stores abroad. In June 2008, Jollibee operates a total of 1,479. In June 2008, Jollibee to the presence of McDonalds operating also in the Philippines. Jollibee in terms of global market, Jollibee is a mouse among the elephants but in the Philippines Jollibee control over 80% share of hamburger and 55% fast food market as a whole. Market riches Jollibee develop products for their customer must also develop message tailored specially for their target customer. They use communication tools as a niche to reach their audience. They target groups customer so that it meets their customer needs than others. They are specialized in one cited by the Far Eastern Economic Review as number one employer in the Philippines. We are now globally well known. The Asian Wall Street Journal and Hewitt Associates ranked as third among all ASIA’s most admired companies in 2001. Recognized by the world Economic Forum as the “OVERALL LEADERSHIP” among the top 10 companies in the Philippines doing business in ASIA.
In the Philippines the term fast food is pretty much synonymous with the Jollibee brand. It took more than just one man for it to because that way but all it took to start was a man name Tony Tan Caktiong. He looked around the world and saw the King of success chains like McDonalds were having interested of opening a franchise for an existing fast food chain like Burger King or Wendy’s, he decided to expand with the opening of his own chain of his of hamburger. Serving fast food restaurant named Jollibee in 1978 since McDonalds hadn’t yet entered into the Philippines; Tony capitalized on his fact by establishing his brand among the Filipino people. Instead of trying to Lean everything from scratch, Tony traveled to the United States to lean the tricks of the trade from the already established chains such as McDonalds. By implementing these tried and true business practices back in the Philippines, Tony hard work began to pay off when his business began to rapidly expand. The division of Jollibee really tries to serve the specific needs of the Pilipino people and its culture by focusing its product development as well as its marketing and advertising to target the unique and traditional.
Today Tony Tan Caktiong serves as a success story and a role model for entrepreneur around the world. As to the Jollibee advertising in any business, no matter how you slice it, the more effective your advertising, the more successful you will be. The fast food industry is no different, and the people at the Jollibee Philippines definitely know what they’re doing when it comes to advertising. They know their target audience very well towards the typical family in the Philippines.
Though successful as it is, its story to involve the humblest of all beginning into one of the Philippines largest food service. In 1984, Jollibee reached the 500 Million sales rank. In 1987, barely 10 years in the business, the company joined the rank of the Philippines top 100 corporations. It then became the first Philippines fast food chain to break the 1 Billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippines Stock Exchange. Thus, broading its capitalization and laying the ground work to sustained expansion locally beyond the Philippines. Market share of more than of the entire local fast food industry. Aside from the Philippines Jollibee also had stores in US, Taiwan, Indonesia, Hongkong, Gaipan, Brunei and Vietnam. Economic conditions motivated product diversification, but expansion was driven by customer demand for uniquely flavored hamburger. Expansion come quickly to Jollibee’s do to management’s ability to capitalized on the company’s inner strengths and its philosophy t five F’s. Friend liners, flavorful food, flexibility in meeting customer demands, fun atmosphere and a focus on family. Management knew they had several core competencies in product offerings, quality and customer services as well as room for market expansion growth potential for Jollibee appeared to be limitless.
When it comes to family, they have made a concerted effort to make sure that Filipinos associates Jollibee with wholesome family meal. Not so much with nutritional sense (it is a fast food overall), but wholesome meaning that feeling you get inside your heart when you watch a perfect nuclear family with two parents. One boy and one girl enjoy the deliciousness of chicken joy on T.V. Jollibee is targeting two areas: both the pallete as well as the heart. It might strict to say that people will think that by going to Jollibee, this family can somehow transform and conform to this social norm. And yet, in the real world, when you walk into a Jollibee, you look around and many times that’s what you see: Filipino families congregating and enjoying their meal together. That is why at the end of the day, whether the advertising is effective or not. Jollibee keeps selling hamburgers and chicken joy, so they must be doing something right with their advertising. And the secret behind this success is it’s intangible factor that their targeting the person’s heart. In the end, it’s clear that the advertiser of Jollibee have been doing their research and know the Filipino culture very well. In addition to knowing the culture, I would go so far as to say they are contributing to the culture and changing it at the same time. Something not many companies can say. Now the trick will be to see how successful Jollibee International can be by learning how to cater to a country’s niche food desires the way Jollibee Philippines has.
You can achieve success in a multitude of market by making sure you have the attributes such as amount of capital market segment targeting, company founders held values and the employees who are hired, as well, have own enormous significance. Still something that many companies lack to take them to the next level is the organizational structure that allows the right people to be in the right place. There’s a saying that people goes. First you gotta have the right people on the bus. Then you gotta make sure each person on the bus is sitting the right seal that’s designed specifically for their unique strengths. At the beginning of 1994, Jollibee had the same idea occur when they introduced in a host of changes to their business. This changes were mostly focused on creating more structure and taking advantage of more resources. First of all they hired Tony Kitchener the first outsider vise president to handle their international operations. This was the key to move to separate Jollibee international from Jollibee Philippines. They introduced FSM’S known as Franchise Service Managers to help their franchise owner’s abreast of the new changes. These changes were aimed to creating a “world-class” view and you could see some of the changes visibly through the newly differentiated a dress code change as well as began to recruit from outside. These changes kept Jollibee a head of the game 10 years. Their success would be great as to garner the entrepreneur of the year award by Emst and young for founder Tony Tan Caktiong.
The Jollibee chose its mascot to be bright yellow and red, they are more than vibrant enough to catch the eye’s attention. These colors are expose to children who grow up on Jollibee begin a lifelong association bright yellow and red with delicious, affordable and fast food. Reminiscent of the memorable flavors of popular condiments for hamburger (or yumburgers) and hot dogs, the yellow and red bee named Jollibee’s smiling face is friendly enough to be a favorite among kids. And his face is prevalent in many locations that include playrooms foe children. This cartoon figure is aimed at the younger generation but it does not dominate the other generations.
Everyone loves a winner. As an entrepreneur, you want to see your small business succeed. You don’t have time for failure however, some business do fail. Like the Coca-Cola sweetened the recipe for their cola in 1985. Although many people liked the new taste; there was a vocal backlash. Within three months, the company reintroduced the original flavor as Coca-Cola Classics which was soon outselling New Coke. So if you a brand that people feel passionately about, you need to be careful about changing it. Customers of your small business help it grow, and you need to keep them loyal. Boo.com was an internet fashion retailer. Attempting to buy market share, the company burned through over $100M in eighteen months before running out of money. So keep a tight control of your budget. And now, that not all business models can transfer successfully from high street to the web. Another is the Barings Bank long before the credit crunch, another banking institution Barings Bank, the oldest Merchant Bank in London failed spectacularly. It collapsed in 1995 after Nick Leson cost 827mi speculating on futures contracts. It’s important to keep track of your small business assets and closely monitor your employees to make sure they are spender your money responsibly. The Sinclair C5 was launched in January 1985. It was a radical vehicle a battery-assisted pedal tricycle. Sir Clive Sinclair, its inventor thought it would revolutionize commuting. Seen as impractical and even dangerous, it failed to sell well and became the butt of many jokes. If your small business is too “out there”, you will have a difficult marketing task and a potential flop. Another is the McDonalds was intended for Catholics and couldn’t eat meat on Friday. It featured a slice of pineapple instead of a beef burger. When it was test marketed in 1963, it flopped. In contrast, McDonalds Filet-O-Fish (which contains fish rather than meat) has been much more successful. So if at first, you don’t succeed, change the formula and try again. Occasional minor failures in your small business help it adopt allowing you to try ideas before spending how much on them. Another is the Pony Express was set up in April 1860 to transport messages on horseback quickly across North America. The introduction of the First Transcontinental Telegraph provided a new means of communicating, and was far quicker and more reliable. The Pony Express ceased operation in October 1861, two days after the telegraph line opened. So if your small business relies on manual proceed, you need to automate them. Otherwise, your competitors will and you will have a business failure on your hands. ITV Digital in 1998, a consortium of three companies Carlton Television, Granada Television and B Sky B won a government auction to provide the world and first digital TV network. The service launched as on digital. B Sky B was later forced to withdraw and service was rebranded ITV, Digital ITV was direct competition with B Sky B’s Digital satellite television from the outset, and failed to compete. Despite a massive investment licensing the TV nights to the football League, ITV Digital went into administration in 2002. It’s difficult for new business to compete on equal terms with an established market leader. Kim Basinger bought a town in 1989, Kim Basinger bought the small town if Braselton, Georgia for $20M. Her intention was to build movie studios and most a film festival to attract tourists. This venture was never been successful. It highlights the importance of location, something you should be vigilant of in your own small business.
Significance of the Study
The study will benefit the following sectors of the community.
1. Jollibee Company
As one of the most beneficiary of this study the results of this study will provide them guidelines to help them improve their marketing practices to satisfy more the needs and expectations of their clients.
2. Jollibee Employees
The findings of this study will give them vital and vivid information on
satisfying clients as they avail their services. They can also use their skills and build better relationship towards clients, to be able to patronized the services offered by the business.
3. Customers
The findings of this study will make them become vigilant and aware of
How the marketing practices of the company persuade them and meet their satisfaction as clients.
4. Local Government
The study will serves as basis in the formulation of a certain business
operation specifically in the food Industry and will give them the idea to promote programs to help improve their services in order to meet clients expectations and also of the local government.
5. National Government
The study will give them guidelines in the formation of improving business
and help them provide more revenues as a result of the business.
Definition of Terms
Marketing practices- In this study this refers to the marketing process which is practiced by the company.
Product- In this study this refers to goods offered by the Jollibee Foods Corporation to the market.
Customer- In this study this refers to the operations executed by the company to satisfy their customer needs.
Pricing Strategy- In this study this refers to how Jollibee Foods Corporation label their prices into their products.
Product Innovation- In this study this refers to the development of the company product and to how it is being innovated.
Competitive Advantage- In this study this refers to the company advantage compared to any other competing company.
Comparative Advantage- In this study this refers to the comparison of Jollibee Foods Corporation among other company.
Sales- In this study this refers to the quantity of the sales of Jollibee Food Corporation.
Production- In this study this refers to the production output of Jollibee Food Corporation in implementing their strategies.
Research Methodology
This study utilized the descriptive method of research, specifically the descriptive survey method using a researcher-made questionnaire for data gathering. These questionnaires were distributed to specific respondents and retrieve after being filled up. Gathered data were tallied and tabulated for presentation, interpretation and analysis. The collection of data was complemented with unstructured interviews to verify and clarify some items which were not very clear to the respondents.
Research Environment
This study was conducted in FSUU, Butuan City. FSUU was founded on October 21, 1901 by Fr. Saturnino Urios, a Jesuit missionary. He was popularly known as the Apostle of Agusan because he converted the natives to Christianity.
The institution started as the Butuan Parochial School catering primarily to boys. The missionaries of the Sacred Heart (MSC) took over the area of Agusan from the Jesuits in 1935. Then, World War II came and the school was closed. After the war, Fr. Antonies Jansen, MSC, became the parish priest of Butuan and subsequently restored the parochial school. He became the rector up to 1947. The school was renamed Fr. Urios High School. The MSC fathers administered the school until 1976.
The MSC fathers were generous, affectionate, and accommodating. The management of the school under the MSC administration was benevolent authoritarian. The policies were determined by the MSC administration. Rev. Fr. Harry Engelen, the last MSC Dutch Rector made the school financially stable. He established the Faculty management Program and gave salary increases.
A lay president, Dr. Juanito A. Lao, was appointed I 1976 pursuant to the introduction of the Filipinization Law wherein foreigners had to cease from administering schools in the Philippines. The lay president administered the school for 22 years, from 1976 to 1998.
Msgr. Juan de Dios Pueblos, the archbishop of Butuan became the successor of Dr. Lao from 1998 until 2004, and Rev. Fr. John Christian U. Young followed, until the present.
Over the years, the student population increased, particularly in the college department. The development prompted the enhancement of the college’s pool of educators, as well as the corresponding expansion and upgrading of its facilities and curricular offerings. From its humble beginning, FSUU continues to evolve into one of the leading educational institutions in the province of Agusan.
As a response to the continuously increasing number of students, and the need to have more classrooms and facilities, an Industrial technology laboratory in a four-storey building will be constructed in June 2006. This is also in preparation for the university status of the school levels which will be located in Libertad, Butuan City, three kilometers away from the main campus.
Presently, the school offers eight (8) programs aside from the elementary and high school: Commerce, Accountancy, Engineering, Computer Studies, Nursing, Art and Sciences, Teachers Education, and College of Law. The school also offers Graduate and Post-Graduate Programs such as Master in Business Administration, Master in Public Administration, Master of Arts in Educational Management, Master of Science in Nursing and Doctor in Management and Doctor in Philosophy in Education.
From 1901 to the present, FSUU, as a Catholic educational institution, continues to invention a community of men and women committed to the pursue to work of Christ for the wholeness of society.
Research Respondents
The respondents of this study were the administrators, academic and non-academic personnel and selected senior students of FSUU, Butuan City, The researcher took only fifty (50) percent from the total number of population as respondents and they were chosen truth random sampling.
The administrators include the Vice-Presidents, Deans, Chairpersons, and Directors of different offices. Out of twenty four (24) total number of school administrators only twelve (12) or fifty (50) percent were chosen to be respondents. The academic personnel were also included as respondents in this study. There were one hundred sixty identified academic and non-academic and only 80 of 50% were chosen as the respondents of this study. The researcher included the 50% of the graduating students in every program offered by the school. For Commerce Program, there were two hundred (200) identified graduating students in which the researcher utilized the one hundred (100) graduating students only. For Computer Studies Program, there were forty six (46) graduating students and the researcher only got twenty three as respondents. In the Accountancy Program, there were fifty-eight (58) identified graduating students and only twenty-nine were chosen as respondents. Engineering had only sixty-eight wherein thirty-four (34) were included, Arts and Sciences Program had eighteen (18) while only nine were included. Nursing had two hundred fourteen (214) identified graduating students where one hundred seven were included. Teacher’s Education had eighty (80) identified graduating students where there were only forty (40) students were included and Bachelors of Law had twenty-eight (28) graduating students where fourteen (14) students were included as respondents of this study. Overall, there were three hundred fifty six total number of senior students included in this study. Although the schools offer graduate programs but these were not included because they conducted classes during weekend onl
Table 1
Research Respondents
Respondents
N
Percentage
Administrators
12
2.68
Faculty and Staff
80
17.85
Selected Senior Students
356
79.47
Total
448
100.00
Research Instruments
This study used researcher-made questionnaire which is an adaption from the PAASCU self-survey instrument, the Institutional Monitoring and Evaluation for Quality assurance in Higher Education (IQuAME) and items from the Malcom Baldridge National Quality Award Self Evaluation Questionnaire. The researcher-made questionnaire was divided into six areas namely: Strategic Planning, Administration, Governance and Management, Management of Resources, Support for Students, Quality of Teaching and Research, and Community Involvement. There were two sets of questionnaires. The first set included all the above-mentioned areas which were answered by the administrators, academic and non-academic personnel. The other set of questionnaires included only three areas: Support for Students, Quality of Teaching and Research which were answered by the selected senior students from the different programs.
Validity and Reliability of Instruments
To the check on the construct validity the instruments were presented and approved by the panel.
Research Procedures
Survey questionnaires were distributed to the identified respondents to gather data. Gathered data were tabulated and tallied for presentation, analysis and interpretation.
Dry Run Procedures
In order to determine the functionality of the researcher-made instruments as a means of data collection, the researcher conducted a dry run among respondents from FSUU , ten senior college students, three administrators, and seven academic and non-academic personnel who were not included in the actual study. The instruments were distributed among the respondents who were given sufficient time to fulfill them up. After this, the accomplished questionnaires were retrieved. The responses were tallied and tabulated an item analysis of the results were conducted in order to determine the trend of responses.
After all items were answered within a reasonable range of variation, the instruments were then finalized for administration.
Gathering Data
The researchers sought permission from the President of FSUU, through the HRMDO Director to conduct the study and to administer the questionnaires. Then, distribution of the questionnaires to the respondents followed upon the approval of the request. Structured interviews were made in order to check and verify responses and findings. The following included the procedures undertaken in the study:
1. Permission from the President of FSUU through the HRMDO Director to undertake the study was done.
2. Planning and developing the research instrument followed.
3. Establishing the validity and reliability
4. Distribution and Retrieval of data gathering tools
5. Analyzing and interpreting of the data
Treatment of Data
For purposes of analyzing and interpreting the collected data, the respondents were divided into four groups: Administrators, Academic Personnel, Non-Academic Personnel and Selected Senior Students.
The weighted mean of each item in the statement of the problem number 1 and 2 was determined through the weighted average mean using the following formula:
Where
F=frequency
n=total observation
t-tests was also used in the computation of the hypothesis test based on the formula presented below:
t=
where = mean of the first sample
= mean of the second sample
= standards deviation of the first sample
= standard deviation of the second sample
= number of items in the first sample
= number of items in the second sample
For the purposes of arriving at a definite interpretation of the scales in each questionnaire, the researcher used the following hypothetical mean range:
Weights Hypothetical Range Interpretation
4 3.25-4.00 - To a Very Great Extent (VGE)
3 2.50-3.24 - To a Great Extent (GE)
2 1.75-2.49 -To a Moderate Extent (ME)
1 1.00-1.74 - Not Practiced (NP)
Dear Respondents:
We are conducting a study on “The Marketing Practices of Jollibee Foods Corporation” and we need your cooperation to make this study successful. Rest assured that the data information you have shared to us will be valued and treated with at most confidentiality. Thank You.
Questionnaires
1. What are the marketing practices of Jollibee Foods Corporation in terms of:
1.1 Products
a. What are the products that are commonly demanded by the customer?
Fries
Hamburger
Fried Chicken
Jolly Spaghetti
If others pls. specify _________________
b. What are the products being offered by the company?
Fries
Hamburger
Fried Chicken
Jolly Spaghetti
If others pls. specify _________________
c. How they maintain the quality of their products?
By having a constant supplier to produce the raw materials needed.
By always providing the complete ingredients of the products.
By giving the product a perfect form and shape.
All of the above
None of the above
If others pls. specify _________________
d. How do their products maintain their customers loyalty?
By giving quality delicious products.
By providing incomparable taste of product.
By giving a world class quality of product.
All of the above
None of the above
If others pls. specify _________________
e. How do their products affects their customer loyalty?
It motivates customers to be loyal bec. of the taste of the product.
It encourages customers to patronize not just the product but as
well as the company.
It makes the children love the food offered by Jollibee.
All of the above
None of the above
If others pls. specify _________________
1.2 Pricing Strategies
a. Is there any standards used in pricing the products?
Yes No
b. Is there any monitoring in product pricing?
Yes No
c. Do they maintain a mark-up price with regards to the product they
produce?
Yes No
d. Do they label their prices according to the cost of their products?
Yes No
e. Do they label their product based on the competing product which other
produce?
Yes No
1.3 Product Information
a. What are the strategies used in product innovation?
Hiring famous Chef
Having some experimentation
Maximizing an existing product to create a new product
All of the above
None of the above
If others pls. specify _________________
b. Is there any standards used in product innovation?
Yes No
c. how do innovated products encourage the customers to patronize the
company?
By giving the company the accountability for something new to
offer.
By giving new taste to the customers.
By giving benefits of the doubt if weather the products is good or
not.
All of the above
None of the above
If others pls. specify _________________
d. Is the motivated products always effective to the customers?
Yes No
e. How does their innovated product increased their production sales?
By encouraging customers to purchase the newly enhance product
By providing something new to offer
By giving the customers a new choice for food
All of the above
None of the above
If others pls. specify _________________
1.4 Customers Service
a. What are the strategies used in terms of customer service?
Make the customer feel comfortable when they enter the establishment.
Deliver the food on time
Make them feel as if they were the King and Queen of the
establishment.
All of the above
None of the above
If others pls. specify _________________
b. Is there any standards in terms of customer service?
Yes No
c. What are the common practices they used in customer service?
Keep the place clean
On time delivery of food
Hospitable treatment of the crew or staff
All of the above
None of the above
If others pls. specify _________________
d. How they maintain their customer service?
By always reminding the crew or staff about customer service.
By giving a reward for the crew or staff who gave most of customer
service.
By putting customer service into their code of ethics.
All of the above
None of the above
If others pls. specify _________________
e. Is customer service important unto their establishment?
Yes No
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