Ram Felix Rengel, Jr.
Jollibee is one of the Philippines' phenomenal business success stories. Starting in 1975 as a two-branch ice cream parlor, it later expanded its menu to include hot sandwiches and other meals. With encouraging success, Jollibee Foods Corporation was incorporated in 1978 with seven outlets to fully explore the possibilities of a hamburger concept. Thus was born the company that revolutionized the fast food industry in the Philippines.
In 1984, Jollibee reached the P500 million sales mark, catapulting the company into the list of Top 500 Philippine Corporations. In 1987, barely 10 years in the business, the company joined the ranks of the Philippines' Top 100 Corporations. It then became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines.
Jollibee is the country's leading fast food chain. The size, geographic expanse and breadth of the company's operations have grown exponentially - from a handful of Jollibee stores twenty-five years ago to over 400 stores in the Philippines and several international stores in countries like the United States and Hong Kong. It is now an international brand with phenomenal milestones that has made millions of Filipinos proud.
But Jollibee's leadership is not only reflected by market share (the company enjoys more than half of the entire fast food industry); numerous local and global awards attest to this as well.
In line with its long-term goal to be the dominant food service leader in the country, the company acquired Greenwich Pizza in 1994 enabling it to penetrate the pizza-pasta segment. From a 50-branch operation, Greenwich has established a strong presence in the food service industry. A year later the company acquired the franchise of Delifrance, an international food company. This further expanded its penetration in the food service industry particularly in the French caf魢akery, a growing segment of the Philippine food market. In 2000, the strategic acquisition of Chowking solidified the company's position as the dominant leader and allowed it to have leadership in a major fast food market - the Oriental quick service restaurant segment. The incorporation has revitalized Chowking; providing a platform for the growth of the business and further increasing the enterprise value of the Jollibee Group.
The foundation of Jollibee's rapid growth has been its strategy to establish dominant market coverage complemented by its superior menu line-up, creative marketing programs and efficient manufacturing and logistics facilities in support of its widening restaurant chain. It is powered by teams of well-trained individuals embracing the culture of integrity and humility, working in a family-like environment of fun and togetherness.
As a corporate citizen, Jollibee is also committed to serve its host communities. The company not only nourishes bodies but also people's spirits through countless socio-civic projects.
Jollibee dedicates its continuous success to those who have supported the company from the very start - the Filipino people.
Jollibee has grown to be so well loved that every time a new store is opened, especially overseas, Filipinos form long queues to the store without fail. It is not just a place where they feel at home; it is a stronghold of heritage, a monument of Filipino victory.
Operations
From a modest beginning, Jollibee has grown to become not only the number one fast food chain in the Philippines with over 400 stores nationwide, but is also an international brand that has the distinction of being one of the world's most admired companies by the Far Eastern Economic Review. But Jollibee is not stopping here. To reinforce Jollibee's capability to enhance it leadership and build growth, the Management embarked on a broad range of strategic initiatives.
Since its starting 1975, the company has expanded tremendously. The phenomenal growth is attributed to the company's unwavering quest to serve and delight the Filipino customer as well as its ability to anticipate and adapt to the ever-changing market environment.
Jollibee continues to push its store network expansion maintaining lead over competition, focused on optimum results from right -sized stores on the best site selection in trading territory. This ensures effective and efficient market coverage.
To meet the challenges of a more intensely competitive market and to manage the business more effectively, the company undertook a major initiative to re-align the structure of Jollibee Philippines. The new organization, which has successfully been put in place, has the capacity of enhancing continued dominance in the quick service industry. In 2000 Jollibee Philippines was decentralized into four autonomous Regional Business Units (RBU), corresponding to the country's major geographic markets: Mega Manila, North Luzon, South Luzon and Visayas-Mindanao.
The decentralization has structured each RBU into a more manageable business size and span of control. Key support functions like human resources and administration, finance and network development have been transferred to the RBU for greater efficiency in the delivery of products and services, quicker coordination and more timely decision-making.
The Head Office/Corporate Services functions (Marketing, Finance, Restaurant Systems, Engineering) have been re-aligned as Support Center to provide continuing assistance to the RBUs and provide corporate-level directions.
The new structure has proven to be more responsive to the needs and challenges of a rapidly growing organization and an even more dynamic market. The program has resulted to better execution of programs and renewed enthusiasm and commitment from the Jollibee people.
Parallel to all of the above initiatives is the continuous improvement of operating productivity and efficiency across the Jollibee fastfood chain. It continues to initiate improvements on equipment and facilities as well as store procedures to generate faster volume turnover and achieve better quality in the delivery of products.
Jollibee remains firm in its resolve to maintain its dominance in the fastfood industry. It will continue to push forward with its strategic programs and aggressively pursue further network expansion to ensure superior market coverage nationwide. Most importantly, it will continually apply itself to the paramount task of consistently delivering superior tasting products at the most affordable prices and services of the highest standards in a bright and clean store environment.
Marketing
Jollibee's advertising is deeply rooted in the traditional Filipino values of family and love for children. Fueled by Filipino creativity, its expression "Atin ang Langhap Sarap!" is anchored on its products' unique taste and superiority.
It aims to be perpetually in the public consciousness through television, radio, print, cinema advertisements and billboards. The company also sponsors selected community activities. Moreover, premium items and toys are offered to bring home and display on the toy shelf.
Likewise, as a way to ensure that the superior equity is sustained and a strong, cohesive and comprehensive visual identification in all Jollibee stores is created, a system - wide Jollibee retail identity was initiated. The international graphic design group, Addison was commissioned to formulate the new retail identity that is more dynamic and fun-oriented. The new retail identity is an integrated system encompassing the total restaurant design from the menu-board and various signages, the dining equipment and area, to the Playland and other facilities.
The product menu is continually reviewed to sustain consumer excitement. Existing products are improved and re-launched. New products are test-marketed in keeping with the strategy of having a continuing fresh line up of products. All these to respond to customers' changing needs and preferences which has been a major factor in Jollibee's success.
At the forefront of innovative marketing and advertising program are the Value Meal product upgrades and additions. This has indeed proven to be an effective response to the narrowing consumer spending power brought about by the current economic crunch.
Jollibee owns the children market and will endeavor to keep its stronghold on this segment. Hence, Jollibee continues with its Jolly Kiddie Meal promotions, offering a choice of Regular Yum, Spaghetti Special or Chickenjoy.
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