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The
company that began as a modest start-up in 1978 with an
investment of a mere few thousand pesos continues to be
one of the most remarkable success stories in Philippine
business. A name synonymous with Filipino success and
ingenuity, Jollibee has become one of the most enduring
symbols of our time and a shining example of how a small
dream can turn into a triumph of epic proportions.
The
decisive victory of homegrown Jollibee over the world’s
biggest brand is a feat often referred to as Goliath
having met his David in the Philippines. And it remains
unmatched to this day, even in more nationalistic
countries. Its phenomenal success has become MBA casebook
material. No less than the Asian Institute of Management
(AIM) and Harvard Business School have authored Jollibee
case studies that have been extensively discussed in
academe.
The fact
that Jollibee is now a burger-and-chicken chain, instead
of an ice-cream parlor, is proof of how the company knows
how to adjust to customers’ tastes. The Tan family, led by
the founder, Tony Tan Caktiong, discovered that their
customers did not want to eat the cold ice cream on an
empty stomach. Soon customers were eating more of the
spaghetti and hamburgers that were eventually introduced
on the menu, and less of the ice cream. This eventually
led to the conversion of the ice-cream parlor to a burger
house, incorporated as Jollibee Foods Corp. in 1978 with
six people working out of an apartment.
A few
years after, the founders were faced with the arrival in
the Philippines of the world’s largest fast-food chain.
Although warned by well-meaning friends that they should
fold up and venture into other businesses, the Tan family
remained unfazed and decided to compete head-on with the
world’s biggest and strongest burger brand.
After
making sure that they had a winning product in their
hands, Tan Caktiong then focused on mastering two main
components: first, the operations side of the business
(the lifeblood of any food-service company) and second,
creating a formidable brand.
The slogan
“Langhap Sarap” immediately differentiated the uniquely
Filipino Jollibee hamburger from its relatively more bland
competition. The consistent, single-minded advertising
campaigns made the Filipino consumer turn their backs to
the pervasive colonial mentality and built pride around
the superior-tasting Filipino burger.
Picking up
momentum
The 1980s
saw the start of the growth momentum of Jollibee. In 1980
the brand introduced its mascot, which to this day remains
to be more popular than Mickey Mouse in this part of the
world. This was also the year that Chicken Joy, the
chain’s top-selling product to this day, was first served.
In 1984 Jollibee hit the half-a-billion sales mark. Three
years after, Jollibee joined the ranks of the country’s
top 100 corporations.
The 1990s
saw the further growth and expansion of Jollibee. The
company went public in 1993 and started diversification in
1994 with the purchase of Greenwich Pizza Corp. The year
after, Jollibee became the Philippine licensee of
Delifrance Asia.
It merged
with Chowking Foods Corp. in 2000 and this was later
followed by the first international brand purchase with
the acquisition of Yonghe King in 2004 with 77 stores in
Beijing, Shanghai, Wuhan and Hangzhou in China. Meanwhile,
local diversification continued with the significant
purchase of Red Ribbon bakeshop in 2005, ushering in the
participation of Jollibee in a new food-service segment.
Going
international
From the
start, the Jollibee founders have always had international
aspirations. Less than 10 years since the birth of the
company, Jollibee opened its first overseas store in 1987
with a branch in Brunei, followed by the first outlet in
Hong Kong in 1996. The first US branch was opened in 1998
to cater to the large Filipino community in Daly City,
California.
While a
few early attempts into the international market had
disappointing results, Jollibee executives, however, made
sure they learned their lessons well. Thus, in the
company’s current international expansion program,
Jollibee readily invests in marketing efforts to create
awareness for the brands in foreign lands.
“As we
face the challenge of conquering other markets and
exceeding international standards, we are confident that
we can make this happen. No other Filipino food company is
as poised and ready for growth as Jollibee,” Ernesto
Tanmantiong, Jollibee president, explains.
On its
25th year last 2003, Tan Caktiong set forth an audacious
goal: to bring Jollibee to the rest of the world. The
strategic aim of making Jollibee a “global food service
organization” with presence in Asia-Pacific, the
Middle East and the US
was a vision which he says is “our magnificent obsession.”
Another key goal is to reach the P100-billion sales mark
by 2013.
Five years
later, the goals do not seem to be too audacious after
all.
Today the
Jollibee group of companies owns seven leader brands in
the food-service category. The flagship brand Jollibee is
the market leader in the burger-and-chicken segments,
commanding nearly half of the market share. The group’s
current network of over 1,600 stores across the world
generates a combined sales of over $1.1 billion worldwide
in 2007.
As
Jollibee enters its third decade, it faces a most exciting
and challenging time. Behind the picture of a giant,
smiling bee with his orange and white stripes, is a
32,000-strong labor force comprised of the country’s most
astute businessmen, the most seasoned fast-food industry
experts, the most highly trained managers, the most
strategic marketing minds, the brightest engineers and a
hardworking army of fast-food crews ready to feed over 1.5
million customers per day in the Philippines alone.
The
Jollibee group is clearly set for long-term growth and is
ready to conquer the rest of the world with its winning
formula of good taste and affordability. |
