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Jollibee

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Jollibee Food Corporation

Milestones / History

1975 * Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet

1979 * Spaghetti Special is introduced * 1st Franchise owned store opens at Ronquillo Sta. Cruz.

1985 * Jollibee becomes the market leader of the fastfood industry. * Breakfast Joys are introduced. * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress.

1992 * Jollibee sales hit the P3.365 billion. * Started using frozen patties for its popular hamburgers. * Improved softserve ice cream line by offering fruit flavored ice cream. * Acquired 73% if the Hamburger segment. * Opened another store in Jakarta, totaling to 2 stores in Indonesia. * Jollibee have 112 stores nationwide. * Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry.

2004 * The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Young’s 2004 World Entrepreneur of the Year

2008 * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. * Zenith Foods Corporation, the commissary plant of JFC, was adjudged the National winner of Meat Processing Plant AAA category in the search for Best Meat Establishment of the National Meat Inspection Service. * Jollibee strengthens US network with the opening of three new stores. * JOLLIBEE wins Award of Excellence in Philippine Quill Awards for Media Relations Program(30th anniversary campaign).

Values

* Customer Focus * Excellence * Respect for the Individual * Teamwork * Spirit of Family and Fun * Humility to Listen and Learn * Honesty and Integrity * Frugality

Mission

* To serve great tasting food, bringing the joy of eating to everyone

Key Executives for Jollibee Foods Corp (JFC)

Tan Caktiong "Tony"
Chairman

Ernesto Tanmantiong
President/CEO

Ysmael V Baysa
Chief Financial Officer

Lauro C Matias
CIO/Head:Info Management

Anastacia S Masancay
VP:Corporate Audit

Daniel Rafael Ramon Gomez
VP:CorporateMktg/Chief MktgOfcr

John Victor R Tence
VP:Corp Human Resources

William S Lorenzana Jr
VP:Corporate Supply Chain

Beigno M Dizon "Benny"
VP:Engineering

Susana K Tanmantiong
VP:Purchasing

Liwayway T Mateo
VP:Quality Management

William Tan Untiong
VP:Real Estate/Secretary

Polly Yang "Chuan Hua Yang"
VP:Research& Development

Shareholders

Name | Shares | % | Hyper Dynamic Corp. | 273,218,750 | 25.6% | Honeysea Corp. | 127,743,747 | 12.0% | OppenheimerFunds, Inc. | 55,217,421 | 5.18% | Winall Holding Corp. | 54,140,736 | 5.08% | Arisaig Partners (Asia) Pte Ltd. | 42,068,550 | 3.94% | Honeyworth Corp. | 40,127,402 | 3.76% | Kingsworth Corp. | 29,168,935 | 2.73% | Centregold Corp. | 27,430,964 | 2.57% | Gemma Tanbuntiong | 21,493,601 | 2.02% | Venice Corp. | 18,920,382 | 1.77% |

CASE ANALYSIS

Jollibee seals deal to own Dunkin’ Donuts master franchise in China

VG Cabuag - January 6, 2015 Business Mirror

FASTFOOD giant Jollibee Foods Corp. on Tuesday said it sealed the deal to become the master franchise holder of Dunkin’ Donuts in China.
The company said its joint venture firm Golden Cup Pte. Ltd. signed a deal with Dunkin’ Donuts Franchising Llc. for the master franchise agreement that will exclusively develop the brand in several Chinese territories, including Hong Kong and Macau.
Golden Cup is a joint-venture entity formed by Jollibee’s international unit and Jasmine Asset Holding Ltd.
Jollibee controls 60 percent of Golden Cup and the rest by Jasmine Asset.
According to the agreement, the Manila-based fastfood giant, famous for its Jollibee stores, will develop the American doughnut brand in territories, such as Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunnan, Heilongjiang and Jilin.
The company said Golden Cup has committed to invest up to $300 million, some $180 million of which will be spent by Jollibee in proportion to its ownership, while the rest will come from Jasmine Asset.
“The JV will open and operate a minimum of 1,459 shops in China over 20 years, based on an agreed development schedule,” it said in an earlier statement.
As of the third quarter this year, Dunkin’ Donuts has 11,123 stores worldwide, of which 7,941 were franchised.
In the Philippines, Golden Donuts Inc. of the Prieto family owns the master franchise of Dunkin’.
Jasmine Asset, Jollibee’s partner, is a subsidiary of RRJ Capital Master Fund II Lp., established by RRJ Capital, an investment firm with offices in Hong Kong and Singapore.
This is not the first that the fast-food giant entered the doughnut market. Jollibee had a doughnut brand in the Philippines under Donut Magic Philippines Inc., but the brand did not take off.
Jollibee’s net income rose in the third quarter to P1.2 billion, a 15-percent increase from last year as both its domestic and international operations continue to grow.
The company said its operating income grew 16 percent to P1.41 billion, as revenues increased by 11 percent to P22.05 billion.
Its third-quarter figures brings its income for the first three quarters of the year to P3.71 billion, some 18 percent higher than last year’s P3.14 billion.
For this year, the company is allocating a capital expenditure of P9.1 billion, higher than the estimated spending of P6.3 billion this year.
The company earlier said it has a capital-expenditure (capex) budget of P9.3 billion for 2014. Of the amount of capex for 2015, P6.3 billion is allocated for the Philippine market, P1.7 billion in China and the balance will be for the US, Southeast Asia and the Middle East markets.

1.
Time context

The Jollibee Food Corporation (JFC) seals the deal to become the master franchise holder of Dunkin’ Donuts in China. The joint venture with Jasmine Assets Holdings Ltd.form Golden Cup Pte. Ltd., and signed the master franchise agreement with Dunkin’ Doughnut Franchising Llc. In China.

2. Viewpoint

Jollibee Food Corporation Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing international QSR player.
Jasmine Assets Holdings Ltd.
Formed in 2009 Jasmine Property Investments (JPI) holds a mix of office, Industrial and residential property and also gets involved in property development. Jasmine aims to have a solid property portfolio in the years ahead to give the group added strength. The companies in which Jasmine Holdings currently holds shares own more than 12 properties and have combined property assets of over £6m.JPI are always looking to acquire new properties in all sectors and will look at all property opportunities.
Golden Cup Pte. Ltd.
Golden Cup is a joint-venture entity formed by Jollibee’s international unit and Jasmine Asset Holding Ltd.

3. Central problem How to market and introduce Dunkin’ Doughnuts in China.

4. Objectives To be able to make a marketing strategy to introduce Dunkin’ Doughnut in Chinese market for the benefit of Golden Cut Pte.Ltd. this is a joint venture of Jollibee Food Corporation and Jasmine Holdings Ltd.

5. Areas of consideration StrengthJFC: * Jollibee Food Corporation further leading in market share of 31% in the fast food industry * Strong brand name * Wide acquisition of businesse.g. Red Ribbon, Greenwich, Chowking, MangInasal * Customer loyalty * CSR-Skills Enhancement and Education Development for Students (SEEDS) * Jollibee Foundation * Creative marketing programsDunkin Doughnut: * Reputation for brewing high quality coffee for more than five decades * Brand recognition. * Dunkin’ Donuts uses 100% Arabica coffeebeans and has its own coffee specifications,which are recognized by the industry as asuperior grade of coffee. * Large variety of donuts. | Weakness * Dunkin’ Doughnuts does not spend much in marketing their products. * High price of ingredients and raw material. * Competition from other internationalsnacking joints means limited market share growth. * Conflict with franchisee owners. * Limited geographic presence. * Weak advertising strategy. | Opportunities * Overseas market * Further business acquisition * Big population-potential labor * Very high economy * Advantage in the agreement-60% goes to the Jollibee | Threat * Competition from local bakeries and cafes * Potential new entry in the competition * Policy Risk * Aging population * Trend towards healthy eating * Increase labor in China * Change of preference |

6. Alternative courses of action

A. Do Nothing

Advantage:
Gain nothing

Disadvantage:
Further lose market share
Loss of investment

B. Strategic marketing move through Media Advertisement
(e.g Social media, TV ads, Print, Outdoor Ads)
Advantage:
Increase in market share Provides knowledge to the customers Involvement or feedback from customer (Social Media)

Disadvantage: Time Consuming Adds to Costs

C. Change Product Focus (Coffee)

Advantage: Focusing in their strength (Coffee) Increase in coffee preference of Chinese

Disadvantage: Smaller variety 28,000 coffee shops open by the end of 2013 Chinese still prefers tea

7. Recommendation
After a careful and comprehensive deliberation and discussion, we are here to recommend that Golden Cup Pte. Ltd. should focus on making a strategic marketing plan to inform the public about the Dunkin Doughnut.

8. Plan of action

Promote Dunkin Doughnut in China with the use of social media, TV ads, print and outdoor advertisement. Using this strategy, people would be interested, inform and involve in a fast and convenient way both for the benefit of prospective consumers and clients and also for the organization. This marketing promotion will start from the second quarter of the present year until the opening.

Source:

http://www.jollibee.com.ph/about-us/

http://www.businessmirror.com.ph/jollibee-seals-deal-to-own-dunkin-donuts-master-franchise-in-china/

http://www.jollibee.com.ph/about-us/

http://www.jasmineholdings.com/property.htm

Case Study

Jollibee Food Corporation
International Joint Venture

Prepared by:

Lady Dianne Alvarez
Aireen Alajas
Lovely Rose Avelino
Freesia Susana
Isabel Joyce Tawiran

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