1. SINGAPORE POLYTECHNIC
SP BUSINESS SCHOOL
SERVICES MARKETING
BA 5120
AY 2014/15
SEMESTER 2
ASSIGNMENT REPORT
SERVICE BUSINESS REPORT
OF
JOLLIBEE SINGAPORE
SUBMITTED BY:
Name: Catherine Ann Pan
Admin No: 7183948
2. Table of Contents
Company Background................................................................................................................1
Forces facing the business - Government Policies ....................................................................1
Forces facing the business – Social Changes.............................................................................2
Forces facing the business – Business Trends ...........................................................................2
Forces facing the business – Advances in IT.............................................................................3
Forces facing the business – Internationalization......................................................................3
8Ps implemented - Product ........................................................................................................3
Core product...........................................................................................................................3
Actual product........................................................................................................................4
Augmented product................................................................................................................5
8Ps implemented - Price ............................................................................................................5
Psychological pricing.............................................................................................................5
Optional - product pricing......................................................................................................5
Project Bundle pricing............................................................................................................6
8Ps implemented - Place............................................................................................................6
Zero - level distribution channel ............................................................................................6
Franchising.............................................................................................................................6
8Ps implemented – Promotion...................................................................................................6
8Ps implemented – Production and Quality...............................................................................7
8Ps implemented – Process........................................................................................................7
8Ps implemented – People .........................................................................................................8
8Ps implemented – Physical evidence .......................................................................................8
Physical Layout...............................................................................................................8
Ambience ........................................................................................................................9
Staff Appearance.............................................................................................................9
Suggested supplementary service elements ...............................................................................9
ANNEX....................................................................................................................................11
3. 1
Company Background
Jollibee Singapore has successfully opened on March 12, 2013 at Lucky Plaza Orchard. The
subsidiary to bring the Philippine fast-food giant in Singapore was made possible with the help of
Hotelier Jenny Chua, 40% shareholder and co-founder of Beeworks following the agreement with
Jollibee Foods’ Golden Plate, who also led the opening along with Denny Flores, Jollibee’s Vice-
President for International Operations. The agreement will give 40% of Jollibee Singapore’s share to
the joint venture to be called Golden Beeworks.1
The famous fast food chain was founded by FORBES-ranked billionaire Tony Tan on January 28,
1978 and is the most earning fraction of his company, Jollibee Foods Corporation (JFC). Singapore,
who hosts over 200,000 Filipinos, became the Philippine fast food giant’s number one outlet globally
only three months after it opened in terms of sales. There are over 4000 stores managed by JFC, 92
of which are international outlets from the USA to Vietnam.
Belonging to the food industry, the chain serves varieties of American-style, high-quality, great-
tasting and affordable meals ranging from fried chicken, spaghetti, fries, burgers, sides and
sandwiches in a fast-food service setting. It adheres to the standards of food quality, service and
cleanliness for more than 35 years.
Forces facing the business - Government Policies
Singapore businesses are allowed to hire foreigners as long as it can reach its quota. There’s a ratio
between the number of foreigners and Singaporeans that are allowed to work in a company. A
boycott has been raised previously when the chain has initially opened as locals had the perception
that its hiring preferences are mostly Filipinos, but this has since been clarified as nearly 80% of the
company staff are PRs and Singaporeans. In fact, Certification of Fair Employment Practices by
TAFEP has been issued to the chain as a proof that they give equal employment opportunities.2
They have to meet Singapore’s food safety standards to ensure that they provide clean and safe food
to their customers. In fact, Jollibee Singapore got an A rating on its NEA license for food hygiene
standards.
The chain had to comply as well with the HALAL certification as the country is diversified with
variety of races where there’s a big fraction belonging to the Muslim community. This has also
helped in expanding the company’s brand share from competitors headed by McDonald’s, KFC and
1
Wells, J.. “Hotelier Jennie Chua’s New”. Retrieved12, January 2015from http://www.forbes.com/sites/forbesasia/2012/11/28/hotelier-jennie-chuas-
new-challenge-bringing-jollibee-fast-food-to-singapore/
2
Charlton, T..(2013). Singapore Business Review. “Meet the Singaporean faces”, RetrievedJanuary 20, 2015 from
http://sbr.com.sg/retail/exclusive/meet-singaporean-faces-jollibee
4. 2
Burger King in the country. Annex - Figure 1 shows the certifications displayed in the chain’s front
area.
Forces facing the business – Social Changes
Increasing obesity rate is one of the most important social factors affecting the life of the people. For
consumers who preferred and who had decided to go “healthy” are the ones that had fallen out of the
market. Most businesses would rather go for brand sharing rather than expanding the market as it’s
easier for them to convince consumers to switch to their brand rather than convince someone to eat
fast-food when they’re not really into it. In line with the changes, businesses try to promote their
food as “healthy” by adding healthier menus. Jollibee Singapore hasn’t done this yet, not even on
any of their outlets. This change doesn’t seem to affect them since consumers patronize them
because of their food’s unique taste regardless if healthy or not.
Another trend is for customers who are avid fan of collectibles such as Hello Kitty, Despicable Me
minions or Line plush toys. Fans are willing to queue and buy just to get their hands on these items.
Competitors like McDonald’s had taken advantage of this and incorporated these toys where
customers can purchase limited edition collectibles for every purchase of a kiddie or value meal.
Jollibee Singapore hasn’t implemented this yet, although outlets from other country (like in
Philippines) have been doing this.
A large part of Singapore consumers are into spicy foods. This is one of the reasons why most food
outlets have regular and spicy menu versions. Jollibee Singapore, as of this writing hasn’t applied
this yet. It will be very effective if they’ll apply this in order to engage these types of consumers who
prefer spicy foods.
Forces facing the business – Business Trends
Businesses especially fast-food chains find it hard to gain loyalty of the millennial generation since a
lot of customizable options are available for the menu that provide for a little more than the price of a
combo meal. Fortunately, the chain is one of the options consumers consider since it offers a variety
of menu for an affordable price.
Another trend to consider is where business shows which organizations they are supporting. Jollibee
Singapore, in part of the rest of the outlets is a major supporter of different organizations involving
donations most benefitting kids and the poor. (Annex – Figure 2)
5. 3
Forces facing the business – Advances in IT
Almost all big businesses in the food industry of Singapore had implemented the use of card
payments like Nets, VISA, credit, debit, master cards, among others. The chain however, still hasn’t
implemented this option as of this writing as payments are still made by cash.
Social media frenzy has been widely used by businesses in promoting their products considering that
a big part of the population is into it. Jollibee had taken advantage of this as well. They reach out to
their customers through social media which is, so far, their only means for promotion and awareness.
Advances in IT makes Singapore life faster and easier, and certain things like ordering for delivery
can be done via an app or a website. Unfortunately, Jollibee Singapore is yet to have this. It is one of
the important factors they should consider having as some are not patient enough to queue for long
especially when they can order from others.
Forces facing the business – Internationalization
There’s a slight difference on the taste if you compare it to the same meal you’ll have in the
Philippines. This is because of the trading policies and the limits of the ingredients you can import,
develop and sell in the country. This usually happens whenever a company goes global, hence in a
food service, it also has to adapt somehow to the local tastes.
The same goes with other meals that should be originally included in the menu but are not being sold
depending on the country where the outlet is. Trade barriers wouldn’t allow other foods to be
imported yet manufactured in Singapore if it doesn’t meet their standards. From time to time, fans
who are familiar of the menu would complain of missing out these opt-out dishes.
Singapore have diversifies races. Some of which are only comfortable if they are being served with
their same race. Because of the internationalization, it provided an opportunity for the business to
hire employees of different races that certain types of customers are more comfortable to be served
with.
8Ps implemented - Product
Core product
Provide delicious American-style food with a Filipino twist
Happiness on every bite
Value Meals for an affordable price
Hygienic environment and safe food
6. 4
Actual product
Refer to Annex – Figure 3 for sample pictures
Breakfast
Solo Value Meal
Breakfast Yum 3.50 4.50
BeefHotdog 4.00 5.00
ChickenTocino 5.00 6.00
BeefTapa 5.00 6.00
Regular Meals
7. 5
Augmented product
Party/Event Reservations – this has been effective not just for parties but for people handling
seminars. Food packages are very affordable compared to others. Staff, party and event materials
are included in the package as well. (Annex - Figure 4)
Social media platforms for inquiries, feedbacks and suggestions – this has made it easier for
consumers to air out their side to the management at the touch of their fingertips. The admins had
effectively managed the page, engaging interactions in the online community.
Facebook Account: https://www.facebook.com/JollibeeSG/
Instagram and Twitter: @jollibee_sg
Mascot entertainment on reserved events – in some cases, big special occasions such as store
opening. This is very effective especially on kids who are the ones most awed when seeing it.
The mascot is also being used in reserved events like parties, openings, celebrations and
promotions. (Annex - Figure 4A)
Warm, friendly and helpful customer service is also there to assist customers with smile and
courteous greeting. This has been a trademark for Jollibee to promote happiness and joy so
customers are able to eat with more convenience.
The chain has succeeded in attracting and maintaining its customers primarily because most of the
supporters are Filipinos and they are serving the range of products most sought out by customers.
Aside from the actual product, the chain has maintained the core product that comes along with it as
well. The augmented services have made it easier for the chain to reach out to their customers
especially in a culture that is far different from where the chain originally came from.
8Ps implemented - Price
The pricing strategy used depends on the range of products and how they were ordered:
Psychological pricing – used for their set of value meals (2 main meals + 1 drink) and even
for ala carte orders. The psychological pricing doesn’t really add much to the cost. In general,
it has effectively positioned the product as affordable.
Example: Yum with Cheese for 2.20, add drinks for 4.60 Value Meal
Optional - product pricing – is added when consumers go for upsize or any upgrade on their
meals. This has to be the cheapest upsize pricing you can see if not from all, but from most in
the food industry. Even hawker centres charges $1 for just extra rice.
8. 6
Example: Add 0.50 cents to upgrade rice with Mashed Potato, French Fries or Buttered Corn
Project Bundle pricing - used in pricing their bucket meals (a combination of different ala
carte dishes). Buying this option has provided the consumers better ways to save money for a
package deal instead of buying per piece.
Example: Bucket Meal A (16 pcs. Chicken, 4 sides, 2 spaghetti, 4 medium soda) for only $28.00
8Ps implemented - Place
The type of distribution channels being used actually depends on several factors.
Zero - level distribution channel – describes the channel between the fast-food chain and its
customers. Customers go directly to the outlet to avail the product. Currently, there’s only
one outlet in Orchard, Singapore.
Franchising – Jollibee Foods Corporation also offers franchising packages to interested
parties. Jollibee Singapore however is an international outlet extension of the owner itself and
is not a franchise. There are no talks, whatsoever, if anyone locally is willing to sign up for a
franchise.
The only outlet available resulted into long queues with 30 minute waiting time. While this may be
good in terms of sales, customer experience is affected. It will be better if more outlets are soon to be
opened to cater to customers especially those coming in from places that are too far away from the
current chain location.
8Ps implemented – Promotion
Jollibee Singapore’s promotional activities did not include any TV or radio advertisements and only
concentrated in reaching consumers by:
Advertising through electronic media (Internet, News Online, YouTube, Social Media)
Example: An article from Forbes Asia entitled “Hotelier Jennie Chua's New Challenge:
Bringing Jollibee Fast Food to Singapore” from
9. 7
http://www.forbes.com/sites/forbesasia/2012/11/28/hotelier-jennie-chuas-new-challenge-
bringing-jollibee-fast-food-to-singapore/
Sales Promotion through social media (Figure 5)
Marketing Public Relations (Publicity)
Example: An article from Singapore Business Review entitled “Meet the Singaporean faces
at Jollibee” from http://sbr.com.sg/retail/exclusive/meet-singaporean-faces-jollibee
In-store print ad posters. (Figure 6)
These approaches were effective so far for Jollibee Singapore’s promotion because the people are
more concentrated into the internet rather than watching TV. Most households have cable channels
and won’t likely bother to watch commercials. The trend nowadays is more towards social media
where people can get a chance to interact. Even news is being read online as well.
8Ps implemented – Production and Quality
Singapore always practices strict food regulations affecting all channels in the food industry from the
manufacturer supplying the food items to the food outlet itself. They require these channels to obtain
certifications from food quality to safe and hygienic business environment. When it comes to food
quality, Jollibee Singapore adheres to all the standards and certifications required. In fact, their
certifications are posted in front of the outlet premises to ensure everyone on the quality of food
they’re serving their customers. In terms of production, Jollibee Singapore ensures to cater to all
customer orders. They predict the number of orders that are expected to come the next day and plan
the amount of product supply they’ll be receiving. Of course there will be instances that they ran out
of food supply (such as particular chicken parts) but these things happen mostly during closing time.
As of this writing, there haven’t been any complaints published relating the quality of the food being
served by the chain. This shows that they have met the standards required for food establishments in
the country.
8Ps implemented – Process
The process starts from customers queuing and ordering food in the cashier. After payment has been
made they can go straight to the table to sit down and enjoy their food. Additional small orders can
be done without the need to queue again. The chain experiences long queues most days especially on
weekends which can last up to 30 minutes (previously was 3 – 4 hours) and reserving seats is
definitely not allowed. To save time, waiters go around the queues and jot down orders on a sheet so
10. 8
customers will only need to give it as soon as they reached the cashier area. This process saves the
time spent in deciding which to order whenever a customer is facing the counter.
The fast food chain promotes fast, accurate and efficient customer service. The entire system is
composed of the front (cashier, waiter and manager) and the back (janitor and kitchen staff) end
support. Staffs are actually trained to handle all around service which means they should be able to
handle both front and back end support. This means a cashier can be a waiter, in the kitchen or a
janitor. This way, staffs are flexible enough to provide service to their customers. Fast food chains
are busy most times especially on weekend, and which ever support lacking will totally affect the
whole system so flexibility is proven to be an important aspect of the entire fast food system.
The organized flow and the flexible staff provides systematic approach towards serving the
customers which has contributed as to why people don’t bother to queue for long just to be able to
obtain the product. Most customers interviewed say that the process has been faster than what it has
been previously during the chain’s opening days. (Figure 7)
8Ps implemented – People
Interactions are between:
Customers to customers – people queuing especially for long periods of time get the chance to
brush elbows with others queuing as well. (Figure 8A)
Customers and staff – customers first interact with cashier and managers (acting as / assisting
cashiers) in purchasing orders. As soon as they reach the table, they get to interact with waiters
(if they have additional orders waiting to be delivered) or janitors (such as clearing tables).
(Figure 8B)
8Ps implemented – Physical evidence
Physical Layout
Jollibee Singapore has provided a separate space from the main outlet itself which is intended as
waiting area where people line up to queue. Behind the waiting area is an extension of the chain
where the food storage is located. The chain comes in glass doors with in-store posters of featured
value meals and services offered. The queue runs from the separate space and halfway towards the
six cashier counters where big menus are being displayed on top for easy customer reference. On the
right side next to the entrance door is a separate table with covered posts intended for interviewing or
simple staff meeting. On the left side from the cashier is the dining area. Two kinds of tables are
situated, the normal ones and the higher ones at the side that looks like a mini bar. Chairs are
11. 9
different depending on which part of the dining area. The ones on the side walls have chairs which
are soft and wide for 2 people whereas the chairs in the middle area are the normal ones. Chairs are
higher at the bar side to match the high tables. The condiments section is located on the left side of
the cashier. Janitor area is somewhere towards the right of the dining hall. Going further to the right
is the washroom section for hands only as there’s no toilet provided. This is considerably fine since
behind the fast food chain is the mall’s toilet. There’s a room beside the washroom which is reserved
to handle events such as parties or seminars. The layout is wide enough to occupy all the tables and
even though there are lots of diners, it doesn’t look as crowded as one will have expected especially
if you judge the long queue. (Figure 9A and 9B)
Ambience
The ambience of the fast food chain provides a happy feeling probably coming first from the colour
theme (orange, red, gray and yellow) selected on the chain matching the lights which brightens up
the place even more. The fire extinguishers situated on every corner and the emergency exit map
provides security and safeness of the dining environment. In times where there are loads of diners,
people chatting around may appear noisy but still, the good food makes up for it. (Figure 10)
Staff Appearance
Staffs wear uniforms matching the colour theme of the fast food chain. The hair is neatly tied and
covered with hair net and a matching cap bearing the chain logo. The managers looked more formal
in their blue stripe and red scarf (used as tie) which makes them distinguishable from the rest of the
staff. Jollibee requires all of their staff to practice working with a smile at all times. They are very
courteous and friendly as well. This makes them appear approachable by customers. Good food plus
good customer service provides an overall enjoyable dining experience. (Figure 11)
Suggestedsupplementary service elements
Indoor playground – kids dining with families would normally loiter and run around and you
can’t have them sit still in the chair. Sometimes, they are the cause of spilled drinks or even
accidents from bumping against other customers. It would be an additional service if the chain
can allocate a playground space for these kids so as to avoid these accidents from occurring.
Special mascot appearances even without event reservation – it will be nice if they can provide a
Jollibee mascot appearance via customer request on occasions like birthdays for even just 5
minutes, enough to greet the celebrant. It will create more happiness and may probably gather
more customers to dine into the chain on special events.
12. 10
Take away corner – both diners and take away orders are being handled in the same counter. It
will be beneficial for these customers if there will be a corner for take away service so that they
don’t have to queue together with the diners. This will lessen the queue as fast as possible as
well.
Automated ordering service – some restaurants have tablets situated on each table so customers
can order from there without the need to queue outside. This however has not been implemented
in fast food chains. If this is implemented, it can help lessen the queue especially if more
customers are queuing for takeaway rather than dining in.