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Business Plan
food brand) is a Filipino multinational company based in Pasig, Philippines. JFC is the owner of the fast
food brand Jollibee. Jollibee’s CEO Tony Tan Caktiong came from a poor family from southeastern
China. He and his family migrated to the Philippines to seek a better life. In 1975, 22-year-old Tony used
family savings to open a Magnolia Ice Cream parlor in Cubao, Quezon City. The franchise was very
successful.
PRODUCTS
Jollibee is a fast food restaurant with American-influenced items, as well as casual Filipino fare. Among
the establishment's best sellers are its Yum burger, the house hamburger first introduced during their early
days of operation; Chicken Joy, a fried chicken meal introduced in the 1980s; and Jolly Spaghetti, their
sweet-style interpretation of spaghetti, which is being advertised as "the meatiest, cheesiest spaghetti".
(The Jolly Spaghetti resembles that of Italian spaghetti, with its blanket of ragù, but under the ground beef
are pieces of hot dog and ham.) In the Philippines, Jollibee serves Coca-Cola products for its beverages;
in overseas markets, the chain serves Pepsi products.
The Chicken joy, a key product of Jollibee is a breaded crispy chicken meal. The way the chicken is
marinated is a trade secret. It is cited in 2019 as the bestseller of the fast food brand in "every market in
the world" according to Dennis Flores, the head and President of Jollibee Foods Corporation for EMEAA.
Outside the Philippines, key products such as its chicken, spaghetti, and burgers are sold overseas but also
offers localized products in its international markets such as chili chicken in Vietnam and nasi lemak in
Brunei.
PLACE
Zero- level Distribution channel – describes the channel between the fast food chain and it’s
customer. Customers go the outlet to avail the product.
Franchising- Jollibee food corporation also offers franchising packages to interested parties.
PROMOTION
PHYSICAL EVIDENCE
Refers to the physical environment of the outlets where the customer can visit.
The interiors are made according to the certain standards given by parent company.
There is use of good technology equipment.
Quality- adheres to all the standards and certifications required as per strict food regulations
affecting all channels in the food industry from the manufacturer supplying the food outlet itself.
PRICE
Psychological Price: Yum with cheese for 2.20, add drinks4.60 value meal
Optional- Product Pricing: Add 0.50 cents to upgrade rice with mashed potato, French fries or
buttered corn.
Project Bundle Pricing: Bucket Meals
NIKE
It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the
University of Oregon, and his former student Phil Knight. They opened their first retail outlet in 1966 and
launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public
two years later.
PRODUCTS
This element of the marketing mix enumerates the organizational outputs offered to target
consumers. These outputs are known as the product mix. Nike Inc.’s growth comes with changes in its
product mix. For example, the business continues its investment in research and development to produce
new products and enhanced versions of its current products. Originally a distributor of shoes, the
company now manufactures various shoes, apparel, and equipment for different sports. Based on Nike
Inc.’s generic strategy and intensive growth strategies, the business integrates new technologies into its
product lines to improve product effectiveness and customer satisfaction. The following broad categories
represent Nike’s product mix:
1. Shoes
2. Apparel
3. Equipment and accessories
1. Retail stores
2. Nike Online Store
3. Niketown retail outlets (company-owned)
1. Advertising
2. Personal selling
3. Direct marketing
4. Sales promotions
5. Public relations
Nike-Physical Evidence
Nike try to understand the customers perspective. They do this by providing physical evidence
they can see and feel to the customer before they can see the end product
For example they show demonstrations of new products before they are actually out. They provide
advertisements and videos of new products to explain what the customer can expect. In most cases this is
when they use professional sports athletes to try out the products and demonstrate what they can do.
Mr. Knight, a director since 1968, is Chairman Emeritus of NIKE, Inc. Mr.
Knight is a co-founder of the company and, except for the period from June 1983
through September 1984, served as its President from 1968 to 1990, and from June
2000 to 2004. Prior to 1968, Mr. Knight was a certified public accountant with Price
Waterhouse and Coopers & Lybrand and was an Assistant.
The SM Store
SM was founded as a shoe store by Henry Sy, Sr., in October 1958 in downtown Manila.
Mr. Sy, who is known as the visionary of Philippine retail because of his innovations in the
industry, thought of establishing a chain of shoe stores with a store layout and merchandising
concepts never before tried in the Philippines.
PRODUCTS
Menswear
Womenswear
Kids wear
All kinds of beauty products
Things for the home.
You can also find stationery
Electronic gadgets
Snack
Toys
Hardware
Fun souvenirs
PLACES
Branches nationwide
Franchising SM - also offers franchising packages to interested parties.
PROMOTIONS
Sales promotion (3 day sale, 50% percent off on selected items, Holiday sales )
Posters
Public relations
Vouchers
PROCESS
Strategy Formulation- How production predict the number of orders that are expected to come
next day and plan the amount of products.
The planning process of any company starts generally by establishing objectives with the tag line
“Happy To Serve” “
PHYSICAL EVIDENCE
1. Package: The physical evidence of a service plays a role similar to that of product packaging, it wraps
the service and communicates its characteristics to the customer. A clean, safe service scape conveys the
image of a superior quality service to the customers and makes them feel proud of being associated with
the service, i.e., it enhances the image benefits received by the customer.
2. Facilitator: A hindrance-free layout of the services cape can enhance employee performance and
customer satisfaction. Physical evidence like comfortable chairs in the seating area matches the
requirements of customers thereby enhancing the perception of the quality of service in their minds.
3. Socialiser: The service scape helps customers and employees socialize and interact with each other and
among themselves as services are mainly delivered through interactions during the moments of truth. The
physical evidence also sets the mood for the service, a cheerful mood at entertainment services, a
professional mood around offices and calm, relaxing ambience in healthcare establishments.
4. Differentiator: The physical evidence can help to differentiate and position a service for a particular
segment of customers when designed according to their tastes and preferences including what they are
willing to pay for. For instance, the physical evidence for a high-priced upperclass area would be
enhanced and differentiated from a low-priced lowerclass area in any service setting or among similar
services.
PEOPLE
SM founder Henry Sy,
PRICE
SUBWAY
Subway uses a mix of demographic and geographical segmentation to make its products more
appealing to the targeted group of customers. The largest single-brand restaurant chain uses
undifferentiated targeting strategy to design the offerings and services as per the choice of the customers.
PRODUCTS
Subway is very famous for its submarine sandwiches. Chicken & Chorizo Melt, Italian BMT,
Chicken Tikka, Meatball Marinara, Chicken Teriuaki, and Veggie Delite are some of the popular
Subway sandwiches. In addition to sandwiches, the restaurant also offers salads, kids pack, sides
and drinks.
PLACE
Subway restaurants are found all across the countries in which it operates. You will usually find
them in airports, shopping malls, amusement parks, business centers etc. The restaurant website
has a ‘Find our stores’ section where you can put your post code, country, or city name and
browse. You will find your nearest SUBWAY restaurant soon! Most of the SUBWAY restaurants
have both eat-in and take-away services. The restaurant also offers home delivery services in
some countries.
PROMOTION
Subway uses a variety of media to implement its promotional activities. You may have seen
adverts on television, newspapers, of course social media. The restaurant has millions of
followings in social media. According to Badenhausen (2013) Subway spent $114 million on TV
advertising in the U.S. during sporting events between the fourth quarter of 2011 and the third
quarter of 2012. According to Statista (2017), Subway spent $573.1 million in advertising
campaigns in the USA in 2013. However, there has been a decline in advertising spending since
2013. For example, the restaurant’s total advertising spending in the USA in 2016 was $508.5
million (Statista, 2017).
Physical evidence
The last element of the marketing mix of Subway is the physical evidence which refers to the
elements of the physical environment visitors and customers experience. For a restaurant brand
like Subway, the main physical evidence issues are how the stores look, the seating facilities, how
the employees are dressed and so on. The official website of the restaurant looks beautiful and is
user friendly. Overall, Subway does really well with the elements of the physical environment.
PROCESS
Process refers to a standardized set of activities that accomplish a specific task, such as
processing a customer’s order (Baltzan & Philips, 2009). What do you do when you go to a
Subway store to have a sandwich? First of all, you choose your bread, size and the type of
sandwiches e.g. Chicken Tikka. Then, cheese is added to your sandwich if you want. You then
decide if you would like to have it warm or cold. Then, you need to choose your salads followed
by sauces. Then, you move on to the till to pay and get a glass for your drinks. This is a typical
process of purchasing a Subway product.
People
Customer service is of the highest priority for Subway as it serves millions of customers
worldwide in a day. The restaurant always looks for talented and motivated people to join their
team. It offers a great number of worldwide opportunities. The jobs are divided into three
categories i.e. headquarter jobs, local restaurant jobs, and regional jobs. You can browse the
restaurant website or visit your local store to explore career opportunities
Price
As Subway is a global restaurant, prices of products vary from restaurants to restaurants and
countries to countries. Subway pricing is arguably premium particularly when compared to the
pricing of KFC and McDonalds. In the UK, the price of a 6-inch Meatball Marinara sandwich is
typically £2.99, while the foot-long one is £4.49. Similarly, a Subway Melt sandwich costs you
£3.99 for a 6-inch one, while £5.99 for a foot-long one.
Amazon.com
Amazon is the second largest technology company by revenue. Amazon was founded by Jeff
Bezos on July 5, 1994, in Bellevue, Washington. The company initially started as an online marketplace
for books but later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and
jewelry.
PRODUCT
Amazon products can be divided into the following four categories:
1. Amazon websites that enable hundreds of millions of products to be sold by Amazon and by third
parties across dozens of product categories. The majority of items sold in Amazon worldwide in 2017 was
from third-party sellers Paid Prime members exceeded 100 million in 2017, shipping more than 5 billion
products worldwide during the same year.
2. Electronic devices such as Kindle e-readers, Fire tablets, Fire TVs, and Echo. In 2017, customers
bought tens of millions of Echo devices, and Echo Dot and Fire TV Stick with Alexa. Outside developers
introduced more than 30,000 new skills to Alexa and customers can control more than 4000 smart home
devices produced by 1200 brands using Alexa.
3. Media content. An extensive range of products and services, including cloud-based services that can
be used on content production.
4. Amazon Web Services (AWS). This segment offers a wide range of global compute, storage,
database, and other service offerings. AWS serves developers and enterprises of all sizes, including start-
ups, government agencies, and academic institutions. In 2017 alone, Amazon Web Services (AWS)
announced more than 1400 services and features.
PLACE
Traditionally, Amazon didn’t have physical stores and the company relied on online sales channel
due to e-commerce nature of its business operations. Starting from 2015, the online retail giant
has been concentrating in physical retail “during which time it’s opened half-dozen bookstores
that double as gadget emporia, a score of campus bookstores that don’t sell books and a
convenience
store without cashiers.”
PROMOTION
The promotional and advertising strategy in the Amazon marketing strategy is as follows:
Amazon uses aggressive marketing campaigns to promote its brand. When it comes to promotion
Amazon leaves no stone unturned in its marketing mix promotional strategy. Its major focus is on
advertising – through print ads in newspapers have increased exponentially of late. Amazon uses creative
television commercials and social media marketing through SEO and targeting customers through their
browsing patterns. Amazon also have affiliate programs where website and blog owners advertise
Amazon product links in their platforms. Next important thing is sales promotion – Amazon has mastered
this art and give effective sales promotions and discounts during holiday seasons and festivals resulting in
high visits to the website. Public relations exercises to improve brand image like launching Amazon
Smile which donates to charity organizations. ‘Gift a Smile’ in India is an initiative where people can
send their gifts directly through Amazon to NGO’s that are partnered with the company. Direct marketing
to companies for providing its web services is also performed by Amazon.
PHYSICAL EVIDENCE
Amazon’s biggest physical presence is its website. As it is an online retailer the place of service
is its website and apps which very user-friendly and built with great design. Amazon’s
warehouses and fulfilment centres present in all countries of its operations are the largest one can
ever find. It has logo which is very well resembling what Amazon stands for, i.e. an arrow from a
to z which implies one can buy anything on Amazon. Its packages also sport this logo. Amazon
releases its financial reports also for its investors and users yearly providing information about
where company stands and where it aspires to go. Hence, this summarizes the Amazon marketing
mix.
PROCESS
Amazon is a world leader in ecommerce and web services and has got a strong process oriented
business. As we have seen earlier that Amazon strategically divided its warehouses and fulfilment
centres for operational efficiency, it also uses the best in the business technology to support its
daily activities and also in its advertisements, serving the customer like providing the information
about the location of his package. Also its association with websites like Twitter, where by
reacting to any tweet from Amazon people can add any product to their cart. Its customer
relationship and information management are core to its business strategy.
PEOPLE
Amazon gives a great importance to its workforce. Irrespective of what level and domain of the
organization they are working people get benefits from Amazon which makes it a desirable
employer. These benefits include health, financial, assistance programs, some time off like
vacations and equity plans. There are nearly 2,30,800 employees working across the globe round
the clock to ensure best customer experience and as Amazon is the most visited website in retail
space (1.27 billion/year) it offers its employees a great deal of training and development
activities.
PRICE
This pattern of revenue generation has certain implications on Amazon pricing strategy. Amazon
pricing strategy can be generally described as cost leadership; nevertheless, the largest internet
retailer in the world also applies alternative pricing strategies in certain segments.