Jollibee’s global ambition faces a battle

DIAGNOSIS 1
Peter Pek
Chief executive
World Branding Forum

The issue that is stopping Jollibee from global success lies in its products, which suit local tastes very well but lack international appeal.

The taste profile for Filipinos differs considerably from most other countries. To be successful outside the home country, Jollibee and other Filipino food brands need to adjust their recipes to suit international audiences. Lowering sugar content will be a first step.

The dilemma in changing the recipe is that brand loyalists will feel that the product is no longer original. This shift in taste could alienate the core supporters. But without recipe adjustment, acceptance of the product in new markets may not be possible.

One solution may be to launch a sub-brand that has products that cater to the global market. This will leave the original brand intact, while allowing the new sub-brand to appeal to a much wider audience.

The QSR marketplace is highly competitive. We see a proliferation of gourmet outlets trying to close the gap by finding a niche in the upper segment of the market. Jollibee won’t stand out from its competitors in its current form.

A complete rethinking of its product offerings and brand differentiation is required if the brand is to find any success outside the Philippines. A sub-brand may just be the answer to this problem.

DIAGNOSIS 2
Stefano Augello
Chief strategy officer, Southeast Asia
Havas WW

There are many variables that influence Jollibee’s coming of age as a global brand, from supply chain to local partnerships. But when it comes to marketing, I would urge them to follow uncommon sense, as, like many things in life, markets behave in counter-intuitive ways.

For instance, the reason why they’re big at home is exactly why they’re small abroad: it’s easier to remain number one than to become one, even if you offer the very same product.

This is due to a marketing pattern called ‘double jeopardy’, with the market leader enjoying both greater market share and greater purchase frequency due to its larger availability, both physical (number of stores) and mental (share of mind). This explains why McDonald’s is still big, although no one really likes its burgers. (Seriously, who does?)

The questions Jollibee should ask itself are not “What do we sell?” and “How can we sell it here?” but rather “Does anyone need us?” and “What would they miss if we were gone?”

The bad news is that right now no one needs another chain selling burgers and fried chicken. But the good news is that mainstream fast food hasn’t seen proper innovation in decades. There are lots of opportunities to reinvent the wheel and come up with new things people would like enough to miss if they were gone.