Seen as a company with a friendly atmosphere and operations similar to that of a “beehive,” Jollibee created a bee mascot which became popular to a point that children flocked to it when it was seen in public – an operations and marketing strategy which supported an increase in brand recognition.
McDonald’s had more money, but Philippine consumers liked Jollibee burgers more.
One large patty, rather than 2 small, appealed to consumers’ large appetites.
McDonalds slowed foreign investment into the Philippines, leading to Jollibee able to broaden menu. By time McDonald’s came back and tried expanding, Jollibee already had 31 stores and dominant presence.
Franchising (expanding) = larger economies of scale for advertising and purchasing = brand recognition.
“If you’re an unknown brand entering a new country or city, you have trouble getting access to prime locations.”
Wherewithal
First mover in sector, establishing customer expectations and preferences. Used local resources and understanding of local preferences.
McDonald’s massive internal economies of scale may have drawn down costs significantly in comparison to Jollibee, but the founded Jollibee consumers of the Philippines care not about costs implied to McDonald’s, so much as they are concerned for the taste of the actual burger. And with McDonald’s being such a giant conglomerate, it made little to no effort attempting to adapt to the preferences of the locals. Jollibee, on the other hand, adapted its menu accordingly, and took into account the needs of the people.
Rode the national pride wave.x establish