Jollibee Foods Corporation's pricing strategy is designed to create a favourable brand and product perception among its target consumer groups. To do this, they use premium pricing for some of their product lines and psychological pricing to add more value to their products from the customer's perspective. Their marketing strategy consists of short films based on true stories that represent the love and happiness of families when they eat together. As family is a key ingredient of the company, their in-store environment makes customers feel at home.
Jollibee has made people emotionally attached to their stores. To expand their global reach, they plan to open 500 fast-food restaurant chains in the United States and Canada in the next five to seven years. Their pricing strategy is based on market competition, where they match competitors' prices and focus on reducing the cost of operations to increase profitability. As they take prices from the market, they must accept the current market price, which is determined by the dynamics of supply and demand.
The product is designed based on the value proposition that customers are looking for and that Jollibee Foods can offer. To gain a foothold in a segment, they may launch a new product at a loss or with a very low margin. The value for customers can be offered in many ways, such as quality assurance of the brand, installation and repair services, financing plans for the purchase of products, physical product, equity at the point of sale, pre-purchase education and preparation provided by sales staff, word-of-mouth references, convenience of availability, etc. The conceptually perceived value is the maximum price a customer is willing to pay for the Jollibee product in the given competitive context.
In marketing strategy, the product is not considered a tangible product but rather the source of value to be delivered to customers. There are three main product line planning decisions that Jollibee Foods can make: product line breadth decision, product line length decision, and product line depth decisions. The Marketing Mix is a term used by companies to advertise their products or services on the market. Under the cost-based pricing strategy, Jollibee can determine what is needed to produce the product and put a profit margin based on the profits they want to make.
This includes pricing decisions, communication strategies, distribution channel management, and building infrastructure to provide post-purchase services. Jollibee Foods may introduce a new brand into their existing product line or strive to establish a completely new product line. The place or distribution channel is a set of processes through which Jollibee Foods delivers its products to customers. They must also consider if the product will look completely different from their existing products and how much risk there is of cannibalization of current brands by a new brand.
