Market Structure

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Market Structure

Market Structure - Demand Population growth rate more than 4% per year. Consumer preference: quick, quality, clean, convenient, and affordable dining experience. Customization products (e.g. rice meals for Filipinos, potato fries for Americans) Domestic: 3-8% annual growth rate in the Philippines Average annual income of Php 62,000 for “poor” families and Php 268,000 for “rich” households.

Market Structure – Demand (cont.) Status – Domestic Fast Food: Entrants of foreign cuisine (e.g. Asian, European, Western) Jollibee as market leader for Philippine Fast Food Export: Jollibee branches in other countries (Middle East, North America, Southeast Asia) Chowking’s expansion abroad Projections: Improving food and service quality over time Expansion by opening more stores Product Development

Market Structure – Supply Mixture of local and foreign brands: Jollibee (operated by Jollibee Foods) McDonalds (locally controlled by Alliance Group) Domestic: Sources: Annual Reports from JFC and AGI and corporate websites.

Market Structure – Supply (cont.) Imports: Rice importation Other products Projections: Largest index of value among other industries Continuous increase in population Sales growth of leading brands Business expansion

Market Structure – Cost and Prices Cost and Prices: Ala-carte meals at Php 50-150 Combo meals at Php 82 on the average / Premium items at Php and above Factor goods (Source: Bureau of Agricultural Statistics, 3/2011) Commodities Average Price (in Php) Potatoes 60 / kilo Ground Beef 240 / kilo Well-Milled Rice 35 / kilo Cooking Oil 54 / liter Dressed Chicken 130 / kilo

Market Structure – Capacity Utilization Average of 100 seats for dining customers Number of Consumers: 200 pax / branch / day (at 110 sq. m store size) Number of Transactions: 100 orders (from 11AM-2PM) Number of Meals per Transaction: two (2) meals Source: Mang Inasal Baclaran branch

Financial Structure

Financial Structure Financial Performance Jollibee Foods Corp grew a net profit last year by 16 percent to P3.09 billion

Financial Structure

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