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Creating the Winning Formula to Compete with Global Franchises

Bing Sibal-Limjoco, CFE Director for Membership, Philippine Chamber of Commerce and Industry Vice Chairman, Philippine Retailers Association. Creating the Winning Formula to Compete with Global Franchises. Top Franchises in the World. This list is more inclusive

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Creating the Winning Formula to Compete with Global Franchises

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  1. Bing Sibal-Limjoco, CFE Director for Membership, Philippine Chamber of Commerce and Industry Vice Chairman, Philippine Retailers Association Creating the Winning Formula to Compete with Global Franchises

  2. Top Franchises in the World • This list is more inclusive • List includes European franchises • DIA, a Spanish grocery retailer franchise, is in the top 10 • This list has only 1 Asian franchise – Kumon • Of the top 100, only 2 come from Asia • The 2 from Asia are Kumon and Eye Level • The rest are US franchises

  3. Top Franchises in the Philippines The best Philippine franchises in terms of gross revenues (1) USD 784m (2) USD 309m (3) USD 296m (4) USD 267m (5) USD 113m Source: Top 1000 Corporations in the Philippines

  4. Why Jollibee is Number 1 in the Philippines… • “If we want to compete (with McDonald’s) we have to make sure we at least equal them in all the other attributes. It was a challenge because in advertising, promotion, store look, size, playgrounds, service speed, we ranked lower. We focused on the other attributes one by one. • “We did a survey and, aside from taste of food, we were ranked higher by customers in courtesy and service style. Maybe they felt we were warmer…” • Tony Tancaktiong, • in an interview with Forbes Asia

  5. Jollibee’s Success Formula • Customer focus • Vision • Spirit of family and fun • Good quality • Location • Good partners • Culture • Marketing Source: Interview with Mr. Ernesto Tanmantiong, Jollibee Foods Corp. President in the Philippine Star

  6. ASEAN franchises can become giants in the industry…

  7. Potato Corner • A Philippine franchise selling flavored French fries • With overseas outlets in Indonesia, Malaysia, Panama, the Middle East, North Africa and the United States • Countries with the highest number of outlets • Philippines – 350+ • Indonesia – 45 • USA – 30

  8. Success Recipe of Top Franchises The most important ingredient is sensitivity to the needs of the consumers.

  9. Why Are They on Top? Subway is the number one restaurant franchise because it recognizes that serving healthy meals is a growing need of today’s consumers. 7-Eleven is the top franchise in terms of number of outlets because it offers convenience, which is a real need in today’s fast-paced society. McDonald’s is a global icon because it has recognized that today’s consumers want to be pampered no matter what socio-economic class it belongs to and so it upgraded the design of its stores to make its customers feel important.

  10. Globalizing ASEAN Brands If ASEAN brands want to succeed in the global arena we have to design products and services that the global consumers want and need.

  11. The Global Consumer Mindset I am one with the world. I am unique. I want it now. CUSTOMIZED CONVENIENT CONCERNED Source: Francorp Philippines

  12. Consumer Trends in Asia • Overseas workers remittance • Expanding middle class • Diversity of consumer tastes and lifestyles • “Mallification” of Asian cities • Bulging youth population in South and Southeast Asia • Rapid aging population in Northeast Asia and Singapore • Widespread use of English • The telecom revolution • Spread of university education

  13. Globalizing ASEAN Brands via the AEC The ASEAN Economic Community is an excellent opportunity for us to learn how to become more global in our marketing plans and product development.

  14. ASEAN Economic Community: A Time for Greater Cooperation • We have to work together to realize the collective goals of the AEC: • To make ASEAN a single market and production base • To make ASEAN a highly competitive economic region • To make ASEAN a region of equitable economic development • And to make the region fully integrated into the global economy

  15. Combining Strengths • Cambodia, Laos, Myanmar and Vietnam (CLMV): • The emerging economies of ASEAN • Thailand: • Geographical center of ASEAN • Gateway to CLMV • Philippines: • 100 million population • English-speaking and service-oriented labor force • Training hub • Malaysia: • Generous government support to the franchise sector • Indonesia: • Largest market in ASEAN (250 million) • Positive consumer outlook • Singapore: • Financing hub • High GDP per capita (USD 55,000) • Brunei: • Substantial foreign reserves

  16. Let us work together to make ASEAN a home to global franchise brands. Terimah kasi!

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