National College of Business and Arts

Taytay, Rizal

A Research presented to the

National College Business and Arts

In partial Fulfillment of The

Requirement for the

International Business and Trade

Submitted by:

Bernardo, Marc
Bulan, Alyssa
Macababbad, Monica
Rugay, Princess Ira
Tolentino, Erika

Submitted to:

Mary Ann T. Belesario

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 I. History and Background

The Indon phenomenon of long lines and crowds was brought in 2012 to the
Philippines when the Indonesian donut brand J.Co opened its first local outlet March 15 at the
ground floor SM Megamall in Ortigas, Mandaluyong.

Since then, J.Co has opened a dozen branches in the Philippines, part of about a 150-store
(and growing) chain that began as an experimental coffee shop eight years ago in Jakarta,
Indonesia.

J.Co is actually the name of the founder, Johnny Andrean, 52, a gutsy but immensely likeable
and warm Indonesian entrepreneur. He started in business as a young man 35 years ago,
building first a chain of hair salons, Andrean, with some 130 shops today, the biggest in
Indonesia.

Andrean then shifted to designer breads, becoming the franchisee of the Singaporean
bakeshop BreadTalk, which by March this year had at least 101 branches in Indonesia alone.

It is in donut and coffee shop business that Andrean is making his mark and building a business
empire with his innovative, award-winning designer donuts J.Co.

The caviar of donuts, J.Co commands the highest prices compared with its older and new rivals.
“It’s everything you ever wanted in donuts,” says the company’s website. With unique flavors
and delicacy, it slowly melts in your mouth. That unbridled selfie is, of course, advertising blurb.
But crowds in many J.Co outlets in the region are a veritable testimonial that the claim is not a
lie.

Johnny got the idea of a donut and coffee shop from his travels abroad. After the 1997 Asian
Crisis in Indonesia, he left for the United States with his wife and four children (three girls and a
son). While abroad, he observed the operations of the Krispy Kreme donut network, the
restaurant chain Cheesecake Factory, and the ubiquitous Starbucks coffeehouse.

“These are mainly fast food chains,” notes Andrean. “But I didn’t want to do fast food. I wanted
to do something dine-in, with a better experience (for the customer) and with a nice ambience.

The first J.Co opened on June 26, 2005. In just four months, the outlet made money. Now on its
eighth year, J.Co currently has 120 outlets in Indonesia, 12 in Malaysia and the Philippines, four
in Singapore, and two in China.

Carlos Chan and Injap Sia

The Philippine franchise for the Indonesia donut and coffee chain is owned by a company called
Contemporain Foods Inc., which has among its major investors Carlos Chan of Liwayway-Oishi
fame and Edgar “Injap” Sia, the founder of Mang Inasal, chicken chain bought by Jollibee Foods
Corp. The two have also been franchised by giant hotel group Jin Jiang Inn Co. Ltd. of China to
build up to 30 budget hotels in the Philippines.

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The 12 J.Co outlets in the Philippines are in: SM Megamall, SM Mall of Asia, Greenbelt 3,
TriNoma, SM Fairview, Alabang Town Center, Eastwood, The District Cavite (Imus, Cavite),
Centrio Mall (Cagayan de Oro City), SM North EDSA, SM Pampanga, and Glorietta 2.

The next six stores will be in Araneta Center, UP Town Center (new Ayala Mall at Katipunan
Ave.), Greenhills Promenade (new Promenade building), SM Southmall, Veranza (KCC mall in
General Santos City), and Lucky Chinatown.

Noting the crowds in his outlets and the huge demand for high-quality donuts, Carlos Chan has
promised to have 100 stores in the Philippines eventually. He is no stranger to the food
business.

Chan’s Shanghai-based Liwayway group owns 18 Oishi potato chip and drinks factories in Asia:
China 11, Philippines four, Vietnam two, and one each in Thailand, Cambodia, India, Indonesia,
and Myanmar.

On the other hand, Sia’s Mang Inasal chicken chain now has 465 stores, 22% of the total
Jollibee fast food stores in the Philippines.

After a year, J.Co has already implemented a 20% price increase. Its donuts used to retail for
only P35 apiece. Now these are priced at P42 per piece and are still selling like hotcakes. A half
dozen retails for P230, one dozen P350 and two dozen P550. The donuts also come in smaller
versions, the J.Pops or baby donuts in a dozen bundle.

In contrast, Krispy Kreme sells for P35 apiece, Dunkin Donut P20 and Mister Donut P15

The top-selling J.Co donuts come with fancy names like Alcapone, Oreology, Tiramisu,
Avocado Di Caprio, Mr. Green Tea, Why Nut, Blue Berrymore, Don Mochino, Choco Caviar
Chocolate, Crunchy Crunchy, and Crème La Fame.

Alcapone, the best-selling donut, has white Belgian chocolate and roasted California almond
slices on top of J.CO’s trademark soft-bite donut.

On the other hand, the company’s J.Coffee, from the simple espresso to iced hazelnut latte, is
claimed to be “the unique flavor of Italian blends”. The coffees come in at least a dozen flavors
and concoctions. It also has Cafe Avocado where “rich Italian coffee meets smooth avocado”.
J.Co’s unique version of the cappuccino is called Jcoccino.

J.Co’s yogurt, meanwhile, “has toppings made from the freshest fruits”.

J.Co also carries sandwiches – club sandwiches.

Why it’s successful

Andrean explains the factors behind the success of J.Co: The best flour, from soft wheat. The
best ingredients like the best chocolate specially designed by Andrean himself, the best nuts
like California almonds, and the best fruits.

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Then there is the coffee— 100% Arabica coffee blended with the Indonesian coffee— Sumatra,
Sulawesi, Toraja. “We are very good in coffee,” gloats Andrean.

Add in-store baking and remarkable orange-motif ambience, and you have J.Co.

Analysts estimate each J.Co store makes about 40% margin, with the remaining 60% going to
food, equipment and rental.The success of J.Co has attracted copycats. A Malaysian
entrepreneur has started Big Apple using exactly the same concepts of J.Co.But one Malaysian
blogger, Christopher, a businessman, finds J.Co much better for the following reasons:Variety,
better ingredients (their dough is tastier and softer. Plus their toppings are really good especially
those chocolaty and fruity ones. Not to forget, they are also pretty generous with their fillings),
better coffee (They use Italian blend and the chocolate gives me the kick I needed), and the
ambience (The first thing that came to my mind when I stepped into J.Co is that their sofa is
really classy and comfortable).

II. Home and Host Country

HOME COUNTRY:

INDONESIA:

AMBON

Ambon City Centre

 Jl. Wolter Monginsidi Baguala

 Maluku City Mall
 Jl. Sultan Hasannudin Tantui Ground Floor
 Balcony Balikpapan
 Jl. Jendral Sudirman, Klandasan Ulu Ground Floor G-6
 E-Walk Balikpapan Superblock
 Jl. Jend. Sudirman No. 52
 Giant MT Haryono Balikpapan
 Jl. MT Haryono Kel Damai Kecamatan Balikpapan Selatan Jl. MT Haryono No. 40
Ground Floor Unit G2
 Suzuya Mall Aceh
 Jl. Teuku Umar Setui Ground Floor
 Boemi Kedaton Mall
 Jl. Teuku Umar - Sultan Agung No. 1 Kedaton Floor Unit R1
 Chandra Mall
 Jl. Hayam Wuruk Pemuda I Tanjung Karang
 Bandung Indah Plaza
 Jl. Merdeka 56 GF #39 & 50

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 Jl. Buah Batu No. 161, Cijagra, Lengkong, Kota Bandung, Jawa Barat, Indonesia
 Cihampelas walk
 Jl. Cihampelas 160 Unit GF-01
 Festival Citylink
 Jl. Peta No. 241 Unit GF No. 12
 Istana BEC
 Jl. Purnawarman No 13-15 Sumur Bandung U SL A-01
 Istana Plaza
 Jl. Pasir Kaliki 121-123 Unit GF (Ground Floor) No. A-24
 Miko Mall Bandung
 Jl. Kopo No. 599 Cirangrang Babakan Ciparay Ground Floor 01
 Trans Studio Bandung
 Jl. Gatot Subroto 289 Ground Floor B 150-156
 Ujung Berung Town Square
 Jl. A. H. Nasution, Ujung Berung, Cigending
 Giant A Yani Banjarmasin
 Jl. Ahmad Yani KM 5
 Q Mall Banjarmasin
 Jalan Ahmad Yani KM. 36, 8 Komet Banjar Baru Utara
 Batam City Square
 Mall batam city square lt dasar block c2 no 5. jalan bung rya baloi
 Harbour Bay Mall
 Jl. Duyung Batu Ampar GF No. 11-13
 Kepri Mall
 Jl. Jendral Sudirman Unit GS 11-13 Simpang Kabil Sukajadi
 Mega Mall Batam Center
 Jl. Engku Putri Batam Center Pulau Bintan Ground Floor No. 271
 Nagoya Citywalk Batam
 Jl. Iman Bonjol Pintu C1 No. 1 Lubuk Baja Nagoya Batam Ground Floor
 Nagoya Hill Batam
 Nagoya Superblok Ruko (2Lt) Rm. 016
 Blu Plaza
 Jalan Chairil Anwar No. 27-36 Ground Floor
 Giant Harapan Indah
 Jl. Boulevard Harapan Indah Medan Satria Ground Floor
 Grand Galaxy Park
 Jl. Grand Galaxy Boulevard No. 1 Floor 1 Unit D32
 Grand Metropolitan Mall
 Jl. K. H. Noer Ali
 Mega Mall Bekasi Hypermall
 Jl. Ir. Juanda No. 1
 Metropolitan Mall
 Jl. KH. Noer Alie (Samping Pintu Tol Bekasi Barat) Lantai Basement
 Plaza Cibubur

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 Jl. Alternatif Cibubur-Cileungsi KM 2-3
 Revo Town (Bekasi Square)
 Jl. Jenderal Ahmad Yani No. 121-123 Pekayon
 Citiemart Plaza Bitung
 Jl. Wolter Monginsidi, Wangurer Bar, Kota Bitung
 Ahpoong Sentul
 Jl. Ir. H. Juanda Kav 79 Eco Art Park Sentul City
 Botani Town Square
 Jl. Raya Padjajaran, Baranangsiang Ground Floor G83-G85
 Giant Sentul
 Jl. MH Thamrin Sentul City Citarunggul Citeurup Ground Floor Unit G13
 Lippo Plaza Bogor
 Jl. Siliwangi 123 GF No. 9-11
 Mall Metropolitan Cileungsi
 Jl. Metro Kota Taman Cileungsi
 Ramayana Bogor Yasmin
 Jl. Seremped Wetan, Kedung Jaya
 Cibinong City Mall
 Jl. Tegar Beriman No. 1 Pakansari
 Citiemart Plaza Bitung
 Jl. Wolter Monginsidi, Wangurer Bar, Kota Bitung
 Rest Area KM 39
 Rest Area KM 39 Tol Cikampek
 Cikampek - 17530
 Rest Area KM 72
 Rest Area KM72 - 73 B Tol Purbaleunyi
 Citywalk Lippo Cikarang
 Jl. MH Thamrin Kav 108 Unit W12, W24
 Hollywood Junction Cikarang
 Jl. Mekarmukti, Cikarang Utar
 Lippo Cikarang Mall
 Jl. MH Thamrin Lippo Cikarang
 Cirebon Superblock
 Jl. Dr. Cipto Mangunkusumo 26 Ground Floor G-18
 Grage City Mall
 Jl. Jend. A. Yani Lemahwungkuk Kawasan Grage City Lt. GF
 Grage Mall Cirebon
 Jl. Tentara Pelajar No. 1 Grage Mall GF No. 062
 Gatot Subroto Bali
 Jalan Gatot Subroto 11 - 15 Pertokoan SE Supermarket
 Jl. Teuku Umar Blok C9, Denpasar, Bali GF No. A19B
 Mall Bali Gale

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HOST COUNTRY:

HONG KONG STORES:

Hennessy Road

 Shop 1 & Shop 2 Ground Floor 55, Hennessy Road, Wan Chai Hong Kong
 Mong Kok
 Shop 1 & 2, 585 Nathan Road, Righteous Building, Mongkok Hong Kong
 Tseung Kwan O

MALAYSIA STORES:

JOHOR BAHRU

 AEON Bukit Indah

 AEON Tebrau City
 City Square
 KSL City Mall
 KEDA
 Mall Aman Central Alor Setar

KUALA LUMPUR

 Berjaya Times Square

 MyTown Shopping Centre
 Pavilion

MELAKA

 AEON Bandaraya Melaka

 PENANG
 G Hotel Gurney
 Queensbay Mall Penang

SELANGOR

 Jusco Cheras Selatan

 Kota Damansara

SINGAPORE STORES:

 Paya Lebar Square

 Raffles City Shopping Mall
 Tampines 1 Shopping Mall

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PHILIPPINES STORES:

Bacolod city

 Ayala Bacolod

BAGUIO

 Ayala Baguio
 SM Baguio

CAGAYAN DE ORO CITY

 Centrio

CAVITE

 The District

CEBU

 Ayala Cebu
 SM Cebu
 SM Davao
 Ayala Davao Abreeza

GENERAL SANTOS CITY

 Veranza Mall

ILOILO CITY

 Robinson Iloilo
 SM City Iloilo

PAMPANGA

 Marquee Mall
 SM Pampanga

METRO MANILA

 Alabang Town Center

 Araneta Center
 Bluebay Walk
 Eastwood
 Fairview Terraces
 Forbes
 Glorietta 2
 Greenbelt 3
 Greenhills Promenade

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  HP Village Square
 Kidzania
 Lucky China Town
 Market Market
 Paseo Center
 Robinson Galleria
 SM BF Homes
 SM Fairview
 SM Mall of Asia
 SM Megamall
 SM North EDSA
 SM Southmall
 Trinoma
 UP Town Center (Katipunan)
 Tomas Morato –
 U.N. Avenue

III. Main Office ( Philippines )

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  The main office of jco Philippines are located at Blue bay walk, Macapagal
Avenue Corner edsa, Libertad, Pasay City
 Open hours, Monday to Sunday 10am to 10pm
 contact number 02 801134 or 09325318952

IV. Product and Services

J.CO DONUTS:

Glazzy -
Jacky Chunk
Copa Banana
Black Jack
Sugar Ice
Crunchy Crunchy
Jcoccino
Snow White
Don Mochino
Alcapone
Tiramisu
Mr Green Tea
Oreology
Hola Mango
Why Nut
Heaven Berry
Coco Loco
Mona Pisa
Cheese Me Up
Choco Nuttzy
Hello Berry
Choco Caviar
Choco Caviar Strawberry
Meisisipi
Avocado Dicaprio
Blueberry More
Forest Glam
Hi Lychee

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J. POPS

Glazzy -
Jacky Chunk
Copa Banana
Black Jack
Sugar Ice
Crunchy Crunchy
Jcoccino
Snow White
Don Mochino
Alcapone
Tiramisu
Mr Green Tea
Oreology
Hola Mango
Why Nut
Heaven Berry
Coco Loco
Mona Pisa
Cheese Me Up
Choco Nuttzy
Hello Berry
Choco Caviar
Choco Caviar Strawberry
Meisisipi
Avocado Dicaprio
Blueberry More
Forest Glam
Hi Lychee

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J. COFFEE

Americano
Avocado Frappe
Blueberry Yogurt
Caramel Frappe
Choco Forest Frappe
Chocolate Frappe
Choco Mint Frappe
Classic Brewed Coffee
Espresso
Green Tea Latte
Hazelnut Chocolate Frappe
Hazelnut Latte
Hot Chocolate
Iced Chocolate
Iced Green Tea
Iced Lemon Tea
Iced Thai Tea
Jcoccino
Jcoccino Frappe
Latte
Machiato
Mocha Espresso Frappe
Oreo Frappe
Strawberry Yogurt Frappe

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J. CLUB

J.Club Cheezy Rich

J.Club Katsu
J.Club Salami
J.Club Sausage
J.Club White Velvet

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J. COOL

J.Cool Single
J.Cool Couple
J.Cool Sharing
J.Cool To Go
Go Ambiance

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V. SWOT analysis

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