Yakult Marketing Plan

Yakult Marketing Plan ingressHistory of YakultYakult Honsha Ltd. was founded in 1930 by Dr. Shirota. For over the past 75 years, the community has expertise in the field of beneficial bacteria. The main activity of Yakult is to uncover a wide range of wellnessy foods, cosmetics and pharmaceuticals.In 1930, Dr. Minoru Shirota, who was conducting his investigate in a microbiology lab at the Medical Faculty of Kyoto University in lacquer, became the jump person in the world to create a pains of lactic acid bacteria beneficial to human wellness. This bacterium was named after Dr.Shirota Lactobacillus casei Shirota strain (Our History, 2010).In Malaysia, Yakult is still a young and growing company. Yakult Ace was scarce launched in Malaysia in 2004. Yakult (Malaysia) Sdn.Bhd. is a wholly professed subsidiary of Yakult Honsha, Japan (Yakult-Malaysia, 2010).VisionYakults vision is to push forward with the quest for sunrise(prenominal) possibilities for probiotics in the academic a nd medical fields.MissionYakults mission is to conduct to the health and happiness of every person without the world with the pursuit of excellence in purport sciences and the excellence in life sciences and the have of microorganisms.PhilosophySHIROTA-ISMPreventive medicineA healthy gut ternions to a long lifeA healthy life for solelyWe contribute to the health and happiness of people around the world through the pursuit of excellence in life science in command and our research and experience in microorganisms in particular (Philosophy, 2010).Issues and ch on the wholeengesIn the new years, several major issues and challenges were faced by Yakult. Yakult is face a dearth of stock to meet the demand of the people around the world. It is reported that in that respect is racy stock turnaround (Cruz, 2013).SWOT synopsisStrengthsDynamic question Development violenceRetrieved from the annual report of (Global Yakult Entering a smart Growth Stage, 2013), one of the stre ngths portrayed by Yakult is its dynamic research and development authority. With its 252 medical doctors and scientists, they actively pursue research aimed at applying bacteria effectively in the prevention and treatment of many diseases.The RD Division pursue basic research in life science meant at applying and ontogenesis basic materials in pharmaceuticals, food, cosmetics and other fields. Besides that, Yakult does their research and development at the Yakult Central Institute for Microbiological look into, which is situated in Tokyo, Japan. The aim of this central is to the study is to the use of beneficial bacteria in the promotion of health. Therefore, thither atomic snatch 18 continuous improvements inYakults products that outhouse improve consumers health for today and in the future.Good distribution channelAnother essential strength of Yakult is the rum distribution channel byYakult Ladies. It is a type of dropt overy service that delivers Yakult well-bred milk inebriations directly to the consumers home through a network of Yakult Ladies. harmonize to managing director Kouichi Nakayama (abhishek_g, 2012), door-to-door sales through the Yakult Lady System be more profitable than supermarkets sales.In Japan, more than 60% of Yakult products be distributed by Yakult Ladies. They deliver door-to-door every day, from rural beas to high-rise buildings in the city.However, in Malaysia, Yakult Ladies is in like manner available in delivering of impregnables. However, it is only available in certain regularize untold(prenominal) as Klang Valley, Negeri Sembilan, Melaka, Penang, Kuantan, Ipoh and hardly a(prenominal) other aras. The best thing is in that respect is no minimum order or delivery charge for the products (Fong, 2007).Weaknesses slight(prenominal) product choice for customers in terms of flavoursThe first weakness of Yakult is rentiness choice of flavours. There be only two flavours available which ar Yakult Ace and Ya kult Ace Light. Unlike its competitors, such as Vitagen and Nutrigen, these two brands practice out with products with variety of flavours which go out attract more people to debauch their products. As Malaysia is a multiracial country, various races of people have different tastes. Thus, Malaysians usually prefer to choose their drinks from a variety of flavours.Storage botherSecond is storage difficulty. The products are fermented milk drinks which contains active bacteria under(a) low temperature. However, if the temperature increases, the bacteria entrust eventually go bad inactive that leave alone turn the taste sour. This is because the bacteria will begin to make lactic acid when the temperature drops (FAQs, 2010). Therefore, iceboxs are necessary. However, consumers who do not own a refrigerator will find it a occupation. By the way, it will in like manner lead to a storage difficulty for retailer outlets with little storage substance as they still have other pro ducts brand they need to keep. This will cause an imbalance of stock availability during different time of the outlets. This problem alike influences consumers purchase intention that does not have a refrigerator.littler publicity and higher(prenominal) price compared to competitorsAnother weakness of Yakult is that the promotional material of Yakult is depletedish compared to its competitors. One feeding bottle of Yakult contains 80ml well-bred milk drink while competitors such as Vitagen and Nutrigen serve in 125ml per bottle (TK-eShop, 2010).Besides that, according to Yakult, it is beauteous for consumers to drink more than 80ml of Yakult well-mannered milk. Therefore, consumers who drink more than one bottle may go for other competitors product who sells in larger packaging (FAQs, 2010).Yakult products are sold in a bundle of 5 bottles, which is the equivalent with its strong competitors such as Vitagen and Nutrigen. However, the Yakult civilized milk drinks price is h igher than the competitors, who offer their drinks in bigger bottles too.OpportunitiesTrends in health concernsFew studies shows that more and more people are concerned more or less their health problem and health sentiency is becoming increasingly historic nowadays (Rollins, 2008) (Senterfitt, Long, Shih, Teutsch, 2013). This is an opportunity for Yakult since Yakult has already scientifically proven that their products are not bad(predicate) for health. Consumers are turning to dairy products, yoghurts and so forth to start their day.In Yakults advertisements, the company informs consumers that their products are probiotic drinks which are good for peoples health. This increases health awareness of the people. Besides that, Yakults brand recognition also increases among consumers during this process. The creative thinking of Yakults advertisement helps in promoting health by emphasizing beneficial bacteria for intestinal balance of consumers which ultimately leads to good he alth.Increase in number of thingmajig stores and hypermarketsAccording to (Wong, 2007), the number of convenience stores and hypermarkets are increasing. It room that Yakults distribution channel will also increase. Yakults product can be sold in more and different places. Consumers will also find it easier and more convenient to demoralise Yakults product from the hypermarket or convenience stores nearest to them.ThreatsIntense arguingYakult faces a tough competitive environment in the market. There are convertible healthy foods and also probiotic drinks in the market. Yakults main competitors are Vitagen and Nutrigen that has strong brand recognition in the Malaysian market. Vitagen is the first cultured milk to be introduced in Malaysia which is also known as the number one cultured milk in Malaysia. As for Nutrigen, it also provides cultured milk which is comparable to Yakult and also Vitagen. These competitors have their own competitive advantages compared to Yakult in te rms of the flavours they offered which can suit different consumers taste with their different flavours available. dispirited overcomeing speak toBesides that, consumers in Malaysia do not position hold high switching woo if they choose to switch to other crime syndicate of healthy foods. Yakults price offering is also a scourge as they offer in higher prices and also smaller packaging compared to competitors. Consumers who are price sensitive may choose competitors product preferably of Yakults. Thus, Malaysians can switch to another drinks or brands whenever they want if there are intervene products available with lower prices. They can also shop favourably and also choose selectively without sticking to one supplier.Competitors use raptorial marketing techniqueYakults competitors uses aggressive marketing plan to set ahead their products such as advertising in traditional media like video advertisement, radio, social network sites and forth, especially Vitagen. With this, competitors are more recognizable to consumers than Yakult. As Yakult does not usually do aggressive advertisements to promote their brand, consumers are more likely to be aware of competitors brand than Yakult. Besides that, the marketing plans that are not heavily invested are usually advertisements that are easy duplicated.drop in consumers purchasing powerMillions of middle-class Malaysians are slimy from low consumer expending growth while increasing in acres controlled electricity and gasoline costs since 2008 (Koon, 2014). As a result, mid to higher end choices of swallow nurtureed a decrease on the sales (Consumer outlay to tedious down in 2014, 2014) (Koon, 2014). The economic downturn has contributed greatly to the slow growth of the purchasing power as Yakult is not a demand in consumers daily life. Yakult is a probiotic drink, where consumers who desire for a remediate health can consume it continuously and not a necessity for consumers to drink them as a must in order to survive.INDUSTRY ANALYSIS BY USING PORTAL FIVE FORCESa) Threat of new first appearanceYakult probiotic beverage falls into a broad and safe market, especially the awareness and concern of people on health are increasing. Probiotic drinks are well-fixed and popular for consumers and bring a considerable return to the company. This has made the cultured milk market seems attractive to the market, where it attracts many outsiders that tries to enter this perseverance. However, the capital cost to enter this industry is recounting high compared to other beverage industry. As probiotic beverage requires friendly bacteria such as lactobacillus acidophilus that are big(a) to produce and refine it to produce a drinkable beverage.Potential entrants who appetency to enter this industry need to invest heavily on Research and Development as well as pharmaceutical department in order to produce a probiotic beverage. As Yakult has been proven by many professors such as Dr K o Okumura (Juntendo University, Japan), Dr. Haruji Sawada and others, the credibility of Yakult beverage is high, which result to a high entry barrier for new entrants as well.Furthermore, potential entrants need to make sure they are able to differentiate their product from Yakult in term of higher nutrition or lower price or both. If firms are not able to come out with a better beverage than the living beverage in market, then there is no point they enter the market as this will deficit the company.In a nutshell, the entry barrier for new entrants to enter this industry is high. Yakult is facing low threat of new entrants.b) Threat of substitutePorters threat of substitute definition is the availability of a product that the consumer can purchase sooner of the industrys product with similar benefits. Eventhough Yakult is the groundbreaker of probictic, substitutes products are still able to substitute them. Customers can easily replace Yakult by purchase bottle of probiotic cap sule, probiotic powder or probiotic drink. Example of probiotic appendages is Kordels Protect probiotic powder, which cost around RM70 for 30 sachs. Yogurt drink and yogurt powder are also substitutesthat can replace Yakult products.The more substitute the products are, the more competitive the industry is. In the long run, Yakult may suffer less profit. In this case, there are some substitute products in market that can replace Yakult products, so they are facing high threat of substitute products.c) Bargaining power of supplierBargaining power of supplier occurs when buyers are too many but only few suppliers in the market. When it is too costly to change suppliers, the bargaining power of suppliers is relative high. The Yakult Plant in Calamba city, Laguna, is able to produce 1.6 million bottles of Yakult a day. In order for them to produce a bottle of 100ml Yakult Probiotic beverage, they will need few raw materials such as skimmed milk powder, sugar, and dextrose is ruffle w ith sterilized water to create a sweet, milky solution. While all these raw materials are not unique or highly tell product. Which means Yakult can get them from few suppliers, as there are not only one supplier in the market that supplies sugar, skimmed milk powder and dextrose. The suppliers industry is not dominated by small number of firm, thus the bargaining power of supplier is not offensive for Yakult. Furthermore,Yakult uses backward integration, where they have their own manufacturing factory to produce their probiotic beverage. The main element in the probiotic dairy beverage, liveLactobacillus caseistrain Shirota is carefully cultured and tested in Yakult own laboratory. In other words, Yakult does not rely on outsider to get their main raw material, but they produced it themselves in their own laboratory and factory. In a nut shell, Yakult is immune with the power of supplier, as they having few suppliers instead of rely on one supplier.d) Bargaining Power of BuyersBu yer power is one of the forces that shape the competitive structure of an industry. When the power of buyer is strong, they can pressure the sellers to lower down the prices, improve product quality or better service. In contra, weak bargaining power of buyer will often makes an industry less competitive and increases the profit potential for seller. In this case, Yakult are facing high bargaining power from their buyers. Firstly this is because there are available substitute and large range of probiotic drink in the market that offered similar benefit to the customers, for example Vitagen, hold tight Yogurt drink, and probiotic supplement beverage. Yakult is not the only firm that produce probiotic daily beverage. Customers can easily switch to other product that available in the market, customers switching cost is low.Secondly, customers are price sensitive towards the beverage. If Vitagen probiotic drink is having promotion and the prices are much cheaper than Yakult Ace drink, customer will simply switch to purchasing Nestle yogurt drink. Thirdly, Yakult probiotic daily drink is not highly differentiated and standard. It become a daily basis for some consumer, thus consumer can switch to other brand that provide the same function as Yakult. In a nutshell, the bargaining power for Yakult buyer is relatively high.e) Threat of competitorThe intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another and limit separately others profit potential. High intensity of rivalry means competitors are aggressively targeting each others markets and aggressively price products. While low intensity of competitive rivalry makes an industry less competitive and increases profit potential for the existing firms. The rivalry in probiotic beverage is minimal. Firstly this is because few competing firms are roughly doing the same size and share the same amount of customers.Yakult, Vitagen, Nestle a re sharing the almost similar market share. Secondly, there are lack of product differentiation for the existing brand in the market, Yakult, Vitagen, Nestle are offer the almost similar probiotic daily beverage in the market. This three probiotic beverage different in some ways but they do share the similar feature article as well, which are help strengthen immune system and velvet-textured the digestive system. Thirdly, customer brandloyalty is not significant, customer who consume Vitagen beverage efficacy switch to consume Yakult on some day, and same goes to consumer for Yakult. In a nutshell, the threat of rivalry is minimal for Yakult Company.REFERENCESabhishek_g. (12 June, 2012). Yakult. Retrieved 17 June, 2014, from Slide Share http//www.slideshare.net/abhishek_g/yakult-13298536Consumer spending to slow down in 2014. (9 January, 2014). Retrieved 26 June, 2014, from The Sun Daily http//www.thesundaily.my/ watchword/925542Cruz, H. (13 January, 2013). Vision, Mission, Objec tives, Goals, Prob. its Background. Retrieved 30 June, 2014, from Prezi http//prezi.com/mvkfvph4nkz0/vision-mission-objectives-goals-prob-its-background/FAQs. (2010). Retrieved 15 June, 2014, from Yakult http//www.yakult.com.my/html/faqs.htmlHonsha, Y. (2013). Global Yakult Entering a New Growth Stage. Japan.Koon, C. P. (7 January, 2014). Malaysians Seen Curbing Spending as Living Costs hurry Economy. Retrieved 26 June, 2014, from Bloomberg http//www.bloomberg.com/news/2014-01-07/malaysians-seen-curbing-spending-as-living-costs-surge-economy.htmlPhilosophy. (2010). Out Philosophy. Retrieved 10 June, 2014, from Yakult http//www.yakult.com.my/html/our_philosophy.htmlRollins, C. (16 December, 2008). RAISING health CONSCIOUSNESS UTILIZING UNNATURAL CAUSES SERIES AS STIMULUS . Retrieved 30 June, 2014, from https//www.wpi.edu/Pubs/E-project/ operational/E-project-121808-155128/unrestricted/Chris_Rollins_wellness_IQP_Final_v3.pdfSenterfitt, J. W., Long, A., Shih, M., Teutsch, S. M. (Ja nuary, 2013). 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