MKTG1199 – Marketing Principles

Semester 1, 2014
Assessment: Marketing Plan

Yakult

Yakult
Table of Contents
Executive Summary...............................................................................................................................3
1. Situation Analysis.......................................................................................................................4
1.1 Micro Environment............................................................................................................4
1.1.1 Company....................................................................................................................4
1.1.2 Marketing Intermediaries..........................................................................................4
1.1.3 Customers..................................................................................................................4
1.1.4 Competitors...............................................................................................................4
1.1.5 Public.........................................................................................................................4
1.2 Macro Environment...........................................................................................................5
1.2.1 Demographic..............................................................................................................5
1.2.2 Economic....................................................................................................................5
1.2.3 Natural.......................................................................................................................5
1.2.4 Technological.............................................................................................................5
1.3 SWOT Analysis: Yakult.......................................................................................................5
1.3.1 Strength.....................................................................................................................5
1.3.2 Weakness...................................................................................................................6
1.3.3 Opportunity...............................................................................................................6
1.3.4 Threat.........................................................................................................................7
1.4 SWOT Analysis: Vitagen.....................................................................................................7
1.4.1 Opportunity...............................................................................................................7
1.4.2 Threats.......................................................................................................................8
2. Corporate Objectives.................................................................................................................8
2.1. Mission..............................................................................................................................8
2.2. Vision.................................................................................................................................8
3. Marketing Objectives.................................................................................................................8
3.1. Quantitative.......................................................................................................................8
3.2. Qualitative.........................................................................................................................8
4. Selection and Measuring of Target Market...............................................................................9
4.1. Market Overview...............................................................................................................9
4.2. Size of potential market.....................................................................................................9
4.3. Survey Findings..................................................................................................................9
4.4. Market Segmentation......................................................................................................15
4.5. Consumer Behaviour.......................................................................................................16

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 4.6. Target Market Strategies.................................................................................................16
5. Perceptual Mapping................................................................................................................16
6. Strategic Marketing Mix..........................................................................................................17
6.1. Product............................................................................................................................17
6.2. Price.................................................................................................................................17
6.3. Promotion........................................................................................................................17
6.4. Distribution......................................................................................................................17
7. Action Plan...............................................................................................................................17
8. Control and Evaluation............................................................................................................17
9. Conclusion...............................................................................................................................17
References...........................................................................................................................................18
Appendices..........................................................................................................................................18

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Executive Summary

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1. Situation Analysis

1.1 Micro Environment

1.1.1 Company
Yakult Honsha Co., Ltd begins with manufacturing and selling of probiotic
cultured milk drink. As the company expands, they broadened their range of
products into cosmetics and pharmaceutical businesses. The company
currently has expanded its network over 33 countries with 10 principal
subsidiaries.
(http://www.yakult.co.jp/english/pdf/profile2013-2014.pdf)
(http://yakult.com.sg/globalnetwork/)

1.1.2 Marketing Intermediaries

Yakult can be seen in all hypermarkets in Singapore like Fairprice, Giant,
Cold Storage, Sheng Siong and etc. Major convenience store like 7-11,
Cheers and also some neighborhood convenience store also sells Yakult.

1.1.3 Customers
For Yakult they have different customer markets that make up their current
customers base. For international market, Yakult has expanded themselves
into 33 countries with plants or company set up there selling their product.
Consumers buy Yakult for their own and family members to consume which
made up Yakult’s consumer market. Fruit juice and other beverage store
add Yakult into their drink creation and sell to their own customer which
Yakult’s business market purchases Yakult to produce their final product. As
stated in marketing intermediaries which are also reseller market, hyper
markets and convenience stores sells Yakult to consumers.
(http://www.yakult.co.jp/english/pdf/profile2013-2014.pdf, pg 23)

1.1.4 Competitors
Vitagen is the biggest competitor to Yakult. Vitagen also sells probiotic
cultured milk drink that is commonly seen in all hypermarket, major
convenience store and neighborhood convenience store. Vitagen are
normally placed next beside Yakult in most of these reseller markets.
Another competitor to Yakult will be Meiji. They have a probiotic cultured
milk drink named Meiji Paigen, which is not commonly seen in the
Singapore’s market. Only selected stores have it.

1.1.5 Public
Media like television, radio and publications help Yakult to publish articles.
For television, Yakult co-sponsored Mediacorp, Channel New Asia TV
programme “Japan Hour” which will be broadcast during 2014. Newspaper
“Lianhe Wanbao Supplement – Healthy Monthly” publishes the advantages
of drinking probiotic drink and how L.casei Shirota bacteria help in human
digestive system. Radio Gold 90.5fm also helps Yakult to educate consumers
about probiotics and how does it help in maintaining healthy lifestyle.
(http://yakult.com.sg/category/media/)

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 1.2 Macro Environment

1.2.1 Demographic
Yakult are suitable for all ages except babies below 1 year old. They are sold
in 33 countries over the world.
(need survey result for more info)
(http://www.yakult.com.my/html/faqs.html)

1.2.2 Economic
Need survey result for more info

1.2.3 Natural
Since 1991, Yakult Honsha has established an organization for
environmental measures and by 1997 the entire Yakult Group has enacted
Yakult’s Basic Policy on the Environment. Yakult Group has also reduced it
environmental impact to the world in all their business units with they have
been practicing since Yakult’s Basic Policy on the Environment enacted.
(http://www.yakult.co.jp/english/pdf/profile2013-2014.pdf , pg28)

1.2.4 Technological
Yakult Central Institute for Microbiological Research does research in life
sciences which based on concepts from the founder Dr. Minoru Shirota of
preventive medicine and healthy intestinal . The institute studies not only on
Yakult drink it self, they also studies cosmetic and pharmaceutical ingredient
that are beneficial to human health. As it expands, by 2015, 4 more research
buildings would be completed. These buildings are equipped with cutting-
edge facilities and research equipment to contribute to the society.
(http://www.yakult.co.jp/english/pdf/profile2013-2014.pdf , pg8)

1.3 SWOT Analysis: Yakult

Strength Weakness
 Strong brand image and  Storage difficulty
reputation  Small business unit(limited
 Product positioned as product line)
health and wellness theme  High cost of R&D

Opportunity Threat
 Health lifestyle products  Strong competitors
 Global target segment  Government regulation

1.3.1 Strength
 Strong brand image and reputation

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 Yakult is the flagship probiotics drink brand and pioneer in the field of
probiotics industry. Yakult is well-established in Asian countries and also
known as healthy life drink for everyone despite children, youth or
senior-citizen.

 Product positioned as health and wellness theme

Yakult also launched new probiotics drink product which designed for
people who has high blood pressure. The company has create several
marketing campaign and named as “Try Four Weeks and See for
Yourself” across multiple marketing channel such as television,
newspapers, internet and others. Yakult is able to create health
awareness to their consumers and have significant product positioned
as health and wellness products.

1.3.2 Weakness
 Storage difficulty
Yakult needs to store below temperature at 10 ° C to make it fresh and
maintain intact. The storage above 10 ° C the bacterial will become
active and decrease quality of Yakult. It will lead the inconveniences of
storage difficulty for consumers. This is the potential weakness arising
from Yakult.

 Small Business units (limited products in the market)

Yakult has very limited product line. In Singapore there are only two
types of Yakult, Yakult (five flavours) and Yakult light. Limited product
line will affect consumers buying behaviours. It is also difficult to
maintain customers’ loyalty as customers will looking for something
special and better.

1.3.3 Opportunity
 Produce healthy lifestyle products (biscuit)
In the recent years, Yakult launched several new products such as Mil-
Mil, drinkable yogurt with limited flavors. Other than that, Yakult has
launched new cosmetics products like Revecy series and Yakult
Beautiens Brillant, The Cream in Japan. These products lead growing in
Yakult popularity and also growing demand for probiotics of skin care
products in the market.

 Global market target segment

“US consumers are also anxious to offset rising healthcare costs,

meaning they are more likely to take a long-term approach to managing
their health.” According to the statement show that US consumers are
looking for long-term, low cost and great healthy lifestyle approach.
Besides that, US consumers knowledge of probiotics has rising over
the years. This show how researchers and manufacturers are educating

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 and promoting benefits about probiotics from press report and product
marketing. Consumers are more conscious about our health thus it
increases in demand for probiotic products. [ CITATION Mar08 \l 1033 ]

India is one of the high potential probiotics markets and Yakult has
further expanded their business to South India. Based on their research,
Chennai consumers have their awareness about healthcare and
therefore high demanding of healthy food has rising over the
years. Hence, Yakult planned and put their products in modern outlet
which own well and complete cold storage facility.[CITATION Pro12 \l
1033 ]

1.3.4 Threat
 Strong competitors
Yakult faces many competitors in the probiotic market in Singapore.
Vitagen has launched Vitagen less sugar in 2005. Vitagen less sugar has
reduced their sugar intake 50% than regular milk drink and also Vitagen
collagen less sugar contains 30mg of and 500mg of collagen [ CITATION
Vit12 \l 1033 ]. Vitagen has more products variety as compare to Yakult.
Thus, strong competitors like Vitagen will lead Yakult to lose market
share and loss customer’s loyalty and gain potential pressure on Yakult’s
R&D.

 Government regulation
Yakult is manufacturer of probiotic products in pharmaceutical
industries. Yakult is subject to Singapore government regulations such as
Singapore Food Regulations, Agri-Food and Veterinary Authority Act
(Chapter 5). According to [ CITATION Yak14 \l 1033 ] “Yakult Singapore
has the one of finest world class production systems such as
Accreditation for ISO 9001 Certificate and Top-notch Hygiene Control
System through HACCP.” Regulations used to enforce standard
framework in term of manufacturing, ingredient of products, food
labelling, packaging & safety. Yakult has to follow government
regulations to ensure properly working environment and producing
safety and maintain high quality of Yakult.

1.4 SWOT Analysis: Vitagen

1.4.1 Opportunity
 Health Care Sector
Vitagen had organized several events such as Vitagen Health Digestion
walk and celebrated world Digestive health Day. By organizing such
events, Vitagen can create health awareness to consumers and build
customers relationship by giving away goodie bag and certificate to
complete the walk. Vitagen will build healthy brand image over the

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 time and gain customer loyalty toward its brand and products.

1.4.2 Threats
Major competitors in the market are Yakult, Meiji and etc. As of now, Yakult
is the market leader for probiotic drink products and having largest market
share as well as strong customer loyalty made by Yakult.

New and existing government legislative and regulatory action possibly

affects business, financial decision and operation such as tax, environment,
health and safety matters.

2. Corporate Objectives
2.1. Mission

2.2. Vision
As a member of the Yakult Group, we contribute to the health and happiness of people around
the world through the pursuit of the possibilities in functional materials and the creation of new
values.
http://www.yakult.co.jp/ypi/en/company/philosophy.html

3. Marketing Objectives
3.1. Quantitative
 Sales -> % (Increase in sales by 5%)
 Market Share -> 5% increase
 E-database: Passport GMID3.2 Qualitative

3.2. Qualitative
o Qualitative
o Increase Brand Awareness
o Increase Loyalty
o Increase Customer Relationship – Change customer attitude towards the brand

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4. Selection and Measuring of Target Market
4.1. Market Overview
Yakult is in the probiotic drinks product market in Singapore. As mentioned before, there are
also other products like Vitagen which falls under the same market as Yakult, thus becoming one
of its main competitors.

4.2. Size of potential market

In the current society, people are becoming more health conscious. According to the statistics on
the brand share of Yakult, it has increased since 2010 from 43.4% to 49.2% in the year of 2013.
By comparing it with Vitagen, it only holds 15% of the brand share in 2010 and has decreased
over the years to 14.3% in the year of 2013[ CITATION Eur14 \l 1033 ]. This shows that the
market is still very attractive as consumers still prefer to drink Yakult and Yakult are still
outselling its competitors.

4.3. Survey Findings

In order to understand more about the customer purchase patterns and feasibility of the
marketing strategy, marketing research is conducted through online survey with a sample size of
100 people. The online survey is sent through emails to the targeted individuals. For those
people that are difficult to reach or does not have an email address, the survey is done by
approaching the selected individuals using portable electronic devices.

The results of the survey are shown as per below:

Age
55 years old or above
4%
45 - 54 years old Under 12 years old
14% 23%

12 - 21 years old
35 - 44 years old 7%
19%
22 - 34 years old
33%

Figure 1

Figure 1 shows the sample size selected ranges from children starting from the age of 5, to
retirees who are above the age of 55.

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 Occupation
Retiree
4%

Student
26% Employed or Self-employed
38%

Homemaker
32%

Figure 2

In figure 2, it shows that out of the 26% of student, 23% are under the age of 12 years old, which
indicating that the majority are from preschool and primary school. There’s a 3% of young
working falling into the age ranging from 12-21 years old and from the age of 22 years old
onwards, it consists of employed and self-employed adults and homemakers and lastly 4% of the
sample size are retirees.

Groceries Shopping

No
30%

Yes
70%

Figure 3

Figure 3 shows that the group of people that do not do groceries shopping are mainly students
as they are too young to do, therefore leaving a 4% of the adults who do not do groceries
shopping. This will indicate that adults will have more power in making decision of what to
purchase when shopping.

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 Have tried Yakult before
No
3%

Yes
97%

Figure 4

In figure 4, it shows that out of the 100 sample size, majority have tried Yakult before and only
3% did not. This shows that Yakult is a very popular product in Singapore.

Frequency of drinking Yakult

Other
2%

Everyday
20%
Once a month
21%

Fortnightly
13%
2 - 3 times a week
19%

Once a week
25%

Figure 5

Figure 5 shows that out of the 97% of people who drink Yakult, 20% of them drink Yakult daily,
which make up to 64% of the people drinking Yakult within a week time. 34% of the people will
still get to drink Yakult at least once a month. This shows that drinking Yakult can become part of
daily lifestyle.

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 Frequency of Purchase
Other
11% Yesterday
17%
Last month
13% 2 - 3 days ago
10%
2 weeks ago
14%

Last week
35%

Figure 6

Figure 6 will show the purchasing pattern of the people who do their groceries shopping and
how long does it takes for them to purchase another pack of Yakult. It seems that more than half
of the people will purchase Yakult within a week after consuming their previous purchase. And
at least 27% of the people will still purchase Yakult at least once a month.

Reasons of drinking Yakult

Convenience 7

Promotion 18

Availability 11

Health Benefits 25

Taste 38

0 5 10 15 20 25 30 35 40

Figure 7

The main reason why do people drink Yakult is because of its taste which is indicated in figure 7.
Yakult still stand out strong in the market for its delicious taste. The second reason is followed by
the health benefits of Yakult. Thirdly, people drink Yakult because whenever there is a
promotion. As Yakult can be found at any of the supermarkets and convenience stores, people
has taken the advantage of it and feel that being convenience and able to purchase the product
anywhere is not that important anymore. This is why being convenience and available are
ranked last.

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 Knowledge of health benefits of pro-biotics in
Yakult

Do not have
24%

Have
76%

Figure 8

As Yakult is a common and popular product in Singapore, majority of the people know about the
health benefits of pro-biotic in Yakult, which indicate a high 76% in Figure 8. That is also one of
the main reasons why people choose to drink Yakult. The 24% are made up of young children
that have no knowledge or do not understand what does pro-biotic do or help in their digestive
system. This makes an opportunity to step into preschools and educate the young ones.

Price of Yakult
Not Affordable
1%

Affordable
99%

Figure 9

In figure 9, it shows that 99% of the people feel that the price of Yakult is still affordable and
people will not hesitate to buy Yakult daily.

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 Aware of Yakult Home Delivery

Yes
24%

No
76%

Figure 10

Figure 10 will shows that 76% do not know about Yakult home delivery service. Awareness could
be raised at this point. Being able to provide an extra service will allow Yakult to build a strong
relationship with the customers and by doing this, Yakult is able to attract more customers and
also retain customers at the same time.

Aware of factory tour

Yes
10%

No
90%

Figure 11

Findings show that 90% of the people do not know about Yakult factory tour as shown in Figure
11. There is only a minority of 10% who are aware of it. Yakult can create more awareness about
the factory tour so that the consumer can have a better understanding of Yakult and the
manufacturing process.

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 Consume other pro-biotics products

Yes
40%

No
60%

Figure 12

In Figure 12, out of the 100 people, 60% of them would still stick to Yakult. Only the 40% will still
try out other products such as Vitagen and Meiji. This shows that Yakult still outstand the other
competitors and is able to retain most of its customers. But given the 60% of the result,
improvements can be made to increase the percentage.

4.4. Market Segmentation

Based on the survey findings, the market segment will be divided into three segments by their
age and occupation. First segment is the young children who are mainly studying in preschools.
Second segment will be the homemakers who can also be the parents. The third segment will be
the working adults. The table below will show the variables of each segment:

Young children Adults Working Adults

Demographic:
Occupation Student Homemakers/ Parents Full time job or self
employed
Psychographic:
Lifestyle Study in Preschool. Take care of children Similar daily routines
Listen to their parents and is very particular but always finding to
and always learning about their children have a healthy
new things in school health lifestyle
Behavioural:
Benefits Improve digestive To improve the family To improve their own
system digestive system digestive system

Influences Influence parents to Influence by family Influence by

buy Yakult member and also colleagues, friends
their children and the surrounding
environment

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 4.5. Target Market Strategies
Yakult will be targeting consumers from children to adults to promote the product as a family
lifestyle. Each of the market segments are linked as they can be affecting each other to make the
purchase decision. Marketing will be focused on the three main groups as mentioned in the
table. Educating the students will be the main focus for young children as they can bring back
the information to their parents and convince them to buy Yakult. For parents or homemaker,
promotion of Yakult will be more focused as this segment is always looking for more benefits but
their spending remains the same. For working adults, it is important to promote the health
benefits of Yakult as this segment is too busy with their daily work and tends forget about their
health. These three segments will be able to promote Yakult as a family lifestyle as there will be
at least one segment falling in every family.

4.6. Consumer Behaviour

The consumer behaviour is influenced by social factors like family members. As family members
influenced the buyer behaviour, it is important to know who will affect the purchasing decision.
One example is, the child who likes the taste of Yakult and will ask or persuade the parent to
buy. Another example is the homemaker will decide to purchase Yakult for the whole family due
to the health benefits and every family member will be drinking Yakult as it was bought and
placed at home. As the price of Yakult is not expensive, it is considered a convenience product
where people can buy frequently and is able to buy it at any supermarkets or convenience
stores.

5. Perceptual Mapping

 Yakult has limited product line which only distributes Yakult (four favours) and Yakult light in
Singapore and consumers think Yakult has affordable prices through our survey on prices.

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 Vitagen has limited product line such as less 50% sugar Vitagen and collagen Vitagen. Vitagen
and Yakult have the same selling prices through our market research. So Vitagen and Yakult fall
same category limited product line vs lower prices.
 Meiji has variety product line such as biscuits, probiotics drink, milk and Yogurt in Singapore and
consumers think meiji has affordable price. So meiji fall variety product line and lower prices.

6. Strategic Marketing Mix

6.1. Product

6.2. Price

6.3. Promotion

6.4. Distribution
To make Yakult as part of the daily lifestyle, it is important that anyone is able to purchase it at
the most convenient places. Yakult will be sold at all the supermarkets such as NTUC Fairprice,
Giant, Cold Storage and Sheng Siong. All the convenience stores like 7-Eleven and Cheers will
also be selling Yakult on their fridge shelves.

Another form of distribution is through the Yakult delivery lady. This service is provided for
people who have no time to buy Yakult. Customers can now request for delivery to their
doorstep.

7. Action Plan

8. Control and Evaluation

9. Conclusion

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References
Euromonitor International 2014, 2014. Passport, Singapore: Euromonitor International 2014.

Grocer, P., 2012. "Yakult expands its Southern footprints.". General OneFile, 10 May.

MarketLine, 2008. Yakult & Activia Case study launching probiotic in the Nascent US Market. Yakult
& Activia Case study launching probiotic in the Nascent US Market, 04 Jan.

Vitagen Official Website, 2012. Vitagen Official Website. [Online]

Available at: http://www.vitagen.com.sg/what_is_vitagen.html

Yakult Official Website, 2014. Yakult Singapore. [Online]

Available at: http://yakult.com.sg/
[Accessed 28 Mar 2014].

Appendices

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