Yakult

I’m not afraid, I’m ok!

 Company analysis

The Yakult brand is a well-known probiotic fermented milk drink

originated from Japan since 1935, discovered by Dr. Minoru
Shirota, chairman of Yakult Honsha Company. With his studies
regarding on lactic acid bacteria, the cultured milk drink brand
has this kind of good bacteria known as Lactobacillus casei
Shirota or Shirota Strain. Moreover, it has no preservatives added
and it contains sugar since it serves as an essential nutrient for
the good bacteria provided by the product.
 Market Analysis

People nowadays are prone to health and environmental risks

within their community that most from the market are considered
health conscious in terms of their lifestyle. This could be justified
by the increasing demand of purchasing healthy drinks and/or
supplementary products such as yoghurt, sour milk products, and
probiotic supplement products.
 Competitor Analysis

There are existing brands of healthy products in the market

environment which are correlated to Yakult brand and served as
direct and indirect competitors. Probiotic milk drinks such as
Dutch Mill Delight and Go Long Cultured Milk from Taiwan are
considered as direct competitors of Yakult.
On the other hand, Vitasoy Milk, Dutch Mill Yoghurt, Nestle
Yoghurt, Zest-O Yo!, and Bear Brand Yogu are the indirect
competitors.
 SWOT Analysis
Strengths
 Leading probiotic drink worldwide
 Having high brand awareness and
recognition
 Has strong brand reputation and image
 Strongly established and can be purchased
by all ages
Opportunities
 Increasing range of supermarkets, grocery
and convenience stores
 Engage in health and fitness trends
 Can make the Yakult brand an additional
or supplemental product to other healthy
beverage products
Weaknesses
 Having small size in which they do not
have a bigger size of milk drink
 Needs to be refrigerated to prevent
spoiling of the product
Threats
 The direct and indirect competitors of
Yakult are increasing within the market
 Increase of product variants and/or
offerings from competitors
 Marketing Objectives

Sales Objective
 To increase 10% of our sales revenue for the next year
 To be able to distribute our products to selective
supermarket here in the Philippines to increase sales
 To achieve 2,000 bundles of Yakult flavors every month to all
the 30 selective supermarket
 To have a sales quota of P55,000,000 for the first year
 Marketing Communication Objectives

 To achieve spots in TV commercial for six months to advertise the

product
 To advertise the product through
 To communicate continuously to consumers through the use of digital
platforms such as social media, ads, YouTube and website.
 To provide consumers an outdoor advertisement to visualize the
product
 Marketing/operating expenses are expected to increase 5% every
year.
 Strategic Marketing

Market Segmentation
The market is segmented into age group, financial status,
lifestyle, and its location. Age group consist of Children (1-
12 years old), Teenagers (13-19 years old), Young adults
(20-30 years old), and adults (31-50 years old).
Target Market
 The primary target market for the proposed Yakult variant are
those consumers who are health conscious and considering
brand appeal; children, teenagers and young adults; upper,
middle and lower class are the chosen segments for the
company’s product.

Positioning
 The proposed Yakult variant will be positioned into the minds of
the market as a healthy flavored probiotic drink for an
everyday living.
 Marketing Mix Strategy

Product
Yakult will focus with product development by having
flavoured line of Yakult in the market. This product strategy is
suited for Yakult in order to catch attention of new generation
of market where most of them are part of millennial and
younger generations.
Yakult will available with five flavors. Among with this are
grapes, green apple, lemon, orange and strawberry.
Price
The pricing strategy that will be used for Yakult Flavors will be
combination of cost based and value based. Cost based from
the research and development of the product and value based
from the benefit of the lactobacillus casei-shirotastrain. Yakult
Flavors will be having a Php 12.00 suggested retail price.

Place/Distribution
Yakult Flavors will be distributed through Supermarkets and
grocery store nationwide. Drugstores, School Canteens, Hospital
Canteens, and other location will be also use to distribute the
products. Yakult will also try to tap playhouse business
companies such as Kidzoona and review centers such as Kumon
to become distribution channels of Yakult.
Promotions
Using teenagers as part of the new endorsers, Yakult will level up
there game by changing their “OK ka ba Tiyan” tagline to “I’m
OK, everyday” that will use as they make series of nationwide TV
commercials.
Yakult Flavors will also use the digital platforms such as social
media, ads and website. A mini youth oriented show will be
made as part also of promotion on YouTube entitled “Millennial
Problems: Ok ka pa ba?”.
The Yakult website on the other hand will be created as
interactive and fun where youth of today will able to enjoy and
influence them to visit the site again.
Bundled of each kind Yakult with total of seven pieces that pack
in a container will be release in the market.
 Financial Projections
Sales Revenues

Products Selling Units per Sales Revenue

Price year

Yakult Cultured Milk (bundle 40 60,000,000 P2,400,000,000

5pcs.)
Yakult Light (bundle 5pcs.) 50 45,000,000 P2,250,000,000

Yakult flavors (bundle 7pcs.) 80 24,000 P57,600,000

Yakult Cultured Milk (per pc.) 9

Yakult Light (per pc.) 11

Yakult Flavors (per pc.) 12 72,000 P23,920,000
 Marketing Expenses
Marketing expenditures Cost Annual cost

Social Media Expense 15,000 180,000

TV Commercial Expense 3,000,000 36,000,000

Information Dissemination Expense 30,000 360,000

Sponsorship 20,000 240,000

Total P3,065,000 P36,780,000

 Product Cost Amount Annual Amount

Raw Ingredients 70,000 840,000

Machine and Equipment 200,000 200,000

Research and Development 3,000 3,000

Warehouse and Building 2,500,000 2,500,000

Permits 1,500 1,500

Utility Expense 2,500 30,000

Generator Set 70,000 70,000

Salaries and wages 13,000 156,000

TOTAL P2,860,000 P 3,800,500

 Net Income Before Tax

Income statement
2018 2019 2020

Revenue P57,600,000 P63,360,000 P69,696,000

Less operating expenses:
Marketing expense 36,780,000 38,619,000 40,549,950
Product cost 3,800,500 3,990,525 4,190,051
Total operating expense 40,580,500 42,609,525 44,740,001
Net income before tax P17,019,500 P20,750,475 P24,955,999
 Contingency Plan
Damage in packaging
 The person-in-charge for managing distribution channels will check whether the damage
was done before, during or after delivery of goods
 It will be rhe-monitored through quality control procedures
Failure of distribution
 The company will inform their B2B / B2C customer beforehand whether the purchased
goods might not be able to be delivered on time
 The company will ask for their customer’s decision whether the goods to be delivered will
be processed the other day or to process the cancellation of delivery instead
Imitation
 The management will provide a legal action for this problem such as filing for trademark
infringement against the company or firm who intended to imitate the product
Sales target no reach
 A contingency fund will be used for marketing communication to improve brand
awareness.