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Marketing Plan

for
Danone YAKULT
April, 2012

Under the guidance of


Prof. Sanjukta Shrivastav

Submitted by:
Ankit Bhilota - 25
Neha Salvi- 27
Shalvi Vartak- 29
Swati Bhadra- 31
Shamika Rane - 33

Ankita Vohra - 35
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Table of contents
1 EXECUTIVE SUMMARY.................................................................................................................... 3
2. SITUATION ANALYSIS........................................................................................................................ 4
2.1 Segmentation strategy and market trends
2.1.1 Demographic
2.1.2 Geographic
2.1.3 Psychographic
2.2 Current segmentation strategy of Yakult
2.2.1 Benefit segmentation
2.3 Market targeting
3. SWOT ANALYSIS.................................................................................................................................. 7
4. COMPETITION ANALYSIS (Yakult Vs. Nutrifit)............................................................................ 9
4.1 Target market
4.2 Product
4.3 Pricing
4.4 Promotion
4.5 Distribution
5. PRODUCT OFFERINGS........................................................................................................................... 13
6. KEYS TO SUCCESS................................................................................................................................... 14
7. MARKETING STRATEGY....................................................................................................................... 16
7.1 Mission
7.2 Marketing Objectives
7.3 Sales Objectives
7.4 Marketing Mix
8. FINANCIALS............................................................................................................................................. 25
9. HUMAN RESOURCE............................................................................................................................. 26
9.1 Recruitment
9.2 Training & Development
9.3 Compensation
10. Refrences................................................................................................................................................ 28

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Executive summary
DANONE decided to enter the Indian market with one of our Probiotics dairy products. They analyzed
their future target market and took external factors as political, social or legal aspects into consideration.
Additionally they analyzed the labor market in India and the financial situation of the DANONE Group.
India seems to be a suitable market to enter for different reasons. First of all DANONE has already
formed a Joint Venture with the Japanese company Yakult. Until now they havent sold any DANONE
products in the Indian market. However, they decided to use the Joint Venture for entering the Indian
market with Yakult drink, because of financing reasons and experiences with India. India is an attractive
market, as it is one of the four fastest growing nations until 2050.

After analyzing the Indian market they decided to market a Probiotic product YAKULT extensively and
create awareness; however some adjustments need to be done to the product mix to suit the target market.
As they entered the market via Joint Venture with Yakult, the investments were not that high compared to
other investments. In order to finance the entry in India Yakult had alternatives. They can increase their
long-term debts again or increase their share capital. After informing about the labor market in India and
its HRM policies in the companies, we came to the decision that we dont have to make a lot of changes
to our HRM policies. For sure we have to adapt or HRM policy in some way to the Indian because of
Indias HRM history, but the impact wont be that high, since India seems to get more and more similar to
the European HRM. They are already active in corporate social responsibility issues, however if they
enter the Indian market, they will have to take actions in India as well, since India is still an emerging
country in which more than 24% of the population live under the property level. In order to guarantee the
success of our project in India, Danone needs to measure the actual sales compared to the targets on a
regularly basis. We need to evaluate the project to see what progress has been made during a specific
period of time and to identify weaknesses and strengths in order to improve our weaknesses and use our
strength to buildup a competitive advantage in the Indian market. Additionally the external factors
influencing our operations in India need to be analyzed after a specific period of time, since the
environment is continuously changing and we need to identify threats and opportunities in order to take
advantage of these or reduce their impact on our business. Through the regular evaluation we are able to
compare our performance and to make decisions about staying in the Indian market or leaving. The Group
needs to know how profitable the operations in India are and if the projects results justify the projects
inputs and investments.

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Situational Analysis
Pro-biotics literally mean for life and are defined as living microorganisms which upon investigation in
certain numbers exert health benefits in humans and animals beyond inherent basic nutrition.

BENEFITS OF PROBIOTICS

Restoring the balance of the gut flora by increasing the number of beneficial bacteria
Producing substances in the gut, such as lactic acid, that help to suppress the growth of disease-
causing bacteria
Competing with disease-causing bacteria for nutrients and space
Reducing the concentration of toxins

Other probiotic products available are:

Probiotic milk
Probiotic curd
Probiotic lassi
Probiotic ice creams

SEGMENTATION STRATEGY AND MARKET TRENDS


Demographic Segmentation

Age
Gender
Income
Spending Patterns
Occupation
Education
Family size

Population:

Total - 1,210,193,422

Males - 623,724,248

Females - 586,469,174

Literacy

Total74.04%

Males82.14%

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Females65.46%

Density of population per km2 382

Sex ratio per 1000 males, 940 females

Child Sex ratio (0-6 age group)per 1000 males, 914 females.

Changing demographics of Indian population

The Indian population is younger, more urban, with greater disposable income and high purchasing power
parity (PPP). Urban consumers are typically busier and more affluent, thus more willing to pay for
convenience. The main impact of urbanisation has created a growing demand for convenient products.

Geographic segmentation

It is based on Rural Vs Urban Cities

The reason for doing geographical segmentation is that the region where people live has a big
impact on their lifestyles and thus we divided the population in to rural and urban population.

In rural areas people follow a more balanced life style than urban people and also rely on natural
methods to remain healthy therefore in comparison to the urban areas there is limited scope
of growth in the rural areas.

Psychographic segmentation

Based on the

Lifestyle
Personality
Demographics

.Division of market on the basis of lifestyle and demographics of the population:

The prevalence of corporate culture in urban India has created irregularities among the Indian population
which can be seen from the following reasons:

Due to a growing economy and more hectic lifestyles, urban consumers increasingly skip meals
and eat out in sometimes unhygienic fast food outlets.
Increasing stress led to constipation, diarrhoea and acidity, especially among young working
adults. As a result, demand for digestive remedies is buoyant. In addition to this, lack of intake of
nutrients in the form of fruits or dietary supplements further pushed growth

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CURRENT SEGMENTATION STRATEGY OF YAKULT

The current segmentation and targeting market of Yakult is housewives as they can connect with the
benefits of Yakult and use it for their family. Their brand ambassador Kajol who is a married woman also
conveys their target the Indian woman who is worried about her familys health.

With the increase in storage capacities for products like yakult it has broadened the urban market as a
segment as they have tie ups with retail stores and confectioners thus making it more easier for consumers
to get access to their products.

BENEFIT SEGMENTATION

In this type of segmentation the benefits of a product like Yakult which is that it is a natural product with
a good taste which is very good for the digestive system, readily available at stores nearby are highlighted
and the market that readily connects with such attributes are Indian women who want their family to
remain naturally fit and other people who due to their life style are finding it difficult to maintain a
healthy lifestyle.

MARKET TARGETING

After completing segmentation on the basis of geographical, demographical , psychographic


and benefit the target market will be divided into three types:

The urban Indian woman who knows her family i.e. children, husband and elder members are not
having a balanced life style and she is not able to do much about it because of some constraints. Thus
with a product like Yakult which is good in taste, natural .easily accessible ,relatively cheap and
keeps the digestive system fit she can easily rest her worries.
The second segment that we would be targeting is the bachelors who are living away from
their families and are either working for multinationals or pursuing education. Since they hardly
maintain a balanced diet and are a regularly dining outside they do not carry healthy digestive
systems and considering their hectic schedule they hardly can do anything for it. This would also
include the atomic families that are living in the metros along with tier 1 cities.

The data supporting this targeting is the Indian antacid market has reached 220 crore market sales by
2010-11 and is expected to grow at a CAGR of 5.1 percent. Also of this revenue 72% of the share is
urban.

The main benefit of Yakult is that it enhances the functioning of digestive system and is completely
natural thus as a product it will looking at the antacid market (i.e Digene, Hajmola, Eno, Gelusil) as
its target market. Probiotic is another new health mantra that is increasingly being chanted by the urban
health-conscious Indian. These products claim to provide beneficial bacteria which aid the optimal
functioning of the digestive system. Though small, this segment will most likely emerge as a sub-category
if the efforts to educate consumers and increase awareness succeed.

And third, the women Residing in metro Sec a and b1 married with kids in age group of 25-55 with a
family size of 3-5 and in favour of healthy notion and a hint of price sensitivity.

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SWOT ANALYSIS

Strengths:
It is targeted at everybody, using the slogan "Every body. Every day."
More and more people becoming health conscious, giving a chance for probiotic products to be a part
of their diet.
Well established. Yakults benefits have been scientifically established through years of research and
30 million people in 32 countries drink Yakult every day.
Yakult Danone India Pvt Ltd has recently been awarded the jury award for Emerging Company of the
Year from Frost & Sullivan.
It is fat free and contains no added preservatives.

Weakness:
The product needs to be kept under 10 degree C. It can be a major challenge in transporting the
product citing poor cold storage chains and infrastructure. It has a shelf life of 40 days. Just in time
theory is used to manufacture Yakult. Currently it has only one factory in Haryana.
People are unaware about the product.
Marketing becomes difficult due to the smaller size of the product. May not be visible to the
customers with other refrigerated products.

Opportunities:
The product can be shown to be consumed as an add on with milkshakes, smoothies.
Awareness through newspapers, doctors and advertisements.
Create more Yakult ladies in India, who delivers the products straight at home. Japan has 50,000 such
ladies.
In India probiotic industry is still a nascent industry.Rs100 crores. A strong presence since last 75
years can give it an edge. Globally it is $12 Billion industry.
The Indian Council for Medical Research (ICMR), under the aegis of the health ministry, has set up a
committee to formulate guidelines for probiotic foods. The guidelines will involve declaring specific
ingredients on labels, which could include strain of bacteria, scientific efficacy of ingredients,
clinically proven cultures, and checks at production sites, among other things. This will help
distinguish Yakult from the other non genuine products in the market.
Once the people are educated, Yakult can get it different variants like sugarfree probiotic drinks to
India.
Research on increasing the shelf life of the product due to poor infrastructure and cold storage chains.

Threats:
As the industry is growing industry and not many players in it, companies like Nutrifit have entered
the market.
Nestle, NDDB's Mother Dairy and GCMMF's Amul are the few other competitors for Yakult.

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It has Rs136 crore investment in India, huge amounts are spent in educating the people. Due to which
it took 5 years from 2005 to 2011 to break even. Once the people have accepted the benefits of the
probiotic drink many other companies can enter and take advantage of the laid foundation.
It sells 40,000 bottles per day, with a unit capacity of 1million. So it has a lot of fixed cost involved.
Continuous research and development is required to remain as the market leader in this segment.
As mentioned earlier, many non genuine products claim to be probiotic and charge 10-15% more than
the same category products. Such products have no additional benefits, due to which people stop
consuming any probiotic products. Its a major challenge for Yakult to educate the consumers to
choose their product.

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Competition Analysis
One of the closest competitors of yakult, delicious Probiotics fermented milk drink is mother dairys
Nutrifit. However, Yakult is considered ahead of the drink in most of the departments.

Target markets served


Yakult:

The urban Indian woman who knows her family i.e. children, husband and elder members are not having
a balanced life style . Women residing in metro, age group 25-55.

The second segment that we would be targeting is the bachelors who are living away from
their families and are either working for multinationals or pursuing education. Since they hardly maintain
a balanced diet and are a regularly dining outside they do not carry healthy digestive systems
and considering their hectic schedule they hardly can do anything for it.

Nutrifit:

It was earlier targeted as a childrens drink as it offers you taste, protection, and nutrition and increases
immunity all at the same time. Nutrifit is available in two delicious flavors Mango and Strawberry.

With the new Kesar Elaichi flavour, Nutrifit which has been positioned as a probiotic immunity building
drink for children, was then targeted at adult consumers also as according to the American Dietetic
Association, each bottle of Nutrifit (Kesar Elachi) will meet eight percent of daily fiber requirement of an
adult.

Product

Yakult is a fermented milk drink containing over 6.5 billion probiotic (friendly) bacteria - Lactobacillus
caseistrain Shirota. Unlike most bacteria found in normal yoghurt, these probiotic bacteria are able to
survive the acidic environment of the stomach and reach the intestines alive in the intestine.

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Ingredients:

Skimmed milk powder, water, sugar, glucose, added natural & natural identical flavours and most
importantly 6.5 billion ofLactobacillus casei strain Shirota, a unique strain of bacteria.

They change the environment to favour the growth of beneficial bacteria and suppress the growth of
harmful bacteria.

The friendly bacteria in Yakult help to improve digestion and build immunity when consumed every day.

1 serving 80ml nutritional value

Calories 28 Sodium 22 mg
Total Fat 0g Potassium 0 mg
Saturated 0g Total Carbs 8g
Polyunsaturated 0g Dietary Fiber 3g
Monounsaturated 0g Sugars 0g
Trans 0g Protein 1g
Cholesterol 0 mg

Nutrifit

Nutrifit is a delicious Probiotics milk drink containing billions of LA5 friendly bacteria which strengthen
the bodys defences against infections and diseases when consumed over a period of time.

Pro-biotic seems to be the new health mantra and suppose to boost our immunity. First came pro-biotic
curd and lassi, and now probiotics drinks are there in the market too.

Ingredients: Milk, water, sugar, mango pulp/strawberry pulp, stabilizers, lactic culture with probiotics.

Just as antibiotics fight disease causing bacteria, Probiotics help increasing immunity

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It offers you taste, protection and nutrition all at the same time. Nutrifit is available in two delicious
flavours Mango, Strawberry and elaichi.

Nutritional value 100gms of the product

73
Energy
calories
Protein 1.8g
Carbohydrates 14.6
Fat .8g
Calcium 80mg

Pricing
Yakult:

The 65ml bottle is priced at Rs 10 and the product is available in a pack of 5. The price sounds reasonable
for those consumers who are health conscious. The main challenge for this product is to make the
consumers believe that the product is delivering benefit to them. Most of the health foods have the
problem of giving measurable visible results to the consumers.

Nutrifit:

It is priced at Rs 10 for a 100 ml bottle. As the drink is mainly targeted to the kids and for Indian
consumers who are price sensitive it is prized at a very reasonable rate and competitive to other drinks
available in the market.

Promotion
Yakult:

BTL and television to discuss the brand attributes. Consumer samples, and product descriptions given to
homemakers by the Yakult ladies who provide free home delivery has helped generate awareness of the
benefits of probiotics and has boosted sales. We also organize regular factory visits to the Yakult plant for
people to understand the manufacturing process and experience the brand attributes firsthand.

Kajol on board as the brand ambassador for Yakult really helped to take the brand to the next level. The
national TV campaign resulted in substantial brand recall. The brand is also making enough noise in the
media. These advertisements are bound to increase the brand visibility and also may prompt consumer
trials. The choice of the brand ambassador also gels with the target market.

The brand predominately targets the health conscious ladies as the primary consumer. The brand has
taken the positioning of a "health enhancer" and adopted the tagline "Daily Piyo, Healthy Jiyo" (Drink
daily, Win health).

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Nielsen consumer surveys showed that awareness of our brand has increased to 48% in Delhi and 37 % in
Mumbai after the TV campaign.

Nutrifit:

Mother dairy is a well know and established brand in India, hence its new probiotic drink has leveraged
on its brand name with regard to its marketing and promotion strategies.

Communication of the product mainly revolves around the health benefits offered to children via
flavoured and tasty drink. The Probiotic Drink that Builds Immunity: Small on Size, Big on Immunity
Being strong is one thing. Being immune is quite another is the message conveyed to promote the new
line of product Nutrifit.

Mother Dairy's 'Nutrifit Campaign' was recently adjudged as the best campaign in "Nutri Marketing
Category" at the prestigious International Dairy Federation (IDF) Marketing Awards 2008 held at World
Dairy Summit in Mexico on November 2008.

Distribution including the distributor network


Yakult:

Yakult has a strategy of direct marketing where the consumers can order the product through home
delivery. Yakult has a DM (Direct Marketing) team of ladies known as Yakult ladies who visit homes,
educate the homemakers about the product and also regularly supplies the product. This ensures that the
product is being regularly used by the consumers and also the Yakult ladies will be able to answer the
doubts of the consumers. It is also available in supermarkets.

Nutrifit:

Sold through Mother DairyOutlets /Retail Channels across Delhi NCR. Probiotic products are
contributing to 15% of the turnover of their fresh dairy products. Over the next 3-4 years, the contribution
is expected to go up to 25% and the urban acceptance is making the company to increase their focus on
probiotic products.

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Yakult - Product offerings
Probiotics
Probiotics literally mean for life and are defined as living microorganisms which upon investigation in
certain numbers exert health benefits in humans and animals beyond inherent basic nutrition.

Benefits of probitics
Restoring the balance of the gut flora by increasing the number of beneficial bacteria Producing
substances in the gut, such as lactic acid, that help to suppress the growth of disease-causing bacteria
competing with disease-causing bacteria for nutrients and space Reducing the concentration of toxins

What is Yakult?
Yakult is a probiotic health drink, which contains more than 6.5 billion beneficial bacteria (Lactobacillus
caseistrain Shirota). The bacteria in Yakult are resistant to gastric juices and bile and reach the intestine
alive to impart proven health benefits. Daily consumption of

Yakult helps to improve digestion and build immunity.

Pricing
The 65ml bottle is priced at Rs 10 and the product is available in a pack of 5. The price sounds reasonable
for those consumers who are health conscious. The main challenge for this product is to make the
consumers believe that the product is delivering benefit to them. Most of the health foods have the
problem of giving measurable visible results to the consumers.

Yakult primarily targets those consumers who are health conscious and is aware of the importance of
functional foods like probiotics. The brand will be initially operating in a niche category and its strategy
will be to expand the niche category into a mainstream one. It has adopted the right marketing strategy to
educate the consumers and also encourage them to make regular use of this product.

Distribution
It is in this context that the brand adopted its strategy of direct marketing.

Yakult has a strategy of direct marketing where the consumers can order the product through home
delivery. Yakult has a DM team of ladies known as Yakult ladies who visit homes, educate the
homemakers about the product and also regularly supplies the product. This ensures that the product is
being regularly used by the consumers and also the Yakult ladies will be able to answer the doubts of the
consumers. Yakult is also available in supermarkets.

Promotion
BTL and television to discuss the brand attributes. Consumer samples, and product descriptions given to
homemakers by the Yakult ladies who provide free home delivery has helped generate awareness of the

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benefits of probiotics and has boosted sales. We also organize regular factory visits to the Yakult plant for
people to understand the manufacturing process and experience the brand attributes firsthand. Kajol on
board as the brand ambassador for Yakult really helped to take the brand to the next level. The national
TV campaign resulted in substantial brand recall. Nielsen consumer surveys showed that awareness of our
brand has increased to 48% in Delhi and 37 % in Mumbai after the TV campaign.

Keys to success
The awareness about probiotics is fast catching up in India and Yakult has seen wide consumer
acceptance in the metros. Our India expansion plans are on track and soon we would enter into other
markets in the south, said Kiyoshi Oike, managing director, Yakult Danone India.

Yakult was launched in 2007 in India, after a successful foray in more than 30 countries. First launched in
Japan in 1935, Yakult today is seen as a global leader in probiotics with more than 30 million people
consuming it every day.

Yakult is the only probiotic drink that contains more than 6.5 billion beneficial bacteria (Lactobacillus
casei strain Shirota, named after its founder Dr Minoru Shirota) in a 65 ml bottle. In 1935, Dr Shirota
developed "Yakult" with more than 6.5 billion beneficial bacteria (Lactobacillus casei strain Shirota) as
he observed that daily intake of this strain was beneficial to intestinal health and prevented diseases.

Subsequently several studies have established Yakults efficacy and it has also received the FOSHU label
(Food for specified health uses) from the ministry of health labour and welfare in Japan. Daily
consumption of Yakult helps to boost immunity and aids digestion. Yakult can be enjoyed by everyone,
young or old, as part of a healthy balanced diet every day, stated the company.

The 65 ml bottle of Yakult contains skimmed milk powder, water, sugar, glucose and more than 6.5
billion live Lactobacillus casei strain Shirota. The probiotic bacteria reach the intestine alive and suppress
the growth of harmful bacteria.Yakult has the FOSHU (Food for specified health uses) label in Japan
from the ministry of health, labour and welfare. A food for specified health uses is intended to provide
certain health benefits and includes active ingredients that have beneficial effects on the bodys
physiology.

According to a recent research we conducted with Nielsen, awareness about our probiotic drink ( Yakult)
is 48% in Delhi market and 37% in Mumbai. The overwhelming response from our consumers has urged
us to expand our foothold in the country and it gives me immense pleasure to announce the launch of
Yakult in Bengaluru, he added.

Yakult is currently available in Delhi NCR, Mumbai, Pune, Chandigarh, Punjab and Jaipur. The company
has a strong retail presence in these cities covering both organised and unorganised retail stores. Besides
retail, the company has also launched its global home delivery system in India. More than 80,000 ladies
are associated with this system globally, and in India the company has over 150 Yakult ladies delivering
the product to the customers doorstep.

Yakult plans to launch its unique delivery system in Bengaluru early next year. The Yakult ladies are
especially trained for door-to-door distribution. This system has been specifically created to help
customers understand the health benefits of probiotics so that they can make it a part of their daily diet.

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Yakult is priced at Rs 50 for a pack of 5 bottles. It is manufactured at Yakults advanced facility at
Sonepat, Haryana. The production process of Yakult is fully automated from start to finish maintaining
stringent quality control conditions of international standards.

The joint venture company was formed in 2005 to manufacture and launch probiotic products in the
Indian market. The company pursues its global mission of contributing to the health and happiness of
people around the world, by propagating the science behind probiotics and making people better informed
about its positive impact on health. WHO/ FAO defines probiotics as live micro organisms that confer a
health benefit on the host when consumed in adequate quantities.

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Marketing Strategy
Mission

Yakult's mission is to contribute to the health and happiness of every person around the world through the
pursuit of excellence in life sciences and the study of microorganisms. We continue to spread the message
of preventive medicine and the benefits of probiotics, such as Lactobacillus casei Shirota. One by one,
city by city, country by country, we deliver this message in the shape of a small bottle - a bottle that
contains around 8 billion live and active good bacteria.

Yakult Danone

Yakult Danone India Pvt Ltd (YDIPL) is a 50:50 joint venture between Japans Yakult Honsha and The
French- Danone Group, with its offering Yakult, a probiotic drink made from fermented milk,
lactobacillus and some sugar. Yakult is a world leader in probiotic drinks and has a rich heritage dating
back to 1935. Yakult was launched in India in the late 2007. The brand was initially available only in
Delhi. Now Yakult is being launched nationally in a phased manner.

Yakult is fermented milk that contains healthy bacteria Lactobacillus casei strain Shirota. According to
the brand site, a 65-ml Yakult bottle contains 6.5 bn probiotic bacteria. The brand is currently available in
Delhi, Mumbai, Chandigarh and Jaipur. The entry of Yakult is expected to increase the visibility and
growth of probiotic category in India. What is interesting about Yakult brand is its marketing strategy.
The brand has adopted a two prong strategy to crack the Indian market. Yakult has roped in actress Kajol
as the brand ambassador. The brand is also making enough noise in the media. These advertisements are
bound to increase the brand visibility and also may prompt consumer trials. The choice of the brand
ambassador also gels with the target market. The brand predominately targets the health conscious ladies
as the primary consumer. The brand has taken the positioning of a "health enhancer" and adopted the
tagline "Daily Piyo, Healthy Jiyo" (Drink daily, Win health). The brand has the global tagline of "The
kiss of good health". But a product like a probiotic drink may not be easily adopted by the consumer since
she may have lot of doubts about the product. It is in this context that the brand adopted its strategy of
direct marketing.

Yakult has a strategy of direct marketing where the consumers can order the product through home
delivery. Yakult has a DM (Direct Marketing) team of ladies known as Yakult ladies who visit homes,
educate the homemakers about the product and also regularly supplies the product. This ensures that the

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product is being regularly used by the consumers and also the Yakult ladies will be able to answer the
doubts of the consumers. Yakult is also available in supermarkets. Another interesting fact is about the
pricing strategy of Yakult. The 65-ml bottle is priced at Rs 10 and the product is available in a pack of 5.
The price sounds reasonable for those consumers who are health conscious.

The main challenge for this product is to make the consumers believe that the product is delivering
benefit to them. Most of the health foods have the problem of giving measurable visible results to the
consumers. Yakult primarily targets those consumers who are health conscious and are aware of the
importance of functional foods like probiotics. The brand will be initially operating in a niche category
and its strategy will be to expand the niche category into a mainstream one. It has adopted the right
marketing strategy to educate the consumers and also encourage them to make regular use of this product

Market research determined the knowledge, attitudes and opinions of potential consumers in Indian metro
cities. Initial research results indicated:

1. Uncertainty regarding the products name, and the bottles shape and size.
2. A lack of knowledge regarding intestinal bacteria in the digestive system.
3. An unwillingness to discuss embarrassing body functions.
4. A negative reaction towards the term bacteria and the idea of consuming it.

Since India is a relatively new market within the probiotic segment as well as a growing market, our main
goal is create awareness of our product in order through high emphasis on advertising. We will focus on
communicating the benefits of Yakult in order create awareness and loyalty. As Indian consumers are still
not aware of the healthy benefits of probiotics, educating the consumers will be the key role in developing
the Yakult probiotic market.

Marketing Objectives

1. Create brand awareness:

Currently the brand awareness of Yakult is restricted to metro cities. Nielsen consumer surveys showed
that awareness of the brand has increased to 48% in Delhi and 37 % in Mumbai after the TV campaign.

Our agenda is to increase the brand awareness and recall in the metro cities to about 85-90% and also start
brand awareness campaigns in tier-II cities.

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2. Develop consumer interest by providing relevant information.

Put emphasis in consumer advertising to highlight product quality in terms of taste, pleasure and well
being in addition to functional benefits.

3. Convert knowledge into purchases.


After completing segmentation on the basis of geographical, demographical, psychographic and
benefits the target market will be divided into following segments:

The urban Indian woman who knows her family i.e. children, husband and elder members are not
having a balanced lifestyle and she is not able to do much about it because of some constraints. Thus with
a product like Yakult which is good in taste, natural easily accessible, relatively cheap and keeps the
digestive system fit she can easily rest her worries.

The second segment that we would be targeting is the bachelors who are living away from their families and are
either working for multinationals or pursuing education. Since they hardly maintain a balanced diet and are
regularly dining outside they do not have healthy digestive systems and considering their hectic schedule
they hardly can do anything for it. This would also include the atomic families that are living in the
metros along with tier 1 cities

The data supporting this targeting is the Indian antacid market that has reached 220 crore market
sales by 2010-11 and is expected to grow at a CAG R of 5.1 percent. Also of this revenue 72% of the
share is urban. The main benefit of Yakult is that it enhances the functioning of digestive system and is
completely natural thus as a product it will look at the antacid market (i.edigene, hajmola, eno, gelusil) as
its target market.
Probiotic is another new health mantra that is increasingly being chanted by the urban health-conscious
Indian. These products claim to provide beneficial bacteria which aid the optimal functioning of the
digestive system. Though small, this segment will most likely emerge as a sub-category if the efforts to
educate consumers and increase awareness succeed.

Self medication groups and ageing population:-

Indian per capita income has risen to Rs.48,856 from Rs.22,792 in 1991 (Indian economic survey, 2010).
When there is an increase in per capita income, it usually increases the dispensability of peoples money

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in health benefiting sectors. Increasing shift towards self medication is a factor which has a positive
impact on Indian probiotic industry prospects. As probiotics are not purviewed under any health related
law in India and with ICMR (Indian Council of Medical Research) still framing the guidelines for
probiotic sales (ICMR status report on probiotics, 2009), probiotics face no hindrance from government
health officials on its sales. Many elite and upper middle Indians view probiotics as self medication and
their tendency to self medicate helps in the growth of Indian probiotic industry.

Increase in healthcare spending is an associated factor with increase in per capita income and ease of
money dispensability. Increase in healthcare expenditure also creates the scenario for an inclusive growth
in Indian probiotic market. Next important factor is the ageing population of India. It is estimated that in
India, there will be an increase of 18% in the number of people in the above 60 years category by the end
of this decade (Indian Bureau of Statistics, 2008). Ageing population with increased income at hand will
have an ideal setting for Indian probiotic companies which produce and market specialized probiotic
products meant for geriatric patients.

India is a challenging market as it has not been exposed to probiotic products as have Western & other
Asian countries. Countries like Japan, UK and some other countries in Asia have been part of the growing
probiotic market since the early 1980s. But, in India, commercial probiotic foods only started cropping up
on store shelves around 2007. The global probiotic market today is $17 billion, whereas the market size in
India is just about Rs 100 crores with a handful of players.

Sales objectives

In fiscal 2010, approx. 30,000 bottles of Yakult were sold daily, a 150% increase from the year earlier. Its
sales have been increasing steadily, to approx. 46,000 bottles a day as of October 2011.

We plan to increase the sales of Yakult to 60,000 bottles a day by the year-end by targeting 75-80% sales
from the health conscious consumers and women from the metro cities.

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Marketing Mix
In this case it will use different strategies in product, price and distribution to ensure that that product
reaches the indented consumers in the market. Strategies in product will ensure provision of quality
product in the market.

1. Product

The beneficial bacteria in Yakult reach our intestines alive and help to restore the balance of the friendly
bacteria in the gut. Daily consumption of Yakult helps to improve digestion and build immunity. Over 30
million people in 32 countries including India trust Yakult and drink it every day!
Yakult is a well-researched and proven probiotic health drink that was launched way back in 1935 in
Japan. Yakult contains beneficial bacteria (probiotics) in large numbers that reach our intestines alive and
help to restore the balance of the friendly bacteria in the gut.

The product will be offered in packs of 65 ml for Rs 10 in a pack of 5 and also a family pack of 10
including straws for ease of use among children and the elderly.

2. Pricing
The probiotic market in India is valued at $ 2 millon. At present there are only few players in the market
for this segment. The pricing strategies will aim at creating awareness, educating the masses about the
product, conversion of it into sales and skimming the market. Yakult uses Premium pricing strategy. The
65ml bottle will be priced at Rs.12 whereas the competitor Nutrifit offers 100ml bottle at Rs. 10. By this
we will first skim the market and when Yakult goes for diversification we can reduce the price and
penetrate the market.

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3. Distribution
Distribution is through two systems:

1. Warehouse system:
Yakult is delivered directly to the warehouses of major supermarkets, for example, Coles,
Woolworths, Franklins. From there, the product is distributed to individual stores.

2. Direct delivery system:


Yakult is delivered to independent supermarkets, health food stores, milk bars and hospitals by
highly trained customer service consultants to ensure the prouduct is always fresh and stored
correctly.

The promotional strategies will be carried out in collaboration with the distributors who will be the
middlemen used in the distribution channel. The company will use push strategies to entice
consumer to purchase its product. Instead of giving discounts, the company will use free sampling
strategy and will also use off street sampling to help the consumer to directly experience the
product.

4. Promotion
Yakults unique product required an equally unique marketing and promotion strategy. The campaign can
be instrumental in educating consumers about the role of bacteria in the digestive system, the benefits of
Yakult for digestive balance and optimal digestive function.

During the campaign a variety of marketing tools can be used such as:

1. Sales Promotion

Supermarket Sampling

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In order to convince people to put aside their misconceptions of what bacteria might taste like, Yakult
implemented what was, at the time, the largest sampling program ever for a single product. Sampling
provided consumers with the opportunity to:

Taste Yakults unique fruity flavour

Have their questions answered

This allowed consumers to make an informed decision about purchasing Yakult.

This same sampling strategy for advertising can be used to develop a habit and create awareness among
the target audience.

Tie up with Quaker Oats

Quaker, the largest Oats brand in the world with a heritage of over 125 years, is available to the Indian
consumers as a convenient and nutritious breakfast option. For those who are health conscious, it makes
for an ideal breakfast meal as it offers a diet rich in fibre. Tie up with Quaker Oats will help to gain the
market share that Quaker Oats already has in India. This will help Yakult to establish itself, create
awareness among the target customers and generate revenue.

And also Tie up with dieticians and hospitals.

2. Print Advertising

Advertising campaigns featured in top selling womens magazines and printed educational resources can
be distributed during sampling to reinforce the messages conveyed during the sampling events.

Posters and signage featured on buses, trains and even shopping trolleys.

4. Personal selling

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Yakult has a strategy of direct marketing where the consumers can order the product through home
delivery. Yakult has a DM team of ladies known as Yakult ladies who visit homes, educate the
homemakers about the product and also regularly supplies the product. This ensures that the product is
being regularly used by the consumers and also the Yakult ladies will be able to answer the doubts of the
consumers.

3. Yakult Information Service

This service is was first established in to respond to consumer enquiries and feedback regarding the
product, including the Free call Information Service, tours of the manufacturing facility, providing guest
speakers to schools and community groups, and a comprehensive website. By capitalising on its
uniqueness and bottle shape, Yakult was able to establish a probiotic section in Australian supermarkets,
and which created demand for the daily consumption of probiotics. This service can be used in India as
well to increase awareness about the product.

5. Outdoor media

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To capture the audience outdoor media consisting of bill boards, gantries, train paintings and buses can be
used.

6. Digital media

Digital media is the cheapest and one of the most effective source of advertising. Advertising will be
through emails, Facebook, SMS and other popular websites. This will help garner the attention of our
target segment which is urban Indian women and bachelors living in tier 1 cities.

Promotional cost:

Particulars Approx. in Rs

Digital marketing budget 26,000

Outdoor Media
A) Hoardings 10,00,000
B) Full Train Paintings 1,00,000
C) Gantries 2,00,000

Sales personnel 3,00,000

Information service 25,000

Sampling cost 50,000

Total 1701000

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Financial :
In comparison to the recent years, we will focus on improving the financial position or at least achieve
similar results compared to 2010 and 2011. We have still expected the environment to remain difficult
due to financial, economic and social factors. The business couldnt expect a rapid recovery of the
economic crisis in 2010.Additionally because of the economic crisis changes in consumer trends of the
western countries are expected. Secondary weak currencies in emerging countries and an expecte draw
material crisis could weaken our financial results.

However despite the difficult environment the forecasts of the business for the year 2010 still include
growth potential.The priority goal of the business is continuing increasing cash flows of 2010. During the
year2009 we were able to increase its free cash flow by 20.6%. In 2010 we follow the objective
of increasing the cash flow by still at least 10%. The minimum target of an operating cash flowin 2012 is
2 billion. In addition the company tries to hold the operating margin at theconstant level of 2009. The
third forecast of 2010 is an increase in growth revenue of 5% compared to 2009. The strategy followed in
order to achieve these targets is increasing sales volume worldwide.After cutting prices in 2009,
responding to the economic situation of its customers, we haveto gain our revenues through the sale of
high product volumes. By responding to consumer trends, this should enable us to increase our market
share in key countries. Secondary thegrowth in cash flows should be achieved by optimizing general,
operating and administrativecosts and the reduction of financial expenses through restructuring the
companys debts.As the company can expect a 5.2% growth in sales volume in 2009 for all divisions
thefinancial forecasts of Danone for the next years wont change for worse.

In Indian food market we look at expanding our international operations and hope to increase the Groups
profit. As the price of our Yakult product is 10 Rs, we would have a profit margin of 25%.Additionally
the Group has to take into consideration additional costs for investments in newplants or machines. On
the basis pf calculations the Groups assumes to achieve a rate of return of theinvestment of about 16% .In
2009 the Group had a turnover of 14.982 billion, which means an increase of 3, 2%,despite the
economic crisis Danone was able to increase its turnover due to the new developed strategy in 2008.

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Human Resource:
Yakult has established a strong presence in the probiotic food category in India by directly reaching out to
consumers and explaining about probiotics and the benefits of implementing a proactive health
management philosophy. Innovation and information dissemination on probiotics has been fundamental
to their growth across geographies, making them global leaders. Yakult has a strategy of direct marketing
where the consumers can order the product through home delivery and along with that they hire team of
ladies known as Yakult ladies who visit homes, educate the homemakers about the product and also
regularly supplies the product. This ensures that the product is being regularly used by the consumers and
also the Yakult ladies will be able to answer the doubts of the consumers. Hence they follow intense
recruitment of efficient and energetic sales force.

Recrutment:

Designations at Yakult:

o Sales Executive
o Sales Representative
o Business Development
o Trainer

Key Responsibilities of a trainer: A female coordinator to lead and train the female sales representatives
for an MNC : "Yakult Danone India (P) Ltd" has following responsibilities:

o Training & motivating Yakult Ladies


o To give training to Yakult Ladies for field work and customer handling

Key responsibilities of a sales executive at yakult:

o Development of sales in an assigned area working door to door using companys scooter.
o Handling centre operations.
o Delivering of product to customers in absence of Yakult Ladies.
o To recruit Yakult Ladies.
o Sales promotion in small retail stores, residential localities, schools, offices etc.
o To provide Internal Support administratively for back office operations in a centre.
o To coordinate with Yakult Ladies for specific requirement, promotion material, petty
cash and uniform etc.
o To maintain daily sales report and keep a log book of vehicles.

Training of yakult sales force:

The Yakult sales ladies could be seen everywhere and their presence would pull you curiously towards
them like a magnet. Observing the Yakult presence in the market place the first thing noticed is the sales
representatives are extremely well trained and nicely equipped to execute the perfect serve. The ladies are
wearing smart uniforms presenting the Yakult logo at the right places and the uniforms include hats,

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white shoes and white gloves. Their product carriers are practically designed in great detail to add
unique, special and different values to the experience when buying from them. All the great details aim
at one thing and that is to execute the perfect Yakult serve.

During the training of sales business it is made clear for the sales force about how their Company brands
and services should be presented at the point-of-purchase. The reason for Yakult success is through their
strong brand values and their massive focus on the point-of-purchase. The Yakult sales ladies represent
natural healthy diet, kindness, trust and quality as being unique, different and special. They are respected
and act as diplomats being welcomed to enter any office building which are operating the highest security
standards, when other sales companies are strictly prohibited to enter.

Compensation:

Yakult belive in development and growth of their sales force and train them to become best in the
industry and also their compensation at par with the industry standard.

Corporate Social Responsibility Policy of Danone in India

They are already very engaged in protecting the environment and focus on different labourstandards
which need to be fulfilled of all business units, business partners and suppliers.

These social principles are based on conventions of the International Labour Organization.The most
important standards are: Prohibition of child labor Prohibition of forced labor Prohibition of all forms
of discrimination Freedom of association and the right to collective bargaining Protection of the
physical integrity of employees in the workplace Application of national law on working hours
Application of national law on minimum wages. As an example of the green marketing, Danones most
important environmental activity is focused on the protection of water resources and reducingtheir own
water consumption.

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References
Marketing Management - by Philip Kotler and Kevin Lane Keller, Pearson Education.

www.yakult.com.au/company06.htm

www.yakult.co.in

www.moneycontrol.com

www.yakult.co.jp

http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Yakult%E2%80%99s+marketing+and+dis
tribution+approach+goes+beyond+retail&id=584

(2010) Business-standard: Danone India sees wealth in health, Nov. 27,


2010, from:http://www.business-standard.com/india/news/danone-india-sees-wealth-in-
health/392640

Danone company website: Annual report 2009, Dec. 03, 2010,

from: http://danone09.danone.com/en/fb/data/catalogue.pdf

Retail Mantra: Grocery chains- Largest segment of reatil Dec. 03, 2010,
from:http://india.retailmantra.com/2009/02/grocery-chains-largest-segment-of.html

(2010), Respect of fundamental social principles, 15th Nov. 2010,


from:http://www.danone.com/en/index.php?option=com_content&task=view&id=44&Itemid=83&lang
=en

(2010), Spring water: a national heritage that must be preserved, 15th Nov. 2010,
from:http://www.danone.com/en/sustainable-development/water.html

(2010), Anand Sharma & Karel De Gucht: Partners in trade, partners for growth, 13th
Dec.2010, from: http://www.business-standard.com/india/news/anand-sharmakarel-de-guchtpartners-
in-trade-partners-for-growth/417950/

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http://www.thehindubusinessline.com/2010/03/17/stories/2010031750841700.htm

(2010), How new HRM policies are impacting Indias economy,


from:http://humanresource.org.gh/site/index.php?option=com_content&view=article&id=205:how-
new-hrm-policies-are-impacting-indias-economy-&catid=37:articles&Itemid=97

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