Company Profile

Corporate NameYAKULT HONSHA CO., LTD.

FounderDR. MINORU SHIROTA

Founded in1935 IN FUKUOKA CITY, KYUSHU

Date incorporated APRIL 9, 1955

Head office1-19 HIGASHI SHIMBASHI 1-

CHOME, MINATO- KU, TOKYO, JAPAN

Yakult began its journey in Japan, and has since grown across 33 countries across the world, with more than 111,000 people now working with the organisation.

Minoru Shirota began his medical studies at Kyoto

Imperial University (now Kyoto University) in 1921.

Dr. Shirota aspired to advance preventive medicine, which aims to help people avoid sickness, and started down the path of microorganism research.

Discovered Lactobacillus casei strain Shirota.

Dr. Shirota then developed an inexpensive, good-tasting beverage

Yakult created through the pursuit for a disease-resistant body

Minoru Shirota, M.D., Ph.D.

This was the beginning of the history of Yakult, which is now popular around the world.

The word ‘Yakult’ from the universal language Esperanto “YOGHURT”.

Lactobacillus (genus): Made up of two Latin words: lacto meaning milk, and bacillus meaning small rod. Lactobacilli are small rod-shaped bacteria, often found in dairy products.

casei (species): Latin for 'cheese', reflecting the association of this species with fermented dairy products.

Shirota (strain): Named after Yakult's founder scientist Dr Shirota.

6.5 billion cells that scientifically proven to reach the gut alive.

The global corporate philosophy of the Yakult Group is:

"We contribute to the health and happiness of people around the world through the pursuit of excellence in

life sciences in general and our research and experience in microorganisms in particular."

Mission and Goal

Yakult's greatest goal is to bring smiles to faces everywhere.

Vision: Yakult pushes forward with the quest for new possibilities for probiotics in the academic and

medical fields.

Objective: to increase customer awareness about healthy drink.

Strengthening the digestive system.

• The philosophy shone through in the way that he set up the company, from the revolutionary Yakult Ladies system to a wide programme of corporate, cultural, academic and scientific sponsorships.

Strategy – how it manages to achieve its mission and goals

• Yakult gives affordable selling price to most of the people in the community so people can get better health with an affordable cost

A healthy life for as

many people as possible.

• Yakult provides some visits for the students or organizations to visit their manufacturing. It can introduce their benefits for drinking Yakult.

• Yakult will have some TV advertisement to remind that there is a product called Yakult.

• Yakult organizes conferences and funding research, all to increase understanding of the role of beneficial bacteria in health

Yakult is actively working to convey the value of probiotics to people around the world and advance the globalization of its

operations.

Competitive Advantage

• Lactobacillus casei has its unique function which benefit to the intestinal system of human body. No other companies are able to use the same bacterium to perform the same function

• Function of the bacteria, Yakult discovered, brings a unique effect in human body which is different from the result bought by other healthy drinks.

• Unique Packaging

• The history of the company is also a promise of product quality.

SWOT Analysis

Internal Analysis: Strengths and Seaknesses External Analysis: Opportunity and Threats

Customer-based assets• Brand reputation • Originality

(in consumers’ mind) • Superior taste

(ref. survey) • Direct relationship with

customers

Supply chain assets • Distribution

uniqueness

Internal support assets • Setting up dept. for

specific operations • Patents of

Lactobasillus • Economy of scale –

market leader • Production expertise

(but with limited capacity)

Political

Economic

Social

Technological

Environmental

Legal

Low$government$interven-on$

Growing(number(of(convenience(stores(

• $$Increase(in(health(awareness((• $$Growing$number$of$elders$

New$use$of$Lactobacillus$with$beans$

Degradable$Packaging$

• $$Consumer$Protec-on$Act.$• $$Employment$Act.$

S

O

O

W

O

S

Strengths Vs. Weaknesses

High Brand Awareness Limited flavor

Strong brand reputation with health benefits Storage Difficulty (Temperature)

Limited Distribution Channel

Opportunities Vs. ThreatsTrend in health concerns Competitors provide many flavors,

packaging, and promotions

Increase in number of convenience stores and

hypermarketsExpiration of lactobacillus patent

gives rise to new competitors

Name! Packaging! Characteristics! Price (Php)!

Activia! 160 ml, 0% fat! 15!

Dutch Mill

(Delight)!120 ml, 0% fat! 8!

Meiji! 80 ml, 0% fat! 8!

Betagen! 115 ml, 0% fat! 8!

Name Packaging Characteristics Price(PhP)

Nestle Chamyto 80g, ? Fat Phase Out in Ph10

Bear Brand 78 mL, 0% fat 8

Global Operations StrategyHealth and happiness for people around the world

Yakult, first created in Japan, is now popular in countries and regions throughout the world.

Yakult aims to continue delivering good health to as many people as possible, with the basic philosophy of local production and local sales.

• Yakult began its overseas expansion in 1964, guided by founder Minoru Shirota’s vision of “protecting the health of people around the world.”

• This 2015, Yakult conducts sales in 33 countries and regions including Japan, and operates 27 overseas business locations.

*As of December 2014. Number of Yakult dairy products consumed per day: Average for 2014

• Over 43,400 Yakult Ladies , 505,600 stores handle our products,approximately 25.2 million Yakult dairy products are consumed per day.

Going forward, Yakult will continue to work to convey the value of Yakult probiotic drinks to people around the world. Yakult steadily widening the ring of Yakult consumers, continually pursuing the achievement of its mission to contribute to the health and happiness of people around the world

Yakult, a Global Brand That is Loved Worldwide

Yakult is actively working to convey the value of probiotics to people around the world and advance the globalization of its operations.

Issues in Operations Strategy

• Yakult does not try to expand its product line with more flavor or different drinks in other countries.

• Qua l i t y p rob lems and made a Deteriorated taste

• “Yakult Ladies Strategy”  is not effective in other countries since people referred to buy from local store or supermarket.

Conclusions and Recommendations/ Suggested Solutions to Issues

• Follow up to ensure the execution is taking place as planned. Seek input from staff at all levels and throughout various divisions of the company. Without frequent communication with -- and feedback from -- staff, the business can't adjust course when necessary. Continuous assessment and follow-up is essential to maintain a competitive advantage. Frequently adjust the operational strategy in response to significant internal and external opportunities and threats.

• To prevent deteriorated taste, Yakult can preserve for a month after the production, the expired Yakult will be collected from the store and dispose afterwards.

• Other ways it could use to improve itself, is by getting more innovative in launching new product of the same type, which may include the packaging design, or information details.

Presented by:Ray Anthony Bulan

May Ann BalleraRholin Grace Bulan