SWOT Analysis & TOWS Matrix

Awesome Possom

Company ProfileYakult Honsha was originally founded in 1955, by Minoru Shirota.

Portfolio1. food and drink

Beverages2. Pharmaceuticals3. ‘others’-cosmetics. Today Yakult is sold in over 32

countries worldwide

Consumer insights (VTR)

22%

5%

16%19%2%

36%

Customers concern

PriceQuantityPackageBrandPromotionOthers(Taste)

Survey results

Agenda

Internal Analysis

ExternalAnalysis

TOWS matrix

S W

O T

STRENGTHS

S1: High brand awareness S2: Strong brand reputation with health benefits

S

WEAKNESSES

W1: Limited flavor

W2: Storage Difficulty

(temperature)

W3: Limited Distribution

channel

WEAKNESSES

W1: Limited flavor W2: Storage Difficulty

W

OPPORTUNITIES

O1: Trend in health concernsO2: Increase in number of convenience stores and

hypermarkets

O

OPPORTUNITIES

O1: Trend in health concernsO2: Increase in number of convenience stores and

hypermarkets

THREATS

T1: Competitors provide many flavors,

packaging, and promotions

T2: Expiration of lactobacillus patent

gives rise to new competitors

S W

O T

S W

O T

MAXI-MAXI STRATEGY

S2 + O1: Launch a low-sugar

version of Yakult

S1 + O2: Expand distribution

channels to convenience stores and hyper markets

O1: Trend in health concerns

O2: Increase in number of

convenience stores and hypermarkets

S W

O T

MAXI-MINI STRATEGY

S1 + T1: Launch a low-sugar

version of Yakult

S1 + S2 + T2: Strategic partnership with Tipco’s Squeeze

S1 + T1: Six pack bundles.

6+1Week Pack

T1: Competitors provide many flavors, packaging,

and promotions

T2: Expiration of lactobacillus patent gives rise to new competitors

S W

O T

MINI-MAXI STRATEGY

W1: Limited flavor

W2: Storage Difficulty (temperat

ure)

W3: Limited

Distribution

channel

O1: Trend in health concerns

O2: Increase in number of convenience stores

and hypermarkets

W3 + O2: Expand distribution

channels to convenience stores and hyper markets

W1 + O1Herbal value added

flavors

S W

O T

W1 + W2 + T2: Strategic partnership with Tipco’s Squeeze

W3 + T1Penetrate

convenience store market to decrease

competition

MINI-MINI STRATEGY

W1: Limited flavor

W2: Storage Difficulty

(temperature)

W3: Limited

Distribution channel

T1: Competitors provide many flavors, packaging,

and promotions

T2: Expiration of lactobacillus patent gives rise to new competitors

Atkinson Shriffin Model (ref. consumer behavior)

Sensory Memory

Short Term

Memory

Long Term

Memory

Exposure

Vertical ExpansionVariety of flavors and a healthier version of Yakult (Yakult Lite) from

convenience stores

Repeated brand awarenessRepeating purchases

5102640843 Pimpann P.5202640024 Amornrat S.5202640776 Panu S.5202640826 Pat A.5202641253 Thananthorn L.5202641519 Yotsawat C.530264 Lloyd S.5302940027 Pimpanga C.

ReferencesInformation of Yakult Company’s profile

http://www.yakult.co.jp/english/top.html http://www.yakult.co.jp/english/htm/index02.html

Annual Report 2010

http://www.yakult.co.jp/english/pdf/ar2010_english.pdfInformation of Betagen

http://www.betagen.co.th/web/products/?lang=en Information of Dutchmill

http://www.dutchmill.co.th/p_delight_index.asp Information of Activia

http://www.activia.co.th/en/deliciouse.php Information of Meiji

http://www.cpmeiji.com/หนาแรก/tabid/37/Default.aspx Information of fermented milk analysis

http://www.gotomanager.com/news/details.aspx?id=55277Information of fermented milk market share

http://www.gotomanager.com/news/details.aspx?id=50028http://www.oknation.net/blog/print.php?id=474097

Increase in hypermarkets and convenience storeshttp://www.positioningmag.com/magazine/details.aspx?id=91044&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PositioningMagazine+%28Positioning+Magazine%29

Back-up Slides

Yakult 32 countries

BCG Matrix

Others (e.g. cosmetics)

BCG reference

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)

Internal Resource

Resource Portfolio

Resource strength relative to competitors

Inferior Superior

Impo

rtan

ce o

f res

ourc

e in

cr

eatin

g va

lue

for

cust

omer

s

High

Low

Crown JewelsResources that help differentiate in ways of value to customers

Achilles' HeelsResources that differentiate the

competition in ways important to customers

SleepersResources that are less important today – but be

wary in case they become important tomorrow

Black HolesPotentially costly resources where we have an advantage but that don’t create value for customers

- Originality/ Brand story- Distribution uniqueness- High brand awareness

- Reputation in health benefits

- Expired Patents of lactobacillus- Production Capacity

- Limited choice of flavors

- Limited distribution channel

PESTEL Model

Political

Economic

Social

Technological

Environmental

Legal

Low government intervention

Growing number of convenience stores

• Increase in health awareness • Growing number of elders

New use of Lactobacillus with beans

Degradable Packaging

• Consumer Protection Act.• Employment Act.

Rivalry in the industry

- Depends on buyers

Threat of Market Entry• Low product

differentiation

Power of Suppliers

• Low• 20 suppliers

Power of Buyers• Low switching cost• Limited channels

of purchaseSubstitutions

• Multi-purpose products

• Health: Green tea, Co-Q ten, Fitness

Five Force Model

NamePackagi

ngCharacteristic

sPrice (baht)

Market Share1

Activia 160 ml, 0% fat 11 N/A

Dutch Mill

(Delight)120 ml, 0% fat 6 15%

Meiji 80 ml, 0% fat 6 N/A

Betagen 115 ml, 0% fat 6 30%

Competitor Analysis

1Reference: Siam Thurakij No.931 17-09-2008

Low Quality

Cheating brand Premium brand

Awful brand Sincere brand

High Price

Low Price

High Quality

Marketing strategy comparisons

Yakult• Ads: comic,

telling story about Yakult and Yakult's Girl

• Communicate with old and new customers

• Remind customers of the brand

• Able to reach new kids in each household

Dutch mill(below and above)• Dlight- traditional

trade, cities like bkk• KCI (O% transfat) -

modern trade• Dutch mill girl -

approx 1500~• Currently try to

concentrate more on a functional

• Capture new customers from kids and teenagers

• Variety of products.

Betagen• direct selling• functional • mkt event

Meiji• Above and

below• Kamikaze ads• its functional b

enefit

Activia• Target health-

conscious women

Foremost• Omega 3

& Mono-unsaturated fatty acid - value added beside Lactobacillus

• foremost girl ~100

Additional information

R and D

Eco Vision

The future of Yakult

Company History

Company History (cont.)