Marketing plan for Yakult

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 1|Page

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 2|Page

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 haven‟t 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 don‟t 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 India‟s HRM history, but the impact won‟t 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.

3|Page

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 diseasecausing 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%

4|Page



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

5|Page

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 family‟s 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.

6|Page

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. Yakult‟s 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.

7|Page

   

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. It‟s a major challenge for Yakult to educate the consumers to choose their product.

8|Page

Competition Analysis One of the closest competitors of yakult, delicious Probiotics fermented milk drink is mother dairy‟s 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 children‟s 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.

9|Page

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 Total Fat Saturated Polyunsaturated Monounsaturated Trans Cholesterol

28 0g 0g 0g 0g 0g 0 mg

Sodium Potassium Total Carbs Dietary Fiber Sugars Protein

22 mg 0 mg 8g 3g 0g 1g

Nutrifit

Nutrifit is a delicious Probiotics milk drink containing billions of LA5 friendly bacteria which strengthen the body‟s 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 10 | P a g e

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 Energy Protein Carbohydrates Fat Calcium

73 calories 1.8g 14.6 .8g 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”).

11 | P a g e

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.

12 | P a g e

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 13 | P a g e

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 Yakult‟s 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 body‟s 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. 14 | P a g e

Yakult is priced at Rs 50 for a pack of 5 bottles. It is manufactured at Yakult‟s 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.”

15 | P a g e

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 Japan‟s 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 16 | P a g e

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 product‟s name, and the bottle‟s 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.

17 | P a g e

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 people‟s money

18 | P a g e

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.

19 | P a g e

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.

20 | P a g e

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 Yakult‟s 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

21 | P a g e

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 Yakult‟s 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 women‟s 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

22 | P a g e

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

23 | P a g e

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 Digital marketing budget

Approx. in Rs 26,000

Outdoor Media A) Hoardings B) Full Train Paintings C) Gantries

10,00,000 1,00,000 2,00,000

Sales personnel

3,00,000

Information service

25,000

Sampling cost

50,000

Total

24 | P a g e

1701000

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 couldn‟t 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 company‟s 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 won‟t change for worse. In Indian food market we look at expanding our international operations and hope to increase the Group‟s 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.

25 | P a g e

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 o o o

Sales Executive Sales Representative Business Development 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 o

Training & motivating Yakult Ladies To give training to Yakult Ladies for field work and customer handling

• Key responsibilities of a sales executive at yakult: o o o o o o o o

Development of sales in an assigned area working door to door using companys scooter. Handling centre operations. Delivering of product to customers in absence of Yakult Ladies. To recruit Yakult Ladies. Sales promotion in small retail stores, residential localities, schools, offices etc. To provide Internal Support administratively for back office operations in a centre. To coordinate with Yakult Ladies for specific requirement, promotion material, petty cash and uniform etc. 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, 26 | P a g e

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, Danone‟s most important environmental activity is focused on the “protection of water resources and reducingtheir own water consumption”.

27 | P a g e

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

Nov. 27,

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. from:http://india.retailmantra.com/2009/02/grocery-chains-largest-segment-of.html

03,

2010,

(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, from:http://www.danone.com/en/sustainable-development/water.html

15th

Nov.

2010,

(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-guchtpartnersin-trade-partners-for-growth/417950/

28 | P a g e

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

(2010), How new HRM policies are impacting India‟s economy, from:http://humanresource.org.gh/site/index.php?option=com_content&view=article&id=205:hownew-hrm-policies-are-impacting-indias-economy-&catid=37:articles&Itemid=97

29 | P a g e