Post Company Visit - Yakult

Yakult is a Japanese probiotic mike-like product which was created by Minoru Shirota in 1930. Dr. Shirota discovered that lactobacilli were effective in suppressing harmful bacteria within the intestines.


Philosophy
For a long time, people have believed that a healthy intestinal tract leads to a long life. That was also the belief of our company's founder, Dr. Minoru Shirota. He worked with volunteers, then developed an inexpensive, good tasting beverage, so that as many people as possible could benefit from Lactobacillus casei strain Shirota, which reaches the intestines alive and promotes intestinal health.

Business Details

Yakult started their business in 1969 in Hong Kong. The first factory was located at Kwun Tong and now the factory is moved to Tai Po. In the beginning, Yakult used to employ “Yakult Mama” direct marketing strategy to sell the drink. It used to use glass bottles in order to recycle and reuse them. Then Yakult changed to use plastic bottle in 1968. Yakult has recently published a new flavor of Yakult – Yakult LT

Yakult has localized its bottle size in different coutries. In Australia, Europe, India, and Indonesia, Yakult comes in 65mL bottles. In the Americas (including Mexico, one of Yakult's largest selling markets), Japan, Philippines and South Korea, 80 ml bottles are available. In Thailand, Singapore, Taiwan and mainland China, and the United States. It is also available in Hong Kong where it comes in 100 ml bottles.

The following is the latest video advertisement of recent introduced Yakult LT.

During the Visit

We have learned:

• The breeding process of the lactobacilli 
• The manufacturing process of Yakult drink
• The design of Yakult drink bottles at different countries
• The underlying  biology principles of lactobacilli 
• To taste the freshly produced  Yakult LT

 Reflection - Yakult Business Practice
After the company visit, we had a deeper understanding of Yakult Co. There are several business practices are worth highlighted.


Emphasis on Quality Control

1. Actively apply Replenishment & recycle with retailers

• Strict Quality Control, because of short valid period of Yakult drink( 1 month)

2. Provide marketing strategy – Impact Marketing

• suggest placing loads of Yakult drinks at the eye-catching place of store
• Increase the sale of drink
• Reduce the amount of recycling drinks

3.. Insist of placing bottles by their own staffs

• ensure first in first out (FIFO)
• No Yakult drink at Tastes because of the negotiation of this policy 

4. Yakult has their own fleet of trucks to distribute drinks



Localized of product and selling method



5. Design localized bottles(100mL)

• maximum size, localize for HK people which culture prefers larger volume of drink

6. Change the strategy of Yakult mama into retailer stores selling

• because of cultural difference
• HK people refuse direct marketing (door-to-door selling method)

 Minimize manufacturing cost 

7. Forecast demand for production

• because Yakult drink has short span of storage 
• daily production ~1million bottles , mostly original flavor and less Yakult LT (green)

8.    Yakult production operates at night

• the lower electricity cost at night in the factory district
• save manufacturing cost

9. Make plastic bottles by their own

• reduce transportation cost and time