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Yakult was introduced to the Philippines in 1978. Its popularity among Filipinos has significantly

grown in the past 33 years. The Yakult Plant at Barrio Makiling, Calamba Laguna is one of Asias

best production facilities in terms of technology, sanitation and quality control. Here, the Yakult

product is produced in a totally sanitized environment following strict quality control standards.

It is produced with minimal human intervention using modern and technologically advanced,state-ot-the-art facilities to ensure non-contamination of the product. Rigid quality control

procedures assure the conformity of the product with the world-renowned Yakult formulation.

Through the years, Yakult Philippines, Inc. has upheld its commitment of providing good health

through the use of beneficial microorganisms. All the endeavors the company has undertaken

and continues to undertake are guided by its principle to promote to the health of the Filipino

people. Consistent with this principle, the company continues to educate the Filipino

consumers on the health benefits of the Lactobacillus casei strain shirota. It seeks to

supplement its expanding market coverage with great missionary zeal that good digestion leads

to good health.

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 caseiShirota. 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.

Vision:

Yakult pushes forward with the quest for new possibilities for probiotics in the

academic and medical fields. We work with doctors, scientists and dietitians

worldwide to help people with medical conditions and find ways our probiotics

can be used to help people suffering. Yakult's research has led to many

significant medical advances, even beyond the Probiotics field, such as the

development of the Campto Injection, the first-line drug for colon cancer in thePhilippines

1. Strengths for Yakult include:

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It is well established in Asian countries and known to be popular among Asiancommunities in Australia.

It is targeted at everybody, using the slogan "Every body. Every day." Australians have embraced healthy lifestyles and see products like Yakult as having a

place in their diet.

Weaknesses for Yakult include:

It needs to be refrigerated, so some outlets would be unsuitable. The small size of Yakult means it is not visible amongst other refrigerated products in

some refrigerators.

People are confused about its packaging size.Opportunities for Yakult include:

To be included as part of the breakfast menu in hotels or fast food outlets. The advertising campaign using the Yakult cartoon character, which is already well

established. The cartoons can be used to appeal to children.

Adding Yakult to other foods, for example, milkshakes.Threats to Yakult:

A number of other probiotics foods are on the market in a form more recognisable tothe public e.g. yogurt containing live bacteria.

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 partof their diet.

Well established. Yakults benefits have been scientifically established

through years of research and30 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 theYear from Frost & Sullivan.

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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 timetheory 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

thecustomers 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 has50,000 such ladies.

In India probiotic industry is still a nascent industry.Rs100 crores. A strong presence since last

75years 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 ofingredients, 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.

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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

enteredthe market.

Nestle, NDDB's Mother Dairy and GCMMF's Amul are the few other competitors for Yakult.

IFE

Recruitment of Yakult ladies .2 3 .6

Adding more production machines .2 2 .4

Giving away refrigerators for storage purposes .1 2 .2

Increasing brand products .1 2 .2

Adapting the economic climate .15 3 .45

Expansions .05 2 .1

Recruitment of experienced managers, employees .2 3 .6

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Net sales $3,173,354

Operating income 225,024

Net Income 166,750

At the year-endTotal Assets $3,845,686

Total Liabilities 1,185,655

Total share holders equity

Total equity 2,660,031

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Financial Position

Leverage 3

Liquidity 2

Working capital 2

Cash flow 3

11

Industry Position

Growth potential 4

Page Profit potential 2

Financial stability 4

Resource utilization 3

13

Stability Position

Technological changes 3

Price range of competing products 3

Competitive Pressure 2

Price elasticity of demand 3

11

Competitive Position

Market Share 1

Product quality 3

Customer loyalty 3

Product lifecycle -1

6

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Conclusions

FP Average = 11/4 = 2.75

IP Average = 13/4 = 3.25

SP Average = -11/4 = 2.75

CP Average = -6/4 = 1.5

Space Matrix Coordinates:

X-axis: CP+IP or (3.25+1.5) = 4.75

Y-axis: FP+SP or (2.75+2.75) = -5.5