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  • Yakult's growth selling overseas is soaring every year: especially developing countries such as Brazil,China, Mexico, India, Malaysia etc.
  • Half of the Yakult's profit comes from overseas (48%)
  • The question is why their product growth is very strong at developing countries?

-Their tactic was to cultivate the undeveloped markets which would be potentially lucrative unlike saturated North American and European markets

-In 1960, Yakult was sold in Taiwan as a first foreign country to sell the product

-Later, the market regions were expanded into other developing countries, such as Brazil, Hong Kong, Thailand, So. Korea, Philippine, Singapore and Mexico

-Until 1990, Yakult was not sold in North America and Europe

-Customers from developing countries tend not to stock up large packages and prefer to consume foods and drinks within one day after their purchase due to their lack of places to preserve those products

-Yakult's individual package is originally mini 65ml bottle, therefore it's not required to minimize the product for consumers in developing countries in the first base

-In developing countries, privately owned-shops and local markets are mainly structured unlike larger supermarket and shopping mall easily accessible with automobiles and bikes in developed countries

-Door to door sales from Yakult lady is the perfect model for selling the product in the third world country

  • Most background knowledge is not common among consumers from developing countries
  • Especially for healthy products like Yakult, knowledge regarding the nutrition and effectiveness is required to be informed by someone beforehand
  • The roll of Yakult lady is suited well for this function
  • Since 2006 when Yakult was first sold in Beijing, "Yakult-booming" was evoked
  • In 2010, Yakult's volume of sales was grown up to be more than 60 thousand bottles everyday only in Beijing
  • Almost all of supermarkets in Beijing sell the product

  • Yakult succeeded in maintaining own brand image of rich and high quality

How?

1)Built their own local factories in China investing 100% of their assets by themselves, not joint- ventured with Chinese local companies

⇒Controlling their brand image and quality by their own styles

2)All ingredients are imported from overseas

⇒the fungus (Kazei shirota) is directly imported from Yakult Center of Research in Japan

  • As a result, Chinese consumers hold image of "rich," "trust" and "high quality nutrition" for the product
  • Due to the cost of ingredient's import as well as the tariff, it's considered to be luxurious product among Chinese consumers

⇒ Sold with 10 gen (around 125 yen) for 5 packs, twice as expensive as the same-kind products in Chinese market

  • Some Chinese people started to smuggle Yakult from Hong Kong where it was sold cheaper and people from Hong Kong protested about those Chinese smugglers dominating Yakult in Hong Kong

#3:Public awareness campaign

Directly inform the effectiveness, necessity, and how to drink the product

#2: Localization of how to sell

Customizing ways of how to provide the product

Why Yakult is strong at developing markets?

Success story in China

Reasons of success..

Besides all three tips..

History of Yakult's cultivating developing countries

#1: Localization of the product package

Selling with small-lot

Battle for getting Yakult among Chinese

The Success of Yakult in developing countries

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