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SMF Institute of Higher Learning

2985 Jalan Bukit Merah Singapore 159457ASSIGNMENT COVERSHEET

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Students Name (as in NRIC/ Student Pass):Low Zi YinStudent ID No:32344913NRIC No. (Local)/ FIN No. (Student Pass holder):S9172874E

Course:

Bachelor in HR & ManagementCourse Commencement Date:11-Oct-14Major (if any):

Study Mode:Contact No.:

Email Address:Icy_fountain@hotmail.com

90062169

Module Title:

BA102 Principles of Marketing

Assignment No:1/2Lecturers Name:Veron

Due date for Submission:

17/10/14Date of Submission:17/10/14Total No. of pages

(including coversheet):8

Nature of Assignment:Group Members (if any):

(Include full name and student ID No.)

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Date:

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ACADEMIC MISCONDUCT Rules (Students)

All forms of cheating, plagiarism or collusion are regarded seriously and could result in penalties including loss of marks, exclusion from the unit or cancellation of enrolment.Table of Contents

1.0.Brief Description12.0.Environmental Factors12.1.Macroenvironmental22.1.1.Political22.1.2.Economic22.1.3.Social22.1.4.Technology22.2.Micro environmental32.2.1.SWOT Analysis33.Company Marketing Mix43.1.Product43.2.Price43.3.Promotion43.4.Place44.0.Marketing Issues45.0.Factors Affecting Consumer buying behavior55.1.Cultural55.2.Social55.3.Personal55.4.Psychological56.Conclusion67.References6

1.0 Brief Description

Yakult is one of the most well-known brands of health drink. It was created by a Japanese scientist Minoru Shirota. In his earlier days of his medical career, he was concerned about the poor socio economic conditions in Japan. Therefore he decided to focus mainly on preventive medicine and turned to the study of microorganism. In 1930, he became the first in the world to succeed in biotechnologically strengthening and culturing a bacterial strain that could withstand the gastric juice and bile to reach the intestines alive.

Yakult is a probiotic milk-like product made by fermenting a mixture of skimmed milk with a special strain of the bacterium Lactobacillus casei strain is free of preservatives colorings and stabilizers.

Yakult operates in 33 countries, across five continents. Brazil was the first country being introduced to Yakult as large amount of Japanese immigrants in the country in 1966. Through the continuing progress of Yakult Shirotas passion, creativity, and inexhaustible curiosity live on till today, 1979 was the first year when Yakult was introduced in Singapore and the first factory setup was in 1978 at Senoko Avenue. Yakults primary market target consists of almost everyone who are health conscious and want to lead a healthy lifestyle. The recommended use for children is 1 bottle per day and 1-2 bottles per day for adults. In Singapores culture, convenience, quick service and accessibility is the most essential. Therefore Yakult can be purchased in many convenient stalls such as 7-eleven, supermarkets and schools.2.0 Environmental FactorsThe economy is Singapore has been growing rapidly, affecting consumer purchasing power and spending patterns. The marketing environment includes both macro and micro factors and often they are able to affect business environment. Macro environmental factors would include Political, Economic, social and technological. Micro will be focusing on the strengths, weaknesses, opportunities and threats of an organization. SWOT analysis method will be use in internal environment of Yakult analyzing through its strengths and weaknesses while the external environment will be analyzed though its opportunities and threats.2.1 Macro environmental

2.1.1 Political

The manufacture processes and materials used by Yakult are subjected to many federal regulations. In Singapore, Yakult would need to have a HSA license. The business is also governed by government and foreign rules. Being a MNC, the business is subjected mainly to political stability. Example Singapore a multi-racial country where everyone is treated equally ensures stability for the business to operate without disruption such as racial riot.

2.1.2 Economic

Interest rates, taxation changes, economic growth, inflation and exchange rates affect Yakult business. However, Yakult is being manufactured in Singapore, thus it would not be affected by interest and exchange rates. GST hike will affect the number of consumers, if GST increased highly, businesses will tend to pass down the higher cost to the consumers ( consumers lower purchasing power

2.1.3 Social

Singaporeans are now more health conscious and tend to spend more on healthier food products that are beneficial for their own bodies and everyone in the family.

2.1.4 Technology

The machinery and production equipments used in Yakult factory have been accredited the ISO9001 Certificate since 2003. With that, it eliminates uncertainty in the production process. By following standard procedures, achieving good and consistent quality helps increase production. Consumers can order Yakult online and the products will be delivered to the customers house. Technology helps reduce costs and improve quality.2.2 Micro environmental

2.2.1 SWOT Analysis

Strength

-Awards Recognition (ISO9001 Certified,HACCP)

- Beneficial for the body

- Well-known worldwide

- Brand Awareness

- Credible Reputation

- Quality consistent

- Broad channel of distribution

Weakness

- Old Brand Image (old school)

- Limited Storing Condition

Opportunity

-Increase in health awareness

-Increase in Disposable Income

- Brand Expansion(Manufacture a low sugar Yakult)

- Increase the variety of products

- Working with hotels to include Yakult as breakfast drink

- Using Yakult Cartoon for advertise(to attract attention of young kids)

- Wider target marketThreats

-Increasing research and development(R&D)

- Competing Brands (Vitagen,Meiji)

3. Company Marketing Mix

Marketing mix consist of 4Ps, Product, Price, Promotion and Place.

3.1 Product

A combination of goods-and-services the company offers to the target market. The Yakult products target the mass market, as the product is beneficial to all. They have 2 different ranges of products, mainly the normal Yakult and the ace-lite Yakult.Yakult offers unique service such as free home delivery services which they hired Yakult lady to do the job.

3.2 Price

Price range of Yakult are from $2.60-$3.10, they are a little more expensive comparing to the competitors brand. There is a great number of close substitutes available in the market therefore the demand of the good is generally elastic, there are alternatives brands of probiotic drink which are cheaper. Addition- if Yakult had been a Habit forming product then the rise in its price would not induce much change in demand therefore is less elastic, if the price of Yakult rises, people will switch their consumption to Vitagen so the demand for Yakult is elastic. 3.4 Promotion

Yakult uses television advertisement, explaining the benefits of the products to attract customers. To prevent misinterpretation of the product, Yakult also offers supermarket sampling, school workshops to let consumers sample the products and educate them the functions of probiotics.

3.5 Place

Yakult, the antibiotic drink is sold in 33 countries worldwide, including Singapore. In Singapore, they can be readily found in refrigerated areas in convenience stores such as 7-11, Cheers as well as major supermarkets such as NTUC, Cold Storage.Currently, Pre-schools are working with Yakult to let students cultivate the habit of drinking Yakult from young. 4.0 Marketing IssuesYakult has not been active in promoting their product on advertising platforms unlike Vitagen which uses Felicia Chin as their Brand ambassador. As such, Yakult is unable to compete effectively with their competitors due to the lack of use of social media to reach out to the younger generations.

Shelf locations play a part in brand-age positioning. Yakult are always placed at the bottom of the shelf which is not easily seen to customers unless they are looking for the product. Yakult also does not provide free gifts to consumers unless their competitors.

5.0 Factors Affecting Consumer buying behavior

5.1Cultural Over the years, there is a rise in F&B outlets selling Probiotics product-yoghurt ice-cream (llao llao, Yami Yoghurt). These products are easily bought and they are served in cups which provide convenience. The consumers can also choose to add toppings to their yogurt. It is also in the Singaporean culture to have desserts after their meals with their friends. Being a warm country throughout the year, Singaporeans love to enjoy cold treats to cool themselves down, so Yakult can work on inventing yoghurt ice-cream so as to improve sales profit.

5.2 Social

The company should also look into making use of Social media such as facebook and twitter and blogs etc. It helps to reach out to their audiences, promote the brand and is a cheap form of advertising.

5.3 Personal

Being introduced to Yakult since Primary school through factory visits ensure Singaporean to be familiar with the drink and are well educated on how Yakult can aid our digestion system. Based on the chart, there is a large population between ages 24-59. This group tends to be more health conscious and if they are willing to spend, it will benefit everyone in their family.

5.4 Psychological

Yakult should collaborate with athletes to motivate consumers. Recently they became a sponsor of FINA SWIMMING WORLD CUP 2014.Yakult can use their health benefits to spread the messages across how good their products are. Yakult can launch special campaigns to change the beliefs and attitudes of consumers.

6.0 ConclusionProbiotics in Yakult help replenish the body system supply with good bacteria and it is age-friendly. Yakult need to assess and evaluate their internal business/corporate environment and external environment which is subdivided into micro and macro which helps to add value to satisfied consumers and retain consumers. In the SWOT analysis, we can see that they have more strengths compared to weaknesses. Their strengths include being a strong leading brand among the other health drinks and their credible reputation. Yakult has a wide channel of distribution, the most notable being the home delivery services where they engaged Yakult Lady, to bring the benefits of their probiotic products conveniently available to all people.

Being an established brand, they have not changed much of their packaging which is still very old-school yet there is limited storing condition to store Yakult. Some opportunities which Yakult can venture into will be the invention of a low-sugar and collagen drinks so as to capture a bigger market by targeting the health conscious consumers, as well as cater to the elderly as aging population is rising in Singapore. They also can look into working with hotels to include Yakult as breakfast drink, use Yakult Cartoon for advertising to attract attention of young kids and they can also invented Yakult ice-cream which is trending in the market now.

Yakult has various marketing issues which needs to be improved, some of which includes adding a Brand ambassador, change the position of Yakult on supermarket shelves, put some advertising banner or pop out icon leaflets, pamphlets on the shelves so that consumers will be able to notice it from far. As for the potential market towards teenagers, Yakult can sponsor bloggers to help them do free advertising. An effective way to understand consumers perception will be conducting surveys and welcoming feedbacks. This allows consumers to give opinions, suggestions or improvements. It also makes them feel that their suggestions are important and valued.Word Count: 16057.0 Referenceshttp://yakult.com.sg/

http://economicsconcepts.com/factors_determining_price_elasticity_of_demand.htmhttp://managementstudyguide.com/what-is-consumer-behaviour.htm

http://www.brighthubpm.com/project-planning/100507-performing-a-pest-analysis-walking-through-an-example/http://www.marketing91.com/factors-affecting-consumer-buying-behavior/http://www.singstat.gov.sg/statistics/browse_by_theme/population.html

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