Yakult Hong Kong

Topics: Marketing, Lactobacillus casei, Hong Kong Pages: 23 (5605 words) Published: July 7, 2013
Table of Content


History and Philosophy4
Yakult Hong Kong5

Global Marketing Environment6

Industry and Competitive Analysis7
PEST analysis8
Generic competitive strategy11

SWOT-Yakult Honsha Co. Ltd13


Entry Strategy20

Introduction of Entry Strategies20
Entry Strategy of YAKULT HONSHA CO. LTD.24
Advantages of Entry with Wholly Owned Subsidiary in HONG KONG25 Disadvantages of Entry with Wholly Owned Subsidiary in Hong Kong27 Global Promotion Strategies29

Standardization versus Adaptation31



People nowadays become more health conscious and eager for a better standard of living, Hong Kong Nutrition Association stated that ‘the community has been overwhelmed by tones of nutrition related advertisement, involving “dietitians” and other medical professionals for endorsement or recommendations’. It is the fact that people generally concern about their health condition and lifestyles. As early as 20th century, in other countries, like Japan, they have already noticed the importance of maintaining and strengthening their health and committed to prevent personal illnesses.

Yakult has been therefore produced and firstly introduced in Japan in early 1930s. Yakult is one of the most well-known brands of health drink. And it has been expanding its business in 32 countries around the world until 2012. In Hong Kong, Yakult has been launched for more than 40 years and known by Hong Kong citizens.

In order to thoroughly study the global marketing development of Yakult in future, this paper will cover the global marketing environment of Hong Kong Yakult, its global opportunities, global participation strategies, and the global marketing programmes involved.

History and Philosophy
Yakult is a fermented milk drink and it was founded in 1930. The presence of Yakult was inspired by Dr. Minoru Shirota, who is the founder of Yakult and also a Japanese scientist. He started his medical studies in 1921, due to the poor standards of living and hygiene in Japan, which resulted in different digestive disorder and illness throughout Japan. He began the study in order to seek the best solution to help people from preventing and avoiding illness.

Dr. Minoru Shirota successfully developed beneficial bacteria whish is known as Lactobacillus casei Shirota strain, and has a potential to improve people’s health condition. It was named as ‘Yakult’ and started manufacturing and sold in 1935.

Yakult segmented its target customer based on psychographic segmentation, where people are pursing a healthy life style and standard of living, and Dr. Shirota has concluded three principles of the healthy living:

1. It is significant to have prevention before any illness. 2. People can live longer only when we get a healthy body. 3. Yakult wishes to bring a good health to everyone and which is affordable.

In 2010, Yakult launched and imported a low-sugar version of the Yakult in Hong Kong, which targeted customers who was seeking a healthy body and the demand for low sugar products were therefore produced and increased.

Yakult Hong Kong
Yakult Hong Kong began its business as the company’s third overseas operation base in 1969. At the beginning of the business, Yakult has adopted Japanese Corporation’s cultural of direct marketing method, with the employment of saleswomen, who directly introduced and instilled the nutrition knowledge of Yakult to individual customers. In early 70s, in view of the continuous changing of marketing environment, while public housing estates, supermarkets, and stores have been built and become widespread in everywhere, Yakult has therefore changed its distribution channel.

Global Marketing Environment
“A global marketing strategy is a set of procedures and techniques...
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