Yakult and Activia case study: launching probiotics in the nascent US market

Published by: Datamonitor

Published: Apr. 18, 2008 - 14 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Probiotics have been successfully marketed globally, but have only recently taken off in the US

Probiotics have been a major success internationally

A lack of knowledge about the perceived 'unappealing' probiotics market and a reluctance to spend a premium on a dairy product have hindered US growth

Evidence suggests that US knowledge of probiotics is increasing

Health, convenience and portion control food trends, have boosted US performance of probiotics

US consumers are also anxious to offset rising healthcare costs, meaning they are more likely to take a long-term approach to managing their health

Heritage and education have been core features of Yakult's marketing

Yakult has a strong heritage in Japan, dating back to the 1930s

Yakult has capitalized on the strong Hispanic market for probiotics by test launching in Hispanic areas before national rollout

Consumer education initiatives have been vital to help Yakult overcome consumer skepticism surrounding probiotics

Communicating its probiotic research activities has also been an important part of Yakult's education initiatives

The company has undertaken further research into probiotics with Danone to aid more understanding of the substance

The small size of Yakult bottles was initially a turnoff, but its uniqueness could be been turned to an advantage

Activia is marketed as an enjoyable food product with believable, tangible gut health benefits

The phenomenal growth of Activia has been aided by a substantial ad spend in its first year to market

Activia achieves sales of over US$100m in its first year

Activia has undertaken consumer testing, followed by product sampling, to gain an understanding of the market and promote word-of-mouth marketing

A substantial advertising budget has aided growth

Activia is now looking to expand its appeal using celebrity endorsement and sponsorship

Jamie Lee Curtis has been recruited for its adverts in 2008, capitalizing on her celebrity status

The company sponsors gastro health conventions and runs ads in medical journals to gain professional support for Activia

Product line extensions offering other desirable consumer benefits look set to grow the brand further

APPENDIX

Case study series

Methodology

Secondary sources

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Figures

Figure 2: Yakult product ideals, or 'Shirota-isms', are named after its founder, Dr. Minoru Shirota

Figure 3: 'Yakult Ladies' in Mexico and China, provide a home delivery service

Figure 1: Yakult is sold in unique-looking single-serve small bottles

Figure 4: Activia has undertaken celebrity endorsements to enhance the brand's profile

Figure 5: Dannon aims to enhance growth of Activia by releasing numerous flavors in both light and normal styles

Abstract

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