The Probiotic Story: Yakult India.

Aswathi Cherkkil
8 min readNov 16, 2020

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PROBIOTIC PRODUCT CATEGORY- YAKULT

Introduction

The idea of consuming bacteria can be a bit hard to sell to consumers. But over the consumers have gained access to knowledge that proves otherwise. Probiotics as consumer products, originated in Japan. It is a product made from fermented foods that contain viable microbial species, or healthy bacteria that help in maintaining gut and intestinal health. There have been claims of other health benefits of consumption of probiotic products, though many of these lack scientific evidence. The WHO defined probiotics as: “live microorganisms which when administered in adequate amounts confer a health benefit on the host.”. Since ancient times people have been consuming fermented products like fermented milk, bread, wine, beer, vegetables etc. Marketers and manufacturers saw probiotic as a high potential industry and probiotic products and brands started being launched in the 20th century. Although there have been previous products launched in France linked to probiotics, Yakult probiotic milk is often considered as the world’s first commercially available probiotic product.

Yakult was founded in 1935 by Dr. Minoru Shirota from Japan who was a pioneer in preventive medicine. He developed a strain of bacteria from lactic acid, called the Lactobacillus casei strain Shirota. He realized that the product this strain of bacteria would help to suppress the harmful bacteria in the intestine. For better consumption, the bacteria was paired with a good tasting beverage where it would live off the sugar components and was trademarked and sold as Yakult. Yakult is one of the most prominent players in the probiotic industry globally. They entered in India as a Joint venture with French diary company Danone in 2005 and launched yakult in India by 2007. Over time they have had brand ambassadors and advertisements featuring celebrities like Kajol and Shilpa Shetty.

Disentangle the frame of reference:

Presently for probiotic drinks like Yakult, by searching online the major frame of reference in the minds of people are Indian version of the yogurt called ‘Dahi’ and a claim that we have been using it since eons. But not many people are even aware about the differences in dahi, yogurt and probiotic yogurt. Dahi is a homemade version of yogurt/curd where we add a small amount of curd to lukewarm milk to act as activant and then convert the milk to curd. However the bacteria that is present in Dahi, lactobacillus bacteria needn’t always be of high quality and beneficial to the gut/intestines. It is needed that the bacteria be alive when it reaches the gut which is not the case of bacteria from dahi. Yogurt is made from two specific strains of bacteria called lactobacillus bulgaris and streptococcus thermophilus which are used to ferment milk and these strains are made in laboratories and used by manufacturers to make yogurt. For probiotic milk/ yogurt these is a specific strain of bacteria called Lactobacillus casei strain Shirota which is more resistant to gastric juices and hence reach our intestines alive. It is more beneficial to the gut and intestinal health. It is also claimed to improve immunity. Harvard Medical school has approved of the digestion and gut related benefits of probiotic products.

This indicates that the frame of reference in the minds of the consumer is wrong and needs correction. As for the general rule of setting a frame of reference, we are aware of that if the point of reference is not obvious but not conducive then we have to change the reference point. In case of probiotic drinks like yakult in India it would be beneficial to set a frame of reference intentionally in order to attract consumers. Yakult can do this through advertisements and educational campaigns. Although the claims tend to be more medicinal it is not advisable to take that route, since it will reduce the purchase rates of the product. The frame of reference could be associated to products that consumers are highly aware of, which would include products like Dabur Chavanprashya. They have been successful in making health related claims and yet been considered consumer friendly purchases. Yakult could take a similar route. They could also focus and clear customer doubt with regards to the product being natural and safe to consume. Setting a right frame of reference for the product would increase people’s attention toward it and subsequently help in improving product/ brand awareness.

Create incentives

In the paper “Use Behavioral Economics to Achieve Wellness Goals by David A. Asch, MD and Kevin G. Volpp, MD, it is conveyed that education is not the primary and best option to increase customer awareness, incentives do a better job at this. It is also said that its not the value or size of the incentive that matters, rather how it is framed and messaged matters more. As the product is associated with health and wellness, and as there is an increasing popularity among Indians now for adopting a healthier lifestyle, they believe that a healthy lifestyle would lead to personal satisfaction and happiness, it can be marketed successfully to the Indian consumers. In order to increase consumption, the brand can be associated with incentives like gain in popularity through social media by creating and following a fitness challenge. The brand could also sponsor sports and fitness events, which would bring it to the eyes of health conscious consumers.

Brand diversification:

Brands like Yakult have for long been focusing on prototypicality, they have enjoyed a first mover advantage in the probiotic industry. They have also been consistently producing and selling the same product of probiotic product which is the Yakult probiotic milk. Although this would help them in retaining the position of a pioneer and market leader, this would fail to create any dynamism and innovation associated with the brand. And would ultimately lead to attribute satiation. They could do more to experiment with flavors or packaging. Also enter into newer product categories. Yakult being a global best seller can afford to introduce some variety in its products. The Yakult Danone Joint venture can plan to launch products like yogurts under a different brand name by utilizing the dairy capabilities of Danone. Developing and marketing a product that would be more familiar to the consumers would help increase credibility and awareness for the company which can later be used as leverage for the probiotic products.

Creating a memory advantage- (Spreading activation model)

The spreading activation model of memory, proposes that long term memory is activated and built by repetition or by encoding. To enhance customer memory, using repeated advertising focusing on celebrities would be a good choice. It is something that yakult has been trying to do. The initial brand ambassador was Kajol, her motherly figure now is what the company was trying to resonate. This however wouldn’t have worked out well since most Indian mothers have been fed dahi and sugar in place of probiotic foods by their mothers. This meant that reaching out to them would require more trigger.

Dahi- plain Indian yogurt

Recently Yakult has been advertising with a more health related celebrity like Shilpa Shetty who is known for her fitness. There is more sense and opportunity in associating with Shilpa Shetty. Repeated advertising tends to be costlier and hence focusing on a recurring theme in the advertisement or creating a good jingle and tagline would benefit the company more and create an added advantage of memory for the consumers.

The company would do well to put the means end theory to work and understand the values associated with the purchase that the consumer is making. Focusing on these values and popularizing them through the use of metaphors (ZMET) in creating advertisements. Affective advertising using humor and emotional appeal would also help in increasing mindshare of consumers.

Factors driving diffusion

Relative advantage: For the product, relative advantage is comparatively lower as they could not entirely replace Dahi made in Indian households.

Compatibility: The comparisons with Dahi and other Indian versions of probiotics reduces the appeal for Yakult drink. The brand and marketing doesn’t favor or showcase compatibility with an Indian diet. In order to improve the customer perceptions about compatibility it would be advisable to use Indian eating habits and flavor compositions in the product and its advertising.

Complexity: The product has an advantage in terms of complexity for faster diffusion and adoption meaning it is not very complex to use and understand. This simplicity is however not translating to increased awareness meaning the brand communications have not been clear enough to convey this factor, which is something that can and should be easily corrected.

Observability: Use techniques to increase observability of the product, by making supplies to office and school canteens at a lower price rate. It would also prove to be better if the availability of the product is made extensive, more than the few locations that it is currently serving.

Trialability: As for Yakult the trialability is very high. Since the product comes in small doses, increasing sampling inside supermarkets and stores, making smaller cartons available would help.

Through Elaboration Likely hood Model (ELM)

Persuasion through Central Route: there is a need for increasing customer cognition and involvement, by providing valid message arguments, for Yakult and probiotic products, increasing customer involvement can be done through the affective appeal by injecting humor and celebrity endorsements into the brand advertisements. Similar to the lifebuoy campaign at the Maha kumbh mela, yakult could increase customer awareness by sponsoring and catering to meals offered at festivities and religious occasions in temples and so on. It would also do well to focus on some hedonic attributes of the product in the advertisements.

The Fishbein Model

Targeting subjective norms in personal beliefs: The Fishbein model explains the rationality of customers’ choice of the product by using measures of his/her overall attitude towards the product. It states that one’s attitude influence behavior by their influence on intentions which are decisions to act in a particular way. To increase purchase intention of probiotic products, personal opinion or belief can be influenced by having open communications with the consumers and classical methods for informing consumers of product features, a rational consumer will be able to understand the significance of the product. Subjective norms could be inculcating a sense of good parenting i.e. improving the overall health of the children and focusing on what they are given to eat. This would create, a sense of responsibility towards the children as parents and would help increase the awareness of the product among such communities. Targeting children for memory advantage would also be an effective way of raising awareness. But it would require targeted advertising and packaging and a slight variation in product positioning which might or might not work in favor of the company. The safer option would be to lead the consumer to serving the product to improve health of children.

References

1. https://www.financialexpress.com/industry/yakult-danone-expects-india-to-be-a-major-market-in-coming-years/606284/

2. https://www.researchandmarkets.com/reports/4858175/india-probiotics-market-forecasts-from-2020-to

3. https://www.health.harvard.edu/vitamins-and-supplements/health-benefits-of-taking-probiotics

4. https://www.longdom.org/open-access/probiotics-history-and-evolution-2329-8731.1000107.pdf

5. https://www.yakult.co.in/about_us.php

6. Use Behavioral Economics to Achieve Wellness Goals by David A. Asch, MD and Kevin G. Volpp, MD

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Aswathi Cherkkil
Aswathi Cherkkil

Written by Aswathi Cherkkil

MBA student at Greatlakes institute of management.

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