Yakult Case Study

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Founded in 2005, Yakult Danone India Pvt Ltd operates as a 50:50 joint venture between probiotics pioneer, Yakult Honsha Co., Ltd., Japan and dairy leader, Danone of France. The joint venture is established exclusively to manufacture and sell its flagship brand – a probiotic drink called Yakult in India (Euromonitor International, 2014). In order to ensure the quality of the probiotic drink, Yakult is completely automated and all machinery is imported from Japan (Food Industry India, 2008). Yakult is formulated by Dr. Minoru Shirota, and is said to contain approximately 6.5 billion cells of live bacteria, Lactobacillus casei strain Shirota per bottle. The concept of consuming live cultures for a healthy digestive and immune system had not prevail until Yakult was launched in Japan (Yakult Honsha Co., Ltd., 2014). Yakult Danone supplies its probiotic drinks via two sales channels: retail, and global home delivery systems comparable to Yakult Honsha of Japan. The probiotic drink is currently available across 6,000 retail stores, bakeries, supermarkets and chemists in Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Jaipur, Mumbai, NCR, Nasik, Pune and Punjab. In addition, its distinctive home delivery system (also known as Yakult Lady System) involves having over 250 Yakult ladies delivering the product to customers’ doorsteps and educating customers on how Yakult contributes to good health (Euromonitor International, 2014; Yakult Honsha Co., Ltd., 2014). To date, Yakult

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