YAKULT: A Probiotic Drink
The onset of lifestyle-related diseases because of dietary habits, poor exercise, alcohol intake, stress and the like, is an issue Yakult is trying to prevent. The research and development team of Yakult put its efforts in the prevention of lifestyle-related diseases by promoting foods with beneficial materials and based on scientific evidence.
Yakult is a probiotic drink which improves digestion and helps build immunity. Yakult is derived from the word "Jahurto", meaning "yoghurt" in Esperanto, a constructed international auxiliary language. Yakult contains 6.5 billion beneficial bacteria which is Lactobacillus casei strain Shirota. The bacteria in Yakult are resistant to gastric juices and bile. These bacteria reach our intestines alive to balance the amount of good bacteria in the gut. Yakult is advised for daily consumption to improve intestinal health and immunity. Lactobacillus casei strain Shirota in Yakult was discovered by Dr. Minoru Shirota in 1930. More than 80 years of research backed Yakult to ensure safety and efficacy of this product. Scientific benefits of Yakult proved to: * Improve bowel movement and aid digestion * Maintain balance of good and bad bacteria * Reduce toxins in our body * Help build the immune system (reduce risk of infections)
The term Probiotics is derived from probiosis— a symbiotic relationship between two organisms. It is a live microbial culture that beneficially affects the host animal (humans). It also involves using good bacteria to improve health. Serving as great examples are the L. casei strain Shirota and B. breve strain found in Yakult servings. This made Yakult, a pioneer and a world leader in the field of Probiotics.

History: “Little Bottle, Big Story”
The history of Yakult dates back to April of 1921 through thorough studies and research of Dr. Minoru Shirota.
Dr. Minoru Shirota was born in April 1899 in Western Nagano, Japan. From where he grew up, the land cannot be planted with crops such as rice. It was a poor country back then; most children do not get enough nutrition from food, making them weak. Although, Shirota was born in a wealthy family.
In April of 1921, Shirota entered Kyoto University of Medicine. He began his medical studies, focusing on microbiology. At that time, Japan was in a state of war (The Taishō period or Taishō era, is a period in the history of Japan dating from July 30, 1912, to December 25, 1926, coinciding with the reign of the Emperor Taishō. The new emperor was a sickly man, which prompted the shift in political power from the old oligarchic group of elder statesmen (or genrō) to the Diet of Japan and the democratic parties). The country was experiencing poverty; unsanitary conditions caused the spread of deadly infectious diseases, such as dysentery and typhus, to large numbers of children. This had driven him into studying the field of preventive medicine down the path of microorganism research to help avoid the spread of sickness to people.
Continuing his research on disease-causing bacteria that enters the body, Shirota found out about the benefits of the presence of good bacteria, which is lactobacilli, in the human stomach which is capable of staying alive in human intestines yet protecting it from harmful bacteria. He thought of finding Lactobacilli bacteria from nature then propagate it into a drink.
Yakult was originally packaged in glass bottles until 1968 where the plastic container we are familiar with today was introduced.
Yakult was originally packaged in glass bottles until 1968 where the plastic container we are familiar with today was introduced.
Working together with volunteers in 1935, Dr. Shirota then developed a drink containing Lactibacillus casei strain that reaches the intestines and promotes intestinal health. He became the first to successfully fortify and culture a strain of lactobacilli called Lactobacillus casei Shirota, which is named after him. Yakult was born and was sold to the market at an inexpensive price so many people may benefit from its nutrients despite the poor condition of the country at that time. In 1938, Yakult is registered as a trademark.
In 1939, Shirota married his wife, Yoshie. He also began teaching in University of Kyoto after earning his PhD in 1940. He was then assigned as a medical doctor during the outbreak of war (the Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan from 1937 to 1941. This further intensified due to World War II.) Then he became a professor at the University Medical Harupin, China. Because of these incidents, Dr. Shirota was forced to stop production of Yakult.
After his wife died in 1941, Shirota decided to work on Yakult business again. In 1950, production and marketing of Yakult restarted. In 1955, Yakult Honsha Co., Ltd. (Formerly Shirota Research Institute) was established in Tokyo.
Dr. Shirota dedicated himself to helping protect the health of people until his death in 1989. His passion and ideas live on today.
Some of the important milestones of Yakult Honsha Co., Ltd. are listed below: * 1930- Dr Minoru Shirota succeeds in culturing and utilizing intestinal lactobacilli. * 1935- Yakult Fermented Milk Drink containing the Lactobacillus casei Shirota strain, is developed and sold in Japan by word of mouth. * 1963- Yakult launches its unique Yakult Lady home delivery system. The first Yakult ladies were the nurses working with Shirota. * 1968- Yakult is introduced to the market in a new plastic container. * 1969- The sterilization batch method is replaced by the more efficient UHTST system still used today. Standing for "Ultra High Temperature (for a) Short Time", UHTST is a commonly used method of sterilization in the dairy industry. * 1970- A Phage resistant Yakult strain is developed (Phage is a common cause of product contamination in the dairy industry). * 2006- New corporate slogan is decided: In order for people to be healthy, everything around them must also be healthy. * 2010- Average global sales of dairy products surpass 30 million bottles per day. * 2011- The three-dimensional trademark for Yakult containers is recognized. * 2013- Lactobacillus casei strain Shirota obtains GRAS Certification from the US FDA (Food and Drug Administration). * 2014- Yakult Honsha publishes its first Company history.

Yakult Philippines Incorporated
For over 35 years now, Yakult Philippines Inc. has been actively promoting good health to millions of Filipinos based on its founder, Dr.Minoru Shirota’s guiding principle “prevention above cure”.

Yakult was introduced in the Philippines in 1978 and is still embraced by Filipinos for more than 30 years. The Yakult Plant is located at Barrio Makiling in Calamba, Laguna which is considered one of Asia’s best production facilities when it comes to technology, sanitation and quality control. Yakult Philippines Inc. still upholds production of Yakult product in a totally sanitized environment under strict quality control standards. It commits itself to providing good health through the use of beneficial microorganism.

Idea Generation
The idea of producing Yakult Probiotic drink was created by a Japanese scientist, Dr. Minoru Shirota. Producing a beverage containing live bacteria which protects the intestine against harmful ones was thought of by Dr. Shirota in the midst of the poor economic condition of Japan due to war outbreaks in the country around the year 1921. Back in the town where he grew up, which is in Western Nagano, Japan, the land cannot be planted with crops, making most of the children malnourished and weak against diseases.
L. casei is a probiotic (microorganisms that are believed to provide health benefits when consumed).
L. casei is a probiotic (microorganisms that are believed to provide health benefits when consumed).
Dr. Shirota was studying medicine in Kyoto University when he decided to focus on microorganism research to create a preventive medicine against infectious diseases caused by bacteria. Inspired by Professor Ilya Metchnikoff’s theory on the health advantages in replacing harmful proteolytic bacteria in the colon with beneficial saccharolytic species, preferably those producing lactic acid, he studied the benefits of lactobacilli in the body by actively fighting bad bacteria in the intestine. He thought of propagating lactobacilli and strengthening it into a drink. He later gained success in his discovery of a strain of lactobacilli called Lactobacillus casei Shirota, which can be cultured and fortified into a drink. The idea of producing Yakult was then formed- the world’s first beverage with fortified Lactubacillus casei.

IDEA SCREENING
Back in 1921, Japan was undergoing several outbreaks of war. The country was in a poor condition, with children being weak and susceptible to infectious diseases spreading around the area fast. Dr. Shirota’s idea of developing a preventive means against these diseases was really timely to the situation. After the idea has been developed, it is evaluated to determine its likelihood of success.
Idea screening criteria are used to determine compatibility with overall business objectives and whether the idea would offer a viable returns. Whatever does not meet these criteria is typically discarded. As for the case of Yakult, we will discuss its evaluation in terms of operations, marketing and financial areas.
Dr. Shirota’s aim was to produce this product which keeps a healthy intestinal tract while being sold at a price anyone can afford. He considered the environment in Japan back then and thought that for one to be healthy, everyone in his surroundings must also be healthy.
With regards to operations and finance, the production of Yakult was likely to succeed because of the facilities provided by the university and through the sought aid from his colleagues. Kyoto University of Medicine, one of the most renowned universities in Japan, provided excellent facilities for further research of Dr. Shirota’s idea.
Tissue lab at the Kyoto College of Medicine (currently Faculty of Medicine), 1914
Tissue lab at the Kyoto College of Medicine (currently Faculty of Medicine), 1914
The product targeted basically everyone since its purpose was for prevention of sickness that is of great value during the period. This established the likelihood of market acceptance.
Below is an excerpt from an interview with Dr. Satoshi Kudo, Yakult Europe’s Chief of Science by Stephen Daniells from (http://www.nutraingredients.com/Research/Inside-Yakult-s-probiotic-science-culture:)
“The biggest threat to humans today is infectious disease – look at the concerns with swine flu. Think about Spanish flu, or the plague. How many people died? Naturally he thought that if we keep our gut clean, dominated by the friendly bacteria, then infectious disease should be decreased drastically. Dr Shirota tried to find relevant strains that could pass through the intestine. That was his idea. And he screened many strains. Maybe this strain is very wonderful and powerful.”
“In the old days, it was easy for Dr Shirota to select this as his strain, as his number one. It’s not easy to find a better strain than what we have. I am sure that a knack of our success was his philosophy: He wanted to save people at an affordable price, and he understood that the gut is the source of health.”
“The biggest threat to humans today is infectious disease – look at the concerns with swine flu. Think about Spanish flu, or the plague. How many people died? Naturally he thought that if we keep our gut clean, dominated by the friendly bacteria, then infectious disease should be decreased drastically. Dr Shirota tried to find relevant strains that could pass through the intestine. That was his idea. And he screened many strains. Maybe this strain is very wonderful and powerful.”
“In the old days, it was easy for Dr Shirota to select this as his strain, as his number one. It’s not easy to find a better strain than what we have. I am sure that a knack of our success was his philosophy: He wanted to save people at an affordable price, and he understood that the gut is the source of health.”

CONCEPT DEVELOPMENT
Lactobacillus casei Shirota was originally isolated and selected from the feces of an infant. In milk, it grows well between 30°C-37°C but with a slower growth rate than other lactobacilli used for starter cultures. It produces lactic acid and small amounts of acetic acid, butyric acid and formic acids. Comparing Lactobacillus casei Shirota to other strains of Lactobacilli and Streptococci in its tolerance to gastric fluids and bile, Lactobacillus casei Shirota showed the highest survival among the strains studied. It can withstand acidity as low as pH 2.7 for at least three hours.
Lactobacilli casei Shirota was the best choice for the production of Yakult because of its results from the said studies above. Yakult proved to contribute balance in intestinal microflora by stimulating the growth of beneficial lactobacilli and bifidobacteria.
The ideas of Dr. Shirota are referred to as Shirotaism serve as the root of all of Yakult’s business activities.

Yakult was initially distributed through Shirota's clinic and small franchises until Yakult Honsha Co Ltd was established in Tokyo in 1955.

MARKETING STRATEGY
A product like a probiotic drink may not be easily adopted by the consumer since she may have lot of doubts about the product. It is in this context that the brand adopted its strategy of direct marketing. Yakult has a strategy of direct marketing where the consumers can order the product through home delivery for free.
Yakult’s advertising targeted the common household buyer. The brand initially operated in a niche category and its strategy was to expand the niche category into a mainstream one. It has adopted the right marketing strategy to educate the consumers and also encourage them to make regular use of this product.

FEASIBILITY ANALYSIS
The SWOT analysis for the early life of Yakult.

PRODUCT DESIGN
Yakult used to use glass bottles in order to recycle and reuse them. Then Yakult changed to use plastic bottle in 1968. It has continuously used the present Yakult Bottle since then.
Yakult has a special package which is smaller size compared to other products and easily to recognize because of their small-sized bottle. A smaller size bottle is more hygienic because to prevent high risk of infection by other bacteria. Larger bottle tends to get infection easily with other bacteria if it is kept open and not immediately consumed. The small size of Yakult is also for convenience, for everyone to enjoy Yakult anytime as part of a balanced diet. This is also in line with Shirota’s advocacy of providing good health at an affordable cost as smaller serving tend to keep price low.
The bottles are wrapped with individual bottle labels. Yakult's labeling records the ingredient and the function of the product. This is to send a clearly information to customers. Yakult’s theme color is red and white.

TEST MARKETING
No information available. But it is possible that the first test subjects were Shirota’s patients.
In the Philippines, Sales and Planning Manager Michael Ong remarked, “Filipinos are not keen on something that tastes sour. But with the intensive marketing through the help of Yakult ladies, the management able to convince Yakult should be taken not because of its taste but because of its nutritional benefits.”

MARKET ENTRY
To realize people’s desire to be healthy, it was only natural that Yakult expand overseas. In 1964, Yakult Co., Ltd. (Taiwan) began operations, as the first step in the expansion of our network to Asia, Oceania, the Americas, and Europe. Yakult was first sold in Brazil in 1966, due to the large number of Japanese immigrants in the country, before it was marketed elsewhere. Yakult started their business in 1969 in Hong Kong.
In the Americas (including Mexico, one of Yakult's largest selling markets), Japan, Philippines and South Korea, 80 ml bottles are available. It also entered the markets of Thailand, Singapore, Taiwan and mainland China, and the United States. Australia was chosen as the first English speaking country to launch Yakult due to its close proximity to Asia and an increasing desire amongst Australians for a healthier lifestyle.
Based on the belief that all people desire good health, Yakult pushed ahead with efforts aimed at deepening understanding of lactobacilli, and due to these efforts, Yakult products are today sold through 28 overseas operations and consumed in 33 countries and regions. As of 2014, more than 30 million people worldwide are enjoying Yakult every day.

PRODUCT LIFE CYCLE
Like people, products have a life cycle. Products are born, they grow, and then after some time they disappear. Just as there are different practices we can adopt to live a longer and healthier life, there are different strategies that can be employed to products in each phase of its life cycle for it to be considered successful. It is very important for operation managers to know the best strategy to apply for the continuous success of the product. Managers’ decisions are crucial to determine a product’s success – as to whether the losses incurred by the company during the early life stage of the product would be recovered and exceeded, or not.
Product life cycle is the series of stages that products pass through in their lifetime. Generally speaking, the four life cycle stages of a product are the introductory, growth, maturity and decline phase. The stages are sequential usually follows the cycle in order.

PRODUCT DESIGN
The most important ingredient of Yakult is the live Lactobacillus casei Shirota. Standard Yakult Probiotic drink ingredients are: * Live Lactobacillus casei Shirota strain, 8.5 billion per 85 mL bottle * Sugar (sucrose, dextrose) * Skimmed milk powder * Water
Yakult does not contain any preservatives, colourings, stabilizers, or conditioners. The brownish color of Yakult develops naturally during the production process when caramelization occurs as a result of heating of milk and sugar. It is practically fat free and contains no cholesterol. Sugar is included since it provides essential 'food' for the good bacteria, keeping them alive during shelf life.
During fermentation, good bacteria produce organic acids, such as lactic acid, which taste sour. Because of the high concentration of good bacteria in Yakult, the taste becomes very sour. Yakult has a low Glycemic Index (GI). This means that the sugar in Yakult enters the blood gradually and does not significantly increase blood glucose levels.
As of 1968, the shape of Yakult Bottle was unique. The unique bottle as we know it today, was designed by Japanese designer Isamu Kenmochi commissioned by Yakult Honsha. The hour­ glass, easy­-to­-grip design of the bottle was apparently inspired by the shape of the traditional Japanese wooden Kokeishi doll.
Yakult then cited easier automated filling in the factories and lower transport costs as some of the advantages of this lightweight bottle.
Yakult Philippines produce 80mL Yakult drink only. As of 2015, 2 variants of Yakult probiotic drink are manufactured and sold locally: Yakult Original and Yakult Light (made with less sugar, less calories).
PROCESS SELECTION
Yakult Philippines Inc. follows a line process with a continuous flow. No rework can be done. If there is any fault or malfunctioning of the mixture in between the process, the whole batch has to be discarded. They cannot go back and re-work or rectify the produced units.
A 'just-in-time' system of production is followed, which means Yakult is manufactured on demand to ensure the product is always delivered with a full shelf-life.
The following is the sequence of steps in the production of Yakult Probiotic Drink:
1. Dissolving Tank
The skim milk powder is dissolved in hot water of 50-55° C in the dissolving tank to make a milky solution.
2. Culture Tank
From the dissolving tank, the milky solution is transferred to the 6,500-litre culture tank and sterilised. The sweet, milky solution is sterilised at a high temperature for a short time, destroying any bacteria that may be present. This process is called UHTST (Ultra Heat Treatment, Short Time). It will then be cooled to 37° C.
The culture starter, L. casei strain Shirota from the seed tank will be added into the tank to ferment the solution until the number of L. casei strain Shirota reaches at an ideal concentration and the solution will change into curd form known as stum. The solution is allowed to ferment for about one week.
3. Storage Tank
The stum will pass through a homogeniser (a high pressure machine) to make it into fine texture before it is transferred to the storage tank. In the storage tank, the sterilised sugar syrup is added to the stum to form the concentrated Yakult and the tank will be chilled at the temperature of 2 to 5° C.
4. Mixing Tank
The concentrated Yakult will be transferred to the mixing tank and diluted with sterilised water. The diluted mixture will then be transferred to the filling tank.
5. Bottle Moulding Machine
The plastic bottles are produced by the moulding machine at the speed of 7000 bottles per hour. These bottles that are made of polystyrene are then transported by a clean air blower through a duct to the storage tank.
6. Selector Machine
From the storage tank, the empty bottles will be transferred to the selector machine which will arrange them in an upright position before they are sent to the printing machine.
7. Printing Machine
The printing machine will print Yakult logo, the ingredients, etc. used on the empty bottles using instant dry red ink.
8. Filling, Capping & Sealing Machine
From the printing machine, the printed bottles will be sent to the filling machine which has the capacity to fill 30,000 bottles with Yakult per hour. At this stage, the bottles are capped and sealed with an aluminium foil that has the date print, “Use-by-date”.
9. Packaging Machine
The finished Yakult will be sorted in single bottles or in a pack of 5 bottles that is shrink-wrapped in polypropylene. The single bottles are packed into a crate of 100 bottles. These 5-bottle pack Yakult will be loaded into a crate. All crates containing the Yakult will be transported to the cold room by the conveyor belt.
10. Cold room
In the cold room, the finished products are kept refrigerated at a temperature of 5° C so that they will always remain at the best condition before distribution.
11. Distribution
Yakult stored in the cold room will now be ready for delivery by refrigerated trucks for distribution to the following sources.
Direct Sales – which consists of the distribution channels: supermarkets, retail and convenience stores, vending machines, schools, etc.
Home Delivery – which is a door-to-door delivery mostly in the public housing estates and supported by the Yakult lady agents.

SUPPLY CHAIN MANAGEMENT
Yakult imports some of its ingredients and container components. The skimmed milk is imported from New Zealand. The sugar used however is found locally (such is the reason why Yakult from different countries tastes differently). The bacteria (mother strain) is initially imported from Japan, frozen and transported in the Philippines, gently reanimated, then cultured to produce more bacteria.
The plastic bottle is vertically-integrated. The plant in Calamba produces the plastic bottles from plastic resin (polystyrene) imported from United States, so is the plastic wrappers (polypropylene and polyethylene film). The foil lid on the other hand is imported from Japan and Korea.
Yakult Philippines Inc. owns its own refrigerated trucks for the delivery of the finished products. It is then distributed to its pilot Yakult Centers and then to its Yakult ladies who will later deliver them to households.

QUALITY MANAGEMENT
Yakult employed integrated production systems that start with the addition of ingredients and include every phase from culturing to blending, container manufacturing, filling, and shipping.
HACCP or Hazard Analysis and Critical Control Point Systems has been introduced in the production processes of all Yakult Honsha and subsidiary plants to ensure exacting quality management and meticulous hygiene management. The integration of product inspection facilities directly into Yakult’s production lines makes it possible to instantly check every product they make. Yakult also created its own quality management standards which are stricter than those employed by outside auditors and conduct internal audits to ensure they are followed.
Yakult’s Domestic and Overseas Certifications:
ISO 9001: International Product Quality Management Systems Certification
ISO 14001: International Certification for Systems aimed at continuous improvement in environmental performance
HACCP: International Standard for Food and Pharmaceutical Safety Management

FORECASTING
Yakult Philippines maintained its lead in yoghurt and sour milk products holding a 73% value share as of 2014. The company’s strength comes from its lead over other probiotic drink/yoghurt brands. Being an early entrant, the company was able to establish its brand in the country through years of advertisements. Also instrumental to the rise in popularity of Yakult among consumers is its use of direct selling, especially during the early stages of its introduction in the country, which paved the way for it to penetrate even low income households.
Yoghurt and sour milk products is expected to post a growth of 3% in value sales at constant prices over the forecast period, marginally outpacing its performance over the review period. The improved performance expected for yoghurt and sour milk products is expected to be driven by the growing number of brand choices in the market. Aside from more affordable options, the variations in the ingredient used as fortification will also assist in the category’s growth. Yoghurt and sour milk products will also benefit from the growing health consciousness among consumers and is expected to be a preferred alternative for disease prevention or for treating mild health conditions.
From this forecast, we can predict the possible level of sales for next year:
Level of sales forecast
Level of sales forecast

LOCATION ANALYSIS
The Yakult Plant is located at Maharlika Highway, Barrio Makiling, Calamba, Laguna. Maharlika Highway (also Pan-Philippine Highway) is home to numerous factories, warehouses, and other industrial sites that can be found in Calamba City, Laguna, and Sto. Tomas, Batangas.
Maharlika Highway, a network of roads, bridges, and ferry services, is considered the country’s principal transport backbone connecting the islands of Luzon, Samar, Leyte, and Mindanao. Know that Yakult has a 45-day shelf life from the date of manufacture and requires a cold storage, meaning the production requires an efficient transportation and distribution program to avoid delays. No wonder Maharlika Highway was the best choice for setting up the Yakult facility.

CAPACITY PLANNING
The Yakult Philippines production plant is located in Barrio Makiling, Calamba, Laguna. It has been established since 1978 and is still on operation for more than 35 years now. The production plant's capacity is measured through its output. Some issues in its capacity involves the determination of the demand in the market, as well as its structure.
The production plant started with 11,500 bottles produced in a day during the 70s. Since 1978, the plant already undergone 3 expansions which increased the number of bottles produced into 1.6 million bottles in a day since daily sales almost reached the maximum capacity.
Yakult Philippines recently made another expansion and is currently producing an approximate 2.4 million bottles per day.

FACILITY LAYOUT
The type of layout that Yakult uses in its production is a product layout. A product layout is most applicable to a straight-line fashioned production.
Since Yakult is produced in high-volumes and is standardized, it makes use of the product layout in its production facility. The process is mostly automated, with the use of more machineries and technology than labor or manpower. This makes the production as capital-intensive.
Yakult Philippines Inc. facility layout and processes
Yakult Philippines Inc. facility layout and processes

JOB DESIGN AND WORK SCHEDULING
At present, the number of employees in Yakult Philippines Inc. ranges from 501 to 1000. The regular working hours if Monday to Saturday. The average processing time is 5 days. It is the average time it takes to make initial evaluations and process qualifications.
Sales and Planning Management is headed by Michael Ong.

INVENTORY MANAGEMENT
Yakult Philippines Inc. uses a Just-in-time system. A demand planning module was developed by Yakult which incorporates an inventory control model developed for adjusting safety stocks and daily targets.
LOAD BUILDER: detailed list of loads to be shipped
LOAD SCHEDULER: builds a feasible and efficient daily delivery schedule