Launching a Probiotic in the Market - Case Study Example

Launching a Probiotic in the Market Launching a Probiotic in the Market Introduction 1.1 Probiotics: Definition and Health Effects The term ‘probiotics’ is a derivative of the Greek word for ‘life’ (Thantsha, n.d.); Probiotics defined as “functional food” (Stanton, 2001) are the live microorganisms in the food we eat that help us stay healthy. The word probiotics was introduced by Lilly and Stillwell in 1965 (Probiotics and Prebiotics, 2008). Mostly, these Probiotics are lactic acid producing bacteria and are found in food items like yogurt and other fermented foods (Kiani, 2006). As quoted in Thantsha (n.d.), Fuller (1989) said that probiotics were a “live microbial feed supplement, which beneficially affect the host by improving its intestinal microbial balance”. Gut bacteria have more than 500 different kinds (Vohra, 2009). Some common health effects of Probiotics include treatment of diarrhea, constipation and colitis. Among numerous other benefits, Probiotics also treat lactose intolerance, improve the immunity and overall health of the gastrointestinal tract, and reduce chances of infection and cancer, treat food allergies and reduce blood pressure in people who suffer from hyper sensitivity (Kiani, 2006). 2. Scientific Case for the use of Probiotics 2.1 Benefits of Probiotics for the Human Body 2.1.1 Cancer Cancer can be caused when body cells come into contact with cancer causing chemicals which can be ingested with food and travel down to the gastrointestinal tract. Probiotics reduce the chances of cancer by detoxifying the gastrointestinal tract and producing compounds that inhibit the growth of cancerous tumors (Kiani, 2006). 2.1.2 Diarrhea Probiotics reduce the chances of a person getting diarrhea by improving the immune system and can also reduce the length of sickness of a person who is ill with diarrhea already (Kiani, 2006). 2.1.3 HIV and Other Immune System Related Diseases Probiotics boost the human body’s immune system and thus reduce the likelihood of a person contracting HIV or other diseases caused by a weak immune system (Kiani, 2006). 2.1.4 Allergy According to research, immunity to allergies is increased when there is a greater number of microbes in the environment, exposure to these microbes which are also found in probiotics, help the immune system develop into a stronger entity, more resistant to allergies (Kiani, 2006). Hereditary allergies like eczema and asthma, etc can also be treated by the usage of probiotics (Thantsha, n.d.). 2.1.5 Lactose Intolerance Lactose intolerance occurs when the digestive system is unable to digest lactose containing products, mostly dairy products. Probiotics can help lactose intolerant people by aiding digestion of lactic acid (Kiani, 2006). 2.1.6 Vaginosis Vaginosis occurs when the natural bacterial balance of the vagina is upset due to internal or external reasons. It has been found that probiotics containing lactic acid aid in curing conditions of Vaginosis (Kiani, 2006). In addition to curing vaginal diseases, probiotics can also cure to a large extent urinary tract infections (Reid, 2000). (Parvez, 2006). 3. Best Cultures to use to make Probiotics 3.1 Desirable Properties of a Suitable Probiotic Culture Firstly, the probiotic must have originated in the gastrointestinal tract of a healthy human being, it should also be genetically stable; this ensures the safety of the consumption of a probiotic by other humans. Secondly, the probiotic should be acid tolerant so it will not be destroyed by stomach acid and bile, etc. This ensures that they survive in adequate numbers till they reach the gastrointestinal tract. Furthermore, probiotic cultures should also be able to trigger a positive immune response in a host’s body in order to benefit the host’s health; these factors relate to the overall performance of the probiotic culture. Lastly, the technological aspect of the probiotic culture must also be taken into consideration; the cultures should be viable and active when combined with food products and must not give off a bad smell or reduce product quality (Thantsha, n.d.). 3.2 Cultures used to make Probiotics (Sanders, 1999). 4. Organisms used to make the Probiotic 4.1 Bifidobacterium Bifidobacterium, which is a probiotic found commonly in the large intestine; the number of these bacteria found in the human gastrointestinal tract stay at a stable level but beyond a certain age, begin to decline (Kiani, 2006). 4.2 Lactobacillus, Lactococcus and Streptococcus thermophilus These are a family of bacteria that live in the human intestine and vagina; they are found in dairy products like milk and are used to produce yogurt and other fermented dairy products (Kiani, 2006). 4.3 Enterococcus This is a type of probiotic microorganism also found in the human intestine and is normally used to cure diarrhea (Kiani, 2006). 4.4 Saccharomyces This a type of yeast bacteria, normally used to cure diarrhea and related diseases (Kiani, 2006). Probiotics can be found in the following forms; powder, liquid, gel, paste, granules or capsules, etc. (Raja, 2011). 5. Advantages of using the said Organisms The primary purpose of probiotic organisms is that they repopulate the host’s body and shift the balance of the bacteria living in the body from away from those that are detrimental to health and over all well being and in favor of those that provide health benefits. Specifically, benefits are achieved through changing the balance of gastrointestinal microflora, strengthening the gut and improving the host body’s immune system. Probiotics have aforementioned effects on the body due to their beneficial acidic properties that stop or reduce the growth of pathogens in the body. Probiotics are also enzyme producing which helps the body break up fats, proteins and lactose etc. (Thantsha, n.d.). 6. Target Market According to Krishnakumar (n.d.), the widest used form of Probiotics is in the form of tablets (60%) of which 20% were chewable tablets. Although research on probiotics has improved and increased the amount of information available to consumers about probiotics, in the USA usage of probiotics actually saw a downward trend between the years 2000 and 2005 (Krishnakumar, n.d.). In developed countries, the market for probiotics is very dynamic and dominated mostly by yogurt and milk. France has the largest probiotic yogurt market, Germany has a rapidly growing probiotic yogurt market and other developed countries like Denmark and the UK feature probiotic yogurts as a sizeable component of their respective probiotic product industries. According to research, the market for probiotics is expected to expand up to $32.6 billion by the year 2014, with the global market showing a growth of 12.6% in the time period from 2009 to 2014 (Raja, 2011). This shows that that the probiotics industry is a lucrative industry for investment, currently. The industry growth is driven largely by increase in consumer demand, especially for probiotic dairy products. The biggest markets for this product category are expected to be Europe, followed closely by Asia. Although market size for this product category is comparatively smaller in the USA, there is expected significant growth in the coming years (Raja, 2011). 7. Ways to achieve market acceptance for Probiotics To increase the customer acceptance of probiotic products, companies that have invested in this industry have taken numerous measures. Firstly, the fact that the probiotic product contains “live cultures” should be advertised because this implies superior health benefits for the consumer. Secondly, the probiotic product can be fortified additionally with vitamins and minerals to make a well rounded food product. Furthermore, the health benefits of the probiotic product should be clearly advertised; on the packaging as well as TVCs and outdoor and print ads (Raja, 2011). According to Raja (2011), there are a number of determinants upon which depends the fact whether probiotic launched into the market will be successful or not. Consumer demands and attitudes have changed a lot since the growing trend of health consciousness and healthy eating and this has been a huge determinant in the increase in market size and growth of the probiotic products industry. However, this is not all. For a product to be successful it must generate customer loyalty and repeat purchases; this depends on advertising, pricing, quality, positioning etc. Convenience and availability are also huge factors that determine whether the target market will adopt the product successfully or not; another factor that matters here is distribution. The more diverse the distribution and the more commonly available the product, the higher the chances that it will be better adopted. The probiotic product may also be improved by adding to it further organisms that will improve the health benefits the product affords the host’s body, for example adding maltodextrins and polyunsaturated fatty acids etc. (Bomba, 2002). References Bomba, A. et al. (2002) Improvement of the probiotic effect of micro-organisms by their combination with maltodextrins, fructo-oligosaccharides and polyunsaturated fatty acids. The British Journal of Nutrition, 88 (1), Available at: http://www.inproco-bio.com/pdf/improvement_of_probiotic_effect.pdf [Accessed: 8th Apr 2013]. Doron, S. (n.d.) Probiotics for Gastrointestinal Diseases. Available at: http://www.touchbriefings.com/pdf/2933/Doron.pdf [Accessed: 8th Apr 2013]. Kiani, L. (2006) Bugs in Our Guts – Not All Bacteria Are Bad: How Probiotics Keep Us Healthy. CSA Discovery Guides , Available at: http://www.csa.com/discoveryguides/probiotic/review.pdf [Accessed: 8th Apr 2013]. Krishnakumar, V. (n.d.) Probiotic Cultures: Opportunities and Threats. GIRACT, Available at: http://www.giract.com/presspapers/giractprobioticsarticle.pdf [Accessed: 8th Apr 2013]. Parvez, S. et al. (2006) Probiotics and their fermented food products are beneficial for health. Journal of Applied Microbiology, Available at: http://probioticsincanada.com/en/pdfs/Probiotics%20and%20their%20fermented%20food%20products%20are%20beneficial.pdf [Accessed: 8th Apr 2013]. Raja, B. et al. (2011) Market Potential for Probiotic Nutritional Supplements in India. African Journal of Business Management, 5 (14), p.5418-5423. Available at: http://www.academicjournals.org/ajbm/pdf/pdf2011/18%20july/raja%20and%20arunachalam.pdf [Accessed: 8th Apr 2013]. Reid, G. et al. (2000) Oral probiotics can resolve urogenital infections. Immunology and Medical Microbiology, 30 p.49-52. Available at: http://bacterial-vaginosis-treatment.com/wp-content/uploads/oralprobioticscanresolveurogenitalinfections.pdf [Accessed: 8th Apr 2013]. Sanders, M. (1999) Probiotics. Food Technology, 53 (11), Available at: http://www.ift.org/Knowledge-Center/Read-IFT-Publications/Science-Reports/Scientific-Status-Summaries/~/media/Knowledge%20Center/Science%20Reports/Scientific%20Status%20Summaries/probiotics_1199.pdf [Accessed: 8th Apr 2013]. Stanton, C. et al. (2001) Market Potential for Probiotics. The American Journal of Clinical Nutrition, 78 (2), p.476-483. Available at: http://ajcn.nutrition.org/content/73/2/476s.full [Accessed: 8th Apr 2013]. Thantsha, M. et al. (n.d.) Probiotics-What Are They, Their Benefits and Challenges. Available at: http://cdn.intechopen.com/pdfs/35442/InTech-Probiotics_what_they_are_their_benefits_and_challenges.pdf [Accessed: 8th Apr 2013]. Unknown. (2008) Probiotics and Prebiotics. World Gastroenterology Organization Practice Guideline, Available at: http://www.worldgastroenterology.org/assets/downloads/en/pdf/guidelines/19_probiotics_prebiotics.pdf [Accessed: 8th Apr 2013]. Unknown. (2011) Safety of Probiotics to Reduce Risk and Prevent or Treat Disease . Agency for Healthcare Research and Quality, Available at: http://www.ahrq.gov/research/findings/evidence-based-reports/probiotic-evidence-report.pdf [Accessed: 8th Apr 2013]. Vohra, P. et al. (2009) ABC of Probiotics. Available at: http://www.maxhealthcare.in/services_facilities/our_departments/mer/pdfs/medical_journals/may2009/may2009.pdf#page=33 [Accessed: 8th Apr 2013]. Williams, L. (2006) Clinical Efficacy of Probiotics: Review of the Evidence With Focus on Children.Journal of Pediatric Gastroenterology and Nutrition, 43 Available at: http://www.naspghan.org/user-assets/documents/pdf/positionpapers/probiotics.pdf [Accessed: 8th Apr 2013]. Read More