Many basics of our food have now deteriorated in quality: Poor storage, long transport, irradiation, processing Fast food, unhealthy foods The environment Commercial pressure to buy sugared products Mass retail products with no science full of additives, flavorings etc.
HERBALIFE
INTRODUCTION:
Herbalife International is an American multi- level marketing company that develops markets and sells nutrition, weight management and skin- care products globally. The company was founded in 1980, and it employs around 7,400 people worldwide.
Herbalife reported net sales of US$4.072 billion in 2012, an 18% increase over 2011, and net income of $477.19 million, a 16% increase over 2011. Incorporated in the Cayman Islands, its corporate headquarters is in Los Angeles, California, United States.
The company distributes its products in 91 countries (as of November 2013) through a network of approximately 3.2 million independent distributors, some of who earn profit on product sales and additional commission from a multi- level marketing (MLM) compensation structure.
HISTORY OF HERBALIFE
In 1980, Mark Hughes founded Herbalife, selling products out of the boot of his car.
His stated goal was to change the nutritional habits of the world.
His first product was a protein shake designed to help people manage their weight. He structured his company using a direct-selling, multi-level marketing model which attracted thousands of distributors (Herbalife Independent Distributors) who sold its products door-to-door or through word-of-mouth, without relying on commercial distribution in retail stores.
The company's slogan, "Lose Weight Now, Ask Me How," became a marketing theme for distributors, featuring heavily on badges, flyers and posters.
In 1985, the California Attorney General sued the company for making inflated claims about the efficacy of its products.
In 1986, Herbalife became a publicly traded company on the NASDAQ, and in 1996 Herbalife reached US$1 billion in annual sales.
Mark Hughes died at age 44 on May 20, 2000.
In April 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company, most recently as president of Walt Disney International.
In April 2005, the company celebrated its 25th anniversary with a four-day event attended by 35,000 Herbalife Independent Distributors from around the world.
Under the direction of Michael O. Johnson, the company had five years of double-digit sales growth and has doubled from net sales of $1.1 billion in 2003 to $2.7 billion in 2010 as well as building a global brand through its sponsorship of more than 100 teams, athletes and fitness events around the world, including the LA Galaxy and FC Barcelona! Top 7 Competitors for Herbalife Ltd:
Herbalife's products include protein shakes; protein snacks; nutrition, energy and fitness supplements; and personal care products.
Weight Management / Nutritional Food Products:
Energy And Fitness: An appropriate nutrition plan is essential for providing our bodies with the nutrients required to help them function properly. Energy-enhancing products Complete: 5 product customizable line Credible: Based on science Confidence developed for everyone; from those who are just starting out, to Herbalifes sponsored athletes and teams around the world. Personal Care: Targeted Nutrition: The Herbalife Targeted Nutrition range makes staying on top of your health easier by giving your body the specific targeted nutritional support it needs. Mission of Herbalife:
Their Mission is to change peoples life by providing the best business opportunity and the best nutrition and weight management products in the world.
Herbalifes mission is to change peoples lives by providing the best business opportunity in direct selling. Herbalifes mission is to change peoples lives by providing the best nutrition and weight management products in the world. Vision of Herbalife: Mark Hughes passed away in 2000, but his vision for changing peoples lives helping people manage their weight, regain their health and find financial prosperity continues to thrive.
Corporate Social Responsibility Of Herbalife: From how Herbalife do business to the commitment they make to their communities to how they treat their employees and independent Distributors, Herbalifes Corporate Social Responsibility program is best summed up by their value, We do the right, honest and ethical thing. Corporate Governance:
The methods and policies that relate to directing and administering our short- term and long-term goals as a company are in place to ensure accountability and economic efficiency for our stakeholders. With consistent focus in these areas, we met independence criteria almost one year early, and we meet all NYSE-listed public company requirements for transparency. To ensure continuing gains in this area, we created the independent post, director-in-charge of executive sessions, which will be held on a rotating, annual basis by an independent director, and will facilitate executive meetings of the boards independent directors. Business Ethics: Herbalife uphold the highest ethical standards in the operation of our company. Herbalife do the right, honest and ethical thing, always taking the high road. Herbalife strive for consistent enforcement of compliance regulations and are committed to providing a level playing field for all our independent Distributors. Those who do not comply are disciplined, suspended or terminated. Herbalife require annual ethics training for all employees, worldwide. Employee Wellness:
Herbalife walk the talk Herbalife Inner Nutrition and Outer Nutrition support a healthy, active lifestyle, and they strive to help their employees get healthy and fit. From complimentary products to lowering individual health insurance costs, Herbalife support and encourage their efforts. Herbalife has been recognized by Mens Fitness magazine as One of the 15 Fittest Companies in America'.
Live Green: Through environmentally conscious initiatives, Live Green and the 3Rs reduce, reuse and recycle Herbalife focuses on ways to protect our environment. Herbalife believe in taking personal responsibility and in making decisions based not only on financial factors but also on the social and environmental consequences of our activities. Herbalifes downtown Los Angeles office was created using recycled, rapidly renewable materials and has earned its Leadership in Energy and Environmental Design certification for its environmentally friendly design. Herbalife earned credits for efforts in Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources and Indoor Environmental Quality. Herbalife works on an ongoing basis to encourage its employees and independent Distributors to Live Green through a variety of programs and education. These include car and vanpools, using biodegradable and recycled materials, conservation, and reusing and eliminating hazardous materials such as plastic bags and Styrofoam cups. Strength The company has an extensive supply chain of Herbalife distributors. The company has over 2.7 million independent distributors worldwide, and these distributors are currently operating in 88 different countries. Finally, the Herbalife brand name holds a lot of significance to customers. Regardless of the negative publicity over the past year, the companys loyal customers have continued to purchase Herbalife products, and they will not be easily convinced to switch to new brands. Once customers are hooked on a certain brand of nutritional shakes, it is difficult to persuade them to try different brands. Weakness The main weakness that Herbalife faces is the overwhelmingly negative publicity that it has received from its stock scandals. Bill Ackman seems to be intent on ruining Herbalifes reputation. Also, the allegations that Herbalife is nothing more than a pyramid scheme have greatly demoralized their network of independent distributors. These distributors are an essential part of their supply chain, but there has been a reduction in the number of new distributors during the past year. Opportunity Nutritional shakes are now considered a commodity product, since many companies are competing on price for market share. The industry has entered a shake-out phase, which has left many companies crippled and in need of financial support. Herbalife has a well maintained cash balance, so Herbalife has the means to acquire these weaker companies.
Threats The threats that Herbalife faces are numerous. A struggling economy has drained consumers of discretionary income, and nutritional shakes are not often a priority purchase. In addition, Herbalife is still reeling from a recent product recall, after milk proteins were found in a line of shake mix labeled non-dairy. Although their brand reputation is the strongest in the industry, trust in Herbalife is waning. Overall, Herbalife faces a much harsher competitive environment than was the case several decades ago. Consumer Behavior of Herbalife:
Herbalife identify the need of the costumer, whether they are purchasing for their own benefit or for their family members. They exactly know what kind of product is needed for people to stay healthy in an easy way.
Herbalife is a multi-level marketing (sometimes called MLM or network marketing) company. In addition to profits from product sales, Herbalife distributors can earn additional commissions from sales by other distributors they recruited, called their downline distributors.
Take the Business Opportunity Purchase International Business Pack Register with the company How does this Business create opportunities for the Prospective Costumers to gain profit by becoming a Distributer after becoming a consumer?
As a Wellness Consultant Help 4 people improve their health with Herbalife
You can buy products at 25%- 42% profit Harshit Anjesh Rajji Amit You are an Individual Herbalife Distributor
A Success Builder order of 1000VP from the warehouse entitles you to 42% profit.
Minimum stock maximum discount I want to make a success builder order 1000 volume points =
In other words you are making more money
You make a retail profit by selling to customers
Some of your customers decide they want some of the action. Well concentrate on Amit. Or you may recruit and train more consultants.
Your profit is now 42% Harshit Anjesh Rajji Amit You are an Individual Herbalife Distributor
Y o u m a k e a w h o l e s a l e p r o f i t b y s e l l i n g t o A m i t A m i t b u y s p r o d u c t s f r o m y o u a t 2 5 % t o s e l l t o h i s c u s t o m e r s
Amit has decided to get involved in the business. She must buy the International Business Pack and register.
Remember you bought your product at 42% You are an independent Herbalife distributor Harshit Anjesh Rajji Amit
Achieve 4,000 Volume Points in one calendar month or 2,500Volume Points over 2 consecutive months to qualify as SUPERVISOR
Supervisors get a profit of 50% on products!!
You are an independent Herbalife distributor Harshit Anjesh Rajji Amit Volume points from your organization count Towards your Personal Volume
Amit has decided to become a SUPERVISOR -what does this mean to you - and your pocket?
Harshit Anjesh
You are a Supervisor
Rajji Amit new supervisor Amits Organization You earn up to 5% Sales Royalty on your First level Supervisor (Amit).
If someone from Amit's organisation qualifies as Supervisor you will earn a Royalty also. You are an independent Herbalife distributor
Harshit Anjesh You are a Supervisor
Rajji Amit new supervisor Amits Organization You earn up to 5% Sales Royalty on your First and Second level Supervisor. The same follows until your third level Supervisors. Distributor Senior Consultant (VIP Distributor) Success Builder Qualified Producer Supervisor 4000 VP in 1 month 50% Permanent Basic Level Of Marketing Plan:
Organizational Structure of Herbalife: CEO Michael Johnson Director Leroy Barnes Director Richard Bermingham Director Padro Cardoso Director Richard Carmona Director Jonathan Christodoro Director Keith Cozza Director Jeffrey Dunn Director Hunter Gary Director Jesse Lynn Director James Nelson Director Maria Otero CFO John DeSimone President Des Walsh COO Richard Goudis Legal David Heber Scientific Rocio Medina Corporate Affairs Diahanna Brown Advisor to Chairman and CEO John Tartol Sponsorships:
Herbalife sponsors a number of athletes, sports teams and sporting events around the world, including:
Sergey Konyushok (Broke 7 Guinness Records at Strongman competitions)
Christiano Ronaldo
Los Angeles Galaxy soccer team
Virat Kohli
News about Herbalife:
Herbalife, Common Threads Partner to Provide Nutrition Curriculum in Schools Across the Country - Sep 9, 2014 Herbalife Becomes First Official Nutrition Sponsor of the 2013 Billboard Latin Music Conference and Awards - April 8, 2013 Herbalife's Distributor Bonus Awards Celebration Pays over $50 Million - Mar 24, 2012 Herbalife Family Foundation Provides Nutrition Grants in Houston and Mumbai - Nov 3, 2011 Herbalife Family Foundation Provides Nutrition Grants in Houston and Mumbai - Nov 3, 2011 Herbalife Expands Brand Presence in Russia and India - Dec 14, 2010 Herbalife Family Foundation Expands Successful Nutrition Programs for Children in UK and Mexico - Sept 2, 2010 Herbalife CEO Launches Mission for Nutrition - Jan 13, 2009
In Summary Herbalife offers a ready to go success formula Exciting Global Branding Ethical Leadership, and Support System trainings and information for your success Products backed by science new, cutting edge, attractive products coming through Dedicated Distributors working together Amazing growth, based on Daily Personal Consumption An Income Opportunity like no other: Part- time or full- time its always your choice C O N C L U S I O N Recommendation:
Being a BBA student and doing a detailed study on Herbalife, as they are one of the most famous brands around the world in terms of Nutrition & Skin Care products.
After facing some loss and loosing some market share only due to the controversies that Herbalife is following a Pyramid Scheme model as their business model, which is just an allegations by the corporate sectors and some of the problems occurring in their products which is creating a negative effects on the consumers health.
Herbalife should overcome with such hindrance in their business so as to remain at the top in their field.
They should also do media advertising to create more awareness about their products and its benefits, as we are not seeing any advertisement on television, as it is the most successful channel to get into peoples mind apparently.
Herbalife should also come up with the festival offers as well. Depending on the location and culture. Like in India, they can come up with Diwali discount offers, or bumper offers or may be in terms of discount coupons, So as to attract more and more costumers.