Herbalife

Topics: Multi-level marketing, The Walt Disney Company, Nutrition Pages: 33 (1394 words) Published: October 14, 2014
Obesity and its complications are a worldwide epidemic

Poor Nutrition – A Global Problem

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® Ltd faces competition from:

Nestle SA: $140.6B

Unilever NV: $41.6B


Kraft Foods Inc.: $37.5B


Danone: $28.1B

General Mills Inc.: $17.3B

Kellogg Co: $16.7B

Amway: $11.8B

HERBALIFE®

Product Line of Herbalife®:

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:

Personal Care:

Targeted Nutrition:

Mission of Herbalife®:

Their Mission is to change people’s life by providing the best business opportunity and the best nutrition and weight management products in the world.

Vision of Herbalife®:

Mark...
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