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 multilevel marketing company that develops markets
and sells nutrition, weight management and skincare 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 multilevel 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:
An appropriate
nutrition plan is
essential for
providing our
bodies with the
nutrients required
to help them
function properly.

Energy And Fitness:

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.

BUSINESS
PRODUCT
OPPORTUNITY
COMPANY
Herbalifes
Herbalifes
mission is to mission is to
change peoples
change peoples
lives by providing lives by
the best nutritionproviding the
and weight best business
management opportunity in
products in the direct selling.
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 NYSElisted
public
company
requirements
for
transparency.
To ensure continuing gains in
this area, we created the
independent post, directorin-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?

You can buy

products at 25%42% profit
You are an
Individual
Herbalife
Distributor

Anjesh

Rajji
Harshit

Amit

As a Wellness Consultant Help 4 people

improve their health with Herbalife

Minimum stock
maximum
discount

In other
words you
are making
more money

I want to
make a
success
builder order

1000 volume points =

A Success Builder order of 1000VP

from the warehouse entitles you to
42% profit.

Your profit is now

42%

You are an
Individual
Herbalife
Distributor
Harshit

You make a retail

profit by selling to
customers

Amit
Anjesh

Rajji
You make a
wholesale profit
by selling to Amit

Some of your customers decide they want some

of the action. Well concentrate on Amit. Or you
may recruit and train more consultants.

Amit buys
products from
you at 25% to
sell to his

Remember you
bought your
product at 42%

You are an
independent
Herbalife
distributor

Harshit

Amit

Achieve 4,000
Volume Points in one
calendar month or
2,500Volume Points
over 2 consecutive
months to qualify as
SUPERVISOR
Anjesh
Rajji

Amit has decided to get involved in the

business. She must buy the International
Business Pack and register.

You are an
independent
Herbalife
distributor

Harshit

Anjesh
Amit

Rajji

Volume
points from
your
organization
count
Towards
your
Personal
Volume

Supervisors get a profit of 50% on products!!

You are a
Supervisor

Anjesh
Harshit

Rajji

Amit new
supervisor

Amits
Organization

Amit has decided to become a

SUPERVISOR -what does this mean to
you - and your pocket?

You earn up to 5%
Sales Royalty on your
First level Supervisor
(Amit).

You are a
Supervisor

Anjesh
Harshit

Rajji

Amit new
supervisor

Amits
Organization

If someone from Amit's organisation

qualifies as Supervisor you will earn a
Royalty also.

The same
follows until your
third level
Supervisors.

Basic Level

You earn up to 5%
Sales Royalty on
your
First and Second
level Supervisor.

You are an
independent
Herbalife
distributor

Plan:

Of Marketing

Supervisor

Organizational Structure
of VP in
4000
Qualified
1 month
Producer
Herbalife
:
50%
Permanent
CEO
Michael Johnson
Senior
Consultant
Director
(VIP
Leroy Barnes
Distributor)

Success
Builder

CFO
John DeSimone
President
Des Walsh

Distributor

1ooo VP
42%
Temporary

25oo VP in 3
months
42%
Permanent

500 VP
35%
Permanent
25%

Director
Richard Bermingham

COO
Richard Goudis

Director
Padro Cardoso

Legal
David Heber

Director
Richard Carmona

Scientific
Rocio Medina

Director
Jonathan Christodoro

Corporate Affairs
Diahanna Brown

Director
Keith Cozza

Advisor to Chairman and

CEO

Director
Jeffrey Dunn
Director
Hunter Gary
Director
Jesse Lynn
Director
James Nelson
Director
Maria Otero

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 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
Herbalife
Foundation
Expands
Grants
in Family
Houston
and Mumbai
- Nov Successful
3, 2011
Herbalife
CEO
Launches
Mission
forUK
Expands
Family
Foundation
Brand
Presence
Provides
inNutrition
Russia
Nutrition
and
Nutrition Programs
for Children
in
and Mexico
India
Grants
- 2,
in
Dec
Houston
14, 2010
and Mumbai - Nov 3, 2011
-Jan
Sept
2010
13,
2009
Herbalife,
Common Threads Partner to Provide

Nutrition Curriculum in Schools Across the

Country - Sep 9, 2014

C
O
N
C
L
U
S
I
O
N
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: Parttime or full- time its always your choice

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.