You are on page 1of 32

PRESENTED BY:

AINDRILA BERA
AKANSHA RANI
DEEPAK KUMAR SINGH
EKTA AGARWAL
NISHA NUPUR YADAV
OLGA DAS
SUBHAM MISHRA
SIB SINGH
TRISHA ROY
NIKHIL KUMAR SINGH
Definition
 Direct selling refers to selling products directly to the consumer in a
non-retail environment. Instead, sales occur at home, work, online, or
other non-store locations.
 This system often eliminates several of the middlemen involved in
product distribution, such as the regional distribution center and
wholesaler. 
 The products sold through direct sales are usually not found in typical
retail locations.
Direct Selling Model
Types of Direct Selling
• Single-level Direct Sales: This type of sales is done one-on-one, such as through door-to-
door or in-person presentations.

• Host or Party-Plan Sales: This type of sales is done in a group setting, usually involving
the distributor or rep doing a presentation in their home or another person's home.

• Multi-level Marketing (MLM): Multilevel marketing (MLM) is a strategy that some


direct sales companies use to encourage existing distributors to recruit new distributors who
are paid a percentage of their recruits' sales. The recruits are the distributor's "downline."
Distributors also make money through direct sales of products to customers.
WHY DIRECT SELLING?

LOW (OR NO) RISK


BUSINESS EXTRA INCOME FLEXIBILITY TRAINING AND PERFORMANCE ENCOURAGE
OWNERSHIP MENTORSHIP PAYS WOMEN
EMPOWERMENT
• Operating in over 100 countries with a
market size of USD 182.8 billion.
• With growth in consumer markets and
increase in its penetration to globally
comparable levels, the industry has the
potential to reach a size of Rs.645 billion
by 2025, according to a recent KPMG
report.
• In India1.8 million youth will make
carrier in direct selling Industry till 2025.
INDIAN TRENDS BY PRODUCT
ENTRY AND GROWTH
OF AMWAY
• Entered India in 1995
• Sales were around Rs 100 crore in 1998, Rs 250 crore
in 2000 and Rs 500 core in 2001.
• Reported a turnover of Rs 800 crore in 2007, Rs 1790
crore in 2010 and Rs 2130 crore in 2011
• Has over 42% share of the Direct Selling Market
Country’s number ‘1’ Direct Selling FMCG company
AMWAY USES MULTI LEVEL
MARKETING MODEL
PRODUCT OFFERED
DIRECT SELLING

STRATEGIES
Sold through a network of Amway Business
Owners(ABOs) across the country
• Amway recruited more than 34,000 sale
persons-cum-distributors in the very first year
of its operations
• Now there are more than 5,50,000 distributors
across the country
• Any adult can enroll as an Amway distributor
without any payment
TUPPERWAR
E
• FOUNDED – 1948 in Leominster,
Massachusetts
• FOUNDER – Earl Tupper
• HEADQUARTERS – Orlando United
States of America
• REVENUE – US$2.26 billion
• NUMBER OF EMPLOYEES – 13500
• PARENT – Tupperware Brands
• PRODUCTS – Preparation, storage ,
serving products for the kitchen and home,
and beauty products.
DIRECT SELLING
STRATEGY
• Tupperware is definitely an iconic name in the global direct selling industry.

• Tupperware has been a profitable business, generating more than 10% operating profit
each and every year.

• Tupperware main strategy is party plan.

• Tupperware’s next strategy that contributes to this product branding is awarding its sales
team with a lucrative income together with the leadership development plan.

• The most important direct selling fundamentals adopted by Tupperware is networking


segment.
ORIFLAM
E
International beauty company operating in 60 countries through
direct selling
• FOUNDED- 1967
• FOUNDERS- Jonas & Robert Jochnick
• HEADQUQRTERS- Schaffhausen, Switzerland
• REVENUE-$5.9 Billions (2019)
• PRESIDENT & CEO- Magnus Brannstrom
• No. OF EMPLOYEES- 9000
• No. OF DISTRIBUTORS-3 Millions
• CATEGORIES- skin care ,
wellness,
cosmetics,
fragrance,
personal & hair care
Marketing strategy
• Oriflame uses Multi Level Marketing strategy
• One of the 1st companies to get a licence for direct selling in China
• online platform is also being used to sell the products
ABOUT HUL
HUL IS THE MOST ADMIRED FMCG
COMPANY OF INDIA GIVING TOUGH
COMPETITION TO MANY OTHER PLAYERS
IN THIS SECTOR LIKE ITC,NESTLE ,P&G .

HUL HAS A FLAT ORGANISATION


STRUCTURE.

ITS UNDERSTANDING OF CONSUMER ,


LEVERAGING TECHNOLOGY &
INNOVATION TO CONNECT WITH THEM
STANDS APART.

THE DEEP INSIGHT AND ITS CONTINUOUS


R&D IN MARKETING ITS PRODUCTS
MAKE THE COMPANY TO BE A PART OF
EVERYDAY LIFE OF EVERY 2 OUT OF 3
INDIANS.
DIRECT SELLING STRATEGIES

• PAN PYRAMID STRAGGLING PORTFOLIO


• PUSHING CONSUMER FOR MORE USAGE
• COMPETITIVE & COMPELLING
COMMUNICATION
• HIGHLIGHTING BENEFITS
• INCREASING CONSUMPTION IN RURAL
MARKETS
• STEPPING UP FRONT END EXECUTION
• BETTING ON BIG STARS FOR
ADVERTISING
• BIGGER, BETTER & FASTER INNOVATION
• LEVERAGING INFORMATION
TECHNOLOGY & SOCIAL MEDIA
HERBALIFE AT A
GLANCE
• a global nutrition company
• founded by Mark Hughes in 1980
• operates in 94 countries
• 4.5 million independent distributors and members (approx.)
• 4.89 billion US$ in 2018
• More than 8900 employees (2018)
• Michael O Johnson- (Chairman & CEO)

PRODUCTS
• Weight management
• Dietary supplements
• Personal care
• Sports nutrition
MARKETING
STRATEGY
• Multilevel marketing (MLM) strategy
• used to encourage existing distributors to recruit new distributors
• pyramid scheme earning
• PROBLEM- use money from new recruits to pay people at the top rather than those who
perform the work
• paid out from either commissions of sales made by the participants directly to their own retail
customers or commissions based upon the wholesale purchases made by other distributors
below the participant who have recruited those other participants into the MLM
• company’s financial gain at the cost of participant’s financial loss
ABOUT AVON
 Avon Products, Inc. is a world’s No. 1 direct seller of beauty products
Avon offers its customers not only a wide assortment of cosmetic products
but also jewellery, home decoration items, accessories and wellness
products.
 It was founded in 1886 by a 28-year-old David H. McConnell who sold
books door-to-door and gave out perfume to entice women to buy his
books.
 It started with California Perfume Company (CPC) in New York. In
October, 1939, the company was changed officially to Avon Products,Inc.
 As the world's largest direct seller, Avon markets to women in more than
100 countries through over 6 million active independent Avon Sales
Representatives.
 Avon has been responsible for breaking the conventional mould and
bringing the cosmetics counter to our doorsteps.
AVON’S COMPETITIVE
STRATEGIES
AVONS LADIES-Its core element is its focus on women
worldwide, hence in order to retain customers and garner a good
customer relationship they hire women representatives widely
known as AVON LADIES.
BUNDLE SELLING-Bundle selling is a practice of
marketing, promoting and selling an additional related or
unrelated product with the main product.
INTERNET MARKETING-Another popular and cost
effective sales strategy adopted by many Avon dealers is writing
informative articles in websites. These articles are linked to their
Avon business website.
FOREVER LIVING PRODUCT
Who WE Are!
Industry- Privately held Multi-level marketing

Founded - 1978 by Rex Maughan

Headquarters – Scottsdale, Arizona, United states

Products- Aloe vera and bee based products

Revenue- $13.6m(2018)

Employee - more than 4000 in 2010

Operating in more than 137 countries and 9.3 million distributors


Direct selling strategy
Team marketing

Personal Retailing (43% retail profit)

Team Building Bonus

Leadership bonus
Mi Lifestyle Marketing Global Private Limited
• Mi Lifestyle Marketing Global Private Limited was incorporated on 14 March,
2013 and is located in Chennai, Tamil Nadu.

• The company has three directors - Kolla Sathya Narayana, Hackeem Abdul Rahim,
and others.

• The company is a manufacturer of agro care, body care, grocery, health care,
nutritional care, personal care products

• Products & Services: Health Drink, Nutrilife, Maha Bhringraj Herbal Hair Oil,
Immuno 3 Plus, Diabalife Tablet, Radiant Glow Face Wash, Neem Soap

• Mi Lifestyle Marketing Global's operating revenues range is INR 100 cr - 500 cr


for the financial year ending on 31 March, 2018. The total paid-up capital is INR
1.32 cr.

• Online presence with the portal indiashoppe.com gives them more penetration.
They have tied up with the big names in the logistics industry to deliver the
products on time to the customers.
Direct Selling Strategies
• An individual can choose either to be a Consumer & be eligible
to earn monthly incentives by

• Or become a Distributor & be eligible to earn weekly


incentives also.
• FREE BUSINESS OPPORTUNITY
• Registered distributor, will able to get products at DP (which is
less than MRP).

• 3 simple steps:
 Purchase
 Use
 Recommend (Word Of Mouth Recommendation)

• Various types of incentives :


 Sales Turnover Incentive (weekly)
 Performance Bonus (monthly)
 Rank Commission (monthly)
 Royalty Income (monthly)
Indiashoppe.com
Limitations
THANK YOU!

You might also like