HERBALIFE

Topics

Company profile.

Business plan.

Products.Sales.

Sponsorship.

The Company

Herbalife International is a global nutrition, weight-loss and skin-care company. The company was founded in 1980 and it employs around 4,000 people worldwide.The company was founded by Mark Hughes. Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother, whose death he attributed to an eating disorder and an unhealthy approach to weight loss.

Herbalife started in Beverly Hills, California where it now has the world headquarters. With an aggressive expansion attitude, Herbalife currently operates in 73 countries and new countries are welcome every year. Ukraine, Macau, Estonia and Hungary became the latest countries to join the Herbalife family. In addition to the international expansion efforts, Herbalife is a company for the future. With major involvement in D.A.R.E. and the creation of the Herbalife Family Foundation Herbalife is dedicated to improving the lives of all people!

Herbalife emphasizes herbs and other natural ingredients in the weight loss, nutritional and personal care product lines. Their exclusive formulations appeal to the growing consumer interest in herbal and natural products.

The company's slogan, "Lose Weight Now, Ask Me How", became a marketing theme for distributors, featuring heavily on badges, flyers and posters.

Vision & Commitment

“To bring some of the world’s finest, weight-management and nutritional products to every corner of the earth, person by person, city by city, country by country.”

To serve millions of satisfied customers all over the world.

To provide one of the best distributor compensation plans in the industry.

BusinessHerbalife 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 their 'downline' distributors. Supporters of MLM contend this is a fair compensation system, while critics of MLM contend that it is similar to a pyramid scheme. 

ProductsHerbalife's product range includes protein shakes, protein snacks, nutrition, energy and fitness supplements and personal care products. 

The Formula 1 protein shake, a soy-based meal-replacement shake, is the company's number one product and was one of the first products sold by the company. The range also includes targeted products for heart health, digestive health and skin care.

Some products are vegetarian, kosher or halal, and Herbalife provides testimonials and advice from health professionals as part of their product marketing.Many of its weight management, nutritional and personal care products are manufactured for by third party manufacturing companies, with the exception of products distributed in and sourced from China, where they have their own manufacturing facility and several products are manufactured in its recently acquired manufacturing facility in Lake Forest, California.

Overview Example of a Product

Formula 1 Nutritional Shake MixA healthy and delicious meal that provides essential nutrients and quality ingredients in an enhanced formula proudly backed by scientific research.Key Benefits•20 vitamins, minerals and essential nutrients.•9g of protein and healthy fiber help support weight management.•Includes the antioxidant vitamins C and E.•0 cholesterol; 0 trans fat.

In 2009, the company marketed and sold a portfolio of 127 products. The company earned $2.3 billion in revenue and $203 million in net income in 2009.The company is divided into five segments: Weight Management, Targeted Nutrition, Energy and Fitness, Outer Nutrition, and Literature & Promotional Products.Weight Management (63% of net sales): The Weight Management segment, is accounted for almost two-thirds of the company's sales,

Sales

Targeted Nutrition (21.2% of net sales): Targeted Nutrition sells dietary supplements, which contain herbs, minerals, vitamins, and natural ingredients. Energy, Sports & Fitness(4.3% of net sales): The Energy, Sports & Fitness segments markets energy and isotonic drinks.Outer Nutrition (5.5% of net sales): Outer Nutrition markets skin cleansers, moisturizers, shampoos and conditioners, and lotions.Literature & Promotional Products (6% of net sales): The company sells CD's, audiotapes, DVD's, and other materials to help its distributors market products.

Herbalife divides its geographic sales into six different segments:•North America - 22.8% of net sales•Mexico - 11.3% of net sales•South and Central America - 15.8% of net sales•EMEA - 21.7% of net sales•Asia Pacific - 21.9% of net sales•INDIA – 2.1% of net sales•China - 6.5% of net sales

Geographic segments

Because the company's Formula 1 accounts for 32% of its net sales, Herbalife faces competition in the weight-loss industry. Thus, almost any company that a customer could turn to help him or her lose weight is a potential substitute for Herbalife.Alticor Inc Weight Watchers International (WTW)Ediets.comNu Skin Enterprises (NUS)General Nutrition Centers Nature's Sunshine Products (NATR)

Competitors

Business Mantra

“Use , Wear & Talk”

Herbalife sponsors a number of athletes, sports teams and sporting events around the world, including:•Sergey Konyushok (Broke 7 Guinness Records at strongman competitions)•AYSO (the American Youth Soccer Organisation)•LA Galaxy soccer team•Valencia CF football club •Club San Luis from Mexico•Santos FC, Official Nutrition Advisor•FC Barcelona, Official Sponsor•FC Spartak Moscow, Official Sponsor•CA Lanús, Official Sponsor•Lionel Messi

Official Sponsors

CONCLUSION

References

http://www.herbalifeww.com/in/http://www.lifemana.com/http://www.healthylifenow.com/http://www.moreenergy.com/mark_hughes.htmlhttp://mlmonlinemagic.wordpress.com/tag/herbalife/http://www.wikinvest.com/stock/Herbalife_(HLF)http://in.finance.yahoo.com/q?s=hlf