Scribd Logo
Upload

Welcome to Scribd!

  • 67 views

    Herbal Life Case Study Presentation

    Uploaded by

    Shobhit
    The document provides an overview of Herbalife including its target market of health conscious individuals, competition in the dietary supplements market, competitive advantages around product quality and worldwide presence, threats from increasing competition and regulations, and marketing problems related to its multi-level marketing model and expensive products. It then outlines operational and growth strategies including diversifying products and penetrating new markets to increase sales and counter risks to its market position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Herbal Life Case Study Presentation

    Uploaded by

    Shobhit
    67 views15 pages
    The document provides an overview of Herbalife including its target market of health conscious individuals, competition in the dietary supplements market, competitive advantages around product quality and worldwide presence, threats from increasing competition and regulations, and marketing problems related to its multi-level marketing model and expensive products. It then outlines operational and growth strategies including diversifying products and penetrating new markets to increase sales and counter risks to its market position.

    Original Title

    Herbalife_Group_3.pptx

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides an overview of Herbalife including its target market of health conscious individuals, competition in the dietary supplements market, competitive advantages around product quality and worldwide presence, threats from increasing competition and regulations, and marketing problems related to its multi-level marketing model and expensive products. It then outlines operational and growth strategies including diversifying products and penetrating new markets to increase sales and counter risks to its market position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    67 views15 pages

    Herbal Life Case Study Presentation

    Uploaded by

    Shobhit
    The document provides an overview of Herbalife including its target market of health conscious individuals, competition in the dietary supplements market, competitive advantages around product quality and worldwide presence, threats from increasing competition and regulations, and marketing problems related to its multi-level marketing model and expensive products. It then outlines operational and growth strategies including diversifying products and penetrating new markets to increase sales and counter risks to its market position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    Herbal Life

    Case Study
    Presentation

    •Jean-Marie Junior Kouadio


    •Rachid L’Marzguioui
    •Soufiane Zoubir
    •Supervised by: Dr. Arie
    Barendregt
    Target Market

    • Health conscious individuals belonging to middle- and


    high-income segments
    • Sport focused consumers (Bodybuilder & Athletes)
    • Performance boost
    • Increase in energy level
    • Diet focused consumers
    • Gain or Loss of weight
    • Transition to healthier eating habits
    Herbalife’s Sector

    • Healthcare & Lifestyle Industry


    • Dietary Supplements market
    •  Valued at USD 132.8 billion in 2016 and is expected to reach USD
    278.02 billion by 2024 at a CAGR of 8.8%.
    • The market is still in its growth phase
    Herbalife’s Competition
    Herbalife’s Competition (cont.)

    • USANA Health Sciences


    • Sell various nutritional products, dietary supplements and skincare products

    • Mannatech
    • Specialized in nutrition, immune health, weight loss, skincare and more

    • GNC
    • Specialized in selling health and nutrition related products, including vitamins,

    supplements, minerals, herbs, sports nutrition, diet, and energy products.


    Herbalife’s Competitive Advantage

    • Product excellence
    • The quality of their products is unmatched on the market.
    • Terrific results
    • Customer excellence
    • Providing coaching and guiding services to help the customer achieve
    better results through a proper way of consuming the products
    • Worldwide Presence
    • Operating in 94 countries with approximately 3.2 million independent
    distributors
    Threats and Sustainability

    • Threats from increasing competition in this segment


    by big players
    • Rising cost of R&D in drug discovery and development
    • Governmental legislations and limitations related to
    health care
    • Rise of substitute products
    The Marketing Problem

    • MLM methods used by Herbalife


    • High priced products purchase by distributors
    • These products are in turn marketed by new hired distributors
    • Benefit from discounts by manufacturers and sales commissions by sub distributors

    • Camouflage of pyramid schemes as direct selling marketing


    method
    • Bad publicity

    • Expensive Products
    • Decreasing sales
    Operational Marketing Plan

    • Objective:
    • Launching new products
    • Targeting new customers
    • Increasing Sales
    MKT plan: 5Ps

    • Product: various, optimal and consistent products for customers


    • Price: reasonable, 30 servings at 1.25$/serving
    • Place: Worldwide availability through distributors and nutrition
    clubs
    • Promotion: Social media, word of mouth, and distributors
    testimonials
    • People: Staff, salespeople and brand ambassadors
    Growth strategies

    • Marketing penetration
    • Marketing development
    • Product development
    • Diversification
    C4i

    • Command
    • Communicate
    • Control
    • Computers
    • Intelligence
    Contingency plan

    • Concretize on the actual trends


    • Ageing population
    • Continuous increase in obesity
    • Increasing demand for healthy lifestyle alternatives

    • Have a well-prepared alternative growth strategy


    Products’ current market positions

    • Herbalife seems to have no big growth opportunities


    • Its products are not consolidating its leader position
    • Threat from competitors is very much alive
    Products’ future market positions

    • High threat of substitution


    • Increasing entry probability of potential competitors
    • Conservation of position is hard

    • Industry leader position at stake


    • Brand image at risk considering current allegations

    You might also like