Marketing Plan analysis on Forever Living Products Essay

1.SummaryThis naming give look at the existing trade protrude for the alliance ever animation Products that foc customs on the selling of aloe vera ground products. The merchandising plan will show how the union focuses on two atomic number 18as the consumer and the distributor. Both come along to be inter connect and both be important in the objective of the social club. Further more than than, recommendations on shortfalls and lacking information will be made as to procure that grocerying is optimised and that this sales orientated connection stomach improve on sales and profits.2.Introduction and BackgroundFounded in 1978 on little more than dreams and ticklish work, unendingly nourishment is a multi-billion dollar play along, found in Scottsdale, Arizona, that manufactures and sells gobs of wellness and beauty products. People fromall over the initiation, including South Africa, assign these life-enhancing products, providing the probability to kno wledge an have vocation and secure a pecuniary future with a proven plan. With over nine and a half(a) million distributors in over 145 countries, Forever Living offers a once in a lifetime luck of animation a healthier, wealthier life.The founder proposed a very simple business idea to his approximate family and friends over thirty years ago. Offer consumable products to the public that are proven to promote lasting wellness and healthand do it in a personal personal manner. Instead of dumping big bucks into traditional denote, jog anyone willing to share these products with their family and friends.In minimising traditional advertising, the societys merchandise plan was developed as seen in Addendum A . This merchandise plan is very simple and focuses primarily on sales and packaging levels of sellers. Since 1978, very little changes were done to keep up with trends over the years.3.Business representationForever Living believes their greatest legacy is what they do for others and how they do it. We stay to sustainable practices that let us work in harmony with the earth, divergence a more promising future to our children. We take great insolence in our charity butt, Forever Giving, because it allows us to help others around the world who has needs far greater than our own. We are taking ideas and turning them into reality. It is a bring out of our business thats so deeply ingrained you could treat it our culture. Working towards a brighter future is so much more than our tariffits truly our pleasure.Forever Living offers a unique opportunity where distributors are in business for themselves, but never by themselves.4.Objectivesvisual perception that the company primary focus is on sales, that is exactly what drives the objectives of the company. This is very evanesce in the real (unchanged) marketing plan still in use. The principal(prenominal) objective is Own your own business You are in maneuver of your own destiny. Instead of m aking your boss rich, all the work you do actually benefits you. gum olibanum, the company tries to empower ordinary mint with the ability to own an income relate to the arrive of effort put into sales and marketing based on known and proven products and catering for people with the same determine in life. A promotion scheme is followed where the distributor starts at meekness level and then climb on to naughtyer levels determined by the add up of sales accomplished. It seems like primarily the focus is based on the fare of sales obtained, but on the other hand a self-coloured emphasis is placed on customer satisfaction.5.SWOT AnalysisStrengths Being a company that has existed since 1978, it proves that this is no fly-by-night company. Sound records and proven results are in favour of establishing this company as a reputable business. Forever Living has a track record of more than 30 years of success.The company offer excellent training, seminars, incentives, and a supp ort center. Forever Living is a company with an international presence that demonstrates stability, growth, and ample industry experience. Innovative, quality products verbalize of the credibility of the company.Weaknesses Seeing that the Forever Living Company, on customer related issues, primarily sours use of word-of-mouth marketing, as well as draftsmanship the majority of costumers from family and friends, it seems like this could lead to a potential gap in their marketing plan.On the side of distributors, it seems like there is extra protocols and measurements regarding the pith of sale world monitored and available forscruitinising. Thus, it seems like whatever sales you lay in per month is the only way of monitoring your own progress in the company.Opportunities Although it could also be seen as a stumbling block, Forever Living Products lend oneself the opportunity to play the ecological card (which seems to be quite democratic in youthful trends) and puts a grea t deal of emphasis on existence green and sustainable. As quoted they are- Accountable to the Environmentalways since Forever Living Products was founded in 1978, weve had the utmost respect for nature. Not that GreenwashingOur challenge to be more eco-friendly wasnt based on pursuance fads or silencing critics. In 2006 we launched a formal environmental sustainability program to challenge ourselves to do more.We designated two areas where we could improve* Waste Generation* Waste recuperationSince we began monitoring our progress we have reduced our waste by 50% and increased our recycling from 26% to 61%. Our Carbon FootprintWhen it comes to the readiness of converting CO2 into oxygen, 20 aloe plants are equal to one tree. With over 40 million aloe vera plants in our plantations, our Aloe Vera of America plantations actually cleanse the earth of 2 million tons of CO2 every year https//www.foreverliving.com/marketing/Page.do? disclose=sustainabilityThreats Looking at the glo bal economy, this could be a factor in reduced sales as Forever Living Products might be costly for costumers in countries (third-world countries) that are struggling economically. Few competition threats in relation to the product itself are known of as aloe vera productsare limited by resources (aloe plants mostly grow in arid/ desert areas). Also, the amount of aloe vera in the base product makes this product range unrivaled by most other products.6.Competitive AdvantageFor consumers, the Forever Living Companys product range is solely based on Aloe Vera products, which are dual-lane into health drinks, nutritional supplements, weight management products and cosmetic / personal forethought products. This alone already gives the company a unique foothold on the health and beauty market a fresh approach with a definitive product focus.As for distributors, Forever Living also has the advantage of a multi-level step-up promotion scheme for distributors where you quite a little re ach a certain level and not degrade once you have reached that level.With this being said, other advantages areOwning your own business You are in charge of your own destiny. Instead of making your boss rich, all the work you do actually benefits you.Little risk and no overhead cost traditionalistic brick-and-mortar businesses cost tens of thousands of dollars to establish, not to mention a bank loan that will take you decades to repay. Starting your home-based business with Forever Living only costs you a few hundred dollars.No salary cap corporeal jobs limit your pay range based on a market standard. With Forever Living, there is no cap on how much you dupe. The harder you work, the more money you make.Residual Income Perhaps the greatest benefit is that the multi-level marketing system offers lasting income. You as a distributor will always earn commissions on distributors you introduce to Forever Living, continually reaping the benefits of your hard work.7. market Strat egy7a). fool MarketAs the companys unique product aloe vera is linked to many health and cosmetic benefits, it is a product that is sellable to most anyone. The target market is generally based on friends and/ or family acquire from the distributor. This is not limited though to the above mentioned, but also includes people that have the urge or need to better their lives by living more healthy and doing so in reaching out to products (like Forever Living Products) that could sustain and/or improve that kind of living. Because of the relative high pricing linked to these products, one would classify the core target market as middle to high income groups. Being a sales orientated business, distributors are however expected to contact as many as potential consumers to sell to and build up enough credit points (as part of the sales plan) to earn their compensation/rewards. Although a fair deal of business comprise of new business, a striking part of sustaining and re-enforcing se lling targets is based on repetitive sales from previous customers.7b). PositioningThe positioning fundamentally rest on aforementioned health and cosmetic benefits to improve your way of life. With few competitors supplying specifically (certified) aloe vera products (keeping in mind that at least 75% of the base product must comprise of aloe vera), Forever Living has created a niche market and a unique selling opportunity.7c). Marketing MixMarketing to potential customers fundamentally comprises of launch events, word-of-mouth and try out tests conducted in heterogeneous environments suitable to potential customers. In this instance distributors seem to gather a group of people and thus present the products to various potential customers. This type of approach seem to work well in that people in numbers agreeing on an issue would more potential be proned to buying and thus push up the sale quota.As for distributors, Forever Living Products provides them with a simple, proven cy cle that guarantees your success. If the distributor and their aggroup members follow the steps in this cycle, there is no limit to how large their business will become and how much money you will earn.1. obtain a Business Pak2. Develop a personal selling/marketing plan3. Set your foundation by retailing 4 gaffe assign per month4. Follow up with your clients and prospects5. Present the business opportunity6. Sponsor new team members and guide them done the cyclei)ProductSince the foundation in 1978, Forever Living Products markets extensively aloe vera based products. They pride themselves in claiming at least 75% of the base product consists of this core ingredient. Thus all products marketed are said to contribute to the health and cosmetic (e.g. strip care) satisfaction of their customers. Over the years, with the trend of energy drinks that became popular in recent years, the company made sure that the products offered also includes these trends. Focusing on a better livi ng, the shape Forever Living Products leans quite suitably towards what the company tries to sell a longer, better, healthier life. The company also offers a wide of the mark refund and/ or replacement of products without any disputes. What has been noted in delivery service is that customer service in this regard is very suitable and fast 2 days delivery since placing an order to delivery on your doorstep. ii)PlaceForever Living took a stance on the fact that they ask to assist ordinary people to own their own businesses. As Forever Living Products markets primarily through the use of family and friends and word-of-mouth, it seems that there could be a gap in utilizing other means of distribution. However, it is also understandable that the company would like to empower distributors (without the necessity of holding a large line of work reserve) and thus ensure that even the smallest distributor would be able to make aliving. This would furthermore project the products as b eing more single(a) not being able to walk into your nearest shop and excerption it off the shelf, and in this way justify the price of the product.The home company is situated in Arizona, United States. The South African setup with four distributor outlets services distributors all over South Africa.iii)PromotionAs mentioned earlier, products are primarily marketed by means of word-of-mouth, friends and family. Other means of marketing and advertising includes internet advertisements and online testimonials. All of these are rather inexpensive marketing tools being utilised. Through these channels is seems that there is sufficient affirmation to uphold the theme of the products offered. However, with these channels use it seems to be difficult to obtain a can estimation of the effectiveness of these efforts.On actual selling by distributors there is no clear indication of time spend, the only indication that could be used as a measure is the sum of case credits. Case credits d etermine the effective selling of a distributor. The more case credits accumulated during a month, the higher the incentives and possibility to progress to another level (often with even better incentives).The company tries to keep their products easy lay and thus the use of database marketing seems ineffective, as this would make the products seem crude.In general, promotion of products for this company is based on testimonials from regular consumers who can recommend the benefits to others. Through this line of advertising, it would seem that benefits of the products are more creditable, accredited and trustworthy due to the fact that you know the person who introduced you to the line of products.iv)Priceprice on international products are generally seen as being expensive, oddly on niche products. Even with Forever Living Products, this phenomenon occurs. However, focusing on health and cosmetic enhancements, the company can still make a reasonable stance in the pricing aren a.8.Implementation, Evaluation and ControlThe marketing plan appears to be in line with the goals set out by the company to achieve the desire goals. Primarily the activities required are achieved through sales of the distributors, which is measured on a monthly basis. Most in all probability the company would need to attempt a fresh approach on current marketing strategies such as e-commerce, although this could affect the purpose of the current structure and mission of the company to empower normal people to own a business of their own. Seeing that performance standards are basically measured in the amount of sales per month (to achieve the desired case credits, this is the only way to measure the above mentioned.9. consequence / RecommendationsThe Forever Living Products Company has set remarkable sales initiatives in place, rarely found in this type of marketing. For one, when a distributor has reached a certain sales level, there is no reverting back to a lower sales level. In every sale that is made take your line as distributor (no matter what level), you benefit from the inputs of your team.Although the company follows a very plain marketing plan, which seems to be quite effective, some improvements can be noted. Lack of information is found in the distributors channels. As the companys main aim is based on sales, it could be recommended that an on-line(a) portal be created as to inform distributors of a current sales analysis (as of the first of every month, and therefore should be accessible and gleam updates any time of the month). This would pose to be a great motivational tool in driving thissales orientated business and ensuring that you as distributor acquire the necessary case credits required.It is also recommended that the use of social media such as e.g. television and radio, bill-boards and poster be used on a global and general scale to promote products. This would in turn mean that a central access point (like a website or telephon e call centre be utilised to orchestrate potential customers to their nearest distributor.ReferencesForever Living Products South Africa (Pty) Ltd.(2014) https//www.foreverliving.com/marketing/Page.do?name=sustainability, Accessed 29-04-2014Forever Living Products South Africa (Pty) Ltd.(2014).https//www.foreverliving.com/marketing/Page.do?name=our_culture, Accessed 29-04-2014http//aloe-business.yolasite.com/resources/Marketing_Plan_English%20Forever.pdf, Accessed 28-04-2014