Marketing Plan analysis on Forever Living Products Essay

1.SummaryThis assignment leave behind look at the existing merchandise envision for the fraternity constantly accompaniment Products that foc physical exertions on the selling of aloe vera found products. The marketing plan lead show how the company focuses on two areas the con toter and the distributor. Both be to be inter joined and both are important in the objective of the company. Further more(prenominal), recommendations on shortfalls and lacking information will be made as to ensure that marketing is optimised and that this bargains oriented company can improve on sales and profits.2.Introduction and BackgroundFounded in 1978 on little more than dreams and hard belong, eer animateness is a multi-billion dollar company, ground in Scottsdale, Arizona, that manufactures and sells dozens of wellness and viewer products. People fromall over the world, including S bulgeh Africa, distribute these life-enhancing products, providing the opportunity to bear an own sho rt letter and mend a financial future with a proven plan. With over nine and a half trillion distributors in over 145 countries, constantly Living offers a once in a live livestockss opportunity of living a healthier, wealthier life.The founder proposed a very simple business idea to his proximate family and friends over thirty years ago. Offer consumable products to the public that are proven to promote durable wellness and healthand do it in a personal way. Instead of dumping big bucks into traditionalistic advertise, compensate anyone willing to share these products with their family and friends.In minimising traditional advertising, the companys marketing plan was essential as seen in Addendum A . This marketing plan is very simple and focuses primarily on sales and promotion levels of sellers. Since 1978, very little changes were done to keep up with slews over the years.3. business organization Mission forever Living believes their greatest legacy is what they do fo r early(a)s and how they do it. We adhere to sustainable practices that let us work in harmony with the earth, leaving a more promising future to our children. We take great self-complacency in our charity foundation, Forever Giving, because it allows us to help others around the world who has needs far great than our own. We are taking ideas and turning them into reality. It is a part of our business thats so deeply grain you could call it our culture. Working towards a brighter future is so much more than our dutyits rattling our pleasure.Forever Living offers a unique opportunity where distributors are in business for themselves, but never by themselves.4.ObjectivesSeeing that the company primary focus is on sales, that is exactly what drives the objectives of the company. This is very progress to in the current (unchanged) marketing plan becalm in use. The main objective is Own 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. olibanum, the company tries to empower ordinary lot with the ability to own an income related to the amount of try put into sales and marketing based on known and proven products and catering for people with the homogeneous values in life. A promotion scheme is followed where the distributor starts at entry level and accordingly progress to higher levels determined by the amount of sales accomplished. It seems like primarily the focus is based on the total of sales obtained, but on the other hand a strong speech pattern 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. clayey 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 support center. Forever Living is a company with an international presence that demonstrates stability, growth, and ample industry experience. Innovative, role products speak of the credibility of the company.Weaknesses Seeing that the Forever Living Company, on customer related issues, primarily makes use of word-of-mouth marketing, as well as drawing the majority of costumers from family and friends, it seems like this could lead to a authorizationity gap in their marketing plan.On the side of distributors, it seems like at that place is saltationed protocols and banknotements regarding the amount of sale being monitored and available forscruitinising. Thus, it seems like whatever sales you submit per month is the only way of supervise your own progress in the company.Opportunities Although it could also be seen as a stumbling block, Forever Living Products apply the opportunity to play the ecological card (which seems to be quite popular in recent trends) and puts a great deal of emphasis on being green and sustainable. As quoted they are- Accountable to the milieuEver since Forever Living Products was founded in 1978, weve had the utmost respect for nature. Not Just GreenwashingOur challenge to be more eco-friendly wasnt based on following fads or silencing critics. In 2006 we flinged a formal environmental sustainability program to challenge ourselves to do more.We designated two areas where we could improve* Waste Generation* Waste RecoverySince we began observe our progress we have reduced our waste by 50% and increased our recycling from 26% to 61%. Our Carbon FootprintWhen it comes to the efficiency of converting carbonic acid gas 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?name=sustainabilityThreats Looking at the global economy, this could be a instrument in re duced 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 separate into health drinks, nutritional supplements, weight management products and cosmetic / personal care products. This alone already gives the company a unique foothold on the health and beauty market a fresh surface with a definitive product focus.As for distributors, Forever Living also has the advantage of a multi-level escalate promotion scheme for distributors where you can reach a certain level and not degrade once you have reached th at 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 costs Traditional 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 degree centigrade dollars.No salary cap Corporate jobs limit your pay range based on a market standard. With Forever Living, there is no cap on how much you earn. The harder you work, the more money you make. rest Income Perhaps the greatest benefit is that the multi-level marketing strategy 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. commercialiseing Strategy7a). Target MarketAs the companys unique produ ct aloe vera is linked to many health and cosmetic benefits, it is a product that is sellable to virtually 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 soften 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 abundant part of sustaining and re-enforcing selling targets is based on repetitive sales from previous customers.7b). PositioningThe positioning basically rest on same 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 nook market and a unique selling opportunity.7c). Marketing MixMarketing to potential customers basically comprises of launch events, word-of-mouth and sample tests conducted in various environments suitable to potential customers. In this in post distributors seem to attain 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 possible be proned to buying and thus push up the sale quota.As for distributors, Forever Living Products provides them with a simple, proven cycle that guarantees your success. If the distributor and their team m embers 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. Purchase a Business Pak2. Develop a personal selling/marketing plan3. Set your foundation by retail four consequence credits per month4. Follow up with your clients and prospects5. Present the business opportunity6. patron new team members and guide them through 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. skin 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 living, the name Forever Living Products leans quite suitably towards w hat the company tries to sell a longer, better, healthier life. The company also offers a full refund and/ or replacement of products without any disputes. What has been tell in delivery service is that customer service in this regard is very sufficient and fasting 2 days delivery since placing an order to delivery on your doorstep. ii)PlaceForever Living took a stance on the fact that they want 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 stock reserve) and thus ensure that even the smallest distributor would be able to make aliving. This would moreover project the products as being more exclusive not being able to walk into your adjacent shop and pick it off the s helf, and in this way justify the price of the product.The home company is ascertain 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 on job testimonials. All of these are rather inexpensive marketing cocks being use. Through these channels is seems that there is sufficient affirmation to uphold the reputation of the products offered. However, with these channels use it seems to be difficult to obtain a clear 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 vitrine credits. Case credits determine the effective selling of a distributor. The more case credits accumulated durin g 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 exclusive and thus the use of database marketing seems ineffective, as this would make the products seem putting green.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, true and trustworthy due to the fact that you know the person who introduced you to the line of products.iv)PricePricing on international products are generally seen as being expensive, especially on ecological 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 arena.8.Implementation, Evaluation and ControlThe marketing plan appears to be in line with the goals set out by the company to achieve the desired goals. in the beginning 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. Conclusion / 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 put down your line as distributo r (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 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 reflect 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 telephone call centre be utilised to direct potential customers to t heir 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