L'entreprise Forever Living Product

Outline:

I. Abstract ………………………………………………………………………………..…3

II. Introduction …………………………………………………………………….….…….2

III. Part 1:

Literature Review ……………………………………………………………………4

Defining Multi Level Marketing …………………………………………………….5

The Invisible Hand and MLM ………………………………………………………7

Introduction to FLP ………………………………………………………………….8

MLM and FLP ……………………………………………………………………...10

Why is FLP a successful company in Morocco? ………………………………….11

Bio Products ………………………………………………………………………...13

Bio Products and MLM …………………………………………………………….14

IV. Part 2:

Research Methodology and Participatory Observations

a. Our findings …………………………………………………………………………14

b. Purpose of our survey ………………………………………………………………15

c. Our survey …………………………………………………………………………..15

V. Part 3:

FLP’s Success ……………………………………………………………………….15

Obstacles Faced by FLP ……………………………………………………………17

a. product oriented obstacles …………………………………………………………17

b. MLM oriented obstacles ……………………………………………………………18

Solutions to obstacles…………………………………………………………….….20

VI. Conclusion ………………………...…………………………………………………...22

VII. Appendix

Exhibit 1: Survey ………………………………………...…………………………24

Exhibit 2: Pie Chart of Findings ………………………………………...…………25

VIII. References ………………………………...…………………………………………26

Abstract:

Forever Living Products is a company that has witnessed some extraordinary success since it was initiated. This paper discusses the company history and its products and then it moves on to its marketing strategy. In terms of products we spoke a bit about bio products. The success of the company on a global level is discussed along with its success in Morocco. Throughout the years the company has been running on Multi Level Marketing. This type of marketing was the gateway to its success because it allowed the company to grow at an alarming rate. In defining MLM, this paper used Adam Smith’s “Invisible Hand” theory to explain the concept.After a close study our findings suggest that, although the company is successful it is also facing some problems and obstacle. These problems were mainly concerned with the products and the lack of trust from the customer perspective. There were also some flaws within the company’s MLM that might pose as a potential threat to its growth. These flaws are not unique to FLP because we have seen that other literature reviews refer to them as causing problems in other companies as well.These flaws however can be bypassed with careful planning and good company management. We will also unveil the idea that MLM success can be a result of a good information system which will be able to keep track of all the distributors belonging to the company.

Introduction:

Companies can research, invent, and produce state-of-the-art products, but no matter how good these companies are , they would never be able to sell their products or services without the help of marketing. The “father of business consulting”, Peter Drucker once said that“because its purpose is to create a customer, the business has two - and only two - functions: marketing and innovation. Marketing and innovation create value, all the rest are costs”. Marketing is the distinguishing, unique function of the business”.(Trout, 2006)Nowadays marketing has become ever so important and marketers strive every day to find ways to convince people to buy their products or services. Basically, marketing involves “selling the sizzle not the steak”. Throughout the years researchers have come up with various ways throughwhich products and services can be marketed, some of which result from early findings of famous therapists and psychologists. Due to the fact that marketing has to do a great deal with psychology and human behavior, it has become vital to understand how people think and act. Not only is consumer behavior of relevant importance, but behavior of the company’s sales force is also quite significant. This leads us to a baffling question faced with marketers today, which is, what kind of marketing proves to be the most effective means of determining and manipulating consumer behavior? "Forever Living Products" is a successful company in Morocco whose sales rely heavily on its marketing techniques, and one technique that would prove useful to this company is Multi-level Marketing. The purpose of this paper is to identify and explain the reasons for which this type of marketing would increase “Forever Living Products” sales. Multi-level Marketing can be useful for almost any company that relies heavily on its sales and whose sales are at the hands of its sales people. This is why we will also talk about the

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