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“MARKEING STRATEGY ADAPTED BY HERBEL LIFE – A CASE STUDY ON HERBEL LIFE JODHPUR”

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Marketing Strategy

“MARKEING STRATEGY ADAPTED BY HERBEL LIFE – A CASE STUDY ON HERBEL LIFE JODHPUR”

Uploaded by

TRIUMPH UAE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A PROJECT REPORT ON

“MARKEING STRATEGY ADAPTED BY HERBEL LIFE – A CASE

STUDY ON HERBEL LIFE JODHPUR”

Submitted in partial fulfilment of the requirements for the award of


degree of Bachelor of Business Administration (BBA)

JAI NARAIN VYAS UNIVERSITY, JODHPUR

SUBMITTED TO SUBMITTED BY

Mr. Shaji Peter DIKSHA RAY


Training Co-ordinator Enrollment No. 18R/14584

PROJECT MENTOR
MR. RAGHAV JAIN MANGER

HERBALIFE, JODHPUR
UNDERTAKING

I, diksha ray student of Bachelor of Business Administration at Aishwarya College of


Education, Affiliated to Jai Narain Vyas University, Jodhpur hereby declare that the
research title over “MARKEING STRATEGY ADAPTED BY HERBEL LIFE – A
CASE STUDY ON HERBEL LIFE JODHPUR” has been done by the undersigned with
full devotion for partial fulfilment of degree of B.B.A. I also declare that the facts
mentioned are true and correct to the best of my knowledge and belief; any discrepancies
have been avoided for the same.

DIKSHA RAY

ENROLLMENT NO.
18R/14584

BBA PART 3
ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to Herbalife , Jodhpur for extending me with

the opportunity to carry out my summer internship in the field of Marketing and helping me

to complete it successfully by providing me with the required resources and guidance

throughout the two months.

I would like to thank my mentor Mr .RAGHAV JAIN who extended his full cooperation,

support and encouragement during my stint at herbalife. He provided me with enough

opportunities to challenge myself during the internship and gave me an opportunity to work

on their other live projects simultaneously.

Last, but not the least, I would like to thank my project guide, Mr. Shaji Peter, Asst.

Professor, Department of Management Studies, Aishwarya College, Jodhpur who has

constantly motivated and guided me towards the successful completion of the project. I

would also like to thank all the people who have helped me to complete this project and

make it successful.

DIKSHA ROY
CERTIFICATE

This is to certify that Ms.DIKSHA RAY, Enrollment No.18R/14584 has proceeded

under my supervision her Project Report on “MARKEING STRATEGY ADAPTED BY

HERBEL LIFE – A CASE STUDY ON HERBEL LIFE JODHPUR”

The work embodied in this report is original and is of the standard expected of a

BBA student and has not been submitted in part or full to this or any other

University for the award of any degree/diploma. She has completed all

requirements of guidelines for project report and the work is fit for evaluation.

Shaji Peter Dr. Rishi Nepalia


Training Coordinator Principal
Assistant Professor
Department of management
Studies Aishwarya College of
Education, Jodhpur
INTRODUCTION OF INDUSTRY

Nutrition is the biochemical and physiological process by which an organism uses food to
support its life. It
includes ingestion, absorption, assimilation, biosynthesis, catabolism and excretion.
The science that studies the physiological process of nutrition is called nutritional
science (also nutrition science).

Human nutrition deals with the provision of essential nutrients in food that are necessary to
support human life and good health.
In humans, poor nutrition can cause deficiency-related diseases such
as blindness, anemia, scurvy, preterm birth, stillbirth and cretinism, or nutrient excess health-
threatening conditions such as obesity and metabolic syndrome; and such common chronic
systemic diseases as cardiovascular disease diabetes, and osteoporosis. Undernutrition can
lead to wasting in acute cases, and the stunting of marasmus in chronic cases of malnutrition.
Global Scenario of the Industry

The global personalized nutrition market size is projected to grow from USD 8.2 billion in
2020 to USD 16.4 billion by 2025, recording a compound annual growth rate (CAGR) of
15.0% during the forecast period. The increasing demand for personalized solutions due to
the rising health awareness, the growing trend of digital solutions for healthcare, and the
aging population across regions are some of the major factors that are projected to contribute
to the growth of the market during the forecast period. Furthermore, the shifting consumer
trends, such as an increase in the preference for high-quality nutritional food, according to
their nutrient profile is projected to encourage the development of personalized approaches
for nutrition, contributing to the market growth.

The active measurement segment is estimated to account for the largest share in 2019 in
the market.

Active measurement tools include apps, testing kits, and programs. These usually give a more
accurate and customizable nutrient profile based on an individual’s requirements. Therefore,
the active measurement segment is projected to record the fastest growth in the market due to
the increasing adaptability and acceptance in the market.

The standard supplements segment is projected to account for the largest share during
the forecast period.

By application, the standard supplements segment is projected to account for a larger market
share, followed by the disease-based segment. The changing preferences and rising
awareness about the overall health of individuals have led to an increase in the number of
people opting for standard supplements. People are increasingly becoming aware of
deficiencies and nutrient requirements, which is a key factor that is projected to drive the
demand for standard supplements.

On the basis of end-use, the direct-to-consumer segment is projected to hold the largest
market share during the forecast period.

On the basis of end-use, the direct-to-consumer segment is projected to hold the largest
market share due to the changing preferences of consumers for nutrition-rich products
available in the market to enhance their health. The deficiency of nutrients in the body of
consumers has a long-lasting impact, which has been worrying people over a long time.
Personalized nutrition provides methods and solutions to understand these problems and take
steps accordingly. Due to these factors, the end-use segment is projected to lead the
personalized nutrition market during the forecast period.
North America is projected to account for the largest share in the personalized nutrition
market during the forecast period.

The North American market accounted for the largest share in 2019. The growth of the
market in this region is majorly driven by the rising awareness among consumers about their
health. Key players offering personalized nutrition are present in this region, which is also
projected to contribute to the growth of the market. The region is witnessing an increase in
the number of obesity rates. Besides, hectic and busier lifestyles have encouraged consumers
to opt for specialized dietary supplements that are tailored to their specific requirements.
Furthermore, the rise in income of consumers in the region will also contribute to their
increased buying power, which, in turn, will encourage them to opt for personalized diets as
per their preferences.

Key Market Players

Key players in the global market include Amway (US), BASF (Germany), DSM
(Netherlands), Herbalife Nutrition Ltd (US), DNAfit (UK), Care/of (US), Nutrigenomix
(US), Zipongo (US), Viome (US), Habit (US) and Atlas Biomed Group Limited (UK). These
players have broad industry coverage and high operational and financial strength.
Scope of the report
Report Metric Details
Market size available for years 2018–2025
Base year considered 2019
Forecast period 2020–2025
Forecast units Value (USD Billion)
Application, Product Type, End
Segments covered
Use, and Region
North America, Europe, Asia
Geographies covered
Pacific, and RoW
BASF SE (Germany), DSM
(Netherlands), Herbalife Nutrition
Ltd. (US), Amway (US), DNAfit
(UK), Wellness Coaches (US),
Atlas Biomed Group Limited
(UK), Care/Of (US), Habit food
personalized, LLC (US), Persona
(US), Bactolac Pharmaceutical,
Companies covered (24
Inc. (US), Balchem Corporation
companies)
(US), Zipongo (US), DNAlysis
(South Africa), Sanger Genomics
Pvt Ltd. (India), DayTwo (Israel),
Mindbodygreen (US), BiogeniQ
(Canada), Helix (US), Segterra
(US), Metagenics, Inc. (US), Baze
(US), GX Sciences, Inc. (US), and
Nutrigenomix (Canada)

This research report categorizes the personalized nutrition market based on product type,
application, end-use, and region.

Based on application, the market has been segmented as follows:

 Standard supplements
 Disease-based

Based on product type, the market has been segmented as follows:

 Active measurement
 Standard measurement

Based on the end-use, the market has been segmented as follows:

 Direct-to-consumer
 Wellness & fitness centers
 Hospitals & clinics
 Institutions

Based on the region, the market has been segmented as follows:

 North America
 Europe
 Asia Pacific
 RoW (South America, the Middle East, and Africa)

Recent Developments:

 In November 2019, DSM (Netherlands) acquired AVA (Boston, MA), which offers a
digital personalized nutrition platform that provides nutrition and coaching
recommendations across the health and wellness segments. Personalized nutrition is a
key component in DSM’s nutrition strategy and this strategy unites previously
announced partnerships and investments across key capabilities, including
personalized nutrition delivery platforms, such as Panaceutics, Mixfit, and Tespo.
AVA is currently available in the US and Europe and can be easily customized to a
wide variety of use cases.
 In October 2019, Herbalife Nutrition (US) launched relaxation tea and new immunity
essentials, containing EpiCor, to meet personalized nutrition needs in the North
American region. This strengthens the company’s product portfolio for personalized
nutrition.
 In November 2019, Amway (US) invested USD 200 million to set up a dietary
supplement innovation center in China. This will help in offering customized
solutions and the overall expansion of the company.
 In April 2019, DNAfit (UK) launched a new “Health Fit” DNA test, which
explores several genetic factors affecting the individual’s wellbeing and provides
personalized insights on diets.
 In November 2019, Atlas Biomed Group (UK) launched a new AI-technology-based
Atlas app to provide individually customized food and diet advice that help
consumers improve their gut health. The app worked in combination with the Atlas
Microbiome Test. This strengthened the company’s personalized nutrition portfolio.
Indian Market Size of the Industry

The Indian dietary supplement market grew at a CAGR of 15% during 2014-2019 and
reached a value of US$ 3.5 Billion in 2019. A dietary supplement is a concentration of
essential nutrients that are either extracted from food sources or are artificially
synthesized. The major function of dietary supplements is to fulfill the nutritional
requirements of the human body and is usually consumed in the form of a pill,
capsule, tablet, or liquid. A supplement can provide nutrition either individually or in
combination, depending upon the requirements of the consumer’s body. Dietary
supplements are rich in vitamins, minerals, herbs, enzymes, amino acids, and various
other ingredients. The primary goal of consuming supplements is to fulfill the
nutritional gap in the body in order to prevent diseases and other lifestyle related
problems. Looking forward, IMARC Group expects the Indian dietary supplement
market to continue its strong growth during 2020-2025.

India Dietary Supplements Market Trends and Drivers:


The primary factor driving the Indian dietary supplements market is the increasing
health consciousness among the consumers. Factors such as changes in eating habits,
absence of physical activity and rising sedentary life styles have increased the
occurrences of various lifestyle diseases such as diabetes, blood pressure, obesity,
cardiovascular problems, etc. Moreover, improving awareness levels have also made
consumers more aware on their nutritional requirements. With consumers unable to
fulfil their nutritional requirements through their regular diets, they are now
recognizing the importance of nutritional supplements to fulfill their nutritional gaps.
Other factors driving this market include, rising disposable incomes, upgradation of
the healthcare infrastructure, improving distribution networks, etc.

IMARC Group’s latest report provides a deep insight into the Indian dietary
supplements market covering all its essential aspects. This ranges from macro
overview of the market to micro details of the industry performance, recent trends, key
market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value
chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers,
consultants, business strategists, and all those who have any kind of stake or are
planning to foray into the Indian dietary supplements market in any manner.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India
dietary supplement market report, along with forecasts for growth at the regional level
from 2020-2025. Our report has categorized the market based on product type, form,
distribution channel, application, end use and region.

 Market Breakup by Product Type


o Vitamin and Mineral Dietary Supplements
o Herbal Dietary Supplements
o Protein Dietary Supplements
o Others

 Market Breakup by Form


o Tablets
o Capsules
o Powder
o Liquid
o Soft Gels

 Market Breakup by Distribution Channel


o Pharmacies and Drug Stores
o Supermarkets and Hypermarkets
o Online Sales
o Others

 Market Breakup by Application


o Additional Supplements
o Medicinal Supplement
o Sports Nutrition

 Market Breakup by End-Use


o Infant
o Children
o Adults
o Pregnant Women
o Old-Aged

 Market Breakup by Region


o North India
o East India
o West and Central India
o South India

 Historical, Current and Future Market Trends

 Value Chain Analysis


 Key Drivers and Challenges

 Porters Five Forces Analysis

 PESTEL Analysis

 Government Regulations

Competitive Landscape:

The report has also analysed the competitive landscape of the market with some of the
key players being Amway India Enterprises Private Limited, Herbalife International
India Private Limited, Dabur India Limited, Abbott India Limited, Kraft Heinz India
Private Limited, Himalaya Drug Company, Sun Pharmaceutical Industries Limited,
GlaxoSmithKline Consumer Healthcare Limited, Danone Nutricia International
Private Limited, Patanjali Ayurved Limited, etc.

Nutra-ceutical is a fairly new terms especially for Indians. As the name partly
suggests these nutra-ceuticals are partly food partly vitamis and they offer nutrition
to accompany eating. The product could be is a purified form of food food
material dried and packed in capsules or powder form. This form is not usually
associated with food and even though it offers to have added value beyond food –
consumers are more cautious about using these. The benefits could be
physiological or provide protection against some deficiency.

Nutraceuticals are three kinds – functional foods – like dried pulp or fruits or
beverages which can be made by adding water to powder or in capsule form
containing minerals. Nutraceuticals is a combination of the word – ‘nutrition’
and ‘pharmaceuticals.’ This term was totally uncommon in India untill a about
ten years ago when many companies like Amway, Herbalife, Himalaya drug and
others started offering things like – Karela capsules, Amla capsules or Glucosamin
capsules. Indians were not comfortable to eat such vitamins (except Becosules) as
the belief has always been to eat simple food and draw maximum out of fresh
foods. However, with changing environment and lifestyles people have understood
and many of them swear by the benefits they have from these nutraceuticals.

The name and components for Nutraceuticals varies in different countries – In


Canada, the US – herbal formulations and are considered part of Nutraceuticals
but not in Japan. Regulation in India the Food Safety & Standards Act is expected
to be amended to include this growing category. The Dietary Supplement Health
and Education Act of 1994 has led to expand ‘Nutraceuticals to include vitamins,
minerals, herbs, amino acids and dietary substance for human use as a supplement
diet’.

The regulatory framework of Nutraceuticals in India right now creates some


distinctions between food category items and medicine category items. INdia will
finally follow the US and in time – approval therapeutic products and provide
assurance of safety. Japan is taking the lead in this. Market potential Two areas of
health are very important in India – ‘immunity build up in children and growing
adults’ and ‘boosting physical and mental strength of children.’ Rising health care
costs, a greying population, huge levels of disposable incomes all these are driving
the market for Nutraceuticals.

As per Cygnus Business Consulting & Research, in 2008, the Nutraceuticals


market in India was Rs18.75 billion and this is growing at the CAGR of 21.23%.
The Indian nutrition market is estimated to be US$1 billion; while the global
market is growing at a CAGR of 7%, the Indian market is growing much faster at a
CAGR of 18%. The latent market in India is two to four times the current market
size with 148 million potential customers.

The domestic market for Nutraceuticals is around Rs 4,400 crore. India’s


nutritional supplement market is expected to more than double to Rs 9,500 crore
by 2013. Growth in Nutraceuticals products business will be fuelled mainly
because of the changing lifestyle and increasing awareness about nutritional
supplements. Indian consumers have a penchant for anything that is “natural” or
carries the “herbal” tag. Gullible consumers even get cheated in the process. But
the manufacturers of Nutraceuticals products are trying hard to produce
products that suit the Indian palate.

The rural population in India is 72% and until this market is penetrated, real
success may elude the Nutraceuticals industry. The market will reap benefits for
those products that can clearly provide health benefits to the consumers. Growth in
herbal extracts segments is likely with green tea, herbal bread, garlic capsules, soya
milk gaining popularity in the market. Probiotics, protein supplements, Omega 3
fatty acids, and antioxidants are products that can play a major role in the future
growth of Nutraceuticals industry.

As far as the Indian Nutrition market is concerned, Nutraceuticals need to be


targeted at the bottom of the pyramid population to achieve volume growth. Direct
marketing efforts may take longer to reach the consumer but are a viable means of
reaching out to the consumer. India – an ideal destination India is an ideal
location for manufacturing Nutraceuticals products because of availability of
natural products, good quality fruits and vegetables. India has advantages like
qualified human resources, world-class R&D facilities and varied raw material
aspects that give our country a leading edge.

Growth drivers The factors that contribute to the growth are consumer awareness,
greater health consciousness, changing lifestyle diseases, ageing population,
increase in disposable income, and booming retail growth. Challenges The total
market size in India is still very small compared to the global market. Lack of
awareness and absence of regulations are some of the ills plaguing the sector. The
Indian market is largely a prescription-oriented market. Many pharmaceutical and
Nutraceuticals companies that were trying to promote their products through the
doctor are now adopting a different route, the direct route to the identified end-
user.
Reduction in cost of manufacturing and packaging by marketing the products as
dietary supplements in powder form to keep the intrinsic value alive. A recent
study reported that 70% of patients typically consulted a medical practitioner
before going in for natural therapy.

The problems faced by Nutraceutical companies are 1. Consistent quality 2.


Increase in market competition 3. Increase in product cost This has led companies
to outsource products. Unlike USA, the Indian Nutraceuticals market is
regulated by multiple laws. In the absence of a regularised system for setting up of
manufacturing units for Nutraceuticals products, companies are unable to avail of
subsidies in the products. Due to absence of regulatory guidelines, the
Nutraceuticals are either categorised as foods or drugs. Quality and price control
then becomes a major issue. As a concept, Nutraceuticals is still in its infancy in
India due to low levels of awareness and market penetration.
RAJASTHAN MARKET SIZE OF THE INDUSTRY
COMPANY PROFILE

Herbalife Nutrition is a global multi-level marketing (MLM) corporation that develops and
sells dietary supplements. The company was founded by Mark Hughes in 1980, and it
employs an estimated 8,900 people worldwide.] The business is incorporated in the Cayman
Islands,[4] with its corporate headquarters located in Los Angeles, California. The company
operates in 94 countries through a network of approximately 4.5 million independent
distributors and members.] Their products have been reported to cause liver damage.

The company has been criticized by, among others, hedge fund manager Bill Ackman of
Pershing Square Capital, who claimed that Herbalife operates a "sophisticated pyramid
scheme"[17][18] after taking a $1 billion short position in Herbalife stock. Herbalife agreed to
"fundamentally restructure" its business, in the US but not worldwide, and pay a $200 million
fine as part of a 2016 settlement with the U.S. Federal Trade Commission (FTC) following
accusations of it being a pyramid scheme.[22] In November 2017, Ackman's hedge fund closed
out its short position in Herbalife.

Herbalife Ltd. is a global nutrition company. It offers a range of science-based weight


management products, nutritional supplements and personal care products intended to
support a healthy lifestyle. The company’s product development is focused on four principal
categories: weight management; targeted nutrition, including everyday wellness and healthy
aging; energy, sports and fitness and outer nutrition that capitalize on the mega trends of
obesity and anti-aging. Herbalife was founded by Mark Reynolds Hughes in 1980 and is
headquartered in George Town, Cayman Islands.”

Manika Batra is the new member in the Herbalife Nutrition India health club, joining the
brand endorsed by country’s leading health and fitness icons like Virat Kohli, Mary Kom
and Saina Nehwal.The CWG gold medallist paddler Manika has joined organic nutrition and
health brand Herbalife Nutrition as an ambassador to spread awareness about health and
active lifestyle. Unlike numerous synthetic health supplements in the market, Herbalife
Nutrition addresses the concerns of nutrition and healthy active lifestyle with an organic and
holistic approach towards good health as a way of life.

Historical Overview

In February 1980, Mark Hughes began selling the original Herbalife weight management
product from the trunk of his car. Hughes often stated that the genesis of his product and
program stemmed from the weight loss concerns of his mother Joanne, whose premature
death he attributed to an eating disorder and an unhealthy approach to weight loss.
[24]
According to one Herbalife website, the company's goal was to change the nutritional
habits of the world.[25] His first product was a protein shake designed to help people manage
their weight. He structured his company using a direct-selling, multi-level marketing model.
[citation needed]
In 1982, Herbalife received complaints from the Food and Drug Administration for
claims made about certain products and the inclusion of mandrake, poke root, and 'food
grade' linseed oil in another. As a result of the complaints, the company modified its product
claims and reformulated the product.[26]

The Department of Justice of Canada filed criminal charges against the company in
November 1984 for misleading medical claims in advertisements.[27][28]

By 1985, the company was considered the fastest-growing private company in America
by Inc. after its sales increased from $386 thousand to $423 million over the previous five
years.[29] That same year, the California Attorney General sued the company for making
inflated claims about the efficacy of its products. The company suffered as a result of the
lawsuit and was forced to lay off nearly 800 employees by May 1985.[30] The company settled
the suit for $850,000 without admitting wrongdoing, but discontinued the sale of two
products.[31] In 1986, Herbalife became a publicly-traded company on the NASDAQ, and
rebranded itself as Herbalife International. However, as a result of the negative publicity from
the FDA lawsuit, the company posted a $3 million loss that year.[32][33]

By 1988, the company had expanded its reach to Japan, Spain, New Zealand, Israel, and
Mexico and increased its worldwide sales to $191 million in 1991. In 1993, the company
underwent a secondary offering of five million shares.[34] The company launched a line of
personal care products in 1995 which included fragrances and facial cleansing products. In
1996, the company had expanded its reach to 32 countries, with international sales
accounting for more than half of total sales. The company was sued in civil court by two
former distributors in 1997 for withholding earned income.[35]

In 1999, Hughes attempted to take the company private after asserting that Wall Street was
undervaluing the company. While the board approved the buyout offer, shareholders of the
company filed a suit against the firm because they believed the share price they were offered
was unfair. Hughes eventually abandoned his attempt to buy the company and settled the suit
with shareholders.[26] On May 20, 2000, Mark Hughes died at age 44.[36] The Los Angeles
County Coroner autopsy results ruled that the entrepreneur had died of an accidental
overdose of alcohol and doxepin, an anti-depressant.[37] Following his death, the company
was led by Christopher Pair until October 2001.[38]

In 2002, the company was acquired for US$685 million by J.H. Whitney &
Company and Golden Gate Capital, which took the company private again.[39] Concurrently,
plant sources of ephedrine were removed from Herbalife products in 2002 after several U.S.
states banned supplements containing such herbs.[40]:15[41] In April 2003, Michael O.
Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney
Company.[31] On December 16, 2004, the company had an initial public offering on
the NYSE of 14.5 million common shares at $14 per share,[42] netting the owners $1.3 billion.
[43]
In the mid 2000s, Herbalife upgraded its manufacturing facilities, moving manufacturing
to around 60% in-house, and changed how the company sold its products to distributors.[44]

In March 2014, Herbalife came under investigation by the U.S. Federal Trade
Commission and the state of Illinois.[45] On May 7, 2014, the company announced that it
entered into a deal with Bank of America Merrill Lynch to repurchase $266 million of its
stock.[46]

In July 2016, Herbalife agreed to change its business model and pay $200 million to its
distributors in a settlement with the FTC.[17] The company announced in November 2016 that
Chief Operating Officer Richard Goudis would take over the position of CEO in June 2017
and Johnson would transition to executive chairman.] In August 2017, the company
announced that it would repurchase up to $600 million of its stock.] On April 25, 2018,
Herbalife announced that it had changed its name from Herbalife Ltd. to Herbalife Nutrition
Ltd. The company also announced that its shareholders had approved a two-for-one stock
split. In January 2019, Herbalife announced that it was replacing Goudis after learning of
comments he had made before taking over as CEO that was “contrary to the company’s
expense-related policies and business practices” and inconsistent with the company's
standards and culture.” Former CEO Johnson subsequently took over the role on an interim
basis.

In November 2019, the United States Department of Justice accused two former executive
officers of the company for bribing Chinese officials, including government agencies.[52] The
firm made that move in order to get direct selling licenses, get involved into government
investigations and try to pull out negative media reports about it. According to the
investigation, the alleged bribery claims happened in the period between 2007 and 2016. In
order to resolve those claims, in August 2020, Herbalife agreed to pay $123 million to the US
Department of Justice and the U.S. Securities and Exchange Commission.
PRODUCTS AND SERVICES

Herbalife Nutrition's products include weight-loss and protein shakes, as well as protein bars,
teas, aloes, vitamins, and sports hydration, energy, and personal care products. The
company's original product is the Formula 1 protein shake, a soy-based meal-
replacement shake. The product debuted in 1980 and, as of 2015, was the company's best
selling product accounting for nearly 30% of total sales.

Herbalife's products are produced at the company's five manufacturing facilities in the U.S.
and China as well as third-party manufacturing partners. The company's production process is
based on a 'seed to feed' strategy which the company initiated in the 2010s and allows it trace
where the ingredients in its nutritional products originated. Since 2013, the company has
operated a botanical extraction facility in Changsha, Hunan Province. The facility produces
botanical extracts, including teas, guarana, chamomile, broccoli, and bilberry, for use in many
of the company's products.[62] Before extracts are processed they undergo a botanical
identification program and are tested several times throughout the production process.[] The
processed raw materials from the extraction facility are used at all of the company's branded
manufacturing facilities as well as its partners. As of 2015, 58 percent of the company's
nutrition products were manufactured at Herbalife owned facilities.

In China, the company's manufacturing sites are located in Suzhou, Nanjing. In the U.S., the
company has manufacturing facilities in Lake Forest, California and Winston-Salem, North
Carolina.

Herbalife's claims of health benefits from its products have met scrutiny from the medical
community, consumers, and government agencies.

In 2008, Herbalife was sued after laboratory tests indicated that levels of lead in several
Herbalife products were in excess of California state law and could lead to liver problems
over an extended period of time. The company commissioned its own lab testing and found
that those products did not contain high enough amounts of lead to require special labeling.
TYES OF PRODUCT

1) VRITILIFE

AYURVEDIC NUTRITION

Ayurveda as an ancient science of life has a long history, and its basic principles are valid
even today. vritilife range of products are based on Ayurvedic principles and contains
authentic ayurvedic herbs for the specific health benefits as mentioned in ancient ayurvedic
texts. While following the age-old principles the product is contemporized to meet modern
day lifestyle.

The name “vritilife” has been coined by an amalgamation of the word “vriti” which means
thought or choice in Sanskrit and the word “life” is derived from the brand name Herbalife
Nutrition.

This has a dual interpretation:

 Thoughts of life leading to mindful living


 Making better lifestyle choices for balanced, healthy living.

 NATURAL WAY TO BUILD IMMUNITY

Vritilife Immune Health is for anyone who wants to strengthen their immune system
naturally.

It contain Kalmegh and Tulasi which helps to promote natural immunity and manage
symptoms of common cold.
 AYURVEDA CRAFTED BRAIN SUPPORT

vritilife Brain Health is scientifically formulated with Brahmi extract which help support
healthy brain functions. Brahmi** in vritilife Brain Health provides benefits that help achieve
cognitive resilience and enhance memory. Brahmi** in vritilife Brain Health is a fuel
indicator for Brain performance like learning, memory, focus, accuracy and concentration.

2) weight management
A WAY TOWARDS HEALTHY WEIGHT

Explore a path where to look good means to feel good with a wide range of Herbalife
Nutrition’s healthy and ideal weight solutions. From products that help you take the healthy
route to lose weight to the ones that help you maintain an ideal weight, we’ve got them all.
Tailored with science and nutrients, our products help you reach your goal with balanced
nutrition.
 STRIKE A BALANCED DIET

A. We offer multiple flavours that can turn a monotonous meal into a flavoursome
healthy meal alternative healthy meal is one which fulfills your daily need for all essential
nutrients. Herbalife Nutrition’s Formula 1 Shake Mix makes sure that you never have to
compromise on your nutritional intake and support

 PROTEIN POWER

Herbalife Nutrition offers products to fuel your protein intake which can help control your
cravings whilst boosting your body with energy. Personalized Protein Powder is a convenient
way to increase your protein consumption. High quality* protein helps you to maintain your
energy level between meals and maintain lean muscle mass.
 YOUR NEW HEALTHY MATE

A change in your unhealthy routine is a shake away. Our most versatile product, ShakeMate
is a high-quality* protein drink mix which gives your Formula 1 Shake the perfect company.
Adding on to the deliciousness to your shake, it provides a boost of daily essential nutrients
like Protein, Vitamin D, and Calcium.
3) Energy and fitness
HYDRATE, REBUILD, ENERGIZE

Whether it’s the need of an intense workout, or the energy to kickstart your day - Herbalife
Nutrition offers various products that can leave you feeling energized and alert.

 REFRESH AND REENERGIZE

The secret to having a productive day is to start your mornings pumped with energy. Afresh
Energy drink, infused with orange pekoe extract, green tea extract and natural caffeine
powder, can be enjoyed at any time of the day. To make it a personalized energetic drink for

you, we offer a large variety of flavours that can be consumed hot or cold, for you to choose a
favourite according to what you like best.
 SPORTS NUTRITION

Just as training is important to meet all your fitness goals, the right nutrition is equally
essential to reach your highest potential. From breakfast to post-work meals, we are your one-
stop solution for all nutritional needs to ensure that you recover healthier and faster through
all your intense workouts.

4) TARGETED NUTRITION
FUEL YOUR BODY RIGHT

With our hectic schedules, it’s very common for us to not meet our daily nutritional needs
despite our best efforts.To be more mindful about decisions about our health, it’s important to
meet essential nutritional demands through external sources. With Herbalife Nutrition
Targeted Nutrition range, you can now stay on top of your health easily by giving your body
the specific targeted nutritional support it needs.

 MINERALS AND VITAMINS

Vitamin and Minerals are the two key elements of our diet. They help in maintaining overall
health and wellbeing by ensuring that the body is performing its chemical reactions in the right
amounts. Since consuming Vitamins and Minerals may become tough only through food, these
supplements ensure that the body gets what it needs to function efficiently.

 A HEALTHY HEART
A healthy heart leads to a healthy life. While a well balanced lifestyle is the key to a healthy
heart, we help you achieve that with a range of products with selective ingredients to help
you maintain healthy blood cholesterol levels and triglycerides levels.

 STRONG SUPPORT

As we grow up, our nutritional needs change too. Herbalife Nutrition


offers personalised solutions to promote healthy ageing. Good nutrition combined with a
healthy and active lifestyle is the key to be fit and fabulous at any age.

DEPARTMENTS AND ITS RESPONSIBILITIES


SOCIAL RESPONSIBILITY

From how we do business to the commitment we make to our communities to how we treat our employees and
independent Associates, our Corporate Social Responsibility program is best summed up by our value, ‘We do the
right, honest and ethical thing.

CORPORATE GOVERNANCE
The methods and policies that relate to directing and administering our short-term and long-
term goals as a company are in place to ensure accountability and economic efficiency for
our stakeholders. With consistent focus in these areas, we met independence criteria almost
one year early, and we meet all NYSE-listed public company requirements for
transparency.

To ensure continuing gains in this area, we created the independent post, director-in-charge
of executive sessions, which will be held on a rotating, annual basis by an independent
director, and will facilitate executive meetings of the board’s independent directors.

BUSINESS ETHICS
We uphold the highest ethical standards in the operation of our company. We do the right,
honest and ethical thing, always taking the high road. We strive for consistent enforcement
of compliance regulations and are committed to providing a level playing field for all our
independent Associates. Those who do not comply are disciplined, suspended or
terminated. We require annual ethics training for all employees, worldwide.
EMPLOYEE WELLNESS
We walk the talk – Herbalife® Inner Nutrition and Outer Nutrition support a
healthy, active lifestyle, and we strive to help our employees get healthy and fit.
From complimentary products to lowering individual health insurance costs, we
support and encourage their efforts. Herbalife has been recognized by Men’s

LIVE GREEN
Through environmentally conscious initiatives, Live Green and the 3Rs – reduce, reuse and recycle
– Herbalife focuses on ways to protect our environment. We believe in taking personal
responsibility and in making decisions based not only on financial factors but also on the social and
environmental consequences of our activities.

Herbalife’s downtown Los Angeles office was created using recycled, rapidly-renewable materials
and has earned its Leadership in Energy and Environmental Design (LEED®) certification for its
environmentally-friendly design. We earned credits for efforts in Sustainable Sites, Water
Efficiency, Energy and Atmosphere, Materials and Resources and Indoor Environmental Quality.

Herbalife works on an ongoing basis to encourage its employees and independent Associates to
‘Live Green’ through a variety of programs and education. These include car and vanpools, using
biodegradable and recycled materials, conservation, and reusing and eliminating hazardous
materials such as plastic bags and Styrofoam cups.
It was found that 50% of cases are aware that the consumption of certain nutritional
supplement can result in beneficial effects on their health. In addition, the interviewees
stated they did not agree at all (14%) or slightly agreed (20%) with the statement that it is
possible to control their health status despite their food choices. In contrast, approximately
10% of respondents stated they controlled their own health regardless of dietary choices.
(Table:1)

4.4 Price

As shown by in many cases the respondents stated they always preferred the healthier
alternative regardless of price: they preferred the healthiest option always (30%) and often
(20%) compared to conventional products. Only 5% of consumers said they always chose
the conventional nutritional supplement product rather than the healthiest option. (Table:1)
4.5 Preferred health food

Although respondents revealed a preference for healthy products (50%), they were not
always willing to give up their favorite foods to improve their health status. In particular,
28% of consumers were never willing to forgo their favorite food, compared to 5.4% who
often went without and 18% that claimed to refrain often from favorite food products.
Hence, despite being aware of the close connection between diet and health, the
respondents are not willing to forgo the pleasure of what they eat. (Table:1)
4.6 Consumers Interest in Nutritional supplements

Taking into account consumer familiarity with Nutritional supplements, the research tested
the respondents’ level of knowledge of such products and their purchasing frequency. Data
analysis shows that consumers are not greatly informed on the concept of Nutritional
supplements. In many cases respondents created confusion with light and dietary products
(20%). Moreover, 24% of respondents were unable to provide a definition of Nutritional
supplements. (Table:1)
4.7 Consumption Pattern

With respect to consumption frequency, 21% of respondents stated that they had never
consumed these products, while 28% were occasional consumers, followed by those
reporting a higher frequency of consumption (24%) and those reporting daily
consumption (15%) (Table:1)
Table 1: Customer’s agreement towards Nutritional supplements.

Degree of agreement Non Lo Neutr High Strongl


e w al y
General Attitudes 16% 23 10% 26% 25%
Concerning %

Nutritional supplement
Importance of nutritional 2% 12 18% 20% 48%

supplement %

Awareness of nutritional 14% 10 6% 20% 50%

supplement %

Price: 5% 25 20% 20% 30%


%
Preferred health food 14% 8% 10% 18% 50%
Consumers Interest 24% 22 14% 20% 20%
%
Consumption Pattern 21% 28 12% 24% 15%
%

V.CONCLUSIONS

In this research it is found that awareness about the nutritional products will lead to the
high level of customer satisfactions. It also reveals that price is not an important factor
towards the customer satisfaction. General attitude concerning nutritional supplements
influence the level of satisfaction of the consumers. Importance of nutritional supplements
should be communicated properly to the consumers so that they can feel more benefits of
using these products.
These findings may be useful for government bodies interested in designing public health
programs. In terms of marketing strategies, nutritional supplements need to be promoted with
the aim of making them much more visible and recognizable to final consumers in order to
avoid confusion with other generic health foods.

Data Analysis and Interpretation

1) OBJECTIVE OF STUDY
1. Target Audience

Putting your product or service in front of the right people helps increase your sales and
profits.

2.Online Advertising

Create a professional website for your wellness and nutrition company.

3. Online Advertising

4.Seminars

Put your public speaking skills to good use by conducting seminars or workshops on wellness
and nutrition. This gives you a platform for educating local people on the benefits of good
nutrition and wellness, as well as for promoting your company. Create an outline and pitch
your presentation to local colleges and corporations. Offer your services for free or negotiate
a reasonable fee.
2) RESEARCH METHODOLOGY
3) GRAPHS AND INTERPRETATION
FINDINGS AND SUGGESTIONS
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APPENDIX – QUESTIONNAIRE

1) PERSONEL DETALS

Name :

Date :

Age :

Gender ; :-

I. Male
II. Female
Height :

Weight :

Email:

Mobile Number :

2) Why did you decide to buy the trail pack

I. Curiosity
II. See what the product taste like
III. See how i feel after using the products
IV. Other reasone ( please explain)

3) How satisfied are you with the taste formula 1 shake?

I. Very satisfied
II. Somewhat satisfied
III. Neither satisfied nor dis satisfied
IV. Somewhat dis satisfied

4) How did you find the price of the trial pack ?

I. Very good
II. Good
III. Fair
IV. Expensive

5) What you recommend the product to someone else?

I. Yes
II. No
6) Do you intend to continue with a full product programme?

I. Yes
II. No
7) What is your nutritional goal ?

I. Lose weight
II. Aintain your weight
III. Gain muscles

8) Did you loss your weight ?

I. Yes
II. No
9) How Do You Get To Know About The Herbalfe ?

I. Internet
II. Pamplets
III. Friends
IV. Herbalife Associate

10) Do You Like The Product ?

I. Yes
II. No

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