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    Direct Selling

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    Aindrila Bera
    Direct selling refers to selling products directly to consumers outside of typical retail locations. Some key points: - It often eliminates middlemen like distributors and wholesalers. Products are sold through single-level sales, home parties, or multi-level marketing structures. - Reasons for its popularity include low business startup costs, opportunities for extra income, flexibility, training and mentorship for salespeople, and performance-based pay. - Major companies in India include Amway, Avon, Oriflame, Herbalife, and Tupperware. They employ strategies like multi-level marketing, home parties, networking, and incentives to recruit and compensate salespeople.

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    Direct Selling

    Uploaded by

    Aindrila Bera
    179 views32 pages
    Direct selling refers to selling products directly to consumers outside of typical retail locations. Some key points: - It often eliminates middlemen like distributors and wholesalers. Products are sold through single-level sales, home parties, or multi-level marketing structures. - Reasons for its popularity include low business startup costs, opportunities for extra income, flexibility, training and mentorship for salespeople, and performance-based pay. - Major companies in India include Amway, Avon, Oriflame, Herbalife, and Tupperware. They employ strategies like multi-level marketing, home parties, networking, and incentives to recruit and compensate salespeople.

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    Direct selling refers to selling products directly to consumers outside of typical retail locations. Some key points: - It often eliminates middlemen like distributors and wholesalers. Products are sold through single-level sales, home parties, or multi-level marketing structures. - Reasons for its popularity include low business startup costs, opportunities for extra income, flexibility, training and mentorship for salespeople, and performance-based pay. - Major companies in India include Amway, Avon, Oriflame, Herbalife, and Tupperware. They employ strategies like multi-level marketing, home parties, networking, and incentives to recruit and compensate salespeople.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    179 views32 pages

    Direct Selling

    Uploaded by

    Aindrila Bera
    Direct selling refers to selling products directly to consumers outside of typical retail locations. Some key points: - It often eliminates middlemen like distributors and wholesalers. Products are sold through single-level sales, home parties, or multi-level marketing structures. - Reasons for its popularity include low business startup costs, opportunities for extra income, flexibility, training and mentorship for salespeople, and performance-based pay. - Major companies in India include Amway, Avon, Oriflame, Herbalife, and Tupperware. They employ strategies like multi-level marketing, home parties, networking, and incentives to recruit and compensate salespeople.

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    © All Rights Reserved
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    of 32

    PRESENTED BY:

    AINDRILA BERA
    AKANSHA RANI
    DEEPAK KUMAR SINGH
    EKTA AGARWAL
    NISHA NUPUR YADAV
    OLGA DAS
    SUBHAM MISHRA
    SIB SINGH
    TRISHA ROY
    NIKHIL KUMAR SINGH
    Definition
     Direct selling refers to selling products directly to the
    consumer in a non-retail environment. Instead, sales
    occur at home, work, online, or other non-store
    locations.
     This system often eliminates several of the middlemen
    involved in product distribution, such as the regional
    distribution center and wholesaler. 
     The products sold through direct sales are usually not
    found in typical retail locations.
    Direct Selling Model
    Types of Direct Selling
    • Single-level Direct Sales: This type of sales is done one-on-one, such
    as through door-to-door or in-person presentations.

    • Host or Party-Plan Sales: This type of sales is done in a group setting,


    usually involving the distributor or rep doing a presentation in their home
    or another person's home.

    • Multi-level Marketing (MLM): Multilevel marketing (MLM) is a strategy


    that some direct sales companies use to encourage existing distributors
    to recruit new distributors who are paid a percentage of their recruits'
    sales. The recruits are the distributor's "downline." Distributors also
    make money through direct sales of products to customers.
    WHY DIRECT SELLING?

    LOW (OR NO)


    RISK EXTRA INCOME FLEXIBILITY TRAINING AND PERFORMANCE ENCOURAGE
    BUSINESS MENTORSHIP PAYS WOMEN
    OWNERSHIP EMPOWERMENT
    • Operating in over 100 countries
    with a market size of USD 182.8
    billion.
    • With growth in consumer
    markets and increase in its
    penetration to globally
    comparable levels, the industry
    has the potential to reach a size
    of Rs.645 billion by 2025,
    according to a recent KPMG
    report.
    • In India1.8 million youth will
    make carrier in direct selling
    Industry till 2025.
    INDIAN TRENDS BY PRODUCT
    ENTRY AND GROWTH
    OF AMWAY
    • Entered India in 1995
    • Sales were around Rs 100 crore in 1998, Rs
    250 crore in 2000 and Rs 500 core in 2001.
    • Reported a turnover of Rs 800 crore in
    2007, Rs 1790 crore in 2010 and Rs 2130
    crore in 2011
    • Has over 42% share of the Direct Selling
    Market Country’s number ‘1’ Direct Selling
    FMCG company
    AMWAY USES MULTI
    LEVEL MARKETING
    MODEL
    PRODUCT OFFERED
    DIRECT SELLING
    •
    STRATEGIES
    Sold through a network of Amway
    Business
    Owners(ABOs) across the country
    • Amway recruited more than 34,000
    sale persons-cum-distributors in the
    very first year of its operations
    • Now there are more than 5,50,000
    distributors across the country
    • Any adult can enroll as an Amway
    distributor without any payment
    TUPPERWA
    RE
    • FOUNDED – 1948 in Leominster,
    Massachusetts
    • FOUNDER – Earl Tupper
    • HEADQUARTERS – Orlando United
    States of America
    • REVENUE – US$2.26 billion
    • NUMBER OF EMPLOYEES – 13500
    • PARENT – Tupperware Brands
    • PRODUCTS – Preparation, storage ,
    serving products for the kitchen and
    home, and beauty products.
    DIRECT
    SELLING
    STRATEGY
    • Tupperware is definitely an iconic name in the global direct selling
    industry.

    • Tupperware has been a profitable business, generating more than 10%


    operating profit each and every year.

    • Tupperware main strategy is party plan.

    • Tupperware’s next strategy that contributes to this product branding is


    awarding its sales team with a lucrative income together with the
    leadership development plan.

    • The most important direct selling fundamentals adopted by Tupperware


    is networking segment.
    ORIFLAM
    E
    International beauty company operating in 60
    countries through direct selling
    • FOUNDED- 1967
    • FOUNDERS- Jonas & Robert Jochnick
    • HEADQUQRTERS- Schaffhausen, Switzerland
    • REVENUE-$5.9 Billions (2019)
    • PRESIDENT & CEO- Magnus Brannstrom
    • No. OF EMPLOYEES- 9000
    • No. OF DISTRIBUTORS-3 Millions
    • CATEGORIES- skin care ,
    wellness,
    cosmetics,
    fragrance,
    personal & hair care
    Marketing strategy
    • Oriflame uses Multi Level Marketing strategy
    • One of the 1st companies to get a licence for direct
    selling in China
    • online platform is also being used to sell the products
    ABOUT HUL
    HUL IS THE MOST ADMIRED FMCG
    COMPANY OF INDIA GIVING TOUGH
    COMPETITION TO MANY OTHER
    PLAYERS IN THIS SECTOR LIKE
    ITC,NESTLE ,P&G .

    HUL HAS A FLAT ORGANISATION


    STRUCTURE.

    ITS UNDERSTANDING OF CONSUMER ,


    LEVERAGING TECHNOLOGY &
    INNOVATION TO CONNECT WITH THEM
    STANDS APART.

    THE DEEP INSIGHT AND ITS


    CONTINUOUS R&D IN MARKETING ITS
    PRODUCTS MAKE THE COMPANY TO BE
    A PART OF EVERYDAY LIFE OF EVERY 2
    OUT OF 3 INDIANS.
    DIRECT SELLING STRATEGIES

    • PAN PYRAMID STRAGGLING PORTFOLIO


    • PUSHING CONSUMER FOR MORE USAGE
    • COMPETITIVE & COMPELLING
    COMMUNICATION
    • HIGHLIGHTING BENEFITS
    • INCREASING CONSUMPTION IN RURAL
    MARKETS
    • STEPPING UP FRONT END EXECUTION
    • BETTING ON BIG STARS FOR
    ADVERTISING
    • BIGGER, BETTER & FASTER INNOVATION
    • LEVERAGING INFORMATION
    TECHNOLOGY & SOCIAL MEDIA
    HERBALIF AT A
    E GLANCE
    • a global nutrition company
    • founded by Mark Hughes in 1980
    • operates in 94 countries
    • 4.5 million independent distributors and members (approx.)
    • 4.89 billion US$ in 2018
    • More than 8900 employees (2018)
    • Michael O Johnson- (Chairman & CEO)

    PRODUCTS
    • Weight management
    • Dietary supplements
    • Personal care
    • Sports nutrition
    MARKETING
    STRATEGY
    • Multilevel marketing (MLM) strategy
    • used to encourage existing distributors to recruit new distributors
    • pyramid scheme earning
    • PROBLEM- use money from new recruits to pay people at the top rather
    than those who perform the work
    • paid out from either commissions of sales made by the participants directly
    to their own retail customers or commissions based upon the wholesale
    purchases made by other distributors below the participant who have
    recruited those other participants into the MLM
    • company’s financial gain at the cost of participant’s financial loss
    ABOUT AVON
     Avon Products, Inc. is a world’s No. 1 direct seller of beauty
    products Avon offers its customers not only a wide
    assortment of cosmetic products but also jewellery, home
    decoration items, accessories and wellness products.
     It was founded in 1886 by a 28-year-old David H. McConnell
    who sold books door-to-door and gave out perfume to entice
    women to buy his books.
     It started with California Perfume Company (CPC) in New York.
    In October, 1939, the company was changed officially to Avon
    Products,Inc.
     As the world's largest direct seller, Avon markets to women
    in more than 100 countries through over 6 million active
    independent Avon Sales Representatives.
     Avon has been responsible for breaking the conventional
    mould and bringing the cosmetics counter to our doorsteps.
    AVON’S COMPETITIVE
    STRATEGIES
    AVONS LADIES-Its core element is its focus
    on women worldwide, hence in order to retain
    customers and garner a good customer relationship
    they hire women representatives widely known as
    AVON LADIES.
    BUNDLE SELLING-Bundle selling is a
    practice of marketing, promoting and selling an
    additional related or unrelated product with the
    main product.
    INTERNET MARKETING-Another popular
    and cost effective sales strategy adopted by many
    Avon dealers is writing informative articles in
    websites. These articles are linked to their Avon
    FOREVER LIVING PRODUCT
    Who WE Are!
    Industry- Privately held Multi-level marketing

    Founded - 1978 by Rex Maughan

    Headquarters – Scottsdale, Arizona, United states

    Products- Aloe vera and bee based products

    Revenue- $13.6m(2018)

    Employee - more than 4000 in 2010

    Operating in more than 137 countries and 9.3 million distributors


    Direct selling strategy
    Team marketing

    Personal Retailing (43% retail profit)

    Team Building Bonus

    Leadership bonus
    Mi Lifestyle Marketing Global Private
    • Limited
    Mi Lifestyle Marketing Global Private Limited was incorporated on
    14 March, 2013 and is located in Chennai, Tamil Nadu.

    • The company has three directors - Kolla Sathya Narayana,


    Hackeem Abdul Rahim, and others.

    • The company is a manufacturer of agro care, body care, grocery,


    health care, nutritional care, personal care products

    • Products & Services: Health Drink, Nutrilife, Maha Bhringraj Herbal


    Hair Oil, Immuno 3 Plus, Diabalife Tablet, Radiant Glow Face Wash,
    Neem Soap

    • Mi Lifestyle Marketing Global's operating revenues range is INR


    100 cr - 500 cr for the financial year ending on 31 March, 2018.
    The total paid-up capital is INR 1.32 cr.

    • Online presence with the portal indiashoppe.com gives them more


    penetration. They have tied up with the big names in the logistics
    industry to deliver the products on time to the customers.
    Direct Selling
    • Strategies
    An individual can choose either to be a Consumer
    & be eligible to earn monthly incentives by

    • Or become a Distributor & be eligible to earn


    weekly incentives also.
    • FREE BUSINESS OPPORTUNITY
    • Registered distributor, will able to get products at
    DP (which is less than MRP).

    • 3 simple steps:
     Purchase
     Use
     Recommend (Word Of Mouth
    Recommendation)

    • Various types of incentives :


     Sales Turnover Incentive (weekly)
     Performance Bonus (monthly)
     Rank Commission (monthly)
     Royalty Income (monthly) Indiashoppe.com
    Limitations
    THANK YOU!

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