1. Provide a description of the product/service and a brief history of the firm?
First and foremost, Melaleuca have over four hundred products that consist of natural plant-based ingredients; that have been beneficial to many individual members health and well-being. The products are items that are in different categories, these include; nutrition, personal care, home cleaning, and cosmetics products. Melaleuca have paid millions of dollars to initiate and operate in several studies and researches; which, makes all the products scientifically, clinically and environmentally protection agent (EPA) approved all products as highly performance quality products. (Vandersloot,1985). Melaleuca have been established for three decades which in fact, makes it thirty-five years old; the company began in 1985. It began as a small start up in the state of Idaho and has turned into a billion-dollar company that operates around the globe. Melaleuca is one of the biggest online shopping club and catalog retailers in the United States. Its goal is to not only help with improving health and the environment but to help individuals improve their financial status. The Melaleuca shopping club is one where individuals become members simply by referring people. Commissions are paid to the member each time the referees purchase any products. Additionally, if these referees become preferred customers it automatically means the member will have a longstanding income. Over 3.6 billion has been given to customers as commission payments.
2. Explain your current or possible global marketing efforts?
Melaleuca has operations in 19 countries currently, which indicates that it invests in global marketing efforts (Vandersloot,1985). The company can increase their global marketing by factoring in a variety of issues. According to Marshall & Johnston (2014), market research is a huge factor that needs to be addressed whenever a company is looking to conduct business in other countries. It is important for the company to review data. Firstly, is the data easily accessible in the country the company wishes to conduct business in. Another factor is whether or not the data available is dependable and comparable. If Melaleuca is unable to get adequate data from a country, then it will be difficult for them to access whether or not conducting business in the country is viable. It is imperative that they first focus on countries that have adequate information as this will allow them to perform a more accurate market research.
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3. Explain the organization’s mission. Provide its mission statement or create one if necessary?
Melaleuca’s mission statement is ‘Enhancing the lives of those we touch by helping people reach their goals’. According to Marshall & Johnston (2014), a mission statement shows what a company’s purpose is and why it is in existence. A mission statement sets a company apart from others and shows what the company is endeavouring to do. In the case of Melaleuca its mission statement is definitely in line with what it offers. For instance, ‘helping people reach their goals’, this is evident in how it is assisting people make an income by referring people. Also, “Enhancing their lives’, financial well-being is an important factor in life and being able to reach this improves an individual’s life. In addition, the products that they make are all meant to improve physical and environmental wellness.
4. Explain your competitive strategy?
According to Marshall & Johnston (2014), competitive strategy is a plan that shows how a company achieves its mission. Three useful components of strategy include, differentiation, low costs and focus. Melaleuca uses a form of marketing that is different, this is seen in the way they gain customers. Customers are encouraged to market their products because they will earn a commission. Also, they are able to market the products easily because they are using them. My competitive advantage is using zoom meetings to reach many people and give them my testimonial on how the products and services have been beneficial to me.
5. Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis for the organization?
According to Marshall & Johnston (2014), a SWOT analysis is the analysis of strengths, weaknesses, opportunities and threats that a company can use in its marketing plan.
Strengths
When it comes to strengths, Melaleuca has a number of strengths, one of them is that it uses a unique marketing strategy which encourages people to market its products. Also, it is a global brand that has built its business on providing products and services that promote wellness.
Opportunities
It also has a lot of opportunities; it can widen its product range considering it already has a good customer base that is loyal. It can factor in what products can compliment the already existing products. There is the opportunity of opening operations in more countries, considering that they have done this already it will be easier for them to know what to look for in order to be successful.
Threats
There is a threat that other companies in that sector may also begin to use their marketing strategy, and this will take away its competitive advantage. The competitive advantage of offering commissions on referral is something they must try to retain.
Weaknesses
One of its main weakness is that some people may wrongly market their products, which may lead to one time customers and not customer loyalty. Also, Melaleuca must not rely on referrals in order to market their products, this could lead to revenue leakage once a competitor copies this marketing strategy
References
Melaleuca. (Vandersloot,1985). www.melaleuca.com
Marshall, W.G. & Johnston, W.M. (2014). Marketing Management. (3rd Ed).
