Direct Selling

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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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