HERBALIFE International Ltd. is a company founded in 1980 by Mark Reynolds Hughes. The distribution of its products is through the mechanism of multi-level marketing.
Product Analysis
products HERBALIFE consist of food supplements. The company offers a system for weight control based on the integration of the normal diet with nutritional meal replacement products with added vitamins and fiber.
The company claims to use the most modern nutritional studies to make and calibrate their products and nutritional programs also require that adequate consumption of water and a suitable exercise daily if possible.
All the products marketed by Herbalife , except those sold in Chinese market, are not produced by HERBALIFE but by third parties. According to a report of HERBALIFE the three largest suppliers are NBTY (Nature's Bounty), the Italian Fine Foods and Pharmachemie Labs, which provide about 40% of all products marketed by HERBALIFE . [1]
Disputes and sales method
Sympathizers and retailers of products HERBALIFE argue that the multilevel marketing method adopted by the American company is honest and very profitable, critics say the system is more of a pattern Ponzi and that the company does not undertake much to limit the abuses committed by individual retailers. The magazine Altroconsumo
was occupied in May 2004 of the Herbalife products , concluding that they, in addition to cost a lot, do not help you lose weight [2].
In 1985 Hughes was denounced by the Food and Drug Administration, the Ministry Justice and Health for the vaunted virtues medical and healing, "scientifically unproven" of his potions, but to get rich [3].
The company contends that the news report was defamatory.
However, the company has won, since 1980, more than 30 million consumers of its products in more than 70 countries, having obtained its approval of the respective ministries of health.
A study on the composition of the products shows a main ingredient in soy. The products are designed to provide the daily intake of natural vitamins, minerals and proteins, some of them (considered as "energizing") have the property provided exciting ingredients such as guarana, yerba mate, caffeine. In practice, the diet promoted by HERBALIFE consists of:
take their products to replace a main meal (preferably breakfast), leaving the other two balanced traditional meals, to maintain this weight.
For weight loss, the company recommends replacing two meals a day, breakfast and lunch (or dinner).
The daily protein and calorie intake with the nutritional program HERBALIFE for weight loss and for the subsequent control of the weight is calculated based on parameters such as sex, weight, height, age.
According to the company, there is thus increased thermogenesis of cells and thus improving lipid metabolism. The best-known product, known as Formula 1 is recognized in Italy by the Ministry of Health as a food substitute meals (according to Decree No. 519/98 of the Ministry of Health [4]). According to the proponents of
HERBALIFE criticisms stem from the fact that the company, its products, HERBALIFE is opposed to the interests of powerful pharmaceutical companies and that they sometimes use devious ways to sell, difficult to challenge, because of the huge commercial interests at stake. L ' HERBALIFE also does not fall within the "Ponzi scheme", which describes a system where profits are derived solely from fees paid by new investors, as the act of inserting a new distributor would bring no gain to the sponsor ( promoter) in company policy would explicitly prohibit all forms of income arising from the mere recruitment.
Sellers are not required to have training in the medical field, in fact, Herbalife Distributor simply sell the product that has a regular label in accordance with the law, reports, even the instructions for use. Therefore, it is not nutritionists, none of them recommend or prescribe diets: This is one of the most discussed aspects of the system. Just consider that even a pharmacist recommend or prescribe anything, but his profession is regulated.
products in some respects similar and related sales are normally in supermarkets at a cost sometimes less, classified as foods, and are freely distributed both in the traditional sales network in the system of direct selling. Curiosity
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HERBALIFE entered in the 2005 edition of Guinness Book of World Records for the largest conference call ever held in the world. In March 2004, in fact, was conducted a conference to which were attached to 10,424 simultaneous participants, distributors and employees HERBALIFE .
The previous record belonged to the U.S. presidential candidate Howard Dean in 2003 he connected with 3,466 people at once.
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