Network Marketing (M.L.M.) - Herbalife

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Mark Hughes founded Herbalife International in 1980. Herbalife International markets various weight-management products, dietary supplements, personal care products, and herbs. Mark Hughes wanted to produce and market specific products for losing weight easily and effectively. This is because he lost his mother in her unsuccessful struggle against amphetamines to control her weight. However, contradictory reports point his mother’s death to be due to an overdose of painkillers also containing narcotic drugs. 

Mark Hughes wanted a specific product, which would not adversely affect your health but help reduce your weight. Main products of Herbalife are Formula #1, which is a meal replacement consisting of a protein rich drink. Another product- Formula #2 is an herbal tablet and Formula #3 is a mineral or multivitamin tablet. Thermojetics is a system of controlling your weight by consuming herbal tablets. Initially, Herbalife marketed its products as Herbalife's Slim and Trim Program but now it is Herbalife Cellular Nutrition Health and Weight Management System. There is little difference in the components of the two systems.

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Mark set Herbalife with the help of Dr. Richard Marconi, PhD, a nutritional expert with extensive knowledge of nutritional products. At first, Herbalife marketed its products through cable television programs with extensive testimonials. Bumper Stickers and buttons were also effective marketing tools of Herbalife. 

However, everything was not smooth sailing at Herbalife. FDA sent a notice against Herbalife products for misbranding of products. FDA claims that most Herbalife products are effective for treating tumors, diseases, increasing circulation and mental alertness and not reduction in weight. Besides, FDA had many complaints against Herbalife products as people complained of numerous side effects like diarrhea, constipation, nausea, headache, lightheadedness, palpitations, etc. On examining Herbalife products, FDA found potent laxatives and high caffeine content in them. Besides, another accusation against Herbalife indicated its operations in illegal pyramid schemes. 

Such negative publicity brought a sharp fall in sales and income figures of Herbalife. Company survived because of its foreign sales. However, now Herbalife is a publicly held corporation. Most of is products are free of different toxic substances. Mark Hughes, founder of Herbalife died in May 2002 at his oceanfront mansion in Malibu, California due to excessive drinking and intake of antidepressant drugs.

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