Hindustan Lever's Foray into Network Marketing
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Case Details:
Case Code : MKTG093
Case Length : 30 Pages
Period : 1996-2004
Pub Date : 2004
Teaching Note :Not Available Organization : Hindustan Lever India Ltd. (HLL)
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Countries : India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Oriflame India Pvt. Ltd. (Oriflame)
Swedish cosmetics major Oriflame Cosmetics entered the Indian market towards the end of 1996 and was credited with introducing the concept of multi-level marketing in India. Oriflame products were sold through a direct selling system where company distributors sold to people they knew as opposed to random door-to-door sales...
Avon Beauty Products India Pvt. Ltd. (Avon)
The mission statement of Avon emphasizes the company's aim to be the best at understanding and satisfying the product, service and self-fulfillment needs of women globally...
Tupperware India (Tupperware)
The Tupperware Company entered India in November 1996. It started its operations from New Delhi. It appointed 15 distributors in the first 12 months itself. The company achieved this by directly recruiting candidates and training them, through a specially designed 14-week training program in Delhi and Mumbai...
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Modicare Ltd. (Modicare)
Modicare was created in 1995 as the largest and the only Indian MLM company in the country. Operations started in March 1996 with a portfolio of 12 products and 300 distributors...
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Hindustan Lever Network (HLN)
A dominant player and market leader in the fast moving consumer goods segment, HLL forayed into direct marketing in 1999 with a premium brand of personal care products for women, with women acting as consultants.
Aviance, the brand name under which the products were sold, was limited in its domain and scope of operation.
It offered customized beauty solution and a range of cosmetic and skin care products to its consumers...
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Exhibits
Exhibit I: Direct Selling Companies in India
Exhibit II: Compensation Plan for Oriflame
Exhibit III: Oriflame Products and Prices
Exhibit IV: Avon Products and Prices
Exhibit V: Tupperware's Party Plan
Exhibit VI: Tupperware's 'Food Preparation and Storage' Product Range
Exhibit VII: Modicare Products and Prices
Exhibit VIII: Amway Products and Prices (2004)
Exhibit IX: Income Scheme under the Amway Business Plan
Exhibit X: New Products to be Launched by Amway in Mid-2004
Exhibit XI: HLN Products and Prices
Exhibit XII: Income Scheme under the HLN Plan
Exhibit XIII: Training Programs Conducted by HLN
Exhibit XIV: Problems Faced in Network Marketing in India
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