Herbalife rebranding/international PR
Herbalife is a leading company and community in the field of nutrition and healthy lifestyle that markets nutrition and care products alongside a business opportunity for its independent members.
The company, founded in 1980 by Mark Hughes and issued to the public 6 years later, has become a recognized brand in the health industry, and currently operates in 95 markets around the world through entrepreneurs who provide personal support, and a supportive community that inspires customers to adopt a healthy and active lifestyle.
Hughes' vision was to promote a healthy lifestyle through plant-based products.
Although the company encountered regulatory criticisms of its business conduct, Herbalife expanded its operations worldwide, demonstrating resilience and adaptability, as it navigates challenges and implements organizational changes to strengthen its position in the market.
Now, in 2024, the current brand language expresses the company's singular purpose - to help people live their best lives.
The direct marketing model that was ahead of its time
Herbalife operates on the basis of a direct marketing model, based on independent distributors to sell products and recruit new members, thus creating a network of independent contractors.
This MLM structure has been the subject of debate, with criticism that it borders on a pyramid scheme, while proponents emphasize the entrepreneurial opportunities it provides.
Around the world, Herbalife has faced criticism from regulatory bodies and the public, with accusations of unethical business conduct.
High-profile legal battles and settlements, particularly with the Federal Trade Commission (FTC) in the United States, affected its image.
However, Herbalife has also amassed a loyal customer base and distributor network, in recognition of product effectiveness and community building efforts.
"The business model is of direct sales in multi-layered marketing, a legitimate method that people often confuse with the pyramid scheme, which is fraudulent for all intents and purposes," says
Ron Forat, CEO of Herbalife Israel
.
"Since its establishment in the 1980s, Herbalife has chosen to work in direct sales And not in a classic retail model where the brand is just one of many on the shelf.
She chose to market through private individuals who actually buy the products from her at a discounted price, recruit customers and sell to them.
Some of them have online stores, others work by word of mouth, there are many methods and they are constantly evolving.
And there is also an evolution of some merchants into the wholesale sector," says Ron.
You have to remember that this whole method developed long before the age of the Internet and the constant connection to networks. Today, when half of Instagram does affiliate marketing, dropshipping or arbitrage, multi-layer marketing doesn't seem so bad anymore. In this sense, it can be said that Herbalife was ahead of its time, and now that we understand to what extent, it is entering the application market with a new service for its agents that is based on many years of learning.
How does the new branding meet consumer preferences in this era?
Ron Forat./Herballife
"The essence of the company meets many trends demanded by consumers today. From a health point of view, the obesity rate is also breaking records in Israel and therefore a healthier diet is required. Processed food is becoming more common, and the aging of the population also raises the importance of proper nutrition," says Ron .
The second trend is a business-occupational trend.
Mainly generation Z, but not only, are looking to be more independent and flexible at work.
The business model in which you profit from what you sell, when and where is convenient, meets this need.
Those who try to follow the haggling economy usually quickly become disillusioned because even though it seems flexible, it is less profitable than they think. The model allows you to establish a retail business for NIS 247 and you make a profit from the first day because there is no additional investment in licenses, services, space.
There is flexibility.
Communities are created and make the model more desirable and more and more people discover it.
The distributors have learned that together always works better than alone and there are also studies that prove it.
They knew how to create communities that consume the products together.
Some of them combine physical training at all levels, from professional athletes to adults who do walking together or yoga training that accompanies the consumption of the products.
It proves itself" says Ron.
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So how is it different from the pyramid scheme?
"A distributor can recruit additional distributors and create distribution lines to reach more customers. As part of this, the recruiting distributor receives royalties. When you draw it on a page it really looks like a pyramid, but the difference is that a pyramid is a scam and unfortunately such scams imitate legitimate direct marketing companies," says Ron .
"The difference is that in pyramid schemes there is no product. You usually sell a right to something amorphous like leads.
We have a product with scientists standing behind it, nutritionists, doctors.
In thermal pyramids there are usually no offices because there is no point in investing in physical assets. We have factories and distribution centers, this is a big difference. They don't accept for recruiting or for bringing in people who haven't bought products," says Ron.
"Today we have over 12,000 active distributors in Israel who buy products from us and move on a large scale. For some of them it is a kind of supplementary income. They sell products to friends and family, making hundreds to thousands of NIS a month, which always helps, but they have a main job Other.
On the other side of the scale there are people who took it as a full-time job and they are the ones who build the distribution organizations and make sure to reach larger audiences.
Lots of companies try to build communities, for us it's simply built-in in the business model.
In recent years, and especially since the corona virus, technological tools, Telegram bots, and other platforms have begun to develop that help form virtual communities that previously did not know each other and today strengthen each other, meet new people, and there is a lot of community and experience.
If you go to the supermarket and see shelves of food supplements, you usually won't know the difference between the products and the uniqueness of each vitamin.
With us, the distributor sits with you and explains, accompanies, helps in difficult moments involving the dietary change.
It's an advantage that creates an experience that goes beyond buying a product."
What is the conceptual-value background for the new branding?
Over the years, in order to adapt to changing market needs, Herbalife continued to refine its value proposition to consumers and thus became over time from a company focused on weight reduction to a nutrition and healthy lifestyle company.
Now, with the launch of the new branding, Herbalife once again refines its strategy and positioning as the leading community in supporting a healthy lifestyle.
"The rebranding from Herbalife Nutrition to Herbalife exposes us to wider worlds of content. We started as a nutrition company that sells smoothies, snacks and nutritional supplements. Today we create communities that accompany and work together to lose weight and maintain weight - and it has already been proven that communities are a very strong driving force for these goals," says Ron .
"Today we are entering the worlds of technology with the company's application and other tools. We felt that the omission of the word nutrition sharpened our goals. We updated the logo, launched new products, and soon we will launch technological developments that will help our distributors maintain contact with their communities with greater quality. The new branding is more directed For the eyes of consumers who want an active and healthy life, not only food consumption but also a way of life, drinking, sleeping. These are not products but lifestyle habits that the company supports," concludes Ron.
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