Multi level-marketing
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This document provides an overview of pyramid schemes and multi-level marketing (MLM). It notes that in a product-based pyramid scheme, 99.88% of participants never make any money due to the mathematical structure. The key differences between an MLM and fraudulent pyramid scheme are recruitment practices, marketed products, pricing, inventory loading, and inventory repurchasing policies. The document then gives a brief history of MLM, noting that Nutrilite Vitamin company created the MLM concept in 1945 and Amway was later formed in 1959 and purchased Nutrilite in 1972.
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©2005-2009 by Alexander Chernev. Professor Alexander Che.docx
©2005-2009 by Alexander Chernev. Professor Alexander Chernev (Kellogg School of Management, Northwestern University) prepared this
case solely as the basis for class discussion. This case is not intended to serve as an endorsement, source of primary data, or an illustration of
effective or ineffective management. To request permission to reproduce materials, e-mail [email protected] No part of this
publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic,
mechanical, photocopying, recording, or otherwise—without a written permission of the author. Rev. 11/1/2009 Case 0804
ALEXANDER CHERNEV
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strategic planning meeting with his staff. The meeting was supposed to delineate a strategy for
Bristol-Myers’ newest offering: a non-prescription acetaminophen1 drug branded as Datril, which
was to be launched later in the spring of 1975. Despite many hours of deliberation, a clear solu-
tion failed to emerge. The main unresolved issue was how to position Bristol-Myers’ new drug to
the general public and, in particular, how to price and promote Datril.
Bristol-Myers was one of the nation’s leading marketers of pharmaceutical and consumer prod-
ucts, with a portfolio of well-known brands such as Bufferin, Excedrin, Windex, Drano, Vitalis, Be-
hold, and Clairol. Bristol-Myers was comprised of three major product groups: the Consumer Prod-
ucts Group, which accounted for 25.8% of the company’s total sales in 1974; the Clairol Group; and
the Pharmaceutical, Health Care, and International Group, which accounted for 51.8% of the compa-
ny’s total sales in 1974. In 1974, Bristol-Myers reported net earnings exceeding $120 million on $1.6
billion in net sales. The cost of goods sold accounted for more than $600 million of the expenditures:
marketing, sales, and administration expenses were in excess of $420 million, advertising and pro-
motion expenses were nearly $300 million, and research and development expenses were close to
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- Copyright is held by Johns Hopkins University and Thomas Layloff for the materials, and all rights are reserved. Materials are provided "as is" and no representations or warranties are provided. Users are responsible for ensuring accuracy.
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was to be launched later in the spring of 1975. Despite many hours of deliberation, a clear solu-
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more than $30 million advertising Bufferin and Excedrin in 1974 (see Exhibits 1, 2 for examples of
print advertisements). In contrast, acetaminophen-based analgesics, initially available only by pre-
scription, were advertised primarily to medical professionals.
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This document provides a history of network marketing from its origins in 1945 with Nutrilite Vitamin company to the present day. It describes how Nutrilite founders Carl Rehnborg, Lee Mytinger and William Casselberry created the multi-level marketing concept. It then discusses the growth of the industry in subsequent decades, challenges from regulatory bodies, and the rise of major companies like Amway. The document concludes by noting that network marketing has grown to a $125 billion industry involving over 150 million distributors globally while still involving less than 1% of the population.
Program Management: North American Philips Lighting Corporation
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Session3
This summary provides an overview of the key points from the document:
- The document discusses a work that is licensed under a Creative Commons license. It states that use of materials from the site constitutes acceptance of the license terms and conditions.
- Copyright is held by Johns Hopkins University and Thomas Layloff for the materials, and all rights are reserved. Materials are provided "as is" and no representations or warranties are provided. Users are responsible for ensuring accuracy.
- The document is a session on drug manufacture, industrial pharmacy considerations, quality assurance, and regulation. It covers topics like GMP, requirements for domestic manufacturing, brand vs generic drugs, and procedures to prevent counterfeiting.
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NewCorp developed a new once-a-day non-narcotic drug called NewProductTM CD to treat ADHD and compete in the lucrative $1 billion per year ADHD drug market dominated by Ritalin. However, due to a lack of effective marketing and market research, NewProductTM CD only achieved 25% of its anticipated 30% market share goal within 6 months of launch. The document outlines several marketing strategies and research approaches NewCorp should have utilized before and after launching NewProductTM CD, such as following Dr. Latta's NP/4P research paradigm, conducting consumer surveys and trials, creating targeted television and print ads, and sponsoring educational programs, to better understand customer needs and promote awareness of
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-- June 2024 is National Volunteer Month --
Check out our June display of books on voluntary organisations
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一比一原版新西兰奥塔哥大学毕业证（otago毕业证）如何办理
一模一样【微信：A575476】【新西兰奥塔哥大学毕业证（otago毕业证）成绩单Offer】【微信：A575476】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信：A575476】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
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- 5. In a product-based pyramid scheme, 99.88 per cent of participants never make any money. In any pyramid scheme, it's a mathematical fact that 88 per cent of participants will be on the bottom level.
- 7. What differentiates an MLM from a fraudulent pyramid scheme?
- 8. Recruitment The Marketed Good Price Inventory loading Inventory Repurchase
- 10. 10 Carl Rehnborg, Lee Mytinger and William Casselberry of Nutrilite Vitamin company created the MLM or Network Marketing concept in 1945.
- 11. 11 Rehnborg acted as “scientific advisor” telling distributors Nutrilite supplements contained a “secret base of unusual therapeutic value.” Nutrilite Products
- 13. 13 A “how to get well and stay well” booklet was the primary sales piece representing Nutrilite as effective against almost every disease known to man. Nutrilite Products
- 14. 14 The FDA executed many product seizures and ultimately issued a consent decree dated April 6,1951 against Nutrilite and the booklet was banned. Nutrilite Products
- 15. 15 1953 Top Nutrilite distributors began selling for Numanna Labs resulting in Nutrilite filing suit citing the 2-year non-compete as part of their distributor agreement. Nutrilite Products
- 16. 16 The FTC later ruled Nutrilite’s 2-year non-compete in violation of Fair Trade Acts. Nutrilite Products
- 17. 17 1950 Rich De Vos and Jay Van Andel began a Nutrilite distributorship that peaked at over 2,000 distributors. Nutrilite Products
- 18. 18 1959 Rich and Jay form American Way Association (Amway) selling household cleaning products while continuing their Nutrilite distributorship.
- 19. 19 1972 Amway purchases Nutrilite from Carl Rehnborg’s estate.