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"Brand, you've got personality!"

Thursday, December 13, 2007  by Susan Julien-Willson
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Something in the way she looks, something in the way he lingers in my mind, something in the way she makes me feel. I am drawn to them. I long to have them in my life. I crave their presence.

Bet you think I'm talking about friends or celebrities or co-workers. But I'm not. I am thinking about the personality of grands--and the personas derived from the brand personality. For instance, the way she looks could be about the sophisticated and graceful style of Artistry, the lingering in my mind could be inspired by the powerful, positive presence of Nutrilite. The energetic and engaging voice of Simply Nutrilite sounds like a trusted friend with a great sense of humor. And the classy, elegant presence of Ribbon? Well, that ignites the warmth and sentiment of special celebrations, special people, special moments of giving.

If you were asked to describe the personality of our exclusive brands, what would you say? Try this: How would you characterize Nutrilite if Nutrilite was a person? Is he or she tall? athletic? spunky? spirited? smart? introspective? gregarious? laid back? analytical? detail-oriented? self-absorbed?  If you get into demographics in your persona, you also begin to get a sense of who the target customers are for a brand. Male/female, under 30/over 30, urban/suburban, etc.

Let's take it into more dangerous territory, meaning I am opening this discussion up to invite constructive criticism and observations of when and how we can do better. I am going to use Nutrilite as an example here, but I think internally we look at each brand and ask some of these questions ourselves so that we stay true to the brand personality and promise. Do you see signs of Nutrilite having an identity crisis? Are there places Nutrilite disguises his or her personality and comes across as a different way or as a brief moment of relapse into a prior life? Where do you think Nutrilite is distinctive and shines brightly  ... and where does Nutrilite seem dim and vague? (I know I am opening us up to some feedback that might hurt, but our brands are your brands in that you're selling them! You need to tell us what you think and hear from your customers.)

This exercise is more fun. Suppose Artistry is a celebrity -- actress, musician, athlete, dancer, politician, writer, artist --Who is she? What's her fave color? Is she a trend-setter? fashionista? Mother or career woman or both? Sophisiticated? Glam girl? Quirky? Cute?

What about Personal Accents ... what does this brand look and feel like to you? Do you get the sense the brand is just evolving? That she could be distantly related to Artistry or Artistry essentials? That she embraces the belief that a woman never has too many beads and baubles and accessories -- y'know, less is more, but not when it comes to jewelry--less is less in that case and more is better. : ) Have you  noticed the jewelry is named in the catalog? How does that help define the brand and the customer?

Ribbon. Everyone gives gifts and there are Ribbon Gift Collections for virtually every person, every occasion, every budget. SO, if that's true, Ribbon needs to be one of those personality types that appeal to a wide range of people-- male, female, young, old, teens and tweens, kids, sisters, caregivers, cousins, newlyweds, athletes, sports fans, gadget gurus, coaches, teachers -- and so many others! So, Ribbon has a tough job. I'd say Ribbon needs to be a people-pleaser-always trying to make someone happy. If you think of it that way, then classic elegance is never wrong and rarely unacceptable--right? So, may be that is what Ribbon should be if Ribbon wants to fit the needs of both the gift giver and the gift recipient. So, perhaps, the royal purple color and the elegant presentation of the collection within a black envelope is on target. (definitely worth pondering this!)

Think of some of the national brands with unique and memorable personalities. Philosophy cosmetics ... Hope in a Jar. I don't use it but I know the name. If you watched a commercial on Target that did not show the name, would you know it was a Target commercial? Why?

In some ways, we've created strong personalities for our exclusive brands ... but sometimes the personality is subdued or masked ... and frequently, and certainly true as we transform the business, the brands are evolving to meet the needs of our IBOs who use and who retail, and the customers they're selling products to on a regular basis. As IBOs acquire more and more customers, and let us know of their retailing experiences, we'll be able to shape and define our exclusive brand personalities over time.

Now, please do speak up and share your impressions of our exclusive brand personalities. Do they have some attributes that are outstanding? Strengths we should make shine even more? Do they have some "issues" they should deal with in the near future? (There's always room for growth and improvement, especially when it comes from trusted sources like IBOs who are constructive in their criticism!)

Thank you in advance for commenting. Remember, we're not re-inventing our exclusive brands, but we are definitely open to input and suggestions for tuning 'em up, making them shine. Why? Because you're the ones selling these branded products to customers and we want selling to be a successful experience for you!


Comments

# rdknyvy said on December 14, 2007 10:41 AM:

Hi Susan, I would have to say that until the past 18-24 months, the Nutrilite picture I've "seen" in my head was in terms of grey-tones. With more of research and background information positioning that's been coming out, the colors are starting to fill in. Maybe that doesn't make sense if you don't think in "color" but that's kind of how I perceive brands.

But here's the draw back, or 'cognitive dissonance' that's set up for me. I love a strong price on a strong product. But when you can clearly demonstrate over-pricing, I have a difficult time selling to someone when I know the exact same product is available elsewhere at a much lower price. For me there is a responsibility to the customer that needs to be observed.

Case in point: our Ocean Essentials Omega 3's. I've made the case here before but just one more example. Twin Labs (owned by Dave Van Andel via IdeaSphere? Correct me if I'm wrong) offers the exact same product, sourced from the same supplier -- Ocean Nutritionals Canada -- for about one fifth or one sixth the price per mg, through online third parties and health food stores. And I can get exactly the same product via another third party brand carried at Costco for about 25% of your price, per mg.

Similar stats could be cited for BP blood pressure product -- the exacty same bonito peptide product is available online for about 25% of our price.

Cognitively, it's like trying to drive with one foot on the brake and one foot on the accelerator. In the Nutrilite training module at QU, I think they talk about the product being appropriate for people with "the time and money" to invest in their health. What kind, and what size of 'market space' does that target?

So I'm not fully in the camp of those who want all prices lowered, but there needs to be some competitive horse sense around some of the pricing strategy. And I won't go into the Canadian pricing and par value of the currencies issue again... still an issue you need to address.

In re-reading your request above, I'm not sure I'm completely on target with these comments... I'll give it some more thought and perhaps add later.

With appreciation,

Something that has been a real plus is adding the words "the ultimate dietary supplement" on the Double X label... very helpful positioning. And highlighting the phytonutrient component more.

rdknyver,

Thanks for your comments. The price range of a product line or brand certainly affects the brand image/personality/target audience. I have to checkon some of your comments about Ideasphere and Omega 3. Are you saying the Nutrilite pricing doesn't fit the brand or that it's appropriate for the most part? Wasn't certain what you meant. Thanks, sjw

# ibofightback said on December 14, 2007 8:18 PM:

Susan,

I back up what rdknyver re pricing. There are some products that are 100% directly comparable to Q* branded products having come from the same 3rd-party manufacturer - omega-3 being an example raised a number of times.

While minor variations in pricing are acceptable and understandable, there is simply no way we can either internally (to ourselves!) or externally (to customers!) justify pricing differences of this magnitude.

While I think some of the TEAM affiliated folk have taken this whole area way too far, it does damage the corps. overall credibility both in the minds of IBOs and Customers. Quite frankly, for an IBO interested in health to maintain credibility with their clients, they would have to recommend NOT buying O-3 from Nutrilite.

And that does create an "identity crisis" since we can no longer provide a one-stop comprehensive supplement solution. IMO omega-3 is possibly the single most important supplement people need, yet I cannot in all honesty promote Nutrilite as the answer, at least not without selling at IBO cost or less - which is actually what I usually end up doing.

Not exactly the focus on profit that "first circle" aims to deliver, huh?

Thanks for your clear, direct, and honest communication ... as you know, I cannot respond to what I do not know and pricing of our products is outside of my realm, but I CAN AND WILL point the people who work on this type of thing to the blog and yours and rdknyver's comments. Besides Omega-3 pricing, what do you think of Nutrilite's brand personality? Would love to hear from you and rdknyber on that since you focus on the health products, or it seems you do. Again, thanks. sjw

# ibofightback said on December 14, 2007 8:37 PM:

Oh, and Dave Van Andel is Chairman and CEO of IdeaSphere which owns TwinLabs and I've now discovered also has the rights to Dr Andrew Weil's products. Dr Weil also sells an Ocean Nutritional Canada Omega-3 which is some 30% cheaper than Nutrilite's.

# Bridgett said on December 14, 2007 11:08 PM:

A few minutes on the Internet, with some Google searches pointing to dozens of credible sources reveal:

Dave Van Andel, who was a front man when Quixtar launched, is the CEO of Ideasphere, which aquired TwinLabs (in 2004) AND the Weil Nutritional Supplement line (in 2006). Dr. Andrew Weil is very credible in the health and nutrition field.

AND Dave is on the Board of Directors of Alticor.

Am I the only one who sees this as a MAJOR conflict of interest??

So IBOs are in violation of the Rules of Conduct if they engage in any business that is in competition with Quixtar/Amway, and yet one of the Board of Directors AND member of the FOUNDING FAMILIES can be the CEO of a nutritional supplement company which sells in major stores and online such as GNC and Whole Foods???

My confidence level in Amway/Quixtar’s confidence level in the North American market just went for a slide.

You've GOT to be KIDDING me!

# rdknyvr said on December 16, 2007 1:06 PM:

Susan,

Before you look at the "personality" of a brand like Nutrilite, you need to back up and look at the longer term revenue growth goals and ask whether the market space/demographics it's currently targetted to are going to get you there. I go back to comments from various executives suggesting that the target audience is 'young and affluent'. OK, is that going to get you where you want to go, or is that spin to justify cash cow pricing on certain products, and a cover for lazy marketing thinking in the past?

On the other hand, Nutrilite should be positioned as a premium "aspirational" brand (especially Double X) in all market segments -- 20-40's along with sports nutrtion, 40-60+ with personalized health and 'extending years of wellness', and the other profile types that have been developed around life stages. That's why I like the tag line "the ultimate dietary supplement." That is something that can be positioned and sold. That's also why I really like the athletes you've chosen to profile Double X and Nutrilite. Even if you aren't a world class athelete, vicariously most of us aspire to something like that. And it's these athletes who are developing the "personality" of the brand.

Another thing that needs to be kept in mind is that this brand requires some education of the consumer in order to sell it. That's the biggest "value add" that we bring and for which we are paid. That's also where some of our competitors have been more successful, I would suggest.

Finally, in addition to "personality," you should be asking the fundamental question, what is the mission of this brand? Is it just a collection of products competing with collections of products other companies carry, or is there a sense of a 'transcendent' mission in society that this brand has as a goal, a definable social good it is setting out to achieve and with which IBOs and customers can readily identify? When you have that kind of a vision for the brand, then you can talk about "personality" or "personalities". What are the intangibles the brand can promise and will deliver, that your customers want which go way beyond "the product"? When you get those questions figured out, the rest will fall into place.

 

# rdknyvr said on December 16, 2007 1:14 PM:

Susan, one more thing... to better understand the questions, two books that are must reads on my list:

Trading Up, by Michael Silverstein (Boston Consulting Group)

Seeing What's Next, by Clayton Christensen (HBS Press)

Thanks for the recommendations. I loved the last book you recommended (BrandSimple by Allen P. Adamson) to me and it is what inspired the blog on brand personality. sjw

# rdknyvr said on December 17, 2007 11:41 AM:

Susan, in your reply to IBOFB above, you indicate you will point the people who work on the pricing side to these blog comments. In fact, this very issue around Ocean Essentials Omega 3 pricing was raised to Doug DeVos and Rob Davidson over a year ago by IBOAI Board members. The answer that came back was an obfuscation, so I think the issue is larger, and higher up, than just the bean counters who set prices without having a coherent overall brand strategy/vision to guide them or a grasp of market realities or sales ethics.

# Tom said on December 17, 2007 12:51 PM:

Along with the comment about the new wording on the XX box, I'd like to see the actual ORAC values presented also...especially on the concentrated fruits and vegetables.  Nutrilite told me that they have an incredible ORAC value of over 14,000 and when combined with XX, we get over 17,000 ORAC value!!!

That's a huge selling point as more and more companies are talking about antioxidants.

# CJ said on December 17, 2007 2:38 PM:

Susan,

I have to agree with Bridgett on this. These type of backdoor deals and findings can basically dry up sales because the IBO lacks some confidence in the process and/or corporation which is not good. I think this issue is very much tied to this blog outside of the other blogs on the opportunity zone. We understand as the IBO that the coorporation has to make money, plus money has to be added in for pv/bv bonuses as well as retail profit margins for the IBO(and maybe that is what jacks our price higher for some odd reason). The questions become (1) Why have a product that I can only market at my cost to only make money back on PV/BV (hopefully) if it's coming from the same manufacturer so that I can compete in the marketplace which leads to (2)starting everyone going down the path as seen on the other blogs-are we in competition with the Corporation? and (3)If we are marketing/selling the same exact product from the same manufacturer, what's our competitive edge as an IBO and the corporation as a whole? At that point nothing justifies our "price" and clients and customers will take the time to go to the store and get it(or someone else online) rather than have it sent to their home which jacks the price up even higher unless they order $75 worth of items-and if they don't need that much, then we basically have lost the sale. Most people these days know that Lexus is made and manufacturerd by Toyota, but there are noticable "selling points" that one can point out that clearly defines the justification for higher prices that people are willing to spend. But, it's harder to justifiy to a client, if the reported information about the heart health is correct above when the prospective client in saying to us IBOs "Hey IBO, this heart health at Walmart/by Dr.Weil/ has exactly the same ingredients and potency as yours, so why should I pay $40 more for yours, in other words, what makes yours so special?" That's the question IBOs have to answer everyday and with technology and internet access so widely available, clients and customers are way savvyer and that can kill our sales in an instant. Low sale of product=low pv/bv=low sales and low core line product movement for the corporation. It used to be that the corporation focused on only IBOs buying products for themselves and of course IBOs will buy just to generate pv/bv, but now since the corporation has to start understanding that with this new direction, it has to focus on the end user retail customer standpoint, not the end customer IBO wholesale standpoint. Susan, I know you don't want your blog to become a complaint board as much as open dialogue between everyone, but with everything quixtar/amway is doing to be open and public and moving forward, this is something else that needs to be fixed and corrected soon before. These are just my opinions. Don't get me wrong, we all know there are no quick fixes for some of these issues and Quixtar/Amway is going down the right path with everything they are doing and I'm on board fully, but it's these little nagging issues that if go unchecked can potentially snowball.

CJ, thanks. I want open, honest communication here, you are so correct. It was my hope that commenters could focus on the topic of brands and their personalities ... and find some things we could do better in advertising and marketing to help you sell products to others, apart from the price of the products.  I agree, the pricing is related to the brand, but most of these questions presented here are not issues I can address without knowledge of how prices are determined. I can and will pass them on.  Again, thanks for your honesty and understanding of my role. sjw

# ibofightback said on December 17, 2007 3:26 PM:

Regarding "personality", this pricing is issue is inherently related to the topic. For me, the major selling point of Nutrilite is uniqueness - nobody offers the same quality of product, with organic plant concentrates etc. You can't get it anywhere else.

That's the selling point, that's the "personality" and it is also what justifies the pricing. As other brands dilute that personality by offering similar products, then it no longer becomes a unique selling point. Omega-3 is just a "thin edge of the wedge" type of issue where we do not have a unique selling point and the competitors are better priced.

Already we're seeing competitors move into the "plant concentrate" arena, but still nobody is at the level of Nutrilite. We're still unique there, particularly with organic claims. However, that too is starting to change, an indeed to a certain extent aided and abetted by Alticor who is actively selling organic concentrates from Nutrilite farms to other manufacturers.

Nutrilite's personality is it's uniqueness. It's simply the best, there is no competitor.

Can we try and keep it that way? :-)

Thank you, ibofightback. I think you summarized much of what is being said here and helped me gain some perspective on the Nutrilite pricing and how it relates to the branding/personality/image of the Nutrilite brand. You make a good point ... we need to maintain the quality and uniqueness of Nutrilite brand and its product portfolio. sjw

# Canadian IBO 2 said on December 17, 2007 5:24 PM:

Susan,

I had a prospective customer who was ready to purchase our Omega-3 from me until she found a retailer in Nova Scotia (via the Internet) for less than 1/3 of the cost.  Exact same product, less than 1/3 of the cost.

I agree with ibofightback that pricing is inherently related to this topic, especially here in Canada.  Also, Ribbon is an easy sell in the States, but difficult here in Canada because of the difference in presentation/marketing/perceived value.

Canadian IBO 2, Could you elaborate on how Ribbon differs in Canada from the US in terms of brand image? Thanks for commenting. sjw

# Canadian IBO 2 said on December 18, 2007 9:04 AM:

We only have 5 price levels.  Envelopes and individual albums for each price are not available.  When I show Ribbon to a prospective customer, it looks like all of the other gift cards.  In the US, Ribbon has variety for almost any occassion with individual albums for each price.  The Envelope and individual album with the gift card looks like something that I would give someone.  A gift card glued on a piece of cardboard is not something that I would be anxious to buy and give to someone.  To me, it looks cheesy.

Canadian IBO2,

I think you'll be pleased to hear of some very positive changes happening in 2008 for Ribbon ... U.S. and Canada. You will see the carrier changing. We haven't designed it yet, we just know it needs to be more of a presentation. I am not privy (yet) to all the changes for Ribbon in Canada, but I do know there are some collection enhancements. It's all good. I get so excited about what we're working on ... I imagine how IBOs and customers will react and then I become incredibly energized. So, keep your ideas coming. I will email the Canadian marketers and remind them to read Sales Speak for ideas from the field. Happy Holidays! sjw

 

# CJ said on December 19, 2007 2:09 PM:

Just getting a chance to check out the Simply Nutrilite Videos-very cool. Not sure why they are only for IBO viewing? These would be great on the IBO retail sites...

# CJ said on December 19, 2007 2:22 PM:

On the Simply Nutrilite video, all that would need to be modified for customer viewing is take out the profit potential information and advertising. It would almost be wonderful as an opportunity DVD..

Thanks for the suggestion, CJ!

# ibofightback said on December 19, 2007 3:27 PM:

I agree with CJ on the Simply Nutrilite videos. Why are they only for IBO use and hidden away on Quixtar? There's folk out there googling simplynutrilite - I simply don't understand why Quixtar persists in actively minimizing the amount of positive material on the internet. Why on earth wouldn't you want a potential customer finding this on the 'net and watching it?

Research indicates more than 90% of folk with the internet research products online before making a purchase. Let them find the information!

We hear you, ibofightback. You're going to be so excited and so energized by the positive changes we're planning to make in 2008! We're an outstanding opportunity .... we offer exceptional products ... and the word will be out online and everywhere. 2008 is going to be a year of transformation ... it will have its bumps and barricades, but we're not only going to make it through, we're going to make it through and become stronger and better. Keep the ideas and comments coming. We're listening! I walk through the halls at work and people in Marketing, in Sales, in IT, in Customer Support remark on Sales Speak and IBO feedback ... they're reading this blog, they're listening to what you have to say. (How cool is that?) sjw

# rdknyvr said on December 20, 2007 4:26 PM:

Susan, here's a comment for all the people in Marketing, Sales, IT, Customer Service that read your blog -- how many have taken the Gensona DNA tests (both) and have done the Personalized Health online questionnaire, and perhaps even decided to take the IL-1 Heart Health supplement if they are IL-1 positive? If not, would be curious as to why not. Is price an issue? I note that the cost for both of them at retail in the US is $298.95 (vs. $378.05 in Canada, with currencies at par... why this difference?). And was any market research done on pricing as was done with Simply Nutrilite? Price point should be under $100 for both together. Interesting how '23andme.com' is now offering a GWA including about half a million SNPs for $999 -- that's your whole genome for under a thousand bucks. 'deCODE.com' is doing something similar.

Also note that Interleukin booked sales of $158K on these tests in Q3, which is just about off the bottom of the charts. However, there is no price listed in the new Nutrilite Health Supplement catalogue (although the product is mentioned on p. 9); no index listing for Gensona in the new Choices catalogue; and on the website under "Shop Brands" no listing for Gensona even though it is an exclusive Quixtar brand name.  

Do the brand managers for Nutrilite and Gensona ever talk together? Is there an understanding of how these two brands could work together? Similar 'personalities' and 'passion' associated with these brands... similar "mission" for what they could do? When you listen to the Interleukin quarterly conference calls with Tom Curran, you would think Alticor is going all out to effectively market these products and grow revenue...

 

# rdknyvr said on December 20, 2007 6:36 PM:
P.S. the above was intended constructively... sometimes the tone doesn't convey that intent... :) Apologies if any misunderstandings on that.
# Susan Julien-Willson said on December 26, 2007 8:04 AM:
TO RDKNYVER, IBOFIGHTBACK, CANADIAN IBO 2, CJ, BRIDGETT, and ALL--I asked our Nutrilite marketers to help me out with some of your questions and comments on the Genetic test, the Ocean Essentials pricing/quality, and our brand/marketing strategies. Here are a few responses to your recent inquiries: NUTRILITE OCEAN ESSENTIALS SUPPLEMENT While it is true that Ocean Essential's oils are sold to many other companies, they sell different classifications of oils. The unfortunate part is that these oils cannot always be differentiated by looking at product labels, and therefore, can be misunderstood. All Nutrilite Ocean Essentials oils go through additional processing to create a material closer to the natural form of oil, called TG or triglyceride. TG oils contain the form of fatty acids that one's body digests naturally (more bioavailable). The TG form, used in the Ocean Essentials products, is higher in cost than the ethyl ester material found in many competitive products. In addition, Nutrilite Ocean Essentials products contain natural vitamin E (vs. synthetic) at 100% of the daily value (50% in Balance/Balanced Health version), and mixed natural tocopherols, unlike other brands that contain minimal levels. We feel that the quality of the ingredients selected for Ocean Essentials products reflects the essence of the Nutrilite brand. Nutrilite OE products provide a uniquely designed ratio, utilizing the best, most natural oils available, guaranteed. PERSONALIZED HEALTH 1) Pricing of the Gensona Genetic Test - Yes pre- and post-launch market research was done. Interleukin has exclusive rights (patents) on testing the IL-1 Gene. They are the only company that can test and analyze the IL-1 gene. Our research showed that people would be willing to pay a premium for this exclusive information. This is why the Heart Health Genetic test is priced at a premium over the General Health Test which tests on genes that are available for testing in the public domain. Our market research showed that the price was EXTREMELY competitive and they would even be willing to pay more for the Heart Health Genetic Test. On a separate note, it is important to consider the technology behind the genetic test when looking at competitive genetic tests. Not all genetic testing companies follow the same testing standards and/or have state of the art technology. Congress is looking at this new industry to set some quality standards and testing regulations. As such, the cost of the test is impacted by the technology used. Interleukin is on the frontier of genetic testing technology which directly impacts the quality and standards of the Gensona Genetic Test results 2) Interleukin's Marketing vs. Quixtar's Marketing Strategy As separate companies, Quixtar and Interleukin have their own corporate direction and goals as how they will grow their respective businesses. Interleukin and its board of directors sets their own marketing strategy or business direction to grow their own genetic test sales. Quixtar uses Interleukin's Gensona Genetic test as one tool in their Personalized Health Program in an effort to contribute to the overall Nutrilite dietary supplement sales. Quixtar's current position is that the Gensona Genetic Test is a tool to help individuals determine if they are in need of certain supplements to help them maintain/improve their health - The main focus for Quixtar is to enhance repeat Nutrilite supplement sales. 3) Marketing of Gensona Genetic Tests vs. Marketing of Nutrilite Dietary Supplements The Nutrilite Health Supplement Catalog is primarily focused on the Nutrilite-branded dietary supplements -- that's why the Gensona Genetic test is not featured in the Nutrilite Health Supplement Catalog. Hope these help answer your questions. Thanks! sjw
# Ben said on December 26, 2007 10:47 PM:
Thanks Susan! Great info to pass on to IBO's and clients!
# rdknyvr said on December 27, 2007 11:27 AM:

Susan,

Thanks for your reply, and a special thanks for going to the effort to track down a response to some of the questions a few of us have had. I’d like to reflect on the answers point by point if I may.  

OMEGA 3’s

Triglyceride form of the fatty acid: according to ONC’s website this one of the two standard forms that they supply, as you point out. The low price Omega 3 third party brand that I now buy from Costco at $23 for 240 caps (600 mg per) and same ratio as Heart Health is in the more bio-available triglyceride form. So are many of the other lower priced products I researched. (Good thing I passed my organic chem. and biochem courses way back when so I know what an ethyl ester is – sure isn’t my grandmother’s great aunt!!!  )

Vitamin E/30 IUs of natural form: I’m already getting 75 IUs of Vitamin E in Double X. If I want more, I can order the new Natural E product once you introduce it in Canada. The Costco third party brand also has Vitamin E, although I don’t know how much or whether it’s “natural.” Either way, the Vitamin E that your marketing people are using to argue for up to 600% higher pricing does not support a defensible value proposition.

Uniquely designed ratio: what ratio – the ratio of DHA to EPA? My Costco sourced third party brand has the identical “unique” ratio as Heart Health.

In sum, your marketing people have not justified pricing that is 450-600% greater for pretty much exactly equivalent products in health food stores, online, and major chains. Question for your marketing folks: Does Dave Van Andel offer the triglyceride form in his and Dr. Weil’s much cheaper Omega 3’s available through Twin Labs and the online and retail outlets he sells through? Or instead of mentioning Dave, I should be identifying Alticor’s investment, competing with Quixtar, in Twin Labs through IdeaSphere – am I correct in that surmise?

PERSONALIZED HEALTH/GENSONA

I like Beth Dornan’s characterization from her blog reply last spring: Personalized Health was a “launch and abandon” situation. Your own internal people know that so far it has not met expectations. The numbers of kits sold have been in steady decline since the third quarter after the launch (in a market for genetic testing that’s growing at 30% per year, and that’s before ‘23andme’ and ‘deCODEme’ launched), not to mention the high percentage of kits not returned for processing. The stock price of ILI looks like it’s about to start kissing the bottom side of a buck, and is down something like 86% over the last year. In all the quarterly conference calls, analysts keep asking when sales are going to turn around. Your marketing people can spin and dance all they want but they can’t spin away sales realities and stock prices. What continues to be indecipherable is the Canadian pricing at almost $100 more than US pricing for a set of tests, with the currencies at par.

Testing standards: yes I’m aware of ILI’s CLIA lab standards and the Congressional hearings last year. That’s great but it’s not the reason for the pricing that’s holding back sales. The problem is that you and ILI are not even running at break-even volumes on the Gensona tests. A quick analysis of ILI’s Q3 financials shows that.

“Independent” marketing objectives: Most of the members of Interleukin’s Board of Directors are Alticor senior executives. Are your marketing people trying to tell you that Alticor and Quixtar are tilting off in different directions with independent marketing objectives? On the Q3 conference call, Tom Curran categorically confirmed that Alticor/Quixtar remains and will remain for the foreseeable future the sole and exclusive channel for the IL-1 and General Nutrition tests. It is disingenuous – or dangerously uninformed – for your marketing people to suggest that Quixtar and ILI’s Board are operating independently of each other with respect to objectives. Medically-oriented weight management and osteo-arthritis predisposition tests in development MAY be marketed directly to doctors as a channel, but that is unrelated to the tests we already handle exclusively.

A further comment on supposedly different objectives for Quixtar and ILI on Gensona sales. Alticor is by far the majority shareholder in ILI (last week picked up another 2 million plus shares through debt conversion), and fully owns Quixtar. What are you telling us when you say there are different objectives? Neither company has come close to projections or within light years of being profitable on their genetic tests investments.

As a couple of Diamonds have opined to me the reason Gensona was mentioned in the Nutrilite supplementary catalog but no price was given was because “someone dropped the ball.” And no mention from your marketing people why the Gensona brand fails to be showcased in numerous places on our website and promo materials with other exclusive Quixtar brands. Question: how can your marketing people talk about driving repeat sales of the IL-1 supplement and other Nutrilite supplements if they aren’t driving initial sales of the Gensona products?

By the way, I totally agree with positioning the Gensona tests as one tool for people to use within the Personalized Health framework to identify areas for optimizing their health. But how are your people justifying to Rich DeVos why his $45 million plus investment (so far) in Interleukin has borne little or no returns? It’s a rapidly growing and profitable industry, and with smart people like Google and Kleiner Perkins investing it’s just going to accelerate. But if your folks don’t acknowledge and analyze their mistakes and make course corrections, you (we) are going to see a wonderful growth opportunity continue to go droopy on us, and the leadership in this market space will default to others.

Finally, it’s ‘telling’ the questions your marketing people ignored, particularly the very reasoned commentaries put forward by CJ and IBOFightback.

Thanks again for your efforts to get some feedback. No question that this is the best company and opportunity, and if some of these wrinkles can get ironed out, there is every reason to believe that Alticor will do it’s $12 billion by 2012, and quite possibly make most of those gains right here in the North American marketplace.

With appreciation,

# CJ said on December 27, 2007 1:36 PM:

Thanks Susan!

Another question, what happened to the Slimmetry product that was supposed to come out this month-is it still slated to come out? It seems that having it come out in the very beginning of December would give IBOs enough time to market for the new year weight loss rush...Happy Holidays!

CJ -- Slimmetry is launching in early 2008 -- there were a few delays, but we are planning on its launch soon. Stay tuned! You'll hear more in February and March via What's New, the website, and your Achieve Magazine. Thanks, sjw

# Bridgett said on December 28, 2007 3:19 AM:

Hi Susan,

I think your new title is "Liason Between IBOs and the Marketing Department." :)

.

On a more serious note, it is disturbing that the Marketing Department thinks that we (the IBOs) will eat up what they spoon feed us.

I have been to my share of product seminars annually for both Artistry and Nutrilite. And, in the beginning, when I was young and naive with stars in my eyes, I believed anything and everything the educator/trainer/presenter said. It didn't take long however for me to realize, sadly, that these people were just parroting what the Marketing Department told them.

.

I do not believe Marketing is at fault, other than continuing this extremely dysfunctional relationship. I believe that the executive(s) giving Marketing their directives is/are at fault.

And, what I find soooo frustrating is that I can’t seem to find The Guy or The Gal who is saying, “Hey, Marketing, here’s a new crappy over-priced product for you to convince the IBOs to use and to sell. Good luck or you’re fired!”

.

The new Simply Nutrilite Hawaiian Punch, er I mean, “Antioxidant Juice” is an example of such nonsense.

$2.50 for 8.3 ounces of apple juice with TRACE amounts of “special” juices?

And poor Todd Herring, in order to keep his job, has to defend the $2.22 price tag for the SN food bars, and goes so far as claiming that a Super Mom would pay $2.75 for one of those things.

In the words of Will Farrell character in “Zoolander, “I feel like I’m taking crazy pills!”

And in the words of that 90’s fitness lady Susan Powter, “Stop the insanity!”

Ug.

# e.Rod. said on January 6, 2008 9:21 PM:

Hi Susan,

I just received the communication email from my upline Platinum regarding the timeline for the rebranding of Quixtar and the look/transition of the logo. I know many companies have or are in the process of rebranding - this includes taglines, logos, etc. I personally have nothing against the Amway brand - in fact, the only time I heard of Amway was after I got into the business. Needless to say this is the best biz opportunity I've seen so far, whatever the name may be.  I'm actually bringing the conversation back to the branding of the business opportunity and our future parent company. The currenet "Amway" with the arial black block lettering does not look very appealing, looks actually quite boring, corporate and just doesn't compare to the more hip and more attractive "Quixtar" logo or the logos of our new coreline brands. Are there any plans to revamp the logo so that it is more with the times. Just look at the great job the company has done with Personal Accents, Simply Nutrilite and Artistry. The look of the "Amway" logo looks like it's in need of it's own makeover, especially if the theme over the next year or so is "transformation". This is perfect timing if change is going to happen. With all the technology and software we have on hand, shouldn't this be a simple task? The only thing I ask, is that you really ask a good sized sample of current IBOs to vote on the look when it comes time to revealing several options - this means asking non-Platinums not only Platinums and above for their opinion. Especially since we're the ones who are still building our businesses from the ground up - this is a great opportunity for the company to gain some honest buy-in. Thanks for listening. Hope this suggestion gets passed up to corporate.

e.Rod, Thanks for the suggestions. I know IBO input was sought regarding the new Amway logos. Because the logo will be used internationally, we do not have as much flexibility in changing it as we do with product brands. However, I am not the expert on this subject and will pass it on to our executives. As always, we appreciate and welcome your feedback. sjw

# CJ said on January 7, 2008 7:12 PM:

I also have something I want to throw into the mix regarding branding that I mentioned on Beth's Blog. The media advertising that should take place to put Amway and it's products/services in a more positive, hip light is using the celebrity power we have in the business, especially those who come from the entertainment/sports world who have developed large businesses in the Amway/Quixtar business. One thing I hear all the time is one of the most well-known comedians, Steve Harvey, saying that he was in the Amway business and sold products when he was coming through the ranks in his early years. It's profiles like these that are powerful stories, even if it cost few dollars to pay folks. Anywho, here is the idea brought up by an blogger on ibofightback's website-I see this more of a commercial than a magazine ad or maybe both:

[[[Zoom in to a nice property with a beautiful house. Zoom through the house to a bunch of folk watching a football match, Patriots vs whoever they're beating. Then focus on one of the guys who gets up to go to the kitchen to pick up a beer. As he's walking he talks to the camera (adjust for reality, I don't know the actual story!) ...

"The last time a team went through the season undefeated was the 1972 Miami Dolphins. I was a member of that team. After injuries cut short my football career, a friend showed me a business idea. I checked it out and gave it a shot. Now I have a business in 20 countries which generates a seven figure income each year. My name is Tim Foley, Miami Dolphins Centre Back, and an Amway Independent Business Owner".

Fade

Amway.

World Class Products ...

World Class People.]]]

To add to this, I watched the Celebrity Apprentice (which I love) show a few nights ago and it shows a great parallel to the above scenario.  The task was that the two groups of celebrities had to make the most amount of money selling hotdogs in New York with all the proceeds going to charity. One group, due in part being led by Omarosa, decided not to focus on using their celebrity connections and their own celebrity but more on proper sales techniques. The other team led by Stephen Baldwin and with the big help of Gene Simmons (from KISS), used their celebrity power and connections and sales. End result, the team that used celebrity power made the most selling hotdogs-outselling the other group by almost $40K. If Amway/Quixtar really wants to make a big dent in changing people's mindset, they need to focus on commericals and advertising on not just the nutrilte athelete's and Gabby, but also on the those entertainment/sports giants who are now very successful IBOs in the business. Like I said, it may cost a little to get these folks who aren't IBOs to endorse us, but it would reap big divedends for the corporations and the IBOs in the long run. And I don't know how a competing MLM (Shakelee) got on Oprah's Favorite things show last year with their concentrated cleaning supplies, but that definitely makes a bigger dent in one of our prime demographic markets instead of a few magazine ads (in my humble, non-marketing experience opinion-LOL) in O Magazine. Amway/Quixtar has got get on the stick if this transformation/rebranding is to be of good use...thanks for the opportunity as always!

Thanks for sharing some great ideas, CJ.

# Kenn Doyle said on January 9, 2008 10:51 AM:

Whats The Point?

Isn't having an endorser supposed to help your product? Thats sales and markting 101 right?

I was listening to Gabby Reece's podcast on Jessy Dylans radio show today and at the end she gives her website www.gotogabby.com. I figured I'd go, learn more about her and her endorsement. Wow what a supprise to find out that not only does she not have one word about or product on her site, but shes GOT her own products. They include suppliments, weight loss and others.

What were we thinking??

# CJ said on January 10, 2008 6:14 PM:

Kenn,

I was thinking the very same thing. Going to her site really let me down. It's almost like she is only an endorser for and towards IBOs and not for the general public so that we can easily generate clients. Big let down especially when not one single word about her endorsement or the products shows up on her site. I wonder are the ads of her that we see in Achieve magazine are appearing in the other magazines we are advertising like Redbook, O, and others-that would be quite impressive if it were put in those as well as health related magazines. Not only should we have Artistry ads in these magazines, but they should focus the celebrity behind it. Like for NAO, it should also have the picture of the celebrity person that is endorsing it for us- Jeannie Mai-especially since she's had her own television show on USA. Anything related to simply nutrilite and nutrilte in general should feature Asafa or the other team nutrilite endorsers, Gabby, etc in various fitness magazines-especially runner-type magazines. In cooking healthy magazines, an ad featuring Jason Roberts and ICook. The list goes on and on....The corporation is getting better, but it needs to get on the ball as this major transformation takes place....It's time that Quixtar/Amway begin to flex its muscles and let the world know that we mean business and that this business is the business for the New Millienium and all other copycatters and pretenders to the throne are a very, very distant second if that. Excuse me, got a little excited there-LOL :-)

# Bridgett said on January 10, 2008 10:27 PM:

Regarding Gabrielle (et all)

Endorsements are quite expensive. Gabrielle would be much more pricey for Quixtar if she were our “mainstream” spokesperson, because Quixtar would have to cover all the $$ she’d lose by not endorsing other products.

Sandra Bullock is another example. She’s the Artistry spokesperson OVERSEAS, but not in the U.S. Why? Because she’d have to be paid MEGA bucks by Quixtar b/c she’d have to say no to other revenue streams. And I don’t even think overseas her endorsement is in mainstream advertising.

Let’s face it: Word of mouth is where it’s at. Personal relationships are where it’s at. No amount of advertising will replace that. So we, as IBOs, can use the ads as credibility. But we are going to have to be the ones to bring that info to our customers and new IBOs.

As an example, I’ve bought copies of the many publications in which the SN and AE ads appear—People, Real Simple, O, etc.

With Gabrielle, this is what I’d do for a customer or potential IBO:

*pull out the entire mainstream publication from my bag

*show the cover of the magazine

*flip to the SN ad

*say some bullet points about SN

*pull out the Achieve ad of Gabrielle

* lay it next to the magazine SN ad.

*say something like, “You know Gabrielle Reece, right?” Say some bullet points about her. (I had no idea who Gabrielle was. Sports people and guys (cause she’s a hottie) know who she is. But my sphere of influence doesn’t. So I’d make it like they SHOULD know who she is—-or that their husbands/boyfriends know her.)

*point to the similarities of the ads—the picture of the bar and the SN website.

And the bridge has been built.

Just my two cents of how to work with what we’ve been given. :-)

 

Thanks for your input! sjw

# Billy Bob said on January 13, 2008 3:18 PM:

Have any IBO's had a good success regarding Ribbon Gifts, and would they like to share what and how they did it? If they use a

certain type of folder with pictures and a script. I was pretty well surorised with the 2007-2008 program when they switched to picture catalogs with no explainations of what and how the product gift was. Thanking you in advance

Good idea, BB! Let's hear from our retailing IBOs  ... how do you present Ribbon? how do you find your customers? what are the most popular Gift Collections for customers? do you sell to businesses?  what sales tools do you use most frequently? what sales materials could you use that are currently not offered?  Thanks, sjw

# CJ said on January 14, 2008 12:01 PM:

Bridgett,

I agree with you that word of mouth advertising cannot be replaced and it shouldn't because that's how the business has always been built, but does that mean that's how the business has always have to be built? Media advertising goes hand in hand with word of mouth/buzz marketing. Look at the superbowl ads as an example. Especially if it's a good one, it's talked about for days after the event and sent around via email to thousands of people for months afterwards. I would be quick to completely agree with you that word of mouth is completely where it's at from a cost standpoint, but since the corporation has been advertising anyway these days in TV/Radio/and print, I don't think any of us can 100% support that theory anymore either, but word of mouth/buzz marketing is a definite and powerful driver. But I do like the bridge linking concept, thanks for the tip!

# RHUNDHYE said on May 10, 2008 11:35 PM:

I guess  had read too much rilite about nutrilite and amway in your blog site.  While you people express and sometimes criticize how things are done at IBO and company level, lots of folks here in the Philippines don't know anything about nutrilite and amway at all. In the small city where I live, amway was a flop some ten years back.  I recently registered as an IBO in optimism that we can turn things around this time.  Bottomline: your bloggers I hope should also spare some lines for starters like me and the customers in general.  

RHUNDHYE

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About Susan Julien-Willson

I enjoy attending writing/marketing/advertising seminars and conferences for the inspiration and motivation they provide and I also love participating in a monthly writing group and a book club. On weekends, I am frequently found in the poetry/fiction/business/music sections of Schuler Books, my fave local bookstore, or reading magazines and sipping coffee in their café. You can also look for me on weekends at my family cottage in the summer or movie theaters or the mall in the winter. Evenings and weekends, you might spot me out walking when the weather is warm and sunny, or at the Alticor fitness center a few times a week. I love clothes and jewelry as an expression of my personal style. Because I tend to spend most of my time working, working out, or writing poetry, I don?t do the extent of volunteer work I?d like to, but I have a long list of favorite charities I support, including Juvenile Diabetes Research Foundation, Easter Seals, American Cancer Society, Hospice of Michigan, Gilda's Club, and Habitat for Humanity.

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  • This blog is written by Susan Julien-Willson, Copy Director of Communications for Amway Global.
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