Selected Case Studies - Manufacturing & Distribution
Isagenix International Case Study
Isagenix is a health and nutrition company that markets its products through a network of independent associates. The company was established in 2002 in the United States, and quickly added Puerto Rico and Canada to its reach.
Summary
In 2005, Isagenix was ready for international expansion, and Manzimvula was retained to undertake an analysis of the firm’s readiness to do business internationally. We were simultaneously charged with management of the Canadian Product Regulatory Compliance Project.
Manzimvula’s Role & Value
There are significant complexities to expansion of a network marketing model internationally. Organizational communities remain successful when ‘home office’ imperatives and lessons from past successes are effectively balanced with adaptation to new cultural norms. Manzimvula’s Integrative Strategy approach unites these (often conflictive) priorities, providing insights into potential for success and capacity for growth.
Our full analysis was completed and presented to the Board of Directors and Senior Management Teams in 2006. The decision was made to correct any deficiencies and to ensure each department was able to support international expansion. In May 2006 the initial markets were selected and by September the projects were initiated.
For nine distinct markets, we led projects focused on corporate structure, tax planning, risk analysis, systems development, finance, logistics, manufacturing, product and regulatory approvals, establishment of infrastructure, staff acquisition and training, sales and marketing materials and the formal launch of the market. Due to the complexity of these diverse projects, the project plans for each new market were divided into six phases: Market Analysis & Selection, Market Entry (Corporate), Market Requirements, Internal Documentation, Start Up & Grand Opening, and Post Launch Business Plan.
Concurrent with international expansion, a technology project was initiated to create a new sales, ordering and reporting environment and support system for the Isagenix Field Associates. Manzimvula’s role in this began when the new system was launched and it was necessary to create buy-in from field leaders and their teams.
We designed and delivered (over a period of six weeks) a series of daily live webinars, training groups of Associates on the system, and answering their questions directly.
Our Results
Manzimvula delivered road maps for international expansion to 35 markets around the world. Hong Kong was the first market to be opened in March 2007. This was followed by the opening of Australia and New Zealand in October 2007 and then Taiwan in June 2008. Rollout to five additional markets was well underway and handed over in June 2009 to the corporate team to complete.
The registration submissions for all Canadian products were remitted on time.
The new technology system launch was ultimately a huge success, and provides the Field Team with a world class, state of the art system.
Lifestyles Global Network Case Study
With physical operations in 17 countries and marketing reach into 35 distinct markets on every continent, Lifestyles Nutrition Products is an established and respected international firm.
Summary
Amid declining revenues and markets, and a number of negative events, Lifestyles retained Manzimvula to define a strategy to re-engage historically loyal clients, and chart a course for renewed growth and success.
Manzimvula’s Role & Value
Our first priority was to undertake a situational assessment to quantify the market mood and existing customer base. We worked with the company’s Canadian head office, and visited customers in each Lifestyles’ markets. Through those dialogues, and discussions with sales leaders and corporate staff, we determined the core product was respected, but that support tools, training systems, recognition programs and compensation structures were in need of review.
In response to these needs, we developed a completely new training system, including tools and presentations built upon a step-by-step approach—so new product users and sales people could grow with the plan and the training system.
In collaboration with representative groups from each market, we developed an eight-step graduated training system called the Lifestyles Success System, and a series of high-end publications in 17 languages. Each market's system was adapted to address local market and cultural expectations, while delivering a consistent message and creating a common language across all markets.
We then took the system on a world tour, introducing it to each market, and conducting training for the corporate staff, the market leadership group, and the general field.
Our Results
Our commitment to open discussion, active listening and understanding the needs of local markets helped us engage leadership, staff and customers, effectively gaining their trust and mutual commitment to our approach.
This engendered significant buy-in, which aligned the founders’ vision with their company’s personnel. Activity increased in each market and revenues turned the corner and started to grow. Over the next three years, the company achieved sales growth of 20% year over year.
Tianshi Group Case Study
Operating in 48 countries and with more than $250 million in revenue, the China-based Tianshi Group distributes and sells health care products for individuals and their families.
Summary
Tianshi wanted to create a Network Marketing division to expand their business to 48 countries around the world. Their vision entailed creating a positive impact on the global community, first by providing exceptional health products, and second, by giving individuals the opportunity to create personal wealth.
Tianshi wanted to become the premier network marketing company in the world. Their success would be measured not merely in financial terms, but by the contribution it makes to the global community—thereby setting the standards by which all other companies are measured.
Manzimvula’s Role & Value
Tianshi’s goals were ambitious, requiring a needs analysis, market overview, competitive analysis for their product line, and a full business and financial plan proposal. Manzimvula completed these analyses and defined a business model, which was approved by the company’s executive group. The plan encompassed development of infrastructure and operations in three markets (United States, Canada, and Mexico), which would serve as a template for other regions around the world.
We then created a portfolio of the necessary projects and broke the process down into three phases:
Phase 1 – Consolidation The first challenge was to work across cultures, transforming what was largely a manufacturing and retail workforce into a network marketing company. We designed and facilitated the transition to the new corporate infrastructure and included the consolidation and centralization of the Consultant (Customer) Services, Operations and Marketing functions of the Company. The marketing aspect included a new corporate web site, clear and consistent consultant training tools, policies and procedures, and a monthly newsletter. We also redefined the Tianshi Compensation Plan across North America, building consensus around the new approach, and eliminating international inconsistencies.
On completion, this phase facilitated uniform and transparent services across North America, and materials that defined a consistent model in English, Chinese and Spanish.
Phase 2 – Market Operations To support benchmark operational standards, we developed additional sales and marketing tools and Consultant training and education programs across North America. We also redesigned the product line—including formulas, packaging, marketing and product information. This included strategic work with the operations team to establish centralized fulfillment centers in the United States and in the Ontario region of Canada to ensure effective and speedy delivery of orders to consultants and customers.
Phase 3 – Expansion We further developed the company’s business model, supporting steady growth of revenues and earnings, and positioning the company to attract professional, long-term business builders.
This phase also included an expanded review of Tianshi’s Global Compensation Plan and Independent Consultant Policies and Procedures to create a base set of documents that are clear, consistent and transparent worldwide, and to ensure that North American practices are consistent with Global practices within the Company.
Our Results
Manzimula’s highly successful engagement united distinct phases of engagement and diverse projects, to facilitate Tianshi’s remarkable growth. During our initial analyses, we identified a relatively large number of factors that would be critical to success. The engagement was necessarily wide-reaching and complex.
Given the company’s Chinese heritage, senior leaders and the organizational community as a whole had to reach far outside their ‘comfort zone’ and business culture. It was remarkable how the team ultimately united, successfully executing the entire global vision and all related projects.
The company has far exceeded its goals and has since opened for business in over 48 countries around the world.
