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The Operation and Management of The Operation and Management of A Direct Selling CompanyA Direct Selling Company
Nu Skin As An ExampleNu Skin As An Example
National Sun Yat-sen UniversityNational Sun Yat-sen University
Presented by Johnathan KunzVice President, Nu Skin Taiwan
May 23, 2006
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Johnathan Kunz – Vice President of Sales, Nu Skin Taiwan
Lecturer Profile
Joined Nu Skin Enterprises in 1997
Account Manager
MBA-Brigham Young University 2001
Global Business Opportunity Development
New Market Development
Appointed as Vice President of Sales for Nu Skin
Taiwan in April 2004
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President of Nu Skin TaiwanJohn Chou
Nu Skin Taiwan, Inc., Taiwan Branch President
World Federation Direct Selling Association
Association Advisory Council member for Asia Pacific Region
Taiwan R.O.C Direct Selling Association Chairman (1997 – 2000, 2 terms, 2-year term)
Taiwan R.O.C Direct Selling Association Standing Director2001 – 2006, (current, 2-year term)
Chinese Taipei Olympic Committee Consultant
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1. Nu Skin Enterprises Overview 2. Nu Skin Enterprises Milestone
3. Nu Skin Taiwan Milestone 4. Company Mission and Vision
5. Compensation Plan 6. Product/Marketing Strategy
7. Company Culture 8. PR
9. Communication 10. Distributor Support
11. Service Centers and Logistics 12. Code of Ethics
Presentation Structure
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Nu Skin Enterprises OverviewNu Skin Enterprises Overview
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Nu Skin Enterprises
Founded 1984
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IPO in 1996New York Stock Exchange
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• Operations in 41 markets
• Premium-quality products
• Tradition of innovation
• Top-10 U.S. direct-selling companies
Company Overview
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Direct Sales Overview Top U.S. Companies
Revenue Products
Avon $7,700M Personal Care
Amway $6,200M Various
Mary Kay $1,800M Cosmetics
Herbalife $1,300M Weight Loss
Tupperware $1,200M Household
Products
Nu Skin Enterprises $1,100M Skincare /
Nutrition
Pampered Chef $ 700M Home CareSource: Company reports
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Financial ResultsAnnual Revenue Since 2001
In Millions of Dollars
$1,181$1,138
$986$964
$886
$800
$900
$1,000
$1,100
$1,200
2001 2002 2003 2004 2005
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Revenue by Geography2005 Results
SouthAsia/Pacific
7%Other Markets
4%
GreaterChina/SE Asia
20%
North Asia56%
North America13%
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Nu Skin Enterprises MilestoneNu Skin Enterprises Milestone
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Nu Skin Taiwan MilestoneNu Skin Taiwan Milestone
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Founded in 1992Reached top 10 in the first year1996 – (Business Weekly) survey: Top brand1997 – 500 Top Companies service industry :Ranked #96
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1998 – Founder visited President Lee1999 – Endorsed by COC2002 – 10th Anniversary. Founder visited President Chen2003 – (China Times) survey: #1 in Brand Awareness, Product Satisfaction, Corporate Image, Distributor Character2004- Outstanding Performance: Revenue Growth +11%, EGB Bonus Growth +10%, Executive Growth +102%2005 – Gold Medalists Endorsement Chen Shih Shin
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Company Mission and VisionCompany Mission and Vision
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Mission Statement
Our Mission is to be a force for good throughout the world by empowering people to improve lives with rewarding business opportunities, innovative products, and an enriching and uplifting culture.
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Vision Statement
Our Vision is to become the world’s leading direct selling company by generating more income for distributors than any other company.
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Direct Sales OverviewSelected Top Direct Selling Companies
Avon $7,700M 11% $ 847M
Amway $6,200M 33% $2,046M
Mary Kay $1,800M 15% $ 270M
Herbalife $1,300M 33% $ 429M
Tupperware $1,200M 10% $ 120M
Nu Skin Enterprises $1,180M 43% $ 507M
Pampered Chef $ 700M 10% $ 70M
Source: press releases, company estimates
Commission Rate Total PayoutAnnual Revenue
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Compensation PlanCompensation Plan
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Innovative Compensation Plan
Global Seamless
6 Generation 5%
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Entrepreneur Driven and Most Rewarding Opportunities
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We Create MillionairesGlobal
20 Millionaire - 20 accounts
10 Millionaire – 20 accounts
5 Millionaire – 71 accounts
1 Millionaire – 463 accounts
Taiwan
10 Millionaire – 1 account
5 Millionaire – 6 accounts
1 Millionaire – 52 accounts
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Leaders Recognition
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Product/Marketing StrategyProduct/Marketing Strategy
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Nu Skin Products - All of The Goods, None of The Bad.
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Pharmanex Products - Provided by Natural, Proven by Science
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R&D Team – Top ScientistsOver 130 Scientists
Dr. Carl Djerassi
Worldwide labs
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In Search of Excellence - Company Awards -
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The Measurable Difference
ProDermBiophotonic ScannerScience technology breakthrough
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Best Products Certified
5 Health Food Licenses
BioTech Awards
Innovation Award Green Mark
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Product EndorsementCOC
Gold Medallists
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Pharmacological Standard - Product Quality / 6S
1. Selection
2. Sourcing
3. Structure
4. Standardization
5. Safety
6. Substantiation
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Brand AwarenessChina Times Survey in 2003
Brand Awareness
Product Quality Satisfaction
Corporate Image
Distributor’s Character
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Company CultureCompany Culture
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Culture
“Our mission is to be a force for good in the world ….”
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“Nourish the Children may be 5 percent of what we do, but it is 95 percent of who we are.”
–Blake Roney
Nourish the Children
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Nourish the Children
VitaMeal Production Facilityin Lumbadzi, Malawi
New VitaMeal Facility Under Construction in Jixi, China
Will have capacity to produce morethan one million meals per month.
Produces enough food to feed 30,000 children a day and provides jobs for 700 Malawians
NTC Global Sales Report: Donated over 40 million meals through Nourish the Children .
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Force For Good
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Force For Good Foundation
I want to be thethe do good company in the world.
- Blake M. Roney
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Force For Good Foundation 25 cents for each Epoch product sold
EB research and care
Seacology Foundation
Secure rain forest
Dr. Paul Cox
$13 million donated Since 1996
Foundation donates more than $1 million actually to projects around the world
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Force For Good In TaiwanNTC – Vita Meal Donation To Hua Lien ( 花蓮 )
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Stanford University史丹佛大學醫學院
School of Medicine
EPIDERMOLYSIS BULLOSA RESEARCH PROGRAM
先天性表皮鬆解症 (EB)研究計劃
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•Epidermolysis is breaking apart of skin “Epidermolysis”是皮膚破裂的意思
•Bullosa means blister “Bullosa”是水泡的意思
•Epidermolysis Bullosa = EB EB=先天性表皮鬆解症
How EB Got Its NameEB名稱的由來
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Force For Good In TaiwanEB Family Gathering
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Force For Good In TaiwanEB Trip – Lu Gang 鹿港
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Force For Good In TaiwanEB Trip – Hong Kong
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Force For Good In Taiwan
Donate 500 bottles of ReiShi Max To Taipei Government for fighting SARS
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PRPR
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TV Program Interview
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Media Exposure/ReportTo build up corporate image and recruit people who want to start their own business to become Nu Skin distributors, there has been a lot of propaganda in newspaper and magazine.
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Media Exposure/Report
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Athlete Health Forum
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Press Conference
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CommunicationCommunication
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Magazine
BD Update
Nu Skin Update
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Web Site
SMS
GWP
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E-mail Broadcast
E-mail Subscription
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Distributor SupportDistributor Support
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RC/Taiwan Convention
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Success Seminar Group Success Seminar
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Distributor Training Scan Taiwan
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TE Trip Incentive Trip BD Meeting
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Fashion Workshop / Health Seminar
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Account Manager
Business support
Communication bridge between the company & business builder
Sales promotes
Service Agent
Walk in center service
Phone in order service
Product returns
Warehouse
ACD
Customers service information center
Follow up customers inquiries & special requests
Front Line Major Functions
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Branches/Service CentersBranches/Service Centers
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Walk-In Centers and Display
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Showcase - Gym/SPA
如新泉源會館Nu Skin Fountain Club
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Ordering Type
Walk in
Phone in
Fax
Web ordering
ARO
COD
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Code of EthicsCode of Ethics
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Education/TrainingPolicy and ProcedureEqual Playing Field
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