Hi all, I wanted to share with you a
great informational article about
Melaleuca that I thought would help you to understand more about it.
Melaleuca (company)This article is about the direct-consumer company; for the genus of plants, see Melaleuca
Melaleuca, The Wellness Company
Type Private
Founded 1985
Headquarters Idaho Falls, Idaho
Industry Health
Revenue $782 Million Sales Graph 1985 to January 2007
Employees 2,500
Website www.Melaleuca.com
Melaleuca,
The Wellness Company , often called simply "Melaleuca", is a $780
million nutritional, cosmetic, and personal care products company
founded in 1985 and headquartered in Idaho Falls, Idaho, USA.
Melaleuca
was listed on the Inc. 500's list of fastest-growing companies in 1990,
1991, 1992, 1993, and 1994 and today is one of the largest privately
owned companies in Idaho. [1]
Contents
* 1 History
o 1.1 Sales History
* 2 Products and business model
o 2.1 Nutritional Supplement Regulation
* 3 Awards and Public Recognition
* 4 References
* 5 External links
HistoryThe
company began under the name "Melaleuca Oil" with the offering of a
single product called "T36-C5 Melaleuca Oil" which was formulated from
extract of the melaleuca tree, commonly known as tea tree oil. A
previous Melaleuca-based company by the name of "Oil of Melaleuca"
operated as a standard multi-level marketing company whose literature
made health claims the FDA would not approve. The company sold products
whose uses and benefits were not verifiably documented. There were also
exaggerated claims of the efficacy of the active ingredient, tea tree
oil, and claims that the company was a sole source of the same,
creating an impression of privileged access to a unique product.[2]
In
1985, the company was taken over by Frank L. VanderSloot who dissolved
the previous company, created a new marketing plan to support
consumers, immediately launched an initiative to bring the company's
product line into compliance with FDA regulations, and started this new
company under the name of "Melaleuca, Inc.". He made the compensation
plan more favorable to Marketing Executives, by establishing Consumer
Direct Marketing. Independent Representatives were no longer required
to sell products but instead became membership enrollment facilitators.
Since VanderSloot has taken the helm, Melaleuca has experienced
consistently increasing sales and revenues and expanded internationally.
Melaleuca
now has over 2,500 employees as well as sales offices in Hong Kong,
Japan, and Australia, Taiwan, New Zealand, and United Kingdom and
grossed US $782,000,000 in sales in 2006. [3] Melaleuca began sales in
Singapore, Netherlands, and Jamaica in 2006.
Sales HistoryMelaleuca
was recognized by Inc Magazine as one of the fastest growing companies
in the United States for five consecutive years (1990-1994). [4] In
addition, Melaleuca has seen 22 years of consecutive growth since its
foundation in 1985.
Though sales reached $782 Million in 2006,
Melaleuca holds less than .5% of the North American marketplace, with
their largest competitors being Procter & Gamble and Johnson &
Johnson.
Products and business modelWhile initially
based predominantly on melaleuca plant extracts, the product line has
since expanded beyond this initial focus. Melaleuca now markets over
350 items such as household cleaners, personal care items,
pharmaceuticals and nutritional supplements. The company markets itself
as being earth-friendly, and many of their products are certified
organic. They also launched a cosmetics line in partnership with
fashion designer Nicole Miller in January 2003.
Melaleuca has
been outspoken against the abuses inherent to multi-level marketing and
the damage they can cause. By contrast, Melaleuca does not allow
inventory loading (a practice used by many multi-level marketing
companies encouraging them to purchase up to thousands of dollars worth
of inventory), limits the marketing chain to 7 generations, and
prohibits "breakaways" (another practice commonly found in multi-level
marketing). According to the company, another way it is less exploitive
than MLM's is that Melaleuca does not require its marketing executives
to maintain an inventory. In order to receive commissions from one's
customers, marketing executives must produce a minimal number of 35
product points per month (the equivalent of about $45-55 each month) to
remain an active Marketing Executive. This in turn qualifies the
customer to receive a 30-40% discount. The company also offers an
opportunity to receive up to 15% of your monthly order back in
"Advantage Awards" dollars. After receiving $20 in Advantage dollars
the customer is allowed to redeem these dollars towards products. The
products being purchased are everyday items such as shampoo, hairspray,
and cleaning supplies. Distributors claim that the minimum required
level is compatible with typical household or personal use.
Melaleuca
claims to focus on developing products that support a healthy lifestyle
and are safer for the home. In the home, the company focuses on
researching and bringing to market cleaning products that use more
natural cleaning products that are claimed to be safer than "harsh
chemicals." Melaleuca touts that its products are as good or better
than what is found at the local grocery store, but without the bleach,
lye, or other chemicals typically found in other brands. [5]
The
company has developed an extensive line of nutritional products such as
vitamin and mineral supplements which claim to promote heart health,
cardiovascular, and blood pressure supplements, and a glucosamine
product for healthy joints. They also have developed products using
natural ingredients that the company claims support healthy vision,
healthy prostate, healthy urinary tract, as well as other nutritional
supplements. It also has a body and bath product line, beauty and
makeup line, and weight management line.
The company uses a
direct to consumer delivery model, where a customer can place an order
via telephone or online (over the internet) and products are delivered
to the door via postal service or national mail carrier.
Nutritional Supplement RegulationDietary
Supplements are considered a food and are less regulated by the federal
Food and Drug Administration.[6] Some doctors and pharmacies point out
that some natural supplements may have an effect on prescription
medications and someone taking strong prescription medications may want
to consult their doctor before taking some nutritional supplements.
Additional information on herbal supplements and their uses and
regulations can be found at the Wikipedia's herbal supplements page.
Awards and Public RecognitionMelaleuca
and its 22 year President and CEO, Frank VanderSloot, have been the
recipients of numerous distinguished honors and awards:
* Five
Time Inc. 500 List of Fastest Growing Businesses - Melaleuca is one of
only a few business in history who have been listed in the Inc. 500
five consecutive times.[7]
* Inc 500 Hall of Fame - In 2005 Melaleuca was inducted into the Inc. 500 Hall of Fame.[8]
* Blue Chip Enterprise Award - In 1991, the United States Chamber of
Commerce honored Melaleuca by presenting it the Blue Chip Enterprise
Award.
* Healthy Workplace Award - Melaleuca was one of 15
organizations in 2004 recognized nationally by the American
Psychological Association with a "Best Practices Honor" for efforts to
foster Family Support in the workplace.[9][10]
* IACI Environmental
Excellence Award - in 2003 Melaleuca was awarded the Idaho Association
of Commerce and Industry Environmental Excellence Award. Criteria for
the award includes environmental practices, investment in pollution
control, recovery from waste streams, conservation, and other
environmental achievements.[11]
* Entrepreneur of the Year Awarded
- Ernst & Young and CNN awarded Melaleuca's President and CEO Frank
VanderSloot the Entrepreneur of the Year Award for the Northwestern
United States in 2001. Past recipients have include Amazon.com, eBay,
Southwest Airlines, and Enterprise Rent-a-Car.[12][13]
* Salvation
Army "The Others" Award - In 2007 the Salvation Army awarded Melaleuca
with its highest national civic award, "The Others" award", for sending
more than $1,000,000 in relief to victims of the Gulf Coast hurricanes
of 2005. The company and its people gathered enough food, water,
clothing and emergency supplies to fill 11 semi-trucks for the victims
of Hurricanes Katrina and Rita.[14]
References
1. ^ "Inc. 500 Hall of Fame," Inc. Magazine, September, 2006.
2. ^ "Hall of Fame Profile: Frank L. Vandersloot," Inc. Magazine, October 2004.
3. ^ Melaleuca Annual Gross Sales, 1985 through 2006 (Company publication)
4. ^ Inc. 500 Listings
5. ^
http://www.SaferForYourHome.com 6. ^
http://www.fda.gov 7. ^ Inc. 500 Listings
8. ^ Inc. 500 Hall of Fame
9. ^ American Psychological Association Healthy Workplace Award
10. ^ Healthy Workplace Award
11. ^ Environmental Excellence Award
12. ^ Earnst & Young and CNN Entrepreneur of the Year Award
13. ^ Entrepreneur of the Year Award
14. ^ Post Register 76 (205): B1, May 24, 2007
I
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Michele