Multi-level marketing activities at Noni Vina Company Limited - current situation and development solutions

Although when importing other products, Noni Vina Company may have to re-register or apply for complicated licenses, but if the product portfolio is diversified, it will increase the company's competitiveness and expand the market. For example, importing Tapoema and Moéa beauty care products has helped TNI gain a large number of female customers who are interested in natural beauty, external care combined with Noni Juice drink for internal care.

Along with new products, companies need to have specific introductions and instructions for each type of product.

2.2. Solutions for network system development.

2.2.1. Create customer trust by strictly complying with legal regulations

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Although multi-level marketing has been introduced to our country for a long time and has been recognized by law, because there are still companies or individuals doing business illegally, building virtual pyramid models to scam gullible and ignorant people, people are still wary of this form. And even in the operations of Noni Vina company, there are still people who violate the company's principles, defrauding for illegal profits, causing public opinion to speak out against the company's operations.

Therefore, to develop, first of all, the company needs to make people understand and trust it, trust in its clean business by properly and fully complying with the legal regulations for this activity. Only then will customers trust and cooperate with the company.

First of all, businesses need to learn, understand and comply with Decree 110/2005/ND-CP. According to Article 7, businesses are not allowed to perform the following acts:

“1. Requires participants to make a deposit to gain the right to participate in the multi-level marketing network.

2. Requires participants to purchase an initial quantity of goods to be eligible to participate in the multi-level marketing network.

3. Requiring participants to pay money or any fees in the form of courses, training courses, seminars, social activities or other similar activities to be eligible to participate in a multi-level sales network, except for the cost of purchasing documents as prescribed in Clause 2, Article 6 of this Decree.

4. Not committing to allow participants to return goods and receive back the money transferred to the enterprise as prescribed in Article 11 of this Decree.

5. Preventing participants from returning goods arising from the termination of multi-level sales participation contracts.

6. Allow participants to receive commissions, bonuses, and other economic benefits from enticing others to participate in multi-level marketing.

7. Refusing without justifiable reason to pay commissions, bonuses or other economic benefits to which participants are entitled.

8. Providing false information about the benefits of participating in a multi-level marketing network to entice others to participate in multi-level marketing.

9. Providing false information about the nature and uses of goods to entice others to participate in multi-level marketing.”

As analyzed in the current situation section, Noni Vina Company Limited requires those who want to cooperate with the company to pay a fee and buy 2,400,000 VND of products, which is illegal. Of course, when joining the company, consultants must pay a fee to buy business documents related to the company, this fee is inevitable. However, the company should remove the regulation requiring consultants to buy products before joining the company.

The company has stipulated in the Consultant's Rules on returning goods and paying full commissions and other rights of consultants. However, to ensure that the product return is smooth, to avoid the case where the customer wants to return the product but the company does not have money available to refund, or sometimes the returned goods have reached the expiry date but cannot be sold to other customers, leading to having to discard the product, causing damage to the company, etc. Noni Vina should set up a reserve fund, and use this fund when there is a product returned.

Article 8.” Responsibilities and prohibited acts of participants

1. When participating in multi-level marketing activities, participants have the following responsibilities:

a) Present the multi-level marketing network membership card before introducing goods or marketing sales;

b) Fully notify the contents specified in Clause 2, Article 6 of this Decree when sponsoring another person to participate in the multi-level sales network;

c) Provide truthful and accurate information about the type, quality, price, uses and methods of use of the goods sold;

d) Comply with the regulations in the Company's Rules of Operation and Sales Program.

2. Participants are prohibited from performing the following acts:

a) Requiring the person being sponsored to participate in a multi-level marketing network to pay any fees under the name of courses, training courses, seminars, social activities or other similar activities;

b) Providing false information about the benefits of participating in multi-level marketing, false information about the nature and uses of goods, and about the operations of multi-level marketing enterprises to entice others to participate in multi-level marketing .”

Currently, the company is maintaining a good level of personal income tax and corporate income tax payment to the State, and needs to continue to promote it further. In particular, it is absolutely necessary to avoid tax evasion, false declaration, and lack of legal documents. Products must also have full quality inspection documents and be on the list of non-prohibited goods.

2.2.2. Strengthening public activities

Customers are always an extremely important factor in the success of a company. A multi-level marketing company that does not use advertising to attract customers needs to further strengthen PR activities to promote its business. PR is an important tool to build and promote the company's brand, and today, this tool plays an increasingly important role in helping to build the reputation of businesses in general and multi-level marketing businesses in particular.

TNI Group and Noni Vina Company Limited have had many PR activities to support distributors in introducing products and promoting images. For example, TNI collaborates with famous models such as supermodel Miranda Kerr, Rita Verreos ... to promote its image. In Vietnam, Noni Vina Company also gives products to national leaders. Former Chairman of the Central Committee Pham The Duyet presented Noni Vina: "Noni nutritional water is a very effective product to nourish the health of the elderly and the weak", Former General Secretary Le Kha Phieu also presented Noni Vina on the occasion of visiting the company's office: "Noni International Group is developing strongly, bringing many high-quality products to serve people's lives, especially for the elderly. Human health is a precious asset, there are many ways to maintain health, one of which is an important part that cannot be ignored, which is nutritious food (such as Noni, one of the very nutritious foods for humans)" (Source: )

Currently, there are consultants of Noni Vina who have set up their own websites and websites to introduce and discuss with everyone about the company's products and business opportunities. Not only that, in the forums, there are also members of Noni Vina participating and inviting everyone to cooperate with the group. However, these activities are still sporadic and spontaneous, not systematic and do not operate regularly. To promote its multi-level marketing activities more, the company should open forums for everyone to share information, regularly update the schedule of activities, post typical examples for everyone to participate in posting and discussing to understand the company correctly. The online community is very large, if it is possible to promote through that to enhance the company's image, it is very good.

In Vietnam, there are no Noni coffee shops, this is a very good form of propaganda for the company's image. At these coffee shops in Japan, the United States, ... consultants, customers can go there to enjoy the products, follow the images of Tahiti island, about the formation and development process of the group, watch videos about the group's business plan, participate in quiz shows with prizes about Noni ... In Vietnam, the group does not have a direction to develop Noni coffee shops.

As such, in the reception hall of each representative office, such a space can be created to bring customers, consultants and the company closer together.

2.2.3. Solution on warranty and refund policy for customers within the specified time

According to the provisions of Article 11 of Decree 110/2005/ND-CP of the Government, multi-level marketing companies must be responsible for buying back goods for participants as follows:

“ Article 11. Repurchase of goods from participants upon termination of multi-level sales participation contract

1. Multi-level marketing enterprises must buy back goods sold to participants when those goods meet the following conditions:

a) Can be resold according to the original purpose of the goods;

b) Within no more than 30 days from the date the participant receives the goods.

2. In case of having to buy back goods as prescribed in Clause 1 of this Article, multi-level sales enterprises are responsible for:

a) Refund the total amount that the participant paid to receive the goods if there is no basis for deduction as prescribed in Point b of this Clause;

b) In case the enterprise has to bear management costs, re-storage costs and other administrative costs, it must refund a total amount of not less than 90% of the amount that the participant paid to receive the goods.

3. When refunding money as prescribed in Clause 2 of this Article, the multi-level sales enterprise may deduct commissions, bonuses and/or other economic benefits that the participant has received from receiving the goods.

4. The provisions in Clause 1 and Clause 2 of this Article do not apply to cases where goods are not subject to repurchase, including: goods that have expired when returned, seasonal goods or goods used for promotions .

In order for participants to feel secure in collaborating with the company, the company should have a return policy for buyers. Currently, Noni Vina has also implemented a return policy for buyers in accordance with the provisions of law. However, this policy still has limitations. That is, if the buyer does not have to

As a company consultant, the return of goods must be made through the consultant from whom the customer purchased the goods. Therefore, there are cases where consultants, in order to maintain sales, do not accept returns and therefore the customer cannot return the goods within the specified number of days, leading to no return. Therefore, the company should apply a direct return policy to the company. The company's products are all certified, it is very difficult to counterfeit, so the returned goods must be guaranteed within the time and regulations as for consultants.

In addition, the company should implement a warranty policy for the product. High quality, high-priced products should have this policy to ensure peace of mind for users.

2.3. Human resource solutions

2.3.1. Training qualified consultants

Although multi-level marketing is a form of business for everyone, regardless of age, gender, position, or status, in order to build and develop a multi-level marketing company, training a team of consultants is an important issue. Consultants are the ones who directly use the product, are also the ones who directly contact customers, recruit and train new people, build a solid distribution network for the company, and decide the success or failure of the company, so training is essential.

Distributor training is similar to training other sales staff in that: distributors must be trained to understand the company, its history, direction of operation, principles, operating principles, training on the company's products, ingredients, features, and uses of the product. This seems simple, but for a multi-level marketing company, it is not easy. There are consultants who, in order to sell products, have said wrongly or exaggeratedly about the uses of the product, causing suspicion in users. This has happened in the company, some people have advertised that this is a "miracle drug" that can cure all diseases, which is not true. Therefore, we must strictly correct and require consultants to commit to not telling lies.

However, due to the specific nature of this type of business, it also has other points. Multi-level marketing businesses are not simply about selling.

customers, what multi-level marketing companies focus on is training. If in the normal form of business, the creativity and uniqueness of each person is the decisive factor for success, everyone wants to keep their own business secrets, then in multi-level marketing, copying is important. What is copying? It means that how our sponsors do it, how they train, we will repeat it. Information is public and equal among everyone, regardless of who comes first or later, everyone has the same information and tools. Therefore, just copying the successful people who came before, new participants can also succeed. Of course, copying also needs to be innovative. Successful consultants are those who know how to copy, learn, and update new information.

TNI reaches consumers through the method of “telling TNI’s story, telling your story”. This means that the consultant will introduce the company and at the same time tell their experiences and stories when using the product, each person will bring TNI a new story, this helps participants not feel bored when having to listen to the same story over and over again. This is also a very good method.

Training should focus on:

- Training about the company's products , uses, features, what benefits they bring to customers, and which customers they are suitable for. A person who understands the product well can convince customers.

- Training on network marketing. This is something that seems simple, so many companies have ignored it, which is a huge mistake. Currently, when there are still many people who have a wrong view of this type of business, helping distributors understand and do the right thing with genuine network marketing is necessary. Only by doing it right can we avoid bad public opinion and those who build virtual towers to make illegal profits.

- Training about the company. History, general business situation, and compensation policy are factors that anyone who wants to join the company wants to learn about. Especially the direct commission policy linked to the interests of the company.

Participants need to be fully explained. The company needs to introduce to participants the long-term income, surplus when cooperating with the company, being self-employed, being self-employed "business". However, it is also necessary to show them that to get worthy rewards, each person must put in a lot of effort and effort, avoiding consultants having the wrong idea that only doing easy work will bring big profits.

- Training necessary skills of a consultant, communication skills, behavioral style, public speaking, approaching and persuading customers, recruiting and training new people, time management, people and system management.

Training needs to combine short-term classes as a foundation and long-term classes, following consultants throughout the duration of operation, combining company training, senior sponsorship and self-training.

2.3.2. Managing the consultant system

The consultant system is the company's "means" of earning profits, a valuable asset, especially the leaders. However, the more the company expands, the more people participate, the more the system will swell, causing a difficult situation to control. Therefore, the company needs to have strict management measures to ensure stability in the business. Those who join the TNI Group are currently managed through a code system when they first register with the company. Each person who signs a contract to become a consultant for the company will be given a code, an account, and if they want, can be provided with a personal website to manage their own work and customers. This system is directly managed by the group's headquarters. The limitation of this is that because they do not directly grasp the situation, they cannot intervene promptly when an incident occurs. Moreover, managing all consultants worldwide is an extremely difficult and complicated task. Therefore, Noni Vina company also needs to support the group by direct management, then summarize the situation and report to the group. And in the company, it also shares responsibility with branches, system leaders, building a tight management system from bottom to top.

Training is important, but control is equally necessary. Multi-level marketing companies that are inspected and handled by the authorities have many cases where the cause originates from the consultants. The abuse of language,

Multi-level marketing activities at Noni Vina Company Limited - current situation and development solutions - 11

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