Analysis of an e-commerce website

Herbalife E-Commerce Website

Founded in 1980, Herbalife is nowadays an international company selling weight control and health products in a multi-level marketing system. Even though the company promotes on the market products for improving heart or skin condition, they are most renowned for their weight loss achievements. The latest innovation in the weight control market is Herbalife's Formula 1 Nutritional Shake Mix, a creamy shake, rich in vitamins and minerals.

Herbalife products are being sold all over the world to the benefit of millions of customers who declare themselves highly satisfied after having used the products. "I set out to lose 25 pounds, and I lost 40. I'm still pinching myself about how much weight I've lost!" says customer Kim Frahm.

But Herbalife is not just a health products provider, it is also a business opportunity. Michael O. Johnson, CEO at Herballife promises that their "business opportunity is the best in the world." In their 26 years of existence and over one million distributors around the world, Herbalife has expanded their business in more than 60 countries and registered sales of over 2 billion U.S. dollars.

Herbalife's slogan

Proof of the wellness company's rapid growth and development stands the growing number of people and vehicles that carry Herbalife's intriguing slogan: "Lose wight now, ask me how!" In 1996, many persons became Herbalife consumer only after having asked a carrier of the slogan for details. Most of them could not believe how easy it actually was to reach the perfect weight in such short time and with so little effort. The great majority of these new customers became themselves Herbalife direct distributors, adding in 2006 to a total of 1.4 million independent distributors.

Aside the impressive number of Herbalife distributors, customers can also purchase their products through the online service available on the company's official web site. Here, potential clients can seek specialized guidance with their health problems, find out details regarding the products and even buy the products they desire.

2. Description of the web page

Any Internet user is a potential Herbalife customer. Therefore, the official web site of Herbalife is built with a user friendly interface, it is easy to use and to find. One can easily access the web page by clicking on the link www.herbalife.com, or by simply typing it in their personal Internet browser. Once accessed, the web page guides the user towards a journey of promising beauty and health.

The first images a user sees when visiting the Herbalife web site are related to eating habits and disorders and reveal individual's fears regarding their own nutrition. They can find the answers to questions like: "Am I eating enough?," "What should I try?" Or "Is my weight healthy?." For each of these questions, the user will type in their personal characteristics and Herbalife specialized nutritionists will perform the calculi in order to establish if the user is under or overweight.

For example, to identify if their weight is between the limits considered normal, users have to introduce their height measured in feet and inches and their weight measured in pounds. Then, to finish the operation, the users have to click on the "See My Results" button. Hypothetically speaking, if a user typed in his measures as being 6 feet and 9 inches tall, with a weight of 154 pounds, the calculi will reveal that their BMI (measurement of the body fat) is of 16.5, "falling below the 20 to 25 range generally considered healthy." This means that the person of 6 feet and 9 inches tall, weighting 154 pounds is underweight. Next, Herbalife specialist suggest a that the user consulted "a Shape Works coach to develop a personalized weight-gain program," guiding this program step-by-step, offering personalized treatment and means of getting in touch with a distributor in the geographical area the user lives in.

Further on, the web page presents their activities, by dividing them into three major groups, all three including several specialized programs. These three groups are: Weight Management, Targeted Nutrition and Outer Nutrition.

A a) Weight Management

The Weight Management group is mostly focused on services and products on weight loss, namely: Shape Work Programs, Protein Snacks, Enhancers for Energy Support, Enhancers for Appetite Support and Enhancers for Digestive Support.

A b) Targeted Nutrition

The Targeted Nutrition group contains nutritional supplements that fit the demands of each individual. These supplements are classified in nine subcategories as follows: Daily Packs, Heart Health, Digestive Health, Stress Management, Immune Solutions, Women's Solutions, Men's Solutions, Children's Health and Energy & Fitness.

A c) Outer Nutrition

The Outer Nutrition category contains products for the health of skin and hair and are classified as follows: Skin Essentials, Skin Care Programs, Skin Revitalizers, Body Essentials, Hair Essentials and Fragrances (several perfumes for both men and women).

On the upper part of Herbalife web site, the user can see the contents of the entire site classified in six major categories: "Home," "Weight Loss," "Our Products," "Our Company," "Getting Herbalife" and "Be a Distributor."

The Herbalife web page has a highly developed and complex structure. Even so, the fact that the web site has a user-friendly interface only proves the high skills of the Herbalife specialists. Moreover, to assure that all Internet users around the world have unlimited access to their products, the health company translated the contents of the page in no less than 67 languages, everything from English and Spanish to Turkish.

3. Restrictions to access

Considering that the company wants to advertise their products to all available Internet users through the web site www.herbalife.com, they do not charge any fees or taxes for their promotional services. Aside the obligation of paying fees or taxes, a web site has another restrictive measure: registration. According to this restriction measure, actions on the web page fall into two categories: situations that do not require registration and situations that do require registration of the user.

Situations that do not require registration

Browsing

An Internet user, and therefore a potential customer, is able to browse through the Herbalife web page and search information regarding the products he or she is interested in. Users can find descriptions and specification of the products, related products and even suggestion as to what kind of products to associate in order to better and sooner achieve the results they desire.

Free consultations

Moreover, to make their products and programs even more appealing to the public, the Marketing Department at Herbalife implemented a promotional strategy online. According to this strategy, any Internet user is granted rights to free personalized consultations. This consultations would be performed through electronic communications and held by Herbalife's nutritional and health specialists.

To browse through the content of Herbalife's Internet page, users do not even have to register. Nonetheless, they are not forbidden from doing so. If they do decide to register (as they desire constant contact with Herbalife specialist trough email, or desire information about the latest products available on the market), the company will guard their data in strict confidence.

Situations that require registration

However, the online service is not only accessible to potential or current customers, but also to distributors and those who wish to become independent distributors of Herbalife products.

Herbalife Direct Distributors

In the case of distributors, registration is necessary. They are asked to fill in two domains, one for the distributor's login, and the second for the PIN code adherent. Once logged into their own personal accounts, distributors can place orders online, change them or search for various information.

Potential Distributors

Registration is also necessary when an individual wishes to become a direct Herbalife distributor. This registration consists of seven easy to follow steps, at the end of which the individual will be considered a certified distributor. Still, in order to be able to register into the seven step program of becoming distributor, one needs the invitation of a Herbalife sponsor. If they do not have a Herbalife sponsor, the potential distributors are asked to call Herbalife at and make contact with sponsors.

Placing Orders

Another situation that requires registration is that of placing an order. Once a user decides to order online one or more Herbalife products, they have to identify themselves. They are asked to fill in domains such as: age, gender, contact details, wellness problems they are facing and the goals they hope to achieve after using the health treatments. Towards the end of the registration process, customers are asked for their opinion regarding the web page. To make sure their orders are correctly placed, clients have to click the "Submit This Form" button.

In a nutshell, the official web site of Herbalife is a free Internet page opened to public. Users can browse though the company's product offers and order them online. Registration is only necessary when placing an order and for distributors' login.

4. Hosting of the Web Page

The web server where Herbalife hosts their Internet page is classified information and therefore it is not available for public interest. Still, one can assume that the health company does not host their web page internally, but that they have an external Internet Service Provider who hosts it, in exchange of financial rewordings.

This assumption is based on the company's domain of work and the high quality and complexity of the web site. In order to develop and maintain such a complex Internet site, a company would have to posses its own Information Technology Department. Only specialized IT programmers and developers have the necessary training required to combine so perfectly and link to each other this large amount of data and information.

Secondly, given the main area of interest in Herbalife's activities, that of wellness industry, it would be quite improbable (although not impossible) for the company to posses their own IT department. Therefore the assumption that the health company requested the services of an external ISP to develop and continually upgrade their online relationship with the customers.

5. Advertisements on the page

It is a common practice for commercial companies to advertise for each other through their web pages. Herbalife's practice of such promotional strategy is at this point unilateral in the meaning that they do advertise their products throughout the official web sites of other companies, but their own web page does not promote the products of other companies.

The advertisements presented on the site of Herbalife only promote the products, services and programs belonging to the wellness company. All the advertisements are sensitive to interaction with the site, in the meaning that clicking on them automatically opens up a new page containing information on the product selected. Moreover, most of the translated versions of the front page present different advertisements, promoting all Herbalife products.

In an attempt to explain this situation, one might believe that the company does not promote products belonging to other companies because they do not need financial rewordings from publicity related activities. Most companies place advertisements on their web pages in order to gain financial benefits from the advertising company. But Herbalife registers sells of over 2 billion dollars and does not need to promote other products, only focusing on enlarging the circle of their own products and customers.

On the other hand, since Herbalife is such a strong competitor on the wellness market and their main priority is to expand even further, they are interested in buying space on the web pages of other companies. In doing so, they widen their range of influence towards several social categories. For instance, by posting an advertisement on the web site www.fitness.com (a virtual feminine magazine on beauty), Herbalife targeted a specific type of customers: elegant and modern women, constantly interested in consolidating and maintaining their beauty.

6. External Promotion of the site

As mentioned before, Herbalife advertises their products on several web pages being on a continuous search for new customers and new target audiences.

Product Advertisements

On the official web site of Fitness, a women's virtual magazine, one can find a short but clear sentence that sends a very powerful message to all women in search for a lighter figure. "Herbalife are great products...I lost 30 lbs. In two months... " says customer Anne Jonathan. After having posted this comment on the web page, an impressive number of Fitness consumers decided to try the Herbalife products. 93% of them declared highly satisfied with the results.

But this is by far the only situation external publicity aided to the growing number of Herbalife clients. In September 2005, a Canadian customers wrote to the Electronic Health Forum: "I had some problems loosing weight. Then, I tried Herbalife products and methods and it has been very good, I lost all my extra pounds and was coached very closely by my distributor. On top of that, I felt with a lot more energies. It feels so good I never expected it could happen like this."

Another web site that promotes the Herbalife products is www.decidehealth.com.Here, not only that the products are being advertised, but interested customers can also place orders under the assistance and guidance of an independent distributor.

Business Opportunity Advertisements

The list of Internet pages that promote the Herbalife products is endless. But the company does not only advertise their products and services, but also the business opportunity offered through their multi-level marketing system.

The web site www.herbalvitality.infodescribes the wellness company as "best company in the industry! Herbalife is the world's leading Health & Nutrition company. At present they have about 30 million customers in 62 countries and 1.5 million thank you letters on file from people they have helped. Herbalife is the fastest growing company in the Wellness Industry."

Another convincing argument meant to attract new Herbalife direct distributors was posted on the www.trimbody.com.au.They promised 25% discounts to all products, extra earnings and free trainings. Moreover, those interested in the program were assured that they would become their own bosses, they would be able to work from home, "have great freedom and unlimited incomes, learn some amazing skills and live a better quality of life."

6. The technology employed by the company

In order to promote their products, Herbalife uses several technologies available such as multimedia advertising or electronic payment systems. The health products are being promoted throughout most existing media channels: television, radio, Internet, indoors and outdoors presentations, free demonstration and samples and the spreading of fliers.

Payment of the ordered products can be realized through direct payment to the distributor, in both cash or cheque, or though bank transfers directly in the company's bank account.

7. Security and privacy policy statements

Given the great complexity of their Internet page, as well the renowned quality of their products combined with Herbalife's reputation, it is only natural that the company shows a great interest towards protecting their products, consumers and the originality of their services.

In this order of ideas, an Internet user browsing through the Herbalife official web page will quite often be able to read copy rights statements such as: "No reproduction in whole or in part without written permission. All Rights Reserved."

Aside from the copy rights, Herbalife also has a separate link to privacy policy. The purpose of the privacy policy is to "inform customers as to what information may be collected from them when visiting the website or when becoming a distributor or customer, how such information will be used by Herbalife and/or other persons or entities, with whom such information may be shared, customers' choices regarding the collection, use and distribution of such information, their ability to edit, update, correct or delete such information and the security procedures that the company has implemented to protect customers' privacy." (Privacy Policy, 22 May 2006)