Case Description

2012
Case Study – Ready for Noni?
The following case is fictional! It is t based on real-life situations and the
company Tahitian Noni International (permission requested).
Author: Katja Zeidler
Pictures ©Tahitian Noni International, Inc. Permission requested.
Institute: School of Economics and
TAHITIAN NONI® Juice is a registered trademark of Tahitian Noni
Business Administration (FSU Jena)
Internationa.l
02.04.2012
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Tahitian Noni International - The Company
Morinda, Inc. is the parent company of Tahitian Noni International [TNI],, which was found in Provo
(Utah, USA) in 1996. TNI was the first company selling
selling products on the basis of the Noni plant with its
beneficial features.
Illustration1: Tahitian Noni International, Headquarter
eadquarter in Provo (USA)
The plant is received from French Polynesia (Tahiti) only and exported to the U.S. for processing in
order to produce a variety of products using the pulp, seeds and/or leaves. Every element contains
ingredients which can contribute to a physical well-being.
well being. The leaves for instance contain ingredients
that soothe the skin. The
he seeds contain linoleic acid (an essential fatty acid) which can influence
general health as well as the moisture content of the skin positively.
Illustration 2:: Noni plant (lat. Morinda citrifolia)
The pulp is full of antioxidants which support the endogenous defense system and increase the
energy. These versatile ingredients are the basis for the extensive product range, like for instance
beverage, healthy treats, beauty products and food for animals.
In order to discover new effects of the versatile ingredients, TNI does research and carries out quality
q
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control measures. This, the uniqueness of commodities, the production of raw materials and the
independence of trends (since most ingredients are produced by the company itself) are considered
as competitive advantages.
The aim of the company is to increase their customer’s quality of life by producing qualitatively
valuable and innovative products on the basis of the Noni plant. Since TNI receives the Noni plant
from French Polynesia, it feels strongly connected to Tahiti’s history and thus, made it a rule to save
and protect the unspoiled and natural resources of the island.
Illustration 3: Tahiti
The headquarter of TNI is situated in Provo, Utah (USA). It consists of the commissions department
and compliance department, a call center, a training unit, event halls, a store and a restaurant. There
are two warehouses from with orders a shipped around the USA, American Fork Warehouse and
Tennessee Warehouse.
The people working for TNI are mainly U.S. citizens. Yet, especially in the call center there are people
coming from various parts of the world as well, such as Mexico, Peru, Haiti, Russia, Germany,
Portugal, Venezuela, etc. These people are mainly students who are able to speak at least two
languages.
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Corporate Leadership
Board of Directors
•
Mr. Kerry Asay (founder, president and CEO of Morinda Holdings, Inc.)
•
Mr. John Wadworth (founder, president of Tahitian Noni International, vice president of
Morinda Holdings, Inc.)
•
Mr. Kelly Olsen (founder and strategic marketing expert of Tahitian Noni International, vice
president of Morinda Holdings, Inc.)
•
Mr. Kim Asay (founder and vice president of Morinda Holdings, Inc.)
•
Mr. Stephen Story (founder and vice president of Morinda Holdings, Inc.)
Illustration 4: Board of directors
Executive Committee
•
Mr. Robert Johnson (executive vice president)
•
Mr. Cim Carver (vice president of global sales)
•
Mr. Jeff Wasden (vice president of global marketing)
•
Mr. Charlie Smith (vice president of operations)
•
Mr. Randall N. Smith (chief financial officer)
•
Mr. Richard Rife (general counsel)
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How The Company Does Business
There are many ways to do business with TNI. One way is to place an order online or via telephone
(toll-free order line) as a retail customer, which implies that the full price (retail price) for all products
has to be paid, e.g.:
•
•
•
TAHITIAN NONI® Juice (one liter bottle): USD 38.00
TAHITIAN NONI® Juice (one liter bottle) 2-pk: USD 70.00
TAHITIAN NONI® Juice (Case / 4 (one liter bottles): USD 135.00
A similar way is to become a referring customer, which means you place orders and recommend TNI
products to friends and your family. If your friends or family members place orders and refer to you,
you receive commissions. In addition you don’t have to pay an enrollment fee and can by products
according to the Auto Ship Pricing (wholesale pricing):
•
•
TAHITIAN NONI® Juice (one liter bottle): USD 31.50
TAHITIAN NONI® Juice (Case / 4 (one liter bottles): USD 126.00
However, as a referring customer you are supposed to order one bottle of juice each month. Another
way to do business with the company is to become an Independent Product Consultant (IPC). As an
IPC you distribute TNI products to other people (retail customers or other ICS in your down line) and
earn commissions whenever a customer places an order and refers to you. You can benefit from all
bonuses available (e.g. trainings, events, 20% rebate on all other orders) and obtain all products at
wholesale price, e.g.:
•
•
•
TAHITIAN NONI® Juice (one liter bottle): USD 34.00
TAHITIAN NONI® Juice (one liter bottle) 2-pk: USD 65.00
TAHITIAN NONI® Juice (Case / 4 (one liter bottles): USD 126.00
However, as an IPC you are supposed to place a minimum order worth 120 Quality Value [QV] points
(e.g. a case of juice) per month and to pay a one-off sign-up fee of USD 35.00. If you participate in the
Case Auto Ship program, a case of juice is sent to you automatically each month if you don’t make
call to place an order worth 120 QV points. A cancellation from the program is possible at any time. If
an IPC brings in new distributors, he or she will be rewarded with bonus points and commissions. In
case a distributor (IPC) decides not to do business with TNI anymore, the IPCs in the down-line are
transferred to the next person in the up-line (no pyramid selling). In case there is no up-line, the IPCs
are transferred to another IPC who was not included in the line beforehand.
The company accepts Visa, MasterCard, American Express, Discover card, Bank Drafts, Certified
Checks and Money Orders for retail orders. IPCs usually pay using their credit card (Visa, Discover
Card or MasterCard) or debit card. In case customers are not satisfied with the products, they get all
their money back immediately.
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Future Aims
Since 1996 TNI has been developed into a leading company in the discovery, development
manufacturing and marketing of products based on the Noni plant. Doing business in over 70
markets around the world (e.g. USA, Australia, Great Britain, Ireland, Canada, Estonia, France, Japan
Russia, etc.), the company is planning to access the German market with its TAHITIAN NONI® Juice.
Illustration 3: Supplement Facts
Illustration 4: TAHITIAN NONI® Juice
TNI suggests drinking 1 fluid ounce (30ml) of TAHITIAN NONI® Juice twice a day. Since the flavor of
the Noni pulp is rather unpleasant, grape juice concentrate and blueberry juice concentrate were
added. It was the first company receiving admission to distribute the juice, therefore it took on
extensive and expensive proceedings according to the Regulation (EC) No. 258/97 concerning novel
foods and novel food ingredients.
In case the distribution of the juice in Germany will be successful, more products
roducts shall follow.
Furthermore, the company would want to access other markets around Germany, such as
Switzerland and Austria,, in order to increase its market share in Europe.
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