DXNs Effective Marketing Plan - Case Study Example

DXN's Effective Marketing Plan (Networking) August 16, 2009 Driven by the competitive environment in fashion business, marketers have realized that creating a favorable brand image is a key to win larger market share in its market niche. A perfect marketing plan and strategies should be made to boost the identity of a certain products. Before the strategic plan is come to action, one must identify first the targeted audiences for them to strengthen the brand's effectiveness. This paper critically review a certain products based on its brand image and discusses marketing strategy in reaching their audiences. Brief History In the year 1993, Dato Dr. Lim Siow Jin, a graduate from the prestigious Indian Institute of Technology established his business known as DXN. This business includes dietary food supplements, beverages, personal care products, household products and water treatment system. These products are popularly known as DXN products. "Dato Dr. Lim started the business in quest of the benefits of mushroom on human health" (Corporate Information, 2009). DXN products are based on the Chinese mushroom called ganoderma which is considered the food of the immortals in Daoism. Ganoderma has long been used in traditional Chinese medicine for the treatment of such diseases and disorders as cancer and arthritis, and its bio medicinal value is now being established through a wealth of published literature. DXN uses Multi Level Marketing (MLM) or is commonly known as Network Marketing (DXN marketing, http://www.dxnmalaysia.com/) in promoting and advertising their products. Through network marketing, the rapid global expansion of DXN is recognized internationally by its vast growth of members worldwide and its amplification of footprint in key strategic locations. With over four million registered distributors worldwide, DXN is solidifying its position as the world leader in Ganoderma products (Corporate Information, 2009). DXNs high regard for quality earned the company many outstanding citations and recognitions from various health and business organizations. Since its inception in 1993, "DXN has upheld its concept of One Dragon, One World One Market and One Mind. With this powerful concept, DXN has sailed through continuous growth over the years" (Castillo 2009). DXN logo symbolizes success in business with a very strong marketing plan. Red represents fire to symbolize the company's fighting spirit to progress. Green represents trees to symbolize the dynamic growth and expansion of its market. Blue represents water to symbolize the company as the foundation for all the vigorous developments. The Red Oval symbolizes the rising sun to represent aggressiveness, single-mindedness and persistence in achieving DXNs vision. The Green Branches symbolizes Ganoderma to represent the company's strong commitments for growth and relentless striving to achieve excellence by focusing on health-based industry. The Blue Horizontal Line symbolizes the company as the power source for the impetus of business development (devinder 2007). The growth and life span of any company lies in the strength of its products. DXN products are superior health food products catering to the ever-increasing demands of this health-conscious world. The efficacy of these products alone is proven through many testimonies received from our 2.5 million consumers based worldwide. These products have benefited and helped many people. And on top of enjoying a healthy life because of DXN products, members are assured of lucrative bonuses. The assurance of an excellent product with growing awareness and steady demands, together with a committed company mission holds many promises for an investment that you can be proud of. Target Audiences (Distributors, Consumers) In every business big or small, we have our goal to achieve. Audiences play an important role in achieving this goal because "they are the important stakeholder" (Identify The Target Audience, 2009, par.1). Therefore we must clearly define our targeted audiences because "it's not uncommon for a business to have to refocus and revisit their targeting, especially if it was not clearly identified in the beginning stages of business" (Lake, n.d., par. 1). "Defining your target market will help to strengthen your brand's effectiveness" (Lake, n.d., par. 5). DXN's commitment to consumers is to produce high quality. "Everybody can use DXN Products" because all are purely medicinal that has been approved and certified by the BFAD, USFDA, LLOYD, TGA, ISO, Halal and insured anyone can use the products The distributor itself can be considered as a consumer because from the start of the networking process they need to purchase the products. And then they have to invite other consumer to join to their network and encourage them to patronized DXN products. Maybe some are not aware that they themselves become the major contributor of the products success. DXN's marketing strategy is very powerful; they can even change every individual's point of view or thinking. They introduced the products as a business that everybody can earned but their mean motives is to promote and advertised the products, to build their branding identity stronger. Since real and committed people are working in this business (distributor), DXN can assure that their company will boost. Through sharing personal experiences of the distributor many will be informed and start using the products and join the network. According to Levy S.J in her book that "images is a symbol but refer to refers to it stands for it. In addition to the physical realities of the products, brands, or corporation, the image includes their meanings, that is, the beliefs, attitude and feeling that have come to be attached to them" (p.236). Marketing Plan DXN has a very good strategic plan in promoting and advertising their products. They use real people called a distributer and a consumer as well through a "Multi-level marketing" (DXN marketing, http://www.dxnmalaysia.com/) or commonly known as Networking. MLM (Multi Level Marketing) is simple, pressure free, high rewarding marketing plan which enables everybody to enjoy unlimited income and thereby makes everyone financially independent. Multi-level marketing is system of marketing which puts more emphasis upon the recruiting of distributors than on the selling of products. MLM schemes require that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people....ad infinitum. Only there never is an infinitum to move towards. This may seem unusual to traditional business people. Multi Level Marketing is an attractive marketing method in which the earning potential is unlimited, with the support of your co-business partners; you can earn 5 or 6 figure monthly income. Distributors in MLM schemes receive commissions from their direct sales and a percentage of commissions from sales of other distributors they recruit. Networking is a low-cost activity that involves more personal commitment than company money. Customers use and recommend the Products. Source: How Multi-level Marketing (MLA) or Networking Works http://www.geocities.com/jr.dxn_f/index_files/image041.gif From the above figure through networking, it shows how YOU earn from A-C and the People You Don't Know, but before YOU can enter in the network she or he must purchased DXN products first worth of $18.23 equivalent to P875.00. This includes a lifetime membership and 15-25% product discount. How networking works: 1.) "YOU" uses DXN products and earn. "YOU" teaches "A" to be wise and "A" joins DXN networking. Now, every time "A" uses DXN products, "A" earns and "YOU" earns from "A". 2.) "A" teaches "B" to be Wise and "B" joins DXN networking. Now, every time "B" uses DXN products, "B" earns and "A" earns, at the same time "YOU" earn! 3.) "B" teaches "C" to be Wise and "C" joins DXN networking. Now, every time "C" uses DXN products, "C" earns and "B" earns and "A" earns at the same time "YOU" earn! 4.) "C" teaches the People You Don't Know to be Wise, every time the People You Don't Know uses DXN products, "C" earns, "B" earns, "A" earns and of course "YOU" earns too! DXN encourages their distributor to do the following steps (Key to DXN Success): USE - enjoy the benefits of DXN Products and discover their Strength and Efficiency. SHARE - share your experience with others and encourage them to use DXN Products too. BUILD- Invite and register others into the business, motivate and guide them to be Successful through Prospect and Outlook in the International Markets Prospects for the export of herbal products from Malaysia are promising considering the size of the global market. Europe would still remain the largest market followed by Asia and North America. A share of just 1% of the global market from Malaysian exports in 2006 would result in RM821 million in foreign exchange earnings to the country. Forecast of global sales of DXN products are as follow: (Source: 2003 based on forecast by Euromonitor; 2002 estimate and 2004-2006 forecasts from Spire based on 1997-20). Agencies involved In Advertising DXN Marketing Sdn Bhd ("DMSB"), which conducts MLM activities in Malaysia, is a member of the Direct Selling Association of Malaysia. Besides the DXN Group, other established MLM companies include Amway, Direct selling companies which conduct trade overseas will enjoy a 20% tax exemption as part of an incentive by the Government to boost the sale of local food and DXN products (spireresearch Sdn Bhd, n.d. p.8). The Government has relaxed the policy on licensing for direct selling companies to stimulate the growth of the industry. Opportunities would be made available for Malaysian direct selling companies like DXN to venture abroad to promote their range of products in markets such as Vietnam, China, India, the US and Europe with the signing of ASEAN Free Trade Agreement ("AFTA") and the World Trade Organizations ("WTO") Trade Agreement. International markets and directs selling via MLM and SLM represents an effective distribution channel. This is evident from the growth in sales of DXN products based on the Ganoderma mushroom in Malaysia, Indonesia and the Philippines. One of DXN's marketing strategies is to broaden its market by expanding its network of distributors (spireresearch Sdn Bhd, n.d. p.8). According to Levy S.J, that "The structure of the company's office lobby place a symbolic marketing role, but architects are often either unaware our indifferent to the fact" (236). She adds that "Advertising as an activity is itself symbolic. To advertise is usually understood as a way of being proud and boastful, as something one may do hard or softly" (236). Images, Graphs and figures: DXN Products: Sources: DXN Products, http://www.dxnphil.com/frontoffice/index.phpbar=3 DXN Financial Highlights: Fig.1. Revenue (RM million) Fig.2. Retained Earnings (RM million) Fig.5 Net Asset per Share (RM) Fig.4 Earnings per Share - Basic (sen) Sources: DXN Group, Investor Relations :Financial Highlights, 2009 http://www.dxn2u.com/investor/financial.php DXN Location: Sources: International Branches, http://international.dxn2u.com/global.phplang=en Sources: DXN Product Presentation,December 30, 2007 http://www.metacafe.com/watch/yt-1py2MiR9Qe8/dxn_product_presentation/ DXN Certification: Sources: DXN Product Presentation,December 30, 2007 http://www.metacafe.com/watch/yt-1py2MiR9Qe8/dxn_product_presentation/ DXN chief Executive Officer: "DXN will continuously look ahead and promote exciting opportunities not only for our members but non-members as well...What we can do today would determine the stability of our own successes. What we can do today would set us apart amidst the struggles in the financial market. What we can do together today will rewrite the pages of DXN history." (Dato Dr. Lim Siow Jin, 2009) Conclusion Every business must have a very good and effective marketing plan to boost the identity and images of a certain products. One must realized that creating a favorable brand image is a key to win larger market share. And also to strengthen the brand's effectiveness, one must be able identify their target audiences so that the company can focus in attaining the right goal and not by revisiting the target because it was not clearly identified in the beginning stages of business. The marketers must be responsible enough in producing products with good quality and can meet every customer's satisfaction. They should build friendly relations between the customers or any target audience to achieve their recognition and personal connection. It is not necessary to come up with many plans; one but effective plan is enough. A good marketer therefore plans a little, but changes a lot. DXN's marketing philosophy of "One World, One Market" views the world as one market and therefore seeks to develop and expand its international markets further. DXN views the US and Europe as potential markets to develop because of the large population and high disposable income. References DXN marketing, 2009, DXN Malaysia, viewed 15 August 2009, . Castillo, R (DXN Philippines ltd.), 2009, (accessed August 15, 2009). Corporate Information. 2009, DXN Corporate Information, viewed 15 August 2009, . Devinder, 2009, The DXN's Logo Symbolizes Success, viewed 15 August 2009, . DXN Group, Investor Relations :Financial Highlights, 2009, viwed 15 August 2009, . DXN Product Presentation,December 30, 2007 , viewed 15 August 2009, . DXN Products,2009, viewed 15 August 2009, Read More