Eco-Clean Bathroom cleaner : The product can easily and quickly take out the clean, dirt and grime from each corner of the household and deodorize the house too. All components of the product are vegetable-based. After expansion, following products will also be added to the Eco-Clean product list
Eco-Clean Laundry liquid: The unparallel product is biodegradable, concentrated and a natural laundry cleaner. Eco-Clean Soap : This concentrated product is used for washing all types of washable surfaces, including cabinets, walls, floors etc. 3. Multi-Level Marketing (MLM) Figure 2: Multilevel marketing company, Source: Loanstreet (2017) MLM is a marketing strategy or business model (Talloo, 2007; Debroy, 2013; Girish & Dipa, 2015). In this model, distributors include their income in their sales some percentages are kept for their new recruits or down lines. Customers can also enroll themselves as the company’s distributors for selling the product (Talloo, 2007; Debroy, 2013; Girish & Dipa, 2015). The other systems of this MLM marketing by the companies involve building and managing the sales force through recruitments and motivations of independent distributors (figure 2) (Loanstreet, 2017).
3.1 Working of Multi Level Marketing (MLM) Figure 3: Working of MLM, Source: Loanstreet (2017) The concept is very simple and it can be understood with an example. A long time friend may pursue a person to get involved in MLM marketing and convinces him/her to get introduced to a revolutionary product and become richer by selling the concept. The MLM representative will convince about the down lines, passive incomes and so on for making a new selling agent. It is important to be communicated to customers during the discussion process that, MLM is not a Pyramid Scheme but it is a legal business strategy (Taylor, 2010). Pyramid scheme is a scam with clarity, because no product is sold in this scheme, only the new members’ fees are the source of income among the members. Any new or old member has to enroll a new member, dump the money and get the proportion. A clear distinction is there between pyramid scheme and MLM scheme (Taylor, 2010) . The income generation in pyramid scheme is fully based on the new member’s enrollment; however some products are sold in MLM schemes and the same will be followed by Eco-Clean Company which will sell products through MLM strategy (Loanstreet, 2017). The significance of MLM is that the supply chain of MLM is very short and cost-effective (Loanstreet, 2017). The supply chain in traditional marketing is longer as compared to MLM system, as depicted in figure 4 below:
Figure 4: Traditional marketing vs MLM, Source: Loanstreet (2017) From the door of the manufacturer, the product goes to the distributor, from there to the wholesalers, and then reaches to the retailers, from where it goes to the real users. Supply chain is shortened by MLM companies by selling the products directly to the consumers. The MLM companies claim this system saves customers’ costs (figure 5) (Loanstreet, 2017).
- Winter '17