Grupo Omnilife

Omnilife Group (Mexico) is a company dedicated to the development, production and distribution of dietary supplements in the form of powdered and liquid vitamins. It is also involved in financial consulting, aircraft rentals, publishing, construction, research, biotechnology, and the production of albums and movies. The corporation is owned by Jorge Vergara,^[1] who also owns three soccer clubs: Club Deportivo Guadalajara (Mexico), Chivas USA (Major League), and Chivas Hefei (China). The group is based in Guadalajara, Jalisco, Mexico and employs more than 6,000 people worldwide. Its nutrition and supplementation products are distributed in 24 countries through a network of approximately 6 million sales representatives. Omnilife is considered a pioneer in the dietary supplements industry with respect to the technology it uses to encourage its consumers to adopt healthier lifestyles.^{[citation needed]}

Background

Vergara began working in Herbalife as a salesperson by actually smuggling products into Mexico that had not yet been approved for distribution in Mexico by the Federal government. He was instrumental in helping Herbalife’s founder, [Mark R. Hughes] in obtaining the right to sell in Mexico. (He later urged Hughes to offer vitamins that could be diluted in water, a proposal that was rejected.)

Vergara teamed up with two American colleagues and founded Omnitrion USA in 1989. On September 11, 1991, Omnitrion Mexico was officially founded and the company quickly became very successful. Vergara's associates later sold him the rights for Omnitrion Mexico, whose name was changed in 2000 to Omnilife. It began operations with three employers, six distributors and a total investment of $10,000. Its objective was to recruit many independent sales consultants to sell nutritional and dietary products to a broad public, offering these independent consultants the opportunity to build prosperous businesses marketing products that demonstrate an impressive sales record.

Philosophy

“People that take care of people” (“Gente que cuida a la gente”) means, according to Vergara, bringing better health and vitality to many people through an energetic and dedicated marketing force. The company promotes empathy with clients, showing respect toward them and having patience with them. They also encourage clients to care for the environment, support education, and participate in sports activities—things Vergara considers very important for all of society.

Marketing Strategy

Vergara has developed and adapted the system called “Multidesarrollo” (Multilevel Marketing) that was developed by, among others, [Herbalife] in Latin America. ^{[citation needed]} The distribution system is one in which the company contracts with independent sellers who, in turn, are encouraged to recruit more independent sales representatives under them to create a large sales and distribution network. All sales are made through use of a company catalog, but products can also be found in stores.

Presence

The company currently operates in Latin America, the United States, and Spain, manufacturing more than 70 different nutritional and dietary supplements. Headquartered in Guadalajara, Jalisco, Mexico, as of 2012, it directly employs more than 6,000 people around the world. Additionally, a network of about 6 million distributors serve 24 countries worldwide. Omnilife Group has become, in only two decades of operation, one of the top 200 companies in Mexico.

Omnilife's Other Branches

In 1992, Omnilife founded Omniflys, a company that offers aerial taxi services for executives. The same year, it hosted the first Omnilife Extravaganza in Cancun, Mexico, the first in an annual event, a massive fiesta, that brings together over 350 employers. In 1993, Ego Development (Desarrollos Ego) was created to focus on research and development of new nutritional products for the company. It has signed an agreement with the IMSS to create FIDEIMSS, a fund to support athletes. It publishes an international magazine, Omniluz, that focuses on the company’s philosophy, products, distributors, and health related issues.

References