ChapterIIntroduction I.1Background Thedietarysupplementindustryhasbeenshowingverypromisinggrowththroughoutthe years.From2014until2018,theglobalmarketescalatedfrom71,4billionto91,2billion Euroandthecompoundannualgrowthrate(CAGR)isatasteady6,3%(PwCDeals,2020). TheimpactofCOVID-19pandemicin2020hasonlyincreasedthisnumberasmorepeople paymoreattentiontopreventivehealthbyconsumingdietarysupplements,notonlythe onesdiagnosedwithparticulardisease.Followingthesubsidingofthepandemicin2022, themarketwasvaluedatUSD152,3billionandpredictedtoreachUSD269,5billionin 2030(VantageMarketResearch,2022).MeanwhileinIndonesia,thevaluationwasUSD1,9 millionin2021withaCAGRof7,7%(CoherentMarketInsights,2022). FigureI.1VitaminandDietarySupplementsTrendOverviewin€B Source:(PwCDeals,2018) Themarkettrendofdietarysupplementsuseisincreasingandithasmultipledrivers. Dietarysupplementhasthehighestproportionofthenutraceuticalmarketthatincludes functionalfoods,foodsformedicalpurposes,andvitaminanddietarysupplementitself amountingto26%.ThefirstdrivermentionedbyPwC(2018)explainingthismarkettrend ishowtheconsumersareincreasinglypayingmoreattentiontotheirhealthandtaking preventivemeasurestoboosttheirimmunesystemandprovidethemselveswithessential 1 nutrients.Followingthatisthevariousneedstomeetdifferentpopulationsegments dependingonparticularage,sex,lifestyle,andmedicalrecords.Theneedsmainlyfocused onprobioticsupplements,fattyacids,andproteinsupplements,thatwereprovenbeneficial forgutordigestivehealthandphysicalperformance.Notonlythat,asdigestivediseases increased,therequirementforenzymesupplementsalsohasbeenincreasing.Therisingcost tohealthcareinordertotreatthisproblemhasmadethepubliclookformoreaffordable ailmentslikeadditionalsupplement.Withallofthesedrivers,thedemandforsupplements continuestoescalate(PwCDeals,2020). FigureI.2DietarySupplementMarketSizePredictionfor2022-2030in$B Source:(VantageMarketResearch,2022) TheFederalFoodandDrugsAct(FDA)defineddietarysupplementsassubstancesintended toaddortosupplementthedietandaredifferentfromconventionalfood.Itcouldbecreated toratherprevent,cure,ordiagnoseacertaindisease(USFDA,2022).TheDietary SupplementHealthandEducationAct(DSHEA)describeddietarysupplementsasaproduct intendedtosupplementthedietthatcontainsoneormoreof:avitamin,amineral,anherb orotherbotanical,anaminoacid,adietarysubstance,oraconcentrate,metabolite,extract, ofanyingredientdescribed(IMNRCC,2005).Remediesmadefromplantshasbeencreated sinceancienttimestracedback60,000yearsago,namelybytheEgyptians,Greeks,Indian, andChinese.Theknowledgeofpotentialhealthbenefitstheseprehistorictraditional medicinesservedhasbeenusedbyresearchersandtheadvancementoftechnologiesasa basetocreateourmodernmedicineanddietarysupplements(Yuanetal.,2016). 2 FigureI.3DifferentFormsofDietarySupplements Source:(Unknown,n.d.) Asthemodern-daysupplementscontainmoreandmoreingredients(naturalorchemical),a properandstrictregulatoryframeworkwascreatedtoensurethesafetyofthedistributed products.TheU.S.governmentestablishedthefirstregulatorTheFederalFoodandDrugs Act(FDA)in1906servingthepurposetoensuresafetyandclaimsofbenefitsderivedfrom theproduct(IMNRCC,2005).Thelawsprovidedaccountabilityandprotectedthepublic fromfraudfoodsanddrugs,especiallyaftertheagencyreleasedthelabel‘FDA-approved’. Asupplementcanstillbedistributedwithoutthislabel,butitwillbeconsideredacategory offoodandnotdrugs,andstillsubjecttoadifferentsetofregulations.Meanwhilein IndonesiaBadanPengawasObatdanMakanan(BPOM)servesasimilarfunctiontothe FDAandwasinauguratedin2000throughPresidentialDecree. Thedistributionofdietarysupplementwassegmentedintoseveralcategoriesbyvarious studies;namelybysupplementtype,byform,byfunction,andbydemographic.Globally, vitaminsarethemostwidelyconsumedsupplementtype,followedbyminerals,protein (aminoacids),enzymes,andprobiotics(FortuneBusinessInsights,2022;VantageMarket Research,2022).Tabletistheleadingform,followedbycapsule,powder,liquid,softgels, andgelcaps.Thepurposeofsupplementintakeismostlyasadditionalsupplementsthat 3 supporthealth,followedbymedicinalsupplementsandrequirementsforsportsnutrition. Comparedtoothergroups,pregnantwomen,oldagepopulations,children,andinfants,are theoneswiththehighestconsumption.InIndonesia,themarketresearchisstillconsidered slim,butitisknownthatmedicinalsupplementsstillservethehighestdemandwithrising awarenessregardingpreventivehealtheversincetheCOVID-19hits(CoherentMarket Insights,2022). FigureI.4GlobalDietarySupplementsMarketSharebyType Source:(FortuneBusinessInsights,2020) Asanyindustry,thecompetitionforatrendingmarketishighwithmajorandminorplayers fightingfortheconsumer’sattention.ThemajorplayersareHerbalifeNutritionLtd., AmwayCorp,AbbottLaboratories,andADM,allbasedintheUS.Giantmanufacturers recentlyhavecollaboratedwithsmalleroneswithmorespecifiedproductstoreachmore consumers(FortuneBusinessInsights,2022).Forexample,Herbalife’spartnershipwitha localnon-profitorganizationinMexicotoaddressfoodinsecurityorhowADMacquired DeerlandProbioticsandEnzymestocreateprobiotics(VantageMarketResearch,2022).In Indonesia,themajorplayersasof2021wouldbemultinationalsupplementmanufacturers includingBASFSE,Herbalife,Pfizer,Amway,andGlanbia,followedbyafewnational corporationsthelikesofPTSidoMunculandPTDarya-VariaLaboratoriaTbk(Coherent 4 MarketInsights,2022).Differentapproachesareusedbytheseplayerstodistributetheir products,suchasthroughretailstores,Multi-LevelMarketing(MLM),healthcare practitioners,events,tradeshows,andmanymore. FigureI.5MajorPlayersofDietarySupplementinIndonesia Source:(Unknown,n.d.) Thereisatrendpredictedinthedietarysupplementindustry,anditisaffectedbythe consumer’spreferencesandtheexogenousfactors.Thefirsttrendisthegrowingawareness bythepublicontheimportanceofoverallhealth,wellbeing,anddiseaseprevention.Itis drivenbythespeedygrowthoftechnology,availabilityofonlinehealthportals,websites, andsocialmediawhichprovidesaspaceforhealthawarenessmessagestobespreadmore easily.Thesecondisthatmorepeopleareusingdietarysupplementstoimprovetheir performance,recoverfromexercise,orbuildmuscle.Popularityoffitnessinyoungadultsis responsibleforthisworldwidetrend.Lastly,therearemoreandmoregroupswithspecific andpersonalizedhealthneeds,suchastheelderlyandpregnantwomen,thenewlyrising veganandvegetariandiettrendinEurope,ortheadoptionofasedentarylifestyle.The growingnumberofelderlypeoplerequiresthemtotakesupplements,meanwhilepeople withsedentarylifestylesrequiresupportevenbeforetheymature(PwCDeals,2020). 5 Dietarysupplementsarewidelyknowntobedistributedthroughindependentaffiliatesusing themulti-levelmarketingbusinessmodel.Multi-levelmarketing(MLM)isabusiness strategywhereacompanyrecruitsindividualstosellproductsdirectlytoconsumers, typicallythroughword-of-mouthmarketingandpersonalrelationships.Inthecontextof dietarysupplements,MLMcompaniesoftenutilizethismodeltodistributetheirproducts.It typicallyinvolvesrecruitment,productpurchase,recruitmentofdownline,buildingateam, andanintricatecommissionstructure.Thisbusinessmodelissocommonandsuccessfulfor dietarysupplementsdistributionthatitssalescover29.5%oftheentireMLMindustry globally(Gitnux,2023).Healthandwellnessisthefastestgrowingindustrythatutilizesthe MLMmodel,evenconsideringthehighfailureratebyindividualaffiliates.In2022,about 1.4billionU.S.dollarsofthedirectsellingindustryorMLM'sretailsalesweregeneratedin Indonesia(Statista,2022).Theretailsalesvalueofthedirectsellingindustrygeneratedin Indonesiahadincreasedbymorethan400millionU.S.dollarsoverthepast10years.Although thereisasalesreclinationduringtheCOVIDperiod,herebyisapredictionoftheglobal MLMCAGRfollowingtheresurrectionpost-COVID19. FigureI.6MLMGlobalRevenuePredictionfor2022-2030in$B Source:(ZionMarketResearch,2022) 6 EvenwithapositiveCAGRinIndonesiaandworldwide,thedietarysupplementindustry servesitschallenges.Firstly,thedifficultregulatoryframeworkthatbecomesmore complicatedeachyear,eitherbytheFDAorBPOM.Secondly,therisingnumberoffake supplementsandfraudcasesleadstothedecreasingtrustofconsumers(PwCDeals,2020). 4LifeResearchhasstrategicallychosenIndonesiaasadistributionhubduetothegrowing healthandwellnesstrendwhichoffersasubstantialmarketpotential.Thisupwardtrajectory inhealthconsciousnesshascreatedanaudiencethatiseagertoembraceproductsthat promotehealthylifestyle,facilitatingthecompany'sbusinessgrowth.Whilechallenges exist,suchasregulatorycomplexitiesandcompetition,4Lifeiscommittedtoactively addressingtheseissuestoensureitssuccess.BytappingintoIndonesia'sevolvinghealth market,4Lifeiswell-positionedtoscaleitsbusinessandserveanationincreasinglyinclined towardsahealthierwayoflife. I.2CompanyProfile FigureI.74Life:TheImmuneSystemCompany Source:(4LifeWebsite,n.d.) 4Lifeisacompanythatmanufactureshealthcaresupplementswhichfocusonimprovingthe immunesystem.4LifeisprivatelyheldbytheLisonbeessinceitwasfoundedin1998. FounderandChairmanofTheBoardDavidLisonbeecreated4LifealongsideBianca 7 Lisonbeewithauniqueproductformulationthathasneverbeendevelopedasasupplement. Theheadquarterandresearchcenterof4LifeisinUtah,UnitedStatesofAmerica.Ithas sincedevelopedaglobalpresencetoover50countriesintheAmericas,Europe,Oceania andSouthPacific,Eurasia,andAsia(includingIndonesia).Thelatestdatastated4Life employeesamountingto5,405worldwidewithannualrevenueof$324millionin2021 (RocketReach,n.d.,4Life,n.d.). FigureI.6Leadersof4LifeGlobal As4Lifeentersits25yearsofoperation,ithasshownitspartinmakingitsbusinessand overallbetterglobalhealth.Ithasachievedmanyawardsandrecognitionthatshowsits commitmenttoproductquality,innovation,andbusinessexcellence.Moreover,4Life receivedanA+ratingbytheBetterBusinessBureau(BBB)andmultiplehonorsfrom differentawardsprograms.4Lifealsocurrentlyholds5patentsovervariousformulations, affiliatedwithmultiplehealthorganizations,collaboratedwithmultiplenotablesportsmen, andengagesinnumerousglobalcommunities(4Life,n.d.). Theawardsthat4Lifehasachievedweregivenformultiplecauses.Thelatestawardswere in2022byTITANBusinessAwards,aninternationalplatformthatrecognizesandhonors industriesfortheirinnovationandleadership,thatawarded4LifetheGoldTitanAwardBest inHealthandGoldTitanAwardBestConsumerProductsfor4LifeGoldFactorproduct. 8 Otherproductsof4Lifehavealsowonawards,suchastheEssentialOilandthe30-day AcceleratorSystem.Previously,therewasalsotheGoldenBridgeAwardsgivento4Lifein 2019honoringtheirtechnologyandformulationasasignificantcontributorinthedietary supplementbusinessandtechnology.Multipleawardswerealsopresentedfor4Life’s marketingstrategy,successfulcampaign,eventhestrategicdevelopmentintheaftermathof HurricaneMariain2018(4Life,n.d.). Therearemultipleimportantaffiliationsthat4Lifehasdeveloped.BetterBusinessBureau (BBB)isthefirstprivate,non-profitorganizationworthmentioning.BBBaimstopromote themarketplace’strustanditsmembersthatprovidebusinesseswitharatingsystembased ontheircustomerserviceperformance,itsabilitytohandleconsumercomplaints,and publishcustomerreviews.FarmersAssuringResponsibleManagement(FARM)andUnited EggProducers(UEP)isalsoanotablefederationtomention,considering4Lifesourcesits mainingredientfromdairiesandpoultry.FARMandUEPhelptosetstandardsandprovide guidancetokeepanimalwelfareprinciples.ToalignthemselveswithFDA’srequirementof supplements,4Life’smanufacturingfacilitieswereregisteredtotheNSFInternationalGood ManufacturingProcessesandInternationalAllianceofDietary/FoodSupplement Associations(IADSA). FollowingthesuccessintheUS,thejourneyof4LifeinIndonesiastartedin2008.According tothepreliminaryinterviewwithoneofthefirstemployees,thejourneyof4Lifein Indonesiawasstartedwiththe4LifedistributorsfromneighboringcountriesofSingapore andMalaysia.TheytookseveralproductstoIndonesiaanditwasshowinggreatsalesdueto itsbenefitstohumansandanimals.Withthegrowingawarenessandsales,thedistributors pitchedtoSouthEastAsianaffiliateleaderstoopenabranchinIndonesia.TheUS representativeof4Lifeagreedwiththeidea,henceproceededwiththeprocessofcreatinga businessentity(PerseroanTerbatasorPT)inIndonesiaaccordingtotheIndonesianbusiness law.ThefirstappointedGeneralManager,DeddyAryadi,usedtobeapartofacompetitorin thesameindustryas4Life.Tojumpstart4Life’sgrowthinIndonesia,heimmediatelystarted 9 collaboratingalongsidetheMalaysian4Lifedistributorthatpreviouslybrought4Life’s productstoIndonesia,andhiredbusinessandBPOMconsultantstobetterunderstandthe initialbusinessandmarketsituation. AryadiworkedhardalongsidetheUSrepresentativestobuildmoreawarenessof4Lifein Indonesia.Withthemulti-levelmarketingmodelreachingitspopularityin2012,Aryadi invitedmultiplebestaffiliateleadersfromhisoldteamtojoin4Life.Aryadiwasknownas someonewhowouldgoalongwaytoreach4LifeIndonesia’sgoalingainingandbuilding newaffiliatesaswellastocreateawareness.Hedecidedtofocusthesalesonthedietary supplementproducts,andnoton4Life’sbeautyproductsduetoitshighcompetitioninthe industry.SincethecompanystarteditsjourneyinIndonesiain2008to2013whenAryadi resigned,thesaleskeptincreasingtothetoneof31trillionrupiah. FigureI.74LifeIndonesia’sConventioninSurabaya Source:(4LifeIndonesiaMarketingTeam,2023) InIndonesia,4Lifebusinessesfocusonsellingproductsandlessontheresearch.The divisionsestablishedaremarketingandevents,businessdevelopment,customerserviceand compliance,operations,andfinance.ThebusinessprocessstartedbytheGMandDirector ofSalesandMarketing’sdirectionuponacertainstrategy,whichwasthenarticulatedbythe restoftheteam.PT4LifeIndonesiaTradingmovesonthebasisofamarketingplanorLRP, 10 whichwillbeexplainedfurtherinthesub-chapter1.2.3.Theaffiliatesordistributorsarea crucialpartof4Lifeastheyaretheonlycashgeneratingarmsofthecompany.Theyarenot employeesofthecompanybutactasapartneras4Lifeusesthedirectsellingmethod, specificallymulti-levelmarketingbusinessmodel. 1.2.1CompanyVision,Mission,andCoreValues 4Lifeprovidesmultiplehealthsupplements,butitfocusesonbeingthebestimmunesystem multivitamincompany.Backin1998,DavidLisonbeeaspiredtomakehisfamilygainthe bestaccesstowellnessandqualityoflife.Hebuilt4LifeResearchthencreatedtheTransfer Factorformulationandmostoftheirproductsrevolvearoundinnovatingdifferentwaysto deliverTransferFactorsallaroundtheworldforeverypopulationcategory.TheTransfer Factoristhekeyformulationmadeby4Life,anditwasproventobeeffectivetoincrease immunity.Yearsofresearchanddiscoverywasdonebeforeaproductwasbeingsold,using thenewesttechnology,prominentscientistexpert,andwentthroughhundredsofteststo ensureitsquality.Itis4Life’svisiontobringaTransferFactortoasmanypeopleas possibleandenjoyitsimmunomodulating 1 effect. Therearefourcorevaluesthat4Lifestronglyholds,threeofthemwerechampionedby DavidLisonbee,andtheotherbythecurrentCEO.Thefirstoneisrelatedtoitsname,4Life Research,science.Thesecondisrelatedtoitsbusinessmodelofaffiliation,success. Followingthatistheheartof4Life,service,meaningtogivebacktothecommunity.The currentCEO,DannyLee,desirestocontinuethefounder’sdreamandaddshisowntwistto it.Dannyfocusesononemodernobjectivethathasbeenproveninmanyotherbusinesses thatitwillsupportgreatgrowthinacompany.Hewantedtobringthefunandseamless experiencetoeveryinteractionthatwasmadeby4Life.Dannycreatedanewstandardof customersatisfactionthatbecomes4Life’sfourthvalue. 1 Regulatingandmodulatingimmunitytobecomestronger,achievedbyenhancingorreducingtheimmuneresponse dependingontheindividual’sneeds. 11 FigureI.84Life’sCoreValue Source:(4LifeWebsite,n.d.) Scienceisthefirstcorevalueof4LifeResearch.Withoneofthemainchallengesinthe dietarysupplementsindustrybeingtherisingnumberoffakeailments,4Lifestrivedtobring scientificdiscoverytoeachoftheirproductsandtransparencytoitsconsumers.The4Life TransferFactorformulationisthemostimportantdiscoveryin4Life,astheysuccessfully provedthatimmunitycanbetransferredandconsumedorally.Thisformulationwas patented,certified,andbecamethebaseofmanyotherproductsof4Life.Thedifferent productscomingfromtheTransferFactorformulationdiversetonumerousdelivery methodsincludingcapsules,tablets,chewabletablets,juicebeverages,powders,andtopical products.Ontopofthat,4LifeResearchalsoreleasedmultiplejournalsrelatingtotheir productsanditseffectivenessthatcanbefoundontheirwebsite. Thesecondcorevalueof4Lifeissuccess.4Lifepositionedtheiraffiliatesasanexclusive community,notasacorporation'semployee.Affiliatesreferstothepeoplethatsignedup, officiallyauthorizedtosell4Lifeproducts,andmayearncommissionsfortheirsales. ComparedtotheircompetitorsthatalsouseMulti-LevelMarketing(MLM)method,4Life wasconsideredoneofthetopnetworkmarketingcompaniesthatprovidelotsofbenefits andthehighestpayoutstotheiraffiliates.Multiplerewardprogramsareofferedfromthe short-termreward,themonthlyandoccasionalreward,levelupgradereward,allthewayto luxurioustripsifanyonemanagestoreachacertaingoal.Monetaryincentiveisonething, but4Lifeknowsthatpeoplearebeyondmaterials,andtheyputlotsofefforttoemotionally rewardtheaffiliates.Worldwide,4Lifeheldmonthlyrecognition,adedicatedeventto 12 celebratetheaffiliatesthatmanagedtoincreasetheirlevelorreachedanoutstandingselling performance.Thecompanyalsooftenholds4Lifeevents,expos,andtrainingforthese affiliatestosharewitheachotherandbuildtheirsuccesstogether. Anothervaluethat4Lifeperformsisservice.4Lifeestablishedanon-profitentity, Foundation4Life,andfor-profit4LifeFortifynutritionprogram.Thefoundationaimstoaid unfortunatechildrenandunderprivilegedcommunities.Meanwhile,4LifeFortifyfocuseson providingspecialnutritionforchildrenandfamiliesthroughdistributionofcharitybags whichincludesrice,lentils,beans,anutritionalcomplexofvitaminsandminerals,and 4Life’scoreproduct,the4LifeTransferFactorTri-FactorFormula.Unlikethefoundation whereaffiliatescanparticipatedirectlytothecommunity,4LifeFortifybagscanbe purchasedandbecomesapassivewayforthemtoparticipateintheglobalhungercrisis. FigureI.9Foundation4LifeIndonesia Source:(4LifeIndonesiaMarketingTeam,n.d.) Thelastvalueissatisfaction.PresidentandCEOof4LifeResearch,DannyLee,considered thatsatisfactionisaveryimportantadditiontothe4Lifecorevalues.Hewantedtomake surethateveryonethatcomesacross4Life’sproducts,affiliates,events,orcustomerservice, mighthaveapleasantexperiencethatmadethemwanttocomebackforanotherpurchase. 13 Therearedifferenttemporarydealsanddiscountseverysinglemonthandaloyaltyprogram thathaspointsthatcanberedeemedforfreeproducts.4Lifealsoprovidesa100%30-day moneybackguaranteeiftheproductsthatreachedtheirconsumers’handisnotperfectasit wasclaimed. Thesefourvaluesarenotjustapplicableto4LifeResearchintheUS.InIndonesia,science isappliedbymakingsureeachproductthatisimportedtothecountryisadministeredtothe BadanPengawasObatdanMakanan(BPOM)andheedtothenationalregulations.For example,4LifeIndonesiarequestedfortheTransferFactorCardioproducttobedividedinto twodifferentproductsduetoBPOM’sregulation.EveryproductmustbelabeledbyBPOM beforetheyaredistributedtotheIndonesianmarket.Todeliverthesuccessvalue,4Life Indonesiaappliesasimilarbusinessandnetworkingmodelthatallowsaffiliatestomakethe mostoftheirtimein4Life.Foundation4LifealsoconsistentlyplaysaroleinIndonesia, withthelasteventheldinJune2023whereaffiliatesandemployeeshelpedtorenovatea readinghouseinavillagenearSouthTangerang.Thesatisfactionvaluecanalsobeseenin howevery4LifeIndonesia’semployeestreattheiraffiliatesandconsumerstobestdeliver theproductandservice. 1.2.2CompanyProducts Therearemanycategoriesofproductswhichwillbeexplainedinthispartofthechapter, butthemostimportantistheTransferFactor.Toputitinasimpleway,TransferFactorisa moleculethattransfersimmunesysteminformationfromonecelltoanother.Thetermitself wasnotfoundfirstby4Life,butbyH.SherwoodLawrence,ascientistthathasproventhat immunitycanindeedbetransferredfromoneorganismtoanotherwhenithasundergone lysisorbreakdowns(Fudenberg,HH.andPizza,G.,1993).Althoughsuccessful, Lawrence’sinventionfaceditschallengeswhenblood-bornediseasesuchasHIVcameup andcreatednegativesetbackstotheresearch.4LifeResearchlatermanagedtocreate TransferFactorsthatcanbeadministeredorallywhichhaslesssafetyhazard.4Life’s 14 TransferFactorisderivedfromcowcolostrum(thefirstmilkthatcameoutofmammalsa fewmomentsaftertheygivebirth)andchicken’seggyolk.Thesetwomaincompoundsthe laterwentthroughasophisticatedfilteringprocess(UltraFactor,OvoFactor,and NanoFactor)thatleavesthemwiththeTransferFactor,whichwasproventoimprovethe NK(naturalkiller)cellsandimprovetheirconsumer’simmunityin2hours(Vetvicka,V. andVetvickova,J.,2019). FigureI.10IllustrationofTransferFactor(blue)EducationImmuneCells(white) Source:(4Life,n.d.) Productsof4LifepredominantlycontainTransferFactorswithadditionofmultiple componentsthateachfocusondifferenthumanbody’ssystems.Therearethecoreproducts (differentvariationofpureTransferFactor),targetedproducts(systemspecific),RioVida (antioxidants),RiteStart(goodnutrition),Digest4Life(digestivehealth),4LifeTransform (bodytransformation),Energy(energybooster),4LifeElements(purifiedatomicminerals skincare),enummi(toiletries),and4LifeFundamentals(vitaminormineralspecific). Majorityofthenamedproductscamefromcapsules,butsomearepowdered,ingelform, gelcapsules,juice,cream,evengummies.Eachproductservestheirownmarket 15 segmentationthatcoversdifferentdemographicprofilesandbehavior.Itisimportanttonote thatnotall4Life’sproductsarebeingdistributedinIndonesia.Eachoftheproductswillbe brieflydiscussedhereasitwillbepivotalforthisresearch. FigureI.11Rangeof4Life’sProductsinIndonesia Source:(4Life,n.d.) Thecoreproductcoversallthemainproductsof4Lifethatfocusesontheimmunesystem only.The4LifeTransferFactor(TF)Classic,TFTri-Factor,TFPlus,TFChewable,andTF ImmuneBoostarethenotablefiveproducts,supportedbythreeotheradditionalproducts. AllthemainproductscontaindifferentamountsofTransferFactorandworkagainst differentimmunecells.TheClassicisproveneffectivetoimproveNKcellsanditwas solelymadeofcowcolostrum.MeanwhiletheTri-FactorandChewablecanimproveT&B cellsbecauseithastheadditionofTransferFactorfromchickeneggyolk.TheChewable doesnotcomeinacapsule,butasweetcitruscreamtablet.TheTFPluscanimprovethe numberofmacrophagesduetoitssuper-mushroomblendandzincadditionthatmakesitthe 16 strongestimmuneboostercomparedtotheotherproducts.Lastly,TFImmuneBoostcomes inapowderedformandprovidesantioxidantfunctionbecauseithasahighVitaminC content.Outofthefive,onlyTFTri-Factor,TFPlus,andTFChewable.Ontheotherhand, outofthethreesupportingproductsthereisonlyonesupportingproductthatgetsdistributed inIndonesia,whichistheTopicalGel/RenewAll.Twoothersupportingproducts,the ClassicPowderFormulaandTFImmuneSprayhavenotyetreachedtheIndonesianmarket. ThetargetedTransferFactoristhecategoryfor4Lifeproductsthatwasmadetosupport differentspecificsystemsinthehumanbody.AllthetargetedproductscontainTransfer Factorsindifferentamountsandwhencombinedwithdifferentcompoundsorherbal materialsthatwerealreadystudiedmayimproveacertainsystem.HalfthetargetedTF madeittotheIndonesianmarket,whicharetheCollagenTypeI,Cardio,ReCall,Vista, GluCoach,andBelleVie.Theotherhalf(CollagenTypeII,Lung,KBU,Metabolite, GlutaminePrime,MalePro,FeelRite,Reflexion,andSleepRite)hasnotyetenteredorisstill beingheldforcommercialawaitingBPOMfordistributionaccesschecking.4LifeIndonesia hadtomakeadjustmentsregardingthetargetedproductsbecauseBPOMdoesnotallow herbalproductstobemixedwithmultivitaminanddistributedinthesamecapsule.For example,thevitaminsandmineralsinCardioandGluCoachhadtobetakenouttocreatea newproductthatonlyexistsinIndonesia,the4LifeTargetedVitamin&MineralComplex. RioVidaisoneofthebest-sellingproductsof4Life,worldwideandinIndonesia.Itsmain ingredientsaresuperfruitsextractshighinantioxidantsthathelpthehumanbodytobeatfree radicalsandprotectfromharmfuldiseases.WiththeadditionofTransferFactor,RioVidais proventobeeffectivetoimprovetheimmunesystemevenstronger.Otherthanthehealth benefits,RioVidagaineditspopularityduetoitsgreatberry-liketastethatisdelicious.It comesinvariousforms,whichareliquid(RioVidaJuice),powdered(RioVidaStix),gummy (RioVidaChews),andgel(RioVidaBurst).Thegummyformistheonlyonethatisnot distributedinIndonesia.Overall,RioVidaismarketedasaproductthatsupportstheimmune system,healthyaging,andoverallwellness. 17 Marketedastherightwaytostarttheday,4LifelaunchedRiteStart.Theproductscontain mainlyvitaminsandmineralstosupportgeneralwellbeingandfulfillnutritionalneedsfor children,adultmale,andadultfemale.ApackageofRiteStartWomenorMenhasoneTF Plus,oneessentialfattyacidgelcapsule,twovitaminandmineralblends,andtwofemaleor malesupportblendtablets.Thepackageismeanttobetakeninthemorningandboosts overallwellness.MeanwhileRiteStartKids&Teenshasonlyonechewabletabletthat providesTransferFactorand22essentialvitaminsandmineralsnecessaryforgrowing bodies.ThelastRiteStartproductistheNutraStart,theonlyproductthatisbeingimported toIndonesia.UnlikeintheUSwheretheflavorisbluevanilla,4LifeIndonesiadistributes thechocolateandplainvanillaflavor.Nonetheless,eachNutraStartflavorstillservesasa foodreplacementthathelpsweightmanagementwhilstprovidingnecessarymacroand micronutrientsabodyneeds. Withtheriseofdigestivehealthcasesthatleadtootherdiseases,4Lifetooktheopportunity tocreateDigest4Life.Theseproductsfocusonimprovingthedigestivesystemfromall areas.Pre/oBioticsworksasthemainprobioticproductthatoptimizesguthealth.TheSuper Detox,FibreSystemPlus,PhytoLax,andDigestiveEnzymesmaycleanseanddetoxthe digestivesystemwithdifferentherbalcompoundsandamountofTransferFactor.Theonly Digest4LifethatisalreadydistributedinIndonesiaisTea4Life,atea-likeproductthatalso servescleansinganddetoxfunctionwhichleadstoalaxativeeffect.TheAloeVeraStixis makingitswaytoIndonesiawhichwasmademostlyoutofAloeBarbadensisplantthat soothethegastrointestinaltract.Inaddition,4LifemarketedtheDigest4LifeResetSystem(a combinationofFibreSystemPlus,SuperDetox,Pre/oBiotics,DigestiveEnzymes,Aloe VeraStix,andTF)tobeconsumeddailytomaximizeitshealthbenefits. 4LifeTransformcoverstheproductssupportinganadult’sphysicaltransformationjourney. Thiscategoryhasmanyproducts,butonlyRenuvoisbeingdistributedinIndonesia.The PreZoom,ProteinBar,ShapeRite,Burn,TransformWoman,andTransformManarenotyet 18 available.Renuvosupportsbodyrecoveryafteranintenseexerciseandelevatesmetabolism speed.Itisalsoproventobebeneficialformentalclarityandsexualvitality.Theother productthatwasdistributedinIndonesiabutgetdiscontinuedafterafewyearsisthe Pro-TF,foodreplacementproductthatcontainsahighwheyandeggproteinblend.The reasonwhyPro-TFwasdiscontinuedalthough,itshowedgreatsalesinIndonesia,was relatedtothelicensingfromBPOM. Only16outof76productsof4LifeResearcharedistributedinIndonesia.Thereareplenty thatarestillbeingheldawaitingBPOMlicensing,andtheresthavenotyetentereddueto ingredientsissuesthatarenotaccordingtoBPOMrules.Alloftheproductsisenlistedinthe appendix. FigureI.12Rangeof4Life’sProductsGlobal Source:(4Life,n.d.) 19 1.2.3BusinessModel 4LifeusesMulti-LevelMarketing(MLM)asabusinessmodel.MLMisaformofdirect sellingandcanalsoknownasnetworkmarketing.Revenuesforthecompanyaredirectly madefromindependentsalesrepresentativesthatsignedupasapartofthecompany,called affiliatesor‘mitra’in4LifeIndonesia.Theywerecalled‘preferredcustomers’whenthey firstjoined4Lifeasanaffiliatebuthavenotyetsoldorhaveanydownline.Theseaffiliates donotcountasemployeeof4Life,andtheyhavefullfreedomtotheamountofeffortthey putintosellingproducts.AsmanyMLMmodels,themoretheysell,themoretheygain commissions. 4LifewasnamedasoneoftheMLM-modeledcompaniesthatprovidesthehighestprofits fortheiraffiliates.Therearemultiplebenefitprogramsthatweredesignedfrom4Lifethat applyglobally.Long-termprogramssuchasRetailProfit,InstantDiscount,Loyalty Program,RapidRewards,BuilderBonus,MyShop,andTeamCommissionarealways availablefortheaffiliatesthatjoinedatanytime.Meanwhileshort-termprogramslikeFast Start,launchedinAugust2023,areonlyavailableforawholeyeartoboosttheaffiliates’ motivationandgeneratemorerevenue.