Case Study: California Vitamin Company, Inc.

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In the early 1930's, Carl Rehnborg started offering the first significant line of vitamins in the United States through his "California Vitamin Company", which changed its name to Nutrilite Products Company, Inc. in 1939. In 1945, Nutrilite protocol with a company owned by Lee Mytinger and William Casselberry to become the exclusive American distributor of Nutrilite vitamins. Mytinger and Casselberry began the first major MLM with the same essential rule that underlies the business today. Every autonomous wholesaler would be qualified for make a commission on his or her own offers of Nutrilite items and an override commission on the deals made by those the merchant enrolled underneath them as extra merchants and from those selected by them…show more content…
Since the distributors were independent, they might quit. It was thusly important for Van Andel and DeVos to have these distributors agree in their plans to set up a product distribution and manufacturing operation; and they discussed the type of products they intended to produce with the distributors' association. Many of the distributors in the organization joined the American Way Association, and started distributing products sold to them by Ja-Ri Corporation/Amway Corporation. There were initially 35 Nutrilite distributors who joined as the first distributors of what might get to be Amway. The first president of the Amway Distributors Association was Walter…show more content…
They choose soap and detergents because they felt it would be the simplest business to prepare distributors to sell. Van Andel and DeVos started distributing through the Ja¬Ri a liquid detergent called 'Frisk', which they renamed LOC (liquid natural compound) and which is still one of the important Amway products. This product was manufactured by Eckle Company, a small supplier in Detroit, Michigan, and it was one of the main biodegradable liquid detergents accessible around then. Van Andel and DeVos, through Ja¬Ri Corporation, acquired the organization, moved the resources to Ada, Michigan, and transformed its name to Amway Manufacturing Company. Afther a few months, they introduced SA8, a biodegradable powder detergent. In November 1959, Van Andel and DeVos organized "Amway Sales Corporation" and "Amway Services Corporation." In November 1963, the name of "Ja¬Ri Corporation" was changed to "Amway Corporation"; and on January 1, 1964, Amway Sales Corporation, Amway Service Corporation, and Amway Manufacturing Corporation were converged into Amway Corporation. Amway subsequently purchased Nutrilite, which is a lead mark in Amway/Quixtar still

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