Summary of the 05/26/04 Malibu Naturals Conference Call
The VP Jack Hayford provided details on the status of Malibu Naturals and plans for moving forward.
Corporate make-up of Malibu Naturals.
Paul A. Monea is the principal owner and managing member of Malibu Naturals, LLC.
20% was set aside by Mr. Monea for Gene Boyer and Jack Hayford among others who came later.
The condition for others to share in ownership was based on performance quotas. These quotas were not met. In the past 2 years, the quotas were not even close to be reached.
Shawn Wheeland (previous director of marketing) was never conveyed any ownership.
Many past issues are being spread throughout the organization regarding Paul M. Monea (Paul A. Monea’s father) in attempts to pull people from Malibu Naturals. Paul M. Monea had legal problems with a product he sold several years ago where he used medical claims as testimonials to sale the product. He also had some tax issues. These are 2 mistakes that Paul M. Monea has paid for dearly. These issues are public record and Malibu Naturals has no reason to hide. These issues have nothing to do with Malibu Naturals. They are simply issues about the principal owner’s (Paul A. Monea) father (Paul M. Monea).
Malibu Naturals has been a solid business for 5 years. The principal owner has invested millions into the company. The company is not being sold and is not in financial troubles.
Regarding the Taebo Name: Malibu Naturals has a contract to sale products using the Taebo name until the end of the first quarter of 2005. They are currently trying to negotiate to extend this contract. The problem: If the products are not being marketing and the sales increase, there is less of a chance that this contract will be extended.
Previous marketing efforts did not focus on selling these products as necessary. This was not up to Jack Hayford at that time. So Malibu Naturals is now releasing new products that display the Taebo name with photos of Billy Blanks on the products. New systems and staff are being put in place.
Malibu Naturals has thousands of units of Taebo products but previously, only a select few were chosen to market. Products with the Taebo household name with a Billy Blank picture on them should have been made readily available to sale.
Analogy of Mr. Hayfords position – You have a yacht, and your job was to sale it from Maine to San Diego. And it was imperative to get that job done. You higher a skipper and 2 years later the yacht is still on the coast of Maine. The skipper keeps stating that we’re right where we’re suppose to be. You then have to decide if your going to allow this, or rally others to get the yacht moving down the coast, through the Panama canal, and all the way to San Diego!
The fact was that sales were flat for 2 years. A half a million dollars was spent on new directives that resulted in no increase in sales, but an increase in expensive sales aids.
An example of this are the subscription sites that were $39.95 per month that were not producing. People were waisting money on these sites and getting bad results. The quality of the sites did not portrait the professional and ease of use the company needed.
The company is not for sale. The company is filled with terrific people and fabulous products.
Just a couple of huge marketing mistakes:
1) A company called MaxPeformance has a similar product to Taebo Gro Lean which is an awesome HGH product. Maxperformance sales 500 times more of there product which costs twice as much as Gro Lean. It has been tough watching other companies sale so much when we know our product is much better.
2) We all know that we live in a Low carb nation. Taebo carb lo was selling even before the low carb craze. Other companies are selling 500 times more. The marketing mistake were that too much time was spent on too many directives/rhythms. Too many rhythms causes chaos. This is the message that Mr. Hayford has received from many representatives in the company. They felt that the company was on the verge of chaos.
3) The OPC rhythms were stopped because the videos made medical claims which touched on illegal. No medical related claims can be used when selling nutritional products, or a company can be shut down.
Mr. Hayford will not be the new marketing director. No clear person has been assigned at this time, but will be soon.
Exciting news will be on next Wednesdays call.
Mr. Hayford current initiative is to synthesize thoughts from company representatives. He understands that nobody has all the right answers. Henry ford had button for his answers, but each button was a different person.
The company is currently producing a flash, professional, user friendly products and opportunity website, that will be FREE for all associates.
Mr. Hayford said the company must Change or die. If you’re not growing your dying. He understands that some ARs in the company were increasing sales, but collective as a company growth was not being accomplished.
Information about the new products:
Taebo Power Charge and Taebo Get Ripped Quick (4 products in one) will be available to order and sale on May 28.
Through the end of June, a buy one get one free special will run.
Incredible testimonial from Sally fork – I lost 156 pounds in 18 months using the Taebo carb lo system. Aloe vera and collagen (included in Carb Lo PM) helped my skin from sagging after I lost the weight. Because I’m living proof that the product works, I have an easy time selling it!
The bottom line is that these products should be selling like crazy. Previous marketing efforts did not meet performance quotas.
Mr Hayfords final quote - There is no need for hype, we need to dust off our jeans, roll up our sleeves and go to work. Recommit yourself to what you want to do with Malibu Naturals. We’re moving to an easier way to market our products with simple and easy to use tools. We are going to move the yacht from Maine to San Diego in the next 12-24 months!