A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBACM) of Mzumbe University
World over Network marketing business (NM), also called multi level marketing has
become a successful concept that empowers ordinary people to turn into successful
entrepreneurs. This concept is about distributing products directly from the
manufacturers to the end consumers, thereby doing away with the traditional channel
of distributors, wholesalers and retailers, so that the consumers get the entire benefit
of direct selling. The network marketing industry as a whole has grown over the
years and the reasons for this among many others is that there are more people
looking either to supplement or replace their incomes. There are also more
opportunity seekers in any recessionary period due to the uncertainty of their present
financial situation.
This study aimed to find out the how NM business is a potential tool for socioeconomic
development in Tanzania, to examine how NM distributors benefit from
the business and to find out challenges they are facing in NM business as practiced
by forever living products (FLP) Company. The population of interest was all the
practicing distributors of FLP products based in Dar es salaam, Tanzania. A
convenient sample size of 82 distributors was used in the study. Primary data was
collected using a semi-structured questionnaire which was administered
questionnaires designed. FLP is a classic example of how the NM concepts work in
Tanzania Besides being a source of income for those involved. Ranking high was
also the fact that NM acts as a social support network for those involved. It helps
people to grow and develop not only their business skills but also personal life skills.
The objectives of the of the study was to determine how NM business is a potential
tool for socio-economic development in Tanzania, to examine how NM distributors
benefit from the business and to find out challenges they are facing in NM business
and FLP Company as a case study.