Project report

on

“Amway Products”

Submitted to Submitted by:

1

TO WHOMS OVER IT MAY CONCERN

This is to certify that the project report titled “” is carried out

by Miss., D/o has been accomplished under my guidance &

supervision as a duly registered MBA student of the. This

project is being submitted by him/her in the partial fulfilment of

the requirements for the award of the Master of Business

Administration from Punjb Technical University.

His dissertation represents his original work and is worthy of

consideration for the award of the degree of Master of Business

Administration.

___________________________________

(Name & Signature of the Faculty Advisor)

Title: ______________________________

Date: ______________________________

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DECLARATION

I, "”, hereby declare that the work presented herein is genuine work

done originally by me and has not been published or submitted

elsewhere for the requirement of a degree programmed. Any

literature, data or works done by others and cited within this

dissertation has been given due acknowledgement and listed in the

reference section.

_______________________

(Student's name & Signature)

Date:__________________

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Acknowledgement

Heartily thanks to all those who supported me ………

Acknowledging any one in mere words is a very difficult job. I would like to pay

my sincere thanks to all those people who helped me during this project work

with their guidance and invaluable advice.

The process of preparing this report on “Consumer awareness and satisfaction

towards E-Banking provided by HDFC bank and ICICI bank”, was a learning

experience for me. During the course of my preparation of this report I had to

delve deeply into many details and thus was able to enlighten myself.

I am thankful to for her support and encouragement throughout the completion

of my project. I am thankful for her active co-operation and her keen involvement

in my project. I am indebted to her for understanding and appreciating my

problems, which emerged during the course of my project

I am highly privileged to all the people, related directly or indirectly and the

respondents for being cooperative and sparing a few moments from their busy

schedule; without their help this project wouldn’t have proven meaningful.

KIRANDEEP KAUR

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IntroductionSuccessful businesses do more than simply provide goods and services for customers. They also make a real contribution to the communities in which they operate.Successful ethical enterprises:

create employment and job security provide products that give consumers good value for money contribute to creating a more caring and cared for community and

hence a better world.

Amway provides a good example of a business that recognises its wider responsibilities. It is one of the world's largest direct sales companies. Amway works with around 3 million Independent Business Owners (IBOs) in more than 80 countries. These IBOs are the link between Amway and the final consumer. They are also Amway's links with citizens and communities across the globe.In the UK Amway distributes a variety of products, including:

As well as its business aims the company has a range of social aims that are part of a 'Global Cause Program'. These are outlined below.

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The world's most respected companies recognise that being a good corporate citizen means supporting causes that matter to the communities in which they operate. This is why Amway Europe has created links with the United Nations Children's Fund (UNICEF). UNICEF is a global champion for children's rights. It seeks to make a lasting difference and improve children's lives.The United Nations Convention on the Rights of the Child sets out the right of all children to reach their full potential. It is the foundation of UNICEF's work. Working with UNICEF, Amway has launched an exciting pan-European fundraising campaign for children. It recognises the importance of building good working relationships with UNICEF's National Committees in each market in order to roll-out fundraising programmes to Amway's IBOs and their customers.

Amway (short for American Way) is an American company using multi-level marketingtechniques, that sells a variety of products, primarily in the health, beauty, and home care markets.[3][4][5] Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales of USD$11.3 billion for the year ended

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December 31, 2012—the seventh consecutive year of growth for the company.[1] Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics. Amway conducts business through a number of affiliated companies in more than a hundred countries and territories around the world.[6] Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.25 among the largest private companies in the U.S. by Forbes in 2012.[7]

Founding

Amway Japan Head Office.

Amway Vietnam (Hồ Chí Minh since 2008).

Jay Van Andel and Rich DeVos, friends since school days, had been business partners in various endeavors including a hamburger stand, air charter service, and a sailing business. In 1949 they were introduced by Neil Maaskant (Van Andel's second cousin) to the Nutrilite Products Corporation.Nutrilite was a California-based direct sales company founded by Dr. Carl Rehnborg, developer of the first multivitamin marketed in the United States. In August 1949, after a

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night-long talk, DeVos and Van Andel signed up to become distributors for Nutrilite food supplements. They sold their first box the next day for $19.50, but lost interest for the next two weeks. Shortly thereafter, at the urging of Maaskant, who had become their sponsor, they traveled to Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel, with over a hundred people in attendance. After seeing promotional filmstrips and listening to talks by company representatives and successful distributors, they decided to pursue the Nutrilite business opportunity with enthusiasm. They sold their second box of supplements on their return trip to Michigan, and rapidly proceeded to develop their new business further

In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated from their respective first names) for importing wooden goods from South American countries. After their trip to the Nutrilite seminar, they drop this business and Ja-Ri became their Nutrilite distributorship.[9] In addition to profits on each product sold, Nutrilite also offered commission on the sales of products by new distributors introduced to the company by existing distributors—a system today known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built an organization of over 5,000 distributors. However, following concerns about the stability of Nutrilite, in April 1959 they and some of their top distributors formed The American Way Associationto represent the distributors and look for additional products to market.

Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner) They subsequently formed Amway Sales Corporation to procure and inventory products and to handle the sales

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and marketing plan, and Amway Services Corporation to handle insurance and other benefits for distributors (Amway being an abbreviation of "American Way".In 1960 they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation.[13] In 1964 the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form a single entity, Amway Corporation[14] Amway bought control of Nutrilite in 1972 and full ownership.

International expansionAmway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, to Ukraine in 2003, to Russia in 2005, and to Vietnam in 2008.

Quixtar[edit]Main article: Amway Global

In 1999 the founders of the Amway corporation established a new holding company, named Alticor, and launched three new companies: a sister (and separate) Internet-focused company named Quixtar, Access Business Group, and Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and development and Access Business Group handled manufacturing and logistics for Amway, Quixtar, and third party clients.[16]

The main difference was that all "Independent Business Owners" (IBO) could order directly from Amway on the Internet, rather than from their upline "direct distributor," and have products shipped directly to their home. The Amway name continued being used in the rest of the world. After virtually all Amway distributors in North America switched

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to Quixtar, Alticor elected to close Amway North America after 2001. In June 2007 it was announced that the Quixtar brand would be phased out over an 18 to 24 month period in favor of a unified Amway brand (Amway Global) worldwide.

In 2006, Quixtar published The Quixtar Independent Business Owner Compensation Plan, in which the company reported that the average monthly gross income for "Active" IBOs was $115.[17]

Global markets[edit]

According to the Amway website, as of 2011 the company operates in over 100 countries and territories, organized into regional markets: the Americas, Europe, greater China, Japan and Korea, and SE Asia/Australia.

In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases, including strong growth in the China, Russia, Ukraine and India markets.[18]

Brands[edit]

Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the hair care product Satinique (1965) and the cosmetics line Artistry (1968). Today Amway manufactures over 450 products, with manufacturing facilities in China, India and the United States, as well as Nutrilite organic farms in Brazil, Mexico and the United States (California and Washington State). Amway brands include: Artistry, Atmosphere, Body Blends, Body Works, Clear Now, eSpring, Fulton Street, Glister, iCook, Kahve, Legacy of Clean, Nutrilite, Peter Island, Perfect Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Tolsom, XS, and Zsenso

Household cleaners[edit]10

Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid. In the January 2007 issue of Consumer Reports, SA8 with Bioquest was rated the best-performing laundry detergent, scoring 99 out of a possible 100 points.[25] Consumer Reports did, however, criticise SA8's pricing, a situation which was disputed by Amway.[26] Consumer Reports conducted blind testing of detergents in 2010 and ranked versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested. Consumer Reports program manager Pat Slaven recommended against buying the products because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money."[27][28]

Health and beauty[edit]Amway's health and beauty brands include Artistry, Beautycycle, Time Defiance, Artistry Essentials, Pure White, Satinique, Tolsom, Body Series, Glister, Moiskin (South America),[29] Nutrilite, Nutriway (Scandinavia and Australia/New Zealand), eSpring, Attitude(India), Atmosphere and iCook as well as XL and XS Energy drinks.

Artistry[edit]Main article: Artistry (cosmetics)

Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums.

Nutrilite[edit]Main article: Nutrilite

Amway's largest selling brand is the Nutrilite range of health supplements (marketed as Nutriway in some countries), and in 2008 Nutrilite sales exceeded US$3billion globally.[30] In 2001, five Nutrilite

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products were the first dietary supplements to be certified byNSF International.[31] In 2006, 2007, 2008, and 2009 in the nutrient and health food category, Nutrilite won "Platinum" and "Gold" awards in Malaysia, China, Taiwan, Thailand, and Asia overall in the Reader's Digest "Trusted Brands of Asia" survey.[32] In 2008 Nutrilite scientists, in partnership with Alticor subsidiary Interleukin Genetics won the 12th John M. Kinney Award for Nutrition and Metabolism for their research into the interaction between nutrition and genetics.[33] In January 2009, Amway announced a voluntary recall of Nutrilite and XS Energy Bars after learning that they had possibly been manufactured with Salmonella-contaminated ingredients from Peanut Corporation of America. The company indicated that it had not received any reports of illness in connection with the products.[34]

eSpring[edit]Amway's eSpring water filter, introduced in 2000, was the first home water treatment system to incorporate a carbon block filter and Ultraviolet disinfection unit, becoming the first home system to achieve certification for ANSI/NSF Standards 42, 53 and 55.[35] The unit was also the first commercial product to include sister company Fulton Innovations eCoupled wireless power induction technology. Fulton Innovation introduced the technology in other consumer electronic products at the 2007 International Consumer Electronics Show. Companies licensing this technology include General Motors, Motorola and Visteon.[36][37] In 2006 eSpring was named Product of the Year by the Poland-based non-profit World Foundation of Health, Heart and Mind.[38] eSpring has won numerous Gold andPlatinum awards in the Reader's Digest Most Trusted Brand Asia surveys.[39]

Atmosphere[edit]

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In 2009 Amway's Atmosphere Air Purifier became the first air cleaner certified Asthma and Allergy Friendly by the Asthma and Allergy Foundation of America.[40][41]

Ditto Delivery[edit]

Amway owns a patent on the online shopping method of Ditto Delivery, which allows consumers to specify an automatic monthly delivery of each product.[42] In May 2001, Ditto Delivery accounted for 30% of Quixtar's North American sales.[43]

Business model[edit]

Amway combines direct selling with a multi-level marketing strategy. "Independent Business Owners" (IBOs) may market products directly to potential customers and may also recruit (sponsor) and train other people to become IBOs. IBOs may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated.[3] People may also register as IBOs to buy products at discounted prices. Amway provides training to the IBOs on products and business skills through the sale of "business support materials"; for example, DVDs, CDs, books, websites, seminars, and business conventions.

Direct selling and supply chain

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A supply chain contains a set of links that bring finished products to end consumers. As a direct selling company, selling consumable products directly to consumers and by-passing the traditional 'retail' or 'high street'. Amway has its own distinct chain, placing a strong emphasis on IBOs who are able to focus on individual customers and their needs.Amway manufactures the majority of its own brand products at their manufacturing plant in Ada, Michican. It then distributes these directly to the IBOs through a centralised warehouse in Venlo, Netherlands. Having signed a contract to work within Amway's Rules of Conduct and Code of Ethics, IBOs are trusted to operate flexibly within a 'self regulatory' environment. They develop direct supply channels and sell products to friends and customers that they know or meet.

Amway's supply chain is different from a more conventional supply chain that normally sells goods to final consumers through retail outlets. Amway's way of working depends on building lasting connections with the end consumer. Feedback provided by consumers and IBOs helps to shape future changes in products and the service provided.As a global company, Amway has built up a strong regional structure around regional affiliates such as Amway UK and the Republic of

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Ireland. Operating through the regional structure, affiliates are responsible for:

forecasting (ensuring stocks are sufficient to meet demand) customer service efficient distribution: ensuring products reach IBOs on time and in

top condition product promotion and IBO support e.g. supplying brochures to

IBOs.Getting the image right is vital in a business that relies on building relationships with individuals and the wider community. IBOs often sell directly to friends and it is essential to provide high quality, value for money products with a 100% satisfaction guarantee.Amway spends time, money and effort on creating an appropriate design and appearance for Amway products. It also develops campaigns that support the business and social aims of the company.

Developing a global strategy

In the same way that Amway has a global strategy for producing, distributing and marketing its products worldwide, its strategy for promoting CSR is also global.Amway defines a global cause as 'a social issue affecting many people around the world engaged in a struggle or a plight that warrants a charitable response.' The company recognises that as a successful enterprise it must build its business based on the principles of 'relevance, simplicity and humanity'.Amway's vision is 'helping people live better lives'. Developing the Global Cause Program:

helps Amway to bring this vision to life declares what the organisation stands for builds trust and respect in Amway brands establishes Corporate Social Responsibility as a high priority.

Amway developed its Global Cause Program in 2002. It is the result of extensive research. This involved studying relevant issues and holding

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discussions with organisations involved in providing help to the needy and underprivileged in communities worldwide.Some research was primary research, e.g. interviewing potential partners. Other research was secondary, e.g. examining published sources about global trends in poverty, lack of educational opportunities etc.From the outset, Amway established some clear objectives. These were to:

build loyalty and pride among IBOs and employees enhance Amway's reputation as a caring organisation make a real difference to human lives.

Further research indicated that people linked to Amway had a clear favourite area for the Global Cause Program to cover. They wanted it to develop initiatives concerned with children and the family.They felt that there are millions of compelling reasons to focus on helping children including. For example:

Amway is a business owned by and operated by families. Children are the world's future. Children embody hope. With children it is possible to make a lifelong difference.

Research showed that: Half of the world's poor people are children. Every year 12 million children die before their fifth birthday. 540 million children live in crisis situations. Over 125 million children have no access to basic education. Even in the most developed countries some children are left

behind.Research also showed, however, that children's needs differ from one part of the world to another. Amway therefore recognises that if its Global Cause Program is to have maximum impact it will need to be tailored to the specific needs of particular regions and areas.

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Meeting global responsibilities by caring for communitiesAn Amway case study

Conclusion

Amway's 'OneBYOne' campaign provides a good example of the way in

which businesses can make a difference in the communities in which

they operate.

Research showed that

Amway's stakeholders are committed to activities which better the lives

of families and children. The company has therefore been able to

formulate a plan and a well targeted programme to harness the

commitment of its people to help others and to create a more prosperous

world.

By working with UNICEF it is partnering one of the world's most highly

regarded children's organisations. Together they are able to help children

enjoy a better future.

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Sponsor's ResponsibilitiesSPONSOR'S RESPONSIBILITIESThe Amway business provides opportunities for people from all walks of life, but like anything of value, with opportunity comes responsibility. 

By sponsoring others and helping them you will influence the success of their business and multiply your own efforts and business turnover. 

When you sponsor new Independent Business Owners those people have expectations about the level of support they should receive as they, in turn, seek to build their futures with Amway. 

The Rules of Conduct outline the responsibilities that each sponsor undertakes when they bring a new IBO into the business. The fulfillment of these responsibilities can be the difference between a new IBO staying and productively working in the business or leaving with their aspirations unfulfilled. 

In summary the Rules require sponsors to:

forward the applicant's application immediately to Amway; regularly train and motivate IBOs; where required deal with

product orders, bonuses and returns in a prompt and efficient manner; use their best endeavours to ensure Rules compliance by members

of the group; achieve in a qualifying month a minimum performance bonus

schedule requirement of which 50PV is derived from personal activity; ensure that IBOs are aware of their responsibilities.

"Responsibilities of a sponsor" are some of the critical elements in ensuring that every IBO has an equal opportunity to prosper in the

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Amway business. They are also important indicators that a sponsor is "active" in their leadership role and that they will satisfy minimum requirements to attend Amway business seminar events.Invitations to Amway business seminars are offered at the discretion of Amway. Key criteria are that an IBO is active, fulfilling the responsibilities of a sponsor and in compliance with the Rules of Conduct. Amway, and IBOs contracted to Amway, have demonstrated global success over decades based upon the combination of state of the art products, a proven Sales and Marketing Plan and an unsurpassed leadership team. It is the commitment to each of these elements, and to compliance with the Rules of Conduct that will provide the blueprint for future.

Corporate Responsibility

at Amway Europe

Why Corporate Responsibility matters

Building a strong, sustainable business means putting

people, products and performance at the centre of

everything we do. A business like Amway is founded on

people – whether they live in our communities, distribute

our products or work in our offices. Our NUTRILITE product

range has relied on sustainable farming for decades. We

also recognise that in today’s world of scarcer resources

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and in the face of increasing risks of climate change, our

performance needs to be sustainable – using energy and

water more efficiently, recycling more, and reducing our

carbon footprint.

By building Corporate Responsibility principles into our

business model, our customers can be confident that they

are dealing with an ethical, trusted company. In 2012,

we received a number of awards and certificates for

sustainability. Amway Ukraine achieved the CSR business

rating from the national Gvardia rating agency for fulfilling

transparent and systematic CSR practices – the only

direct selling company to do so. Amway Czech Republic

was recognised as a “reliable company” by the portal

“Live companies”, a Czech independent body monitoring

and valuating local business and entrepreneurial

environment.

Listening to our stakeholders

Consulting and working closely with a range of stakeholders

helps to shape Amway Europe’s sustainability strategy

and keep it on track. Our key stakeholders include

our consumers, employees, distributors, national and

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European Union policy makers and the wider community.

As part of our commitment to stakeholder engagement,

we conduct a range of Corporate Responsibility

consultations. Our employees and distributors are

key stakeholders for Amway and we recognise the

importance of listening to their views on how the company

is performing for them. Last year, we consulted over

4,400 employees and distributors on our sustainability

performance and reporting, covering areas such as the

workplace, people satisfaction, environmental protection

and our commitment to helping local communities –

particularly children and the vulnerable. The results of

the surveys were published in our mid-term Corporate

Responsibility Review. We are already planning our next

stakeholder consultation in 2013.

A recognised leader in Corporate

Responsibility by 2015

Our overarching goal at Amway is to be a recognised

leader in Corporate Responsibility by 2015 and beyond.

To achieve that, we aim to provide life-long learning

opportunities to our communities and support the three

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pillars of our Corporate Responsibility activities – People,

Products and Performance.

Amway relies on our employees and distributors to

keep our business strong and growing. We always

strive to provide opportunities for our people to live

up to their full potential. Amway also believes that

entrepreneurship is a gateway to new opportunities and

individual empowerment, which is why we aim to support

entrepreneurship in Europe – particularly at a time when

Europe needs a growing economy and more jobs. We

have been supporting people in the community for the

last 40 years – our One by One Campaign for Children

brings together employees and distributors to make a

difference in the lives of children.

We also recognise that we can make a difference through

our products – whether they are sustainably produced

or whether they can support people and communities

directly. One example is NUTRILITE Little Bits – a product

designed to fight chronic malnutrition in children under

five years old. Little Bits is a food supplement containing

essential vitamins and minerals that are often lacking

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in children’s diets in the developing world. We work in

collaboration with CARE International and the Global

Alliance for Improved Nutrition (GAIN) to help make

children’s lives better.

Our performance is also fundamental to whether,

as a company, we meet best practice in sustainable

management, production and distribution. Amway

believes that building understanding about the

environment in which we live, and the positive contribution

that individuals and communities can make, is key to

creating a sustainable future. Not only are we committed

to minimising the company’s environmental footprint;

we also aim to help foster a spirit of sustainability in our

people and communities – whether at work or at home

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