Marketing Strategy of Amway India Ltd

8/13/2019 Marketing Strategy of Amway India Ltd

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CONTENTS

Executive Summary 3

Introduction 5

Amway Profile 9

How it wor!"

Product Profile

Current Scenario

Amway#! maretin$ !trate$ie! 3%

Sale! & 'aretin$ Plan

Strate$ie! in t(e maret

Penetration

Se$mentation

)e!earc( 'et(odolo$y *5

+indin$! & Analy!i! 5*

Conclu!ion ,-

)ecommendation ,5

.i/lio$ra0(y ,,

Sam0le 1ue!tionnaire ,9


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E2ECTI4E S''A)

Amway is a unique company. It is defined by the fundamental philosophy of helping

people help themselves. Amway has helped millions of people run their own independent

business around the world. Today, Amway continues to grow by offering new products

and business opportunities to people from all cultures and walks of life. Whether they are

employees, distributors, or citizens in the community, Amway touches their lives for

better.

India with its rich reservoir of will, talent and enterprise is perhaps the most fertile

ground for the Amway orporation. In short it has made substantial value addition to

India!s social economic life.

The focus of this pro"ect is based on studying a single organization i.e The Amway

orporation. This research has been conducted to study the marketing strategy adopted

by Amway in the Indian market. An attempt has been made to study the company!s

perspective in the new market and analyse on how the company plans its e#pansion in

India.

I have substantiated my research by conducting interviews to gain more insight about the

corporation. The data has been analysed on the basis of $ surveys which were conducted

by me.

%urvey & was conducted through direct, phone and online interviews.

%urvey $ is conducted by gathering information through structured questionnaire and the

interpretation for the same has been provided.

I have finally concluded my research by providing a summarized conclusion and also

suggested recommendations on the basis of the marketing mi#.


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A'6A 4ISION

'Hel0in$ 0eo0le live /etter live!7 In all a!0ect! of our 0roduct!8

/u!ine!!e! and !ocial re!0on!i/ility8 we !trive to mae a meanin$fuldifference in t(e communitie! in w(ic( we o0erate7

A'6A 'ISSION

Through the partnering of Distributors, Employees, and the Founding

Families, and the support of quality products and service, we offer all

people the opportunity to achieve their goals through the Amway Sales and

ar!eting "lan#$


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INT)O:CTION

(irect %elling is a remarkable business model, which brings the market to the customer

and offers a unique business opportunity to anyone eager to adopt the spirit of enterprise.

(irect %elling can best be described as the selling of products and services directly to

consumers in a face)to)face manner, through demonstration of usage, by an independent

direct salesperson. (irect %elling benefits consumer because it sells high quality products

at the consumer*s convenience, often at his+her home or workplace. ustomers value the

advantages of convenience, personalised attention, demonstration of usage, and a wide

choice of products backed by ustomer %atisfaction uarantee.

-ne of the most tangible impacts of (irect %elling in its new advent has been the fact that

it has touched the average man and women in a manner never e#perienced before.

Amway India orporation is the country*s leading (irect %elling ompany. It is perhaps

the best e#ample of the contribution (irect %elling is making to India. In a little over two

years of commercial launch Amway India has emerged as the country*s largest (irect

%elling ompany. It closed its financial year with a turnover close to s. $/0 crores 1the

Amway 2inancial year runs from %ept. to Aug.3. It will reach its target of s. &000 crore

turnover much before its declared target of the year $004..

The direct selling industry has grown rapidly over recent years. hanging lifestyles,

demographics and economic recession have all been factors influencing this growth.

Amway provides people with business opportunities across the globe. (irect selling is

not about *getting rich quick* it is about creating rewards for effort and initiative. With

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low risk and low capital investment, Amway provides people with the opportunity to

achieve and to improve their lives.

As a leading player in the world of direct selling, Amway is helping to *clean up* the

industry and provide a valuable and acceptable form of product distribution. In an

impersonal fast)moving world driven by technology, Amway provides the personal

touch.

5ecause it focuses upon direct selling, Amway is different from more traditional

distribution channels. Its Independent 5usiness -wners own their own business, with the

fle#ibilityto deal directly with their own clients and to build up personal relationships.

These Independent 5usiness -wners also have the ability to deliver Amway*s products to

their customers* homes. Independent 5usiness -wners sell to people they know or meet.

The personal contact and care they provide is an important element in direct selling. They

are also self)employed and can introduce others to the business to form their own sales

group of Independent 5usiness -wners.

The channel of distributiondescribes the stages of ownership that take place as a product

moves from a manufacturer to a consumer. The increasing use of the Internet by

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consumers has created a real potential for developing different types of business models

and for new approaches to reaching users directly and quickly in their homes.

This report e#amines in detail the marketing strategy of the leading global direct

marketing ma"or, Amway in India. In the initial stages of the report I have focused on

Amway!s current position in the Indian market. As the research progresses I have tried to

analyse the companies marketing ob"ective for India and how they set out to achieve

them.

This report also provides a brief introduction to the concept of multilevel marketing and

tries to make the reader understand the difference between multilevel marketing and the

traditional distribution setup in the 26 sector, so as to give an idea as to how the

system is being utilized by companies like Amway.

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This report will be beneficial for consumers who prefer the marketing goods or services

directly to them9 at their own convenience often in his+her home either on a one)to)one

basis, or in the conte#t of a sales party. Through this the customers will get a better idea

about the company!s product offerings and value the advantages of9 convenience,

personalised attention, and a good selection of quality products available at their door

steps.

.enefit! to !eller!

6any people have chosen direct selling because they want to build their own business,

but do not have9 considerable funds required to buy a franchise or start a new company.

Among the top five reasons people sell direct because they like and believe in the

product, like being their own boss, and working their own hours, like the supplemental

family income or making e#tra money for themselves. It can be beneficial from the

sellers point of view as it may give them the idea of e#actly how they can go about

creating their own business and benefit from the Amway!s unique business opportunity.

.enefit! to com0anie!

In this report I have deeply analysed the marketing strategy for Amway through personal

interviews by many I5-s and Amway customers who have helped in adding valuable

data to this pro"ect which can be useful for the company. The suggested

recommendations can be considered by the corporation for further e#pansion and

increasing market share.

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CO'PAN HISTO)

Amway began in &;/; with two young entrepreneurs in the ay =an Andel. Their concept for an innovative business opportunity, centered

around person)to)person marketing, established itself as a leader among one of today*s

fastest)growing industries.

Today, more than ?.8 million independent business owners distribute Amway products in

more than @0 countries and territories. Amway is part of the Alticor family of companies

whose global sales totaled 4./ billion in its most recent fiscal year.

%95=! < A +riend!(i0 +orm!

ich (e=os and >ay =an Andel*s friendship actually began with a business proposition,

when ich struck a deal with >ay for a ride to school for $/ cents a week. After high

school they entered the military, but they planned to start a business together after

separate tours of duty. A friendship formed and became a business relationship that has

lasted to this day.

%9>=! < T(e Early ear!

Amway quickly outgrew its original facilities in the basements of ich (e=os*s and >ay

=an Andel*s homes. In its first full year of business, Amway*s sales were more than half a

million dollars.

%9,=! < T(e :ecade of ?rowt(

As vowed by >ay =an Andel the night of the &;8; disaster, Amway rebuilt the aerosol

plant and went on. The * :0s began with sales of more than &00 million at estimated

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retail, and kept going strong. After a lengthy investigation, the 2T verified that Amway

is a genuine business opportunity and not a Bpyramid.B

%9@=! < T(e .illionay, the second generation =an Andel and (e=os

families took the helm during the * ;0s. %teve =an Andel and (ick (e=os succeeded

their fathers as hairman and Eresident. (istributors witnessed a similar trend, with the

second generation of many distributor families taking on important leadership roles.

-===! < T(e New 'illennium

In $000, Amway orporation became a wholly)owned subsidiary of Alticor, Inc.

hairman %teve =an Andel and Eresident (oug (e=os share the -ffice of the hief

F#ecutive.

'any 6ay! to )eceive Income

Cou have read about the first two ways9

etail Erofit. Averages $0G H of 5usiness =olume 15=3 on products you sell.

Eerformance Incentive, ranges from ?G to $&G and is paid monthly.

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There are many more ways for (irect (istributors to earn income when they meet

qualifications.

These are9 1a3 eadership ommission. 1Eaid monthly3

1b3 6onthly (epth ommission. 1Eaid monthly3

1c3 uby ommission. 1Eaid monthly3

1d3 Fmerald ommission. 1Eaid yearly3

%e& Diamond 'ommission# %"aid yearly&

1f3 (iamond Elus ommission. 1Eaid yearly3

1g3 (ouble (iamond Eayment. 1s. /00,000. -ne time cash award3

1h3 Triple (iamond Eayment. 1s. &0,00,000. -ne time cash award3

1i3 rown Eayment. 1s. $0,00,000. -ne time cash award3

1"3rown Ambassador Eayment. 1s. ?0,00,000. -ne time cash award3

S0ecial ;eader!(i0 Pro$ramme!

As you attain various levels of achievement, you may also be eligible for various

A6WAC leadership programmes9

:irect :i!tri/utor SeminarA special two)day meeting for new (irect (istributors.

With all e#penses paid by A6WAC, new (irect (istributors meet the A6WAC India

management team, and receive an abundance of information to assist them as they build

their growing businesses.

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Annual ;eader!(i0 Conference!in countries around the world. Invitations are e#tended

to A6WAC*s top leaders to meet in a business)building atmosphere.

A variety of !0ecial 0ro$ramme!, such as your own special day at A6WAC, your own

success story in the (istributor magazine, the Amagram, or your name and picture added

to the (istributor Dall of Achievements in India and World Deadquarters.

(usiness 'onsiderations

A6WAC -E-ATI-7 has succeeded for almost four decades because it is a proper,

ethical, and honorable addition to the retail marketplace. A6WAC is a world leader in

(irect %elling. A key element to this success is the recognition by governments that

A6WAC is a model marketing system. As with any venture, you should review all

aspects, weigh the ad vantages +disadvantages, and decide whether it meets your needs.

Dere are some essential points to consider about the A6WAC business opportunity9

Start


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quality productsK a sound combination of upscale and consumable items that can mean

profitable and repeat sales.

S0on!orin$

Cou may increase your merchandising efforts through sponsoring. Although it is not

mandatory to sponsor people, sponsoring may increase your income when the

(istributors you sponsor begin to build their own A6WAC business.

.u!ine!! Su00ort 'aterial!

As your business begins to grow, you may want to acquire training aids. Cou also may

want to attend motivational and business)building meetings. These are optional.

:eduction!

Cour A6WAC business is not a ta# shelter, but you are entitled to deduct your ordinary

and necessary business e#penses as defined by the Income Ta# Act, &;8&.

Time and Effort

The bigger your financial goal, the more time and effort you will need to put into your

A6WAC business. With an A6WAC business, you work as much or as little as you

like, depending on your own goals. It*s all up to you.

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Ste0! to !ucce!! in t(e Amway .u!ine!!

Amway distributors seem to hang on every word their sponsors say. They do e#actly

what their uplines do. They talk like them, act like them, and follow them around

everywhere as if they were kings and queens. 7aturally, with this sort of following,

Amway distributors e#pect guidance in everything they do. This is the reason behind all

of the tapes, books, and step)by)step instructions for building an Amway business. 5elow

are the @ recommended steps for building a large network and the four steps to

sponsoring new distributors. These steps, taken from handouts given to me by my

diamond directs, sure don*t make one think that the tapes, books, and other materials are

optionalP Take a ganderP

Fight %teps to 5uilding a arge 7etwork

&. %== Per!onal !e

$. E!ta/li!( %= < %5 cu!tomer!

o Eriority %ervice Erogram

?. .oo!

o ead a book each month

o ead &0)&/ pages each day

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4. Ta0e!

o isten to one tape a day 1minimum3

o 5e on Becommended TapeB

/. +unction!

o Attend all functions 1see page &&3

8. .u!ine!! coun!elin$ wit( active u0line

o %et goals with upline on oal %etting ard 12):3

:. ?rou0 A!!ociation

o 5uild quality relationships within the network

@. S(ow T(e Plan DSTP

o 6ake a list of names by using Amagrams, hristmas lists, telephone

inde#es, wedding invitations, etc. to "og your memory 1don*t pre)"udge3.

o Add new names through daily contacts.

o Eass out & tape a day

o %how the Elan 1%TE3 three time a week

o


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+our Ste0! of S0on!orin$

&. Pa!! out 0ro!0ectin$ ta0e! or a00roac( directly and follow u0 wit(in -*

(our!7

$. Set a00ointment!

?. STP

4. +ollow u0


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motivational tapes. Amway distributors are told that Bspending money to buy these tapes

is the key to building a large, successful Amway business.B

Therefore, it is likely that new products peddled by Amway distributors will not be more

soap but more hope in the form of these motivational materials. -ne


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Q5uff


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Qlocosamine D

Q7utrilite (aily

Q7utrilite Jids

QAdvanced (aily Fye ream

QAlpha Dydro#y %erum Elus

QTime (efiance 7ighttime enewal rRme M otion

QWhitening Fssence

QTime (efiance (aytime Erotection reme

Q6oisture ich %ystem

Qlarifying %ystem

AE%A )@0

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Amway < T(e Current Scenario

Amway is the largest multi)level marketing 1663 organization in the world. It is a

multi)billion dollar company based on the sale of a variety of products. Amway!s

philosophy is defined by commitments, trusts, enduring relationships, and the ideal of

perfection above profit. 2rom a humble beginning in &;/;, using an old gas station,

Amway the brainchild of o founders ich (e=os and >ay =an Andel, is now one of the

largest and most successful direct sales companies. Amway has also worked to provide

better opportunities for people through active support of various community pro"ects.

Cor0orate Profile

5etween then and now, Amway corporation has grown into a


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-ver /00 M ( scientists and professionals ensure the e#ceptional quality of its

products across five product lines9

Dome are

Eersonal care

Dome Tech

osmetics

7utrition and Wellness

Amway is committed to e#panding the environment awareness of all people of the world.

In >une &;@;, Amway was presented with the


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A'6A IN:IA

Amway India is a wholly owned subsidiary of Amway orporation, Ada, 6ichigan,


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Amway India is the founder member of the Indian (irect %elling Association

1I(%A3

(irect %elling requires e#pertise and special skills.


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concert with the onfederation of Indian Industries 1II3 and the All India 6anagement

Association 1AI6A3 to educate popular opinion on the benefits of organized direct

selling.

HO6 IT 6O)BS

Amway is different from the more traditional distribution channels in that the business

has developed through direct selling. In Amway, one is recruited as an BindependentB

distributor of Amway products by buying a couple of hundred dollars worth of the

products from the one who recruits you, known as your Bupline.B Fvery distributor in turn

tries to recruit more distributors. Income is generated by sales of products by the

distributor plus BbonusesB from sales of his or her recruits and their recruit)descendents.

Dow do you begin 2irst, you are sponsored by another Amway distributor and you

obtain the Amway .u!ine!! Bit. The 5usiness Jit contains basic A6WAC products and

literature for your use and for sharing with others. Cou begin by developing both

customers and distributors.

Cu!tomer!or client! are the people who buy the A6WAC products from you but who

aren*t Amway distributors. -ne of your best sources for building a customer base is a

group of people you already know. These acquaintances try A6WAC products and

become your customers as they use and re)order various A6WAC items. Dowever, I

have found that people everywhere need high)quality, %atisfaction uaranteedproducts

which they believe Amway is able to provide.

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Inde0endent .u!ine!! Owner! or :i!tri/utor! are people who have evaluated the

Amway business opportunity and elected to "oin the business. I5-s deal directly with

lients, build up personal relationships and deliver direct to lients* homes. They are

highly motivated, selling to people they know or meet. The personal contact and care that

they provide is an important element in direct selling. I5-s are self)employed and can

introduce others to the business, and so form their own sales network. The most

successful Amway businesses en"oy a balance of merchandising A6WAC products and

sponsoring distributors. rowth in your business comes from sharing the Amway

business opportunity with others and helping them decide if it*s right for them. This is

called !0on!orin$. Amway distributors who sponsor others generally have higher

average sales volumes than those who don*t sponsor.

Cour B?rou0B is the team of distributors you*ve sponsored. 6any you*ve sponsored

personally, but others were sponsored by those you personally sponsored. Cou train and

motivate your group and, as a result, you earn e#tra income when they earn income. As

you continue to grow your business and they continue to grow theirs, you both can

benefit.

ike any other business, your Amway distributorship needs frequent input and activity to

grow. Dowever, whatever your goals are, youcontrol how quickly or how slowly you

build your business. After all, it*syourindependent Amway business.

-ver time, a distributorship can grow considerably. The more distributors in your group

who become successful in the Amway business, the stronger your business will become,

and the higher the pin levels you can qualify for. We call them B0in level!B because you

$8


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earn incentive pins at the various achievement levels of the business. Fach pin level

features a set of incentives and rewards for being successful.

Income Incentive and more

The Amway -pportunity offers distributors many benefits. %ome are financial, others are

intangibles, such as peer recognition, pride in achievement, the "oy of helping others,

working with family, and the esteem of owning your own business

Income 0otential

As an Amway distributor, you can earn income many different ways. 2or instance, in the


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When your business qualifies at a specific distributor level, a special invitation occurs.

Imagine your special day at an Amway facility, your own success story featured in our

distributor magazine, and your name and picture added to the (istributor Dall of 2ame in

Amway*s World Deadquarters.

A'6A#S 'A)BETIN? O.GECTI4E

The ob"ective involves matching consumer needs with the product. The better the match,

the more lasting the potential for the relationship between the seller and the buyer. The

selling process is aided by Amway*s retail strategy to provide high quality, readily

purchasable items with a good environmental positioning, and offering consumers! good

value for money.

A'6A SA;ES AN: 'A)BETIN? P;AN

Amway practices direct !ellin$ which is A method of selling goods directly to the

consumer by an independent (istributor. A (istributor can then introduce further

(istributors and generate income from retail profits supplemented by bonus payments

based upon the total sales of the group built by a (istributor*.

Income is generated by a distributor through9

the retailing of goods to consumers. etail margins 1mark)ups3 on the basic

wholesale price represent income to the selling distributor.

Additional performance and leadership bonuses, paid on the volume of personal

business of the distributor and the business volume of the distributors he has

introduced to the business.

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=arious levels of leadership bonuses, dependent upon the overall size and shape

of the business, paid on achieving different levels of business performance.

This plan, therefore, rests upon the twin foundations of retailing and sponsoring.

)etailin$) the selling of goods to consumers on which retail margins are earned

and performance bonuses gained.

S0on!orin$) the introduction of other individuals to establish and develop their

own independent Amway distributorships.

etailing enables distributors to provide immediate financial incentive rewards.

%ponsoring enables distributors to replicate the base with other people, thus allowing the

organization to grow.

(irect selling involves sales people showing and demonstrating products to obtain orders.

As with all direct selling activities, the process involves two)way communication and this

can be time)consuming. 5usiness success and the resulting financial results are a direct

consequence of effort, commitment and personal group motivation. Eersonal contact

between distributors at one)to)one or group meetings provides the opportunity for

individuals to discuss strategies, difficulties, levels of involvement and plans for the

future. The income ob"ectives and individual targets may be determined by each

distributor based upon what he or she wants to earn. (istributors who develop direct

selling businesses may come from widely different backgrounds, with vastly different

levels of e#perience and knowledge ) the common factor to their success is the desire to

achieve.

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A'6A#S ST)ATE?IES IN THE IN:IAN 'A)BET

INT)O:CTION

The launch of any new product requires a considerable amount of time, effort and careful

planning. esearch and development uses advances in science and technology to enhance

products, while market research is carried out to e#amine changing consumer tastes and

fashions. The key to successful marketing is to clearly identify at which market segment

the product should be aimed, find out precisely what consumers in this target group want

and then plan the marketing strategy accordingly. The focus of brand image and

positioning of the product within the marketplace are of paramount importance.

All organisations face an e#ternal business environment that constantly changes. hanges

in the business environment create both opportunities and threats to an organisation*s

strategic development, and the organisation cannot risk remaining static. It must monitor

its environment continually in order to9

build the business

develop strategic capabilities that move the organisation forward

Improve the ways in which it creates products and develops new and e#isting

markets with a view to offering its customers better service.

Amway is an interesting e#ample of a company that reviews its strategic capabilities and

uses this review to develop its products and markets. 6ore than 4/0 products carry the

Amway name in the areas of nutrition, health, beauty and home. Amway also has a range

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of products that include other well known branded goods. The company also offers a

variety of third party services.

A7 Amway#! 'aret Penetration Strate$y

oing for market penetration has involved Amway in making the most of current

products and competences by *stretching* those new markets. -ne great benefit of direct

selling is that it is an immediate channel to the marketplace that offers customers a good

service, while at the same time providing business opportunities for individuals.

%pecial incentives enable I5-s and end consumers to take advantage of particular offers

at certain times of the year and these incentives have also helped to increase market

penetration. There are also special events such as eadership Training %eminars. These

enable I5-s to spend time with others involved in the business and to learn about *best

practice* from each other, whilst also sharing ideas.

Tar$et 'aret! and 'aret Se$mentation

Se$mentation The Amway business opportunity is open to everyone, regardless of se#,

race, age, religion, or political or other personal beliefs. The Amway business appeals to

women, men, couples, and families from all backgrounds.

Amway also offers a range of 2ast 6oving onsumer oods through its five main

product categories i.e.

Dome are

Eersonal care

osmetics

7utrition and Wellness

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5ut initially Amway was launched in India with only 8 products most of which were

home and personal care products.

Tar$et Audience9 Although it was recognised by Amway that groups such as children,

men and teenagers are likely to become targets in the future, the Amway!s range of

products was aimed mainly at adult female! /etween -3 and ** year! of a$e7

These products are daily use items catering mainly to the household sector. Through

Amway!s e#tensive market research it was proved that that women are often looking for

new products and technologies that will provide a more satisfying product e#perience.

Thus Amway has segmented its market on the basis of typical consumer from this target

group9

is probably a professional woman

is very product conscious

wants professional, quality products

egular user of home care and beauty products

relies on recommendations from friends when making any purchase decisions

6akes buying decisions based on clinical evidence.

Po!itionin$ The focus of brand image and positioning of the product in a new market

place are of paramount importance. Thus,it was important for Amway to create a strong

brand image for the total product range for entering the Indian market. The image created

would reflect a great deal about the product and its consumers. -ne of the most important

?$


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challenges for Amway was to develop an appropriate packaging for all its products to

appeal to the Indian consumer.

Eackaging can be crucial to the success of a new product and Amway went to great

lengths to ensure that the packaging and design appealed to the target audience.

The colours are light, elegant, soft and culturally appealing. %oft, metallic white gives a

sense of clarity, while the blue caps represent water and blue sky. The silver metallic

touches add lu#ury and spice. All the colours are designed to suggest cleanliness. This

design was used to create a brand image. The following ob"ectives for the brand were set9

to increase distributor profitability and productivity by providing a new and

e#citing business opportunity

to optimise consumer convenience and value through enhanced product

differentiation by providing them with an e#clusive and revolutionary range of

products.

Amway#! 0roduct! are 0o!itioned a!

'At Amway, quality means innovation in formulas and technology. A commitment to

e#cellence backed by the resources to do the "ob right and confident that every product

will meet your satisfaction )) guaranteed.U

Daving decided on the target audience, we turn our attention to the 'aretin$ 'ix

Productonsidering the overwhelming success its receiving in the Indian market,

Amway has introduced more products in each category. It is also planning to e#pand the

??
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product category by introducing Dome tech and food items in India. Amway has also

adapted itself to the local market by introducing the sachets and small bottle packs which

can be used by people in small quantities and are very economical.

With the e#ception of the 7utrition M Wellness and osmetics range, all Amway India

products+bottles are manufactured through ? third party contract manufacturers using

world class technology and processes. The products match Amway*s global quality

standards. They carry a tamper)proof seal and a *ustomer efund Eolicy*. If not

completely satisfied with the product, the consumer can return it for a refund. Amway

products are environment friendly, and are not tested on animals. Amway encourages the

return of its used product bottles for re)cycling and to prevent their misuse.

At present, Amway India*s product portfolio comprises of99

Ten products in the Eersonal are category,

Fleven in the Dome are category and

%i# in the 7utrition M Wellness category.

%even in the cosmetics category

-ne product in the Agricultural ategory.

The other products are two soft toys.

Amway %ales aid.

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Amway*s product range demonstrates its adaptability to the market based on a close, first)

hand understanding of the Indian consumer*s nuances. An aggressive product launch plan

introduces new products every few months. In the coming months, Amway will further

e#pand its product portfolio through the launch of several new core line products.

Amway had initially started with 8 products for the Indian market in &;;@. At present it

has about 4/)/0 products in its various product categories which is about &&G of its total

product category.

Pricin$ Amway products are price competitive and overall a good value for money.

While some of its products are more e#pensive than their counterparts, others are less

e#pensive and most are competitively priced. Eroducts that are more e#pensive usually

have greater features and benefits over competitive goods. 6any A6WAC products are

highly concentrated, meaning a single purchase lasts longer. -n a cost)per)use basis,

these products are priced very competitively from their local brands. The consumer is the

ultimate "udge of price and value, and Amway!s sales success over the years speaks

volumes about its product value and customer satisfaction.Amway!s pricing strategy

remains the same but with the introduction of sachets and small bottles, people can now

en"oy its products at an economical rate.

Place Amway India enterprise is redefining its structure by overhauling its supply

chain. The network marketing company is looking at reducing the lead time by moving

closer to the point of consumption, improving its information system and reaching out to

homes through a better delivery system. It is e#panding its presence across the country

and adding new products to its portfolio. The company has done away with its central

warehouse at 7agpur and opened four regional ware houses in 5angalore, Jolkatta, (elhi

?/


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and 6umbai that are serviced directly from the manufacturing units. The company today

has ?8 offices serving over ?@/ locations across the country. It plans to add &4 more

offices to its network this year taking the total number of offices to /0 which will serve

over 4/0 locations. These new offices will be opened at strategic locations spread across

the country and governed by an unwritten rule of '5e present where Amway distributors

are.U

The ompany Amway India launched with / offices 17ew (elhi, 6umbai, 5angalore,

hennai, alcutta3 and a entral Warehouse 17agpur3, which serviced &/0 locations. At

present Amway India has ?$ offices, and a reach to ?/$ locations.

Eromotion9 Amway promotes its products through its Independent 5usiness -wners. It

has a heavy accent on training. Fvery Amway distributor en"oys free, unlimited access to

training sessions. These training sessions impart product knowledge, comprise motivation

sessions, and seek to optimise the business potential of participants. ecently Amway has

also started advertising about its products in various 7ewspapers and 6agazines to

promote its products and reach out to their target markets. Amway has come up with a

vast promotional strategy to reach out to its customers and other potential buyers.

Amway! Promotion c(annel!

There are five different promotion channels9

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orporate Fvents

orporate events include specially arranged functions, such as product fairs, conferences

and seminars, which distributors at different levels are invited to attend. 2ace)to)face

communication at a range of events helps Amway and its distributors to get to know each

other. They also provide an opportunity for distributors to get to know each other and are

useful for relaying messages, giving advice and generating personal discussion. Fvents

include9

Pace Setter) a reward incentive to help new and e#isting distributors reach the

8bonus level within three consecutive calendar months.

It also encourages a balanced business, with equal amounts of retailing and

sponsoring ) essential for long)term success and profitability.

:irect :i!tri/utor Seminar) allows newly qualified (irect (istributors to

meet the Amway 6anagement Team, tour the


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some of the world*s finest beach locations and hotels where they attend a number

of business sessions and e#change thoughts and ideas with corporate staff.

;aunc( into =3) a ma"or annual launch of new products and services presented

by a road show of eventTrainin$

Training builds the skills and knowledge of distributors and therefore improves

competence levels. 2or Amway, the starting point of the training process is to identify the

skills and knowledge necessary for distributors to carry out their role. Acquiring product

knowledge is an important aspect of training and preparation. As Amway relies upon the

personal service of its distributors and the quality of its products, it is essential that

distributors are not "ust shown how to use products but also how to merchandise them to

their best advantage.

Training may involve either orporate or roup 1ine of %ponsorship3 Training on

specific product brands. (istributor input into these sessions provides informative help

for the management of independent businesses. -nce a distributor has achieved an

advanced knowledge of a specific brand, they can then receive the training and tools

required via a *Train a Trainer* session whereby they will be taught how to train their own

group, therefore ma#imising their e#pertise.

;ine! of !0on!or!(i0

Amway is essentially a people)based business ) without people, the business cannot

e#pand. The business of each distributor grows via new customers and through the

sponsorship of new distributors.

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Fstablished distributors are involved in helping newly sponsored associates to

merchandise Amway products. (istributor groups meet to discuss company procedures

and their goals. The groups also discuss new product launches and promotions, the

administration of their businesses and support new and e#isting distributors. These lines

of sponsorship provide constant, face)to)face support from professional associates.

Pu/lication!

Written communication is useful as a permanent source of reference. Amway uses a

range of written communications to promote its ideas and products across its target

audience. These include9

Ama$ram ) This magazine is mailed directly to all Amway distributors in the

India. Amagram is used to communicate information about new products,

promotions, community news, distributor events and recognitions as well as news

of other affiliates throughout the Amway world. Amagram shows how

distributors can make more out of their business. It is also used to help

distributors understand the philosophy by which the business operates and the

legislation regulating the (irect %elling Industry.

S0ecial ;iterature ) -ccasionally, Amway designs a brochure or leaflet which is

used to address a particular change or launch, e.g. new car care product range.

.7 Amway#! 'aret Ex0an!ion Strate$y

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-ne method used by Amway involves e#panding the ways in which individuals can be

involved with the Amway business. Amway has developed a structure known as the I6

model. This increases the number of ways through which people can become involved in

the Amway business. Fach of the letters I6 stands for a different type of involvement.

I ) Independent 5usiness -wners 1I5-s3

6 ) 6embers

) lients 1customers3 of the I5-s.

6embers are allowed to purchase Amway products at a price equivalent to that paid by

I5-s, but do not participate in the Amway %ales and 6arketing Elan. They are a new

type of *customer* who deals directly with Amway.

Tar$et 'aret! and 'aret Se$mentation

Se$mentation

?eo$ra0(icAmway is now trying to reach people by setting offices even in the

remote areas of the country. Amway!s distributors are now spread all over India even

across the rural areas.

:emo$ra0(ic

40


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A$e9 Amway products are meant for people of all age groups. It includes a wide variety

from soft toys meant for children to health and nutrition products for the entire family.

5ut to "oin the Amway as an Independent 5usiness -wner a person should be above &@

years of age.

Income9 Amway business opportunity is more popular among the middle income group

since it gives them a chance to increase their income level by using its products and also

making others use them as well.

?ender6a"ority of Amway products cater to the needs of Women Fg9 cosmetics, home

care and personal care. 5ut Amway is introducing many new products in the Indian

market the choices are increasing for both men and women.

+amily ;ife cycle 6a"ority of people "oining Amway are young women and newly

married couples.

Occu0ation 6ost of the people who are engaged in the Amway business are either

professionals or small businessmen.

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P!yc(o$ra0(ic

Per!onality It appeals to people who are ambitious and want to earn high incomes with

in a short span of time. Amway through it unique business opportunity gives them a

chance to earn enough income and show them the path to realise their dreams.

Social Cla!! 6a"ority of Amway people comprise of working class, middle class,


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- Amway business opportunity is attracting the middle income group to earn

e#tra income.

- Amway!s target audience include a lot of professionals and young couples

who are very ambitious to earn high level of income in a short span of

time.

- Amway!s products being good in quality are also very much preferred by

the upper class segment who can easily afford the pricing but they don!t

want to get involved with the business opportunity. They are mostly

associated with Amway as their customer.

Tar$et $rou0

'enV Erofessionals and small business owners

A$e ) $? ) /0 years

Income Statu! F Working class, 6iddle income, upper middle income

6omen F Erofessional and housewife

A$e F $0 V /0 years

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)ESEA)CH 'ETHO:O;O?

O.GECTI4ES

Primary O/ective9 The main ob"ective is to carry out an in)depth study of Amway!s

overall marketing strategies in India. In order to achieve this primary ob"ective, I have

focused my research in three main segments9

A. Where the ompany stands at present.

5. Where do they plan to go with their ob"ectives for the Indian 6arket

. Dow do they plan to achieve the set targets

This report is appropriate for understanding the various concepts used in international

marketing. It is a complete information guide with relevant information taken from

reliable sources, questionnaire and interviews with people who have achieved success

through this organisation

44


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'ETHO:O;O?

The 6ethodology adopted was combination of9

Primary :ata Collection

(irect Interview with people who are associated with the Amway

corporation in India

Nuestionnaire filled by a selected group of people.

b. Secondary :ata Collection The data has also been collected from9

5ooks

6agazines

Fditorials

Internet

7ottingham e)ibrary

Amway 5usiness Elanner

Amway -pportunity 5rochure etc.

Sam0lin$ Plan I have tried to gather data on the basis of both the interview and the

questionnaire.

Survey < %had been conducted by asking the people to fill in the questionnaire

and e#press their views about the company.

Survey F - had been conducted in order to get some valuable data which has been

collected through direct, telephone and online interviews with people associated

with Amway to get a better insight of Amway!s operations in India.

4/


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Survey


47/81

6y pro"ect involves the study of Amway!s marketing strategies in India. I had planned

my work on the pro"ect along the following lines9

&. (ata ollection

$. (ata Analysis

?. (ata ompilation

4. The preparation and presentation of the report.

6y first step in data collection involved meeting my guide for having a general

understanding of what my product should be like and then some specific

understanding of the company.

After deciding upon the broad frame work of my pro"ect, I proceeded on a search for

secondary sources of data. After analysing the data I prepared, I proceeded towards

the primary sources in which direct, phone and online interview were conducted so as

to substantiate my research with more facts.

Survey % < )ationale .e(ind T(e 1ue!tion!

The main reason to formulate this questionnaire was to find out as to why more and more

people in India are getting attracted towards Amway. Is it because of its unique business

opportunity or the convenience of a wide variety of fine quality products available the

customer!s door step.

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The initial demographic information will help in understanding of Amway!s popularity

among a certain group of customer and how they perceive of it.

%7 Are you an

Inde0endent .u!ine!! Owner

Cu!tomer of Amway 0roduct!

None of t(e a/ove7

This question is necessary as it will be able to provide us with a variety of views as to

how Amway is being perceived differently by people based on their association with it.

-7 6(at i! your income level D0er 'ont(

.elow )!7%=8 ===

)! %=8===< )! -=8===

)! -=8===< )! 3=8===

)! 3=8===< )! *=8===

)! *=8===< )! 5=8===

)! 5=8=== and a/ove

This question will help in understanding which income categories of people are more

likely to "oin the Amway business because of it unique income opportunities.

4@


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37 a7 How do you feel are t(e Amway 0roduct! 0riced D'ulti0le

C(oice

Too ex0en!ive

Ex0en!ive

Economical

C(ea0

Poor

/7 :o you t(in t(ey are fairly 0riced a! com0ared to ot(er !imilar

0roduct! availa/le in t(e retail !tore!" e! K No

This will indicate people!s perception of Amway!s product prices and whether they feel

that the prices are in compliance with the product quality or not. It would also be able to

give idea about customer!s preferences for Amway products in comparison to other

products easily available at the retail outlets.

*7 How would you de!cri/e t(e Luality of t(e 0roduct!

Excellent

?ood

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Avera$e

.ad

Poor

This question is necessary for understanding whether the Amway products meet the

customer!s e#pectations for being the high quality products as being positioned by the

company.

57 Are t(e!e 0roduct! ea!ily acce!!i/le"

e!

No

Amway being a direct selling company totally relies on the door to door delivery of

products. Thus it is important to know if the customers ever faced any dissonance by

Amway in its product and service delivery.

8. 6(at i! it t(at attract! you more toward! Amway" w(y"

)etailin$

S0on!orin$

This is an important question through which we can understand the main reason why

people would like to associate themselves with Amway. Is it mostly because they like

/0


51/81

consuming a good quality product or is it the unique business opportunity that Amway

provides which is a source of an e#tra income.

:.How did you learn a/out Amway"

Inde0endent .u!ine!! owner

'eetin$!KEvent!

New!0a0er

Peer!

Internet

Ot(er!8 Plea!e !0ecifyMMMMMMMM

This will indicate the most popular channel through which Amway is reaching out to the

potential customers.

/&


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;I'ITATIONS O+ THE P)OGECT

The company or the I5-!s were hesitant to give time and good

information to students, so information required for the primary

research which is a basic need of this pro"ect was not easily available

in required quality and quantity.

I have conducted this type of an elaborate and analytical pro"ect for

the first time so information might not be utilized adequately.

Time constraint.

/$


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+IN:IN? & ANA;SIS

S)4E


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57 Are all t(e!e 0roduct! !ourced in India"

This will indicate Amway!s commitment to the quality of its products and how they try to

maintain the same product standards in India.

>7a7 6it( w(at com0anie! doe! Amway (ave !trate$ic alliance! in India"

/7 6(at /enefit! t(e I.O#!KCu!tomer! drive from it"

This will indicate Amway!s value added services to its distributors by forming strategic

alliances with companies which have products and services that are relevant and of use to

them.

,7 Ha! t(ere /een any c(an$e! made in t(e Amway 0roduct offerin$! accordin$ to

t(e Indian 'aret"

This will indicate the e#tent to which Amway has adapted its product keeping in mind

the needs of the Indian customers.

@7 6e (ave (eard Amway 0roduct! are ex0en!ive7 6(y i! t(i!"

%ince Amway products are considered highly priced, this question will "ustify

Amway!s reason for their e#pensive products.

97 6(at doe! Amway !ee a! t(e role of 6omen in t(e Amway /u!ine!!"

This will e#plain Amway!s strategy as to why there are ma"ority of the women doing the

Amway business.

%=7 a7 6(at i! t(e difference /etween Amway and ille$al 0yramid!"

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/7 I (ave (eard rumor! t(at Amway i! a cult" I! t(i! true"

This will help clearing people!s doubts about Amway as not being associated with illegal

pyramids or cults.

//


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)ES;TS O.TAINE: TH)O?H THE INTE)4IE6

%7 6(at i! Amway#! Tar$et audience"

Amway!s products are used by people of all age groups. It basically depends on the

distributor!s way of targeting people. %o for every distributor there may be a separate

target audience. There has also been an overwhelming response from people in rural

areas and far away states like 7agaland, >ammu and Jashmir, Arunachal Eradesh etc

how use Amway products and make use of the Amway business opportunity.

$. a7 6(at i! Amway#! ex0an!ion !trate$y"

/7 How i! it 0lannin$ to $o a/out it"

a. Amway plans to add more and more people as its distributors to facilitate more sales of

the Amway products.

b. They plan to achieve this by increasing the consumption of their products i.e the

products are consumed by the distributor as well as sell them to their respective

customers.

?. How i! t(e com0any 0lannin$ to ex0and it! (ome delivery covera$e7

Dome delivery coverage will be e#panded through e)commerce, setting up order

booking centre at the courier office so that the products can be ordered through

telephone or in person and this request can be forwarded to the Amway office

whereby from there they are delivered to the respective customers.

/8


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*7 a7 How many 0roduct! (a! Amway launc(ed in t(e Indian maret"

/7 How many more are t(ey 0lannin$ to launc( and in w(at 0roduct

cate$ory"

a. %o far Amway has launched about 4/)/0 products in the Indian market which is about

&0)&&G of its total product range. They will introduce more as the market gets matured

and people are ready to accept new products.

b. Amway is planning launching its new product categories in India i.e Dome tech and

food items. In the e#isting categories they are planning to bring more indigenous

products eg9 persona powder etc.

57 Are all t(e!e 0roduct! !ourced in India"

Almost all Amway India products are manufactured in the country through ? third party,

contract manufacturers 1%arvotham are, Dyderabad K >e"uplast, Eune K 7aisa Industries,

(aman3. To bring the identified contract manufacturers* production facilities and skills to

international standard, Amway has invested in e#cess of 7 a7 6it( w(at com0anie! doe! Amway (ave !trate$ic alliance! in

India

/7 6(at /enefit! t(e I.O#!KCu!tomer! drive from it7

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In India Amway has tie ups with 5harat Eetroleum orporation td. for its customer

loyalty programme and has come up with co)branded Amway)5E Eetro card for its

distributors.

The company also has strategic alliance with standard chartered 5ank for a co)branded

Amway ) %5 credit card for the distributors.

b. The benefits the I5-s gets is in the form of additional Eoint =alue which adds up to

their total earnings from Amway. -n collecting a certain point value they can also

redeem it for a free gift.

,7 Ha! t(ere /een any c(an$e! made in t(e Amway#! 0roduct offerin$!

accordin$ to t(e Indian 'aret7

To meet the local market requirements Amway has now introduced sachets instead of big

bottles which are more economical and can also be given to customers on trial basis.

@7 6e (ave (eard Amway 0roduct! are ex0en!ive7 6(y i! t(i!"

Amway products are competitively priced and offer a good value for money. 6any

A6WAC products are highly concentrated, meaning a single purchase lasts longer. -n a

cost)per)use basis, these products are priced very competitively from their local brands.

97 6(at doe! Amway !ee a! t(e role of 6omen in t(e Amway /u!ine!!"

Amway has helped to empower millions of women around the world by offering them a

low)cost, low)risk opportunity to achieve their goals by owning their own business. This

/@


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fact is especially gratifying to us. There are countless e#amples of single women who

have achieved success in the Amway business, "ust as there are of women who have

succeeded in partnership with their spouses.

%=7 a7 6(at i! t(e difference /etween Amway and ille$al 0yramid!"

/7 I (ave (eard rumor! t(at Amway i! a cult" I! t(i! true"


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1ESTIONNAI)E ANA;SIS

1%7

55%

20%25%

0%

10%

20%

30%

40%

50%

60%

Independent Business

Owner

Customer of Amway

products

None of te a!o"e#

1-7

5%

10%12%

1$%

25%

30%

0%

5%

10%

15%

20%

25%

30%

35%

Beow

&s#10' 000

10'000(

20'000

20'000(

30'000

30'000(

40'000

40'000(

50'000

50'000 and

a!o"e

80


61/81

173

a

30%

20%

35%

)%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

*oo

+,pensi"e

+,pensi"e +conomica Ceap -oor

/

4.%

51%

/es

No

8&


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17*

35%

40%

15%

0% 0%0%

5%

10%

15%

20%

25%

30%

35%

40%45%

+,ceent ood A"erae Bad -oor

175

40%

60%

/es

No

8$


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17>

50%50%

&etaiin ponsorin

8?


64/81

17,

55%

5% 5%10% 10%

0%0%

10%

20%

30%

40%

50%60%

Independ

ent

Businesso

wner

3eetin1s4+

"ents

Newspaper

-eers

Internet

O

ters

84


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17@

15%12%

50%

13%10%

0%

10%

20%

30%

40%

50%

60%

ery stron tron oderate ea7 8ow

179

25%

50%

25%

0%

10%

20%

30%

40%

50%

60%

ery muc oderate Not so muc

8/


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17 %=

60%

15%

35%

0%

10%

20%

30%

40%

50%

60%)0%

/es No ay !e

88


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INTE)P)ETATIONS

&. 6ost of the people who filled up the questionnaire were Independent 5usiness

-wners followed by regular customers of Amway products which were

$. /:G of the people fall in the Income group of s $0,000 V s ?0,000 per

month. This proves that Amway!s ma"or consumer group lies in this income

segment that get a chance to use quality products at the same time earn money out

of it.

?. According to this survey ma"ority of the people feel that Amway products are

e#pensive but at the same time they provide various e#planations for them. Fg9 If

asked why a person would spend s. $;0.00 for 4liter of see spray 1household

cleaner3 instead of buying same quantity of olin which is worth only s. $/$.

The obvious answer one can e#pect is that Amway products are in concentrated

form and last for a longer period of time. In this case one should consider per unit

cost of the product which would make Amway cheaper than other products. %ome

people from the middle income group also find these products very e#pensive at

initial stages but once they start earning through Amway they don!t mind

spending on these products any more.

At the same time while answering the question related to price, on the contrary to

the above statements some people also feel that they are not fairly priced as

compared other product in similar categories.

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4. ;0G people in the sample group are satisfied with Amway!s product quality and

find them e#cellent.

/. Almost everybody agrees that they have easy access to Amway products whether

directly from the company or through the Amway distributors.

8. @:G of the people as per the sample group feel that they are more attracted to

Amway because of its unique business opportunity. They get to use the products

of an e#cellent brand and at the same time benefit from the income opportunities

provided at Amway. %ome people also feel that product has an important role to

play in all this because if the product!s quality was not upto the desired standards,

the business opportunity no matter how good it is, will have no meaning. %o it!s

the combination of Amway!s e#cellent quality products and the income

opportunities that has brought more and more people to "oin the Amway family. It

is because of this winning combination that Amway has been so successful over

the last 4 decades and still running strong.

:. Amway!s I5-s are a strong medium through which Amway reaches out to the

masses. It conducts special training programs for its I5-s to use their products

and at the same time motivates them to refer these products to their family,

friends, relatives etc. Amway markets its products through the I5-s and in turn

rewards them depending on the number of sales they make.

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On t(e /a!i! of t(e a/ove re0ort we can derive t(e followin$

conclu!ion!

;ow !tart u0 co!t

With an Amway 5usiness Jit being the only start)up cost, s4400 virtually anyone can

own an Amway business. ompared to other business opportunities, initial costs for

starting an Amway business is intentionally low, priced affordably for nearly anyone with

a desire to invest in their future.

ow risk

Amway!s product)buy)back policy and no inventory requirement ensure a very low risk

when starting an Amway business. Its '%atisfaction uaranteeU has always been a

measure of confidence in the quality and value of A6WAC products, one more way

Amway supports the business opportunity for distributors.

Performance /a!ed

Amway is a performance)based business that rewards people in direct proportion to their

effort. The bigger the financial goal, the more time and effort a distributor will need to

put into his or her business. With an Amway business, a distributor can work as much or

little as he or she likes. The rewards are based directly on the distributor*s

accomplishments.

:irect !ellin$ i! trend

Thirty)four million people worldwide are engaged in direct selling, which is a @$ billion

industry 1%ource9 (%A $00$3. As people become busier, they are looking for ways to

8;
http://ourstory/o-prodCata1.asphttp://ourstory/o-prodCata1.asp


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save time on routine tasks, such as shopping for everyday needs. (irect selling fills this

need nicely, because Amway distributors deliver products to their doors. In addition,

Amway is one of the oldest and largest direct selling companies in the world.

+lexi/ility

oals and rewards are different for each distributor. Cou have the fle#ibility of working

part time while keeping a full)time "ob or building an Amway business into a full)time

career. Cou choose the time you invest in building your Amway business.

Product !u00ort

The Amway business opportunity is supported by a diverse line of hundreds of quality

A6WAC products and, in many markets, thousands of other brand)name products and

services. Amway has established a reputation for innovation in developing top quality

products and packaging.

Cor0orate !u00ort

6ore than &$,000 people worldwide are employed in Amway manufacturing,

administration, and distribution facilities totaling &0 million square feet 1;$;,000 square

meters3. Amway manufactures products in the


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CONC;SION

Po!itive !ide to Amway

The only positive side to Amway is the chance to make money.

It is the chance to get oneself involved in a trade as a side business, especially if

one is trying to recover from a failed 1or failing business3 or one has lost one*s

"ob. To the e#tent that a few people will surely make money, the system works.

Amway has also helped solve the problem of unemployment in the country and

given a hope to earn high incomes through their independent business to millions

of people all over India.

It is involved in a lot of community services. Amway feels that it is their

responsibility to serve the community in which they live. Through Amway

6otivational -rganisations 1A6-s3 it has try reach out to a lot of handicap

people and provided them with free services at any time. It is also involved in

helping the blind by providing them with proper education. Amway is also

actively involved various environmental pro"ects such as planting more trees etc.

Amway offers a wide range of good quality products which are easily available to

people at their door steps.

nder!ide !ide of Amway

6(y Amway 6ill 'ae 'oney Even If ou :on#t

An interesting calculation9 If & million people sign up, Amway will receive s. 4400

million 1s. 440 crores or


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country. They will have earned all this money without having sold a single one of their

very e#pensive products but "ust by sponsoring people to this business.

How T(i! I! :one At T(e Ex0en!e Of T(e 'iddle Cla!!

While doing this research, I have found that the only way to succeed in the business is to

be able to sign up vast numbers of people and make them use the products for

themselves. The other way is to run around peddling soap from door to door after having

bought it from Amway at a discount.

This is e#actly where the Amway business strategy comes into play. It makes people

hand over their savings to Amway to buy them a dream.

If all Amway did was to manufacture and sell their products through door)to)door

salespeople there would be no problem. The choice of purchase is left up to the

individual. 5y asking for deposits from buyers Yin the beginning and again every year

as a renewal feeY it looks like Amway seeks to build a captive consumer base. -nce

someone has paid s. 4,400 to Amway, he is naturally disinclined to buy 7ivea hand

cream instead of Amway ly)Doney hand lotion. The element of personal choice is thus

pre"udiced.

5y involving their BdistributorsB in a complicated system of down)the)line commissions

they are given the impression that there is a limitless market for Amway products.

The truth is that the market share for Amway is as limited as the market share for any

other product. Traditional retail trade is not about to collapse and because of the

e#pensive price structureK the growth of that market is restricted to the very wealthy.

:$


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alling this Ban opportunity to use world class productsB is a bit like calling the purchase

of a 6ercedes 5enz for s. $/ lakhs an BopportunityB, when an efficient 6aruti @00 for

one)tenth of that price will do nicely.

With all these constraints, telling people of profit mechanisms tied into several thousand

people buying s. &,/00 worth of Amway soaps every month seems laughable in a

country where entire families lead their lives on less money.

:?


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)ECO''EN:ATIONS

After conductin$ an in


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They should also try to set up their offices in states like Jerela, because Jerala is a very

good market for the (irect %elling industry for various reasonsK the two most important

factors seen favouring the industry are the high literacy rate and the willingness to try

something different.

Promotion %ine India is advancing on the technological front, I feel its time to

Introduce the e)commerce Amway i.e Nui#tar in India. It will help in enhancing the

6ulti)level marketing to a great e#tent. It will also create a new business e#perience for

the Indian I5-s and will also help in promoting their sales.

:/


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.I.;IO?)APH

This pro"ect work is based on the information that has been collected from various

sources. To mention a few, information from some websites, newspapers and magazines

facilitated the preparation of this pro"ect.

.oo! and Secondary data

Amway Com0any Planner

Amway O00ortunity /roc(ure!

6e/!ite!

www7amwayindia7com

www7amway7com

www7onlinemlm7com

www7amLuix75=me$!7com

www7!e0dic7com

www7$etfact!7com

www7coc!7com

www7m!n7com

:8
http://www.amwayindia.com/http://www.amway.com/http://www.onlinemlm.com/http://www.amquix.50megs.com/http://www.skepdic.com/http://www.getfacts.com/http://www.cocs.com/http://www.msn.com/http://www.amwayindia.com/http://www.amway.com/http://www.onlinemlm.com/http://www.amquix.50megs.com/http://www.skepdic.com/http://www.getfacts.com/http://www.cocs.com/http://www.msn.com/


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New!0a0er and 'a$aine

T(e Hindu8 Saturday 'ay %=8 -==3

T(e +inancial Ex0re!!8 +e/ruary %8 -==-

T(e Hindu8 +e/ruary %>8 -==%

::


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1ESTIONNAI)E

Name MMMMMMMMMMMMMMMMMMMMMMMMMMM A$e MMMMMMMMMMMMMMMMMMMMM

Addre!! MMMMMMMMMMMMMMMMMMMMMMMMM Statu! MMMMMMMMMMMMMMMMMMM

Occu0ation MMMMMMMMMMMMMMMMMMMMMM Sex MMMMMMMMMMMMMMMMMMMMM

%Are you an

Inde0endent .u!ine!! Owner

Cu!tomer of Amway 0roduct!

None of t(e a/ove7

-6(at i! your income level D0er 'ont(

.elow )!7%=8 ===

)! %=8===< )! -=8===

)! -=8===< )! 3=8===

)! 3=8===< )! *=8===

)! *=8===< )! 5=8===

)! 5=8=== and a/ove

:@


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3a7 How do you feel are t(e Amway 0roduct! 0riced

Too ex0en!ive

Ex0en!ive

Economical

C(ea0

Poor

/7 :o you t(in t(ey are fairly 0riced a! com0ared to ot(er

!imilar 0roduct! availa/le in t(e retail !tore!7 e! K No

*How would you de!cri/e t(e Luality of t(e 0roduct!

Excellent

?ood

Avera$e

.ad

Poor

57Are t(e!e 0roduct! ea!ily acce!!i/le" e!KNo

:;


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>7 6(at i! it t(at attract! you more toward! Amway" ?ive rea!on! to

!u00ort your an!wer

)etailin$

S0on!orin$

,7 How did you learn a/out Amway"

Inde0endent .u!ine!! owner

'eetin$!KEvent!

New!0a0er

Peer!

Internet

Ot(er!8 Plea!e !0ecifyMMMMMMMM

@7 How do you rate t(e 0re!ence of Amway in t(e maret"

4ery !tron$

Stron$

'oderate

6ea

@0


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97 )ate t(e a00eal of Amway#! adverti!ement"

4ery muc(

'oderate

Poor

%=7:o you t(in$ t(e 0roduct! of Amway are environment

Marketing Strategy of Amway India Ltd

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