PREFACE

Practical training is an important part of management courses. Theoretical studies in

classroom are not sufficient to understand the functioning of complex and large size
organizations, managerial climate and the real problems coming in the way of management of
Man, Material, Machines and Money.

Looking at the complexities of the situation, students are required to work in a dissertation
project, which form part of the BBA programs conducted by most of the students of GGSIPU
University during the working on project undertake a practical universities and institute
imparting management education or theoretical project in order to analyze, interpret and
report on one or more management problem and situation.

It is helped that the activity carried out with dedication will open up new vistas for the
budding managers to broadly share the responsibilities in future.
CONTENTS

Introduction

Research Methodology

Data Processing, Analysis & Interpretation

Findings and Analysis

Conclusion

Recommendations

Bibliography

Questionnaire
CHAPTER-1

INTRODUCTION

Now a days business has become very much competitive. In this tough competitive
environment how right it is to say, “When any company left their one customer unsatisfied
then there are more than ten competitors who want to satisfy that particular customer with
their offers”. This show how much extent of competition is there, So a company have to work
hard to maintain and increase their market.

Customer now demand not only the consistent quality or improved price performance ratio
but more customerisation and easy availability of more information in the advertisement,
instead of passively receiving uncalled inputs from the advertiser in their efforts to attract
customers. In the fast changing competitive scenario it is more important to understand this
new face of customer. So marketing research is the most important part of business today.

But the extent of competition is much more in companies offering non durable goods in
comparison to other industries which offers other consumer durable goods. The Comparative
high extent of competition in these companies is due to the number of companies. So in the
coming future it is for granted that every company in this field have to face tough competition
from their competitors.

These are the day of Modern marketing Concept:

Now a days the profiles of consumers is changing very fast and it has become

more diversified Companies now work in the environment of rapidly changing competitors,
growing competition, technological advancement, diminishing customer’s loyalty and fast
changing taste and preferences of customers. So company have to cooperate with this
changing environment by changing their offer to meet the wants of customer at particular
time.

In today competitive business environment how rightly it is to say, “In a long run a
organization can get success only and only through customer satisfaction”. Which is modern
marketing concept.
So there are the day of Modern marketing concept, according to which first we have to
identify the needs and wants of customers, then make the product which satisfy these needs
and wants wants and then sell product.

Marketing Research is most important part of the business today:

To identify the need and want of the customers company need information about customers.
They want to know how, when and why these needs and wants are changing and for this they
have to understand consumer behaviour thoroughly. They have to understand why consumer
behave in particular manner.

To understand the consumer behaviour they have to find out factors effecting their needs and
wants like environment factors (Culture, Sub Culture, Social Class, Family, Reference Group
etc.), Psychological factors (Perception, Perception, Attitude Learning, Motivation etc.) and
the factors effecting in consumer decision marking process.

Information about all these factors are gathered only by consumer surveys. So Marketing
Research is very important part of business today.
DIRECT MARKETING: THE CONCEPT

The concept of direct marketing has evolved over time. It has evolved from a tolerated
second – class speciality to a fashionable tool used by virtually every type of business in the
world today.

Only ten years ago direct marketing was considered as a speciality to be employed by book
publishers, record clubs, magazines seeking subscriptions, correspondence schools and sellers
of kitchen gadgets and low priced fashions. No one then would have guessed that it was
destined to destined to become a marketing tool utilized by more than half the fortune 500
companies.

It seems primitive today and yet in those early a solid foundation was already being laid for
direct marketing as it is today.

Definition:

The direct marketing is an interactive system of marketing that uses one or more advertising
media to effect a measurable response and transaction at any location with this activity stored
on data base.

By Direct Marketing Association. Thorough understanding of definition includes

Interactive: One –on –one communication between marketer and customer.

One or more Advertising Media:

Direct marketing is not restricted to any one medium. A combination of media often is far
more productive than any single medium. The variety of media

available to direct marketers is ever expanding.

Measurable response:

Measurability is hallmark of direct marketing. Every thing in the field with rare exceptions is
measurable. Direct Marketers know what they spend and they knew what they get back.

Transaction At Any Location:

The world is direct marketing oyster. Transactions can take place by telephone, by mail at
home, at a store.
Data Base: A compilation of known data about a prospect or customer including such data as
history of purchases, sources of inquiry, credit rating and so on.

Basics of direct Marketing:

The basic purpose of any direct marketing program is to get a measurable response that will
produce an immediate profit. To create a measurable response there must be an offer a call to
action. An offer to sell a product or service direct to the consumer or a business is but one
way to create a measurable response. Offers that create leads for sales people get people to
send for information, lead to visits to retail stores, impel people to give to causes, are all
measurable.

The ultimate objective of a successful direct marketing program is to build the life time value
of a customer. This objective applies whether direct marketing methods are applied solely to a
mail order business or to other channels of distribution. Eitherway, the customer database is
available to cultivate customer.

Direct marketers often avail themselves of rather sophisticated calculations. However, four
terms – life time value (LTV) and recency, frequency, monetary (RFM) – summarize the
financial dimensions of direct marketing.

Lifetime Value (LTV): The total of financial transactions with a customer over the life of a
relationship.

Recency (R): The amount of time since a person or firm last purchased.

Frequency (F): The number of time a customer buys within a season, or a year.

Monetary (M): The amount of money a customer a spends with in a season or a year.

Knowing the lifetime value of a customer reveals how much one can afford to invest in a
customer and still realize a satisfactory profit. Keeping tabs on customers by recency of last
purchase, by frequency of purchase within a given period, and by amount spent enables the
marketer to identify segments of the customer base that offer the greatest profit potential.
Advantages of Direct Marketing:

The predictability of direct marketing, arising out of its measuability and the science of
statistics, is only one of the unique elements of this field, Others are

(i) Concentration

(ii) Personalization

(iii) Immediacy

Concentration: It is the ability to take promotional dollars and direct them to the most likely
prospects with great accuracy. It offers greater selectivity.

Personalization: Not only one can select very specific audiences for concentrated promotion,
but one can address them in a manner that dramatizes ones conviction that the product or
service we are offering is particularly right for each person who gets our message.

Immediacy: The third and most vital element of direct marketing is immediacy. Direct
marketing messages in all media ask for the “order now’ If general advertising’s objective is
awareness and attitude, direct marketing is the third A i.e. action. Immediacy is a strength of
direct marketing, but it is also a requirement.
BRIEF HISTORY OF AMWAY ENTERPRISE

1950’s – A friendship Forms

Rich De Vos and Jay Van Andels friendship actually began with a business proposition, when
Rich struck a deal with Jay for a ride to school for 25 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.

1960’s – The Early Years

Amway quickly outgrew its original facilities in the basements of Rich De VO’s and Jay Van
Andel’s homes. In its first full year of business, Amway’s sales were more than half a million
dollars.

1970’s – The Decade of Growth

As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol plant
and went on. The ‘70s began with sales of more than $100 million at estimated retail, and
kept going strong. After a lengthy investigation the FTC verified that Amway is genuine
business opportunity and not a “pyramid”.

1980’s – The Billion- Dollar decade

The ’80 will be remembered for the first Billion Dollar Year at estimated retail in 1980.
Building expansion at Amway World Headquarters Continued at breakneck speed as Amway
scrambled to keep pace with demand, opening its new cosmetics plant in Ada.

1990’s – The Second Generation

As carefully planned by Rich and Jay, the second generation Van Andel and De Vos families
took the helm during the ‘90s. The Police Board was formed and Steve Van Andel and Dick
De Vos succeeded their fathers as Chairman and President. Distributors witnessed a similar
trend, with the second generation of many distributor families taking on important leadership
roles.
AMWAY AHEAD

Amway India Enterprises is the wholly-owned subsidiary of the US- based $7-billion (Rs.
28,0000 corre) Amway Corporation. Amway stepped in to the world of direct selling here in
May 1998 and created huge waves. In a span of just one and half year, it has managed to long
for ahead of most other direct selling organizations operating in the country. The company
now has over 2.5 lakh distributors and adding 25,000 – 30,000 every month to its list of
distributors. Of course, the product range is still not as comprehensive as it is for Amway
users in the rest of the world. In the beginning it started out with only four home care and two
personal care products. But at the moment, Amway India has 20 home care and personal care
products of the total 450 products sold by the 40-year old direct selling company in the rest of
the world.

Amway is adding two three products every two months. And all its products are
manufactured in India using mostly local materials. All direct selling companies have to
source their materials from India and get the products manufactured in small – scale
industries.

When Amway started out, the products were available only in one litre packs and the prices
were much higher than what on average consumer was used to. Hence the company came up
with 500ml packs and also sachets. Now Amway products like Dish Drops (a concentrate
dish washing Liquid) and Zoom Concentrate (a multipurpose hard surface cleaner) are
available in 500ml packs as will. Prices for Amway products range between Rs. 5 and Rs.
450.

HOW DOES IT WORKS

This Indian subsidiary of an American MNC, manufactures or produces a line of products.

This company associates in partnership with independent distributors who further from a
network, each one of them in his/ her own business.

The company handles all the research, development, manufacturing procurement and quality
control of the products and manages public relation, administration and data processing.

The independent distributors have the responsibility of marketing the products. They serve
their own businesses as well as the company, in customer acquisition, product promotion and
creation of sales volume through their network of distributors, The Company provides the
support they need to market the products, including brochures, flyers and training material,
for a nominal cost. The company also undertakes the responsibility for physical distribution
of products to distributors and consumers.

It is different from the traditional method of distribution which uses a system of middlemen
such as jobbers, wholesalers, stockiest and retailers, Since the network of independent
distributors promotes and market the products, the company eliminates its conventional costs
of advertisement and middle men, which allows it to pay discounts, commissions, bonuses
and other benefits to the Independent distributors in the multi- level network using the
company’s sales and marketing plan.

SALES AND MARKETING PLAN

What is the Amway Sales and Marketing Plan?

It is a proven Marketing system designed to reward the efforts of those who operate their
business in accordance with it.

Home does the Amway Sales and Marketing Plan Work?

1. A Profit from the sales of Products to consumers. When the consumer purchases the
product from distributor, the profit is the difference between the price (Distributor cost or
“DC”) and the price the consumer pays, Suggested Maximum Retail Price – MRP.

If the Distributor elect to follow always Suggested MRP, then the retail profit will average
15% of the Distributor Cost (DC) before tax, or more depending on the products distributor
promotes

Selling Price - Cost Price = Profit

MRP - DC = Profit

e.g.920 - 800 = 15% Profit

2. Distributor receives a Performance Incentive from Amway based on a monthly

accumulation of points.

Business Volume (BV) and

Point Value (PV)

BV Business Volume is simply the total value, before of the products that the distributor
purchases every month. If in a given month distributor purchases, Rs. 6,000 worth of
products, then BV is Rs. 6,000. (BV may change in accordance with periodic price
adjustments)

PV The Point value is a numerical quantity assigned to each product. Total Point Value
each month based on the value of the products purchased by the distributor, determines the
Distributor Performance Incentive Percentage.

DC = BV

Distributor Cost = Business Volume

Before Tax

e.g. Rs. 900 Purchase = 900 BV

Eg. LOC High Suds

DC = Rs. 187.00

BV = 187.00

PV = 6.23

Quite simply, that means that the total PV (Point Value) accumulated by the distributor as
well as their Business Group determines Performance Incentive Percentage.

Performance Incentives:

Performance Incentives work at two levels: as discounts and commissions.

Discount: The Performance Incentive Percentage (determined by Business Group PV) is

applied to the BV of distributors own purchases for the month.

Commission: The is the difference between (a) distributors own Performance Incentive
Percentage and (b) the Incentive percentages, if any, further sponsored distributors multiplied
by the BV of the distributors Business Group.
Performance Incentive Table:

The following table indicates the minimum qualifying performance criteria in order to earn
an incentive.

If Group Monthly PV BV The Performance

incentives is

21%
10,000 3,49,200
18%
7,000 2,44,440
15%
4,000 1,39,680
12%
2,000 69,840
9%
1,000 34,920
6%
500 17,460
3%
100 3,492

RANGE OF AMWAY PRODUCTS

Till recently, the company had eleven home-care products five products in the personal-care
category and four oral care products. Amway products are considered more expensive than
similar products available through the retail route, but still sales are forever on high because
of 100 per cent concentration which makes them last must longer than competing products.
One factor which enhances the company’s is that all Amway products are environment
friendly. They also carry tamper proof seal. Amway is equipped with the most advanced
machinery and world-class technology for production and packaging.

Oral Care Products:

1. (i) Glister : Tooth paste

Features : Gently polishes teeth

Helps remove plaque with regular brushing

 Helps prevent cavities

Helps remove stains

Freshens breath.

(ii) Glister Tooth Brush

(iii) Oral Rinse

(iv) Mouth Refresher Spray.

Personal Care products:

1. G & H Body Lotion

Features: Contains glycerine and natural honey. Contains allantoin; a clinically proven
moisturiser. Leaves skin feeling soft and smooth. Pleasant fragrance.

2. G & H Body Shampoo

3. Satinique Dandruff Control Shampoo

4. Satinique Dandruff Control Conditioner

5. Satinique 2 in 1 Shampoo and Conditioner.

6. Chunky the monkey: Toy.

Home Care Products:

1. LOC High Suds: Liquid Organic Cleaner:

Features and Benefits: Strong, yet gentle. Organically based formula is powerful, offers mild
cleaning. Used for home cleaning purposed as it lifts out tough soils. It can be custom mixed
for different cleaning needs like Appliances, Vinyl, marble and tile floors, Porcelain and
ceramic tile, wood work and Painted walls.

2. SEE SPRAY: Window Cleaner Concentrate.

Features and Benefits: A concentrated liquid window cleaner. Contains fast acting ammonia
and solvent degreasers. Used on Windows, mirrors, glasstop tables, ceramic tiles, stainless
steel and chrome. Also used in kitchen on appliances, countertops, porcelain and ceramic
décor.
3. Zoom: Spray Cleaner Concentrate

Features and Benefits: It cuts through greasy dirt, including cooking oil, fingerprints, crayon,
lipstick, removes spots on all washable surfaces.

4. Dish Drops: Hand Dishwashing Liquid Detergent.

Features an Benefits: Highly concentrated powerful formula with Triadic Detergency System
(three uniquely specially blended surfactants), no artificial dyes and no colourants. Mild
dermatologically tested formula, Phosphate free formula and contains biodegeadbale
surfactants. Used for all dish washing purpose, for washing silver ware, fine china and
crystal.

AMWAY FINDS ITS WAY

Amway India Enterprise is spreading its wings, whose span is growing by the day. What
helped Amway is the fact that the virgin market is still being tapped. According to estimates,
India is worth Rs. 520 crore.
OBJECTIVES OF THE STUDY

The research was more of descriptive type as the Researcher was the study the different
aspects of consumer behaviour and the various influences affection it and which factors affect
their post purchase behaviour. The research also comprise of a distributors which reflect the
main aspects of delivery system of Amway. The main objectives of the study are:

 To find out the percentage of consumers and distributors that lies between different
income-group and age-group.

 To study the reasons why consumers use Amway products

 To study how the consumers are influenced about purchase of Amway products whether
by themselves, parents, distributors, by other customers or by friends.

 To study what consumers perceive about the delivery system and quality of the products.

 To study what sort of problems consumers are facing whit Amway and whether they are
satisfied after complaint.

 To study how distributors feel about the Direct Distribution method and about Amway
products.

 To study the satisfaction level of distributors in terms of co-operation of other distributors

as well as incentive scheme for distributors as given by the company.

 To study whether distributors expect any sort of improvement in Amway products in

terms of Quality, price and availability.

 To study what success customers and distributors for see for Amway delivery system.
CHAPTER-2

RESEARCH METHODOLOGY

The research design of any empirical study plays a very important role for its usefulness. A
clear and understanding of the nature and gravity of the problem is a must for the research to
formulate an accurate research design for the study.

If some error creeps in the research design itself, the findings will result into erratic ones and
the purpose for the study will be forfeited. Hence, it is of atmost importance to take every
care to formulate and accurate and appropriate research design.

Data Collection:

PRIMARY DATA

For collecting the primary data distributors and customers were personally interviewed. For
both customer survey and distributors survey the random sampling method was adopted.

In order to collect the accurate information, 100 customers were personally interviewed and
50 distributors were interviewed.

SECONDARY DATA

Internet, Newspaper, Magazines, etc.

 CONSUMER BEHAVIOUR
The relevance and importance of understanding consumer behaviour is rooted in the modern
marketing concept. Before designing the marketing mix, it is must to know as much as
possible about the buying behaviour of the customers. In the face of all the individuality and
complexity, marketers must search for the behavioural threads that common to each market
segment. It is essential to study and analyse it is order to understand why she / he has
developed towards a particular predisposition.

Market Segmentation:

Markets can be segmented depending on geographic, demographic, psychographic and

behaviouristic variables. By making use of this concept. Marketers approach their customers
as a number of separate groups, each with special reasons for the way in which it buys and
uses a product. The strategic choice concept of segmentation broadens the scope of marketing
planning to include the positioning of new products as well as established products.

Marketing Strategy: Strategy is general programme of action toward the attainment of

comprehensive objectives. Marketing strategy means the game plan that the marketer will use
in attaining the objectives of the business. According to Kotler, “Marketing strategy is the
basic approach that the business unit will use to achieve its objectives and it consists of broad
decisions on target markets, market positioning and Mix, and marketing expenditure levels”.
For developing marketing strategy one should have the knowledge about marketing mix.

Marketing Mix: Marketing mix is one of the key concepts in modern marketing theory.
Marketing mix consists of 4 P’s—Products, Price, Promotion and Place.

Product:

Consumer Durable Goods

These goods have a durable (ling) life and are generally brought out of savings. The
purchases of such products is influenced by:

(a) Discretionary income (disposable income minus essential expenditures on basic

necessities and other fixed obligations like debt payments, insurance premiums etc.) level of
the population.
(b) Availability of infrastructural and support facilities for the product usage in the
country (such as roads for the usage of scooters and other vehicles)

(c) Price, credit or hire purchase facilities available and

(d) Life style of the households and the role of ego, status and prestige in it.

Packaging:

Packaging includes the activities of designing and producing the container or wrapper for a
product. The container or wrapper is called the package. A successful marketing strategy
requires balance between advertising, Promotion and packaging and it is essential that
packaging should be weighted accordingly.

Pricing:

Pricing is only element in the marketing mix that produces revenue: the other element
represent costs. Pricing is considered as very critical decision in marketing. Appropriate
pricing policy and strategies are the only tools for achieving success in the market,
particularly a market loaded with rivals. In addition to the above factor that should be
considered while taking the decision about the price of a product.

Physical Distribution:

Physical distribution is the marketing function of physically moving finished products from
the point (s) of production to the point (s) of consumption involving such activities as those
concerned with carrying inventory, materials handling and transportation in such a way that
adequate time and place utilities are created for achieving profit and consumer satisfaction
objectives.

Channel decisions refer to the managerial decisions on the selection of best routes or paths
for moving goods from the producer to the consumer. Channels of distribution are concerned
not only with physical movement of goods but also with their promotion, selling and
marketing control. A rational decision regarding choice of channel of distribution should
ensure (a) maximum geographical coverage of the market (b) maximum promotional efforts
(c) minimum cost.
Promotion:

Promotions the process of marketing communication involving information. Presuation and

influence. Promotion is responsible for awakening and stimulating consumer demand for the
product. The marketing promotion mix consists of four major tools namely advertising, sales
promotion, publicity and personal selling.

Advertising:

Advertising is one of the major tool companies use to direct persuasive communications to
target buyers and public. In other word advertising as any paid form of nonpersonal
presentation and promotion of ideas, goods, or services by an identified sponsor.

In developing an advertising program, marketing-managers must always start by identifying

the target market and buyer motives,

Advertising decision making is a fine – step process consisting of objectives setting, budget
decision, message decision, media decision and ad-effectiveness evaluation.

Sales Promotion:

Arguably sales promotion is the important marketing tool in the use today: firstly, because
promotional activities, especially price-cutting, have a direct and considerable effect on the
fortunes (literally) of most mass marketing and mass retailing companies, secondly, because
money spent on sales promotion, as far as they can be estimated, are greater than the
expenditure on any other marketing information. This is the short term incentive to encourage
purchase or sale of a product or service.

Personal Selling:

Personal selling is more flexible and adaptable to the varying purchase situations. The
salesman act as marketing researcher also. According to American Marketing Association,
personal selling can be defined as an “oral presentation in a conversation with one or more
prospective purchasers for the purpose of making sales”.

Publicity:

Publicity is still another medium of communication through which a company appraises its
target consumers of the product / idea. It has been defined as non personal stimulations of
demand for a product, service or business unit by planting commercially significantly news
about it in a published medium or obtaining favourbale presentation of it on radio &
television. Publicity as a medium of communication is often used by companies on account
of its effectiveness in transmitting the desired message, generating sales, and achieving other
objectives.

Marketing Share:

Study of market share can be a most effective aid to management diagnosis, but only when
properly evaluated and discriminately applied.

Market share measurement plays a crucial role in revealing the success or failure of business
because it enables the management to find out how buyers have reacted to whole complex of
actions taken by all firms in an industry.

Reliable and useful results can be obtained by investigating the performance of the firm in
individual markets. In individual market the affects of and marketing policy are likely to be
more reliable and there is minimum scope for distortions. By integrating the performance of
many firms in individual markets, we can obtain a body of knowledge from which reliable
conclusions can be drawn. Hence, by concentration on individual markets rather than or
national markets we are able to investigate the factors which lead to the success or failure of
the firm’s market position.

Setting Market Share Goals:

We can classify market share strategies into three rather broad groups:

 Building strategies are based on active efforts to increase market share by means of
new product introductions, added marketing programmes and soon.

 Holding strategies are aimed at maintaining the existing level of market share.

 Harvesting strategies are designed to achieve high short them earnings and cash flow
by permitting market share to decline.

Marketing Research:

Due to intense competition prevailing in the markets, the need for marketing research arises.
It helps corporation to understand, investigate, analyse and interpret the market conditions.
Marketing research is very important in developing marketing strategies.
Research & Strategy:

Present environments are in a situation of regular change. Major changes will usually require
some changes in both strategy and policy. Strategies and policies should be dynamic. To
achieve this a firm must consider the question of its growth, maximum utilization of
resources, stability of business operation, catering to customer requirements and preferences
etc. and must review the product mix, if necessary.

Formulating marketing strategy requires a careful integration of all dimension of the

marketing plans. The competitive settings must be considered. Decisions regarding marketing
mix must be taken appropriately.

Forecasting Techniques:

The most common in the area of the quantitative forecasting is the time series model. Two
factors are important in a time series model. The series we want to forecast and the period of
time.

Trend Projection:

Time series analysis relating to sales represents the past pattern of effective demand for a
particular product. The most popular method of analysis of time series is Trend Projection.
Under this method forecasting may be made be three various method, viz., graphical method,
Moving Average method and Least Square method.

Marketing Organisation and its role:

Role of the marketing function and its place in the overall organization has been changing
overtime. From a situation where marketing was treated as a selling arm of the factory, if has
come a full circle where marketing ‘dictates’ what is to produced. With the passage of time,
not only has the organization of the marketing activity undergone many changes but its
growing importance has influenced the entire concept of viewing a business. More and firms
are now adopting the marketing orientation. i.e. the customer and his needs form the nucleus
of all the activities of the firm. All the activities and tasks are organized around the
custo12mer. The firm with marketing orientation has com into being after passing through
many distinct phases.
CHAPTER-3

DATA PROCESSING, ANALYSIS & INTERPRETATION

Customer Survey:

While noting the responses of respondents due care has been taken to avoid the questions
which are not concerned with that particular respondent.

Area Covered: Area covered was confined only to Delhi.

Number of Customers Surveyed: 100

After the analysis of the data collected following results has been obtained.

The consumers can be classified as below according to variables as Age, Occupation and
Income group.
1) Classification According to Age

Age Group Percentage of Respondents

15-25 42%

32%

36-45 16%

Above 45 10%
2) Classification According to Occupation

Occupation Percentage of Respondents

Students 32%

Servicemen 8%

Farmers 22%

Shopkeepers 10%

Housewives 26%
3) Classification According to Income Group

Income Group Percentage of Respondents

Below 5,000 34%

5000-15,000 50%

15,000-25,000 10%

Above 25,000 6%
RESPONSES OF CUSTOEMRS REGARDING VARIOUS ASPECTS

1) Awareness and use Pattern

Use of Product Percentage of Respondents

Always 44%

Sometimes 56%

Never 0%

All the hundred customers surveyed are aware about AMWAY products out of which 56 %
use these products sometimes and 44 % always use these products.
2) Source of Awareness

Source Percentage of
Respondents
Friends 28 %

Parents 09 %

Children 12 %

Distributors 46 %

Any other 05 %

According to the survey conducted the best source of awareness among customers are
distributors. The study shows that 46 % of customers are made aware about the products by
distributors, 28 % of the customers are made aware by friends, 12 % by children, 9 % by
parents and only 5 % by other sources like internet.
3) Quality as Compared to other Related Products

Quality Percentage of Respondents

Very superior quality 56%

Superior Quality 27%

Equally Good 17%

Below Average Quality 0%

56 % of the respondents favoured that quality of Amway products is very superior, 27 %

favoured superior quality of products and 17 % are of the view that products are equally good
as other related products. None of the respondents are of the view that Amway products are
below average.
4) Influence on Decision of Purchase

Factors Percentage of Respondents

Parents 7%

Yourself 23%

Distributors 39%

Friends 9%

Other customers 22%

5) Influence on Decision of Purchase

Packaging Percentage of Respondents

User friendly 7%
Not user fiendly 23%

6) Influence on Decision of Purchase

Factors Ranking Weigtage % age of weightage*

Product Quality 1 164 11 %
Brand Name 5 397 27 %
Price of product 4 348 23 %
Availability 3 315 21 %
Packaging 2 276 18 %

* The major factor responsble for purchase of Amway products is the product quality
and the second factor responsible for purchase is the userfriendly packaging of products

* Percentage of customer favouring particular attribute.

7) Preferable Size of Products

Size Percentage of Respondents

Pouches (very small size) 11 %

500 ml (medium size) 52 %

1 litre (large size) 37 %

Medium size of the products is mostly preferred by the customers where as very small size is
very less prefered by the customers.
8) Problems Faced by Customers

Problems Ranking Weigtage % age of

weightage*
Very High Price 1 172 8%
Quality of Products 6 581 28%
Lesser Availability 4 358 17%
Limited Range of
Quantity 2 218 10%
Replacement services 5 492 24%
No Problem 3 279 13%
According to study major problem faced by the customer is of very high prices of the
products and the second major problem is of limited range of quantity.

Percentage of customer favouring particular attribute.

9) How often the Problem is Conveyed

Time period Percentage of

Respondents
Always 35%
Sometimes 48%
Never 17%
10) Response of Distributors And Company towards Problems

Response Percentage of
Respondents

Very satisfactory 32%

Satisfactory 45%

Neutral 17%
Unsatisfactory 6%

* The satisfaction level of customers against the solutions towards their problems
regarding products, there delivery system etc. is high i.e. the distributors and company satisfy
the customers regarding their problems upto 77%
11) Response Towards Marketing System of Amway

Response Percentage of
Respondents

Very Convinent 18%

Convinent 22%

Equally convinent 13%

Difficult 47%

* Most of the respondents i.e. almost 47% found marketing system of AMWAY difficult
as compared to retailing and other traditional methods of marketing.
12) Awareness About New Products

Response Percentage of
Respondents
Always 36%
Sometimes 43%
Never 21%
13) Factors Effecting Repurchase Decision

Problems Ranking Weigtage % age of

weightage*
On time delivery 2 237 16%
Quality of products 1 156 10%
After sales services 4 373 25%
Time taken to close
the complaint 3 312 21%
Adequate quantity 5 422 28%

* Quality of products and on time delivery dominates in factors effecting repurchase

decision of customers. The least factor that effects repurchase decision is of adequate
quantity.

* Percentage of customer favouring particular attribute.

14) Factors Effecting Repurchase Decision

Perception Percentage of
Respondents
Will Be successful (A) 44%
Will not be successful (B) 20%
Not sure (C) 36%

* The perception of customers about success of AMWAY delivery system is of mixed

views. 47 % are of the perception that it will be successful, 36 % are not sure and 20 % said
that it will not be successful.
FINDING AND ANALYSIS

Distributor survey:

Area Covered: Area covered was confined only to Delhi.

Area covered in Delhi: South Delhi

After the analysis of the data collected following results has been obtained.

* Most of the distributor’s surved are from time period of 8 months to 1 year in direct
marketing business with AMWAY. The minium number of distributors under one upline
distributor are 10 and maximum are upto 50.64% of the distributors are satisfied with he co-
operation of other distributors where as 36% of the distributors are not satisfied with the co-
operation of other distributors.

1) Perception about direct distribution method

2)
Perception No. of Percentage of
Respondents Respondents
Very Convinent 7 14%
Convinent 14 28%
Difficult 29 58%
2) Influence of Customers While Purchasing

Factors Ranking Weigtage % age of

weightage*
Price of product 5 221 21%
Quality of products 2 123 12%
Brand image 6 271 26%
Personal convincing
by distributor 1 85 8%
Replacement services 3 154 15%
Time taken to close
*
the complaint 4 196
The Percentage of distributors favouring particular factor.
18%

* Accoridng to the study the personal convincing by the distributors and quality of the
products effects the customers while making a purchase.

3)
Influence of Customers While Purchasing

Media No. of Percentage of

Respondents Respondents
Personal contact 22 44%
Public meetings 13 26%
Trade fares 4 8%
By Conducting seminars 9 18%
Exhibitions 2 4%

4)
Supply of Products by Company

Response No. of Percentage of

Respondents Respondents

Always 32 64%

Sometimes 18 36%

Never Nil Nil

5) Source of Supply

Sources No. of Percentage of

Respondents Respondents

a) Other distributors only 27 54%

b) Personal contact with 16 32%

Headquarter

c) Mailing procedure 5 10%

d) Any other 2 4%

* The main source of supply according to the survey is through other distributors, as
54% of respondent favoured it and 32% favoured that they get supply from headquarters
directly through personal contact Mailing procedure is only preferred by only 10% of
distributors.
6) Response Towards Supply

Response No. of Percentage of

Respondents Respondents

Very satisfactory 18 36%

Satisfactory 23 46%

Unsatisfactory 9 18%
7) Method of Handling the Complaints

Response No. of Percentage of

Respondents Respondents

Replacement at distributor 19 38%

level (A)

Conveyance to company (B) 22 44%

Personal assurance about

quality (C) 9 18%
8) Time Taken to Close the Complaint

Time Period No. of Percentage of

Respondents Respondents

One Week 16 32%

Fifteen days 24 48%

One month 6 12%

More than one month 4 8%

* 48% of the distributors are of the favour that complaints are closed within fifteen days
and 32% are of the favour that complaints are closed within one week, 12% favoured one
month and 8% favoured more than one month.
9) Perception About Incentive Scheme

Response No. of Percentage of

Respondents Respondents

Very satisfactory 12 24%

Satisfactory 16 32%

Neutral 12 24%

Unsatisfactory 10 20%

* The satisfaction level of distributors regarding incentive scheme is considered

as satisfactory by most of the respondents.
10) Incentive Performance Effected by Size of Product

Response No. of Percentage of

Respondents Respondents

Toa great extent (A) 4 8%

To some extent (B) 32 64%

Not effected (C) 14 28%

11) Expectations Regarding Financial Deal

Expectations No. of Percentage of

Respondents Respondents

Cash discount 32 64%

Credit Allowance 10 20%

Advance payments 6 12%

Any other 2 4%

Cash discount policy is comparatively favourable to distributors as compared to other

financial policies.
12) Response about Success in Future

Expectations No. of Percentage of

Respondents Respondents

Will be successful (A) 30 60%

Will not be successful (B) 9 18%

Not sure (C) 11 22%

The result is obtained by the responses of the distributors surveyed only. Our of 50
distributors surveyed 30 respondents favoured success of AMWAY marketing system, 11
ranked as not sure about it and only 9 respondents mentioned that it will not be successful.
SUMMARY

The success of any organisation depends mainly how will it can forecast the environmental
changes. The growth of the company is subject to the management’s efficiency in coping with
the environmental changes. The variables operating in environment are economical, social,
technological, potitical and legal factors. These variables are not static. Instead, they are
dynamic. The variables will be changing with the passage of time. These changes will effect
the operations of the organisation. These effects, in turn, will affect the company’s growth
and success. Therefore, companies should have enough capacity to forecast, predict and
mange these changes.

Actually, the changes in the environment will bring both opportunities and threats to the
organisation. Every time, both threats and opportunities will not arrive ate once. Sometimes,
threats will come, and in sometimes, opportunities will come. Threats will directly affect the
running of the organisation. But opportunities cannot be observed directly. It depends on the
company’s ability to predict opportunities, and converting them into profitable activities.
Then only, the company can grow and attain the desired objectives. Therefore, the company
should have enough innovative qualities.

Opportunities will not arose from the change in the market alone. Sometimes, the changes in
the Government policies will also bring opportunities.

Regarding the financial position of the company, it is very much safe and backed by huge
resources. The turnover of the company is increasing at a rapid rare. It has a good credit
worthiness in the money market. Thus, the company is also maintaining a good hold on
financial activities, which inturn is helping for the progress of the company. Regarding the
product, the company is offering its product in wide range and still increasing the range with
time.
CONCLUSION

The following conclusions emerged from the survey discussed in the preceding section.

 It is very clear that the sale of Amway products is very good in the surveyed area. It is
the fact that Amway brand name has good impression on the people.

 The majority of consumers and distributors lies between fifteen to twenty five years
of age group and in the most of the customers are students and housewives.

 Awareness level regarding Amway products is high and the major sources of
awareness are distributors and friends.

 Perception of costumers regarding delivery system of Amway is not satisfactory. Most

of the customers find Amway delivery system as difficult.

 Quality is playing the most important role in purchasing decision. The packaging of
products is also influencing the purchasing decision to high extent.

 The prices of the Amway products are very high. Most of the customers and
distributors revealed that if the prices are decreased, there is a scope for increase of sale of
Amway products.

 The main problem with Amway products is of higher price and delivery system.

 Cash discount is preferred by the distributors in comparison to credit.

 Company’s delivery system is preferred by the distributors because it facilitates

replacement and easy delivery.

 Most preferable size of the products is medium size which the customer finds
economical.

 The problems of the customers are satisfactorly handled by the distributors and
company. Replacement at distributor level and conveyance to company are the methods
adopted by the distributors for satisfying the customers complaints.

 Most of the distributors are satisfied with the incentive scheme (i.e. cash discount
system) adopted by company.
 The customers are made aware about the new products through public meetings and
by personal contact.

 Majority of the customers and distributors forsee success of Amway in future.

RECOMMENDATIONS

 Advertising’ is one area which widely attracts audience attention. More justified and
economical use of advertising can yield substantial benefits.

 The distributor customer relation play an important role. Healthy and orderly relations
with expertise in after sale service can be very beneficial.

 Lover income segment can be targeted by reducing the process to some extent.

 Sales promotion techniques such as free gifts, seasonal discounts & gift hampers
should be more frequently used as they attract potential consumers.

 The distribution network of Amway India Enterprise should be strengthened so as to

make products easily available to the customers.

 The company should improve on after sales services.

 A variety of products in wide range should be offered so as to cater the needs of

different income groups.

 The company should adopt various size packing instead of only three size.

 Prices play an important role in purchasing decision. So prices of Amway products

should be reduced. The following are the objectives to decrease the price.

(i) To increase the capacity

(ii) To broaden the market

(iii) To counter the rivals.

 Increased distributors margin would also prompt the sales of Amway products.

 The after sales service should be given much attention and care must be taken to make
it prompt and efficient leading to lower customer dissatisfaction and lesser customer
grievances.

 Suggestion and comments of distributors and customers may also be invited for
product consideration.
Lastly, the researcher hopes that the above mentioned recommendations would be helpful to
Amway India Enterprise in capturing a Lion’s share.
BIBLIOGRAPHY

The Dream That will not Not Die

by Charles Paul Conn

Marketing Management

by Philip Kotler.

Principles of Marketing

by Philip Kotler and Amstreng.

Statistical Methods

by S.P. Gupta

Research Methodology

By Kotharia

www.Amway.Com. – (Amway Website)

 QUESTIONNAIRE FOR CUSTOMERS

Name of the Respondent :

Age :

Sex :

Occupation :

Income Group :

: (i) Below 5000 (ii) 5000-15000

(iii) 15000-25000 (iv) Above 25000

Marital Status : (i) Single (ii) Married

(iii) Married having kids

Address :

Q.1 Are you aware about AMWAY products: (i) Yes (ii) No

If yes do you use these Products?

(i) Always (ii) Sometimes (iii) Never

Q.2 No advertising media are used by AMWAY, so how you came to know about
AMWAY products?

(i) Friends (ii) Parents (iii) Children

(iv) Distributors (v) Any other

Q.3 What is your response after use of AMWAY product as compared to other related
products, whether you found products.

(i) Of very Superior Quality (iii) Equally Good

(ii) of superior Quality (iv) Below average Quality

Q.4 Your final decision of purchase is infuenced by

(i) Parents (iv) Friends

(ii) Yourself (v) Other customers

(iii) Distributors

Q.5 How do you find AMWAY product packaging?

(i) User friendly (iv) Not user friendly

Q.6 Which of the following is the main reason for your purchase of this brand? (Please
give Ranking)

(i) Product Quality (iv) Availability

(ii) Brand Name (v) Packaging

(i) Price of Products

Q.7 What size of the products is most prefered by you while making a purchase?

(i) Pouches (very small size) (iv) I litre (Large size)

(ii) 500ml (medium size)

Q.8 What sort of problems you face with AMWAY products? (Please give ranking)

(i) Very High Price (iv) Limited Range of Quantity

(ii) Quality of Products (v) Replacement Services

(iii) Lesser Availability (vi) No Unsatisfactory

Q.9 Have you ever tried to convey you problem to the distributors or company?

(i) Always (ii) Sometimes (iii) Never

Q.10 What is the response of distributors and company towards the problems faced by the
customers?
 (i) Very Satisfactory (ii) Neutral

(iii) Satisfactory (iv) Unsatisfactory

Q11. How do you feel about the marketing system of AMWAY as compared to retailing and
other traditional methods of marketing?

(i) Very convinent (iii) Equally Convient

(ii) Convinent (iv) Difficult

Q.12 Are you frequently made aware about new launches of products by AMWAY
distributors?

(i) Always (ii) Sometimes (iii) Never

Q.13 What factor of products effects your repurchase decision?

(i) On time delivery (iv) Time taken to close the complaint

(ii) Quality of Products (v) Adequate quantity

(iii) After sales services

Q.14 What success do you for see as an AMWAY customer for delivery system?

(i) Will Be successful (iii) Not sure

(ii) Will not successful

Q.15 If your opinion what is major draw back (if any) of AMWAY delivery system?

Q.16 Is there any specific suggestions for the improvement of delivery system of Amway
Enterprise?
Thank You

(ROHIT RAWAT) QUESTIONNAIRE FOR

DISTRIBUTORS

Name of the Respondent :

Age :

Sex :

Occupation :

Income Group :

: (i) Below 5000 (ii) 5000-15000

(iii) 15000-25000 (iv) Above 25000

Marital Status : (i) Single (ii) Married

(iii) Married having kids

Address :

Q.1 For how long have in Direct Marketing business with AMWAY?

(i) Day/s

(ii) Month/s

(iii) Year/s

Q.2 How many distributors do you have under you?

(i) Upto 10 (iii) 20 to 50

 (ii) 10 to 20 (iv) others

Q.3 Are you satisfied with the co-operation of other distributors?

(i) Yes (ii) No

Q.4 How do you feel about Direct Distribution method adopted by AMWAY Enterprise?

(i) Very Convinent (iii) Difficult

(ii) Convinent

Q.5 What influences the customers more while making the purchase of products? (Please
give ranking)

(i) Price of product (iv) Personal convincing of distributor

(ii) Quality of product (v) Replacement Services

(iii) Brand image (vi) Time taken to close the complaint

Q.6 As no adverting media are used by AMWAY, So how you make your customer aware
about new products?

(i) Through personal contact (iv) By conducting seminars

(ii) Through public meetings (v) Through Exhibitions

(ii) Through trade fares

Q.7 In case of peak demand of products whether you are able to get the product with full
supply from the company?

(i) Always (ii) Sometimes (iii) Never

Q.8 As there are very few headquaters of AMWAY Enterprise still after establishment of
one and half years then how the distributors get their supply of products?

(i) Through other distributors only

(ii) Through personal contact with the headquater

(iii) Through mailing procedure

(iii) Any other

Q.9 What is your response towards supply of products by AMWAY?

(i) Very Satisfactory (iii) Unsatisfactory

(ii) Satisfactory

Q.10 In case of any complaint by a customers how do you handle the problem?

(i) Replacement at your own level

(ii) Convey to company about complaint

(iii) Personal assurance about quality

Q11 What is the minimum time taken by you and company to close a particular complaint?

(i) One week (ii) One month

(iii) Fifteen days (iv) More than one month

Q.12 What do you say about the incentive scheme for distributors as given by the
company?

(i) Very Satisfactory (ii) Neutral

(iii) Satisfactory (iv) Unsatisfactory

Q.13 What are your expectations from the company in financial deal?

(i) To a great extent (ii) Not effected

(iii) To some extent

Q.14 What are your expectations from the company in financial deal?

(i) Cash discount (ii) Advance payment

(iii) Credit allowances (iv) Any other

Q.15 What success do you see as AMWAY distributor for AMWAY delivery system?

(i) Will be successful (ii) Not sure

(iii) Will not be successful

Q.16 Would you like to give some suggestions about the distribution network of AMWAY?
Thank you
 PRODUCT PROFILE

AMWAY PRODUCTS:

Amway offers a range of exclusive, competitive brands that meet proven

customer needs around the world. From nutritional supplements to water treatment,
cosmeticsto cleaning products, these brands are the solid foundation for a successful,
independentRetail business.

NUTRILITE®

Nutrilite® is the world’s leading brand of vitamin, mineral, and dietary supplements,
grown harvested, and processed on its own certified organic farms.

ARTISTRY®
 Artistry® is one of the world’s top five largest-selling prestige brands of facial skin
care and colour cosmetics.

DYNAMITE®

Dynamite's range of male grooming products, formulated internationally is designed

to deliver the ultimate grooming experience.

GLISTER®
 Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that
offers seven benefits.

PERSONA®

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.

SATINIQUE®

Satinique Advanced Range with unique Ceramide Infusion System uses nature's own
renewing technology to rejuvenate, strengthen and protect your hair.
SA8®

SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and softens.

G&H®

G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes and
hydrates the skin for a healthy glow.
LOC®
LOC High Suds is a multipurpose household liquid cleaner.

DISH DROPS®

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic Detergency
System".
ATTITUDE®

Attitude™ Skin care range of products are fortified with Triple Advanced Complex. This
Complex contains :*OSMOGELINE™-red sea weed extract, Vitamin A,C,E & Natural Fruit
& Floral extracts like Aloe Vera, Avocado & Grape seed extracts. The new improved attitude
skin care range of products help to clean, replenish, moisturize & revitalize your skin making
it soft supple & lustrous.

GREAT VALUE PRODUCTS®

Great Value Product Range offers you Great Quality, Great Performance, Great Price and a
Money Back Guarantee!