Amaya 2

Amway –A New Horizon In Direct Marketing
CHAPTER-1
INTRODUCTION:-
Direction marketing is an interactive marketing system that uses one of more
advertising media to affect a measure response or transaction at any location.
Today many direct marketers like Hindustan lever, Modi industries, Amway and
Diotec etc. See direct marketing as playing broader role that of building a long-
term relationship with the customers. Direct marketing can be defined as to reach
the prospect at the right moment and receives higher readership. Direct marketing
permits the testing of alternative media in search of the cost-effective approach.
Direct marketers can measure response to decide. Which have been the most
profitable?
In the field of direct marketing Amway has played a very vital role. Amway
is a unique company. It is defined by a fundamental philosophy of helping people
help themselves. It provides unique opportunities, which offers individuals from all
walks of life to build a business of their own by selling a wide range of quality
products to consumers on a person-to –person basis.
OBJECTIVES:-
1. The current project report will help the persons interested in direct marketing
comparing with their talent and abilities.
2. This project reflects how sincerity and hard work is followed by high
rewards.
3. This project helps the interested persons to explore the leisure time and
convert it into a productive time.
4. It will help to clear the shadow before customers as regards to the benefit to
direct marketing.
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S.C.S (A) College, Puri
SCOPE :-
This project report is confounded to some basic aspects of Amway, the pioneer in
direct marketing due to the characteristics of requiring limited time and cost. This
report reflects the role of Amway in the field of direct marketing. This report is
mainly based on secondary data. However, this project will be very helpful for
further research.
LIMITATION :-
While preparing this project, I have faced some difficulties. Hence, they are the
limitations of this project:-
1. This project report is limited due to the vast concept of direct marketing.
Which cannot be explained in such limited spaced project?
2. Some of the personal problem like lack of sufficient founds and sufficient
information also limited this project.
3. The data’s on Amway is only provided to its members. Which itself a very
hard task for me to collect these information’s without being a member of it.
METHODOLOGY :-
The project study is complied from various Newspapers, Amagram, Newsgram
(Amway mazagines), journals and agent’s manual etc.
The most important source of information this project came’s from Amway’s
agent’s manual. The secondary data are explained with examples through the help
of table and diagrams. In this report some mathematical symbol like %
(percentage), (Ratio) etc. are used for calculation.
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CHAPTER PLAN
CHAPTER -1 : Introduction
CHAPTER-2 : Amway-A New Horizon In Direct Marketing
CHAPTER – 3 : Amway Sale And Marketing Plan
CHAPTER-4 : Financial Analysis
CHAPTER-5 : Conclusion
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CHAPTER-2
AMWAY-A NEW HORIZON IN DIRECT
MARKETING
INTRODUCTION TO PROJECT
Our objective of the study is to understand the Amway’s operations in
international marketing with respect to PESTLE analysis, SWOT analysis,
Marketing Mix (Product, Price, Place, Promotion, Packaging and People) and also
we have compared its operation domestically and internationally. To understand
the former part, we have visited ‘Amway India’ and gathered appropriate
information with regards to project.
We have analyzed the information of the companies with respect to above

determinants and prepared relevant statement. After all our proceeds we get to
know that this retail company enhanced its business through Direct Marketing and
created both Health & Wealth to its customers.
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DIRECT MARKETING: A UNIQUE CONCEPT:

Direct selling- Meaning: the sale of consumer products or services through
personal contract (Amway from the conventional marketing concept i.e. through a
chain of middle man where every customer has to buy products from a fixed retail
location or shop). World wide the number of direct sellers is growing at 220,000
per week. According to a survey report published by “Harvard University-
Business School” over 50% to 60% of the products will be sold through direct
marketing (Multilevel marketing) in the coming years.
In other wards multilevel marketing allows sellers to build a business

through their own sales efforts and inviting other to become sellers. Remuneration
is based on a seller’s personnel sales and combined sales of those people they have
sponsored, trained and motivated.
BENEFITS TO CUSTOMER:
The form of marketing goods of services directly to customers takes place.
 At the customers convenience

 Often in his/her home place
 Either on a one-to-one basis or in a group
Customers value the advantages of:-
 Convenience
 Personalized attention
 A good section of products
 Ability to examine the products for a person of time protected by a customer
refund policy.
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Benefits to the seller:-
Many people have chosen direct selling because they want to have their own
business. But can not do it for the following reasons:-
 Requirement of huge funds for starting a business.
 Commitment of sufficient time about 12-14 hrs which is a hard task.
 Lack of expensive and knowledge.
 Legal problems.
 Hiring of space and employees
 Maintaining of accounts
 Limitations of markets.
TOP FIVE REASONS OF DIRECT SELLING BY THE

PEOPLES.
 Because they like and believe in the product, which are of absolute of
premium quality.
 Because, they like being on IBO (independent business owner) and working
at the spare time.
 Because they like the supplemental family income or like making huge side
income to fulfill their dreams and ambitions.
 Because of its world wide recognition.
 Because for enjoying networking and meeting people and of cause, love to
help others.
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BENEFITS TO THE COMPANY:-

In today’s world of rapid change, direct marketing offers companies:-
 Easy and simple direct distribution channel.

 High accessibility where time and domain is no bar.
 By passing the rigid and costly traditional distributional channel.
AMWAY-THE PIONEER IN DIRECT MARKEETING :-

AMWAY STORY:-
A distinguished lineage:- companies across the world, run on the twin rails
of profit and growth. But some companies are driven differently. At Amway our
philosophy is defined by commitment. Trust enduring relationships and the ideal of
perfection above profit. From a humble beginning in 1959, using an old gas
station, Amway the brain child of co-founders rich Devos and Jan van Andel, is
now one of the world’s largest and successful Direct selling companies. Between
then and how. Amway corporation has grown into a us multi billion dollar
company managed by over 12000 employees. It operates across 88 countries and
territories, through a sales- force of over 3 million Distributions. The company
manufactures 450 products, and markets more than 3000 internationally reputed
brands. Over 500 R &D scientists and professionals ensure the exceptional quality
of our products across 5 product lines:- Home care, personal care, Home Tech,
Cosmetics, Nutrition and Wellness. Conscious of its global responsibilities as
mature and reputed corporate citizen, Amway binds its Distributors to operate their
business in concert with the Rules of conduct. The code of ethics and the Rules of
conduct defines best business practices mandatory for Distributors. Amway’s code
of Ethics and its sales and marketing plan have set standards for the Direct selling
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industry internationally. The company is also a long-standing, active number of the

(WFDSA).
Amway is committed to expanding the environment awareness of all people

in the world. In June 1989, Amway was presented with the united Nation’s
Environment program’s Environment Achievement award. This award recognized
Amway’s commitment to environmental education and awareness.
Amway is more than an income opportunity or a company or products. It’s

about putting people in control of their lives. It’s about connecting people to others
who respect them, who share their goals and aspirations. It’s about supporting
people in their achievements. Amway is about people connecting people to a better
way of life.
Amway has more than 6000 employees worldwide. In addition, Amway has
more than 3.6 million Independent Business Owners (IBOs) around the world. In
China, Amway products are sold by Amway sales representatives.
THE COMPANY:-
 Amway corporation founded by Rich Devos and Jay Van Andel at ADA,
Michigan, USA in 1959.
 The largest direct marketing company in the world and 22 nd privately held
company in USA.
 AMWAY has already invested over Us $ 35 million in India of which is $ 6
million is in the form of direct foreign investment.
 Largest manufacture of vitamins and Nutrition supplements in the world.
 One of the top 11 cosmetics companies in the world.
 Business is more than 87 countries and territories. In none of the countries
this plan has ever failed to work.
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 Independent distributor force more than 40,00,000 world wide and more
than 50,00,000 in India.
 In the first three weeks of operations, it has already surpassed the total turn
of all other networks- marketing companies active in India market for the
last few years.
AMWAY FOUNDER’S FUNDAMENTALS:-

Rice Devos and joy Van Andel built the business on the following
principles, which they and their families believe constitute a sound foundation for a
meaningful life:
1. Freedom:
 Provides most conductive environment to live, work, achieve and grow.
 Operate as independent business people.
 Conduct a full-time or part-time business.
2. Family:-
 Our primary social structure provides values, framework for growth and
ability to thrive.
 Family- owned business, passed on to generations.
 An attempt to strengthen family ties.
3. Hope:-
 Power to transform lives positively.
 Opportunity to establish and run a business irrespective of social status,
profession or educational background.
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Benefits to consumer:
The company offers world-class produce, Which exceeds consumer expectations.
The consumer benefits from the Amway sales model because it ensures
convenience and reliability.
 The consumer makes a purchase in the comfort of his/her home.

 From someone he/she knows.
 The purchase is made after demonstration of usages which revels each
attribute of the product and corrects product usages.
 A customer product refund police, which promise product return and refund
if the consumer is not satisfied with it, governs each purchased.
Salient Features:-
No formalities:- Amway offers any one, any where entrepreneurship and the
opportunity to own an opportunity to own an independent business as an
independent Amway distributor.
Needs no specialization:- The prospective distributor not needs specialist

skills, influential contact or bank loan.
Less money with determination:- He or she needs a nominal amount of

money and determination with desire to succeed.
Success rate:- Amway distributors has emerged as successful business

persons, with many more joining the ranks every month.
Realizing self worth:- Amway helps people from all walks acquire a sense of
self worth.
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Hither quality standard:- Every product satisfies Amway’s impeccable

quality standards and is comparable to the best internationally.
Well proof:- All Amway products carry a tamperproof seal. Amway’s

products are not tested on animal. Are bio degradable and phosphate-free. Amway
encourages the return of it’s product bottles for recycling.
Best in usage value and quality:- Amway products are unique usage and I
quality. A key feature of Amway products is their highly concentrated formulation
which offers excellent. Value-for-money. Another attribute of Amway products
are produced by small/ cottage manufactures across the country. Most of them
never find a marlset. For want of a distribution and sales option for small
manufactures.
No requirement of shopping:- The consumer and the distribution can shop

without shopping. It has introduces the consumer and distributor to five ES:
Ease of ordering: Picks up the phones and order the products you need
Ease of deliver: An order is delivered to the door step within 48 hours.
Ease of payment: payment in cash or cheque from home.
Ease of information: Distributors can access information first-hand.
Ease or return: A distributors has the freedom to quite the business and products.
The opportunity:-
The best payment opportunity in the world, considering its “Low cost” low risk
and high return “profile”.
 Any body can join irrespective of their Educational qualification, experience

and social technical status.
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 Start up cost Rs 4200 only (cost of a B?W TV or a saree)+ cost of

educational material.
 No space required can be run from home.
 No staff required, only “Husband and wife” could run the show (if married).
 No inventory, no blue king of investment.
 Expertise, available 24 hours week (all calculation) for you.
 No competition, possibility to grow internationally.
 Need to transact about Rs. 2000 per month and unlimited income scope.
 Only 10-12 hours per week needed from space / free time to build your
business.
 Residence income generating future security and you financially free.
 You also earn free time to enjoy your income with your family and friends
and offers much more than just money.
 Income is willable, inheritable and inflation adjusted.
 A unique chance to help people to help themselves.
 Scope to spend quality time with quality people, which lead to simple
thinking and high living ultimately a quality life.
 A time tested business plan which has always met with success in different
countries in a variety of social, cultural, religious, political and financial
environment.
 There is a scientific, methodical and elaborate back up system (BRITT
WORLD WIDE) making success predicable for any body having an urge to
succeed.
 Honestly, integrity and Ethics are the basic of this business.
 There is no buss, no geographical jurisdication and to target set by the
company.
 No exit barrier and hassle – free refund policy (with in 90 days).
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AMWAY –INDIA
INTRODUCTION:-
Amway India was established in 1995. It commenced commercial operations
in may 1998; it started work in the social sector in 1996. In the brief period since
launch, it has emerged as the country’s largest direct selling company. Over
3,50,000 entrepreneurs have adopted the Amway business opportunity; several of
them have grown to become successful business leaders.
Amway has invested in excess of us $ 35 million (Rupees 151 crores) in

India of this, US $ 6 million (Rupees 26 crores) is in the from of foreign direct
investment. Amway India has opened over 40 offices and through them services
about 400 cities and town across the country.
COMMITMENT:-
To make a significant contribution to the communities in which we live and works
throughout the world. Amway is not limited to corporate bottom lines; the
company is a nature corporate citizen. For over 40 years, across the globe, we have
been sensitive to the needs of the communities in which we operate.
Reorganization for this has come from several governments and organizations
including the United Nations.
Amway opportunity foundation (AOF):-

1. It is the social responsibility arm of Amway India. AOV donated a state-of-the-
art mobile dental clinic to the Rotary club, Delhi midtown, for the USA in slum
areas in 1996. Operated by the Rotary club, this clinic offers free dental check
up and care six.
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2. 7 Days a week, 52 weeks a year, to the underprivileged in and around Delhi.

3. Amway made a significant endowment to the faculty of management studies
(FMS) Delhi University, in 1998. This led to the creation of the Amway chair
on entrepreneurial development at the FMS. This endowment had been made
with the intention of encouraging entrepreneurial study.
4. AOF commenced its national project for the Blind in 1998. This ambitious plan
sought to print and distribute Braille textbooks to the blind school -going
children in different states of India.
5. AOF has supported the Terry fox run at Bangalore, in 1998-99. This is an event
organized around the world, in did of cancer research.
6. AOF had supported the production of audio textbooks for undergraduate as
well as postgraduate students of Bangalore University, with ALCB also
supports the National Braille reading contest held by AICS in Delhi on Jan 4 th ,
which is designated as the Louis Braille Day. A part of this programmed pits
blind students against children of normal version, in debate etc.
7. AOF has also supported Dr. Shroff’s Charity eye Hospital in conducting the
personality development/ communications workshops for the blind, held on
Hyderabad, Delhi Mumbai, Ahmadabad, and Chennai. Alwar and Shimoga.
Women stepping out to face the world, the blind need that extra confidence –
which is what this workshop dims at proving.
8. AAOF has also set up a specialized compute center with the Ramakrishna
Mission Blind boys Academy, Narendrapur, and Calcutta. This is to be the first
such center in education India and will enable blind-school-going children to
learn this vital skill of the 21st century.
9. AOF has donated a sum of Rs. 30 lakhs to child relief and you (cry) towards
rehabilitation to the affected persons of the Gujarat earthquake.
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PRODUCTS AND SERVICES:-

Over 450 unique quality products curry the Amway name in the field of
personal care, nutrition and home care, home tech and commercial products plus a
variety of services in addition. The world class Amway products are selected after
careful evaluation, testing and stability to ensure consistent quality materials
meeting Amway’s stringent requirements. Amway distributor in some markets sale
addition brand-name goods through merchandise catalogues plus verity of service
and educational products. Amway nutritive division is he world’s largest
manufactures of brands vitamins and mineral tablets or cup sales from based on
1996 sales. Based on Euro monitors study of 1996 estimated retail global sales date
Amway ARTISTRY line is largest selling direct sales brand of facial skin care and
colour cosmetics in the world. All Amway India products / bottles are
manufactured through third parties contract manufactures using world-class
technology and process. The products match Amway’s global quality standards.
They carry a temper-proof seal and a ‘customer Refund Policy’. It not completely
satisfied with the product, the customer could return it for a refund. Amway
products are environment friendly, and are not tested on animals. Amway
encourages the return of its used products bottles for recycling and to prevent their
misuse. An aggressive product launch plan introduced new products every few
months.
Over 450 unique, high-quality products carry the Amway name in the areas
of nutrition, wellness, beauty and home, as well as commercial products and a
variety of services (from which 105 products are offered in India). In addition,
Amway independent business owners in selected markets sell additional brand-
name goods through local merchandise catalogues, plus a variety of services and
educational products. All products are backed by a customer satisfaction guarantee.
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Nutrition and Wellness

Nutrilite® is the world’s leading brand of vitamin, mineral, and dietary supplements,
grown harvested and processed on its own certified organic farms.
Cosmetics
Our skin is the outward appearance of who or what we are , or what we would like to be.
But it is more than a simple cover. It is the largest organ of our body - a complex and
dynamic system that is vital to our health and reflects it as well.
Artistry®
Artistry® is one of the world’s top five largest-selling prestige brands of facial skin care
and colour cosmetics.
Attitude®
All products of Attitude contain Skin Vitalizing Complex that synergistically combine to
cleanse, Replenish & Moisturize the skin making it soft & supple.
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Home Care
Amway’s Home Care Brands provide complete cleaning systems that fit with everyone’s
needs. Their versatile, effective product systems offer the features and benefits
consumers want. No matter what your lifestyle, Amway’s Home Care products make
light work of your cleaning chores.
SA8®
SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and softens.
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".
Personal Care
Amway Personal Care products have built global reputation based on their world-class
research and development. These products are designed to deliver the ultimate grooming
experience and the confidence that lasts long.
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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.
Dynamite®
Dynamite's range of male grooming products, formulated internationally is
designed to deliver the ultimate grooming experience.
G&H®
G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes
and hydrates the skin for a healthy glow.
Apart from this Amway also deals in Air purifiers and Water purifiers, Jewellery,
Electronics, & Insurance products.
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Manufacturing Strategy
Almost all Amway India products are manufactured in the country through
third party contract manufacturers. With the exception of Cosmetics range
(Artistry*) and some products in Nutrition and Wellness category, all Amway
India products and bottles are manufactured in India.
The products match Amway’s global quality standards. They carry a tamper-
proof seal and a ‘100% Money Back Guarantee'. 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.
To bring the identified contract manufacturers’ production facilities and
skills to international standard, Amway has invested in excess of US$ 4 million
(approx. Rs. 17 crore). The transfer of this state-of-the-art, world-class technology,
has been free of cost.
Different Types Of Provided Through Amway

Home Care
L.O.C. Liquid organic cleaner ]
DISH DROPS : hand dishwashing liquid detergent
SEESPRAY : Window cleaner converntrate
XOOM : Concertrate
SA8 : Gelzyme with natural softer
SA8 : Delicate liquid Detergent
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BUffuo
PERSONAL CARE RANGE
Satiniqure : 20 in 1 shampoo & Conditioner
Satinique : Dandruff control conditioner
Satinique : Dandrauff control shampoo

Nature Shower : Crème hand soap
G&H : Body Shampoo
G & H :- Loation
Glister -5-1 Tooth brush Family
Toot brough
Fersona – Table
NUTRITION & WELLVESS

Iutrilite : Protein powedr
Nutrilite : Protein power
Nutrilate : sibberian Ginseng withGingko Biboba
NUTRILITE : Triple Guard Echinacea
NUTRILITE : Guluconsamine IICL with Buswaellia
Nutrilite : Daily
Nutrilite : Kinds
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Quality Assurance (QA)
Amway QA personnel ensure stringent Quality checks at the contract
manufactures. Every batch of finished product is sampled using Military Standards
Sampling Technique and inspected to ensure compliance with specification and
conformance checklists.
Formulation
The flavors and fragrance used in Amway products do not use carcinogenic (
cancer causing) compounds.
Corporate Social Responsibility
 Enhance human resource development through opportunity and self

employment.
 Create popular opinion on the benefit of organized direct selling through
several seminars.
 Follow code of ethics and rules of conduct Audit down by the ward
federation of direct selling ( WFDSA)
 To encourage the entrepreneurs to follow ethics business practices by
adhering to rules and regulation of the country governing business.
 Community development through Amway opportunity foundation (AOF)
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REWARD AND RECOGNITION

Through out the Amway world the company provides many motivation tool to its
distributors to accomplish significant business goals
It encourage distributors to sell products and sponsor other distributor
through an extensive sytem of a awards and rewards that recognize the increasing
amount of effort required to achieve higher performance levels.
What are rewards?
All distribution are eligible to receive financial rewarded based on their selling
products by their sponsored group. This includes :
 Retail margin / profit
 Performance incentive
 Additional monthly commissions
 Annual commissions
 One – time cash commissions
 Funder’s achievement awards.
Distributors are eligible to receive ( Awards)
 Personal recognition recognition from Amway
 Personal recognition, wawards including pins ( silver producer on wards)
 Certificates and plaques ( Sirect Distributo onwards )
 Recognition in Amagram.
Levels of Recognition
 Silver producer :- A silver producer has attained a qualifying month at 21%
level with a group voume of 10,000pv.
 Gold producer :- A gold producer lever producer has attained three
qualifying months at the silver producer level within a rolling 12- month
period.
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 Platinum :- A platinum has attained six qualifying months at silver producer

level at least three of which are consecutive, in a rolling 12 – month period.
 Ruby :- A Ruby is a qualified platinum who has attained at least 20,000
personal group PV in any one month during the fiscal year in market.
 Founders platinum : A founder’s platinum has attained who has maintained
20,000 personal group pv for all 12 months in a fiscal year-in market.
 Supphire : A sapplhire is a qualified platinum who has sponsored 2 domestic
21% legs in the same month, for 6 months in a fiscal year, whilst
maintaining 4000 personal group pv of has a third 21% leg in the absence of
4000 GPV in any months.
 Founders sapphire : A founders sapphire is a qualified platinum who has
sponsored 2 domestic 21% legs in the same month, for all months in a fiscal
year, whilst maintaining 4000 personal Group PV or has a third 21% leg in
the absence of 4000 GPV in any month.
 Emerald :- An emerald is a qualified platinum who has sponsored 3 legs,
each of which was of the 21% performance. Bonus level for least 6 months
of the fiscal year.
 Founders Emerrald :- A founders emerald is a qualified platinum who has
sponsored 3 legs, each of which was at the 21% performance Bonus level for
all 12 mionths of the fiscal Year.
 Diamond :- A diamond :- A diamond is a qualified platinum who has
sponsored 6 legs, each of which was at the 21 % performance Bonus level
for at least, each of which was at the 21% performancr Bonus level for at
least 6 months of the fiscal year.
 Founders diamond :- A founders diamond is a qualified platinus who has
sponsored 6 legs each of which was at the 21% performance bonus
Recipient who has achieved 8 FAA points.
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 Executive Diamond : An executive diamond is a qualified platinum who has

sponsored 9 legs, each of which was at the 21% performance. Bonus level
for at least 6 months of the fiscal year or is Diamond Bonus Recipient who
has achived 10 FAA points.
 Founders Executive Diamond : An founders excutive diamond is a qualified
platinum who has sponsored 4 legas, each which was at the 21%
performance. Bonus level for all 12 months of the fiscal year or is a
Diamond Bonus Recipient who has achieved 12 FAA points.
 Double Diamond : A double diamond direct distributor has sponsored 12
legs, each of which was at the 21% commissions level for at least 6 months
in a fiscal year.
 Founders Diamond :- A double diamond direct distributor has sponsored
12% performance Bonus level for all 12 months of the fiscal year.
 Triple Diamond : A triple diamond direct distributor has sponsored 15 legs,
each of which was at the 21 commission level for at least 6 months in fiscal
year.
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CHAPTER -3
AMWAY SALE AND MARKETING PLAN
The sales and marketing plan is the cornerstone of the Amway business. It
encourages distributors to sell products and sponsor other distributors through an
extensive system of Awards and Rewards that recognize the increasing amount of
effort required to achieve higher performance levels. To build a successful
distributorship, distributor must sell products and sponsor other individuals as
distributors.
The Amway is private co operative organization. The Amway Sales and
Marketing Plan put you in control, allowing you the flexibility to work where and
when you want, giving you time for family and friends as well as the opportunity
to earn a good income. It adapts easily to your needs and ambitions, and grows
with them, offering you all the personal support and assistance you require to
become the Business Owner you want to be. With Amway you are Connected to
the global leader in multilevel marketing, with over 40 years of experience,
Supported by great products and people who will help you succeed, and finally In
Control of your life.
The Amway Sales and Marketing Plan is a low risk, low start-up cost
business opportunity that is open to everyone. It allows you to build your business
through retailing products and sponsoring other people who, in turn, can retail
products and offer the business opportunity to others. By passing your sales and
marketing knowledge to your developing team, you not only build your own
business network but also enable others to build one of their own.
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Merchandising Amway Products :
High-quality Away product are the key to your success- your customers will
like them and use them and recommend them to other. Because Awway products
are “ Consumable “ you will be providing regular replenishment to your
consumers, giving tyou the opportunity to demonstrate lost of other. Amway
products as will any of your distributors who merchandise products to their
customers. In addition, you have the opportunity to receive commissions from
Amway based on monthly product volume. Amway products are the foundation
open which your business growth will occur. Satisfied Amway customers not only
help your business to grow in terms of product sales, they are also an excellent
source of potential distributors because they know the products and use them
regularly.
Seven keys to merchandising Amway products :
One must have to develop his skills to help his customers purchase Amway
products and then establish long – term relationship with them by providing
excellent service.
 Product knowledge
 Finding Customers
 Approaching Customers
 Creating Merchandising
 Helping Customers to purchase
 Finalizing the purchase
 Maintaining customer relationship
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Sponsoring new distributors
The second method of expanding your business is by sponsoring other distributors

and training them to demonstrate Amway products and sponsor new distributors
themselves. As your group grows, it will purchase and sell greater amountnts of
products and increase your income accordingly.
Distributors can generate income in two ways :
1. Retail Sales Profit :
Distributors purchase product from Amway at distributor cost and them sell these
products at a higher price ( not more than printed MRP). Distributors keep this
difference which is the retail sales profit.
2. Performance incentive :
Performance incentives are based on monthly calculation of distributors receive a

performance inceptive cheque from Amway. The amount of this performance
incentive is calculated from two sets of numbers- PV and BV which are assigned
to must Away products. Distributors earn PV and BV on Products purchased from
the Amway affiliate, they may use the products themselves of sell them to
customers.
Performance incentive table
If total monthly P.V is B.V is Performance incentive

10000 400,000 21% of my B.V
7000 280,000 18%
4000 160,000 15%
2000 80,000 12%
1000 40,000 9%
500 20,000 6%
100 4000 3%
27
1. Discount :- Performance incentive percentage applied to the B.V of one’s own

purchased for the month.
2. Commission : Difference between one’s own performance incentive and the

incentive percentage of any of his distributor multiplied by the BV of his business
group.
P.V ( Point Value )
It is the unit amount assigned to each product. It is an effort index which puts
emphasis on the units sold and the selling price. Each month PV is totaled in order
to determined the performance incentive bracket. These bracket range from 3% to
21%.
B.V. ( Bonus Volume)
It is monetary figure assigned to each product. In order to calculate the

performance incentive, the percentage amount determined by total PV applied to
the total BV for for the month. The ratio of PV to BV in India IPV & 40BV.
Distributors income plan

i. Retail Profits
ii. Commission Payments
iii. Discounts.
i. Retail profits ii. Commission payment
MRP-DAP % of Group PV
iii. Discounts
% of own P.V
MRP: Maximum Retail Price
DAP: Distributor Acquisition price
PV: Point value
28
BV: Business Volume

DAP : Sales Tax + Business Volume
BV ( Business Volume) = 40 X PV
Example
E-4111-ID car wash
DAP : Rs 175
BV : 155
PV : BV/40=3.88
inciple
CASE 1 CASE-2 CASE-3 CASE-4
50PV
50PV
50PV
50PV 50PV
50PV
50PV
50PV
50PV 50PV 50PV
50PV
50PV
50PV 50PV
50PV
50PV
50PV
50PV
Total distributors “9” You sponsor “54” 9 distributors “162” 54 distributors

=You + 9 +54 9people Sponsor 6 people Sponsor 3 people
+162 =226 each
Example
29
One’s sponsor 9 people

9 distributors sponsor 6 people each
6 distributors sponsor 3 people each
WELFARE ACTIVITIES OF AMWAY
United Nations Environment Programme Achievement Award:

 Products are Eco-friendly and Bio degradable in nature. The flavors and
fragrances used in Amway products don’t used carcinogenic ( Cancles
Causing) compounds.
 Water used for manufacture of all products is purifiled in the hitech water
treatment plant using ion exchange. ( 1n 85 tages.)
 Customer satisfaction guarantee ( money refund with in 30 days)
 Manufacturing 450 products in five segments such as personnel care home
care, home tech nutrition and wellness and cosmetics.
 More than 8000 products and services to available from 300 other
multinational companies who have tie up with Amway.
 More than 350 patents worldwide.
 500 top –level scientist are involed in quality control and research and
development.
 More than 14,000 employees worldwise.
 57 laboratories, marketing units and ware houses in 380 acres of land along
a length of 2.4 kms. At Ammway Head Quarters, Ads, Michigan.
 Total covered area in excess of 1 millionsq. Ft.
 Global turn over $7 billion. A tremendous track record of growth in this
decade in this decade in spite of golobal recession.
 Japan in this decade in spite of global recession.
 2nd largest foreign company after of Coca- cola in Japan.
30
 Japan is the Amway’s largest market.

 Rated by dun & Bradstreet as “5A+” (highest rating) Company for financial
soundness.
 One of the few debt-free corporations ever in the world.
 One of the few corporations having no public money.
Amway Opportunity Foundation
Activities Include :
 Donated a state-of-the-dental mobile dental clinic to the Rotary Club, Delhi

and Town, in 1996.
 Presented a 20 –volume Braille set of the Webster’s Dictionary in English,
to the Delhi Blind School.
 Made an endowment to the faculty of management studies (FMS) Delhi, in
1998.
 Supported the Terry Fox run, in aid of cancer, research, at Bangalore, in
19989-99
 Supported the production of audio textbooks for under graduate as well as
postgraduate students of Bangalore university.
 Donated a sum of Rs. 30 lacks. To child Relief and you (cry) towards
rehabilitation to the affected persons of the Gujurat earthquake.
 Supported the Autism week in December 2001 ( 14-21) held by Action for
Autism, a Delhi – based group.
31
CHAPTER-4
FINANCIAL ANALYSIS
Meaning of financial statement
Summary report that shows how a firm has used the funds entrusted to it by its
stockholders (shareholders) and lenders, and what is its current financial position.
The three basic financial statements are the (1) balance sheet, which shows firm's
assets, liabilities, and net worth on a stated date; (2) income statement (also called
profit & loss account), which shows how the net income of the firm is arrived at
over a stated period, and (3) cash flow statement, which shows the inflows and
outflows of cash caused by the firm's activities during a stated period. Also called
business financials
Meaning of Financial analysis:-
The process of evaluating businesses, projects, budgets and other finance-related
entities to determine their suitability for investment. Typically, financial analysis is
used to analyze whether an entity is stable, solvent, liquid, or profitable enough to
be invested in. When looking at a specific company, the financial analyst will often
focus on the income statement, balance sheet, and cash flow statement. In
addition, one key area of financial analysis involves extrapolating the company's
past performance into an estimate of the company's future performance.
32
Financial Results of Amway India for the Year ended 31st 2011
Particulars 9 month Quarter Quarter Year Year
ended 31st Ended31st Ended31st Ended31st Ended31st Oct
July 2011 Oct 2011 Oct 2010 Oct2011 2010
1. Income from 8754.6 2476.2 2167.1 11230.8 9812.5
operation
2.Other income 123.6 16.2 135.0 139.8 273.2
3.Total Expenditures
a.Staff cost 17773.5 322.1 622.1 2395.6 2395.6
b.Advertising cost 345.6 135.2 138.8 480.8 616.2
c.Other cost 2898.2 658.3 912.3 3556.5 3222.1
d.Diminution in 0.22 0.12 4.1 0.34 4.1
the value of
investments
4. Interest 254.5 31.2 28.0 285.8 273.9
5. Depreciation 409.4 102.3 120.3 551.7 533.9
6. Profit before tax 3451.28 943.18 471.4 394.46 3015.8
7. Provision for tax (NET) 1173.44 320.68 186.7 1494.12 1172.8
8.Deferred tax (NET) 162.3 45.6 13.5 116.7 89.3
9. Net profit 2440.14 576.9 271.2 3017.04 1932.30
10.Paid-up equity share 1458.3 1458.3 1458.3 1458.3 1458.3
capital (Face value of Rs
10 per share
11.Reserve Excluding ----- ---- --- --- 9139.5
revaluation reserve
12.Dividend per share( in ---- ---- --- 4.0 3.3
Rupees)
13.ESP basis & diluted 1.9 13.3
14. Aggregate of non- 466500(32) 4665600(3 5833333(40%) 4665600.(32 5833333(40%
promoters share holding: 2%) %) )
number of shares
33
CHAPTER-5
FINDINDING, SUGGESION, CONCLUSION &
BILIOGRAPHY
FINDING
To be connected to an Amway Independent Business Owner (IBO) in your
area, or to learn more about Amway’s great products or our business opportunity,
sign up as a customer or to start your own business.
Also, learn more about the Independent Business Owners Association
International (IBOAI). For over 50 years, the IBOAI has been the official
advocacy organization for IBOs. Visit www.iboai.com for more information.
If you want to take your skill-set to the next level and find free Amway
leads, you first need to believe that it is possible to become a successful Amway
marketer. The mind is a powerful thing and if you believe that you can become
successful, you will.
Before we go into discussing how you can find Amway leads, let's discuss
your mindset. To be able to get even just one lead, you first need to start to believe
in yourself. If you do not have the proper mindset, that will carry over to your
prospects and will net you little if any results.
SUGGESTIONS
 Trial packs should be used because customer must have to introduce the
product. Once customer gets idea about product he comes to know
advantages of products.
 The products should be cheap the home delivery system takes at least two
days to deliver the products so the delivery should be instant.
 There must be multiple options for purchasing the products for distributers
like online, tale and instant purchasing.
 In every city, the Amway office should be situated in such a location so that
it is in reach of all distributers.
34
CONCLUSION
Amway Corporation has succeeded for almost four decades due to its
proper, ethical and honorable addition to the return market price. It is a world
leader in direct marketing for it outstanding characteristics ranging from business
opportunities with versatile qualitative products to different kinds of rewards to its
members, It has also taken various social welfare activities for developing the
human value. In 1962 Amway became an international company when it’s first
foreign affiliate in 60, making the Amway opportunity available in more than 100
countries and six continents. He was Sanjay Jain of Balesore, who fist grought the
Amway business to Odisha.
Today direct selling is $ 85 Billion a year industry, with more than 25
million sales people worldwide “ Rich Devos” and “Jay Van Andel ” where
staunchly committed to the Direct Marketing concept from the very beginning.
Perhaps family member Nan Van Andel summed it up best when she said, “
You have to want Amway to go on, not for your self interest, but because Amway
helps people to help themselves. The Amway opportunity has been a God sent for
the millions of people to help whose lives have been touched by this business and
who have discovered some thing of value that could never found anywhere else”.
A key element to this success is the reorganization by govts. To Amway as
an ideal model of marketing system.
The main objective of Amway foundation is to develop the people to an extent,
where they will enjoy both time and monetary freedom so, when Amway
distributors succeed, Amway succeeds.
If we will observe the 44 years history of Amway, we will be of no wander that it
is “ The best business opportunity in the world”.
35
BIBLIOGRAPHY
www. amway.com
www.amwayindia.com
www.google.com
www.amway financialanalysis.com
TANKS
36

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Amway –A New Horizon In Direct Marketing

We have analyzed the information of the companies with respect to above

DIRECT MARKETING: A UNIQUE CONCEPT:

In other wards multilevel marketing allows sellers to build a business

 At the customers convenience

Customers value the advantages of:-

Benefits to the seller:-

 Requirement of huge funds for starting a business.

 Commitment of sufficient time about 12-14 hrs which is a hard task.

 Lack of expensive and knowledge.

 Hiring of space and employees

TOP FIVE REASONS OF DIRECT SELLING BY THE

BENEFITS TO THE COMPANY:-

 Easy and simple direct distribution channel.

AMWAY-THE PIONEER IN DIRECT MARKEETING :-

industry internationally. The company is also a long-standing, active number of the

Amway is committed to expanding the environment awareness of all people

Amway is more than an income opportunity or a company or products. It’s

AMWAY FOUNDER’S FUNDAMENTALS:-

 The consumer makes a purchase in the comfort of his/her home.

Needs no specialization:- The prospective distributor not needs specialist

Less money with determination:- He or she needs a nominal amount of

Success rate:- Amway distributors has emerged as successful business

Hither quality standard:- Every product satisfies Amway’s impeccable

Well proof:- All Amway products carry a tamperproof seal. Amway’s

No requirement of shopping:- The consumer and the distribution can shop

Ease of deliver: An order is delivered to the door step within 48 hours.

Ease of payment: payment in cash or cheque from home.

Ease of information: Distributors can access information first-hand.

 Any body can join irrespective of their Educational qualification, experience

 Start up cost Rs 4200 only (cost of a B?W TV or a saree)+ cost of

Amway has invested in excess of us $ 35 million (Rupees 151 crores) in

Amway opportunity foundation (AOF):-

2. 7 Days a week, 52 weeks a year, to the underprivileged in and around Delhi.

PRODUCTS AND SERVICES:-

Nutrition and Wellness

Different Types Of Provided Through Amway

SA8 : Gelzyme with natural softer

SA8 : Delicate liquid Detergent

PERSONAL CARE RANGE

Satiniqure : 20 in 1 shampoo & Conditioner

Satinique : Dandruff control conditioner

Satinique : Dandrauff control shampoo

NUTRITION & WELLVESS

Nutrilite : Protein power

Nutrilate : sibberian Ginseng withGingko Biboba

NUTRILITE : Triple Guard Echinacea

NUTRILITE : Guluconsamine IICL with Buswaellia

Quality Assurance (QA)

Amway QA personnel ensure stringent Quality checks at the contract

manufactures. Every batch of finished product is sampled using Military Standards

Sampling Technique and inspected to ensure compliance with specification and

Corporate Social Responsibility

 Enhance human resource development through opportunity and self

REWARD AND RECOGNITION

 Platinum :- A platinum has attained six qualifying months at silver producer

 Executive Diamond : An executive diamond is a qualified platinum who has

Merchandising Amway Products :

Seven keys to merchandising Amway products :

Sponsoring new distributors

The second method of expanding your business is by sponsoring other distributors

Distributors can generate income in two ways :

1. Retail Sales Profit :