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- Overview

Vision:
Help people live better lives.

Values:

Partnership Integrity Personal Growth Achievement Personal responsibility Free Enterprise

Positioned in 80 countries

3 000 000 distributers


450 (115) products in 11 brands focused on:

Health/ Nutrition Wellness/ Beauty White goods Hereby ranking No. 1 of all MLM-Companies

Worldwide sales: 9.2 billion US-$

AMWAY
How does it work??

Direct Selling
Multi Level Marketing (Pyramid scheme) Amway IBO
Immediate Gross Profit Performance Bonus Leadership Bonus

Other Growth Incentives

Network 21 & PLUS (BSM) Brand Experience Centers

Amway is the brand and Corporate trade name for Amway Corporation. All markets around the world except North America use the Amway name.

One major thing that distinguishes the brand in North America from the brand in other countries is that all transactions between IBOs, customers, and Amway North America, Inc. are conducted online.

Company officials confirmed in June 2007 that, over the subsequent 18 to 24 months, Quixtar will merge with its sister companies of Amway organizations around the globe to form under one new name Amway Global

Amway launched a brand new multiplatform, multimilliondollar advertising campaign entitled, "The Power of Positive. "The Power of Positive" campaign exemplifies who Amway Global is as a company and you are as Independent Business Owners. The first of three new television commercials broke on Monday, March 15, 2010.

Brands by Amway Global

Amway India
Amway was established in India in 1995 and commenced operation in 1998 with headquarters at New Delhi. Largest Direct Selling FMCG Company 135 offices , 55 city warehouses ,5000 cities, plant at Baddi

Amway India posted a turnover of Rs 1,790 crore last year up from Rs 1,407 crore in 2009
Amway expects to do business worth Rs 25 billion in India by 2012.

127 products in five categories, health care, home care, nutrition and wellness, cosmetics and gift catalogue.

Locally manufactured through seven third-party contract manufacturers which follow international standards

Problems faced by Amway in India:


Direct selling was seen as an intrusion into ones privacy High Distributor attrition rate & false premium image

Overlooked aspects like distributor should also know about the value of the product they were selling
Lack of proper infrastructure like networked banks, toll free phones and multi service courier companies

Huge commission to distributors which results in the increased cost of the product , thus lower sales.
Products considered as expensive

Failure of Sachets
Criminal cases in A.P. On August 6, 2011 kerala police sealed the offices of Amway at kozhikode,Kannur,Kochi etc.

Corrective measures taken


Amway used media advertising for the first time to promote its products.

Advertising enhanced corporate image which attracted people to join Amway as ABOs.
Operation Gaadi and Operation Ghar Pulling stickers on its products about usage details Set up SBUs for product focused approach Focus on market in smaller towns to offset the impact of attrition Rapidly expanded its offices Reduced the cost of entry for ABOs

Strengths

Huge product range of 450


Huge distributors network World class quality products Largest Direct Selling company 100% Customer Product Refund Policy produce faith in customers

Weakness
Amway's business practices have been the subject of controversy, the direct selling strategy is often regarded as social engineering by critics More power to IBOs gives critical structure to organization

High attrition rate of distributors


The lack of brand awareness in countries like India High cost of products and poor pricing strategies employed for different markets

Products are not readily available due to the direct selling strategy

Opportunities

Setup a manufacturing plant in all countries leads to better platform for company Population of India gives better opportunity to improve the ever growing network of the company Leverage upon its employment creation activity Customer services are one area of improvement and use of internet to improve the services of the company

Threats
Established FMCGs like P&G, HUL which have large bases in India and competitors like Modicare which follow similar strategy and offer products much cheaper to Amway Distinguishing itself from bogus pyramid companies and money circulating enterprises Advent of Online shopping sites which are convenient and offer better deals and services