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EXECUTIVE SUMMARY http://www.scribd.

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Amway is a unique company. It is defined by the fundamentalphilosophy of helping people help themselves. Amway has helped millions of people run their own independent business around the world.Today, Amway continues to grow by offering new products and businessopportunities to people from all cultures and walks of life. Whether theyare employees, distributors, or citizens in the community, Amwaytouches their lives for better.India with its rich reservoir of will, talent and enterprise is perhaps the most fertile ground for the Amway Corporation. In short it has made substantial value addition to Indias social economic life. The focus of this project is based on studying a single organization i.e.The Amway Corporation. This research has been conducted to study themarketing strategy adopted by Amway in the Indian market. An attempt has been made to study the companys perspective in the new market and analyse on how the company plans its expansion in India.I have substantiated my research by conducting interviews to gain moreinsight about the corporation. The data has been analysed on the basis of 2 surveys which were conducted by me.Survey 1 was conducted through direct, phone and online interviews.Survey 2 was conducted by gathering information through structuredquestionnaire and the interpretation for the same has been provided.I have finally concluded my research by providing a summarized conclusionand also suggested recommendations on the basis of the marketing mix. INTRODUCTION Direct Selling is a remarkable business model, which brings the market tothe customer and offers a unique business opportunity to anyone eager toadopt the spirit of enterprise. Direct Selling can best be described as theselling of products and services directly to consumers in a face-tofacemanner, through demonstration of usage, by an independent

directsalesperson. Direct Selling benefits consumer because it sells high qualityproducts at the consumer's convenience, often at his/her home orworkplace. Customers value the advantages of convenience, personalisedattention, demonstration of usage, and a wide choice of products backedby Customer Satisfaction Guarantee.One of the most tangible impacts of Direct Selling in its new advent hasbeen the fact that it has touched the average man and women in a mannernever experienced before. Amway India Corporation is the country'sleading Direct Selling Company. It is perhaps the best example of thecontribution Direct Selling is making to India. In a little over two years of commercial launch Amway India has emerged as the country's largestDirect Selling Company. It closed its financial year with a turnover closeto Rs. 250 crores (the Amway Financial year runs from Sept. to Aug.). Itwill reach its target of Rs. 1000 crore turnover much before its declaredtarget of the year 2004.Because it focuses upon direct selling, Amway is different from moretraditionaldistribution channels.Its Independent Business Owners owntheir own business, with theflexibilityto deal directly with their ownclients and to build up personal relationships. These Independen Business Owners also have the ability to deliver Amway's products totheir customers' homes. Independent Business Owners sell to people theyknow or meet. The personal contact and care they provide is an importantelement in direct selling. They are also self-employed and can introduceothers to the business to form their own sales group of IndependentBusiness Owners.

Thechannel of distributiondescribes the stages of ownership that takeplace as a product moves from a manufacturer to a consumer.

Theincreasing use of the Internet by consumers has created a real potentialfor developing different types of business models and for new approachesto reaching users directly and quickly in their homes.This report examines in detail the marketing strategy of the leadingglobal direct marketing major, Amway in India. In the initial stages of thereport I have focu sed on Amways current position in the Indian market. As the research progresses I have tried to analyse the companiesmarketing objective for India and how they set out to achieve them.This report also provides a brief introduction to the concept of multilevelmarketing and tries to make the reader understand the difference betweenmultilevel marketing and the traditional distribution setup in the FMCG sector, so as to give an idea as to how the system is being utilized bycompanies like Amway. MLM -a definition Multilevel marketing allows sellers to build a business through their ownsales efforts and by inviting others to become sellers. Remuneration isbased on a seller's personal sales AND on the combined sales of thosepeople they have sponsored, trained and motivated. The story of Amwayis intended to drive home the point of a company being alert enough to modify its globally accepted practices to suit the local markets needs. This report has been made keeping in mind the benefits which can bederived from my research. Benefits to customers This report will be beneficial for consumers who prefer the marketinggoods or services directly to them: at their own convenience often inhis/her home either on a one-to-one basis, or in the context of a salesparty. Through this the customers will get a better idea about the companys product offerings and value the advantages of: convenience, personalised attention, and a good selection of quality products availableat their door steps. Benefits to sellers

7 boss, and working their own hours, like the supplemental family incomeor making extra money for themselves. It can be beneficial from thesellers point of view as it may give them the idea of exactly how they cango about creating their own business and benefit from the Amways unique business opportunity. Benefits to companies In this report I have deeply analysed the marketing strategy for Amwaythrough personal interviews by many IBOs and Amway customers whohave helped in adding valuable data to this project which can be usefulfor the company. The suggested recommendations can be considered bythe corporation for further expansion and increasing market share. 8 AMWAY PROFILECOMPANY HISTORY Amway began in 1959 with two young entrepreneurs in the UnitedStates, Rich DeVos and Jay Van Andel. Their concept for an innovativebusiness opportunity, centered around person-to-person marketing,established itself as a leader among one of today's fastestgrowingindustries.Today, more than 3.6 million independent business owners distributeAmway products in more than 80 countries and territories. Amway is partof the Alticor family of companies whose global sales totalled $4.5billion in its most recent fiscal year. 1950s - A Friendship Forms Rich DeVos and Jay Van Andel's friendship actually began with abusiness proposition, when Rich struck a deal with Jay for a ride toschool 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 t 960s - The Early Years

Amway quickly outgrew its original facilities in the basements of RichDeVos's and Jay Van Andel's homes. In its first full year of business,Amway's sales were more than half a million dolla 1970s - The Decade of Growth As vowed by Jay Van Andel the night of the 1969 disaster, Amwayrebuilt the aerosol plant and went on. The ' 70s began with sales of morethan $100 million at estimated retail, and kept going strong. After alengthy investigation, the FTC verified that Amway is a genuine businessopportunity and not a "pyramid." 1980s - The Billion-Dollar Decade The ' 80s will be remembered for the first Billion Dollar Year atestimated retail in 1980. Building expansion at Amway WorldHeadquarters continued at breakneck speed as Amway scrambled to keeppace with demand, opening its new cosmetics plant in Ada. 1990s - The Second Generation As carefully planned by Rich and Jay, the second generation Van Andeland DeVos families took the helm during the ' 90s. Steve Van Andel andDick DeVos 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. 2000s - The New Millennium In 2000, Amway Corporation became a wholly-owned subsidiary of Alticor, Inc. Chairman Steve Van Andel and President Doug DeVosshare the Office of the Chief Executive. Amway - The Current Scenario Amway is the largest multi-level marketing(MLM) organization in theworld. It is a multi-billion dollar company based on the sale of a variety of produ cts. Amways philosophy is defined by commitments, trusts, enduring relationships, and the ideal of perfection above profit. From ahumble beginning in 1959, using an old gas station, Amway thebrainchild of Co founders Rich DeVos and Jay Van Andel, is now one of the largest and most successful direct sales companies. Amway

has alsoworked to provide better opportunities for people through active supportof various community projects. Corporate Profile: Between then and now, Amway corporation has grown into a US Multibillion dollar company managed by 12,000 employees.It operates across 80 countries and territories in Asia, Africa, Europe andthe Americas with a turnover of US $5.7 billion.Amway is the wholly owned subsidiary of Alticor Inc.It has a sales force of over 3.3 million distributors.The company Manufactures 450 products of which 350 are patented.The company is also a long standing, active member of the WorldFederation of Direct Selling Association (WFDSA).Over 500 R & D scientists and professionals ensure the exceptionalquality of its products across five product lines:Home CarePersonal careHome TechCosmeticsNutrition and Wellness AMWAY INDIA Amway India is a wholly owned subsidiary of Amway Corporation, Ada,Michigan, USA. Amway Corporation is a 42 year old company, and isamong the largest Direct Selling companies in the world.It wasestablished in 1995. It commenced commercial operations in May 5 th ,1998 . In the brief period since launch, it has emerged as the Countrys largest Direct Selling Company. Facts: Over 200,000 entrepreneurs have adopted the Amway businessopportunity; and are actively involved in building their independentAmway business.Amway has invested US $ 35 million in India. Of this, US $6 Million isin the form of Direct Foreign Investment. (IDSA)US $4 million has been spent in transferring state-of-the-art technology.The company Amway India was launched with 5 offices (New Delhi,Bangalore, Mumbai, Chennai, Kolkatta) which serviced 150 locations.At present, in addition to 32 offices in all metros and major cities,Amway India services over 379 cities and towns in the country.Turnover of Rs 100 cr. and Rs. 250 cr. in the first and second years of operation respectively. Plans to reach Rs. 1000 turnover

by the year2004.In India Amway Corporation comprises of 72% women, 24% Couples,and 4% men. (Source IDSA Amway India is the founder member of the Indian Direct SellingAssociation (IDSA)Direct Selling requires expertise and special skills. Using the benefit of Amway's leadership status in the global Direct Selling industry, AmwayIndia has in the past 12 months, conducted over 8000 training sessionswith an attendance of approximately 350,000 Distributors.Amway India was honoured by the AICB Millennium OutstandingService Award, 2000 by the All India Confederation of the Blind inrecognition of its sterling contribution to the cause of India's blind.The Karnataka Welfare Association awarded Amway India with the`Rising Business Star of the Millennium' during a ceremony held atBangalore during October, 2000. 12 Amway India is the founder member of the Indian Direct SellingAssociation (IDSA)Direct Selling requires expertise and special skills. Using the benefit of Amway's leadership status in the global Direct Selling industry, AmwayIndia has in the past 12 months, conducted over 8000 training sessionswith an attendance of approximately 350,000 Distributors.Amway India was honoured by the AICB Millennium OutstandingService Award, 2000 by the All India Confederation of the Blind inrecognition of its sterling contribution to the cause of India's blind.The Karnataka Welfare Association awarded Amway India with the`Rising Business Star of the Millennium' during a ceremony held atBangalore during October, 2000.In the short period since its advent in the country, Amway has made several contributions to Indias socio economic milieu. It as either introduced unprecedented benefits, or upgraded existing facilities tointernational standards. Corporate Responsibility

Through its presence in India, Amway continues to enhance humanresource development using its experience in entrepreneurial opportunityand self employment. Amway has conducted several seminars on"Entrepreneurial Development and Direct Selling" in concert with theConfederation of Indian Industries (CII) and the All India ManagementAssociation (AIMA) to educate popular opinion on the benefits of organized direct selling. HOW IT WORKS Amway is different from the more traditional distribution channels in thatthe business has developed through direct selling. In Amway, one isrecruited as an "independent" distributor of Amway products by buying acouple of hundred dollars worth of the products from the one whorecruits you, known as your "up-line." Every distributor in turn tries torecruit more distributors. Income is generated by sales of products by thedistributor plus "bonuses" from sales of his or her recruits and theirrecruit-descendents.How do you begin? First, you are sponsored by another Amwaydistributor and you obtain the Amway Business Kit . The Business Kitcontains basic AMWAY products and literature for your use and forsharing with others. You begin by developing both customers anddistributors. Customers or clients are the people who buy the AMWAY productsfrom you but who aren't Amway distributors. One of your best sourcesfor building a customer base is a group of people you already know.These acquaintances try AMWAY products and become your customersas they use and re-order various AMWAY items. However, I have foundthat people everywhere need high-quality,Satisfaction Guaranteedproducts which they believe Amway is able to provide. Independent Business Owners or Distributors are people who haveevaluated the Amway business opportunity and elected to join th

business. IBOs deal directly with Clients, build up personal relationshipsand deliver direct to Clients' homes. They are highly motivated, selling topeople they know or meet. The personal contact and care that theyprovide is an important element in direct selling. IBOs are self-employedand can introduce others to the business, and so form their own salesnetwork. The most successful Amway businesses enjoy a balance of merchandising AMWAY products and sponsoring distributors. Growth inyour business comes from sharing the Amway business opportunity withothers and helping them decide if it's right for them. This is called sponsoring . Amway distributors who sponsor others generally havehigher average sales volumes than those who don't sponsor.Your " Group " is the team of distributors you've sponsored. Many you'vesponsored personally, but others were sponsored by those you personallysponsored. You train and motivate your group and, as a result, you earnextra income when they earn income. As you continue to grow yourbusiness and they continue to grow theirs, you both can benefit.Like any other business, your Amway distributorship needs frequentinput and activity to grow. However, whatever your goals are, you control how quickly or how slowly you build your business. After all, it's your independent Amway business.Over time, a distributorship can grow considerably. The more distributorsin your group who become successful in the Amway business, thestronger your business will become, and the higher the pin levels you canqualify for. We call them " pin levels " because you earn incentive pins athe various achievement levels of the business. Each pin level features aset of incentives and rewards for being successful.

Income Incentive and more The Amway Opportunity offers distributors many benefits. Some arefinancial, others are intangibles, such as peer recognition, pride inachievement, the joy of helping others, working with family, and theesteem of owning your own business Income potential As an Amway distributor, you can earn income many different ways. Forinstance, in the U.S. and Canada, you can earn income in at least 10different ways. They include retail profit (the difference betweenDistributor Cost and the Retail Price) and nine different bonusesrewarding various levels of accomplishment. Special leadership programme As you qualify at various levels of achievement, you may be eligible toattend various Amway leadership programs:Annual Business MeetingsIn countries around the world, company - paid invitations are extended toAmway leaders to meet in a business-building atmosphere.Variety of Special ProgramsWhen your business qualifies at a specific distributor level, a specialinvitation occurs. Imagine your special day at an Amway facility, yourown success story featured in our distributor magazine, and your name 16 and picture added to the Distributor Hall of Fame in Amway's WorldHeadquarters. AMWAYS MARKETING OBJECTIVE The objective involves matching consumer needs with the product. The AMWAY SALES AND MARKETING PLAN Amway practices direct selling which is a method of selling goodsdirectly to the consumer by an independent Distributor. A Distributor canthen introduce further Distributors and generate income from retailprofits supplemented by bonus payments based upon the total sales of thegroup built by a Distributor'.Income is generated by a distributor through:The retailing of

goods to consumers. Retail margins (mark-ups) on thebasic wholesale price represent income to the selling distributor.Additional performance and leadership bonuses, paid on the volume of personal business of the distributor and the business volume of thedistributors he has introduced to the business Various levels of leadership bonuses, dependent upon the overall size andshape of the business, paid on achieving different levels of businessperformance.This plan, therefore, rests upon the twin foundations of retailing andsponsoring. Retailing - the selling of goods to consumers on which retail margins areearned and performance bonuses gained. Sponsoring - the introduction of other individuals to establish anddevelop their own independent Amway distributorships.Retailing enables distributors to provide immediate financial incentiverewards. Sponsoring enables distributors to replicate the base with otherpeople, thus allowing the organization to grow.Direct selling involves sales people showing and demonstrating productsto obtain orders. As with all direct selling activities, the process involvestwo-way communication and this can be time-consuming. Businesssuccess and the resulting financial results are a direct consequence of effort, commitment and personal group motivation. Personal contactbetween distributors at one-to-one or group meetings provides theopportunity for individuals to discuss strategies, difficulties, levels of involvement and plans for the future. The income objectives andindividual targets may be determined by each distributor based uponwhat he or she wants to earn. Distributors who develop direct sellingbusinesses may come from widely different backgrounds, with vastlydifferent levels of experience and knowledge - the common factor to theirsuccess is the desire to achieve effort and careful planning. Research and development uses advances inscience and technology to enhance products, while market research iscarried out to examine changing consumer tastes and fashions. The key tosuccessful marketing is to clearly identify at which market

segment theproduct should be aimed, find out precisely what consumers in this targetgroup want and then plan the marketing strategy accordingly. The focusof brand image and positioning of the product within the marketplace areof paramount importance.All organisations face an external business environment that constantlychanges. Changes in the business environment create both opportunitiesand threats to an organisation's strategic development, and theorganisation cannot risk remaining static. It must monitor its environmentcontinually in order to:build the businessdevelop strategic capabilities that move the organisation forwardImprove the ways in which it creates products and develops new andexisting markets with a view to offering its customers better service.Amway is an interesting example of a company that reviews its strategiccapabilities and uses this review to develop its products and markets.More than 450 products carry the Amway name in the areas of nutrition, health, beauty and home. Amway also has a range of products thatinclude other well known branded goods. The company also offers avariety of third party services. Amways Market Penetration Strategy Going for market penetration has involved Amway in making the most of current products and competences by 'stretching' those new markets. Onegreat benefit of direct selling is that it is an immediate channel to themarketplace that offers customers a good service, while at the same timeproviding business opportunities for individuals.Special incentives enable IBOs and end consumers to take advantage of particular offers at certain times of the year and these incentives havealso helped to increase market penetration. There are also special eventssuch as Leadership Training Seminars. These enable IBOs to spend timewith others involved in the business and to learn about 'best practice'from each other, whilst also sharing ideas. Target Markets and Market SegmentationSegmentation: The Amway business opportunity is open to everyone,regardless of sex, race, age, religion, or political or other personal beliefs.The Amway

business appeals to women, men, couples, and families fromall backgrounds.Amway also offers a range of Fast Moving Consumer Goods through itsfive main product categories i.e Personal careCosmeticsNutritionWellnessBut initially Amway was launched in India with only 6 products most of which were home and personal care products. Target Audience : Although it was recognised by Amway that groupssuch as children, men and teenagers are likely to become targets in the future, the Amways range of products was aimed mainly at adultfemales between 23 and 44 years of age. These products are daily use items catering mainly to the household sector. Through Amways extensive market research it was proved that that women are often looking for new products and technologies that willprovide a more satisfying product experience. Thus Amway hassegmented its market on the basis of typical consumer from this targetgroup:is probably a professional womanis very product consciouswants professional, quality productsRegular user of home care and beauty productsrelies on recommendations from friends when making any purchasedecisionsMakes buying decisions based on clinical evidence Positioning: The focus of brand image and positioning of the product ina new market place are of paramount importance. Thus, it was importantfor Amway to create a strong brand image for the total product range forentering the Indian market. The image created would reflect a great dealabout the product and its consumers. One of the most importantchallenges for Amway was to develop an appropriate packaging for all itsproducts to appeal to the Indian consumer. Packaging can be crucial to the success of a new product and Amwaywent to great lengths to ensure that the packaging and design appealed tothe target audience.The colours are light, elegant, soft and culturally appealing. Soft, metallicwhite gives a sense of clarity, while

the blue caps represent water andblue sky. The silver metallic touches add luxury and spice. All thecolours are designed to suggest cleanliness. This design was used tocreate a brand image. The following objectives for the brand were set:to increase distributor profitability and productivity by providing a newand exciting business opportunityto optimise consumer convenience and value through enhanced productdifferentiation by providing them with an exclusive and revolutionaryrange of products. Amways products are positioned as : At Amway, quality means innovation in formulas and technology. A commitment to excellence backed by the resources to do the job right andconfident that every product will meet your satisfaction --guaranteed . Having decided on the target audience, we turn our attention to the Marketing Mix:Product: Considering the overwhelming success its receiving in theIndian market, Amway has introduced more products in each category. Itis also planning to expand the product category by introducing Hometech and food items in India. Amway has also adapted itself to the localmarket by introducing the sachets and small bottle packs which can beused by people in small quantities and are very economical.With the exception of the Nutrition & Wellness and Cosmetics range, allAmway India products/bottles are manufactured through 3 third partycontract manufacturers using world class technology and processes. Theproducts match Amway's global quality standards. They carry a tamper-proof seal and a 'Customer Refund Policy'. If not completely satisfiedwith the product, the consumer can return it for a refund. Amwayproducts are environment friendly, and are not tested on animals. Amwayencourages the return of its used product bottles for re-cycling and toprevent their misuse.At present, Amway India's product portfolio comprises of::Ten products in the Personal Care category,Eleven in the Home Care category andSix in the Nutrition & Wellness category.Seven in the cosmetics categoryOne product in the Agricultural Category

The other products are two soft toys.Amway Sales aid.Amway's product range demonstrates its adaptability to the market basedon a close, firsthand understanding of the Indian consumer's nuances. Anaggressive product launch plan introduces new products every fewmonths. In the coming months, Amway will further expand its productportfolio through the launch of several new core line products. Amwayhad initially started with 6 products for the Indian market in 1998. Atpresent it has about 4550 products in its various product categorieswhich is about 11% of its total product category. Pricing: Amway products are price competitive and overall a goodvalue for money. While some of its products are more expensive thantheir counterparts, others are less expensive and most are competitivelypriced. Products that are more expensive usually have greater featuresand benefits over competitive goods. Many AMWAY products are highlyconcentrated, meaning a single purchase lasts longer. On a costper-usebasis, these products are priced very competitively from their localbrands. The consumer is the ultimate judge of price and value, and Amways sales success over the years speaks volumes about its product value and customer satisfaction. Amways pricing strategy remains the same but with the introduction of sachets and small bottles, people cannow enjoy its products at an economical rate. Place: Amway India enterprise is redefining its structure by overhaulingits supply chain. The network marketing company is looking at reducingthe lead time by moving closer to the point of consumption, improving its information system and reaching out to homes through a better deliverysystem. It is expanding its presence across the country and adding newproducts to its portfolio. The company has done away with its centralwarehouse at Nagpur and opened four regional ware houses inBangalore, Kolkatta, Delhi and Mumbai that are serviced directly fromthe manufacturing units. The company today has 36 offices serving over385 locations across the country. It plans to add 14 more offices to itsnetwork this year taking the total number of offices to 50 which

willserve over 450 locations. These new offices will be opened at strategiclocations spread across the country and governed by an unwritten rule of Be present where Amway distributors are. The Company Amway India launched with 5 offices (New Delhi,Mumbai, Bangalore, Chennai, Calcutta) and a Central Warehouse(Nagpur), which serviced 150 locations. At present Amway India has 32offices, and a reach to 352 locations.Promotion: Amway promotes its products through its IndependentBusiness Owners. It has a heavy accent on training. Every Amwaydistributor enjoys free, unlimited access to training sessions. Thesetraining sessions impart product knowledge, comprise motivationsessions, and seek to optimise the business potential of participants.Recently Amway has also started advertising about its products invarious Newspapers and Magazines to promote its products and reach outto their target markets. Amway has come up with a vast promotionalstrategy to reach out to its customers and other potential buyers. Amway's Promotion channels There are five different promotion channels 25 Corporate Events Corporate events include specially arranged functions, such as productfairs, conferences and seminars, which distributors at different levels areinvited to attend. Face-to-face communication at a range of events helpsAmway and its distributors to get to know each other. They also providean opportunity for distributors to get to know each other and are usefulfor relaying messages, giving advice and generating personal discussion.Events include: Pace Setter - a reward incentive to help new and existing distributorsreach the 6bonus level within three consecutive calendar months.It also encourages a balanced business, with equal amounts of retailingand sponsoring - essential for long-term success and profitability. Direct Distributor Seminar

- allows newly qualified Direct Distributorsto meet the Amway Management Team, tour the UK Headquarters,attend key informative, motivational business sessions and go to the NewDirect Distributor Gala Dinner. Leadership Seminar - where distributor leaders who have achieved atarget criteria set by Amway, travel for a seven day trip withcompliments of Amway to some of the world's finest beach locations and 26 hotels where they attend a number of business sessions and exchangethoughts and ideas with corporate staff. Launch into '03 - a major annual launch of new products and servicespresented by a road show of event. Training Training builds the skills and knowledge of distributors and thereforeimproves competence levels. For Amway, the starting point of thetraining process is to identify the skills and knowledge necessary fordistributors to carry out their role. Acquiring product knowledge is animportant aspect of training and preparation. As Amway relies upon thepersonal service of its distributors and the quality of its products, it isessential that distributors are not just shown how to use products but alsohow to merchandise them to their best advantage.Training may involve either Corporate or Group (Line of Sponsorship)Training on specific product brands. Distributor input into these sessionsprovides informative help for the management of independent businesses.Once a distributor has achieved an advanced knowledge of a specificbrand, they can then receive the training and tools required via a 'Train aTrainer' session whereby they will be taught how to train their owngroup, therefore maximising their expertise Lines of sponsorship Amway is essentially a people-based business - without people, thebusiness cannot expand. The business of each distributor grows via newcustomers and through the sponsorship of new

distributors.Established distributors are involved in helping newly sponsoredassociates to merchandise Amway products. Distributor groups meet todiscuss company procedures and their goals. The groups also discuss newproduct launches and promotions, the administration of their businessesand support new and existing distributors. These lines of sponsorshipprovide constant, face-to-face support from professional associates. Publications Written communication is useful as a permanent source of reference.Amway uses a range of written communications to promote its ideas andproducts across its target audience. These include: Amagram - This magazine is mailed directly to all Amway distributorsin the India. Amagram is used to communicate information about newproducts, promotions, community news, distributor events andrecognitions as well as news of other affiliates throughout the Amwayworld. Amagram shows how distributors can make more out of theirbusiness. It is also used to help distributors understand the philosophy bywhich the business operates and the legislation regulating the DirectSelling Industry. Special Literature - Occasionally, Amway designs a brochure or leafletwhich is used to address a particular change or launch, e.g. new car careproduct range B. Amways Market Expansion Strategy One method used by Amway involves expanding the ways in whichindividuals can be involved with the Amway business. Amway hasdeveloped a structure known as the IMC model. This increases thenumber of ways through which people can become involved in theAmway business. Each of the letters IMC stands for a different type of involvement.I - Independent Business Owners (IBOs)M - MembersC - Clients (customers) of the IBOs.Members are allowed to purchase Amway products at a price equivalentto that paid by IBOs, but do not participate in the Amway Sales andMarketing Plan. They are a new type of 'customer' who deals directlywith Amway. Target Markets and Market SegmentationSegmentation:Geographic:

Amway is now trying to reach people by setting offices even in the remote areas of the country. Amways distributors are now spread all over India even across the rural areas. Demographic: Age : Amway products are meant for people of all age groups. It includesa wide variety from soft toys meant for children to health and nutritionproducts for the entire family. But to join the Amway as an IndependentBusiness Owner a person should be above 18 years of age. Income : Amway business opportunity is more popular among the middleincome group since it gives them a chance to increase their income levelby using its products and also making others use them as well. Gender: Majority of Amway products cater to the needs of Women Eg:cosmetics, home care and personal care. But Amway is introducing manynew products in the Indian market the choices are increasing for bothmen and women. Family Life cycle: Majority of people joining Amway are young womenand newly married couples. Occupation: Most of the people who are engaged in the Amwaybusiness are either professionals or small businessmen. PsychographicPersonality: It appeals to people who are ambitious and want to earnhigh incomes with in a short span of time. Amway through it uniquebusiness opportunity gives them a chance to earn enough income andshow them the path to realise their dreams. Social Class: Majority of Amway people comprise of working class,middle class, Upper-Middle class. BehavioralBenefits: The consumers enjoy the benefit of using a high qualityproduct which is available to them at their door steps.

Loyalty status : People working with Amway have a very high loyaltystatus. They slowly start replacing Amway products with other localproducts and can continue to use these products for life. Attitude towards product: Amway people are usually very enthusiasticand optimistic in everything they do. Target Audience: Amways products appeal to a large number of buyers all over India.It is targeting people who believe in using high quality productswhich are conveniently available to them. Amway business opportunity is attracting the middle income groupto earn extra income. Amways target audience include a lot of professionals and young couples who are very ambitious to earn high level of income in ashort span of time. Amways products being good in quality are also very much preferred by the upper class segment who can easily afford the pricing but they dont want to get involved with the business opportunity. They are mostly associated with Amway as theircustomer. 31 Target groupMen Professionals and small business owners Age - 23 - 50 years Income Status Working class, Middle income, upper middle income

Women Professional and housewife Age 20 50 years 32 RESEARCH METHODOLOGYOBJECTIVES Primary Objective : The main objective is to carry out an in-depth study of Amways overall marketing strategies in India. In order to achieve this primary objective, I have focused my research in three main segments:Where the Company stands at present.Where do they plan to go with their objectives for the Indian Market?How do they plan to achieve the set targets?This report is appropriate for understanding the various concepts used ininternational marketing. It is a complete information guide with relevantinformation taken from reliable sources, questionnaire and interviewswith people who have achieved success through this organisation methodology The Methodology adopted was combination of: Primary Data Collection: Direct Interview with people who are associated with the Amwaycorporation in IndiaQuestionnaire filled by a selected group of people. Secondary Data Collection:

The data has also been collectedfrom:BooksMagazinesEditorialsInternet Nottingham e-LibraryAmway Business PlannerAmway Opportunity Brochure etc. Sampling Plan: I have tried to gather data on the basis of both theinterview and the questionnaire. Survey - 1 had been conducted by asking the people to fill in thequestionnaire and express their views about the company. Survey 2 had been conducted in order to get some valuable datawhich has been collected through direct, telephone and online nterviews with people associated with Amway to get a betteri nsight of Amways operations in India. Survey -1 Sample Design: Questionnaire methodSample size: 100 respondentsSample Unit: IBOs, Customers and othersSegment RespondentsWomen 55Men 36 * Others 9Total 100 *Others include elderly people and children . Survey -2 Sample Design Interview methodSample size 7Sample Unit IBOs and people working in Amway India Corp.Segment RespondentsIBOs 6Amway India employee 1My project involv

es the study of Amways marketing strategies in India. I had planned my work on the project along the following lines: Data CollectionData AnalysisData CompilationThe preparation and presentation of the report.My first step in data collection involved meeting my guide for having ageneral understanding of what my product should be like and then somespecific understanding of the company.After deciding upon the broad frame work of my project, I proceeded ona search for secondary sources of data. After analysing the data Iprepared, I proceeded towards the primary sources in which direct, phoneand online interview were conducted so as to substantiate my researchwith more factsData CollectionData AnalysisData CompilationThe preparation and presentation of the report.My first step in data collection involved meeting my guide for having ageneral understanding of what my product should be like and then somespecific understanding of the company.After deciding upon the broad frame work of my project, I proceeded ona search for secondary sources of data. After analysing the data Iprepared, I proceeded towards the primary sources in which direct, phoneand online interview were conducted so as to substantiate my researchwith more factsLIMITATIONS OF THE PROJECT The company or the IBOs we re hesitant to give time and goodinformation to students, so information required for the primaryresearch which is a basic need of this project was not easily availablein required quality and quantity.I have conducted this type of an elaborate and analytical project forthe first time so information might not be utilized adequately.Time constraint QUESTIONNAIRE ANALYSISQ1. Are you an:Independent Business OwnerCustomer of Amway productsNone of the above.

55%20%25%0%10%20%30%40%50%60%Independent BusinessOwnerCustomer of AmwayproductsNone of the above.

38 Q2. What is your income level: (per Month)Below Rs.10, 000Rs 10,000- Rs 20,000Rs 20,000- Rs 30,000Rs 30,000- Rs 40,000Rs 40,000- Rs 50,000Rs 50,000 and above. 5%10%12%18%25%30%0%5%10%15%20%25%30%35%Belo wRs.10, 00010,000-20,00020,000-30,00030,000-40,00040,00050,00050,000 andabove

39 Q.3 How do you feel are the Amway products priced:Too expensiveExpensiveEconomicalCheapPoora) 30%20%35%7%3%0%5%10%15%20%25%30%35%40%TooEx pensiveE x p e n s i v e E c o n o m i c a l C h e a p P o o r b) 49%51%YesNo

40 Q.4 Do you think they are fairly priced as compared to other similarproducts available in the retail stores? Yes / No.

35%40%15%0 % 0 % 0%5%1 0%15%20%25%30%35%40%45%E x c e l l e n t G o o d A v e r a g e B a d P o o r Q.5 ) Are these products easily accessible? Yes/No 40%60%YesNo

41

Q.6 What is it that attracts you more towards Amway? Givereasons to support your answerRetailingSponsoring 50%50%Retailing Sponsoring

42 Q.7 How did you learn about Amway?Independent Business ownerMeetings/EventsNewspaperPeersInternetOthers, Please specify________ 55%5 % 5 % 1 0 % 1 % 0%0%10%20%30%40%50%60%

I n d e p e n d e n t B u s i n e s s o w n e r M e e t i n g s / E v e n t s N e w s p a p e r P e e r s I n t e r n e t O t Q.8 How do you rate the presence of Amway in the market?Very strongStrongModerateWeak 15%12%50%13%10%0%10%20%30%40%50%60%V e r y s t r o n g S t r o n g M o d e r a t e W e a k L o w

44 Q.9 Rate the appeal of Amways advertisement? Very muchModeratePoor 25%50%25%0%10%20%30%40%50%60%V e r y u c h M o d e r a t e N o t s o u c h Q. 10 Do you think the products of Amway are environmentfriendly?YesNoMaybe 60%15%35%0%10%20%30%40%50%60%70%Y e s N o M a y b e

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46 CONCLUSION & RECOMMENDATIONPositive side to Amway The only positive side to Amway is the chance to make money.It is the chance to get oneself involved in a trade as a side business,especially if one is trying to recover from a failed (or failing business) orone has lost one's job. To the extent that a few people will surely makemoney, the system works.Amway has also helped solve the problem of unemployment in thecountry and given a hope to earn high incomes through their independentbusiness to millions of people all over India.It is involved in a lot of community services. Amway feels that it is theirresponsibility to serve the community in which they live. ThroughAmway Motivational Organisations (AMOs) it has try reach out to a lotof handicap people and provided them with free services at any time. It isalso involved in helping the blind by providing them with propereducation. Amway is also actively involved various environmentalprojects such as planting more trees etc.Amway offers a wide range of good quality products which are easilyavailable to people at their door steps. Underside side of AmwayWhy Amway Will Make Money Even I f You Dont

An interesting calculation: If 1 million people sign up, Amway willreceive Rs. 4400 million (Rs. 440 crores or US$ 206.80 million) inupfront cash from this cash rich country.

47 They will have earned all this money without having sold a singleone of their very expensive products but just by sponsoring peopleto this business. How This Is Done At The Expense Of The Middle Class While doing this research, I have found that the only way tosucceed in the business is to be able to sign up vast numbers of people and make them use the products for themselves.The other way is to run around peddling soap from door to doorafter having bought it from Amway at a discount.This is exactly where the Amway business strategy comes intoplay. It makes people hand over their savings to Amway to buythem a dream.If all Amway did was to manufacture and sell their productsthrough door-to-door salespeople there would be no problem. Thechoice of purchase is left up to the individual.By asking for deposits from buyers in the beginning and againevery year as a renewal fee it looks like Amway seeks to build acaptive consumer base. Once someone has paid Rs. 4,400 toAmway, he is naturally disinclined to buy Nivea hand creaminstead of Amway Gly-Honey hand lotion. The element of personal choice is thus prejudiced.By involving their "distributors" in a complicated system of down-the-line commissions

they are given the impression that there is alimitless market for Amway product The truth is that the market share for Amway is as limited as themarket share for any other product. Traditional retail trade is notabout to collapse and because of the expensive price structure; thegrowth of that market is restricted to the very wealthy.Calling this "an opportunity to use world class products" is a bitlike calling the purchase of a Mercedes Benz for Rs. 25 lakhs an"opportunity", when an efficient Maruti 800 for one-tenth of thatprice will do nicely.With all these constraints, telling people of profit mechanisms tiedinto several thousand people buying Rs. 1,500 worth of Amwaysoaps every month seems laughable in a country where entirefamilies lead their lives on less money RECOMMENDATIONSAfter conducting an indepth analysis of Amways various ma rketingstrategies in India, I would like to suggest a few recommendationsProduct: To prolong the life-cycle of a brand or product range, anorganization must inject new life into the growth period throughreadjusting the ingredients of the marketing mix. To ensure the Amwayrange of products would stay in line with evolving market trends andtastes, Amway should set about upgrading its brand with the additionalobjective of increasing its global competitiveness.They should introduce more products which are made in India. Eg:Persona Powder. This product will also give the IBOs and customers thecost advantage. Price: As a result of my research I have discovered that all the Amwayproducts are expensively priced. If they are trying to target the middleincome group they must reconsider their price structure once again andmake it a bit economical for the Indian audience. This way may be theycan enjoy

a larger market share, as it could be one of the reasons whysome people may be hesitant to join the Amway business. Place: There is still a long way to go for Amway to have its presence allover India. But keeping in mind the overwhelming response it is gettingfrom the rural segment of the country to join the Amway business theyshould focus on the needs of these people i.e to make the productsavailable to them at their conveniences hey should also try to Manufacture their products in India, which willthen reduce the cost pressure on its customers.They should also try to set up their offices in states like Kerela, becauseKerala is a very good market for the Direct Selling industry for variousreasons; the two most important factors seen favouring the industry arethe high literacy rate and the willingness to try something different. Promotion: Sine India is advancing on the technological front, I feel itstime to Introduce the e-commerce Amway i.e. Quixtar in India. It willhelp in enhancing the Multi-level marketing to a great extent. It will alsocreate a new business experience for the Indian IBOs and will also helpin promoting their sales IBLIOGRAPYThis project work is based on the information that has been collectedfrom various sources. To mention a few, information from somewebsites and magazines facilitated the preparation of this project.Books and Secondary dataAmway Company PlannerAmway Opportunity brochuresWebsiteswww.amwayindia.comwww.amway.comwww.onlineml m.com