Organization Overview

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouthmarketing. Some people use "direct selling" as a name for MLM, although MLM is only one type of direct selling, which started centuries ago with peddling. In contrast to MLM is single-level marketing, where the salesperson is rewarded for selling the product directly to the consumer. It is generally accepted that the first multi-level marketing plan was introduced in 1945 by the California Vitamin Company shortly afterwards to become Nutrilite. The plan allowed Nutrilite distributors with at least 25 regular customers to recruit new distributors and draw a 3 percent commission from their sales. Unlike traditional direct selling, this was an ongoing payment whenever the customer re-ordered; allowing direct sellers to build a sales organization that could generate a residual-like income.

Profile of the Problem

The main scope of the project is to provide customers online marketing and business. There are many companies are in world which are following MLM product selling business portfolio they are listed below: Amway Tupperware DXN RCM Modi Cares Oriflame
RMP

Existing System

Amway Amway is a direct selling company and manufacturer that uses network marketing to sell a variety of products, primarily in the health, beauty, and home care markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales growth of 9.5%, reaching US$9.2 billion for the year ending December 31, 2010. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics. In 2004, Health & Beauty products accounted for nearly 60% of worldwide sales. Amway conducts business through a number of affiliated companies in more than a hundred countries and territories around the world. Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.32 among the largest private companies in the U.S. by Forbes in 2010. Amway's business practices have been the subject of controversy and the company has been involved in several court cases in the United States, Canada, and elsewhere.

Amway

Type

Private

Industry

Direct selling

Founded

1959

Founder(s)

Rich DeVos Jay Van Andel

Headquarters

Ada, Michigan, United States

Area served

Worldwide

Key people

Steve Van Andel (Chairman) Doug DeVos (President) Al Koop (Chief Operating Officer) Russ Evans (Executive Vice President and Chief
Financial Officer)

Products

Amway Home, glister, G&H, Nutrilite, Artistry, AmwayQueen, eSpring, ATMOSPHERE...

Revenue

US$ 9.2 billion (2010)[1]

Employees

13,000[2]

Parent

Alticor

Website

Amway.com

History of Amway In August 1949, after a night-long talk, DeVos and Van Andel signed up to become distributors for Nutrilite food supplements.They sold their first box the next day for $19.50, but lost interest for the next two weeks. Shortly thereafter, at the urging of Maaskant, who had become their sponsor, they traveled to Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel, with over a hundred people in attendance. After seeing promotional filmstrips and listening to talks by company representatives and successful distributors, they decided to pursue the Nutrilite business opportunity with enthusiasm. They sold their second box of

supplements on their return trip to Michigan, and rapidly proceeded to develop their new business further. In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated from their respective first names) for importing wooden goods from South American countries. After their trip to the Nutrilite seminar, they dropped this business and Ja-Ri became their Nutrilite distributorship. In addition to profits on each product sold, Nutrilite also offered commission on the sales of products by new distributors introduced to the company by existing distributorsa system today known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built an organization of over 5,000 distributors. However, following concerns about the stability of Nutrilite, in April 1959 they and some of their top distributors formed The American Way Association to represent the distributors and look for additional products to market. Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Concentrate). They subsequently formed Amway Sales Corporation to procure and inventory products and to handle the sales and marketing plan, and Amway Services Corporation to handle insurance and other benefits for distributors (Amway being an abbreviation of "American Way").] In 1960 they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964 the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form a single entity, Amway Corporation Amway bought control of Nutrilite in 1972 and full ownership in 1994 International expansion Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, to Russia in 2005, and to Vietnam in 2008.

Tupperware Tupperware is the name of a home products line that includes preparation, storage, containment, and serving products for the kitchen and home, which were first introduced to the public in 1946. Tupperware develops, manufactures, and internationally distributes its products by as a wholly owned subsidiary of its parent companyTupperware Brands Corporation and it is marketed by means of direct sales through an independent sales force of approximately 1.9 million consultants.

Tupperware was developed in 1946 by Earl Silas Tupper (190783) in Leominster, Massachusetts. He developed plastic containers used in households to contain food and keep it airtight. The formerly patented "burping seal" is a famous aspect of Tupperware, which distinguished it from competitors.

Tupperware pioneered the direct marketing strategy made famous by the Tupperware party. Brownie Wise (191392), a former sales representative of Stanley Home Products, developed the strategy. During the early 1950s, Tupperware's sales and popularity exploded, thanks in large part to Wise's influence among women who sold Tupperware, and some of the famous "jubilees" celebrating the success of Tupperware ladies at lavish and outlandishly themed parties. RCM

RCM is a very unique concept of selling the products directly from company to consumers. The entire system works in the interest of consumers. The best part of this concept is that you do not have to do anything different from what you have been doing till now. All you are required to do is to purchase RCM Products and get your registration through internet. Your first purchase should be in certain amount for getting registered. From then onwards, then RCM Products, because :1. You are getting best quality at reasonable price. 2. No Chance of duplicate goods. 3. You get promotional amount as well. After getting registered whenever you purchase RCM products you get performance bonus on your purchase. And if you promote to join RCM and purchase RCM products among more people, you may get additional promotional amount on their purchase also. Day by day as your group will expand your promotional amount will also increase. Company distributes promotional amount according to marketing plan given in the link.

Modicare

Modicare, a leading direct selling company and part of the KK Modi Group. Modicare believes in the highest standards of quality and to lend credibility to the claims of high quality most of the Modicare products carry the 100% Modicare Satisfaction Guarantee.

Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by the brothers Jonas af Jochnick and Robert af Jochnick. The company sells skin care, cosmetic products and other related products through an independent sales force of over 3 million people.

Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnick, and their then partner, Bengt Hellsten in Stockholm. The brand got its name from the royal banner of medieval France which was traditionally unfurled only on the battlefield and accompanied by the war cryMontjoie Saint Denis. Oriflame then expanded and had its first UK Consultant in 1970. Following this Oriflame Ireland opened as a licensee in 1972. Oriflame published their catalogues in the UK for the first time in 1988. The company then expanded and in 2006 Oriflame UK and

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Ireland became part of the Premier Direct Group but was subsequently sold to independent owners, Eric McClenaghan and Kevin Kenny.

RMP
RMP Infotec Private Limited is a network marketing company that focuses on giving a customer satisfaction guarantee both in product and service. The whole organization is well oriented in its system thereby creating an efficient and forever showing growth. RMP aims to educate and expose the innocent people to the latest technologies. It presents various household technologies to diverse sector of individuals. These technologies conform to the needs and comforts of individuals who prefer high tech household wares. The company offers an excellent marketing opportunity for its distributors. This is geared to a broader business evolution and economical prospects. RMP has a consistent and strong binary plan which is advantageous to the distributor. This is a continuous and constant source of income which is very convenient for working individuals. It is an organization with a good income strategy coupled with dedicated distributors equates to success.

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DFD for present system

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Problem Analysis

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Product definition

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Feasibility Analysis/Market Study

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