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    Amway's Indian Network Marketing Experience

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    Ashok Kumar
    Amway faced problems in India including high distributor attrition, products seen as expensive, and self-consumption of over 50% of products without repeat purchases. To address this, Amway introduced smaller, more affordable product packages, expanded rural markets, subsidized seller kits, and used marketing concepts like multi-level marketing to build their network. These changes helped Amway overcome initial failures and become the largest direct selling FMCG company in India.

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    Amway's Indian Network Marketing Experience

    Uploaded by

    Ashok Kumar
    20 views10 pages
    Amway faced problems in India including high distributor attrition, products seen as expensive, and self-consumption of over 50% of products without repeat purchases. To address this, Amway introduced smaller, more affordable product packages, expanded rural markets, subsidized seller kits, and used marketing concepts like multi-level marketing to build their network. These changes helped Amway overcome initial failures and become the largest direct selling FMCG company in India.

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    Amway faced problems in India including high distributor attrition, products seen as expensive, and self-consumption of over 50% of products without repeat purchases. To address this, Amway introduced smaller, more affordable product packages, expanded rural markets, subsidized seller kits, and used marketing concepts like multi-level marketing to build their network. These changes helped Amway overcome initial failures and become the largest direct selling FMCG company in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    20 views10 pages

    Amway's Indian Network Marketing Experience

    Uploaded by

    Ashok Kumar
    Amway faced problems in India including high distributor attrition, products seen as expensive, and self-consumption of over 50% of products without repeat purchases. To address this, Amway introduced smaller, more affordable product packages, expanded rural markets, subsidized seller kits, and used marketing concepts like multi-level marketing to build their network. These changes helped Amway overcome initial failures and become the largest direct selling FMCG company in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 10

    Amway's Indian Network Marketing Experience

    Developed by:-
    Shoab Mohammad(A49)
    Birendra K Singh(A56)
    Ashok Kumar(A62)
    Summit Kumar(A22)
    Ashish Mishra(A48)
    Tanvi Sodhi(A63)
    Neeraj Kumar(A57)
    Contents
    • Introduction
    • Problems faced by company
    • Effects
    • Measures taken
    • Marketing Concepts Applied
    Amway-The American Way
    • Founder DeVos And Van Andel Families (U.S)
    • Amway India was established in August 1995
    • Approved by India's Foreign Investment
    Promotion Board (FIPB).
    • It is now the largest Direct Selling FMCG
    Company.
    Problems Faced by Amway
    • Failure to sell the basic concept of Direct
    selling
    • Attrition rate high among distributors
    (60-65%)
    • Product perceived as expensive and made for
    premium segment
    • Poor customer service
    • Products available in Concentrated form
    Problems Faced by Amway
    •  Most of the products that the distributors
    bought, they consumed themselves.
    • Estimates put the percentage of self-
    consumption at almost 50-60% of the total
    volume.
    • Self-consumption did not translate into repeat
    purchases.
    Measures Taken by Amway
    • Putting stickers on its products

    • Introduced value-for-money ‘ chhota (small)


    packs’

    • Brand penetration.
    • Set up SBU’s
    Measures Taken by Amway
    • Expansion drives as 'Operation Gaadi' and
    'Operation Ghar.‘
    • Printing Hindi slogan
    ‘ Hamara apna business' (our own business)
    • Focusing on rural segmentation
    • Subsidizing entry free for the sellers kit
    • Money back policy
    • Started first time advertisement
    Marketing Concepts Applied
    •Multi-level marketing (MLM)
    • Network marketing,
    • Direct selling,
    • Referral marketing.
    Conclusion:
    • Finally we conclude that, because of certain
    changes on the package of the product,
    motivating the distributors and making new
    innovations made the company to over come
    from the failure.
    Thank you

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