introduction

Amway (short for American Way) is an American company using multi-level marketing techniques to
sell a variety of products, primarily in the health, beauty, and home care markets.
[3][4][5]
Amway was
founded in 1959 by Jay Van Andeland Richard DeVos. Based in Ada, Michigan, the company and
family of companies under Alticor reported sales of USD$11.3 billion for the year ending on
December 31, 2012the seventh consecutive year of growth for the company.
[1]
Its product lines
include home care products, personal care products, jewelry, electronics, Nutrilite dietary
supplements, water purifiers, air purifiers, insurance and cosmetics. Amway conducts business
through a number of affiliated companies in more than a hundred countries and territories around the
world.
[6]
Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.25
among the largest private companies in the U.S. byForbes in 2012,
[7]
but has been frequently subject
to investigation as a pyramid scheme or fraud.
Amway


Headquarters in Ada, Michigan
Type
Private
Industry
Direct selling
Founded
1959
Founders
Rich DeVos
Jay Van Andel
Headquarters
Ada, Michigan, United States
Area served
Worldwide
Key people
Steve Van Andel (Chairman)
Doug DeVos (President)
Products
Amway Home, glister, G&H, Nutrilite, Artistry,
AmwayQueen, eSpring, ATMOSPHERE...
Revenue
US$ 11.8 billion (2013)
[1]

Employees
13,000 (as of 2009)
[2]

Parent
Alticor
Website
www.amway.com

history

Founding[edit]

Amway Japan Head Office
Amway Vietnam (H Ch Minh since 2008)
Jay Van Andel and Rich DeVos, friends since school days, had been business partners in various
endeavors including a hamburger stand, air charter service, and a sailing business. In 1949 they
were introduced by Neil Maaskant (Van Andel's second cousin) to theNutrilite
Products Corporation. Nutrilite was a California-based direct sales company founded by Dr. Carl
Rehnborg, developer of the first multivitamin marketed in the United States. In August 1949, after a
night-long talk, DeVos and Van Andel signed up to become distributors for Nutrilite food
supplements.
[8][page needed]
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.
[8][page needed]
In 2000, Amway prepared for a new century and a new exciting era. Almost 50 years
after Amway began, the DeVos and Van Andel families created a new structure to
meet the challenges of this new century. A parent company, Alticor, was established
with subsidiaries Amway, Quixtar and Access Business Group the latter to
consolidate manufacturing and distribution for the enterprise. At the helm of Alticor
are Steve Van Andel (Chairman) and Doug DeVos (President), jointly holding the
Office of the Chief Executive. Today each area of the business, including Amway, has
the freedom to build on its strengths.
Amway continues to be a leading company in the multilevel marketing industry. Its
fundamental principlesfreedom, family, hope and rewardhold as true today as they
did in the very beginning.
Primary objectives
Amway is a global organization which markets products in international market places.
Planning for global markets is a much more complex process than for domestic
markets. It presents many more risks than operating in a domestic market where goods
are sold in only one local area. Global marketing involves recognizing that people
from all over the world have different needs, i.e. values; customs; languages; rules and
currencies. Though it is said that consumer needs around the world are converging, there are
commonly accepted needs and wants that go beyond national barriers. The marketing
mix consists of a complex set of variables which an organization combines together in
order to ensure that both global and local corporate objectives are achieved.
Standardizing elements of the marketing mix is key to operating successfully in
To meet the tastes of consumers from different nations - over recent years there has
been a convergence of tastes resulting in a more global market- place.
Social responsibilities performed by AMWAY
One by One Campaign for Children
One By One is Amways Global Campaign for Children. In each of the
80 countries and territories that Amway is present it takes up and supports
these Children of Hope.
In India, this work is carried out under the banner of Amway Opportunity Foundation
(AOF) a registered non profit organization. All Amway employees and distributors are
volunteers of AOF.
PRODUCTS OF AMWAY
Amway: A World of Product
Amway offers a range of exclusive, competitive brands that meet proven customer
needs around the world. From nutritional supplements to water treatment, cosmetics to
cleaning products, these brands are the solid foundation for a successful, in- dependent
retail business.

Nutrilite[edit]
Main article: Nutrilite
Amway's largest selling brand is the Nutrilite range of health supplements (marketed as Nutriway in
some countries), and in 2008 Nutrilite sales exceeded US$3 billion globally.
[30]
In 2001, five Nutrilite
products were the first dietary supplements to be certified by NSF International.
[31]
In 2006, 2007,
2008, and 2009 in the nutrient and health food category, Nutrilite won "Platinum" and "Gold" awards
in Malaysia, China, Taiwan, Thailand, and Asia overall in the Reader's Digest "Trusted Brands of
Asia" survey.
[32]
In 2008 Nutrilite scientists, in partnership with Alticor subsidiary Interleukin
Genetics won the 12th John M. Kinney Award for Nutrition and Metabolismfor their research into the
interaction between nutrition and genetics.
[33]
In January 2009, Amway announced a voluntary recall
of Nutrilite and XS Energy Bars after learning that they had possibly been manufactured
with Salmonella-contaminated ingredients from Peanut Corporation of America. The company
indicated that it had not received any reports of illness in connection with the products.
[34]


NUTRILITE is the world's leading brand of vitamin,
mineral and dietary supplements (based on 2006 sales).
Nutrilite is the only global vitamin and mineral brand to
grow, harvest and process plants on their own certified
organic farms. Nutrilite has made supplement products
using natural plants and plant concentrates since
1934.The same high quality products produced by
Nutrilite are sold under the NUTRIWAY brand in
certain countries. Nutrilite Health
Institute
The Nutrilite Health Institute (NHI) is a worldwide
collaboration of scientists dedicated to helping people
achieve optimal health - through research, education, and
practical, personalized solutions.
Center for Optimal
Hea
lth
The Center for Optimal Health is a world class teaching
and training facility within the Nutrilite Health Institute.
Science, nutrition, fitness, research and people are brought
together for a one-of-a-kind experience focused on optimal
health and the NUTRILITE brand.
There are products for kids also, at the early age of a
person (childhood) needs some proteins and vitamins
for a proper growth.
Spring Products
The spring Water Purifier is the first in-home system to
combine ultraviolet light technology with a patented multi-
stage carbon-block filter to provide the quality drinking
water your family deserves. The spring Water Purifier
destroys more than 99.99% of waterbourne disease-caus- ing
bacteria and effectively removes more than 140 con-
taminants. Other systems treat water spring purifies it
spring Water Purifier Technology
spring products are the result of nearly 20 years of research and
technological breakthroughs. Beginning in 1996, a signi- ficant
investment was made in emerging water-related technologies that
led to the innovative spring system. The research was time-
consuming and costly but let to a spec- tacular end result-a product
that is like no other in the marketplace
iCook Products
iCook Cookware is the healthiest way to cook anywhere
in the world. Trends indicate that consumers are
becoming more focused on healthy and safe foods. The
iCook Cookware brand delivers on its promise of
quality and nutrition.

iCook Technology
VITALOK
cooking method - compared to traditional cooking
methods, the iCook VITALOK cooking method locks in
over a third more essential vitamins and minerals.
Home Care Products
Everyone loves clean. Clean says you are in control of your life and your surroundings.
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 with the SA8, LOC and Dish
Drops brands.
ASTISTR
ARTISTRY is the only direct-sell brand classified in the prestige category, with
over US $1 billion in annual sales.
ARTISTRY has researched, acquired and developed the most advanced technology and
tools to evaluate skin and the performance of the brand products. ARTISTRY skin
science and research is conducted in 89 Research and Development facilities around the
world, representing over 4,500 collective years of research and development
experience.
SELLING STRATEGIES IN AMWAY
Direct selling catching up in India
Turnover and growth trends in direct selling in India have been impressive, a pointer to
the tremendous potential this concept has More importantly, that the trend is fast
catching up here too.
Though the direct selling industry has existed for over 15 years in India, the entry of
international companies and their activities in the last five years has given greater
visibility to the industry, which is still considered to be at a nascent stage in India.
Yet during the last two years, the trends have been encouraging to the supporters of
direct selling, whose basic philosophy is to eliminate middlemen in the sale of
commodities, and instead provide employment to a large number of trained sales staff,
who sell products directly to consumers either through group meetings or by hosting tea
gatherings at their homes.
According to the Indian Direct Selling Association (IDSA), the total turnover through
direct selling in India in 1998-99 was $140 million. As against the expected growth of
anywhere between 30 and 50 per cent, it registered a growth of
38.5 per cent for a turnover of $200 million in 1999-2000. For 2000-01, the growth isprojected at 40 to
60 per cent.
Similarly, the growth in the number of sales people has been impressive during
1998-2000. From a five lakh strong direct selling force in 1998-99, it has grown to
seven lakhs in 1999- 2000, a clear 40 per cent. For 2000-01 this is projected to grow by
50 to 60 per cent.
Does this indicate that the traditional industry is losing its market share to the new
philosophy of taking goods directly from the manufacturer to the consumer? While it
may not be so large as to create panic or alarm the well-established traditional players,
it has created a place for itself in the hearts of the people. Interestingly, the IDSA says
during 1999-2000, it received as many as 27 queries from national and international
companies expressing interest in opening a direct selling business, or to start a new
division for direct selling within their existing businesses in India.
Set up in 1992, the IDSA is an association for companies that sell products directly. It
was started by two companies `Lotus Learning (exclusive distributors of World book)',
and `LB Publishers and Distributors (exclusive distributors for Time Life Books)'.
In 1995 multinational companies such as Avon, Amway and Oriflamme joined the
association. Since then, some more like the Tupperware, Herbalife, Modicare and
Sunrider have joined the association. Of its nine members, three are fully Indian
companies owned and run by Indians and three are wholly owned subsidiaries of
foreign companies. All of them manufacture in India either through their own
facilities or through contract manufacturers.
Another significant development is the emergence of direct selling as a women'sbastion. The direct
selling industry in India comprises 72 per cent women, 24 per cent
couples, and four per cent men. In the U.S., this is 69.7 per cent women, 10.4 per cent
couples, and 19.9 per cent men.
In two years, Amway, has emerged as India's leading direct selling company and
registered a turnover of about Rs. 250 crores (September-August). It has ambitious
plans of reaching a target turnover of Rs. 1,000 crores, much before its originally
targeted year 2004.
The company has invested over $35 million in India of which $6 million is in the form
of direct foreign investment, and $4 million is for transferring technology, free of cost,
to contract manufacturers. It has over 32 offices and a reach of 352 locations, and by
2001-end it envisages an office in every city with a population of
10 lakhs and above. It has trained 3.60 lakh distributors last year, overwhelming
majority of whom were women.
Against this background the industry expects to grow at 50 to 100 per cent rate for the
next 3-5 years. Given the socio-economic conditions, the fact that a large proportion of
the country's women are housewives, who can spare some time to take up concepts
such as direct selling, and the growing need and realisation to supplement family
incomes, are seen as encouraging factors for its growth potential. Viewed against the
backdrop of a $80 billion global direct sales turnover already achieved last year, the
future appears bright. Direct selling industry seeks legal framework
THE multi-layer marketing (MLM) companies are worried that their legitimate
businesses are hampered because their direct selling methodology is confused with the
money rolling schemes or the prize chit fund schemes.
This misconception has arisen partly due to lack of information/awareness on the
functioning of the MLM and largely for want of a legal framework that checks the
abuse of direct selling mechanism by unscrupulous elements. The latter factor is a major issue
confronting the genuine MLM companies,
according to Mr Rathin Mathur, General Manager, Sales of the Rs 130-crore
Modicare Ltd, the Delhi-based MLM company.
Pressed against this background, the nascent MLMs coming under the Indian Direct
Selling Association (IDSA) were moving with the Government to put in place a
legislation that would prevent the misuse/abuse of the MLM system by the
unscrupulous operators who had sought to fleece the consumers through `Pyramid
schemes' in the garb of direct selling, said Mr Mathur, who was here on a marketing
binge for Modicare's direct selling of consumer goods, including the personal care
products.
Mr Mathur told newspersons that IDSA had been working with the FICCI in evolving a
legal mechanism and with the support of the FICCI, the association had already put up a
draft legislation to the Government. Now the Government was to suitably come out
with its legislation, which had to be put in place in time; otherwise, the consumers' faith
in this nascent but potential industry would be lost, he added.
The main strength and the ethics of direct selling business, said Mr Mathur, stood
quite distinctively apart from that of the `Pyramid selling systems'.
While the direct selling offers a business opportunity based on the sale of products as
well recruitment of `consultants' or agents, the rewards of `Pyramid system' emanates
from the addition of new participants and their investments not necessarily from the
sale and distribution of real products and the latter schemes need not have
commercially viable products.
The IDSA consists of 13 member-MLM companies of both Indian and MNCs and,
according to Mr Mathur, in the absence of any set code of conduct evolved for direct