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Amway
is a direct selling company and manufacturer that uses multi-level marketing
to sell a variety of products,primarily in the health, beauty and home care
markets. Amway was founded in 1959 by Jay VanAndel and Richard DeVos.
Based in Ada, Michigan, the company and family of companies under Alticor
reportedsales growth of 15%, reaching US$8.2 billion for the year ending
December 31, 2008.
[1]
Its product lines includehome care products, personal care products,
jewellery, electronics, Nutrilite dietary supplements, water purifiers,air
purifiers, insurance and cosmetics. In 2004, Health & Beauty products
accounted for nearly 60% of worldwidesales. Amway conducts business
through a number of affiliated companies in more than ninety countries
andterritories around the world. It is ranked by Forbes as one of the largest
private companies in the UnitedStates and by Deloitte as one of the largest
retailers in the world.It entered in India and established in Sept, 1998 with 5
products. In the first year the turnover was 100 Crores,and the current
turnover is over 1100 Crores.Total number of SKU’s(stock keeping units) are
350 in spread in 5 different categories.1. Health care2. Personal Care3.
Home Care4. Skin care5. Agriculture
Home Care
: Under the home care products category the following product line is
maintained.1.LOC2. SA83. Dish Drop4. Zoom5. Buff up
6. Car Wash7. Pursue
Personal Care:
Under the personal care the following products are under the umbrella.1.
G&H products2. Glister3. Persona4. Dynamite
Health Care:
Brand
: NUTRILITE1. Protein power2. Daily3. Omega 34. Bio C5. Cal Mag6. Iron-
Folic7. Kids8. TNA (many more)
Skin Care:
Brands:
1. Artistry2. Attitude (only for India)
Multi-level Marketing (MLM) - also called network marketing (NM) - is a business model
which utilizesa combination of direct marketing and franchising. Typically,
individuals become associated with aparent company in an independent
contractor relationship. Sellers are compensated based on theirsales of a product or
service, as well as the sales of those they bring into the business
International expansion
Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in
1974, to Japanin 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to
India and Scandinavia in1998, to Russia in 2005, and to Vietnam in 2008.In 2008 two
thirds of Amway's 58 markets reported sales increases, including strong growth in
theChina, Russia and India markets. Amway India sales grew 40% to 1128 crore
(US$230million).
Brands
Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960,
and later thehair care product Satinique (1965) and Artistry (1968). Today Amway
manufactures over 450products, with manufacturing facilities in Ada, Michigan,
China, and India, as well as Nutrilite organicfarms in California, Washington
State, Mexico, and Brazil. In addition Amway affiliates marketproducts from
hundreds of other manufacturers offering everything from books (e.g. Barnes &
Noble,North America) to wine (World of Wine, Europe).
 Household cleaners:
Amway is best known in North America for its original cleaning products,
LOC, SA8 clothes washingproducts and
Dish Drops
dish cleaning products. In the January 2007 issue of ConsumerReports,
SA8 with Bioquest
was rated as the best performing laundry detergent, scoring 99 out of apossible 100.
Consumer Reports did however criticise SA8's pricing, which was disputed
byAmway. In 2008, Amway's cleaning products were named
Favourite of Experts
by an independentconsumer survey in Ukraine.
Health and beauty:
The majority of Amway's sales today come from the Health & Beauty sector and in
North Americathe Amway Global/Quixtar website is ranked the #1 Health &
Beauty website by Internet Retailer.
InSouth Korea Amway is ranked one of the top two companies in toiletries
and cosmetics. Amway'shealth & beauty brands include Artistry, Time Defiance,
Satinique, Tolsom, Body Series,Glister,
Moiskin
(South America), Nutrilite,
Nutriway
(Scandinavia and Australia/NewZealand),eSpring,
Atmosphere
and
iCook
as well as
XL
and XS Energy drinks.
Artistry:
Main article: Artistry (cosmetics)
Amway's Artistry products include skin care, cosmetics, and anti-aging
creams andserums. Euromonitor International, an independent researcher and
publisher of market reports,business reference books and online information databases,
ranks Artistry as one of the world's top 5best selling brands in the
prestige brand
category, alongside Clinique, Estee Lauder,Lancome,and Shiseido. Artistry is the
only direct sales brand classifed in the "prestige" category.
Nutrilite:
Main article: Nutrilite
Amway's Largest selling brand is the Nutrilite US$3billion globally Nutrilite
products incorporateorganically grown whole-plant concentrates. Euromonitor has
for several years ranked Nutrilite theworld's best selling nutritional brand in tablet
or capsule form. In 2001, five Nutrilite products were thefirst dietary
supplements to be certified by NSF International. Surveys by
independentgroup Consumerlab.com since 2002 have rated Nutrilite as having the
highest customer satisfactionrating (96% in 2006) in the direct selling/MLM brand
category. In 2006, 2007, 2008, and 2009 in thenutrient 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. In 2008Nutrilite
scientists, in partnership with Alticor subsidiary Interleukin Genetics won the
12th
John M.

Kinney Award for Nutrition and Metabolism

for their research into the interaction between nutrition andgenetics.

eSpring:
Amway's eSpring water filter, introduced in 2000, was the first home water treatment
system toincorporate a carbon block filter and Ultraviolet disinfection unit,
becoming the first home system toachieve certification for ANSI/NSF
Standards 42, 53 and 55. The unit was also the first commercialproduct to
include sister
company Fulton Innovations eCoupled wireless power induction technology.
FultonInnovation introduced the technology in other consumer electronic
products at the 2007 International ConsumerElectronics Show. Companies
licensing this technology include General Motors, Motorola and Visteon. In
2006eSpring was named
Product of the Year
by the Poland-based non-profit
World Foundation of Health, Heart and Mind
. eSpring has won numerous
Gold
and
Platinum
awards in the
Reader's Digest Most Trusted Brand.

Atmosphere:
In 2008 Amway's HEPA air filtration system became the first air cleaner
certified Asthma and Allergy Friendly bythe Asthma and Allergy Foundation
of America.
Business model
Amway combines direct selling with a multi-level marketing strategy. IBOs
may both market the products directlyto potential customers and also recruit
(sponsor) and train other people who become IBOs themselves and inturn
have the same opportunity. Each IBO may earn income both from the retail
mark-up on any products theysell personally, plus a performance bonus
based on the sales volume they and their down line have generated.People
may also register as IBOs to buy products at a discounted rate.
CHANGE

MANAGEMENT
:

When

the

Amway

entered

into

India

they

soon

realised

that

the

business

is

not

usual

here

and

they

will

have
to

go

under

some

changes

for

business

to

be

fit

for

locals.

So

they

brought

in

the

following

changes

especially

for

India.

1.
Small

Size

packaging.

2.

Low

range

products

launched,

like

Attitude

and

dynamite.

3.

Special

product

training

sessions

which

guide

how

to

use

the
product.

(Since

Amway

has

concentrated

prducts

and

per

use

cost

will

be

less

if

used

properly

4.

Sale

once

in

year.(Diwali)

5.
TV

Commercial

and

marketing

activities.

6.

CSR

activities

Amway

opportunity

Foundation

National

projects

for

the

blind

Red

Cross

help

Since

the

competition
from

the

competitors

is

increasing

always

following

SWOT

Analysis

would

be

beneficial

for

their

whole

business

plan.

STRENGTHWorld

Class

Quality

Products.100%

cash

based
business

(NO

debts)Education

system

– Britt

World

Wide,

winners

international,

Network

21Money

back

Guarantee

gives

huge

competitive

advantage.CSR

activitiesWeaknessPeople

Awareness

about

the

products.High
MRP

of

products.

Unsatisfied

Distributors

OPPORTUNITIESHuge

population

– so

lots

of

prospectsDiversified

area

like
‐
Insurance

Growing

Health

Care

and

Wellness

industries

.Exports

of

products
from

India.THREAT

Different

companies

who

did

fraud

with

the

similar

way

of

business.No.

of

Active

Distributors.Distributor

many

times

makes

wrong

promises

with

customer
which

lower

the

company’s

Image

SWOT
SWOT

ANALYSIS

Amway CRM Project Overview

CRM (customer relationship management) web system for trading systems
to manage client’s debts,complaints, comments and documents.The CRM user
intarface is web think client which uses internet browser to access this
system.The server side provides role-based functionality for different users
types.
 Amway has been providing some of the value added services for its customers. Some
of them are likeBPCL petrol card in which the customer gets the points
everytime they fill there tanks of car with thefuel.Other one is with the Reliance
Mobile in which the IBO’s and other people associated with Amwaygets special
discounted prices on their talk time and recharges.Moreover Amway has collaborated
with the ICICI bank for the credit card usage in which u canredeem your points with
pv/bv.
Value

Added

Services

STATIONS OF EXPERIENCE:
3.)

BUSINESS

SUPPORT
POSITIVES
•
BWW

S U P P O R T M E N T O R I N G
•
S T R U C T U R E D E A S Y

FINANCING
NEGATIVES
•
EXPENSES

INCURRED

BY

IBO’S
2.)

PRODUCT

KNOWLEDGE
&

ASSISTANCE
POSITIVES
•
COMPLETE

PRODUCT

KNOWLEDGE,USAGE
•
LAST

MILE

AVAILIBILITY
NEGATIVES
•
PRODUCT

TRAINING

LACKS

REACH
•
ADC’S

FOCUSSED
1.)

UP
‐
LINE

INTERFACE
POSITIVES
•
HELP,

GUIDANCE
•
MENTORSHIP
NEGATIVES
•
MIS
‐
GUIDANCE
•
OVER
‐
PROMISES
IBO/ABO/AIE  Independent Business Owner/Amway Business Owner/Amway
IndependentEntrepreneur
is a business partner of Amway who is authorized to market and distribute productsand
services available from Amway. Different names are used in different markets.

Business-logic features:
•
Manage client’s debts, complaints, comments and documents.
•
Role-based frame-work.
•
Report system based on generation Microsoft Excel files.Onyx® Software Corp.
(NASDAQ: ONXS), worldwide leader in successful customer relationshipmanagement
(CRM), today announced Amway of Australia successfully implemented the
latest webversion of Onyx Employee Portal (OEP), version 4.5.Amway of Australia uses
the Onyx application to consolidate and centralize information about itsIndependent
Business Owners (IBOs) and to automate marketing campaigns and processes both
forits Australian & New Zealand businessAmway is focused on building, and rewarding,
lifelong relationships with our Independent BusinessOwnersWith Onyx, we will
continue to lead in the Direct Selling industry by providing highly
personalizedservice to improve overall success.""The implementation of
Onyx at Amway of Australia is great example of how the flexibility of our
CRMplatform allows customers to easily create a solution that is tailored to
meet their specific needs,"saidBrent Frei, Chief Executive Officer, Onyx
Software.
We hope to be a truly customer-centric organization, and with this seamless
support infrastructure, we are confident that we can develop loyal and
lasting relationships through personalized communication Submitted by:
Group 3Members are : PRASHANT SHARMA -70ROMIL RUNGTA-89SUDHAN
SRIVASTAVA-104PRANAY TRIPATHY-132

AMWAY Report
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