Specialization Project Report on

“The impact of Marketing Strategy of Amway towards

Customer Satisfaction”

Submitted By SEJAL SUNIL KHEDEKAR

Marketing Specialization
Roll No. 62
Academic Year: 2021-2022

Under the Guidance of

Prof. DEEPA BOBADE

( Faculty Guide)

University of Mumbai

NCRD’s Sterling Institute of Management Studies Plot No

93/93A, Sector 19, Near Seawoods Darave Railway Station,
Nerul (E), Navi Mumbai-400706
 NCRD’S Sterling Institute of Management Studies
Plot No. 93/93 A, Sector – 19, Nerul (East), Navi Mumbai – 400 706

Institute Certificate

This is to certify that Sejal Sunil Khedekar, Roll No. 62 is a bonafide

student studying in MMS Program (Semester IV, Marketing

Specialization) of the University of Mumbai in this institute for the

Academic Year 2021-22. As a part of the University curriculum, she

has completed Project titled as “The impact of Marketing Strategy

of Amway towards Customer Satisfaction” under our guidance.

Prof. Deepa Bobade Dr. Prashant Gundawar

(Faculty Guide) (Director)
 Plot No 93/93A, Sector 19, Near Seawoods Darave
Railway Station, Nerul (E), Navi Mumbai-400706

DECLARATION

I , Ms. SEJAL SUNIL KHEDEKAR hereby declare that the project

work entitled “The Impact Of Marketing Strategy Of Amway
Towards Customer Satisfaction” is the original work done by me
under the guidance of Prof. Deepa Bobade, Faculty Member, NCRD’
s Sterling Institute of Management Studies.

NAME: Sejal Sunil Khedekar

Roll No: 62 Signature of student
 ACKNOWLEDGEMENT

Apart from the efforts of me, the success of any project

depends largely on the encouragement and guidelines of
many others. I take this opportunity to express my gratitude
to the people who have been instrumental in the successful
completion of this project. First of all, I would like to extend
my gratitude towards University of Mumbai for giving me
an opportunity to take up this project as preparing this
project has definitely broadened my horizons. Next, I would
like to extend my thanks to NCRD`S Sterling Institute of
Management Studies, Nerul for providing me with the
necessary ware withal to successfully complete this project.

I would also like to thank my college director Dr. Prashant

Gundawar, my very helpful project guide Prof. Deepa
Bobade for her continuous support and guidance.
Last but not the least; my heartfelt love for my family,
friends, whose constant support and blessings helped me
throughout this project.

EXECUTIVE SUMMARY
file:///C:/Users/Sameer/Downloads/toaz.info-marketing-r
esearchamway-india-ltd-pr_d624c3881f78c49c7985dbf27
601b140.pdf
Amway is a unique company. It is defined by the
fundamental philosophy 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 business
opportunities to people from all cultures and walks of life.
Whether they are employees, distributors, or citizens in the
community, Amway touches 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 India ‘s 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 the marketing
strategy adopted by Amway in the Indian market. An
attempt has been made to study the company’s
perspective in the new market and analyses on how the
company plans its expansion in India. I have substantiated
my research by conducting interviews to gain more insight
about the corporation. The data has been analyzed 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
structured questionnaire and the interpretation for the
same has been provided. I have finally concluded my
research by providing a summarized conclusion and also
suggested recommendations on the basis of the marketing
mix.

INTRODUCTION

Direct Selling is a remarkable business model, which brings

the market to the customer and offers a unique business
opportunity to anyone eager to adopt the spirit of enterprise.
Direct Selling can best be described as the selling of
products and services directly to consumers in a
face-to-face manner, through demonstration of usage, by
an independent direct salesperson. Direct Selling benefits
consumer because it sells high quality products at the
consumer's convenience, often at his/her home or
workplace. Customers value the advantages of
convenience, personalized attention, demonstration of
usage, and a wide choice of products backed by Customer
Satisfaction Guarantee. One of the most tangible impacts
of Direct Selling in its new advent has been the fact that it
has touched the average man and women in a manner
never experienced before. Amway India Corporation is the
country's leading Direct Selling Company. It is perhaps the
best example of the contribution Direct Selling is making to
India. In a little over two years of commercial launch
Amway India has emerged as the country's largest Direct
Selling Company. It closed its financial year with a turnover
close to Rs. 250 crores (the Amway Financial year runs
from Sept. to Aug.). It will reach its target of Rs. 1000 crore
turnover much before its declared target of the year 2004.
Because it focuses upon direct selling, Amway is different
from more traditional distribution channels. Its Independent
Business Owners own their own business, with the
flexibility to deal directly with their own clients and to build
up personal relationships. These Independent Business
Owners also have the ability to deliver Amway's products to
their customers' homes. Independent Business Owners sell
to people they know or meet. The personal contact and
care they provide is an important element in direct selling.
They are also self-employed and can introduce others to
the business to form their own sales group of Independent
Business Owners The channel of distribution describes the
stages of ownership that take place as a product moves
from a manufacturer to a consumer. The increasing use of
the Internet by consumers has created a real potential for
developing different types of business models and for new
approaches to reaching users directly and quickly in their
homes. This report examines in detail the marketing
strategy of the leading global direct marketing major,
Amway in India. In the initial stages of the report I have
focused on Amway ‘s current position in the Indian market.
As the research progresses I have tried to analyses the
company’s marketing objective for India and how they set
out to achieve them. This report also provides a brief
introduction to the concept of multilevel marketing and
tries to make the reader understand the difference between
multilevel marketing and the traditional distribution setup in
the FMCG sector, so as to give an idea as to how the
system is being utilized by companies like Amway.

Multilevel Marketing

a definition Multilevel marketing allows sellers to build a

business through their own sales efforts and by inviting
others to become sellers. Remuneration is based on a
seller's personal sales AND on the combined sales of those
people they have sponsored, trained and motivated. The
story of Amway is intended to drive home the point of a
company being alert enough to modify its globally
accepted practices to suit the local market ‘s needs. This
report has been made keeping in mind the benefits which
can be derived from my research.

Benefits to customers

This report will be beneficial for consumers who prefer the

marketing goods or services directly to them: at their own
convenience often in his/her home either on a one-to-one
basis, or in the context of a sales party. Through this the
customers will get a better idea about the company’s
product offerings and value the advantages of:
convenience, personalized attention, and a good selection
of quality products available at their door steps.

Benefits to seller
Many people have chosen direct selling because they want
to build their own business, but do not have: considerable
funds required to buy a franchise or start a new company.
Among the top five reasons people sell direct because they
like and believe in the product, like being their own boss,
and working their own hours, like the supplemental family
income or making extra money for themselves. It can be
beneficial from the sellers’ point of view as it may give
them the idea of exactly how they can go about creating
their own business and benefit from the Amway ‘s unique
business opportunity.

Benefits to companies

In this report I have deeply analyzed the marketing strategy

for Amway through personal interviews by many IBOs and
Amway customers who have helped in adding valuable
data to this project which can be useful for the company.
The suggested recommendations can be considered by the
corporation for further expansion and increasing market
share.

AMWAY PROFILE
 COMPANY HISTORY

Amway began in 1959 with two young entrepreneurs in the

United States, Rich DeVos and Jay Van Andel. Their
concept for an innovative business opportunity, centered
around person-to-person marketing, established itself as a
leader among one of today's fastest-growing industries.

Today, more than 3.6 million independent business owners

distribute Amway products in more than 80 countries and
territories. Amway is part of the Alticor family of companies
whose global sales totaled $4.5 billion in its most recent
fiscal year. Amway conducts business through a number of
affiliated companies in more than ninety countries and
territories around the world. It is ranked by Forbes as one of
the largest private companies in the United States and one
of the largest retailers in the world.

1950s - A Friendship Forms Rich DeVos and Jay Van

Andel's friendship actually began with a business
proposition, when Rich struck a deal with Jay for a ride to
school 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 to this day.

1960s - The Early Years Amway quickly outgrew its original

facilities in the basements of Rich DeVos's and Jay Van
Andel's homes. In its first full year of business, Amway's
sales were more than half a million dollars.

1970s - The Decade of Growth As vowed by Jay Van Andel

the night of the 1969 disaster, Amway rebuilt the aerosol
plant and went on. The ' 70s began with sales of more than
$100 million at estimated retail, and kept going strong.
After a lengthy investigation, the FTC verified that Amway is
a genuine business opportunity and not a "pyramid."

1980s - The Billion-Dollar Decade The ' 80s will be

remembered for the first Billion
Dollar Year at estimated retail in 1980. Building expansion
at Amway World Headquarters continued at breakneck
speed as Amway scrambled to keep pace with demand,
opening its new cosmetics plant in Ada.

1990s - The Second Generation As carefully planned by

Rich and Jay, the secondgeneration Van Andel and DeVos
families took the helm during the ' 90s. Steve Van Andel
and Dick 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 DeVos share the
Office of the Chief Executive.

Amway - The Current Scenario

Amway is the largest multi-level marketing (MLM)

organization in the world. It is a multi-billion-dollar company
based on the sale of a variety of products. Amway ‘s
philosophy is defined by commitments, trusts, enduring
relationships, and the ideal of perfection above profit. From
a humble beginning in 1959, using an old gas station,
Amway the brainchild of Co-founders Rich DeVos and Jay
Van Andel, is now one of the largest and most successful
direct sales companies. Amway has also worked to provide
better opportunities for people through active support of
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 and the 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 World Federation of Direct
Selling Association (WFDSA).

VISION

Inspiring people to live better lives.

MISSION

To provide the best business opportunity. To deliver

exceptional quality products to urban and semi urban
homes in the areas of nutrition and wellness, cosmetics,
personal care, home care, home tech and insurance.

GOAL OF AMWAY

The development of new business opportunities

To increase the company’s role in relation to social

responsibility

To provide excellent customer service

AMWAY INDIA

Amway India is a wholly owned subsidiary of Amway

Corporation, Ada, Michigan,
USA. Amway Corporation is a 42-year-old company, and is
among the largest Direct Selling companies in the world. It
was established in 1995. It commenced commercial
operations in May 5th, 1998. In the brief period since launch,
it has emerged as the Country ‘s largest Direct Selling
Company.
Facts:

Over 200,000 entrepreneurs have adopted the Amway

business opportunity; and are actively involved in building
their independent Amway business. Amway has invested
US $ 35 million in India. Of this, US $6 Million is in the form
of Direct Foreign Investment. (IDSA) US $4 million has been
spent in transferring state-of-theart technology. The
company Amway India was launched with 5 offices (New
Delhi, Bangalore, Mumbai, Chennai, Kolkata) 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 year
2004. 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 Selling
Association (IDSA) Direct Selling requires expertise and
special skills. Using the benefit of Amway's leadership
status in the global Direct Selling industry, Amway India has
in the past 12 months, conducted over 8000 training
sessions with an attendance of approximately 350,000
Distributors. Amway India was honored by the AICB
Millennium Outstanding Service Award, 2000 by the All
India Confederation of the Blind in recognition 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 at
Bangalore during October, 2000. In the short period since
its advent in the country, Amway has made several
contributions to
India ‘s socio economic milieu. It was either introduced
unprecedented benefits, or upgraded existing facilities to
international standards.

Corporate Responsibility

Through its presence in India, Amway continues to enhance

human resource development using its experience in
entrepreneurial opportunity and self-employment. Amway
has conducted several seminars on "Entrepreneurial
Development and Direct
Selling" in concert with the Confederation of Indian
Industries (CII) and the All India Management Association
(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 that the business has developed through direct
selling. In Amway, one is recruited as an "independent"
distributor of Amway products by buying a couple of
hundred dollars’ worth of the products from the one who
recruits you, known as your "up-line." Every distributor in
turn tries to recruit more distributors. Income is generated
by sales of products by the distributor plus "bonuses" from
sales of his or her recruits and their recruitdescendants.

How do you begin? First, you are sponsored by another

Amway distributor and you obtain the Amway Business Kit.
The Business Kit contains basic AMWAY products and
literature for your use and for sharing with others. You
begin by developing both customers and distributors.

Customers or clients are the people who buy the AMWAY

products from you but who aren't Amway distributors. One
of your best sources for building a customer base is a
group of people you already know. These acquaintances try
AMWAY products and become your customers as they use
and re-order various AMWAY items.

However, I have found that people everywhere need

high-quality, Satisfaction Guaranteed products which they
believe Amway is able to provide.

Independent Business Owners or Distributors are people

who have evaluated the
Amway business opportunity and elected to join the
business. IBOs deal directly with Clients, build up personal
relationships and deliver direct to Clients' homes. They are
highly motivated, selling to people they know or meet. The
personal contact and care that they provide is an important
element in direct selling. IBOs are self-employed and can
introduce others to the business, and so form their own
sales network.

The most successful Amway businesses enjoy a balance of

merchandising AMWAY products and sponsoring
distributors. Growth in your business comes from sharing
the Amway business opportunity with others and helping
them decide if it's right for them. This is called sponsoring.
Amway distributors who sponsor others generally have
higher average sales volumes than those who don't
sponsor.

Your "Group" is the team of distributors you've sponsored.

Many you've sponsored personally, but others were
sponsored by those you personally sponsored. You train
and motivate your group and, as a result, you earn extra
income when they earn income. As you continue to grow
your business and they continue to grow theirs, you both
can benefit.

Like any other business, your Amway distributorship needs

frequent input 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 distributors in your group who become successful in
the Amway business, the stronger your business will
become, and the higher the pin levels you can qualify for.
We call them "pin levels" because you earn incentive pins at
the various achievement levels of the business.
Each pin level features a set of incentives and rewards for
being successful.

Income Incentive and more

The Amway Opportunity offers distributors many benefits.

Some are financial, others are intangibles, such as peer
recognition, pride in achievement, the joy of helping others,
working with family, and the esteem of owning your own
business.

Income potential

As an Amway distributor, you can earn income many

different ways. For instance, in the U.S. and Canada, you
can earn income in at least 10 different ways. They include
retail profit (the difference between Distributor Cost and the
Retail Price) and nine different bonuses rewarding various
levels of accomplishment.
Special leadership programme

As you qualify at various levels of achievement, you may be

eligible to attend various Amway leadership programs:

Annual Business Meetings

In countries around the world, company - paid invitations

are extended to Amway leaders to meet in a
business-building atmosphere.

Variety of Special Programs

When your business qualifies at a specific distributor level,

a special invitation occurs. Imagine your special day at an
Amway facility, your own success story featured in our
distributor magazine, and your name and picture added to
the Distributor Hall of Fame in Amway's World
Headquarters.

AMWAY’S MARKETING OBJECTIVE

The objective involves matching consumer needs with the

product. The better the match, the more lasting the
potential for the relationship between the seller and the
buyer. The selling process is aided by Amway's retail
strategy to provide high quality, readily purchasable items
with a good environmental positioning, and offering
consumers good value for money.
 AMWAY SALES AND MARKETING PLAN

Amway practices direct selling which is a method of selling

goods directly to the consumer by an independent
Distributor. A Distributor can then introduce further
Distributors and generate income from retail profits
supplemented by bonus payments based upon the total
sales of the group built by a Distributor'. Income is
generated by a distributor through: The retailing of goods to
consumers. Retail margins (mark-ups) on the basic
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 the distributors he has introduced to
the business.

Various levels of leadership bonuses, dependent upon the

overall size and shape of the business, paid on achieving
different levels of business performance. This plan,
therefore, rests upon the twin foundations of retailing and
sponsoring.

Retailing - the selling of goods to consumers on which retail

margins are earned and performance bonuses gained.

Sponsoring - the introduction of other individuals to

establish and develop their own independent Amway
distributorships. Retailing enables distributors to provide
immediate financial incentive rewards. Sponsoring enables
distributors to replicate the base with other people, thus
allowing the organization to grow.

Direct selling involves sales people showing and

demonstrating products to obtain orders. As with all direct
selling activities, the process involves two-way
communication and this can be time-consuming. Business
success and the resulting financial results are a direct
consequence of effort, commitment and personal group
motivation. Personal contact between distributors at one-to-
one or group meetings provides the opportunity for
individuals to discuss strategies, difficulties, levels of
involvement and plans for the future. The income
objectives and individual targets may be determined by
each distributor based upon what he or she wants to earn.
Distributors who develop direct selling businesses may
come from widely different backgrounds, with vastly
different levels of experience and knowledge - the common
factor to their success is the desire to achieve.

AMWAY’S STRATEGIES IN THE INDIAN MARKET

INTRODUCTION

The launch of any new product requires a considerable

amount of time, effort and careful planning. Research and
development use advances in science and technology to
enhance products, while market research is carried out to
examine changing consumer tastes and fashions. The key
to successful marketing is to clearly identify at which
market segment the product should be aimed, find out
precisely what consumers in this target group want and
then plan the marketing strategy accordingly. The focus of
brand image and positioning of the product within the
marketplace are of paramount importance.

All organizations face an external business environment

that constantly changes. Changes in the business
environment create both opportunities and threats to an
organization’s strategic development, and the organization
cannot risk remaining static.

Improve the ways in which it creates products and develops

new and existing markets with a view to offering its
customers better service. Amway is an interesting example
of a company that reviews its strategic capabilities 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 that include other well-known branded goods.
The company also offers a variety of third-party services.
 Amway’s Market Penetration Strategy

Going for market penetration has involved Amway in

making the most of current products and competences by
'stretching' those new markets. One great benefit of direct
selling is that it is an immediate channel to the marketplace
that offers customers a good service, while at the same
time providing 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 have also helped to increase market
penetration. There are also special events such as
Leadership Training Seminars. These enable IBOs to spend
time with others involved in the business and to learn about
'best practice' from each other, whilst also sharing ideas.

Target Markets and Market Segmentation

Segmentation: 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 from all backgrounds.
Amway also offers a range of Fast-Moving Consumer
Goods through its five main product categories i.e.

Home Care

Personal care
Cosmetics

Nutrition Wellness

But initially Amway was launched in India with only 6

products most of which were home and personal care
products.

Target Audience: Although it was recognized by Amway

that groups such as children, men and teenagers are likely
to become targets in the future, the Amway ‘s range of
products was aimed mainly at adult females between 23
and 44 years of age. These products are daily use items
catering mainly to the household sector. Through
Amway‘s extensive market research it was proved that

that women are often looking for new products and

technologies that will provide a more satisfying product

experience. Thus, Amway has segmented its market on

the basis of typical consumer from this target group: is

probably a professional woman? is very product

conscious wants professional, quality products

Regular user of home care and beauty products relies

on recommendations from friends when making any

purchase decisions
Makes buying decisions based on clinical evidence.

Positioning: The focus of brand image and positioning of

the product in a new market place are of paramount
importance. Thus, it was important for Amway to create a
strong brand image for the total product range for entering
the Indian market. The image created would reflect a great
deal about the product and its consumers. One of the most
important challenges for Amway was to develop an
appropriate packaging for all its products to appeal to the
Indian consumer.

Packaging can be crucial to the success of a new product

and Amway went to great lengths to ensure that the
packaging and design appealed to the target audience.

The colours are light, elegant, soft and culturally appealing.

Soft, metallic white gives a sense of clarity, while the blue
caps represent water and blue sky. The silver metallic
touches add luxury and spice. All the colours are designed
to suggest cleanliness. This design was used to create a
brand image. The following objectives for the brand were
set:

to increase distributor profitability and productivity by

providing a new and exciting business opportunity.
to optimize consumer convenience and value through
enhanced product differentiation by providing them with an
exclusive and revolutionary range of products.

Marketing Mix:

Product: Considering the overwhelming success it

receiving in the Indian market, Amway has introduced more
products in each category. It is also planning to expand the
product category by introducing Home tech and food items
in India. Amway has also adapted itself to the local market
by introducing the sachets and small bottle packs which
can be used by people in small quantities and are very
economical.

With the exception of the Nutrition & Wellness and

Cosmetics range, all Amway India products/bottles are
manufactured through 3 third party contract manufacturers
using world class technology and processes. The products
match Amway's global quality standards. They carry a
tamperproof seal and a 'Customer Refund Policy'. If not
completely satisfied with the product, the consumer can
return it for a refund. Amway products are environment
friendly, and are not tested on animals. Amway encourages
the return of its used product bottles for re-cycling and to
prevent their misuse.
Amway's product range demonstrates its adaptability to the
market based on a close, first-hand understanding of the
Indian consumer's nuances. An aggressive product launch
plan introduces new products every few months. In the
coming months, Amway will further expand its product
portfolio through the launch of several new core line
products. Amway had initially started with 6 products for
the Indian market in 1998. At present it has about 45-50
products in its various product categories which is about
11% of its total product category.

Pricing: Amway products are price competitive and overall

a good value for money. While some of its products are
more expensive than their counterparts, others are less
expensive and most are competitively priced. Products that
are more expensive usually have greater features and
benefits over competitive goods. Many AMWAY products
are highly concentrated, meaning a single purchase lasts
longer. On a costper-use basis, these products are priced
very competitively from their local brands.
The consumer is the ultimate judge of price and value, and
Amway ‘s sales success over the years speaks volumes
about its product value and customer satisfaction.
Amway’s pricing strategy remains the same but with the
introduction of sachets and small bottles, people can now
enjoy its products at an economical rate.
Place: Amway India enterprise is redefining its structure by
overhauling its supply chain. The network marketing
company is looking at reducing the lead time by moving
closer to the point of consumption, improving its
information system and reaching out to homes through a
better delivery system. It is expanding its presence across
the country and adding new products to its portfolio. The
company has done away with its central warehouse at
Nagpur and opened four regional ware houses in Bangalore,
Kolkata, Delhi and Mumbai that are serviced directly from
the manufacturing units. The company today has 36 offices
serving over 385 locations across the country. It plans to
add 14 more offices to its network this year taking the total
number of offices to 50 which will serve over 450 locations.
These new offices will be opened at strategic locations
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 32 offices, and a reach to 352
locations.

Promotion: Amway promotes its products through its

Independent Business Owners. It has a heavy accent on
training. Every Amway distributor enjoys free, unlimited
access to training sessions. These training sessions impart
product knowledge, comprise motivation sessions, and
seek to optimize the business potential of participants.
Recently Amway has also started advertising about its
products in various Newspapers and Magazines to
promote its products and reach out to their target markets.
Amway has come up with a vast promotional strategy to
reach out to its customers and other potential buyers.

Amway's Promotion channels

There are five different promotion channels:

Corporate Events

Corporate events include specially arranged functions, such

as product fairs, conferences and seminars, which
distributors at different levels are invited to attend.
Face-to-face communication at a range of events helps
Amway and its distributors to get to know each other. They
also provide an opportunity for distributors to get to know
each other and are useful for relaying messages, giving
advice and generating personal discussion.

Pace Setter - a reward incentive to help new and existing

distributors reach the 6bonus level within three consecutive
calendar months. It also encourages a balanced business,
with equal amounts of retailing and sponsoring - essential
for long-term success and profitability.
Direct Distributor Seminar - allows newly qualified Direct
Distributors to meet the Amway Management Team, tour
the UK Headquarters, attend key informative, motivational
business sessions and go to the New Direct Distributor
Gala Dinner.

Leadership Seminar - where distributor leaders who have

achieved a target criterion set by Amway, travel for a
seven-day trip with compliments of Amway to some of the
world's finest beach locations and hotels where they attend
a number of business sessions and exchange thoughts and
ideas with corporate staff.

Launch into '03 - a major annual launch of new products

and services presented by a road show of event.

Training

Training builds the skills and knowledge of distributors and

therefore improves competence levels. For Amway, the
starting point of the training process is to identify the skills
and knowledge necessary for distributors to carry out their
role. Acquiring product knowledge is an important aspect
of training and preparation. As Amway relies upon the
personal service of its distributors and the quality of its
products, it is essential that distributors are not just shown
how to use products but also how 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 sessions provides
informative help for the management of independent
businesses. Once a distributor has achieved an advanced
knowledge of a specific brand, they can then receive the
training and tools required via a 'Train a Trainer' session
whereby they will be taught how to train their own group,
therefore maximizing their expertise.

Lines of sponsorship

Amway is essentially a people-based business - without

people, the business cannot expand. The business of each
distributor grows via new customers and through the
sponsorship of new distributors. Established distributors
are involved in helping newly sponsored associates to
merchandise Amway products. Distributor groups meet to
discuss company procedures and their goals. The groups
also discuss new product launches and promotions, the
administration of their businesses and support new and
existing distributors. These lines of sponsorship provide
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 and products across its target
audience. These include:

Amagram - This magazine is mailed directly to all Amway

distributors in the India. Amagram is used to communicate
information about new products, promotions, community
news, distributor events and recognitions as well as news
of other affiliates throughout the Amway world. Amagram
shows how distributors can make more out of their
business. It is also used to help distributors understand the
philosophy by which the business operates and the
legislation regulating the Direct Selling Industry.

Special Literature - Occasionally, Amway designs a

brochure or leaflet which is used to address a particular
change or launch, e.g. new car care product range.

Amway’s Market Expansion Strategy

One method used by Amway involves expanding the ways
in which individuals can be involved with the Amway
business. Amway has developed a structure known as the
IMC model. This increases the number of ways through
which people can become involved in the Amway business.
Each of the letters IMC stands for a different type of
involvement.

I - Independent Business Owners (IBOs)

M - Members C - Clients (customers) of the IBOs.

Members are allowed to purchase Amway products at a

price equivalent to that paid by IBOs, but do not participate
in the Amway Sales and Marketing Plan. They are a new
type of 'customer' who deals directly with Amway.

Target Markets and Market Segmentation

Segmentation:

Geographic: Amway is now trying to reach people by setting

offices even in the remote areas of the country. Amway ‘s
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 includes a wide variety from soft toys meant for
children to health and nutrition products for the entire
family. But to join the Amway as an Independent Business
Owner a person should be above 18 years of age.

Income: Amway business opportunity is more popular

among the middle-income group since it gives them a
chance to increase their income level by 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 many new products in the Indian
market the choices are increasing for both men and women.

Family Life cycle: Majority of people joining Amway are

young women and newly married couples.

Occupation: Most of the people who are engaged in the

Amway business are either professionals or small
businessmen.

Psychographic

Personality: It appeals to people who are ambitious and

want to earn high incomes within a short span of time.
Amway through its unique business opportunity gives them
a chance to earn enough income and show them the path
to realise their dreams.

Social Class: Majority of Amway people comprise of

working class, middle class, Upper-Middle class.

Behavioral

Benefits: The consumers enjoy the benefit of using a

high-quality product which is available to them at their door
steps.

Loyalty status: People working with Amway have a very

high loyalty status. They slowly start replacing Amway
products with other local products and can continue to use
these products for life.
Attitude towards product: Amway people are usually very
enthusiastic and optimistic in everything they do.

Target Audience:

Amway ‘s products appeal to a large number of buyers all

over India. It is targeting people who believe in using high
quality products which are conveniently available to them.
Amway business opportunity is attracting the
middle-income group to earn extra income. Amway ‘s target
audience include a lot of professionals and young couples
who are very ambitious to earn high level of income in a
short span of time.
Amway ‘s products being good in quality are also very
much preferred by the upperclass segment who can easily
afford the pricing but they don ‘t wants to get involved with
the business opportunity. They are mostly associated with
Amway as their customer.

Target group

Men – 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
 RESEARCH METHODOLOGY

PRIMARY DATA:

The main objective is to carry out an in-depth study of

Amway ‘s overall marketing strategies in India. To analyze
the consumer satisfaction towards Amway products,120
respondents were selected from within the Coimbatore city.
The respondents included students, business people,
employees, and home makers.

SECONDARY DATA:

Journals
Websites
News dailiers