Amway presentation

amway company presentation that how the company promoted their product in India through multi level marketing basically by word of mouth and analysis of consumer and competitors along with the SWOT (strength, weakness, opportunity, threats) and PEST (political, economical, social, technological) problems and solution providing the strategies that the company should adopt along with the suggestions

1. Founded in November 9, 1959 Headquarters- Ada, Michigan, United States Area Served- WORLD WIDE Number of employees- 21000 (as of 2014) Primarily deals in HEALTH, BEAUTY and HOME CARE Uses Multi Level Marketing (MLM) to sell its products

2. MULTI LEVEL MARKETING Multiple levels of people are marketing a product to consumers. A sale representative gets customers and train another sales representative to get customer. Usually marketed directly to consumers and potential business partners by means of relationship referrals and “word of mouth” marketing. Marketing strategy in which the sales force is compensated not only for the sales they generate, but also for the sales of the other sales person they recruit.

3. MULTI LEVEL MARKETING An MLM company starts by recruiting one person who gets customers and recruits sales rep with the option to become a manager. Only commission basis , not salary. Rapid expansion by the number of trained sales reps. Income of sales rep isn’t limited to only what they can sell – they can also earn commission for having trained other sales rep.

4. STRENGTH Global presence (53 affiliate operations worldwide) Strong Research & Development Large distributor network across the world Direct selling portfolio Premium quality Negligible or no competition in its class Provide very convenient part time job for women

5. WEAKNESS Alarming attrition rate (60- 65%) Distributors ‘self consumed’ (50- 60%) Active distributors remained low (35- 40%) Products perceived to be expensive Distributors lacked awareness of products Narrow focus on Customer Service Lack of infrastructure Customer dissatisfaction

6. OPPORTUNITY Starting activities to deal with end consumers Aggressive marketing launch Focus on small towns Expansion of distribution network Strengthen online presence Improve attrition Distributor awareness

7. THREATS Competition from Oriflame Modicare took advantage of weakness E commerce and internet Merging of telecom with cable television operators- making sales more obsolete Indian preferred the security of job. Local competitor ( Modicare ) as it provides better services (like prices were 1/4 th of Amway and 100% refund policy).

8. PEST Analysis POLITICAL Received permission from Foreign Investment Promotion Board for investment in India Government allowance Economical Localization of production and raw material Local labour Following the Indianization strategy

9. Social Active involvement of community Operation ghar and operation gaadi Hindi slogan ‘ hamara apna business’ Focus on house wives for part time involvment Technological Setup of R&D department Produce sachets of products Local manufacturing in three cities of India

10. Consumer Analysis Consumer perceived amway products to be expensive. Consumer and distributors aware of the fact that cost per usage was low (formation of concentrated liquid is very low) Poor customer service by the company leads to face many problems by customers

11. COMPETITOR ANALYSIS Modicare targeted upper middle class Avon and Oriflame had a large advertising scale Revlon Modicare provide 100% refund even if the product is used – was a cause of concern for Amway Local Indian companies E-commerce sector

12. Problems quality product Possibilities People with negative mindset in India NRI known the brand better Expensive products Cost effective and concentrated quality product Other MLM companies claiming to be “ just like Amway” Educate people what MLM & Amway is all about No awareness in Indian market Advertising and awareness programs Traditional way of earning money Conventional opportunity to earn money with values and great reward programs

13. MARKETING Media advertising to promote products Aggressive commercial product launch Categorizing the products and appointing product managers for every individual product line Focus in smaller towns Introduced value for money ‘small packs’- to increase brand penetration Indianised the product line- ‘hamara apna business’

14. Strategy Agreement with the government and companies Resumed operations Goods will be sold in retail outlets Sales representatives Income of sales distributors will be based on direct selling done by other Localization of employees Localization of production and raw material Localization of research and development Transparency and credibility of company’s management

15. suggestions Trial packs so as to introduce customer to the product Product should be price sensitive Less time in home delivery of the product Multiple option places to purchase the product Customer services should be better