AMWAY Report

 

  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 Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales growth of 15%, reaching US$8.2 billion for the year ending December 31, 2008.[1] Its product lines include home 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 worldwide sales. 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 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 care 2. Personal Care 3. Home Care 4. Skin care 5. Agriculture

Home Care: Under the home care products category the following product line is maintained. 1.LOC

2. SA8 3. Dish Drop 4. Zoom 5. Buff up

6. Car Wash 7. Pursue

Personal Care: Under the personal care the following products are under the umbrella. 1. G&H products 2. Glister 3. Persona 4. Dynamite

Health Care: Brand: NUTRILITE 1.

Protein power

2.

Daily

3.

Omega 3

4.

Bio C

5.

Cal Mag

6.

Iron-Folic

7.

Kids

8.

TNA (many more)

Skin Care: Brands: 1.

Artistry

2.

Attitude (only for India)

Multi-level Marketing (MLM) - also called network marketing (NM) - is a business model which utilizes a combination of direct marketing and franchising. Typically, individuals become associated with a parent company in an independent contractor relationship. Sellers are compensated based on their sales 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 Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, 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 the China, 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 the hair care product Satinique (1965) and Artistry (1968). Today Amway manufactures over 450 products, with manufacturing facilities in Ada, Michigan, China, and India, as well as Nutrilite organic farms in California, Washington State, Mexico, and Brazil. In addition Amway affiliates market products 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 washing products and Dish Drops dish cleaning products. In the January 2007 issue of Consumer Reports, SA8 with Bioquest was rated as the best performing laundry detergent, scoring 99 out of a possible 100. Consumer Reports did however criticise SA8's pricing, which was disputed by Amway. In 2008, Amway's cleaning products were named Favourite of Experts by an independent consumer survey in Ukraine.

Health and beauty: The majority of Amway's sales today come from the Health & Beauty sector and in North America the Amway Global/Quixtar website is ranked the #1 Health & Beauty website by Internet Retailer. In South Korea Amway is ranked one of the top two companies in toiletries and cosmetics. Amway's health & beauty brands include Artistry, Time Defiance, Satinique, Tolsom, Body Series, Glister, Moiskin (South America), Nutrilite, Nutriway (Scandinavia and Australia/New Zealand),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 and serums. 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 5 best 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 incorporate organically grown whole-plant concentrates. Euromonitor has for several years ranked Nutrilite the world's best selling nutritional brand in tablet or capsule form. In 2001, five Nutrilite products were the first dietary supplements to be certified by NSF International. Surveys by independent group Consumerlab.com since 2002 have rated Nutrilite as having the highest customer satisfaction rating (96% in 2006) in the direct selling/MLM brand category. 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. In 2008 Nutrilite 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 and genetics.

eSpring: Amway's eSpring water filter, introduced in 2000, was the first home water treatment system to incorporate a carbon block filter and Ultraviolet disinfection unit, becoming the first home system to achieve certification for ANSI/NSF Standards 42, 53 and 55. The unit was also the first commercial product to include sister company Fulton Innovations eCoupled wireless power induction technology. Fulton Innovation introduced the technology in other consumer electronic products at the 2007 International Consumer Electronics Show. Companies licensing this technology include General Motors, Motorola and Visteon. In 2006 eSpring 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 by the Asthma and Allergy Foundation of America.

Business model Amway combines direct selling with a multi-level marketing strategy. IBOs may both market the products directly to potential customers and also recruit (sponsor) and train other people who become IBOs themselves and in turn have the same opportunity. Each IBO may earn income both from the retail mark-up on any products they sell 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. 

SWOT ANALYSIS STRENGTH

Weakness

World Class Quality Products.

People Awareness about the products.

100% cash based business (NO debts)

High MRP of products. 

Education system – Britt World Wide, winners  international, Network 21

Unsatisfied Distributors 

Money back Guarantee gives a huge  competitive  advantage. CSR activities SWOT

OPPORTUNITIES Huge population – so lots of prospects

THREAT  Different companies who did fraud  with the similar way of business.

Diversified area like ‐ Insurance 

No. of Active Distributors.

Growing Health Care and Wellness industries .

Distributor many times makes wrong  promises  with customer which lower the company’s  Image 

Exports of products from India.

 

  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 like BPCL petrol card in which the customer gets the points everytime they fill there tanks of car with the fuel. Other one is with the Reliance Mobile in which the IBO’s and other people associated with Amway gets 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 can redeem your points with pv/bv.

Value Added  Services

STATIONS OF EXPERIENCE:

1.) UP‐LINE INTERFACE POSITIVES

NEGATIVES

• HELP, GUIDANCE • MENTORSHIP

•MIS‐GUIDANCE •OVER‐PROMISES

2.) PRODUCT KNOWLEDGE & ASSISTANCE POSITIVES

NEGATIVES

•COMPLETE PRODUCT  KNOWLEDGE,USAGE •LAST MILE AVAILIBILITY

•PRODUCT TRAINING LACKS REACH •ADC’S FOCUSSED

3.) BUSINESS SUPPORT POSITIVES • BWW SUPPORT • STRUCTURED

NEGATIVES MENTORING EASY FINANCING

•EXPENSES INCURRED BY IBO’S

IBO/ABO/AIE — Independent Business Owner/Amway Business Owner/Amway Independent Entrepreneur is a business partner of Amway who is authorized to market and distribute products and 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 relationship management (CRM), today announced Amway of Australia successfully implemented the latest web version of Onyx Employee Portal (OEP), version 4.5. Amway of Australia uses the Onyx application to consolidate and centralize information about its Independent Business Owners (IBOs) and to automate marketing campaigns and processes both for its Australian & New Zealand business Amway is focused on building, and rewarding, lifelong relationships with our Independent Business Owners With Onyx, we will continue to lead in the Direct Selling industry by providing highly personalized service to improve overall success." "The implementation of Onyx at Amway of Australia is great example of how the flexibility of our CRM platform allows customers to easily create a solution that is tailored to meet their specific needs,"said Brent 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 3 Members are : PRASHANT SHARMA -70 ROMIL RUNGTA-89 SUDHAN SRIVASTAVA-104 PRANAY TRIPATHY-132