Amway - Pioneers in Direct Markeing

PIONEERS IN

DIRECT MARKETIN

GANANTHJITH PDIRECT MARKETING

2

ABOUT AMWAY

• Amway was founded in 1959 by Jay Van Andel and Richard DeVos• Entered India in 1995• 7TH largest market for the company• Sales were around Rs 100 crore in 1998, Rs 250 crore in 2000 and Rs 500 crore in 2001. • Reported a turnover of Rso Rs 800 crore in 2007o Rs 1790 crore in 2010 o Rs 2130 crore in 2012o Rs 2288 crore in 2014

• Has over 42% share of the Direct Selling Market• Country’s NUMBER ‘1’ Direct Selling FMCG company• Almost 85% of the products sold by Amway India are manufactured within the country

3

DIRECT MARKETING

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling.

TYPES OF DIRECT MARKETING1) Telemarketing2) Email marketing3) Text marketing4) Leaflet marketing5) Social media marketing6) Direct selling

4

PRODUCTS OFFERED

Home Care Products Personal Care Products

Nutrition Products Cosmetics

5

Amway Multi-level Hierarchy

Amway’s slogan " We are listening”

6

Selling of Amway Products

• Amway practices direct selling which is 'A method of selling goods directly to the consumer by an independent Distributor’’.

• Sold through a network of Amway Business Owners(ABOs) across the country Income is generated by a distributor through: The retailing of goods to consumers. Additional performance and leadership bonuses. Various levels of leadership bonuses, dependent upon the overall size and shape of the

business, paid on achieving different levels of business performance.

7

RECRUITMENT AND OPPORTUNITY

• Amway recruited more than 34,000 sales persons-cum-distributors in the very first year of its operations

• Now there are more than 5,50,000 distributors across the country• Any adult can enroll as an Amway distributor without any paymentABOs operate independently as

small businesses. • Flexible & ‘Self-regulatory'• Generates employment for housewives• Seventy percent of its distributors are women who prefer to work part time.

8

Recent trends

• In India, cosmetics were the showstoppers in direct selling followed by home products

• Now, nutrition and wellness products have emerged from their cocoon.

• Contributes more than 33% of the total turnover of direct selling industry & 50% of the total business for Amway

• Nutrilite is the world’s number ‘1’ selling Vitamins and Dietary supplements brand

• Nutrilite protein powder, launched in 2000, is now a 250-crore brand• Nutrilite tablets are a 200-crore brand

9

CONVENIENCE

Model is designed to enable the 5Es of convenient operation:• Ease of Ordering• Ease of Delivery• Ease of Payment• Ease of Return• Ease of Information

10 PROBLEMS FACED BY AMWAYPremium pricing

Volume selling

Lack of sale of mid range products

11

Amway Had to Act Like an FMCG Company

• Amway started doing category advertising to educate customers about the brand.

• Amway introduced smaller pack size including single use sachets for some of its products to generate trial among customers get them interested.

CORPORATE ATTRACTIONoThe company wants to build equity around the corporate brand

oThe enhanced corporate image will also attract people to join Amway as independent business owner

12

Brand Experience Centers

• Amway opened ‘Brand Experience Centers' • Situated within shopping malls and high streets • Manned by consultants who provide information on the

products on display• Customers can try the products at the experience centers' • Staff at these centers' will tell the customers about the

ABOs in their area to buy the products

13

Conclusion

Amway intelligently uses the marketing mix business tool and target the various segments of the market. Therefore it manufactures and sells various types of products to attract and retain various types of customers. It has become India’s largest direct selling FMCG company by adapting to the local conditions and being loyal to its customers.

THANK YOU