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Page 1: Dhivya PPT

LARGEST DIRECT SELLING LARGEST DIRECT SELLING NETWORKNETWORK

Dhivya. VDhivya. V10MBAA1010MBAA10

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INTRODUCTIONINTRODUCTION

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The largest direct-selling, The largest direct-selling, multibillion dollar, multilevel multibillion dollar, multilevel marketing, and international marketing, and international business out there today.business out there today.

The company’s main vision The company’s main vision and founding principle is to and founding principle is to help people lead better liveshelp people lead better lives..

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HISTORYHISTORY• Amway is an abbreviation of "American Way“.• Amway is a direct selling company and manufacturer that uses network

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.• Their first product was called Frisk, a concentrated organic cleaner developed by a

scientist in Ohio. • They subsequently formed Amway Sales Corporation and Amway Services

Corporation.•  In 1960 they purchased a 50% share in Atco Manufacturing Company in Detroit, the

original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation.

•  In 1964 the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form a single entity, Amway Corporation. Amway bought control of Nutrilite in 1972 and full ownership in 1994.

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INDIAN OPERATIONS- SINCE 1998INDIAN OPERATIONS- SINCE 1998

• Amway India was established in 1995 and its commercial operations Commenced in May 1998. The company, a wholly owned subsidiary of the $6.2 billion Amway Corp, is currently selling 75 products in four categories in India - nutrition and wellness, beauty, personal care and home. Amway is the largest Direct Selling FMCG Company in India with Investment in excess of US $ 35 million (Rs. 151 crore) in India.

• The company has over 4,50,000 active independent Business owners and nation-wide presence . In twelve years of commercial operation, Amway India has established a nation-wide presence of over 130 offices and 55 city warehouses and four regional mother warehouses. The distribution and home delivery network set up with the support of independent logistics partners is spread across over 4000 locations.

•  Amway India is a member of the Indian Direct Selling Association (IDSA). The IDSA is an industry regulatory body, with several reputed international and Indian Direct Selling companies as members

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BRANDSBRANDS

• Household Cleaners• Health & Beauty• Nutrilite• E-Spring• Atmosphere

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Manufacturing FacilitiesManufacturing FacilitiesWorld wide: 1. Ada, Michigan•2. Lakeview, California •3. Buena Park, California •4. Guangzhou, China

Nation wide:•1. Himachal pradesh•2. West bengal•3. Karnataka •

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AMWAY INDIA FACTS:

•INDUSTRY- DIRECT SELLING•HEAD OFFICE- NEW DELHI•TARGET- MIDDLE, HIGHER INCOME GROUPS ,WORKING

PEOPLE AND HOUSEWIFE•STRATEGY- MULTI LEVEL-(NETWORK MARKETING) STRATEGY THAT SELLS VARIETY OF PRODUCTS TO DIVERSE GROUPS OF CUSTOMER•TURNOVER – 1,800 Cr. IN 2010•BRAND AMBASSADOR – MISS ASIA PACIFIC, ACTRESS- DIYA MIRZA DIRECT COMPETITORS - ORIFLAME, AVON•INDIRECT COMPETITORS - LOCAL INDIAN COMPANIES

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BUSINESS MODELBUSINESS MODEL• Amway combines direct selling with a multi-level marketing (network marketing)

strategy.

• The personal   contact and care that they provide is an   important element in direct

selling

• "Independent Business Owners" (IBOs) may market products directly to potential

customers and may also recruit (sponsor) and train other people to become IBOs.

• IBOs   are self-employed and can introduce   others to the business, and so form

their   own sales network People may also register as IBOs to buy products at

discounted prices.

• The Amway Sales and Marketing Plan has been operating for over 51 years and is

available in over 80 countries and territories around the globe.

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SUPPLY CHAIN OF AMWAY-INDIASUPPLY CHAIN OF AMWAY-INDIA

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HOUSEHOLD CLEANERSHOUSEHOLD CLEANERS

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ARTISTRYARTISTRY

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The ARTISTRY brand sales facial skin care products and color cosmetics since in 1968

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NUTRILITE HEALTH PRODUCTSNUTRILITE HEALTH PRODUCTS

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E-SPRINGE-SPRING

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E.T REPORT: AS ON FEB 10E.T REPORT: AS ON FEB 10THTH 2011 2011

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Portal supportPortal support

• “Artemis” solutions company that provides a portal to companies that can be accessed across their organization.

•They provide focus, balance, and solutions that are in the best interest of their client company.

•The Artemis portal empowers the company with shared knowledge and real-time access to sales, forecasts, changes, production flows, suppliers, inventories, and distribution information quickly and efficiently.

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Thank you

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