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This is the Amway marketting presentation and the strategies that are required according to the case as mentioned .
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CASE STUDY ON
MARKETING MANAGEMENTPrepared by:Roopesh AggarwalVigneswaran ARAbhishek Usha Praveen YadavGyan pratap mallRajeshAneesh
INTRODUCTION• Amway - "American Way" and was
coined in 1959 by Company founders, Jay Van Andel and Richard Devos.
• Direct selling company • Headquarters- Ada, Michigan, United
States• Amway India, a wholly owned
subsidiary of Amway Corporations, was established in August 1995 after approval by India's Foreign Investment Promotion Board (FIPB)
• 450 Products In Over 80 Countries• Number of Employees-21000(2014)
MANUFACTURER
EMPLOYEE
DISTRIBUTOR WHOLESALER
RETAILER
CUSTOMER RS 100RS 30-40
60% -70%
OLD MARKET STRATEGY
MULTI-LEVEL MARKETING
MANUFACTURER
ONE SINGLE MEDIUM CUSTOMER
NEW MARKET APPROACH
• CUSTOMER
• CUSTOMER
• CUSTOMER
• CUSTOMER
DIRECT SELLIN
G
INTERNET
HOME DELIVE
RYOTHER
NEW MARKET STRATEGY
Considering the present scenario, where E-commerce is
booming as such a high pace, survival of MLM seems to
be tough in India. Also, people are more habitual of the
traditional distribution system.
Also, Direct selling is seen as unwelcoming, an intrusion
into ones privacy. Products are slightly more expensive &
delivery time is also long. The merits would be it saves
the time of shopping apart from a good demo of the
product by the distributor/agent.
A Strong Distribution Channel is Required In Networking
Marketing.
Comments on the concept of network or multilevel marketing. Do you think the model would be successful in India? Also, compare and contrast the MLM model with the traditional distribution system, bringing out the merits & demerits of both ?
TRADITIONAL
MARKETTING
MULTI-LEVEL MARKETTING
HUGE START-UP COSTBIZ LOCATION RENTSTORAGE NEEDEDLIMITED RESOURCES(CASH)
YEARS BEFORE PROFIT IS REALIZED
DEPENDENT ON OTHERS
GROWTH DEPENDS ON MARKET
VERY LITLE STARTUP COST
NO EMPLOYEES NEEDEDWORK FROM HOMENO STORAGE NEEDEDUNLIMITED RESOURCES(PEOPLE)
REALIZED PROFIT IMMEDIATELY
SELF DEPENDENTGROWTH DEPENDS ON SIZE OF SALES TEAM
• MANUFACTURER
• SUPPLIER• DELIVERY
AMWAY
• REGISTRATION• AUTHORISED
DISTRIBUTOR
YOU • UTILISATION• PRODUCT
USER
CUSTOMER
DISTRIBUTION CHANNEL
Study the developments that occurred after Amway launched its commercial operations in India. List the reasons, which led to the “Below expectations “ performance of the company
Four home care & Two personal care products were Launched
through Amway distribution centers (ADCs).
Amway appointed Sembawang shriram integrated logistics , and
mumbai based first flight couriers as its logistics partners for
home delivery of Amway products.
Amway assisted its three manufacturing partners ISO certified
Jejuplast at Pune, Naisa industries at daman, & Hyderabad based
Sarvotham care, to achieve benchmarking levels of product
development, engineering and quality.
Soon the concept of direct selling became acceptable and
Amway became the countrys largest direct selling company
with a revenue of 100 crore.
CORRECTIVE MEASURES ADOPTED BY AMWAY
OPERATION GAADI
QUICK EXPANSIO
N
GIVING INCENTIVE
S
OPERATION GHAR
HINDI SLOGANS
COVERAGE INDIAN LANGUAG
E
Critically examine the corrective measures adopted by Amway to make the MLM model a success. What further measures should the company take in order to tackle the competition from FMCG majors Like HUL& P&G.
PRICE REDUCTION
EFFICIENTEMPLOYEES
DIRECT SALES
CONVENIENT FOR WOMEN
EXTENSIVE TRAINING
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