- 1. 2012ChetanasHazarimal Somani College Of Com. &Eco. & Smt. Kusumtai Chaudhari College Of Arts Topic: Amway. Pvt. Ltd. co. Group. No: Presented to:Prof: kedar.
2. Group members: sheral. fernandes.107 Priti. Vishwakarm..149 Sandesh. Poojari.130 Neha. Shrivastav.139 Yogesh. raut133 Sonal. Singh1411 3. index:What is Amway?Introduction.History of Amway.Center of Amway.Global markets of Amway.Products of Amway in India.Hierarchy of Amway in India.Budget study of Amway in India.Objective of Amway.Goal setting of Amway.Vision and values of Amway.Case study.2 4. Amway private. Ltd. CompanyType : Private.Industry : Direct Selling.Founded: 1959.Founders : Rich Devos.Jay Van Andel.Head quarters : Ada, Michigan, United States.Area Served: WorldwideKey people : Steve Van Andel (Chairman) Doug DeVos (President)3 5. Products: Amway Home, glister, G&H,Nutrilite, Artistry, espring,Atmosphere.Revenue : US$ 10.9 Billion (2011)Employees : 20000Parent: AlticorWebsite : Amway.com4 6. What is Amway:What does the word Amway mean? Amway is anabbreviation for "American Way and was coinedin 1959 by company founders, Jay Van Andel andRichard Devos. Short, unique and easy toremember, Amway has been registered as acorporate name and trademark ever since. In thefollowing decades, Amway Corporationsuccessfully established itself as a leadingmultilevel marketing business, built on strongvalues and founding principles that continue tosustain our company today. The business is builton the simple integrity of helping people leadbetter lives. Today, Amway is a multibillion-dollarinternational business representing freedom andopportunity to millions of people in more than 88countries and territories around the world. Amwayoffer over 3 million Business Owners theinspiration to grow those businesses, and to workhard to provide new and better ways for them toachieve their life goals.5 7. Introduction:Amway is a direct selling company thatuses multilevel marketing to sell a variety ofproducts, primarily in the health, beauty, and homecare markets. Amway was founded in 1959 by JayVan Andel and Richard Devos. Based in Ada,Michigan, the company and family of companiesunder Alticor reported sales growth of 9.5%,reaching US$9.2 billion for the year endingDecember 31, 2010. Its product lines include homecare products, personal care products, jewellery,electronics, Nutrilite dietary supplements, waterpurifiers, air purifiers, insurance and cosmetics. In2004, health and beauty products accounted fornearly 60% of worldwide sales. Amway conducts businessthrough a number of affiliatedcompanies in more than ahundred countries andterritories around theworld.Amway was rankedNo.114 among the largestglobal retailers by Deloitte in6 8. 2006,and No.32 among the largest privatecompanies in the U.S. by Forbes in 2010.Amway is a business that operates on the basis ofpyramid selling. It is described as a multi-levelmarketing scheme in which there are differentlevels of sellers. The company originated inMichigan, and sales of its products hit six billionUS dollars (USD) in 2005.Products sold by Amway agents range fromjewellery to cosmetics and health care. Amwayalso has product lines including dietarysupplements and home care goods. Amwayssellers are called Independent Business Owners(IBO), and they are a link in a long chain thatmakes up the company.Amway works byassigning a Points Value (PV) to each of itsproducts. The PV amount of each productdetermines how much commission the sellermakes from the sale. The PV of a given good is thesame regardless of the country it is sold in. The PVcan be thought of as a common Amway currencyused around the world.7 9. History: Founding:Rich Devos and Jay Van Andel initially foundedthe Ja-Ri Corporation, a multi-level marketingdistributorship for Nutriliteproducts, in 1949. Ja-Ri wasincorporated in 1959, andchanged its name to"Amway" in 1963. As of2007, Amway operates inmore than 80 countriesaround the world. In 1999,the founders of the Amway Corporation launcheda sister Internet-based Company named Quixtar.The Alticor Corporation owns Amway andQuixtar, plus several other concerns. Quixtarreplaced the North American business of Amwayin 2001 after the majority of the distributorsmoved to Quixtar, with Amway operating in therest of the world. 8 10. International expansion:Amway expanded overseas to Australia in 1971, toEurope in 1973, to partsof Asia in 1974, to Japanin 1979, to LatinAmerica in 1985, toChina in 1995, to Africain 1997, to India andScandinavia in 1998, toRussia in 2005, and to Vietnam in 2008.Based onrapid international expansion, strong familyleadership, and good financial condition, Amwayremained a strong force in the 1990s. When VanAndel and devos, whose children had begun in thebusiness in the mid-1970s, retired from thecompany in the early 1990s, all eight of the VanAndel and devos children were in leadershippositions. Dick devos was named president in1992, and Steve Van Andel was appointedcompany chairman. Jay Van Andel planned toremain active with the company as seniorchairman and member of the policy board. 9 11. Quixtar:In 1999 the founders of the Amway Corporationestablished a new holding company,named Alticor, andlaunched three newcompanies: a sister (andseparate) Internet-focused companynamed Quixtar, AccessBusiness Group, andPyxis Innovations. Pyxis, later replaced by FultonInnovation, pursued research and developmentand Access Business Group handledmanufacturing and logistics for Amway, Quixtar,and third party clients.In September 1999, the companyestablished a new company named Quixtar to sellconsumer products on the Internet. With Quixtar,Amway used the same marketing concept as it didin its traditional business: distributors purchasedproducts at volume discounts and earnedcommissions on the sales and bonuses from thesales of new recruits. Apart from Quixtarsbusiness being conducted electronically, the 10 12. greatest difference between Amway and its newcompany was the conspicuous absence of theAmway name.11 13. Center of Amway:Amway Center is one of the most technologicallyadvanced venues in the world. Inside the building,a unique center hunginstallation,manufactured byDaktronics ofBrookings, SouthDakota, is the tallestin any NBA venue. Itmaximizes creative programming options by usinghigh resolution, 6mm-pixel technology on each ofthe 18 displays, including two digital ring displaysand four tapered corners. Additional displaysinclude approximately 2,100 feet (640 m) ofdigital ribbon boards, the largest of which is a 360-degree, 1,100 feet (340 m) display surrounding theentire seating bowl.The brand new Amway Center sports andentertainment complex in Orlando, Florida, U.S.,home to the National Basketball Associations(NBA) Orlando Magic, opened with a ceremonialribbon-cutting ceremony on Friday, October 1.Amway is the official naming rights sponsor of the 12 14. Amway Center. The Amway Center is a high-visibility, world-class facility that proudly displaysthe Amway name on the buildings exterior, theroof, and throughout the complex, including on thetallest, HD (high definition) scoreboard in an NBAvenue, measuring 42 feet by 41 feet by 41 feet. Inaddition, the new Nutrilite Magic Fan ExperienceCenter inside offers visitors an on-site introductionto best-selling brand.13 15. Global markets:The company operates in over80 countries and territories,organized into regional markets:the Americas, Europe, greaterChina, Japan and Korea, and SEAsia/Australia.In 2008, Alticor announced that two-thirds of thecompanys 58 markets reported sales increases,including strong growth in the China, Russia andIndia markets.Amway in Australia:Amway in China:Amway in India:Amway in UK:14 16. Amway in Australia:Amway Australia began in 1971, and was the firstaffiliate to open outside North America(the US and Canada). From 1993 to 1999 AmwayAustralia was listed on the Hong Kong, Australianand New York stock exchanges as part of AmwayAsia Pacific Limited. Amway Australia opened inApril 1971 and was Amways first market outsideof North America.The company launched quickly,registering more than 400 distributors in its firstmonth of operation. By 1993, wholesale sales hadreached a$148million.Amway in China:Amway grew quickly in China from its marketlaunch in 1995. In 1998, after abuses ofillegal pyramid schemes led to riots, the Chinesegovernment enacted a ban on all directsellingcompanies, including Amway.In 2006, Amway China had a reported 180,000sales representatives, 140 stores, and $2 billion inannual sales. In 2007 Amway Greater China and 15 17. South-east Asia Chief Executive Eva Cheng wasranked No.88 by Forbes magazine in its list of theWorlds Most Powerful Women.In 2008, Chinawas Amways largest market, reporting 28%growth and sales of 17 billion (US$2.5billion).Amway in UK:Amway (UK) Limited was established in 1973 andwas one of the first affiliates to be launchedworldwide, and the first in Europe. Theadministrative headquarters are based in MiltonKeynes, Buckinghamshire and provide a supportmechanism for Independent Business Ownerswithin the UK, Republic of Ireland and theChannel Islands.Amway in India:Amway India, a wholly owned subsidiary ofAmway Corporation, was established in August1995 after approval by Indias Foreign InvestmentPromotion Board (FIPB). Amway India 16 18. commenced commercial operations on May 5,1998 and is now the largest Direct Selling FMCGCompany. The Company is headquartered at theNational Capital Region of India - NewDelhi.Amway India has 400 full time employeesand has generated indirect employment for 1,650persons at all the contract manufacturer locations.Amway India provides free and unlimited trainingto all its distributors to help them grow theirbusiness. Amway India conducted over 34,000training sessions during in the past 12-months withan attendance of over 1.5 million Amway BusinessOwners and prospects.17 19. Products o