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Marketing Strategies of Amway

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Amway

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Page 1: Marketing Strategies of Amway
Page 2: Marketing Strategies of Amway

IntroductionAmway Global (formerly known as Quixtar North America) is a multi-level marketing (MLM) or network marketing company

founded in 1959, Ada Michigan, United States.

It is Privately owned by the families of Rich DeVos and Jay Van Andel.

It is also a member of the Direct Selling Association and the Better Business Bureau.

Amway conducts business through a number of affiliated companies in more than ninety countries in the world.

Page 3: Marketing Strategies of Amway

IntroductionAmway India commenced commercial operations on May 5, 1998. Amway has invested in excess of US $ 35 million (Rs. 151 crore) in India of this; US $ 6 million (Rs. 26 crore) is in

the form of direct foreign investment.

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.

Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary

supplements, water purifiers, air purifiers, insurance and cosmetics.

Page 4: Marketing Strategies of Amway

Year Wholesale Sales (INR)

1999 0.99 mil2000 2.48 mil2001 5.53 mil2002 6.26 mil2003 5.79 mil2004 6.36 mil2005 6.33 mil2006 7.68 mil2007 7.99 mil2008 11.28 mil2009 14.07 mil

Page 5: Marketing Strategies of Amway

Product BriefArtistry was founded in 1968 by

Edith Rehnborg.Artistry is among the top 5 selling prestige brands in the world along

with Estée Lauder, Lancôme, Clinique and Shiseido.

The Artistry skin care consists of four lines; Time Defiance,

Essentials, Pure White and Creme Lux.

In India Artistry is targeted to the upper class and the middle class

consumers. Whereas the cosmetic range for the middle class is

marketed under the Attitude label.

Page 6: Marketing Strategies of Amway

Artistry PatentsThe ARTISTRY team of 500 scientists, engineers and technicians around the world have been recognized for

developing cutting-edge; technologically advanced products using only the highest quality, pharmaceutical-grade

ingredients at levels that perform. They have been granted over 200 patents by the US and International patent offices.

PATENTS.PATENTS. ARTISTRY Published and Granted Public Patents

ARTISTRY Four-Pan Patent Oat Extract Patent

European PatentSkin Whitening Composition Patent

Page 7: Marketing Strategies of Amway

Product & Brand ResearchCompetition:Competition: Indian Market has no potential competition for Amway's cosmetic range, but, international market it is in

competition with four other cosmetic brands.

Advertisement: Advertisement: Since Amway relies mostly on Direct Sales for business. It had completely neglected advertisement

until recently, when they started to advertise in the most common forms of media, two years ago.

Brand Promoters: Brand Promoters: Sandra Bullock and Kim Tyo.

Page 8: Marketing Strategies of Amway

Product & Brand ResearchTarget Costumers: Target Costumers: Upper and Middle Class

Plan of Action:Plan of Action: Spread Awareness about its product, Concentrate on penetrating new segments and market by increasing its ABO (Amway Business Owner) strength, Maintain optimum quality and Educating Customers.

Increasing ABO:Increasing ABO: Cost of joining reduced, new variety of first purchase offers for new ABO's introduced which entitles

them to a host of benefits and discounts, providing training and formal education of product development on a regular basis.

Page 9: Marketing Strategies of Amway

Product & Brand ResearchAwards and Global Recognition:Awards and Global Recognition:

Artistry Creme Luxury wins Glosscars Best New Age Management Product, Australia.

Artistry named "Favorite of Consumers" in the Skin Care category, Ukraine.

Amway Global ranked #1 online Health & Beauty retailer by Internet Retailer.

ARTISTRY™ Creme LuXury Nominated For UK Beauty Awards 2009.

2009 PRoof Awards - Gold Award, Special Public Relations - Artistry for the Skin Diaries Editor Event.

Artistry Creme Luxury Wins Design Award.

Page 10: Marketing Strategies of Amway

Product & Brand ResearchArtistry Essentials wins IOPP design Award.

Quixtar ranked #1 in Health & Beauty by Internet Retailer. Artistry - Most Trusted Brand - Malaysia 2005.

mway also received the Hajee Sulaiman Omar Memorial Ever Rolling Shield, by the Madurai Medical College.

Social Responsibility of Organization: Social Responsibility of Organization: In India, social work is carried out under the banner of Amway Opportunity Foundation (AOF) a registered non profit

organization.

Page 11: Marketing Strategies of Amway

Analysis It is a multi-level marketing company.

It relies primarily on person-to-person referral rather than advertisements for sale of products .

Though the company is present in the Indian market since more then 11 years. It is yet to make its impact. The company's core targets are the higher class

consumers. Middle class is given negligible importance while the

lower class is completely neglected. The company has recently announced ad campaigns.

Page 12: Marketing Strategies of Amway

Analysis

The structure of a Amway organization is hierarchical, but an individual can earn

more than those who bring them into the organization.

The pyramid structure on which the company does business is criticized a lot

nationally and well as globally.

Page 13: Marketing Strategies of Amway

Strengths and Advantages

Globally renowned brand.Premium Quality.Negligible or No competition in

its class.

Page 14: Marketing Strategies of Amway

Weakness Poor global branding. Pricing. Presence of distributor between the

organization and end user. Ban of sale of products in retail stores. Negligible promotion and advertisement. Packaging.

Page 15: Marketing Strategies of Amway

OpportunitiesAdvertisement.Implementation of Penetration

growth strategy.Promotions.Tie-ups.

Page 16: Marketing Strategies of Amway

Conclusion Amway is the top direct selling brand in

Indian market today. It is also amongst the handful of brands

that have a myriad of products under a single label.

One of the largest retailers in the world.

Page 17: Marketing Strategies of Amway

Fulfilling Customer Needs (Recommendation)

Amway has to invest more into advertisement and promotion.

It also has to target and manufacturer products for the rural mass of India.

It has to allow its products to be sold in retail stores rather then just relying on direct sales.

Proper brand endorsement is necessary. Has to make attempts to infiltrate the interiors of

India. Pricing has to be reviewed.

Page 18: Marketing Strategies of Amway

Thank You