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1411290_634719660294170846

1411290_634719660294170846

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Published by Kiran Pagare

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Published by: Kiran Pagare on Nov 30, 2012
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12/04/2012

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INTRODUCTION TO…

AMWAY & ITS SUPPLY CHAIN

ACROPOLIS FACULTY OF MANAGEMENT & RESEARCH
SUBMITTED BY. KAPIL SHALIYA MBA(G2) AFMR SUCHI SHARMA MBA(G2)AITR

INTRODUCTION

Amway India is the country’s leading direct selling

FMCG-company which manufactures and sells worldclass consumer products. All its products are covered by a 100 per cent Money Back Guarantee. If not completely satisfied with the product, the consumer can return it for a 100% refund.

There is no joining fee for the Amway business any

adult can enroll as an Amway distributor, without any payment.

PRODUCTS…

At present, Amway India offers over 130 products in five

categories. They are Personal care category, Home Care
category, Nutrition & Wellness category, Cosmetics and Great Value Products.

With the exception of Cosmetics range (Artistry*) and some products in Nutrition and Wellness category, all

Amway India products and bottles are manufactured in India.

CONTINUE…

The products match Amway’s global quality standards. They carry a tamper-proof seal and a ‘100 per cent Money Back Guarantee'. Amway products are environment friendly, and are not tested on animals. Amway encourages the return of its used product bottles for re-cycling and to prevent their misuse.

PROMOTING FREE ENTERPRISE AND SELF-EMPLOYMENT
Amway distributors follow a Code of Ethics and Rules of Conduct consistent with the World Federation of Direct Selling Associations (WFDSA), which defines the goals, principles and responsibilities in building and operating an Amway business. 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.

IBO’S –THE ARMY OF AMWAY
Unlike some of its competitors, Amway does not use the traditional distribution channel for getting products to market. Instead, Amway uses a direct selling approach. Direct Selling is a technique that cuts the ‘middleman’ out of the distribution process by providing goods directly to individual distributors who provide those goods to consumers. These distributors are known as

Independent Business Owners (IBO).

Amway currently has more than 3 million IBOs around the world, including over 25,000 IBOs within Ireland, the UK and the Channel Islands. These IBOs actually own their own independent businesses through which they sell Amway’s products and these products can only be purchased through IBOs. By using this direct sales model, Amway’s parent company Alticor generated annual sales of more than $6 billion as at 31 August, 2005.

CONTI…
Amway is a global leader in direct selling. No other direct selling company can compare with Amway’s longevity, stability, and global reach. Direct selling is increasingly used by many organizations as a means of reducing cost and ensuring a more efficient fulfillment of customer orders. This includes companies such as Dell and Aer Lingus, who use the Internet as a means of getting their product to market.

THE CHARTS OF DISTRIBUTION …
PHYSICAL DISTRIBUTION
RETAILERS A& F AGENTS ADVERTISING MANUFACTURES SALES TAX STOCKIST SALES & MARKETING

10%
40%

10% 10% 10%

10%

10%

CONTI…
INTELLECTUAL DISTRIBUTION
MANUFACTURER RETAILERS OTHER BOUNSES 9% 21% 40% SALES TAX PERFORMANCE INCENTIVE

20%

10%

PHYSICAL SUPPLY CHAIN.
MANUFACTURERS

SUPERSTOCKIST
WHOLESELLER RETAILERS CUSTOMERS

INTELLECTUAL SUPPLY CHAIN OF AMWAY….
MANUFACTURERS DISTIBUTORS/ IBO’S

CUSTOMERS
The AMWAY uses the intellectual supply chain for distribution of its products, the IBO’S Is the important person in this chain…

RECOGNITION LEVEL FOR IBO’S IN AMWAY…
1ST time IBO called = silver After 3 month IBO called = gold After 6month IBO called= platinum After 12 month IBO called = super platinum
1

6

2

EMRALD

5

3

4

THE DIAMOND IBO’S
1

6

2

DIAMOND

5

3

4

BUSINESS MODEL OF AMWAY…

AMWAY

CUSTOMER’S

IBO’S

SPECIAL THANKS TO ….
PROF. VAISHALI MAM’M M.B.A.(AFMR & AITR)

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