PROJECT REPORT ON INDUSTRIAL EXPOSURE AMWAY GLOBAL

A project report sub !tte" !# t$e p%rt!%& 'u&'!&& e#t o' t$e re(u!re e#t 'or t$e %)%r" o' t$e "e*ree B%c$e&or o' Bus!#ess A" !#!str%t!o#

+,,-.+,//

Sub !tte" B01 GUNJIT 23ILWANI

U#"er t$e *u!"%#ce o'1 MS NE3A RALLI

B3ARTI 4IDYAPEET3 UNI4ERSITY5 SC3OOL O6 DISTANCE EDUCATION5

ACADEMIC STUDY CENTRE1 B4IMR5 NEW DEL3I

STUDENT UNDERTA2ING
I GUNJIT KHILWANI have completed the Industrial Exposure in AMWA under the !uidance o" Ms# NEHA $ALLI in the partial "ul"illment o" the re%uirement "or the a&ard o" ''A o" '(U) *+E) Academic *tud, -enter '(IM$) Ne& +elhi# This is an ori!inal piece o" &or. / I have neither copied and nor su0mitted it earlier else&here#

GUNJIT 23ILWANI

PRE6ACE

1ro2ect report is a ver, important part o" a ''A curriculum# It provides an optimistic icono!raph, "or 34uture5 existence throu!h &hich students are a0le to see the real industrial environment &hich !ives an opportunit, to relate theor, &ith practice# The main o02ective o" ma.in! pro2ect report is to develop s.ill in student 0, supplement to the theoretical stud, o" 0usiness mana!ement in !eneral and !ain real li"e .no&led!e a0out the industrial environment and 0usiness practices# The ''A pro!ramme provides student &ith a "undamental .no&led!e o" 0usiness and or!ani6ational "unctions and activities) as &ell as an exposure to strate!ic thin.in! o" mana!ement# In toda,s !lo0ali6e &orld) &here cutthroat competition is prevailin! in the mar.et) theoretical .no&led!e is not su""icient# 'eside this one need to have practical .no&led!e) &hich &ould help an individual in his7her carrier activities and it is true that 8Experience is 0est teacher9#

AC2NOWLEDGEMENT

8N: G::+ W:$K 4L:W* WITH:UT THE HEL1 4$:M 4A-ULT

MEM'E$*)

IN+U*T$ 1$:4E**I:NAL*) -:LLEGUE*) :$GANI*ATI:N AN+ 4$IEN+*#9

At the completion o" m, pro2ect) I present a detailed anal,sis on 7AMWAY GLOBAL89 It &as an enrichin! experience to ma.e this 1ro2ect $eport# Throu!h the means o" this &or. I extend m, sincere than.s to those &ho made it such a pleasant experience# I &ould also li.e to extend m, sincere than.s to Ms9 NE3A RALLI :Project *u!"e;) "or her !uidance and direction throu!h valua0le su!!estions and her enthusiastic encoura!ement throu!hout the entire period o" m, &or. and preparation o" this pro2ect# 4inall,) I &ould li.e to express !ratitude to m, 4riends and 4amil, &ho have directl, or indirectl, helped me# Their patience and support has 0een instrumental in accomplishin! this tas.#

CERTI6ICATE
This is to certi", that the pro2ect entitled 8 AMWAY GLOBAL9 su0mitted 0, GUNJIT 23ILWANI o" BBA I4.A has 0een done under m, !uidance and supervision in partial "ul"illment o" the re%uirement "or the a&ard o" B%c$e&or o' Bus!#ess A" !#!str%t!o# :BBA; De*ree#

The &or. and anal,sis mentioned in this pro2ect report have 0een underta.en 0, the candidate hersel" and necessar, re"erences have 0een reco!ni6ed and ac.no&led!ed in the text o" the report#

MS9 NE3A RALLI :PROJECT GUIDE;

CONTENTS

P%*e No E<ecut!=e su %r0

Scope > Object!=e

C$%pter./
;#; Histor,

I#tro"uct!o#

;#< 1rimar, o02ective ;#= *ocial responsi0ilit, ;#> A&ards and reco!ni6ation

C$%pter.+

Pro"ucts

<#; 1roducts o" Am&a, <#< *ellin! strate!ies o" Am&a, +irect sellin!

C$%pter.?

M%r@et!#* str%te*!es

=#; 1roduct related strate!ies =#< 1romotion strate!ies =#= +istri0ution strate!ies =#> Me!a mar.etin! o" Am&a, =#? A"ter sales services o" Am&a, =#@ Mar.etin! mix =#A -oncept o" direct mar.etin! o" Am&a,

C$%pter.A C$%pter.B

SWOT %#%&0s!s co#c&us!o# e#"%t!o#

6!#"!#*s %#" reco B!b&!o*r%p$0

<

C3APTER./ INTRODUCTION

/9/ T$e 3!stor0 o' A )%0

What does the &ord Am&a, meanB Am&a, is an a00reviation "or CAmerican Wa,C and &as coined in ;D?D 0, compan, "ounders) Ja, (an Andel and $ichard +e(os# *hort) uni%ue and eas, to remem0er) Am&a, has 0een re!istered as a corporate name and trademar. ever since#

Ja, (an Andel and $ichard +e(os) "ounders o" Am&a,

In the "ollo&in! decades) Am&a, -orporation success"ull, esta0lished itsel" as a leadin! multilevel mar.etin! 0usiness) 0uilt on stron! values and "oundin! principles that continue to sustain our compan, toda,# The 0usiness is 0uilt on the simple inte!rit, o" helping people lead better lives# We have lon! had a tradition o" opportunit, and success# Toda,) Am&a, is a multi0illionEdollar international 0usiness representin! "reedom and opportunit, to millions o" people in more than FG countries and territories around the &orld# We o""er over = million 'usiness :&ners the inspiration to !ro& those 0usinesses) and &e &or. hard to provide ne& and 0etter &a,s "or them to achieve their li"e !oals#

/CB,s A So&!" 6ou#"%t!o#

Ja, (an Andel and $ich +e(os 0e!an their 0usiness in the ;D?Gs usin! direct sellin! to mar.et NUT$ILITE +ietar, *upplements# What the, discovered more than >G ,ears a!o still remains true toda, that people and relationships are at the core o" an, success"ul 0usiness# Al&a,s searchin! "or ne& opportunities) in ;D?D $ich) Ja, and their associates loo.ed "or ne& product ideas to expand their 0usiness# The, reali6ed the, &anted products that ever,one needs) all o" the time products &hose "eatures and 0ene"its an,one could understand and communicate easil,# CThe products &e &ant must 0e ones that 2ust a0out an,one is "amiliar &ith and can sell# The examples that come to mind are laundr, and cleanin! products#C Ja, (an Andel The result o" their search &as Am&a,Hs "irst product) &hich toda, is called L#:#-# MultiE1urpose -leaner# It &as an instant sales success stor,) openin! up a &hole ne& &orld o" opportunit,#

With a stron! 0elie" in the po&er o" initiative and "ree enterprise) Ja, (an Andel and $ich +e(os created the Am&a, *ales and Mar.etin! 1lan# The, .ne& that an,one &ho &as &illin! to &or. hard could succeed usin! the same 0usiness methods# This simple idea %uic.l, !ained popularit, throu!hout the U*) and then -anada) as more and more people discovered &hat a real opportunit, the Am&a, 0usiness o""ered#

/CD,s
T$e E%r&0 Ye%rs As Am&a,Hs annual sales rapidl, expanded) exceedin! U*I?GG)GGG "or the "irst time) the compan, soon out!re& its 0asement o""ice in Ja, (an AndelHs home# +urin! this time) Am&a, moved to a lar!er "acilit, and 0e!an developin! ne& products) includin! *AFJ Laundr, +eter!ent) &hich &as launched in ;D@;# These Home -are products 0ecame 0i! sellers "or distri0utors and led to incredi0le !ro&th "or the compan,# Within a "e& short ,ears) the compan, had more than AGG emplo,ees) over <GG exclusive products and more than ;GG)GGG +istri0utors#

$ich and Ja, .ne& that the 0est &a, to interest people in the Am&a, 0usiness &as to 0rin! the opportunit, to them# *o) in ;D@=) the "amous C*ho&case 'usC 0e!an tourin! man, cities throu!hout the U*# *toc.ed &ith products and literature) it helped distri0utors introduce Am&a,Hs !ro&in! product line and uni%ue opportunities to people all over the countr,# In the ;D@Gs) the achievement and enterprise o" success"ul +istri0utors &as reco!ni6ed &ith the introduction o" +irect +istri0utor status# It 0ecame a model "or reE &ard and

reco!nition pro!rams that continue to 0e developed in Am&a, mar.ets around the &orld#

In the midst o" all this success and !ro&th) ho&ever) tra!ed, struc. as Am&a,Hs aerosol "actor, &as completel, destro,ed 0, "ire in ;D@D#

/CE,s
A Dec%"e o' Gro)t$ A"ter the "ire) Ja, (an Andel vo&ed to reconstruct the aerosol "actor, and to salva!e the 0usiness# The "actor, &as re0uilt and sales reached an estimated retail "i!ure o" U*I;GG million# The Am&a, product line &as also !reatl, expanded &ith NUT$ILITEJ +ietar, *upplements 0ecomin! a 0estEsellin! line) and the 1E$*:NAL *H:11E$*J catalo!s continued this !ro&th and diversi"ication# ', the mid HAGs Am&a, truc.s travelled more than =#<? million miles Kapprox ?#<= million .ilometresL shippin! products to millions o" +istri0utors# At the same time) the compan, expanded overseas) openin! mar.ets in ei!ht countries on three continents# Am&a, launched its second international a""iliate hal" a &orld a&a, in Australia) s&i"tl, "ollo&ed 0, the UK) Hon! Kon! and Mala,sia#

Am&a, Japan Limited KAJLL) "ounded in To.,o in ;DAD) %uic.l, 0ecame one o" Am&a,Hs lar!est mar.ets in terms o" product sales# As challen!in! as it &as to enter ne& mar.etsM"aced

&ith ever,thin! "rom di""erent lan!ua!es and la&s to di""icult distri0ution channelsMAm&a, continued to !ro& !lo0all,#

At home) in Ada) Michi!an) the Am&a, World Head%uarters complex !re& rapidl, to .eep up &ith the explodin! 0usiness# Am&a,Hs manu"acturin! "acilit, !re& to more than a mile lon!) and reall, 0ecame a sel"Econtained cit,) &ith its o&n po&er !enerator) &ater treatment plant) rec,clin! "acilit,) shuttle 0us service and "ire department#

/C-,s
T$e B!&&!o#.Do&&%r Dec%"e Estimated annual retail sales exceeded I; 0illion "or the "irst time# 1ressed 0, the demands o" increased !ro&th) Am&a, expanded its U* head%uarters in Ada) Michi!an and 0uilt a ne& cosmetic plant &here A$TI*T$ products are deE veloped and manu"actured# It also pioneered an entirel, ne& product cate!or,) &aE ter treatment s,stems) &ith ver, success"ul results# In "act) Am&a,Hs &ater treatE ment product line) under the e*prin! 0rand name) continues to hold a top position in the mar.etplace toda,#In the meantime) the +istri0utor incentive pro!ram &as enhanced to provide more re&ards to those +istri0utors &ho put !reater e""orts into !ro&in! their Am&a, 0usinesses#

Al&a,s concerned &ith the environment) Am&a, &as reco!ni6ed as a corporate environmental leader and promoter o" environmental education &hen it &on the presti!ious United Nations Environmental 1ro!ramme Achievement A&ard in ;DFD#

/CC,s T$e Ne<t Ge#er%t!o#

4ollo&in! in their "athersH "ootsteps) *teve (an Andel and +ic. +e(os succeeded Ja, and $ich as -hairman and 1resident o" Am&a,# At the same time) a ne& !eneration o" leaders also 0e!an to emer!e &ithin +istri0utor "amilies) 0uildin! upon and continuin! the successes o" their parents# The ;DDGs sa& continued expansion &ith estimated retail sales volumes reachin! U*I? 0illion# In -ali"ornia) NutriliteHs research into the lin.s 0et&een diet and health &as !iven a pu0lic "ace &ith the inau!uration o" the $ehn0or! -enter "or Nutrition and Wellness) &hich !ained &orld reno&n and &as later renamed the Nutrilite Health Institute#

Am&a,Hs !ro&in! role in Asia led Am&a, Japan to sponsor the ;DD? Na!ano Winter :l,mpic Games in Japan# Around the &orld) Am&a,Hs re!ional and countr, a""iliates continued to support their +istri0utors &ith the launch o" eEcommerce sites that extend the Am&a, opportunit, into c,0erspace# This remar.a0le decade culminated in the >Gth anniversar, o" the or!ani6ation in ;DDD#

+,,,s
Ne) 3or!Fo#s In <GGG) Am&a, prepared "or a ne& centur, and a ne& excitin! era# Almost ?G ,ears a"ter Am&a, 0e!an) the +e(os and (an Andel "amilies created a ne& structure to meet the challen!es o" this ne& centur,# A parent compan,) Alticor) &as esta0lished &ith su0sidiaries Am&a,) Nuixtar and Access 'usiness GroupO the latter to consolidate manu"acturin! and distri0ution "or the enterprise# At the helm o" Alticor are *teve (an Andel K-hairmanL and +ou! +e(os K1residentL) 2ointl, holdin! the :""ice o" the -hie" Executive# Toda, each area o" the 0usiness) includin! Am&a,) has the "reedom to 0uild on its stren!ths# Am&a, continues to 0e a leadin! compan, in the multilevel mar.etin! industr,# Its "undamental principlesO"reedom) "amil,) hope and re&ardOhold as true toda, as the, did in the ver, 0e!innin!#

/9+ Pr! %r0 object!=es

Am&a, is a !lo0al or!ani6ation &hich mar.ets products in international mar.et places# 1lannin! "or !lo0al mar.ets is a much more complex process than "or domestic mar.ets# It presents man, more ris.s than operatin! in a domestic mar.et &here !oods are sold in onl, one local area# Glo0al currencies# Thou!h it is said that consumer needs around the &orld are conver!in!) there are commonl, accepted needs and &ants that !o 0e,ond national 0arriers# The mar.etin! mix consists o" a complex set o" varia0les &hich an or!ani6ation com0ines to!ether in order to ensure that 0oth !lo0al and local corporate o02ectives are achieved# *tandardi6in! elements o" the mar.etin! mix is .e, to operatin! success"ull, in the !lo0al mar.etplace# As a result) common needs and &ants are identi"ied across countries# At the same time) parts o" the mar.etin! mix re%uirin! adaptation are identi"ied so that it can 0e developed to cater "or local di""erences# This re%uires a thorou!h understandin! o" ever, mar.et in &hich Am&a, operates# Man, advanta!es arise "rom competin! in a !lo0al mar.etplace) includin!Q Economies o" scale E over a lar!er output) costs per unit are decreased to provide the supplier &ith a competitive advanta!e# Am&a, is a0le to spread its research) development) technolo!, and distri0ution costs so that it can maximi6e its production e""icienc,# The development o" ne& 0usiness opportunities E in numerous countries) mar.ets are !ro&in! "aster than in Europe and America# :verseas mar.ets o""er the opportunit, to compete in di""erent mar.etplaces and extend the li"eEc,cle o" products# mar.etin! involves reco!ni6in! that people "rom all over the &orld have di""erent needs) i#e# valuesP customsP lan!ua!esP rules and

To meet the tastes o" consumers "rom di""erent nations E over recent ,ears there has 0een a conver!ence o" tastes resultin! in a more !lo0al mar.etE place# 4ounded in A+A) Michi!an in ;D?D) Am&a, has 0ecome one o" the lar!est H+irect *ellin!H companies in the &orld &ith nearl, three million Independent +istri0utors# +irect sellin! involves dealin! &ith customers H4aceEtoE"aceH so that personal attention can 0e !iven to each o" their re%uirements# +irect sellin! di""ers "rom traditional retailin! as it o"ten involves sellin! to consumers on a oneEtoEone 0asis) usuall, in the com"ort o" their o&n homes# The industr, has !ro&n rapidl, over recent ,ears and is currentl, estimated to 0e &orth R>G 0illion a ,ear &orld &ide# This case stud, examines this !ro&th &hich has helped Am&a, to 0ecome one o" the industr,Hs mar.etEleaders in"luenced 0, chan!in! li"est,les) demo!raphics and economic recession# +irect sellin! "or Am&a, is underta.en 0, its o&n independent distri0utors# Their o&n income is 0ased on the !oods the, sell) 0onuses paid 0, Am&a, and the volume o" sales !enerated throu!h their o&n distri0utor net&or.# These distri0utors sell to people the, .no& or meet# Am&a, distri0utors operate as their o&n independent 0usinesses# Am&a, is a lon!Estandin! mem0er o" the +irect *ellin! Association K+*AL in the UK and $epu0lic o" Ireland# The +*A re!ulates the industr, 0, providin! a -onduct endorsed 0, the :""ice o" 4air Tradin! K:4TL# Am&a, has developed into a !lo0al corporation manu"acturin! over >?G products and emplo,in! more than ;<)GGG people in over FG countries and territories around the &orld# To suppl, a !lo0al 0ase o" customers) Am&a, manu"actures products ran!in! "rom household cleaners to cosmetics) "ood supplements to house &ares# It also mar.ets products on 0ehal" o" other leadin! manu"acturers) such as Ken&ood) Ai&a and 1hilips# -ode o"

/9? Soc!%& respo#s!b!&!t!es per'or e" b0 AMWAY O#e b0 O#e C% p%!*# 'or C$!&"re#
:ne ', :ne S is Am&a,5s Glo0al -ampai!n "or -hildren# In each o" the FG countries and territories that Am&a, is present it ta.es up and supports these -hildren o" Hope# In India) this &or. is carried out under the 0anner o" Am&a, :pportunit, 4oundation KA:4L a re!istered non pro"it or!ani6ation# All Am&a, emplo,ees and distri0utors are volunteers o" A:4#

A )%0 Opportu#!t0 6ou#"%t!o# :AO6;

A -orporate *ocial $esponsi0ilit, Initiative o" India5s Leadin! +irect *ellin! 4M-G -ompan, 4ormer 1resident) +r A0dul Kalam) has recentl, 0een %uoted sa,in! that instead o" addressin! Kthem asL 3street children5) it &ould 0e 0etter to re"er to them as 3children o" hope5# I" &e stretch this de"inition a 0it) that is &hat &e are all a0out S reachin! out to all -hildren o" Hope in the 0est manner at our disposalQ :ne ', :ne S is Am&a,5s Glo0al -ampai!n "or -hildren# In each o" the FG countries and territories that Am&a, is present it ta.es up and supports these -hildren o" Hope# In India) this &or. is carried out under the 0anner o" Am&a, :pportunit, 4oundation KA:4L a re!istered non pro"it or!ani6ation# All Am&a, emplo,ees and distri0utors are volunteers o" A:4# And &h, &or. "or childrenB Hal" o" the &orld5s poor are children# Ever, ,ear) ;G million children do not live to see

their "i"th 0irthda,# More than ;;? million children don5t have access to the most 0asic education# With presence in most o" the countries across the !lo0e) Am&a, "inds itsel" in a position to "ocuses its philanthropic e""orts so as to maximi6e a positive and sustaina0le impact on societ,# The pro!ram pulls to!ether all o" our resources S 'usiness :&ners) emplo,ees) a""iliates and customers S to ma.e this happen# Each o" Am&a,5s mar.ets is "ree to decide in &hich sphere it &ould li.e to concentrate its resources# 'ut in essence) :ne 0, :ne pro!ram is desi!ned to 0uild local partnerships) addressin! issues speci"ic to children in their communit, S Live) Achieve) Learn) and 1la,# As o" +ecem0er =;) <GG@) &e have provided hope and opportunit, to ? million children# +onated more than @GG)GGG volunteer hours to children5s pro!rams# -ontri0uted more than I=D million to children5s causes# In each countr,) success is measured 0, impact S &hether it is the <?G)GGG children in West Michi!an &hose lives have 0een chan!ed throu!h the campai!n) the F?)GGG 0lind children &ho received 'raille text0oo.s in India) the ;);=? children &ho received cle"t palate sur!er, in Thailand) the ;AG)GGG children in -hina &ho &ere !iven the opportunit, to attend school) or the DG)GGG 0o,s and !irls in developin! countries &ho received vaccines that are !ivin! them a "i!htin! chance# N%t!o#%& Project 'or t$e B&!#" In India) this &or. is carried out under the 0anner Am&a, :pportunit, 4oundation KA:4L#Under its National 1ro2ect "or the 'lind) A:4 hasQ Ensured that around F?)GGG visuall, challen!ed schoolE!oin! children have had access to 'raille text0oo.s# This

pro2ect has covered the "ollo&in! statesQ $a2asthan) +elhi) Maharashtra) Har,ana) Uttar 1radesh) 1un2a0) 'ihar) Gu2arat) Tamil Nadu) Andhra 1radesh) Karnata.a and Madh,a 1radesh# This &or. had 0een carried out in partnership &ith the +elhiE0ased All India -on"ederation o" the 'lind KAI-'L and the Mum0aiE0ased National Association "or the 'lind KNA'L# T *et up computer centers "or visuall, challen!ed at T All India -on"ederation o" the 'lind S Ne& +elhi

Antar2,oti 'ali.a (id,ala,a S 1atna) 'ihar $ama.rishna Mission 'lind 'o,5s Academ, S Kol.ata) West 'en!al $a2asthan Netraheen Kendra *an!h S Jaipur) $a2asthan National Association o" 'lind S Trivandrum) Kerala

+onated Audio text0oo.s "or 'an!alore Universit, and extended support to the Karnata.a Wel"are Association "or the 'lind KKWA'L in conductin! a cultural event in 'an!alore in <GG;

1resented a <GEvolume 'raille set o" the We0ster5s +ictionar, in En!lish) to the +elhi 'lind *chool and donated a 'rillion machine to the Indian 'lind *chool at Madurai# *upported +r# *hro""Hs -harit, E,e Hospital in conductin! communications &or.shops "or the 0lind in <GG<) and a -ar rall, "or 0lind children at *urat# +istri0uted ;GGG 'raille .its "or 0lind children in Kerala) and ena0led the stateE level chess tournament "or the 0lind) in Tamil Nadu#

:r!ani6ed cataract operation camp at *urat) and "ree e,e camps at Erode) 'alasore) +elhi and *ili!uri E over <?)GGG persons had "ree e,e chec. ups and around ?GG "ree operations &ere carried out# 4or this &or. to&ards the visuall, challen!ed) A:4 has received a citation and a&ard "rom the World 'lind Union KW'UL) in +ec G=# A:4 is the onl, Indian NG: to 0e so reco!ni6ed 0, W'U#

Project Su#r!se
The o02ective is to identi", one orphana!e7institution at each location &here Am&a, has a modestl,Elar!e o""ice K?< citiesL# :nE!oin! assistance to 0e provided in education) healthcare and vocational trainin! under the "ollo&in! headsQ

Health care Education and vocational trainin! *a"e drin.in! &ater -hildren5s +a, and A:4 +a, cele0ration &ith Am&a, sta"" / Am&a, 'usiness :&ners +onation o" clothes) 0oo.s etc# on voluntar, 0asis

3e%" O''!ce Am&a, :pportunit, 4oundation Dth 4loor) Express Trade To&ers ;) 1lot ;?E;@) *ector ;@A) Noida) N-$ +elhi <G;=G; Tel#Q U D;E;<GE=GD @@G; 4axQ D;E;<GE=GD @??? -ontact 1ersonQ Mr# $a2 Narain

Re*!o#%& O''!ce . Nort$ Am&a, :pportunit, 4oundation ?) ++A Local *hoppin! -entre) :.hla -ommercial -omplex) 1hase II) Ne& +elhi ;;GG<G Tel#Q UD;E;;E><< D? DGG 4axQ UD;E;;E<@ =F F; >; -ontact 1ersonQ Mr# *hivam Lall Re*!o#%& O''!ce . E%st Am&a, :pportunit, 4oundation) The Le!ac,) 4irst 4loor) <? A *ha.espeare *arani) Kol.ataAGGG;A Tel#Q D;E==E=G<;?@@@) =G<;??GG

4axQ D;E==E=G<;???A -ontact 1ersonQ Ms# *ar0ani 'hattachar,a

Re*!o#%& O''!ce .West Am&a, :pportunit, 4oundation CLandmar.C) AEWin!) Ground 4loor) AndheriEKurla $oad / *uren $oad) Junction :" Western Express Hi!h&a,) Andheri East) Mum0ai >GGGD= Tel#Q D;E<<E@@@F;@GG 4axQ D;E<<E@@@F;??? -ontact 1ersonQ Mr# Ji!nesh Mehta Re*!o#%& O''!ce .Sout$

Am&a, :pportunit, 4oundation V <>=) CAissh&ar,a Am0assadorC FG 4eet $oad) +e"ence -olon,) Indirana!ar) 'an!alore ?@GG=F Tel#Q D;EFGE=G?@;DGG 4axQ D;EFGE<?<A;DDD -ontact 1ersonQ Mr# *# (is&anath

/9A A)%r"s A#" Reor*%#!F%t!o#

1resented the Millennium :utstandin! *ervice A&ard <GGG) 0, the All India -on"ederation "or the 'lind KAI-'L) in reco!nition "or &or. carried out "or the visuall, challen!ed# The Indian $ed -ross *ociet,) :rissa a&arded A:4 a memento / certi"icate "or conductin! a me!aE'lood +onation camp o" F;@ units on >th Ma,) <GG=# The *urat $a.tdaan Kendra "elicitated Am&a, India at their annual "unction on ?th :ct) <GG=) "or the lar!est num0er o" donors at a 'lood +onation -amp K'+-L held 0, an, "inancial and commercial institution and industr,# The Ma,or o" *urat *nehlata -ho&an E presented a troph, and a certi"icate o" appreciation# Am&a, also received the Ha2ee *ulaiman :mar Memorial Ever $ollin! *hield) 0, the Madurai Medical -olle!e# Am&a, &as the :NL institutions# 1resented an a&ard 0, the World 'lind Union KW'UL) "or sterlin! contri0ution to improve and elevate the %ualit, o" li"e o" visuall, impaired childrenH) at a "unction in +elhi on +ec <nd <GG># The a&ard included a citation and a lar!eE si6ed statue o" *aras&ati) the Goddess o" Kno&led!e) &as presented 0, the Lt Governor o" +elhi) *hri (i2ai Kapoor# W'U is an apex 0od, "or the visuall, impaired that en2o,s consultative status &ith the United Nations# The -entral $ed -ross 'an.) -uttac. a&arded Am&a, :pportunit, 4oundation &ith a troph, and -erti"icate "or contri0utin! the hi!hest numE 0er >GG units to corporate entit, to conduct a '+- on such a scale E rest o" the camps are held 0, educational

their 'lood 'an.#

C3APTER + PRODUCTS

+9/ PRODUCTS O6 AMWAY

A )%01 A Wor&" o' Pro"uct
Am&a, o""ers a ran!e o" exclusive) competitive 0rands that meet proven customer needs around the &orld# 4rom nutritional supplements to &ater treatment) cosmetics to cleanin! products) these 0rands are the solid "oundation "or a success"ul) inE dependent retail 0usiness#

A )%0 A#" D!rect Se&&!#*

Am&a, products are sold directl, to consumers 0, Independent 'usiness :&ners KI':sL or sales representatives throu!h oneEonEone) inEperson sellin! or via the internet

NUTRILITE Pro"ucts

NUT$ILITE is the &orldHs leadin! 0rand o" vitamin) mineral and dietar, supplements K0ased on <GG@ salesL# Nutrilite is the onl, !lo0al vitamin and mineral 0rand to !ro&) harvest and process plants on their o&n certi"ied or!anic "arms# Nutrilite has made supplement products usin! natural plants and plant concentrates since ;D=>#The same hi!h %ualit, products produced 0, Nutrilite are sold under the NUT$IWA certain countries# 0rand in

Nutr!&!te 3e%&t$ I#st!tute

The Nutr!&!te 3e%&t$ I#st!tute KNHIL is a &orld&ide colla0oration o" scientists dedicated to helpin! people achieve optimal health E throu!h research) education) and practical) personali6ed solutions#

Ce#ter 'or Opt!

%& 3e%&t$

The Ce#ter 'or Opt! %& 3e%&t$ is a &orld class teachin! and trainin! "acilit, &ithin the Nutrilite Health Institute# *cience) nutrition) "itness) research and people are 0rou!ht to!ether "or a oneEo"EaE.ind experience "ocused on optimal health and the NUT$ILITE 0rand# There are products "or .ids also) at the earl, a!e o" a person KchildhoodL needs some proteins and vitamins "or a proper !ro&th#

Spr!#* Pro"ucts

The sprin! Water 1uri"ier is the "irst inEhome s,stem to com0ine ultraviolet li!ht technolo!, &ith a patented multiE sta!e car0onE0loc. "ilter to provide the %ualit, drin.in! &ater ,our "amil, deserves# The sprin! Water 1uri"ier destro,s more than DD#DDW o" &ater0ourne diseaseEcausE in! 0acteria and e""ectivel, removes more than ;>G conE taminants# :ther s,stems treat &ater sprin! puri"ies it#

spr!#* W%ter Pur!'!er Tec$#o&o*0

sprin! products are the result o" nearl, <G ,ears o" research and technolo!ical 0rea.throu!hs# 'e!innin! in ;DD@) a si!niE "icant investment &as made in emer!in! &aterErelated technolo!ies that led to the innovative sprin! s,stem# The research &as timeE consumin! and costl, 0ut let to a specE tacular end resultEa product that is li.e no other in the mar.etplace#

!Coo@ Pro"ucts
i-oo. -oo.&are is the healthiest &a, to coo. an,&here in the &orld# Trends indicate that consumers are 0ecomin! more "ocused on health, and sa"e "oods# The !Coo@ Coo@)%re 0rand delivers on its promise o" %ualit, and nutrition#

!Coo@ Tec$#o&o*0 4ITALO2

coo.in! method E compared to traditional coo.in! methods) the i-oo. (ITAL:K coo.in! method loc.s in over a third more essential vitamins and minerals#

DURAMIC nonstic. coatin! s,stem E is the tou!hest) lon!est lastin! nonstic. coatin! in the &orld# OPTITEMP evenl,# The 0ase E the 0ase improves is heat

distri0ution and retention so "oods and sauces coo. :1TITEM1 0ase universall, compati0le &ith an, coo. top#

3o e C%re Pro"ucts
Ever,one loves clean# -lean sa,s ,ou are in control o" ,our li"e and ,our surroundin!s# Am&a,Hs Home -are 0rands provide complete cleanin! s,stems that "it &ith ever,oneHs needs# Their versatile) e""ective product s,stems o""er the "eatures and 0ene"its consumers &ant# No matter &hat ,our li"est,le) Am&a,Hs Home -are products ma.e li!ht &or. o" ,our cleanin! chores &ith the SA-5 LOC and D!s$ Drops 0rands#

COSMETIC PRODUCTS G ARTISTRY

*ince its launch in ;D@F) the A$TI*T$ 0eaut,# A$TI*T$ the s,ner!, o" health and 0eaut,# 0rand has 0ecome a !lo0al leader in presti!e

sets standards in s.in science and research and is comE mitted to

ARTISTRY

A#" D!rect Se&&!#*

A$TI*T$

is the onl, directEsell 0rand classi"ied in the presti!e cate!or,) &ith

over U* I; 0illion in annual sales#

ARTISTRY Sc!e#ce
A$TI*T$ has researched) ac%uired and developed the most advanced technolo!, and s.in

tools to evaluate s.in and the per"ormance o" the 0rand products# A$TI*T$

science and research is conducted in FD $esearch and +evelopment "acilities around the &orld) representin! over >)?GG collective ,ears o" research and development experience#

ARTISTRY Br%#" Wor&")!"e

With more than <?G uni%ue products sold in over ?G mar.ets around the &orld) the A$TI*T$ 0rand has attained an international "ollo&in! o" lo,al users# *uper0 0rand a reputation as %ualit, and devotion to excellence have earned the A$TI*T$

one o" the most admired companies in the s.in care and cosmetics industr,#

+9+ SELLING STRATEGIES IN AMWAY

D!rect se&&!#* c%tc$!#* up !# I#"!%

Turnover and !ro&th trends in direct sellin! in India have 0een impressive) a pointer to the tremendous potential this concept has More importantl,) that the trend is "ast catchin! up here too# Thou!h the direct sellin! industr, has existed "or over ;? ,ears in India) the entr, o" international companies and their activities in the last "ive ,ears has !iven !reater visi0ilit, to the industr,) &hich is still considered to 0e at a nascent sta!e in India# et durin! the last t&o ,ears) the trends have 0een encoura!in! to the supporters o" direct sellin!) &hose 0asic philosoph, is to eliminate middlemen in the sale o" commodities) and instead provide emplo,ment to a lar!e num0er o" trained sales sta"") &ho sell products directl, to consumers either throu!h !roup meetin!s or 0, hostin! tea !atherin!s at their homes# Accordin! to the Indian +irect *ellin! Association KI+*AL) the total turnover throu!h direct sellin! in India in ;DDFEDD &as I;>G million# As a!ainst the expected !ro&th o" an,&here 0et&een =G and ?G per cent) it re!istered a !ro&th o" =F#? per cent "or a turnover o" I<GG million in ;DDDE<GGG# 4or <GGGEG;) the !ro&th is

pro2ected at >G to @G per cent# *imilarl,) the !ro&th in the num0er o" sales people has 0een impressive durin! ;DDFE<GGG# 4rom a "ive la.h stron! direct sellin! "orce in ;DDFEDD) it has !ro&n to seven la.hs in ;DDDE <GGG) a clear >G per cent# 4or <GGGEG; this is pro2ected to !ro& 0, ?G to @G per cent#

+oes this indicate that the traditional industr, is losin! its mar.et share to the ne& philosoph, o" ta.in! !oods directl, "rom the manu"acturer to the consumerB While it ma, not 0e so lar!e as to create panic or alarm the &ellEesta0lished traditional pla,ers) it has created a place "or itsel" in the hearts o" the people# Interestin!l,) the I+*A sa,s durin! ;DDDE<GGG) it received as man, as <A %ueries "rom national and international companies expressin! interest in openin! a direct sellin! 0usiness) or to start a ne& division "or direct sellin! &ithin their existin! 0usinesses in India# *et up in ;DD<) the I+*A is an association "or companies that sell products directl,# It &as started 0, t&o companies XLotus Learnin! Kexclusive distri0utors o" World 0oo.LH) and XL' 1u0lishers and +istri0utors Kexclusive distri0utors "or Time Li"e 'oo.sLH# In ;DD? multinational companies such as Avon) Am&a, and :ri"lamme 2oined the association# *ince then) some more li.e the Tupper&are) Her0ali"e) Modicare and *unrider have 2oined the association# :" its nine mem0ers) three are "ull, Indian companies o&ned and run 0, Indians and three are &holl, o&ned su0sidiaries o" "orei!n companies# All o" them manu"acture in India either throu!h their o&n "acilities or throu!h contract manu"acturers#

Another si!ni"icant development is the emer!ence o" direct sellin! as a &omenHs

0astion# The direct sellin! industr, in India comprises A< per cent &omen) <> per cent couples) and "our per cent men# In the U#*#) this is @D#A per cent &omen) ;G#> per cent couples) and ;D#D per cent men# In t&o ,ears) Am&a,) has emer!ed as IndiaHs leadin! direct sellin! compan, and re!istered a turnover o" a0out $s# <?G crores K*eptem0erEAu!ustL# It has am0itious plans o" reachin! a tar!et turnover o" $s# ;)GGG crores) much 0e"ore its ori!inall, tar!eted ,ear <GG># The compan, has invested over I=? million in India o" &hich I@ million is in the "orm o" direct "orei!n investment) and I> million is "or trans"errin! technolo!,) "ree o" cost) to contract manu"acturers# It has over =< o""ices and a reach o" =?< locations) and 0, <GG;Eend it envisa!es an o""ice in ever, cit, &ith a population o" ;G la.hs and a0ove# It has trained =#@G la.h distri0utors last ,ear) over&helmin! ma2orit, o" &hom &ere &omen# A!ainst this 0ac.!round the industr, expects to !ro& at ?G to ;GG per cent rate "or the next =E? ,ears# Given the socioEeconomic conditions) the "act that a lar!e proportion o" the countr,Hs &omen are house&ives) &ho can spare some time to ta.e up concepts such as direct sellin!) and the !ro&in! need and realisation to supplement "amil, incomes) are seen as encoura!in! "actors "or its !ro&th potential# (ie&ed a!ainst the 0ac.drop o" a IFG 0illion !lo0al direct sales turnover alread, achieved last ,ear) the "uture appears 0ri!ht# +irect sellin! industr, see.s le!al "rame&or. THE multiEla,er mar.etin! KMLML companies are &orried that their le!itimate 0usinesses are hampered 0ecause their direct sellin! methodolo!, is con"used &ith the mone, rollin! schemes or the pri6e chit "und schemes# This misconception has arisen partl, due to lac. o" in"ormation7a&areness on the "unctionin! o" the MLM and lar!el, "or &ant o" a le!al "rame&or. that chec.s the a0use o" direct sellin! mechanism 0, unscrupulous elements#

The latter "actor is a ma2or issue con"rontin! the !enuine MLM companies) accordin! to Mr $athin Mathur) General Mana!er) *ales o" the $s ;=GEcrore Modicare Ltd) the +elhiE0ased MLM compan,# 1ressed a!ainst this 0ac.!round) the nascent MLMs comin! under the Indian +irect *ellin! Association KI+*AL &ere movin! &ith the Government to put in place a le!islation that &ould prevent the misuse7a0use o" the MLM s,stem 0, the unscrupulous operators &ho had sou!ht to "leece the consumers throu!h X1,ramid schemesH in the !ar0 o" direct sellin!) said Mr Mathur) &ho &as here on a mar.etin! 0in!e "or ModicareHs direct sellin! o" consumer !oods) includin! the personal care products#

Mr Mathur told ne&spersons that I+*A had 0een &or.in! &ith the 4I--I in evolvin! a le!al mechanism and &ith the support o" the 4I--I) the association had alread, put up a dra"t le!islation to the Government# No& the Government &as to suita0l, come out &ith its le!islation) &hich had to 0e put in place in timeP other&ise) the consumersH "aith in this nascent 0ut potential industr, &ould 0e lost) he added# The main stren!th and the ethics o" direct sellin! 0usiness) said Mr Mathur) stood %uite distinctivel, apart "rom that o" the X1,ramid sellin! s,stemsH# While the direct sellin! o""ers a 0usiness opportunit, 0ased on the sale o" products as &ell recruitment o" XconsultantsH or a!ents) the re&ards o" X1,ramid s,stemH emanates "rom the addition o" ne& participants and their investments not necessaril, "rom the sale and distri0ution o" real products and the latter schemes need not have commerciall, via0le products# The I+*A consists o" ;= mem0erEMLM companies o" 0oth Indian and MN-s and) accordin! to Mr Mathur) in the a0sence o" an, set code o" conduct evolved "or direct

sellin! in India) these I+*A mem0ersH 0usiness practices are lar!el, !overned 0, the norms "ixed 0, the &orld "ederation o" direct sellin! associations "ormed in ;DD<# Thou!h the MLM concept in India made its &a, some ;? ,ears a!o) the direct sellin! too. o"" stron!l, "rom ;DD@ onl, and the 0usiness volume too steadil, .ept raisin! "rom $s =GG crore six ,ears a!o to $s <)GGG crore no&# The potential "or direct sellin! is hu!e K!iven the vast manpo&er and human resource availa0le in teemin! unemplo,ed7 underemplo,ed num0ersL 0ut it is ,et to 0e "ull, exploited) as this s,stem &ould understand the consumersH needs 0etter#

Indian companies enterin! into direct sellin! have understood the needs o" the consumers and their interests 0etter and accordin!l,) the mem0ers ta.en in as consultantErecruits are !iven "ocussed trainin!# Modicare currentl, has a0out D#? la.h persons as XModicare consultants propa!atin! its consumer !oods ran!in! "rom personal care) home care) autoEcare products and these persons are 0ac.ed up 0, ?< XModicare *uccessH centres that suppl, the products and serve as trainin! centres# In Tamil Nadu) it has product centres in -hennai) Madurai and -oim0atore and &ill soon locate one in Tirunelveli#

D!rect se&&!#* '!ts !#to I#"!%# ps0c$e

The !reat Indian middle class) &ith little inheritance) is the ma2or am0assador o" direct sellin!# Thou!h direct sellin! is a concept considered alien to Indian culture) the sense o" "inancial insecurit, o" Indians) especiall, re!ardin! their postEretirement li"e) ma.es

them the ideal candidates to underta.e this innovative method) *tephen 'eddoe) +irector) +istri0utor $elations and Mar.etin!) Am&a, India Enterprises) tells G# *at,amurt,# In Europe) FG per cent o" the last dra&n salar, !ets 0ac. to the emplo,ees as penE sion a"ter their retirement# 'ut the situation in India is not ros,# Most o" the people are at the merc, o" their children or .ith and .in# Earnin! somethin! su0stantial "or the old a!e is almost in ever, IndianHs mind# This has o""ered us the !reatest opportunit,# -hina is the 0i!!est direct sellin! mar.et in the &orld as a similar sense o" insecurit, prevails# It is &a, ahead o" India 0ecause it too. to this concept ;? ,ears a!o# CIn ;D?D &e introduced this method in the United *tates and !randsons and !reat !randsons o" man, o" the earl, distri0utors are no& our proud am0assadors This has almost 0ecome a le!ac,# In India) it is so "ast catchin! up) &ith >#? la.h direct sellin! a!ents) that &e have am0itious plans o" openin! an o""ice almost once in three da,s and have a sales tar!et o" $s# =)GGG crore 0, <G;< "rom the current $s#A=F crore)C sa,s Mr#'eddoe# A"ter all) ever, entrepreneur is also a consumer and all o" us &ould li.e to 0ar!ain li.e hell to !et the 0est price# We &ant value "or the price and &e are ver, care"ul &ith the mone,# (er, "e& splur!e# +irect sellin! !ives an opportunit, to ma.e additional income as consumers# :ur mantra has 0een Csel"Ereliance and enterpriseC and this "irml, "its the 0ill amon! Indians Women) especiall, unemplo,ed and hail "rom middle class) are our 0est entrepreneurs# These &omen &ant to supplement their "amil, income# And the, have a vision and a lon!Eterm plan# -an I help the "amil, 0u, a houseB *end m, children to 0etter school and provide them 0etter educationB Man, middle class people have alread, 0een supplementin! their income 0, 0ecomin! insurance a!ents and 1eerless a!ents as direct sellin! is nothin! 0ut a partE time

avocation# The, &ant to leave somethin! "or their children and this direct sellin! 0usiness itsel" 0ecomes an asset "or them to leave "or posterit,# :" course) Mr# 'eddoe is not so sure o" their enterprise# It depends upon their individual needs# He considers -oim0atore and *urat as Ct&o islandsC o" enterprise# And the, have the hi!hest per capita income in the countr,# Advertin! to the spread o" direct sellin!) he compares it &ith other mar.ets# Ta.e "or instance) mar.et "or the 4ast Movin! -onsumer Goods K4M-GL# While north accounts "or lionHs share o" =G per cent "ollo&ed 0, the &est) south is onl, the third &ith <G per cent to << per cent share# East is the hardest mar.et &ith 2ust ;; per cent# The surve, &ith re!ard to direct sellin! has revealed that all the "our re!ions are Cexactl, the same#C There is almost an e%uita0le 0alance and it loo.s that direct sellin! has 0een accepted all over the countr,#

:n the !reat ur0anErural divide) Mr#'eddoe o0serves that there seems to 0e a !reater need "or direct sellin! in '; cities and smaller to&ns# There is &illin!ness to &or. harder in these places# In villa!es and small to&ns there is more time &hereas metros do not have the same leisurel, li"est,le# He considers that the sense o" securit, amon! the people in metros is comparativel, much hi!her than the other parts o" the countr,# Metros have lesser needs# The "uture o" direct sellin! lies in small locations# The AMWA India Enterprises "ranchise is a !lo0al leader in multilevel mar.etin!#

The direct sales "ranchise is a part o" the U*E0ased Am&a, -orporation &hich 0rou!ht a0out the concept o" direct sellin! at the convenience o" the customer# 4rom the past >? ,ears) Am&a, -orporation has ena0led people to have a 0usiness o" their o&n)

providin! home care and health care products o" repute# :ri!inall,) the multi level mar.etin! "ranchise &as .no&n "or direct sellin! o" its household cleanin! productsP 0ut as time &ent on hundreds o" hi!hE%ualit, products and 0rands &ere introduced to ma.e the Am&a, India Enterprises 4ranchise &hat it is toda,# The Am&a, -orporation created a 0usiness opportunit, "or direct sale o" products to others and later started the concept o" sponsorin! people to 2oin the 0usiness# The Am&a, India Enterprises "ranchise) a &holl, o&ned su0sidiar, the U*AE 0ased Am&a, -orporation) &as esta0lished in ;DD?) and commenced commercial operations in Ma, ;DDF# Toda, it has 0ecome the lar!est direct sellin! 4M-G -ompan, in India# With over >)?G)GGG active independent Am&a, 'usiness :&ners) the Am&a, India Enterprises 4ranchise has !ro&n to its present num0er o" A> o""ices and ?? cit, &arehouses# *ervicin! over <GGG cities / to&ns o" India) this direct sales "ranchise provides a ;GG per cent mone, 0ac. !uarantee i" the product ids "ound unsatis"actor,#

Toda,) Am&a, India Enterprises "ranchise promotes individual entrepreneurship throu!h its novel direct sellin! approach o" &orld class consumer products# Am&a, supplies all its products "rom &ithin India) there0, providin! motivation to the local manu"acturin! industr,

C3APTER . ? MAR2ETING STRATEGIES

?9 M%r@et!#* Str%te*!es

?9/ Pro"uct str%te*!es

The "amous product in Am&a, is NUT$ILITE# In the :l,mpic Games) it had 0een the onl, desi!nated health "ood "or -hinese sports dele!ation# NUT$ILITE is an authorit, on the nutritional "ood all over the &orld# Wh, does this .ind o" product 0ecome "amousB

This) o" course) can not 0e separated "rom the mana!ement o" Am&a,# The strict mana!ement "or %ualit, is a !uarantee o" Am&a,) &hich &ill produce e""icient and hi!hE %ualit, !oods# In order to produce natural) health,) nutritional "ood) Am&a, have set up the speciali6ed research centers and la0oratories#

Artistr, is the 0rand o" the "acial care product and cosmetics# (arious dail, necessities are provided "or consumers# Man, products are accordin! to -hinese people5s attitudes and pre"erences &hich are di""erent "rom American5s# An, o" them is !iven assurance o" %ualit,# The $/+ center is the 0irthplace &hich is a ma2or discover, and 0rea.throu!h o" the s.in and the 0eaut, o" science# In <GGG) Artistr, ran.ed one o" the "ive "acial care products and cosmetics in the &orld) and 0ecame one o" the trends o" leadin! 0rands in the 0eaut, care products all over the &orld#The product o" Am&a, is environmental protection) sa"et,) and the concentration# It is suita0le "or ever,one# -onsumers can use the products the, choose at ease#

?9+ Pro ot!o# Str%te*!es

The sellin! method o" Am&a, is +emonstration Act o" 1roducts -ontrast Am&a, stresses the superiorit, o" their products 0, comparin! and testin! the %ualit, o" products &ith others) &hich 0rin!s a 0i! impact to customs# 4or exampleQ sho&in! the shampoo o" Artistr, compared &ith other &ellE.no&n shampoo on the mar.et) consumers can see the phenomenon and 2ud!e &hether the shampoo o" Am&a, is !ood or 0ad# As a result) consumers &itness a 0etter %ualit, o" Am&a, products# As &e all .no& that Am&a, is "amous "or its +irect *ellin!# In -hinese mar.et) Am&a,5s sellin! &as limited 0, !overnment# 4or adaptin! itsel" to ne& conditions) Am&a, set up its "ranchised stores and hired salesman# We can see Am&a,5s "ranchised stores in the 0i! cities and the, are uni"orm decoration# Esta0lishin! store not onl, increased the transparenc, o" compan,) 0ut also improved the ima!e o" compan,# And it made up the disadvanta!e o" -hinese transport s,stem# This ne& method 8"ranchised stores U hirin! salesman9 ma.es consumers 0u, !oods directl,) and en2o, the preEsales and a"ter sales service#

Am&a, 0e!an to invite some sport stars to ma.e the advertisements# +urin! the time o" :l,mpic Games) these advertisements created the ima!e o" NUT$ILITE success"ull,# Am&a, also !rasped the opportunit, &hich &as held a lar!eEscale musical to promote the product o" Artistr,#

?9? D!str!but!o# str%te*!es

As ever,one .no&s that computer pla,s an important role on promotin! the development o" direct sellin!# *o Am&a, controls the shop sales and inventor, throu!h the Internet# Am&a, esta0lished its o&n lo!istics center# It is convenient "or distri0utors to distri0ute the !oods# Am&a, encoura!es more people to 2oin) and open more "ranchised and chain stores# It is necessar, to 0uild a 0i! commercial net&or. and attract more consumers# The "ranchised stores can 0rin! convenience to people# 4or instance) i" people 0u, somethin! the, do not satis",) the, can return) consult or complain these products#Am&a, maintains the relationship &ith consumers all over the &orld) and al&a,s pa,s attention to their needs 0, the Internet or telephone#

?9A Me*%

%r@et!#* o' A )%0

8In the competition o" the "uture mar.et) those companies) &hich have the political po&ers and the pu0lic connections) &ill &in#9 This is the "amous &ord said 0, 1hilip Kotler# American !overnment supports Am&a,# It o0tains more commercial opportunities throu!h the !overnment5s e""ort# Am&a, has an excellent sta"") and the, set a !ood example and maintain the relationship &ith consumers in pu0lic# There is no dou0t that Am&a, has a %uic. development and a !ood "uture# Am&a, ta.es part in the activities o" charit,) and pa,s tax activel,# Am&a, also pa, attention to the environment) children) and health# The runnin! match o" Nutrilite is a "ad and promotes the &ord o" health# The pu0lic activities &hich are supported 0, Am&a, are more than AAG#4rom these) the consumers in -hina 0elieve that Am&a, is an honest and trust&orth, compan,#

?9B A'ter . s%&e ser=!ces o' A )%0

Am&a, emphasi6es on a"terEsales services and &ants to 0ecome ever,one5s !ood "riend# I" consumers use the cosmetics) Am&a, &ill 0e a pro"essional 0eautician "or them to ma.e a "acial care on a re!ular time schedule# I" consumers use the health "ood o" Nutrilite) Am&a, &ill 0e a dietitian "or them to service their health allEround# I" consumers use the home care product) Am&a, &ill provide a pro"essional "amil, consultant "or them# I" someone needs an, product o" Am&a,) he can call the special telephone or thou!h the Internet searchin!# Am&a, &ill send the product &hich consumers choose to their houses &ithout pa,ment# A"ter the product sellin! &ithin Ada,s) i" it has the pro0lem o" %ualit,) consumers have ri!ht to return or chan!e it) even return mone,# That is the promise and respect o" Am&a, to the consumers#

?9D MAR2ETING MIX

Pro"uctQ The product aspects o" mar.etin! deal &ith the speci"ications o" the actual
!oods or services) and ho& it relates to the end users needs and &ants# The scope o" a product !enerall, includes supportin! elements such as &arranties) !uarantees) and

support#

Pr!c!#*Q This re"ers to the process o" settin! a price "or a product) includin! discounts#
The price need not 0e monetar, E it can simpl, 0e &hat is exE chan!ed "or the product or services) e#!# time) ener!,) or attention#

Pro ot!o#Q This includes advertisin!) sales promotion) pu0licit,) and personal sellin!)
0randin! and re"ers to the various methods o" promotin! the product) 0rand) or compan,#

P&%ceQ It re"ers to ho& the product !ets to the customerP "or example) pointEo"Esale
placement or retailin!# This "ourth 1 has also sometimes 0een called 1lace) re"errin! to the channel 0, &hich a product or service is sold Ke#!# online vs# retailL) &hich !eo!raphic re!ion or industr,) to &hich se!ment K,oun! adults) "amilies) 0usiness peopleL) etc# also re"errin! to ho& the environment in &hich the product is sold in can a""ect sales# These "our elements are o"ten re"erred to as the mar.etin! mix) &hich a mar.eter can use to cra"t a mar.etin! plan#

?9E T3E CONCEPT O6 DIRECT. MAR2ETING

WHATE(E$ A 1E$*:N EA$N*) HE G:E* T: *1EN+ IT T: THE MA$KET) 4:$ EYAM1LE I4 A 1E$*:N G:E* T: A MA$KET WITH $s# >GGG WITH HIM) THE$E HE 1U$-HA*E 1$:+U-T* :4 +A ET:E+A U*E*# THE -:*T 1$I-E :4 THAT 1$:+U-T I* $s#;@GG IN THE 4A-T:$ ) 'UT HE GET* IT Z $s#>GGG 'E-AU*E :4 THE MI++LEMEN KA+(E$TI*E$*) WH:LE*ALE$* / $ETAILE$*L# @GW :4 THE M:NE I* +I*T$I'UTE+ AM:NG THE MI++LEMEN#

'A-K T: >?

EA$*) THE$E WE$E TW: 4$IEN+* WITH A +$EAM IN+I(I+UAL A -HAN-E T: +: A 'U*INE**) MAKE

T: GI(E E(E$

WHI-H WILL 'E TEN*I:N 4$EE AN+ IN THE *AME WA $I-H# T:+A THE HA(E A-HIE(E+ THEI$ +$EAM#

. AD .

I9

BENE6ITS 6OR DISTRIBUTER9

The compan, provides &orld class products to the distri0uters# The, also !ets pro"it "rom the sales model o" the compan, &hich is 0e,ond their ima!ination that5s 0ecause it is "ull, accepta0le and honest so that ,ou can 0elieve and have "ull trust and con"idence on it# The products are o" &orld class# The distri0uters !et help "rom the eas, mar.etin! plan# There are demonstration lectures on each t,pe o" product ;# 4ull in"ormation a0out the product# <# 4ull instruction on ho& to use the product properl, and !et ;GGW Advanta!es o" it# =# Nualities o" products# Guarantee o" "ull satis"action "rom the use o" the product 0, the compan, is one o" the most important attractions o" this 0usiness# These 0ene"its o" distri0uters are .ept reserved 0, the compan,5s 8-U*T:ME$ 1$:+U-T $E4UN+ 1:LI- 9#

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*ome important attractions7 0ene"its "or the distri0utors

With the help o" this 0usiness a"ter 0ein! a distri0uter can esta0lish his o&n KindependentL 0usiness all over the IN+IA#

To 0e success"ul in this 0usiness one need 8(E$ LE** AM:UNT9 and 8+E*I$E T: 'E *U--E**4UL9# I" an, distri0utor &ants to leave the 0usiness can leave !et the mone, 0ac. 0, returnin! the 'U*INE** KIT &ithin DG da,s o" 2oinin!#

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C3APTER .A SWOT ANALAYSIS

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A9 SWOT A#%&0s!s

*W:T is the "oundation o" the mar.etin! plan# *tren!th) &ea.ness) opportunit,) and threaten &ill 0e evaluate in the *W:T anal,sis# Those are included in the internal and external "actor#

A9/ Stre#*t$s
Am&a, is a united or!ani6ation and has an excellent sta""# The sta"" &ill have a special trainin! on a re!ular time# Am&a, has its o&n "arm and "actor,) and ensures that provide !reen product "or consumers# Am&a, also has its o&n aircra"t !roup and 4iveEstar hotel "or receivin! the people &ho care and support it an,&here in the &orld# The leisure par. on the sea is preparin! "or the outstandin! sta"" in Am&a,# Am&a, in Guan!6hou and *han!hai esta0lish the research and development center) and have nearl, A speciali6ed la0oratories and more than ;GG technicians# The %ualit, o" Am&a,5s product is !ood) and strives "or excellence# 'ecause o" the hi!h demand) an,0od, needs its product an,&here in the &orld# At present) the 0usiness o" Am&a, spreads around more than FG countries and re!ions# The num0er o" "ranchised stores in -hina is more than ;GG#Am&a, ma.es sure that the 0est product and the .indest attitude can 0e provided "or consumers#

A9+ We%@#ess
Am&a,5s direct sellin! in -hina is easil, mista.en "or 8 sellin!#Am&a, had ever 0een in"rin!ed upon 8sellin!9# That made man, people misunderstood its products# And Am&a, rarel, advertises "or its !oods# *ome people do not .no& &hat Am&a, is) &hich

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"unction Am&a, is) thou!h the, heard this 0rand 0e"ore# It can not onl, depend on the Word o" Mouth Mar.etin!) &hich sometimes ma.es people unclear# 'esides) the stores o" Am&a, are correspondin!l, passive) and the impact o" those is small and restricted 0, the area# In resent ,ears) Am&a, 0e!an attachin! importance to advertisements) and tr, to carr, out the strate!, "or advertisin! and mar.etin! activities#

A9? Opportu#!t!es
Am&a, entered in -hinese mar.et in the appropriate time# With the developin! o" econom,) people 0e!an to pursue a 0etter li"e a"ter solvin! the pro0lem o" "ood and clothin!# Especiall,) durin! the time o" *A$*) Am&a,5s health "ood &as pursued 0, consumers# In the <Ath) <Fth :l,mpic Games) Am&a, Nutrilite 0ecame the onl, desi!nated health "ood "or -hinese sports dele!ation# It is a !ood chance "or Am&a, to raise the popularit,# As &e all .no& that the incident o" 8*anlu Mil. 1o&der9 happened# The investi!ation proved that most nutritional health "ood had the %ualit, pro0lems or lac.ed the capa0ilities o" research and development in -hina# Am&a, products have the assurance o" %ualit, and a !ood &ord o" mouth# 4or example) the standard o" Nutrilite is ver, hi!h# The "acilities o" production and the means o" mana!ement are "ar 0e,ond the -hinese health "ood GM1 re%uirements# *o) it is a ne& opportunit, to Am&a,#

A9A T$re%ts
Althou!h Am&a,5s nutrition "ood is reco!ni6ed 0, most people) it is still hard to ma.e all o" them accept this product &hich is expensive in their e,es# As &e .no& that there is a lot o" health "ood) such as 8Gold 1artner9) 8Melatonin9) etc) the, ma.e man, advertisements on T(# :0viousl,) most people &ould li.e to 0u, them#In the mar.et) there is .een competition amon! man, dail, necessaries# Most people are "amiliar &ith these 0rands) such as A(:N) :LA ) 1 / G) etc# The prices o" these products are lo&er than Am&a,5s dail, products# *ome people still choose the products &hich are cheaper or somethin! the, li.e#

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*o) it is reall, important to ma.e consumers .no& the value o" Am&a, products#

CONCLUSION

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-:N-LU*I:N
Am&a, is a direct sellin! compan,# The main o02ective o" Am&a, is to pro"it their distri0utors 0, eliminatin! the middlemen and provide the products to the distri0utors in a lo&er price# Am&a, is one o" the lar!est direct sellin! companies in the &orld# The products are o" the &orld class %ualit,# The, are made up o" natural thin!s that &h, are ver, !ood "or the health and environment# Am&a, covers a &ide ran!e o" products "rom 0eaut, care) health care) s.in care) home care to clothin!) utensils and dail, use products etc# Te products are costl, as compared to other 0randed products availa0le in mar.et) 0ut i" &e compare the %uantit, &hile usin! these products re%uire less amount and thus can 0e used "or a lon!er period#

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6INDINGS AND RECOMMENDATION

. BA .

6INDINGS AND RECOMMENDATION

T$IAL 1A-K* *H:UL+ 'E U*E+#

THE 1$:+U-T* *H:UL+ HA(E A $E*:NA'LE 1$I-E#

THE H:ME +ELI(E$ +ELI(E$

* *TEM TAKE* ATLEA*T TW: +A * T:

THE 1$:+U-T*) THE +ELI(E$ *H:UL+ 'E IN*TANT#

IN E(E$

-IT

:44I-E *H:UL+ 'E *ITUATE+ IN *U-H A

L:-ATI:N *: THAT IT I* IN $EA-H :4 ALL THE +I*T$I'UTE$*#

. BB .

BIBLOGRAP3Y

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