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Marketing Strategies of Amway
Marketing Strategies of Amway
Amway 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.
Introduction
Amway 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.
Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.99 mil 2.48 mil 5.53 mil 6.26 mil 5.79 mil 6.36 mil 6.33 mil 7.68 mil 7.99 mil 11.28 mil 14.07 mil
Product Brief
Artistry was founded in 1968 by Edith Rehnborg. Artistry is among the top 5 selling prestige brands in the world along with Este Lauder, Lancme, 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.
Artistry Patents
The 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.
ARTISTRY Published and Granted Public Patents ARTISTRY Four-Pan Patent Oat Extract Patent European Patent Skin Whitening Composition Patent
Analysis
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.
Middle class is given negligible importance while the lower class is completely neglected. The company has recently announced ad campaigns.
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.
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.
Opportunities
Advertisement. Implementation of Penetration growth strategy. Promotions. Tie-ups.
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.
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