Presented By: Ajay Rathod 13 Nikunj Shah 24 Jayesh Surve 43 Sanil Tharval 45 Ankita Trivedi 48

Flow of Presentation.
y Introduction to Direct Marketing. y Introduction to Amway. y Amway Business model. y Amway s Advertisement/promotional strategy. y New products launched. y SWOT Analysis. y Future plans y Findings and recommendation. 

Direct Marketing (DM) is an interactive system of marketing that: 
Uses one or more advertising media to effect a

measurable customer response 
Or transaction at any location 

And stores information about that event in a

database.

y Two way communication between customer or prospect

and company.

y Sometimes called interactive marketing. y No middle man. y Measurable, database always used. Direct marketer is

always accountable.

y Database used to

capture response (and non response)

Transaction data Customer contact data

Demographic/lifestyle data

y Data to be used

for future decision making and targeted promotions!

Database

Database

Analysis

Promotio ns

ROI

Lifetime value

Build loyalty Retain reactive customers Convert inquiries Database

Find Like customers

Cross sell products 

Generate new customers at the lowest possible cost per acquisition. Maximize customer lifetime value via repeat purchases. The goals of every direct marketing organization need to be exclusively focused around the above!!!  

Direct Marketing Cycle
List or database

ecisio ma i g/ esearc

Target customer

es o se a d al sis

irect res o se romotio

Types/kinds of Direct Marketing
y

Direct Mail.

y Internet. y Door to Door y Tele-Marketing. y Tailored Publication. y Net -Work Marketing.

Network Marketing

Facts about Amway 
Started in US in 1959 with 1 product. 
Is now a $8.2 billion Corporation.  The Largest Direct Selling Company.  Currently managed by Chairman Steve Van Andel and

President Doug De Vos

y Has already notched up a sales turnover of Rs 1,128

crore with a Rs 151-crore investment.

y About 85% of the products the company sells in India,

are made in India by about 7 third-party contract manufacturers.
y 600 patents, 450 World Class products. y 32000 product training sessions each year.

Facts about Amway-India
y Commenced business in India from 1998 y Globally 450 products but in India we have just 110

products.

y Last year, Amway grew over 40 per cent (in India),

which is more than any other country where they operate.

y Operates in four categories - nutrition, cosmetics,

personal care and homecare.

y Eastern India contributes around 22 percent of the total sales of

the company.

y Tamil Nadu, is their largest market. They had done business

worth Rs.93.8 crore in Tamil Nadu in 2007 and had paid taxes to the tune of Rs.10.25 crore in the year.

y It has 14 offices and six warehouses in the state and carry out

home deliveries to 879 pins codes in the state.

AMWAY INDIA 10 Years 1998-2008
1998 
6 Products  5 Offices  1500 pin codes Service  70% Money Back

2008 
100+ Products  120+ Offices  12000+ Pin Codes  Money Back Guarantee  Turnover Rs. 1000+

Guarantee Crores 

Turnover Rs. 100

Crores

Business model of Amway

BUILD YOUR OWN EMPIRE

Performance Incentives

Amway s Promotional Strategy
y The company has been advertising heavily, quite simply

defying the laws of direct selling.
y The purpose of their advertisement is to build corporate

brand awareness.
y Television campaign will run till 2010. y The advertising campaign for 2009 is aimed at increasing

awareness. By the time they get into 2010, they plan to look at category-specific or even product- specific advertising,"

y Although Amway has been operating in India since

1998, it started advertising only recently.

y The focus is more on their nutrition and wellness

products.

y Traditionally Amway did not advertise. y At present, their advertising budget is Rs 15 crore

because the aim is not to create demand but to build awareness and create a market atmosphere conducive for our distributors."

New Products Launched
y In April 2008, they entered in to mass market segment with
launch of "Great Value Product Rangeµ

y In Nov. 2008 Amway Lunched two energy products ² 

Amway XL energy drinks
Which comes in two flavours of citrus blast and tropical blast. 

Amway XL energy bars.
Bars are available in apple cinnamon and fruit and nut flavours.

y New products would be manufactured near Kullu, in

Himachal Pradesh

y

Amway XL energy drink has no carbohydrates, no sugar, no fat and marginal caffeine and it is a quick healthy solution to do away with fatigue and stress.

Distribution N/w Quality Products Provides opportunities for building business

Lack of awareness Product specific ads Focus on variety of products

Strengths

Weakness

Opportunities
Repetitive Sales Expand distributors base

Threats

Competitors like P&G, Avon, Hindustan Lever

Amway s Future Plans
y Planning to expand its distributor base in next 10 years to 9 lakh

personnel.

y Plans to add about 100,000 direct sellers.

y Nearly 60% of Direct Sellers stay with the Company.

y Increase the number of its offices to 300 from the

existing 127.
y Amway's focus is on improving the consumer access

and the first step towards online sales by revamping its website.

New Website of Amway India 24x7 Web ordering facility

Findings And Recommendations
FINDINGS
y Distribution N/w y Quality Products y Repetitive Sales

RECOMMENDATIONS
y Lack of awareness y Product specific Ads y Lack of Core products

CONCLUSION

THANK YOU!!

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