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Promotion is a communication process, by which the producers of the products or services draw attention of the consumers or prospective consumers towards their products and services. Consumers are informed and reminded about the products and are requested and persuaded to purchase their products. Such communication may be made either along the product or well in advance of the introduction of product into the market.
Promotion as communication: - Promotion is that marketing communication activity that attempts to inform and remind individuals and persuade them to accept, resell, recommend or use a product, service, idea or institution. Promotional communication has the triple purpose to perform. To inform, to persuade and to remind and the three basic purposes are being fulfilled at the different stages of product life cycle. Promotional communication is not always directed towards the ultimate consumer. It can be for industrial customers, institutions or some times towards middlemen. Promotion is an important tool for both profit and non profit organization. As we know that most often it is being used to sell a product or services, it is also being accepted in the marketing of social services, political candidates and ideas.
1. 2. 3. 4. 5. Leads to behavior modification. To inform. To persuade. To remind. Specific Objectives. Such as to change the pattern of demand.
Integrated Marketing Communication:
In traditional marketing, promotion activities are handled by various specialist agencies. The marketing effect is fragmented and the result could be conflicting communications that confuse the customer. The result is wasted time, money and effort. Thus, integrated marketing communications help in channelising all marketing effort through single unified mechanism which helps in achieving following benefits: 1. Creative integrity. 2. Consistency of message. 3. Unbiased marketing recommendations. 4. Better Use of Media. 5. Greater marketing precision. 6. Operational efficiency. 7. Cost saving.
personal medium and paid for by a sponsor whose product is in some way identified in the message. Direct Marketing: In it organizations communicate directly with target customers to generate a response and/or a transaction. Personnel Selling: It is a person-to-person dialogue between buyer and seller. 2. 5. and studies have shown how unexpectedly high standards of service from a company can promote recommendation. Of course. 4. direct marketing has not been considered an element of the promotional mix. . we view direct marketing as a component of the promotional mix. an organization’s image can be projected through channels other than the formal communication process. Word-of-mouth: Of course. and strategies. positive word-of-mouth recommendation is generally dependent on customers having good experiences with an organization. Advertising: It includes any informative or persuasive message carried by a non. However. because it has become such an integral part of IMC program of many organizations and often involves separate objectives.Tools Of IMC: There are various tools for Integrated Marketing communication. Traditionally. Sales Promotion: It includes activities which are used in promoting sales of the product. 3. budgets. These are as follows: 1.
Two of the most famous organization Amway and Tupperware’s marketing communication can be analyzed on above factors. But before analyzing marketing communication programme we must first have a look on the company profile and history of the organization .
It’s about supporting people in their achievements. Originally founded by Jay Van Andel and Rich DeVos. Amway is about people connecting people to a better way of life.6 million Independent Business Owners (IBOs) around the world. In China. Amway is a wholly owned subsidiary of Alticor Inc. Amway Corporation is one of the world's largest direct selling companies. . who share their goals and aspirations. In addition. Africa. Amway products and services are marketed through independent business owners worldwide. PEOPLE Amway has more than 6000 employees worldwide. It’s about connecting people to others who respect them. Europe and the Americas. Amway products are sold by Amway sales representatives.Amway Corporation Amway is more than an income opportunity or a company or products. It’s about putting people in control of their lives. Amway has more than 3. Amway operates in more than 88 countries and territories in Asia.
as well as commercial products and a variety of services. GOVERNANCE AND MANAGEMENT Doug DeVos is the President of Amway and Steve Van Andel is the chairman. In addition. high-quality products carry the Amway name in the areas of nutrition.PRODUCTS AND SERVICES Over 450 unique. USA. beauty and home. COMMUNITY SERVICES Amway. All products are backed by a customer satisfaction guarantee. wellness. . Michigan 49355. Specific and current information is available upon request. Amway independent business owners in selected markets sell additional brand-name goods through local merchandise catalogues. FACILITIES Amway operates out of Alticor's world headquarters located at 7575 Fulton Street East. Ada. plus a variety of services and educational products. its Independent Business Owners and employees are involved in improving the communities in which they do business.
Globally.AFFILIATIONS Amway is a prominent and active member of the regional and national direct selling associations worldwide. Doug DeVos is a member of the U. direct selling is an industry with approximately $80 billion in sales and more than 30 million salespeople. . Former Alticor President Dick DeVos is the current Chairman of the World Federation of Direct Selling Associations (WFDSA).S. Direct Selling Association Board of Directors.
Amway received the prestigious United Nations Environment Programme Achievement Award in 1989. unique and easy to remember. In the following decades. 2005. Short. Jay Van Andel and Richard DeVos. and we work hard to provide new and better ways for them to achieve their life goals. Amway generates US $ 9. Amway has been registered as a corporate name and trademark ever since. We offer over 3 million Business Owners the inspiration to grow those businesses. Amway Corporation successfully established itself as a leading multilevel marketing business. Corporate Citizenship Award .On November 08. Today.The History of Amway What does the word Amway mean? Amway is an abbreviation for "American Way" and was coined in 1959 by company founders. AWARDS As a corporate leader in promoting environmental awareness and education. the United States Chamber of Commerce awarded Alticor with the Corporate Citizenship Award in the category of International Community Service for the One by One Campaign for Children . Amway is a multibillion-dollar international business representing freedom and opportunity to millions of people in more than 88 countries and territories around the world. built on strong values and founding principles that continue to sustain our company today.2 billion (January December '09) in sales at estimated retail through this global product distribution network. The business is built on the simple integrity of helping people lead better lives.
the FTC verified that Amway is a genuine business opportunity and not a "pyramid. Amway's sales were more than half a million dollars." . In its first full year of business. but they planned to start a business together after separate tours of duty. The '70s began with sales of more than $100 million at estimated retail. and kept going strong. when Rich struck a deal with Jay for a ride to school for 25 cents a week. After high school they entered the military. Amway rebuilt the aerosol plant and went on. After a lengthy investigation. A friendship formed and became a business relationship that has lasted to this day.A SOLID FOUNDATION Rich DeVos and Jay Van Andel's friendship actually began with a business proposition. THE DECADE OF GROWTH As vowed by Jay Van Andel the night of the 1969 disaster. THE EARLY YEARS Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay Van Andel's homes.
THE BILLION-DOLLAR DECADE The '80s will be remembered for the first Billion Dollar Year at estimated retail in 1980. with the second generation of many distributor families taking on important leadership roles. The Policy Board was formed and Steve Van Andel and Dick DeVos succeeded their fathers as Chairman and President. Building expansion at Amway World Headquarters continued at breakneck speed as Amway scrambled to keep pace with demand. .. Michigan. opening its new cosmetics plant in Ada. Distributors witnessed a similar trend. THE NEXT GENERATION As carefully planned by Rich and Jay. the second generation Van Andel and DeVos families took the helm during the ' 90s.
achieve and grow. hope and reward—hold as true today as they did in the very beginning. At the helm of Alticor are Steve Van Andel (Chairman) and Doug DeVos (President). was established with subsidiaries Amway. the DeVos and Van Andel families created a new structure to meet the challenges of this new century. including Amway. The Amway business recognizes. Alticor. Quixtar and Access Business Group—the latter to consolidate manufacturing and distribution for the enterprise. Amway prepared for a new century and a new exciting era. Freedom Provides conducive environment in which to live. Almost 50 years after Amway began. Today each area of the business. Founder's Fundamental Rich DeVos and Jay Van Andel built the Amway business on the following principles.NEW HORIZONS In 2000. work. family. jointly holding the Office of the Chief Executive. which is . which they and their families believe constitute a sound foundation for a meaningful life. Amway continues to be a leading company in the direct selling industry. has the freedom to build on its strengths. Its fundamental principles—freedom. A parent company. supports and expands freedom.
Reward Reward involves the shared action of giving and receiving. Reward is integral to the Amway business as we help each other grow as people and as entrepreneurs. providing love. Hard work is followed by high rewards. Reward helps us grow. profession or educational background. Hope Hope gives us the power to transform our lives in positive ways. . heritage and legacy.both personal and economic. either as the giver or the recipient. and achieve great things. and there are many ways we are rewarded. Family The family is our primary social structure. The Amway business respects and supports the family. By offering hope. irrespective of social status. It gives the freedom to operate as independent business people and conduct a full-time or part time business. It is a force that allows us to envision dreams. we open windows of possibility for others. establish goals. Amway provides the opportunity to build a family-owned business which can be passed on to generations. as evidenced by the Amway Board of Directors and the prominence of “family” in Amway business.
000 active independent Amway Business Owners. Amway has invested in excess of US $ 35 million (Rs. CORPORATE CREDENTIALS • Amway India is a wholly owned subsidiary of US $ 7.50. The Company has provided income generating opportunity to over 4. Amway India conducted over 29. Amway sources all its products from within India. thereby providing stimulus to the local manufacturing industry. It has a presence in 80 countries & territories. Ada.Amway India Factsheet Amway promotes individual entrepreneurship through its innovative direct selling approach of world class consumer products. Michigan.2 billion Amway Corporation.New Delhi.650 persons at all the contract manufacturer locations. Amway India has 400 full time employees and has generated indirect employment for 1. Amway India is the country’s leading direct selling FMCG-company which manufactures and sells world-class consumer products. Its business opportunity and all its products are covered by 100% Money Back Guarantee.000 training sessions during in the past 12-months with an • • • • • . Established in 1995. The Company is headquartered at the National Capital Region of India . Amway Corporation is one of the largest Direct Selling companies in the world. 151 crore) in India of this. US $ 6 million (Rs. 26 crore) is in the form of direct foreign investment. Amway India commenced its commercial operations in May 1998 and has emerged as the largest Direct Selling FMCG Company. USA. Amway India provides free and unlimited training to all its distributors to help them grow their business.
• Amway India recorded a sales turnover of over Rs.5 million Amway Business Owners and prospects. with several reputed international and Indian Direct Selling companies as members. Amway India is also a member of the Confederation of Indian Industries (CII) and Federation of Indian Chambers of Commerce (FICCI). The IDSA is an industry regulatory body.attendance of over 1. The World Blind Union presented an award and citation to Amway India in 2003. 800 crore during January’07 –December’07. Amway India is a member of the Indian Direct Selling Association (IDSA). • • • . for its peerless work for the blind children.
With the exception of Cosmetics range (Artistry*) and some products in Nutrition and Wellness category. world-class technology. To bring the identified contract manufacturers’ production facilities and skills to international standard. Amway India offers over 105 products in four categories. The products match Amway’s global quality standards. They carry a tamper-proof seal and a ‘100% Money Back Guarantee'. and are not tested on animals. 17 crore). If not completely satisfied with the product. has been free of cost. Amway has invested in excess of US$ 4 million (approx. Amway products are environment friendly. They are Personal care category. • • . Home Care category. The distribution and home delivery network set up with the support of independent logistics partners is spread across over 3. The transfer of this state-of-the-art. PRODUCTS • At present. the consumer can return it for a refund.000 locations. all Amway India products and bottles are manufactured in India.NATIONAL PRESENCE In ten years of commercial operation. Rs. Nutrition & Wellness category and Cosmetics category. Amway India has established a nationwide presence in over 125 offices and 55 city warehouses and four regional mother warehouses. MANUFACTURING Almost all Amway India products are manufactured in the country through 7 third party contract manufacturers. Amway encourages the return of its used product bottles for re-cycling and to prevent their misuse.
Amway distributors are also volunteers of AOF and they have enthusiastically participated in all AOF activities. PROMOTING FREE ENTERPRISE AND SELF-EMPLOYMENT • Amway has conducted several seminars on ‘Entrepreneurial Development and Direct Selling’ in concert with the Confederation of Indian Industries (CII) and the All India Management Association (AIMA) on the benefits of organized direct selling. Amway’s CSR campaign is known as the One By One Campaign for Children. Globally.CORPORATE RESPONSIBILITY AMWAY OPPORTUNITY FOUNDATION (AOF) • Amway Opportunity Foundation (AOF) a registered non-profit organization which looks after Amway India’s Corporate Social Responsibility (CSR). .
IDSA (Indian Direct Selling Association) • Amway India Enterprises Pvt Ltd is a member of the India Direct Selling Association. . Its members are of high national and international repute having set standards in delivering quality goods and in following ethical business practices.MEMBER . The Indian Direct Selling Association is an association of companies engaged in the business of direct selling in India.
honesty. confidentiality and consistency in all actions. We believe that these values guide our actions and help us to achieve everything we are capable of without compromise or harm.Vision Inspiring people to live better lives. home care. . Integrity We will uphold the highest personal and professional integrity which demonstrates honestly. We are committed to behave at all times in accordance with the ethical practices of the organization. Our Values Amway has established some simple shared values that unite the entire company. home tech and insurance. cosmetics. Mission To provide the best business opportunity. personal care. To deliver exceptional quality products to urban and semi urban homes in the areas of nutrition and wellness. respect and high ethical standards in all our responsibilities. loyalty. Trust Building reliability and dependability for self by displaying commitment. obligations and other activities. and all of the Business Owners that are associated with Amway.
We will develop networks and build long term alliances with internal and external customers.Transparency We will promote a culture of openness and mutual trust by interacting objectively and without underlying personal interests. . Recognition We are committed to honor. through their behavior and actions. Service Orientation We are committed to serve our customers to fulfill their needs by focusing efforts on discovering and thereby meeting stated and unstated requirements. encourage and support individuals and teams who contribute. with a wide range of stakeholders. Partnership We will collaborate across boundaries and find common ground by sharing ideas and resources. to the success of the organization.
Amway was present in over 80 countries and its manufacturing plants were located in US. Amway promoted around 3.000 products through catalogue sales2 as well. a company. A significant portion of Amway's investment was on transferring state-of-the-art technology and processes to third-party manufacturers from the small and medium-scale sectors for the indigenous production of its product range. Amway had received permission from the Foreign Investment Promotion Board (FIPB) in 1994. About 70% of Amway's sales were outside North America. was set up in 1959. which acted as a support system and assisted in organizing training. training material. Amway did recognize the need for a special India-specific pricing strategy and eventually there were just a few marginal cuts in the prices. These distributors were duly provided with starter business kits containing products. short for American Way. which had 24 laboratories.000 employees around the world. which were still almost 20% higher than those of the competing FMCG products. With over 12. Besides its direct selling portfolio of 450 products. to invest $15 million in the Indian operations and to source products from India. Amway. The company began with identifying small and medium-scale companies to source its products from. The company had over 3 million distributors across the world. Besides its extensive internal research efforts before entering India. Amway assisted . Korea. Amway also conducted market research through agencies such as Pathfinders and ORG-MARG. Amway was renowned for its strong R&D centre in Michigan. Hungary.Analysis of Marketing Communication followed in India Privately held by the DeVos and Van Andel families of US. Amway and its publicly traded sister companies supported 53 affiliate operations worldwide. China and India. The company began with appointing distributors in the country by adopting the ‘NRI sponsored’ by getting NRIs to rope in their friends/relatives in India into Amway distributorship. seminars and meetings. made available to distributors at the Amway Distribution Centers (ADCs) or through tele-service. and sales literature. Though prior to its entry into India. Commercial operations began in May 1998 with a partnership arrangement with Network 21. The company's introductory product range comprised four home care and two personal care products.
Amway appointed Sembawang Shriram Integrated Logistics. its products which claimed to exceed consumer expectations. nutrition. to achieve benchmarking levels of product development. and water filtration. Amway's distributor base crossed the 200. Calcutta and Mumbai. Within 11 months. These facilities were equipped with advanced machinery and world class technologies for production. and Mumbai-based First Flight Couriers as its total logistics partners for home delivery of Amway products across 151 cities in the country. Amway's domestic operations fell into five areas . Amway was able to break the time tested and traditional distribution set-up of manufacturer-distributor-retailer-consumer. However. Also. Its strengths were clearly manifested in the aggressive product launch plans. in pursuance of its go ‘glocal ' philosophy. This was true to a certain extent.its three manufacturing partners. Amway became the country's largest direct selling company and after two years of the commercial launch. the salespeople were poorly trained and lacking in motivation. the ISO 9001-certified Jejuplast at Pune. Problems faced in India In the beginning.personal care. Amway scientists and engineers at the India Technical Centre provided assistance in the processes of technology transfer and quality control. Sales people often used a ‘hard sell'. the product quality was sometimes poor and most importantly. packaging. engineering and quality. and the Hyderabad-based Sarvotham Care. an intrusion into one's privacy. The company introduced India-specific products. Amway had to deal with the negative attitude of many Indians to direct selling. the ‘money . ADCs operated as product selection centers for Amway's entire product range and as training centers for distributors. homecare.000 mark. for the first time in its history. Amway utilized media advertising to promote its products. Chennai. The company supported its independent distributors with five full service ADCs at New Delhi. cosmetics and home tech. Bangalore. Amway changed all this radically and a significant change was brought in the field. Naisa Industries at Daman. Direct selling was typically seen as unwelcome.
distributors also needed to know the value of the products they were selling.back’ policy. “The direct selling model is not new to India. Amway could not sit back and let competitors like Oriflame. Amway reported a sales figure of Rs 100 crore. which clearly indicated the number of usages very clearly. the problems like distributor attrition. This practice was later expanded to other products as well. Avon and Modicare take advantage of its weaknesses PICKING UP THE PIECES Amway soon woke up to the reality that it had to take steps to put its MLM machinery back to the track. it had hoped to leverage the global promise of the lucrative business opportunity for its distributors. For instance. this aspect was overlooked by the company.” However. To strengthen its product focus. Amway realized that a complicated market such as India needed a focused approach for each of the product categories. What's new is the structure. Though this made sense in the developed consumer markets of the West. Amway also decided to focus on the market in the smaller towns. For this. Reacting to reports stating this as a ‘below-expectations’ figure. And while it's true that consumers do not rush in to buy an Amway product. company sources commented that the concept of network marketing had not been a constraint for Amway. in India. it had to first identify where it had gone wrong. a false ‘premium’ image and customer dissatisfaction soon began surfacing. The idea was to firmly establish the fact of Amway's products being highly concentrated and with very low per usage cost. though Amway had centralized marketing of all products worldwide. Quick . its Indian arm appointed category managers for individual product categories. network marketing works as a low-key approach and evolves over time. Amway set up strategic business units. In 1999. The then CEO & MD Bill Pinckney commented. it introduced stickers on the packs of its car-wash solution to emphasize the number of washes that a consumer could get per bottle. Thus. One of the first ‘corrective' measures it took was putting stickers on its products. and a distribution network spread across 26 cities servicing more than 306 locations. Amway realized that like most direct marketing networks.
The typical direct selling system comprised a central warehouse located close to the manufacturing locations. Amway introduced value-formoney ‘chhota (small) packs' in December 1999.expansion of the distribution network to smaller towns was identified as a major tool to offset the impact of attrition. In early 1999. However. with these facilities not being upto the mark. where the distributors or retailers carried inventory. The game plan was to reach consumer homes all over directly by making the current distribution system more effective and decentralized. This ‘gamble 'as Amway's biggest test case the world over. Amway also offered to finance the sales kits through interest-free loans. As opposed to the traditional FMCG delivery setup. they remarked. in about 72 hours. Amway then planned to tap unemployed youth in smaller towns by subsidizing the entry fee for the starters’ sales kit. Amway decided that it had to effectively handle these issues and rapidly expand its offices in order to capture the growing direct selling clientele in the country. toll-free phones and multi-service courier companies. In a bid to make its products more affordable. The cost of making long-distance calls. But media reports were skeptical about Amway's strategy to use localized strategies for its global products. the courier companies’ refusal to accept cash and the time taken to deliver products were the three major hurdles that Amway faced. This was expected to brand penetration. The sachets significantly boosted sales. here it was taken care of by the company warehouses and their region-specific distribution centers. The most significant of Amway's Indian initiatives were its ‘Indianisation' efforts. Long distance calls and courier companies took care of distribution in cities where the company had no presence. It even gave free kits to visually impaired youth in Rajasthan. Sachets had two advantages – they helped Amway shake-off the ‘super-premium-products-only 'tag. Amway realized that servicing distributors in 160 cities through its 13 locations was curbing growth due to unavailability of critical infrastructure like networked banks. and with their lower prices invited consumers from lower income levels to try the products. which sent the products to regional hubs like the metros and then on to the branch offices. The company also decided to give incentives to cost and freight agents (C&FAs) who could deliver parcels in the same city within 48 hours outside. The company started printing Hindi slogan ‘Hamara apna business' .
Operation Ghar was designed to provide five Es . Amway also utilized the Internet and electronic kiosks to hook up with its distributors and give them information. Through the World Wide Web. This would naturally make the salesperson obsolete. which included setting up a warehouse. Of course. ease of returning and ease of information/operations. This brought the customer directly in touch with the company through telemarketing tools.'Operation Gaadi was launched in east-Uttar Pradesh where a store was mounted on a truck and made trips to different regions on different days. it was already facing troubles abroad. Persona. Operation Ghar eventually covered 19 state capitals. Amway even named its expansion drives as ‘Operation Gaadi' and ‘Operation Ghar. However. The very concept of network marketing was being threatened by the growing popularity of e-commerce and the Internet. ease of paying. Involving an outlay of Rs 15 crore in its Phase I. Even as Amway was establishing its roots in India. Amway planned to become a Rs 1000 crore company with a physical presence in 198 centers across India. ease of receiving. was created specially for the Indian consumers. Operation Ghar was primarily designed to provide better service to the customers as well as to its large family of distributors. With Internet usage levels increasing and little spare time for shopping. network marketers could take it easy for least some more years. Amway planned to turn tis attention to untapped rural areas as well. ‘NETWORK'ING ITS WAY INTO THE FUTURE By 2004. The project was later extended to West Bengal as well. in India. The company also revealed that by 2002. The company's first product line. the real threat seemed to be the merging of telecom networks with the cable television operators. given the pace of developments on the Indian telecommunications front. manufacturers had the opportunity of engaging in one-on-one direct selling in an even simpler way. Amway believed that the Indians would . Once the marketing business in urban areas was strengthened.(our own business) on its stationery. Amway announced an ambitious expansion of its distribution infrastructure in Andhra Pradesh. Amway prepared to meet these challenges by taking initiatives to further strengthen its online presence. As part of its plans to tap unexplored markets.ease of ordering. it would be selling all the 450 Amway products that were available abroad. However. This posed a major threat to multilevel marketers.
Competition was intensifying in the industry in the early 21st century. The company also planned to have portals in various Indian languages to ensure wide coverage. Typically direct marketing firms faces issues of reach and cost. Hence the sales are driven by the efforts of ABOs. While Amway targeted only the upper section customers. Modicare targeted the middle and the upper middle class customers. Amway seemed to be faring better than competitors like Modicare . Some of Modicare's products were priced at one-fourth of the price of Amway's products. This could turn out to be a cause for concern for Amway in the long run. Amway is a 100 % direct marketing company . the company has to pay huge commission. Since the company does not advertise its brands. as the pleasure of window-shopping and the actual shopping experience could not be replaced very easily. Hence the products become expensive resulting in lower sales. For example. Artistery is . Persona is one of the best soaps in terms of quality but price is definitely a dampener.gradually move to online shopping. as they sold only to customers known to their distributors. Since the sales depend entirely on the independent distributors . Another example is the range of cosmetics under the brands Attitude and Artistery . That means the consumers will not get any Amway products from shops. Amway also faces this issue. Modicare was even willing to reduce its margins in certain cases. There are two tasks of a typical ABO : the first task is to sell Amway products and second task is to appoint new ABOs . the only communication channel is through ABOs who visits households and make presentations. Amway provided graphics and three-dimensional views in the product display sections on its website. Modicare sources said this was because its products were priced for the Indian market. This results in the increased cost of the product. Also. Modicare offered 100% refund even when the product had been used. while Amway's pricing was more in tune with its global counterpart. Both Amway and Modicare were not the typical door-to-door selling companies.a fact attributed mainly to its premium brand image. The products can be bought through ABO's. unlike the 75% refund offered by Amway. the Persona brand of soaps cost Rs 30 which is almost double the rate of an ordinary soap. But it thought the process would take time. The products of Amway are excellent but very expensive.
but the low commission payout for sachets has prompted ABOs to try and sell high value items. Hence the ABOs have a tough time convincing the value proposition. Earlier. shaving creams. The company has started to take steps in the right direction. Amway had introduced sachets for most of the products. the commission payout will be less and hence the ABO will have to sell more volume to get higher commission. the company is also rationalizing the pricing strategies. Along with this. The ABO can recover the money by selling these products. This will be a big relief for the existing ABO since the higher joining costs turned away most of the potential ABOs. Amway launched its first corporate branding initiative in India.targeted at the premium class and Attitude at the middleclass. Amway has understood that doing business in India will require a new business model. b. The purpose of the campaign is two fold: a. The cost was to buy the Amway business kit which consists of various Amway products and brochures. But the prices of these brands make the consumer think twice before buying it. The brand came out with a Television campaign highlighting the customer-centric approach. The enhanced corporate image will also attract people to join Amway as independent business owners. The idea revolves round the theme that Amway understands the Indian consumers and the products are derived from this understanding. The Company wants to build equity around the corporate brand which will enable the ABOs to tide over the initial customer resistance. Amway uses the slogan “We are listening “. a person had to shell out Rs 5000 to join the firm. But here again the company will face certain issues. For lower priced products. The company is launching a new range of value products like coconut oil. . Now the company has introduced a starter pack for Rs 995 which does not have Amway products but brochures. Another significant change that the company made was rationalizing the entry cost for new ABOs. the expensive tag of Amway products is the singular reason for the lack of popularity of its products. Understanding this issue. In a value conscious country like India.
tough. But to balance the price. quality and higher commission is no easy task. Tupperware Corporation: In 1937. cost. into a resilient. non greasy and translucent substance . a waste product produced in crude oil refinement process. when Earl Silas Tupper worked in DuPont’s plastic division in Massachusetts. he transformed a piece of black polyethylene slag.It had tried to rationalize prices and bring in new value products. non porous.
non breakable containers such as cups. These products were superior to the traditional glass and crockery as they were unbreakable. Tupperware products and their uses were demonstrated to consumers. They came in various attractive colors and shapes. In 1948 Tupperware's first Home Party was conducted. plates. In 1946. the company concentrated on molding parts for Navy signal lamps and gas masks. with this substance. Tupper founded the Tupperware Company in 1938. In the late 1940s. Brownie Wise. After the war. During the Second World War.He created many light weight. Tupperware provided a more durable and reliable alternative. It became clear that the company needed to educate the consumers about the quality and properties of the products. liquid proof lid in 1946. Tupperware also designed the renowned air-tight. Here. At a time when Americans used glass and crockery to store and serve food items. they failed to generate demand. the company turned its attention to manufacturing plastic products for the growing consumer market. Earl S. who was selling household products for Stanley Home Products was hired by Tupperware. She gave Tupperware its unique "Party Plan" method of marketing. Its first consumer products were a bell shaped flexible container called the Bell Tumbler and the Wonderlier Bowl (a round bottomed bowl with a lid). From its inception. Tupperware products were durable and were also easy to handle. . These demonstrations helped the company to explain to the customers. the usage and the reasons for higher cost of its products. though the Tupperware plastic products were introduced in hardware and department stores. the quality. Tupperware faced challenges in marketing its products. bowls etc. This lid prevented spillage and wastage of the stored items and kept them fresh for a longer time. It was modeled on the inverted rim of a paint can.
. It adopted a three. The company concentrated on women as their prime sellers and consumers. Tupperware had to sell both the direct selling concept and its 'Party Plan. As the concept of direct selling was new to India. . The Tupperware Model Tupperware.tier network structure which made operations easier for the company. differed from other direct selling companies. She removed all Tupperware products from retail outlets and marketed them through the Party Plan method. through a specially designed 14-week training program in Delhi and Mumbai.'. It started its operations from New Delhi. though a direct selling company.Brownie Wise was appointed the Vice President of the Tupperware Company in 1951.. It appointed 15 distributors in the first 12 months itself.. Tupperware in India Tupperware entered India in November 1996.. It achieved this by directly recruiting candidates and training them.
as the quality of Tupperware goods was much better. The Tupperware products carried a life time guarantee. While the familiarity of this story dates back since inception. the shifting in spending of household goods came upon the women who in turn were responsible for expenditures and family planning. The company did not face any major competition from other plastic wares in India. Women. they are reinventing themselves again and again in countries all across the world. sticking to the market which has made Tupperware successful.Product.".. the company expanded its operations to more than 35 cities in the country. . With that.. Future Outlook Tupperware was gaining fast recognition in the Indian market. By 2002. the Tupperware brand has become ‘top of the mind’ for India’s household. They even influenced the consumers there so that those who had previously used metal containers have converted to plastic. in particular. Party plan and People. Philosophy followed at Tupperware "Our product has been the corner stone of our success for many years.. Its 'Party Plan' worked well because it fitted in the urban and semi urban culture of 'kittie party. Tupperware spread to India where the percentage of purchase in household goods was attributed to Tupperware’s global branding strategy. have taken upon this opportunity to really brand themselves.Analysis Of Marketing Communication Strategies:Tupperware's marketing strategy was described by its three Ps. Any damaged product (cracks or breaks) could be replaced by same/similar new Tupperware product from any place in the world. Tupperware India competed with manufacturers of steel containers as Indian consumers used steel containers to store and carry food. According to the Nielson Company for 2008. Recently. However..
the Tupperware parties would not be as popular as it is today. without seeing the importance of this need. .Thus. After all. it was word-of-mouth which made Tupperware successful. not plastic.
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