Amway is a direct selling company and manufacturer that uses multi-level marketing to sell a variety of products, primarily

in the health, beauty, and home care markets.[3][4][5] Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales growth of 2.3%, reaching US$8.4 billion for the year ending December 31, 2009.[1] Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics. In 2004, Health & Beauty products accounted for nearly 60% of worldwide sales.[6] Amway conducts business through a number of affiliated companies in more than ninety countries and territories around the world.[7] It is ranked by Forbes as one of the largest private companies in the United States[8] and by Deloitte as one of the largest retailers in the world
Amway is reworking its direct sale strategy in India to get closer to consumers. The wellness, beauty and homecare products firm, which expects a quantum jump in sales in India, is planning to turn its 54 distribution centres into showrooms to give consumers a first-hand experience. So far, direct selling agents went to the consumers¶ homes and sold the Amway products. As a company that pioneered direct sales, Amway did not have a brick-and-mortar presence. The company, which had built awareness about its products by word of mouth, also plans to increase its ad spend. Amway garnered a revenue of $250 million in India, which is among its top 10 markets. The company earned $8.2 billion globally last year. Steve Van Andel, chairman of Amway, said India had potential to be among its top 5 markets. ³India is a major market for us. The shift in strategy that you see in terms of a brick -and-mortar presence (experience centres) and advertisement, are major steps to reach closer t o the consumer,´ Andel told a group of visiting journalists from India at Amway¶s headquarters in Ada, Michigan. Andel, whose family along with the DeVos, had set up Amway 50 years back, however, strongly backed the direct sales model despite the opportunity to grow manifold through the conventional retail route. ³We will never change this model which helped so many people to earn a living,´ he said. Amway has around 500,000 registered individuals selling its products in India. Sales from the experience centres will also be booked in the names of distributors who will get commissions. In this way, the existing direct sales structure will not be affected. Amway business associates will also earn from the sales in the experience centres in addition to the income from direct selling. The company also plans to tap salons with its beauty products. Bill Pinckney, managing director and CEO of Amway India, said such steps could increase sales 10 times over the next 10 years. ³Yes, it¶s possible. We have seen this in some of the countries. With the population India has, I am quite hopeful that we can achieve that after building the brand for the last 11 years,´ Pinckney said. Food supplement Nutralite is the blockbuster product of Amway in India, and the company is now betting big on the ³Artistry´ range of beauty products to drive sales. The company also makes consumer durables for the developed markets and could introduce these in India in the future.

Himachal Pradesh.To support increased sales. is being doubled. It has a contract manufacturing arrangement with a local partner.´ Pinckney said. Pinckney did not rule out the possibility of setting up a plant . Artistry Skin Care Shaded Catalog Chérir jewelry and pajamas Home Care Kitchen Care Laundry Care Product Mix Bottles Apparel Care Car Care Floor Care House Care Home Tech Houswares Shears Knives AMWAY QUEEN COOKWAREŒ Nutrition and Wellness MAGNA BLOCŒ NUTRILITEŒ Products Personal Care Skin Care Hair Care Oral Care . the capacity of the plant that manufactures Amway products in India at Baddi. However. Amway does not own the plant. ³The new plant could be located in the south.

This case study shows how Amway is a business that does more than provide customers with good quality products. These families are more than happy to partner with Amway. What does Amway do? . the company is able to show its commitment to the support of global causes. Banerjee said that though an in-principle decision has been taken nothing has been finalised. It is a family-owned business with a strong emphasis on family values. the local community and society at large to improve their quality of life. their families. he added: ``It will be any product from computer peripherals to video cassettes and everything but it will take some time to actually start this project. reputation is everything. Growth and responsibility An understanding of how Amway operates as an organisation gives a clearer picture of the contribution it can make to help children in need across the globe. In business.'' he said. who. It does this every day by providing a low-cost low-risk business opportunity based on selling quality products. They also have a rich line-up of herbal products. Amway¶s vision is to help people live better lives. Companies that operate in a socially responsible way strengthen their reputations.'' He also said that Amway India is planning to exploit the herbal resources present in India for export purposes. Introduction Corporate Social Responsibility (CSR) means businesses and organisations working responsibly and contributing positively to the communities they operate in. It determines the extent to which customers want to buy from you. It involves working with employees. Many of these are raising families. the strategy will be different. The company Amway is one of the world¶s largest direct sales organisations with over 3 million Independent Business Owners (IBOs) in over 80 markets and territories worldwide. Amway defines a global cause as µa social issue affecting many people around the world engaged in a struggle or plight that warrants a charitable response¶.For the small and medium scale sectors. In this way. As a family company. Our main contenders in this area are China and Korea. The quality will be good but they may not be up to the standards of Amway. However. ``We would sell their products. as part of its Corporate Social Responsibility strategy. It shows the practical realities of Amway¶s global commitment and how it plays a key role in the communities in which it operates. partners are willing to work with you and your standing in the community. the United Nations Children¶s Fund. Amway is committed to playing a part in improving the lives of children in need across the globe. Its IBOs are often couples.'' Banerjee said. works with UNICEF. ``Research activities are on in our American laboratory for manufacturing of neutrilite herbal and neutrilite ayurvedic products. They therefore have a strong bond with children.

The IBOs travelled to Kilifi in 2006 to meet children and to find out what the problems are in various communities. The focus is on supporting the worldwide µImmunisation Plus¶ programme. Amway encourages staff and IBOs to support its One by One campaign for children. The need is great. The One by One programme: y y y y helps Amway to bring its vision to life declares what the company stands for builds trust and respect in Amway brands establishes Corporate Social Responsibility at a high level. The µPlus¶ is about using the vehicle of immunisation to deliver other life-saving services for children. They work within the guidelines of Amway¶s Rules of Conduct and Code of Ethics. IBOs play a key part in helping Amway to deliver its Global Cause Programme.4 million). Amway programmes In order to give many of the world¶s children a chance to live a better life. They act as champions spreading the message throughout their groups. Only 58% of children under two are fully immunised.Amway distributes a range of branded products. Other . These products are sold to IBOs worldwide. Malaria is the biggest killer with 93 deaths per day. The work of the One by One programme is illustrated by a field trip undertaken by Amway IBOs to Kenya. Typical products that IBOs sell include: y y y y personal care ± fragrances. They can introduce others to the Amway business. body care skin care and cosmetics durables such as cookware and water treatment systems nutrition and wellness products such as food supplements. This involves. Amway launched the global One by One campaign for children in 2003. Since 2001. For example the µPlus¶ could include providing vitamin A supplements in countries where there is vitamin A deficiency. IBOs sell to people that they know or meet. Amway Europe has been an official partner of UNICEF and has been able to contribute over ¼2 million (about £1. The IBOs are self-employed and are highly motivated. for example. Since 2001. Amway and its IBOs across Europe have been supporting UNICEF¶s child survival programme. the focus is on trying to reach the most vulnerable children and pregnant mothers. largely through preventable diseases. One out of ten children in Kenya does not live to see its fifth birthday. The IBOs are Amway¶s links with consumers and the communities in which they operate. which are about being honest and responsible in trading. It is about making health systems stronger and promoting activities that help communities and families to improve child-care practices. providing measles vaccines to children across the globe. The aim is to increase immunisation from 40% to 70%. food and drinks. In Kilifi.

In shaping the strategy. These were to: y y y build loyalty and pride among IBOs and employees enhance Amway¶s reputation as a caring organisation make a real difference to human lives. Amway¶s Global Cause strategy involves creating responsible plans that make a difference. Developing a strategy A strategy is an organisational plan. Amway set out some clear objectives for its strategy. An important value for Amway is being a caring company. In other words a strategy shows how a business will achieve its goals. However. It recognises the importance of building good working relationships with UNICEF in each market in order to launch fundraising programmes through Amway¶s IBOs and their customers. UNICEF¶s world child µImmunisation Plus¶ programme is a fitting focus for the activities of Amway UK and its IBOs. The views of IBOs are influential in creating strategies for Amway. For under £12 a child can be vaccinated against these diseases and has a fighting chance to reach adulthood. Effective strategies involve discussion and communication with others. All Directors design strategies for the whole of an organisation. Identifying stakeholders . In 2005 Amway UK¶s partnership was deepened through becoming an official Corporate Partner of UNICEF UK. The UK initiative is part of a European-wide fundraising campaign for children. research was carried out to find out which global causes IBOs support. Implementing a strategy involves putting that plan into action. Objectives From the outset. it is able through CSR actions to help communities to grow and prosper too. The results showed that many favoured a cause that helped children. As the Amway organisation grows and prospers. Working together the two parties raise money for UNICEF. Amway¶s strategies for corporate social responsibility are cascaded through the organisation as shown below. the strategy is flexible. Child mortality is particularly high in developing countries because of infectious diseases.elements of the programme involve seeking to prevent the transmission of HIV/AIDS to infants. The strategy thus enables an organisation to turn its values into action.000 (about £350. The objective is to raise ¼500. Amway believes in demonstrating this caring approach and this is why it has partnered with UNICEF. Values are what a company stands for. Many children could still be alive if they had been vaccinated. There was a clear fit between Amway¶s aims to help children and UNICEF¶s µImmunisation Plus¶ programme for children. The Corporate Partnership is a closer longer-term relationship which benefits both partners.000) every year until 2010 across Amway Europe.

Communication also helps in putting the strategy into practice. Amway is able to discuss the vision and objectives. A number of communications media are used: 1. Face-to-face communication: Regular meetings take place between UNICEF. Email communication: Email is very important in the company ± it plays a significant part in keeping IBOs up-to-date. Fundraising Amway Europe provides support for fundraising to the extent of ¼500. They were able to hear firsthand experiences from UNICEF staff about their roles and UNICEF¶s work as well as where the money goes. Its IBOs are people who want to make a difference to the communities in which they operate and to the wider world community. 3. particularly at launch events for the initiative (e. Public relations materials are also important. Conclusion Amway is a family business with family values. Amway UK¶s support goes well beyond these activities.g. 5.000) per year through selling items such as: y y y y greetings cards multi-cultural gifts and cards stationery and wrapping paper toys for children. in Milton Keynes in 2006).000 or more IBOs) where requested. In 2005 the two organisations arranged a joint briefing day for IBO Leaders. It then passes the message on by meeting with IBOs. However. . it involves staff fundraising events and raffles organised by the IBOs. 2. Printed material: Amway produces a monthly magazine for all IBOs called Amagram. In addition. UNICEF attends IBO major events (usually supported by 1.000 (about £350.Amway¶s Corporate Social Responsibility strategy has been developed with the interests of the following stakeholders in mind: Communicating the strategy Good. literature and merchandise. clear communication is essential in making sure that the CSR strategy relates directly to the company business objectives. Online activities: There is a micro-site dedicated to the Amway UK/UNICEF partnership on the UNICEF UK website. Amway and its IBOs. 4. Through meetings with UNICEF staff. A UNICEF stand outlines the work with speakers. This is Corporate Social Responsibility (CSR) in action.

Read More . The sponsorship will also give the Miss America Organization the opportunity to work with the entire Amway Global family of brands. is the Official Skin Care and Cosmetics Provider of the Miss America Pageant. Evaluation is taking place to measure the success of the initiative in terms of meeting fundraising goals. Of course. Promotion Promotion Promotion Promotion eSpring Water Treatment System Special Promotion Bread Slicing Guide NUTRILITE Umbrella Foldable Storage Stool Promotion eSpring Bottle + Fridge Magnet Truescents Essential Oil Stress Relief Blend Featured Story Amway Global and ARTISTRY® partner with the Miss America Organization for the next two years Amway Global is proud to announce that ARTISTRY® Skin Care and Cosmetics.The clue to Amway¶s success is the careful planning of its strategy and its involvement with many stakeholders in getting the strategy right. Artistry will hold the title for both the 2010 and 2011 Miss America Pageants. Customer research is carried out to test customersµ views on the relationship and to find out how aware the general public is about what Amway is doing in the field of CSR These exciting promotions offer you better value when you purchase selected products from Amway. it is early days in the latest chapter of a strong relationship between Amway and UNICEF. beauty power brand of Amway Global.