You are on page 1of 47

PREFACE

I am extremely happy to place before the esteemed teacher COMPANY


PROFILE OF AMWAY. It is an attempt make by me to find out the leading
brands in Sagar City.
The Project Report has on objective to get the B.B.A. Studetns
familiar with real life buisness situations and gives an opportunity to the
students to understand the theoretical concepts of marketing and finance in
practical way.
The research starts with a short introduction of the company
followed by the line of the objective and research methodology.
Next Chapter Deals with the data analysis and interpretation that is
based on questionnaire. Then comes the limitation, suggestions conclusion of
the research report.
Students name : ANKITA PATEL
Class :BBA IIITH SEM.

GIMS

ACKNOWLEDGEMENT
I Wish to express my deep sense of gratitude to all who generously helped in
successful completion of the project work by sharing their valuable time and
knowledge.
I t thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for
giving me the opportunity to conduct and survey.
I Would like to express my sincere thanks to MR. MANISH JAIN
LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and
indirectly rendered me all possible hlep and guidance for preparing the report.
Finally I would like to thanks my parents, my friends without whom

completion of my project report would not have been possible.


Students name : ANKITA PATEL
Class :BBA IIIRD SEM.

GIMS

CERTIFICATE
A PROJECT REPORT ON COMPANY PROFILE ON AMWAY is
prepared by ANKITA PATEL under The guidance of Miss MR. MANISH JAIN
is a satisfactory in respect to comments
Contents and presentation of the Subject Matter.
Language
Submission with in due date.

Signature of Supervisor

Signature of Examiner Signature of HOD

GIMS

DECLARATION BY THE CANDIDATE


Date:
I declare that the project report titled COMPANY PROFILE ON AMWAY is
my own work conducted under the supervision of MR. MANISH JAIN,
Gyanveer Institute of Management and Science Sagar. To the best of my
knowledge the report does not contain any work, which has been submitted for
the award of any degree, anywhere.

Students name : ANKITA PATEL


Class :BBA IIIRD SEM.

GIMS

TABLE OF CONTENTS

Preface
Acknowledgement
Certificate
Declaration by the Candidate
TOPIC NAME

PAGE
NO.

CHAPTER 1 INTRODUCTION
(A) COMPANY PROFILE
(B) HISTORY
(C) KEY PERSON
CHAPTER 2 OBJECTIVE
CHAPTER 3 RESEARCH METHODOLOGY
(A) TYPE OF RESEARCH
(B) SOURCE OF RESEARCH
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
CHAPTER 6 SWOT ANALYSIS
CHAPTER 7 LIMITATION
CHAPTER 8 SUGGESTION AND CONCLUSION
CHAPTER 9 BIBLIOGRAPHY
CHAPTER 11 QUESTIONNAIRE

INTRODUCTION
Amway is a direct selling company that uses multi-level marketing or network
marketing to promote its products.
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
5

GIMS

sales growth of 15%, reaching US$8.4 billion for the year ending December 31,
2008. 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. Amway conducts business through a number of
affiliated companies in more than ninety countries and territories around the
world. 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.

HISTORY
Founding
Jay Van Andel and Richard DeVos, friends since school days, had been
business partners in various endeavors including a hamburger stand, air charter
6

GIMS

service, and a sailing business. In 1949 they were introduced by Neil Maaskant
(Van Andel's second cousin) to the Nutrilite Products Corporation. Nutrilite
was a California-based direct sales company founded by Dr. Carl Rhenborg,
developer of the first multivitamin marketed in the United States. In August
1949, after a night-long talk, DeVos and Van Andel signed up to become
distributors for Nutrilite food supplements. They sold their first box the next
day for $19.50, but lost interest for the next two weeks. Shortly thereafter, at
the urging of Maaskant, who had become their sponsor, they traveled to
Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel,
with over a hundred people in attendance. After seeing promotional videos and
listening to talks by company representatives and successful distributors, they
decided to pursue the Nutrilite business opportunity with enthusiasm. They sold
their second box of supplements on their return trip to Michigan, and rapidly
proceeded to develop their new business further.
In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated
from their respective first names) for importing wooden goods from South
American countries; after their trip to the Nutrilite seminar, they dropped ] this
business and Ja-Ri became their Nutrilite distributorship. In addition to profits
on each product sold, Nutrilite also offered commission on the sales of products
by new distributors introduced to the company by existing distributorsa
system today known as multi-level marketing or network marketing. By 1958,
DeVos and Van Andel had built an organization of over 5,000 distributors.
7

GIMS

However, following concerns about the stability of Nutrilite, in April 1959 they
and some of their top distributors formed The American Way Association to
represent the distributors and look for additional products to market.
Their first product was called Frisk, a concentrated organic cleaner developed
by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture
and distribute Frisk, and later changed the name to LOC (Liquid Organic
Concentrate). They subsequently formed Amway Sales Corporation to procure
and inventory products and to handle the sales and marketing plan, and Amway
Services Corporation to handle insurance and other benefits for distributors
(Amway being an abbreviation of American Way). In 1960 they purchased a
50% share in Atco Manufacturing Company in Detroit, the original
manufacturers of LOC, and changed its name to Amway Manufacturing
Corporation. In 1964 the Amway Sales Corporation, Amway Services
Corporation, and Amway Manufacturing Corporation merged to form a single
entity, Amway Corporation Amway bought control of Nutrilite in 1972 and full
ownership in 1994.

International expansion
Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of
Asia in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to
Africa in 1997, to India and Scandinavia in 1998, to Russia in 2005, and to
8

GIMS

Vietnam in 2008. In 2008 two thirds of Amway's 58 markets reported sales


increases, including strong growth in the China, Russia and India markets.
Amway India sales grew 40% to 1128 crore (US$230million).
Amway China
Amway grew quickly in China from its market launch in 1995. In 1998, after
abuses of illegal pyramid schemes led to riots, the Chinese Government
enacted a ban on all direct selling companies, including Amway. After
negotiations, some companies like Amway, Avon, and Mary Kay continued to
operate through a network of retail stores promoted by an independent sales
force. China introduced new direct selling laws in December 2005, and in
December 2006 Amway was one of the first companies to receive a license to
resume direct sales. At the time they had a reported 180,000 sales
representatives, 140 stores, and $2 billion in annual sales. In 2007 Amway
Greater China and South-east Asia Chief Executive Eva Cheng was ranked #88
by Forbes magazine in its list of the World's Most Powerful Women. In 2008
Amway Greater China was Amway's largest market, reporting 28% growth and
sales of 17 billion (US$2.5billion).

COMPANY PROFILE

GIMS

Introduction:
Amway is the largest direct selling company and manufacturer in the
world that uses network marketing to sell a variety of products, primarily in the
health, beauty, and home care markets. 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.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.
Amway conducts business through a number of affiliated companies in more
10

GIMS

than ninety countries and territories around the world. 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.

Meaning and the History of Amway:


What does the word Amway mean? Amway is an abbreviation for
"American Way". Great companies start with great ideas, and Amway is no
exception. The idea came when two Nutralite salesmen, Rich DeVos and Jay
Van Andel were at the very top of a very successful MLM at the time; Nutralite
was sold door to door. This was the 1950s, Nutralite was a single entity
company, and by the end of the decade, Jay and Rich had built a respectable
business of their own - approximately five thousand distributors were in their
Both Mr. DeVos and Mr. Van Andel knew how to move product - build on
relationships. But what was needed was a way to expand. A way that would
allow them to multiply the efforts of what they alone could accomplish. In
1959, the American Way Association was formed. This would be the chance to
grow and set the direction of a new entity. Rich and Jay immediately set out to
find an initial product to add to the line. They purchased the rights to Frisk, a
household cleaner (which was later renamed Liquid Organic Concentrate or
L.O.C.).
In 1960, the American Way Association, now Amway, bought a
controlling share in the manufacturing facility in Michigan where LOC was
made. What this meant is that there were 3 companies all using the Amway
name. The Amway Sales handled product and distribution, Amway Services
did business related tasks (like insurance for distributors) and Amway
manufacturing, which produced LOC. By 1964, the three arms of Amway were
all merged into a single entity - Amway Corporation. The idea was by handling
the manufacturing and distribution of a product line, and then allowing a
11

GIMS

network of IBOs. This seemed like the only way to offer what Jay and Rich
originally envisioned - a solid opportunity where anyone with motivation could
excel, regardless of their background and status. This is a main part of Amway's
business philosophy. Not just products and not just sales, but a way to a better
life.
Amway continued to grow under the co-ownership of Van Andel and
Devos. In 1972, the pair purchased Nutralite outright - they now owned the
company they had started as employees with.
Amway continued to expand, reaching past the borders of the US to offer
the same opportunities in other countries:
- Australia - 1971
- Europe and parts of Asia - 1974
- Japan - 1979
- Latin America - 1985
- China - 1995
- Africa - 1997
- India - 1998
- Russia - 2005
- Vietnam -- 2008
Critics argued that the model wasn't sustainable and that growth was
mathematically limited. They cried, "Pyramid scheme!" Fifty years of steady
growth has shown this criticism has no basis in fact.
In 2008, Amway (now technically, Amway Global) reported sales of 8
billion. The company is in 58 markets worldwide and manufactures more than
450 products. Amway Global does business in more than 98 countries.

12

GIMS

Rich DeVos is still alive, although he has passed the Presidency of


Amway to his son Dick. DeVos was named one of the richest men in America
by Forbes magazine, with an estimated 4.2 billion dollars in personal wealth
(2009). DeVos owns the Orlando Magic basketball team among other assets.Jay
Van Andel passed away at age 80 in 2004. Mr. Andel's place at Amway Global
is now held by his son Steve. At his death, Van Andel's net worth was estimated
to be 2.4 billion dollars.
The company is still thriving and still offers opportunity to individuals who
have the desire to build their own business. MLM is a proven business model
that produces massive success for individuals.
Alticor and Amway Sales Growth: 1960 to 2008:
February 5th, 2009 by ibofightback Posted in Amway News

Amway global sales were reported at estimated retail until 2000 when
the holding company of Alticor was formed. This means theyre valued
assuming that they were all sold at the full retail price, not at the price they
13

GIMS

were sold to distributors/IBOs. Alticor reports actual revenue sales at the base
IBO price
Ive converted the figures so they can be properly compared. Its
important to be aware of this as many critics of the business (including some
former Diamonds who you would think know about this) have in the past
conveniently ignored the change in reporting standards and tried to claim
Amways sales peaked in 1998. Note however that Alticor sales includes
revenues from other sources such Access Business Group and Amway Grand
Plaza. In 2007 this was reported as around $100 million, so by far the majority
of the sales are through the Amway business opportunity.
Amway has grown fairly quickly since its inception. Its historic sales
data at estimated retail prices is provided below from 1959 to 2000 (in 2000
Amway switch over to Alticor. At its peak in 1997 Amway estimated retail
sales worldwide at 7 Billion USD. With the founding of Alticor, the report
methodology was changed and the actual sales to distributors instead of
estimated retail sales (ERS) have been reported since 2001. Taking the sales
data published in 2001 report into account, the ERS values are about 32%
higher than sales to distributors. The actual sales to distributors are marked
with *.
Until 1999 sales were reported at Estimated Retail. This is approximately 32%
higher than actual sales revenues from sales made to Amway distributors.
VISION OF AMWAY:
Helping people live better lives.
Showing where the business wishes to be in the future.

MISSION OF AMWAY:
14

GIMS

Through the partnering of Distributors, Employees, and the Founding


Families and the support of quality products and service, we offer all
people the opportunity to achieve their goals through the Amway Sales
and Marketing Plan. Broad over riding statement of purpose.
To facilitate best business opportunities.
To deliver high-quality products to semi-urban and urban homes in
diverse areas of insurance, home tech, home care, personal care,
cosmetics and wellness.

GOAL OF AMWAY:
The development of new business opportunities.
To increase the company's role in relations to social responsibility.
To provide excellent customer service.
Awards and Recognition:

Presented the Millennium Outstanding Service Award 2000, by the


Confederation for the Blind (AICB), in recognition for work carried out
for

the

visually

challenged.

The Indian Red Cross Society, Orissa awarded AOF a memento &
certificate for conducting a mega-Blood Donation camp of 816 units on
4th May, 2003.

The Surat Raktdaan Kendra felicitated Amway India at their annual


function on 5th Oct, 2003, for the largest number of donors at a Blood
Donation Camp (BDC) held by any financial and commercial
institution and industry. The Mayor of Surat - Snehlata Chouhan -

15

GIMS

presented a trophy and a certificate of appreciation.


Social responsibilities performed by AMWAY:
One by One Campaign for Children
Amway Opportunity Foundation (AOF)
National Project for the Blind:
Project Sunrise: The objective is to identify one orphanage/institution at each
location where Amway has a modestly-large office (52 cities). On-going
assistance to be provided in education, healthcare and vocational training under
the following heads:
Health care
Education and vocational training
Safe drinking water
Childrens Day and AOF Day celebration with Amway staff & Amway

16

GIMS

KEY PERSON OF AMWAY


Amway

Amway is an abbreviation for "American Way " and was coined in


1959 by Company founders, Jay Van Andel and Richard Devos.

Key people of Amway:


Steve Van Andel (Chairman),

Direct selling company and multi level marketing and headquarters


in Ada, Michigan,United States

17

GIMS

OBJECTIVE
(1)

To know about the consumer satisfaction

(2)

To Know about the Product detail of Amway

(3)

To Know about the Swot Analysis of Amway Company.

(4)

To Know about the company profile.

(5)

To study the consumer awareness and preference towards Amway


products

(6)

To analyse the level of satisfaction of consumer towards Amway


products

18

GIMS

RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the overall
operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was designed
in accordance with our mentor in Amway . I chose a sample of about 45
corporate customers around the Sagar City from which I can get the
instant information of whose analysis will give me the desired outcome
of my research project.
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedures. It is a descriptive cross sectional design .It is the

19

GIMS

conceptual structure with in which research is conducted; it constitutes the


blueprint for the collection, measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study
by which it is clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have to
determine who is to be sampled, how large should be the needed sample and
how sampling unit is to be selected.
Population
In my research, I have defined my population as a complete set of customers of
Sagar City
Sample Survey
As compared to census study, a sample study has been conducted by us because
of:
Wide range of population, it was impossible to cover the whole
population
Time and money constraints.
Sample Unit
In this survey I took the list of customers from the dealers of Amway in Sagar
City.
Sampling Technique
Sampling technique implies the method of choosing the sample items, the two
methods of selecting sample are:
Probability method.
Non-probability method.
20

GIMS

Probability method is those in which every item of the universe has an equal
chance of the inclusion in the sample. Non-probability methods are those that
do not provide every item in the universe with known cause of being included
in the sample. The selection process is partially subjective.
For my study, I employed the Non-probability sampling technique, in which I
got the data of the customers from the dealer of Amway

in Sagar City

Instrument of collection of data


I have used one set of questionnaire to collect data from the customers. This
questionnaire is structured and highly ordered. This includes both close ended
and open ended questions. The close ended questions included both
dichotomous and multiple choice questions.
Data analysis and interpretations
Large volumes of raw data were collected through questionnaires in my
research study. This raw data has been further converted into significant
statistical information before further interpretation so that I can answer my
research objective well.
The collected raw data was then edited and coded by the researchers to
eliminate errors and to assign data to pertinent categories. The data was then
tabulated and presented with the help of bar diagrams and pie charts.

21

GIMS

PRODUCTS DETAILS

22

GIMS

23

GIMS

24

GIMS

25

GIMS

Amway Products:
Amway offers a range of exclusive, competitive brands that meet proven
customer needs around the world. From nutritional supplements to water
treatment, cosmetics to cleaning products, these brands are the solid foundation
for a successful, independent Retail business.
Amway Personal Care Products

Nutrilite is the worlds leading brand of vitamin, mineral, and dietary


supplements, grown harvested and processed on its own certified organic
farms.
26

GIMS

Artistry is one of the worlds top five largest-selling prestige brands of facial
skin care and colour cosmetics. Our scientists and formulators have developed
the complete line of
cosmetics,

All products of Attitude contain Skin Vitalising Complex that synergistically


combine to cleanse, Replenish & Moisturise the skin making it soft & supple.

Dynamite's range of male grooming products, formulated internationally is


designed to deliver the ultimate grooming experience.

Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent


that offers seven benefits.

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.

27

GIMS

Satinique Advanced Range with unique Ceramide Infusion System uses


nature's own renewing technology to rejuvenate, strengthen and protect your
hair.

SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans
and softens.

G&H Range enriched with the goodness of Glycerine and Honey, deeply
nourishes and hydrates the skin for a healthy glow.

LOC High Suds is a multipurpose household liquid cleaner.

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic


Detergency System".

Great Value Product Range offers you Great Quality, Great Performance, Great
Price

and a Money Back Guarantee!

Amways competitors:
1) Direct competitors:

AVON

MARY KAY
28

GIMS

SUNRIDER

2) Indirect competitors:
Local INDIAN companies.
Changing Political & Economic Atmosphere
Products used as samples to persuade relatives and friends to join
Amway
Focus shifted from selling products to recruiting.

DATA NALAYSIS AND INTERPRETATION


AWARENESS IN RELATION TO ALL ASPECTS OF AMWAY
PRODUCTS
The following Table No.17 reveals the opinion of respondents in relation
to all respects towards Amway products.
TABLE NO.17 AWARENESS IN RELATION TO ALL ASPECTS OF
AMWAY PRODUCTS
Yes
No
Not sure

No of Respondents
41
30
49

29

Percent
34.17
25.00
40.83

GIMS

INTERPRETATION
Table No.17inferred that 40.83% of the respondents are not sure that they
are aware about all aspects relating to Amway products.34.17% of the
respondents says that they are fully aware about all aspects relating to Amway
products.25% of the respondents says that they are not fully aware.
RESULT
It is concluded that most (40.83%) of the respondents are not sure about
all aspects relating to Amway products.

SOURCE OF AWARENESS
Source of awareness through which the respondents is introduced to the
Amway products.
TABLE NO.18 SOURCE OF AWARENESS

No of
Respondents
Distributors
32
friends
57
relatives
21
advertisement 10
Total
120

30

Percent
26.67
47.50
17.50
8.33
100.00

GIMS

INTERPRETATION
The above Table No.18 explains that 47.5% of the respondents says that
their source of awareness is friends. 26.67% of the respondents say that their
source of awareness is distributors.17.5% of the respondents says that their
source of awareness is relatives.8.33% of the respondents says that their source
of awareness is advertisement.

PERIOD OF USAGE
The following Table No.19 explains how long the respondents have been
using the Amway products.
TABLE NO.19 TIME PERIOD OF USING AMWAY PRODUCTS

No of
Percent
Respondents
> 1 yrs
2-4 yrs
5-6 yrs

45
59
12

37.50
49.17
10.00

31

GIMS

more than 6
yrs

3.33

Total

120

100.00

INTERPRETATION
The above Table No.19 reveals that 49.17% of the respondents says that
they have been using Amway products ranging between 2-4 years.37.5% of the
respondents says that they have been using Amway products for less than 1
year 10% of the respondents says that they have been using Amway products
for 5-6 years.3.3% of the respondents says that they have been using Amway
products for more than 6 years.
PRIORITY FOR CHOOSING AMWAY PRODUCTS
The following Table No.20 explains the priority in choosing the Amway
products.

32

GIMS

INTERPRETATION
Table No.20 inferred that 30% of the respondents prefer Amway
products due to brand image and ingredients these two factors are ranked most.
24.2% and 25% of the respondents prefer Amway products due to distributor
services and eco-friendly respectively. 21.7% of the respondents choose to use
Amway products due to its packing and 60.8% of the respondents gave least
ranking to price.

PRIORITY IN CHOOSING DIFFERENT CATEGORIES OF AMWAY


PRODUCTS
The following Table No.21 explains the consumer preference in relation
to various categories of Amway products.
33

GIMS

INTERPRETATION
From the Table No.21 explains that 28.3% of the respondents prefer
health care products the most. 26.7% of the respondents choose home care
products, 21.7% of the respondents give next preference to personal care and
beauty care and 40% of the respondents have given least importance to oral
care products.

LEVEL OF SATISFACTION
The following Table No.22 explains the respondents level of satisfaction
with various factors of Amway products.

34

GIMS

INTERPRETATION
Table No.22 inferred that 50% of the respondents are highly satisfied
with brand, 26.7% of the respondents are satisfied with the price. 40.8% of the
respondents are satisfied with quality. 35.8% of the respondents are satisfied
with the easy-availability and 27.5% of the respondents are satisfied with the
offers.

RECOMMENDATION OF AMWAY PRODUCTS TO OTHERS:


The following Table No.23 explains respondents view with regard to
recommendation of Amway products to others.
TABLE NO.23 RECOMMENDATION OF AMWAY PRODUCTS TO
OTHERS
35

GIMS

No of
Respondents
94
26
120

Yes
No
Total

Percent
78.33
21.67
100.00

INTERPRETATION
Table No.23 reveals that 78.33% of the respondents says that they will
recommend Amway products to others and 21.67% of the respondents says
they will not recommend Amway products to others.

DISTRIBUTOR SERVICE
The following Table No.24 reveals the respondents exact answer whether
they would become a distributor of Amway
TABLE NO.24 DISTRIBUTOR SERVICE

36

GIMS

No of
Yes

Percent
Respondents
27
28.72

No

67

71.28

94

100.00

Total
INTERPRETATION
Table

No.24

inferred that

71.28% of

the respondents

says that they

will not become

an Amway

distributor and

28.72% of

the respondents

says that they

will become an Amway distributor.

SWITCH OVER OF PREFERENCE TO OTHER PRODUCTS


Respondents may switch over their preference to other products due to
various reasons. The following Table No.25 explains the respondents switch
over of preference to other products other than Amway.
TABLE NO.25 SWITCH OVER TO OTHER PRODUCTS

37

GIMS

No of
Respondents

Percent

Yes

69

57.50

No

51

42.50

Total

120

100.00

INTERPRETATION
Table No.25 explains that 57.50% of the respondents says that they will
not switch over to any other product and 42.50% of the respondents says that
they will switch over to other product.

SWOT ANALYSIS OF AMWAY:


STRENGTH:

38

GIMS

Based on direct selling operations. Hence it can be A home based business. Every can
participate in business. Its easy to get admission in Amway with easy rout like
intent.

Training to staff.

Functions are performed by IBOs.

Organize meetings and events time to time.

Have good customer service system.

Backed by a 100% Customer Product Refund Policy produce faith and reselling
attitude in customers.

Quality Products that Inspire Confidence. Almost no risk of money as world class
quality Minimal start up costs gives strong base to the initiation of business. So
everyone can participate in business. The person who wants do something can be
make profit with investment of low cost.
Products are easy to sell.

A business with national and international scope gives more opportunity to the
costumers.

The possibility of financial security and freedom of time to enjoy life.

WEAKNESS:

More power to IBOs gives critical structure to organization.

Initially high entry cost leads to somewhat restrictions for business development.

Rumors for direct selling operations.

Focus shifted from selling products to recruiting.

OPPURTUNITIES:

Setup a manufacturing plant in all countries leads to better platform for company.

Population of INDIA gives better opportunity to company to receive more profit.


39

GIMS

As the company name itself gives reliance and faith for the customer and buyer
produce greater opportunity for marketing which leads to decrease in total
expenditure of company.

THREATS:

Too much freedom to IBOs.

Change in government policy may affect to the profit and freedom of company.

Competitors like AVON, MARY KAY; SUNRIDER creates lot of competition in


market which leads to strong marketing competition in market.

40

GIMS

LIMITATION
(1)

When the buyers are busy we cant get accurate data from them.

(2)

According to the time limit of our project

we can cover only the

some area.
(3)

During survey some respondents may not give answer in proper


manner.

41

GIMS

SUGGESTIONS:
Marketing can add to the advantage. So, it should be taken care of.
Better offers can be made to attract the customer demand.
THE NETWORK NEEDS TO BE GROWN.
Trial packs should be used because customer must have to introduce
the product. Once customer gets idea about product he comes to
know advantages of products.
The products should be cheap the home delivery system takes at
least two days to deliver the products so the delivery should be
instant.
There must be multiple options for purchasing the products for
distributers like online, tale and instant purchasing.
In every city, the Amway office should be situated in such a location
so that it is in reach of all distributers.

42

GIMS

CONCLUSION:
A survey is done to identify various problems and level of satisfaction of
consumers, so that efforts can be made to satisfy them which would
result in building long term relationship between the customer and
company. This survey has lead to the knowledge about the offerings,
brand awareness among the customers and customer satisfaction. Due
to delivery in customer need and expectations, it becomes a difficult
task to satisfy every customer, therefore to satisfy each and every
customer the importance of building relationship with them exists.
For this purpose a number of questions were asked to find out
behavior of customer. This research is also done to know the views of
the customer towards the products and quality provided to them by
AMWAY. And according to the survey, the customers seem contended
with the products and services by AMWAY.

43

GIMS

BIBLIOGRAPHY
BOOKS
Statistics For Management- Richard I. Levin, David S. Rubin
Fundamentals of Statistics- D.N. Elhance
Research Methodology- C.R. Kothari
MAGAZINES & NEWSPAPERS
The Economic Times
The Times of India
Business World
Business Today
WEBSITES
www.multimarketing.com
www.amway.com

44

GIMS

QUESTIONNAIRE
1. ARE YOU AWARE ABOUT ALL ASPECTS RELATING TO AMWAY PRODUCTS
A) YES
B) NO
C) NOT SURE
2. SOURCES OF AWARENESS
A) DISTRIBUTORS
B) FRIENDS
C) RELATIVES
D) ADVERTISEMENT
3. HOW LONG HAVE YOU BEEN USING AMWAY PRODUCTS
A) > 1 YEAR
B) 2-4 YEARS
C) 5-6 YEARS
D) MORE THAN 6 YEARS
4. RANK THE FOLLOWING CRITERIA FOR CHOOSING AMWAY PRODUCTS

CRITERIA
PRICE
PACKING
INGREDIENTS
ECO-FRIENDLY
DISTRIBUTOR SERVICES
BRAND IMAGE

RANK

24. RANK THE AMWAY PRODUCTS ACCORDING TO YOUR CHOICE AND


PREFERENCE
PRODUCTS
PERSONAL CARE
ORAL CARE
BEAUTY CARE
HEALTH CARE
HOME CARE

RANK

45

GIMS

5. RATE THE LEVEL OF SATISFACTION ON AMWAY PRODUCTS


CATEGORY

HIGHLY
SATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

HIGHLY
DISSATISFI
ED

BRAND
PRICE
QUALITY
EASYAVAILABLI
TY
OFFERS

6. WILL YOU RECOMMEND AMWAY PRODUCTS TO OTHERS


A) YES
B) NO
7. IF YES, WILL YOU BECOME AN AMWAY DISTRIBUTOR
A) YES
B) NO
8. WILL YOU SWITCH OVER TO ANY OTHER PRODUCT
A) YES
B) NO
9. IF YES, WHAT IS THE REASON
A) PRODUCTS ARE COSTLY
B) NOT AVAILABLE IN NEAR BY SHOPS
C) NO OFFERS
10. SUGGESTIONS, IF ANY____________________

46

GIMS