INTRODUCTION

Amway is the largest direct company and manufacturer in the world that uses network
marketing to sell a variety of products, primarily in the health, beauty, and
homecare markets. Amway was founded in 1959 by Jay Van Andel and Richard
DeVos. Based inAda, Michigan, the company and family of companies under Alticor reported
sales growth of 2.3%, reachingUS$8 . 4 b i l l i o n f o r t h e y e a r e n d i n g D e c e m b e r 3 1 ,
2 0 0 9 . I t s p r o d u c t l i n e s include home care products, personal care products,
jewelry, electronics, Nutrilite dietary supplements, water purifiers , a i r p u r i f i e r s ,
i n s u r a n c e a n d cosmetics.I n 2 0 0 4 , H e a l t h & 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 aroundthe world. It is ranked by
Forbes as one of the largest private companies in the United Statesand by Deloitteas
one of the largest retailers in the world.

Amway (short for American Way) is an American multinational direct-selling company that
uses multi-level 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 17%, exceeding
USD$10.9 billion for the year ended December 31, 2011 - the sixth consecutive year of growth
for the company.

Amway generates US $ 9.2 billion (January - December '09) in sales at estimated retail through
this global product distribution network

In the following decades, Amway Corporation successfully established itself as a leading

multilevel marketing business, built on strong values and founding principles that continue to
sustain our company today. The business is built on the simple integrity of helping people lead
better lives.
Steve Van Andel is chairman and Doug DeVos is president. The board of directors is controlled
by the Van Andel and DeVos families.
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.
We offer over 3 million Business Owners the inspiration to grow those businesses, and we work
hard to provide new and better ways for them to achieve their life goals.
Amway offers the opportunity for people to have a business of their own based on retailing
beauty, nutritional, wellness and household products and sharing the opportunity with others who
will do the same.
Amway has more than 13,000 employees worldwide. In addition, Amway distributors are part of
a sales force of more than 3 million owners around the world.
Amway operates in more than 80 countries and territories on six continents.
AWARDS

 As a corporate leader in promoting environmental awareness and education, Amway

received the prestigious United Nations Environment Programme Achievement Award in
1989.
 Corporate Citizenship Award - On November 08, 2005, 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

PRODUCTS AND SERVICES

More than 450 unique, high-quality products carry the Amway name in the areas of nutrition,
wellness, beauty and home.
In addition, Amway distributors in selected markets sell additional brand-name goods through
local merchandise catalogues, plus a variety of services and educational products.
All products are backed by a customer satisfaction guarantee.

FACILITIES
Amway operates out of Alticor’s world headquarters located at 7575 Fulton Street East, Ada,
Michigan 49355, USA. Its North American affiliate headquarters are located at 5101 Spaulding
Plaza, Ada, Michigan 49355, USA.

COMMUNITY SERVICES
Amway has a long history of sharing with the communities where it does business, both through
volunteer efforts and charitable contributions.
In 2003, Amway launched the One by One Campaign for Children to focus its philanthropic
efforts on children. Today, in every country and every community where
Amway operates, thousands of employee and distributor volunteers support hundreds of
charitable organizations to offer children the resources they need to live, achieve, learn, and
play.

AFFILIATIONS
Amway is a prominent and active member of the regional and national direct selling associations
worldwide. Doug DeVos is vice-chairman of the World Federation of Direct Selling Associations
(WFDSA), and serves on the WFDSA CEO Council.
He is also past chairman of the board of directors for the U.S. Direct Selling Association.
Globally, direct selling is an industry with more than $113 billion in estimated retail sales and
more than 66 million sales people.
Amway India Factsheet
COUNTRY’S NO 1 DIRECT SELLING COMPANIES
 Amway India is the country’s leading direct selling FMCG-company which manufactures
and sells world-class consumer products. All its products are covered by a 100 per cent
Money Back Guarantee. If not completely satisfied with the product, the consumer can
return it for a 100% refund.
 There is no joining fee for the Amway business – any adult can enrol as an Amway
distributor, without any payment.

CORPORATE CREDENTIALS
 Amway India is a wholly owned subsidiary of US $ 10.9 billion Amway Corporation, Ada,
Michigan, USA. Amway Corporation is one of the largest Direct Selling companies in the
world. It has a presence in 80 countries & territories.

 Established in 1995, Amway India commenced commercial operations in May 1998 and
has emerged as the largest Direct Selling FMCG Company. The Company has its
headquarters in the National Capital Region of India - New Delhi.

 Amway has invested in excess of Rs. 200 crore in India of this; Rs. 22 crore is in the
form of direct foreign investment.

 Amway India has 500 full time employees and has generated indirect employment
for 2000 persons at all the contract manufacturer locations.

 The Company has provided income-generating opportunities to over 550,000 active

independent Amway Business Owners.

 Amway India provides free and unlimited training to all its distributors to help them grow
their business. Amway India conducts over 20,000 training sessions during an average
12-month period with an attendance of over 1.5 million Amway Business Owners and
prospects.

 Amway India recorded a sales turnover of over Rs. 2130 crore in 2011, up from Rs.1790
crores in 2010.

 Amway India is a member of the Confederation of Indian Industries (CII) and Federation
of Indian Chambers of Commerce (FICCI).

 The World Blind Union presented an award and citation to Amway India in 2003, for its
peerless work for the blind child.
NATIONAL PRESENCE
 In thirteen years of commercial operation, Amway India has established a nation-wide
presence of over 135 offices and 55 city warehouses and four regional mother
warehouses. The distribution and home delivery network set up with the support of
independent logistics partners is spread across over 5500 locations.

MANUFACTURING
 Almost all Amway India products are manufactured in the country through seven third
party contract manufacturers. To bring the identified contract manufacturers’ production
facilities and skills to international standard, Amway has invested in transfer of state-of-
the-art, world-class technology to the contract manufacturers free of cost.

PRODUCTS
 At present, Amway India offers over 130 products in five categories. They are Personal care
category, Home Care category, Nutrition & Wellness category, Cosmetics and Great Value
Products.
 With the exception of Cosmetics range (Artistry*) and some products in Nutrition and
Wellness category, all Amway India products and bottles are manufactured in India.

 The products match Amway’s global quality standards. They carry a tamper-proof seal and a
‘100 per cent Money Back Guarantee'. Amway products are environment friendly, and are
not tested on animals. Amway encourages the return of its used product bottles for re-cycling
and to prevent their misuse.

PROMOTING FREE ENTERPRISE AND SELF-EMPLOYMENT

 Amway distributors follow a Code of Ethics and Rules of Conduct consistent with the
World Federation of Direct Selling Associations (WFDSA), which defines the goals,
principles and responsibilities in building and operating an Amway business.
 Amway India is a member of the Indian Direct Selling Association (IDSA). The IDSA is
an industry regulatory body, with several reputed international and Indian Direct Selling
companies as members.
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 t w o N u t r a l i t e ® s a l e s m e n , R i c h D e Vo s a n d J a y Va n A n d e l w e r e a t t h e
v e r y t o p o f a v e r y successful MLM at the time; Nutralite was sold door to door.
This was the 1950s, Nutralitew a s a s i n g l e e n t i t y c o m p a n y , a n d b y t h e
e n d o f t h e d e c a d e , J a y a n d R i c h h a d b u i l t r espectable 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. T h i s
w o u l d b e t h e c h a n c e t o g r o w a n d s e t t h e d i r e c t i o n o f a n e w e n t i t y.
R i c h a n d J a y 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 w e r e 3 c o m p a n i e s a l l u s i n g t h e A m w a y
n a m e . T h e A m w a y S a l e s h a n d l e d p r o d u c t a n d 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
w a s b y h a n d l i n g t h e manufacturing and distribution of a product line, and
then allowing a network of IBOs. This s e e m e d l i k e t h e o n l y w a y t o o f f e r
w h a t J a y a n d R i c h o r i g i n a l l y e n v i s i o n e d - a s o l i d 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.
Company Profile

Type Private.
Industry Direct selling.
Founded 1959
Founder(s) Rich DeVosJay Van Andel
Headquarters Ada,Michigan, United States
Area served Worldwide
Key people Steve Van Andel(Chairman)
Doug DeVos(President)
Al Koop(Chief Executive)
Russell Evan(CFO)
Revenue USD 8.4 billion (2009)
Employees 13,000
Parent Alticor
An organizational structure i s a m a i n l y hierarchical concept of subordination
of entities that collaborate and contribute to serve one common aim. Organizations are a variant
of clustered entities . An organization can be structured in many different ways
and styles, depending on their objectives and ambience. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, workgroup
and individual. Individuals in an organizational structure are normally hired
under limited worker work orders , o r u n d e r permanent employment contracts or
program orders. In order to achieve the desired goals, sound and effective
organizational structure is necessary. Organizational structure, as we know is the system of
job positions, roles assigned to these positions and specifying authority,
responsibility and task of every positions. The structure undoubtedly provides
basic framework for executive and employees to perform their task smoothly.

The following points must be taken into consideration while building

organizational structure:

• Job design
Jobs should be designed in such a way, that job should have specified and
defined task to be performed. Jobs should be designed in such fashion that
every individual could contribute his maximum worth to the enterprise. The major and
related activities of the jobs should also be specified.

• Departmentation or Grouping of Identical Jobs

Identical and similar jobs should be grouped together in a department and
placed under d e p a r t m e n t a l h e a d . S u c h d e p a r t m e n t a t i o n w i l l
help in building coordination b e t w e e n different jobs and
managers. Departments can be established on different basis. It may
have production, marketing and finance departments, if it is based upon functions.

• Span of Control
Under span of control, the number of employees and jobs managed by each
manager is specified. The chain of command is also clearly stated. It is
specified that who will report who is the smooth performance of his duties.
Effective span of control avoids overlapping, duplication and confusion in the work.

•Delegation of Authority
In order to get the job done properly and smoothly, requisite authorities are granted to the
managers. Authority is the power to command employees and instruct them to
do a piece of w o r k . T h e a u t h o r i t y e m p o w e r s t o k n o w c e r t a i n f a c t s , t o
e n j o y p r i v i l e g e d p o s i t i o n a n d command respect and obedience from
employees. Delegation is no doubt, sharing task with r e q u i s i t e a u t h o r i t y
with subordinates. As such the manger multiplies himself
t h r o u g h delegation.
Organizational structures types:

• Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This
structure s most common in smaller organizations and is best used to solve simple tasks. The
structures totally centralized. The strategic leader makes all key decisions and
most communication s d o n e b y o n e o n o n e c o n v e r s a t i o n . I t i s
p a r t i c u l a r l y u s e f u l f o r n e w ( e n t r e p r e n e u r i a l ) business as it enables the
founder to control growth and development. They are usually based on traditional
or domination in the sense of Max Weber 'tripartite.

• Bureaucratic structures
Bureaucratic structures have a certain degree of standardization. They are better
suited for more complex or larger scale organizations. They usually adopt a tall
structure. Then tension between bureaucratic structures and non-bureaucratic is
echoed in Burns and Stalker d i s t i n c t i o n b e t w e e n m e c h a n i s t i c a n d
organic structures. It is not the entire thing about b u r e a u c r a t i c
structure. It is very much complex and useful for
h i e r a r c h i c a l s t r u c t u r e s organization, mostly in tall organizations.

• Post-bureaucratic
The term of post bureaucratic is used in two senses in the organizational
literature. One generic and one much more specific. In the generic sense the
term post bureaucratic is often u s e d t o d e s c r i b e a r a n g e o f i d e a s
developed since the 1980s that specifically contrast
themselves with Weber's ideal type bureaucracy. This may include total culture managem ent
and matrix managem ent , amongst others. None of these however has left behind
the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber ’s
rational, legal type, and the organization is still rule bound. Huckster, arguing
along these lines, describes them as cleaned up bureaucracies, rather than a
fundamental shift away from bureaucracy.G i d e o n K u n d a , i n h i s c l a s s i c
s t u d y o f c u l t u r e m a n a g e m e n t a t ' T e c h ' a r g u e d t h a t “ t h e essence of
bureaucratic control - the formalization, codification and enforcement of rules and regulations
- does not change in principle.....it shifts focus from organizational structure to
the organization's culture”. Another smaller group of theorists have developed the
theory of the Post-Bureaucratic Organization; provide a detailed discussion which
attempts to describe an organization that is fundamentally not bureaucratic. Charles
h a s d e v e l o p e d a n i d e a l t y p e , t h e p o s t - bureaucratic organization, in
which decisions are based on dialogue and consensus rather than authority and
command, the organization is a network rather than a hierarchy, open at t h e
boundaries (in direct contrast to culture management); there is an
emphasis on meta-decision making rules rather than decision
m a k i n g r u l e s . T h i s s o r t o f h o r i z o n t a l d e c i s i o n -making by consensus
model is often used in housing cooperatives, other cooperatives and w h e n
r u n n i n g a profit or community organization . I t i s u s e d i n o r d e r t o
e n c o u r a g e participation and help to empower people who normally experience oppression
in groups. E m p l o y e e s w i t h i n t h e f u n c t i o n a l d i v i s i o n s o f a n
o r g a n i z a t i o n t e n d t o p e r f o r m s pecialized set of tasks, for instance
the engineering department would be staffed only with software engineers. This leads
to operational efficiencies within that group. However it could also lead to a lack of
communication between the functional groups within an organization, making the
organization slow and inflexible. As a whole, a functional organization is best suited
as a producer of standardized goods a n d s e r v i c e s a t l a r g e v o l u m e a n d l o w
c o s t . C o o r d i n a t i o n a n d s p e c i a l i z a t i o n o f t a s k s a r e centralized in a
functional structure, which makes producing a limited amount of products or services efficient
and predictable. Moreover, efficiencies can further be realized as functional o r g a n i z a t i o n s
integrate their activities vertically so that products are sold and
d i s t r i b u t e d quickly and at low cost. For instance, a small business could start
making the components it requires for production of its products instead of
procuring it from an external organization. But not only beneficial for organization but
also for employees faiths
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 tec hnically, Amway Global) reported sales of 8
billion. The c o m p a n y i s i n 5 8 m a r k e t s w o r l d w i d e a n d m a n u f a c t u r e s m o r e
t h a n 4 5 0 p r o d u c t s . A m w a y Global does business in more than 98 countries. Rich DeVos
is still alive, although he has passed the Presidency of Amway to his sonDick. DeVos was
named one of the richest men in America by Forbes magazine, with an e s t i m a t e d
4 . 2 b i l l i o n d o l l a r s i n p e r s o n a l w e a l t h ( 2 0 0 9 ) . D e Vo s o w n s t h e O r l a n d o
M a g i c b a s k e t b a l l t e a m a m o n g o t h e r a s s e t s . J a y Va n A n d e l p a s s e d a w a y a t
a g e 8 0 i n 2 0 0 4 . M r. 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 desireto build their own business. MLM is a proven business model that
produces massive successfor individuals.
• Alticor and Amway Sales Growth: 1960 to 2008:
February 5th, 2009 by ibofightback Posted inAmway News
Amway global sales were reported at “estimated retail” until 2000 when the holding
company of Alticor was formed. This means they’re valued assuming that they were all sold at
the full retail price, not at the price they were sold to distributors/IBOs. Alticor
reports actual revenue – sales at the base IBO price I ’ v e c o n v e r t e d t h e f i g u r e s s o t h e y
c a n b e p r o p e r l y c o m p a r e d . I t ’s i m p o r t a n t t o b e a w a r e o f t h i s a s m a n y
c r i t i c s o f t h e b u s i n e s s ( i n c l u d i n g s o m e f o r m e r D i a m o n d s w h o y o u would
think know about this) have in the past conveniently ignored the change in reporting
standards and tried to claim Amway’s sales peaked in 1998. Note however that
Alticor sales includes revenues from other sources such Access Business Group and Amway
Grand Plaza. I n 2 0 0 7 t h i s w a s r e p o r t e d a s a r o u n d $ 1 0 0 m i l l i o n , s o b y f a r t h e
m a j o r i t y o f t h e s a l e s a r e through the Amway business opportunity.

Amway Sales Data:

Amway has grown fairly quickly since its inception. Its historic
s a l e s d a t a a t 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 t h e f o u n d i n g o f Alticor, t h e r e p o r t
m e t h o d o l o g y w a s c h a n g e d a n d t h e a c t u a l s a l e s t o 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:
• Through the partnering of Distributors, Employees, and the Founding Families andthe 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
Confederationf o r t h e B l i n d ( A I C B ) , i n r e c o g n i t i o n f o r w o r k
c a r r i e d o u t f o r t h e v i s u a l l y 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 5thOct, 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 - 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
· Children’s Day and AOF Day celebration with Amway staff & Amway

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.

Active Lifestyle
•Artistry
• Atmosphere
•Beautycycle
•Body Series
•Boutique
•Dish Drops
•Eddie Funk Houser
•Emma Page
•eSpring
•L.O.C.
•Gensona
•Glister
•Hymm
•iCook
•LifeStyle Balanced Solutions
•NAO Cosmetics
•Moiskin Skin Care
•Nutrilite
•Nutriway
•XS Energy
•Ocean Essentials
•Personalized Health
•Peter Island
•Protique
•Positrim
•Satinique
•SA8
•Time Defiance
•Tolsom
•Trim
Amway Personal Care Products

Nutrilite® is the world’s leading brand of vitamin, mineral, and dietary

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

Artistry® is one of the world’s 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 & Moisturize the skin making it soft & supple.

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

d e s i g n e d t o deliver the ultimate grooming experience.

G l i s t e r To o t h p a s t e i s a r e v o l u t i o n a r y Multi-Action To o t h p a s t e with
S y l o d e n t t h a t o ff e r s seven benefits.

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.
Satinique Advanced Range with unique Cera mide Infusion System uses
n a t u r e ' s o w n renewing technology to rejuvenate, strengthen and protect your hair.

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

G & H R a n g e e n r i c h e d w i t h t h e g o o d n e s s o f G l y c e r i n e a n d H o n e y, d e e p l y
n o u r i s h e s a n d 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".

G r e a t Va l u e P r o d u c t R a n g e o ff e r s y o u G r e a t Q u a l i t y, G r e a t P e r f o r m a n c e ,
G r e a t P r i c e and a Money Back Guarantee!
Amway’s competitors:

1) Direct competitors:

•AVON
•MARY KAY
•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.
Organizational structure of Amway

Terms used in Amway:

• IBO/ABO/AIE-Independent Business Owner/Amway Business Owner/Amway Independent

Entrepreneur i s a b u s i n e s s p a r t n e r o f A m w a y w h o i s a u t h o r i z e d t o market and
distribute products and services available from Amway. Different names are used in
different markets.
• Distributor- an older term for IBO
• PV — Point Value is a value assigned to each product or service sold by Amway. An
IBOs monthly performance bonus bracket depends on total PV in a month.
• BV — Business Volume is typically the wholesale cost of the product or service sold by
Amway. Performance bonuses are multiplied by the group’s total BV.
• Performance bonus is the monthly bonus paid by Amway to IBO's. The higher the
P V, t h e g r e a t e r t h e p e r c e n t a g e e a r n e d . I n N o r t h A m e r i c a t h e P e r f o r m a n c e
b o n u s ranges from 3% to 25%. In other markets it ranges from 3% to 21%. In India it ranges
from 6%-21%.
• Retail Profit i s t h e m a r k u p e a r n e d b y a n I B O w h e n t h e y s e l l a
p r o d u c t t o a c o n s u m e r, e i t h e r p e r s o n a l l y o r t h r o u g h a n A m w a y w e b s i t e .
R e c o m m e n d e d r e t a i l markup ranges from 20%-35%.
• Sponsor is an IBO who refers (sponsors) a new IBO to Amway, although IBO's do
not get paid to sponsor.
• Upline is the term used to refer all the IBOs up in the line of sponsorship of an IBO.
• Downline is the term used to refer all the IBOs down in the line of sponsorship of
anIBO. They are collectively also known as group
• Leg refers to a personally sponsored IBO and all of their downline.
• Silver Producer i s a n I B O w h o h a s r e a c h e d t h e m a x i m u m b o n u s l e v e l
f o r o n e month.
• Gold Producer i s a n I B O w h o h a s r e a c h e d t h e m a x i m u m b o n u s l e v e l
f o r t h r e e months.
•Platinum or direct i s a n I B O w h o h a s r e a c h e d t h e m a x i m u m b o n u s l e v e l f o r
sixmonths. In North America Platinum is generating a minimum of
a p p r o x i m a t e l y $30,000 in sales volume per month.
• Emerald a distributor with at least three legs generating Silver Producer volume
for at least 6 months of a year.
• Diamond a distributor with at least six legs generating Silver Producer volume for
at least 6 months of a year.
•Q-12 is a Platinum or higher IBO that qualifies every month for 12 months of a year.
Independent Business Owner (IBO):
An IBO is, literally, an Independent Business Owner: an individual or individuals who own and
operate their own business, which is powered by Amway North America, formerly Quixtar. IBOs
are the CEOs of their own businesses, and they make many of the same daily business decisions
other business executives make. As independent business men and women, IBOs decide how
active to be in their business, what products to sell and at what prices, who to sponsor, what
hours to keep, and other important decisions. IBOs are independent contractors; they are not
employees of Amway North America or Amway Corporation. As independent business owners,
IBOs are free to make decisions many others in business are not free to make.

Independent Business Owners Association International (IBOAI) :

The IBOAI (IBOA International or Independent Business Owners Association International)is a
trade association representing Independent Business Owners affiliated with Amway North
America, formerly Quixtar. It is the primary advocacy organization for IBOs in North America. A
trade association is an organization of business people who share common interests or concerns,
and who educate and represent their members. The IBOAI (or IBO International) is one example.
Role of the IBOAI Board:
The IBOAI Board is the representative body of the Association acting on behalf of all Ibos. With
IBO input, support, and participation, the IBOAI Board listens to ideas, proposes improvements,
and advises Amway on the best way to move the business forward. Working closely with
corporate staff, the Board advises Amway on every facet of the business, from products and
promotions to operations and business guidelines, as it has for 50 years. Together, they bring
positive change to this business, to keep it moving forward and make certain the business is
better for every generation.

2010 IBOAI Board and Governance & Oversight Committee:

• Steve Woods, Chairman
• Brad Duncan, Vice Chairman
• Bob Andrews, Past Chairman
Other important directors:
1. Alberto Aguilera
2. G l e n B a k e r
3. Mike Bundy
4. J o h n C r o w e
5. Howie Danzik
6. J i m D o r n a n
7. J o d y D u t t
8. Kanti Gala
9. Bert Gulick
10. Leif Johnson
11. Shivaram Kumar
12. Pedro Lizardi
13. Doug Weir
14. Doyle Yager
15. Dan Yuen
IBOs are never alone. They have a sponsor, a line of sponsorship, and the IBOAI – their primary
advocacy organization – behind them all the way.

Organization type and Business Opportunity:

The Amway is private co operative organization. The Amway Sales and Marketing
Plan put you in control, allowing you the flexibility to work where and
w h e n y o u w a n t , giving you time for family and friends as well as the opportunity
to earn a good income. It adapts easily to your needs and ambitions, and grows with them,
offering you all the personal s u p p o r t a n d a s s i s t a n c e y o u r e q u i r e t o b e c o m e t h e
B u s i n e s s O w n e r y o u w a n t t o b e . Wi t h Amway you are connected to the global
leader in multilevel marketing, with over 40 years of experience, Supported b y g r e a t
p r o d u c t s a n d p e o p l e w h o w i l l h e l p y o u s u c c e e d , a n d finally In Control of your life.

Sales and Marketing Plan:

The Amway Sales and Marketing Plan is a low risk, low start-up cost
b u s i n e s s opportunity that is open to everyone. It allows you to build your business
through retailing products and sponsoring other people who, in turn, can retail
products and offer the business opportunity to others. By passing your sales and
marketing knowledge to your developing team, you not only build your own
business network but also enable others to build one of their own
Marketing strategy:
A strategy is a plan of action designed to achieve the goals of the
o rg a n i z a t i o n . I n creasing a marketing strategy for the Super Concentrated Cleaning
System, Amway needed t o s e t o u t t h e k e y o b j e c t i v e s i t w a n t e d t o a c h i e v e .
T h e f o l l o w i n g o b j e c t i v e s f o r t h e b r a n d were set:
• To increase distribute or profitability and productivity by providing a new and exciting
business opportunity
• To o p t i m i z e c o n s u m e r c o n v e n i e n c e a n d
v a l u e t h r o u g h e n h a n c e d p r o d u c t differentiation with this
exclusive and revolutionary cleaning system
• To provide innovative and unique products to enhance the image of Amway
Homecare.

A New Strategy of Amway:

• Agreement with the government and company
• Resumed operations
• Goods will be sold in retail outlets and through
• Sales representatives
• Income of sales distributors will be based on direct selling done by them
• Same Distribution centers served as retail outlets for the company
• Localization of employees
• Localization of production and Raw Material
• Localization of research and development
• Transparency and Credibility of company’s management

Functional pattern of Amway:

Following are the main departments of Amway:

1. Finance and accounts.
2. Marketing and Sales.
3. Human resource and administration.
Amway Global provides you with support like:
Customer care:
If you have a question about anything - like registration, renewal, Business, or product
information - our Customer Care Associates can help you.

Business management:
You can manage your business, check customer Volume, order products, and renew your
business, all at Amway Global.com.

Order management:
Yo u s e l l t h e p r o d u c t s , a n d w e ' l l d o t h e r e s t , l i k e p r o c e s s t h e order, manages
your customer accounts, and handles the shipping details.

Training:
O n l i n e , v i d e o , a n d i n s t r u c t o r- l e d t r a i n i n g a r e s o m e o f t h e w a y s w e c a n
share with you the knowledge to grow a successful independent business.

Marketing:
We support your sales e ff o r t s with DVDs, online sites,
M a g a z i n e s , brochures, and free websites you can personalize. And we help Build
awareness of y o u r products and brands with national
a d v e r t i s i n g , p r o m o t i o n s , a n d e v e n t sponsorship. A m w a y b e l i e v e t h a t
q u a l i t y i m p r o v e m e n t h a p p e n s w h e n p e o p l e c o m e t o g e t h e r. T h i s core belief is
what all AOF initiatives are based upon and it holds true time and again. With a passionate and
vigorous workforce ready to contribute their bit to the well-being of society,
volunteering becomes a way of life in Amway. The 550,000 Amway distributors and
450full-time employees are all considered AOF volunteers. At 56 Amway offices
across India, O F h a s f o r m e d a t e a m o f 6 o r m o r e d i s t r i b u t o r s
a n d e m p l o y e e s t o f o r m a L o c a l Implementation Committee (LIC). LIC
takes ownership of being the face of Amway’s CSR a t t h e l o c a t i o n . T h e y
i d e n t i f y p o t e n t i a l p a r t n e r s , f o r m a p r o j e c t , a n d i m p l e m e n t t h i s w i t h other
volunteers. The LIC also plays a lead role in raising funds they wish to utilize.
The beauty of this system is that the LIC raises the funds, and then decides how best to utilize
this in their town or city.

Strategic analysis to overcome problems:

Today it is a global business that, along with its parent and sister companies,
directly e m p l o y s 1 0 , 0 0 0 p e o p l e w o r l d w i d e . T h e b u s i n e s s a l s o o p e r a t e s
strategically at a Global, European and National level. Amway (UK) began
o p e r a t i o n s i n 1 9 7 3 a n d h a s i t s o w n distribution and Product Selection Centers.
Amway has helped millions of people around the world to
s t a r t t h e i r o w n independent business, through which they engage in person-to-
person marketing. This type of direct selling involves matching a consumer's needs
with the goods and services on offer. The better the match, the more lasting the relationship
between the seller and the buyer.
Ownership of Amway:

IBOs and Customers:

Amway services the needs of both Independent Business Owners and
c u s t o m e r s . IBOs build businesses that allow them to earn income based on sales
made resulting from t h e i r e ff o r t s . To l a u n c h a n A m w a y - p o w e r e d b u s i n e s s ,
i n d i v i d u a l s m u s t r e g i s t e r w i t h a n existing IBO. Customers pay no fee to shop from a
large selection of products and learn from expert advice on health, beauty, home care, and
other topics. Products are shipped to their homes and covered by Amway's Customer
Satisfaction Guarantee. Customers must register with the identification number of
their servicing IBO. If a new registrant Does not have a servicing IBO, Amway will
assign them one..

Personal Referrals:
Unlike most other companies, Amway's sales are not the result of advertising.
The b i g g e s t c h u n k o f A m w a y ' s m a r k e t i n g b u d g e t g o e s d i r e c t l y t o
r e w a r d i n g I B O s f o r s a l e s volume resulting from their efforts. Those efforts include
registration of new Ibos, Members, a n d C l i e n t s , r e s u l t i n g i n p r o d u c t s a l e s .
A m w a y ' s t i e r e d c o m p e n s a t i o n p l a n r e w a r d s t h e movement of product through
an IBO's sales organization and their ability to train others to create their own
successful organizations. When people visit Amway's site, it is the result of a
personal referral by an IBO -not as a result of some advertisement
t h e y s a w o n T V. Personal referrals have proven to be much more effective. Only
8% of respondents in the E d e l m a n 2 0 0 5 A n n u a l T r u s t B a r o m e t e r s t u d y
i n d i c a t e d t h a t i n f o r m a t i o n o b t a i n e d i n advertising was credible, while
42% trusted information obtained from family, friends, and colleagues.

Buzz Marketing:
Alticor pioneered buzz marketing through its person-to-person referral model. Some
companies spend millions on strategies intended to get people to spread the word
about their p r o d u c t s . T h r o u g h i t s I n d e p e n d e n t B u s i n e s s O w n e r s h i p P l a n ,
Am-way does the same by rewarding IBOs for spreading the word about
t h e b u s i n e s s o p p o r t u n i t y a n d t h e e x c l u s i v e products available through Amway.
This is a much targeted market spend, since IBOs are rewarded only when their efforts
actually result in product sales.

Business Systems:
IBOs employ many different approaches to build their businesses, typically involving training
systems, motivational meetings and tools, and time-tested tactics to approach people a n d
interest them in the business opportunity and products. When a person
r e g i s t e r s w i t h Amway, it typically is the result of having been approached by an
IBO already involved inone of several large organizations that provide training and
support to IBOs. Often, a new I B O a l s o w i l l c h o o s e t o a t t e n d o p t i o n a l
a n d v o l u n t a r y t r a i n i n g s e s s i o n s o r p u r c h a s e professional development
materials provided by that organization - all covered by a money- back guarantee.
Independence:
The beauty of Amway's business model is that there can be as many ways of pursuing the
business as there are IBOs. If you're into health, you can focus on Nutrilite
supplements and XS Energy Drinks.
SWOT analysis of Amway:

STRENGTH:
• Based on direct selling operations. Hence it can be A home based business. Every
can p a r t i c i p a t e i n b u s i n e s s . I t ’s e a s y t o g e t a d m i s s i o n i n A m w a y w i t h e a s y
r o u t l i k e 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
t o t h e 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.
• 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.
• C o m p e t i t o r s l i k e AV O N , M A RY K AY; S U N R I D E R c r e a t e s lot of
c o m p e t i t i o n i n market which leads to strong marketing competition in market
Finding:

I’ve written about Amway based entirely on factual, confirmable sources. If you’re
researching Amway, especially on the Internet, chances are you’ve encountered
people who claim Amway is some kind of scam business, it’s illegal, the products
are poor quality, or some other information that has made you think twice about being
involved. Skim through these finding and decide for yourself whether those kinds of
opinions really have a lot of credibility in the face of all of these facts. Have all these major
companies and organizations that have recognized Amway for excellence been
conned? For fifty years? Or perhaps the opinions you read on the internet have been
formed from limited or even no experience – from encountering some new or
inexperienced Amway rep that never bothered to learn how to act professionally or
properly explain the concept, and probably never did much more than dabble for a
few months. Or perhaps the experience was with just one of dozens and dozens of
different Amway affiliated organizations, each with different ways of d o i n g t h i n g s
that may not all appeal to everyone? Or perhaps their opinions driven
b y business interests working or being paid by competitors or potential competitors to Amway?
Conclusion

Amway is which is one of the largest direct selling companies in the world. The
main o b j e c t i v e s o f A m w a y a r e t o p r o f i t t h e r e d i s t r i b u t e r s b y e l i m i n a t i n g
t h e m i d d l e m e n a n d provide the products to the distributers in cheaper price. The
products of Amway are world-class product quality. They are made up of natural a thing
that’s why they are good for health and environment. Amway covers a wide range of
products from beauty care. Health care, to clothing, and daily use products etc. the
products are costly as compared to other branded products available in market but if
we compare the quantity while using the products require less amount and thus can
be used for longer time.
Successful business today depends upon company’s ability to quickly adapt to
changes in the marketplace. At Amway, they pride it selves on knowledge of the
dynamic networking market that is quickly becoming central to m o d e r n b u s i n e s s .
This knowledge, and its willingness to act upon it, has enabled us
t o become one of the industry's technological leaders. Through they continued
pursuit of new product ideas, and by consistently refining our existing product line,
they have become one o f t h e t o p p r o v i d e r s o f c u t t i n g - e d g e n e t w o r k i n g
products in the global market. If you’ relooking for high quality products
a n d s o l i d c u s t o m e r s u p p o r t a t r o c k - b o t t o m p r i c e s , t h e n choosing Amway really
does make sense.
SUGGESTIONS:

•Tr i a l p a c k s s h o u l d b e u s e d b e c a u s e c u s t o m e r m u s t h a v e t o i n t r o d u c e t h e
p r o d u c t . 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.

•T h e r e m u s t b e m u l t i p l e o p t i o n s f o r p u r c h a s i n g the products for

d i s t r i b u t e r ’s l i k e 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
Annexure:

Amway India plans 170 new branches by 2013

Eyes 25% y-o-y growth for the next five years. Amway India Enterprises Pvt Ltd, a major
direct selling FMCG Company in the country, is planning to open 170 new branches
across the country in the next three years (by the year 2013). The company is also
eyeing 25 per cent year-on-year growth for the next five years. P r e s e n t l y, t h e c o m p a n y
h a s 1 3 0 b r a n c h e s a c r o s s t h e c o u n t r y. T h e c o m p a n y o ff e r s 11 5 products in
five categories- Personal care, Home care, Nutrition & Wellness, Cosmetics and
G r e a t Va l u e p r o d u c t s . N u t r i t i o n & We l l n e s s s e g m e n t c o n t r i b u t e s a r o u n d 5 0
p e r c e n t o f Amway India’s total turnover.

"With an aim to strengthen our network base, we are planning to increase the number of touch
points (branches) up to 300, by adding 170 new branches across the country in the
n e x t t w o - t h r e e y e a r s . We a r e a l s o p l a n n i n g t o l a u n c h 6 t o 8 n e w p r o d u c t s
e v e r y y e a r,

"William S. Pinckney, MD & CEO, Amway India, said at a press conference during
plant visit of reporters to its Baddi facility in Himachal Pradesh.

With an aim to meet the market demand, the company has just tripled the capacity
atits contract manufacturing facility in Baddi (Himachal Pradesh) at an investment
of Rs. 55crore.

"A m w a y ’ s f o c u s i n t h e p a s t 2 - 3 y e a r s w a s t o i m p r o v e
c o n s u m e r a c c e s s a n d awareness, which paid off handsomely. We have grown
from Rs. 799 crore in 2007 to Rs. 1407 in 2009 crore over the past three years, essentially as
the quality of the Amway pick-up centre’s has undergone a sea change, and are more
experiential for the consumers. We are eyeing 25 per cent year-on-year growth for the next
five years," Pinckney said.