1Q.

Describe how this case pertains to a) Direct marketing b)multi-

level-marketing?

ANS) a) Direct marketing is defined as personal contact between a sales

person and a consumer away from a retail store. This type of retailing
has also been called in-home marketing. A variant of direct marketing is
called multilevel marketing where by companies such as Amway recruit
independent business people who acts as distributors for their
products, who in turn recruit and sell to distributors, who eventually
recruit others to sell their products. A distributor’s compensation
includes a percentage of sales to the entire sales group that the
distributor recruited as well as earning on any direct sales to retail
customers.

b)multi-level-marketing pertains amway in selling health, beauty,and

home care produts.It has been investigated in various countries and by
institions such as the federal trade commission(FTC)for alleged pyramid
scheme practices.

2Q.what are difficules facing amway in india? How to overcome it.

ANS) Amway faced difficulte in selling the basic concept of direct

marketing to the Indians.As the direct marketing model is not new to
india.So the consumers were not rush to buy the amway
product.However the problem like distributor attrition,a false,premium
image and customer dissatisfication began surfacing.

TO overcome this problem Amway should have opted for traditional

approach and product should be easily available to customers whit
valid pricing and proper advertsing of product.
3Q.What are the recommendations you can give to amway for the
future?

ANS)1.The price of product should be low so that all level families use
the product.

2.There should be some modification in the policy of membership in so

that it attract more individuals.

3.The entry fee for membership should down that all income group can
able to take membership in amway.

4.There should be increase in the profit margin to the members.

5.Awareness about amway is good but they have to make more

programmers like seminars.amway meeting and cultural programme
so that they are able to make more awarness to more peoples.