CHAPTER- 1

Introduction

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Marketing of Amway products Introduction
The objective of modern marketing is to make profits through satisfying consumer` needs and wants. Hence, the marketers have to understand the real needs, wants, beliefs and attitudes of the consumers towards their products and services. Today, network marketing is a multi-billion business. A number of companies have adopted this business model. It has grown into one of the driving forces of the 21stcentury economy. Networking marketing is now regarded by many business leaders as the business for the future. But this marketing method was misunderstood as a get-rich-quick scheme. It is also too common for the network marketers world wide to answer the legality and soundness of their business. Network marketing was actually pioneered in the year 1945 by Carl Rehnborg, the first person to introduce a compensation plan to market his nutritional products. His company was originally called California Vitamin company and on latter it was renamed as Nutrilite products lnc. Using a multi-tired plan, it allowed any Nutrilite distributor to get a 3% commission from a downline on the top of the regular commission from its own sales. With this system, Nutrilite products inc achieved stunning results as compared to the other companies that were using direct selling method. Today, Amway India is one of the leading network marketing companies in the world. In India, it is the founder member of the Indian Direct selling Association. The Indian Direct selling association is an industry regulatory and promoting body with several reputed international and national companies in direct sales as member. The Association swears by its rules called the code of ethics to which every member adheres to. To administer and execute the code, a code of administer has been appointed. Amway allows people the opportunity to enhance their life style by owning their business. It provides the chance to market a line of quality Amway products such as personal care, home care and like. The business opportunity provided by Amway can be

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pursued on a part time or full time basis, which involves minimum risk and low up front investment, yet with a good yielding potential. Amway has a heavy accent on training. Every Amway distributor enjoys free, unlimited access to training session. These training session impart products knowledge comprising of motivation session and endeavour to optimize the business potential of participants. Men and women from different walks of life with vastly varying socio-economic and educational backgrounds have emerged as successful Amway distributors. Besides economic independence, the Amway experience has granted them a sense of self actualization. The direct selling industry is one of the most potent socio economic forces of the late 20 th century. Direct selling is remarkable business model, which brings the market to customer and offers a unique business opportunity. Direct selling can be best be described as the selling can best be described as the selling of products and services directly to the customers in face-to-face manner through demonstration of usage by an independent direct sales person, often called an in dependent business owner. Amway, the leading direct selling industry sell its products through independent business owner instead of the traditional retail shop marketing approach of hiring sales staff, conducting advertising campaigns or marketing blitzes.Independent business owners sponsor and train new independent business owner to expand the sales network. They are paid commission when they sell products or on the sales of the products by an independent business owners sponsored by them. These commission however are paid directly by the company and do not impinge on the earnings of sponsored independent business owner. The industry has made a unique contribution in transforming individuals from diverse strata of society successful entrepreneurs. Women who have been traditionally confined to a life of state domesticity have benefited tremendously. Over 70% of the distributors engaged in direct selling in India, are women. It is estimated that these distributors earned rs. 500 crores in the year 2000. Direct selling benefits the consumers because it sells high quality products at the consumer`s convenience often at his/her home work place. Customer value the advantage of convenience, personalized attention, demonstration of usage and a wide choice of products backed by customers satisfaction guarantee.

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Michigan in 1959. Today.Oriflame and the like. Amway is one of the world’s leading direct selling companies operating in over 80 countries around the world. cosmetics and housewares to vitamins and food supplements. In this regard. recognizing their dignity. It manufactures and markets products. Kenwood. such as Talkland. We are committed to providing a workplace that stimulates creativity.Amway India faces stiff competition from direct selling companies such as Modicare. Goods must also be available in the right quantity and at the right location in order to reach the customer. Founded in Ada. the company has developed into a global corporation selling more than 400 products and employing in excess of 13. We offer training to 4 . in over 70 countries and territories around the world. Black & Decker. Pierre Cardin. As business has expanded. Amway also markets products on behalf of other manufacturers. This case study focuses on Amway and the success it has achieved using the oldest form of distribution . we have connected with people by offering them the opportunity to experience the business potential of our quality products. Amway has become one of the world's largest 'Direct Selling' companies. The present study is concerned with marketing of Amway products in Maduri.O. Take Reader's Digest and the unique way in which it sells products to its customers. was one of the earliest biodegradable cleaners and is still marketed by Amway.000 people.direct selling. distribution strategies should never be underrated.C. which range from household cleaners. Aiwa and Philips. We respect our employees. What about Vision Express and the revolutionary reforms it has prompted in the sale of glasses? One reason for their success is that they reach their customers in a better and more appropriate way than their competitors. The company's first product L. For the modern business organisation. quality and dedication. rights and contribution as individuals. our vision of building a brighter future by Helping People Live Better Lives today is reflected. developing an effective way of reaching customers may be the cornerstone upon which their successes are founded. Bosch. developing goods or services is not enough. For the organisations themselves. toiletries. laundry products.

ongoing training reflecting our commitment to your development. • Guaranteed 2 months bonus plus performance bonus. heritage and legacy. Family The family is our primary social structure. and techniques to enable you to achieve your full potential. which they and their families believe constitute a sound foundation for a meaningful life. supports and expands freedom.encourage productivity. It gives the freedom to operate as independent business people and conduct a full-time or part time business. which is both personal and economic. Amway provides the opportunity to build a family-owned business which can be passed on to generations. as evidenced by the Amway Board of Directors and the prominence of “family” in Amway business. full employee welfare. You will also enjoy an attractive salary and remuneration package designed to enhance your lifestyle. equipment. 5 . Be part of a 20 Billion Baht success story!!! We are looking for partners on the road of success. providing love. Freedom Provides conducive environment in which to live. an opportunity to shine with an international business leader Founder's Fundamental Rich DeVos and Jay Van Andel built the Amway business on the following principles. We’re committed to supporting and developing our people. and provide continuous training. The Amway business recognizes. Amway (Thailand) Ltd is looking for qualified candidates to become important players in the challenge of building a 20 billion baht business. Then come and join a truly global enterprise that has won the Award for Welfare and Labor Relations for 3 years. work. achieve and grow. The Amway business respects and supports the family. achievement and personnel satisfaction. We strongly believe that Amway is where you can create you own destiny.

Hard work is followed by high rewards. either as the giver or the recipient. Reward Reward involves the shared action of giving and receiving. and achieve great things. Reward is integral to the Amway business as we help each other grow as people and as entrepreneurs. establish goals.Hope Hope gives us the power to transform our lives in positive ways. and there are many ways we are rewarded. we open windows of possibility for others. profession or educational background. irrespective of social status. Reward helps us grow. By offering hope. 6 . It is a force that allows us to envision dreams.

CHAPTER – 2 HIST0RY OF THE ORGANISATION 7 .

Amway India is the country’s leading direct selling FMCG-company which manufactures and sells world-class consumer products. Its business opportunity and all its products are covered by 100% Money Back Guarantee. Amway quickly achieved the position it still holds. It is an inspiration and an opportunity that is being taken up by millions of people all over the globe who see it as a way of achieving their own personal and business goals. Amway sources all its products from within India. Today.History of Amway Amway Corporation Amway Corporation was started more than 40 years ago by Jay Van Andel and Rich DeVos. thereby providing stimulus to the local manufacturing industry. We offer a unique business opportunity rooted in a vision of helping people live better lives. who sold NUTRILITE™ supplements. We are part of an international organization with annual sales in excess of US$6. Amway expanded rapidly. L. 8 . From early on. supported by the finest quality manufacturing and distribution facilities to be found anywhere in the world.O. as a global leader in multilevel marketing. offering people the chance to become Business Owners selling Amway's growing range of products. Amway India Fact sheet Amway promotes individual entrepreneurship through its innovative direct selling approach of world class consumer products. Its history grew out of an earlier business run by Rich and Jay. That dedication led the company to invest in state-ofthe-art product development processes. our business operations reach into more than 80 countries and territories worldwide and we support more than 3 million Business Owners. Amway was dedicated to providing quality products as the foundation of an independent retail business.™ Multi-Purpose Cleaner.C. Beginning with a highly effective cleaning product that is still part of the Amway product range.4 billion and we offer more than 450 different company-branded products and services globally.

• Amway has invested in excess of US $ 35 million (Rs. Amway India commenced its commercial operations in May 1998 and has emerged as the largest Direct Selling FMCG Company.650 persons at all the contract manufacturer locations. • IDSA is an industry regulatory body.New Delhi.2 billion Amway Corporation. The Company is headquartered at the National Capital Region of India . USA.000 training sessions during in the past 12-months with an attendance of over 1. • active independent Amway Business Owners. with several reputed international and Indian Direct Selling companies as members.50. 151 crore) in India of this. • employment for 1. 9 . and Federation of Indian Chambers of Commerce (FICCI). Amway India has 400 full time employees and has generated indirect The Company has provided income generating opportunity to over 4. It has a presence in 80 countries & territories.CORPORATE CREDENTIALS • Amway India is a wholly owned subsidiary of US $ 7. • Established in 1995. Ada. Amway Corporation is one of the largest Direct Selling companies in the world. 800 crore during January’07 – Amway India is a member of the Indian Direct Selling Association (IDSA). • them grow their business. The December’07. Amway India conducted over 29. • Amway India is also a member of the Confederation of Indian Industries (CII) The World Blind Union presented an award and citation to Amway India in 2003. Michigan. 26 crore) is in the form of direct foreign investment. • Amway India recorded a sales turnover of over Rs.5 million Amway Business Owners and prospects. • for its peerless work for the blind children.000 Amway India provides free and unlimited training to all its distributors to help US $ 6 million (Rs.

They carry a tamper- proof seal and a ‘100% Money Back Guarantee'. They are Personal care category. If not completely satisfied with the product. 10 . Amway India offers over 105 products in four categories. and are not tested on animals. world-class technology. Amway India has established a nation-wide presence in over 125 offices and 55 city warehouses and four regional mother warehouses. Amway has invested in excess of US$ 4 million (approx. 17 crore). MANUFACTURING Almost all Amway India products are manufactured in the country through 7 third party contract manufacturers. • The products match Amway’s global quality standards. all Amway India products and bottles are manufactured in India. To bring the identified contract manufacturers’ production facilities and skills to international standard. • With the exception of Cosmetics range (Artistry*) and some products in Nutrition and Wellness category. The transfer of this state-of-the-art. Rs. has been free of cost. Nutrition & Wellness category and Cosmetics category.NATIONAL PRESENCE In ten years of commercial operation. Home Care category. the consumer can return it for a refund. The distribution and home delivery network set up with the support of independent logistics partners is spread across over 3. PRODUCTS • At present. Amway encourages the return of its used product bottles for re-cycling and to prevent their misuse.000 locations. Amway products are environment friendly.

MEMBER . and the Founding Families.CORPORATE RESPONSIBILITY AMWAY OPPORTUNITY FOUNDATION (AOF) • Amway Opportunity Foundation (AOF) a registered non-profit organisation which looks after Amway India’s Corporate Social Responsibility (CSR). Amway’s CSR campaign is known as the One By One Campaign for Children.IDSA (Indian Direct Selling Association) • Amway India Enterprises Pvt Ltd is a member of the India Direct Selling Association. Amway mission Through the partnering of Distributors. The Indian Direct Selling Association is an association of companies engaged in the business of direct selling in India. we offer all people the opportunity to achieve their goals through the Amway Sales and Marketing Plan. Employees. Globally. PROMOTING FREE ENTERPRISE AND SELF-EMPLOYMENT • Amway has conducted several seminars on ‘Entrepreneurial Development and Direct Selling’ in concert with the Confederation of Indian Industries (CII) and the All India Management Association (AIMA) on the benefits of organised direct selling. Its members are of high national and international repute having set standards in delivering quality goods and in following ethical business practices. and the support of quality products and service. Business awareness campaign 11 . Amway distributors are also volunteers of AOF and they have enthusiastically participated in all AOF activities.

in turn. low start-up cost business opportunity that is open to everyone. 12 . you not only build your own business network but also enable others to build one of their own. can retail products and offer the business opportunity to others. The core of the Amway Sales and Marketing Plan's income opportunity is the sale of quality AMWAY™ products and services to retail customers. the industry body representing forty direct selling companies. All member companies have to abide by its Code of Practice which is endorsed by the Office of Fair Trading. The Amway Sales and Marketing Plan does not compensate anybody for simply recruiting others as Independent Business Owners. In July 1992 Amway (UK) Ltd launched its Business Awareness Campaign to persuade the government to tighten up the current pyramid selling legislation. so that ethical companies no longer have the pernicious label 'legal pyramids' • To educate the general public. the rewards you earn grow in proportion. As your Amway business grows. • To ensure that the legislation clearly defines the differences between illegal pyramid selling and direct selling and to changethe name of the legislation.Amway is a member of the Direct Selling Association (DSA). By passing your sales and marketing knowledge to your developing team. about the differences between reputable direct selling companies The Amway Sales Plan The Amway Sales and Marketing Plan is a low risk. The campaign had three aims: • To upgrade the legislation and introduce further safeguards to protect both distributor and consumer. as well as opinion forming bodies such as Trading Standards Departments and Citizens' Advice Bureaux. It allows you to build your business through retailing products and sponsoring other people who.

paid on the volume of personal business of the distributor and the business volume of the distributors he has introduced to the business. Sponsoring enables distributors to replicate the base with other people. • Sponsoring . Direct selling involves sales people showing and demonstrating products to obtain orders.the introduction of other individuals to establish and develop their own independent Amway distributorships. therefore. • various levels of leadership bonuses. rests upon the twin foundations of retailing and sponsoring.the selling of goods to consumers on which retail margins are earned and performance bonuses gained.Amway sales and marketing plan The activities of each Amway distributor are determined by the Amway Sales and Marketing Plan. Income is generated by a distributor through: • the retailing of goods to consumers. A Distributor can then introduce further Distributors and generate income from retail profits supplemented by bonus payments based upon the total sales of the group built by a Distributor'. Retail margins (mark-ups) on the basic wholesale price represent income to the selling distributor. • additional performance and leadership bonuses. paid on achieving different levels of business performance. Amway practices direct selling which is 'A method of selling goods directly to the consumer by an independent Distributor. • Retailing . 13 . dependent upon the overall size and shape of the business. Retailing enables distributors to provide immediate financial incentive rewards. This plan. thus allowing the organisation to grow.

commitment and personal group motivation. the more lasting the potential for the relationship between the seller and the buyer. In today's fast changing society.5 million renewed independent Amway distributors world-wide. difficulties. The seller goes to the consumer rather than the consumer to a shop. The selling process is aided by Amway's retail strategy to provide high quality. Amway offers individuals the chance 14 . levels of involvement and plans for the future. There are more than 2. Personal contact between distributors at one-to-one or group meetings provides the opportunity for individuals to discuss strategies. Anyone over 18 can establish their own business as an Amway distributor.the common factor to their success is the desire to achieve. Direct Selling The concept of direct selling is based upon person-to-person relationships.000 of whom are in the UK. either on a part-time or full-time basis. The income objectives and individual targets may be determined by each distributor based upon what he or she wants to earn. this type of shopping not only provides consumers with accessibility to a wide range of products but is also convenient. Each of these distributors is self-employed. Business success and the resulting financial results are a direct consequence of effort. where more people work and shopping patterns have altered. readily purchasable items with a good environmental positioning. the process involves two-way communication and this can be time-consuming. An organisation involved in direct selling cannot sell without a sales force! At the heart of Amway's approach to direct selling is the critical relationship between Amway and the seller or distributor. with vastly different levels of experience and knowledge . offering consumers good value for money. Distributors who develop direct selling businesses may come from widely different backgrounds. The better the match. As with all direct selling activities.The objective involves matching consumer needs with the product. around 37.

they receive a commission from Amway based on the volume of sales they generate personally.5 Billion turnover. acquiring skills in dealing with people and developing a wider business acumen. Amway operates in the following categories : 15 . In addition. Amway products are sold person-to-person. The name Amway is derived from the words "American Way " . rather than door-to-door or via party plan. for many others the financial incentive is usually reward enough to engage in activities.to set up their own business with little or no experience or capital investment. Amway was established in 1959 by Jay Van Andel and Richard Devos. Some individuals strive for achievement and may have tremendous energy and commitment to succeed. Others may want independence. Distributors earn their income through retail profit on the goods they sell. Currently the company have 80 products in 4 categories. to work their own hours and have the ability to make their own decisions. Amway global now have a presence in over 88 countries and has a $6. The vast majority of new Amway distributors have no previous experience running a business of their own. Amway was established in India in 1995 and commenced operation in 1998. where they may measure their success by income and standard of living. Amway India: We Are Listening Corporate Brand : Amway Agency : Rediffusion Dy&R Brand Analysis Count : 324 Amway is one of the global leaders in direct marketing. However. Working hours and flexibility can be adjusted to suit each individual. Participating in the Amway business has helped them with their personal and professional development. as well as those by their own distributor network. Individuals may have many different motives for starting their own businesses.

According to Business Line. Further . Amway is a 100 % direct marketing company . 16 . The payout varies with different levels. The products are sourced after strict quality checks.5 lakh independent distributors and 117 offices across the country. Since the company does not advertise its brands. The Amway business model also divides the ABOs into different categories based on the sales performance of the team. the only communication channel is through ABOs who visits households and make presentations. the direct marketing Industry in India is estimated to be Rs 3150 crore. The products can be bought through ABO's. The ABOs can build a team by recruiting a team of ABOs under him. The payout is decided by the point system. There are two tasks of a typical ABO : the first task is to sell Amway products and second task is to appoint new ABOs . the ABO also gets commission for the sales done by other ABOs recruited by him. Hence the sales are driven by the efforts of ABOs. That means the consumers will not get any Amway products from shops. Amway India's products are mostly sourced from manufacturing units from India. The model works on a business networking model .Personal Care Home Care Nutrition and Wellness Cosmetics Amway is often used as an example of a direct marketing company. The ABO earns commission on the products sold . Amway India has been reasonably successful. The success of Amway products is predominantly driven by the quality of the products. Amway India in now a 800 crore company with its operation spanning across India. It has outsourcing contracts with 5 major units in India. It has more than 4. The company sells its products using direct distributors called Amway Business Owners ( ABO). Considering the nascent stage of Direct Marketing Industry in India.

the company has to pay huge commission. Amway launched its first corporate branding initiative in India . the expensive tag of Amway products is the singular reason for the lack of popularity of its products. Amways also faces this issue. Persona is one of the best soaps in terms of quality but price is definitely a dampener. Understanding this issue. Artistery is targeted at the premium class and Attitude at the middleclass. The purpose of the campaign is two fold : a. 17 . Since the sales depend entirely on the independant distributors . Watch the TVC here : Amway Amway uses the slogan " We are listening " . b. This results in the increased cost of the product. Hence the products become expensive resulting in lower sales. Hence the ABOs have a tough time convincing the value proposition. the Persona brand of soaps cost Rs 30 which is almost double the rate of an ordinary soap. The enhanced corporate image will also attract people to join Amway as independent business owners. For example. In a value conscious country like India. The brand came out with a Television campaign highlighting the customer-centric approach . The company wants to build equity around the corporate brand which will enable the ABOs to tide over the initial customer resistance.Typically direct marketing firms faces issues of reach and cost. Another example is the range of cosmetics under the brands Attitude and Artistery . But the price of these brands make the consumer think twice before buying it. The idea revolves round the theme that Amway understands the Indian consumers and the products are derived from this understanding . The products of Amway are excellent but very expensive.

Another significant change that the company made was rationalising the entry cost for new ABOs. The company is launching a new range of value products like coconut oil . Among the 80 products. The Indian nutraceauticals market is estimated to be around Rs 1500 crore and is rapidly growing. Many Indian companies are eying this segment and has serious plans to enter this segment. the commission payout will be less and hence the ABO will have to sell more volume to get higher commission. cost. Now the company has introduced a starter pack for Rs 995 which does not have Amway products but brochures . The ABO can recover the money by selling these products. Amway has understood that doing business in India will require a new business model. Earlier. Amway had introduced sachets for most of the products. the company is also rationalising the pricing strategies. FMCG 18 . The cost was to buy the Amway business kit which consists of various Amway products and brochures. The brand virtually faces no competition so far. Nutrilite is a nutraceautical supplement and this brand contributes around 50% of Amway's turnover. This will be a big relief for the existing ABO since the higher joining costs turned away most of the potential ABOs. The company has started to take steps in the right direction. quality and higher commission is no easy task. one of the best seller for Amway is the Nutrilite brand. a person had to shell out Rs 5000 to join the firm. but the low commission payout for sachets has prompted ABOs to try and sell high value items. But here again the company will face certain issues . shaving creams. Labels: corporate brand. For lower priced products. It had tried to rationalise prices and bring in new value products. But to balance the price .Along with this.

One thing to consider with regards to price/commissions is that the lower expenses involved in setting up and running an Amway business means that revenues can be lower yet still maintain a decent income. Paid money. That's not "losing money". when 500 people will loose money one person will earn it. Nice analysis. very few people "lost" money so that 75-200 people could make money.some of these made money. In a group of 500 there's no reason all 500 can't make money. More typically you'd find 200 of them joined then decided to nothing. They probably bought some starting products..4 COMMENTS: IBOFightback . Of those left. and there's no reason at all they couldn't all have made money if they'd decided to pursue it and work hard. 125 dabbled a little . 3:12 PM subhash patil said. Theoretically possible. Statistically. 19 . 9:29 AM IBOFightback . 100 were just shoppers. if they want. but if they didn't think they were worth it.Fighting the Amway Myths said.. Of the 300 left. That leaves 75 folk who made decent money. yes. like any other "store".. There's nothing in the Amway model that requires it though.. probably varies month to month. got what they ordered.. some lost some money..Fighting the Amway Myths said. then they could send them back.

"Among the 80 products.Lifepak) from pharmanex. All the challengers failed to meet the RDA requirements except Lifepak. There are other superior supplement (world's best single selling supplement...4:48 PM mohd azrey said.S. Has the comparison already been done? You can verify this by telephoning or e-mailing Pharmanex Product Support OR see the list of completed challengers by clicking on the LifePak Challengers button below.. We Challenge you to find a better multi-vitamin/mineral product. Please take note Amway's Nutrilite is listed too.. The LifePak Challenge is based on the most recent U.. Government Recommended Dietary Allowances of essential vitamins and minerals (known as RDA's) set in 1999. When submitting a request for a LifePak Challenge please use the following 3 check points: 1.. Read below article from Pharmanex: LifePak Challenge Pharmanex is so confident that the LifePak Family of Products will meet your unique supplementation needs that we developed the LifePak Challenge and dared the world to find a better multi-vitamin/mineral supplement. The brand virtually faces no competition so far. Nutrilite is a nutraceautical supplement and this brand contributes around 50% of Amway's turnover. 20 . one of the best seller for Amway is the Nutrilite brand." Allow me correct your statement. Nutrilite is a better supplement when you compare to low grade products/companies.

Originally founded by Jay Van Andel and Rich DeVos. It is not necessary to send in actual product samples. Amway operates in more than 88 countries and territories in Asia. Amway products and services 21 . For legal purposes we must have the product's original packaging. Amway is more than an income opportunity or a company or products.2. Amway is about people connecting people to a better way of life. Africa. Product brochures. b) Pharmanex LifePak is a premium multi-vitamin/mineral supplement. It’s about connecting people to others who respect them. or hand copied ingredient lists will not suffice. 3. to ensure a fair comparison we ask that you limit your comparison requests to a company's most complete multivitamin/mineral product. who share their goals and aspirations. Pharmanex Product Support must receive the product's original packaging including nutritional information. If the product is not intended to be a nutritionally complete multi-vitamin/mineral supplement. It’s about supporting people in their achievements. Amway Corporation is one of the world's largest direct selling companies. photocopies. Is the product suitable for a comparison? a) The product to be compared must be intended as a nutritionally complete multivitamin/mineral product. Therefore. If the company-in-question has another more comparable multi-vitamin/mineral supplement we will not be able to process your request. It’s about putting people in control of their lives. Europe and the Americas. we will not be able to process your request. Sending in Challenger packaging To initiate a comparison.

6 million Independent Business Owners (IBOs) around the world. 22 . In addition. FACILITIES Amway operates out of Alticor's world headquarters located at 7575 Fulton Street East. In China. COMMUNITY SERVICES Amway. Michigan 49355. Ada. Amway has more than 3. Amway independent business owners in selected markets sell additional brandname goods through local merchandise catalogues. In addition. as well as commercial products and a variety of services. beauty and home. wellness.are marketed through independent business owners worldwide. PEOPLE Amway has more than 6000 employees worldwide. USA. Amway is a wholly owned subsidiary of Alticor Inc. high-quality products carry the Amway name in the areas of nutrition. Specific and current information is available upon request. All products are backed by a customer satisfaction guarantee. GOVERNANCE AND MANAGEMANT Doug DeVos is the President of Amway and Steve Van Andel is the chairman. plus a variety of services and educational products. Amway products are sold by Amway sales representatives. PRODUCTS AND SERVICES Over 450 unique. its Independent Business Owners and employees are involved in improving the communities in which they do business.

I will conduct myself in such a manner as to reflect only the highest standards of integrity. 23 . As owner of my Amway Distributorship. and I will make sure to present only what is approved in official Amway publications. frankness and responsibility because I recognise that my conduct as an Amway Distributor has far-reaching effects.AFFILIATIONS Amway is a prominent and active member of the regional and national direct selling associations worldwide. I will respect and follow this Code of Ethics and the Rules of Conduct observing not only “the letter” but also ‘the spirit’ thereof. I will present AMWAY products and the Amway Sales and Marketing Plan to all prospective Distributors in a truthful and honest manner. I will endeavor to always treat others. I agree to conduct my Amway business according to the following ethical guidelines: As a basic guideline in my activities as an Amway Distributor. Rules of Conduct Code of Ethics of Amway Distributors. I will be courteous and prompt in the handling of any and all claims for exchange and return and follow the procedures prescribed by Amway from time to time in its official publications. Former Alticor President Dick DeVos is the current Chairman of the World Federation of Direct Selling Associations (WFDSA). as I would have them treat me. direct selling is an industry with approximately $80 billion in sales and more than 30 million salespeople. Doug DeVos is a member of the U.S. Direct Selling Association Board of Directors. Globally.

Amway has been registered as a corporate name and trademark ever since. and we work hard to provide new and better ways for them to achieve their life goals. Jay Van Andel and Richard DeVos. I will use only Amway produced or Amway-authorised publications. as set forth in official Amway publications. Today. and for the purposes of protecting the Amway Sales and Marketing Plan.4 billion (September’04 . In my AMWAY product sales activities. 24 . received the prestigious United Nations Environment Programme Amway Achievement Award in 1989. built on strong values and founding principles that continue to sustain our company today. Short.August’05) in sales at estimated retail through this global product distribution network. The business is built on the simple integrity of helping people lead better lives. AWARDS • As a corporate leader in promoting environmental awareness and education. We offer over 3 million Business Owners the inspiration to grow those businesses. In the following decades. unique and easy to remember. Amway generates US$6. 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. Amway Rules of Conduct What does the word Amway mean? Amway is an abbreviation for "American Way" and was coined in 1959 by company founders. Amway Corporation successfully established itself as a leading multilevel marketing business.I will accept and carry out the responsibilities of an Amway Distributor (and those of Sponsor and Direct Distributor when I reach such level).

THE DECADE OF GROWTH As vowed by Jay Van Andel the night of the 1969 disaster. 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 A SOLID FOUNDATION Rich DeVos and Jay Van Andel's friendship actually began with a business proposition. and kept going strong. Amway's sales were more than half a million dollars. THE EARLY YEARS Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay Van Andel's homes. but they planned to start a business together after separate tours of duty. Amway rebuilt the aerosol plant and went on. In its first full year of business.On November 08. After a lengthy investigation. Building expansion at Amway World Headquarters continued at breakneck speed as 25 . A friendship formed and became a business relationship that has lasted to this day. After high school they entered the military." THE BILLION-DOLLAR DECADE The '80s will be remembered for the first Billion Dollar Year at estimated retail in 1980. the FTC verified that Amway is a genuine business opportunity and not a "pyramid. when Rich struck a deal with Jay for a ride to school for 25 cents a week. The '70s began with sales of more than $100 million at estimated retail.• Corporate Citizenship Award .

A parent company. 26 . the second generation Van Andel and DeVos families took the helm during the ' 90s. hope and reward—hold as true today as they did in the very beginning Vision Inspiring people to live better lives. Michigan.. opening its new cosmetics plant in Ada.Amway scrambled to keep pace with demand. Quixtar and Access Business Group—the latter to consolidate manufacturing and distribution for the enterprise. family. Distributors witnessed a similar trend. with the second generation of many distributor families taking on important leadership roles. the DeVos and Van Andel families created a new structure to meet the challenges of this new century. including Amway. Its fundamental principles—freedom. At the helm of Alticor are Steve Van Andel (Chairman) and Doug DeVos (President). NEW HORIZONS In 2000. Almost 50 years after Amway began. THE NEXT GENERATION As carefully planned by Rich and Jay. Amway prepared for a new century and a new exciting era. has the freedom to build on its strengths. Today each area of the business. was established with subsidiaries Amway. Alticor. Amway continues to be a leading company in the direct selling industry. jointly holding the Office of the Chief Executive. The Policy Board was formed and Steve Van Andel and Dick DeVos succeeded their fathers as Chairman and President.

and all of the Business Owners that are associated with Amway. loyalty. honesty. cosmetics. Service Orientation We are committed to serve our customers to fulfill their needs by focusing efforts on discovering and thereby meeting stated and unstated requirements. Transparency We will promote a culture of openness and mutual trust by interacting objectively and without underlying personal interests.Mission To provide the best business opportunity. We believe that these values guide our actions and help us to achieve everything we are capable of without compromise or harm. personal care. home care. obligations and other activities. Trust Building reliability and dependability for self by displaying commitment. Integrity We will uphold the highest personal and professional integrity which demonstrates honestly. We are committed to behave at all times in accordance with the ethical practices of the organization. Our Values Amway has established some simple shared values that unite the entire company. respect and high ethical standards in all our responsibilities. home tech and insurance. confidentiality and consistency in all actions. To deliver exceptional quality products to urban and semi urban homes in the areas of nutrition and wellness. 27 .

encourage and support individuals and teams who contribute.Partnership We will collaborate across boundaries and find common ground by sharing ideas and resources. Recognition We are committed to honor. with a wide range of stakeholders. We will develop networks and build long term alliances with internal and external customers. to the success of the organization. through their behavior and actions. 28 .

OBJECTIVES OF THE STUDY The objectives of the study are: • • • • Problem in the amway marketing. Factor influencing customer`s attitude towards Amway products 29 . To study the marketing practices and problem faced by the Amway consumer.. To study the factors influencing the attitude of customers towards Amway products.

CHAPTER-3 IMPORTANCE OF THE STUDY 30 .

IMPORTANCE OF THE STUDY • • • To know the consumer buying behavior of the Amway consumer. To know the future of the Amway in India. To know the Amway joining procedure. 31 .

CHAPTER-4 LITRATURE RIVIEW 32 .

direction and opportunity. The issue facing a firm in a mature market is whether to struggle to become one of the “big three” and achieve profits through high volume and low cost or to pursue a niching strategy and achieve profits through low volume and a high margin. employee. and customers. A clear thoughtful mission statement provides employee with a shared sense of purpose. Surrounding these dominant firms is a multitude of market nichers.that serve the whole market and make their profits mainly leader-that serve the whole market and make their profits mainly through high volume and lower costs. including market specialists. The statement guide geo-graphically dispersed employees to Work independently and yet collectively toward realizing the organization`s goals. 33 . a services leader and a cost leader. Dominating the industry are a few gaint firms. products specialists and customizing firms.perhaps a quality leader.LITRATURE RIVIEW Organization develop mission statements to share with manager.

CHAPTER - 5

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Research is an art of scientific investigation. Research covers the search for a retrieval of information for a specific purpose. Research has many categories, from medical research to literary research. A research paper is a piece of academic writing that requires a more abstract, critical and thoughtful level of inquiry than you might be used to. According to Redman and Morry, ‘Research is careful and systematized effort of gaining new knowledge.’ According to Clifford Woody, ‘Research comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions. And at last carefully testing the conclusions, to determine, whether they fit the formulating hypothesis or not.’ The dictionary meaning of research is ‘a careful investigation or inquiry especially through search for new facts in any branch of knowledge.’ Basically research is a search for truth with the help of some study, observation, comparison and experiments. It is a search for knowledge with the help of objective and systematic method of finding solution to a problem. Research is a voyage of dictionary of knowledge lead by inquisitiveness of human nature.

IMPORTANCE Of RESEARCH
• • • Research forms the fundamental base on which the economic and legislative polices can be built. Research assists in solving various operational and planning problems of business and industry. Research helps to establish social relationships and solves social problems.

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• • • • •

Research is used in all fields for applied economics, applied finance and applied mathematic etc. Research facilitates scientific and methodological and logical thinking of all. Research assists in Ph.D. thesis of students. Assists philosophers and thinkers to establish their viewpoints. Assists analysts and intellectuals to develop new theories and ideas.

RESEARCH METHODS VERSUS METHODOLOGY It seems appropriate at this juncture to explain the difference between research methods and research methodology. Research may be understood as all those methods/techniques that are used for conduction or research. Research methods or techniques, thus refer to the method the researcher use performing research operations. In other words, all those methods, which are used by the researcher during the course of studying his research problem, are termed as research methods. Science the object of research, particularly the applied research, is to arrive at a solution for a given problem, the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. Keeping this in view, research methods can be put into the following there groups: In the first group we include those methods, which are concerned with the collection of data. These methods will be used where the data already available are not sufficient to arrive at the required solution. The second group consists of those statistical techniques, which are used for establishing relationships between the data and the unknowns. The third group consists of those methods, which are used to evaluate the accuracy of the results obtained. Research methods falling in the above stated last two groups are generally taken as the analytical tools of research. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In this we study the various steps that are generally adopted by a researcher in studying his/her research problem along with the logic behind them. It is necessary for

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He has to specify very clearly and precisely what decisions he/she selects and why he/she selects them so that others can evaluate them also. why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. an architect. 37 . are relevant and which are not. the median or the standard deviation or chi-square. used particular materials and not others and the like. Why a research study has been undertaken. the mode. how the research problem has been defined. has to consciously evaluate the basis of his/her decisions. when we talk to research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or techniques and why we are not using others so that research results are capable of being evaluated either by the researcher himself/herself or by others. windows and ventilators. and location of doors. The scope of research methodology is wider than that of research methods. All this means that it is necessary for the researcher to design his/her methodology for the problem as the same may differ from problem to problem. From what has been stated above. how to calculate the mean. Researcher not only need to know how to develop certain indices or tests. how to apply particular research techniques. Thus. number. and what would they men and indicate and why.e. who designs a building. Researchers also need to understand the assumptions underlying various techniques and they need know the criteria by which they can decide that certain techniques and procedure will be applicable to certain problems and others will not. i. we can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. in what way and why the hypothesis has been adopted. in research the scientist has to expose the research decisions to evaluation before they are implemented. Similarly. he/she has to evaluate why and on what basis he/she selects particular size.the researcher to know not only the research methods/techniques but also the methodology. For example.

DEVELOPMENT OF WORKING HYPOTHESIS After determining the research problem. DETERMINING THE SAMPLE DESIGN A sample design is a definite plan determined before any data are actually collected for obtaining a sample from a given population. the working hypothesis was developed. They also affect the manner in which the tests must be conducted in the analysis of data and indirectly the quality of data. The samples can be either probability samples or non-probability samples. time and money. DEFINING THE SCOPE AND OBJECETIVE HAVE THE SEARCH This is the stage at which the research design has to be prepared. which is required for the analysis.e. In other words. It is a tentative assumption made in order to draw out and test its logical or empirical consequences. FORMULATION OF THE PROJECT TOPIC This is the starting point of any project.RESEARCH PROCESS / METHODOLOGY The research process adopted in this project has the following steps. The research hypothesis provides the focal point for research. At the very outset it must be singled out i. This makes the research as efficient as possible yielding maximum information. the decision about the general area of interest has to be taken. This means that the subject matter of the study has to be defined. Essentially tow steps are involved is formulating the research topic viz. With probability sample each element has a known probability or being included in the sample but the non-probability sampling do not allow the researcher to determine this probability. COLLECTING THE DATA 38 . its function is to provide for the collection of relevant information with minimal expenditure of effort. In this project the sample was collected on basis of simple random sampling where each element of the population has equal probability of getting selected. understanding the problem thoroughly and rephrasing the same into meaningful terms from an analytical point of view.

available time and the desired degree of accuracy. objective and scope of the inquiry. coefficients etc. through personal interviews. Primary data can be collected either through experiment or through survey. by mailing of questionnaires. The interpretation means to explain the findings on the basis of some theory. through schedules. through telephone interviews. financial resources. The researcher should select one of these methods of collecting the data taking into consideration the nature of investigation. The interpretation of data has been done on the basis of following: Coding of Data Collected Tabulation of Data Simple Analysis of Data Cross Analysis of Data 39 . it becomes necessary to collect data that are appropriate.In dealing with any real lie problem it is often found that at hand are in adequate and hence. which differ considerably in the context of money costs. by applying various well-defined statistical formulae. Editing is the procedure that improves the quality of data for coding. The unwieldy data was condensed into a few manageable groups and tables for further analysis. by observation. The analysis work after tabulation was based on the computation of various percentages. GENERALISATIONS AND INTERPRETATIONS The real value of research lies in its ability to arrive at certain generalization. There are several ways of collecting the appropriate data. the application of these categories to raw data through coding tabulation and then drawing statistical inferences. ANALYSIS OF DATA The analysis of data requires a number of closely related operations such as establishment of categories. time and other resources at the hands of the researches. Tabulation is a part of the technical procedure where in the classified data is put in the form of tables. The researcher classified the raw data into some purposeful and usable categories and coding operation was done at this stage through which the category of data was transferred into symbols that was tabulated and counted. In case of survey data can be collected by a number of ways viz.

measures. treatments or programs. time and money. i. A fixable research design. beforeand-after without control. A research design is used to structure the research. he/she will have to state the conceptual structure within which research would be conducted. such as. viz. the researcher will be required to prepare a research design. after only with control. are of which the researcher must select one for his/her project. the suitable design will be one that minimizes bias and maximizes the reliability of the data collected and analyzed. the researcher needs to establish the plan that will outline the investigation to be carried out. But when the purpose happens to be an accurate description of a situation or of an association between variables. simple and complex factorial designs). (II) Description. experimental and non-experimental hypothesis testing. which provides opportunity for purpose of the research study. The research design indicates the steps that will be taken and in what sequence they occur.e. Experimental designs can be either informal design such as. and methods of assignment – work together to try to address the central research questions. (I) Exploration.RESEARCH DESIGN Research design provides the glue that holds the research project together. (III) Diagnosis. There are several research designs. In other words. But how all these can be achieved depends mainly on the research purpose. to show how all of the major parts of the research project . Understanding the relationships among designs is important in making design choices and thinking about the strengths and weaknesses of different designs. The preparation of such a design facilitates research to be as efficient as possible yielding maximal information. before-and-after with control or formal designs (such as completely randomized block design. Latin square design. Research purposes may be grouped into four categories. is that of exploration.the samples or groups. 40 . Once the problem has been carefully defined. and (IV) Experimentation. the function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort. PREPARING THE RESEARCH DESING The research problem having been formulated in clear-cut terms.

increases manifold if sample size is large. take a small sample from the universe. involves usually the consideration of the following: • • • The means of obtaining the information. The sample is selected by applying some technique. Hence such a study is difficult to adopt. If a study aims at considering all the units of the population it is termed as inquiry. The cost factor relating to research. if bias exists in the study then the error. The survey so conducted is called sample survey. appropriate for a particular research problem. SAMPLING DESIGN There are two important sources of collection of information: • • Census Sample All the items that fall in the purview of the research are called ‘Universe’ or ‘Population’. The availability and skills of the researcher and his/her staff (if any). the finance available for the purpose. Simultaneously such a type of study is quite expensive such a type of study is quite expensive and time consuming.The preparation of the research design. However. The sample should adequately represent the universe or the population. Explanation of the way in which selected means of obtaining information will be organized and the reasoning leading to the selection. i. 41 . Only the government organizations conduct such studies. The selection of sample is called sampling technique.e. • • The time available for research. However. normal researches.

Census is an expensive impractical and uneconomical way of doing research analysis. which are faced in census studies. Study of sample and analyzing its results helps the researcher generalize the results to the whole population within no time as compared to census study. Accuracy: Effective and wisely structured sample provides accurate answers to the study questions/research needs. Inaccessibility of Some of the Populations: Sometimes some populations are inaccessible and in that case the sample units comprising of similar units can be effective in conducting the research and coming out with results which area applicable to the whole population including the inaccessible population.WHY ONLY SAMPLING? We would not be in apposition to need any statistical theory if we use census to obtain information from the population. Large Size of Populations: Representative sampling helps to conduct study for large populations. people and time. The most important reason why one uses sampling rather than a census is as follows: Economy: When one uses a sample then he requires fewer amounts of resources as compared to census. TYPES OF SMAPLE • • • • • • Non-random Sampling The Convenience Sampling Judgment Sampling Quota Sampling Panel Sampling Random Sampling 42 . Error and Biasness in Observation and Analysis: Census studies involve more error and biasness in both observations and analysis as compared to the sampling studies. which includes cost. Small samples are easy to control and thus reduce normal errors. A wisely selected sample can provide all answers sought by the researcher very economically. Time Factors: Sampling decreases the time spent by the researcher in dealing with the issue.

This method is also very limited.• • • • • Simple Random Sampling Systematic Random Sampling Stratified Random Sampling Cluster Sampling Multistage Sampling DATA COLLECTION & METHODS Data collection and analysis methods for impact evaluation vary along a continuum. compare. These methods. • • • • METHODS OF DATA COLLECTION SIMPLE RANDOM SAMPLING BY OBSERVATION BY MAILING OR QUESTIONNAIRES SIMPLE RANDOM SAMPLING This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the samples and each one of the possible sample. At the one end of this continuum are methods relying on random sampling. without interviewing the respondents. 43 . in case of finite universe. has the same probability of being selected. As such this method is not suitable in inquiries where large samples are concerned. produce results that are easy to summarize. structured data collection instruments that fit diverse experiences into predetermined response categories. generally associated with quantitative research. the information obtained relates to what is currently happening and is not complicated by either the past behavior or future intensions or attitudes of respondents. and generalize. and statistical data analysis. BY OBSERVAION This method implies the collection of information by way of investigator’s own observation.

The questionnaire is melt to response then or expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. Respondents have adequate time to give well thought out answers. who are not easily approachable.BY MAILING OR QUESTIONNAIRES The researcher and respondents do not come in contact with each other if this method or survey is adopted. These main demerits of this system can be listed here: Low rate of return of the duly filled in questionnaires. 44 . bias sue to no response is often indeterminate. It is being adopt by private individual research workers and workers. A questionnaire consists of a number of questions printed of typed in a definite order on a form or set of forms. The respondents have to answer the questions on their own. Questionnaires are mailed to the respondents with a request to return after completing the same. COLLECTION OF DATA THROUGH QUESTIONNAIRES This method of data collection is quite popular. In this method a questionnaire is sent (usually by post) to the persons concerned with the request to answer the question and return the questionnaire. Large samples can be made use of and thus the results can be made more dependable and reliable. It can be used only when respondents are educated and cooperating. private and public organizations and even by government. answers are in respondent’s own words. It is the most extensively used method in. Respondents. can also be reached conveniently. The method of collecting data wise mailing the questionnaires to respondents is most extensively employed in various economy and business surveys. The merits claimed on behalf on method are as follows: There is low cast even when the universe is large and is widely spread geographically. particularly in case of big enquiries. It is free from the bias of the interviewer.

Question may be dichotomous (yes or no answer). Researcher should note the fooling with regard to these three main aspects of questionnaire. Technical terms and vague expression capable of different interpretations should be avoided in a questionnaire. hence it should be very carefully. question sequence and question formulation and wording. In a big enquiry the significance of pilot survey is felt very much. the size of the questionnaire should be kept to the minimum.. MAIN ASPECTS OF A QUESTIONNAIRE Quite often questionnaire is considered as the heart of a survey operation. multiple choice (alternative answers listed) or open ended. if it is not properly set up. Pilot survey is infecting the replica and rehearsal of main survey. improvement can be affected. From the experience gained in this way. Personal and intimate questions should be left to the end.The control over questionnaire may be lost once it is sent. interpretation of omissions is difficult. There is in built inflexibility because of the difficulty of amending the approach once questionnaires have been dispatched. Such a survey. Questions should proceed in logical sequence moving from easy to more difficult questions. It is difficult to know whether willing respondents are truly representative. being conducted by expert. ESSENTIALS OF A GOOD QUESTIONNAIRE To be successful. brings to the light the weakness of the questionnaires and also of survey techniques. There should be some control 45 . this fact requires us to study the main aspects of a questionnaires viz. Before using this method. There is also possibility of ambiguous replies or omission of replies altogether to certain questions.e. the general form. then the survey is bound to fail. questionnaire should be comparatively short and simple i. This method is likely to be the slowest of all. it is always advisable to conduct ‘Pilot Study’ (Pilot Survey) for testing the questionnaires. The later types of questions are often difficult to analyze and hence should be avoided in a questionnaire to the extent possible.

is a plus point for enlisting cooperating. a question designed to determine the consumption of particular material may be asked first in terms of financial expenditure and later in terms of weight. particularly in mail surveys. Suitable bar-diagrams and pie-diagrams are presented for visible documentations of results. (b) Central Editing.questions in the questionnaire. introduce a crosscheck to see whether the information collected or not. Adequate space for answers should be provided in the questionnaire to help editing and tabulation. Brief directions with regard to filling up the questionnaire should invariably be given in the questionnaire itself. “no preference” and so on.g. surveys etc. e. editing is two types: (a) Field Editing. PROCESSING AND ANALYSIS OF DATA PROCESSING OF DATA The collected data in a research is processed and analyzed to come to some conclusion or to verify the hypothesis made. Editing makes careful scrutiny or investigation of collected data like questionnaire. For instance. After the collection of data these were systematically presented in tables and statistically analyzed for deriving information. Finally. “do not know”. This should always be provision for indications of uncertainty. the physical appearance of the questionnaire affects the cooperation the researcher receives from the recipients and as attractive looking questionnaire. thus. Questions affecting the sentiments of respondents should be avoided. 46 . Processing of data is important as it makes further analysis of data easier and efficient. editing assures accuracy of data and consistency of facts gathered etc. Processing of data technically means • • • • Editing of Data Coding of Data Classification of Data Tabulation of Data EDINTING Data editing is a process by which collected data is examined to detect any errors or omissions and further these are corrected as much as possible before proceeding further. which indicate the reliability of the respondent. The control questions.

CLASSIFICATION Classification of data implies that the collected raw data is categorized in to common group having common features. In coding a particular numeral or some symbol is assigned to the answers (collected data) in order to put the responses in some definite categories or classes. Coding can be done manually or through computer. Coding decisions are considered while developing or designing the questionnaire or any other data collection tool. The classes of responses determined by the researcher should be appropriate and suitable to the study. TABULATION The mass of data collected has to be arranged in some kind of concise and logical order. 47 . Coding enables efficient and effective analysis as the responses are categorized into meaningful classes. Tabulation is an orderly arrangement of data in columns and rows.CODING Classification of responses may be done on basis of one or more common concepts. Data having common characteristics are placed in a common group. Tabulation summarizes raw data and displays data n form of some statistical tables. This procedure is referred to as tabulation. Thus the entire data collected is categorized into various groups or classes. which convey a meaning to the researcher.

CHAPTER-6 DATA ANALYSIS 48 .

could be it 49 . Q: 1 Age-wise classification of distributers? Table:1 Age Less then 25 years 25-35 Years 35-45years Above 45 years Total Number of distributer 24 32 30 14 100 Graph:1 Less then 25 years 25-35 Years 35-45years Above 45 years From the above Table 1. Individual who are non. Individual who are foreigen passport holders and are not of Indian origin require approval from the Reserve Bank of India to apply for distributorship. Individual who are residents in India and are Indian citizens are free to do the Amway business without satisfying any prior conditions. Individual who are residents in India and are prerequisites for individuals to apply for an Amway consumer.residents in India are required to register with the Reserve Bank of India within 90 days of starting their Amway business in India.DATA ANALYSIS One or two person in their individual capacities normally carry out an Amway customer.

32 consumer belong to the age group of above 25 years but below 35 years.understood that out of 100 respondent consumer. 24 consumer belong to the age group of less than years. Further the Table shows that the 30 distributor belong to the age group of above 35 years but below 45 years and 14 consumer belong to the age group of above 45 years. Q: 2 Gender-Wise classification of consumer ? 50 .

The following table shows the gender-wise classification of consumer.Consumer are of both gender. Table:2 Gender Men Women Total Graph:2 Number of consumer 56 44 100 Men Women From the above table 2. it is understood that out of 100 respondent consumers. Q: 3 Literacy level of Amway consumer? 51 . 56 consumer are men and consumer are women.

Literacy level of the consumers plays an important role in marketing the Amway products. Table:3 Literacy level Higher secondary Diploma Degree Post graduate Degree Total Graph:3 Number of consumer 22 34 30 12 100 Higher secondary Diploma Degree Post graduate Degree It is evident from table 3.? Table:4 52 . 30 consumer are degree holder and 14 consumer are postgraduate degree holder. that the educational qualification of 22Amway consumer Is higher secondary 34 consumer are diploma holders. The following that shows the qualification of consumers. Q: 4Income –wise classification of Amway Distributers.

000-Rs10.000 Rs.5. In this survey.Income Below Rs.000 and 12 consumer earn above Rs.10. 5. an attempt is made to find out the sources of information on which most of the distributors rely for their business.000 Above Total Graph:4 Number of consumer 45 43 12 100 Below Rs.000. 42 consumer earn above Rs.5000 per months. Q: 5 Sources of information about Amway business. 5. 10.000 Rs.000-Rs10.000 Above Table 4 reveals that 45 consumer earn below Rs. 5000 but below Rs. 53 .5.

Table:5 Sources Friends Relative Neighbours Other Amway consumer Total Number of distributers 27 29 20 24 100 Friends Relative Neighbours Other Amway consumer Graph:5 From the above table 5. 29 consumer got the information from relative. it could be inferred that out of 100 respondent. Q: 6 Reason for starting Amway business? The Amway consumer take up the Amway business for both. 24 from other Amway consumer and only 20 consumer got the idea from neighbors. self-employment and additional income. 27 from their friends. Table:6 Category Self employment Number of respondent 67 54 .

Table 7 shows the amount of capital invested at the initial stage of starting the business by the respondent consumer.Additional Total 33 100 Self employment Additional Graph:6 It is inferred from the above the table that 67 consumer have taken up Amway business for self-employment and 33 consumer have taken it up for the purpose of additional income. capital is the most essential thing. Table:7 55 . It also one of the four important factors of production. no activity can be performed. Without which. Q: 7 Initial investment? For any business.

000 Graph:7 The above table reveals that 43 consumers had invested above Rs.000 and 12 consumer had invested above Rs. The following Table shows the classification of consumer based on training programme. 4000-Rs. 4000-Rs. 19 consumer had invested above Rs. 10.000 Above Rs. 10.10. 8000 Rs. Q: 8 Training program? The training programme conducted by Amway India enterprice assists the consumer in selling the Amway products. 25 counsumer had invested above Rs. 4000.000. 10. 8000 Rs. 6000 Rs. 6000 Rs. 6000-Rs. 8000-Rs.000 Above Rs. 8000-Rs. Table:8 Training programme Attended Not attented Total Number of distributer 88 12 100 56 .8000.000 Total Number of consumer 43 19 25 12 1000 Rs. 10. 6000-Rs. 10. 6000 and below Rs. 8000 and below Rs.Investment Rs.

Attended Not attented Graph:8 From above table it could be observed that 88 distributor had attended the tranning program conducted by Amway India enterprise and 12 distributors had not attended the training programme. Table:9 Consumer Sponsored Non-sponsored Total Number of distribution 50 50 100 57 . The more the number of consumer sponsoring consumer earn greater amount of concession and receive reward and recognition from Amway India enterprise. Q: 9 Sponsoring of consumer is the main criterion for the income of Amway consumer.

Q: 10The source ofreaching customer? The distributor reach the customer through various sources.Graph:9 Sponsored Non-sponsored It is evident from the above Table that 50 consumer have sponsored many Amway consumer and 50 consumer have not sponsored any Amway consumer. These sources are classified into five categories as shown table. Table:10 Sources Through friends Through relative Through colleagues Through neighbors Through other sources Total Number of distributors 28 32 24 13 03 100 58 .

Through neighbors 13 distributors reached their customer through other sources . 32 consumer reached the customer through their friends.Graph:10 Through friends Through relative Through colleagues Through neighbors Through other sources The above table shows that 28 distributor reached the consumer through their friends. Q: 11Targeted customer? Table:11 Targeted customer High class Middle class Low class Other(lower than middle class) Total Graph:11 Number of customer 15 78 04 03 100 High class Middle class Low class Other(lower than middle class) 59 . 32 distributor reached the customers through their relatives and 24 distributor reached the customer through colleagues.

The products are classified into four categories as in table. The targeted customers of 4 customer are low-class people and the targeted customer of 3 customer are other lower than middle class people. It is found that there is preference of Amway products among the consumer from the point view of the Amway customers. the targeted customers of 15 customers are high-class people. Table:12 Products Personal care Home care Nutrition and wellness Soft toys Total Graph:12 Number of distributor 36 48 15 01 100 Personal care Home care Nutrition and wellness Soft toys 60 . Q:12Prefrence of products among customer.It is understood from the above table the above table that out of 100 customers. The targeted customer of 78 are the middle-class people.

Q: 13 opinion about the price of Amway products? The price of the Amway products is high when compared to other products. The following table gives the opinion of the consumer on the price of the Amway products. Table:13 Price Price affect the sales Price does not affect the sales Total Graph:13 Number of counsumer 84 16 100 Price affect the sales Price does not affect the sales 61 .

Table:14 Ways Number of customer Through effective demonstration 22 Through comparison of Amway products 27 with other products Explanation about the superior quality of 27 the products Explanation about the use of small quantity Total Graph:14 Through effective demonstration Through comparison of Amway products with other products Explanation about the superior quality of the products Explanation about the use of small quantity 24 100 62 . Q:14Ways of convincing the customer about the price of Amway products? If the consumer`s way of convincing are effective eventually their sales may start to increase.It is clear from the table that 84 consumer are of the opinion that the price of the Amway products affects sales while 16 consumer are of the opinion that the price of the Amway products does not affects their sales.

Q: 14Item Having High Volume of sales? Table:14 Products Personal care Home care Nutrition and wellness Soft toys Total Number of consumer 45 19 36 0 100 Personal care Home care Nutrition and wellness Soft toys Graph:14 63 . It is noted that 27 consumer explanation about the superior quality of the products for the purpose of convincing their customer while 24 customer explain the use of small quantity of Amway products to convince of their consumers.It could be understood that 22 consumer convince through effective demonstration of Amway products while 27 consumer convinced through comparison of Amway products with other products.

It is clear from the above table that home care products shows a high volume of sales according to 19 customer personal care products shows a high volume of sales according to 45 customer and nutrition and wellness products show a high volume of sales according to 36 customer. Q: 15 Factors influencing the customers to buy Amway products? Table:15 Factors High quality Long term usage No side effects Total Graph:15 Number of customer 28 45 27 100 High quality Long term usage No side effects 64 .

CHAPTER-7 Conclusion 65 . Long term usage of Amway products influence the customer to buy as opined by 45 customer and consumer were of the view that lack of side effect influences the customer to buy Amway products.from the above table it is clear that 28 customer are of the view that high quality influence their customer to buy Amway products.

The aim of introducing any new products is to reach all classes of people irrespective of their income class of living and the like. The Amway business may be pursued on part time as well as full time basis. Direct selling companies must take steps to promote their products to reach all classes of people. But this concept does not hold good in case of direct selling. The success of dirct selling compnies depends on the consumer satisfaction backed with customer satisfaction. Customer satisfaction is guaranteed to these companies only when the company takes into consideration the price of the products as well as sales promotion methods even if it offers world-class quality products at customer convenience. 66 .Conclusion direct selling offers the best business opportunity to any individual like other business activities.

CHAPTER-8 SUGGESTION 67 .

the following suggestions are made: (1)To create awareness. (2)Even though Amway offers quality goods at customer convenience. So. Amway must take effective sales promotion methods like advertising so that the products reach every class people. The price is the main factor. 68 . its price are very high. which curtails the purchase of Amway products. Amway should take steps to reduce the price of the products to gain more customers.SUGGESTION on the basis of the above analysis.

69 . The existing Amway customer is not be easily find out.LIMITATION OF THAT STUDY • • • • • In Indian contest that is not easy to convince a people to join the Amway. In rural areas Amway is not so popular. The Indian market is not the easy to be taped. Products cost is too high in respect to the products which are using in the rural areas.

W.W.com W.com W.W.com 70 .W.marketing of Amway products.R.com W.W.APPENDIX BIBLIOGRAPHY Philip kotler C.W.W.W.directselling. Kothari W.Amway.AmwayIndia.

5000 Rs 5000 – Rs.Questionnaire Q: 1 In which age group respondent lies? Less then 25 years 25-35 years 35-45 years Above 45 years Male Female Higher secondary Diploma Degree Post graduate degree Below Rs. 10000 Above 10000 ( ( ) ) ( ( ( ( ( ( ( ) ) ) ) ) ) ) ( ( ( ( ) ) ) ) Q: 2 Gender wise classification of respondent? Q: 3 Education level of the respondent? Q: 4 Income wise classification of the respondent? Q: 5 Sources of information about Amway business? 71 .

4000-Rs6000 Rs 6000-Rs8000 Rs8000-Rs10000 Above Rs. 10000 Q: 8 Training program Attended Not attended Sponsored Not sponsored High class Middle class Low class Other (lower than middle class) Q: 11 Preferences of products? Personal care Home care Nutrition and wellness Soft toys Price affects the sales Price does not affect the sales ( ( ( ( ( ( ( ( ( ( Q: 6 Reason for starting Amway business? Q: 7 Preferences for initial investment? wise classification of respondent? Q: 9 Classifications on the basis of sponsorship? Q: 10 Who will be the target customer? ( ( ( ( ( ( Q: 12 Opinions on the price of Amway products? 72 .Friends Relatives Neighbors ( ( ( ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( ( ( ( ) ) ) ) ) ) ) ) ) ) Other Amway distributors ( Self employment Additional Rs.

Q: 13 Ways of convincing the customers? Through effective demonstration Through comparison of Amway products with other products Explanation about the superior quality of the products Explanation about the use of small quantity Q: 14 Item having high volume of sales Personal care Home care Nutrition and wellness Soft toys ( ( ( ( ) ) ) ) ( ( ( ( ) ) ) ) Q: 15 Factors influencing the customers to buy Amway products? High quality Long term usage No side effects ( ( ( ) ) ) 73 .

74 .

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