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RESEARCH PROJECT

ON

“ STUDY THE MARKETING STRATEGY OF AMWAY IN UTTAM


NAGAR EAST”

Submitted in partial fulfillment of the requirements for the award of the


degree of

BACHELOR OF BUSINESS ADMINISTRATION


TO
Guru Gobind Singh Indraprastha University

Submitted To: Submitted by


Dr. Preeti vats ANCHAL
BBA IV Sem

35196701721

KAMAL INSTITUTE OF HIGHER AND ADVANCE TECHNOLOGY

K-1 Extension, Mohan Garden, New Delhi – 110059


DECLARATION

I hereby declare the major project report, entitled “TO STUDY THE MARKETING
STRATEGY OF AMWAY” is based on my original study and has not been
submitted earlier for award of any degree or diploma to any institute or
university.

The work of other authors, wherever used, has been acknowledgement at


appropriate places.

Place: New Delhi Candidate ‘s Signature:


ANCHAL
35196701721
ACKNOWLEDGEMENT

I wish to express my sincere gratitude to all those with whom I worked


and whose thoughts and inspection contributed towards the completion
of this project.
This project would not have started and much less completed without the
encouragement and support of my faculty guide Dr. Preeti vats without
whose valuable insights the project would not have seen daylight.
Finally, I would also like to thank all my dear friends for their kind
cooperation, advice and encouragement during the long and arduous
task of preparing this report and carrying out the project.
At last but not the least, I would like to acknowledge my dear family
members whose blessings, inspiration and encouragement have resulted
in the successful completion of the project.

ANCHAL Dr. Preeti vats


35196701721 (Internal Guide)
BBA IV Semester
TABLE OF CONTENT

S.NO TITLE PAGE NO.

1. Objective of study

2. INTRODUCTION
3. LITERATURE REVIEW

4. RESEARCH METHODOLOGY

5. ANALYSIS AND INTERPRETATAION

6. CONCLUSION, SUGGESTIONS, LIMITATIONS AND FINDINGS


OF THE STUDY

7. BIBLIOGRAPHY

8. ANNEXURES

CHAPTER – 1

INTRODUCTION
The Report contains a brief Introduction of Amway. The company Amway has
Interests in various sectors and they provide consistent quality products to meet
our Market’s Requirement Worldwide.

This Report clearly mentions Objective of the study and the Research Methodology
utilized. The data collection method used is Structured Non-Disguised
Questionnaire in which the types of questions used are open ended, multiple
choice and close ended.

Objective of study
 To know the market reference for health care products.
 To study the market potential of AMWAY
 To study the consumer buying behaviour
 To know the popularity of AMWAY products among
individuals.
 To study problems faced by AMWAY.

COMPANY PROFILE
Amway is a unique company. It is defined by the fundamental philosophy of
helping people help themselves. Amway has helped millions of people run their
own independent business around the world. Today’ Amway continues to grow by
offering new products and business opportunities to people from all cultures and
walks of life. Whether they are employees’ distributors, or citizens in the
community’ Amway touches their lives for better. India with its rich reservoir of
will’ talent and enterprise is perhaps that most fertile ground for the Amway
Corporation. In short it has made substantial value addition to India’s social
economic life. The focus of this project is based on studying a single organization
i.e. The Amway corporation. This research has been conducted to study the
consumer awareness towards Amway in the Indian Market. An attempt has been
made tp study the company’s perspective in the new market and analyze on how
the company plan its expansion in India. I have sustained my research by
conducting interviews to gain more insight about the corporation. The data has
been analyzed on the basis of questionnaire which were conducted by me. I have
finally concluded my research by providing a summarized conclusion and also
suggested recommendations on the basis of the marketing mix.

Amway (short for "American Way") is an American company specializing in the use
of multi- level marketing to sell health, beauty, and home care products. The
company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in
Ada, Michigan. Amway and its sister companies under Alticor reported sales of
$9.5 billion in 2015. It conducts business through a number of affiliated companies
in more than a hundred countries and territories. Amway was ranked No. 29
among the largest privately held companies in the United States by Forbes in 2015
based on revenue, and No. 1 among multi-level marketing companies by Direct
Selling News in 2016. Amway has been investigated in various countries and by
institutions such as the Federal Trade Commission (FTC) for alleged pyramid
scheme practices. HISTORY FOUNDING Jay Van Andel and Richard DeVos had been
friends since school days and business partners in various endeavors, including a
hamburger stand, an air charter service, and a sailing business. In 1949, they were
introduced to the Nutrilite Products Corporation by Van Andel's second cousin Neil
Maaskant. DeVos and Van Andel signed up to become distributors for Nutrilite
food supplements in August. They sold their first box the next day for $19.50, but
lost interest for the next two weeks. They traveled to Chicago to attend a Nutrilite
seminar soon after, at the urging of Maaskant, who had become their sponsor.
They watched promotional filmstrips and listened to talks by company
representatives and successful distributors, then they decided to pursue the

Nutrilite business. They sold their second box of supplements on their return trip
to Michigan, and rapidly proceeded to develop the business further. Earlier in
1949, DeVos and Van Andel had formed the Ja-Ri Corporation (abbreviated from
their respective first names) to import wooden goods from South American
countries. After the Chicago seminar, they turned Ja-Ri into a Nutrilite
distributorship instead.[17] In addition to profits on each product sold, Nutrilite
offered commissions on sales made by new distributors introduced to the
company by existing distributors—a system known as multi-level marketing or
network marketing. By 1958, DeVos and Van Andel had built an organization of
more than 5,000 distributors. However, they and some of their top distributors
formed the American Way Association, or Amway, in April 1959 in response to
concerns about the stability of Nutrilite and in order to represent the distributors
and look for additional products to market. Their first product was called Frisk, a
concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van
Andel bought the rights to manufacture and distribute Frisk, and later changed the
name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway Sales
Corporation to procure and inventory products and to handle sales and marketing
plans, and the Amway Services Corporation to handle insurance and other benefits
for distributors. In 1960, they purchased a 50% share in Atco Manufacturing
Company in Detroit, the original manufacturers of LOC, and changed its name to
Amway Manufacturing Corporation. In 1964, the Amway Sales Corporation,
Amway Services Corporation, and Amway Manufacturing Corporation merged to
form the Amway Corporation. Amway bought control of Nutrilite in 1972 and full
ownership in 1994. JAPAN HEAD OFFICE VIETNAM OFFICE.
CORPORATE STUDY
Amway Corporation was started more than 40 years ago by Jay Van Andel and Rich
DeVos. Its history grew out of an earlier business run by Rich and Jay, who sold
NUTRILITE™ supplements. Beginning with a highly effective cleaning product that
is still part of the Amway product range, L.O.C.™ Multi-Purpose Cleaner, Amway
expanded rapidly, offering people the chance to become Business Owners selling
Amway's growing range of products. Amway quickly achieved the position it still
holds, as a global leader in multilevel marketing. From early on, Amway was
dedicated to providing quality products as the foundation of an independent retail
business. That dedication led the company to invest in state-of-the-art product
development processes, supported by the finest quality manufacturing and
distribution facilities to be found anywhere in the world. Today, our business
operations reach into more than 80 countries and territories worldwide and we
support more than 3 million Business Owners. We are part of an international
organization with annual sales in excess of US$6.2 billion and we offer more than
450 different company-branded products and services globally.

We offer a unique business opportunity rooted in a vision of helping people live


better lives. 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.

VISION
Everyone needs a guiding vision to help direct their future. A business is no
different. At Amway, our vision is quite simple—we work each and every day to
Help People Live Better Lives. So how can we make a positive difference to you and
to others around the world? By helping people everywhere to discover their
potential and achieve their goals, by offering better products and opportunities for
the future, and by sharing generously with the global community.

 Helping Consumers Live Better Lives:

• By providing products and services that offer superior quality and value - to
better meet personal and household needs around the world.

• By making the Amway shopping experience faster, easier, and more convenient.

 Helping Business Owners Live Better Lives:

• By providing a business opportunity that empowers people to realize their


dreams.

 By making that opportunity flexible enough to accommodate each person's


individual goals, priorities and interest.
 Helping Employees Live Better Lives:

• By providing a stimulating work environment that encourages everyone to reach


his or her full potential.

• By creating opportunities that help all employees fulfill their personal and
professional goals.

Helping Neighbors Live Better Lives

• Through corporate contributions that help improve the quality of life in every
community where we do business. • By providing personal assistance to
individuals in need—particularly children.
Values
Amway has established some simple shared values that unite the entire company,
and all of the Business Owner organizations that are associated with Amway. We
believe that these values guide our actions and help us to achieve everything we
are capable of without compromise or harm.
Partnership
Working in trust and confidence with each other to maximize everyone's long-
term success.
Personal Worth
Treating people fairly, respecting their unique qualities, and giving them
opportunities to reach their full potential.
Achievement
Encouraging and recognizing creativity, innovation, excellence and
accomplishment in all we do.
Personal Responsibility
Helping people to hold themselves accountable for achieving personal, team, and
corporate goals.
Free Enterprise
Advocating freedom and free markets as the best way to improve standards of
living worldwide.
The Leaders
Chairman Steve Van Andel President Doug DeVos Senior Vice President, Amway
Corporation Managing Director, Amway International Jim Payne Senior Vice
President, Amway Corporation CEO, Amway Greater China Chairman, Eva Cheng
Founders' Fundamentals The way Amway does business was defined right at the
outset by its founders, Jay Van Andel and Rich DeVos. They outlined the ethical
and operational standards that continue to guide both the company and its
Independent Business Owners in all their activities. Those founding principles are
literally carved in stone outside the World Headquarters: Amway will always offer
HOPE to the individual, will support the fundamental FREEDOM of people to
determine their own future, allowing them the time and resources to protect and
nurture their FAMILY, and receive REWARD in proportion to their efforts. Amway is
as proud of these principles as it is of more than forty years of business success. In
fact, the two go hand in hand.
AMWAY SALES PLAN
The Amway Sales and Marketing Plan is a low risk, business 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.

The Amway Sales and Marketing Plan has been operating for more than 60 years
and is available in 108 countries & territories around the globe.
The core of the Amway Sales and Marketing Plan's income opportunity is the sale
of quality AMWAY products to retail customers. As your Amway business grows,
the rewards you earn grow in proportion. The Amway Sales and Marketing Plan
does not compensate anybody for simply recruiting others as Amway Direct Seller.

PRODUCT PROFILE
Category Products

 Kids Chewable Calcium Magnesium-Nutrilite


Nutrilite Dietary  Protein Powder 500g-Nutrilite
Supplements  Fibe-Nutrilite
 Kids Drink Mixed Fruit Flavour-Nutrilite
 Nutrilite Kids Drink Mango Flavour

 Hydrating Foundation-Artistry
 Hydrating Foundation Golden (Medium to dark)
Skin Care-Artistry  Time Defiance Night Recovery Lotion-Artistry
 Time Defiance Day Protection Lotion-Artistry
 Time Defiance Night Recovery Creme-Artistry

 Nail Paints (Ginger Fizz)-Attitude


 Nail Paints (Lavender Rain) -Attitude
Skin Vitalising-Attitude  Lipstick (Fiery Red)-Attitude
 Lipstick (Smoky Brown)-Attitude
 Eye Pencil - Deep Purple

 Shaving Cream-Dynamite
 Hair Cream-Dynamite
Male Grooming- Dynamite  Disposable Razors-Dynamite
 Deodorant for Men-Dynamite
 After Shave Splash-Dynamite

 Sweetshot Mint-Glister
Toothpaste-Glister
 Toothpaste-Glister

 Pure Coconut Oil-Persona


 Advanced Family Toothbrush-New Persona
Family-Persona  Premium 3 in 1 Soap-Persona
 Amla Hair Oil-Persona
 Classic Toothbrush-Persona

 Advanced 2-in-1 Shampoo and Conditioner-


Hair Protect-Satinique Satinique
 Anti dandruff shampoo

CHAPTER- 2
LITERATURE REVIEW

The review of literature plays a vital role in providing an insight into the research
problem. It helps a researcher to identify the research gap and develop a
meaningful hypothesis. It gives the idea of how the subject of the study could be
analysed . The researcher reviewed the available literature on agricultural credit by
the public sector commercial banks and farmer’s attitude towards such credits.
Various studies have already been made in respect of agricultural credit. The
findings of the studies in this regard are critically reviewed by the researcher and
they are furnished in this section. A. Muthulakshmi1 (2002) in her study on “Brand
Preference of Cosmetic Products - A Study with Reference to Kovilpatti Town,” has
analyzed consumer awareness of cosmetic Product. Marianne Elizabeth Lien2
(2002) in her study entitled, “Marketing and Modernity” said that multilevel
marketing has broken all the chains of conventional in marketing and especially
Amway products undoubtedly have struck themselves to a good position.

I have used Amway toothpaste bought from my Amway cons friend. I like this
paste Very much. I have toothache where had gone forever by using this Amway
company has Launched many product. Its product range has beauty products such
as lipsticks, face washes, Concealers and other more products. It also has
shampoos, conditioners hair oils, detergents and soaps etc. It price is somewhat
higher than other products but its quality is much better. It products are all very
good and give excellent results. I have also used its lipsticks which are Very soft
and my lips become soft and supple by using it regularly. Its nail paints are very
good Colour range is very good also. Indian is a poor country and a colgate of
39.99 is more accepted than a Glister (Amway toothpaste) of 99.00. No matter
how better Glister is. {yes, my mom and me both used Glister and got instant cure
from some tooth problems} But how many in India can afford 99.00 for teeth
where 50% can’t afford a squire meal a day? More over – MLM is something that’s
doing business with friends and Indians are reluctant to do so, because we believe
money brings bitterness in friendship (B) costly products – which targets middle
class needs MLM (BMW, Merc, Porsche doesn’t need MLM) and Indians are still
reluctant to go for costly products even if the product is good. Same reason you
see Big Bazaar is always crowded but shoppers stops and centrals and Globes and
other malls lack customer s until there is a sale. Amway may work in US. $2 for a
toothpaste is OK and worth giving it a try in US. Amway would have out marketed
Hindustan Unilever, P&G, Glaxosmithkline and others if they had a competitive
price. They somehow knew that since they can’t bring the price down – so let’s
bring people up to a level where some of them get addicted with Amway. But
Amway is not narcotic – so how to addict people? Solution is making some
AMWAY FANATICS. Like jihadis do, like communists do. But I am sure, even if
today Amway brings the price down and brings their products to retail market –
many established brands would get a run for their money. Amway claims financial
independence: They claim that in due course of time you Will be making so much
money that you can afford to leave job and work from home. Now To do that you
really need to have pretty solid savings and guaranteed cash inflow and I am Sure
to reach that level will take a long time Amway. Now if you devote the same time
to your job and give the same dedication I am sure you will do wonders
professionally and will do better financially. In my own case I spent in excess of Rs
10,000 which included the cost of the starter kit (around Rs 7000 in 2006) and cost
of the phone calls and attending meetings, I got negligible returns. If you actually
do income vs. expenses analysis you find out that you are not actually making
much money, by expenses I mean the cost of making phone calls, attending
meetings/seminars and above all your time. Literature overview

A review of the literature is an essential part of an academic research project. The


review is a careful examination of a body of literature pointing towards the answer
to a question.

Jay Van Andel and Richard DeVos (2009) two friends launched the business
module only on the basis of the friendship and trust they shared with each other.
The company started with a product L.O.C (Liquid Organic Cleaner) and turned out
to be one of American Largest Private company ranking number 29 on Forbes Lists.
This owes a commendable achievement in the private sector by a company which
not only deals with consumer products now but also with other sectors like
insurance, health care and beauty. The company’s success is clearly visible with
19000 employees working over the year thereby making an annual sale of $9.5
billion. Their sale value thereby allows Amway to be in one of the largest
companies in the private sector.
Writankar Mukherjee (2016)2,

(ET Bureau) wrote about how top direct selling FMCG Company Amway has plans


to add ten new products designed especially for Indian consumers in this calendar
year. This is likely to result in double-digit growth in FY-17 in cookware, health,
skin care and nutrition segments. A report by Edelweiss stated that Amway is
looking to triple its turnover over the next decade. India is amongst the top four
markets in growth rate and expects it to figure in the top three in next five years. It
said Nutrilite alone contributes more than 50% of Amway India's turnover. Amway
is also going to set up 10-12experience stores with Microsoft to display its range of
products to business partners, customers and distributors. Amway has more than
140 products in five categories - personal care, homecare, cosmetics, nutrition &
wellness and value products with about 70% of its revenue coming from personal
care, wellness and nutrition segments. The company has its manufacturing plant in
Tamil Nadu to manufacture all its products locally. Mark Thomas (1959)3 , Amway
is a multilevel marketing company founded in 1959 at Michigan, US. A member of
the direct selling association and better business bureau, it conduct its business
through affiliated companies in more than 90 nations across the globe. Amway
India started its commercial operations on May 5, 1998. It has invested in excess of
$35 million in India of which, $6 million is in the form of direct foreign investment.
It has been ranked by Forbes as one of the largest private companies in the US and
by Deloitte as one of the largest retailer in the world. Amway’s product line
includes home care products, personal care products, jewellery,
electronics, Nutrilite, dietary supplements, water purifiers, air purifiers,
insurance and cosmetics. Anthony Granger (2012) 4, Amway is a multi-level
marketing company. It relates primarily on person to person referral to market its
product rather than advertisements. It has been in India for almost 2 decades now
though it is yet to make significant inroads. The structure of Amway is hierarchical
but a person can still earn more than those who bring them to this organization.
The pyramid structure of the company has been under a lot of scrutiny and
criticism globally. Amway’s strengths include globally renowned brand, premium
quality and negligible or no competition in its class. Its weakness is evident in
pricing, presence of middlemen between the end user and organization, ban of
sale at retail outlets, packaging, negligible promotion and advertisement. It can
explore various opportunities in the areas of advertisement, penetration,
promotions and tie-ups. Ratna Bhushan ET Bureau (2015) 5, Amway India has
started charting out a new phase of engagement with the Indian government.
Anshu Budhraja, the firm's first India head in 16 years, has set his immediate
priority to engage constructively with the government and take Amway forward to
the next growth phase. Amway has consistently denied any default on its part.
Budhraja, who’s been with the company for 15 years in roles from sales and
finance, succeeded Bill Pinckney, who relocated to a global role. In India direct
selling is just 0.4 % of retail sales with significant opportunities to double the
numbers given that it has a leverage of 10 times. Amway's import content is down
to 1-2% from 20 to 25% two years back, he said. Amway India's top line
contribution is just 3 %, but it's a top 10 market for in terms of growth. As the
industry players mature along with the government's awareness of the potential
and socio-economic impact of this industry, then you certainly have a playing field.

*
CHAPTER - 3
RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps,
necessary to effectively carry out research and the desired sequencing to these
steps. The marketing research is a process of involves a no. of inter-related
activities, which overlap and do rigidly follow a particular sequence. It consists of
the following steps :

• Formulating the objective of the study

• Designing the methods of data collection

• Selecting the sample plan

• Collecting the data

• Processing and analyzing the data

• Reporting the findings

Primary Data Collection:


Direct interview with people who are associated with the Amway
Corporation in India.
Questionnaire filled by a selected group of people.

Secondary data collection:

 The data has also been collected from:

Books
Magazines
Editorials
Internet
Nottingham e-library
Amway Business Planner
Amway Opportunity Brochure etc.

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular
study. A research design is the arrangement of conditions for collection and
analysis of the data in a manner that aims to combine relevance to the research
purpose with economy in procedure. Research design is broadly classified into
three types as

 Exploratory Research Design


 Descriptive Research Design
 Causal Research Design

I have chosen the descriptive research design. Descriptive Research Design:


Descriptive research studies are those studies which are concerned with described
the characteristics of particular individual. In descriptive as well as in diagnostic
studies, the researcher must be able to define clearly, what he wants to measure
and must find adequate methods for measuring it along with a clear cut definition
of population he want to study. Since the aim is to obtain complete and accurate
information in the said studies, the procedure to be used must be carefully
planned. The research design must make enough provision for protection against
bias and must maximize reliability, with due concern for the economical
completion of the research study.
SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given population.
It refers to the technique to the procedure adopted in selecting items for the
sampling design is as below:

 Sample size
 Sample method
 Survey period
SAMPLE SIZE
The substantial portions of the target customer that are sampled to achieve
reliable result are 100. The cost and time limitation compelled me to select 100
respondents as sample size.
SAMPLING METHOD
In this marketing research project, I am using Random sampling method
SAMPLE DESIGN
As complete enumeration of all the members of the population (Member and
Non-member) I have understate sampling technique.
SAMPLE SIZE
 50 members 50 Non-members
SAMPLE TYPE
 AREA SAMPLING
SAMPLE AREA
 Moti Nagar
 Ghaziabad
SAMPLE SELECTION
 Simple random selection sampling
SAMPLE TECHNIQUE
I have taken the Statistical tool of percentage method to analysis and
interpretation of the collected data.

RANDOM SAMPLING :

A random sample gives every unit of the population a known and non-zero
probability of being selected. Since random sampling implies equal probability to
every unit in the population, it is necessary that the selection of the sample must
be free from human judgment. There is some confusion between the two terms
‘random sampling’ and ‘unrestricted’ random sampling. In the latter case, each
unit in the population has an equal chance of being selected in the sample. Such a
sample is drawn‘with replacement’, which means that the unit selected at each
draw is replaced into the population before another draw is made from it, ‘As
such, a unit can be included more than once in the sample. Most statically theory
relates to ‘unrestricted random sampling.

In order to distinguish between these two sample. I.e. sample, without


replacement and sample with replacement, the terms ‘sample random sample’
and ‘unrestricted random sample’ are used. If the latter is devised in such a
manner that no unit can be included more than once, it will then be known as the
simple random sampling. It may be noted that while both sample random
sampling and unrestricted random sampling give an equal probability to each unit
of the population for being included in the sample, there are other sample design
too which provide equal probability to the units. The process of randomness is the
very core of simple and unrestricted random sampling. The selection of a sample
must be free from bias, which can be ensured only when the process of selection is
free from human judgment.
Objective
of the study

Research
Design

Sample
Design

Data
Collection

Data
Analysis

Report of
the findings
CHAPTER – 4

ANALYSIS AND INTERPRETATION

ANALYSIS OF DATA

The study was conducted by the means of personal interview with respondents
and the information given by they were directly recorded on questionnaire. For
the purpose of analyzing the data it is necessary to collect the vital information.
There are two types of data, this are-

• Primary Data

• Secondary data

Primary Data :-

Primary data can be collected through questionnaire. The questionnaire can be


classified into four main types- (A) Structured non disguised questionnaire (B)
Structured disguised questionnaire. (C) Non structured non disguised
questionnaire (D) Non –structured disguised questionnaire.

For my market study, I have sleeted structured non-disguised questionnaire


because my questionnaire is well structured, listing of questions are in a
prearranged order and where the object of enquiry is revealed to the respondents.
To making a well-structured questionnaire, we have adopted three type of
questions- (a) Open ended question (b) Dichotomous questions (c) Multiple choice
questions These types of questions are easy to understand and easy to give
required answers.

Secondary Data :-

Secondary data means data that are already available i.e. they refer the data
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data, then he has to look into various sources from
where he can obtain them, in this case he is certainly not confronted with the
problems

that are usually associated with the collection of original data. Secondary data may
either be published data or unpublished data. Usually published data are available
in:

a) Various publications of the central, state and local government;

b) Various publications of foreign government or of international bodies and their


subsidiary organizational;

c) Technical and trade journals;

d) Books, magazines and newspapers;

e) Reports and publications of various associations connected with business san


industry, stock exchanges etc.

f) Reports prepared by research scholars, universities, economists etc;

g) Public records and statistics, historical document and other source of published
information. The source of unpublished data are many; they may be found in
diaries, letters, unpublished biographies and autobiographies and also may be
available with scholars and researcher,

workers, trade associations, labor because and other public private individuals and
organization.

COLLECTION TECHNIQUE:

Questionnaire method is used in collection the data.

Data processing and analysis Processing & Analysis the collected data:-

once the field survey is over and questionnaire have been received, the next task is
to aggregate the data in a meaningful manner.
A number of tables are prepare to bring out the main characteristics of the data.

The researcher should have a well thought out framework for processing and
analyzing data, and this should be done prior to the collection. it includes the
following activities—

(i) Editing: the first task in data processing is the editing. Editing is the process of
examining errors and omissions in the collected data and making necessary
corrections in the same.

(ii) Coding: coding is the procedure of classifying the answer to a question into
meaningful categories. Coding is necessary to carry out the subsequent operations
of tabulating and analyzing data. If coding is not done, it will not be possible to
reduce a large number of heterogeneous responses into meaningful categories
with the result that the analysis of data would be weak and ineffective, and
without proper focus. (iii)Tabulation: tabulation comprises sorting of the data into
different categories and counting the number of cases that belong to each
category. The simplest way to tabulate is to count the number of responses to one
question. This is also called universal tabulation. The analysis based on just one
variable is obviously meager. Where two or more variables are involved in
tabulation, it is called bivariate or multivariate tabulation.

(iv) Analysis: After the all three above steps, the most important step is analysis of
the data. Under this step, they can use the various tools of the analysis such as
Central Tendency, Dispersion, Correlation co-efficient, Regression Analysis, and
Test of Hypothesis etc. 
Table 1.

S.NO RESPONDENT YES NO

Business Man 12 10 02

Service Man 10 08 02

Student 15 12 03

Housewife 13 05 08

Total 50 35 15

YES
30%
N0

70%

INTERPRETATION:
From the above table and graph it shows awareness about Amway 70 % among
the population.
TABLE 2.
BASIC FACTOR INFLUENCES TO PEOPLE
FACTORS RESPONDENT PERCENTAGE (%)

INCOME 30 60

PRODUCT 0 0

QUALITY 10 20

AS A PROFESSION 0 0

PROFIT MARGIN 10 20

TOTAL 50 100

BASIC FACTORS INFLUENCES TO PEOPLE


Percentage %

0 10 20 30 40 50 60 70

No.of respondent

INTERPRETATION:
The above data and graph show the most of individuals join any MLM

only for the income 60% and rest for quality and for profit margin i.e.,

20% and 20% respectively


TABLE 3.
ACTIVE MEMBER

FACTORS NO. OF RESPONDENT PERCENTAGE %

FULL TIME 10 20

PART TIME 20 40

INACTIVE 20 40

TOTAL 50 100

ACTIVE MEMBER

20

40

40

FULL TIME PART TIME INACTIVE

INTERPRETATION:
The above data and pie chart show that only total of respondent only 20%
people do it as full time and rest 40% part time and 40% become inactive.
TABLE 4. NATURAL MARKET

Market No. of Respondent Percentage %

Friends 14 28

Relatives 08 16

Neighbour 10 20

Social Affiliate 15 30

Other 03 06

Total 50 100

NATURAL MARKET

6
Friends
28
Relatives
30
Neighbour

Social Affiliate
16
Other
20

INTERPRETATION:
The above data that is so mostly members of natural market is the social affiliate
and then rest like neighbour, friends and relatives once.
TABLE 5. INTEREST IN AMWAY

S. NO NO. OF RESPONDENT PERCENTAGE %

1. 10 20

2. 12 25

3. 08 15

4. 20 40

TOTAL 50 100

INTEREST IN AMWAY

4 40
20

3 15
PERCENTAGE%

8
PERCENTAGE
NO. OF RESPONDENT

2 25
12

1 20
10

NO. OF RESPONDENT
CHAPTER -5

CONCLUSION, SUGGESTION, LIMITATIONS, AND FINDINGS OF THE


STUDY

CONCLUSION

 The product of the Amway is very costly and due to this the middle class
families do not prefer it.
The awareness level of about the Amway is about of the seventy
percentages it means it that Amway makes at position in the consumer
minds and Amway got the success in making of its position in the market.

Due to the cost of product people not preferred to use product and the
quality is also rated average it means it fail to attract the consumer by the
offering of the product

MLM is considered as an addition al source of income and it provides the


opportunity to unemployed once.

After the analysis of all the data and the table, I come on conclusion that the
members are not satisfied with the return, which he got, from it and
members become inactive or drawn.

It resulted in the slow growth rate in Amway. Once it is one a pick but now
the growth speed become reverse.
SUGGESTIONS

 The price of product should be low so that all level families use the product.

 There should be some modification in the policy of membership in so that it


attract more individuals.

 The entry fee for membership should down that all I income group can
able to take membership in Amway.
There should be increase in the profit margin to the
members.
 Awareness about Amway is good but they have to make more programmers
like seminars, Amway meeting and cultural program so that they are able to
make more awareness to more peoples.

LIMITATIONS

 Short time for research.


 All the data is not available regarding the financial position and financial
statements.
 Respondent are not ready to explore more information about the Amway.
 There may be occurrence of response error in the report. Report is also
affected by the cost factor There may be chances of sampling error.
 There may be measurement error in analysis of data.
FINDINGS
 The awareness about Amway is high as about 70%.

 Mostly an individual preferred network marketing for earning of additional


income. According to survey scheme of Amway is very attractive but most of
the respondent viewed that it is very hard to convince an individual for
membership.

 According to respondent view the product of Amway is so costly and it is not


preferable by middle and lower class family.

 Mostly respondent graded product quality is average.

 Price of product is high.

 Number of members become in active or drawn their member ship from


Amway because they fail to make new members.
CHAPTER- 6

BIBLIOGRAPHY

Website

 www.google.com

 www.amway.com

 www.wikipedia.com

 www.slideshare.com

 www.metachart.com
CHAPTER – 7

ANNEXURES

QUESTIONNAIRE

1) For which purpose you usually use Amway products?

 Nutrition
 Soap
 Protein powder
 Beauty home

2) Which thing attracts most in Amway?

 Price
 Advertisement
 Quality
 Others

3) How do you learn about Amway?

 Independent
 Newspaper
 Internet
 Magazine

4) Do you like Amway products?

 Likely
 Unlikely
 Very Likely
 Very Unlikely
5) Would you continue to buy Amway products if its price rises up to 10 percent?

 Agree
 Disagree
 Strongly Agree
 Strongly Disagree

6)On which occasion do you buy Amway products?


 Daily
 weekly
 Monthly
 Unoccassionally

7) Do you buy Amway products in bulk quantity?


 Agree
 Disagree
 Satisfied
 Unsatisfied
8) Are Amway products available in the local market?
 Agree
 Strongly agree
 Disagree
 Strongly disagree

9) How would you rate Amway products overall?


 Excellent
 Good
 Bad
 Moderate

10) Would you recommend others in buying Amway products?


 Agree
 Disagree
 Neither agree nor disagree
 Neutral
11) About Amway products what do you like the most?
 Brand name
 Quality
 Easy availability
 Any other

12) Have you seen any advertisement of any Amway products?


 Yes
 No

13) What attracted you in the advertisement (please rate them from 1 to 3)?
 Creativity
 Idea of delivering message
 Frequency of add
 Logical reason

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