PRESENTED BY

GROUP 13
1.ASSESSMENT OF AMWAY’S
DISTRIBUTION POLICY FOLLOWED FOR THE
INDIAN MARKET
 Amway broke time tested and traditional
distribution set up.
 The investment was done to set up a
distribution network and offices and advertising
to create a foundation for the company to grow.
 The Amway products for India are made by 3rd
party contracts in 4 plants i.e.2 in Hyderabad 1
in Pune and 1 in Daman.
 Introduction of Value for money i.e. Chhota Pack
to target price conscious customers
 Amway introduced a range of India-specific
products like the ‘Persona’ brand at lower price
than the competitors.
 It came with strategy of providing convenience
price points to customers and also trial purchase
of the products
 Initiative of Amway was “Operation Ghar,” a
novel delivery strategy.
 Servicing distributors weakened Amway’s growth
due to unavailability of infrastructure like
networked banks, toll free phones and multi-
service courier companies.
 FUTURE THREAT :- E- shopping
 3 issues for Amway:-
1.High cost of long distance call.
2.Non acceptance of cash by courier companies
3.Late delivery of products
 Distributor’s business was done by Courier
companies .
 Amway invested in IT as information flow both to
and from distributors is critical in direct selling.
 It adopted strategy of a few company locations
means decentralization was done.
 Amway also did “real time” V-SAT linkages
between all its offices.
2.CHALLENGES FOR AMWAY IN PENETRATING
SMALLER TOWNS AND SUB URBAN LOCATION.

 Cost of making long distance calls

 Courier companies refusal to accept cash
 Time taken to deliver the products
 Devising a proper promotion schemes
 Competition from products available in local
markets
 Sale person’s inability to understand the rural
consumer behavior.
3. MARKET GROWTH STRATEGY FOR
AMWAY
Product Strategy-
Small size packaging-
Packaging – product literature with easily understandable
language and only functional benefits should be appear on the
pack,(for health product and cleaners)
See through pack-more attractive
Reusable packing material-for higher quantity order
Sturdy product – for the feeling of value of money.
Branding - as Desi company and desi products .
Distribution strategy –
 of opinion leader as distributor person may act as
brand ambassador for particular location
 Selection of women in the sales team (as women are
the main decision maker)
 1st Amway should target larger village
 Small warehouse located nearby clusters of medium
size town along with Quick delivery van.
 Identification of peak season for bulk sales and ensure
delivery of products
 A typical FMCG distribution channel
5 to
20%
5% Customer
Manufacturer Retailer
Reimbu
rsed
Distributor

C&F agent
2%
1%
Super-stockist
Wholesaler
5%
Sub-stockist

e
Price strategy-
 Low cost per unit-

 Cost saving in packing

 Sales on credit.

Promotional strategy-
 Increasing brand visibility.

 Word of mouth promotion is best for rural India. Use satisfied customer
as brand ambassador
 Awareness campaign particularly in lean season and in weekly haats
and mandies .

NOT JUST SELL BUILD BRAND.....

THANK YOU