AMWAY CASE STUDY

PRESENTED BY
ADITI YADAV –PGP21234
AKASH TIWARI-PGP21011
BEAUTY SINGH –PGP21040
KARTIK NAIR-PGP21078
MUSKAAN SOLANKI-PGP21105
SACHIN GARG-PGP21155
SUSHMA JAISWAL-PGP21187
 FOUNDERS
Jay Van Andel Richard DeVos
Amway’s 2018 Revenue: US$ 8.8 Billion
DIRECT SELLING
 MULTI-LEVEL MARKETING
Distributors earn their commission at
2 levels:
1. The difference between the
Distributor cost of buying the
product and selling the product.
2. The proportion of the commission
earned by the lower level
distributors.
 Amway’s Report
(As per 2018)

1.Amway is present in 110 countries.

2.It’s manufacturing plant is located in US, Korea, China, India
and Hungry.
3.Company has 4 million distributors in worldwide out of this 5
Lakhs are from India.
4.Around 17000+ employees are working in Amway.
Personal Care Home Care Home Tech Nutrition Cosmetics
 Partners in India
1.Manufacturing Partners : Jejuplast (Pune), Naisa Industries
(Daman) and Sarvotham Care (Hyderabad)
2.Logistics Partners : Sembawang Sriram Integrated Logistics
and First Flight Couriers
3.Support Partners : Network 21
4.Market Research Partners : Pathfinders and Org-Marg
Q.1 Comment on the concept of network or
multilevel marketing. Do you think the model would
be successful in India? Also, compare and contrast
the MLM model with the traditional distribution
system bringing out the merits and demerits of both.
 WHAT IS MULTILEVEL MARKETING?
• NETWORK MARKETING
• CHAIN MARKETING
• SCANDAL?
MULTILEVEL MARKETING

• WELL THOUGHT PHILOSOPHICAL SCIENTIFIC PROCESS

• MARKETING OF GOODS & SERVICES

• PROCESS TO PROMOTE PRODUCT & SERVICES

• CONTINUOUS HARD WORK AND COMPOUNDING RESULT

IS MLM SUCCESSFUL IN INDIA?
• FUTURE OF BUSINESS IN 21st CENTURY
• 72 BILLION INDIANS CONTRIBUTING Rs1000 CRORES OF REVENUE
2012-13
• WILL INCREASE TO Rs9000 CRORES TILL 2025 BY 675 BILLION PEOPLE
DOING IT
• A NEGATIVE AURA
• BAD COMPANY BAD PROMOTION(SHARDA SCAM/ SPEAK ASIA)
NETWORK MARKETING VS TRADITIONAL MARKETING

MANUFACTURER
MANUFACTURER
NATIONAL AGENT

WHOLESALER

DISTRIBUTOR
SALES FORCE

RETAILER

CONSUMER CONSUMER
Question 2
• Study the developments that occurred after Amway launched its
commercial operations in India. List the reasons which led to the
‘below expectation performance of the company’?
Developments after Amway launched in India

• Growth of small and medium scale companies

• Created employment
• Brought advance machinery and technology
• Setting up strategic business units
• Development of smaller towns and rural area
Reasons for the ‘below expectations’ performance

• Most of the products are used by the distributors

• Products are expensive and meant for only premium segment
• Poor customer service
• Price margin were higher than the competing firm
• Distributors were not aware about the value of the product
Q3. Critically examine the corrective measures
adopted by Amway to make the MLM model a
success. What further measures the company should
take in order to tackle the competition from FMCG
majors like HUL and P&G?
Measures adopted by Amway to make MLM
a success
• Focus on market in smaller towns
• Rapidly expand its offices
• Give incentives to cost and freight agents
• Tap unemployed youth
• Giving proper training and motivation to agents
 Understanding the competition

MARKET
LEADER
STARTEGY

EXPANSION OF PROTECT INCREASE

MARKET MARKET SHARE MARKET SHARE
MARKETING STRATEGIES: MATURITY
STAGE

MARKETING
MARKET PRODUCT
PROGRAM
MODIFICATION MODIFICATION
MODIFICATION
Thanking you..