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Know Your Company

GROUP 11
Nupur Kumari
Rakesh Bhushan Nayak
Chakkera Sai Trinadh Reddy
Umare Rahul Bandu
Vaibhav Sharma
Major Milestones
1959: Amway is founded
1959
1959: Launches it’s first product
1962: Becomes international
1968: Artistry Brand Debut
1959 1972: Amway acquires Nutrilite
1980: Amway tops $1Billion
1990: Expands to China and South Africa
2015: Acquires XS energy drinks
2019: #1 Direct selling company 2019
1962

1968 1990
1972 1980 2015
Core Values
Freedom
Family
Hope
Reward

Amway will always support the fundamental FREEDOM of people to


determine their own future, allowing them the time and resources to
protect and nurture their FAMILY. In addition, Amway will always offer
HOPE to individuals and the opportunity to receive REWARD in
proportion to their efforts
Amway in India
• Amway India is wholly owned
subsidiary of $10.8B Amway Corp.
Established in 1995, Amway India
commenced commercial operations in
May 1998 and has emerged as the
direct selling FMCG company
• Amway India recorded a total turnover
of Rs 2046 crores for the financial
year 2013-2014
• Amway India has 500 full time
employees and was awarded for its Amway’s Manufacturing facility in Tamil Nadu
peerless work for the blind children in
2003. The company has its
headquarter located in the New Delhi
PEST analysis
Political Social
• Received permission from • Active involvement of community
Foreign Investment • Operation ‘Ghar’ and operation ‘Ghadi’
Promotion Board Government • Hindi slogan “Humara apna Business”
Allowance • Focus on House Wives for part time
involvement
Economical Technological
• Localization of production and • Setup of R&D department
raw material • Produce sachets of products
• Local labour
• Local manufacturing
• Following the Indianization
strategy
Products

• Amway India offers Indian citizens an


unparalleled opportunity to own an and
operate their own business selling more
than 140 high quality consumer products.
These products are in the area of
• Nutrition and wellness
• Health care
• Beauty and Personal care
• Home products
• Products in its portfolio include some well
known brands like Nutrilite, Artistry ,
Attitude, Satinique, Dynamite and
Persona
SWOT Analysis
Strengths Weakness
• Global Presence (53 affiliate • Alarming attrition rate
operations worldwide) • Active distribution remained low
• Strong research and development • Products perceived to be expensive
• Large distributor network across the • Distributors lacked awareness of
world products
• Direct selling portfolio • Narrow focus on customer service
• Premium Quality • Lack of infrastructure
• Negligible or no competitions in its • Customer dissatisfaction
class
• Provide very convenient part time job
for women
Opportunity Threat
• Starting activities to deal with end • Competition from Oriframe
customers • Modicare took advantage of
• Aggressive market launch weakness
• Focus on small towns • E-commerce and internet
• Expansion of distribution network • Merging of telecom with cable
• Strengthen online presence television operators making sales
more obsolete
• Lower attrition rate
• Indian preferred security of job
• Making the distributors aware
BUSINESS MODEL (MULTI-LEVEL MARKETING)
In Amway business functioning, ABOs have the right to selling the products at a different level.
Sales are driven through Amway Business Owners (ABOs)

Amway – ABO1 – ABO2 – ABO3.. – Customer

● ABO gives a fix commission to ABOs,


plus income of 1st ABO gets added
when he or she adds the second ABO

● Hierarchy continues, and in some way,


the commission gets added in the
account of every ABO

With the Amway business models, the owners


will be able to sell the products of the company
directly and also they can make sure that they
help in the promotion of the products as well . . . .
. . . .
Corporate Social Responsibility
● Promoting education and health through its
○ National project for visually impaired
○ Project Sunrise
○ Power of 5 campaign to address
childhood malnutrition
● Livelihood enhancement through its
○ Community Health and
Entrepreneurship project
● Improve communities around manufacturing
plant through its
○ Village Health Program
○ Water and soil conservation project
THANK YOU

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