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8/12/2019 Contents Final Rm 123

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Contents

1. Introduction2. Objectives3. Research Methodology4. Questionnaire

Interview

5. Data Analysis Interpretations6. Conclusion7. Limitation of the project8. Bibliograpy


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INTRODUCTION

Direct Selling is a remarkable business model, which brings the market to the customer and

offers a unique business opportunity to anyone eager to adopt the spirit of enterprise. Direct

Selling can best be described as the selling of products and services directly to consumers in a

face-to-face manner, through demonstration of usage, by an independent direct salesperson.

Direct Selling benefits consumer because it sells high quality products at the consumer's

convenience, often at his/her home or workplace. Customers value the advantages of

convenience, personalised attention, demonstration of usage, and a wide choice of products

backed by Customer Satisfaction Guarantee.

One of the most tangible impacts of Direct Selling in its new advent has been the fact that it has

touched the average man and women in a manner never experienced before. Amway India

Corporation is the country's leading Direct Selling Company. It is perhaps the best example of

the contribution Direct Selling is making to India. In a little over two years of commercial launch

Amway India has emerged as the country's largest Direct Selling company. It closed its financial

year with a turnover close to Rs. 250 crores (the Amway Financial year runs from Sept. to Aug.).

It will reach its target of Rs. 1000 crore turnover much before its declared target of the year

2004..


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The direct selling industry has grown rapidly over recent years. Changing lifestyles,

demographics and economic recession have all been factors influencing this growth. Amway

provides people with business opportunities across the globe. Direct selling is not about 'getting

rich quick' it is about creating rewards for effort and initiative. With low risk and low capital

investment, Amway provides people with the opportunity to achieve and to improve their lives.

As a leading player in the world of direct selling, Amway is helping to 'clean up' the industry and

provide a valuable and acceptable form of product distribution. In an impersonal fast-moving

world driven by technology, Amway provides the personal touch.

Because it focuses upon direct selling, Amway is different from more traditionaldistribution

channels.Its Independent Business Owners own their own business, with theflexibilityto deal

directly with their own clients and to build up personal relationships. These Independent

Business Owners also have the ability to deliver Amway's products to their customers' homes.

Independent Business Owners sell to people they know or meet. The personal contact and care

they provide is an important element in direct selling. They are also self-employed and can

introduce others to the business to form their own sales group of Independent Business Owners.
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Thechannel of distributiondescribes the stages of ownership that take place as a product moves

from a manufacturer to a consumer. The increasing use of the Internet by consumers has created

a real potential for developing different types of business models and for new approaches to

reaching users directly and quickly in their homes.

This report examines in detail the marketing strategy of the leading global direct marketing

major, Amway in India. In the initial stages of the report I have focused on Amways current

position in the Indian market. As the research progresses I have tried to analyse the companies

marketing objective for India and how they set out to achieve them.

This report also provides a brief introduction to the concept of multilevel marketing and tries to

make the reader understand the difference between multilevel marketing and the traditional

distribution setup in the FMCG sector, so as to give an idea as to how the system is being utilized

by companies like Amway.

MLM -a definition

Multilevel marketing allows sellers to build a business through their own sales efforts and by

inviting others to become sellers. Remuneration is based on a seller's personal sales AND on the

combined sales of those people they have sponsored, trained and motivated. The story of Amway

is intended to drive home the point of a company being alert enough to modify its globally

accepted practices to suit the local markets needs.

This report has been made keeping in mind the benefits which can be derived from my research.

Benefits to customers
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This report will be beneficial for consumers who prefer the marketing goods or services directly

to them: at their own convenience often in his/her home either on a one-to-one basis, or in the

context of a sales party. Through this the customers will get a better idea about the companys

product offerings and value the advantages of: convenience, personalised attention, and a good

selection of quality products available at their door steps.

Benefits to sellers

Many people have chosen direct selling because they want to build their own business, but do

not have: considerable funds required to buy a franchise or start a new company. Among the top

five reasons people sell direct because they like and believe in the product, like being their own

boss, and working their own hours, like the supplemental family income or making extra money

for themselves. It can be beneficial from the sellers point of view as it may give them the idea of

exactly how they can go about creating their own business and benefit from the Amways unique

business opportunity.

Benefits to companies

In this report I have deeply analysed the marketing strategy for Amway through personal

interviews by many IBOs and Amway customers who have helped in adding valuable data to this

project which can be useful for the company. The suggested recommendations can be considered

by the corporation for further expansion and increasing market share.


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OBJECTIVES

Primary Objective: The main objective is to carry out an in-depth study of Amways overall

marketing strategies in India. In order to achieve this primary objective, I have focused my

research in three main segments:

A. Where the Company stands at present.

B. Where do they plan to go with their objectives for the Indian Market.

C. How do they plan to achieve the set targets.

This report is appropriate for understanding the various concepts used in international marketing.

It is a complete information guide with relevant information taken from reliable sources,

questionnaire and interviews with people who have achieved success through this organisation.


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AMWAY VISION

Helping people live better lives. In all aspects of our products, businesses and social

responsibility, we strive to make a meaningful difference in the communities in which we

operate.

AMWAY MISSION

Through the partnering of Distributors, Employees, and the Founding Families, and the support

of quality products and service, we offer all people the opportunity to achieve their goals through

the Amway Sales and Marketing Plan.


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RESEARCH METHODOLOGY

The Methodology adopted was combination of:

a. Primary Data Collection:

Direct Interview with people who are associated with the Amway corporation in

India

Questionnaire filled by a selected group of people.

b. Secondary Data Collection:

c. The data has also been collected from:

Books

Magazines

Editorials


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Internet

Nottingham e-Library

Amway Business Planner

Amway Opportunity Brochure etc.

Sampling Plan: I have tried to gather data on the basis of both the interview and the

questionnaire.

Survey - 1had been conducted by asking the people to fill in the questionnaire and express their

views about the company.

Survey 2 had been conducted in order to getsome valuable data which has been collected

through direct, telephone and online interviews with people associated with Amway to get a

better insight of Amways operations in India.

Survey -1

Sample Design: Questionnaire method

Sample size: 30 respondents

Sample Unit: IBOs, Customers and others


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Segment Respondents

Women 14

Men 9

*Others 7

Total 30

*Others include elderly people and chi ldr en.

Survey -2

Sample DesignInterview method

Sample size7

Sample UnitIBOs and people working in Amway India Corp.

Segment Respondents

IBOs 6

Amway India employee 1

My project involves the study of Amways marketing strategies in India. I had planned my work

on the project along the following lines:


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1. Data Collection

2. Data Alaysis

3. Data Compilation

4. The preparation and presentation of the report.

My first step in data collection involved meeting my guide for having a general understanding of

what my product should be like and then some specific understanding of the company.

After deciding upon the broad frame work of my project, I proceeded on a search for secondary

sources of data. After analysing the data I prepared, I proceeded towards the primary sources in

which direct, phone and online interview were conducted so as to substantiate my research with

more facts.

The main reason to formulate this questionnaire was to find out as to why more and more people

in India are getting attracted towards Amway. Is it because of its unique business opportunity or

the convenience of a wide variety of fine quality products available the customers door step.

The initial demographic information will help in understanding of Amways popularity among a

certain group of customer and how they perceive of it.


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QUESTIONNAIRE

1. Are you an:

Independent Business Owner

Customer of Amway products

None of the above.

This question is necessary as it will be able to provide us with a variety of views as to how

Amway is being perceived differently by people based on their association with it.

2. What is your income level: (per Month)

Below Rs.10, 000

Rs 10,000- Rs 20,000

Rs 20,000- Rs 30,000

Rs 30,000- Rs 40,000

Rs 40,000- Rs 50,000

Rs 50,000 and above

This question will help in understanding which income categories of people are more likely to

join the Amway business because of it unique income opportunities.


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3. a. How do you feel are the Amway products priced: (Multiple Choice)

Too expensive

Expensive

Economical

Cheap

Poor

b. Do you think they are fairly priced as compared to other similar products available in the retail

stores? Yes / No

This will indicate peoples perception of Amways product prices and whether they feel that the

prices are in compliance with the product quality or not. It would also be able to give idea about

customers preferences for Amway products in comparison to other products easily available at

the retail outlets.

4. How would you describe the quality of the products:

Excellent


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Good

Average

Bad

Poor

This question is necessary for understanding whether the Amway products meet the customers

expectations for being the high quality products as being positioned by the company.

5. Are these products easily accessible?

Yes

No

Amway being a direct selling company totally relies on the door to door delivery of products.

Thus it is important to know if the customers ever faced any dissonance by Amway in its product

and service delivery.

6. What is it that attracts you more towards Amway? why?

Retailing

Sponsoring


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This is an important question through which we can understand the main reason why people

would like to associate themselves with Amway. Is it mostly because they like consuming a good

quality product or is it the unique business opportunity that Amway provides which is a source of

an extra income.

7.How did you learn about Amway?

Independent Business owner

Meetings/Events

Newspaper

Peers

Internet

Others, Please specify________

This will indicate the most popular channel through which Amway is reaching out to the

potential customers.


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DATA ANALYSIS INTERPRETATIONS

DATA ANALYSIS

One or two person in their individual capacities normally carry out an Amway customer.

Individual who are residents in India and are prerequisites for individuals to apply for an Amway

consumer. 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 foreigen passport holders

and are not of Indian origin require approval from the Reserve Bank of India to apply for

distributorship. Individual who are non- residents in India are required to register with the

Reserve Bank of India within 90 days of starting their Amway business in India.

Q: 1 Age-wise classification of distributers?

Table:1

Age Number of distributer

Less then 25 years 24

25-35 Years 32

35-45years 30

Above 45 years 14

Total 100


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INTERPRETATION.

From the above Table 1, it could be understood that out of 100 respondent consumer, 24

consumer belong to the age group of less than years, 32 consumer belong to the age group of

above 25 years but below 35 years.

Less then 25 years

25-35 Years

35-45years

Above 45 years


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INTERPRETATION:

From the above table 2, it is understood that out of 100 respondent consumers, 56 consumer are

men and consumer are women.

Q: 3 Literacy level of Amway consumer?

Literacy level of the consumers plays an important role in marketing the Amway products. The

following that shows the qualification of consumers.

Literacy level Number of consumer

Higher secondary 22

Diploma 34

Degree 30

Post graduate Degree 12Total 100


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INTERPRETATION

It is evident from table 3, that the educational qualification of 22Amway consumer

Is higher secondary 34 consumer are diploma holders, 30 consumer are degree holder and 14

consumer are postgraduate degree holder.

Q: 4Income wise classification of Amway Distributers.?

Income Number of consumer

Below Rs. 5,000 45

Rs.5,000-Rs10,000 43Above 12

Total 100

Higher secondary

Diploma

Degree

Post graduate Degree


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INTERPRETATION:

Table 4 reveals that 45 consumer earn below Rs.5000 per months; 42 consumer earn above Rs.

5000 but below Rs. 10,000 and 12 consumer earn above Rs.10,000.

Below Rs. 5,000

Rs.5,000-Rs10,000

Above


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Q: 5 Sources of information about Amway business.

In this survey, an attempt is made to find out the sources of information on which most of the

distributors rely for their business.

Sources Number of distributers

Friends 27

Relative 29

Neighbours 20

Other Amway consumer 24

Total 100

Friends

Relative

Neighbours

Other Amway consumer


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INTERPRETATION:

From the above table 5, it could be inferred that out of 100 respondent, 29 consumer got the

information from relative, 27 from their friends, 24 from other Amway consumer and only 20

consumer got the idea from neighbors.

Q: 6 Reason for starting Amway business?

The Amway consumer take up the Amway business for both, self-employment and

additional income.

Category Number of respondent

Self employment 67

Additional 33

Total 100


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INTERPRETATION:

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

Q: 7 Initial investment?

For any business, capital is the most essential thing. Without which, no activity can be

performed. It also one of the four important factors of production. Table 7 shows the amount of

capital invested at the initial stage of starting the business by the respondent consumer.

Investment Number of consumer

Rs. 4000-Rs. 6000 43

Rs. 6000-Rs. 8000 19

Rs. 8000-Rs. 10,000 25

Above Rs. 10,000 12

Total 1000

Self employment

Additional


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INTERPRETATION:

The above table reveals that 43 consumers had invested above Rs. 4000; 19 consumer had

invested above Rs. 6000 and below Rs.8000; 25 counsumer had invested above Rs. 8000 and

below Rs. 10,000 and 12 consumer had invested above Rs.10,000.

Q: 8 Training program?

The training programme conducted by Amway India enterprice assists the consumer in selling

the Amway products. The following Table shows the classification of consumer based on

training programme.

Rs. 4000-Rs. 6000

Rs. 6000-Rs. 8000

Rs. 8000-Rs. 10,000

Above Rs. 10,000


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Training programme Number of distributer

Attended 88

Not attented 12

Total 100

INTERPRETATION:

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.

Attended

Not attented


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Q: 9 Sponsoring of consumer is the main criterion for the income of Amway consumer.

The more the number of consumer sponsoring consumer earn greater amount of concession and

receive reward and recognition from Amway India enterprise.

Consumer Number of distribution

Sponsored 50

Non-sponsored 50

Total 100

Sponsored

Non-sponsored


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INTERPRETATION :

It is evident from the above Table that 50 consumer have sponsored many Amway consumer and

50 consumer have not sponsored any Amway consumer.

Q: 10The source of reaching customer?

The distributor reach the customer through various sources. These sources are classified into

five categories as shown table.

Sources Number of distributors

Through friends 28

Through relative 32

Through colleagues 24

Through neighbors 13

Through other sources 03

Total 100


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INTERPRETATION:

The above table shows that 28 distributor reached the consumer through their friends, 32

consumer reached the customer through their friends, 32 distributor reached the customers

through their relatives and 24 distributor reached the customer through colleagues. Through

neighbors 13 distributors reached their customer through other sources .

Q: 11Targeted customer?

Targeted customer Number of customer

High class 15

Middle class 78

Low class 04

Other(lower than middle class) 03

Total 100

Through friends

Through relative

Through colleagues

Through neighbors

Through other sources


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INTERPRETATION :

It is understood from the above table the above table that out of 100 customers, the targeted

customers of 15 customers are high-class people. The targeted customer of 78 are the middle-

class people. The targeted customers of 4 customer are low-class people and the targeted

customer of 3 customer are other lower than middle class people.

High class

Middle class

Low class

Other(lower than middle class)


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Q:12Prefrence of products among customer.

Products Number of distributor

Personal care 36

Home care 48Nutrition and wellness 15

Soft toys 01

Total 100

Personal care

Home care

Nutrition and wellness

Soft toys


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INTERPRETATION:

It is found that there is preference of Amway products among the consumer from the point view

of the Amway customers. The products are classified into four categories as in table.

Q: 13 Opinion about the price of Amway products?

Price Number of consumer

Price affect the sales 84

Price does not affect the sales 16

Total 100


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INTERPRETATION:

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: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.

Ways Number of customer

Through effective demonstration 22

Through comparison of Amway productswith other products

27

Price affect the sales

Price does not affect the sales


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Explanation about the superior quality ofthe products

27

Explanation about the use of smallquantity

24

Total 100

INTERPRETATION:

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 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.

Q: 14 Item Having High Volume of sales?

Products Number of consumer

Personal care 45

Home care 19

Through effective demonstration

Through comparison of Amwayproducts with other products

Explanation about the superiorquality of the products

Explanation about the use of smallquantity


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Nutrition and wellness 36

Soft toys 0

Total 100

INTERPRETATION:

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?

Factors Number of customer

High quality 28

Long term usage 45

No side effects 27

Total 100

Personal care

Home care

Nutrition and wellness

Soft toys


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INTERPRETATION:

from the above table it is clear that 28 customer are of the view that high quality influence their

customer to buy Amway products. 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

High quality

Long term usage

No side effects


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CONCLUSION

On the basis of the above report we can derive the foll owing conclusions:

Low start up cost

With an Amway Business Kit being the only start-up cost, Rs4400 virtually anyone can own an

Amway business. Compared to other business opportunities, initial costs for starting an Amway

business is intentionally low, priced affordably for nearly anyone with a desire to invest in their

future.

Low risk

Amways product-buy-back policy and no inventory requirement ensure a very low risk when

starting an Amway business. Its Satisfaction Guaranteehas always been a measure of

confidence in the quality and value of AMWAY products, one more way Amway supports the

business opportunity for distributors.

Performance based

Amway is a performance-based business that rewards people in direct proportion to their effort.

The bigger the financial goal, the more time and effort a distributor will need to put into his or

her business. With an Amway business, a distributor can work as much or little as he or she

likes. The rewards are based directly on the distributor's accomplishments.
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Direct selling is trend

Thirty-four million people worldwide are engaged in direct selling, which is a $82 billion

industry (Source: DSA 2002). As people become busier, they are looking for ways to save time

on routine tasks, such as shopping for everyday needs. Direct selling fills this need nicely,

because Amway distributors deliver products to their doors. In addition, Amway is one of the

oldest and largest direct selling companies in the world.

Flexibility

Goals and rewards are different for each distributor. You have the flexibility of working part

time while keeping a full-time job or building an Amway business into a full-time career. You

choose the time you invest in building your Amway business.

Product support

The Amway business opportunity is supported by a diverse line of hundreds of quality AMWAY

products and, in many markets, thousands of other brand-name products and services. Amway

has established a reputation for innovation in developing top quality products and packaging.

Corporate support

More than 12,000 people worldwide are employed in Amway manufacturing, administration, and

distribution facilities totaling 10 million square feet (929,000 square meters). Amway

manufactures products in the United States, China and Korea and maintains product warehousing

facilities around the globe.

Equality of opportunity


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Anyone starting an Amway business gets in at the same level. Each new distributor has the same

opportunity to surpass the most successful distributor, and the business opportunity is continually

improved. The Amway opportunity has been imitated often, but the level of support Amway

provides its distributors is difficult to duplicate.

LIMITATIONS OF THE PROJECT

The company or the IBOs were hesitant to give time and good information tostudents,

so information required for the primary research which is a basic need of this project was not

easily available in required quality and quantity.

I have conducted this type of an elaborate and analytical project for the first time so

information might not be utilized adequately.

Time constraint.


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BIBLIOGRAPHY

Books and Secondary data

Amway Company Planner

Amway Opportunity brochures

Internet

www.amwayindia.com

www.amway.com

www.skepdic.com

www.msn.com

Newspaper and Magazine

The Hindu, Saturday May 10, 2003

The Financial Express, February 1, 2002

The Hindu, February 16, 2001
http://www.amwayindia.com/http://www.amwayindia.com/http://www.amway.com/http://www.amway.com/http://www.skepdic.com/http://www.skepdic.com/http://www.msn.com/http://www.msn.com/http://www.msn.com/http://www.skepdic.com/http://www.amway.com/http://www.amwayindia.com/

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