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    Amway Case Study

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    Kartik Gulani
    The document provides information about Amway, a multilevel marketing company, through a case study presented by students. It discusses Amway's founders, business model of direct selling and multilevel marketing, global operations, products offered, and partners in India. It also addresses questions about the suitability of the MLM model in India, reasons for Amway's below-expectations performance initially, and measures taken by Amway to make the MLM model a success.

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    Amway Case Study

    Uploaded by

    Kartik Gulani
    450 views20 pages
    The document provides information about Amway, a multilevel marketing company, through a case study presented by students. It discusses Amway's founders, business model of direct selling and multilevel marketing, global operations, products offered, and partners in India. It also addresses questions about the suitability of the MLM model in India, reasons for Amway's below-expectations performance initially, and measures taken by Amway to make the MLM model a success.

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    The document provides information about Amway, a multilevel marketing company, through a case study presented by students. It discusses Amway's founders, business model of direct selling and multilevel marketing, global operations, products offered, and partners in India. It also addresses questions about the suitability of the MLM model in India, reasons for Amway's below-expectations performance initially, and measures taken by Amway to make the MLM model a success.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    450 views20 pages

    Amway Case Study

    Uploaded by

    Kartik Gulani
    The document provides information about Amway, a multilevel marketing company, through a case study presented by students. It discusses Amway's founders, business model of direct selling and multilevel marketing, global operations, products offered, and partners in India. It also addresses questions about the suitability of the MLM model in India, reasons for Amway's below-expectations performance initially, and measures taken by Amway to make the MLM model a success.

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    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..

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