Bus 221 PROFESSIONAL SELLING
ASSIGNMENT #1
NAME: Karanveer Singh Purba
STUDENT ID: 300138860
PHONE: 08699319354
E-MAIL: [email protected]
SECTION: 02, Friday Morning
SUBMITTED TO: Dr. SHYAM VYAS.
DUE DATE: Sept 22, 2016
DATE SUBMITTED: Sept 22, 2016
Major competitors of this organization-
Herbal life and Forever Living etc.
Market size
It has a huge market share of 37% of the whole direct selling market
What is the ONE MAJOR bottleneck that restrains the companys growth?
(Is it Technology, is it Production, is it Finance, Is it Market/Consumer
Resistance)?
Mr. Singh describes that its not consumer resistance but a misconception which is sowed in
peoples mind. Consumers perceive Amway to be a chain system of distributors who try to push
sales, but actually it is a network of, by and for the consumers.
What is the role of sales, and its importance in achieving firms marketing
success? (verbatim)
Sales are the soul of Amway because its the bottom line. If there will be no sales, no customer
is coming in then at what will an owner direct his marketing efforts. He said Basically, at first
you need to define a purpose, chalk out a plan at second, develop a sales strategy at third and
finally a strategy for growth. Sales are the only way to bring in money so it holds prime
importance. At Amway no middle man are involved and there is direct selling and distributors
only.
What is the importance of / how important is sales training, market
research, understanding consumer behaviour and competition, target
marketing & segmentation for effective sales - with reference to the products /
services and markets in which his/her company operates? (please dwell on
what the decision maker has to say about these concepts referred above) How
does the decision-maker rate the overall effectivity of his companys sales
organization?
Giving a full-fledge training is very important, especially at Amway because training provides a
profound understanding of the companys product to a salesperson. He said in a mocking way
that without market research, we dont even bring a veggie in our house so, selling involves a
lengthy decision making process. Prior to selling a product a salesperson must know that is it the
product which a customer is looking for or does it suit his/her requirements. Dividing the
markets into segments gives a clear understanding of the target market.
We at Amway have a good orientation and have an in-depth understanding of what are
customers expect of us and what must we deliver. Said Mr. Singh
How many sales people do you have in your company? How many
territories is the market divided into? What reporting structure for sales
professionals in your organization? How much money (budget) does your
company spend in training sales professionals
Millions of salespeople are working in Amway all over the world, 15000 of which are working
under him.
The market of Amway is divided across 108 territories
No reporting, because distributors have separate identity so they need not report back.
But yes, we our distributors are always called upon to gain precious insights or suggestions from
them because the distributors are public face of Amway.
Company spends around 4 to 5 lacs per year in in-house training its employees at India. But,
globally external sales professional visits take place.
Does your company use in-house training or brings in external training
professionals to train sales professionals? How many distributors /
wholesalers and dealers / retailers does your company have in the market as
channel members through whom it distributes company products? Is there a
separate sales department or are both sales and marketing depts. clubbed
as one dept.? Does selling always involve making presentations (oral or
written) to decision-makers / customers? How important is relationship
selling and creating a continuing relationship with customers?
There are 15-16 lacs active distributors of Amway.
Both sales and marketing depts. are clubbed together.
Mr. Singh says Yes, selling always involves making presentations because we need to showcase
our products to customer and communicate to him the features of our products visually as well as
written.
Most important, if this fruitful result has been achieved then you can say that yes your immense
hard-work has paid off, but this wont mean that now you can sit and relax. In order to maintain
a continuing relation you must put in continuous efforts because tastes of consumers keep on
varying.
What target market and consumer segments is the company addressing
directing the marketing effort at? Are there really different segments in the
total market? Kindly elaborate. What kinds of presentations do salespeople in
his firm make to decision-makers?
It addresses every segment because it has a variety of products but particularly on women of age
group 30-55 years.
Presentations are timid, invasive and appealing. Most product of Amway are economical and
environment friendly.
Is any one of the four Ps more important from among - Product, Price,
Place or Promotion decisions?
All the 4Ps are equally important says Mr. Singh.
What is / are the mechanism(s) vide which the company furthers its
understanding of the market / consumer / channel members / competition?
(Be specific). Will the company do better this year than previous year or not?
Main reason why? Is it because of sales effort?
This is the only company in the world whose growth rate is 25-30 % on an average and
surprisingly during recession we grew by 20%. The company will certainly do better than the
previous year because it growth rate is quite high. We are trying to invite potential seller from all
over the world to generate a pool of talent. This company offers the freedom to give franchisees.
Discuss at least one decision the firm took to improve sales levels in the last 12
months.
Amway has recently planned to focus on growing sales level in India and giving more
employment opportunities, because of Indias huge population and the fact that 65% people are
below 35 and all are ambitious.
500 crores were recently given to start their own factory at Madhurai, Tamil Nadu.
