AMWAY Report
AMWAY Report
Amway is a direct selling company and manufacturer that uses multi-level marketing to sell a variety of products,
primarily in the health, beauty and home care markets. Amway was founded in 1959 by Jay Van
Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported
sales growth of 15%, reaching US$8.2 billion for the year ending December 31, 2008.[1] Its product lines include
home care products, personal care products, jewellery, electronics, Nutrilite dietary supplements, water purifiers,
air purifiers, insurance and cosmetics. In 2004, Health & Beauty products accounted for nearly 60% of worldwide
sales. Amway conducts business through a number of affiliated companies in more than ninety countries and
territories around the world. It is ranked by Forbes as one of the largest private companies in the United
States and by Deloitte as one of the largest retailers in the world.
It entered in India and established in Sept, 1998 with 5 products. In the first year the turnover was 100 Crores,
and the current turnover is over 1100 Crores.
Total number of SKU’s(stock keeping units) are 350 in spread in 5 different categories.
1. Health care
2. Personal Care
3. Home Care
4. Skin care
5. Agriculture
Home Care: Under the home care products category the following product line is maintained.
1.LOC
2. SA8
3. Dish Drop
4. Zoom
5. Buff up
6. Car Wash
7. Pursue
Personal Care: Under the personal care the following products are under the umbrella.
1. G&H products
2. Glister
3. Persona
4. Dynamite
Health Care:
Brand: NUTRILITE
1. Protein power
2. Daily
3. Omega 3
4. Bio C
5. Cal Mag
6. Iron-Folic
7. Kids
1. Artistry
Multi-level Marketing (MLM) - also called network marketing (NM) - is a business model which utilizes
a combination of direct marketing and franchising. Typically, individuals become associated with a
parent company in an independent contractor relationship. Sellers are compensated based on their
sales of a product or service, as well as the sales of those they bring into the business
International expansion
Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to Japan
in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and Scandinavia in
1998, to Russia in 2005, and to Vietnam in 2008.
In 2008 two thirds of Amway's 58 markets reported sales increases, including strong growth in the
China, Russia and India markets. Amway India sales grew 40% to 1128 crore (US$230million).
Brands
Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the
hair care product Satinique (1965) and Artistry (1968). Today Amway manufactures over 450
products, with manufacturing facilities in Ada, Michigan, China, and India, as well as Nutrilite organic
farms in California, Washington State, Mexico, and Brazil. In addition Amway affiliates market
products from hundreds of other manufacturers offering everything from books (e.g. Barnes & Noble,
North America) to wine (World of Wine, Europe).
Household cleaners:
Amway is best known in North America for its original cleaning products, LOC, SA8 clothes washing
products and Dish Drops dish cleaning products. In the January 2007 issue of Consumer
Reports, SA8 with Bioquest was rated as the best performing laundry detergent, scoring 99 out of a
possible 100. Consumer Reports did however criticise SA8's pricing, which was disputed by
Amway. In 2008, Amway's cleaning products were named Favourite of Experts by an independent
consumer survey in Ukraine.
The majority of Amway's sales today come from the Health & Beauty sector and in North America
the Amway Global/Quixtar website is ranked the #1 Health & Beauty website by Internet Retailer. In
South Korea Amway is ranked one of the top two companies in toiletries and cosmetics. Amway's
health & beauty brands include Artistry, Time Defiance, Satinique, Tolsom, Body Series,
Glister, Moiskin (South America), Nutrilite, Nutriway (Scandinavia and Australia/New
Zealand),eSpring, Atmosphere and iCook as well as XL and XS Energy drinks.
Artistry:
Main article: Artistry (cosmetics)
Amway's Artistry products include skin care, cosmetics, and anti-aging creams and
serums. Euromonitor International, an independent researcher and publisher of market reports,
business reference books and online information databases, ranks Artistry as one of the world's top 5
best selling brands in the prestige brand category, alongside Clinique, Estee Lauder,Lancome,
and Shiseido. Artistry is the only direct sales brand classifed in the "prestige" category.
Nutrilite:
Main article: Nutrilite
Amway's Largest selling brand is the Nutrilite US$3billion globally Nutrilite products incorporate
organically grown whole-plant concentrates. Euromonitor has for several years ranked Nutrilite the
world's best selling nutritional brand in tablet or capsule form. In 2001, five Nutrilite products were the
first dietary supplements to be certified by NSF International. Surveys by independent
group Consumerlab.com since 2002 have rated Nutrilite as having the highest customer satisfaction
rating (96% in 2006) in the direct selling/MLM brand category. In 2006, 2007, 2008, and 2009 in the
nutrient and health food category, Nutrilite won "Platinum" and "Gold" awards in Malaysia, China,
Taiwan, Thailand, and Asia overall in the Reader's Digest "Trusted Brands of Asia" survey. In 2008
Nutrilite scientists, in partnership with Alticor subsidiary Interleukin Genetics won the 12th John M.
Kinney Award for Nutrition and Metabolism for their research into the interaction between nutrition and
genetics.
eSpring:
Amway's eSpring water filter, introduced in 2000, was the first home water treatment system to
incorporate a carbon block filter and Ultraviolet disinfection unit, becoming the first home system to
achieve certification for ANSI/NSF Standards 42, 53 and 55. The unit was also the first commercial
product to include sister company Fulton Innovations eCoupled wireless power induction technology. Fulton
Innovation introduced the technology in other consumer electronic products at the 2007 International Consumer
Electronics Show. Companies licensing this technology include General Motors, Motorola and Visteon. In 2006
eSpring was named Product of the Year by the Poland-based non-profit World Foundation of Health, Heart and
Mind. eSpring has won numerous Gold and Platinum awards in the Reader's Digest Most Trusted Brand.
Atmosphere:
In 2008 Amway's HEPA air filtration system became the first air cleaner certified Asthma and Allergy Friendly by
Business model
Amway combines direct selling with a multi-level marketing strategy. IBOs may both market the products directly
to potential customers and also recruit (sponsor) and train other people who become IBOs themselves and in
turn have the same opportunity. Each IBO may earn income both from the retail mark-up on any products they
sell personally, plus a performance bonus based on the sales volume they and their down line have generated.
CHANGE MANAGEMENT: When the Amway entered into India they soon realised that the
business is not usual here and they will have to go under some changes for business to be fit for
locals. So they brought in the following changes especially for India.
1. Small Size packaging.
2. Low range products launched, like Attitude and dynamite.
3. Special product training sessions which guide how to use the product. (Since Amway has
concentrated prducts and per use cost will be less if used properly )
4. Sale once in year.(Diwali)
5. TV Commercial and marketing activities.
6. CSR activities :
Amway opportunity Foundation
National projects for the blind
Red Cross help
Since the competition from the competitors is increasing always following SWOT Analysis would be
beneficial for their whole business plan.
SWOT ANALYSIS
STRENGTH Weakness
World Class Quality Products. People Awareness about the products.
100% cash based business (NO debts) High MRP of products.
Education system – Britt World Wide, winners Unsatisfied Distributors
international, Network 21
Money back Guarantee gives a huge
competitive advantage.
CSR activities
SWOT
Value Added
Services
STATIONS OF EXPERIENCE:
1.) UP‐LINE INTERFACE
POSITIVES NEGATIVES
• HELP, GUIDANCE •MIS‐GUIDANCE
• MENTORSHIP
•OVER‐PROMISES
2.) PRODUCT KNOWLEDGE & ASSISTANCE
POSITIVES NEGATIVES
•COMPLETE PRODUCT •PRODUCT TRAINING LACKS REACH
KNOWLEDGE,USAGE •ADC’S FOCUSSED
•LAST MILE AVAILIBILITY
3.) BUSINESS SUPPORT
POSITIVES NEGATIVES
• BWW SUPPORT MENTORING
• STRUCTURED EASY FINANCING
•EXPENSES INCURRED BY IBO’S
IBO/ABO/AIE — Independent Business Owner/Amway Business Owner/Amway Independent
Entrepreneur is a business partner of Amway who is authorized to market and distribute products
and services available from Amway. Different names are used in different markets.
Business-logic features:
• Manage client’s debts, complaints, comments and documents.
• Role-based frame-work.
• Report system based on generation Microsoft Excel files.
Onyx® Software Corp. (NASDAQ: ONXS), worldwide leader in successful customer relationship
management (CRM), today announced Amway of Australia successfully implemented the latest web
version of Onyx Employee Portal (OEP), version 4.5.
Amway of Australia uses the Onyx application to consolidate and centralize information about its
Independent Business Owners (IBOs) and to automate marketing campaigns and processes both for
its Australian & New Zealand business
Amway is focused on building, and rewarding, lifelong relationships with our Independent Business
Owners
With Onyx, we will continue to lead in the Direct Selling industry by providing highly personalized
service to improve overall success."
"The implementation of Onyx at Amway of Australia is great example of how the flexibility of our CRM
platform allows customers to easily create a solution that is tailored to meet their specific needs,"said
Brent Frei, Chief Executive Officer, Onyx Software.