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Marketing Analysi

In: Business and Management

Submitted By kajal123
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Amway is the largest multinational direct selling company . It is started in 1979 by Jay van andel and Rich devos. Amway operates 97 countries like India, China , Malaysia and etc . They have 150 products and in four categories. They used multilevel marketing strategy to deal in beauty , health care and home care product . The business was creating by huge chain of 3 million sales people globally . It is vast product portfolio that contains more than 450 products with 89 million members worldwide. In 1995 Amway was established in India. Their main office in Delhi and over period of 15 years .it was able to open 152 offices along with 64 warehouses with 500 employees . Its sales turnover showed increment of 7% in year 2012 leading to Rs. 2288 crore making it ahead of its competitors. Amway products which are 15 % cheaper than competitors and which are sell by door to door and advertising all over India.

Mission

• Provide best business opportunities

• To deliver best quality products like home care, personal care, cosmetics and wellness in semi urban and urban area.

Vision

• Helping people to achive their goal by offerning better brand and opportunities for the future.

PRODUCTS

Amway has 140 quality products in four categories which are environment friendly and makes strong foundation for its success.

• Personal Care

• Home Care

• Nutrition and wellness

• Cosmetics

Sales and Marketing Plan:

The basic idea for amway business is to reduce the risk by low investment business where other people can be sponsored to retail various products make a business network which is extensive to increase the profit line. In order to meet its strategy Amway decided following objectives:

• A new business opportunity will be provided to increase both profits and production.

• To differentiate its product as per convenience of customer to give value for product.

• To keep innovation going on so strong brand image can be nmade.

A New Strategy of Amway:

• Entering treaties with government organization

• Expand its chain of distribution by direct sales .

• Motivate sales person by paying them on basis of direct selling done by them.

• localization of employees, production and research and development

• Keep publishing about events so credibility and customer faith is maintained.

SWOT analysis of Amway:

STRENGTH:

• Amway has direct selling model where people don’t require any predefined qualification and they can work from home too and the procedure is very easy.

• it provide ample of knowledge based training to all through various communication means.

• Independent business owners are functional and responsible for various activities.

• various events are organised in timely manner to strengthen the bond.

• Customers are treated in friendly manner and provided full support round the clock giving 100 percent refund policy to gain customer faith

• Best quality standard products

WEAKNESS:

• No central management as power divided to IBO’s

• The amyway product cost are high and which affect direct selling product .

• Based on channel pattern so people started focus on creating network despite of product selling.

OPPURTUNITIES:

• Indian population is more so profit margin can be more. Setup a manufacturing plant in all countries leads to better platform for company.

• Overall expenses are low as strong brand reputation gaining marketing through word of mouth.

• Can develop new product and start selling in low quantity samples to attract market share.

THREATS:

• Full authority to take the decision.

• Any changes in tax policies by government will affect it badly.

• Strong market competition by leaders like AVON, MARY KAY.

Amway Global provides support like:

• Customer care: Providing support on everything from new business to product info

• Business management: Amway helps in ordering products online renewing a business and check customers through its global website.

• Order management: Amways deals with after ordering services like processing delivering shipping etc.

• Training: Success of amway organize various online and training programs where amway business partners are trained regarding selling process and product details.

• Marketing: Amways best feature is personalized website for its business partners along with various promotions and advertisement at events.

Conclusion:

Amway products were too expensive for a country like India so it can not capture its target audience as expected and profits were decreased due to complex channel. Amway realized that like most direct marketing global promise of the profitable business opportunity for its distributors.The courier companies negative response to accept cash and the time taken to deliver products were the three majorthing amyway faced .

By using competitive strategy they won’t be able to overcome the problems. They focusing on 4 P’s of marketing and work on its foundation to achieve strategic stability. As Amway purely is consumer oriented so distribution channel should be strong and supportive which can handle speedy delivery of products to gain customer satisfaction. Also Amway should focus on its advertising so its customer portfolio can be increased. The pricing is a major issue that Amway should try to reduce which was done by reducing the distribution channel process also the quantity of Amway products. Amway constantly upgrade its product line by using vast knowledge of networking market providing new products in timely manner .Being a direct marketing company and having no retail store outlet the major sales depend on its IBO partners who put there effort for door to door selling and creation of big network. AS huge commission have to be apid to its IBO the product cost of Amway product goes up like best quality Persona soap cost to Rs. 30 which is more than normal soap also Artistry which is for premium class has very high prices as compare to Avon products. Although Amway focuses on “we ar Listening” strategy but customer satisfaction is prime concern. Amway although conducted exclusive research using companies like Path finders and ORG-MARG but could not understand the Indian low pricing needs. Amway prices were 20%

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