A Study of Amway India Pvt Ltd-

7/21/2019 A Study of Amway India Pvt Ltd-www.itworkss.com

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CHAPTER -1

INTRODUCTION OF THE PROJECT

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INTRODUCTION

I am studying in MBA I sem in Department of Management Science, Sub-Campus Osmanabad I have doing a pro ect on Am!ay India "vt #td$the %he pro ectstudy a&so provides an opportunity to deve&op communication s'i&&, ana&ytica& s'i&& anda&so e(pose to the organi)ations cu&ture and the actua& !or'ing of the organi)ation$%hestudy he&ps management to improve financia& performance of the company in future$ Ihave studded over a&& environment and organi)ation$ I have decided the pro ect because I!as !or'ing in the Am!ay at Aurangabad branch$ I have ana&y)ed the companymanagement system because they provide good services in organi)ation for emp&oyees$ It

provides the hea&th and nutrition product to support the human being for this reason Ihave a&& information to co&&ect the data for Am!ay business$

I studied the human resource department ho! to communicate the peop&e and as the &i'eof a&& department is very good !or'$ %he pro ect given an overvie! of the re*uirement of the chosen as !e&& as the genera& app&ication of the management and theories$the ana&ysisof a&& pro ect by the performance is very good in future it is the process of customer satisfaction and mar'eting target achieving the goa&$

%hat deve&opment of everyone e&se is ignored or &ess important$ #eadership SuccessionManagement "rocess is a part of the corporation+s comprehensive %a&ent Deve&opmentstrategy that p&aces emphasis on both the deve&opment of peop&e$

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Objectives

%o understand the Structure of organi)ation$

%o understand empo!erment of the rura& peop&e and citi)ens$

nderstand socia&&y and hea&th re&evant products at an affordab&e price to

the communities$

%o understand the sustainabi&ity in business$

nderstanding business ventures !hich are financia&&y sustainab&e$

%o faci&itate bottom-of the- pyramid mar'eting of organi)ation$

nderstanding the mar'eting and financia&s inc&uding sa&es and Services$

%o understanding the after sa&es product in mar'et for the customer

satisfaction$

%he business is bui&t on the simp&e integrity of he&ping peop&e &ead better

&ives$

%o be ab&e to app&y theoretica& 'no!&edge in practica& manner in rea& &ife

business$

%o study various aspects of financia& management of the organi)ation$

%o app&y various concept and research methodo&ogy for pro ect ana&ysis$

%o find the importance of Advertisement and promotiona& Activity by the

company$

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Scope

As it is gro!ing as a Am!ay India #td !ith successfu& gro!th it sho! it better

image at state or nationa& or internationa& &eve&$ "rovides conducive environment in

!hich to &ive, !or', achieve and gro!$ %he Am!ay business recogni)es supports and

e(pands freedom, !hich is both persona& and economic$

It gives the freedom to operate as independent business peop&e and conduct a fu&&-time or

part time business$ It is a force that a&&o!s us to envision dreams, estab&ish goa&s, and

achieve great things$ By offering hope, !e open !indo!s of possibi&ity for others,

irrespective of socia& status, profession or educationa& bac'ground$

%heir ambitious gro!th strategies invo&ve participation of every emp&oyee$ %hey

encourage their emp&oyees for the generation and adoption of ne! different ideas to

improve business efficiency, productivity and customer e(perience$

Increase the 'no!&edge about an organi)ation$

I can get motivation of mar'et$

I got practica& 'no!&edge$

%o &earn actua& mar'et of corporate !or&d$

%o the customer achieve the goa& and better business$

Am!ay India #td is attempting to achieve top *ua&ity of its products and a&& services provided that !i&& satisfy the more-and-more demanding needs and re*uirements of customers, and to achieve top *ua&ity in a&& interna& processes$ %he .roup+s aim in thefie&d of socia& responsibi&ity is maintaining &ong-term ba&ance bet!een economic,environmenta& and socia& areas$

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Limitatio s

I am ab&e to give on&y /hours in a day$I have ta'en overvie! information of Organi)ation$I am unab&e to get appropriate financia& data from company$A&so unab&e to get technica& production procedure$%ime factor is a&so ma or &imitation during my pro ect$

%he data used for the pro ect is most&y secondary data$ Its something hard to

assure /001 authenticity of secondary data$

%he period of the pro ect !as not sufficient to study a&& the factors in deep$

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CHAPTER -!

Resea"c# $et#o%o&o'(

Resea"c# $et#o%o&o'()

It is a scientific and systematic search of discovery$ It is an academic activity andas the term shou&d be used in technica& sense$ 2esearch can be define as 3A scientificsearch for pertinent information on a specific topic4 2esearch is the systematic method of co&&ection, recording facts in the forms of numerica& data re&evant to the formu&ating at a

prob&em and arriving at a certain conc&usion over the prob&em bases on the co&&ected data$2esearch can be defined as &ogica& and systematic means or techni*ue to discover ne!facts or verify facts, ana&y)e their se*uence, interre&ationship and casua& e(p&anations!hich !ere derived !ith an appropriate theoretica& frame of reference deve&op ne!

scientific too&s, concept theories !hich !ou&d faci&itate re&iab&e and va&id study on human behavior

A pre-appraisa& phase5 %his phase I inc&uded des' research, creation of a conceptua&frame!or', initia& face-to-face dia&ogues !ith Am!ay India #td staff to revie! andre!or' the conceptua& frame!or', pre&iminary design of instruments, a pi&ot study in thefie&d invo&ving testing the instruments, and a fina&i)ation of the methodo&ogy to beemp&oyed in the study$ %his methodo&ogy inc&uded the fina& set of instruments 6both*ua&itative and *uantitative7, the se&ection of the samp&e to be studied, and the initiativesto be inc&uded in the study, name&y the scope of the study$

An imp&ementation phase5 %his phase II of inc&uded the actua& !or' of 8 days, fo&&o!ed by the initia& !rite up of findings$ %his !as based &arge&y on *ua&itative in-depthintervie!s !ith staff, focus group discussions and profi&ing of participants and intervie!s!ith e(terna& sta'eho&ders of the supp&iers and business partners$

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A fo&&o! up phase5 %he fina& phase inc&uded a fo&&o! up visit !here the initia& drafts !ererevie!ed as !e&& as the *ua&ity of the *uantitative surveys !as oint&y assessed by S2"#$Conse*uent&y, a second set of data co&&ection too' p&ace to fi&& in the gaps and obtain thedata needed$

Resea"c# %esi' met#o%o&o'(

In this report the primary data has co&&ected through the intervie! of the managers 1emp&oyee of the company$ Secondary data has co&&ected through the boo's, artic&es,annua& reports of the company

Primary Data

The frst hand data is collected through interview. The interview

is conducted with operation manager kailash motiwale. As'ing the peop&e &iving around the organi)ation$

Onsite observation$

Contact 9ie&d product sea&er$

Discussion !ith customer about product and company$

Secondary data

:isit to !ebsite 2ead the company boo' and giving pro ect report data$

By pub&ished source$

Data set * samp&es

%he data used for this study ac*uired from ban' annua& reports, internet 1 !ebsites of theCompany$ %he various reference boo's are referred for this study to 'no! ho! to va&uethe Company 1 !hat are the various methods to va&ue the "roduct$ ;00


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=hi&e co&&ecting the data it is in a sing&e samp&e format$ A sing&e samp&e can giveovervie! of the a&& the samp&es$

Data A a&(sis)

Severa& statistica& too&s are used for data ana&ysis, in order to ma'e the ana&ysis suitab&efor effective decision ma'ing$ %he statistica& ana&ysis of the data is done by simp&e ontab&es, charts 1 diagrams etc +

Resea"c# $et#o%o&o'( ,se% o" t#e p"oject

T(pes o Resea"c# $et#o%s)

Descriptive vs$ Ana&ytica&5 App&ied vs$ 9undamenta&

>uantitative vs$ >ua&itative5

Conceptua& vs$ ?mpirica&

I have used Descriptive type of research for pro ect$ In this type of research the co&&ecteddata can be either static dynamic or historica& in nature$ A descriptive study is static innature if it invo&ves a sing&e measurement of the phenomena in *uestion$

T(pes o %ata

%here are t!o types of primary data or secondary data "rimary data5 Secondary data5

So,"ce o %ata

I #ave co&&ect i o"matio as o&&o.s)

Internet

Boo'

Observation

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>uestionnaire

Schedu&es

CHAPTER -/

PROFILE OF THE CO$PAN0

Jay Van Andel and Richard DeVos

(Chairman&President)Mich$, @u&y / , ;0// Direct se&&ing giant Am!ay reached / bi&&ion in month&y

sa&es during @une brea'ing the bi&&ion do&&ar mar' in a sing&e month for the first time in

the company s ;-year history$ Overa&&, sa&es are up across the Am!ay footprint, !hich

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spans more than E0 countries and territories$ Sa&es increased in nine of the company s top

/0 mar'ets in @une$ Am!ay operations in China, Forea, India, %hai&and, %ai!an, and

'raine recorded doub&e-digit gro!th during that same time period$ Successfu& product

promotions, increase in brand a!areness through g&oba& mar'eting campaigns and pricing

ad ustments are the primary drivers attributed to robust sa&es resu&ts$

G=e are e(periencing an intense period of gro!th, and !ith f&uctuations that norma&&y

occur in our sa&es cyc&e, !e e(pect that momentum to continue,G said Bi&& "ayne,

e(ecutive vice president and chief of staff at Am!ay$ G=e re e(cited because year-over-

year sa&es increases indicate that our &ong-term .ro!th through Innovation strategy is

c&ear&y paying off$ =e re being smarter about ho! !e !or' and !here !e focus our

efforts$ %rends indicate !e cou&d have another record-brea'ing year$GChina, thecompany+s &argest mar'et, had record sa&es in @une$ In addition, a strong promotion of

!ater treatment systems in Forea and nutrition product promotions in 2ussia

significant&y increased sa&es$ Horth America, Am!ay s home mar'et, is gro!ing and !e&&

positioned to continue that trend, driven by numerous, innovative distributor and

consumer programs$ Am!ay is one of the !or&d s &argest direct se&&ing businesses$ A&ticor Inc$,

parent company of Am!ay, reported g&oba& sa&es of


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Am.a( Hea% O ice A%%"ess

Am!ay India ?nterprises "vt$ #td$


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fami&ies are more than happy to be partnered !ith Am!ay, !ho as part of its CorporateSocia& 2esponsibi&ity Strategy !or's !ith HIC?9, the nited Hations Chi&dren s fund$

IBOs se&& Am!ay s o!n branded products$ %hey are Am!ay s &in's !ith consumers andthe communities in !hich they operate$ %his case study sho!s ho! Am!ay is a businessthat does more than simp&y provide customers !ith good *ua&ity products$ In addition it

p&ays a 'ey ro&e in the communities in !hich it operates$

Businesses need to trade ethica&&y, i$e$ in a princip&ed !ay$ Am!ay has put ethica& behaviour at the top of its agenda$ ?thica& behaviour is part of Corporate Socia&2esponsibi&ity 6CS27$ %his refers to business organisation s !ider responsibi&ities tosociety$

Am!ay s ethica& be&iefs are i&&ustrated through the support of g&oba& causes$ It defines ag&oba& cause as'a social issue affecting many people around the world engaged in a

struggle or plight that warrants a charitable response' $ %his case study e(p&ains ho!Am!ay s One by One Campaign for Chi&dren i&&ustrates the businesses commitment tochi&dren in need across the g&obe$

HISTOR0

=hat does the !ord Am!ay meanL Am!ay is an abbreviation for GAmerican=ayG and !as coined in /< < by company founders, @ay :an Ande& and 2ichard De:os$Short, uni*ue and easy to remember, Am!ay has been registered as a corporate name andtrademar' ever since$

In the fo&&o!ing decades, Am!ay Corporation successfu&&y estab&ished itse&f as a &eadingmu&ti&eve& mar'eting business, bui&t on strong va&ues and founding princip&es thatcontinue to sustain our company today$ %he business is bui&t on the simp&e integrity of he&ping peop&e &ead better &ives$

%oday, Am!ay is a mu&tibi&&ion-do&&ar internationa& business representing freedom andopportunity to mi&&ions of peop&e in more than EE countries and territories around the!or&d$ Am!ay generates S


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2isio * $issio

2isio

"mwa#$s vision is 'To help people live better lives' .

$issio

%o provide the best business opportunity$ %o de&iver e(ceptiona& *ua&ity products to urbanand semi urban homes in the areas of nutrition and !e&&ness, cosmetics, persona& care,

home care, home tech and insurance$

Values

Am!ay has estab&ished some simp&e shared va&ues that unite the entire company, and a&&of the Business O!ners that are associated !ith Am!ay$ =e be&ieve that these va&uesguide our actions and he&p us to achieve everything !e are capab&e of !ithoutcompromise or harm$

I te'"it(

%hey !i&& upho&d the highest persona& and professiona& integrity !hich demonstrateshonest&y, &oya&ty, respect and high ethica& standards in a&& our responsibi&ities, ob&igations

and other activities$ =e are committed to behave at a&& times in accordance !ith the

ethica& practices of the organi)ation$

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T",st

Bui&ding re&iabi&ity and dependabi&ity for se&f disp&aying commitment honestyconfidentia&ity and consistency in a&& actions$

T"a spa"e c(

=e !i&& promote a cu&ture of openness and mutua& trust by Interacting ob ective&y and

!ithout under&ying persona& interests$

Se"vice O"ie tatio

=e are committed to serve our customers to fu&fi&& their needs by focusing efforts on

discovering and thereby meeting stated and unstated re*uirements$

Pa"t e"s#ip

=e !i&& co&&aborate across boundaries and find common ground by sharing ideas and

resources, !ith a !ide range of sta'eho&ders$ =e !i&& deve&op net!or's and bui&d &ong

term a&&iances !ith interna& and e(terna& customers$

Reco' itio

=e are committed to honor, encourage and support individua&s and teams !ho contribute,

through their behavior and actions, to the success of the organi)ation$

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OR3ANI4ATION STRUCTURE

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SOCIAL RESPONSI5ILITIES

Natio a& P"oject o" t#e 2is,a&&( C#a&&e 'e%

Am!ay Opportunity 9oundation 6AO97 is a registered non-profit organi)ationthat &oo's after Am!ay India+s Corporate Socia& 2esponsibi&ity$ Am!ay staff anddistributors are vo&unteers and participate in AO9 activities$ nder the Hationa& "ro ectfor the :isua&&y Cha&&enged, AO9 has5 ?nsured that around E ,000 visua&&y cha&&engedschoo&-going chi&dren have had access to Brai&&e te(tboo's$ Bet!een /


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conditioning of the room, as !e&& as recurring costs such as computer instructor,e&ectricity etc$

Current&y AO9 has successfu&&y instituted / such centres5

Fo&'ata AO9-2FMBBA Computer Centre, at Harendrapur - =ith 2ama'rishnaMission B&ind Boy+s Academy$Fo&'ata AO9-HAB Centre for ?(ce&&ence, at 8 , 2afi Ahmed Fid!ai 2oad,Fo&'ata N000/8 - =ith Hationa& Association for the B&ind 6HAB7$

@aipur AO9-2HFS Computer Centre, at .angori Ba)aar, @aipur =ith2a asthan Hetraheen Fa&yan Sangh$

Chandigarh AO9-HAB Centre for ?(ce&&ence, at Asha Firan, Sec 8 D,Chandigarh - =ith Hationa& Association for the B&ind$

Ahmedabad - AO9- AF". Centre for ?(ce&&ence, at Hear Manav Mandir,Memnagar, Ahmedabad- E000; =ith Andh Fanya "ra'ash .ruh$

Mumbai AO9-HAB Centre for ?(ce&&ence, //, Fhan Abdu& .affar Fhan 2oad,=or&i Seaface, Mumbai 00 0 0 =ith Hationa& Association for the B&ind$

"atna AO9-Anter yoti Computer Centre, Fumhrar, "atna - E000;0 - =ithAnter yoti Hetraheen Ba&i'a :idya&aya$

yderabad AO9-D99B Centre for ?(ce&&ence, Mayur Marg, Begumpet,yderabad - 000/8 - =ith Devnar 9oundation for the B&ind$

"une - AO9"une B&ind Schoo& Computer Centre, Horth Main 2oad, Foregaon"ar', "une - //00/ =ith "oona Schoo& 1 ome 9or the B&ind %rust$

%rivandrum AO9-HAB Computer Centre, at Man adivi&a 2oad, "&amood,%rivandrum - 8< 00 - =ith Hationa& Association for the B&ind$

Madurai - AO9-IAB Centre for ?(ce&&ence, Sundara anpatti, Arumbanour "ost -=ith Indian Association for the B&ind$

.urgaon AO9-AICB Centre for ?(ce&&ence, :i&&age Behrampur, .urgaon - =ithA&& India Confederation of the B&ind$

2aipur - AO9HAB Computer Center for ?(ce&&ence, eerapur =ith Hationa&Association for the B&ind$

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.u!ahati AO9-.BS Computer Centre, Basistha, .u!ahati NE/0;< - =ith

.u!ahati B&ind Schoo&$

#udhiana AO9 HAB Centre for ?(ce&&ence, "anchayat Bhavan, 2oom Ho$;,Pi&a "arishad, Civi& #ines, #udhiana$

It is our de&ight that every year more than 000 students are no! getting *ua&ity computer education at our centers$

AO9 has a&so he&ped AICB 6De&hi7 set up a vocationa& training centre at 2ohini, !hereintensive training is imparted to post-graduate students over a /;-month period$ ere,students train on computer and internet usage, ?ng&ish &anguage 1 "ersona&ityDeve&opment, %echnica& !riting, as !e&& as the s'i&& of operating a computer system!hi&e on the phone !ith customers$

One by One Campaign for Children

One By One is Am!ay+s .&oba& Campaign for Chi&dren$ In each of the E0 countriesand territories that Am!ay is present it ta'es up and supports these Chi&dren of ope$

In India, this !or' is carried out under the banner of Am!ay Opportunity 9oundation6AO97 a registered non profit organi)ation$ A&& Am!ay emp&oyees and distributors arevo&unteers of AO9$

Amway Opportunity Foundation (AOF )

Am!ay Opportunity 9oundation 6AO97 a registered non-profit organisation !hich &oo'safter Am!ay India+s Corporate Socia& 2esponsibi&ity 6CS27$ Am!ay distributors are a&sovo&unteers of AO9 and they participate in AO9 activities$ AO9 current&y has t!o pro ectsunder its ambit5 Hationa& "ro ect for the B&ind and Hationa& "ro ect for Chi&dren 6"ro ectSunrise7$ .&oba&&y, Am!ay+s CS2 campaign is 'no!n as the One By One Campaign for Chi&dren$ A Corporate Socia& 2esponsibi&ity Initiative of India+s #eading Direct Se&&ing9MC. Company$9ormer "resident, Dr Abdu& Fa&am, has recent&y been *uoted sayingthat instead of addressing 6them as7 Qstreet chi&dren+, it !ou&d be better to refer to them asQchi&dren of hope+$ If !e stretch this definition a bit, that is !hat !e are a&& about reaching out to a&& Chi&dren of ope in the best manner at our disposa&5

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PRODUCTSHome Ca"eAm!ay+s ome Care Brands provide comp&ete c&eaning systems that fit !ith everyone+sneeds$ %heir versati&e, effective product systems offer the features and benefits consumers!ant$ Ho matter !hat your &ifesty&e, Am!ay+s ome Care products ma'e &ight !or' of your c&eaning chores$

La, %"( Ca"e

In the year /<


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ARTISTR0

Artistry is one of the !or&d+s top five &argest-se&&ing "remium S'incare brands$ Source?uro monitor Internationa& #imited Beauty 1 "ersona& Care ;0//, premium cosmetics 1

premium s'incare category and sub categoryR g&oba& ;0/0 va&ue 2S"$

D0NA$ITE

Dynamite s range of ma&e grooming products, formu&ated internationa&&y is designed tode&iver the u&timate grooming e(perience$

3LISTER .&ister %oothpaste is a revo&utionary Mu&ti-Action %oothpaste !ith Sy&odent that offers

seven benefits$

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PERSONA"ersona "remium in / Soap is a comp&ete soap for the entire fami&y promises refreshing

confidence$

SATINI6UE

Satini*ue Advanced 2ange !ith uni*ue Ceramide Infusion System uses nature s o!n

rene!ing techno&ogy to re uvenate, strengthen and protect your hair$

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SA7

SAE .e&)yme is India s on&y -in-/ &aundry detergent !hich pretreats c&eans and softens$

3*H

.1 2ange enriched !ith the goodness of .&ycerine and oney, deep&y nourishes and

hydrates the s'in for a hea&thy g&o!$

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LOC

#OC igh Suds is a mu&tipurpose househo&d &i*uid c&eaner$

DISH DROPS

Dish Drops is a concentrated hand dish!ashing &i*uid !ith a po!erfu& G%riadic

Detergency SystemG$

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3i t Cata&o',e Co"e&i e

.ift Cata&ogue Core&ine ;0/;

3i t Cata&o',e No Co"e&i eIn order to ensure that ma(imum number of ABOs is ab&e to buy the Cata&ogue

products, !e have decided to 3&imit4 the *uantity of each Hon Core&ine Item that an ABO

can order

N,t"itio a % 8e&& ess

Hutri&ite is the !or&d+s &eading brand of vitamin, minera&, and dietary supp&ements, gro!n

harvested and processed on its o!n certified organic farms$

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EN2IRON$ENT

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POWERF !!" #REE$ FOR A SAFER C!EA$

"o!ered by Bio>uest 9ormu&atm techno&ogy, the ne! AM=AJ OM? range of products contain active ingredients that are derived from natura& sourceshese ingredients provide po!erfu& c&eaning performance !hi&e remaining gent&e enough to use aroundyour fami&y and the environment$AM=AJ ome offers a comp&ete &ine of environmenta&&y sensitive products to better manage househo&d c&eaning tas's$Specia&&y formu&ated, versati&e products ma'e your !ho&e house shine$Customisab&e formu&as to contro& c&eaning strength$

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Design for the Environment (DFE)

Reco' i9e% o" Sa e" C#emist"(

Am!ay ome products carry the 3Design for the ?nvironment4 &abe& %he $S$ ?"A+sDesign for the ?nvironment programmed promotes high-performing products that are atthe same time safer for peop&e and the environment$ =hen the &ogo appears on a product,it means ?"A+s team of scientists has screened every ingredient in the product for

potentia& hea&th and environmenta& effects$ the product manufacturer has invested heavi&yin 21D and formu&ations to ensure that their ingredients and finished products &ine up onthe green end of the hea&th and environment spectrum$

%he product is safer for peop&e and the p&anet$ ?(c&uding saE pre!ash, saE fabricsoftener, saE &i*uid, dish drops scrub buds, &$o$c$tm meta& c&eaner, and green meado!s$

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DISASTER RELIEF EN2IRON$ENT

=hen natura& disasters stri'e around the!or&d, AM=AJ is prepared to bringimmediate as !e&& as &ong term assistance tothose in need$ 2ecent&y, AM=AJ &auncheda ne! programmer to he&p chi&dren in aiti$

Our po&icies range from reducing theimpact of our operations on theenvironment to training and motivating

emp&oyees in ta'ing persona& accountabi&ityfor a safer, greener !or'p&ace$

8OR:PLACE 3RANTS

=e are a company that be&ieves every person can ma'e a difference$ %o ma'e our be&iefs a rea&ity, !e empo!er our emp&oyees to reach goa&s, fu&fi&& ambitionsand contribute to the communities !here !eoperate$ As a &eading g&oba& hea&th and

beauty company, AM=AJ ensures thatemp&oyees have access to the resources theyneed to maintain a hea&thy &ifesty&e$

Our grants are focused on ma'ing a rea&

and &asting difference in the &ives of

chi&dren through the AM=AJ One by One

Campaign for Chi&dren$ #earn more about

our guide&ines, process and ho! to submit a

re*uest$

CERTIFICATIONS

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Champions of the Community Partners

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ACHIE2E$ENT

A.a"%s a % Reco' itio

Aa %a', one of India+s &eading ne!s channe&s and part of the #iving Media 6India

%oday7 .roup presented Aa %a' CA2? A!ard, to Am!ay India in ;0/;, for itsinitiatives ta'en in the fie&d of ?ducation$ CMO Asia presented Asia+s Best CS2 "ractices A!ard, to Am!ay India in ;0/;, for its initiatives ta'en in the fie&d of ?ducation in ;0/;$ "resented the Mi&&enium Outstanding Service A!ard ;000, by the A&&India Confederation for the B&ind 6AICB7, in recognition for !or' carried out for thevisua&&y cha&&enged$ %he Indian 2ed Cross Society, Orissa a!arded AO9 a memento 1certificate for conducting a mega-B&ood Donation camp of E/8 units on th May, ;00 $

%he Surat 2a'tdaan Fendra fe&icitated Am!ay India at their annua& function on th Oct,;00 , for the &argest number of donors at a B&ood Donation Camp 6BDC7 he&d by any

financia& and commercia& institution and industry$ %he Mayor of Surat - Sneh&ataChouhan - presented a trophy and a certificate of appreciation$ Am!ay a&so received the

a ee Su&aiman Omar Memoria& ?ver 2o&&ing Shie&d, by the Madurai Medica& Co&&ege$Am!ay !as the OH#J corporate entity to conduct a BDC on such a sca&e - rest of thecamps are he&d by educationa& institutions$ "resented an a!ard by the =or&d B&ind nion6=B 7, for ster&ing contribution to improve and e&evate the *ua&ity of &ife of visua&&yimpaired chi&dren , at a function in De&hi on Dec ;nd ;00 $ %he a!ard inc&uded a citationand a &arge-si)ed statue of Saras!ati, the .oddess of Fno!&edge, !as presented by the #t.overnor of De&hi, Shri :i ai Fapoor$ =B is an ape( body for the visua&&y impairedthat en oys consu&tative status !ith the nited Hations$ As a corporate &eader in

promoting environmenta& a!areness and education, Am!ay received the prestigiousnited Hations ?nvironment "rogramme Achievement A!ard in /


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THE EARL0 0EARS

Am!ay *uic'&y outgre! its origina& faci&ities in the basements of 2ich De:os s and @ay:an Ande& s homes$ In its first fu&& year of business, Am!ay s sa&es !ere more than ha&f ami&&ion do&&ars$

THE DECADE OF 3RO8TH

As vo!ed by @ay :an Ande& the night of the /


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CHAPTER -Ove"vie.%he process of Succession Management at Am!ay can be divided into three broad

phases$ It begins !ith an e(amination of a division+s strategies !ith a correspondinge(amination of the imp&ications for future &eadership s'i&&s and attributes that !i&& beneeded to &ead the organi)ation$ Our .&oba& #eadership Competencies mode& as !e&& asthe Am!ay #eadership "assages mode& is typica&&y used as the basis for this part of the

process$ %his is then fo&&o!ed by an open discussion of high potentia& candidates amongstthe division+s senior &eadership team$

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FINANCIAL $ANA3E$ENT

Page4!


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!""A#$ OF %E$ F 'A'C A 'FO#"A O'*+,+-,.+/. %$D%V%D A! PER%OD C !A'%VE PER%OD

C RRE$' "EAR

AR'ER

PRECED%$# "EARCORRESPO$D%$#

AR'ER

C RRE$' "EAR'O DA'E

PRECED%$# "EARCORRESPO$D%$#PER%OD

3!%!6%2!12

3!%!6%2!11 3!%!6%2!12 3!%!6%2!11

*+++ *+++ *+++ *+++

,Re-en.e 188&684 16 &162 367& 35 341& 25

/Pro0t1(loss)2e3ore ta4

34&16! 25&645 63&17 53&!13

5Pro0t1(loss)3or the 6eriod

25&32! 1 &!14 46&881 3 &287

7Pro0t1(loss)attri2.ta2leto ordinarye8.ityholders o3 the6arent

25&286 18& 6 46&878 3 &28!

9:asicearnings1(loss) 6ershare(S.2.nit)

15.4! 11.57 28.52 23. !

;Pro6osed1Declareddi-idend 6ershare(S.2.nit)

1!.!! .!! 2!.!! 18.!!

AS A' E$D OF C RRE$'AS A' PRECED%$#

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AR'ER F%$A$C%A! "EAR E$D


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$a , act,"i '

Direct se&&ing 9MC. company Am!ay India is &oo'ing to set up its o!nmanufacturing faci&ity in %ami& Hadu$ %he proposed pro ect !ou&d be the company+s first

production faci&ity in the country$3It is on the cards$ =e are mu&&ing over estab&ishing afaci&ity either in .u arat or %ami& Hadu$ %he &i'e&ihood of the faci&ity coming up in %ami&

Hadu seems greater$ %he estimated out&ay is 2s 00 crore,++ Mr Sundeep Sengupta, ead-Corporate Communications and Socia& 2esponsibi&ity, Am!ay India, said$=ith theestab&ishment of the faci&ity, %ami& Hadu may become a hub for us in future, he added$

e, ho!ever, dec&ined to share more information on the proposed pro ect, by simp&ystating 3it is sti&& ear&y++$Despite not o!ning a production faci&ity ti&& date, Am!ay hassuccessfu&&y managed to source


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3%he occasion a&so mar'ed the &aunch of specia&ised products from Am!ay+s hea&th and beauty segment U Hutri&ite ea&thy Ageing range and Attitude =hitening cream,++ Mr Sengupta said$Coimbatore, according to Mr Siva Fumar, Area Manager, Am!ay India,has been among the top three mar'ets for the company in %ami& Hadu$%o Feep up !ithhigh *ua&ity standard of our products5%here are 8 specia& &aboratories and over N00scientists responsib&e for research 1 deve&opment and testing of the products$

home care and home techno&ogy products as !e&& as other services$Am!ay has obtainedover


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$AR:ETIN3 $ANA3E$ENT

Am!ay+s .&ister toothpaste un'no!n to peop&e outside the !or&d of direct se&&ers and

their c&ients or customers is set to cross 2s // crore in sa&es by the end of this ca&endar

year 6Am!ay fo&&o!s a @anuary to December accounting year7$ Another brand, ca&&ed

Artistry, !hich is a high-end cosmetics range imported from the S head*uarters of the

company, is e(pected to cross 2s //0 crore this year$ Am!ay+s hea&th supp&ement, Hutri&ite

Dai&y, is a&ready a 2s ;00-crore brand, !hi&e po!der is &i'e&y to touch near&y 2s 00 crore

in sa&es by the end of ;0/;$

And, there are more products that the direct mar'eting ma or, !hich c&osed the ;0//

ca&endar year !ith sa&es of 2s ;,/ 0 crore, is counting on as future prospects$ %his

inc&udes &i*uid &aundry detergent brand SAE .e&)yme and Hutri&ite Ca& Mag D, both of

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!hich, says =i&&iam "ic'ney, managing director and chief e(ecutive officer, Am!ay

India, have the potentia& of touching the 2s /00-crore-mar' in the near future$ .iven that

the company, through its band of over 00,000 distributors, has been se&&ing its products

in India for / years no!, e(perts say it is no mean feat that Am!ay is the &eading p&ayer

among 9MC. direct se&&ers at &east in the country$ So, ho! has the &argest direct

mar'eting company in the 9MC. space crac'ed the code at a time !hen competition in

the category as a !ho&e has on&y intensified$

Both domestic and internationa& 9MC. companies have in the &ast fe! years pushed

distribution as !e&& as penetration, increased the number of products in their portfo&io,

scanned the Indian mar'etp&ace for ne! trends that they can capita&i)e on and increased

their advertising budgets - a&& in the hope of increasing their presence in the !or&d+s

second-&argest consumption mar'et$ Most are seeing success too, !ith 9MC. companies

c&oc'ing an average / per cent-p&us top &ine gro!th per annum$According to sector

ana&ysts, the rough&y 2s /N0,000-crore domestic 9MC. industry gre! at a compound

annua& gro!th rate of about // per cent bet!een ;000 and ;0/0$ But, in the current

decade, this gro!th has actua&&y increased /; to /N per cent, according to a Boo) 1

Company study$ By ;0;0, the study says, the mar'et si)e is estimated to more than

doub&e to bet!een 2s 00,000 crore and 2s 8;0,000 crore$ Contributors to this gro!th

!i&& be increasing consumption &ed by rise in incomes, changing &ifesty&es and

demographics$ =ith near&y 80 per cent of India+s popu&ation be&o! the age of 0, most

companies rea&i)e that their mar'et &ies here$ ?(perts say that the consumption boom has

not escaped direct se&&ers, too, !ho have the advantage of persona&i)ed se&&ing that

conventiona& 9MC. companies don+t$ And, if the product is good, the possibi&ity that

there !i&& be repeat purchases !i&& be higher, they say$

"ic'ney admits that much of the ra! materia&s going into its / / products in India, across

categories such as persona& care, home care, nutrition 1 !e&&ness and beauty is imported$

%his has a&&o!ed it to 'eep product *ua&ity consistent !ith !hat e(ists internationa&&y in

its portfo&io$ At the same time, ho!ever, &ac' of &oca& sourcing has meant that Am!ay

products - outside of its great va&ue range - are a&& steep&y priced$ 9or instance, a /00 gm

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tube of .&ister toothpaste is priced at over 2s /00$ 2egu&ar toothpaste brands avai&ab&e on

retai& store she&ves, on the other hand, are priced at ha&f the price at 2s - 0 for the

same si)e$ %he direct se&&er+s nutrition 1 !e&&ness range, !hich gives it per cent of its

revenues in India, is priced any!here bet!een 2s 8 0 and 2s ,;00$ "ersona& care and

home give Am!ay per cent of its revenues7 are priced bet!een 2s /00 and 2s N00,

!hi&e beauty products 6!hich contribute /0 per cent to top &ine7 are priced bet!een 2s

/00 and 2s ;, 00$=ith such high-priced products then, ho! has Am!ay ensured repeat

purchasesL "ersons in the 'no! say that it has to do !ith its re&ent&ess pursuit of *ua&ity$

3=hether it is the sa&es pitch that Am!ay se&&ers ma'e or *ua&ity contro& measures

imp&emented at its contract manufacturing units in India, Am!ay has emphasised the

aspect of *ua&ity a&& the time,4 says "ratichee Fapoor, associate vice-president,

%echnopa' Advisors, !ho has studied the direct mar'eting industry c&ose&y in India$%hecompany has a&so invested heavi&y in advertising over the &ast fe! years bui&ding !hat

Fapoor ca&&s the 3Am!ay brand4$ In the process, consumers have come to identify the

company !ith good, sto&id products$But does the mu&ti-&eve&-mar'eting mode& coming

under i

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Deve&opi ' a st"ate'(

A strategy is an organi)ationa& p&an$ Imp&ementinga strategy invo&ves putting that p&an into action$ %he strategy enab&es an organisation toturn its va&ues into action$ Strategies are designed for the !ho&e of an organisation$Strategies are principa&&y created by senior managers in an organisation$ o!ever,effective strategies invo&ve discussion and communication !ith a range of interested

parties$ %he vie!s of IBOs are thus very important in creating Am!ay s strategies$

?ach one of these sta'eho&ders has particu&ar concerns$

Am!ay ta'es corporate socia& responsibi&ity serious&y through its partnership !ithHIC?9$ %he t!o 'ey partners in this re&ationship are HIC?9 and Am!ay$ Am!ay andHIC?9 !or' in and for communities across the g&obe$ %hey are therefore natura&

partners

'EA : %!D%$# AR=E'%$#

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Am!ay s strategies for corporate socia& responsibi&ityare cascaded through the organisation$Am!ay s g&oba& strategy invo&ves creating

responsib&e p&ans that ma'e a difference in everyone s &ives$ o!ever, the strategy is

f&e(ib&e$ In other !ords in deciding on a cause that IBOs cou&d partner it !as essentia& to

research their vie!s$A 'ey e&ement of this !as research into a cause that !ou&d motivate

them - the research sho!ed that the so&ution !as a cause that he&ped chi&dren$ %here !as

a c&ear fit bet!een Am!ay s aimsto he&p chi&dren and HIC?9 s Immunisation "&us

programmer for chi&dren$9rom the outset, Am!ay set out some c&ear ob ectives for its

strategy$ %hese !ere to5 bui&d &oya&ty and pride among IBOs and emp&oyees$ ?nhance

Am!ay s reputation as a caring organisationma'e a rea& difference to human &ives$ ?very

year /$N mi&&ion chi&dren !or&d!ide die from avoidab&e infectious diseases$ %his situation

is especia&&y grave for the !or&d s poorest countries and poses a threat to the &ives and

!e&&-being of chi&dren and fami&ies$ Many chi&dren cou&d sti&& be a&ive if they had been

vaccinated$

9or under V/; a chi&d can be vaccinated againstthese diseases and has a fighting chance to reach adu&thood$ Contributing to HIC?9 s!or&d chi&d immunisation programmer therefore is a fitting focus for the activities of Am!ay F and its IBOs$ %o date, Am!ay 6 F7 #td, its IBOs and emp&oyees have raisedover VE0,000 for HIC?9$ Over V/0,000 !as raised for the %sunami re&ief efforts a&one$%he F initiative is part of a pan-?uropean fundraising campaign for chi&dren$ Itrecogni)es the importance of bui&ding good !or'ing re&ationships !ith HIC?9 in eachmar'et in order to ro&&-out fundraising programmes to Am!ay s IBOs and their customers$

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In ;00/ Am!ay ?urope s partnership !ithHIC?9 became part of the Cause Strategy$ In ;00 Am!ay F s contribution to the

partnership !as deepened through the deve&opment of a corporate partnership$ %hisCorporate "artnership is a c&oser &onger term re&ationship !hich benefits both parties$=or'ing together the t!o parties raise money for HIC?9$ At the same time this he&ps to

bui&d Am!ay s reputation$

$eeti ' sta>e#o&%e" ee%s

A sta'eho&der is a group or individua& !ho has aninterest in the decisions made by a business$ Am!ay s CS2 strategy has been deve&oped!ith the interests of sta'eho&ders in mind$

%$FOR A'%O$ 'EC>$O!O#"

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.reg #ang &eads the strategy, p&anning, and

operationa& aspects of the systems and

app&ications supporting the Am!ay Horth

American business$ #ang has progressed in

mu&tip&e &eadership ro&es during his more than

/E years !ith the company$ "rior to his move to

Am!ay, he !as the senior manager of mu&tip&e

teams driving deve&opment of systems supporting 2e&ationship Management, Business

Inte&&igence, =or&d!ide Sa&es %rac'ing, .&oba& #ine of Sponsorship, and =or&d!ide

Bonus !ithin the .&oba& Sa&es, Mar'eting, and 9orecasting areas of the business$=e

fina&&y got a photo of the mu&ti-mi&&ion do&&ar ne! Am!ay Center, a pro ect of the

Or&ando Magic and City of Or&ando !hose /,/00 digita& screens are managed by arrisCorporation, an internationa& communications and information techno&ogy company$ %he

Am!ay Center is being touted as the most techno&ogica&&y advanced arena faci&ity in

Horth America$

Opened Oct$ / and the home of the Or&ando eat bas'etba&& team, the venue a&so hostsconcerts and fami&y entertainment$ It a&so has the ta&&est, high-definition video board in

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an HBA venue, the centre-hung video scoreboard by Da'tronics inc&udes more than

A Study of Amway India Pvt Ltd-

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