AMWAY’S DIRECT SELLING IN INDIA

Presented By:

Gauransh Gandhi

MBA(Pharma)1st

Semester

PM/2014/402

NIPER, Hyderabad

2Contents

• What is direct selling?

• Entry and Growth

• Manufacturing

• Product Quality and Money Back Guarantee

• Products offered

• Nutrition and Wellness Products Do Well in Recent Times

• Launches Products in the Lower Priced Range as well

• Selling of Amway Products

• Amway uses Multi-Level-Marketing Model

• Supporting Enterprise and Self-employment

• Convenient to Operate

• Amway had to Act Like an FMCG Company

• Brand Experience Centres

• Conclusion

3What is Direct Selling?

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.

4Entry and Growth • Entered India in 1995

• Sales were around Rs 100 crore in 1998, Rs 250 crore in 2000 and Rs 500 crore in 2001.

• Reported a turnover of Rs 800 crore in 2007, Rs 1790 crore in 2010 and Rs 2130 crore in 2011

• Has over 42% share of the Direct Selling Market

• Country’s number ‘1’ Direct Selling FMCG company

5Manufacturing

Almost 85% of the products sold by Amway India are manufactured within the country through third-party manufacturing partners based at Hyderabad, Baddi, Daman, Chennai, Mumbai and recently two more have been added.

6Product Quality and Money Back Guarantee

All Amway products are backed by customer satisfaction cum 100% money back guarantee. The products match Amway’s global quality standards.

7Products Offered

Home Care Products Personal Care Products

8Nutrition Products

Cosmetics

9Nutrition and Wellness Products do well in Recent Times

• In India, in the past, cosmetics were stealing the show in direct selling followed by home products

• In recent times, nutrition and wellness products like protein powder and health supplements, have been emerging as a major segment for direct selling

• Contributes more than 33% of the total turnover of direct selling industry

• Has formed over 50% of the total business for Amway

• Nutrilite protein powder, launched in 2000, is now a 250-crore brand

• Nutrilite tablets are a 200-crore brand

• Nutrilite is the world’s number ‘1’ selling Vitamins and Dietary supplements brand

10Launched Products in the Lower Priced Range as Well

Labelled Great Value Products

11

Coconut oil Hair oil Toothbrushes

Shaving Products

12Selling of Amway Products

• Sold through a network of Amway Business Owners(ABOs) across the country

• Amway recruited more than 34,000 sales persons-cum-distributors in the very first year of its operations

• Now there are more than 5,50,000 distributors across the country

• Any adult can enroll as an Amway distributor without any payment

13Amway uses Multi-level Marketing Model

14Supporting Enterprise and Self-employment• Amway has provided income-generating

opportunities to over 5,50,000 active independent Amway Business Owners

• Generates employment for housewives

• Seventy percent of its distributors are women who prefer to work part time

15Convenient to Operate

Model is designed to enable the 5Es of convenient operation:

• Ease of Ordering

• Ease of Delivery

• Ease of Payment

• Ease of Return

• Ease of Information

16Amway Had to Act Like an FMCG Company

• Amway started doing category advertising to educate customers about the brand.

• Amway introduced smaller pack size including single use sachets for some of its products to generate trial among customers get them interested.

17Brand Experience Centres

• Amway opened ‘Brand Experience Centres’

• Situated within shopping malls and high streets

• Manned by consultants who provide information on the products on display

• Customers can try the products at the experience centres

• Staff at these centres will tell the customers about the ABOs in their area to buy the products

18Conclusion

Amway intelligently uses the marketing mix business tool and target the various segments of the market. Therefore it manufactures and sells various types of products to attract the various types of customers. It sells lower priced range products as well to attract lower class people as well. Now it becomes the India’s largest direct selling FMCG company.

19Reference

• Ramaswamy & Namakumari, “Marketing Management”, Mc Graw Hill(India), Private Limited, New Delhi, Fifth Edition,2013, Page no.528-532

• http://www.investopedia.com/terms/m/multi-level-marketing.asp

• http://www.vente-directevdi.fr/fr/wpcontent/uploads/company_logos/2014/09/amway-logo.jpg

• http://www.amway.my/EN/AmwayLocalizedImages/Targeting%20Images/LCL_ATHOME_OVERVIEW_HERO_IMG_4.jpg

• http://directsellingnews.com/images/site/featured/Nutrilite_Pho_Product_2014.jpg

• http://img2.findthebest.com/sites/default/files/8/media/images/Amway_14913.jpg

• http://onlinemarketingwithvince.com/wp-content/uploads/2013/10/doterra-scam.jpg

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