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  1. 1. Chetana’s Hazarimal SomaniCollege Of Com. &Eco. & Smt.KusumtaiChaudhari College Of Arts Topic:Amway. Pvt.Ltd.co. Group. No: Presentedto: Prof: kedar. 2012
  2. 2. 1 Groupmembers:  Sheral.Fernandes……….107  Priti. Vishwakarm………..149  Sandesh. Poojari………….130  Neha. Shrivastav………….139  Yogesh.Raut………………133  Sonal. Singh……………………141
  3. 3. 2 index:  What is Amway?  Introduction.  History of Amway.  Center of Amway.  Global markets of Amway.  Products of Amway in India.  Hierarchy of Amway in India.  Budget study of Amway in India.  Objective of Amway.  Goal setting of Amway.  Vision and values of Amway.  Case study.
  4. 4. 3 Amway private.Ltd.Company Type : Private. Industry : Direct Selling. Founded : 1959. Founders : Rich Devos. Jay Van Andel. Head quarters : Ada, Michigan, United States. Area Served : Worldwide Key people : Steve Van Andel (Chairman) Doug DeVos (President)
  5. 5. 4 Products : Amway Home, glister, G&H, Nutrilite, Artistry, espring, Atmosphere. Revenue : US$ 10.9 Billion (2011) Employees : 20000 Parent : Alticor Website : Amway.com
  6. 6. 5  What is Amway: What does the word Amway mean? Amway is an abbreviation for "American Way “and was coined in 1959 by company founders, Jay Van Andel and Richard Devos. Short, unique and easy to remember, Amway has been registered as a corporate name and trademark ever since. In the following decades, Amway Corporation successfully established itself as a leading multilevel marketing business, built on strong values and founding principles that continue to sustain our company today. The business is built on the simple integrity of helping people lead better lives. Today, Amway is a multibillion-dollar international business representing freedom and opportunity to millions of people in more than 88 countries and territories around the world. Amway offer over 3 million Business Owners the inspiration to grow those businesses, and to work hard to provide new and better ways for them to achieve their life goals.
  7. 7. 6  Introduction: Amway is a direct selling company that uses multilevel 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 9.5%, reaching US$9.2 billion for the year ending December 31, 2010. 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 and beauty products accounted for nearly 60% of worldwide sales. Amway conducts business through a number of affiliated companies in more than a hundred countries and territories around the world.Amway was ranked No.114 among the largest global retailers by Deloitte in
  8. 8. 7 2006,and No.32 among the largest private companies in the U.S. by Forbes in 2010. Amway is a business that operates on the basis of pyramid selling. It is described as a multi-level marketing scheme in which there are different levels of sellers. The company originated in Michigan, and sales of its products hit six billion US dollars (USD) in 2005. Products sold by Amway agents range from jewellery to cosmetics and health care. Amway also has product lines including dietary supplements and home care goods. Amway's sellers are called Independent Business Owners (IBO), and they are a link in a long chain that makes up the company.Amway works by assigning a Points Value (PV) to each of its products. The PV amount of each product determines how much commission the seller makes from the sale. The PV of a given good is the same regardless of the country it is sold in. The PV can be thought of as a common Amway currency used around the world.
  9. 9. 8  History:  Founding: Rich Devos and Jay Van Andel initially founded the Ja-Ri Corporation, a multi-level marketing distributorship for Nutrilite products, in 1949. Ja-Ri was incorporated in 1959, and changed its name to "Amway" in 1963. As of 2007, Amway operates in more than 80 countries around the world. In 1999, the founders of the Amway Corporation launched a sister Internet-based Company named Quixtar. The Alticor Corporation owns Amway and Quixtar, plus several other concerns. Quixtar replaced the North American business of Amway in 2001 after the majority of the distributors moved to Quixtar, with Amway operating in the rest of the world.
  10. 10. 9  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.Based on rapid international expansion, strong family leadership, and good financial condition, Amway remained a strong force in the 1990s. When Van Andel and devos, whose children had begun in the business in the mid-1970s, retired from the company in the early 1990s, all eight of the Van Andel and devos children were in leadership positions. Dick devos was named president in 1992, and Steve Van Andel was appointed company chairman. Jay Van Andel planned to remain active with the company as senior chairman and member of the policy board.
  11. 11. 10  Quixtar: In 1999 the founders of the Amway Corporation established a new holding company, named Alticor, and launched three new companies: a sister (and separate) Internet- focused company named Quixtar, Access Business Group, and Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and development and Access Business Group handled manufacturing and logistics for Amway, Quixtar, and third party clients. In September 1999, the company established a new company named Quixtar to sell consumer products on the Internet. With Quixtar, Amway used the same marketing concept as it did in its traditional business: distributors purchased products at volume discounts and earned commissions on the sales and bonuses from the sales of new recruits. Apart from Quixtar's business being conducted electronically, the
  12. 12. 11 greatest difference between Amway and its new company was the conspicuous absence of the Amway name.
  13. 13. 12  Center of Amway: Amway Center is one of the most technologically advanced venues in the world. Inside the building, a unique center hung installation, manufactured by Daktronics of Brookings, South Dakota, is the tallest in any NBA venue. It maximizes creative programming options by using high resolution, 6mm-pixel technology on each of the 18 displays, including two digital ring displays and four tapered corners. Additional displays include approximately 2,100 feet (640 m) of digital ribbon boards, the largest of which is a 360- degree, 1,100 feet (340 m) display surrounding the entire seating bowl. The brand new Amway Center sports and entertainment complex in Orlando, Florida, U.S., home to the National Basketball Association’s (NBA) Orlando Magic, opened with a ceremonial ribbon-cutting ceremony on Friday, October 1. Amway is the official naming rights sponsor of the
  14. 14. 13 Amway Center. The Amway Center is a high- visibility, world-class facility that proudly displays the Amway name on the building’s exterior, the roof, and throughout the complex, including on the tallest, HD (high definition) scoreboard in an NBA venue, measuring 42 feet by 41 feet by 41 feet. In addition, the new Nutrilite Magic Fan Experience Center inside offers visitors an on-site introduction to best-selling brand.
  15. 15. 14  Global markets: The company operates in over 80 countries and territories, organized into regional markets: the Americas, Europe, greater China, Japan and Korea, and SE Asia/Australia. In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases, including strong growth in the China, Russia and India markets.  Amway in Australia:  Amway in China:  Amway in India:  Amway in UK:
  16. 16. 15  Amway in Australia: Amway Australia began in 1971, and was the first affiliate to open outside North America (the US and Canada). From 1993 to 1999 Amway Australia was listed on the Hong Kong, Australian and New York stock exchanges as part of Amway Asia Pacific Limited. Amway Australia opened in April 1971 and was Amway's first market outside of North America.The company launched quickly, registering more than 400 distributors in its first month of operation. By 1993, wholesale sales had reached a$148million.  Amway in China: Amway grew quickly in China from its market launch in 1995. In 1998, after abuses of illegal pyramid schemes led to riots, the Chinese government enacted a ban on all direct sellingcompanies, including Amway. In 2006, Amway China had a reported 180,000 sales representatives, 140 stores, and $2 billion in annual sales. In 2007 Amway Greater China and
  17. 17. 16 South-east Asia Chief Executive Eva Cheng was ranked No.88 by Forbes magazine in its list of the World's Most Powerful Women.In 2008, China was Amway's largest market, reporting 28% growth and sales of ¥17 billion (US$2.5billion).  Amway in UK: Amway (UK) Limited was established in 1973 and was one of the first affiliates to be launched worldwide, and the first in Europe. The administrative headquarters are based in Milton Keynes, Buckinghamshire and provide a support mechanism for Independent Business Owners within the UK, Republic of Ireland and the Channel Islands.  Amway in India: Amway India, a wholly owned subsidiary of Amway Corporation, was established in August 1995 after approval by India's Foreign Investment Promotion Board (FIPB). Amway India
  18. 18. 17 commenced commercial operations on May 5, 1998 and is now the largest Direct Selling FMCG Company. The Company is headquartered at the National Capital Region of India - New Delhi.Amway India has 400 full time employees and has generated indirect employment for 1,650 persons at all the contract manufacturer locations. Amway India provides free and unlimited training to all its distributors to help them grow their business. Amway India conducted over 34,000 training sessions during in the past 12-months with an attendance of over 1.5 million Amway Business Owners and prospects.
  19. 19. 18  Products of Amway in India: Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the hair care product Satinique (1965) and the cosmetics line Artistry (1968). Today Amway manufactures over 450 products, with manufacturing facilities in China, India and the United States, as well as Nutrilite organic farms in Brazil, Mexico and the United States (California and Washington State).  Household cleaners: Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid. In the January 2007 issue ofConsumer Reports, SA8 with Bpio quest was rated the best-performing laundry detergent, scoring 99 out of a possible 100 points.
  20. 20. 19  Beauty products: Amway's health and beauty brands include Artistry, Beauty cycle, Time Defiance, Artistry Essentials, Pure White, Satinique, Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums.  Nutrilite: Amway's largest selling brand is theNutrilite range of health supplements (marketed as Nutriway in some countries), and in 2008 Nutrilite sales exceeded US$3billion globally. In 2001, five Nutrilite products were the first dietary supplement to be certified by NSF International.  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,. In 2006 eSpring was namedProduct of the Year by the Poland-based non-profit World Foundation of Health, Heart and Mind. eSpring has won numerousGold andPlatinumawards in the Reader's Digest Most Trusted Brand Asia surveys.
  21. 21. 20  Atmosphere: In 2008 Amway's Atmosphere Air Purifier became the first air cleaner certified Asthma and Allergy Friendly by the Asthma and Allergy Foundation of America.
  22. 22. 21  Budget study of Amway in India: Amway India, the largest direct selling FMCG company of India and a wholly owned subsidiary of Amway Corporation, has clocked a turnover of Rs 2130 crores for the fiscal year 2011 thus registering a growth of 19% over the previous fiscal when it recorded a turnover ofRs 1790 crores. Amway India now ranks among the top FMCG Companies in India - a feat achieved in a span of thirteen years. From a turnover of 99 crores back in 1998 to the robust turnover of Rs 2130 crores - Amway India has grown twenty times. The company aims to cross the Rs 2500 crore mark in 2012. Announcing the annual turnover, Mr. William S Pinckney, MD & CEO, Amway India said, "The double digit growth for the last four years is buoyed by the launch of world class superior quality products in the lead categories of Health & Beauty, increased consumer access strategy coupled with experiential marketing & brand awareness, penetration of products in semi urban and rural markets of the state and the tremendous effort put by the distributors.
  23. 23. 22 Amway India, the Indian arm of Amway Corporation, will invest Rs 400 crore in India in the next two years on a manufacturing facility and for its headquarters in Delhi. Targeting an annual turnover of Rs 2,500 crore by 2012, Amway India today said it would set up another manufacturing facility in the country.
  24. 24. 23  Objective of Amway: Objective of the study is to understand the Amway’s operations in international marketing with respect to PESTLE analysis, SWOT analysis, Marketing Mix (Product, Price, Place, Promotion, Packaging and People) and also we have compared its operation domestically and internationally. To understand the former part, the company have visited Amway India and gathered appropriate information with regards to project.  Goal setting: Goal setting ideally involves establishing specific, measurable, attainable, realistic and time-targeted objectives. Work on the goal-setting theory suggests that it can serve as an effective tool for making progress by ensuring that participants have a clear awareness of what they must do to achieve or help achieve an objective.  Short-term goals: Short-term goals expect accomplishment in a short period of time, such as trying to get a bill paid in the next few days. The definition of a short-term
  25. 25. 24 goal need not relate to any specific length of time. In other words, one may achieve (or fail to achieve) a short-term goal in a day, week, month, year, etc. The time-frame for a short-term goal relates to its context in the overall time line that it is being applied to.  Personal goals: Individuals can set personal goals. A student may set a goal of a high mark in an exam. An athlete might run five miles a day. A traveller might try to reach a destination-city within three hours. Financial goals are a common example, to save for retirement or to save for a purchase.Managing goals can give returns in all areas of personal life. Goal setting and planning ("goal work") promotes long-term vision and short-term motivation. It focuses intention, desire, acquisition of knowledge, and helps to organize resources.Efficient goal work includes recognizing and resolving all guilt, inner conflict or limiting belief that might cause one to sabotage one's efforts. By setting clearly defined goals, one can subsequently measure and take spride in the
  26. 26. 25 achievement of those goals. One can see progress in what might have seemed a long, perhaps impossible, grind.  Vision and Values : The company’s vision is quite simple. Work each and every day to help people live better lives. Achieve company’s vision by helping people everywhere discover their potential and achieve their goals by offering better brands and opportunities for the future, and by sharing generously with the global community. To realize the vision, there are six enduring values that the business has been built on.  Partnership: Amway is built on the concept of partnership between the founders. The partnership that exists among the founding families, employees, and business owners is our most prized possession. We always try to do what is in the long-term best interest of our partners, in a manner that increases trust and confidence.  Integrity: Integrity is essential to our business success. We do what is right, not just whatever "works." Amway’s
  27. 27. 26 success is measured not only in economic terms, but by the respect, trust and credibility we earn.  Personal worth: It also acknowledge the uniqueness created in each individual. Every person is worthy of respect, and deserves fair treatment and the opportunity to succeed to the fullest extent of his or her potential.  Achievement: They are builders and encouragers. They strive for excellence in all they do. Their focus is on continuous improvement, progress and achievement of individual and group goals. They anticipate change, respond swiftly to it, take action to get the job done, and gain from our experiences. We encourage creativity and innovation.  Personal Responsibility: Each individual is responsible and accountable for achieving personal goals, as well as giving 100 percent effort in helping achieve corporate or team goals. By helping people help themselves, we further the potential for individual and shared success. They also have a responsibility to be good citizens in the communities where we live and work.
  28. 28. 27  Free Enterprise: They are proud advocates of freedom and free enterprise. Human economic advancement is clearly proven to be best achieved in a free market economy.
  29. 29. 28  Case study: Canadian tax case In 1983, Amway pleaded guilty to criminal tax evasion and customs fraud in Canada, resulting in a fine of $25 million CAD, the largest fine ever imposed in Canada at the time. In 1989 the company settled the outstanding customs duties for $45 million CAD. In a 1994 interview, Amway co- founder Rich DeVos stated that this incident had been his greatest "moral or spiritual challenge", first in "soul searching as to whether they had done anything wrong" and then for pleading guilty for technical reasons, despite believing they were innocent of the charges. DeVos stated he believed that the case had been motivated by "political reasons".