Amway is a direct selling company that was established in India in 1995 and is headquartered in New Delhi. It employs 400 full-time employees and generates indirect employment for 1,650 more. Amway offers around 105 products across personal care, nutrition, home, and cosmetics categories. It promotes itself through direct marketing and multi-level marketing without retail stores. While products are perceived as expensive, pricing targets middle to upper classes. Promotion relies on word-of-mouth by independent distributors, though some television advertising is used now. The internet allows both direct sales to customers and support for Amway's 3.3 million independent distributors across 80 countries.

1. AMWAY

2. About the Company
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 commenced commercial operations on May 5, 1998 [1] 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.
Marketing Mix of Amway
Product: Amway India offers about 105 products. Their product
line is divided into categories, which is personal, nutrition, home
and cosmetics. All their products are manufactured in India.
Place: Amway promotes itself as a 100 percent direct marketing
company eliminating the channels of distribution as well as
retailers. Unlike other FMCG products, their products are not
available in any of the retail stores. Amway uses the concept of
multi level marketing to sell their products. They appoint
independent owners from whom the products can be purchased.
They further create a chain of networks to sell their products.
Amway in recent times has also started their own website where
most of their products can be online without being a member.

3. Price: Amway spicing is such that it’s targeted both to the
middle class as well as upper class. Normally their products are
perceived be expensive but they do have a certain products like
their Attitude brand which is targeted towards the middle class
whereas their artistery line of products targeted towards the
upper class segments.
Having said that, their price system is very stable, a sales
representative has the right to any unauthorized Amway products
to any industry, a discount or a price reduction, contrary to
pricing strategy, sales representative eligibility criteria will be
denied. Amway's pricing strategy, as a whole there are only two,
namely, pricing and sales representative customer pricing.
Customer pricing for products in which the pricing for the full
price, to the sales price of the product on behalf of customer
value, compared with 80% and 20% of the sales representatives
of the product sales revenue.
Promotion: Amway’s marketing strategy is standardized over
the globe where their presence is. Even their best selling products
are not involved in any promotional activities. They are not
visible in the print media or television. Their promotion depends
on the word of mouth marketing by the direct sellers or lets say
the independent owners whom the company has appointed. But
recently with the change in their business model they have
started advertising on the television as well.

4. A few FMCG Companies and their missionand vision
Dabur
Vision- “Dedicated to health and wellbeing of every house hold”
Mission- (i) improving the lifestyle of individuals and state of the mind &
the body.
(ii) To innovate.
(iii) People development (employees).
Marico
Vision- “Make a difference”
Mission- Aim to be the leader in the business by meeting the consumer
needs.
Godrej
Vision- “Godrej in every home and workplace”
Mission- Enriching the quality of life everyday and everywhere.

5. SWOT Analysis of Amway
Strengths
 Amway’s standardized marketing strategy across the globe.
 The quality of their products.
 The company can save a lot of money since they don’t advertise
much.
 Their multilevel marketing strategy and its network.
 Since the area of multi level marketing is growing even the sales of
amway is worldwide is increasing considerably.
 Has presence in more than a 100 counties with more than 3.3 million
independent business owners.
 The array of their product line and length. Offers around 115
products in 5 different categories.
Weakness
 The only way the products can be purchased is through agents or
sometimes online. The company is missing out on retail sales.
 Products are somewhat on the costlier side.
 The only mode of marketing strategy the company uses is word of
mouth. Not visible in the TV ads or the print media.
Opportunity
 Since it’s an international brand and the competition is growing they
can use various other medium of communication.
 Apart from selling their products through business owners they
should also make their presence felt through retail sales.

6.  To also make their presence felt in the B-class and C-class towns in
India.
Threat
 Increasing competition in both national as well as the international
market.
 Replacements of local products, which are easily available, like
HUL, P&G, VLCC etc.

7. AMWAY- it’s tagline, logo and its significance
The brand signature (colored circular shapes) with the Amway logo is the
preferred presentation for the Amway brand. However, there are distinct
situations when the Amway logo will be used alone when a power brand
(NUTRILITE ARTISTRY, LEGACY OF CLEAN) is shown in alignment
with the AMWAY brand.
The brand signature strengthens the visual impact of the logo and piques
consumer interest and understanding of the Amway brand. It is comprised
of the AMWAY logo, dynamic circles representing the brand categories
and titles. Within the brand signature every aspect of the AMWAY brand
plays a unique and additive role. The circles represent the sense of motion
and harmony. They also signify the ripple effect that AMWAY has on
people’s lives and communities.
The colors are a direct reflection of the Amway logo itself, and
inspire these other aspects:
• Green circles inspire health, the cycle of life, and the energy of
growth that is the basis of Amway nutrition products.

8. • Rich red circles represent how Amway beauty products touch
the lives of women around the world and perpetuate an inner
confidence.
• Blue circles demonstrate the global, positive difference Amway
products for the home make – and that they’re planet-positive.
AMWAY, its competitors and their valueprepositions
A company has to create a value prepositions in the market for them to
differentiate from others. For Amway mainly the direct business owners
create the value preposition. Also the kind of quality that amway offers is
itself one of its value prepositions. Even though the price of their products
is on the expensive side they have crated a business model that
differentiates from other competitors. A customer of Amway can also be
the owner of amway is one of the biggest value preposition that this brand
has created. One can earn profits as well as earn revenue in terms of the
commission by selling the products and creating a chain of networks. So
from a consumer’s point of view he can use the products and market the
same product to sell them. Since the company uses the multi level
marketing strategy and the ability of the business owners to market the
product is one of its biggest value preposition.
Talking of Herbalife as one of the competitors of Amway, which uses
the same multilevel marketing strategy, they simplify how they talk about
their business in order to help investors and the public recognize their
value proposition. To achieve this, Herbalife has decided, to include an
expanded version of statement of average compensation in all starter kits
and in every new distributor application.

9. Herbalife also has taken two initiatives in Russia and India. In Russia,
distributors, and only distributors can go into a fixed location and pick up
their products from a machine, and then the company replenishes the
machine at night. Herbalife said this was a very effective mechanism in a
country that has significant traffic and access problems.
And in India, Herbalife wants to reflect the model that they have in
Mexico. This model is based on partnering with a retailer who already
has a fixed location. The retailer makes Herbalife products accessible to
the distributors and creates an additional benefit by driving extra traffic to
his/her store. Herbalife says both initiatives are at their early stages.
How has Internet changed the way Amway does
business?
In more recent times, the Internet has once forced businesses to rethink
how they operate. If organizations do not accumulate 'know-how' and if
they fail to monitor, trial and introduce new technologies as they develop
products and processes for their consumers, they may find that their alert,
progressive competitors have given themselves a competitive advantage.
Amway similarly has developed a strategy for taking full advantage of
the opportunities that the Internet offers for e-commerce.
Amway is not just a consumer goods business; it is also one of the world's
largest direct sales companies with over 3.3 million Independent Business
Owners in more than 80 countries. The main benefit of this form of
selling is that it allows the Independent Business Owner to focus upon
individual customers and their needs, with the Independent Business
Owner sourcing the consumer rather than the consumer having to visit a
shop. Because it focuses upon direct selling, Amway is different from
more traditional distribution channels.

10. With high levels of Internet use the globe that Independent Business
Owners are now Internet-ready, and to up their sales they use Internet.
They use social media platforms like Facebook to build their network and
sell their products.
Now with the growing competition and to reach out the consumers in
every possible way Amway decided to develop e-commerce opportunities
that would offer the 24-hour service its customers were wanting. Now
people willing to buy their products don’t necessarily have to be
members, they could directly purchase their products online. Apart from
Amway’s own website their products can be even purchased through e-
commerce websites like Flipkart and EBay.
The purpose of the Amway site was not only to provide e-commerce
support for the end users but also for the Independent Business Owners
that would help them manage their businesses. Available 24 hours a day
and 7 days a week, the site was developed to help users to find products,
place orders, repeat previous orders and check all of the information
about their businesses. All users needed was an Internet-ready computer
and access to the Internet.

11. EnvironmentalAnalysis of Amway
Micro Environmental Factors
Micro environment factors are those factors which are close to a business
that have a direct impact on its business operations and success. Before
deciding corporate strategy businesses should carry out a full analysis of
their micro environment. The following are the micro factors affecting
business-
Customers
As all businesses need customers, they should be centred on them.
Amway’s marketing plan is aimed to attract and retain its customers that
comprise of higher class through products that meet excellent customer
service. Amway’s customers are also Amway’s promoters they are the
ones who established good brand name without advertising. Customers
also bring new customers to Amway and this chain keeps on moving with
increase in customers and members of Amway.
Employees
Amway comprises majorly of independent business owners. They are
simply customers. They are customers of Amway and they are customers
of the system, consisting of voicemail, compact disk, books, and seminars.
Employees with relevant skills and experience are essential. As customers
help in advancing the company, on the other hand employees of company
facilitates their customer by keeping record of each and every buying and
selling all the chains of Amway, and with product their demand and
quality and most importantly commission of their members.
Suppliers
Suppliers are the one who provide the business with products and material,
as Amway is a totally product driven company. All its members customers
and demand depends on product only so they have to be very much
particular about their supplies and should keep an updated stock with
them.

12. Macro Environmental Factors
Media
Initially members were the only media source of the company i.e. they
preferred face-to-face promotion. Today Amway has advanced their
promotion techniques apart from face to face promotion they also have
started doing television advertisement and ad campaigns
Competitors
The major competitors of Amway are P&G and Lakme. Both of them are
producing same kind of products and of approximately same quality.
Both the companies also have a good brand name in the personal care
industry. These companies posses a good brand name in the eyes of
customer.
Technological environment
Amway also takes good care about the changing needs of environment
and keeps on developing new products by using research and
development technology. To keep up with high quality standard of
products there are 65 special laboratories and over 700 scientists
responsible for research & development and testing of the products.
Today, many of these products have already obtained patent.
Political-legal environment
Cosmetic products are now considered no less than pharmaceutical
products (medicines) in terms of ingredient selection and its quality
control. They are also required to follow good manufacturing practices.
Validation of processes and equipments, labelling requirement, shelf-life
testing, animal testing, etc. Is now an essential part of cosmetic
manufacturing? Certification from standards regulating bodies like BIS
(Bureau of Indian Standards) and ISO (International Organization of
Standards) adds to the reputation of the cosmetic manufacturing
company. Great emphasis is now being laid on the quality, safety and
efficacy of the products and hence the concept of total quality
management is widely accepted.