amway company presentation that how the company promoted their product in India through multi level marketing basically by word of mouth and analysis of consumer and competitors along with the SWOT (strength, weakness, opportunity, threats) and PEST (political, economical, social, technological) problems and solution providing the strategies that the company should adopt along with the suggestions

2. Founded in November 9, 1959
Headquarters- Ada, Michigan, United States
Area Served- WORLD WIDE
Number of employees- 21000 (as of 2014)
Primarily deals in HEALTH, BEAUTY and HOME CARE
Uses Multi Level Marketing (MLM) to sell its products

3. MULTI LEVEL MARKETING
Multiple levels of people are marketing a
product to consumers.
A sale representative gets customers and
train another sales representative to get
customer.
Usually marketed directly to consumers and
potential business partners by means of
relationship referrals and “word of mouth”
marketing.
Marketing strategy in which the sales force is
compensated not only for the sales they
generate, but also for the sales of the other
sales person they recruit.

4. MULTI LEVEL MARKETING
An MLM company starts by recruiting
one person who gets customers and
recruits sales rep with the option to
become a manager.
Only commission basis, not salary.
Rapid expansion by the number of
trained sales reps.
Income of sales rep isn’t limited to
only what they can sell – they can
also earn commission for having
trained other sales rep.

5. STRENGTH
• Global presence (53 affiliate operations
worldwide)
• Strong Research & Development
• Large distributor network across the world
• Direct selling portfolio
• Premium quality
• Negligible or no competition in its class
• Provide very convenient part time job for women

6. WEAKNESS
• Alarming attrition rate (60- 65%)
• Distributors ‘self consumed’ (50- 60%)
• Active distributors remained low (35- 40%)
• Products perceived to be expensive
• Distributors lacked awareness of products
• Narrow focus on Customer Service
• Lack of infrastructure
• Customer dissatisfaction

7. OPPORTUNITY
• Starting activities to deal with end consumers
• Aggressive marketing launch
• Focus on small towns
• Expansion of distribution network
• Strengthen online presence
• Improve attrition
• Distributor awareness

8. THREATS
• Competition from Oriflame
• Modicare took advantage of weakness
• E commerce and internet
• Merging of telecom with cable television operators-
making sales more obsolete
• Indian preferred the security of job.
• Local competitor (Modicare) as it provides better services
(like prices were 1/4th of Amway and 100% refund policy).

9. PEST Analysis
• POLITICAL
– Received permission from Foreign Investment
Promotion Board for investment in India
– Government allowance
• Economical
- Localization of production and raw material
- Local labour
- Following the Indianization strategy

10. • Social
– Active involvement of community
– Operation ghar and operation gaadi
– Hindi slogan ‘hamara apna business’
– Focus on house wives for part time involvment
• Technological
- Setup of R&D department
- Produce sachets of products
- Local manufacturing in three cities of India

11. Consumer Analysis
Consumer perceived amway products
to be expensive.
Consumer and distributors aware of
the fact that cost per usage was low
(formation of concentrated liquid is
very low)
Poor customer service by the
company leads to face many
problems by customers

12. COMPETITOR ANALYSIS
• Modicare targeted upper middle class
• Avon and Oriflame had a large advertising scale
• Revlon
• Modicare provide 100% refund even if the product is used –
was a cause of concern for Amway
• Local Indian companies
• E-commerce sector

13. Problems quality product Possibilities
People with negative mindset in India NRI known the brand better
Expensive products Cost effective and concentrated quality
product
Other MLM companies claiming to be “
just like Amway”
Educate people what MLM & Amway is all
about
No awareness in Indian market Advertising and awareness programs
Traditional way of earning money Conventional opportunity to earn money
with values and great reward programs

14. MARKETING
• Media advertising to promote products
• Aggressive commercial product launch
• Categorizing the products and appointing product
managers for every individual product line
• Focus in smaller towns
• Introduced value for money ‘small packs’- to increase
brand penetration
• Indianised the product line- ‘hamara apna business’

15. Strategy
• Agreement with the government and companies
• Resumed operations
• Goods will be sold in retail outlets
• Sales representatives
• Income of sales distributors will be based on direct selling
done by other
• Localization of employees
• Localization of production and raw material
• Localization of research and development
• Transparency and credibility of company’s management

16. suggestions
• Trial packs so as to introduce customer to the
product
• Product should be price sensitive
• Less time in home delivery of the product
• Multiple option places to purchase the
product
• Customer services should be better