Project is based on studying a single organization i.e. The AMWAY Corporation.

1. 1
TABLE OF CONTENTS
S. No. CHAPTERS PARTICULARS PAGE No.
1. Chapter 1 INTRODUCTION
Executive Summary
Objectivesof study
Researchmethodology
Limitationsof study
5
6
7
7
8
2. Chapter 2 COMPANY PROFILE
Introduction
Company Profile
History
International Expansion
Global Markets
Brands
Business Model
Commercial Sponsorship
Politics and Culture
9
10
11
11
13
13
14
18
18
19
3. Chapter 3 LITERATURE REVIEW
Consumer Awareness
Introduction
Review of Foreign Literature
Review Of Indian Literature
22
23
25
25
27
4. Chapter 4 ANALYSIS AND INTERPRETATION
Primary findings and Analysis
29
30
5 Chapter 5 Conclusions and Recommendations
Conclusion
Recommendation’s
38
39
40
6 BIBLIOGRAPHY 41

2. 2
7 ANNEXURE 42
CHAPTER 1
INTRODUCTION

3. 3
EXECUTIVE SUMMARY
The focus of this project is based on studying a single organization i.e. The AMWAY
Corporation. This research has been conducted to study the consumer behavior towards
AMWAY in the Indian Market. An attempt has been made to study the company’s prospective in
the new market and analyze on how the company plans its expansion in India.
Direct selling can be best described as the selling of products and serviced directly to consumers
in a face to face manner, through demonstration of usage, by an independent direct salesperson.
Direct selling benefits consumer because it sells high quality products at the consumer’s
convenience and that helps the company to know about the consumer awareness about the
company products and services.
One of the most tangible impacts of Consumer Awareness is that it helps the company to better
it’s services and quality of the products and even to improve their after sales services.
Consumer Awareness can be best described as the process in which the company get’s to know
about what the consumer thinks about the company and how much they are aware of the
company schemes and what company introduces in the near future.

4. 4
RESEARCH OBJECTIVE:
The main objective is to carry out in-depth study of consumer awareness towards Amway.
In order to achieve this primary objective, I have focused my research in three mainsegments:
 TO UNDERSTAND THE CONSUMER AWARENESS TOWARDS AMWAY.
 TO KNOW WHAT THE CONSUMER LIKES ABOUT AMWAY.
 TO KNOW WHAT THE CONSUMER WANTS FROM AMWAY.
RESEARCH METHODOLOGY:
 PRIMARY DATA COLLECTION
Questionnaire filled by the consumer’s of Amway.
Direct interview with a selected group of people.
 SECONDARY DATA COLLECTION
Books
Magazines
Internet
Articles

5. 5
 STATISTICAL TOOLS USED
Bar Graphs
Pie Charts
The total sample size is 100 respondents.
The questionnaire’s response format would be close ended questions. With a mix of question
types varying from ranking, multiple choice to checklist question’s. The attitude of the
respondents would be measured by itemized category scales.
LIMITATION OF THE STUDY:
 Some very specific personal data was not allowed to be collected from the consumers .
 The period of survey was summer’s so the products used in the winter’s are not taken
into consideration.
 There is a chance of personal bias in the data provided by the consumers
 The time period of the survey was too short to come to any strong conclusive results.

6. 6
CHAPTER 2
COMPANY PROFILE

7. 7
INTRODUCTION
Amway is a unique company. It is defined by the fundamental philosophy of helping people help
themselves. Amway has helped millions of people run their own independent business around
the world. Today’ Amway continues to grow by offering new products and business
opportunities to people from all cultures and walks of life. Whether they are employees’
distributors, or citizens in the community’ Amway touches their lives for better.
India with its rich reservoir of will’ talent and enterprise is perhaps that most fertile ground for
the Amway Corporation. In short it has made substantial value addition to India’s social
economic life.
The focus of this project is based on studying a single organization i.e. The Amway corporation.
This research has been conducted to study the consumer awareness towards Amway in the Indian
Market. An attempt has been made tp study the company’s perspective in the new market and
analyze on how the company plan its expansion in India.
I have sustained my research by conducting interviews to gain more insight about the
corporation. The data has been analyzed on the basis of questionnaire which were conducted by
me.
I have finally concluded my research by providing a summarized conclusion and also suggested
recommendations on the basis of the marketing mix.

8. 8
COMPANY PROFILE
Amway (short for "American Way") is an American company specializing in the use of multi-
level marketing to sell health, beauty, and home care products. The company was founded in
1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan.
Amway and its sister companies under Alticor reported sales of $9.5 billion in 2015. It conducts
business through a number of affiliated companies in more than a hundred countries and
territories. Amway was ranked No. 29 among the largest privately held companies in the United
States by Forbes in 2015 based on revenue, and No. 1 among multi-level marketing companies
by Direct Selling News in 2016.
Amway has been investigated in various countries and by institutions such as the Federal Trade
Commission (FTC) for alleged pyramid scheme practices.
HISTORY
FOUNDING
Jay Van Andel and Richard DeVos had been friends since school days and business partners in
various endeavors, including a hamburger stand, an air charter service, and a sailing business. In
1949, they were introduced to the Nutrilite Products Corporation by Van Andel's second cousin
Neil Maaskant. DeVos and Van Andel signed up to become distributors for Nutrilite food
supplements in August. They sold their first box the next day for $19.50, but lost interest for the
next two weeks. They traveled to Chicago to attend a Nutrilite seminar soon after, at the urging
of Maaskant, who had become their sponsor. They watched promotional filmstrips and listened
to talks by company representatives and successful distributors, then they decided to pursue the

9. 9
Nutrilite business. They sold their second box of supplements on their return trip to Michigan,
and rapidly proceeded to develop the business further.
Earlier in 1949, DeVos and Van Andel had formed the Ja-Ri Corporation (abbreviated from their
respective first names) to import wooden goods from South American countries. After the
Chicago seminar, they turned Ja-Ri into a Nutrilite distributorship instead.[17] In addition to
profits on each product sold, Nutrilite offered commissions on sales made by new distributors
introduced to the company by existing distributors—a system known as multi-level marketing or
network marketing. By 1958, DeVos and Van Andel had built an organization of more than
5,000 distributors. However, they and some of their top distributors formed the American Way
Association, or Amway, in April 1959 in response to concerns about the stability of Nutrilite and
in order to represent the distributors and look for additional products to market.
Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in
Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later
changed the name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway
Sales Corporation to procure and inventory products and to handle sales and marketing plans,
and the Amway Services Corporation to handle insurance and other benefits for distributors. In
1960, they purchased a 50% share in Atco Manufacturing Company in Detroit, the original
manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964,
the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing
Corporation merged to form the Amway Corporation.
Amway bought control of Nutrilite in 1972 and full ownership in 1994.
JAPAN HEAD OFFICE VIETNAM OFFICE

10. 10
INTERNATIONAL EXPANSION
Amway expanded to Australia in 1971, to parts of Europe in 1973, to parts of Asia in 1974, to
Japan in 1979, to Latin America in 1985, to Thailand in 1987, to China in 1995, to Africa in
1997, to India and Scandinavia in 1998, to Ukraine in 2003, to Russia in 2005, and to Vietnam in
2006.
GLOBAL MARKETS
According to the Amway website, as of 2011 the company operates in over 100 countries and
territories, organized into regional markets: the Americas, Europe, greater China, Japan and
Korea, and SE Asia/Australia. The top 10 markets for Amway in 2015 were China, South Korea,
United States, Japan, Thailand, Russia, Malaysia, India and Ukraine.
In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases,
including strong growth in the China, Russia, Ukraine and India markets.
AMWAY AUSTRALIA
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, however sales soon stagnated. Investigations revealed problems with quality
control at local manufacturers and the decision was made to manufacture and ship products from
Amway headquarters in the US.[2] By 1993, wholesale sales had reached A$148 million.[3] In that
year Amway Australia became part of the publicly listed company, Amway Asia Pacific, and by
1998 sales had reached A$198 million,[3][4] with more than 100,000 distributors marketing over
2,500 products. In 2000 Amway Asia Pacific returned to private ownership by New AAP
Limited, a Bermuda corporation.

11. 11
AMWAY CHINA
Amway China launched in 1995. In 1998, after abuses of illegal pyramid schemes led to riots,
the Chinese government enacted a ban on all direct selling companies, including Amway. After
the negotiations, some companies like Amway, Avon, and Mary Kay continued to operate
through a network of retail stores promoted by an independent sales force.[28] China introduced
new direct selling laws in December 2005, and in December 2006 Amway was one of the first
companies to receive a license to resume direct sales. However, the law forbids teachers, doctors,
and civil servants from becoming direct sales agents for the company and, unlike in the United
States, salespeople in China are ineligible to receive commissions from sales made by the
distributors they recruit.
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 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 yuan (US$2.5
billion).According to a report in Bloomberg Businessweek in April 2010, Amway had 237 retail
shops in China, 160,000 direct sales agents, and $3 billion in revenue.
BRANDS
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). Amway brands include Artistry, Atmosphere, Body Blends, Bodykey,
Body Works, Clear Now, eSpring, Glister, iCook, Legacy of Clean, Nutrilite, Peter Island,
Perfect Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Artistry Men and XS.
In 2015, the vitamins and weight management products accounted for 46 percent of Alticor's
sales. Beauty and personal care products represented 25 percent of sales while durable products,
such as eSpring water treatment systems and Atmosphere air treatment systems, represented 16
percent of sales. Home care products generated 7 percent of sales.
According to Euromonitor International, Amway sells more products with a satisfaction
guarantee than any other direct seller.

12. 12
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
of Consumer Reports, SA8 with Bioquest was rated the best-performing laundry
detergent.Consumer Reports did, however, criticize SA8's pricing, a situation which was
disputed by Amway. Consumer Reports conducted blind testing of detergents in 2010 and ranked
versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested. Consumer
Reports program manager Pat Slaven recommended against buying the products because
consumers can "go to the grocery store and get something that performs a whole lot better for a
whole lot less money".
HEALTH AND BEAUTY
Amway's health and beauty brands include Artistry, Satinique, Hymm, Body Series,
Glister, Moiskin (South America),Nutrilite, Nutriway (Scandinavia and Australia/New
Zealand), Attitude (India), eSpring, Atmosphere and iCook as well as XL and XS Energy drinks.
Other Amway brands that were discontinued or replaced include Tolsom, Eddie Funkhouser
New York, or beautycycle (Eastern Europe).
ARTISTRY
Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums. In
2011, Artistry brand reached sales of $2.8 billion. According to Euromonitor International, the
Artistry brand was among the world's top five, largest selling, premium skincare brands, and
among the world's top ten, largest selling, premium cosmetic brands in 2014–2015

13. 13
NUTRILITE
Amway's largest selling brand is the Nutrilite range of health supplements (marketed as
Nutriway in some countries), and in 2008 Nutrilite sales exceeded $3 billion globally. In 2001,
five Nutrilite products were the first dietary supplements to be certified by NSF International. In
2006, 2007, 2008, and 2009 in the nutrient and health food category, Nutrilite won "Platinum"
and "Gold" awards in Malaysia, China, Taiwan, Thailand, and Asia overall in the Reader's
Digest "Trusted Brands of Asia" survey.[42] In 2008 Nutrilite scientists, in partnership with
Alticor subsidiary Interleukin Genetics won the 12th John M. Kinney Award for Nutrition and
Metabolism for their research into the interaction between nutrition and genetics.
In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost
$4.7 billion. According to Euromonitor International, in 2014, Nutrilite was the world's No. 1
selling vitamins and dietary supplements brand. In 2015, it was reported that according to
Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in
China, with 11% of a market that generated 100 billion yuan ($15.6 billion) in annual sales. In
2015, it was reported that according to China Confidential consumer brands survey, Amway
Nutrilite was the most popular vitamin and dietary supplement brand in China. In January 2009,
Amway announced a voluntary recall of Nutrilite and XS Energy Bars after learning that they
had possibly been manufactured with Salmonella-contaminated ingredients from Peanut
Corporation of America. The company indicated that it had not received any reports of illness in
connection with the products.
In 2012, the Center for Science in the Public Interest (CSPI), accused Amway of making
unsubstantiated and illegal claims about Nutrilite Fruits & Vegetables 2GO Twist Tubes and
threatened to launch a class action lawsuit against the company unless it took remedial action.
Amway responded that the claims made about the products were properly substantiated and that
they did not plan to change the product's labeling but nevertheless would review the statements
that CSPI has questioned. CSPI later reported that Amway had agreed to changing product labels
by the end of 2014.
XS
On January 14, 2015, Amway announced that it had acquired XS Energy, a California-based
brand of energy drinks and snacks. The XS Energy brand has been sold as an Amway product
since 2003. As of January 2015, it has been distributed in 38 countries, generating annual sales
of $150 million.

14. 14
eSPRING
Amway's eSpring water filter was introduced in 2000. According to Amway, it was the
first system to combine a carbon block filter and ultraviolet light with electronic-
monitoring technology in the filter cartridge and it became the first home system to
achieve certification for ANSI/NSF Standards 42, 53, and 55. According to Amway,
eSpring was the first water treatment system to receive certification for all fifteen
NSF/ANSI 401 contaminants which include pharmaceuticals, pesticides and
herbicides. The company also claims that, in addition to these 15 contaminants, eSpring
is certified for more than 145 potential contaminants, including lead and mercury.
eSpring was the first commercial product which employed Fulton
Innovation's eCoupled wireless power induction technology. In December 2006, Amway
sister company, Fulton Innovations, announced that it would introduce eCoupled
technology in other consumer electronic products at the 2007 Consumer Electronics
Show. Companies licensing this technology include Visteon, Herman
Miller, Motorola and Mobility Electronics. Fulton was a founding member of the Wireless
Power Consortium which developed the Qi (inductive power standard).
In 2007 eSpring was ranked fifth out of 27 brands in a comparison of water filters
by Consumer Reports. In 2012, eSpring scored 94 points (out of a possible 100 points)
– best among countertop models and third out of 18 brands in a comparison
by Consumer Reports.
In 2013, eSpring was one of the Reader's Digest Trusted Brands Award winners in the
water purifiers category in Malaysia. In 2015, Amway was recognized for the sixth
consecutive year by Frost & Sullivan as Asia Pacific Water Filtration company of the
year. According to an Amway commissioned study of global sales conducted by
marketing research firm Verify Markets, eSpring was the world's largest selling brand of
kitchen water treatment systems and home water treatment systems in 2014.

15. 15
BUSINESS MODEL
Amway combines direct selling with a multi-level marketing strategy. Amway distributors,
referred to as "independent business owners" (IBOs), may market products directly to potential
customers and may also sponsor and mentor other people to become IBOs. IBOs may earn
income both from the retail markup on any products they sell personally, plus a performance
bonus based on the sales volume they and their down line (IBOs they have sponsored) have
generated.[2] People may also register as IBOs to buy products at discounted prices. Harvard
Business School, which described Amway as "one of the most profitable direct selling
companies in the world", noted that Amway founders Van Andel and DeVos "accomplished their
success through the use of an elaborate pyramid-like distribution system in which independent
distributors of Amway products received a percentage of the merchandise they sold and also a
percentage of the merchandise sold by recruited distributors".
COMMERCIAL SPONSERSHIP
In December 2006, Alticor secured the naming rights for the Orlando Magic's home basketball
arena in Orlando, Florida. The Orlando Magic are owned by the DeVos family. The arena,
formerly known as the TD Waterhouse Centre, was renamed the Amway Arena. Its successor,
the Amway Center, was opened in 2010, and the older arena was demolished in 2012.
In 2009, Amway Global signed a three-year deal with the San Jose Earthquakes Major League
Soccer team to become the jersey sponsor.
In March 2009, Amway Global signed a multi-year deal to become the presenting partner of
the Los Angeles Sol of Women's Professional Soccer. The deal, however, would last only one
year, as the Sol folded the next year.
In 2011 Amway signed a three-year deal to be the presenting sponsor of the National Hockey
League's Detroit Red Wings.
Since 2012, Amway has been the title sponsor of the Canadian Championship, an annual soccer
tournament.

16. 16
POLITICS AND CULTURE
POLTICAL CONTRIBUTIONS
In the 1990s, the Amway organization was a major contributor to the Republican Party (GOP)
and to the election campaigns of various GOP candidates. Amway and its sales force contributed
a substantial amount (up to half) of the total funds ($669,525) for the 1994 political campaign of
Republican congresswoman and Amway distributor Sue Myrick (N.C.).[71]According to two
reports by Mother Jones magazine, Amway distributor Dexter Yager "used the company's
extensive voice-mail system to rally hundreds of Amway distributors into giving a total of
$295,871" to Myrick's campaign. According to a campaign staffer quoted by the magazine,
Myrick had appeared regularly on the Amway circuit, speaking at hundreds of rallies and selling
$5 and $10 audiotapes.[71] Following the 1994 election, Myrick maintained "close ties to Amway
and Yager", and raised $100,000 from Amway sources, "most notably through fundraisers at the
homes of big distributors", in the 1997–98 election cycle.
In October 1994, Amway gave the biggest corporate contribution recorded to that date to a
political party for a single election, $2.5 million to the Republican National Committee, and was
the number one corporate political donor in the United States.[71] In the 2004 election cycle, the
organization contributed a total of $4 million to a conservative 527 group, Progress for America.
In July 1996, Amway co-founder Richard DeVos was honored at a $3 million fundraiser for the
Republican Party, and a week later, it was reported that Amway had tried to donate $1.3 million
to pay for Republican "infomercials" and televising of the GOP convention on Pat
Robertson's Family Channel, but backed off when Democrats criticized the donation as a ploy to
avoid campaign-finance restrictions.
In April 1997 Richard DeVos and his wife, Helen, gave $1 million to the Republican National
Committee (RNC), which at the time was the second-largest soft-money donation ever, behind
Amway's 1994 gift of $2.5 million to the RNC. In July 1997, Senate Majority Leader Trent
Lott and House Speaker Newt Gingrich slipped a last-minute provision into a hotly contested
compromise tax bill that granted Amway and four other companies a tax break on their Asian
branches that totaled $19 million.
In a column published in the Fort Worth Star-Telegram newspaper in August
1997,[75] reporter Molly Ivins wrote that Amway had "its own caucus in Congress...Five
Republican House members are also Amway distributors: Reps. Sue Myrick of North
Carolina, Jon Christensen of Nebraska, Dick Chrysler of Michigan, Richard Pombo of
California, and John Ensign of Nevada. Their informal caucus meets several times a year with
Amway bigwigs to discuss policy matters affecting the company, including China's trade status."

17. 17
A 1998 analysis of campaign contributions conducted by Businessweek found that Amway,
along with the founding families and some top distributors, had donated at least $7 million to
GOP causes in the preceding decade.[74] Political candidates who received campaign funding
from Amway in 1998 included Representatives Bill Redmond (R–N.M.), Heather Wilson (R–
N.M.), and Jon Christensen (R–Neb).
According to a report by the Center for Public Integrity, in the 2004 election cycle, members of
the Van Andel and DeVos families were the second, third and fifth largest donors to the
Republican party.
Dick DeVos, son of Amway founder Richard DeVos and past president of the company, served
as Finance Chairman of the Republican National Committee, and his wife Betsy DeVos served
as chair of the Michigan Republican Party from 1996 to 2000 and 2003 to 2005.
In May 2005, Dick DeVos ran against incumbent Governor Jennifer Granholm in Michigan's
2006 gubernatorial election. DeVos was defeated by Granholm, who won 56% of the popular
vote to DeVos' 42%.
In August 2012, gay rights activist Fred Karger began a movement to boycott Amway in protest
of the contribution from a private foundation of Amway President Doug DeVos to the National
Organization for Marriage, a political organization which opposes legalization of same-sex
marriage in the United States.
RELIGION
Several sources have commented on the promotion of Christian conservative ideology within the
Amway organization. Mother Jones magazine described the Amway distributor force as "heavily
influenced by the company's dual themes of Christian morality and free enterprise" and operating
"like a private political army". In The Cult of Free Enterprise, Stephen Butterfield, who spent
time in the Yager group within Amway, wrote "[Amway] sells a marketing and motivational
system, a cause, a way of life, in a fervid emotional atmosphere of rallies and political religious
revivalism." Philadelphia City Paper correspondent Maryam Henein stated that "The language
used in motivational tools for Amway frequently echoes or directly quotes the Bible, with the
unstated assumption of a shared Christian perspective."
Businessweek correspondents Bill Vlasic and Beth Regan characterized the founding families of
Amway as "fervently conservative, fervently Christian, and hugely influential in the Republican
Party", noting that "Rich DeVos charged up the troops with a message of Christian beliefs and
rock-ribbed conservatism."

18. 18
High-ranking Amway leaders such as Richard DeVos and Dexter Yager were owners and
members of the board of Gospel Films, a producer of movies and books geared towards
conservative Christians, as well as co-owners (along with Salem Communications) of a right-
wing, Christian nonprofit called Gospel Communications International. Yager, interviewed on 60
Minutes in 1983, admitted that he promotes Christianity through his Amway group, but stated
that this might not be the case in other Amway groups.
Rolling Stone's Bob Moser reported that former Amway CEO and co-founder Richard DeVos is
connected with the Dominionist political movement in the United States. Moser states that
DeVos was a supporter of the late D. James Kennedy, giving more than $5 million to
Kennedy's Coral Ridge Ministries. DeVos was also a founding member and two-time president
of the Council for National Policy, a right-wing Christian organization.
Sociologist David G. Bromley calls Amway a "quasi-religious corporation"
having sectarian characteristics. Bromley and Anson Shupe view Amway as preaching
the gospel of prosperity. Patralekha Bhattacharya and Krishna Kumar Mehta, of the consulting
firm Thinkalytics, LLC, reasoned that although some critics have referred to organizations such
as Amway as "cults" and have speculated that they engage in "mind control", there are other
explanations that could account for the behavior of distributors. Namely, continued involvement
of distributors despite minimal economic return may result from social satisfaction compensating
for diminished economic satisfaction.

19. 19
CHAPTER 3
LITERATURE REVIEW

20. 20
CONSUMER AWARENESS
Consumer awareness is about making the consumer aware of his/her rights. It is a marketing
term which means that consumers are aware of products or services, its characteristics and the
other marketing P’s (place to buy, price, and promotion).Though the first consumer movement
began in England after the Second World War, a modern declaration about consumer’s rights
was first made in the United States of America in 1962, where four basic consumer rights
(choice, information, safety and to be heard ) were recognized. Ralph Nadar, a consumer activist,
is considered as the father of ‘consumer movement’. March 15 is now celebrated as the World
Consumer Rights Day. The United Nations in 1985 adopted, , certain guidelines to achieve the
objectives of maintaining protection for consumers and to establish high level ethical conduct for
those engaged in production and distribution of goods and services.
High prices, duplicate articles, underweight and under – measurements, rough behavior, undue
conditions, artificial scarcity are some of the ways by which consumers are exploited by
manufacturers and traders. Limited information, limited supplies and low literacy are factors
causing exploitation of consumers.
In India, the concept of consumer protection is not new. References to the protection of
consumer’s interest against exploitation by trade and industry, underweight and measurement,
adulteration and punishment for these offences, were made in Kautilya’s ‘Arthashastra’.
However, an organized and systematic movement to safeguard the interest of consumers, is a
recent phenomenon. The consumers have to be aware not only of the commercial aspects of sale
and purchase of goods, but also of the health and security aspects. Food safety has become an
important element of consumer awareness these days. In case of food products, its quality
depends not only on its nutritional value, but also on its safety for human consumption.
Consumption of contaminated or adulterated food is a major cause of human illness and
suffering.

21. 21
This called for strong legal measures to ensure that the manufacturers and sellers observe
uniformity and transparency in prices, stocks and quality of their goods. Enactment of Consumer
Protection Act, 1986 was one of the most important steps taken to protect the interests of
consumers. The provision of the Act came into force, with effect from July 1, 1987. The act
recognizes consumer’s right to seek redresses and right to consumer education. The salient
features of the Act are as follows:-
 Applies to all goods and services unless specifically exempted by the Union Government;
 Covers all the sectors whether private, public or cooperative;
 Enshrines the consumer’s rights related to safety, information, choice, representation and
redress and consumer education.
 The act gives consumers an additional remedy besides those which may be available to
them under the provisions of other existing laws and they are free to choose the remedy.
 Empower consumers seeking discontinuance of certain unfair and restrictive trade
practices, defects or deficiencies in services and stopping in services or withdrawal of
hazardous goods from the market.
There are no legal formalities for filing the complaint. Suppose, you find yourself cheated by
trader or a manufacturer and wish to make a complaint to consumer court, you can write the
details on a plain paper. Attach the supporting documents, that is, guarantee or warrantee card
and cash memo with the complaint and submit it in the district consumer court. You do not have
to go to any lawyer or professional for legal assistance. You yourself can plead the case in the
consumer court. Since, the enactment of the Consumer Protection Act and even before that,
newspapers and magazines have been responding to the needs of consumers. Apart from
publishing articles, columns etc newspapers have also tried to come to the rescue of harassed
consumers. The Indian Express was one of the first newspapers to start a consumer complaint
column.
There are 500 consumer associations, which are working in the field of consumer protection.
They deal with various aspects of consumer exploitation. Some of the prominent ones are:
Consumer Guidance Society of India, Mumbai; Citizens Action group, Mumbai; Common
Cause, New Delhi; Voice, New Delhi; Consumer Utility and Trust Society, Jaipur.

22. 22
INTRODUCTION
This chapter makes an attempt to analyze the past studies relating to the research on consumer
problems and the mode of redressal for consumer grievances.
The previous literature is reviewed so as to understand the extent to which the grievances of the
consumers have been redressed.
This study also aims at providing a new insight in to the areas which have not already been
touched. The studies undertaken in the area of consumerism and consumer protection abroad and
in India by the researchers are many and varied in nature leading institutions and voluntary
organizations.
Major studies relevant to the subject are classified into the following:
(i) Studies in Foreign Literature.
(ii) (ii) Studies in Indian Literature
REVIEW OF FOREIGN LITERATURE
Mohammed Solaiman and A.R.Belal1 (1970) have conducted a study on “Protection of
Consumer’s Rights in Bangladesh: Issues and Challenges” in which they examined the process
of consumers’ protection in Bangladesh. The measures/ mechanism used for the protection of
consumers’ rights, have been discussed in detail. A questionnaire survey was carried out to
assess the effectiveness of the measures/mechanisms. The results indicate that ‘legal protection’
and ‘role of consumers’ groups’ play a satisfactory role to protect consumers’ rights in
Bangladesh while other measures seem to be ineffective. The study makes a number of
recommendations for the development of a healthy consumer culture in Bangladesh. The paper
concludes by emphasizing that a coordinated approach is required to solve the problem of
consumer exploitation in Bangladesh. In this regard, all the concerned parties, such as
consumers, marketers, manufacturers, policy makers, government, voluntary organizations and
press media, should take a pro-active role to help the development of consumerism in
Bangladesh.

23. 23
Robert O. Herrmann2 (1970) in his article, in which he analyses the causes of the current wave
of consumer unrest, goals of consumer protest groups, and the way in which they are organized
and supported. He also examined the consumer movement of the 1960s and compared it with the
consumer movements of the early 1900s and the 1930s. The analysis suggests new answers and a
basis for predicting the future course of consumerism.
Richar H. Buskirk and Rothe3 (1970) have analyzed the forces underlying the present upsurge in
consumer activity and some of the dangers of the remedies proposed by some consumer
advocates that heretofore remained unexamined. Implications of the consumer movement for
corporate policy are discussed and definite recommendations are made on what corporations
should do in the current situation.
Louis L. Stern4 (1971)conducted a study on “Consumer Protection Via Selfregulation’’ in which
he has analyzed the roles of government, business and consumers in consumer protection. He
also discusses the limitations of government and business in consumer protection efforts. He also
raises the question of whether self-regulation can or should deal with social issues.
Hiram C.Barksdale and William R.Darden5 (1972) have conducted an exploratory study in
which they used a national sample of consumers to determine consumer reactions to business
policies and practices. Consumer Perceptions of the marketing system and its operation are
described, evaluated and used generally to suggest some implications for marketing
management. The findings offer great potential to those who are interested in drawing specific
implications for their own managerial situation.

24. 24
From the review of the above studies, it can be concluded that a few researchers have made
attempts in the direction of the measurement of consumer awareness, the role of voluntary
consumer organization, the consumer rights and responsibility, the complaining behavior of the
consumers and the perception of the working of consumer fora. However, only a limited aspect
has so far been covered with respect to the working of consumer forA for the redressal of
consumer grievances. Despite the fact that consumer protection is an upcoming area, it has not
attracted much attention of research scholars. With a view to bridging this gap, in an area of
great social and economical relevance, the present study was undertaken
REVIEW OF INDIAN LITERATURE
The major studies conducted in India are further classified into three headings such as studies
pertaining to Consumer Awareness about Consumer Movement, Consumer Voluntary
Organizations, Consumer Protection Laws, Consumer Complaining Behavior and The
functioning of Grievance Redressal Agencies.
A study conducted by D.A.R. Subramaniyam, et al.28 (1982) establishes the fact that there is a
need for consumer organization and consumer councils. The study comes out with the conclusion
that nearly 66 per cent of the consumers have taken initiative by themselves rather than looking
for somebody else to rescue them.
S.N. Singh29 (1987) in his article “Consumer Protection Legislation – A Critique”, has presented
a critical analysis of the consumer protection legislation in India. He explains the various laws,
which protect the interest of consumers, their scope, provisions and procedures and effectiveness
of enforcement. He concludes that the legislation in India is failing in safeguarding the interest of
the consumer in almost all areas.

25. 25
“Consumer Protection Legislation – A Critique” is a study by S.N. Singh30 (1988) which throws
much light on the provisions of various consumer protection laws in India. The scope and ambit
of different laws and the powers and functions of various authorities have been discussed in
detail. The author has highlighted the difficulties in the implementation of the provisions of the
MRTP and the COPRA, 1986.
Kochadai31 (1989) in his study “An Evaluation of Consumer Awareness,” has analysed the
extent of awareness of the consumers towards the Consumer Movement in Madurai City. The
findings of the study showed that while only 46.7 per cent of consumers were aware of their
rights as consumers, 52.5 per cent were aware of the CPA measures, 42.5 per cent knew about
the statutory bodies set up under the CPA and a mere 3.33 per cent had ever approached any
consumer organization. He concluded that the extent of awareness of the consumers of the
consumer movements is qualitative in character and hence it cannot be measured directly in
quantitative terms. There is no fixed value or scale, which will help to measure the awareness.
But the awareness has been studied with the help of their responses to various questions given in
the questionnaire.
On analysing the changing profiles of consumer complaints, Manubhai Shah32(1989) has
observed that the complainants were more conscious about the end result of their complaints.
Moreover, one qualitative change noticed was that the complaints had come not only from
individual consumers, but also from industrial and commercial organizations. The complaints
largely pertained to services, supplies and refund of deposits.

26. 26
CHAPTER 4
ANALYSIS
&
INTERPRETATION

27. 27
PRIMARY FINDINGS AND ANALYSIS
HOW DID YOU COME TO KNOW ABOUT AMWAY ?
As per our study suggested that the consumer awareness of the AMWAY is increasing due to the
Newspapers/Magazines as well as the Advertisement also pays equally to the consumer
awareness.

28. 28
WHICH PROMOTIONAL ACTIVITY ARE YOU AWARE OF THAT INFLUENCED
YOUR DECISION TO GO FOR AMWAY ?
As per the study most of the consumers are aware Free Gifts that are provided by the AMWAY
and also the bundled offers but many of the consumers are not aware of the Coupons and Loyalty
schemes

29. 29
WHY DO YOU PREFFER THIS BRAND ?
As per the study most of the consumers prefer AMWAY due to Sales Promotion and Quality of
the products , so there is a need to make consumer aware about the schemes and the packaging
of the AMWAY products.

30. 30
WHICH PROMOTIONAL ACTIVITY DO YOU WANT FROM AMWAY IN NEAR
FUTURE ?
As per the study most of the consumers want guarantee form the AMWAY and than comes the
Premium Offers and Price Off

31. 31
HOW WOLUD YOU PREFER TO BUY THE AMWAY PRODUCTS ?
As per the study most of the consumer want to buy the AMWAY products from the official
Amway stores and they finds it more convenient and appropriate than buying online or from 3rd
Party Retailers.

32. 32
WHICH PRODUCT LINE ARE YOU AWARE OF AMWAY ?
As per the study most of the consumer are only aware of the AMWAY as a Personal care
company and the unaware of the Nutrition and Beauty products.

33. 33
WOULD YOU RECOMMEND AMWAY PRODUCTS TO OTHER CONSUMERS ?
As per the study 98% of the consumers involved the survey will recommend the company’s
products to other and that is a good sign for company’s Goodwill and consumer base.

34. 34
WOULD YOU LIKE TO TAKE PART IN THE AMWAY CONSUMER AWARENESS
PROGRAMME IN FUTURE ?
As per the study majority of the consumer’s will take pat in the awareness surveys that
AMWAY will conduct and the least are not willing to play a part in such surveys.

35. 35
CHAPTER – 5
CONCLUSION
&
RECOMMENDATIONS

36. 36
CONCLUSION
From the above study the following conclusions are drawn:
 Amway as a brand has influenced consumer’s life on the
daily basis.
 Consumer’s are aware about Amway up to a certain extend.
 Consumer’s only sees Amway as a brand which deals in
beauty and health products .
 Amway is sometimes categorized as a foreign brand with
expensive products.
 Consumer’s are not fully aware about the products and
services of Amway.
 Consumer’s are not aware about purchasing method’s that
Amway provides.

37. 37
RECOMMENDATIONS
 Amway should advertise more about their products and
their different uses.
 Amway should make efforts towards connecting to the
Indian local consumers.
 Amway should start certain Consumer Awareness
programme
 Apart from Beauty and Health Care Amway should also
promote their Nutrition products as the consumers are least
aware about that.

38. 38
BIBLIOGRAPHY
 Books :Pandey, I.M. ; Financial Management, Vikas Publishers, New Delhi; 2010.
 Articles : Gupta, K. ; Durables: On a fast track; Harvard Business Review, No. 11; Vol.
8; pp 42-50.
Websites:
 www.Google.com
 www.Amway.com
 www.scribd.com
 www.metachart.com

39. 39
ANNEXURE

40. 40
QUESTIONNAIRE
NAME- AGE-
ADDRESS- SEX-
OCCUPATION- PH.NO-
TICK YOUR CHOICE
1. How did you come to know about AMWAY ?
 FRIENDS
 HOARDINGS
 ADVERTISEMENT
 INTERNET
 NEWSPAPERS

41. 41
2. Which promotional activity are you aware of that influenced your decision
to go for AMWAY ?
 COUPONS
 BUNDLE OFFERS
 DISCOUNTS
 FREE GIFTS
 OTHERS
3. Why do you prefer this brand ?
 PRICE
 QUALITY
 EASILY AVAILABLE
 PACKAGING
 BRAND NAME
 SALES PROMOTION
 SCHEMES
 OTHERS
4. Which promotional activity do you want from AMWAY in near future ?
 GUARANTEES
 PRICE OFF
 LOYALTY SCHEMES
 PREMIUM OFFERS
 COUPONING
5. How would you prefer to buy the AMWAY products ?
 ONLINE
 AMWAY STORE
 3RD PARTY RETAILER

42. 42
6. Which productline are you aware of the AMWAY ?
 BEAUTY
 PERSONAL CARE
 NUTRITION
7. Would you recommend AMWAY products to other consumers ?
 YES
 NO

8. Would you like to take part in the AMWAY consumers awareness
programme in future?
 YES
 NO
 MAYBE