Marketing Strategy of Amway

ACKNOWLEDGEMENT
After successfully completion of marketing research program, I
am in the position to offer my sincere gratitude to all.
First I would like to extend my special thanks to my management
of Mr. Punit Rajput (Faculty, Management) Neelkanth Group of
Institution, Meerut. Affiliated to CCS University, Meerut, of
Management and Technology, for giving me the opportunity to do
the Marketing Research program.
I am also very grateful to my project guide Mrs. Deepa Verma
experience; guidance & support helped me in the successful
completion of the project.
I am grateful to him for his keen interest, valuable suggestion and
encouragement in the endeavor.
I am also thankful to all the respondents & other persons who gave
us their valuable cooperation & also to those who directly or
indirectly helped me during the project.
Without the help of all these respectable people, I would not have
been able to undertake this project successfully.
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STUDENT DECLARATION
I PRACHI PUNDIR student of BBA - VI. Neelkanth Group of Institution,
Meerut. Here by declared that the project report titled “NETWORK
MARKETING STRATEGY OF AMWAY” completed under the guidance of
Mrs. Deepa Verma (Faculty, Management) Neelkanth Group of
Institution, Meerut. Affiliated to CCS university, Meerut, as part of
Marketing Research Project is my original work for the partial fulfillment of the
requirement of Bachelor of Business Administration Degree.
Date: Prachi Pundir
BBA VI SEM.
Signature
ROLL.NO.6248521
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PREFACE
The motive behind this project, to know the retail marketing strategy adopted
by the companies in the market. I researched about companies’. In this
project I analyze these strategy and done the survey and give some
recommendation and their benefits to increase their effectiveness.
I dedicate this Project Report to my loving Mother and my family, who gives
me inspiration to do hard work in the life.
This project report highlights the company profile, their group of companies,
and survey about the strategy.
I am surveying the different market and residential areas like. There are we
find out the consumer awareness about the Network Marketing
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CONTENTS
 Introduction of Network Marketing 6-15
 Introduction of Amway Corporation 16-21
 INTRODUCTION of Amway India 22-56
 Objective of study 57
 Research Methodology 58-63
 Data processing & analysis 64-75
 Lamination 76
 Findings 77
 Recommendation 78
 Questionnaire 79-80
 Conclusion 81
 Bibliography 82
 Sources 83
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COMPANY NAME : “AMWAY”
TOPIC:
“NETWORK MARKETING STRATEGY OF AMWAY”
INTRODUCTION OF TOPIC:
Presently every company wants to reach directly to their customer
and networking is the one strategy of among other strategy which
makes it possible. It has in maintaining the companies of their
present and future customer market.
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INTRODUCTION OF NETWORK MARKETING
What Is Network Marketing?
It is a business about helping people, often called a people's franchise. It is
the unseen business, it does not have giant signs or large offices but yet
millions of people are working in this industry each and everyday.
In the 1950's when the Franchise emerged it was labeled a scam, illegal etc.
Fortunately a franchise is not labeled as such anymore or you would not be
enjoying your favorite hamburger today.
A network marketing business in reality is a business school; you are or
should be in a training program from day one. This truly is a Learn while you
earn Program. The training if it is quality training is life changing.
There are many different opportunities that in reality are a network marketing
company or MLM company, but they refuse to call themselves that. Each of
these companies are best described as a non-traditional form of business, so
what’s the difference. In a traditional business you have lots of overhead,
employees, health insurance for your employees, office rent the list goes on
and on.
Non-traditional businesses are generally worked from a home office. This
eliminates the high overhead of the traditional business. In today's high fuel
prices one can save up to several hundred dollars a month in just fuel costs
by not having to commute to a JOB.
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COMPARISON
Network marketing / Multi-level marketing (MLM)
in a short time. Generally the commission structure is less up-front then the
direct They usually offer reasonably priced products and services that people
consume sales companies, but it has a benefit that most direct sales
companies do not have and that is residual income.
• It costs less to get involved with this form of business, a few hundred dollars.
• Allows more people to become involved.
• Builds Residual Income.
Network marketing is about sales and distribution, but a different kind of sales.
Its more of a soft sale or recommendation then the hard closing type that your
accustomed to with the typical salesman or saleswoman in the direct sales.
Direct Sales Companies
These companies are known as seller-based, they market higher priced,
usually one time sales items. The benefits of these programs are you make
higher commissions but they have very little if any residual income.
Essentially if you stop working so does your income.
You are paid directly on what you personally sell, so you have to sell lots and
lots of merchandise. This also limits you to the type of people you can bring
into your business as the “salesperson” type. Direct sales cost more to get
involved with usually in the thousands of dollar range, again limiting you on
the number of people!
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WHAT IS DIRECT SELLING?
The sale of a consumer product or service through personal contact, away
from a fixed retail location or shop. Worldwide, the number of direct sellers is
growing at 220,000 per week.
MLM -a definition
Multilevel marketing allows sellers to build a business through their own sales
efforts and by inviting others to become sellers. Remuneration is based on a
seller's personal sales AND on the combined sales of those people they have
sponsored, trained and motivated.
Benefits to customers
This form of marketing goods or services directly to consumers takes place: at
the customer's convenience often in his/her home either on a one-to-one
basis, or in the context of a sales party Customers value the advantages of:
convenience personalized attention a good selection of products ability to
examine the products for a period of time protected by a customer refund
policy
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Benefits to sellers
Many of these people have chosen direct selling because they want to own
their own business, but do not have : considerable funds required to buy a
franchise or start a new company training time education Among the top five
reasons people sell direct are that they: like and believe in the product like
being their own boss, and working their own hours like the supplemental
family income or like making extra money for themselves feel that the harder
they work, the more money they can make enjoy selling and meeting people
Benefits to companies
In today's world of rapid change, direct selling offers companies: a direct
distribution channel that can be accessed immediately bypassing rigid and
costly traditional distribution channels 1
HOW DOES NETWORK MARKETING WORK
This is a business model whose time has come. It is literally the finest
example of the free enterprise system. Today there are millions of people
around the world building this unseen industry called network marketing.
You do not see them but they are everywhere, some probably right in your
own neighborhood. It is a business in which common people can invest a
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small sum of money and through sheer tenacity in determination rise to
staggering levels of financial reward and personal freedom.
But it requires education based on market tested results not the typical hype
found out here on the internet today!!!
Each and everyday millions of people report to work, where your employer
leverages your time to build his or her business and financial future.
In Network Marketing we help and assist others in building their business. We
are also leveraging their time, with each of us is gathering customers along
the way. Hence the name Network. We get paid for this because we are
assisting, coaching and helping them to establish their business. Helping
them to reach their goals for their financial future. So Its only right that we also
get paid for our time?
Just like your employer leverages your time, through network marketing you
can leverage the time of others. What does this mean?
Let’s take a look at a typical employer in a service industry with 100 or more
employees. That has a labor rate of 60 dollars per hour. The goal of our
employer is to keep each employee active and busy for each hour paid.
Out of this once all the costs of doing business are factored in such as wages
paid, health insurance, unemployment insurance, federal taxes, state taxes,
fica taxes, permits, maintenance, housekeeping, the list just goes on and on.
The employer may get to keep 5 to 10 dollars per hour of that labor rate.
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In Network Marketing, we have our initial start up costs anywhere from just a
few dollars to several hundred dollars. Where most network marketers fail is
they feel that they don't need a marketing budget for advertising, they don't
seek out the education required to succeed.
One of the important things to remember is, you are in a real business, and
you no longer have a boss holding you accountable. Your success or failure is
dependent upon you and your actions.
Your primary task will be to gathering customers for your products or services.
To help and assist others get started in their own business partnered with you.
You are looking at a business model that will take 3 to 5 years to produce
the kind of results you’re looking for.
So don’t give up your day job just yet. It will require 5 to 20 hours of
consistent time and effort each week to build a successful Network
Marketing Business. It will require a marketing budget; most people do not
even consider this. Once again this is a real business this is your business,
not a get rich quick overnight program, although it has been hyped by a great
many naive marketers and web sites.
Network marketing is based on word of mouth advertising which is the most
effective form of advertising. Think about it when you go out, watch a great
movie, you will go out and tell people about it. When Sam’s club or Costco
moved to your area, you joined their buying club and started telling everyone
how much you saved. This is the power of word of mouth advertising.
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Major advertising agencies and companies count on this. This is one of the
things that we do as network marketers. The major difference is that we get
paid for our word of mouth advertising.
One of the most often asked questions is, will I have to sell products and
services? The answer is of course yes. Think about it, no one likes to have a
salesman or woman come to the door and sells them products right. We hate
to go to the automobile dealers, where we are swarmed with 5 different sales
people all trying to get you to buy from them right!
So how are we as a network marketer different? We recommend products or
services that we like and personally use. If we know it’s good and personally
use it, recommending it to our friends and family is very easy.2
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THE OTHER SIDE OF THE NETWORK MARKETING
Ever been to an Oriflame presentation or for a Tupperware party?
Is there anyone who has not been approached by a multi-level "marketer"?
Most of the times, this new opium of the masses - “Multi-level Marketing”,
catches us unaware.
The concept - First, you sign up with the company. Buy a set of its products.
Start selling or recruit other people (your down-line) who encourage others, till
a chain is formed. Make commissions on what you sell, add to it a percentage
of the commissions of people in your down-line. From three percent to a
maximum of a huge twenty one percent!
Is that the scenario? Starry-eyed Indian housewives, wanting to make a mark,
get lured. The trouble is, however meagre their investment may be, at the end
of the day, the majority of them are in for a shock.
How is the magnet used?
What are the common lines used by distributors to get you into this network?
It’s a game of words. Smart quotes that are normally used to get you into the
network:
• "Be your own boss!”
• “Don’t get trapped in a 9 to 5 job.”
• “Offer a business opportunity to a friend.”
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• “If I can do it, so can you.”
• “Don’t worry, we are behind you.”
Pitfalls that you might get into:
• Having to face those you trapped.
• Feeling unwelcome in social circles.
• Difficulty of building down-line.
• Encountering difficulties in selling costly products.
• Having to use unsold stock yourself.
• Finding that the exhaustion of the market is fast and rapid.
Don't some people make money through MLM?
Yes, money can be made through MLM. However, this is restricted to the first
few in the system. It gets harder as time goes by and as the network grows.
The unfortunate "distributor" higher up the line is the loser. Once this
becomes apparent beyond all the slick videotapes and motivational pep talks,
people start to get a bad taste in their mouths about the whole situation. The
question is whether the money being made is legitimate, or "made" via a
sophisticated con scheme. If MLM is "doomed by design" to fail, then the
answer is, unfortunately, the latter.
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China banned MLM in 1998 for the following reasons:
1. The Chinese government thought that the products were too expensive
for its citizens.
2. Money was being lost in such schemes.
3. Companies opted out of selling products at retail outlets and
supermarkets.
4. The government felt that it was a disguised money chain.
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Essentials you must know before you sign up:
1. The Market
• Size of the market.
• How many people actually want to use these products? For instance,
Tupperware products are not doing so well, because there is no fixed
need for these products.
• How many people will buy goods that are priced four times more than
substitutes?
2. The Investment
• How much are you paying and for what?
• Minimum level of renewal fee or a deposit-back guarantee.
3. The Proper Timing
• When is the best time to join?
• This is a safe method of knowing how the company will perform later.
4. The Company and Product
• Where the company is’s nearest office? Who is the manager in-
charge?
• What is the range of products and their purpose? If you do not probe
now, it will be too late tomorrow!
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5. The Investigation
• Before signing on anything, check and re-check the details!
• Get the documents verified by your lawyer!
6. The Bottom line
If you feel good about it, take it on! Is Multi-Level marketing potentially
successful? The choice of whether or not to get into “Network Marketing”
is yours! Some succeed, some don’t! Consider all factors carefully and
match your abilities and objectives carefully before you jump in.3
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INTRODUCTION OF AMWAY CORPORATION
AMWAY GLOBAL
One by One
Amway is about helping people to live better lives, and nowhere is this more
important than with supporting our children. Children are our future, yet so
many suffer in so many ways. We are working to improve the well-being of
young people all around the globe through a program called the One by One
Campaign for Children.
Projects from One by One focus on local issues of education, health and
culture. For example, in China, a man who started a boat school for
fishermen's children keeps his dream afloat, and school in session, with our
help. In Thailand, we celebrate Children's Day by hosting an annual party for
more than 3,000 orphans. In India, our company helps print Braille textbooks
for blind children.
The One by One program has activities in more than forty markets combatting
child poverty in Africa, providing crucial care for children fighting cancer in
rural Mexico and Brazil, creating outdoor activities for disabled children in
Japan. We are, one by one, reaching out globally to make a difference in the
lives of children.
Our campaign has created so many wonderful individual stories and
continues to support a variety of market programs. To apply for a One by One
grant, please contact your regional Amway office.
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Amway Corporation
Amway Corporation was started more than 40 years ago by Jay Van Andel
and Rich DeVos. Its history grew out of an earlier business run by Rich and
Jay, who sold NUTRILITE™ supplements.
Beginning with a highly effective cleaning product that is still part of the
Amway product range, L.O.C.™ Multi-Purpose Cleaner, Amway expanded
rapidly, offering people the chance to become Business Owners selling
Amway's growing range of products. Amway quickly achieved the position it
still holds, as a global leader in multilevel marketing.
From early on, Amway was dedicated to providing quality products as the
foundation of an independent retail business. That dedication led the
company to invest in state-of-the-art product development processes,
supported by the finest quality manufacturing and distribution facilities to be
found anywhere in the world.
Today, our business operations reach into more than 80 countries and
territories worldwide and we support more than 3 million Business Owners.
We are part of an international organization with annual sales in excess of
US$6.2 billion and we offer more than 450 different company-branded
products and services globally.
We offer a unique business opportunity rooted in a vision of helping people
live better lives. It is an inspiration and an opportunity that is being taken up
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by millions of people all over the globe who see it as a way of achieving their
own personal and business goals.
Vision
Everyone needs a guiding vision to help direct their future. A business is no
different. At Amway, our vision is quite simple—we work each and every day
to Help People Live Better Lives. So how can we make a positive difference
to you and to others around the world?
By helping people everywhere to discover their potential and achieve their
goals, by offering better products and opportunities for the future, and by
sharing generously with the global community.
Helping Consumers Live Better Lives
• By providing products and services that offer superior quality and value
- to better meet personal and household needs around the world.
• By making the Amway shopping experience faster, easier, and more
convenient.
Helping Business Owners Live Better Lives
• By providing a business opportunity that empowers people to realize
their dreams.
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• By making that opportunity flexible enough to accommodate each
person's individual goals, priorities and interest.
Helping Employees Live Better Lives
• By providing a stimulating work environment that encourages everyone
to reach his or her full potential.
• By creating opportunities that help all employees fulfill their personal
and professional goals.
Helping Neighbors Live Better Lives
• Through corporate contributions that help improve the quality of life in
every community where we do business.
• By providing personal assistance to individuals in need—particularly
children.
Values
Amway has established some simple shared values that unite the entire
company, and all of the Business Owner organizations that are associated
with Amway. We believe that these values guide our actions and help us to
achieve everything we are capable of without compromise or harm.
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Partnership
Working in trust and confidence with each other to maximize everyone's long-
term success.
Personal Worth
Treating people fairly, respecting their unique qualities, and giving them
opportunities to reach their full potential.
Achievement
Encouraging and recognizing creativity, innovation, excellence and
accomplishment in all we do.
Personal Responsibility
Helping people to hold themselves accountable for achieving personal, team,
and corporate goals.
Free Enterprise
Advocating freedom and free markets as the best way to improve standards
of living worldwide.
The Leaders
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Chairman Steve Van Andel
President Doug DeVos
Senior Vice President,
Amway Corporation
Managing Director,
Amway International Jim Payne
Senior Vice President,
Amway Corporation
CEO,Amway Greater China
Chairman, Eva Cheng
Founders' Fundamentals
The way Amway does business was defined right at the outset by its
founders, Jay Van Andel and Rich DeVos. They outlined the ethical and
operational standards that continue to guide both the company and its
Independent Business Owners in all their activities. Those founding principles
are literally carved in stone outside the World Headquarters:
Amway will always offer HOPE to the individual, will support the fundamental
FREEDOM of people to determine their own future, allowing them the time
and resources to protect and nurture their FAMILY, and receive REWARD in
proportion to their efforts.
Amway is as proud of these principles as it is of more than forty years of
business success. In fact, the two go hand in hand. Amway wholeheartedly
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believes that the strength of its business is due in large measure to the
importance it attaches to these founding principles
The Amway Sales Plan
The Amway Sales and Marketing Plan is a low risk, low start-up cost business
opportunity that is open to everyone. It allows you to build your business
through retailing products and sponsoring other people who, in turn, can retail
products and offer the business opportunity to others. By passing your sales
and marketing knowledge to your developing team, you not only build your
own business network but also enable others to build one of their own.
The core of the Amway Sales and Marketing Plan's income opportunity is the
sale of quality AMWAY
TM
products and services to retail customers. As your
Amway business grows, the rewards you earn grow in proportion. The Amway
Sales and Marketing Plan does not compensate anybody for simply recruiting
others as Independent Business Owners.
The History of 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
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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. We have long had a
tradition of opportunity and success. Today, Amway is a multibillion-dollar
international business representing freedom and opportunity to millions of
people in more than 80 countries and territories around the world. We offer
over 3 million Business Owners the inspiration to grow those businesses, and
we work hard to provide new and better ways for them to achieve their life
goals.
1950s: A Solid Foundation
1960s: The Early Years
1970s: A Decade of Growth
1980s: The Billion-Dollar Decade
1990s: The Next Generation
2000s: New Horizons
INTRODUCTION OF AMWAY INDIA
AMWAY INDIA
Amway began in 1959 with two young entrepreneurs in the United States --
Rich DeVos and Jay Van Andel. Their concept for an innovative business
opportunity, centered around person-to-person marketing, established itself
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as a leader among one of today's fastest-growing industries. Today, more
than 3 million independent business owners distribute Amway products in
more than 80 countries and territories. Amway generates US$5 billion
(FY1999) in sales at estimated retail through this global product distribution
network. AWARDS As a corporate leader in promoting environmental
awareness and education, Amway received the prestigious United Nations
Environment Programme Achievement Award in 1989.
1950s - A Friendship Forms
1960s - The Early Years
1970s - The Decade of Growth
1980s - The Billion-Dollar Decade
1990s - The Second Generation
A Friendship Forms
Rich DeVos and Jay Van Andel's friendship actually began with a business
proposition, when Rich struck a deal with Jay for a ride to school for 25 cents
a week. After high school they entered the military, but they planned to start a
business together after separate tours of duty. A friendship formed and
became a business relationship that has lasted to this day.
The Early Years
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Amway quickly outgrew its original facilities in the basements of Rich DeVos's
and Jay Van Andel's homes. In its first full year of business, Amway's sales
were more than half a million dollars.
The Decade of Growth
As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the
aerosol plant and went on. The ' 70s began with sales of more than $100
million at estimated retail, and kept going strong. After a lengthy investigation,
the FTC verified that Amway is a genuine business opportunity and not a
"pyramid."
The Billion-Dollar Decade
The ' 80s will be remembered for the first Billion Dollar Year at estimated retail
in 1980. Building expansion at Amway World Headquarters continued at
breakneck speed as Amway scrambled to keep pace with demand, opening
its new cosmetics plant in Ada.
The Second Generation
As carefully planned by Rich and Jay, the second generation Van Andel and
DeVos families took the helm during the ' 90s. The Policy Board was formed
and Steve Van Andel and Dick DeVos succeeded their fathers as Chairman
and President. Distributors witnessed a similar trend, with the second
generation of many distributor families taking on important leadership roles.
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Amway promotes individual entrepreneurship through its innovative direct
selling approach of world class consumer products. Amway sources all its
products from within India, thereby providing stimulus to the local
manufacturing industry.
Business Opportunity
Amway promotes individual entrepreneurship through its innovative direct
selling approach of world class consumer products. Amway sources all its
products from within India, thereby providing stimulus to the local
manufacturing
CORPORATE CREDENTIALS
Amway India is a wholly owned subsidiary of Amway Corporation, Ada,
Michigan, USA. Amway Corporation is a 42 year old company, and is among
the largest Direct Selling companies in the world. It has a presence in 80
countries & territories. Established in 1995, Amway India commenced
commercial operations on May 5th, 1998. It is recognised as India's leading
Direct Selling company and has its Head Quarters at New Delhi. Amway has
invested in excess of US$35 million (Rs. 151 crore) in India of this, US$6
million (Rs. 26 crore) is in the form of direct foreign investment. Amway India
has over 220 full time employees, it has generated indirect employment for
125 persons at each of the contract manufacturers locations, and provided the
opportunity for self-employment to more than 200,000 active Amway
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Distributors, who are Independent Business Owners. Direct Selling requires
expertise and special skills. Using the benefit of Amway's leadership status in
the global Direct Selling industry, Amway India has in the past 12 months,
conducted over 8000 training sessions with an attendance of approximately
350,000 Distributors. Amway India is a founder member and Vice Chairman of
the Indian Direct Selling Association (IDSA). The IDSA is an industry
regulatory body, with several reputed international and Indian Direct Selling
companies as members. A retired judge of the Mumbai High Court is the
IDSA's Ombudsman & Code Administrator. Amway India was honoured by
the AICB Millienium Outstanding Service Award, 2000 by the All India
Confederation of the Blind in recognition of its sterling contribution to the
cause of India's blind. The Karnataka Welfare Association awarded Amway
India with the `Rising Business Star of the Millenium' during a ceremony held
at Bangalore during October, 2000.
NATIONAL PRESENCE
In a little over 2 1/2 years of commercial operation, Amway has established a
nationwide presence with 32 offices. Its distribution and delivery network, set
up with the support of independent total logistics partners, is spread across
375 locations.
MANUFACTURING
Almost all Amway India products are manufactured in the country through 3
third party, contract manufacturers (Sarvotham Care, Hyderabad ; Jejuplast,
29

Pune ; Naisa Industries, Daman). To bring the identified contract
manufacturers' production facilities and skills to international standard, Amway
has invested in excess of US$ 4 million (approx. Rs 17 crore*). The transfer of
this state-of-the-art, world class technology, has been free of cost.
PRODUCTS
With the exception of the Nutrition & Wellness and Cosmetics range, all
Amway India products/bottles are manufactured through 3 third party contract
manufacturers using world class technology and processes. The products
match Amway's global quality standards. They carry a tamper-proof seal and
a 'Customer Refund Policy'. If not completely satisfied with the product, the
consumer can return it for a refund. Amway products are environment friendly,
and are not tested on animals. Amway encourages the return of its used
product bottles for re-cycling and to prevent their misuse. At present, Amway
India's product portfolio comprises eight products in the Personal Care
category, Ten in the Home Care category and 3 herbals in the Nutrition &
Wellness category. The other products are two soft toys. Amway's product
range demonstrates its adaptability to the market based on a close, first-hand
understanding of the Indian consumer's nuances. An aggressive product
launch plan introduces new products every few months. In the coming
months, Amway will further expand its product portfolio through the launch of
several new coreline products.
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CORPORATE RESPONSIBILITY
Through its presence in India, Amway continues to enhance human resource
development using its experience in entrepreneurial opportunity and self
employment. Amway Distributors follow a Code of Ethics and Rules of
Conduct consistent with the World Federation of Direct Selling Associations
(WFDSA) which defines the goals, principles and responsibilities in building
and operating an Amway business. Amway has conducted several seminars
on "Entrepreneurial Development and Direct Selling" in concert with the
Confederation of Indian Industries (CII) and the All India Management
Association (AIMA) to educate popular opinion on the benefits of organized
direct selling.4
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PRODUCT CATALOG
•Nutrilite Protein Powder •Triple Guard Echinacea
•Siberian Ginseng •Glocosamine HCL
•Nutrilite Daily •Nutrilite Kids
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•Nutrilite Iron Folic •Nutrilite Kids - Berry Blast
•Nutrilite BIO C •Nutrilite Parselenium E
•Nutrilite CalMag •Nutrilite Natural B
•Car Wash •Dish Drop
•L.O.C. •Pursue
•SA8 Delicate •See Spray
•ZOOM •Leather & Vinyl Cleaner
•Buff Up •PreWash Liquid
•Silicone Glaze •SA8 Gelzyme
•G & H Body Lotion •G&H Body Shampoo
•Glister 5-in-1 Toothpaste •Satinique Dandruff Control
Conditioner
•Satinique Dandruff Control Shampoo •Satinique Shampoo and
Conditioner
•NatureShowerCremeHandSoap •New Advanced Persona Family
Toothbrush
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•Persona Talc •Persona Soap
•Glister Sweetshot •Glister Sweetshot Cinnamon
Artistry •Advanced Daily Eye Cream
•Time Defiance Nighttime Renewal Crème •Pure White Essence
•Time Defiance Daytime Protection Crème •Moisture Rich System
•Clarifying System •Moisture Intense Mask
•Polishing Scrub •Foundation
•Loose Powder •Skin Refinishing Lotion
•Body Definer Firming Gel
Attitude
About Attitude
•Attitude Face Wash •Attitude Sunscreen Lotion
•Attitude Cleanser •Attitude Toners
•Attitude Moisturisers
•APSA-80
SOCIAL RESPONSIBILITY
Amway Opportunity Foundation
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Amway Opportunity Foundation, or AOF for short, looks after the social
responsibility of Amway India Enterprises. AOF is a registered non-profit
organization - S 38980 of 2001 - registered under Societies Act. The
registration process was completed in March 2001. AOF has also been
granted relevant clearance from the Income Tax Authorities, in September
2001.
Though these formalities were completed in 2001, Amway had commenced
work in the social sector well before commercial launch (see section Mobile
Dental Clinic), under the banner of the AOF, which was then an internal unit of
Amway.
Amway's corporate vision is focused on the concept of helping people live
better lives. In all aspects of our products, businesses and social
responsibility, we strive to make a meaningful difference in the communities in
which we operate.
Consistent with this corporate vision, AOF sponsors organisations and
projects that empower people to lead better lives. We are particularly
interested in supporting groups that
• are committed to and work on social issues and causes
• work in the field of rehabilitation and education of the disabled, as well
as children
• carry out research on issues which have a larger impact on society
35

This translates into:
• Projects that demonstrate strong potential for making meaningful and
lasting change in the community
• Projects that focus on health, education, and rehabilitation of the
disabled, children as well as the underprivileged
• Projects in the vicinity of the Amway umbrella
• Proposals for personal causes, scholarships or loans, are not
considered
• Projects which impact the beneficiary as directly as possible
•
Thus, Amway's work in the social sector, through the AOF, has concentrated
on areas for children, the underprivileged, the differently abled, and the blind.5
Amway aims for 8% sales growth
HYDERABAD: Riding on the back of a diversified product portfolio, FMCG
company, Amway India Enterprises is looking for sales growth of around eight
per cent this fiscal at Rs 670 crore, said a senior company official.
"We are targeting a growth of 5-8 per cent in our turnover in September-
August 2002-03 from Rs 626 crore in the year ended September 2002 as we
are going to add more products to our range. We will also open 75-100 offices
36

every year," said William S Pinckney, CEO and Managing Director Amway
India.
The company, which sells directly to customers, has 36 products and 48
offices in several cities.
He said the company would also increase its focus on outsourcing products
from small units as part of strategy to indigenise.
Amway India has already started outsourcing 'Nutrilite Protein' powder from
Hyderabad-based Sarvotham Care, he said. In addition to that he said, "we
plan to start indigenous manufacturing of remaining products under 'Nutrilite'
brand in India soon. We have identified Sai Mirra Pharmaceutical of Chennai
as the new contract manufacturer".
The wholly-owned subsidiary of 5 bllion dollar US-based Amway Corporation,
Amway India entered the country in 1995 and has invested Rs 151 crore in
India of which Rs 26 crore is in the form of foreign direct investment.
Amway India manufactures 36 products under categories like home care,
personal care, nutrition and wellness, and agriculture.
Amway launches commercial operations in India
Initial Range of Six Amway Products Launched
New Delhi, May 4, 1998
37

Amway India Enterprises (AIE), the wholly-owned member of the Michigan-
based, US$7 billion Amway Group of companies, today announced the
commencement of commercial operations in India starting May 5, 1998.
Amway provides every individual the opportunity to build, own and operate a
business based on its pioneering Sales & Marketing Plan.
Speaking on the occasion, Stephen A. Robbins, Managing Director, Amway
India Enterprises, said, "We are enthusiastic and excited about our launch in
India. Both as a market and as a people, India demonstrates a strong
entrepreneurial spirit. We are proud to present the Amway Opportunity to
millions of Indians."
Amway’s introductory product range comprising four home care and two
personal care products will be available to Distributors at the Amway
Distribution Centres (ADCs) or through tele-service, as will Starter Business
Kits for new Distributors, containing products, training materials, and sales
literature.
Amway’s homecare products comprise LOC* High Suds Liquid Organic
Cleaner, Dish Drops* Hand Dishwashing Liquid Detergent, Amway Zoom*
Spray Cleaner Concentrate, See Spray* Window Cleaner Concentrate. The
personal care category has Amway G & H* Body Lotion and Satinique 2- in-1
Shampoo and Conditioner.
A significant portion of Amway’s investment has been towards transferring
state-of-the-art technology and processes to third-party manufacturers from
38

the small and medium-scale sectors for the indigenous production of its
product range. Towards this, Amway has assisted its three manufacturing
partners: the ISO 9001 certified Jejuplast at Pune; Naisa Industries at Daman;
and the Hyderabad-based Sarvotham Care to achieve benchmarking levels of
product development, engineering and quality. These facilities are equipped
with the most advanced machinery and world-class technologies for
production, packaging, and water filtration. Amway scientists and engineers at
the India Technical Centre assist in the processes of technology transfer and
quality control.
All Amway products carry a guarantee of quality and performance under the
‘Product Return Policy’ formulated by the Amway India Quality Assurance
Department.
Amway will support its independent Distributors with five full service Amway
Distribution Centres (ADCs) at New Delhi, Bangalore, Chennai, Calcutta and
Mumbai. ADCs will operate as product selection centres for Amway’s entire
product range and as training centres for Distributors.
Amway has appointed Sembawang Shriram Integrated Logistics, and
Mumbai-based First Flight Couriers as its ‘Total Logistics Partners’ for home
delivery of Amway products across 151 cities in the country.
Established in 1995, Amway India Enterprises (AIE) is a wholly-owned
member of the Michigan-based Amway Corporation, a pioneer in multilevel
39

marketing. A founding member of the Indian Direct Selling Association (IDSA),
AIE aims to revolutionise the direct selling industry in India.
Consistent with its worldwide corporate commitment to enhance the quality of
people’s lives by sponsoring socially relevant projects in every market in
which it operates, AIE has established the Amway Opportunity Foundation. At
present, the Foundation’s activities comprise the funding of a Mobile Dental
Van for the Rotary Club, Delhi and a partnership programme with the All India
Confederation of the Blind to sponsor the printing, production, and distribution
of Braille text books to blind students. More recently, Amway has endowed an
Amway Chair on Entrepreneurial Development at the University of Delhi.
Amway Corporation, one of the world’s largest direct selling companies, is
located in Ada, Michigan, USA, and offers anyone the opportunity to have a
business of their own. More than 3 million independent business owners in 47
affiliate markets have embraced the Amway business opportunity. Amway is a
leading manufacturer of consumer goods, with global sales reaching US$7
billion for the fiscal year ending August 31, 1997.
AMWAY AIMS FOR US$345MLN TURNOVER FROM INDIA 6
KOLKATA - Amway India, a leading FMCG company and a subsidiary of the
US-based Amway Corp, said it expected sales to grow to Rs 15 billion
(US$345.6 million) in the next few years from the present Rs 6.36 billion.
40

"Currently the Indian operation of Amway Corp is among the top ten in 56
countries and I think we can be among top five in the coming few years,"
Amway India's managing director and CEO William S Pinckney said.
Speaking to reporters after the launch of its products in the over Rs 3.25
billion Premium Skin Care segment, Pinckney said a sales of Rs 15 billion
annually would put the Indian operations among the top five in the world.
Amway India has targeted a Rs 700-crore turnover by the end of this fiscal
(September to August 2005). The company had achieved a turnover of Rs
636 crore in 2003-04, which was a 10 per cent increase over the previous
year.
CEO and managing director William Pinckney said he expects business to
grow by 5-8 per cent this year.
The Indian direct selling market is estimated at Rs 2,300 crore and is growing
at the rate of 30 per cent annually.
“We have established ourselves in the nutrition and wellness category in India
and plan to consolidate our position in the cosmetics segment,” said
Pinckney. “With this aim we have launched Attitude, the premium range of
India-specific products.”
The overall Indian cosmetic market is estimated at Rs 1,850 crore. Of this, the
skin-care segment is around Rs 1,300 crore and colour-cosmetic segment Rs
550 crore.
41

“We have entered the Rs 325-crore premium skin-care segment. The key
feature of the Attitude brand is that it has been customised for the Indian
needs,” Pinckney said. “Not only are the products indigenously branded and
packaged, but also manufactured locally as against others that are
outsourced from overseas.”
Amway already has the Artistry brand in the Rs 65-crore super-premium
segment. “With the premium product, we plan to tap the potential markets in
the mini metros and larger towns across the country,” Pickney said.
“Currently, our reach is restricted to metros.”
Amway has invested Rs 151 crore in the Indian operations since its entry into
the country in 1998. Its products fall under four categories — nutrition and
wellness, personal-care, home-care and cosmetics.
Pickney ruled out setting up the company’s own manufacturing facility in India.
However, outsourced manufacturing operations would be further spruced up
to increase the India-centric product mix, he added.
Amway India hopeful of achieving 15 pc growth in turnover7
AMWAY India Enterprises is hopeful of achieving a 13-15 per cent turnover
growth in 2002-03 over last fiscal. In 2001-02, the direct-selling personal care,
home care, nutrition products and cosmetics company recorded a turnover of
Rs 625 crore.
42

Stating this here today, Mr Sanker Parmeswaran, Director (Corporate Affairs)
of Amway India Enterprises, said the direct selling industry in India was
growing by around 15 per cent per annum. Mr Parmeswaran was here to
announce Amway's foray into the basic skin care products segment.
Amway India, a subsidiary of the $5-billion-turnover Amway Corporation,
today announced the launch of the Artistry brand of cleansers, toners and
moisturisers. The three products — with two variants of each for different
types of skin — will initially be imported before being sold in India.
Mr Parmeswaran said the skin care segment was expected to be one of the
fastest growing categories in the market for skin care, cosmetics and beauty
care products. Amway India is hopeful that Artistry would become Rs 100-
crore brand in the next three to four years.
According to him, the domestic cosmetics market has been pegged at Rs
1,700 crore. Of this, Rs 1,200 crore, about 71 per cent, is accounted for by
skincare products. The market for skin care products is estimated to grow at
18-20 per cent annually and be of the order of Rs 2,300 crore by 2005-06.
Amway has already invested $35-million on its Indian operations. At present,
its footprint in India extends to 400 locations and it engages 3.5 lakh
distributors.
43

INDIA BUSINESS WORLD - FEBRUARY 2002
THE MONTH THAT WAS
AMWAY PLANS CUSTOMIZED GOODS FOR INDIAN MARKET
INDIA will be one of the five largest markets for Amway by 2007, according to
Amway India MD William S Pinckney. Amway officials except the Indian
operation turnover to quadruple to Rs. 2,000 crore in the next five years.
The company is revamping its distribution set-up in India by overhauling its
supply chain. Amway has abolished its central warehouse in Nagpur and has
opened regional warehouse at Bangalore, Kolkata, Delhi and Mumbai. The
warehouse will be serviced directly from the manufacturing units and would
cater to the requirements of their respective regions.
Official’s feel restructuring of the distribution set up would lead to substantial
cuts in freight costs. By August, Amway India plans to open 14 new offices to
increase its reach to 450 locations. This would take the number of Amway
offices to 54.
To suit the Indian market condition, the company has packed its products in
different sizes commanding different prices so that the consumer can choose
the product according to his need and pocket.
44

“ The intention is that the product does not get costly for the consumer. The
Indian consumer wants quality at costs which he can afford,” says Mr.
Pinckney.
Currently, the company has 30 products in four category viz. personal care,
home care nutrition & wellness and cosmetics. The company is looking to
increase the number to 45.
“We will shortly introduce products which are tailor-made to suit the Indian
specifications,” he said.
Mr. Pinckney said India is an important market for Amway with its huge
untapped potential.
According to the figures provided by Indian direct selling association, the
Indian direct selling market grew by 53.5 per cent in 2000-01 with the turnover
in this fiscal touching Rs. 1,374 crore.
Amway to develop India specific cosmetics brand — Nutrilite
now co's top-selling product 8
AFTER Persona - its first personal care product created for the Indian market,
the Rs 625-crore direct selling company Amway India Enterprises, is now
working out the blueprint plan for its second product line to be developed
specifically for the domestic market.
"We are in the process of creating an India-specific cosmetics brand. The idea
is to create a local cosmetics brand developed and manufactured in India," Mr
45

William Pinckney, Managing Director & CEO, Amway India, told Business
Line.
Since the manufacturing of the new cosmetics product line will be entirely
indigenised, the product is likely to be priced about 50 per cent cheaper than
Artistry - Amway's super-premium cosmetics product line, Mr Pinckney said.
The Artistry range, meanwhile, will continue to be imported. While the Artistry
range in India currently includes select super-premium specialist cosmetics
products, a new skin-care range will be added to the Artistry portfolio early
next year.
Mr Pinckney added that Nutrilite protein powder had become Amway India's
top-selling product now. He attributed this to local manufacturing of the
product. Nutrilite was initially imported but subsequent to local manufacturing,
the product's prices have been rationalised. Nutrilite, incidentally, is the
world's largest manufacturer of branded vitamins and mineral supplements in
tablet form.
Nutrition and wellness has been identified as one of Amway India's key
product categories and has overtaken personal care as the company's leading
product categories, Mr Pinckney said. According to him, the nutrition and
wellness category now accounts for 37 per cent of the company's turnover,
followed by personal care and home care both of which contribute about 25
per cent each to its turnover.
Meanwhile, the company is set to appoint its fifth third-party contract
manufacturer. While two manufacturers are in Hyderabad, the other two are in
46

Daman and Chennai. With the exception of cosmetics, the company is
working towards achieving local manufacturing of its entire product portfolio,
Mr Pinckney said. He ruled out the possibility of the company setting up its
own production facility in India for the time being.
"The only country outside of the US where we have our own manufacturing
base is China. The volumes have to justify investments in setting up our own
manufacturing base," he said.
On the possibility of extending other products in its portfolio to small unit
packs (as it has for Satinique shampoo), Mr Pinckney said, "The only other
product category which would justify small unit packs is our vitamins or herbal
product range. We could consider introducing these in small-unit bubble
packs."
47

Deceptions, Misrepresentations, and Half-Truths found in the
Amway Business
Here are some that I have found so far. If there are more to add or if you wish
to debate any of these issues (with supporting evidence), please let me know.
Unlike traditional retail outlets, Amway does not use middlemen to move their
products. .
Also, unlike traditional retail outlets, Amway does not advertise their business
opportunity on the TV or radio. By not advertising this way, Amway creates a
large amount of money that is made available to distributors in the form of
bonus checks. Amway "deals with over 2,000 major manufacturers, most of
which are "Fortune 500" companies" (actual quote from a distributor). Or,
Amway "does business with" 90% of the "Fortune 500" companies.
Distributors can save 30% off the retail price of products by shopping through
the Amway catalogs.
Distributors use the Profiles of Success to show off the people who have
become successful in the Amway business. Diamonds have a wonderful
lifestyle since they have lots of free time.
By building an Amway business, a person can earn enough money to have a
completely debt-free lifestyle. The statement "Amway does not use retail
stores to sell its products" has become untrue. In July of 1998, Amway was
forced to open retail stores or be forced out of China. Amway's "Canadian Tax
48

Fraud Scandal"- was Amway the victim of Canada's Revenue Department or
guilty of the largest criminal fine in Canadian history? . Since Amway's "D&B
rating is the best you can get" (actual quote from a distributor), a person
should join the business. "ha, ha. Amway did $7 billion in revenue" (an actual
quote from an e-mail). Amway's 1997/1998 revenues were not even close to
this number.
The first statement, that "Amway does not use middlemen to move their
products," is untrue since (until recently) distributors ordered products through
their sponsor to their sponsor to their sponsor to their Direct, who orders from
the RDC. Products are then delivered from the RDC to the Direct to the
distributor to that distributor on down the line to the last distributor. Payment of
product is also made in this way: you pay your sponsor who pays his sponsor,
etc. Granted, there is no cost-markup along the line, but is this really the
elimination of middlemen?
In a majority of groups, however; distributors have enrolled in a service called
ARP. Using this service, distributors can both order products and receive their
bonus checks directly from Amway. This service, then, can be seen to
eliminate the middlemen, but keep in mind that not all groups have authorized
their distributors to order this way. There are still a number of groups who
have not transferred to this service.
49

Also, the distribution of tools has not changed- they are still 100% distributed
by middlemen. If you need to purchase a particular audio tape, you must
order it from your sponsor who orders it from his sponsor, etc. Payment is
made the same way. Of course, no one below the level of Profit-Sharing
Direct is making any money in this chain, but there is still time and labor
involved. But, from the level of Diamond to Profit-Sharing Direct, each
distributor adds his own mark-up to the audio tapes. This raises the price of
each tape from the manufacturing cost of less than $1.00 to a final, selling
cost of $6.00 or $7.00.
What would happen if each distributor below the Profit-Sharing Direct did the
same thing? Would the person at the very end of the line have to pay $10.00
for a single tape? Remember, unlike the Amway products, tapes have no
value outside of the business. The last distributor in the line can not resell the
tapes to a retail customer. So, then, when is this considered an illegal pyramid
business? Of course, distributors don't count the tools system as having
"middlemen" since tools are not produced by Amway, but produced by the
AMO's.
The second statement told by distributors that "Amway does not advertise on
the TV or radio" is now 100% FALSE. According to the December, 1997
Amagram:
50

"Amway and distributors in Sacramento, California, and Raleigh/ Durham,
North Carolina, teamed up for a new phase in image advertising last year, and
the success of those inaugural regional campaigns means more blitz ads are
scheduled for 1998. The objective of the first two campaigns was to determine
whether sales and sponsoring could be improved with a focused advertising
effort. The answer was yes on both counts after the TV, radio, billboard, and
print messages about the Amway business opportunity appeared." (emphasis
mine)
Where does Amway get the money to pay for this advertising? Does this
mean there will be less money available for distributors' bonus checks? Or will
it mean less of an increase in the bonus checks in the coming years? Will
their campaign start to spread to other markets besides Sacramento and
Raleigh/ Durham? The tough question is this: why does the world's largest
MLM business, with its "explosive growth," feel the need to advertise their
business opportunity on the TV and radio? If MLM is indeed the "wave of the
future," why advertise like non-MLM companies? I though Amway always
prided itself on only using "word of mouth advertising." And since the article
states that both sales and sponsoring were improved by the advertising, why
even have the distributors go through the trouble of contacting people? Just
place more advertising on the TV and radio and save the distributors a LOT of
hard work.
51

To be fair, though, Amway has been advertising its Double X and Nutrilite
products on TV during basketball games. They have also been advertising in
magazine print ads (such as Time, Newsweek, Money, etc.) asking people to
learn more about the products and corporation. But they have never
advertised the Amway business opportunity on TV or radio before.
Over and over, distributors claim that Amway "deals with 2,000 companies,
most of which are "Fortune 500" companies"- a statement which is only
partially true. Why do distributors exaggerate this number? To make the
Amway business look more reputable or more diverse in its product offering?
First, a basic fact: home cleaners, personal care items, etc. are only available
in the Amway-brand label, without competition from any other manufacturers.
You will NOT see Tide-brand laundry cleaner or Prell-brand shampoo or
Ivory-brand soap or Crest-brand toothpaste. (As a side note, you'll never see
Tide or Crest ever offered in an Amway catalog- those products are
manufactured by their biggest competitor: Procter & Gamble.) Does Amway
do this because their products are so much better than everyone else's or
does Amway enjoy its monopoly over its distributors?
Yes, Amway does do business with over 2,000 major manufactures like
Panasonic, Coca-Cola, Braun, and others. But, these companies have merely
let Amway sell their products through the various catalogs. This is the sum
total of the relationship between the companies. A number of these
52

companies have written letters stating their corporate policy: "Amway is only a
reseller of our products and no joint venture or partnership of any kind should
be implied." (quote paraphrased) Of course, it makes perfect business sense:
if you had access to Amway's (claimed) 3 million distributors, who would buy
and sell your products instead of your competitor's, would your company be
interested? But why do distributors (especially speakers at Open meeting)
continue to claim that Amway has "joint-ventured" with these companies?
The misrepresentation can easily be spotted in the second half of the above
statement. If you assume the words "most of which" to mean 'a majority of the
total,' this would translate into 51% or more of the total number. In turn, this
becomes 51% of 2,000 companies which would equal over 1,000 total. By
definition, there are only 500 "Fortune 500" companies. Therefore, there is no
way that "most of" the 2,000 companies Amway deals with are "Fortune 500"
companies.
Along the same argument, many distributors have claimed that Amway does
business with 90% of the "Fortune 500" companies. This translates into 450
out 500 companies (90% of 500). If you were to look at the actual listing of the
"Fortune 500" companies published yearly, there are quite a number that
would not be able to even do business with Amway. These include: software
manufacturers, oil companies, and other non-consumer-product companies.
Then, how many "Fortune 500" companies does Amway have the ability to
deal with? I don't know the actual number, but a number of critics have placed
53

the estimate around 20-25%. The percentage is smaller when talking about
the actual number of companies whose products are in the Amway catalogs.
This is very different than the 90% claimed by distributors.
As a side note, I have made a list of every company found in the following: the
sales & marketing plan, the 1998 "Spring & Summer" catalog, and the 1997-
1998 "Personal Shopper" catalog (Amway's main catalog). If you count how
many companies I have listed, the total comes to just over 450. Now, keep in
mind that I have not counted the companies in any of the other catalogs such
as: the "Steak" catalog, the "Major Appliance" catalog, the "Christmas" catalog
or the "Office Supply" catalog. Also keep in mind that most of the companies'
products found in the "RDC/ Service Center" catalog can also be found in the
"Personal Shopper" catalog. And, also keep in mind that the products found in
the "Coreline/ Products & Services" catalog are ONLY Amway-brand. The
conclusion is this: if I have found only 450 companies in the main catalogs,
can there be another 1,550 companies in the secondary catalogs I have
missed? Or is the claim, "Amway deals with 2,000 companies," just another
deception by distributors?
Almost every distributor claims that "by becoming an Amway distributor, you
can save 30% off retail price" by purchasing items in the Amway catalogs
instead of the local store. In reality, there is evidence that distributors actually
pay about 40% MORE for products. And don't forget the postage costs to
54

have the items "conveniently" shipped to your house. Rather than debate this
issue, I am going to refer you to entire web page dedicated to this one lie.
I will start this section by saying that Amway does not condone nor allow the
use of the Profiles of Success as an aid in sponsoring. Second, the incomes
in the Profiles of Success are grossly misrepresented. As a number of
lawsuits contend, Diamonds make a vast amount of their "Amway income"
from the sale of tools. Therefore, for distributors to claim that the lifestyle
shown in the Profiles of Success is typical, is nothing more than a lie. By
using the Profiles of Success, distributors can lead prospects to believe that
they too can have the wealthy lifestyle of the Diamonds. And if prospects
need a "moving" version, the Diamond will probably have a "lifestyle" video
produced at the same time his Profiles of Success information is created.
According to sources who have worked with some Diamonds, many items
shown in the pictures are completely fraudulent. A number of the cars were
leased or even borrowed- instead of owned. In one case, the big home behind
the Diamond was actually the house he had just sold, but the picture implied
that the house was his. Boats and motor homes may be rented for the photo
shoots as well. Why go to these lengths for a few pictures or a video? The
fabulous lifestyle shown in the pictures will lend more credibility to the Amway
business- "If all these people are making money, then it must be a good
business."
55

Chances are good that most distributors are not aware of these facts.
Chances are good that many Directs are not aware of these facts. Since they
have not been taught otherwise, these distributors strongly believe that the
material items surrounding the Diamonds have been purchased with only
Amway bonus checks. Ask yourself this question: can a Diamond making
around $115,000 afford the numerous cars, the large house, or other material
goods. Chances are, he can MORE than afford them if he makes over
$115,00 + $916,000 a year.
Contrary to what most distributors believe (and teach others), Diamonds do
not have lots of free time. According to one critic, Diamonds "have the LEAST
amount of free time." Instead of "retiring," a Diamond's time is spent
motivating and working his group, speaking at meetings and functions, and
traveling to company seminars and upline meetings. My own Diamond would
tell stories about how his upline would call him to tell him to change his plans-
they were going on a trip. And if he declined the "invitation," would the tools
bonus stop? How can you plan your life if you worry your upline could change
those plans at the last minute? Is this the "great life of freedom" distributors
always talk about? Another critic had personally witnessed his Diamonds
leaving their children to speak at yet another function. Those Diamonds even
missed Christmas with their children in pursuit of the speaking fees. It makes
a person wonder what Diamonds feel is more important: spending time with
their children or continually pursuing the money? And these are the same
56

people who tell distributors to keep building the Amway business so they will
have more time to spend with their own children.
There have even been allegations that Diamonds have to continually "kiss up"
to their upline to insure the tools money doesn't stop. Yes, "kissing up" to your
boss may take place in the corporate world, but if you don't like your boss, you
can get a new job. What can Diamonds do for a living if they quit the Amway
business- assuming, of course, that they can quit? First of all, it is almost
unheard of for a Diamond to leave the Amway business. By the time people
have reached that level, they have grown accustomed to the constant
edification and worship from their downline. If they were to leave the Amway
business, they would become just another employee. What would happen to
their ego then? Also, most Diamonds have given up control of their business
to their support staff- either by choice or because that's what "expected" of a
Diamond. Therefore, a lot of Diamonds may have lost any business skills they
once had. What would happen if they applied for a "real job" then? This could
be the reason Diamonds tell distributors it is so terrible to leave the business-
they couldn't survive themselves!
Whenever a person is approached to build an Amway business, distributors
represent that, by building an Amway business, a person can achieve a "debt-
free" lifestyle. By building the business, the person will have more than
enough money to pay off ALL their bills: mortgage payments, car payments,
57

credit card bills, and any loan payments. When the bills are paid, the person
will be completely debt-free.
It is my contention that a person can never truly have a 100%; quot;debt-free"
lifestyle. There will ALWAYS be monthly bills that create debt, even
temporarily, such as the telephone bill, the utility bill, or the cable bill. Yes,
these bills are completely paid within a month, but for that time, there is still
debt.
A more accurate statement would be to say that a person could make enough
money to have an almost debt-free lifestyle. Instead, though, distributors lead
people to believe that all their debt will disappear if they work long enough at
building the business. (Never mind the fact that some critics contend that
building an Amway business creates more debt than it cures.)
I know that this point may be "nit-picking," but it is "one more thing" that adds
to the overall picture of the Amway distributors. They make so many claims
that it becomes hard to tell which are true, which are "bending the truth," and
which are just lies.
Ever since Amway was created, its distributors prided themselves on the fact
that they were "unique" or "different"-- they didn't need retail stores to sell
Amway's products. Going door-to-door or recruiting neighbors or contacting
strangers was always enough. Until July, 1998, that is.
58

Due to pressures against the MLM industry, Amway agreed to the Chinese
government's decision that all MLM business were to switch to retail-selling or
leave China. Following behind such other MLM companies as Avon and Mary
Kay, Amway converted its distribution centers into retail stores. Customers
are now free to purchase products without using a distributor.
According to an article in the July 22, 1998 issue of the Orlando Sentinel:
"Amway Corp. will be allowed to sell dish soap, window cleaner and other
products in China. But the sales won't solely be through its door-to-door
suppliers. Under a new system, Chinese customers will be able to shop at
Amway retail stores, which are currently used as distribution centers. They will
also be able to buy products from their distributors. In April, the Chinese
government banned Amway Asia Pacific Ltd. and other direct marketers from
door-to-door sales. Authorities were concerned such sales would promote
illegal activity, including smuggling, the state-run news agency said. Under the
deal, customers who pay a fee will be eligible for bonuses on the products
they purchase, the same way Amway salespeople in other parts of the world
receive bonuses. Customers who pay the fee can also join the sales force."
And from the July 22, 1998 issue of the South China Morning Post:
Amway said its operations had resumed in 14 provinces and four cities,
employing about 1,300 employees, about 100 less than when it closed on
April 22, when Beijing announced a blanket direct-selling ban. It plans to
combine retail outlets with a team of sales representatives, expected to be the
59

group who previously conducted direct marketing. For a fee, clients can
become privileged customers, enabling them to buy products at a discount.
"The company is only allowed to sell to the product's end user, meaning it
retains legal right to the product and it cannot be sold to the sales person,"
[spokesman Mr. Herbert] Ho said. "No direct marketing is permitted at all, so
we have to be very clear about the new rules," Mr Ho said. However, at one
Beijing retail outlet, sales people appeared to be in some confusion over the
regulations. Mr Ho said the activity this former sales representative described
was improper, as sales people were not allowed to buy products before
selling them.
However, he said that problems or confusion about the new company rules
that might arise would be resolved easily, as the new rules of operation had
been clearly announced and all prices were fixed and prominently displayed.
He said that former sales representatives would have to get used to the new
rules. Beijing banned direct marketing following the discovery of widespread
abuses, fraud and illegal schemes - such as pyramid selling - and declared
the market was not yet ready for it.
To compound matters, Amway President Dick DeVos flat-out lied to the press:
From the HONG KONG, July 20, 1998 /PRNewswire/:
We are honored to be the first company so approved for business resumption
by the national government and are gratified by the trust and confidence
60

which the Chinese government has in Amway's ability to train, develop and
manage a responsible and effective sales team." (emphasis mine)
Compare this with an earlier June, 1998 South China Morning Post:
"Avon Receives Approval to Resume Operations in China [on] Friday, June 5,
1998 10:01 AM"
From the NEW YORK, June 5, 1998 /PRNewswire/:
"Avon Products, Inc. (NYSE: AVP) announced that it has received today
Chinese governmental approval to resume operations in China as a
wholesale and retail business, and anticipates being operational by June 15
[1998]."
How can Amway be "the first company so approved for business resumption"
when Avon was approved by the Chinese government almost 3 weeks earlier,
and then started operations 1 full week before Amway? Are DeVos'
statements merely "spin-doctoring" (to explain a potentially disastrous
situation) or outright lying? And if the president of a corporation lies about its
operations, does that really inspire the public's trust? For Amway, DeVos
should do whatever he can to improve Amway's tarnished public-image.
To clarify the situation, Dexter Yager made these statements in a public-
relations announcement:
61

"Amway China is viewed as a normal retail sales company with "Sales
Representatives" and "Sales Managers" working for the company in approved
areas of China. Amway is not viewed as a "special business opportunity" with
"independent business distributors" building a personal business." (emphasis
mine) "The China and Hong Kong markets are now two separate, individual
markets with no [line-of-sponsorship] links." "Amway will conduct retail sales
to anyone that enters an Amway shop and asks to purchase product."
"Amway no longer uses distributors. Amway now has employees and
customers..." "It will no longer be necessary to purchase an Amway Starter
Kit- 700 RMB ($85.00 USD) to join the Amway business in China."
What happens if Amway's sales increase due to this shift to retail selling?
Would Amway decide that they could further increase its profits by doing the
same in the United States? Could this be the end of Amway's distributor force-
are distributors really needed if retail stores can sell more products? Or could
this mean that Amway will take control of the products, leaving distributors
free to concentrate on selling tools to build their own "motivational"
businesses? Then again, this whole point could be moot when Amway's
Internet-based, "sister company," Quixtar, starts to fully operate.
Almost every distributor has heard the rumors, but not many know the entire
truth behind the Amway/ Canada tax case. Distributors learn the "Amway-
accepted" version of the story- a version that tells how Amway was a victim of
62

complex tax and tariff regulations and how, in a show of "ethics," founders
Rich DeVos and Jay VanAndel "generously" returned to Canada to face the
charges against them.
"From Promises to Keep, by Charles Paul Conn
The twenty-five million-dollar fine to which you refer was a result of a customs
dispute between Amway and Revenue Canada, the branch of the Canadian
government which collects tariffs. The dispute was a complicated one which
began in the 1970's, when Amway first began shipping products from its
manufacturing plant in Michigan across the international boundary to its
distributors in Canada. By the time all this legal maneuvering was over, tens
of millions of dollars were at stake, and the fine, when it was levied, was a
very large one. Even in Canadian dollars, twenty-five million is plenty."
Yes, the dispute was "complicated," since the government would later find out
that the Amway Corporation had created "dummy" companies to circumvent
the import laws. The government also discovered that Amway had created
these companies willfully, for a number of reasons. Conn's "Amway-approved"
version is an extreme watered-down version of what actually happened. In
fact, DeVos and VanAdel were almost extradited by the Canadian
government if they failed to face the criminal charges against Amway.
"From Amway And Canada- The Judges Report, Gaylen J. Baker, The
Reformed Journal, September 1994.
63

On November 10, 1983, before Chief Justice Evans of the Supreme Court of
Ontario, the Amway Corporation and Amway of Canada Ltd. pleaded guilty to
charges of criminal fraud and paid a C$25,000,000 fine, the largest ever
imposed in Canada. The crime was tax evasion. The Canadian court upheld
the government's claim that by means of fake and fictitious invoices and price
lists and the creation of a dummy corporation, the Amway companies had
defrauded Canada out of amounts in excess of $28,000,000."
Make no mistake about the court's conclusion: Amway was found guilty of
willfully, fraudulently, and criminally cheating the Canadian government out of
millions of dollars.
To read more information about this story, please go to The Canadian Tax
Fraud Scandal (reprinted from Sidney Schwartz's "Amway: The Untold Story"
website). This article goes into much more detail than can fit into this section.
What is "D&B?" It stands for the Dun & Bradstreet company, a financial
company that rates the credit risk of corporations. This rating is used to
determine whether or not a corporation should be lent money. Now, I can't say
if Amway's D&B rating is good or bad because the Corporation does not
release that information to the public (which includes Amway distributors). (I
64

am assuming Amway's rating is excellent since distributors make a point of
stressing how the Corporation is "debt-free." And, since Amway is "debt-free,"
no one should have to lend them money. Doesn't this mean their D&B rating
is irrelevant?)
To further this point, I'll let Amway's Business Manual speak for itself:
Business Regulation 3: Use of Dun & Bradstreet Reports Is Prohibited
Dun & Bradstreet financial reports and ratings are not to be used in the
course of sponsoring new distributors. All Dun & Bradstreet financial reports
and ratings are confidential, reserved for the exclusive use of subscribers.
Using such reports and ratings in sponsoring could result in Dun & Bradstreet
refusing to rate Amway in the future. While using these reports and ratings is
prohibited, we encourage you to stress Amway's financial soundness in your
sponsoring efforts.
I wonder what would Amway do if they found distributors were using Dun &
Bradstreet ratings in Open meetings? Probably nothing. But, what would Dun
& Bradstreet do to Amway if they discovered distributors were promoting
Amway's rating as a way to further bolster Amway's "financial soundness?"
Look at the last sentence of the first paragraph: "Using such reports... could
result in Dun & Bradstreet refusing to rate Amway in the future." I suppose
distributors are counting on the fact that Dun & Bradstreet will never find out.
Recently, I received a short e-mail from a distributor "laughing" at me due to
the fact that he claims Amway's revenues were around $7 billion for the
65

1997/1998 fiscal year. On October 26, 1998, Amway announced its official
figures. Please note that the word "revenue" is not mentioned at all, but is
referred to as "estimated retail sales":
AMWAY ANNOUNCES ESTIMATED RETAIL SALES OF $5.7 BILLION
ADA, Mich., Oct. 26, 1998 -- Amway Corp. today announced global estimated
retail sales of $5.7 billion for the fiscal year ended Aug. 31, 1998, a decline of
more than 18 percent from estimated retail sales of $7 billion the
previous year. [emphasis mine] This figure represents the combined results
at estimated retail for the 49 affiliate markets supported by privately owned
Amway Corporation and its publicly traded sister companies - Amway Asia
Pacific Ltd. and Amway Japan Limited - which announced their annual sales
separately during the past 10 days. "Fiscal 1998 was a challenging year,"
stated Amway Chairman Steve Van Andel. "Nearly half of our business is in
Asian markets where economic upheaval resulted in weak consumer demand.
Our revenues were further reduced when translated from weak Asian
currencies back into strong U.S. dollars." "We've enjoyed phenomenal
growth, including double-digit increases during the early and mid 1990s," said
Amway President Dick DeVos. "We remain confident in the fundamentals of
the Amway business and we're finding new ways to energize our business
through the products and the business opportunity we offer our distributors
and customers. Because of what we've accomplished in the face of many
challenges, fiscal 1998 remains one of our best years ever."
66

NOTE: Before I critique this announcement, a point should be made: The
Amway Corporation refers to its $5.7 billion and $7 billion figures as
ESTIMATED RETAIL SALES. The Corporation never refers to these
figures as REVENUE. And, as so many people are quick to point out, a vast
majority of Amway's products are sold at "distributor" prices, not "retail" prices.
Therefore, are these figures actually inflated by the "distributor savings" of
30%?
In the announcement, DeVos calls "fiscal 1998... one of [Amway's] best years
ever." This is certainly putting a "spin" on the information. If Amway did,
indeed, "[enjoy] double-digit increases during the... 1990s," how can a year
that produced "a decline of more than 18 percent" be considered one of their
best? Or is DeVos implying that Amway was expecting to show a bigger loss?
Distributors are always quick to point out, "How many other companies
increased their sales revenue $500 million in one year, like Amway did?"
(Referring to Amway's estimated retail sal
67

BIG LIE of Multinational
• Amway does not use middlemen to move their products.
• Amway does not advertise the business opportunity on TV or radio.
• Amway "deals with over 2,000 major manufacturers, most of which are
Fortune 500 companies."
• Distributors can save 30% off the retail price of products by shopping
through the Amway catalogs.
• Distributors use the Profiles of Success to show off the people who
have become successful in the Amway business.
• Diamonds have a wonderful lifestyle since they have lots of free time.
• By building an Amway business, a person can earn enough money to
have a completely debt-free lifestyle.
• "Amway does not use retail stores to sell its products" has become
untrue.
• Amway's Canadian tax fraud conviction Amway's "D&B rating is the
best you can get." See answer.
• "ha, ha. Amway did $7 billion in revenue" (an actual quote from an e-
mail).
• Amway's 1997/1998 revenues were not even close to this number. See
answer.
68

STATEMENT OF PROBLEM
To find out the strategy of the Amway in which it carry its business
and finding and analysis for the success and effectiveness of
Amway strategy to maintain its consumer and member’s. How
much consumer’s are satisfied with the Amway strategy and
Amway plans and scheme?
69

OBJECTIVE OF STUDY:
1. Comparison of the Amway past and present strategy.
2. Find out its effectiveness and successful of the strategy.
3. To study the impact of Budget Policies on Marketing
Strategy of Amway.
4. To study the Consumer, Buying behaviour.
5. To study the problems faced by Amway.
70

RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of
series of action steps, necessary to effectively carry out research
and the desired sequencing to these steps. The marketing
research is a process of involves a no. of inter-related activities,
which overlap and do rigidly follow a particular sequence. It
consists of the following steps:-
• Formulating the objective of the study
• Designing the methods of data collection
• Selecting the sample plan
• Collecting the data
• Processing and analyzing the data
• Reporting the findings
71
Objective of Study
Research Design
Sample Design

RESEARCH DESIGN
Research design specifies the methods and procedures for
conducting a particular study.
A research design is the arrangement of conditions for collection
and analysis of the data in a manner that aims to combine
relevance to the research purpose with economy in procedure.
Research design is broadly classified into three types as
• Exploratory Research Design
• Descriptive Research Design
• Causal Research Design
72
Data Collection
Data Analysis
Report of findings

I have chosen the descriptive research design.
Descriptive Research Design:
Descriptive research studies are those studies which are
concerned with described the characteristics of particular
individual.
In descriptive as well as in diagnostic studies, the researcher
must be able to define clearly, what he wants to measure and
must find adequate methods for measuring it along with a clear
cut definition of population he want to study. Since the aim is to
obtain complete and accurate information in the said studies,
the procedure to be used must be carefully planned. The
research design must make enough provision for protection
against bias and must maximize reliability, with due concern for
the economical completion of the research study.
73

SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from
a given population. It refers to the technique to the procedure
adopted in selecting items for the sampling design is as below:
• Sample size
• Sample method
• Survey period
SAMPLE SIZE:
The substantial portions of the target customer that are sampled
to achieve reliable result are 100.
The cost and time limitation compelled me to select 100
respondents as sample size
74

SAMPLING METHOD:
In this marketing research project, I am using
Random sampling method
SAMPLE DESIGN
As complete enumeration of all the members of the population (Member
and Non-member) I have understate sampling technique.
SAMPLE SIZE
50 members
50 Non - members
SAMPLE TYPE
AREA SAMPLING
Sample area
• Modinagar
• Ghaziabad
75

SAMPLE SELECTION
• Simple random selection sampling
SAMPLE TECHNIQUE
I have taken the Statistical tool of percentage method to analysis and
interpretation of the collected data.
RANDOM SAMPLING :
A random sample gives every unit of the population a known and
non-zero probability of being selected. Since random sampling
implies equal probability to every unit in the population, it is
necessary that the selection of the sample must be free from
human judgment.
There is some confusion between the two terms ‘random sampling’
and ‘unrestricted’ random sampling. In the latter case, each unit in
the population has an equal chance of being selected in the
sample. Such a sample is drawn ‘with replacement’, which means
76

that the unit selected at each draw is replaced into the population
before another draw is made from it, ‘As such, a unit can be
included more than once in the sample. Most statically theory
relates to ‘unrestricted random sampling. In order to distinguish
between these two sample. I.e. sample, without replacement and
sample with replacement, the terms ‘sample random sample’ and
‘unrestricted random sample’ are used. If the latter is devised in
such a manner that no unit can be included more than once, it will
then be known as the simple random sampling.
It may be noted that while both sample random sampling and
unrestricted random sampling give an equal probability to each
unit of the population for being included in the sample, there are
other sample design too which provide equal probability to the
units. The process of randomness is the very core of simple and
unrestricted random sampling. The selection of a sample must be
free from bias, which can be ensured only when the process of
selection is free from human judgment.
77

COLLECTION OF DATA:
DATA COLLECTION
The study was conducted by the means of personal interview
with respondents and the information given by they were directly
recorded on questionnaire.
For the purpose of analyzing the data it is necessary to collect the
vital information. There are two types of data, this are-
• Primary Data
• Secondary data
Primary Data:-
Primary data can be collected through questionnaire. The
questionnaire can be classified into four main types-
A) Structured non disguised questionnaire
B) Structured disguised questionnaire.
C) Non structured non disguised questionnaire
D) Non –structured disguised questionnaire.
78

For my market study, I have sleeted structured non-disguised
questionnaire because my questionnaire is well structured, listing
of questions are in a prearranged order and where the object of
enquiry is revealed to the respondents.
To making a well-structured questionnaire, we have adopted three
type of questions-
a) Open ended question
b) Dichotomous questions
c) Multiple choice questions
These types of questions are easy to understand and easy to give
required answers.
Secondary Data:-
Secondary data means data that are already available i.e. they
refer the data which have already been collected and analyzed by
someone else. When the researcher utilizes secondary data, than
he has to look into various sources from where h e can obtain
them, in this case he is certainly not confronted with the problems
79

that are usually associated with the collection of original data.
Secondary data may either be published data or unpublished data.
Usually published data are available in:
a) Various publications of the central, state and local government;
b) Various publications of foreign government or of international
bodies and their subsidiary organizational;
c) Technical and trade journals;
d) Books, magazines and newspapers;
e) Reports and publications of various associations connected
with business san industry, stock exchanges etc.;
f) Reports prepared by research scholars, universities,
economists etc;
g) Public records and statistics, historical document and other
source of published information.
The source of unpublished data are many; they may be found in
diaries, letters, unpublished biographies and autobiographies and
also may be available with scholars and research workers, trade
associations, labor because and other public private individuals
and organization.
80

COLLECTION TECHNIQUE:
Questionnaire method is used in collection the data.
Data processing and analysis
Processing & Analysis the collected data:- once the field survey is
over and questionnaire have been received, the next task is to aggregate the
data in a meaningful manner. A number of tables are prepare to bring out the
main characteristics of the data. The researcher should have a well thought
out framework for processing and analyzing data, and this should be done
prior to the collection. it includes the following activities—
(i) Editing: the first task in data processing is the editing. Editing is the
process of examining errors and omissions in the collected data and
making necessary corrections in the same.
(ii) Coding: coding is the procedure of classifying the answer to a
question into meaningful categories. Coding is necessary to carry out
the subsequent operations of tabulating and analyzing data. If coding is
not done, it will not be possible to reduce a large number of
heterogeneous responses into meaningful categories with the result
81

that the analysis of data would be weak and ineffective, and without
proper focus.
(iii)Tabulation: tabulation comprises sorting of the data into different
categories and counting the number of cases that belong to each
category. The simplest way to tabulate is to count the number of
responses to one question. This is also called universal tabulation.
The analysis based on just one variable is obviously meager. Where
two or more variables are involved in tabulation, it is called bivariate or
multivariate tabulation.
(iv) Analysis:
After the all three above steps, the most important step is analysis of
the data. Under this step, they can use the various tools of the analysis
such as Central Tendency, Dispersion, Correlation co-efficient,
Regression Analysis, and Test of Hypothesis etc.
82

TABLE.1
AWARENESS
Sl no. Respondent Yes No
Businessmen 12 10 02
Servicemen 10 08 02
Student 15 12 03
Housewife 13 05 08
Total 50 35 15
70%
30%
Yes
No
INTERPRETATION:
From the above table and graph it shows the awareness about Amway
70%
Among the total population.
TABLE. 2
83

BASIC FACTOR INFLUENCES TO PEOPLE
FACTORS RESPONDENT PERCENTAGE(%)
INCOME 30 60
PRODUCT 0 0
QUALITY 10 20
AS A PROFESSION 0 0
PROFIT MARGIN 10 20
TOTAL 50 100
60%
20%20%
0% 10% 20% 30% 40% 50% 60% 70%
Percentage
No of respondent
INTERPRETATION:
The above data and graph show that most of individuals join any MLM
only for he income (60%) and rest for quality and profit margin i.e.,20%
and 20% respectively
84

Table 3
ACTIVE MEMBER
FACTORS NO. OF RESPONDENT PERCENTAGE (%)
FULL TIME 10 20
PART TIME 20 40
INACTIVE 20 40
TOTAL 50 100
20
4040
0 10 20 30 40 50
PERCENTAGE
NO OFRESPONDENT
INTERPRETATION:
The above data and graph show that only total of respondent only 20%
people do it as a full time and rest 40% part time and 40% become
inactive.
85

Table 4
CONSUMER SATISFACTION
VIEW NO. OF RESPONDENT PERCENTAGE
HIGHLY SATISFIED 5 10
SOME WHAT 15 30
CAN’T SAY 10 20
SOMAE WHAT
SATISFIED
10 20
HIGHLY SATISFIED 10 20
TOTAL 50 100
10
30
202020
0 5 10 15 20 25 30 35
PERCENTAGE
NO OF RESPONDENT
INTERPRETATION:
The above data and graph show that most thirty-percentage people
satisfied with the Amway and respectively were somewhat satisfied and
some what not satisfied
TABLE: 5
86

REACTION OF CONSUMER
ACTION NO.OF RESPONDENT PERCENTAGE
REPURCHASE 18 35
OCCASTIONALLY 22 45
NOT PURCHASE 10 20
TOTAL 50 100
35
45
20
0 10 20 30 40 50
PERCENTAGE
NO OFRESPONDENT
INTERPRETATION:
The above data and graph show mostly people occasionally purchase the
product of Amway and only of 35% repurchase the product
TABLE: 6
CONSUMER SATISIFACTION WITH
87

FACTOS HIGH SOME
WHAT
CAN’T
SAY
SOME WHAT
DISSATISFACTION
DISSATIS
FACTION
total
PRODUCT 15% 35% 5% 30 15% 100
QUALITY 10% 5% 25% 40% 20% 100
PRICE 20% 80% 100
DISTRI
BUTION
10% 50% 15% 10% 15% 100
POLICY 10% 20% 60% 10% 100
INTERPRETATION:
The above data and graph show that most thirty-percentage people
satisfied with the Amway and respectively were somewhat satisfied and
somewhat not satisfied
PRODUCT:
The above table a mostly consumers are some what satisfied with the
product and About 35%people where some what satisfied with the product
PRICE:
From the above analysis it is found that mostly consumers where strongly
dissatisfied with the price of the product that is in 80% .
Distribution System:
With the distribution system near about the 50% peoples where satisfied
they grade it as a somewhat satisfied
Policy:
With the policy of Amway mostly 60% peoples where some what dissatisfied
88

Table 7
NATURAL MARKET
Market No. of respondent Percentage
Friends 14 28
Relatives 08 16
Neighbour 10 20
Social affiliate 15 30
Other 03 06
Total 50 100
28
16
20
30
6
0 5 10 15 20 25 30 35
PERCENTAGE
NO OFRESPONDENT
INTERPRETATION:
The above data that is so that mostly members nature market is their
social affiliate and then rest like neighour , friends and relatives once
TABLE:8
INTEREST IN AMWAY
Sl.no No. of respondent Percentage
89

1 10 20
2 12 25
3
4 08 15
5 20 40
Total 50 100
20
25
15
40
0 10 20 30 40 50
PERCENTAGE
NO OFRESPONDENT
INTERPRETATION:
From the above table and graph it is clearly expressed that 40% of
total respondent not like Amway, the above data so that a great
number of people doesn’t like Amway
90

Table:9
INCOME GROUP
Income No. of respondent Percentage
0-5000 30 60
5000-10000 15 30
10000-20000 5 10
Above20000
Total 50 100
60
30
10
0 10 20 30 40 50 60 70
PERCENTAGE
NO OFRESPONDENT
INTERPRETATION:
The above given data shows the most of the respondent they belong
to the 0-5000-income group about 60%. Which shows that mostly
belongs to the middle family.
LIMITATION
91

Short time for research.
All the data is not available regarding the financial position and financial
statements.
Respondent are not ready to explore more information about the Amway.
There may be occurrence of response error in the report
Report is also affected by the cost factor
There may be chances of sampling error.
There may be measurement error in analysis of data.
FINDINGS
92

The awareness about Amway is high as about 70%.
Mostly an individual preferred network marketing for earning of
additional income.
According to survey scheme of Amway is very attractive but most of
the respondent viewed that it is very hard to convince an individual for
membership.
According to respondent view the product of Amway is so costly and it
is not preferable by middle and lower class family.
Mostly respondent graded product quality is average.
Price of product is high.
Number of members become in active or drawn their member ship
from Amway
because they fail to make new members.
93

RECOMMENDATION
The price of product should be low so that all level families use the
product
There should be some modification in the policy of membership in so
that it attract more individuals
The entry fee for membership should down that all income group can
able to take membership in Amway.
There should be increase in the profit margin to the members.
Awareness about Amway is good but they have to make more
programmers like seminars, Amway meeting and cultural programme
so that they are able to make more awareness to more peoples
94

QUESTIONNAIRE
1. What are the brands you are aware of?
a) Dabur b) Emami c) Rax
d) other
2. How do you rate the company marketing strategy as compare to the
other competitors company like Dabur, Emami etc.?
a) Dabur b) Rax c) Emami
d) Other
3. Do you think that the company Amway is giving its customer what
they want in terms of quality and prices or value for money?
a) Happy b) Not Happy
4. Do you think that the advertisements and the brand ambassador of
the company is good enough?
a) Happy b) Not Happy
95

5. What things you keep in mind while purchasing products will it be
quality, advertisement, price or design?
a)Quality b) other factor
6. If you have to purchase Amway product except Dabur which product
it will be and why?
a) Dabur b) Emami
c)Other
7.What is your opinion of the brand ?
a)Excellent
b)Good
c)Fair
d)Poor
8. Any recommendation , suggetions , you want to give for
batterment of amway product ?
96

CONCLUSION
The product of the Amway is very costly and due to this the middle
class families do not prefer it
The awareness level of about the Amway is about of the seventy
percentages it means it that Amway makes at position in the
consumer minds and Amway got the success in making of it’s position
in the market.
Due to the cost of product people not preferred to use product and the
quality is also rated average it means it fail to attract the consumer by
the offering of the product.
MLM is considered as an addition al source of income and it provides
the opportunity to unemployed once.
After the analysis of all the data and the table, I come on conclusion
that the members are not satisfied with the return, which he got, from
it and members become inactive or drawn.
It resulted in the slow growth rate in Amway. Once it is one a pick but
now the growth speed become reverse.
97

BIBLIOGRAPHY
REFERENCE BOOK:
• Marketing Research (Author- G C Beri)
(Publish by Tata McGraw Hill Publishing Co. LTD., New
Delhi)
Third Edition(2002)
• Marketing Management (Author- Rajan Sexana)
(Publish by Tata McGraw Hill Publishing Co. LTD, New
Delhi)
Second Edition(2001)
• Marketing Management (Author- R S Sexana)
(Publish by Himalya Publication, New Delhi)
Ninth Edition (2000)
• Marketing Management (Author- Philip Kotler)
98

(Publish by Pren Tice-hall of India PVT. LTD., New Delhi)
Ninth Edition(2002)
• Research Methodology (Author- Bhandrai)
Print 2004, second edition
WEB SITE:
• www.amway india.com
• www.google.com
• www.rediff.com
• www.amway.com
99

SOURCES
(Amway India Enterprises. All rights reserved
© 2001-2005 Network Marketing Works
Network marketing works) 1
(www.network-marketing-works.com/ - 13k - 25 Apr 2005)2
Further Reading:3
1.“There’sMoretoCome”
Singh,Radhika
A & M, 31 August 2000
2. “The Great Web of Deceit” Maakan, Anupama Intelligent Investor, 8
September 1999.
3. “Complete Solutions” A & M, 15 October 1999.
(Amway India Enterprises. All rights reserved
© 2001-2005 Network Marketing Works
Network marketing works)4
(Amway India Enterprises. All rights reserved)5
100

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