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ACKNOWLEDGEMENT
I Wish to express my deep sense of gratitude to all who generously helped in
successful completion of the project work by sharing their valuable time and
knowledge.
I t thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for
giving me the opportunity to conduct and survey.
I Would like to express my sincere thanks to MR. MANISH JAIN
LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and
indirectly rendered me all possible hlep and guidance for preparing the report.
Finally I would like to thanks my parents, my friends without whom
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CERTIFICATE
A PROJECT REPORT ON COMPANY PROFILE ON AMWAY is
prepared by ANKITA PATEL under The guidance of Miss MR. MANISH JAIN
is a satisfactory in respect to comments
Contents and presentation of the Subject Matter.
Language
Submission with in due date.
Signature of Supervisor
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TABLE OF CONTENTS
Preface
Acknowledgement
Certificate
Declaration by the Candidate
TOPIC NAME
PAGE
NO.
CHAPTER 1 INTRODUCTION
CHAPTER 2 COMPANY PROFILE
CHAPTER 3 HISTORY
CHAPTER 4 KEY PERSON
CHAPTER 5 COMPETITOR
CHAPTER 6 OBJECTIVE
CHAPTER 7 RESEARCH METHODOLOGY
CHAPTER 8 DATA ANALYSIS AND INTERPRETATION
CHAPTER 9 SWOT ANALYSIS
CHAPTER 10 LIMITATION
CHAPTER 11 SUGGESTION AND CONCLUSION
CHAPTER 12 BIBLIOGRAPHY
CHAPTER 13 QUESTIONNAIRE
INTRODUCTION
Amway is a direct selling company that uses multi-level marketing or network
marketing to promote its products.
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Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in
Ada, Michigan, the company and family of companies under Alticor reported
sales growth of 15%, reaching US$8.4 billion for the year ending December 31,
2008. Its product lines include home care products, personal care products,
jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers,
insurance and cosmetics. In 2004, Health & Beauty products accounted for
nearly 60% of worldwide sales. Amway conducts business through a number of
affiliated companies in more than ninety countries and territories around the
world. It is ranked by Forbes as one of the largest private companies in the
United States and by Deloitte as one of the largest retailers in the world.
HISTORY
Founding
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Jay Van Andel and Richard DeVos, friends since school days, had been
business partners in various endeavors including a hamburger stand, air charter
service, and a sailing business. In 1949 they were introduced by Neil Maaskant
(Van Andel's second cousin) to the Nutrilite Products Corporation. Nutrilite
was a California-based direct sales company founded by Dr. Carl Rhenborg,
developer of the first multivitamin marketed in the United States. In August
1949, after a night-long talk, DeVos and Van Andel signed up to become
distributors for Nutrilite food supplements. They sold their first box the next
day for $19.50, but lost interest for the next two weeks. Shortly thereafter, at
the urging of Maaskant, who had become their sponsor, they traveled to
Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel,
with over a hundred people in attendance. After seeing promotional videos and
listening to talks by company representatives and successful distributors, they
decided to pursue the Nutrilite business opportunity with enthusiasm. They sold
their second box of supplements on their return trip to Michigan, and rapidly
proceeded to develop their new business further.
In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated
from their respective first names) for importing wooden goods from South
American countries; after their trip to the Nutrilite seminar, they dropped ] this
business and Ja-Ri became their Nutrilite distributorship. In addition to profits
on each product sold, Nutrilite also offered commission on the sales of products
by new distributors introduced to the company by existing distributorsa
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International expansion
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COMPANY PROFILE
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Introduction:
Amway is the largest direct selling company and manufacturer in the
world that uses network marketing to sell a variety of products, primarily in the
health, beauty, and home care markets. Amway was founded in 1959 by Jay
Van Andel and Richard DeVos. Based in Ada, Michigan, the company and
family of companies under Alticor reported sales growth of 2.3%, reaching
US$8.4 billion for the year ending December 31, 2009.Its product lines include
home care products, personal care products, jewelry, electronics, Nutrilite
dietary supplements, water purifiers, air purifiers, insurance and cosmetics. In
2004, Health & Beauty products accounted for nearly 60% of worldwide sales.
Amway conducts business through a number of affiliated companies in more
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than ninety countries and territories around the world. It is ranked by Forbes as
one of the largest private companies in the United States and by Deloitte as one
of the largest retailers in the world.
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network of IBOs. This seemed like the only way to offer what Jay and Rich
originally envisioned - a solid opportunity where anyone with motivation could
excel, regardless of their background and status. This is a main part of Amway's
business philosophy. Not just products and not just sales, but a way to a better
life.
Amway continued to grow under the co-ownership of Van Andel and
Devos. In 1972, the pair purchased Nutralite outright - they now owned the
company they had started as employees with.
Amway continued to expand, reaching past the borders of the US to offer
the same opportunities in other countries:
- Australia - 1971
- Europe and parts of Asia - 1974
- Japan - 1979
- Latin America - 1985
- China - 1995
- Africa - 1997
- India - 1998
- Russia - 2005
- Vietnam -- 2008
Critics argued that the model wasn't sustainable and that growth was
mathematically limited. They cried, "Pyramid scheme!" Fifty years of steady
growth has shown this criticism has no basis in fact.
In 2008, Amway (now technically, Amway Global) reported sales of 8
billion. The company is in 58 markets worldwide and manufactures more than
450 products. Amway Global does business in more than 98 countries.
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Amway global sales were reported at estimated retail until 2000 when
the holding company of Alticor was formed. This means theyre valued
assuming that they were all sold at the full retail price, not at the price they
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were sold to distributors/IBOs. Alticor reports actual revenue sales at the base
IBO price
Ive converted the figures so they can be properly compared. Its
important to be aware of this as many critics of the business (including some
former Diamonds who you would think know about this) have in the past
conveniently ignored the change in reporting standards and tried to claim
Amways sales peaked in 1998. Note however that Alticor sales includes
revenues from other sources such Access Business Group and Amway Grand
Plaza. In 2007 this was reported as around $100 million, so by far the majority
of the sales are through the Amway business opportunity.
Amway has grown fairly quickly since its inception. Its historic sales
data at estimated retail prices is provided below from 1959 to 2000 (in 2000
Amway switch over to Alticor. At its peak in 1997 Amway estimated retail
sales worldwide at 7 Billion USD. With the founding of Alticor, the report
methodology was changed and the actual sales to distributors instead of
estimated retail sales (ERS) have been reported since 2001. Taking the sales
data published in 2001 report into account, the ERS values are about 32%
higher than sales to distributors. The actual sales to distributors are marked
with *.
Until 1999 sales were reported at Estimated Retail. This is approximately 32%
higher than actual sales revenues from sales made to Amway distributors.
VISION OF AMWAY:
Helping people live better lives.
Showing where the business wishes to be in the future.
MISSION OF AMWAY:
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GOAL OF AMWAY:
The development of new business opportunities.
To increase the company's role in relations to social responsibility.
To provide excellent customer service.
Awards and Recognition:
the
visually
challenged.
The Indian Red Cross Society, Orissa awarded AOF a memento &
certificate for conducting a mega-Blood Donation camp of 816 units on
4th May, 2003.
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OBJECTIVE
(1)
(2)
(3)
(4)
(5)
(6)
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RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the overall
operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
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I chose the primary sources to get the data. A questionnaire was designed
in accordance with our mentor in Amway . I chose a sample of about 45
corporate customers around the Sagar City from which I can get the
instant information of whose analysis will give me the desired outcome
of my research project.
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedures. It is a descriptive cross sectional design .It is the
conceptual structure with in which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study
by which it is clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have to
determine who is to be sampled, how large should be the needed sample and
how sampling unit is to be selected.
Population
In my research, I have defined my population as a complete set of customers of
Sagar City
Sample Survey
As compared to census study, a sample study has been conducted by us because
of:
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in Sagar City
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The collected raw data was then edited and coded by the researchers to
eliminate errors and to assign data to pertinent categories. The data was then
tabulated and presented with the help of bar diagrams and pie charts.
PRODUCTS DETAILS
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Amway Products:
Amway offers a range of exclusive, competitive brands that meet proven
customer needs around the world. From nutritional supplements to water
treatment, cosmetics to cleaning products, these brands are the solid foundation
for a successful, independent Retail business.
Amway Personal Care Products
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Artistry is one of the worlds top five largest-selling prestige brands of facial
skin care and colour cosmetics. Our scientists and formulators have developed
the complete line of
cosmetics,
Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.
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SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans
and softens.
G&H Range enriched with the goodness of Glycerine and Honey, deeply
nourishes and hydrates the skin for a healthy glow.
Great Value Product Range offers you Great Quality, Great Performance, Great
Price
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Amways competitors:
1) Direct competitors:
AVON
MARY KAY
SUNRIDER
2) Indirect competitors:
Local INDIAN companies.
Changing Political & Economic Atmosphere
Products used as samples to persuade relatives and friends to join
Amway
Focus shifted from selling products to recruiting.
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No of Respondents
20
10
20
29
Percent
34.17
25.00
40.83
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INTERPRETATION
Table No.17inferred that 40.83% of the respondents are not sure that they
are aware about all aspects relating to Amway products.34.17% of the
respondents says that they are fully aware about all aspects relating to Amway
products.25% of the respondents says that they are not fully aware.
RESULT
It is concluded that most (40.83%) of the respondents are not sure about
all aspects relating to Amway products.
SOURCE OF AWARENESS
Source of awareness through which the respondents is introduced to the
Amway products.
TABLE NO.18 SOURCE OF AWARENESS
No of
Respondents
Distributors
10
friends
20
relatives
15
advertisement 5
Total
50
30
Percent
26.67
47.50
17.50
8.33
100.00
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INTERPRETATION
The above Table No.18 explains that 47.5% of the respondents says that
their source of awareness is friends. 26.67% of the respondents say that their
source of awareness is distributors.17.5% of the respondents says that their
source of awareness is relatives.8.33% of the respondents says that their source
of awareness is advertisement.
PERIOD OF USAGE
The following Table No.19 explains how long the respondents have been
using the Amway products.
TABLE NO.19 TIME PERIOD OF USING AMWAY PRODUCTS
No of
Percent
Respondents
> 1 yrs
2-4 yrs
5-6 yrs
10
20
10
37.50
49.17
10.00
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more than 6
yrs
10
3.33
Total
50
100.00
INTERPRETATION
The above Table No.19 reveals that 49.17% of the respondents says that
they have been using Amway products ranging between 2-4 years.37.5% of the
respondents says that they have been using Amway products for less than 1
year 10% of the respondents says that they have been using Amway products
for 5-6 years.3.3% of the respondents says that they have been using Amway
products for more than 6 years.
PRIORITY FOR CHOOSING AMWAY PRODUCTS
The following Table No.20 explains the priority in choosing the Amway
products.
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INTERPRETATION
Table No.20 inferred that 30% of the respondents prefer Amway
products due to brand image and ingredients these two factors are ranked most.
24.2% and 25% of the respondents prefer Amway products due to distributor
services and eco-friendly respectively. 21.7% of the respondents choose to use
Amway products due to its packing and 60.8% of the respondents gave least
ranking to price.
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INTERPRETATION
From the Table No.21 explains that 28.3% of the respondents prefer
health care products the most. 26.7% of the respondents choose home care
products, 21.7% of the respondents give next preference to personal care and
beauty care and 40% of the respondents have given least importance to oral
care products.
LEVEL OF SATISFACTION
The following Table No.22 explains the respondents level of satisfaction
with various factors of Amway products.
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INTERPRETATION
Table No.22 inferred that 50% of the respondents are highly satisfied
with brand, 26.7% of the respondents are satisfied with the price. 40.8% of the
respondents are satisfied with quality. 35.8% of the respondents are satisfied
with the easy-availability and 27.5% of the respondents are satisfied with the
offers.
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No of
Percent
Respondents
30
78.33
20
21.67
50
100.00
Yes
No
Total
INTERPRETATION
Table No.23 reveals that 78.33% of the respondents says that they will
recommend Amway products to others and 21.67% of the respondents says
they will not recommend Amway products to others.
DISTRIBUTOR SERVICE
The following Table No.24 reveals the respondents exact answer whether
they would become a distributor of Amway
TABLE NO.24 DISTRIBUTOR SERVICE
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No of
Yes
Percent
Respondents
20
28.72
No
30
71.28
50
100.00
Total
INTERPRETATION
Table No.24 inferred that 71.28% of the respondents says that they will
not become an Amway distributor and 28.72% of the respondents says that they
will become an Amway distributor.
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Yes
No
Total
Percent
57.50
42.50
100.00
INTERPRETATION
Table No.25 explains that 57.50% of the respondents says that they will
not switch over to any other product and 42.50% of the respondents says that
they will switch over to other product.
Training to staff.
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Backed by a 100% Customer Product Refund Policy produce faith and reselling
attitude in customers.
WEAKNESS:
Initially high entry cost leads to somewhat restrictions for business development.
OPPURTUNITIES:
Setup a manufacturing plant in all countries leads to better platform for company.
As the company name itself gives reliance and faith for the customer and buyer
produce greater opportunity for marketing which leads to decrease in total
expenditure of company.
THREATS:
Change in government policy may affect to the profit and freedom of company.
LIMITATION
(1)
When the buyers are busy we cant get accurate data from them.
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(2)
some area.
(3)
SUGGESTIONS:
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Marketing can add to the advantage. So, it should be taken care of.
Better offers can be made to attract the customer demand.
THE NETWORK NEEDS TO BE GROWN.
Trial packs should be used because customer must have to introduce
the product. Once customer gets idea about product he comes to
know advantages of products.
The products should be cheap the home delivery system takes at
least two days to deliver the products so the delivery should be
instant.
There must be multiple options for purchasing the products for
distributers like online, tale and instant purchasing.
In every city, the Amway office should be situated in such a location
so that it is in reach of all distributers.
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CONCLUSION:
This Project to identify various problems and level of satisfaction of
consumers, so that efforts can be made to satisfy them which
would result in building long term relationship between the
customer and company.
This Project has lead to the knowledge about the offerings, brand
awareness among the customers and customer satisfaction.
Due to delivery in customer need and expectations, it becomes a
difficult task to satisfy every customer, therefore to satisfy each
and every customer the importance of building relationship
with them exists. For this purpose a number of questions were
asked to find out behavior of customer. This research is also
done to know the views of the customer towards the products
and quality provided to them by AMWAY. And according to
the survey, the customers seem contended with the products
and services by AMWAY.
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BIBLIOGRAPHY
MAGAZINES & NEWSPAPERS
The Economic Times
The Times of India
Business World
Business Today
WEBSITES
www.multimarketing.com
www.amway.com
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QUESTIONNAIRE
1. ARE YOU AWARE ABOUT ALL ASPECTS RELATING TO AMWAY PRODUCTS
A) YES
B) NO
C) NOT SURE
2. SOURCES OF AWARENESS
A) DISTRIBUTORS
B) FRIENDS
C) RELATIVES
D) ADVERTISEMENT
3. HOW LONG HAVE YOU BEEN USING AMWAY PRODUCTS
A) > 1 YEAR
B) 2-4 YEARS
C) 5-6 YEARS
D) MORE THAN 6 YEARS
4. RANK THE FOLLOWING CRITERIA FOR CHOOSING AMWAY PRODUCTS
CRITERIA
PRICE
PACKING
INGREDIENTS
ECO-FRIENDLY
DISTRIBUTOR SERVICES
BRAND IMAGE
RANK
Signature
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