INTRODUCTION

Amway is a 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. Its product lines include home care
products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water
purifiers, air purifiers, insurance and cosmetics. 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.

Vision & Mission

OurVision

Helping people live better lives.

Our Mission

Through the partnering of Distributors, Employees, and the Founding Families and the support
of quality products and service, we offer all people the opportunity to achieve their goals through
the Amway Sales and Marketing Plan
Amway employs 14,000 people worldwide in its offices, manufacturing centres, warehouses, call
centres or stores. It also works with around three million Amway Business Owners (ABOs) in
more than 80 countries. These ABOs are the link between Amway and its products and the
consumer. They also link Amway with communities across the globe. For more than 45 years,
Amway Corporation has enabled people to have a business of their own.

Amway’s global vision is to help people live better lives. At the heart of this commitment is the
One by One Campaign for Children that help disadvantaged children from around the world.
This programme aims to support Amway’s employees, ABOs and customers in putting time and
money into helping disadvantaged children get access to medicine and education.

BRANDS
Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later
the hair care product Satinique (1965) and the cosmetics line Artistry (1968). Today Amway
manufactures over 450 products, with manufacturing facilities in China, India & the US , as well
as Nutrilite organic farms in Brazil, Mexico and The United States (California &Washington
State). In addition, Amway affiliates market products from hundreds of other manufacturers
offering everything from books.

Household cleaners
Amway is best known in North America for its original multi-purpose cleaning
product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid. In the January 2007
issue ofConsumer Reports, SA8 with Bioquest was rated the best-performing laundry detergent,
scoring 99 out of a possible 100 points. Consumer Reports did, however, criticise SA8's pricing,
a situation which was disputed by Amway. In 2008, Amway's cleaning products were named
"Favourite of Experts" by an independent consumer survey in Ukraine.

Health and beauty

The majority of Amway's sales today come from the Health & Beauty sector and in North
America the Amway Global/Quixtar website is ranked the #1 Health & Beauty website by
Internet Retailer. In South Korea Amway is ranked one of the top two companies in toiletries and
cosmetics. Amway's health & beauty brands include Artistry, Beautycycle, Time Defiance,
Artistry Essentials, Pure White, Satinique, Tolsom, Body Series,
Glister, Moiskin (SouthAmerica), Nutrilite, Nutriway (Scandinavia and Australia/New
Zealand), eSpring, Atmosphere and iCook as well as XL and XS Energy drinks.

Artistry
Amway's Artistry products include skin care, cosmetics, and anti-aging creams and
serums. Euromonitor International, an independent researcher and publisher of market reports,
business reference books and online information databases, ranks Artistry as one of the world's
top5 best-selling brands in the prestige brand category, alongside Clinique, Estee
Lauder, Lancome, and Shiseido. Artistry is the only direct sales brand classified in the "prestige"
category.
Nutrilite
Amway's Largest selling brand is the Nutrilite range of health supplements (marketed
as Nutriway in some countries), and in 2008 Nutrilite sales exceeded US$3billion globally
Nutrilite products incorporate organically grown whole-plant concentrates. Euromonitor has for
several years ranked Nutrilite the world's best-selling nutritional brand in tablet or capsule form.
[38]
 In 2001, five Nutrilite products were the first dietary supplements to be certified by NSF
International. Surveys by independent group Consumerlab.com since 2002 have rated Nutrilite
as having the highest customer satisfaction rating (96% in 2006) in the direct selling/MLM brand
category. In 2006, 2007, 2008, and 2009 in the nutrient and health food category,

____________________________________________________________________________________

FINANCIAL RESULTS
 2500

2000

1500
Sales in crores
1000

500

01998-99 2002-03 2006-07 2010-11

Amway India Growth Facts

EXPANSION

International expansion
______________________________________________________________________________

Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to
Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and
Scandinavia in 1998, to Russia in 2005, and to Vietnam in 2008.

In 1999 the founders of the Amway corporation established a new holding company,
named Alticor, and launched three new companies:

1. A sister (and separate) Internet-focused company named Quixtar,

2. Access Business Group, and
 3. Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and
development and Access Business Group handled manufacturing and logistics, for
Amway, Quixtar, and third party clients.

After virtually all Amway distributors in North America switched to Quixtar, Alticor elected to
close Amway North America after 2001. The main difference was that all distributors, now
called Independent Business Owners (IBO) could order directly from Amway on the internet,
rather than from their upline "direct distributor", and have products shipped directly to their
home. The Amway name continued being used in the rest of the world, and the home of
the Orlando Magic was named the Amway Arena in 2005. The Orlando Magic is owned by
Amway founder Richard DeVos[ In 2006, Quixtar published The Quixtar Independent Business
Owner Compensation Plan, in which the company reported that the average monthly gross
income for "Active" IBOs was $115. In June 2007 it was announced that the Quixtar brand.

Global markets
In 2008 two thirds of Amway's 58 markets reported sales increases, including strong growth in
the China, Russia and India markets.Amway India sales grew 40% to
1128 crore(US$230million)

Amway’s Business Strategy- Direct Selling

Amway’s global is a multi-level marketing (MLM) company with vision is to help people live
better lives and to understand the consumer needs and provide them with the best quality of
products. The direct business model of the company eliminated retailers, whole sellers etc. who
adds unnecessary time and cost and also and also allowed the company to build every system
to order, offering customers powerful, richly configured systems at competitive prices. Amway
introduced the latest relevant technology much more quickly than companies with slow-
moving, indirect distribution channels that made the company one of the largest direct selling
organizations in the world.

Amway combines direct selling with a network marketing strategy. IBOs may both market the
products directly to potential customers and also recruit (sponsor) and train other people who
become IBOs themselves and in turn have the same opportunity. Each IBO may earn income
both from the retail markup on any products they sell personally, plus a performance bonus
based on the sales volume they and their down line have generated. People may also register
as IBOs to buy products at a discounted rate. Amway has been accused of using high pressure
tactics and in effect brainwashing its IBO's, using peer pressure in meetings and threats to get
IBO's to recruit more, lower income members who are less likely to complain about being taken
advantage of.

Having signed a contract to work within Amway's Rules of Conduct and Code of Ethics (best
practice), IBOs is self-employed and the Amway business gives them the flexibility to work
where and when they want.

They sell to people they know or meet, introduce others to the Amway business and form their
own sales group. The personal contact and care they provide is an important element in direct
selling. To do this they need support, and rely on having ready access to a quick, efficient supply
chain so that they can meet customer needs.

Basically it can be said in a way that Amway encourages people to become users of the product
first and when they feel that they are satisfied they can convert into Business owners and then
they can convince people whom they meet and now to become users of the products and can
later convert and join the chain of business owners.

The Amway business strategy can be understood with the example of the figure illustrated
below which shows the way the leads are generated by the IBO’ i.e. the business owners and it
all depends on “WOM’ word-to-mouth advertising as company believes much in promoting the
products through a common man using that products that can better explain its benefits rather
than anyone else.
Amway markets its products to its customers through,

 Internet
 Amway Partner stores

INTERNET

The business owners or the members of the company are provided with the Username and
password of their own with the help of which they can order the products online and can
pay through their debit or credit cards or they can also pay at the time of delivery of the
products at their doorstep by the company representative

This enables them easy access to the products that they need without any hassle and the
products are delivered to them at their home during the prescribed time period that the y
desire.

AMWAY PARTNER STORES

Amway stores are located at all major cities in the country. These stores handle the
inquiries relating to the products and also returning of the products in case the consumer is
not satisfied with their usage. IBO’s can visit to these stores in their respective locations and
can themselves buy the products from there for which there is a proper system that is
followed and cash receipts are provided to them.