Marketing strategy used by Amway to launch

products

AmwayAmway is an abbreviation for "American Way" and

was coined in 1959 by Company founders, Jay Van Andel and Richard Devos.

Direct selling company (Direct selling is based on person-to-person relationships and involves the distributor going to the consumer rather than the consumer going to a shop)

Amway IndiaAmway India, a wholly owned subsidiary of

Amway Corporations, was established in August 1995 after approval by India's Foreign Investment Promotion Board (FIPB)

The Company is headquartered at the National Capital Region of India- New Delhi.

Amway India provides free and unlimited training to all its distributors to help them grow their business

www.amwayindia.com

Direct SellingIn direct selling, the sale is the culmination of

many activities which involve matching customer requirements to the goods or services offered.

The main benefit of this form of selling is that it allows distributors to focus on individual customers and their needs.

Direct Sellingo Based upon person-to-person relationships

o It involves and demonstrating products

o The business Owner is the face of the Company/brand

o The objective involves matching consumer needs with the product

The Amway’s WayThe critical relationship between Amway and

seller or distributor is at the heart of Amway’s successful approach to direct selling.

Product Knowledge, in particular, is vital- so that the seller can present a product’s benefits and functions comprehensively and answer any question the consumer may have.

Tactics of the launch

Launch of product

It sense to start in your traditional home market (United States) before rolling out the launch in stages across the globe

Conferences Short videospress releases

Multi Level Marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. The salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing.

EXAMPLES ON NET

SEGMENTATION OF PRODUCTS

AdvertisementAmway launched its first corporate branding

initiative in India. The brand came out with a Television campaign

highlighting the customer centric approach. They carry a tamper proof seal and a '100%

Money Back Guarantee'. If not completely satisfied with the product, the

consumer can return it for a refund. Amway encourages the return of its used

product for re-cycling and to prevent their misuse.

Product Life Cycle Curve

Why Revision of Artistry- Was Necessary-Product Life Cycle Concept!!!Cosmetic manufacturers are constantly under

threat from changes in the fashion industry.

If these changes were not managed, the product would rapidly move into decline.

Artistry's Strategic Global Plan for maintaining the competitiveness of Artistry shaded cosmetics and prolonging its product life cycle, ensures its range is continuously in line with evolving market trends and tastes.

(Eg: ARTISTRY PRODUCTS from AMWAY)

(Eg: Attitude by Amway)

Buying Behavior of Amway Products

Market share high for products like: ARTISTRY, NUTRILITE

Marching Ahead…. Amway Marketing Strategies are crucial since

it faces a stiff competition in Indian Market.

Amway Glister from Dabur Red in Toothpaste segment

Nutrilite Daily from Ranbaxy Revital

Nutrilite from Wockhardt’s ProtineX & Amway Artistry Products from Lakme.

Amway’s ProductsAmway launched the ultimate multi-purpose

cleanerAmway's top selling Home Care products -

Liquid Organic Cleaner (LOC), Spray Glass Cleaner and Zoom Spray Cleaner.

BIBLIOGRAPHY1)The Amway Business Review" Amway

corporation 1 September 1992: (pamphlet) 2)Amway Corporation: Annual Report - Amway

corporation, (93-01-10) 3)Case Study: Using Communication to develop

Business Opportunities at Amway4) "Amway Corporation" The Wall Street

Journal. 2 July 1993: (21)