Amway Presentation - Introduction + Market Cap

8/3/2019 Amway Presentation - Introduction + Market Cap

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- Overview

Vision:

Help people live better lives.

Values:

Partnership

Integrity

Personal Growth

Achievement

Personal responsibility

Free Enterprise


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Positioned in 80 countries

3 000 000 distributers

450 (115) products in 11 brands focused on:

Health/ Nutrition

Wellness/ Beauty

White goods

Worldwide sales: 9.2 billion US-$

Hereby ranking No. 1 of all MLM-Companies


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AMWAY

How does it work??


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Direct SellingMulti Level Marketing (Pyramid scheme)

Amway IBO

Immediate Gross ProfitPerformance Bonus

Leadership Bonus

Other Growth Incentives

Network 21 & PLUS (BSM)Brand Experience Centers


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Amway is the brand and Corporate trade name for AmwayCorporation. All markets around the world except North Americause the Amway name.

One major thing that distinguishes the brand in North Americafrom the brand in other countries is that all transactions betweenIBOs, customers, and Amway North America, Inc. are conductedonline.

Company officials confirmed in June 2007 that, over thesubsequent 18 to 24 months, Quixtar will merge with its sistercompanies of Amway organizations around the globe to formunder one new name Amway Global


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Amway launched a brand new multiplatform, multimillion-dollar advertising campaign entitled, "The Power of Positive.

"The Power of Positive" campaign exemplifies who AmwayGlobal is as a company and you are as Independent BusinessOwners.

The first of three new television commercials broke onMonday, March 15, 2010.


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Brands by Amway Global


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Amway India

Amway was established in India in 1995 and commencedoperation in 1998 with headquarters at New Delhi.

Largest Direct Selling FMCG Company

135 offices , 55 city warehouses ,5000 cities, plant at Baddi

Amway India posted a turnover of Rs 1,790 crore last year -

up from Rs 1,407 crore in 2009 Amway expects to do business worth Rs 25 billion in India

by 2012.

127 products in five categories, health care, home care,

nutrition and wellness, cosmetics and gift catalogue. Locally manufactured through seven third-party contract

manufacturers which follow international standards


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Problems faced by Amway in India:

Direct selling was seen as an intrusion into ones privacy

High Distributor attrition rate & false premium image

Overlooked aspects like distributor should also know about thevalue of the product they were selling

Lack of proper infrastructure like networked banks, toll freephones and multi service courier companies

Huge commission to distributors which results in the increasedcost of the product , thus lower sales.

Products considered as expensive

Failure of Sachets

Criminal cases in A.P. On August 6, 2011 kerala police sealed the offices of Amway

at kozhikode,Kannur,Kochi etc.


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Corrective measures taken

Amway used media advertising for the first time topromote its products.

Advertising enhanced corporate image which attractedpeople to join Amway as ABOs.

Operation Gaadi and Operation Ghar

Pulling stickers on its products about usage details

Set up SBUs for product focused approach

Focus on market in smaller towns to offset the impact ofattrition

Rapidly expanded its offices Reduced the cost of entry for ABOs


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Huge product range of 450

Huge distributors network

World class quality products

Largest Direct Selling company

100% Customer Product Refund Policy produce faith in customers

Strengths

Amway's business practices have been the subject of controversy, thedirect selling strategy is often regarded as social engineeringby critics

More power to IBOs gives critical structure to organization

High attrition rate of distributors

The lack of brand awareness in countries like India

High cost of products and poor pricing strategies employed for differentmarkets

Products are not readily available due to the direct selling strategy

Weakness


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Setup a manufacturing plant in all countries leads to better platform forcompany

Population of India gives better opportunity to improve the ever growingnetwork of the companyLeverage upon its employment creation activityCustomer services are one area of improvement and use of internet toimprove the services of the company

Opportunities

Established FMCGs like P&G, HUL which have large bases in India and

competitors like Modicare which follow similar strategy and offer productsmuch cheaper to Amway

Distinguishing itself from bogus pyramid companies and money circulatingenterprisesAdvent of Online shopping sites which are convenient and offer betterdeals and services

Threats


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Documents

Amway Presentation - Introduction + Market Cap