CASE STUDY ON

MARKETING MANAGEMENTPrepared by:Roopesh AggarwalVigneswaran ARAbhishek Usha Praveen YadavGyan pratap mallRajeshAneesh

INTRODUCTION• Amway - "American Way" and was

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

• Direct selling company • Headquarters- Ada, Michigan, United

States• Amway India, a wholly owned

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

• 450 Products In Over 80 Countries• Number of Employees-21000(2014)

MANUFACTURER

EMPLOYEE

DISTRIBUTOR WHOLESALER

RETAILER

CUSTOMER RS 100RS 30-40

60% -70%

OLD MARKET STRATEGY

MULTI-LEVEL MARKETING

MANUFACTURER

ONE SINGLE MEDIUM CUSTOMER

NEW MARKET APPROACH

• CUSTOMER

• CUSTOMER

• CUSTOMER

• CUSTOMER

DIRECT SELLIN

G

INTERNET

HOME DELIVE

RYOTHER

NEW MARKET STRATEGY

Considering the present scenario, where E-commerce is

booming as such a high pace, survival of MLM seems to

be tough in India. Also, people are more habitual of the

traditional distribution system.

Also, Direct selling is seen as unwelcoming, an intrusion

into ones privacy. Products are slightly more expensive &

delivery time is also long. The merits would be it saves

the time of shopping apart from a good demo of the

product by the distributor/agent.

A Strong Distribution Channel is Required In Networking

Marketing.

Comments on the concept of network or multilevel marketing. Do you think the model would be successful in India? Also, compare and contrast the MLM model with the traditional distribution system, bringing out the merits & demerits of both ?

TRADITIONAL

MARKETTING

MULTI-LEVEL MARKETTING

HUGE START-UP COSTBIZ LOCATION RENTSTORAGE NEEDEDLIMITED RESOURCES(CASH)

YEARS BEFORE PROFIT IS REALIZED

DEPENDENT ON OTHERS

GROWTH DEPENDS ON MARKET

VERY LITLE STARTUP COST

NO EMPLOYEES NEEDEDWORK FROM HOMENO STORAGE NEEDEDUNLIMITED RESOURCES(PEOPLE)

REALIZED PROFIT IMMEDIATELY

SELF DEPENDENTGROWTH DEPENDS ON SIZE OF SALES TEAM

• MANUFACTURER

• SUPPLIER• DELIVERY

AMWAY

• REGISTRATION• AUTHORISED

DISTRIBUTOR

YOU • UTILISATION• PRODUCT

USER

CUSTOMER

DISTRIBUTION CHANNEL

Study the developments that occurred after Amway launched its commercial operations in India. List the reasons, which led to the “Below expectations “ performance of the company

Four home care & Two personal care products were Launched

through Amway distribution centers (ADCs).

Amway appointed Sembawang shriram integrated logistics , and

mumbai based first flight couriers as its logistics partners for

home delivery of Amway products.

Amway assisted its three manufacturing partners ISO certified

Jejuplast at Pune, Naisa industries at daman, & Hyderabad based

Sarvotham care, to achieve benchmarking levels of product

development, engineering and quality.

Soon the concept of direct selling became acceptable and

Amway became the countrys largest direct selling company

with a revenue of 100 crore.

CORRECTIVE MEASURES ADOPTED BY AMWAY

OPERATION GAADI

QUICK EXPANSIO

N

GIVING INCENTIVE

S

OPERATION GHAR

HINDI SLOGANS

COVERAGE INDIAN LANGUAG

E

Critically examine the corrective measures adopted by Amway to make the MLM model a success. What further measures should the company take in order to tackle the competition from FMCG majors Like HUL& P&G.

PRICE REDUCTION

EFFICIENTEMPLOYEES

DIRECT SALES

CONVENIENT FOR WOMEN

EXTENSIVE TRAINING