Introduction

Amway Global (formerly known as Quixtar North America) is a multi-level marketing (MLM) or network marketing company founded in 1959, Ada Michigan, United States.
 

It is Privately owned by the families of Rich DeVos and Jay Van Andel.

It is also a member of the Direct Selling Association and the Better Business Bureau.


Amway conducts business through a number of affiliated companies in more than ninety countries in the world.

Introduction


Amway India commenced commercial operations on May 5, 1998. Amway has invested in excess of US $ 35 million (Rs. 151 crore) in India of this; US $ 6 million (Rs. 26 crore) is in the form of direct foreign investment. 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.


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

Year

Wholesale Sales (INR)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0.99 mil 2.48 mil 5.53 mil 6.26 mil 5.79 mil 6.36 mil 6.33 mil 7.68 mil 7.99 mil 11.28 mil 14.07 mil

Product Brief
Artistry was founded in 1968 by Edith Rehnborg. Artistry is among the top 5 selling prestige brands in the world along with Este Lauder, Lancme, Clinique and Shiseido. The Artistry skin care consists of four lines; Time Defiance, Essentials, Pure White and Creme Lux. In India Artistry is targeted to the upper class and the middle class consumers. Whereas the cosmetic range for the middle class is marketed under the Attitude label.


Artistry Patents
The ARTISTRY team of 500 scientists, engineers and technicians around the world have been recognized for developing cutting-edge; technologically advanced products using only the highest quality, pharmaceutical-grade ingredients at levels that perform. They have been granted over 200 patents by the US and International patent offices.

PATENTS.


ARTISTRY Published and Granted Public Patents  ARTISTRY Four-Pan Patent  Oat Extract Patent  European Patent Skin Whitening Composition Patent

Product & Brand Research

Competition: Indian Market has no potential competition
for Amway's cosmetic range, but, international market it is in competition with four other cosmetic brands.

Advertisement: Since Amway relies mostly on Direct

Sales for business. It had completely neglected advertisement until recently, when they started to advertise in the most common forms of media, two years ago.

Brand Promoters: Sandra Bullock and Kim Tyo.

Product & Brand Research

Target Costumers: Upper and Middle Class Plan of Action: Spread Awareness about its product,
Concentrate on penetrating new segments and market by increasing its ABO (Amway Business Owner) strength, Maintain optimum quality and Educating Customers.

Increasing ABO: Cost of joining reduced, new variety of

first purchase offers for new ABO's introduced which entitles them to a host of benefits and discounts, providing training and formal education of product development on a regular basis.

Product & Brand Research

Awards and Global Recognition:
Artistry Creme Luxury wins Glosscars Best New Age Management Product, Australia. Artistry named "Favorite of Consumers" in the Skin Care category, Ukraine.  Amway Global ranked #1 online Health & Beauty retailer by Internet Retailer. ARTISTRY Creme LuXury Nominated For UK Beauty Awards 2009. 2009 PRoof Awards - Gold Award, Special Public Relations Artistry for the Skin Diaries Editor Event. Artistry Creme Luxury Wins Design Award.


Product & Brand Research

Artistry Essentials wins IOPP design Award. Quixtar ranked #1 in Health & Beauty by Internet Retailer.  Artistry - Most Trusted Brand - Malaysia 2005. mway also received the Hajee Sulaiman Omar Memorial Ever Rolling Shield, by the Madurai Medical College.


Social Responsibility of Organization: In India,

social work is carried out under the banner of Amway Opportunity Foundation (AOF) a registered non profit organization.

Analysis


It is a multi-level marketing company.

It relies primarily on person-to-person referral rather than advertisements for sale of products . Though the company is present in the Indian market since more then 11 years. It is yet to make its impact.


The company's core targets are the higher class consumers.

Middle class is given negligible importance while the lower class is completely neglected. The company has recently announced ad campaigns.

Analysis


The structure of a Amway organization is hierarchical, but an individual can earn more than those who bring them into the organization. The pyramid structure on which the company does business is criticized a lot nationally and well as globally.


Strengths and Advantages

Globally renowned brand.  Premium Quality.  Negligible or No competition in its class.


Weakness
  

  

Poor global branding. Pricing. Presence of distributor between the organization and end user. Ban of sale of products in retail stores. Negligible promotion and advertisement. Packaging.

Opportunities
Advertisement.  Implementation of Penetration growth strategy.  Promotions.  Tie-ups.


Conclusion
Amway is the top direct selling brand in Indian market today.  It is also amongst the handful of brands that have a myriad of products under a single label.  One of the largest retailers in the world.


Fulfilling Customer Needs (Recommendation)



Amway has to invest more into advertisement and promotion. It also has to target and manufacturer products for the rural mass of India. It has to allow its products to be sold in retail stores rather then just relying on direct sales.


Proper brand endorsement is necessary.

Has to make attempts to infiltrate the interiors of India.



Pricing has to be reviewed.

Thank You