amwaY

1. University Of Mumbai
“INTEGRATED MARKETING COMMUNICATION OF AMWAY”
BY
AKASH MULCHAND GUPTA
T.Y.B.M.S.
ACADEMIC YEAR 2013-14
UNDER THE GUIDANCE OF
PROF: SURVI AGARWAL
CHETANA’S
HAZARIMAL SOMANI COLLEGE OF COMMERCE & ECONOMICS
BANDRA (E), MUMBAI-400051

2. OBJECTIVE OF STUDY
21
3
4
To find personal
media Exposure,
the distributor
will consult with
other Amway
business owner
concerning with
Amway product
ordering every
day.
To study the
effect of
integrated
marketing
communication
of Amway
through its
distributor.
To understand
the way
distributor
handle their
customer at
what extend.
To give the
clear picture of
the concept of
integrated
marketing
communication
of Amway.
OBJECTIVE OF STUDY

3. INTRODUCTION
Integrated Marketing Communications is a simple concept.
It ensures that all forms of communications and messages
are carefully linked together. while the term "multi-level
marketing" describes the compensation plan. Other terms
that are sometimes used to describe multi-level marketing
include "word-of-mouth marketing", "interactive
distribution", and "relationship marketing".
Amway (short for American Way) is an
American multinational direct-selling company
using multi-level marketing techniques that
sells a variety of products, primarily in the
health, beauty, and home care markets.
Amway's approach to direct selling is the
critical relationship between Amway and the
seller or distributor.

4. Most of the people join Amway by force of
other distributors and some of them join by
seeing success of other in Amway business.
Amway’s protestations that it’s not a
pyramid scheme; it is only through the
pyramid commission structure that anyone
can ever hope to reach their “limitless”
earning potential. On a typical sale, there is
a pyramid of distributors. Anyone over age
of 18 can establish a business as an Amway
distributor and can choose to work their
business on a part- time or full-time basis.
Why Do People
Join Amway

5. Working Style In Amway
We become a distributor for a
low, low entry fee. This makes us
a retail franchise. We sell Amway
products for a profit, or we buy
them for ourselves. But if we
want to make real money, we
sign up with other distributors.
They’ll be our down line, and
when they sell anything, we get
paid a commission.

6. Amway’s Top Most Selling Brand

7. Amway Sales and Marketing Plan
Amway practices direct selling which
is 'A method of selling goods directly
to the consumer by an independent
Distributor. A Distributor can then
introduce further Distributors and
generate income from retail profits
supplemented by bonus payments
based upon the total sales of the
group built by a Distributor'

8. Personal Touch Amway is committed to ongoing research and
development. Amway provides people with the
opportunity to achieve and to improve their lives.
ABOs (Amway
Business Opportunities)
ABOs operate independently as
small businesses. They need to
have a flexible approach to
business. ABOs determine for
themselves how they will conduct
business. This is a 'self-regulatory'
environment. However, they sign a
contract to work within Amway’s
Rules of Conduct and Code of
Ethics.

9. A supply chain links the finished products to end consumers. Amway has its own
distinct supply chain, placing a strong emphasis on its ABOs. They are able to focus
on individual customers and their needs. Amway's way of working depends on
building lasting connections with the end consumer. Feedback provided by consumers
and ABOs helps to shape future changes in products and the service provided.

11. Amway sells its products directly to the
consumer through its vast distributor network.
The company has over three million
independent distributors in more than 80
countries and territories.
By Distributor
Amway uses five marketing communications
tools to communicate with its consumer base.
These tools are:
‘Direct Selling, Sales Promotion, Sponsorship, Direct
Marketing and the Internet.’
Communication Tool
A telephone team at the Amway Information Centre
provides ongoing support to its distributor and
consumer base and handles any enquiries they may
have.
Leadership Seminar Distributors who achieve targets set by Amway
qualify for an all-expenses- paid trip to some of
the world’ s finest beach locations and hotels.
Telephone Support Line

12. This is a magazine that is mailed directly to each
Amway distributor. It is used to communicate
information about new products, promotions,
community news, and distributor events as well as
news of other affiliates throughout the Amway
world.
Amagram
These are used to communicate special information to
distributors. The Newsgram is mailed personally to
leading distributors and provides any information that
they may need to pass down to other distributors.
Newsletter and Bulletins
Special Literature:
Occasionally, Amway design a brochure or
leaflet that is used to address a particular
change or launch e.g. new car care product
range. This is then mailed directly to each
individual distributor.

13. Advertising
Educate and demonstrate to the consumer the range of
products available from Amway and how they could purchase
them aid the Amway distributors by providing further
literature (or endorsement) at a face to face meeting they
would have with their customers or potential customers.
A media schedule was prepared to encompass both
conventional advertising and publication ‘advertorials ‘or
‘reader promotions’.
The Internet
Amway, with distributors all over the world,
the potential of the Internet as a
communication mechanism is enormous. The
Internet serves as an important source and
offers Amway India a platform to define
Amway, its opportunities, products and
association.
AMWAY (India) LIMITED HOMEPAGE:
http://www.amway.co.in

14. Television
Campaign
Amway uses the slogan “We are listening “. The idea
revolves round the theme that Amway understands the
Indian consumers and the products are derived from
this understanding.
Amway Mobile
Phone Marketing
Amway India also started the
marketing activity through the
mobile phone by which ABO
logged in on the Amway website
and get the quote about the new
product launch, any renewal plan
or so on. For, the mobile phone
the website is given below:
http://amway.in/m/default.aspx

15. Benefits and Barriers for Amway by IMC
Benefits Barriers
IMC wraps communications around
customers and Amway helps them move
through the various stages of the buying
process.
Amway creates ‘Relationship Marketing'
cements a bond of loyalty with customers
which can protect them from the inevitable
onslaught of competition.
Amway that it can boost sales by stretching
messages across several communications
tools to create more avenues for customers
IMC also increases profits through
increased effectiveness.
Amway defenders would claim that they
cut out the middleman, because Amway is
“direct sales”. But this is simply not true. In
reality, Amway adds middlemen.
Amway distributors drop out within a year,
as well as Amway’s own figure that nearly
60% of distributors are “inactive”. And
finally, let’s remember that it takes at least
2-3 hours to sit down and try to sell a
prospect on the idea (based on the time
someone tried to prospect me).

16. Questionnaire

17. Seeing Success Want to Become Success Forced by Other Distributor
55%45%
Qualification
Literate
Illiterate
Q.Qualification of Amway distributor.
Literate Illiterate/ not attain school
Comment: From the data collected from the
distributor I found that the most of distributer
in company are illiterate or not went to
school.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
intention of joining
Seeing Success
Want to Become
Success
Forced by Other
Distributer
Q.Why you join Amway Company? (Illiterate)
Comment: From the data 3 out of 5
distributors are join Amway for success
and rest of other join it for some other
reason.
Seeing Success Want to Become Success Forced by Other Distributor

18. 35%
10%
55%
Sales
Nutrition and
Wellness
Beauty
Home Care &
Personal Care
Q. Which Amway product as distributor you sales most?
Nutrition and Wellness Beauty Home Care
Personal Care
Comment: The distributors of the company mostly
sales home care and personal care product and beauty
product of the Amway they sales as per the requirement.
0%
20%
40%
60%
80%
100%
Using Contact of
Other Distributer
Making New
Contact
Own Personal
Contact
Q.How as distributor you sale Amway’s product?
own personal contact making new contact
Using Contact of Other Distributer
Comment: The distributor of the company mostly sales
Amway product by making new contact and rest of the
distributor uses their personal contact as well as the
contact of other distributors.

19. 0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Product
Nutrilite, Artistry,
Attitude, Dynamite's
Glister Toothpaste,
Persona, Satinique
G&H Range, LOC Dish
Drops, Great Value
Product Range, SA8.
Q.What are the Amway products which you or a member of you family purchased?
Nutrilite, Artistry, Attitude, Dynamite's. Glister Toothpaste, Persona, Satinique
G&H Range, LOC Dish Drops, Great Value Product Range, SA8.
Comment: From the above data most of the distributor happy to
purchase Glister Toothpaste, Persona, and Satinique as it is the daily
consumable product for them while other product they use as per the necessity
or requirement.

20. Its organizational structure is based on a network of
ABOs who work independently. Therefore, it is
important that Amway sets the standards of ethical
business behavior for the people who work with, and
for, the company. It demonstrates these standards by
setting rules of conduct and codes of ethics.
Amway’s distributors are joining the company
only by seeing successful business owner
(distributer) and blindly join the company that
may not only cause to distributor but the company
also suffers loss.