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Amway A New Horizon In Direct Marketing

1S.C.S (A) College, Puri

CHAPTER-1

INTRODUCTION:-

Direction marketing is an interactive marketing system that uses one of more

advertising media to affect a measure response or transaction at any location.

Today many direct marketers like Hindustan lever, Modi industries, Amway and

Diotec etc. See direct marketing as playing broader role that of building a long-

term relationship with the customers. Direct marketing can be defined as to reach

the prospect at the right moment and receives higher readership. Direct marketing

permits the testing of alternative media in search of the cost-effective approach.

Direct marketers can measure response to decide. Which have been the most

profitable?

In the field of direct marketing Amway has played a very vital role. Amway

is a unique company. It is defined by a fundamental philosophy of helping people

help themselves. It provides unique opportunities, which offers individuals from all

walks of life to build a business of their own by selling a wide range of quality

products to consumers on a person-toperson basis.

OBJECTIVES:-

1. The current project report will help the persons interested in direct marketingcomparing with their talent and abilities.

2. This project reflects how sincerity and hard work is followed by highrewards.

3. This project helps the interested persons to explore the leisure time andconvert it into a productive time.

4. It will help to clear the shadow before customers as regards to the benefit todirect marketing.

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SCOPE :-

This project report is confounded to some basic aspects of Amway, the pioneer in

direct marketing due to the characteristics of requiring limited time and cost. This

report reflects the role of Amway in the field of direct marketing. This report is

mainly based on secondary data. However, this project will be very helpful for

further research.

LIMITATION :-

While preparing this project, I have faced some difficulties. Hence, they are the

limitations of this project:-

1. This project report is limited due to the vast concept of direct marketing.Which cannot be explained in such limited spaced project?

2. Some of the personal problem like lack of sufficient founds and sufficientinformation also limited this project.

3. The datas on Amway is only provided to its members. Which itself a veryhard task for me to collect these informations without being a member of it.

METHODOLOGY :-

The project study is complied from various Newspapers, Amagram, Newsgram

(Amway mazagines), journals and agents manual etc.

The most important source of information this project cames from Amways

agents manual. The secondary data are explained with examples through the help

of table and diagrams. In this report some mathematical symbol like %

(percentage), (Ratio) etc. are used for calculation.

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CHAPTER PLAN

CHAPTER -1 : Introduction

CHAPTER-2 :Amway-A New Horizon In Direct Marketing

CHAPTER3 : Amway Sale And Marketing Plan

CHAPTER-4 : Financial Analysis

CHAPTER-5 : Conclusion

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CHAPTER-2

AMWAY-A NEW HORIZON IN DIRECT

MARKETING

INTRODUCTION TO PROJECTOur objective of the study is to understand the Amways operations in

international marketing with respect to PESTLE analysis, SWOT analysis,

Marketing Mix (Product, Price, Place, Promotion, Packaging and People) and also

we have compared its operation domestically and internationally. To understand

the former part, we have visited Amway India and gathered appropriate

information with regards to project.

We have analyzed the information of the companies with respect to above

determinants and prepared relevant statement. After all our proceeds we get to

know that this retail company enhanced its business through Direct Marketing and

created both Health & Wealth to its customers.

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DIRECT MARKETING: A UNIQUE CONCEPT:Direct selling- Meaning: the sale of consumer products or services through

personal contract (Amway from the conventional marketing concept i.e. through a

chain of middle man where every customer has to buy products from a fixed retail

location or shop). World wide the number of direct sellers is growing at 220,000

per week. According to a survey report published by Harvard University-

Business School over 50% to 60% of the products will be sold through direct

marketing (Multilevel marketing) in the coming years.

In other wards multilevel marketing allows sellers to build a business

through their own sales efforts and inviting other to become sellers. Remuneration

is based on a sellers personnel sales and combined sales of those people they have

sponsored, trained and motivated.

BENEFITS TO CUSTOMER:The form of marketing goods of services directly to customers takes place.

At the customers convenience Often in his/her home place Either on a one-to-one basis or in a group

Customers value the advantages of:-

Convenience Personalized attention A good section of products Ability to examine the products for a person of time protected by a customer

refund policy.

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Benefits to the seller:-

Many people have chosen direct selling because they want to have their own

business. But can not do it for the following reasons:-

Requirement of huge funds for starting a business. Commitment of sufficient time about 12-14 hrs which is a hard task. Lack of expensive and knowledge. Legal problems. Hiring of space and employees Maintaining of accounts Limitations of markets.

TOP FIVE REASONS OF DIRECT SELLING BY THE

PEOPLES.

Because they like and believe in the product, which are of absolute ofpremium quality.

Because, they like being on IBO (independent business owner) and workingat the spare time.

Because they like the supplemental family income or like making huge sideincome to fulfill their dreams and ambitions.

Because of its world wide recognition. Because for enjoying networking and meeting people and of cause, love to

help others.

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BENEFITS TO THE COMPANY:-

In todays world of rapid change, direct marketing offers companies:-

Easy and simple direct distribution channel.

High accessibility where time and domain is no bar. By passing the rigid and costly traditional distributional channel.

AMWAY-THE PIONEER IN DIRECT MARKEETING :-

AMWAY STORY:-

A distinguished lineage:- companies across the world, run on the twin railsof profit and growth. But some companies are driven differently. At Amway our

philosophy is defined by commitment. Trust enduring relationships and the ideal of

perfection above profit. From a humble beginning in 1959, using an old gas

station, Amway the brain child of co-founders rich Devos and Jan van Andel, is

now one of the worlds largest and successful Direct selling companies. Between

then and how. Amway corporation has grown into a us multi billion dollar

company managed by over 12000 employees. It operates across 88 countries and

territories, through a sales- force of over 3 million Distributions. The company

manufactures 450 products, and markets more than 3000 internationally reputed

brands. Over 500 R &D scientists and professionals ensure the exceptional quality

of our products across 5 product lines:- Home care, personal care, Home Tech,

Cosmetics, Nutrition and Wellness. Conscious of its global responsibilities as

mature and reputed corporate citizen, Amway binds its Distributors to operate their

business in concert with the Rules of conduct. The code of ethics and the Rules of

conduct defines best businesspractices mandatory for Distributors. Amways code

of Ethics and its sales and marketing plan have set standards for the Direct selling

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industry internationally. The company is also a long-standing, active number of the

(WFDSA).

Amway is committed to expanding the environment awareness of all people

in the world. In June 1989, Amway was presented with the united Nations

Environmentprograms Environment Achievement award. This award recognized

Amways commitment to environmental education and awareness.

Amway is more than an income opportunity or a company or produc ts. Its

about putting people in control of their lives. Its about connecting people to others

who respect them, who share their goals and aspirations. Its about supporting

people in their achievements. Amway is about people connecting people to a better

way of life.

Amway has more than 6000 employees worldwide. In addition, Amway has

more than 3.6 million Independent Business Owners (IBOs) around the world. In

China, Amway products are sold by Amway sales representatives.

THE COMPANY:-

Amway corporation founded by Rich Devos and Jay Van Andel at ADA,Michigan, USA in 1959.

The largest direct marketing company in the world and 22nd privately heldcompany in USA.

AMWAY has already invested over Us $ 35 million in India of which is $ 6million is in the form of direct foreign investment.

Largest manufacture of vitamins and Nutrition supplements in the world. One of the top 11 cosmetics companies in the world. Business is more than 87 countries and territories. In none of the countries

this plan has ever failed to work.

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Independent distributor force more than 40,00,000 world wide and morethan 50,00,000 in India.

In the first three weeks of operations, it has already surpassed the total turnof all other networks- marketing companies active in India market for the

last few years.

AMWAY FOUNDERS FUNDAMENTALS:-

Rice Devos and joy Van Andel built the business on the following

principles, which they and their families believe constitute a sound foundation for a

meaningful life:

1.Freedom: Provides most conductive environment to live, work, achieve and grow. Operate as independent business people. Conduct a full-time or part-time business.

2.Family:- Our primary social structure provides values, framework for growth and

ability to thrive.

Family- owned business, passed on to generations. An attempt to strengthen family ties.

3.Hope:- Power to transform lives positively. Opportunity to establish and run a business irrespective of social status,

profession or educational background.

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Benefits to consumer:

The company offers world-class produce, Which exceeds consumer expectations.

The consumer benefits from the Amway sales model because it ensures

convenience and reliability.

The consumer makes a purchase in the comfort of his/her home. From someone he/she knows. The purchase is made after demonstration of usages which revels each

attribute of the product and corrects product usages.

A customer product refund police, which promise product return and refundif the consumer is not satisfied with it, governs each purchased.

Salient Features:-

No formalities:- Amway offers any one, any where entrepreneurship and the

opportunity to own an opportunity to own an independent business as an

independent Amway distributor.

Needs no specialization:- The prospective distributor not needs specialist

skills, influential contact or bank loan.

Less money with determination:- He or she needs a nominal amount of

money and determination with desire to succeed.

Success rate:- Amway distributors has emerged as successful business

persons, with many more joining the ranks every month.

Realizing self worth:- Amway helps people from all walks acquire a sense of

self worth.

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Hither quality standard:- Every product satisfies Amways impeccable

quality standards and is comparable to the best internationally.

Well proof:- All Amway products carry a tamperproof seal. Amways

products are not tested on animal. Are bio degradable and phosphate-free. Amway

encourages the return of its product bottles for recycling.

Best in usage value and quality:- Amway products are unique usage and I

quality. A key feature of Amway products is their highly concentrated formulation

which offers excellent. Value-for-money. Another attribute of Amway products

are produced by small/ cottage manufactures across the country. Most of them

never find a marlset. For want of a distribution and sales option for small

manufactures.

No requirement of shopping:- The consumer and the distribution can shop

without shopping. It has introduces the consumer and distributor to five ES:

Ease of ordering: Picks up the phones and order the products you need

Ease of deliver: An order is delivered to the door step within 48 hours.

Ease of payment: payment in cash or cheque from home.

Ease of information: Distributors can access information first-hand.

Ease or return: A distributors has the freedom to quite the business and products.

The opportunity:-

The best payment opportunity in the world, considering its Low cost low riskand high return profile.

Any body can join irrespective of their Educational qualification, experienceand social technical status.

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Start up cost Rs 4200 only (cost of a B?W TV or a saree)+ cost ofeducational material.

No space required can be run from home.No staff required, only Husband and wife could run the show (if married). No inventory, no blue king of investment. Expertise, available 24 hours week (all calculation) for you. No competition, possibility to grow internationally. Need to transact about Rs. 2000 per month and unlimited income scope. Only 10-12 hours per week needed from space / free time to build your

business.

Residence income generating future security and you financially free. You also earn free time to enjoy your income with your family and friends

and offers much more than just money.

Income is willable, inheritable and inflation adjusted. A unique chance to help people to help themselves. Scope to spend quality time with quality people, which lead to simple

thinking and high living ultimately a quality life.

A time tested business plan which has always met with success in differentcountries in a variety of social, cultural, religious, political and financial

environment.

There is a scientific, methodical and elaborate back up system (BRITTWORLD WIDE) making success predicable for any body having an urge to

succeed.

Honestly, integrity and Ethics are the basic of this business. There is no buss, no geographical jurisdication and to target set by the

company.

No exit barrier and hasslefree refund policy (with in 90 days).

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AMWAY INDIAINTRODUCTION:-

Amway India was established in 1995. It commenced commercial operations

in may 1998; it started work in the social sector in 1996. In the brief period since

launch, it has emerged as the countrys largest direct selling company. Over

3,50,000 entrepreneurs have adopted the Amway business opportunity; several of

them have grown to become successful business leaders.

Amway has invested in excess of us $ 35 million (Rupees 151 crores) in

India of this, US $ 6 million (Rupees 26 crores) is in the from of foreign direct

investment. Amway India has opened over 40 offices and through them services

about 400 cities and town across the country.

COMMITMENT:-

To make a significant contribution to the communities in which we live and works

throughout the world. Amway is not limited to corporate bottom lines; thecompany is a nature corporate citizen. For over 40 years, across the globe, we have

been sensitive to the needs of the communities in which we operate.

Reorganization for this has come from several governments and organizations

including the United Nations.

Amway opportunity foundation (AOF):-

1. It is the social responsibility arm of Amway India. AOV donated a state-of-the-art mobile dental clinic to the Rotary club, Delhi midtown, for the USA in slum

areas in 1996. Operated by the Rotary club, this clinic offers free dental check

up and care six.

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2. 7 Days a week, 52 weeks a year, to the underprivileged in and around Delhi.3. Amway made a significant endowment to the faculty of management studies

(FMS) Delhi University, in 1998. This led to the creation of the Amway chair

on entrepreneurial development at the FMS. This endowment had been made

with the intention of encouraging entrepreneurial study.

4. AOF commenced its national project for the Blind in 1998. This ambitious plansought to print and distribute Braille textbooks to the blind school -going

children in different states of India.

5. AOF has supported the Terry fox run at Bangalore, in 1998-99. This is an eventorganized around the world, in did of cancer research.

6. AOF had supported the production of audio textbooks for undergraduate aswell as postgraduate students of Bangalore University, with ALCB also

supports the National Braille reading contest held by AICS in Delhi on Jan 4 th ,

which is designated as the Louis Braille Day. A part of this programmed pits

blind students against children of normal version, in debate etc.

7. AOF has also supported Dr. Shroffs Charity eye Hospital in conducting thepersonality development/ communications workshops for the blind, held on

Hyderabad, Delhi Mumbai, Ahmadabad, and Chennai. Alwar and Shimoga.

Women stepping out to face the world, the blind need that extra confidence

which is what this workshop dims at proving.

8. AAOF has also set up a specialized compute center with the RamakrishnaMission Blind boys Academy, Narendrapur, and Calcutta. This is to be the first

such center in education India and will enable blind-school-going children to

learn this vital skill of the 21st century.

9. AOF has donated a sum of Rs. 30 lakhs to child relief and you (cry) towardsrehabilitation to the affected persons of the Gujarat earthquake.

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PRODUCTS AND SERVICES:-Over 450 unique quality products curry the Amway name in the field of

personal care, nutrition and home care, home tech and commercial products plus a

variety of services in addition. The world class Amway products are selected after

careful evaluation, testing and stability to ensure consistent quality materials

meeting Amways stringent requirements. Amway distributor in some markets sale

addition brand-name goods through merchandise catalogues plus verity of service

and educational products. Amway nutritive division is he worlds largest

manufactures of brands vitamins and mineral tablets or cup sales from based on

1996 sales. Based on Euro monitors study of 1996 estimated retail global sales date

Amway ARTISTRY line is largest selling direct sales brand of facial skin care and

colour cosmetics in the world. All Amway India products / bottles are

manufactured through third parties contract manufactures using world-class

technology and process. The products match Amways global quality standards.

They carry a temper-proof seal and a customer Refund Policy. It not completely

satisfied with the product, the customer could return it for a refund. Amwayproducts are environment friendly, and are not tested on animals. Amway

encourages the return of its used products bottles for recycling and to prevent their

misuse. An aggressive product launch plan introduced new products every few

months.

Over 450 unique, high-quality products carry the Amway name in the areas

of nutrition, wellness, beauty and home, as well as commercial products and a

variety of services (from which 105 products are offered in India). In addition,

Amway independent business owners in selected markets sell additional brand-

name goods through local merchandise catalogues, plus a variety of services and

educational products. All products are backed by a customer satisfaction guarantee.

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Nutrition and Wellness

Nutrilite is the worlds leading brand of vitamin, mineral, and dietary supplements,

grown harvested and processed on its own certified organic farms.

Cosmetics

Our skin is the outward appearance of who or what we are , or what we would like to be.

But it is more than a simple cover. It is the largest organ of our body - a complex and

dynamic system that is vital to our health and reflects it as well.

Artistry

Artistry is one of the worlds top five largest-selling prestige brands of facial skin care

and colour cosmetics.

Attitude

All products of Attitude contain Skin Vitalizing Complex that synergistically combine to

cleanse, Replenish & Moisturize the skin making it soft & supple.

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Home Care

Amways Home Care Brands provide complete cleaning systems that fit with everyones

needs. Their versatile, effective product systems offer the features and benefits

consumers want. No matter what your lifestyle, Amways Home Care products makelight work of your cleaning chores.

SA8

SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and softens.

LOC

LOC High Suds is a multipurpose household liquid cleaner.

Dish Drops

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic

Detergency System".

Personal Care

Amway Personal Care products have built global reputation based on their world-class

research and development. These products are designed to deliver the ultimate grooming

experience and the confidence that lasts long.

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Glister

Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that

offers seven benefits.

Persona

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises

refreshing confidence.

Satinique

Satinique Advanced Range with unique Ceramide Infusion System uses nature'sown renewing technology to rejuvenate, strengthen and protect your hair.

Dynamite

Dynamite's range of male grooming products, formulated internationally is

designed to deliver the ultimate grooming experience.

G&H

G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes

and hydrates the skin for a healthy glow.

Apart from this Amway also deals in Air purifiers and Water purifiers, Jewellery,

Electronics, & Insurance products.

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Manufacturing Strategy

Almost all Amway India products are manufactured in the country through

third party contract manufacturers. With the exception of Cosmetics range

(Artistry*) and some products in Nutrition and Wellness category, all Amway

India products and bottles are manufactured in India.

The products match Amways global quality standards. 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 products are

environment friendly, and are not tested on animals. Amway encourages the return

of its used product bottles for re-cycling and to prevent their misuse.

To bring the identified contract manufacturers production facilities and

skills to international standard, Amway has invested in excess of US$ 4 million

(approx. Rs. 17 crore). The transfer of this state-of-the-art, world-class technology,

has been free of cost.

Different Types Of Provided Through AmwayHome Care

L.O.C. Liquid organic cleaner ]

DISH DROPS : hand dishwashing liquid detergent

SEESPRAY : Window cleaner converntrate

XOOM : Concertrate

SA8 : Gelzyme with natural softer

SA8 : Delicate liquid Detergent

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BUffuo

PERSONAL CARE RANGE

Satiniqure : 20 in 1 shampoo & Conditioner

Satinique : Dandruff control conditioner

Satinique : Dandrauff control shampoo

Nature Shower : Crme hand soap

G&H : Body Shampoo

G & H :- Loation

Glister -5-1 Tooth brush Family

Toot brough

FersonaTable

NUTRITION & WELLVESS

Iutrilite : Protein powedr

Nutrilite : Protein power

Nutrilate : sibberian Ginseng withGingko Biboba

NUTRILITE : Triple Guard Echinacea

NUTRILITE : Guluconsamine IICL with Buswaellia

Nutrilite : Daily

Nutrilite : Kinds

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Quality Assurance (QA)

Amway QA personnel ensure stringent Quality checks at the contract

manufactures. Every batch of finished product is sampled using Military Standards

Sampling Technique and inspected to ensure compliance with specification and

conformance checklists.

Formulation

The flavors and fragrance used in Amway products do not use carcinogenic (

cancer causing) compounds.

Corporate Social ResponsibilityEnhance human resource development through opportunity and self

employment.Create popular opinion on the benefit of organized direct selling through

several seminars.Follow code of ethics and rules of conduct Audit down by the ward

federation of direct selling ( WFDSA)To encourage the entrepreneurs to follow ethics business practices by

adhering to rules and regulation of the country governing business.Community development through Amway opportunity foundation (AOF)

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REWARD AND RECOGNITIONThrough out the Amway world the company provides many motivation tool to its

distributors to accomplish significant business goals

It encourage distributors to sell products and sponsor other distributor

through an extensive sytem of a awards and rewards that recognize the increasing

amount of effort required to achieve higher performance levels.

What are rewards?

All distribution are eligible to receive financial rewarded based on their selling

products by their sponsored group. This includes :

Retail margin / profit Performance incentive Additional monthly commissions Annual commissions Onetime cash commissions Funders achievement awards.

Distributors are eligible to receive ( Awards)

Personal recognition recognition from Amway Personal recognition, wawards including pins ( silver producer on wards) Certificates and plaques ( Sirect Distributo onwards ) Recognition in Amagram.

Levels of Recognition

Silver producer :- A silver producer has attained a qualifying month at 21%level with a group voume of 10,000pv.

Gold producer :- A gold producer lever producer has attained threequalifying months at the silver producer level within a rolling 12- month

period.

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Platinum :- A platinum has attained six qualifying months at silver producerlevel at least three of which are consecutive, in a rolling 12month period.

Ruby :- A Ruby is a qualified platinum who has attained at least 20,000personal group PV in any one month during the fiscal year in market.

Founders platinum : A founders platinum has attained who has maintained20,000 personal group pv for all 12 months in a fiscal year-in market.

Supphire : A sapplhire is a qualified platinum who has sponsored 2 domestic21% legs in the same month, for 6 months in a fiscal year, whilst

maintaining 4000 personal group pv of has a third 21% leg in the absence of

4000 GPV in any months.

Founders sapphire : A founders sapphire is a qualified platinum who hassponsored 2 domestic 21% legs in the same month, for all months in a fiscal

year, whilst maintaining 4000 personal Group PV or has a third 21% leg in

the absence of 4000 GPV in any month.

Emerald :- An emerald is a qualified platinum who has sponsored 3 legs,each of which was of the 21% performance. Bonus level for least 6 months

of the fiscal year.

Founders Emerrald :- A founders emerald is a qualified platinum who hassponsored 3 legs, each of which was at the 21% performance Bonus level for

all 12 mionths of the fiscal Year.

Diamond :- A diamond :- A diamond is a qualified platinum who hassponsored 6 legs, each of which was at the 21 % performance Bonus level

for at least, each of which was at the 21% performancr Bonus level for at

least 6 months of the fiscal year.

Founders diamond :- A founders diamond is a qualified platinus who hassponsored 6 legs each of which was at the 21% performance bonus

Recipient who has achieved 8 FAA points.

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Executive Diamond : An executive diamond is a qualified platinum who hassponsored 9 legs, each of which was at the 21% performance. Bonus level

for at least 6 months of the fiscal year or is Diamond Bonus Recipient who

has achived 10 FAA points.

Founders Executive Diamond : An founders excutive diamond is a qualifiedplatinum who has sponsored 4 legas, each which was at the 21%

performance. Bonus level for all 12 months of the fiscal year or is a

Diamond Bonus Recipient who has achieved 12 FAA points.

Double Diamond : A double diamond direct distributor has sponsored 12legs, each of which was at the 21% commissions level for at least 6 months

in a fiscal year.

Founders Diamond :- A double diamond direct distributor has sponsored12% performance Bonus level for all 12 months of the fiscal year.

Triple Diamond : A triple diamond direct distributor has sponsored 15 legs,each of which was at the 21 commission level for at least 6 months in fiscal

year.

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CHAPTER -3

AMWAY SALE AND MARKETING PLANThe sales and marketing plan is the cornerstone of the Amway business. It

encourages distributors to sell products and sponsor other distributors through an

extensive system of Awards and Rewards that recognize the increasing amount of

effort required to achieve higher performance levels. To build a successful

distributorship, distributor must sell products and sponsor other individuals as

distributors.

The Amway is private co operative organization. The Amway Sales andMarketing Plan put you in control, allowing you the flexibility to work where and

when you want, giving you time for family and friends as well as the opportunity

to earn a good income. It adapts easily to your needs and ambitions, and grows

with them, offering you all the personal support and assistance you require to

become the Business Owner you want to be. With Amway you are Connected to

the global leader in multilevel marketing, with over 40 years of experience,

Supported by great products and people who will help you succeed, and finally In

Control of your life.

The Amway Sales and Marketing Plan is a low risk, low start-up cost

business opportunity that is open to everyone. It allows you to build your business

through retailing products and sponsoring other people who, in turn, can retail

products and offer the business opportunity to others. By passing your sales and

marketing knowledge to your developing team, you not only build your own

business network but also enable others to build one of their own.

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Merchandising Amway Products :

High-quality Away product are the key to your success- your customers will

like them and use them and recommend them to other. Because Awway products

are Consumable you will be providing regular replenishment to your

consumers, giving tyou the opportunity to demonstrate lost of other. Amway

products as will any of your distributors who merchandise products to their

customers. In addition, you have the opportunity to receive commissions from

Amway based on monthly product volume. Amway products are the foundation

open which your business growth will occur. Satisfied Amway customers not only

help your business to grow in terms of product sales, they are also an excellent

source of potential distributors because they know the products and use them

regularly.

Seven keys to merchandising Amway products :

One must have to develop his skills to help his customers purchase Amway

products and then establish long term relationship with them by providing

excellent service.

Product knowledge Finding Customers Approaching Customers Creating Merchandising Helping Customers to purchase Finalizing the purchase Maintaining customer relationship

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Sponsoring new distributors

The second method of expanding your business is by sponsoring other distributors

and training them to demonstrate Amway products and sponsor new distributors

themselves. As your group grows, it will purchase and sell greater amountnts of

products and increase your income accordingly.

Distributors can generate income in two ways :

1. Retail Sales Profit :

Distributors purchase product from Amway at distributor cost and them sell these

products at a higher price ( not more than printed MRP). Distributors keep this

difference which is the retail sales profit.

2. Performance incentive :

Performance incentives are based on monthly calculation of distributors receive a

performance inceptive cheque from Amway. The amount of this performance

incentive is calculated from two sets of numbers- PV and BV which are assignedto must Away products. Distributors earn PV and BV on Products purchased from

the Amway affiliate, they may use the products themselves of sell them to

customers.

Performance incentive table

If total monthly P.V is B.V is Performance incentive

10000 400,000 21% of my B.V7000 280,000 18%4000 160,000 15%2000 80,000 12%

1000 40,000 9%500 20,000 6%100 4000 3%

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1. Discount :- Performance incentive percentage applied to the B.V of ones own

purchased for the month.

2. Commission : Difference between ones own performance incentive and the

incentive percentage of any of his distributor multiplied by the BV of his business

group.

P.V ( Point Value )

It is the unit amount assigned to each product. It is an effort index which puts

emphasis on the units sold and the selling price. Each month PV is totaled in order

to determined the performance incentive bracket. These bracket range from 3% to21%.

B.V. ( Bonus Volume)

It is monetary figure assigned to each product. In order to calculate the

performance incentive, the percentage amount determined by total PV applied to

the total BV for for the month. The ratio of PV to BV in India IPV & 40BV.

Distributors income plan

i. Retail Profits

ii. Commission Payments

iii. Discounts.

i. Retail profits ii. Commission payment

MRP-DAP % of Group PV

iii. Discounts% of own P.V

MRP: Maximum Retail Price

DAP: Distributor Acquisition price

PV: Point value

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BV: Business Volume

DAP : Sales Tax + Business Volume

BV ( Business Volume) = 40 X PV

Example

E-4111-ID car wash

DAP : Rs 175BV : 155PV : BV/40=3.88inciple

CASE 1 CASE-2 CASE-3 CASE-4

Total distributors

=You + 9 +54+162 =226

9 You sponsor

9people

54 9 distributors

Sponsor 6 peopleeach

162 54 distributors

Sponsor 3 people

Example

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

50PV

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Ones sponsor 9 people

9 distributors sponsor 6 people each

6 distributors sponsor 3 people each

WELFARE ACTIVITIES OF AMWAYUnited Nations Environment Programme Achievement Award:

Products are Eco-friendly and Bio degradable in nature. The flavors andfragrances used in Amway products dont used carcinogenic ( Cancles

Causing) compounds.

Water used for manufacture of all products is purifiled in the hitech watertreatment plant using ion exchange. ( 1n 85 tages.)

Customer satisfaction guarantee ( money refund with in 30 days) Manufacturing 450 products in five segments such as personnel care home

care, home tech nutrition and wellness and cosmetics.

More than 8000 products and services to available from 300 othermultinational companies who have tie up with Amway.

More than 350 patents worldwide. 500 top level scientist are involed in quality control and research and

development.

More than 14,000 employees worldwise. 57 laboratories, marketing units and ware houses in 380 acres of land along

a length of 2.4 kms. At Ammway Head Quarters, Ads, Michigan.

Total covered area in excess of 1 millionsq. Ft. Global turn over 7 billion. A tremendous track record of growth in this

decade in this decade in spite of golobal recession.

Japan in this decade in spite of global recession. 2nd largest foreign company after of Coca- cola in Japan.

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Japan is the Amways largest market. Rated by dun & Bradstreet as 5A+ (highest rating) Company for financial

soundness.

One of the few debt-free corporations ever in the world. One of the few corporations having no public money.

Amway Opportunity Foundation

Activities Include :

Donated a state-of-the-dental mobile dental clinic to the Rotary Club, Delhiand Town, in 1996.

Presented a 20 volume Braille set of the Websters Dictionary in English,to the Delhi Blind School.

Made an endowment to the faculty of management studies (FMS) Delhi, in1998.

Supported the Terry Fox run, in aid of cancer, research, at Bangalore, in19989-99

Supported the production of audio textbooks for under graduate as well aspost- graduate students of Bangalore university.

Donated a sum of Rs. 30 lacks. To child Relief and you (cry) towardsrehabilitation to the affected persons of the Gujurat earthquake.

Supported the Autism week in December 2001 ( 14-21) held by Action forAutism, a Delhibased group.

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CHAPTER-4

FINANCIAL ANALYSISMeaning of financial statementSummary report that shows how a firm has used the funds entrusted to it by its

stockholders (shareholders) and lenders, and what is its current financial position.

The three basic financial statements are the (1) balance sheet, which shows firm's

assets, liabilities, and net worth on a stated date; (2) income statement (also called

profit & loss account), which shows how the net income of the firm is arrived at

over a stated period, and (3) cash flow statement, which shows the inflows and

outflows ofcash caused by the firm's activities during a stated period. Also called

business financials

Meaning of Financial analysis:-The process of evaluating businesses, projects, budgets and other finance-related

entities to determine their suitability for investment. Typically, financial analysis is

used to analyze whether an entity is stable, solvent, liquid, or profitable enough to

be invested in. When looking at a specific company, the financial analyst will often

focus on the income statement, balance sheet, and cash flow statement. In

addition, one key area of financial analysis involves extrapolating the company's

past performance into an estimate of the company's future performance.
http://www.businessdictionary.com/definition/summary.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/funds.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.businessdictionary.com/definition/lender.htmlhttp://www.businessdictionary.com/definition/current.htmlhttp://www.businessdictionary.com/definition/financial-position.htmlhttp://www.businessdictionary.com/definition/basic-financial-statements.htmlhttp://www.businessdictionary.com/definition/balance-sheet.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/liability.htmlhttp://www.businessdictionary.com/definition/net-worth.htmlhttp://www.businessdictionary.com/definition/income-statement.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/capital-gain-loss-holding-period.htmlhttp://www.businessdictionary.com/definition/account.htmlhttp://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/period.htmlhttp://www.businessdictionary.com/definition/cash-flow-statement.htmlhttp://www.businessdictionary.com/definition/outflows.htmlhttp://www.businessdictionary.com/definition/cash.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/cash.htmlhttp://www.businessdictionary.com/definition/outflows.htmlhttp://www.businessdictionary.com/definition/cash-flow-statement.htmlhttp://www.businessdictionary.com/definition/period.htmlhttp://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/account.htmlhttp://www.businessdictionary.com/definition/capital-gain-loss-holding-period.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/income-statement.htmlhttp://www.businessdictionary.com/definition/net-worth.htmlhttp://www.businessdictionary.com/definition/liability.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/balance-sheet.htmlhttp://www.businessdictionary.com/definition/basic-financial-statements.htmlhttp://www.businessdictionary.com/definition/financial-position.htmlhttp://www.businessdictionary.com/definition/current.htmlhttp://www.businessdictionary.com/definition/lender.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/funds.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/summary.html

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Financial Results of Amway India for the Year ended 31st

2011

Particulars 9 month

ended 31st

July 2011

Quarter

Ended31st

Oct 2011

Quarter

Ended31st

Oct 2010

Year

Ended31st

Oct2011

Year

Ended31st Oct

2010

1. Income fromoperation

8754.6 2476.2 2167.1 11230.8 9812.5

2.Other income 123.6 16.2 135.0 139.8 273.2

3.Total Expenditures

a.Staff cost 17773.5 322.1 622.1 2395.6 2395.6

b.Advertising cost 345.6 135.2 138.8 480.8 616.2

c.Other cost 2898.2 658.3 912.3 3556.5 3222.1

d.Diminution in

the value of

investments

0.22 0.12 4.1 0.34 4.1

4. Interest 254.5 31.2 28.0 285.8 273.9

5. Depreciation 409.4 102.3 120.3 551.7 533.9

6. Profit before tax 3451.28 943.18 471.4 394.46 3015.8

7. Provision for tax (NET) 1173.44 320.68 186.7 1494.12 1172.8

8.Deferred tax (NET) 162.3 45.6 13.5 116.7 89.3

9. Net profit 2440.14 576.9 271.2 3017.04 1932.30

10.Paid-up equity share

capital (Face value of Rs10 per share

1458.3 1458.3 1458.3 1458.3 1458.3

11.Reserve Excluding

revaluation reserve

----- ---- --- --- 9139.5

12.Dividend per share( in

Rupees)

---- ---- --- 4.0 3.3

13.ESP basis & diluted 1.9 13.3

14. Aggregate of non-

promoters share holding:

number of shares

466500(32) 4665600(3

2%)

5833333(40%) 4665600.(32

%)

5833333(40%

)

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CHAPTER-5

FINDINDING, SUGGESION, CONCLUSION &

BILIOGRAPHY

FINDINGTo be connected to an Amway Independent Business Owner (IBO) in your

area, or to learn more about Amways great products or our business opportunity,

sign up as a customer or to start your own business.

Also, learn more about the Independent Business Owners Association

International (IBOAI). For over 50 years, the IBOAI has been the official

advocacy organization for IBOs. Visit www.iboai.com for more information.

If you want to take your skill-set to the next level and find free Amwayleads, you first need to believe that it is possible to become a successful Amway

marketer. The mind is a powerful thing and if you believe that you can become

successful, you will.

Before we go into discussing how you can find Amway leads, let's discuss

your mindset. To be able to get even just one lead, you first need to start to believe

in yourself. If you do not have the proper mindset, that will carry over to your

prospects and will net you little if any results.

SUGGESTIONS

Trial packs should be used because customer must have to introduce theproduct. Once customer gets idea about product he comes to know

advantages of products.

The products should be cheap the home delivery system takes at least twodays to deliver the products so the delivery should be instant.

There must be multiple options for purchasing the products for distributerslike online, tale and instant purchasing.

In every city, the Amway office should be situated in such a location so thatit is in reach of all distributers.
http://www.iboai.com/http://joinjosephinemonty.com/how-to-sponsor-network-marketing-reps-for-your-network-marketing-business-starting-today/http://joinjosephinemonty.com/how-to-sponsor-network-marketing-reps-for-your-network-marketing-business-starting-today/http://joinjosephinemonty.com/how-to-sponsor-network-marketing-reps-for-your-network-marketing-business-starting-today/http://joinjosephinemonty.com/how-to-sponsor-network-marketing-reps-for-your-network-marketing-business-starting-today/http://www.iboai.com/

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CONCLUSION

Amway Corporation has succeeded for almost four decades due to its

proper, ethical and honorable addition to the return market price. It is a world

leader in direct marketing for it outstanding characteristics ranging from business

opportunities with versatile qualitative products to different kinds of rewards to its

members, It has also taken various social welfare activities for developing the

human value. In 1962 Amway became an international company when its first

foreign affiliate in 60, making the Amway opportunity available in more than 100

countries and six continents. He was Sanjay Jain of Balesore, who fist grought the

Amway business to Odisha.

Today direct selling is $ 85 Billion a year industry, with more than 25

million sales people worldwide Rich Devos and Jay Van Andel where

staunchly committed to the Direct Marketing concept from the very beginning.

Perhaps family member Nan Van Andel summed it up best when she said,

You have to want Amway to go on, not for your self interest, but because Amway

helps people to help themselves. The Amway opportunity has been a God sent forthe millions of people to help whose lives have been touched by this business and

who have discovered some thing of value that could never found anywhere else.

A key element to this success is the reorganization by govts. To Amway as

an ideal model of marketing system.

The main objective of Amway foundation is to develop the people to an extent,

where they will enjoy both time and monetary freedom so, when Amway

distributors succeed, Amway succeeds.

If we will observe the 44 years history of Amway, we will be of no wander that it

is The best business opportunity in the world.

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BIBLIOGRAPHY

www. amway.com

www.amwayindia.com

www.google.com

www.amway financialanalysis.com

TANKS
http://www.amwayindia.com/http://www.google.com/http://www.amway/http://www.amway/http://www.google.com/http://www.amwayindia.com/

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