University Of Mumbai

“INTEGRATED MARKETING COMMUNICATION OF AMWAY”

BY 

AKASH MULCHAND GUPTA 

T.Y.B.M.S. 

ACADEMIC YEAR 2013-14 

UNDER THE GUIDANCE OFPROF: SURVI AGARWAL

CHETANA’SHAZARIMAL SOMANI COLLEGE OF COMMERCE & ECONOMICS

BANDRA (E), MUMBAI-400051

OBJECTIVE OF STUDY

213 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

INTRODUCTIONIntegrated 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.

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

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.

Amway’s Top Most Selling Brand

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'

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.

THE SUPPLY CHAIN

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.

Using Marketing Communication to Develop and Grow Amway Business

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

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.

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

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

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 customersIMC 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).

Questionnaire

Seeing Success Want to Become Success Forced by Other Distributor

55%

45%

Qualification

LiterateIlliterate

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.

intention of joining0

0.51

1.52

2.53

3.54

4.55

Seeing SuccessWant to Become SuccessForced 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

35%10%

55%

Sales

Nutrition and WellnessBeautyHome 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%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Using Contact of Other DistributerMaking New Con-tact 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.

Product0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Nutrilite, Artistry, Atti-tude, Dynamite'sGlister Toothpaste, Persona, SatiniqueG&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.

Conclusion

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.

THANK YOU