CONCEPT OF DIRECT SELLING IN AMWAY - PowerPoint PPT Presentation

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CONCEPT OF DIRECT SELLING IN AMWAY
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CONCEPT OF DIRECT SELLING IN AMWAY

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  1. CONCEPT OF DIRECT SELLING IN AMWAY

  2. AMWAY • 1959 • Amway Corporation, USA, present in 80 countries • Product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics • Revenue - US$ 9.2 billion (2010)

  3. AMWAY IN INDIA • Came in 1995 but started operation in 1998 • Initial investment of 26 crores • Launched six products • Currently sees India among its top 2 or 3 markets • Getting the pricing right for Indian market • Global model fixed quantity variable price but Indian model variable quantity fixed price • Baddi plant (80% of products in India) • Strong distribution • One of the three location of production after US and China

  4. Amway India has 500 full time employees and has generated indirect employment for 2000 persons at all the contract manufacturer locations. • The Company has provided income-generating opportunities to over 550,000 active independent Amway Business Owners. • Amway India provides free and unlimited training to all its distributors to help them grow their business. Amway India conducts over 20,000 training sessions during an average 12-month period with an attendance of over 1.5 million Amway Business Owners and prospects. • Amway India recorded a sales turnover of over Rs. 2130 crore in 2011, up from Rs.1790 crores in 2010.

  5. MARKETING OF AMWAY • Direct selling i.e. through people • First time national and electronic media campaign in october 2007 • E-commerce website for ABOs for ordering the products(Amvio is the name of domain)

  6. DIRECT MARKETING IN AMWAY • More than 5 lakhs ABOs • 127 pick up centres • Delivering 4000 cities • 50 service centres • Start up cost for ABO from 5000 to 995 Rs

  7. FUTURE PLANNING • Targeting 2500 crore by 2012 • 300 pick up outlets

  8. Sales & Distribution Channel of Amway As Compared to the old

  9. PROBLEMS FACED BY AMWAY A balance between the price , cost, quality and higher commission.