amway presentation - introduction + market cap
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- Overview
Vision:
Help people live better lives.
Values:
Partnership
Integrity
Personal Growth
Achievement
Personal responsibility
Free Enterprise
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Positioned in 80 countries
3 000 000 distributers
450 (115) products in 11 brands focused on:
Health/ Nutrition
Wellness/ Beauty
White goods
Worldwide sales: 9.2 billion US-$
Hereby ranking No. 1 of all MLM-Companies
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AMWAY
How does it work??
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Direct SellingMulti Level Marketing (Pyramid scheme)
Amway IBO
Immediate Gross ProfitPerformance Bonus
Leadership Bonus
Other Growth Incentives
Network 21 & PLUS (BSM)Brand Experience Centers
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Amway is the brand and Corporate trade name for AmwayCorporation. All markets around the world except North Americause the Amway name.
One major thing that distinguishes the brand in North Americafrom the brand in other countries is that all transactions betweenIBOs, customers, and Amway North America, Inc. are conductedonline.
Company officials confirmed in June 2007 that, over thesubsequent 18 to 24 months, Quixtar will merge with its sistercompanies of Amway organizations around the globe to formunder one new name Amway Global
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Amway launched a brand new multiplatform, multimillion-dollar advertising campaign entitled, "The Power of Positive.
"The Power of Positive" campaign exemplifies who AmwayGlobal is as a company and you are as Independent BusinessOwners.
The first of three new television commercials broke onMonday, March 15, 2010.
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Brands by Amway Global
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Amway India
Amway was established in India in 1995 and commencedoperation in 1998 with headquarters at New Delhi.
Largest Direct Selling FMCG Company
135 offices , 55 city warehouses ,5000 cities, plant at Baddi
Amway India posted a turnover of Rs 1,790 crore last year -
up from Rs 1,407 crore in 2009 Amway expects to do business worth Rs 25 billion in India
by 2012.
127 products in five categories, health care, home care,
nutrition and wellness, cosmetics and gift catalogue. Locally manufactured through seven third-party contract
manufacturers which follow international standards
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Problems faced by Amway in India:
Direct selling was seen as an intrusion into ones privacy
High Distributor attrition rate & false premium image
Overlooked aspects like distributor should also know about thevalue of the product they were selling
Lack of proper infrastructure like networked banks, toll freephones and multi service courier companies
Huge commission to distributors which results in the increasedcost of the product , thus lower sales.
Products considered as expensive
Failure of Sachets
Criminal cases in A.P. On August 6, 2011 kerala police sealed the offices of Amway
at kozhikode,Kannur,Kochi etc.
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Corrective measures taken
Amway used media advertising for the first time topromote its products.
Advertising enhanced corporate image which attractedpeople to join Amway as ABOs.
Operation Gaadi and Operation Ghar
Pulling stickers on its products about usage details
Set up SBUs for product focused approach
Focus on market in smaller towns to offset the impact ofattrition
Rapidly expanded its offices Reduced the cost of entry for ABOs
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Huge product range of 450
Huge distributors network
World class quality products
Largest Direct Selling company
100% Customer Product Refund Policy produce faith in customers
Strengths
Amway's business practices have been the subject of controversy, thedirect selling strategy is often regarded as social engineeringby critics
More power to IBOs gives critical structure to organization
High attrition rate of distributors
The lack of brand awareness in countries like India
High cost of products and poor pricing strategies employed for differentmarkets
Products are not readily available due to the direct selling strategy
Weakness
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Setup a manufacturing plant in all countries leads to better platform forcompany
Population of India gives better opportunity to improve the ever growingnetwork of the companyLeverage upon its employment creation activityCustomer services are one area of improvement and use of internet toimprove the services of the company
Opportunities
Established FMCGs like P&G, HUL which have large bases in India and
competitors like Modicare which follow similar strategy and offer productsmuch cheaper to Amway
Distinguishing itself from bogus pyramid companies and money circulatingenterprisesAdvent of Online shopping sites which are convenient and offer betterdeals and services
Threats
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