marketing strategies of amway corporation 2015 (2)
DESCRIPTION
marketingTRANSCRIPT
SUMMER TRAINING REPORTON
MARKETING STRATEGIES AT
Submitted in partial fulfillment of the requirement For the degree of
BACHELOR’S OF BUSINESS ASMINISTRATION(GENERAL)
Session 2013-2016
SUBMITTED BY: SUBMITTED TO ROHAN SRIVASTAV Dr VANDANA DESWALEnrollment No: 05021201713 ASST PROFESSORBBA (GENERAL) 5th Semester MSI DELHI
MAHARAJA SURAJMAL INSTITUTEBBA (General)
(2013-2016)
Recognized by UGC u/s 2(f)Affiliated to Guru Gobind Singh Indraprastha University
C-4, Janakpuri, New Delhi
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report. I am grateful to all of them for their
time, energy and wisdom.
I express my gratitude to MSI, New Delhi for providing me an opportunity to work on
this project as a part of the curriculum.
Getting a project ready requires the work and effort of many people. I would like all
those who have contributed in completing this project. First of all, I would like to send
my sincere thanks to Mr. Vikas Samania, Regional Sales Manager - Marketing, for
his helpful hand in the completion of my project.
I would also like to thank Dr Vandana Deswal for all the help and project guidance
extended to me by him in every stage during the project. Her inspiring suggestions and
timely guidance enabled me to perceive the various aspects of the project in a new light.
Lastly, I would express my grateful thanks to my family members and my friends who
inspired me to put in my best efforts for the preparation of the Project Report.
2
DECLARATION
This is to certify that the Summer Training Project titled “A study on marketing strategies of Amway.” is an academic work done by Rohan Srivastav Roll No. (05021201713) submitted in the partial fulfillment of the requirement for the award of the degree of “Bachelor of Business Administration” from “Maharaja Surajmal Institute” is an authentic work carried out by him under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree to the best of my knowledge and belief.
Dr Vandana Deswal
ASST PROFESSOR
3
CONTENT
1. EXECUTIVE SUMMARY...................................................................................5
2. INTRODUCTION ................................................................................................6
3. RESEARCH OBJECTIVE & METHODOLOGY................................................9
4. LITERATURE REVIEW....................................................................................10
5. COMPANY PROFILE........................................................................................50
6. PRIMARY FINDING AND ANALYSIS...........................................................60
7. RECOMMENDATION.......................................................................................70
8. CONCLUSION & IMPLICATIONS..................................................................72
9. BIBLIOGRAPHY...............................................................................................74
10. COPY OF QUESTIONNAIRE...........................................................................75
4
EXECUTIVE SUMMARY
Amway is a unique company. It is defined by the fundamental philosophy of helping
people help themselves. Amway has helped millions of people run their own independent
business around the world. Today, Amway continues to grow by offering new products
and business opportunities to people from all cultures and walks of life. Whether they are
employees, distributors, or citizens in the community, Amway touches their lives for
better.
India with its rich reservoir of will, talent and enterprise is perhaps the most fertile
ground for the Amway Corporation. In short it has made substantial value addition to
India’s social economic life.
The focus of this project is based on studying a single organization i.e The Amway
Corporation. This research has been conducted to study the marketing strategy adopted
by Amway in the Indian market. An attempt has been made to study the company’s
perspective in the new market and analyse on how the company plans its expansion in
India.
I have substantiated my research by conducting interviews to gain more insight about the
corporation. The data has been analysed on the basis of questionnaire which were
conducted by me.
I have finally concluded my research by providing a summarized conclusion and also
suggested recommendations on the basis of the marketing mix.
5
INTRODUCTION
Direct Selling is a remarkable business model, which brings the market to the customer
and offers a unique business opportunity to anyone eager to adopt the spirit of enterprise.
Direct Selling can best be described as the selling of products and services directly to
consumers in a face-to-face manner, through demonstration of usage, by an independent
direct salesperson. Direct Selling benefits consumer because it sells high quality products
at the consumer's convenience, often at his/her home or workplace. Customers value the
advantages of convenience, personalised attention, demonstration of usage, and a wide
choice of products backed by Customer Satisfaction Guarantee.
One of the most tangible impacts of Direct Selling in its new advent has been the fact that
it has touched the average man and women in a manner never experienced before.
Amway India Corporation is the country's leading Direct Selling Company. It is perhaps
the best example of the contribution Direct Selling is making to India. In a little over two
years of commercial launch Amway India has emerged as the country's largest Direct
Selling Company. It closed its financial year with a turnover close to Rs. 250 crores (the
Amway Financial year runs from Sept. to Aug.). It will reach its target of Rs. 1000 crore
turnover much before its declared target of the year 2004.
The direct selling industry has grown rapidly over recent years. Changing lifestyles,
demographics and economic recession have all been factors influencing this growth.
Amway provides people with business opportunities across the globe. Direct selling is
not about 'getting rich quick' it is about creating rewards for effort and initiative. With
low risk and low capital investment, Amway provides people with the opportunity to
achieve and to improve their lives.
As a leading player in the world of direct selling, Amway is helping to 'clean up' the
industry and provide a valuable and acceptable form of product distribution. In an
impersonal fast-moving world driven by technology, Amway provides the personal
touch.
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Because it focuses upon direct selling, Amway is different from more traditional
distribution channels. Its Independent Business Owners own their own business, with the
flexibility to deal directly with their own clients and to build up personal relationships.
These Independent Business Owners also have the ability to deliver Amway's products to
their customers' homes. Independent Business Owners sell to people they know or meet.
The personal contact and care they provide is an important element in direct selling. They
are also self-employed and can introduce others to the business to form their own sales
group of Independent Business Owners.
The channel of distribution describes the stages of ownership that take place as a product
moves from a manufacturer to a consumer. The increasing use of the Internet by
consumers has created a real potential for developing different types of business models
and for new approaches to reaching users directly and quickly in their homes.
This report examines in detail the marketing strategy of the leading global direct
marketing major, Amway in India. In the initial stages of the report I have focused on
Amway’s current position in the Indian market. As the research progresses I have tried to
analyse the companies marketing objective for India and how they set out to achieve
them.
This report also provides a brief introduction to the concept of multilevel marketing and
tries to make the reader understand the difference between multilevel marketing and the
traditional distribution setup in the FMCG sector, so as to give an idea as to how the
system is being utilized by companies like Amway.
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MLM -a definition
Multilevel marketing allows sellers to build a business through their own sales efforts and
by inviting others to become sellers. Remuneration is based on a seller's personal sales
AND on the combined sales of those people they have sponsored, trained and motivated.
The story of Amway is intended to drive home the point of a company being alert enough
to modify its globally accepted practices to suit the local market’s needs. This report has
been made keeping in mind the benefits which can be derived from my research.
Benefits to customers
This report will be beneficial for consumers who prefer the marketing goods or services
directly to them: at their own convenience often in his/her home either on a one-to-one
basis, or in the context of a sales party. Through this the customers will get a better idea
about the company’s product offerings and value the advantages of: convenience,
personalized attention, and a good selection of quality products available at their door
steps.
Benefits to sellers
Many people have chosen direct selling because they want to build their own business,
but do not have: considerable funds required to buy a franchise or start a new company.
Among the top five reasons people sell direct because they like and believe in the
product, like being their own boss, and working their own hours, like the supplemental
family income or making extra money for themselves. It can be beneficial from the
sellers point of view as it may give them the idea of exactly how they can go about
creating their own business and benefit from the Amway’s unique business opportunity.
Benefits to companies
In this report I have deeply analyzed the marketing strategy for Amway through personal
interviews by many IBOs and Amway customers who have helped in adding valuable
data to this project which can be useful for the company. The suggested
recommendations can be considered by the corporation for further expansion and
increasing market share.
8
RESEARCH OBJECTIVE AND METHODOLOGY
RESEARCH OBJECTIVE:
The main objective is to carry out an in-depth study of Amway’s marketing strategies. In
order to achieve this primary objective, I have focused my research in three main
segments:
A. Where the Company stands at present?
B. Where do they plan to go with their objectives for the Indian Market?
C. How do they plan to achieve the set targets?
RESEARCH METHODOLOGY:
Primary Data Collection:
Direct Interview with people who are associated with the Amway
corporation in India
Questionnaire filled by a selected group of people.
The secondary data would be collected from:
1. Books
2. Magazines/ Project report
3. Internet
4. Articles
The total sample size would be 100 respondents
The questionnaire’s response format would be close ended questions. With a mix of
question types varying from ranking, multiple choice to checklist questions. The attitude
of the respondents would be measured by itemized category scales.
9
LITERATURE REVIEW
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively
low cost. Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can be large.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper
products and plastic goods. FMCG may also include pharmaceuticals, consumer
electronics, packaged food products and drinks, although these are often categorized
separately.
FMCG products contrast with durable goods or major appliances such as kitchen
appliances, which are generally replaced less than once a year. In Britain, "white goods"
in FMCG refers to large household electronic items such as refrigerators. Smaller items
such as TV sets and stereo systems are sometimes termed "brown goods".
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry
primarily deals with the production, distribution and marketing of consumer packaged
goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are
normally consumed by the consumers at a regular interval. Some of the prime activities
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of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also
engaged in operations, supply chain, production and general management.
FMCG industry provides a wide range of consumables and accordingly the amount of
money circulated against FMCG products is also very high. The competition among
FMCG manufacturers is also growing and as a result of this, investment in FMCG
industry is also increasing, specifically in India, where FMCG industry is regarded as the
fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is
estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New
Zealand which accounts for 5% of Gross Domestic Product (GDP).
Some common FMCG product categories include food and dairy products, glassware,
paper products, pharmaceuticals, consumer electronics, packaged food products, plastic
goods, printing and stationery, household products, photography, drinks etc. and some of
the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts,
detergents, tobacco and cigarettes, watches, soaps etc.
Some of the merits of FMCG industry, which made this industry as a potential one are
low operational cost, strong distribution networks, presence of renowned FMCG
companies. Population growth is another factor which is responsible behind the success
of this industry
FMCG industry creates a wide range of job opportunities. This industry is a stable,
diverse, challenging and high profile industry providing a wide range of job categories
like sales, supply chain, finance, marketing, operations, purchasing, human resources,
product development, general management.
Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser,
Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and
Mars etc.
Foreign Direct Investment
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Foreign direct investment (FDI) in its classic definition, is defined as a company from
one country making a physical investment into building a factory in another country. Its
definition can be extended to include investments made to acquire lasting interest in
enterprises operating outside of the economy of the investor. The FDI relationship
consists of a parent enterprise and a foreign affiliate which together form a Multinational
corporation (MNC).
FDI in India has increased over the years due to the efforts that have been made by the
Indian government. The increased flow of FDI in India has given a major boost to the
country's economy and so measures must be taken in order to ensure that the flow of FDI
in India continues to grow.
Advantages of FDI in India:
The Indian government made several reforms in the economic policy of the country in the
early 1990s. This helped in the liberalization and deregulation of the Indian economy and
also opened the country's markets to foreign direct investment.
As a result of this, huge amounts of foreign direct investment came into India through
non- resident Indians, international companies, and various other foreign investors. The
growth of FDI in India boosted the economic growth of the country. Major advantages of
FDI in India have been in terms of -
Increased capital flow.
Improved technology.
Management expertise.
Access to international markets.
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WHY INDIA
Large domestic market
India is one of the largest
emerging markets, with a
population of over one
billion. India is one of the
largest economies in the
world in terms of
purchasing power and has a
strong middle class base of
300 million.
Now India has two major sectors where the market can be spotted. Urban and Rural
markets.
Rural-urban profile
Urban Rural
Population 2001 – 02 (mn house hold) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
Around 72 per cent of the total households in India (188 million) resides in the rural
areas. The total number of rural households is expected to rise from 135 million in 2001-
02 to 153 million in 2009-10, this presents the largest potential market in the world. The
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annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-
02. With growing incomes at both the rural and the urban level, the market potential is
expected to expand further.
India - a large consumer goods spender
An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets.
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Consumption pie
EXPENDITURE
Consumer Durablesclothingvacationseating outfootwearentertainmentaccessoriesbooks and musicgrocerypersonal carehome textilessavings and investments
Even on an international scale, total consumer expenditure on food in India at US$ 120
billion is amongst the largest in the emerging.
15
Change in the Indian consumer profile
Consumer Profile
1999 2001 2006
Population (millions) 846 1,012 1,087
Population < 25 years of age 480 546 565
Urbanisation (%) 26 28 31
Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid
growth and change in demand patterns, leading to an explosion of new opportunities.
Around 45 per cent of the population in India is below 20 years of age and the young
population is set to rise further. Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a latent demand with more money and a new
mindset.
Demand-supply gap
Currently, only a small percentage of the raw materials in India are processed into value
added products even as the demand for processed and convenience food is on the rise.
This demand supply gap indicates an untapped opportunity in areas such as packaged
form, convenience food and drinks, milk products etc. In the personal care segment, the
low penetration rate in both the rural and urban areas indicates a market potential.
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FMCG CATEGORY AND PRODUCTS
Health care –
Fabric wash (laundry soaps and synthetic
detergents); household cleaners (dish/utensil
cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito repellents,
metal polish and furniture polish).
Food and beverages –
Health beverages; soft drinks; staples/cereals;
bakery products (biscuits, bread, cakes); snack
food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy
products; bottled water; branded flour; branded rice; branded sugar; juices etc.
Personal care –
Oral care, hair care, skin care, personal wash (soaps); cosmetics and toiletries;
deodorants; perfumes; feminine hygiene; paper products.
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Indian Competitiveness and Comparison With The World
Materials availability
India has a diverse agro-climatic condition due to which there exists a wide-ranging and
large raw material base suitable for food processing industries. India is the largest
producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second
largest producer of rice, wheat and fruits & vegetables. India also has an ample supply of
caustic soda and soda ash, the raw materials in the production of soaps and detergents –
India produced 1.6 million tonnes of caustic soda in 2003-04. Tata Chemicals, one of the
largest producers of synthetic soda ash in the world is located in India. The availability of
these raw materials gives India the locational advantage.
Cost competitiveness
Labour cost comparison
China Indonasia India Malasia Korea Singapore0
5000
10000
15000
20000
25000
Labor Cost
Labor Cost
Apart from the advantage in terms of ample raw material availability, existence of low-
cost labour force also works in favour of India. Labour cost in India is amongst the
lowest in Asian countries. Easy raw material availability and low labour costs have
resulted in a lower cost of production. Many multi-nationals have set up large low cost
production bases in India to outsource for domestic as well as exports market.
18
The FDI Policy (Foreign Direct Investment)
Automatic investment approval (including foreign technology agreements within
specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas
Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector
except malted food, alcoholic beverages and those reserved for small scale industries
(SSI). 24 per cent foreign equity is permitted in the small-scale sector. Temporary
approvals for imports for test marketing can also be obtained from the Director General
of Foreign Trade. The evolution of a more liberal FDI policy environment in India is
clearly supported by the successful operation of some of the global majors like PepsiCo
in India.
Ex. PepsiCo's India experience
After a not so successful attempt to enter the Indian market in 1985, Pepsi re-entered in
1988 with a joint venture of PepsiCo, Punjab government-owned Punjab Agro Industrial
Corporation (PAIC) and Voltas India Limited. By 1994, Pepsi took advantage of the
liberalised policies and took control of Pepsi Foods by making an offer to both Voltas
and PAIC to buy their equity. The Indian government gave concessions to the company,
Pepsi was allowed to increase its turnover of beverages component to beyond 25 per cent
and was no longer restricted by its commitment to export 50 per cent of its turnover. The
government approved more than US$ 400 million worth of investment of which over
US$ 330 million has already been invested. The government also allowed PepsiCo to set
up a new company in India called PepsiCo India Holdings Pvt Ltd, a wholly owned
subsidiary of PepsiCo International, which is engaged in beverage manufacturing,
bottling and exports activities as Pepsi Foods Ltd. Since then, the company has bought
over bottlers in different parts of India along with Dukes, a popular soft-drink brand in
western India to consolidate its market share. This was followed by an introduction of
Tropicana juice in the New Delhi and Bangalore markets in 1999.
Currently, soft drink concentrate, snack foods and vegetable and food processing are the
key products of the company. Pepsi considers India, along with China, as one of the two
largest and fastest growing businesses outside North America. Pepsi has 19 company
19
owned factories while their Indian bottling partners own 21. The company has set up 8
greenfield sites in backward regions of different states. PepsiCo intends to expand its
operations and is planning an investment of approximately US$ 150 million in the next
two – three years.
Removal of Quantitative Restrictions and Reservation Policy
The Indian government has abolished licensing for almost all food and agro-processing
industries except for some items like alcohol, cane sugar, hydrogenated animal fats and
oils etc., and items reserved for the exclusive manufacture in the small scale industry
(SSI) sector. Quantitative restrictions were removed in 2001 and Union Budget 2004-05
further identified 85 items that would be taken out of the reserved list. This has resulted
in a boom in the FMCG market through market expansion and greater product
opportunities.
Central and state initiatives
Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir
have encouraged companies to set up manufacturing facilities in their regions through a
package of fiscal incentives. Jammu and Kashmir offers incentives such as allotment of
land at concessional rates, 100 per cent subsidy on project reports and 30 per cent capital
investment subsidy on fixed capital investment upto US$ 63,000. The Himachal Pradesh
government offers sales tax and power concessions, capital subsidies and other incentives
for setting up a plant in its tax free zones. Five-year tax holiday for new food processing
units in fruits and vegetable processing have also been extended in the Union Budget
2004-05. Wide-ranging fiscal policy changes have been introduced progressively. Excise
and import duty rates have been reduced substantially. Many processed food items are
totally exempt from excise duty. Customs duties have been substantially reduced on plant
and equipment, as well as on raw materials and intermediates, especially for export
production. Capital goods are also freely importable, including second hand ones in the
food-processing sector.
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Food laws
Consumer protection against adulterated food has been brought to the fore by "The
Prevention of Food Adulteration Act
(PFA), 1954", which applies to
domestic and imported food
commodities, encompassing food
colour and preservatives, pesticide
residues, packaging, labelling and
regulation of sales.
Worlds View and India
The structure
The Indian FMCG sector is the fourth
largest sector in the economy and creates employment for three million people in
downstream activities. Within the FMCG sector, the Indian food processing industry
represented 6.3 per cent of GDP and accounted for 13 per cent of the country's exports in
2003-04. A distinct feature of the FMCG industry is the presence of most global players
through their subsidiaries (HLL, P&G, Nestle), which ensures new product launches in
the Indian market from the parent's portfolio.
Critical operating rules in Indian FMCG sector
• Heavy launch costs on new products on launch advertisements, free samples and
product promotions.
• Majority of the product classes require very low investment in fixed assets
• Existence of contract manufacturing
• Marketing assumes a significant place in the brand building process
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• Extensive distribution networks and logistics are key to achieving a high level of
penetration in both the urban and rural markets
• Factors like low entry barriers in terms of low capital investment, fiscal incentives from
government and low brand awareness in rural areas have led to the mushrooming of the
unorganised sector
• Providing good price points is the key to success.
Here are a few breakups of what Indian standards look like when compared with the
other similar or powerfull countries. Few examples as to where our country stands…
West europe USA Philipines India0
5
10
15
20
25
Detergent per capita consumption
Detergent per capita con-sumption
22
UK Brazil Thialand India0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Toothpaste per capita consumption
Toothpaste per capita con-sumption
UK Pakistan India0
0.5
1
1.5
2
2.5
3
Tea Per capita consumption
Tea Per capita consumption
23
UK USA Argentina India0
100
200
300
400
500
600
700
800
900
1000
Skincare per capita consumption
Skincare per capita consumption
USA Pakistan India0
5
10
15
20
25
Ice Cream per capita consumption
Ice Cream per capita con-sumption
Indian
24
FMCG market in the Urban Sector
1992 - 1993 1995 - 1996 1996 - 1997 1997 - 1998 1998 - 19990
2
4
6
8
10
12
Urban FMCG
Urban FMCG
1992 - 1993 1995 - 1996 1996 - 1997 1997 - 1998 1998 - 19990
2
4
6
8
10
12
14
Rural FMCG
Rural FMCG
Most Indian FMCG companies focus on urban markets for value and rural markets for
volumes. The total market has expanded from US$ 17.6 billion in 1992-93 to US$ 22
billion in 1998-99 at current prices. Rural demand constituted around 52.5 per cent of the
total demand in 1998-99. Hence, rural marketing has become a critical factor in boosting
bottomlines. As a result, most companies' have offered low price products in convenient
25
packaging. These contribute the majority of the sales volume. In comparison, the urban
elite consumes a proportionately higher value of FMCGs, but not volume.
Local Kirana Shops
Products
Household care
The size of the fabric wash market is estimated to be US$ 1 billion, household cleaners to
be US$ 239 million and the production of synthetic detergents at 2.6 million tonnes. The
demand for detergents has been growing at an annual growth rate of 10 to 11 per cent
during the past five years. The urban market prefers washing powder and detergents to
bars on account of convenience of usage, increased purchasing power, aggressive
advertising and increased penetration of washing machines. The regional and
smallunorganised players account for a major share of the total detergent market in
volumes.
Personal care
The size of the personal wash products is estimated at US$ 989 million; hair care
products at US$ 831 million and oral care products at US$ 537 million. While the overall
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personal wash market is growing at one per cent, the premium and middle-end soaps are
growing at a rate of 10 per cent. The leading players in this market are HLL, Nirma,
Godrej Soaps and Reckitt & Colman. The oral care market, especially toothpastes,
remains under penetrated in India (with penetration level below 45 per cent) due to lack
of hygiene awareness among rural markets. The industry is very competitive both for
organised and smaller regional players. The Indian skin care and cosmetics market is
valued at US$ 274 million and dominated by HLL, Colgate Palmolive, Gillette India and
Godrej Soaps. This segment has witnessed the entry of a number of international brands,
like Oriflame, Avon and Aviance leading to increased competition. The coconut oil
market accounts for 72 per cent share in the hair oil market. In the branded coconut hair
oil market, Marico (with Parachute) and Dabur are the leading players. The market for
branded coconut oil is valued at approximately US$ 174 million.
Food and Beverages Food
According to the Ministry of Food Processing, the size of the Indian food processing
industry is around US$ 65.6 billion including US$ 20.6 billion of value added products.
Of this, the health beverage industry is valued at US$ 230 billion; bread and biscuits at
US$ 1.7 billion; chocolates at US$ 73 million and ice creams at US$ 188 million. The
size of the semi-processed/ready to eat food segment is over US$ 1.1 billion. Large
biscuits & confectionery units, soyaprocessing units and starch/glucose/sorbitol
producing units have also come up, catering to domestic and international markets. The
three largest consumed categories of packaged foods are packed tea, biscuits and soft
drinks.
Beverages
The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot
beverage market is a tea dominant market. Consumers in different parts of the country
have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in
preferred in western India. The urban-rural split of the tea market was 51:49 in 2000.
Coffee is consumed largely in the southern states. The size of the total packaged coffee
27
market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee market was
61:39 in 2000 as against 59:41 in 1995. The total soft drink (carbonated beverages and
juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is
highly seasonal in nature with consumption varying from 25 million crates per month
during peak season to 15 million during offseason. The market is predominantly urban
with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian
soft drinks market.
Exports
India is one of the world's largest producers for a number of FMCG products but its
exports are a very small proportion of the overall production. Total exports of food
processing industry was US$ 2.9 billion in 2001-02 and marine products accounted for 40
per cent of the total exports. Though the Indian companies are going global, they are
focusing more on the overseas markets like Bangladesh, Pakistan, Nepal, Middle East
and the CIS countries because of the similar lifestyle and consumption habits between
these countries and India. HLL, Godrej Consumer, Marico, Dabur and Vicco laboratories
are amongst the top exporting companies.
Investment in the FMCG sector
The FMCG sector accounts for around 3 per cent of the total FDI inflow and roughly 7.3
per cent of the total sectoral investment. The food-processing sector attracts the highest
FDI, while the vegetable oils and vanaspati sector accounts for the highest domestic
investment in the FMCG sector.
National Players
Domestic players
Britannia India Ltd (BIL)
Britannia India Ltd was incorporated in 1918 as Britannia Biscuit Co Ltd and currently
the Groupe Danone (GD) of France (a global major in the food processing business) and
the Nusli Wadia Group hold a 45.3 per cent equity stake in BIL through AIBH Ltd (a
28
50:50 joint venture). BIL is a dominant player in the Indian biscuit industry, with major
brands such as Tiger glucose, Mariegold, Fifty-Fifty, Good Day, Pure Magic, Bourbon
etc. The company holds a 40 per cent market share in the overall organised biscuit market
and has a capacity of 300,000 tonne per annum. Currently, the bakery product business
accounts for 99.1 per cent of BIL's turnover. The company reported net sales of US$ 280
million in 2002-03. Britannia Industries Ltd (BIL) plans to increase its manufacturing
capacity through outsourced contract manufacturing and a greenfield plant in Uttaranchal
to expand its share in the domestic biscuit and confectionery market.
Dabur India Ltd
Established in 1884, Dabur India Ltd is the largest Indian FMCG and ayurvedic products
company. The group comprises Dabur Finance, Dabur Nepal Pvt Ltd, Dabur Egypt Ltd,
Dabur Overseas Ltd and Dabur International Ltd. The product portfolio of the company
includes health care, food products, natural gums & allied chemicals, pharma, and
veterinary products. Some of its leading brands are Dabur Amla, Dabur Chyawanprash,
Vatika, Hajmola, Lal Dant Manjan, Pudin Hara and the Real range of fruit juices. The
company reported net sales of US$ 218 million in 200304. Dabur has firmed up plans to
restructure its sales and distribution structure and focus on its core businesses of fast-
moving consumer good products and over-the-counter drugs. Under the restructured set-
up, the company plans to increase direct coverage to gap outlets and gap towns where
Dabur is not present. A roadmap is also being prepared to rationalise the stockists'
network in different regions between various products and divisions.
Indian Tobacco Corporation Ltd (ITCL)
Indian Tobacco Corporation Ltd is an associate of British American Tobacco with a 37
per cent stake. In 1910 the company's operations were restricted to trading in imported
cigarettes. The company changed its name to ITC Limited in the mid seventies when it
diversified into other businesses. ITC is one of India's foremost private sector companies
with a turnover of US$ 2.6 billion. While ITC is an outstanding market leader in its
traditional businesses of cigarettes, hotels, paperboards, packaging and agriexports, it is
rapidly gaining market share even in its nascent businesses of branded apparel, greeting
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cards and packaged foods and confectionary. After the merger of ITC Hotels with ITC
Ltd, the company will ramp up its growth plans by strengthening its alliance with
Sheraton and through focus on international projects in Dubai and the Far East. ITC's
subsidiary, International Travel House (ITH) also aims to launch new products and
services by way of boutiques that will provide complete travel services.
Marico
Marico is a leading Indian Group incorporated in 1990 and operating in consumer
products, aesthetics services and global ayurvedic businesses. The company also markets
food products and distributes third party products. Marico owns well-known brands such
as Parachute, Saffola, Sweekar, Shanti Amla, Hair & Care, Revive, Mediker, Oil of
Malabar and the Sil range of processed foods. It has six factories, and sub-contract
facilities for production. In 2003-04, the company reported a turnover of US$ 200
million. The overseas sales franchise of Marico's branded FMCG products is one of the
largest amongst Indian companies. It is also the largest Indian FMCG company in
Bangladesh. The company plans to capture growth through constant realignment of
portfolio along higher margin lines and focus on volume growth, consolidation of market
shares, strengthening flagship brands and new product offerings (2-3 new product
launches are expected in 2004-05). It also plans to expand its international business to
Pakistan.
Nirma Limited
Nirma Ltd, promoted by Karsanbhai Patel, is a homegrown FMCG major with a presence
in the detergent and soap markets. It was incorporated in 1980 as a private company and
was listed in fiscal 1994. Associate companies' Nirma Detergents, Shiva Soaps and
Detergents, Nirma Soaps and Detergents and Nilnita Chemicals were merged with Nirma
in 1996-1997. The company has also set up a wholly owned subsidiary Nirma Consumer
Care Ltd, which is the sole marketing licensee of the Nirma brand in India. Nirma also
makes alfa olefin, fatty acid and glycerine. Nirma is one of the most successful brands in
the rural markets with extremely low priced offerings. Nirma has plants located in
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Gujarat, Madhya Pradesh and Uttar Pradesh. Its new LAB plant is located in Baroda and
the soda ash complex is located in Gujarat.
Pull and Push Strategies
Sales promotion decisions are significantly affected by whether the company decides to
do to pull or push strategies to accomplish its objectives. Such a decision may require a
little or a lot of cooperation from resellers. The requirements to implement one strategy
might be little more than to just stock the product by the retailers. The other strategy may
demand more participation from resellers such as the ability to explain to the consumers
as to how a product works.
In case of using a pull strategy, marketing efforts are directed at the ultimate consumer
and consumer promotions such as consumer contests and sweepstakes, rebates, coupons,
free samples, consumer premiums, etc are used. If this strategy is also chosen to include
advertising, there are large advertising expenditures. The objective of such promotional
efforts would be to create sufficient consumer demand to pull the product through the
channels, that is the consumers are encouraged to demand the product from retailers who
in torn place orders with wholesaler or manufacturer to meet the consumer demand.
PULL
This strategy may require little promotional efforts from the resellers except to stock
input the product on shelves.
A pull strategy is appropriate when
The product demand as high.
It is possible to differentiate the product on the basis of real or emotional features,
Brand consumers show high degree of involvement in the product purchase,
There is reasonably highly brand loyalty and consumers make brand choice
decision before they go to the store.
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PUSH
If a firm decides to use push strategy, its efforts are directed at resellers and the
manufacturer becomes very dependent on their personal selling abilities and efforts. The
promotional efforts are focused at pushing the product through the distribution channels;
the resellers may be required to display, demonstrate and offer discounts, to sell the
product. The communication to resellers is generally through trade circulars or the sales
force.
PUSH
Push strategies generally appropriate for product categories where there is low brand
loyalty and many acceptable substitutes are available in the market. It may also be
suitable for relatively new products or when the brand choice is often made in response to
displays in the stores, the product purchase is unplanned or on impulse and the consumer
is familiar and has reasonably adequate knowledge about the product. Manufacturers,
who cannot afford to engage in sustained mass advertising, often use push strategy and
offer effective incentives to dealers.
Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates
worth Rs.5 each free.
Through this offer the company is pushing its product to the retailers and now that the
retailer has enough incentive the retailer stocks more and thus it becomes essential for the
retailer to push the product to the consumers.
Pull promotions
(Manufacturer to consumer)
Push promotions
(Offered to trade)
Push promotions
(Offered by retailer)
Sampling
Coupons
Price packs
Discounts
Display allowance
Advertising allowance
Price cut
Free goods
Premiums
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Rebates
Continuity programs
Contests
Sweepstakes
Tie-in promotion
Financing incentives
Special events
Premiums
Bonus packs
Exchange offers
Free goods
Contests
Trade coupons
Quantity discounts
Displays
Feature advertising
Quantity discount
Clearance sale
Product life cycle and pull or push strategies
It is quite important for brand managers to analyze and identify the stage of a particular
brand in its life cycle before deciding about using sales promotion. During the stage of
product introductions, a product requires different sales promotional tactics.
Likewise, during the product growth stage, its maturity and the decline stages, the sales
promotion tactics required are likely to be quite different. Promotional strategies are also
likely to be affected for different non-durable and durable products. Also important in
the development of promotional strategy would be the target audience is towards whom
the
Introduction stage
When the product is being introduced, the major objective is to increase the trial rate and
distribution of the product. For increasing trial sampling, coupons, demonstration which
are all pull promotions, can be used. To make the product available in distribution
channels, it may become necessary to use some kind of incentive scheme for the resellers
to encourage them and minimise their risk associating stalking a new product.
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Manufacturers can offer display allowances to resellers to make the product highly
visible. There could be liberal guarantees to take back the stocks, if unsold, to reassure
the trader. These are all push promotions. For most new products, it would be difficult
to be successful without pull promotions. In fact when new products are introduced,
much more emphasis is given to pull rather than push promotions.
Cadbury is introducing the new brand bytes having an introductory offer Rs5 off which
will be available through the coupons that are distributed with newspapers like the Times
of India.
Growth stage
In this stage, the dominant objectives are to expand the market for increasing the number
of new customers who would try the product for the first time and to encourage the repeat
purchase by those who have already tried the product. Another important objective is to
expand or at least maintain the distribution. For increasing trial, pull promotions are
appropriate however as the trial rate increases free samples become quite an expensive
proposition. To encourage repeat purchase by consumers, in pack or on-pack coupons
can be used.
This would also help in converting those customers who have already tried the product
into regular users of the product. Another tool of sales promotion that can be used is to
offer bonus packs containing additional quantity at the same price as an incentive to
encourage repeat purchase. To expand the distribution, push promotions such as different
types of discounts, free goods that increase the profitability of the trade, can be used.
Maturity stage
When the product is in maturity stage, many similar brands are available to customers.
Due to price discounts or other extra benefits, consumers often switched brands. This
phenomenon of brand switching is more common if the product category happens to be
one of low involvement. The sales promotional strategy in this stage can focus on
attracting maximum number of brand switchers, reward and reinforce the loyalty of
regular users and use more of push promotions to build inventories with resellers. Many
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tools of sales promotion such as premiums, price discounts, extra goods, displays, dealer
contests, feature advertising become important.
Generally a combination of pull and push promotions prove more effective during
maturity stage of a product life cycle. The market share of the brand is an important
factor in gaining the support of resellers.
Techniques Of Sales Promotions
Consumer market sales
promotions
Trade sales promotions Sales force sales promotions
Price discounts Off-Invoice Allowance Sales contests
Price pack deals Buying allowance Incentives
Rebates/refunds Display and advertising
allowance
Awards and prizes
Continuity programs Buy back allowance Premiums (gifts)
Coupons Bill back allowance Sales meetings
Samples Count and recount
allowance
Training
Contests and sweepstakes Slotting allowance Sales manuals etc.
Premiums and advertising
specialties
Merchandise allowance
Free trials POP displays
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Brand placement Cash rebate
Event sponsorship Free goods
Product warranties Trade coupons
Exchange offers Dealer listing
Internet promotions Dealer loaders
Low interest financing Sales contests
Free service camps SPIFFS (push money)
Incentives
Sales training programs
Trade shows
Consumer sales promotions
Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are
called consumer sales promotions. Manufacturer announced promotions to consumers are
based on ‘pull’ strategy of the manufacturer and retailer announced promotions to
consumers constitute ‘push’ strategy of the retailer.
Objectives of consumer market sales promotions
The following basic objectives can be pursued with sales promotions in the consumer
market.
Stimulate trial purchase
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When a firm wants to attract new users sales promotions tools can reduce the consumer’s
risk of trying something new. A reduced price or offer of a rebate may stimulate trail
purchase.
Pantene when it was launched did a lot of sampling, to stimulate trail purchase. Their
efforts have surely shown results, with Pantene being one of the top selling brands in
India today.
Stimulate repeat purchases
In-package coupons good for the next purchase, or the accumulation of points with repeat
purchases, can keep consumers loyal to a particular brand.
The most prominent frequency programs are found in the airline industry where
competitors try to retain their most lucrative costumers by enrolling them for various
perks such as frequent flyers can earn free travel, hotel stays, gifts etc.
Stimulate larger purchases
Price reductions or two-for-one sales can motivate consumers to stock up on a brand, thus
allowing firms to reduce inventory or increase cash flow.
Many soaps brands are doing sales promotions to stimulate larger purchases. When
people generally come to buy soaps, and see the offers like,
Introduce a new brand
Because sales promotions can attract attention and motivate trial purchase, it is
commonly used for new brand introductions.
Cadbury bytes was promoted with Rs 5 off
Combat or disrupt competitors strategies
Because sales promotions often motivate consumers to buy in large quantities or try new
brands, they can be used to disrupt competitors marketing strategies. If a firm knows that
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one of its competitors is launching a new brand or initiating a new advertising campaign,
a well-timed sales promotions offering deep discounts or extra quantity can disrupt the
competitor strategy. Add to the original discount an in-package coupon for future
purchases, and a marketer can severely compromise competitor’s efforts.
Contribute to Integrated Marketing Communications
In conjunction with advertising, direct marketing, public relations and other programs
being carried out by a firm, sales promotions can add yet another type of communication
to the mix. Sales promotions suggest an additional value, with price reductions,
premiums, or a chance to win a prize. This is an additional and different message within
the overall communication effort.
Techniques of consumer sales promotions
Price discounts or price-off deals.
Price deals are probably the most commonly used promotional techniques. A price deal
for a customer means a reduction in the price of the promoted product and the consumer
saves money on purchase.
Boost 500gm pack, Rs. 10 off on normal price, now available at Rs. 90 only.
Price discounts are communicated through POP advertising, window displays, sales
people, advertising in newspapers, magazines and TV ads.
Determining the quantum of discount depends on the consumer’s price perceptions and
may be difficult to decide.
Such promotions work very well in gaining the attention of consumers, particularly at the
point of purchase among similar brands and may also encourage unplanned or impulse
buying. If there are three different models of a product and because of the discount
offered the price of the higher end model is appears, not too high to the consumer as
compared to the lesser priced model, then the consumer may buy the higher end model.
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The main advantage of this tool is that it has a very Strong consumer response
Such discounts offer immediate value and strong consumer response.
The Flexibility and convenience of implementation is another advantage. Price offers are
extremely flexible in the sense that the producer has total control on the number of units
being promoted and the market area in which the offer will be given. If different packs of
the same brand are available, the marketer can choose the one size that is not selling well.
A discount offer may rapidly lose its advantage if competitors announce a similar offer.
In fact, competitors are very likely to retaliate leading to the danger of triggering a
promotion wall in which no one benefits except the consumer.
Such discounts are short term and are unlikely to produce any long-term gains because
the incentive is to purchase now by creating sense of urgency. When the discount is
withdrawn the sales may fall below the level of pre-promotion period. And in the long
run the sales would return to pre-promotion period level.
Price pack deals
Price pack deals are also called value packs.
They can take any of the two forms: one is bonus pack and banded pack.
In case of a bonus pack, an additional quantity of the same product is offered free when
the standard pack size of the product is purchased at the regular price.
Cadbury temptation offers 10% extra free. 200gms+20gms
Boost 500grm jar gives 20% more free.
A variation of this offer is when the marketer develops special packs of the product
containing more quantity but the price is proportionately low. This is a method to “load”
the consumer up with the product. This technique is often used to introduce a new large
size of the product or to encourage continued usage and also to increase consumption.
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The offer is termed as “banded pack” when 2 or more units of the products are sold at a
reduced price compared to the regular price.
Another variation of this technique is “buy 1 get 1 free” or some similar offer, it could be
“same for less” or “more for the same.”
The main advantage of this tool is that extra product may encourage increased usage and
help sustain the habit. Also among other similar brands, a bonus pack stands out at the
point of sale.
Refunds And Rebates
Refund is the repayment of total money paid for purchase, while the rebate represents
repayment of only part of the money paid for the purchase. Refund offers seems to work
very well in guaranteeing the trial of a product or service since there is no risk involved
for the customer because of the promise of total refund of the purchase amount.
Refunds and Rebates play an important role in the consumer durable segment because the
product price is reduced to a great extent because of the rebate offer.
Coupon
A coupon entitles a buyer to a designated reduction in price for a product or service.
Coupons are the oldest and most widely used form of sales promotions. Coupons bear an
expiry date and cannot be redeemed after the cut off date.
Coupons can be of 3 types:
Direct to the consumer
Media distributed
Product distributed.
The main Advantages of coupons are:
Encourage brand switching
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Stimulate trial for a product
Take off the attention from price
Many companies to create more product trials has coupons in the newspapers and
magazines which avail you some rupees off on there products Contests And Sweepstakes
Contests and sweepstakes can draw attention to a brand like no other sales promotions
technique.
A contest has consumers compete for prizes based on skill or ability. Winners in a contest
are determined by a panel of judges or based on which contestant comes closest to a
predetermined criterion for the contest. Contests tend to be somewhat expensive to
administer because each entry must be judged against winning criteria.
Contests were very often used earlier where people have to write slogans, poems, stories
etc. generally “I like the product because …” and the best ones won prizes. But off lately,
contests are becoming less and sweepstakes increasing. People are more willing to play
on luck rather than participate by showing their abilities. A sweepstake is a promotion in
which winners are determined purely by chance.
Consumers need only to enter their names in the sweepstakes as a criterion for winning.
Some popular types of sweepstakes also use “scratch-off cards”.
Contests and sweepstakes often create excitement and generate interest for a brand, but
the problems of administering these promotions are substantial.
One problem is that the game itself may become the consumer’s primary focus, while the
brand becomes secondary. The technique thus fails to build long-term affinity for the
brand.
Britannia khao world cup jao campaign has taken the market by a swing.
Under the offer you collect points available on Britannia biscuit packets and exchange
100 points for a scratch card, which has various gifts and the 100 world cup tickets. The
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offer was actually introduced during the last world cup and had shown phenomenal
results. Sale increased tremendously; there was an increase in the sales by 25%, claims
the company. So it is being done this year too. This year too the contest is showing good
results.
Sampling
Getting consumers to simply try a brand can have a powerful effect on future decision-
making. Sampling is a sales promotion technique designed to provide a consumer with an
opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a
popular technique is an understatement. Sampling is particularly useful for new products,
but should not be reserved for new products alone. It can be used successfully for
established brands with weak market share in specific geographic areas.
Techniques used in sampling:
In-store sampling
Door-to-Door sampling
Newspaper sampling
On-package sampling
Mobile sampling
Trial offers
Trial offers have the same goal as sampling – to induce consumer trial use of a brand- but
they are used for more expensive items.
Ex: exercise equipment, appliances, consumer electronics, etc. the expense to the firm of
course can be formidable. Segments chosen for this sales promotion technique must have
high sales potential.
Premiums and advertising specialties
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Premiums
They are items offered free or at a reduced price, with, the purchase of another item.
Many firms offer a related product free.
There are 2 options available for the use of premiums:
1. A free premium provides consumers with an item at no cost, the item is included
in the package of the purchase item.
2. A self-liquidating premium requires a consumer to pay most of the cost of the
item received as a premium. In this promotion offer the consumer is required to
send a specified sum of money along with a proof of purchase to claim the
premium.
Premiums have become very common today. Many companies are offering lots and lots
of premiums. The main advantage of Premiums is that they offer not only that one
product but also another product, which may influence the customer, a lot to buy the
product. Especially if the other product is worth it.
Also new products are given free with established brands to stimulate trial of the new
brand.
Buy a Cadbury Bournvita and get a dairymilk worth rs 10 free
Advertising specialties
Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars,
etc.
Advertising specialties have 3 key elements:
A message placed on a useful icon, and given to consumers with no obligation.
Pepsodent toothpaste 100gm pack get free dental insurance worth Rs.1000, this is
a very effective strategy because it is giving you’re the guarantee that nothing can
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happen to your teeth. The Rs.1000 insurance speaks a lot for its brand and its
product thrust.
Buy any Nestle chocolate and get tatoo free.
Many other kids products are influence a lot by such specialties especially liked by the
kids like tattoos, masks, tazo, cricket bats etc. hence products that have such offers sell
more than the other brand available.
Ruffles lays, get free Tazo,
Rasna, get free Prankies
Continuity/frequency Programmes
In recent years, one of the most popular sales promotion techniques among consumers
has been “frequency Programmes”. The main objective of such Programmes is
encouraging repeat purchases or repeated visits to particular retail shops. Frequency
Programmes offer consumers discounts or free product rewards for repeat purchase or
patronage of the same brand or company.
Brand placement
Brand placement often referred to, as product placement is the sales promotions
technique of getting a marketer’s brand featured in movies and television shows. The use
of a brand by actors and actresses or the mere association of the brand with a popular
film/ television show can create a positive image and have a huge impact on the sales of a
brand.
Marketers and advertisers used to think that brand placements affected only consumers’
perceptions of a brand, much like advertising. But recent brand placements have shown
that the technique can have a sales impact like a traditional sales promotions.
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Brand placement has varying results; if the brand name is spoken aloud the impact can be
dramatic but less obvious placements, referred to as background placements are
considered by some as a waste of money.
Coke in Yaadein , Pepsi in Khushi
Pass Pass in Yaadein
Event sponsorship
When a firm sponsors or co-sponsors an event such as a rock concert, a cricket match,
etc. the brand featured in an event immediately gains credibility with the event audience.
The audience attending an event already has a positive attitude and affinity for the contest
– they choose to attend. When this audience encounters a brand in this very favourable
reception environment, the brand benefits from the already favourable audience attitude.
Coke and Pepsi keep sponsoring many events.
Exchange offers
If a family bought a refrigerator 10 years ago and the machine is still giving reasonable
service then the family is unlikely to buy a newer and more advanced version of the
refrigerator unless they get rid of the older one by selling it to someone. No one in our
country is prepared to throw it as junk. Same thing is true for a number of products such
as televisions, microwave ovens, washing machines, cars, two-wheelers, computers, etc.
This segment of present owners is sizeable enough yet to sell new brands to those who
already own a similar product is not easy. To attract this segment, manufacturers
regularly announce exchange offers.
Consumer durables market is the one where exchange offers are used the most. Almost
all the TVs, Refrigerators, Washing Machines, etc. have exchange offers.
Internet promotions
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They are the most recent form of sales promotions. They are promotions that are done via
the Internet. It is becoming increasingly popular because of the large use of Internet. But
still it has a lot to develop.
Marketing communications
Marketing communications breaks down the strategies involved with marketing messages
into categories based on the goals of each message. There are distinct stages in
converting strangers to customers that govern the communication medium that should be
used.
Advertising
Paid form of public presentation and expressive promotion of ideas
Aimed at masses
Manufacturer may determine what goes into advertisement
Pervasive and impersonal medium
Functions and advantages of successful advertising
Task of the salesman made easier
Forces manufacturer to live up to conveyed image
Protects and warns customers against false claims and inferior products
Enables manufacturer to mass-produce product
Continuous reminder
Uninterrupted production a possibility
Increases goodwill
Raises standards of living (or perceptions thereof)
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Prices decrease with increased popularity
Educates manufacturer and wholesaler about competitors' offerings as well as
shortcomings in their own.
Objectives
Maintain demand for well-known goods
Introduce new and unknown goods
Increase demand for well-known goods/products/services
Requirements of a good advertisement
Attract attention (awareness)
Stimulate interest
Create a desire
Bring about action
Eight steps in an advertising campaign
Market research
Setting out aims
Budgeting
Choice of media (television, newspaper, radio)
Choice of actors (New Trend)
Design and wording
Co-ordination
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Test results
Personal sales
Oral presentation given by a salesman who approaches individuals or a group of potential
customers:
Live, interactive relationship
Personal interest
Attention and response
Interesting presentation
Sales promotion
Short-term incentives to encourage buying of products:
An example of this is coupons or a sale. People are given an incentive to buy, but it does
not build customer loyalty, nor encourage repeat buys in the future. A major drawback of
sales promotion is that it is easily copied by competition. It cannot be used as a
sustainable source of differentiation.
Marketing Public Relations (MPR)
Stimulation of demand through press release giving a favourable report to
a product
Higher degree of credibility
Effectively news
Boosts enterprise's image
Customer focus
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Many companies today have a customer focus (or customer orientation). This implies that
the company focuses its activities and products on consumer demands. Generally there
are three ways of doing this: the customer-driven approach, the sense of identifying
market changes and the product innovation approach. In the consumer-driven approach,
consumer wants are the drivers of all strategic marketing decisions. No strategy is
pursued until it passes the test of consumer research. Every aspect of a market offering,
including the nature of the product itself, is driven by the needs of potential consumers.
The starting point is always the consumer. The rationale for this approach is that there is
no point spending R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological
breakthroughs.
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COMPANY PROFILE
Amway began in 1959 with two young entrepreneurs in the United States -- Rich DeVos
and Jay Van Andel. Their concept for an innovative business opportunity, centered
around person-to-person marketing, established itself as a leader among one of today's
fastest-growing industries.
Today, more than 3.6 million independent business owners distribute Amway products in
more than 80 countries and territories. Amway India is a wholly owned subsidiary of US
$ 7.2 billion Amway Corporation, Ada, Michigan, USA. Amway Corporation is one of
the largest Direct Selling companies in the world. It has a presence in 80 countries &
territories.
1950s - A Friendship Forms
Rich DeVos and Jay Van Andel's friendship actually began with a business proposition,
when Rich struck a deal with Jay for a ride to school for 25 cents a week. After high
school they entered the military, but they planned to start a business together after
separate tours of duty. A friendship formed and became a business relationship that has
lasted to this day.
1960s - The Early Years
Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay
Van Andel's homes. In its first full year of business, Amway's sales were more than half a
million dollars.
1970s - The Decade of Growth
As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol
plant and went on. The ' 70s began with sales of more than $100 million at estimated
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retail, and kept going strong. After a lengthy investigation, the FTC verified that Amway
is a genuine business opportunity and not a "pyramid."
1980s - The Billion-Dollar Decade
The '80s will be remembered for the first Billion Dollar Year at estimated retail in 1980.
Building expansion at Amway World Headquarters continued at breakneck speed as
Amway scrambled to keep pace with demand, opening its new cosmetics plant in Ada.
1990s - The Second Generation
As carefully planned by Rich and Jay, the second generation Van Andel and DeVos
families took the helm during the ' 90s. Steve Van Andel and Dick DeVos succeeded
their fathers as Chairman and President. Distributors witnessed a similar trend, with the
second generation of many distributor families taking on important leadership roles.
2000s - The New Millennium
In 2000, Amway Corporation became a wholly-owned subsidiary of Alticor, Inc.
Chairman Steve Van Andel and President Doug DeVos share the Office of the Chief
Executive.
AMWAY IN INDIA
Amway India, a wholly owned subsidiary of Amway Corporation, was established in
August 1995 after approval by India's Foreign Investment Promotion Board (FIPB).
Amway India commenced commercial operations on May 5, 1998. The company’s goals
were beyond creating a business opportunity for people. The focus was also on the
introduction of new products and services that would be beneficial to both Independent
Business Owners and consumers.
Many Ways to Receive Income
In Amway the first two ways to receive income are:
Retail Profit - Averages 20% + of Business Volume (BV) on products you sell.
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Performance Incentive - Ranges from 3% to 21% and is paid monthly.
There are many more ways for Direct Distributors to earn income when they meet
qualifications.
These are:
(a) Leadership Commission. (Paid monthly)
(b) Monthly Depth Commission. (Paid monthly)
(c) Ruby Commission. (Paid monthly)
(d) Emerald Commission. (Paid yearly)
(e) Diamond Commission. (Paid yearly)
(f) Diamond Plus Commission. (Paid yearly)
(g) Double Diamond Payment. (Rs.500,000. One time cash award)
(h) Triple Diamond Payment. (Rs.10,00,000. One time cash award)
(i) Crown Payment. (Rs.20,00,000. One time cash award)
(j) Crown Ambassador Payment. (Rs. 30,00,000. One time cash award)
Special Leadership Programmes
As you attain various levels of achievement, you may also be eligible for various
AMWAY leadership programmes:
Direct Distributor Seminar: A special two-day meeting for new Direct Distributors.
With all expenses paid by AMWAY, new Direct Distributors meet the AMWAY India
management team, and receive an abundance of information to assist them as they build
their growing businesses.
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Annual Leadership Conferences in countries around the world. Invitations are extended
to AMWAY's top leaders to meet in a business-building atmosphere.
A variety of special programmes, such as your own special day at AMWAY, your own
success story in the Distributor magazine, the Amagram, or your name and picture added
to the Distributor Hall of Achievements in India and World Headquarters.
Business Considerations
AMWAY CORPORATION has succeeded for almost four decades because it is a proper,
ethical, and honorable addition to the retail marketplace. AMWAY is a world leader in
Direct Selling. A key element to this success is the recognition by governments that
AMWAY is a model marketing system. As with any venture, you should review all
aspects, weigh the advantages /disadvantages, and decide whether it meets your needs.
Here are some essential points to consider about the AMWAY business opportunity:
Start-Up Costs
Compare the start-up costs of this opportunity with that of a conventional business, and
you will notice quite a difference. The only cost for an AMWAY Business is that of a
Business Kit, which used to cost Rs. 4,400 but now costs only Rs 995 which does not
include the sample product basket.
Merchandising
The first way you can make money with your AMWAY business is to sell products to
retail customers. Successful merchandising is made easier by AMWAY's line of high
quality products; a sound combination of upscale and consumable items that can mean
profitable and repeat sales.
Sponsoring
You may increase your merchandising efforts through sponsoring. Although it is not
mandatory to sponsor people, sponsoring may increase your income when the
Distributors you sponsor begin to build their own AMWAY business.
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Business Support Materials
As your business begins to grow, you may want to acquire training aids. You also may
want to attend motivational and business-building meetings. These are optional.
Deductions
Your AMWAY business is not a tax shelter, but you are entitled to deduct your ordinary
and necessary business expenses as defined by the Income Tax Act, 1961.
Time and Effort
The bigger your financial goal, the more time and effort you will need to put into your
AMWAY business. With an AMWAY business, you work as much or as little as you
like, depending on your own goals. It's all up to you.
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AMWAY VISION
“Helping people live better lives. In all aspects of our products, businesses and
social responsibility, we strive to make a meaningful difference in the
communities in which we operate.”
AMWAY MISSION
“Through the partnering of Distributors, Employees, and the Founding Families,
and the support of quality products and service, we offer all people the opportunity
to achieve their goals through the Amway Sales and Marketing Plan.”
Marketing strategies of amway corporations
Business model: Amway combines direct selling with a network marketing strategy.
IBOs may market products directly to potential customers and may also recruit (sponsor)
and train other people to become IBOs themselves. Each IBO may earn income both
from the retail markup on any products they sell personally, plus a performance bonus
based on the sales volume they and their downline (IBOs they have sponsored) have
generated. People may also register as IBOs to buy products at discounted prices.
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"Network Marketing" and "Multi-level Marketing" are generally considered to be
synonyms, and a subset of direct selling. While "direct selling" and "network marketing"
refer primarily to the distribution system, the term "multi-level marketing" emphasizes
the compensation plan more. Network Marketing tends to be modern preferred
term, however many other terms are also used, including word-of-mouth marketing,
interactive distribution, relationship marketing and others.
1. DIRECT SELLING STRATEGY.
Talking to representatives of Amway India, a wholly-owned subsidiary of the 8.2-
billion dollar direct selling major, Amway Corporation, is refreshing at a time when
many companies are announcing layoffs, reducing manufacturing and inventory
numbers, and projecting flat growth at best for the year ahead.
It has lined up at least six new products that will be launched during the course of the
year when it hopes to increase its consumer touch points to 150 from the current 122.
The accent this year will be on the nutrition and the beauty products segments that
account for almost 50% of the company’s revenues.
Amway India managing director, and CEO William S Pinckney said, “The Company
is not claiming to be recession proof, but it is recession resilient”. He was
instrumental in setting up the company’s India operations from scratch.
Today, with sales of Rs 1,128 crore, company is within striking distance of owning 40% of the Rs 3,000-crore direct selling market in India. Pinckney says if it notches up 27-29% growth this year, the company will be home and dry. But can it? Of course, fast moving consumer goods, Amway’s mainstay, haven’t been too badly hurt by the current business slowdown. Growth projections for the category as a whole vary from 15% (Boston Consulting Group) to 25% (Associated Chambers of Commerce and Industry of India). But what is interesting is the way Amway tweaked both its portfolio and its pricing strategy to ensure that the value- conscious Indian consumer took to its products like moths to a flame. Indeed, getting the pricing right was key to the company’s growth in this country. Amway’s global model is based on fixed quantity, variable price. It has even launched sachets to encourage trials. Pinckney claims that Amway design and equipment standards in India match those in the US, though sample test runs are still carried out in the US.
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Today, the quality of Amway products made in India is hailed globally—they have found markets outside the country’s borders, establishing India as an export hub to service some of the neighboring markets. To cope with the surge in demand that Amway products expect, the company plans to ramp up the capacity of its Baddi (Himachal Pradesh) plant this year by adding more manufacturing lines at an investment of around Rs 40 crore. The Baddi plant manufactures 80% of Amway’s products in India, while the remaining is made at six contract manufacturing facilities. For the time being, Amway will throw its brand-building muscle behind the Nutrilite and Artestry brands in India. Traditionally, direct selling companies do not use advertising in a big way; but Amway, a strong believer in brand building, has put aside Rs 16 crore this year (up from Rs 12 crore in 2008)* for communication on television, print and out of home advertising.
Amway is trying to shake up the category with its new fruit flavoured energy drinks.
The company also introduces energy bars in the market under a joint venture with
General Mills that has the manufacturing expertise, with Amway backing up with its
distribution muscle. And its distribution muscle is awesome—on its rolls in India are
4.5 lakh of the approximately 15 lakh distributors or business owners as Amway calls
them.
Amway sees the direct selling market opening up as consumers start to see the
difference between direct selling and door-to-door sales, and that between the long
haulers and the fly-by-night operators.
2. DIRECT MARKETING COMPANY.
Amway sees the direct selling market opening up as consumers start to see the
difference between direct selling and door-to-door sales, and that between the long
haulers and the fly-by-night operators. Amway is one of the global leaders in direct
marketing.
Amway is often used as an example of a direct marketing company. The company sells
its products using direct distributors called Amway Business Owners (ABO). The model
works on a business networking model. The ABOs can build a team by recruiting a team
of ABOs under him. The ABO earns commission on the products sold. Further, the ABO
also gets commission for the sales done by other ABOs recruited by him. The payout is
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decided by the point system. The Amway business model also divides the ABOs into
different categories based on the sales performance of the team. The payout varies with
different levels.
Amway India in now a 800 crore company with its operation spanning across India. It has
more than 4.5 lakh independent distributors and 117 offices across the country.
Considering the nascent stage of Direct Marketing Industry in India, Amway India has
been reasonably successful. According to Business Line, the direct marketing Industry in
India is estimated to be Rs 3150 crore. The success of Amway products is predominantly
driven by the quality of the products. Amway India's products are mostly sourced from
manufacturing units from India. It has outsourcing contracts with 5 major units in India.
Amway is a 100 % direct marketing company. That means the consumers will not get any
Amway products from shops. The products can be bought through ABO's. Hence the
sales are driven by the efforts of ABOs. Since the company does not advertise its brands,
the only communication channel is through ABOs who visits households and make
presentations. There are two tasks of a typical ABO: the first task is to sell Amway
products and second task is to appoint new ABOs. Typically direct marketing firms faces
issues of reach and cost. Since the sales depend entirely on the independant distributors,
the company has to pay huge commission. This results in the increased cost of the
product. Hence the products become expensive resulting in lower sales.
Amways also faces this issue. The products of Amway are excellent but very expensive.
For example, the Persona brand of soaps cost Rs 30 which is almost double the rate of an
ordinary soap. Persona is one of the best soaps in terms of quality but price is definitely a
dampener. Another example is the range of cosmetics under the brands Attitude and
Artistery. Artistery is targeted at the premium class and Attitude at the middleclass. But
the price of these brands makes the consumer think twice before buying it. Hence the
ABOs have a tough time convincing the value proposition. In a value conscious country
like India, the expensive tag of Amway products is the singular reason for the lack of
popularity of its products. Understanding this issue, Amway launched its first corporate
branding initiative in India. The brand came out with a Television campaign highlighting
the customer-centric approach.
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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. The purpose of the campaign is two fold: a. The company wants to build
equity around the corporate brand which will enable the ABOs to tide over the initial
customer resistance.b. The enhanced corporate image will also attract people to join
Amway as independent business owners.
3. PRICING STRATEGIES.
Along with this, the company is also rationalising the pricing strategies. The company is
launching a new range of value products like coconut oil, shaving creams. But here again
the company will face certain issues. For lower priced products, the commission payout
will be less and hence the ABO will have to sell more volume to get higher commission.
Amway had introduced sachets for most of the products, but the low commission payout
for sachets has prompted ABOs to try and sell high value items. Another significant
change that the company made was rationalising the entry cost for new ABOs. Earlier, a
person had to shell out Rs 5000 to join the firm. The cost was to buy the Amway business
kit which consists of various Amway products and brochures. The ABO can recover the
money by selling these products. Now the company has introduced a starter pack for Rs
995 which does not have Amway products but brochures. This will be a big relief for the
existing ABO since the higher joining costs turned away most of the potential ABOs.
Among the 80 products, one of the best sellers for Amway is the Nutrilite brand. Nutrilite
is a nutraceautical supplement and this brand contributes around 50% of Amway's
turnover. The brand virtually faces no competition so far. The Indian nutraceauticals
market is estimated to be around Rs 1500 crore and is rapidly growing. Many Indian
companies are eying this segment and have serious plans to enter this segment. Amway
has understood that doing business in India will require a new business model. The
company has started to take steps in the right direction. It had tried to rationalise prices
and bring in new value products. But to balance the price, cost, quality and higher
commission is no easy task.
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PRIMARY FINDINGS AND ANALYSIS
1. How did you come to know about AMWAY?
As per our study suggested that the consumer awareness of the AMWAY increasing due
to of the advertisement Through digital media as well as one aspect of the consumer
awareness of the AMWAY also increases due to of its promotion though Newspaper and
Magazine stalls. Increasing level of consumer awareness also help any organisation to
retain more and more consumer base.
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2. Why do you prefer this brand?
As per our study suggested that people prefer AMWAY because Sales promotion of the
AMWAY is always has a top preference of the people which has very positive impact on
the sales of AMWAY . As we seen from the tabular graph and the data chart which is
shown above of this interpretation, As one of the objective of our study also to justify this
term with the sales promotion.
22% of the people purchasing AMWAY because they like the promotional strategy of the
company while 20% of the people prefer AMWAY because of the content quality of the
magazine. Since brand name of the AMWAY also making positive impact towards the
sales promotion, as per out study suggested that 11% of the people like the brand of
AMWAY so in this area AMWAY need to improve.
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3. Would you recommend company’s products to others?
In this study my primary research result suggested that 98% of the people out of 100 will
recommend to others for purchasing of the AMWAY while only 2% are those population
area who is either don’t want to give this kind of recommendation due to of personal or
other reason. This is good sign for the company to grow faster than the competitor with
the help of word of mouth publicity.
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4. Which promotional activities influence your decision to go for AMWAY rank in a
preference order?
As this study suggested that if AMWAY gives discount and free gifts both for sales
promotion it would give impact on the sales by 90% another scenario tells us that if
AMWAY management allow coupons and extra Talktime that will increase AMWAY
sales by 91.2%, while coupon & contest will help AMWAY to achieving its 88.2% sales
then the others.
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5. Which promotional activities do you want in near future from AMWAY rank in a
preference order?
As per our study suggested that the in future people are very particular about the some of
the promotional strategies, for the price off promotion 38 people are said they want good
report on this as a price promotional strategies. 39 people out of 100 people suggested
that they want premium offers which gives extra leverage to the AMWAY customer.
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6. Quality of Products & Packaging please rank in order of preference
AMWAY has excellent product range, 63 AMWAY managers suggested that company
has excellent product range to be offer to the customer and has unique value proposition
than the other company. As per our correlation test showing packaging and product range
has similarity of 86.8% which means that company has good packaging range with the
excellent product range but company need to improve the quality of the customer
grievances because when you increasing the product range your promptness towards
solving customer query should be in the higher side. As per 100 who is contributed in our
survey suggested that Packaging of the AMWAY give competitiveness of the firm as per
our correlation test suggested that these two are 95% of the correlated to the each other.
While almost 66% of the suggested that packaging of the AMWAY would be good.
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7. Quality of Sales Promotion and schemes
As per our study suggested that the quality of sales scheme of the AMWAY is very
satisfactory while we analyze the data, Innovativeness and the Frequency of sales
promotion is the biggest factor which contributed to the sales promotion of the AMWAY
while this has been proved through the which we applying above 93.5% chances of the
getting best deal through these situation. While as per the correlation test also showing
the sufficient stock would necessarily to have when any new sale promotion launched by
the AMWAY these factor are highly correlated to each other which is about to 99.3%.
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8. What is your position within the company?
Interpretation: Our survey result contributed out of 100 people 20 % people are working
in cedar to Middle management also 25% respondent from AMWAY working as a
senior management major chuck which contributed in our survey is executive i.e. 40% .
Other signifies a junior level of employee in AMWAY.
We taken this ratio because for change management decision mostly taken by the senior
management and then after it adding on affect to the junior or middle management people
to became a change management subject.
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9. For how long do you work for your company?
Interpretation: Out of 100 people for our survey 28% people responded that they serving
to AMWAY are more than 3 years but there work tenure is less than of 5 years. Adding
to this 17% respondent working with AMWAY is more than of 3 months which is
basically junior management also 16% said they working with AMWAY is more than
with range of 3-6 Months.14% respondent said they working with AMWAY last 1-2
Years. While 8% respondent said they working with AMWAY more than 5 years
AMWAY is very reach in terms of the work culture, 36% people are working with
AMWAY is more than of 3 year which shows great stability among the employees.
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10. How was the initial training in your company?
Interpretation: Asking this question means to judge the training need in AMWAY
company, out of 100 people 20% respondent said they thing training which they got in
AMWAY is above than expectation. And n 28% respondent said training given by the
AMWAY is meeting their requirement, 19% people said the training which they got is
below the expectation and 14% respondent said they didn’t got any training in AMWAY.
Below Expectations19%
Meets Expec-tations
28%
Above Expectations20%
No Training14%
Other19%
Training to the employee
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RECOMMENDATION
Why Amway Will Make Money Even If You Don’t
An interesting calculation: If 1 million people sign up, Amway will receive Rs. 4400
million (Rs. 440 crores or US$ 206.80 million) in up-front cash from this ‘cash rich’
country. They will have earned all this money without having sold a single one of their
very expensive products but just by sponsoring people to this business.
How This Is Done At The Expense Of The Middle Class
While doing this research, I have found that the only way to succeed in the business is to
be able to sign up vast numbers of people and make them use the products for
themselves. The other way is to run around peddling soap from door to door after having
bought it from Amway at a discount.
This is exactly where the Amway business strategy comes into play. It makes people
hand over their savings to Amway to buy them a dream.
If all Amway did was to manufacture and sell their products through door-to-door
salespeople there would be no problem. The choice of purchase is left up to the
individual.
By asking for deposits from buyers —in the beginning and again every year as a renewal
fee— it looks like Amway seeks to build a captive consumer base. Once someone has
paid Rs. 4,400 to Amway, he is naturally disinclined to buy Nivea hand cream instead of
Amway Gly-Honey hand lotion. The element of personal choice is thus prejudiced.
By involving their "distributors" in a complicated system of down-the-line commissions
they are given the impression that there is a limitless market for Amway products.
The truth is that the market share for Amway is as limited as the market share for any
other product. Traditional retail trade is not about to collapse and because of the
expensive price structure; the growth of that market is restricted to the very wealthy.
Calling this "an opportunity to use world class products" is a bit like calling the purchase
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of a Mercedes Benz for Rs. 25 lakhs an "opportunity", when an efficient Maruti 800 for
one-tenth of that price will do nicely.
With all these constraints, telling people of profit mechanisms tied into several thousand
people buying Rs. 1,500 worth of Amway soaps every month seems laughable in a
country where entire families lead their lives on less money.
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CONCLUSION AND IMPLICATIONS
Low start up cost
With an Amway Business Kit being the only start-up cost, Rs4400 virtually anyone can
own an Amway business. Compared to other business opportunities, initial costs for
starting an Amway business is intentionally low, priced affordably for nearly anyone with
a desire to invest in their future.
Low risk
Amway’s product-buy-back policy and no inventory requirement ensure a very low risk
when starting an Amway business. Its “Satisfaction Guarantee” has always been a
measure of confidence in the quality and value of AMWAY products, one more way
Amway supports the business opportunity for distributors.
Performance based
Amway is a performance-based business that rewards people in direct proportion to their
effort. The bigger the financial goal, the more time and effort a distributor will need to
put into his or her business. With an Amway business, a distributor can work as much or
little as he or she likes. The rewards are based directly on the distributor's
accomplishments.
Direct selling is trend
Thirty-four million people worldwide are engaged in direct selling, which is a $82 billion
industry (Source: DSA 2002). As people become busier, they are looking for ways to
save time on routine tasks, such as shopping for everyday needs. Direct selling fills this
need nicely, because Amway distributors deliver products to their doors. In addition,
Amway is one of the oldest and largest direct selling companies in the world.
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Flexibility
Goals and rewards are different for each distributor. You have the flexibility of working
part time while keeping a full-time job or building an Amway business into a full-time
career. You choose the time you invest in building your Amway business.
Product support
The Amway business opportunity is supported by a diverse line of hundreds of quality
AMWAY products and, in many markets, thousands of other brand-name products and
services. Amway has established a reputation for innovation in developing top quality
products and packaging.
Corporate support
More than 12,000 people worldwide are employed in Amway manufacturing,
administration, and distribution facilities totaling 10 million square feet (929,000 square
meters). Amway manufactures products in the United States, China and Korea and
maintains product warehousing facilities around the globe.
Equality of opportunity
Anyone starting an Amway business gets in at the same level. Each new distributor has
the same opportunity to surpass the most successful distributor, and the business
opportunity is continually improved. The Amway opportunity has been imitated often,
but the level of support Amway provides its distributors is difficult to duplicate.
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BIBLIOGRAPHY
Books and Secondary data
Amway Company Planner
Amway Opportunity brochures
Websites
www.amwayindia.com
www.amway.com
www.onlinemlm.com
www.getfacts.com
www.msn.com
Wikipedia.com
Google.com
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COPY OF QUESTIONNAIRE
Name: ___________________________ Age: _____________________
Address: _________________________ Status: ___________________
Occupation: ______________________ Sex: _____________________
1. How did you come to know about AMWAY ?
Friends/relatives
Newspapers/magazines stalls
Internet
Advertisement
Hoardings
2. Why do you prefer this brand?
Price Brand name
Quality Sales promotion
Easily available Schemes/offers
Packaging Others
3. Would you recommend company’s products to others?
Yes No
4. Which promotional activities influence your decision to go for AMWAY rank in
a preference order
Discounts
Coupons
Extra talktime
Free Gifts
Contestv Others (Plz specify)
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5. Which promotional activities do you want in near future from AMWAY rank in a
preference order?
Price-off Promotion
Premium offers
Couponing
Loyalty schemes
Guarantees
Welcome-Cocktail
6. Quality of Products & Packaging please rank in order of preference
Range of products catering to all types of consumer preference
Attractiveness of consumer packaging
Competitiveness of the product in the market/Ease of selling
Promptness in dealing with products complaints
Proper labeling (way of using)
7. Quality of Sales Promotion and schemes
Frequency of sales promotion/schemes
Attractiveness of sales promotion/schemes
Innovativeness of sales promotion
Promptness of response to competitive sales schemes
Sufficient supply of stocks provided with schemes/offers
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8. What is your position within the company?
Middle Management (Manager, Senior Manager, General Manager.)
Senior Management(Above than General Manager)
No answer
Other
Executive
9. For how long do you work for your company?
Less than 3 months Between 3-6 months
Between 6-12 months Between 1-2 years
Between 3-5 years More than 5 years
No answer Other
10. How was the initial training in your company?
Well below expectations Meets expectations
Above expectations No training
Other
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