CASE STUDY ON

MARKETING MANAGEMENT
Prepared by:
Roopesh Aggarwal
Vigneswaran AR
Abhishek
Usha
Praveen Yadav
Gyan pratap mall
Rajesh
Aneesh

INTRODUCTI
AmwayON
- "American Way" and was

coined in 1959 by Company founders,

Jay Van Andel and Richard Devos.
Direct selling company
Headquarters- Ada, Michigan, United
States
Amway India, a wholly owned
subsidiary of Amway Corporations, was
established in August 1995 after
approval by India's Foreign Investment
Promotion Board (FIPB)
450 Products In Over 80 Countries
Number of Employees-21000(2014)

OLD MARKET STRATEGY

RS 3040

MANUFACTURER
MANUFACTURER

CUSTOMER
CUSTOMER

EMPLOYEE
EMPLOYEE

RETAILER
RETAILER

RS 100

60%
-70%

DISTRIBUTOR
DISTRIBUTOR

WHOLESALER
WHOLESALER

MULTI-LEVEL MARKETING

NEW MARKET APPROACH

MANUFACTURE
R

ONE SINGLE
MEDIUM

CUSTOMER

NEW MARKET STRATEGY

CUSTOMER

CUSTOMER

CUSTOMER

DIRECT
SELLIN
G

INTERN
ET

OTHER

HOME
DELIVE
RY
CUSTOMER

 Comments on the concept of network or multilevel

marketing. Do you think the model would be successful
in India? Also, compare and contrast the MLM model with
the traditional distribution system, bringing out the
merits & demerits of both ?

Considering the present scenario, where E-commerce is

booming as such a high pace, survival of MLM seems to
be tough in India. Also, people are more habitual of the
traditional distribution system.
Also, Direct selling is seen as unwelcoming, an intrusion
into ones privacy. Products are slightly more expensive &
delivery time is also long. The merits would be it saves
the time of shopping apart from a good demo of the
product by the distributor/agent.
A Strong Distribution Channel is Required In Networking
Marketing.

TRADITION
AL
MARKETTI
NG
HUGE

START-UP COST
BIZ LOCATION RENT
STORAGE NEEDED
LIMITED
RESOURCES(CASH)
YEARS BEFORE PROFIT
IS REALIZED
DEPENDENT ON
OTHERS
GROWTH DEPENDS ON
MARKET

MULTI-LEVEL
MARKETTING
VERY

LITLE STARTUP

COST
NO EMPLOYEES NEEDED
WORK FROM HOME
NO STORAGE NEEDED
UNLIMITED
RESOURCES(PEOPLE)
REALIZED PROFIT
IMMEDIATELY
SELF DEPENDENT
GROWTH DEPENDS ON
SIZE OF SALES TEAM

DISTRIBUTION CHANNEL

MANUFACTUR
ER
SUPPLIER
DELIVERY

AMWAY

YOU
REGISTRATION
AUTHORISED
DISTRIBUTOR

UTILISATION
PRODUCT
USER

CUSTOME
R

 Study the developments that occurred after Amway

launched its commercial operations in India. List the
reasons, which led to the Below expectations
performance of the company
Four home care & Two personal care products were Launched
through Amway distribution centers (ADCs).
Amway appointed Sembawang shriram integrated logistics , and
mumbai based first flight couriers as its logistics partners for
home delivery of Amway products.
Amway assisted its three manufacturing partners ISO certified
Jejuplast at Pune, Naisa industries at daman, & Hyderabad based
Sarvotham care, to achieve benchmarking levels of product
development, engineering and quality.
Soon the concept of direct selling became acceptable and
Amway became the countrys
with a revenue of 100 crore.

largest

direct selling company

CORRECTIVE MEASURES ADOPTED BY

AMWAY

OPERATIO
N GHAR

OPERATIO
N GAADI

QUICK
EXPANSIO
N

HINDI
SLOGANS

GIVING
INCENTIVE
S

COVERAG
E INDIAN
LANGUAG
E

Critically examine the corrective measures adopted by

Amway to make the MLM model a success. What further
measures should the company take in order to tackle the
competition from FMCG majors Like HUL& P&G.

PRICE
REDUCTION
DIRECT
SALES
EXTENSIVE
TRAINING

EFFICIENT
EMPLOYEES
CONVENIENT
FOR WOMEN