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    Amway

    Uploaded by

    sandhya rani
    This document discusses direct marketing, multi-level marketing, and Amway's business model. It provides answers to three questions: 1) It defines direct marketing as personal contact between a salesperson and consumer away from a retail store. Multi-level marketing involves companies like Amway recruiting independent distributors who sell products and recruit others, receiving compensation from their own and recruits' sales. 2) Amway faced difficulties selling their direct marketing concept in India as it was not well known. Problems with distributor attrition, premium image, and customer dissatisfaction arose. To overcome this, Amway should have used a traditional approach and ensured products were easily available at valid prices with proper advertising. 3) Recomm

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    Amway

    Uploaded by

    sandhya rani
    89 views2 pages
    This document discusses direct marketing, multi-level marketing, and Amway's business model. It provides answers to three questions: 1) It defines direct marketing as personal contact between a salesperson and consumer away from a retail store. Multi-level marketing involves companies like Amway recruiting independent distributors who sell products and recruit others, receiving compensation from their own and recruits' sales. 2) Amway faced difficulties selling their direct marketing concept in India as it was not well known. Problems with distributor attrition, premium image, and customer dissatisfaction arose. To overcome this, Amway should have used a traditional approach and ensured products were easily available at valid prices with proper advertising. 3) Recomm

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    This document discusses direct marketing, multi-level marketing, and Amway's business model. It provides answers to three questions: 1) It defines direct marketing as personal contact between a salesperson and consumer away from a retail store. Multi-level marketing involves companies like Amway recruiting independent distributors who sell products and recruit others, receiving compensation from their own and recruits' sales. 2) Amway faced difficulties selling their direct marketing concept in India as it was not well known. Problems with distributor attrition, premium image, and customer dissatisfaction arose. To overcome this, Amway should have used a traditional approach and ensured products were easily available at valid prices with proper advertising. 3) Recomm

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    89 views2 pages

    Amway

    Uploaded by

    sandhya rani
    This document discusses direct marketing, multi-level marketing, and Amway's business model. It provides answers to three questions: 1) It defines direct marketing as personal contact between a salesperson and consumer away from a retail store. Multi-level marketing involves companies like Amway recruiting independent distributors who sell products and recruit others, receiving compensation from their own and recruits' sales. 2) Amway faced difficulties selling their direct marketing concept in India as it was not well known. Problems with distributor attrition, premium image, and customer dissatisfaction arose. To overcome this, Amway should have used a traditional approach and ensured products were easily available at valid prices with proper advertising. 3) Recomm

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1Q.

    Describe how this case pertains to a) Direct marketing b)multi-


    level-marketing?

    ANS) a) Direct marketing is defined as personal contact between a sales


    person and a consumer away from a retail store. This type of retailing
    has also been called in-home marketing. A variant of direct marketing is
    called multilevel marketing where by companies such as Amway recruit
    independent business people who acts as distributors for their
    products, who in turn recruit and sell to distributors, who eventually
    recruit others to sell their products. A distributor’s compensation
    includes a percentage of sales to the entire sales group that the
    distributor recruited as well as earning on any direct sales to retail
    customers.

    b)multi-level-marketing pertains amway in selling health, beauty,and


    home care produts.It has been investigated in various countries and by
    institions such as the federal trade commission(FTC)for alleged pyramid
    scheme practices.

    2Q.what are difficules facing amway in india? How to overcome it.

    ANS) Amway faced difficulte in selling the basic concept of direct


    marketing to the Indians.As the direct marketing model is not new to
    india.So the consumers were not rush to buy the amway
    product.However the problem like distributor attrition,a false,premium
    image and customer dissatisfication began surfacing.

    TO overcome this problem Amway should have opted for traditional


    approach and product should be easily available to customers whit
    valid pricing and proper advertsing of product.
    3Q.What are the recommendations you can give to amway for the
    future?

    ANS)1.The price of product should be low so that all level families use
    the product.

    2.There should be some modification in the policy of membership in so


    that it attract more individuals.

    3.The entry fee for membership should down that all income group can
    able to take membership in amway.

    4.There should be increase in the profit margin to the members.

    5.Awareness about amway is good but they have to make more


    programmers like seminars.amway meeting and cultural programme
    so that they are able to make more awarness to more peoples.

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