Amway Case Report

Topics: Marketing, Market segmentation, Marketing research Pages: 6 (2081 words) Published: October 27, 2010
Amway: Successful Products-Successful Solutions

Successful, unique, opportunity, multibillion-dollar, and renowned are all perfect words to describe the Amway multinational organization. Created in 1959 by company founders, Jay Van Andel and Richard DeVos, Amway has since then developed into one of the most successful multilevel marketing businesses. Amway is known for being a direct sales company and one of its largest product divisions is Home Care where household cleaning products take part in some of their most successful products. One of their successful products which was put out into the market in September 1995 is the Super Concentrated Cleaning System. This product is a 3-in-1 unit which includes a spray gun and three different concentrates; Liquid organic Cleaner (LOC) concentrate, See Spray Super Concentrate, and Zoom Super Concentrate. Each of these concentrates is made for a specific surface and they all come in one tote tray. During the launching of this product, Amway focused on a few main benefits that were offered to consumers. Amway focused on demonstrating that the Super Concentrated Cleaning System is unlike any other cleaning product in the market, its convenience, and its environmental sustainability.

Amway’s precise marketing strategy plays a major role in the success of the Super Concentrated Cleaning System. In order to have a successful outcome for your new product, the first step is to define your target market. Defining your target market is one of the most important steps of the marketing process because all your marketing decisions will be revolved around those specific customers in your target market. In the book Marketing, Jim Blythe states, “The reason for segmenting the market is to make the best use of the firm’s resources. There are no longer any products that please everybody- consumers have become too discerning” (Blythe). The target market should include the customers who are qualified to purchase your product. The qualified customers should be in need for a solution, are able to make the purchase financially, and have the opportunity to make the decision. On the other hand, your target audience is just a general group of people that your product is aimed at. The target audience for the Super Concentrated Cleaning System would be all types of customers who have just a basic need of a cleaning solution. Whereas the target market is a specific group of people that the marketing decisions will be directed towards. The target market for the Super Concentrated Cleaning System would most likely be women who are housewives or for the small businesses who would need this product for their work such as house-cleaning and maid services. In order to reach their target market, Amway’s press releases and product samples were displayed in magazines such as Good Housekeeping, Living, Perfect Home, House Beautiful, Homeflair, and Women and Home. If marketers were to direct the marketing campaign for the Super Concentrated Cleaning System towards their target audience, just a general group of people, they would not have a very successful approach. Involved with target marketing, marketers will have to use the market segmentation approach. This approach divides the general target audience group into smaller market segments based on specific characteristics that each segment shares. In order to have a successful outcome with the Super Concentrated Cleaning System, the marketing segment that fits best with Amway’s objectives and goals should be chosen. As stated in the case study, Amway’s objectives for the Super Concentrated Cleaning System were to increase distributor profitability and productivity with a new and exciting business opportunity, optimize consumer convenience and value through product differentiation, and to provide innovative and unique products to enhance the image of Amway Home Care (Amway). Therefore, regarding to the Super Concentrated Cleaning System, the target audience and...
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