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Marketing Mix Amway

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  • October 2010
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CASE STUDY: AMWAY INDIA

Amway is an abbreviation for "American Way" and was coined in 1959 by company founders, Jay Van Andel and Richard DeVos. Short, unique and easy to remember, Amway has been registered as a corporate name and trademark ever since. Amway is a well-established company with a solid record of stability and growth that provides a Business Opportunity to individuals. That opportunity is supported by a comprehensive line of superb products sold exclusively by authorized Amway Independent Business Owners around the world.

BLUNDERS OF AMWAY IN MARKETING MIX

1. PRICE
This refers to the process of setting a price for a product, including discounts. The products are costly as compared to other branded products that are available in the market and as though it was focusing just on the elite class though the target was the all the common man. Here in India Most of the people are at the mercy of their children or kith and kin. Earning something substantial for the old age is almost in every Indian's mind. Everybody values for the price and are very careful with the money. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, or attention.

2. PLACE
Direct selling is a concept considered alien to Indian culture, the sense of financial insecurity of Indians, especially regarding their post-retirement life, makes them the ideal candidates to undertake this innovative method. Sense of security among the people in metros is comparatively much higher than the other parts of the country. Metros have lesser needs. The Distribution Network was far from reach from common man. There was a lot of competition from P&G, Avon, and Hindustan Lever. Negative name recognition to some, relatively less distributor-friendly comp plan than many newer companies, but is still very lucrative. Distributors having to pay commissions to and order products for “pre-direct” down line members were a...