Focusing a brand product range
An Amway case study

Page 1: Introduction

Amway is a global company which has built its success on direct selling. Direct selling is different from the more traditional distribution channels: customers visiting shops to buy their goods. Amway has three million Independent Business Owners (IBOs) worldwide who deal directly with clients, building up personal relationships and delivering direct to their homes. Amway manufactures and...
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Page 2: Background to the hair care market

The market for hair care products is enormous and continues to grow. Western Europe is currently the world's largest region for hair care products and by 2001 sales are expected to have increased by nearly 16on 1997 levels. However, other economic areas such as the Asia-Pacific region, Eastern Europe and South America are expected to grow faster and offer excellent new markets. Sales in...
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Page 3: Technological innovation

Scientific research and the development of new products are extremely costly and are often beyond the financial resources of small companies. For Amway this investment has been key to its success. Amway has been a market leader in researching and developing new products throughout its product portfolioand designing new manufacturing processes, essential if it is to keep ahead of its...
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Page 4: Satinique - the launch of a new product

After several years of research and development, Amway has produced new Satinique, a range of products using one of the most advanced hair care technologies available today. It uses the Ceramide Infusion System and to understand how it works requires some knowledge of the structure of the human hair. Hair is comprised of three layers: the medulla, which is the soft spongy core of the hair...
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Page 5: Target markets and market segmentation

Having successfully developed the new product in the laboratory, Amway has to decide how it is going to be marketed. This is the responsibility of the Corporate Marketing Team. Firstly, the marketing team had to decide what the objectives were for Satinique before they could plan the marketing strategy. What are we trying to achieve with this new product and how are we going to achieve it? Only...
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Page 6: The target audience

Some companies will aim their products at the entire population, others will try to differentiate. Splitting the whole market up into various groups is known as market segmentation. Although it was recognised that groups such as children, men and teenagers are likely to become targets in the future, the Satinique range was aimed at adult females between 25 and 44 years of age. Extensive...
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Page 7: Packaging

One of the most important challenges for Amway's team of experts was to develop the appropriate customized product packaging for the new Satinique products. It was important to create a brand image for the total product range. The image created would reflect a great deal about the product and its consumers. This is known as positioning the product within the market. Packaging can be crucial to the...
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Page 8: Conclusion

The launch of any new product requires a considerable amount of time, effort and careful planning. Research and development uses advances in science and technology to enhance products, while market research examines changing consumer tastes and fashions. The Corporate Marketing Team and team of experts have to co-ordinate and develop a cohesive marketing strategy. The key to successful...
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