Maintaining The Competitiveness Of A Global Brand
An Amway case study

Page 1: Introduction

Founded in Ada, Michigan in 1959, Amway has become one of the largest 'Direct Selling' companies in the world with nearly three million Independent Distributors. Direct selling involves dealing with customers 'Face-to-face' so that personal attention can be given to each of their requirements. Direct selling differs from traditional retailing as it often involves selling to consumers on a...
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Page 2: The ARTISTRY* Range Of Cosmetics

Over the last 31 years Amway has invested heavily in the development of the Artistry range of Skin Care and Cosmetics. The range comprises approximately 3,257 individual lines which are sold in over 30 countries throughout the world. Based upon a recent Euromonitor study of global sales data: Artistry is among the world's ten largest brands of facial skin and colour cosmetics Artistry is...
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Page 3: Product Development

Research and development play a vital commercial role creating better products through improving operational processes and helping the whole business focus upon its customers. Artistry products are the result of years of research, development and testing, supported by modern manufacturing principles. Amway's research is proactive, taking the lead in a market by researching the newest...
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Page 4: Global Marketing

Amway is a global organisation which markets products in international market places. Planning for global markets is a much more complex process than for domestic markets. It presents many more risks than operating in a domestic market where goods are sold in only one local area. Global marketing involves recognising that people from all over the world have different needs, i.e. values; customs...
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Page 5: The Product LIfe-cycle

Markets are in a constant state of change. Over a period of time, tastes and fashions alter and the technology used to produce goods and services moves on. As a result, there will always be a demand for new products as old ones become redundant. According to the product life-cycle concept, all products move through four life-cycle phases. During the introductory phase growth is slow and...
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Page 6: Injecting New Life Into The Artistry Life-cycle

To prolong the life-cycle of a brand or product range, an organisation must inject new life into the growth period through readjusting the ingredients of the marketing mix. In 1996, to ensure the Artistry range would stay in line with evolving market trends and tastes, Amway set about upgrading its brand with the additional objective of increasing its global competitiveness. Amway engaged in...
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Page 7: The Needs Of The Targeted Markets

Market segmentation is the process of breaking a market into sections which match consumer needs. Where segments are identified as having requirements that can be met by an organisation, they can then be targeted. Research of international markets commissioned by Amway aimed to gain a broader understanding of the Artistry user. It indicated that the overall profile of the Artistry user was...
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Page 8: Universal Packaging

Packaging is particularly important as part of the 'product surround' in the cosmetics industry. The functions it serves include: protecting the product which it contains acting as a communication tool - conveying messages about the image and ingredients of the product and the manufacturer creating brand identity between the numerous components. Packaging for Artistry products is one...
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Page 9: Global Promational Campaign With Regional Image Requirements

One of the biggest challenges for global businesses is designing promotional and advertising materials that go beyond national and cultural boundaries. The revision of Artistry was backed up with a promotional campaign designed to: build brand awareness increase sales of the Artistry range maintain a consistent global image to meet specific market needs. The challenge was how to...
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Page 10: Conclusion

The revision injected life into the Artistry brand to extend its life-cycle across its global markets. The manipulation of the marketing mix for Artistry products enabled the business to benefit from economies of scale in production, packaging and promotion of the Artistry range while at the same time fulfilling the specific needs of regional markets around the world.
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