Reaching customers through direct selling
An Amway case study

Page 1: Introduction

For the modern business organisation, developing goods or services is not enough. Goods must also be available in the right quantity and at the right location in order to reach the customer. For the organisations themselves, distribution strategies should never be under-rated. Developing an effective way of reaching customers may be the cornerstone upon which their successes are...
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Page 2: Amway

Founded in Ada, Michigan in 1959, Amway has become one of the world's largest 'Direct Selling' companies. The company's first product L.O.C. was one of the earliest biodegradable cleaners and is still marketed by Amway. Today, the company has developed into a global corporation selling more than 400 products and employing in excess of 13,000 people, in over 70 countries and territories around...
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Page 3: Direct Selling

The concept of direct selling is based upon person-to-person relationships. The seller goes to the consumer rather than the consumer to a shop. In today's fast changing society, where more people work and shopping patterns have altered, this type of shopping not only provides consumers with accessibility to a wide range of products but is also convenient. An organisation involved in direct...
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Page 4: Amway culture

Amway's co founders, Rich DeVos and Jay Van Andel, believe that people everywhere desire the opportunity to achieve and better their lives. Amway has developed a series of statements which outline its culture. As with many different types of statements of corporate purpose, these statements fall into a hierachy.
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Page 5: Amway's mission

'Through the partnering of Distributors, Employees, and the Founding Families, and the support of quality products and service, we offer all people the opportunity to achieve their goals through the Amway Sales and Marketing Plan.'
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Page 6: Amway vision

'To be the best business opportunity in the world.'
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Page 7: Amway values

Partnership Amway is built on the concept of partnership, beginning with the partnership between our founders. The partnership that exists among the founding families, distributors, and employees is our most prized possession. We always try to do what is, in the long-term, in the best interest of our partners, in a manner which increases trust and confidence. The success of Amway will reward...
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Page 8: Amway sales and marketing plan

The activities of each Amway distributor are determined by the Amway Sales and Marketing Plan. Amway practices direct selling which is 'A method of selling goods directly to the consumer by an independent Distributor. A Distributor can then introduce further Distributors and generate income from retail profits supplemented by bonus payments based upon the total sales of the group built by a...
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Page 9: Responsibility to Employees and customers

All organisations have a responsibility to serve their employees and customers, who are likely to be affected by the consequences of an organisation's activities. In today's business environment it is unacceptable for organisations to ignore the activities of consumers and individuals within the wider community. For Amway this means doing business ethically and taking a stance on key issues...
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Page 10: Business awareness campaign

Amway is a member of the Direct Selling Association (DSA), the industry body representing forty direct selling companies. All member companies have to abide by its Code of Practice which is endorsed by the Office of Fair Trading. In July 1992 Amway (UK) Ltd launched its Business Awareness Campaign to persuade the government to tighten up the current pyramid selling legislation. The...
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Page 11: The results

'With the full support of the Direct Selling Association (DSA), the industry body representing direct selling companies, Amway has lobbied both MPs and opinion formers and achieved extensive media exposure, highlighting the need for the legislation to be amended. As a result of these concerns, Sir Nicholas Scott MP introduced a Private Members Bill tightening legislation - The Trading Schemes Bill...
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Page 12: The personal touch

The success of every organisation depends upon the satisfaction of its customers. The Amway product range covers many consumable items which most people have in their homes. The quality of its products is considered to be the organisation's driving force. Amway is committed to ongoing research and development. The direct selling industry has grown rapidly over recent years. Changing lifestyles...
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