Page 1: Introduction
This case study focuses on the launch of a new cleaning product by the multinational organisation, Amway. It considers some of the processes which are essential to the successful launch of a product, such as the marketing strategy for the product, the product's positioning, the launch strategy and post-launch analysis.
Amway is one of the world's largest direct sales companies. Direct selling is based on person-to-person relationships and involves the distributor going to the consumer rather than the consumer going to a shop. Amway's product sales are broadly spread through North America, Japan, Europe, the Western Pacific and South and Central America. One of its largest product divisions is Home Care which accounts for a significant volume of sales, with household cleaning items making up an important part of this Home Care division.
Within the Home Care division, products are promoted and sold by Amway's independent distributors who develop their own client base. Distributors play an important part in introducing new products to customers. New products are often successful if they provide better solutions to consumers' problems and needs. An effective solution is one which makes the consumer feel that the product is:
- better than anything else available on the market
- just what they are looking for.
We can all think of products and services which create successful solutions, for example:
- non-stick frying pans
- cordless kettles
- personal stereos.
This case study examines the launch of a comparatively new product which met all the criteria of a successful solution.