Using communications to develop business opportunities
An Amway case study

Page 1: Direct selling

Amway was set up in 1959, with only a disused service station as a base. Today, Amway is one of the world's largest direct sales companies, with over 2.5 million independent distributors in more than 70 countries world-wide. There are 35,000 independent distributorships in the UK, Republic of Ireland and Channel Islands offering a range of products from a vast product portfolio. The critical...
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Page 2: The importance of communication

Clear communication is essential when managing activities. Amway needs to communicate regularly with its 35,000 distributors in order to help them prepare for their increasingly challenging role. Communication is the passing on of ideas and information. In business, it is essential to have good clear channels of communication. This case study focuses on how Amway uses a range of communication...
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Page 3: Choosing the communication channel

The choice of communication channel used by Amway depends on what needs to be communicated. The way in which a message is delivered has an important impact upon how it is received. For example, certain publications, specifically targeted at top distributors are used when Amway wishes to communicate very specialised information, of value only to this level.
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Page 4: Amway´s communication channels

There are five different communication channels. Corporate Events Corporate events include specially arranged functions, such as product fairs, conferences and seminars, which distributors at different levels are invited to attend. Face-to-face communication at a range of events helps Amway and its distributors to get to know each other. They also provide an opportunity for distributors to...
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Page 5: Other communication channels

The circumstances under which a business communicates constantly change. Organisations have to constantly review their communication systems to ensure the correct messages are transmitted in the correct way to the required audiences. For Amway, this means that different communication media are required for a range of purposes. For example: Direct distributors are targeted via a monthly...
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Page 6: Artistry products

Developing a new range of skin care and cosmetics products is a costly process. It is important to co-develop the distribution network, thus giving key advantages over other products in the market-place. Amway created ARTISTRY* as a complete line of skin care and cosmetics, to make clients look and feel the best that they possibly can. Amway is one of the few cosmetics companies in the world...
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Page 7: Clarifying business opportunities

Acceptable business procedures must be developed when a large number of distributors representing a single organisation, all work independently. It is important that communications from Amway provide a moral direction for its distributors but, at the same time, allows them to develop their own identity. The Amway Rules of Conduct and Code of Ethics conform to the DTI's requirements and define...
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