Amway's Indian Network Marketing Experience
ICMR HOME | Case Studies Collection
» Marketing Case Studies
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
"Our biggest challenge is not how to expand the market in India, but how to convince the indifferent Indian consumers about the world-class quality of Amway Products. The quality of the product is Amway's strength."
- Sudershan Banerjee, CEO & MD, Amway India in 1999.
A Dream Gone Awry
(There were rumors that some distributors enrolled just to take advantage of the distributor's margin of 18-30%). In the initial stages, when trials were the only criterion, this worked well. However, this self-consumption did not translate into repeat purchases.
1] The MLM system utilized a multi-tiered salesforce of independent distributors - none of them employees - to sell products directly to consumers. These distributors earned commissions at two levels - the first, the difference between the distributor's cost and selling prices, and second, a proportion of the commissions earned by other distributors recruited. MLM thus completely bypassed the retail chain and cut costs of the traditional distribution system.
Case Studies Links:-
Short Case Studies,
Simplified Case Studies.
Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.
Business Reports Link:- Business Reports.
Books:- Text Books, Work Books, Case Study Volumes.
|Business Environment||Business Ethics||Business Reports||Business Strategy|
|Corporate Governance||Economics||Enterprise Risk Management||Finance|
|HRM||Innovation||Insurance||IT and Systems|
|Leadership and Entrepreneurship||Marketing||Miscellaneous||Operations|
|Project Management||Short Case Studies||Cases in other Languages||Free Case Studies|