Amway Company Marketing and Management

This presentation provides an overview of Amway Company, including its history, products, SWOT analysis, segmentation, targeting, positioning, and marketing mix. It also discusses the company's strengths, weaknesses, opportunities, and threats.

Amway Company Marketing and
Management
Name:
Academic Affiliation:
Date:

Introduction
• Company- Amway
• Created by Rich De Vos and Jay Van Andel in
1952
• Products- Home Care products
• Examples – beauty skin care, laundry etc.

Brief Industry Overview
• Homecare Industry
• Have high global growth rate of 4.6%
• Australian growth rate of 1.8%

SWOT Analysis
• Strengths
Strong Global Presence and procurement
Strong marketing strategy
Wide product range
Wide range of consumers
Diverse revenue model
Strong brand name

Cont.’
• Weakness
Falling sales
High employee turnover
• Opportunities
Growing technological advancement
Emerging markets

Cont.’
• Threats
Competitors-
Mary Kay -the biggest rival to Amway and
focuses on the provision of skin products,
makeups, and fragrances.
5,000 employees across Australia
Revenue of about $4 billion per year

Cont.’
• Procter & Gamble Company
the second rival to Amway in Australia and
aims in offering consumers with wrapped
products clients across the globe,
92,000 employees
attract about $ 66.9 Billion of revenue per
annum

Segmentation, Targeting & Positioning
• Segmentation
Behavioural segmentation-procedure of
segmenting the total market into a smaller
cluster of potential customers based on the
customer’s purchasing behaviours .
Amway segmentation –products' usage

Cont.’
• Demographic segmentation-partition of the entire
identified customers into a reduced cluster of
potential customers based on the demographic
aspects such as age, gender, family size, income, and
education
• Amway demographic segmentation factors – Nutrilite
for children, Artistry for women and Dynamite for
men.
• Psychological segmentation -division of the total market into a smaller
cluster of potential customers based on the traits values, personality,
interest, and lifestyles .

Cont.’
• Targeting
All ages- Captures all ages
All genders- Most products are associated to
females
Targets high class customers

Cont.’
• Positioning
Based on “more for more” positioning strategy
The positioning targets high class consumers
Results into high priced products

Marketing Mix
• Definition –Combination of tools used to
create product awareness and induce the
purchasing.
• Categories -Products , price, place and
promotion

Cont.’
• Products – Items offered to customers to
satisfy their needs in exchange of money.
• Amway’s products are of high quality
• Averagely 45o products
• Categorized under beauty, bath, laundry,
home maintenance products, home tech,
home-based appliance, and jewellery and
style accessories

Cont.’
• Price- Monitory value tagged along the
product
• Amway products are very high
• Strategies - Segmentation , Allowance and
promotional pricing

Cont.’
• Place- Identifies the specific location of the
products and services to various target
customers.
• Amway placing – Depends on distributors and
sub-distributors.

Cont.’
• Promotion- process of increasing sales of a
product
• Categories
Advertising-non-personal communication strategy
with the targeted audience through various media
such as radio
Direct sales- use of non-personal marketing tools
such as telephone
 Personal selling-application of the human as the platform of product promotion.

Marketing Mix figure

Conclusion
• Amway strengths lie in the strong global
brand, a wide range of products, high quality
of products, strong brand name and wide
range of revenue collection.
• weakness lies on the rising stiff competitors,
and the high product process

Cont.’
• opportunities of the company, lies on the
rising technological advancement and the
emerging markets such as Afric, Asia and
chain.
• Amway company need to do to ensure a
continuous competitive advantage over stiff
competitors such as P&G and Mary Kay.

References
• Awan, M. (2014). International Market
Segmentation: Exploring Cell Phone Market of
Young Adults. International Journal Of Trade,
Economics And Finance, 5(2), 151-154. doi:
10.7763/ijtef.2014.v5.359
• Divock, L., & Leychik, V. (2012).Strengths and
weaknesses of the advertisement
discourse. Modern Communication
Studies, 1(1), 0-0. doi: 10.12737/79