Amway Company Marketing and Management

Running Head: AMWAY COMPANY MARKETING AND MANGEMENT
Amway Company Marketing and Management
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AMWAY COMPANY MARKETING AND MANGEMENT 2
Executive Summary
Amway Company has managed to attract the attention of the Australia Home Care as
well as Global market while launching its new product; Nutrilite . The current paper thus covers
the SWOT analysis of the company, Segmentation, targeting and positioning as well as the
marketing mix, to determine the position of the company and the capability of launching a new
product. From the exploration, it is evidential that Amway has a strong brand name, a wide range
of products and customers, as well as string multi-level marketing strategy. Amway has different
opportunities to grow resulting from the current emerging markets and the rapid development of
technology. Consequently, Amway faces threats such as stiff completion and the high rate of
falling prices that if not addressed might negatively affect the company. Therefore, it is
imperative for the company to venture into the production of products that are affordable to both
the medium and low class.

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Table of Contents
1.0 Introduction................................................................................................................................4
Company Introduction.....................................................................................................................5
3.0 Brief Industry Overview............................................................................................................5
4.0 SWOT Analysis.........................................................................................................................6
5.0 Segmentation, Targeting & Positioning..................................................................................13
5.1 Segmentation........................................................................................................................13
5.1.1Behavioural segmentation..............................................................................................13
5.1.2Demographic segmentation............................................................................................14
5.1.3 Psychological segmentation..........................................................................................15
Figure 3: Shows Market Segmentation obtained from (Femina & Sudheep, (2017)................16
5.2 Targeting..............................................................................................................................16
5.3 Positioning...........................................................................................................................17
6.0 Marketing Mix.........................................................................................................................17
6.1 Product.................................................................................................................................18
6.2 Price.....................................................................................................................................18
6.2.1 Section Pricing..............................................................................................................19
6.2.2 Allowance Pricing.........................................................................................................19
6.2.3 Promotional Pricing.......................................................................................................19

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6.2.4 Competition-Based Pricing...........................................................................................20
6.2.5 Demand-Based Pricing..................................................................................................20
6.3 Place.....................................................................................................................................20
6.4 Promotion.............................................................................................................................20
6.4.1 Advertising....................................................................................................................20
6.4.2 Direct Marketing...........................................................................................................21
6.4.3 Personal Selling.............................................................................................................21
7.0 Conclusion...............................................................................................................................22
8.0 References................................................................................................................................23

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1.0 Introduction
Products and service marketing is significant to every organisation, as it enhances the
organisations’ performance as well as the satisfaction of the stakeholders: customers, and society
at large. Marketing refers to the combination of different activities that focuses on analysing
customers need, securing information, and producing goods according to customer needs.
Through marketing, organisations create utility; want-satisfying power of goods and services and
are categorised into four: form, place, ownership and time utility, and all are obtained through
marketing. Marketing and management are always essential when a new product is being
introduced, or a new organisation enters into a new market. Effective marketing and
management thus ensure success or failure of an organisation since it ensures the achievement of
the desired outcome over a specified period. The current paper explores the marketing and
management of Amway Corporation in Australia, with a focus on its capability to introduce a
new product (Drescher, 2017). The paper entails company introduction, an overview of the
industry, SWOT analysis, segmentation, targeting and positioning, marketing mix and
conclusion of the paper.
Company Introduction
Amway Corporation is a direct retailer, manufacturer, and marketer of cosmetics and
related products such as household, cosmetics, beauty, skin care, and home care (Roth, 2014).

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The USA based company created in 1952 by Rich De Vos and Jay Van Andel is currently a
global organisation operating in more than 80 countries such as China, Europe, Japan, America,
Korea, Australia, and SE Asia. Amway Corporation is one of the most appreciated companies
with multi-level marketing strategies; through this, thousands of distributors signed each month
leading to the global expansion of the company. Over the years the company grew its products
lines from LOC, laundry detergents, cosmetics, Artistry among many many others resulting in
more than 450 products across the world.
3.0 Brief Industry Overview
Amway Company is categorised under Homecare Industry that focuses on different
products such as fabric Cleansing, Care, Dishwashing agents, and water purifications among
many others. Global homecare industry experiences robust growth over the past decade with a
rate of 4.6%. The high rate of growth in Homecare is associated with a high rate of global
population growth as well as the continuous changing lifestyle creating demand for both existing
and new products. In Australian too, Homecare industry is experience rapid growth to 1.5% in
2016 and 2% in 2018. The rapid growth rate is associated with the availability of innovativeness
and strong marketing of numerous products by different companies in effect to capture the
attention of greater audience Euromonitor International’s Home Care.
4.0 SWOT Analysis
SWOT Analysis aims at providing provides a comprehensive report on the company’s
strategic business culture, key competitors, products and services (Ingaldi & Škůrková, 2014).