Amway Company Marketing and Management Report for BUMKT5902

This report provides a comprehensive analysis of Amway Corporation's marketing and management strategies, focusing on its capability to introduce a new product. It begins with an executive summary and an introduction to Amway, a global direct retailer. The report then explores the homecare industry overview. A detailed SWOT analysis of Amway is presented, evaluating its strengths (strong brand, marketing strategy, wide product range), weaknesses (falling sales, high employee turnover), opportunities (growing technological advancement and emerging markets), and threats (competitors). The report then delves into Amway's segmentation, targeting, and positioning (STP) strategy, including behavioral, demographic, and psychological segmentation. A discussion of the marketing mix (product, price, place, promotion) follows, with details on pricing strategies and promotional activities. The report concludes with a summary of the findings, highlighting Amway's market position and potential for growth.

Running Head: AMWAY COMPANY MARKETING AND MANGEMENT
Amway Company Marketing and Management
Name:
Academic Affiliation:
Date:

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.

AMWAY COMPANY MARKETING AND MANGEMENT 3
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

AMWAY COMPANY MARKETING AND MANGEMENT 4
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

AMWAY COMPANY MARKETING AND MANGEMENT 5
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).

AMWAY COMPANY MARKETING AND MANGEMENT 6
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).

AMWAY COMPANY MARKETING AND MANGEMENT 7
Figure 1: Shows SWOT Analysis Framework, obtained from (Ingaldi & Škůrková, 2014).
Factors
Strengths Strong Global
Presence and
procurement
Amway has a wide range of products that are used by
numerous people across the world. These products
range from the health, nutrition to household items
thus in one way or the other, 8 out of 10 people
purchase the company’s product in a day thus
controls more than $ 2 billion in the global annual
spending. This led to the award to the company as the
bets Global Supply Chain Excellence by the Supply
Chain Council Award in 2006.
Strong marketing
strategy
Amway has a strong marketing strategy that enables
the company to capture the attention of numerous
customers’ across the world. The multi-level
marketing strategy refers to the referral marketing
that encourages the existing distributes to recruit new

AMWAY COMPANY MARKETING AND MANGEMENT 8
distributes who earn through their respective recruits'
sales (Lindgreen & Anthony, 2018). The marketing
system is of great importance since it has numerous
advantages that enhance the growth of the business:
Low risk- the MLM has low risk to business
especially to the start-ups- and new products since it
reduces the probability of losing money, time and
resources such as infrastructure since each
distributor’s works as individuals to increases their
sales and they are no financial commitment like the
traditional versions. (Palmisano & Pannofino, N.
(2013) Thus this offers good environs for any start-
up.
Huge potential income- MLM has huge potential
income since each of the distributors are not held
back by the company as each wants to earn more thus
must strive to sell more. Unlike the traditional
marketing versions, MLM encourages one to earn
depending on the workloads or fix monthly salary
irrespective of the sales.
Low operating cost-Multi-level marketing strategy
has low operating cost since it does not require the
installation of various infrastructure, recruitment and

AMWAY COMPANY MARKETING AND MANGEMENT 9
training of marketing staff as well as no investments.
The existing distributor’s recruit new distributors to
earn more money depending on their sales. Thus the
cost does not land into the company’s financial
structure.
Wide product range Amway in Australia provide a wide range of products
that are :
Health products such as supplements, vitamins
(Nutriway) and mineral products that are essential in
supporting the lifestyle of human beings.
Beauty and Body cosmetics that are essential to
maintain the skin care such as Artistry largest selling
skincare, Santinique the bets salon hair care, Glister
that rinses, refreshers and toothbrushes and keep the
mouth clean and healthy,
Laundry products such as SA8 and dishwashing
solutions.
The wide range of products offers the company a
good marketing ability since they are available in
every aspect of consumer’s daily life thus increase the
chances of consumer purchasing intentions as well as
acts as a marketing tool through creating popularity

AMWAY COMPANY MARKETING AND MANGEMENT 10
(Harland, Uddin, & Laudien, 2018).
Wide range of
consumers
Amway products have a wide range of consumers
ranging from babies to adults and women to men. The
wide range of consumers thus offers the company a
stronger competitive advantage since, in daily
purchased of an individual, there must be a product
from the Amway industries, thus increasing the
revenue collection of the company even in areas that
are perceived to be strongholds of the competitors
(Chun, 2015).
Diverse revenue
model
Amway company has diverse revenue collection
ranging from the production, direct sales and referral
sales across numerous countries that enable the
company to collect more revenue.
Strong brand name The direct sales model creates a strong brand image
and recognition among consumers across the world,
thus increasing the revenue collection. Consequently,
strong brand recognition enables the company to
offer products at low prices than the competitors thus
acquire a better competitive advantage.
Weakness Falling sales The falling revenue of the Amway’s products is
attributed to the stiff competition from the rivals
companies such as Mary Kay and P&G resulting in a

AMWAY COMPANY MARKETING AND MANGEMENT 11
drop in the sales by 7% in 2016. The rival
competitors tend to reduce the market capture of the
Amway thus reducing their impact on the Homecare
industry.
High employee
turnover
Amway experience high employee turnover since the
company does not have direct control over the
employees.
Opportunities Growing
technological
advancement
In the current world technological advancement has
reduced the distance between companies and the
customers through the various social media platform.
Amway company thus has a great opportunity to
enhance multi-level marketing strategy through the
application of the social media platform at such as
Facebook that contains more than 2.38 billion.
Through this Amway has the greatest opportunity to
capture and sell to more customers than any other
decade.
Emerging markets Emerging markets such as China, Africa and India
are the largest emerging markets in the world due to
the strong economic, population and purchasing
power growth (Csontó, 2014). These provide a good
business environment for the company’s products,

AMWAY COMPANY MARKETING AND MANGEMENT 12
thus encourage the company to take the opportunities
in capturing such markets.
Threats Competitors Like any other business, competitions are a common
aspect; thus Amway is no exemption. Amway faces
stiff competition from various business operators
such as Mary Kay, P&G, VLCC, HUL, P7G and
Loreal that have different products and marketing
plan (Jimmie, 2012).
Mary Kay company is the biggest rival to Amway
and focuses on the provision of skin products,
makeups, and fragrances. The company has about
5,000 employees across Australia and accumulates
about $4 billion per year.
Procter & Gamble Company is the second rival to
Amway in Australia and aims in offering consumers
with wrapped products clients across the globe. P&G
products are segmented into various Prettiness,
Grooming, Health Care, Textile & Home Care, and
Infant and Children Care, Women Care and Family
Care. The company has more than 92,000 employees
and attract about $ 66.9 Billion per annum.