BUMKT5902 Marketing Report: Amway Company Analysis and Strategies

This report offers a comprehensive marketing analysis of the Amway company, examining its operations, strategies, and market positioning. It begins with an introduction to Amway, its product offerings, and a brief overview of the home care industry. A detailed SWOT analysis is provided, highlighting the company's strengths, such as its global presence and strong brand name, and its weaknesses, including falling sales and high employee turnover. The report then delves into Amway's segmentation, targeting, and positioning strategies, including behavioral, demographic, and psychographic segmentation, and its "more for more" positioning approach. The marketing mix is thoroughly examined, covering products, pricing, place, and promotion strategies. The report concludes by summarizing Amway's key strengths, weaknesses, and opportunities, along with recommendations for maintaining a competitive advantage. References to relevant academic sources are also included.

Amway Company Marketing and
Management
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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 .