Using Communication to Develop Business Opportunities

Amway
Amway is an abbreviation for "American

Way" and was coined in 1959 by Company founders, Jay Van Andel and Richard Devos.
Key people of Amway: Steve Van Andel

(Chairman), Doug Devos (President)

Direct selling company and multi level

marketing and headquarters in Ada, Michigan, United States.

About Amway
Amway was set up in 1959. Today, Amway is one of the worlds largest

direct sales companies, with over 2.5 million independent distributors in more than 70 countries world wide. The company is presently the world's largest door-to-door sales cooperation, and one of the most extensive service organization. Amway has presently about 10000 employees in sixty-three countries all over the world

Amway India
Amway India, a wholly owned subsidiary of

Amway Corporations, was established in August 1995 after approval by India's Foreign Investment Promotion Board (FIPB) The Company is headquartered at the National Capital Region of India- New Delhi. Amway India provides free and unlimited training to all its distributors to help them grow their business www.amwayindia.com

The Importance of Communication

Clear Communication is essential when

managing activities.
Amway communicates with its 35,000

distributors in order to help them prepare for their increasingly challenging role.
Communication is the passing on of ideas and

information.

Amways communication
Amway's basic concept is Network marketing.
This type of marketing involves more than six

thousand different products and services and is thus very extensive, and it requires a well functioning distribution system.

Range of Communication Methods

AMWAYS COMMUNICATION CHANNELS
EVENTS

OTHER
TRAINING LINES OF SPONSOR SHIP PUBLICA TIONS

Corporate Events

1) 2) 3) 4)

It includes specially arranged functions, such as fairs, conferences and seminars It gives an opportunity for distributors to get to know each other. Events includes: Pace Setter Direct Distributor Leadership Seminar Launch into 98

Training
It builds the skills and knowledge of

distributors and therefore improves competence levels. Product knowledge is an important aspect of training and preparation. Training may involve either Corporate or Group Training on specific product brands. Train a Trainer session

Lines of Sponsorship
Amway is essentially a people based business-

without people, the business cannot expand. The business of each distributor grows via new customers and through the sponsorship of new distributors. Distributors groups meet to discuss company procedures and their goals.

Publications

Amway uses a range of written communications. These includes:

1) Anagrams
2) Diamond & Leaders News 3) News gram and WAD (Warehouse

Authorized Distributor) Bulletin 4) Special Literature

Other Communication Channels

For Amway, this means that different communication media are required for a range of purposes: Direct distributors are targeted via a monthly mail out Packing slips have short messages printed on them A telephone team at Amway Information Centre handles ongoing enquiries

Cont.

Amway had recently launched their first ever brand advertising campaign. It had been used to raise brand awareness. The internet serves as an important information source and offers the Amway Corporation a platform to define Amway

Artistry Products
Amway created ARTISTRY as a complete line

of skin care and cosmetics, to make clients look and feel the best that they possibly can.
Amway has its own manufacturing plant to

retain control over quality and follow hygiene guidelines.

Distributors are trained to become ARTISTRY

Consultants.

ARTISTRY Training Course Content

1) 2) 3) 4) 5)

To become ARTISTRY Consultants, distributors attend a training course which covers: Learning about the skin Skin care products Cosmetic application-Basic technique Cosmetic products- Applications Merchandising Session Amway Performance Learning System (APLS)

Business Opportunities
The manner in which a salesperson deals with

an ethical issue can have far reaching consequences not just on that individuals but also upon the organization as a whole. For example, distributors must not mislead customers on the claims of a product in order to achieve a sale.

Amways Products

CSR - Important aspect of business

Amway's aspirations fit closely with those of

UNICEF. They are both organizations with a global reach that care about people - particularly the lives of and opportunities for children. Amway's IBOs want to be part of a socially responsible organization because they know that this is the right way for businesses to behave

CSR- One by One Campaign

AMWAY ONE BY ONE CAMPAIGN FOR

CHILDREN The Amway One by One: Campaign for Children rallies the resources of the entire Amway family to make a difference in the lives of children around the world. By creating local partnerships, we can address specific issues facing children and improve the way they live, learn, achieve, and play.

Direct Selling
In direct selling, the sale is the culmination of

many activities which involve matching customer requirements to the goods or services offered.
The main benefit of this form of selling is that

it allows distributors to focus on individual customers and their needs.

The Amway Way

Direct selling is about person-to-person

marketing where the salesperson must have credibility and trust.

The processes of communication at Amway are

designed to help distributors become well trained and professional in all their dealings.

The Amways Way

The critical relationship between Amway and

seller or distributor is at the heart of Amways successful approach to direct selling.

Product Knowledge, in particular, is vital- so

that the seller can present a products benefits and functions comprehensively and answer any question the consumer may have.

BIBLIOGRAPHY
1)The Amway Business Review" Amway corporation 1

September 1992: (pamphlet) 2)Amway Corporation: Annual Report - Amway corporation, (93-01-10) 3)Case Study: Using Communication to develop Business Opportunities at Amway 4) "Amway Corporation" The Wall Street Journal. 2 July 1993: (21)