Amway Corporation

Jake Raynard
Mia Yan
http://www.amway.com/en/BusOpp/connections-10230.aspx
Company Background
Amway: “American Way”
z One of the world’s largest direct selling
companies
z Founded 1959 in Ada, Michigan, USA - by
Jay Van Andel and Richard DeVos
z Sales $6.4 billion in 2005
z Operations in more than 80 countries
z Over 4 million distributors (IBOs)
worldwide
z
Then: Amway’s first
building in 1950 was a
former gas station
Now: Amway’s world headquarters in Ada, Michigan is
over 1.6km long, and houses more than 300 R&D
scientists in world class laboratories.
Founders’ Fundamentals:
“Amway will always offer HOPE to the individual, will
support the fundamental FREEDOM of people to
determine their own future, allowing them the time and
resources to protect and nurture their FAMILY, and
receive REWARD in proportion to their efforts.”
Values
• A major part of the Amway culture
is commonly referred to as
“boomer” or “1950’s” values, which
places heavy importance on the
protection of women’s roles and the
nuclear family unit.
•A married male Amway distributor
would always be recognized with
his wife as equal
•The promotion of training materials,
and attendance at rallies is also an
important part.
Amway rallies can reach
several thousand in
attendance
Alticor
z
formed in 2000 as a holding
company for four businesses:
z
z
z
z
Amway
Quixtar
Access Business Group
Amway Grand Plaza
Amway: Multilevel
marketing business with
products in personal care,
home care, nutrition, and
commercial needs
Quixtar: Internet division partner of Amway
responsible for e-tailored direct selling
Access Business Group: The company
manages supply chains for Amway and online retailer,
Quixtar. In addition to its distribution services,
Access Business Group manufactures vitamins and
cosmetics for Alticor and provides contract
manufacturing services for other clients. Access
Business Group also handles distribution for
unaffiliated companies.
Amway Grand Plaza: A 4-Star/4-Diamond luxury hotel in Grand
Rapids, Michigan USA
Amway Products
Amway
Products
• World renowned
salon-style hair care
line
• Introduced in 1965
• range of cleansing,
conditioner/treatment
and styling products
cares for every hair
type and every style
• One of the world’s leading prestige brands
of facial skin care products and color
cosmetics
• Introduced in 1968
• Over 250 products sold
in over 50 countries
R&D – Develops specific skin care
products for different regions and cultures,
and recognized as a leader in Asian skin
research
• Cutting edge stainless
steel cookware
• Originally introduced
as Amway Queen
Cookware in 1963
•
•
•
Versatile and effective
cleaning product systems
L.O.C. (Liquid Organic
Cleaner):
Multi-purpose cleaner
introduced 1959
– First Amway product
•
•
SA8: Laundry detergent
introduced 1961
Dish Drops: Liquid dish
detergent introduced 1963
R&D - Researchers use washing machines
from all over the world, to design laundry
products tailored to specific water
conditions
• World’s leading brand of vitamins, minerals,
and dietary supplements
• Acquired 1972
• Nutrilite has made organic supplement
products since 1934
• Nutrilite Health Institute (NHI): worldwide
collaboration of scientists dedicated to
furthering research and education in
nutrition
R&D - NUTRILITE is the only global
vitamin and mineral brand to grow,
harvest and process plants on their
own certified organic farms
• High quality water treatment system
• Originally introduced as Amway Water
Treatment System 1984
R&D – eSpring Labs are a
global leader in UV treated
• Renamed eSpring 2000
drinking water products with
links to 75 universities around
the world
How to join
z
Anyone can become an Amway
“Independent Business Owner” (IBO)
z
z
z
Formerly known as “distributor”
New recruit is sponsored by an
existing IBO, and must buy an
“Amway Opportunity Kit”
IBO’s must pay a yearly fee to remain
in Amway, but there is no minimum
required amount of products to be
purchased
Point System
Each product has an associated Points
Value (PV) which is consistent all over the
world.
z Functions as a sort of currency
z Amway has recently added a system
called FAA Points which makes it easier to
climb the various levels
z
z
80 FAA points would guarantee a 7 figure bonus (USD) per year!
PIN Levels
These reflect the level an IBO has reached
in the Amway business.
z The higher the level, the higher the income
z Named after precious metals
z
z
z
Ruby, Platinum, Emerald, Diamond, and the highest being
Crown Ambassador
There are only a few people in the world at the level of Crown
Ambassador. They are in constant demand to be recruited by,
or for motivational speaking.
Top Competitors
z
z
z
Established in 1886
Its products include cosmetics, fragrances,
toiletries, jewelry, apparel, and home
furnishings.
Avon has signed approximately 5.1 million
independent representatives.
Established 1963
z US's #2 direct seller of beauty products.
z more than 200 products in six categories:
body care, color cosmetics, facial skin
care, fragrances, nail care, and sun
protection
z Over 1.3 million independent sales
consultants in the US and about 30 other
countries.
z
z
The world's #1 maker of household products
courts market share and billion-dollar brands.
P&G's products fall into three categories: global
beauty care; global health, baby, and family care;
and global household care. It also makes pet
food and water filters and produces soap operas.
More than 20 of P&G's brands are billion-dollar
sellers
Competitive Comparison
Revenue 2005
60,000,000,000
50,000,000,000
40,000,000,000
Revenue
30,000,000,000
(USD)
20,000,000,000
10,000,000,000
0
Proctor &
Gamble
Avon
Mary Kay
Company
Alticor
Competitive Comparison
Revenue Growth
Alticor
Mary Kay
Avon
Proctor & Gamble
0.00%
2.00%
4.00%
6.00%
8.00% 10.00% 12.00%
Percent Growth (per year)
Competitive Comparison
Employees 2005
120,000
100,000
80,000
Number of
60,000
Employees
40,000
20,000
Employees
0
Proctor
&
Gamble
Avon
Mary
Kay
Alticor
Partnerships & Awards
Conclusion