Marketing Strategy of Amway – Amway Marketing Strategy: Since its inception in 1959, when Jay Van Andel and Rich DeVos founded it as a family enterprise, the company has served more than 71 million households. It is currently the world’s #1 direct-selling firm.
Amway works continuously to reduce non-renewable resources, decrease greenhouse gas emissions, and use sustainable building and agricultural techniques. The company also has access to renewable sources of power, with approximately 6500 acres of organic certified land.
Amway At A Glance – Marketing Strategy of Amway
Company: Amway Corporation
CEO: Milind Pant
Founder: Richard M. DeVos | Jay Van Andel
Year founded: 9 November 1959, Ada Township, Michigan, United States
Headquarters: Ada Township, Michigan, United States
Annual Revenue: US$8.4 billion
Profit | Net income: US$1.1 billion
Number of employees : 16,000
Products & Services: Amway Home | Glister | G&H | Nutrilite | Artistry | AmwayQueen | eSpring | Atmosphere | XS Energy
Competitors: NakedPoppy | Walker & Company Brands | Dollar Shave Club | Purplle.com | Avon Products | Oriflame
Amway Fun Facts: In Europe, Amway sells more of their eSpring Water Purifiers than any other competitors. These systems are point-of-use water supply systems.
Marketing Strategy of Amway
Amway’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Amway? Let us discuss.
Segmentation, Targeting, Positioning – Amway Marketing Strategy
Amway employs a mixture of demographic and geographical segmentation variables to understand customer demographic as well as geo factors that can assist in identifying potential customers. These variables include age, gender, occupation, region, and income class.
Amway employs an undifferentiated strategy because most of its products can be sold via cross-selling and upselling to existing customers.
Amway is known for its innovative business model and high-quality products. To position itself as a high-quality brand, it uses customer benefit and a value-based positioning strategy.
Amway Mission Statement
“To help people live better lives by helping them realize their potential”
Amway Vision Statement
“To help people live better lives”
“Pioneers of future”.
Competitive Advantage – Marketing Strategy of Amway
Business Model: Amway uses the multilevel and direct selling strategy, and business model. This allows its customers to be brand ambassadors of the company and earn money while referring new customers to the company. Since its inception, Amway has paid over $ 56 billion to customers as bonuses and incentives for referring.
Manufacturing and R &D facilities: Amway has 18 manufacturing & processing plants, and 70+ R&D quality control labs worldwide. This includes the major economies in the world, including America, the Europe market, and the Asia Pacific.
BCG Matrix – Amway Marketing Strategy
It is found in several business segments, including Nutrition, Beauty Care, and Homecare Products.
Nutrilite is the number one brand in vitamins and dietary supplements worldwide. Its nutrition business, led by the Nutrilite brand, has global sales of more than 11.8 million annually. This segment accounts for approximately 46 percent of total Amway sales.
Amway’s 28% share of sales comes from personal and beauty care businesses. This is due to Artistry, its best-selling beauty brand.
These business segments are both Stars in the BCG matrix, while home care generates 23 % sales for Amway Group is question Mark in the BCG matrix.
Distribution Strategy – Marketing Strategy of Amway
The company’s 20000+ employees have been supporting its millions of customers, also known as Amway Business Owners (ABO), through seminars and entrepreneurship programs.
Through 720+ Amway experience centers, distribution centers, and shops, it addresses the requirements of the customer, region, or distributor. It also distributes its products through e-commerce websites, resellers, and wholesalers.
Brand equity – Amway Marketing Strategy
Amway was ranked 35 on the Forbes magazine’s list of America’s Largest Private Companies. According to the market capitalization value method, Amway’s brand is valued at $ 8.8 Billion as of December 2016. This generates revenue of $ 8.8 Billion.
Competitive Analysis – Amway Marketing Strategy
It is the number one direct selling company in the world, with a presence in over 110 countries and territories worldwide. Their operation and commitment to being a customer-centric organization are unmatched.
Amway’s core competency is its commitment to manufacturing quality and innovative products. It also has empowered its business owners to spread the benefits of Amway through face-to-face interaction with customers.
Direct selling companies like Modicare and Avon are also competitors. and other consumer businesses such as HUL, Procter & Gamble, Palmolive, etc.
Market Analysis – Marketing Strategy of Amway
Amway operates in a traditional market with 3-tier and 4-tier supply chain entities involved in the consumer markets. Amway uses a 2-tier model of business: B2C (Business To a Customer) and C2C(Customer to Customer).
Amway is facing bottlenecks in its industry, such as the possibility of brand image degrading due to a customer or government regulations imposing restrictions on a business model, bargaining strength of customers, rising e-commerce websites, and changing a life.
Customer Analysis – Amway Marketing Strategy
Amway’s retail customers are between 20-and 60 years old. The company acquires most of its customers through positive word-of-mouth referrals. Amway Business owners bring in customers to help them get incentives. Customers are crucial in the overall delivery system.
Amway’s B2B ( Business to Business) customers are Resellers, Distributors, and Pops & Mums Stores.
This is the Marketing Strategy of Amway. Please let us know if you have additional suggestions to add.
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