Introduction

Amway-Global Leader in Direct Selling

Amway is a global leader in direct selling, with over three million Independent

Business Owners (IBOs) in over 80 countries and territories around the world. No

other direct selling company can compare with Amway’s longevity, stability, and

global reach. For more than 55 years, Amway Corporation has enabled people to

have a business of their own. Originally known for direct selling of our household

cleaning products, such as SA8 Laundry Detergent and L.O.C. Liquid Organic

Concentrate, Amway business opportunity is now supported by an excellent

portfolio of hundreds of high-quality products and brands that can only be

purchased through Amway IBOs.

Why People Choose the Amway Business Opportunity

People join this business for a variety of reasons. Some become IBOs simply to be

able to purchase products for their own personal use at a reduced cost. Others

Join in order to direct sell the products to others, earning a profit on each sale and

additional financial benefits based on their sales volume. Business builders not

only sell products; they also sponsor others to join the business. They are

compensated for their own sales and well as the sales of those they sponsor,
receiving incentive bonuses that increase as their own sales force increases. All

IBOs have the identical opportunity to grow a successful business. Each business

owner is compensated in direct proportion to his or her efforts.

Statement of the problem

In this competitive world lot of MLM companies are there in the market and they

have variety of product lineup as well. Some of them are successful and few of

them not doing well. Here we have taken an attempt to study about a company

AMWAY, which is really success full for more than 5 decades on selling Health

Care, Personal Care, Home Care, Color cosmetics directly to the customers.

Realising the difficulties in the process of marketing & selling every manufacturer

has spent lot of money on advertising, Showrooms, retail outlets and providing

samples to attract the target customers where as Amway doesn’t have such a

facilities, but still they remain at the top, though their products are priced very

high. But the actual success is taking place at the ground level where the IBO’s

meeting the customers; IBO’s are really having tough time on convincing the

customers without samples. So the researcher has made an attempt to study the

entire sales & marketing process, satisfaction of their IBO’s and customers.
Scope of the Study

The success and failure of a product or a company is purely based on customer

satisfaction. There is a saying in business circle “A satisfied customer will bring

100 new customers for your product whereas an angry customer will take 300

customers away from your product”. So customer satisfaction is a key factor in

any business, particularly in MLM Business. In this fast growing world each and

every company is keeping HR Persons to ensure that their employees are always

there in comfort zone whereas in Amway’s case their IBO’s are spread around the

globe. So it’s really difficult to satisfy the IBO”S. So the study has been undertaken

to know the marketing strategy, Products, customer and IBO Satisfaction of

Amway & Amway Products. It’s an attempt to prove the satisfaction status of the

IBO’s as well as the customers.

Objectives of the Study

This study was undertaken with the following objectives

To study about Amway’s Successful business Strategy

To study about the customer satisfaction

To study about Amway Products

To study About Amway IBO satisfaction

To Identify the Problems faced by the customers and IBO’s during the sales

process

To give suggestions for improving the sales volume of IBO’s with 99.9% customer

satisfaction.

Period of the Study

As indicated in the methodology, the processing and analysis of data was carried

out for six months from Nov 2010 to April 2011.

Methodology

For collection of primary data, a well structured interview schedule was prepared

based on the objectives of the study. The data required for the study were

gathered using questionnaires. Since it is a two way transaction the researcher

has randomly selected Amway IBO’s and Customer. Based on the questionnaires

simple percentages were worked out to study the customer as well as IBO’s

satisfaction.

Sampling Design

Simple random technique was used to select the participants from Amway IBO’s

and Customers living in Vallioor. Well structured interview schedule was fixed

with all the participants. The researcher has used printed questionnaire to record

the response from respondents.

Data Processing

After completing the data collection, a thorough check was made. Then the

researcher has used computer to form tables. These tables have further analysis

of data and interpretation.

Tools Used

Quantitative techniques such as percentage analysis have been used in this study.

Five point rating scale is used to collect qualitative data for further analysis. Chi-

square test has also been used in this study to test the hypothesis developed for

the purpose of measuring the satisfaction level of the IBO’s and Customers. Also

other variables like age, income and educational qualification of the customers

are taken into consideration.

Plan of analysis

The data are analysed by using appropriate statistical tools like percentage

analysis and Chi-square test.

The percentage analysis is used wherever required. The Chi-Square test is used to

identify the factors influencing the customers to buy Amway Products, IBO’s and

customer satisfaction in Vallioor.

Hypothesis

Based on the objectives of the study, the following null hypotheses were framed.

There is no significant relationship between the level of customer satisfaction and

the independent variables namely

a) Age of the Customers and IBO’s

b) Education Qualification of the customers and IBO’s

c) Monthly Income of the IBO’s and Customers

Geographical Coverage

This study covers the Amway IBO’s and customers in Vallioor. Vallioor is located in

Tirunelveli district. Vallioor is situated between Nagercoil and Tirunelveli. Sri

Subramaniya Swamy Temple and Fathima Church are important scared places in

Vallioor.

Scheme of Report

The report has been divided into four chapters.

The first chapter presents the introduction and design of the study. It consists of

introduction, statement of the problem, scope of the study, objectives of the

study, data processing, plan of analysis, hypotheses, geographical coverage and

limitations of the study.

The second chapter deals with the profile of Amway and products and different

approaches in selling products.

The third chapter deals with analysis and interpretation of data. Data regarding

the satisfaction level of Amway IBO’s and customers in Vallioor was collected and

presented in the form of tables. Tables explain the socio economic background of

respondents and tell opinion about the Amway product. In the third chapter the

factors influencing the buying behavior are also taken in to consideration.

The last chapter deals with the findings of the study. It deals with suggestions for

improving the sales of Amway product in Vallioor and improving the buying

behavior of consumers.