supplements. They sold their first box the next day for $19.

50, but lost interest for the next two

weeks. Shortly thereafter, at the urging of Maaskant, who had become their sponsor , they
traveled to Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel, with
over a hundred people in attendance. After seeing promotional videos and listening to talks by
company representatives and successful distributors, they decided to pursue the Nutrilite
business opportunity with enthusiasm. They sold their second box of supplements on their return
trip to Michigan, and rapidly proceeded to develop their new business further.
In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated from their respective
first names) for importing wooden goods from South American countries; after their trip to the
Nutrilite seminar, they dropped this business and Ja-Ri became their Nutrilite distributorship. In
addition to profits on each product sold, Nutrilite also offered commission on the sales of
products by new distributors introduced to the company by existing distributors²a system today
known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built
an organization of over 5,000 distributors. However, following concerns about the stability of
Nutrilite, in April 1959 they and some of their top distributors formed The American Way
Association to represent the distributors and look for additional products to market. Their first
product was called Frisk , a concentrated organic cleaner developed by a scientist in Ohio.
DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed
the name to LOC (Liquid Organic Concentrate). They subsequently formed Amway Sales
Corporation to procure and inventory products and to handle the sales and marketing plan, and
Amway Services Corporation to handle insurance and other benefits for distributors (Amway
being an abbreviation of American Way). In 1960 they purchased a 50% share in Atco
Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to

Amway Manufacturing Corporation . In 1964 the Amway Sales Corporation, Amway Services

Corporation, and Amway Manufacturing Corporation merged to form a single entity, Amway

Corporation Amway bought control of Nutrilite in 1972 and full ownership in 1994.

The Objective Have Been Classified By Me In This Project Are:

To study the consumer awareness and preference towards Amway products.
To analyse the level of satisfaction of consumer towards Amway products.

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COMPANY PROFILE

TYPE PRIVATE
INDUSTRY DIRECT SELLING
FOUNDED 1959
FOUNDERS Mr. RICHARD DE VOS &
Mr. JAY VAN ANDEL
HEADQUARTERS ADA, MICHIGAN, US.
AREA SERVED WORLD WIDE
REVENUE(2017) 8.6 BILLON

Amway is one of the world’s largest direct selling companies. Founded in 1959 by Jay Van
Andel and Richard De Vos. Amway operates in 100 Countries and territories on six continents.
Amway offers the opportunity for people to have a business of their own based on retailing
beauty, nutritional, wellness and household products and sharing the opportunity with others who
do the same. We manufacture and distribute 450+ consumer products that support health and
well-being. More than 17,000 employees worldwide support millions of Amway Business
Owners who sell Amway products. In addition, a company committed to providing employees
with challenging career opportunities, a comprehensive total rewards package, profit sharing,
tuition assistance, product discounts and an award-winning wellness program. Amway
distributors in selected markets sell additional brand name goods through local merchandise
catalogues, plus a variety of services and educational products. All products are packed by a
customer satisfaction guarantee.

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Governance and Management:
Steve Van Andel is Chairman and Doug De vos is president.The Board of Directors is controlled
by the van Andel and De Vos families. Mark Stevens is Chief Financial Officer of Amway.

Facilities:
Amway operates out of Alticor’s world headquarters located at 7575 Fulton Street East, Ada,
Michigan 49355, USA. Its North American affiliate headquarters are located at 5101 Spaulding
Plaza, Ada, Michigan 49355,USA.

Community Services:
Amway has a long history of sharing with the communities where it does business, both through
volunteer efforts and charitable contributions. In 2003, Amway launched the one-be-one
campaign for children to focus its philanthropic efforts on children.
Today, in every country and every community where Amway operates, thousands of employee
and distributors volunteers support hundreds of charitable organizations to offer children the
resources they need to live, achieve, learn, and play.

In this chapter the brief idea of the Amway India Enterprises Pvt. Ltd. is given. How multilevel
companies work and perform better with the help of uplinks and company support. Amway is a
pioneer in direct marketing and working on the faith and dedication of the distributors by
providing them free atmosphere and healthy incentive plans.

The company is engaged in selling product to the consumers directly with help of distributors
which is known as Independent Business Owners (IBO). This method depends on multilevel
marketing or network marketing model.

This Independent Business Owners develop a network of people by recruiting others under them
and expand a huge network. The IBO earns commission on the products sold. Further, the ABO
also gets commission for the sales done by other IBOs recruited by him. This business model

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categorized the distributors on the basis of sales performance of their entire team and therefore
everybody’s commission will be differ accordingly.

Amway doing the business in different way with help of think global and act local from last fifty
six years. The company also launched the attitude range of skincare products with extra benefits
in moisturizers, face wash and sun screen lotions.

The company has signed brand ambassador of bollywood actress Diya Mirza for their products at
first time.

The company has planned to hire some research scientist to set up research and development in
the country for better production and to maintain quality of the product. In India Company’s
market share is remarkable in direct selling industry. Every year the growth of direct selling
industry in India is around 20 percent which is good sign for the country’s development.
The report of Ernst and Young says that, the direct selling industry will estimated to touch Rs.7,
100 crore by the end of 2016-17. This will create the employment in the country like India.

History
The founder of the company worked together in different small enterprises since their childhood
and so they decided to share their experiences, knowledge and expertise in the business. They
started in 1949 and introduced Nutrilite as a direct selling method. After that in 1959 they
founded Amway with main idea of the earlier company’s sales plan. In this business and method
there is low risk and open to everybody, no area limit and no income limit for the hard workers at
initially very low investment to start the business. The only condition is that they have to spend
time and effort in this business. In this period company started developing and selling their own
products with good quality. The company’s first product is liquid organic cleaner which got the
tremendous response from the market.

In 1960 they decided to expand their market in different part of world with more products
including detergents, personal care products with women’s likely products to groom themselves.
By the end of these decades the company in United States and Canada increases the network of
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