Abstract

In the late 1990s, the global direct selling giant Amway had to contend with increasing doubts regarding its survival in India. Media reports were quick to point out Amway’s failure to sell the basic concept of direct selling to the Indians. The caselet explores the problems faced by Amway. It discusses the corrective steps taken by Amway - change in product strategy, strengthening distribution network and Indianization, to revive its sales.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Direct marketing industry in India
• Distribution strategies of direct marketers
• and Importance of understanding local markets for global companies.

Keywords

Multi-level marketing (MLM), Self-Consumption, Distributors, Attrition Rate, Customer Service, Direct Marketing Networks, Usage Cost, Product Focus, Strategic Business Units, Centralized Marketing, Central Warehouse, Cost and Freight Agents (C&FAs), Unemployed Youth, Localized Strategies, Value-For-Money, 'Indianization', 'Operation Gaadi', 'Operation Ghar', Electronic Kiosks