Kajol Banking and insurance

8/13/2019 Kajol Banking and insurance

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Vishal Mhatre 69

Hanosh Panthak 74

Abhishek Patil 79

Imran Sayyed 88 Zain Merchant

Aditya Vora 106

Kajol Gupta 110


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Introduction

A business model in which adistributor network is needed to buildthe business. Usually such businessesare also multilevel marketing in

nature in that payouts occur at morethan one level.


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Advantages

Low Start Up Costs

International Business

Tax

Freedom Support

Personal development

Training


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Disadvantages

The core of multi-level marketingis creating a long down chain.Close to 90% of the people fail to go beyond the first level and

wound up their business in first three months.

MLM requires great inter personal and communication skills andnot everyone is blessed with one which leads to business failure.

This form of marketing has a saturation point beyond which the rateof business growth is marginal. It is impossible for everyone to get alions share of profit.

Niche products and services are usually promoted through multi-

level marketing which fails to attract buyers often. In multi-level marketing you need to have a wide social network to

create a down chain. Most people start with huge enthusiasm butthe list of rejection


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Amway


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Jay van andel Richard de vos

Jay Van Andel Born June 3,1924 (age 89)Grand Rapids, MI, USA DiedDecember 7, 2004 (aged 80)

Nationality United StatesKnown for Amway founderReligion Christian ReformedChurch Spouse(s) Betty Van

Andel

Richard DeVos, Sr. BornMarch 4, 1926 (age 87)Grand Rapids, MI, USANationality United StatesEthnicity Dutch. Known for

Amway founder, owner ofNBA's Orlando Magic

Co founder


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Introduction

Amway(short for American Way) is an Americanmultinational direct-selling company using multi-levelmarketing techniques, that sells a variety of products,primarily in the health, beauty, and home caremarkets.Amway was founded in 1959 by Jay Van Andel and

Richard DeVos. Based in Ada, Michigan, the company andfamily of companies under Alticor reported sales of USD$11.3billion for the year ended December 31, 2012 -the seventhconsecutive year of growth for the company.Its product linesinclude home care products, personal care products, jewelry,electronics, Nutrilite dietary supplements, water purifiers, air

purifiers, insurance and cosmetics. Amway conducts businessthrough a number of affiliated companies in more than ahundred countries and territories around the world.Amway

was ranked No.114


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History

Jay Van Andel and Richard DeVos, friends since schooldays, had been business partners in various endeavorsincluding a hamburger stand, air charter service, and asailing business. In 1949 they were introduced by Neil

Maaskant (Van Andel's second cousin) to theNutriliteProductsCorporation After seeing promotionalfilmstrips and listening to talks by companyrepresentatives and successful distributors, they decidedto pursue the Nutrilite business opportunity with

enthusiasm. They sold their second box of supplementson their return trip to Michigan, and rapidly proceededto develop their new business further.


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Network marketing is also called as multilevelmarketing pioneered by Amway.

The network marketing sales system consist ofrecruiting independent business people who act as

distributors. Each distributor picks up the product worth a

certain sum and sell them.

Multi-marketing is a type of direct selling.

The original distributor earns commission first ofhis/her own effort and from the sales affected bythe sub-agents


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The Amway Independent Business Owner

Compensation Plan enables you to earn income

based on merchandising an array of high-quality

products and services. (Selling and using the products

is one segment of building a balanced and successful

business, which also includes sponsoring others into

the business.)

Independent business Owner


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Market Penetration

Going for market penetration has involved Amway inmaking the most of current products andcompetences by 'stretching' them to improve

Amway's competitive position within existingmarkets.


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Product Development

Product development is a particularlyappropriate strategy where an organisation isstrong in research and development. Product

development is highly important for productsthat have comparatively short life-cycles.


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Market development

Market development involves taking existingproducts into completely new markets. One methodused by Amway involves expanding the ways in

which individuals can be involved with the Amwaybusiness.


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Amway has developed a structure known as the IMCmodel. This increases the number of ways through

which people can become involved in the Amwaybusiness.

Each of the letters IMC stands for a different type ofinvolvement.

I - Independent Business Owners (IBOs)

M - Members C - Clients (customers) of the IBOs.


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Diversification

Ansoff pointed out that a diversification strategystands apart from the other three strategies. The firstthree strategies are usually pursued with the sametechnical, financial, and merchandising resourcesused for the original product line.


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Conclusion

In today's highly competitive environment, anorganisation has to develop a business strategy thatprovides a strategic fit between its resources and thechanging business.


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Analysis

It is a multi level marketing

It relies primarily from person-to-person rather thanadvertisement for sale of product

Its present in indian market since 11 years Higher class consumer is the company core


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Kajol Banking and insurance

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