Jake RaynardMia Yan

http://www.amway.com/en/BusOpp/connections-10230.aspx

Company BackgroundCompany BackgroundAmway: Amway: ““American WayAmerican Way””One of the worldOne of the world’’s largest direct selling s largest direct selling companiescompaniesFounded 1959 in Founded 1959 in AdaAda, Michigan, USA , Michigan, USA -- by by Jay Van Jay Van AndelAndel and Richard and Richard DeVosDeVosSales $6.4 billion in 2005Sales $6.4 billion in 2005Operations in more than 80 countriesOperations in more than 80 countriesOver 4 million distributors (Over 4 million distributors (IBOsIBOs) ) worldwideworldwide

Then: Amway’s first building in 1950 was a former gas station

Now: Amway’s world headquarters in Ada, Michigan is over 1.6km long, and houses more than 300 R&D scientists in world class laboratories.

FoundersFounders’’ Fundamentals:Fundamentals:

““Amway will always offer HOPE to the individual, will Amway will always offer HOPE to the individual, will support the fundamental FREEDOM of people to support the fundamental FREEDOM of people to

determine their own future, allowing them the time and determine their own future, allowing them the time and resources to protect and nurture their FAMILY, and resources to protect and nurture their FAMILY, and

receive REWARD in proportion to their efforts.receive REWARD in proportion to their efforts.””

Values Values • A major part of the Amway culture is commonly referred to as “boomer” or “1950’s” values, which places heavy importance on the protection of women’s roles and the nuclear family unit.

•A married male Amway distributor would always be recognized with his wife as equal

•The promotion of training materials, and attendance at rallies is also an important part.

Amway rallies can reach Amway rallies can reach several thousand in several thousand in

attendanceattendance

AlticorAlticor

formed in 2000 as a holding formed in 2000 as a holding company for four businesses: company for four businesses:

AmwayAmwayQuixtarQuixtarAccess Business GroupAccess Business GroupAmway Grand PlazaAmway Grand Plaza

Amway: Multilevel marketing business with products in personal care, home care, nutrition, and commercial needs

Quixtar: Internet division partner of Amway responsible for e-tailored direct selling

Access Business Group: The company manages supply chains for Amway and online retailer, Quixtar. In addition to its distribution services, Access Business Group manufactures vitamins and cosmetics for Alticor and provides contract manufacturing services for other clients. Access Business Group also handles distribution for unaffiliated companies.

Amway Grand Plaza: A 4-Star/4-Diamond luxury hotel in Grand Rapids, Michigan USA

Amway ProductsAmway Amway ProductsProducts

• World renowned salon-style hair care line

• Introduced in 1965• range of cleansing,

conditioner/treatment and styling products cares for every hair type and every style

• One of the world’s leading prestige brands of facial skin care products and color cosmetics

• Introduced in 1968• Over 250 products sold

in over 50 countries

R&D – Develops specific skin care products for different regions and cultures, and recognized as a leader in Asian skin research

• Cutting edge stainless steel cookware

• Originally introduced as Amway Queen Cookware in 1963

• Versatile and effective cleaning product systems

• L.O.C. (Liquid Organic Cleaner):

• Multi-purpose cleaner introduced 1959– First Amway product

• SA8: Laundry detergent introduced 1961

• Dish Drops: Liquid dish detergent introduced 1963

R&D - Researchers use washing machines from all over the world, to design laundry products tailored to specific water conditions

• World’s leading brand of vitamins, minerals, and dietary supplements

• Acquired 1972 • Nutrilite has made organic supplement

products since 1934• Nutrilite Health Institute (NHI): worldwide

collaboration of scientists dedicated to furthering research and education in nutrition

R&D - NUTRILITE is the only global vitamin and mineral brand to grow, harvest and process plants on their own certified organic farms

• High quality water treatment system• Originally introduced as Amway Water

Treatment System 1984• Renamed eSpring 2000

R&D – eSpring Labs are a global leader in UV treated drinking water products with links to 75 universities around the world

How to joinHow to joinAnyone can become an Amway Anyone can become an Amway ““Independent Business OwnerIndependent Business Owner”” (IBO)(IBO)

Formerly known as Formerly known as ““distributordistributor””

New recruit is sponsored by an New recruit is sponsored by an existing IBO, and must buy an existing IBO, and must buy an ““Amway Opportunity KitAmway Opportunity Kit””IBOIBO’’ss must pay a yearly fee to remain must pay a yearly fee to remain in Amway, but there is in Amway, but there is no no minimum minimum required amount of products to be required amount of products to be purchasedpurchased

Point SystemPoint System

Each product has an associated Points Each product has an associated Points Value (PV) which is consistent all over the Value (PV) which is consistent all over the world.world.Functions as a sort of currencyFunctions as a sort of currencyAmway has recently added a system Amway has recently added a system called FAA Points which makes it easier to called FAA Points which makes it easier to climb the various levelsclimb the various levels

80 FAA points would guarantee a 7 figure bonus (USD) per year!80 FAA points would guarantee a 7 figure bonus (USD) per year!

PIN LevelsPIN Levels

These reflect the level an IBO has reached These reflect the level an IBO has reached in the Amway business.in the Amway business.The higher the level, the higher the incomeThe higher the level, the higher the incomeNamed after precious metals Named after precious metals

Ruby, Platinum, Emerald, Diamond, and the highest being Ruby, Platinum, Emerald, Diamond, and the highest being Crown AmbassadorCrown AmbassadorThere are only a few people in the world at the level of Crown There are only a few people in the world at the level of Crown Ambassador. They are in constant demand to be recruited by, Ambassador. They are in constant demand to be recruited by, or for motivational speaking.or for motivational speaking.

Top Competitors

Established in 1886Established in 1886Its products include cosmetics, fragrances, Its products include cosmetics, fragrances, toiletries, jewelry, apparel, and home toiletries, jewelry, apparel, and home furnishings. furnishings. Avon has signed approximately 5.1 million Avon has signed approximately 5.1 million independent representatives. independent representatives.

Established 1963Established 1963US's #2 direct seller of beauty products. US's #2 direct seller of beauty products. more than 200 products in six categories: more than 200 products in six categories: body care, color cosmetics, facial skin body care, color cosmetics, facial skin care, fragrances, nail care, and sun care, fragrances, nail care, and sun protectionprotectionOver 1.3 million independent sales Over 1.3 million independent sales consultants in the US and about 30 other consultants in the US and about 30 other countries.countries.

The world's #1 maker of household products The world's #1 maker of household products courts market share and billioncourts market share and billion--dollar brands. dollar brands. P&G'sP&G's products fall into three categories: global products fall into three categories: global beauty care; global health, baby, and family care; beauty care; global health, baby, and family care; and global household care. It also makes pet and global household care. It also makes pet food and water filters and produces soap operas. food and water filters and produces soap operas. More than 20 of More than 20 of P&G'sP&G's brands are billionbrands are billion--dollar dollar sellers sellers

Competitive ComparisonCompetitive Comparison

010,000,000,00020,000,000,00030,000,000,00040,000,000,00050,000,000,00060,000,000,000

Revenue (USD)

Proctor &Gamble

Avon Mary Kay Alticor

Company

Revenue 2005

Competitive ComparisonCompetitive Comparison

Revenue Growth

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Proctor & Gamble

Avon

Mary Kay

Alticor

Percent Growth (per year)

Competitive ComparisonCompetitive Comparison

020,00040,00060,00080,000

100,000120,000

Number of Employees

Proctor&

Gamble

Avon MaryKay

Alticor

Employees 2005

Employees

Partnerships & Awards

Conclusion