Buyer, buy me another
Nithya Krishnaswamy
CHENNAI, January 4: A million-strong customer-base that will double up as a distribution network? A win-win web with spin-offs both for the company as well as the consumer/retailer? No advertising? A marketing dream come true? That is Amway Corporation for you.Trust an American multinational to push through an idea which is different in that it may not only draw customers but also turn them into "distributors" for the company -- with big rewards in store. For one thing, it is all about how to market consumer products differently and that too without spending any money on advertising. For another, it uses a personalised marketing service to beat the usual wholesaler-retailer rigmarole. The $7-billion Amway Corporation of US is setting up shop in India and has selected Chennai to showcase the way how the whole concept of novelty marketing can take off. A marketing network is to be put in place by March-April 1998 to push a wide range of household consumer goods that Amway Corporation deals in. The
Amway productline covers a wide range including cosmetics, skincare, health and fitness products, homecare, laundry products (including detergents, bleaches and softeners), cookware, water filter systems, footwear and much more. It even has multimedia CD-Roms and books for education and games. It also offers gift articles. The US giant has hit upon a novel way of introducing the consumer to its range of household goods. On behalf of Amway, unique presentations are being made selectively to interested consumers and other parties to establish a marketing web dubbed the "Network 21". Amway is working to rope in a lot of families into this network. People who will be able to sell the company's products and services to their friends and associates on the lines of what they claim has been done quite successfully in the US and United Kingdom. The system known as Network 21 operates on the principle of exponential duplication with its customers virtually acting as distributors for its products. The draw is
attractive incentives and discounts. Effort is on to replicate the system (Network 21) which will establish a customer base for Amway products in India and in the process also help set up a distribution chain. To start with, Amway is looking to develop a customer base of one million people in India. The operations will commence from Chennai city but the plan is to expand the operations to other metros and big cities as well in time. Amway promises to throw in some goodies for the customer base that it wants to create in India. For example all those who buy the household products from Amway Corporation will get a sizable discount on the price of products. This could be as much as 30 per cent on the price tag. Amway is sure a lot of people will be rushing in to grab the discounts. The belief is that they will not only get a fair deal but hey will also be assured of getting quality goods of international standards. What is the benefit to householders who will be pushing the Amway sale concept among their
friends and associates? Those who become members of Network 21 system are promised that as much as 65 per cent of the advertising and marketing costs on a product which Amway Corporation saves will be distributed among members of Network 21 system. It would basically be a word of mouth campaigning. Amway's representatives who are flogging the Network 21 system and concept in India assert that this is a global business opportunity to earn a sizable income without going out into the field. Every sale is measured in point values and as the point values increase the share in profit on sale also increases. The maximum percentage that one can reach is 21 per cent. Over and above this there is also the assurance of the Network 21 system member getting a bonus as well. In a presentation made recently in Chennai, Amway representatives claimed that earnings per month could be upwards of Rs 750 per month initially and held out the hope that it would be possible to earn Rs 70,000 per month within four months.
They also said that in UK people in the network had earned upto 800 pounds per month and that they saw in India a potential for people to earn upto Rs 70,000 a month. Starting off in 1959 with just one product, Amway today its manufactures and markets more than 500 products and operates in 80 countries around the world. It has joint venture operations with multinationals for hundreds of products.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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