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Case
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Reference no. 501-059-1
Subject category: Marketing
Authors: A Mukund
Published by: IBS Center for Management Research
Published in: 2001
Length: 10 pages
Data source: Published sources
Topics: Problems faced

Abstract

This case examines in detail the experiences of the leading global direct marketing major Amway in India. In the initial stages, Amway had to face a host of problems, which are explored in detail. The case then studies the remedial measures taken by the company to counter these problems. The case also provides a brief introduction to the concept of multilevel marketing, with a note on the Indian MLM industry. Besides making the student understand the difference between multilevel marketing and the traditional distribution set-up in the FMCG sector, the case aims to give students an idea as to how the system is being utilised by companies like Amway. The story of Amway is intended to drive home the point of a company being alert enough to modify its globally accepted practices to suit the local market''s needs. At the end of the case discussion, the students should have an understanding of the following issues: (1) the basic concept of multilevel marketing and an overall understanding of the Indian MLM experience; and (2) the hurdles faced by Amway soon after its launch and the company''s efforts to face them. The case is intended for MBA/PGDBM level students for their Marketing Electives, viz Sales & Distribution Management, Marketing Fundamentals, Strategic Marketing etc.
Location:
Size:
Large
Other setting(s):
1994-2000

About

Abstract

This case examines in detail the experiences of the leading global direct marketing major Amway in India. In the initial stages, Amway had to face a host of problems, which are explored in detail. The case then studies the remedial measures taken by the company to counter these problems. The case also provides a brief introduction to the concept of multilevel marketing, with a note on the Indian MLM industry. Besides making the student understand the difference between multilevel marketing and the traditional distribution set-up in the FMCG sector, the case aims to give students an idea as to how the system is being utilised by companies like Amway. The story of Amway is intended to drive home the point of a company being alert enough to modify its globally accepted practices to suit the local market''s needs. At the end of the case discussion, the students should have an understanding of the following issues: (1) the basic concept of multilevel marketing and an overall understanding of the Indian MLM experience; and (2) the hurdles faced by Amway soon after its launch and the company''s efforts to face them. The case is intended for MBA/PGDBM level students for their Marketing Electives, viz Sales & Distribution Management, Marketing Fundamentals, Strategic Marketing etc.

Settings

Location:
Size:
Large
Other setting(s):
1994-2000

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