Amway Projject Final
Amway Projject Final
Amway Projject Final
on
Customer Satisfaction level towards
Amway products
Submitted By:
RACHIT BHARDWAJ
05815603916
Batch: 2016-18
1
TABLE OF CONTENTS
3 Company Profile
4 Literature review
5 Research Methodology
6 Data Analysis
7 Findings
8 Conclusion
9 Recommendations
10 References/ Bibliography
11 Annexure
Questionnaire
2
STUDENT DECLARATION
This to certify that I have completed the project titled “Customer Satisfaction level
towards Amway products” under the guidance of “Mr. Jogesh Chandra ” in the partial
fulfillment of the requirement for the award of the degree of “Master in Business
Administration” from ‘Northern India Engineering college, New Delhi.” This is an
original work and I have not submitted it earlier elsewhere.
Enrollment No-05815603916
3
CERTIFICATE FROM GUIDE
This is to certify that the project titled “Customer Satisfaction level towards Amway
products” is an academic work done by “Mr. Rachit bhardwaj” submitted in the partial
fulfillment of therequirement for the award of the degree of “Masters in Business
Administration” from “Northern India Engineering college, New Delhi.” under my
guidance and direction. To the best of my knowledge and belief the data and
information presented by him in the project has not been submitted earlier
elsewhere.
4
ACKNOWLEDGEMENT
I wish to express my gratitude to Amway India enterprise pvt ltd for giving me an
opportunity to be a part of their esteemed organization and enhance my knowledge
by granting permission do summer training project under their guidance.
I offer my sincere thanks and humble regards to Northern India Engineering College,
GGSIP University, New Delhi for imparting us very valuable professional training in
MBA.
I pay my gratitude and sincere regards to Mr. Jogesh Chandra, my project Guide for
giving me the cream of his knowledge. I am thankful to him/her as he has been a
constant source of advice, motivation and inspiration. I am also thankful to him for
giving his suggestions and encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer Lab staff
and library staff for providing me opportunity to utilize their resources for the
completion of the project.
5
OBJECTIVE
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CHAPTER 1
INTRODUCTION
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MEANING OF CUSTOMER SATISFACTION
One way on how to handle a customer that is interested about a certain product is to
get the buying signal or the attention to be able to discuss the details clearly.
We all know that in any field of sales businesses you cannot please any customer
because they know that they are always right as one of the policy, but come to think
of it that these people are just so fool on insisting things that is not right, they will just
cause confusion to other people who will see their reactions.
The expectation of the customers will always be considered once you promise them
about useful things. In every corner and fissure of excellent companies they are what
they call these intruders customers, these people are just trying to take advantage on
how they can create an intervention between the business operations.
On how you will produce a quality product to sell will reflect on how the customer will
react once they purchase it and already use it. The improvement that an outsourcing
company can give businesses that will show interest with their program will increase
the overall performance at any given time.
The main reason on why some companies has sustain their stability because they
were able to limit their budget costs and they continue to improve their product. Why
should a company trust an outsourcer? Because they will definitely ensure the
company of real customer care and money back guaranteed with excellent
performance.
The impact of the product must also be considered. While higher quality and lower
cost can be achieved through outsourcing, the decision of which provider to choose
must be based on overall value, and corporate objectives-not price alone. Most of the
company’s need this outsources because they are having some difficulties on how to
handle customer correctly and how to save money.
However, these same utilities are demanding that the outsource solution must also
provide the functionality and flexibility to address the specific customer care needs of
each utility. Can existing customized programs be use as alternate solution by the
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outsource provider? Definitely yes, provided with details explaining what could be the
effect on the flow of transactions and must be understood by both parties. If this
trend continues we will replace expensive and customized in house systems, with
expensive and customized outsourced systems.In the end, the cost will always be
passed on to the utility. One of the main goals of outsourced industry is to help the
company to become successful, when the economic scale will start to increase during
the period of what the outsourcing set, it will definitely reflect on how well it was
handled and the response of the customers is remarkable.
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MEASURING CUSTOMER SATISFACTION
The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's
products. Because satisfaction is basically a psychological state, care should be taken
in the effort of quantitative measurement, although a large quantity of research in this
area has recently been developed. Work done by Berry, Brodeur between 1990 and
1998 defined ten 'Quality Values' which influence satisfaction behaviour, further
expanded by Berry in 2002 and known as the ten domains of satisfaction.
These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease
of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviours,
Commitment to the Customer.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement
and in term of their perception and expectation of the performance of the
organization being measured.
10
BENEFITS OF A CUSTOMER SATISFACTION
3. Analysis of customer feedback surveys and the information collected becomes the
basis for customer intelligence. Used strategically, such intelligence can be used to
drive innovation efforts and initiatives at the company.
4. A customer satisfaction survey also shows critical insights about different customer
segments and products so that services and marketing approaches can be tailored
accordingly.
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CUSTOMER SATISFACTION THROUGH 4 P’S OF MARKETING MIX
Marketing Mix
Marketing Mix refers to the ingredients or the tools or the variable which the
marketer mixes in order to interact with a particular market.
“Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market” - Kotler
Marketing mix is a term used to describe the combination o the four inputs which
constitute the core of a company’s marketing system: the product; the price structure;
the promotional activities, and the distribution system.
I. Product
A product is any good or service that consumers want. It is a bundle of utilities or a
cluster of tangible and intangible attributes. Product component of the marketing mix
involves planning, developing and producing the right type of products and services. It
deals with the dimensions of product line, durability and other qualities. The total
product should be such that it really satisfies the needs of the target market. In short,
product mix requires decisions with regard to:
(f) Packaging
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(g) Product range
II. Price
Price is an important factor affecting the success of a firm. Pricing decisions and
policies have a direct influence on sales volume and profits of business. Price is,
therefore, an important element in the marketing mix. In practice, it is very difficult to
fix the right price.
Right price can be determined through pricing research and test marketing. A lot of
exercise and innovation is req. to determine the price that will enable the firm to sell
its products successfully. Demand, cost, competition, govt. regulation, etc. are the
vital factors that must be taken into consideration in the determination of the price.
Price mix involves decisions regarding base price, discounts, allowances, fright
payment, credit, etc.
III. Promotion
Promotion component of the marketing mix is concerned with bringing products to
the knowledge of customers and persuading them to buy. It is the function of
informing and influencing the customer. Promotion mix involves decisions with
respect to advertising, personal selling and sales promotion. All these techniques help
to promote the sale of products and to fight the competition in the market.
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IV. Place (Distribution)
This element of marketing mix involves a choice of the place where the products are
to be displayed and made available to the customers. It is concerned with decisions
relating to the wholesale and retail outlets or channels of distribution.
The objective of selecting and managing trade channels is to provide the products to
the right customer at the right time and place on a continuing basis. In deciding where
and through whom to sell, management should consider where the customer wants
the goods to be available.
A manufacturer may distribute his goods through his own outlets or he may employ
wholesalers and retailers for this purpose. Irrespective of the channel used
management must continuously evaluate channel performance and make changes
whenever performance falls short of expected targets.
In addition, management must develop a physical distribution system for handling and
transporting the products through the selected channels. In the determination of
distribution mix or marketing logistics, a firm has to make decision with regard to the
mode of transporting of goods to middle-men, use of company vehiclesor both.
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CHAPTER-2
COMPANY PROFILE
17
COMPANY HISTORY
Amway began in 1959 with two young entrepreneurs in the United States -- Rich
DeVos and Jay Van Andel. Their concept for an innovative business opportunity,
centeredaround person-to-person marketing, established itself as a leader among one
of today's fastest-growing industries.
Today, more than 3.6 million independent business owners distribute Amway
products in more than 80 countries and territories. Amway is part of the Alticor family
of companies whose global sales totaled $4.5 billion in its most recent fiscal year.
Rich DeVos and Jay Van Andel's friendship actually began with a business proposition,
when Rich struck a deal with Jay for a ride to school for 25 cents a week. After high
school they entered the military, but they planned to start a business together after
separate tours of duty. A friendship formed and became a business relationship that
has lasted to this day.
Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay
Van Andel's homes. In its first full year of business, Amway's sales were more than half
a million dollars.
vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol
plant and went on. The ' 70s began with sales of more than $100 million at estimated
retail, and kept going strong. After a lengthy investigation, the FTC verified that
Amway is a genuine business opportunity As and not a "pyramid."
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1980s - The Billion-Dollar Decade
The ' 80s will be remembered for the first Billion Dollar Year at estimated retail in
1980. Building expansion at Amway World Headquarters continued at breakneck
speed as Amway scrambled to keep pace with demand, opening its new cosmetics
plant in Ada.
As carefully planned by Rich and Jay, the second generation Van Andel and DeVos
families took the helm during the ' 90s. Steve Van Andel and Dick DeVos succeeded
their fathers as Chairman and President. Distributors witnessed a similar trend, with
the second generation of many distributor families taking on important leadership
roles.
Amway - The Current Scenario Amway is the largest multi-level marketing (MLM)
organization in the world. It is a multi-billion dollar company based on the sale of a
variety of products. Amway’s philosophy is defined by commitments, trusts, enduring
relationships, and the ideal of perfection above profit. From a humble beginning in
1959, using an old gas station, Amway the brainchild of Co founders Rich DeVos and
Jay Van Andel, is now one of the largest and most successful direct sales companies.
Amway has also worked to provide better opportunities for people through active
support of various community projects.
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Corporate Profile
> Between then and now, Amway corporation has grown into a US Multi-billion dollar
company managed by 12,000 employees.
> It operates across 80 countries and territories in Asia, Africa, Europe and the
Americas with a turnover of US $5.7 billion.
> The company Manufactures 450 products of which 350 are patented.
> The company is also a long standing, active member of the World Federation of
Direct Selling Association (WFDSA).
> Over 500 R&D scientists and professionals ensure the exceptional quality of its
products across five product lines:
* Home Care
* Personal care
* Home Tech
* Cosmetics
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REVIEW OF LITERATURE
“Customer means the party to which the goods are to be supplied or service rendered
by the supplier”. provide definition for ‘customer’ upon two approaches: With
reference to loyalty, “A customer is the person that assesses the quality of the offered
products and services” and on process oriented approach, “the customer is the person
or group that receives the work output”
Howard and Sheth (1969)5 According to Westbrook and Reilly (1983) define
satisfaction as, “The buyer’s cognitive state of being adequately or inadequately
rewarded for the sacrifices he has undergone”
Oliver (1981)The definition offered by Hunt (1977) put forward a definition as, “the
summary psychological state resulting when the emotion surrounding disconfirmed
expectations is coupled with the consumers’ prior feelings about the consumption
experience”
Berry and Parasuraman (1991) define as, “the consumer’s response to the evaluation
of the perceived discrepancy between prior expectations (or some other norm of
performance) and the actual performance of the product/service as perceived after its
consumption”.
21
Customers’ satisfaction is influenced by the availability of customer service, the
provision of quality customer service has become a major concern of all businesses.
Customer satisfaction is typically defined as a post consumption evaluative judgement
concerning a specific product or service. It is the result of an evaluative process that
contrasts prepurchase expectations with perceptions of performance during and after
the consumption experience.
“Customer satisfaction as a state of mind in which the customer’s needs, wants and
expectations throughout the product or service life have been met or exceeded,
resulting in subsequent repurchase and loyalty”.
Schiffman and Kanuk (2004)17 Woodruff and Gardian (1996) defines customer
satisfaction as “The individual’s perception of the performance of the product or
service in relation to his or her expectations”.
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CHAPTER-3
RESEARCH METHODOLOGY
23
RESEARCH METHODOLOGY
This topic describes the methods of the study of the project. Research is a careful
investigation or inquiry especially through search for new facts in branch of
knowledge: market research specifies the information. Research problem is the one
which requires a researcher to find out the best solution for the g i v e n p r o b l e m
that is to find out the course of action, the action the objectives
c a n b e obtained optimally in the context of a given environment.
A framework or blueprint for conducting the research project. It specifies the details
of the procedures necessary for obtaining the information needed to structure and/or
solve research problems.
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate form for data collection.
Specify the sampling process and sampling size.
Develop a plan of data analysis
Books
Internet
Amway Business Planner
Amway Opportunity Brochure etc.
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Sampling Plan:
Segment Respondents
Men 56
Women 36
*Others 09
Total 100
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5.2 Limitations of the project
The company or the IBO’s were hesitant to give time and good information to
students, so information required for the primary research which is a basic
need of this project was not easily available in required quality and quantity.
Time constraint.
SAMPLE SIZE:-The size of samples greatly affects the survey results, but the
size may not be substantial, may be too short for the conduct of survey in
market.
LIMITED AREA OF STUDY:- The area of study is also greatly affecting the study
done; this study is done in limited area only in rohini, lajpatnagar and
vijaynagar.
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CHAPTER - 4
DATA ANALYSIS
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1. Awareness of Amway product
Yes
No
No of
S.No Options respondents Percentage
1 yes 80 80%
2 no 20 20%
Total 100 100%
Series1
Interpretation:
80% of the customers are aware about the amway product and 20% of the customers
are not aware about the amway products.
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2. People got to know about Amway
Independent Business owner
Meetings/Events
Newspaper
Peers
Internet
percentage
70%
60%
50%
40%
30%
20%
10%
0%
Internet
Peers
Others
Business owner
Meetings/Events
Newspaper
Independent
percentage
1 2 3 4 5 6
Interpretation:
60% of the customer get to know about amway through independent business owner,
5%of the customer get to know about amway product through meetings and
events,10% of the customer get to know about amway product through newspaper,
29
10% of the customer get to know about Amway product through peers, 15% of the
customer get to know about Amway product through meetings and events.
Very strong
Strong
Moderate
Weak
Low
S.no Options No of respondents Percentage
1 Very strong 15 15%
2 Strong 12 12%
3 Moderate 50 50%
4 Weak 13 13%
5 Low 10 10%
total 100 100%
60%
50%
40%
30%
20%
10%
0%
Very strong Strong Moderate Weak Low
1 2 3 4 5
Interpretation:
30
15% of the customer feels the presence of Amway product is very strong, 12% of the
customer feels the presence of Amway product is strong, 50% of the customer feels
the presence of Amway product is moderate, 13% of the customer feels the presence
of Amway product is weak and 10% of the customer feels the presence of Amway
product is low.
Personal Care
Oral care
Beauty Care
Health care
Home care
10%
25%
1 Personal Care
2 Oral Care
25% 3 Beauty Care
4 Health Care
5 Home Care
20%
20%
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Interpretation:
25% of the customer prefer personal care product of Amway, 20% of the customer
prefer oral care product of Amway , 25% of the customer prefer beauty care product
of Amway ,20% of the customer prefer health care product of Amway, 10% of the
customer prefer home care product of Amway.
Yes
No
1 Yes
40%
2 No
60%
Interpretation: 60% of the customer feels that product is easily accessible and
40% of the customer feels that product is not easily accessible,
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6 . Product purchased by customers through.
Internet
Amway Business Owner
No of
S. no. Options respondents Percentage
1 Internet 35 35%
2 Amway Business Owner 65 65%
Total 100 100%
1 Internet
35%
2 Amway
Busines Owner
65%
Interpretation:
65% of the customer would like to buy the product from internet and 35% of the
customer would like to buy the product from retail outlet.
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7. Aspects of the product satisfying the customer
Quality
Price
Packaging
Chart Title
60
50
40
30
Series1
20
10
0
quality price packaging
1 2 3
Interpretation:
50% of the customer were mostly satisfied by the quality of the product,20% of the
customer were satisfied by the price of the product.
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8 Prices of the Amway products
Too expensive
Expensive
Economical
Cheap
Poor
S.no Options No of respondents Percentage
1 Too Expensive 33 33%
2 Expensive 20 20%
3 Economical 37 37%
4 Cheap 7 7%
5 Poor 3 3%
total 100 100%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Too Expensive Expensive Economical Cheap Poor
1 2 3 4 5
Interpretation:
33% of the customer feels that Amway products are too expensive ,20% of the
customer feels that Amway products are expensive, 37% of the customer feels that
Amway products are economical, 7% of the customer feels that Amway products are
cheap, 3% of the customer feels that Amway products are poor.
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9. Prices of Amwayproducts as compared to other similar products available in the
retail stores.
Yes
No
No of
S.no Options respondents Percentage
1 Yes 49 49%
2 No 51 51%
total 100 100%
percentage
1 Yes 2 No
49%
51%
Interpretation:
49% of the customer think the Amway products are not fairly priced as compared to
other similar products available in the market and 51% of the customer think the
Amway products are fairly priced as compared to other similar products available in
the market.
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10. The quality of the products.
Excellent
Good
Average
Bad
Poor
S.no Options No of respondents Percentage
1 Excellent 25 25%
2 Good 35 35%
3 Average 15 15%
4 Bad 0 0%
5 Poor 0 0%
total 100 100%
percentage
40%
35%
30%
25%
20%
15% percentage
10%
5%
0%
Excellent Good Average Bad Poor
1 2 3 4 5
Interpretation:
25% people in the sample group feels the quality of the product is excellent,35%%
people in the sample group feels the quality of the product is good, 15% people in the
sample group feels the quality of the product is average.
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11.Experience after using the product.
Excellent
Good
Average
Bad
S. no. Options No of respondents Percentage
1 excellent 45 45%
2 good 20 20%
3 average 25 25%
4 bad 10 10%
total 100 100%
Interpretation:
45% of the customer have excellent experience after using the product, 20% of the
customer have good experience after using the product,25% of the customer have
average experience after using the product and 10% of the customer have bad
experience after using the product.
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Q.12The products of Amway are environment-friendly?
Yes
No
Maybe
percentage
70%
60%
50%
40%
30%
20%
10%
0%
Yes No May be
1 2 3
Interpretation:
60% of the customer thinks that the product is environmental friendly and 15% of the
customer thinks that the product is not environmental friendly and 25% of the
customer do not know the products are environmental friendly.
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13 RecommendAmway products to other
Yes
No
May be
1 yes 2 no 3 may be
20%
10%
70%
Interpretation:
70% of the customer would like to recommend Amway products to others and 10% of
the customer would not like to recommend Amway products to others
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14 . Buy the product again
Yes
No
percentage
2 no
20%
1 yes
80%
Interpretation:
80% of the customer would like to buy the product again and 20% of the customer
would not like to buy the product again.
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FINDINGS
3.50% of the customer were mostly satisfied by the quality of the product,20% of the
customer were satisfied by the price of the product.
5. 45% of the customer have excellent experience after using the product, 20%
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CONCLUSION
Probability that the customer would repeat the purchase of Amway products is
very high.
Anyone can join the Amway business through Amway business Owner.
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RECOMMENDATIONS
They should try to target the middle income group they must reconsider their
price structure once again.
They should also try to manufacture their products in India, which will then
reduce the cost pressure on its customers.
It’s time to Introduce the e-commerce Amway i.e. Quixtar in India. It will help
will also helpin promoting their sales.
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BIBLIOGRAPHY
This project work is based on the information that has been collected from various
sources. To mention a few, information from some websites, newspapers and
magazines facilitated the preparation of this project.
Websites
www.amwayindia.com
www.amway.com
www.onlinemlm.com
www.amquix.50megs.com
www.skepdic.com
www.getfacts.com
www.cocs.com
www.msn.com
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QUESTIONNAIRE
DEAR SIR/MAM,
I assure you that I will not use this information anywhere else without your
permission.
E-Mail:-
Occupation:
a. Yes
b. No
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Q.3 How do you rate the presence of Amway in the market?
Very strong
Strong
Moderate
Weak
Low
Personal Care
Oral care
Beauty Care
Health care
Home care
Yes
No
Internet
Amway Business Owner
Q.7 What aspects of the product were you most satisfied by?
Quality
Price
Packaging
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Q.8 How do you feel are the Amway products priced:
Too expensive
Expensive
Economical
Cheap
Poor
Yes
No
Excellent
Good
Average
Bad
Poor
Excellent
Good
Average
Bad
Q.12 Do you think the products of Amway are environment-friendly?
Yes
No
37
Maybe
Yes
No
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