case study on Amway
CASE STUDY ON AMWAY
1) What challenges did Amway face in India in relation to the distribution?
Ans.
Capturing the ruler area.
Creating own warehouses
Storage problem
Rate of courier service is very high
Telephone rates are also high.
Maintain the price of product as for the Indians.
Introduce by the advertisement.
2) Discuss the merits and demerits of various distribution channel present.
Ans. A) Vertical Marketing System: - Merits :-
i. Consumer get product by the company directly. ii. Cheaper then other distribution channel because consumer direct get product by the company.
Demerits :-
i. Availability depends on company. ii. Changing in price rapidly.
B) Conventional marketing channel Merits: -
I. Availability of product is high.
II. Sales much more higher because they wholesaler, Retails, Consumer.
III. Target in more area.
Demerits:-
i. Product price is high. ii. Channel is very complex. iii. Difficult to maintain.
C) Corporate Vertical System Merits: -
i. Price of price depends on ownership. ii. They give good service to consumer. iii. More flexible and more efficient.
Demerits: -
i. Controlling a entire distribution is difficult.
D) Contractual VMS: -
Merits: -
i. Partnership and join with other. ii. Give Franchise iii. Good Impact on Sales. iv. Profit and generate high revenue.
Demerits: -
i. Price fixed.
E) Horizontal marketing System Merits: -
i. Expand a Business across the world. ii. High profit iii. High sales revenue iv. Investment is high
v. Availability of product is higher. vi. Loss will share by all joined company.
1) What challenges did Amway face in India in relation to the distribution?
Ans.
Capturing the ruler area.
Creating own warehouses
Storage problem
Rate of courier service is very high
Telephone rates are also high.
Maintain the price of product as for the Indians.
Introduce by the advertisement.
2) Discuss the merits and demerits of various distribution channel present.
Ans. A) Vertical Marketing System: - Merits :-
i. Consumer get product by the company directly. ii. Cheaper then other distribution channel because consumer direct get product by the company.
Demerits :-
i. Availability depends on company. ii. Changing in price rapidly.
B) Conventional marketing channel Merits: -
I. Availability of product is high.
II. Sales much more higher because they wholesaler, Retails, Consumer.
III. Target in more area.
Demerits:-
i. Product price is high. ii. Channel is very complex. iii. Difficult to maintain.
C) Corporate Vertical System Merits: -
i. Price of price depends on ownership. ii. They give good service to consumer. iii. More flexible and more efficient.
Demerits: -
i. Controlling a entire distribution is difficult.
D) Contractual VMS: -
Merits: -
i. Partnership and join with other. ii. Give Franchise iii. Good Impact on Sales. iv. Profit and generate high revenue.
Demerits: -
i. Price fixed.
E) Horizontal marketing System Merits: -
i. Expand a Business across the world. ii. High profit iii. High sales revenue iv. Investment is high
v. Availability of product is higher. vi. Loss will share by all joined company.