Mumbai: Amway India Enterprises, the multilevel direct marketing company, which has grown into a global multibillion corporation exclusively by word of mouth publicity, is now planning to use corporate advertising to communicate to its customers, though in a limited manner. And India is the first country where the company plans to use the mode of advertising.
Amway India managing director and CEO William Pinckney says: ''Amway is growing fast in India and corporate advertising at this stage will be beneficial to its distributors, prospective distributors, customers and prospective customers. It will also add to the increased awareness and appreciation of the company.''
He emphasises that it would not have a real change in Amway's communication strategy. ''The company still relies mainly on the word of mouth, and the ad campaign in India is a low-key affair.''
He says Amway's ad campaign focuses on the business opportunities thrown up by the company, its corporate values and commitment. ''More importantly, the ads mention very distinctly one of its important unique selling points, which is the 100 per cent customer satisfaction or money-refund policy . Commitment towards India is found necessary if only to supplement the efforts the company's distributors continued to put in.''
The ad campaign, he feels, will enhance the receptivity of Amway products, and with it the business opportunities, and enable distributors to reach out to a much larger audience and much faster.
Amway India clocked a turnover of Rs 553 crore in the year ended 30 September 2001 and is targeting a turnover of Rs 700 crore for the coming year. From a six-product company in 1998, the company now sells 33 products through 3 lakh distributors and is present in four categories - personal care, home care, nutrition and cosmetics.
Amway India is a wholly owned subsidiary of Amway Corporation and was established in August 1995 after getting approval from the Foreign Investment Promotion Board. The company commenced commercial operations on 5 May 1998.
The company manufactures all its products in India through three third-party manufacturers. Till now, it has invested in India in excess of $35 million, of which $6 million is in the form of foreign direct investment.