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The main of this report is to come out with new strategies and recommendations to help Amway to gain its popularity and competitive in Singapore, as Amway Corporation is not so well known Recommendation on Amway Corporation with new or improve matters as its brands, by using survey to show on the feedback of what customers wants, which Amway to earn more profit in the long run.
Finding from the survey shows a large percent of health products were from GNC, despite GNCs’ dominant in the health products in Singapore, higher percent of Singaporeans are still aware of Amway’s brand than GNC.
Most of the respondents felt that Amway’s quality compared to other brands is much better. Due to as Amway’s research scientists and product development teams using the most advanced scientific formulas and technologies available to enhance the product’s quality, which shows how important Amway focus on its quality
In overall Amway in Singapore did have its second place in the heath market compare to NTUC Unity and Watson. Lots of younger generations start to focus on healthcare items, food and many more, with the demand of healthcare products Amway will still have its chance to overtake GNC in future.
Introduction
1.1 Purpose
Come out with new strategies and recommendations to help Amway to be as competitive as the two new competitors GNC and NTUC Healthcare Unity in the health care market. Recommendation on Amway Corporation with new or improve matters as its brands.
1.2 Background
New strategies and recommendations are needed to help Amway Corporation to gain its popularity in Singapore, as Amway Corporation is not so well known as compare to NTUC which has a history seen 1961. New ideas on improving advertisements or products packaging are required to help Amway to maintain or gain its competitive edge over their rivals.
1.3 Methodology
Conduct surveys on the products and companies and interviews on customers. Online forums will be used to gather customer’s feedback. Newspapers, online research on competitors’ organisation profile.
1.4 Scope of report
Survey will include information such as the customer’s income, age, race, sex and occupation. Information such as what are the needs customer desire for, which company’s healthy lifestyle related products do they prefer, sources of information customer consider when purchasing Amway’s product will be obtained as well. Interviews and online forums review information that customers are satisfied, unsatisfied or both on Amway’s products and companies. (Appendix A) In addition, we will be researching on Amway’s competitor’s organisation profile as well as their marketing strategies using online information and newspapers.
About Amway
Amway Corporation was started in 1959 by Rich DeVos and his business partner Jay Van Andel. Devoted to its innovation and research, Amway Corporation has produced more than eight hundred patents granted and more than six hundred patents pending. It has been recognized for its excellence in manufacturing, concern in environment and commitment to safety and health over the last fifty years.
Amway’s products
Amway Corporation consists of different brands for its various categories products which are Nutrilite, Artistry, Legacy of Clean, Glister Oral care, Queen/ iCook, eSpring Water Purifier and Atmosphere Air Purifier. Nutrilite which is on vitamin, mineral and dietary supplements, Artistry on beauty care products, Legacy of Clean on bath and body, Glister on Oral care products, Queen/ iCook on cookware products, eSpring on water purifier products, Atmosphere on Air Purifier products.
Amway’s Target audience
Amway’s target groups such as babies, children, teenagers and adults and pets that are likely to become targets in the future, in one of Amway’s products the Satinique was aimed to target adult females between 25 and 44 years of age. (Appendix B)
Amway’s Marketing Strategies
Amway Corporation adopts direct selling strategies which carry out their operations in more than eighty countries and territories around the world, enabling more than three million people to own their businesses independently. (intext citation missing)
Amway Corporation and others organisations faces the same changes in the business environment like e.g.: entering of new firms into the market, changing of consumer tastes, new products and combination of two competitors into one. By making changes in the business environment helps to create both threats and opportunities to Amway’s organisation’s strategic development, and Amway has to monitor its environment continually in order to develop strategies that helps the organisation to improve and creates products and develops better ideas in customers’ service to keep organisation going in the business. One of the strategise that AMWAY operate to link up with direct selling was Business Owner Compensation Plan, which give everyone a chance to start a business with a low-cost and low-risk business opportunity and reward is also another way for AMWAY to gain sale.
Research & Findings
In order to find out how popular Amway’s product was, the respondents are asked to indicate the types of products that they are aware of. Amway’s products such as herbal supplements, vitamins, organic food, slimming supplements, organic supplements, dietary supplements, skin, eye care, skin care, cooking equipment, water purifier, home care products and children’s supplements are included as options in the question. After tallying the data, the results are as follows.
Percentage of people’s preferred brands for healthy lifestyle related products
Preferred brands of health products
With reference above, GNC controls 51% of health products in Singapore’s market, could due to its specific wide range of consuming health care products, having a total of 59 outlets in Singapore and latest advertising in TV’s commercial. Amway was able to gain 27% of health care products in Singapore’s market from its way of using direct selling strategies. Even NTUC Unity had 37 outlets, NTUC Unity only had 16% of health care products in Singapore’s market, and this may due to its brand name NTUC which has an image of having general common products of household, food and other Merchandise’s items as compare to other specific health care firms like GNC and Amway. Preferred brand for healthy lifestyle related products as it might be due to GNC has great marketing strategy compared to the rest of the brands. Both Watsons and NTUC Unity had the lower percentage compared to GNC, the reason could be they are not remarkably popular for healthy lifestyle related products in the market. Hence, most people probably don’t really choose their brands for the purchase of their health products.
Awareness of Amway’s Products
(N=378)
Figure 1. Awareness of Amway’s Products
Figure 1 above shows that 48% of them are aware of Amway’s eye care products. It might be due to the overwhelming responses from people whom had used Amway’s eye care products before has shown good results, one of the Amway’s eye care product “Skin Care System Combination/Oily” shows a good result on the users feedback. (1)
41% of the people are aware of Amway’s cooking equipment. This could be due to Amway’s wide range of cooking equipment from Replacement Handle, Knife ware Set till Fry pan Set, Cutting Board and many more had offered the most advanced technology and quailty in cooking equipment, (2) that is able to be use. Hence, people to notice the exsistence of it.
Amway’s products, its slimming supplements stands only 11% of the awareness may due to case of slim 10, a news that shaked the public in singapore, because of the death of a woman, who died after using the slimming supplements and a liver failure of female television personality, causes the public to hold back from buying or finding any slimming supplements.Therefore, this may be a reason why the Amway’s slimming supplements is not so well known in the market.
Sources of information people consider when purchasing healthy lifestyle products (N=411)
The figure below shows the statistics of the number of people who will consider different sources of information. The highest rated are Brochures/Catalogues (47%), follow by Newspaper/Magazine advertisements (45%), Roadshows/Consumer shows (44%), Salesperson/Promoters (38%) and the lowest was Manufacturers’ Website/ Online advertisements (34%).
Figure above shows that most people consider brochures and catalouges for them to read on information of the healthcare products. Due to the ways of the size design with reliable information and it is easily to be gave out to public by salesperson and roadshow, the brochures and catalouges are very easily to be readed and found in healthcare outlets.
The second most people consider on were Newspaper and Magazine articles because of the free gave out of newspaper more people were able to recive it near mrt stations and Magazine can be bought in many convenient stores, source of information can be easily readed or be seen in the Newspaper and Magazine when considering before purchasing.
Manufacturers’ website and online advertisment are the lowest on people consider, due to the brochures, catalouges, newspaper and many more, had cover the needs of information that the public wants and advert. The manufacturer’s websites might not have much information on their products and might not update everytime, causes the low on considering by people before purchasing.
Brands of healthcare products people are aware of
(N=411)
Statistical graph shows below are the percentage of people who heard about the four health products brands. Results shown, Amway that was the highest had (85.9%) followed by GNC (83.7%), Watsons (80.80%) and NTUC Unity (66.9%) which has the lowest.
Amway has the highest rating for products known to the public. This could due to Amway’s width range of products and Business Model, which help Amway’s brand to be known by public, on the other hand like Watsons uses neighbourhood to open store in mall and HDB area.
For GNC, GNC chose to open up store in shopping mall area and using adverting matter to extend its brand name to the public, other than using direct selling matter to enhance its brand name.
As for NTUC Unity, NUTC Unity did not publicize much compare to GNC or AMWAY, due to that public was unable to know its brand well.
Comparison of the different aspects from Amway
(N=411)
This survey was to find out what are the highest rating of AMWAY’s understanding of customer needs, trustworthiness, strong image, value for money and quality compared to other brands.
The results of the highest ratings of Amway’s data collected from the survey shown that, Amway’s quality has the highest rate of 128 respondents that felt Amway’s quality compared to other brands are much better , as Amway has been recognized for manufacturing excellence, commitment to safety, health and environmental concern. Amway hired more than 300 research and development scientists and product development teams to research and development using the most advanced scientific formulas and technologies available to enhance the product’s quality, which shows how Amway focus on its quality. (citation) As the rates of 66 surveyors show that the prices of Amway’s products generally have not been able to let the customers felt that it is value for money compared to other brands.
Conclusions
The health products in Singapore’s market control by Amway 27%, NUTC Unity 16%, Watsons 6% and GNC 51%, due to GNC’s specific wide range of consuming health care products and a total of 59 outlets in Singapore with latest advertising in TV’s commercial, GNC was able to get hold of the top in Singapore.
The Awareness of Amway’s Products shows that Amway’s eye care products 48% was the highest from the rest, was due to the overwhelming responses and feedback from people whom had used.(1)
The Sources of information people consider when purchasing healthy lifestyle products were brochures and catalouges, as they were easily to be readed, give out by salesperson, roadshows and found in healthcare outlets.
The Brands of healthcare products people are aware of was Amway, because of Amway’s width range of products and Business Model, which help Amway’s brand to be known by public compare to GNC, NTUC Unity and Watsons.
The comparison of the different aspects from Amway results shows that, Amway’s quality has the highest rate as Amway has been recognized for manufacturing excellence, commitment to safety, health and environmental concern.
Recommendations
Amway may want to consider opening an outlet in Singapore to let the customers to see understand the range and variety that Amway had, on the other hand Amway could open an seminar in school or business event as more Singaporeans will be able to recognize Amway.
Since Amway’s eye care products was the highest from the rest, will be best if they could combine both eye care and slimming supplements into a set, by selling off in a set will not just help slimming supplements’ sale to rise but also better review of it product image to the customers.
As brochures and catalouges were the highest percent of people consider when purchasing healthy lifestyle products, Amway could use its brochures or catalogues to send to public’s mailbox at the HDB to increase the percentage of people to consider.
For Amway maintain its awareness on public, Amway could open a road show and invites radio’s DJ or MediaCorp artistes to attract more publics eyes on Amway.
Although Amway’s quality has the highest rated and was recognized for manufacturing excellence and more, the company may want to reconsider about the others competitors pricing in Singapore or having promotion for the second item when customers is considering.
