Amway Chalks Out Aggressive Thrust In Personal Care  ( October '21,2003, FE)

In an effort to spur its personal care category, the Rs 626-crore Amway India—a 100 per cent subsidiary of US-based Amway Corporation—has recently forayed into the mouth freshener spray segment in India. As part of the strategy, the company has entered into a contract manufacturing tie-up with Vapi-based company called Asian Aerosol Pvt Ltd to manufacture ‘Glister Sweetshot’ range of mouth freshener sprays for Amway.

The company is also test-marketing the ‘Glister Sweetshot’ range of mouth freshener sprays in mint flavour in major metros. Enthused by the initial response to the new product, Amway is now planning to nationally roll out its mouth freshener sprays in cinnamon flavour, besides Deodorant Spray and Satinique Styling Gel in the coming months.

Prior to the launch, the company conducted extensive market research which helped it decide the flavour of the mouth freshener. However, Deodorant Spray and Satinique Styling Gel will initially be imported for test-marketing and subsequently manufactured locally.

With the move, the company has extended its ‘Glister’ brand category from toothpaste to now include mouth freshener sprays as well, which is currently available in India, Amway India managing director and chief executive officer William Pinckney told FE.

On the company’s new plans, Mr Pinckney said: “Our objective is to give a major push to the personal care category by launching a series of new products. Amway would be launching five new products in personal care in the next 10 months. Currently, Amway India has 12 products in its personal care portfolio and with the launch of these new products, the total will go up to 17.”

According to Mr Pinckney, in the process, the company will be able to increase the earning potential of its 3.5 lakh distributors as well. As part of its distributor relationship management initiatives, Amway India provides incentives in terms of monetary benefit based on the retail profit margin. Additional incentives in terms of bonuses are provided to distributors depending on the total volumes they sell for a month. Besides, Amway India has also implemented interactive voice response system and business related information through SMS.

At present, Amway India caters to three segments—home care, cosmetics and nutrition and wellness herbal products of which, nutrition protein powders is the largest selling product. The personal care category is currently the second highest contributor to Amway India’s turnover, he added.

Amway India has a contract manufacturing tie-up with Hyderabad-based Sarvodham Care for manufacturing home care and protein powders, Yodeva Plastics for manufacturing bottles and Daman-based Naisa Industries for making home care and personal care products.

With the help of independent logistic partners, Amway India has strengthened its national presence through 48 offices and 97 city warehouses covering over 1,000 cities, Mr Pinckney said.