Product Development

Product development is a particularly appropriate strategy for an organization that is strong in research and development. Product development is highly important for products which have relatively short life cycles. Within Amway there are approximately 500 active research and development projects in progress at any one time. With approximately 575 employees involved in research programs, and with strong links with many universities, Amway formulates, designs and develops new products to meet customer needs and expectations within global markets.

For example, based on Euromonitor 1998 research estimating global retail data, 'Artistic' ranks among the top five largest selling brands of prestige facial skin care and color cosmetics in the world. Others in this distinguished group include Clinique, Lanc?me, Estee and Sofina'. Amway currently maintains more than 380 patents internationally and has approximately 430 patents in effect. During its product development program, Amway's technical team uses the company's customer base to examine and test new product ideas.

Market Development

Market development involves taking existing products and entering completely new markets. One approach used by Amway includes which individuals can be involved in expansion with Amway businesses. Amway has developed a structure known as the IMC model. This increases the number of ways people can become involved in the Amway business. Each letter IMC represents a different type of involvement.

I - Independent Business Owners (IBOs)

M - Members

C - Customers (Customers) of IBOs.

Members are permitted to purchase Amway products at a price equivalent paid by IBOs, but do not participate in the Amway sales and marketing program. They are a new type of 'customer' that Amway deals with directly.