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April 9, 2003

Amway (Quixtar's sister) begins advertising campaign

By QBlog in

One of my big criticisms of Quixtar (part of the Alticor and Amway family) is their unwillingness to enhance or improve the brand name by traditional advertising. While I understand the rationale for this advertising void (no advertising costs = more money returned to IBOs) I never thought it was an entirely wise decision.

My reasoning for this criticism is that Quixtar (and sister Amway) have a somewhat "negative" image in the minds of a lot of people. Many of these people could be potential customers or IBOs but it's hard to overcome already established perceptions (right or wrong). Some sort of advertising or public relations blitz would go a long way to at least "set the record straight" and dispel a lot of "perceptions" about the business. This would in turn, improve the quality of the product (Quixtar and Amway) and ultimately help IBOs sell products and recruit new IBOs.

I think of it as a wise investment and don't believe it would greatly impact the amount of profits the business would be able to return to its IBOs.

Yet, in North America I hear the common refrain, "We don't advertise. That's what makes us different. We take that money other companies spend on ads and give it to you!"

Interesting Development
Well, what's good for the goose is apparently not good for the gander. Amway Directs New Campaign Against Look-alikes is a story out of India about an advertising campaign being waged to change perceptions of Amway.

Quote:

Though Amway is not admitting it but the industry view is that the company has had to lose a lot of distributors because of negative perception. “In such a situation, a distributor tends to put off the decision to enrol and naturally, it affects the business,” comments the spokesperson.

Interestingly, Amway India has been the lone company in the direct selling industry to use the advertising route for communication. Traditionally direct selling companies rely primarily on word-of-mouth publicity.

So why won't Quixtar (essentially the North American Amway) advertise to change similar perceptions here? I really have no idea and don't want to speculate. It's just interesting.

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