DOWNLOAN MATERIAL ON RETAILING AND MARKETING STRATEGIES FROM THE FOLLOWING LINKS (SEARCH IT OUT )
http://www.esnips.com/web/inspiringlectures123/?refresh=1
Wednesday, November 19, 2008
how to build consumer movement
STRATEGIES FOR BUILDING THE CONSUMER MOVEMENT AND INCREASING CONSUMER AWARENESS
ABSTRACT
The consumer movement in India is as old as trade and commerce itself. Even in Kautilya’s Arthshastra, there are references to the concept of protection of consumers against the exploitation by trade and industry, short weighment and measurements, adulteration. There was no organized and systematic movement actually safeguarding the interests of the consumers earlier. Before Independence, consumer interests were covered mainly under laws.
It is generally believed that the consumer movement in India as of today is quite strong when it is compared with other developing countries in Asia, Africa and Latin America. India is a vast country with a very large population of which a sizeable percentage lives below the poverty line. Because of economic inequality, low level of literacy and ignorance, particularly amongst women, the level of consumer awareness may vary place to place.. Protecting the interests of consumers has, therefore, become one of the paramount concerns of the Government than ever before. Hence, policies are being designed and legislations enacted to protect the consumers’ interest and grant them the right to choice, safety, information and redressal. The paper is an attempt to evaluate the role of Government and NGOs. For determining the awareness and strategies for strengthening consumer movement, a survey was carried out amongst the consumers in Bikaner, a desert city of Rajasthan. The survey was conducted among students, housewives, academicians and retired persons. Sample size was hundred respondents. Interviews using structured questionnaire was used to collect data. Quantitative and qualitative analyisis of data was carried out.
The survey revealed that there is a need for concerted action for consumer awareness. There is also a need for strengthening the aspects relating to environmental laws. In spite of all the claims by NGOs and consumer activists, still people have lack of awareness of consumer rights. They are still hesitant even in demanding cash memos, what to talk about after sale services Very few respondents demand for cash memos while purchasing the general products.
There is a need to strengthen the implementation of consumer laws. However, there is awareness of consumer protection laws. When the respondents were asked about their awareness about consumer protection laws, Most of the respondents were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
People still expect the government to come forward and spread consumer awareness. All the respondents suggested that consumer awareness should be enhanced by government departments.
INTRODUCTION
The consumer movement in India is as old as trade and commerce itself. Even in Kautilya’s Arthshastra, there are references to the concept of protection of consumers against the exploitation by trade and industry, short weighment and measurements, adulteration. There was no organized and systematic movement actually safeguarding the interests of the consumers earlier. Before Independence, consumer interests were considered mainly under laws like the Indian Penal Code, Agricultural Production Grading and Marketing Act 1937, and Drugs and Cosmetics Act, 1940. Even though different parts of India had varying degrees of awareness, in general the level of awareness was low.
It is generally believed that the consumer movement in India as of today is quite strong when it is compared with other developing countries in Asia, Africa and Latin America. India is a vast country with a very large population of which a sizeable percentage lives below the poverty line. Because of economic inequality, low level of literacy and ignorance, particularly amongst women, the level of consumer awareness is not too high and, therefore, the consumers are not able to assert and protect themselves. They easily get exploited by trade and industry and service providers. With the liberalisation process which started in 1991 the entire economic scenario is undergoing a complete change from a government-driven economy to a market-driven economy. Protecting the interests of consumers has, therefore, become one of the paramount concerns of the Government than ever before. Hence, policies are being designed and legislations enacted to protect the consumers’ interest and grant them the right to choice, safety, information and redressal. The Right to information bill has been passed by some legislative assemblies such as Rajasthan and Madhya Pradesh.
STATUS OF CONSUMER PROTECTION IN INDIA
Consumer Protection Act, 1986
One of the most important milestones in the consumer movement in the country has been the enactment of the Consumer Protection Act, 1986 to better protect the interest of the consumers. This has revolutionised consumer rights. It is one of the most progressive and comprehensive pieces of socio-benevolent legislation covering all goods and services. The Act provides for a separate three-tier quasi-judicial consumer dispute redressal machinery, popularly known as consumer courts, at the national, state and district levels to provide simple, speedy and free redressal against consumers’ complaints. Filing of a simple complaint on plain paper with the details of the case with supporting documents seeking relief or compensation is enough and it is not obligatory to engage a lawyer. According to the objects and purposes of the Consumer Protection Act, these quasi-judicial bodies observe the principles of natural justice while adjudicating consumer complaints against defective goods, deficient services and restrictive and unfair trade practices through summary trials. The Act applies to all goods and services and covers all sectors, whether private, public or cooperative.
Amendments
The Act was amended in 1991 mainly to incorporate provisions for the quorum of District Forum, appointing persons to preside over State Commission/District Forum in case of absence of the President to enable the court function uninterruptedly. In 1993 the Act was again amended exhaustively to make it more effective and purposeful.
The Government has formulated comprehensive proposals for amending the Consumer Protection Act mainly based on the recommendations of the Working Group and Expert Group set up for the purpose and the wide-ranging consultations its had with the representatives of consumer interests, presidents of the national and state commissions and Central Government Ministries and Departments. These amendments are mainly aimed at facilitating quicker disposal of complaints, enhancing the capability of redressal agencies, strengthening them with more powers, streamlining the procedures and widening the scope of the Act to make it more effective to protect the consumers’ interest .
The Consumer Protection (Amendment) Bill, 2001 introduced in the Rajya Sabha on 26th April, 2001 among other things addresses the issues of quicker disposal of complaints, widening the scope of the Act, strengthening the Consumer Courts, streamlining the procedure and a proposal to strengthen the consumer movement. It is also proposed to establish a consumer protection council in every district in order to strengthen the consumer movement at the grass root level.
Enactment of the Amendment Bill will not only further strengthen the consumer movement in the country but also help the large number of consumers in securing speedy and effective redressal of their complaints.
Government’s Role
A separate Department of Consumer Affairs was created in 1997 to act as the nodal outfit in the Central Government for promoting and protecting the welfare of consumers. It seeks to do this in various ways such as ensuring availability of essential commodities at reasonable prices including monitoring of prices, formulating standards of goods and services, regulation of weighing and measuring instruments and prepacked commodities and providing a legislative framework for safeguarding consumers’ interests and establishment of a machinery for redressal of consumer complaints.
To meet these objectives the Department has been undertaking various measures involving all concerned to strengthen the consumer movement in the country. Some of the important measures being taken to strengthen the consumer movement include initiating multimedia publicity programmes to educate the consumers, providing financial assistance through consumer welfare fund to the NGOs and State Governments to generate consumer awareness, setting up of district information centres to guide the public, national awards on consumer protection to encourage outstanding work by women and youth, observing national and World Consumer Rights Day to remind the consumers to be vigilant, interactions with various interests through Central and State Consumer Protection Council to promote and protect the rights of the consumers, formulation of citizens’ charters containing their entitlements to public services, standards of performance and redressal of grievances for providing an efficient and responsive administration.
The success of the consumer movement mainly depends upon the level of consumer awareness around the country. The Government can only be playing the role of a facilitator or catalyst. The growth of consumer movement is a voluntary effort involving the participation of one and all. Only alert consumers can protect themselves and the society.
STATUTORY CONSUMER PROTECTION BODIES
Consumer Protection Councils
The interests of consumers are enforced through various authorities set up under the CPA. The CPA provides for the setting up of the Central Consumer Protection Council, the State Consumer Protection Council and the District Forum.
Central Consumer Protection Council
The Central Government has set up the Central Consumer Protection Council which consists of the following members :-
(a) The Minister in charge of Consumer Affairs in the Central Government who is its Chairman, and
(b) Other official and non-official members representing varied interests
The Central council consists of 150 members and its term is 3 years. The Council meets as and when necessary but at least one meeting is held in a year.
State Consumer Protection Council
The State Council consists of :-
(a) The Minister in charge of Consumer Affairs in the State Government who is its Chairman, and
(b) Other official and non-official members representing varied interests
The State Council meets as and when necessary but not less than two meetings must be held every year.
Redressal Machinery under the Act
The CPA provides for a 3 tier approach in resolving consumer disputes. The District Forum has jurisdiction to entertain complaints where the value of goods / services complained against and the compensation claimed is less than Rs. 5 lakhs, the State Commission for claims exceeding Rs. 5 lakhs but not exceeding Rs. 20 lakhs and the National Commission for claims exceeding Rs. 20 lakhs.
District Forum
Under the CPA, the State Government has to set up a district Forum in each district of the State. The overnment may establish more than one District Forum in a district if it deems fit. Each District Forum consists of :-
(a) a person who is, or who has been, or is qualified to be, a District Judge who shall be its President
(b) two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.
Appointments to the State Commission shall be made by the State Goverrnment on the recommendation of a Selection Committee consisting of the President of the State Committee, the Secretary - Law Department of the State and the secretary in charge of Consumer Affairs
Every member of the District Forum holds office for 5 years or upto the age of 65 years, whichever is earlier and is not eligilbe for re-appointment. A member may resign by giving notice in writing to the State Government whereupon the vacancy will be filled up by the State Government.
The District Forum can entertain complaints where the value of goods or services and the compensation, if any, claimed is less than rupees 20 lakhs. However, in addition to jurisdiction over consumer goods services valued upto Rs. 20 lakhs, the District Forum also may pass orders against traders indulging in unfair trade practices, sale of defective goods or render deficient services provided the turnover of goods or value of services does not exceed rupees 20 lakhs.
A complaint shall be instituted in the District Forum within the local limits of whose jurisdiction -
(a) the opposite party or the defendant actually and voluntarily resides or carries on business or has a branch office or personally works for gain at the time of institution of the complaint; or
(b) any one of the opposite parties (where there are more than one) actually and voluntarily resides or carries on business or has a branch office or personally works for gain, at the time of institution of the complaint provided that the other opposite party/parties acquiescence in such institution or the permission of the Forum is obtained in respect of such opposite parties; or
(c) the cause of action arises, wholly or in part.
State Commission
The Act provides for the establishment of the State Consumer Disputes Redressal Commission by the State Government in the State by notification. Each State Commission shall consist of:-
(a) a person who is or has been a judge of a High Court appointed by State Government (in consultation with the Chief Justice of the High Court ) who shall be its President;
(b) two other members who shall be persons of ability, integrity, and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom must be a woman.
Every appointment made under this hall be made by the State Government on the recommendation of a Selection Committee consisting of the President of the State Commission, Secretary -Law Department of the State and Secretary in charge of Consumer Affairs in the State.
Every member of the District Forum holds office for 5 years or upto the age of 65 years, whichever is earlier and is not eligilbe for re-appointment. A member may resign by giving notice in writing to the State Government whereupon the vacancy will be filled up by the State Government.
The State Commission can entertain complaints where the value of goods or services and the compensation, if any claimed exceed Rs. 20 lakhs;
The State Commission also has the jurisdiction to entertain appeal against the orders of any District Forum within the State
The State Commission also has the power to call for the records and appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State if it appears that such District Forum has exercised any power not vested in it by law or has failed to exercise a power rightfully vested in it by law or has acted illegally or with material irregularity.
National Commission
The Central Government provides for the establishment of the National Consumer Disputes Redressal Commission The National Commission shall consist of :-
(a) a person who is or has been a judge of the Supreme Court, to be appoint by the Central Government (in consultation with the Chief Justice of India ) who be its President;
(b) four other members who shall be persons of ability, integrity and standing and have adequate knolwiedge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman
Appointments shall be by the Central Government on the recommendation of a Selection Committee consisting of a Judge of the Supreme Court to be nominated by the Chief Justice of India, the Secretary in the Department of Legal Affairs and the Secretary in charge of Consumer Affairs in the Government of India.
Every member of the National Commission shall hold office for a term of five years or upto seventy years of age, whichever is earlier and shall not be eligible for reappointment.
The National Commission shall have jurisdiction :-
a. to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceeds rupees twenty lakhs:
b. to entertain appeals against the orders of any State Commission; and
(c) to call for the records and pass appropriate orders in any consumer dispute which is pending before, or has been decided by any State Commission where it appears to the National Commission that such Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.
Complaints may be filed with the District Forum by :-
1. the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided
2. any recognised consumer association, whether the consumer to whom goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided, is a member of such association or not
3. one or more consumers, where there are numerous consumers having the same interest with the permission of the District Forum, on behalf of or for the benefit of, all consumers so interested
4. the Central or the State Government.
On receipt of a complaint, a copy of the complaint is to be referred to the opposite party, directing him to give his version of the case within 30 days. This period may be extended by another 15 days. If the opposite party admits the allegations contained in the complaint, the complaint will be decided on the basis of materials on the record. Where the opposite party denies or disputes the allegations or omits or fails to take any action to represent his case within the time provided, the dispute will be settled in the following manner :-
I. In case of dispute relating to any goods : Where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, a sample of the goods shall be obtained from the complainant, sealed and authenticated in the manner prescribed for referring to the appropriate laboratory for the purpose of any analysis or test whichever may be necessary, so as to find out whether such goods suffer from any other defect. The appropriate laboratory' would be required to report its finding to the referring authority, i.e. the District Forum or the State Commission within a period of forty- five days from the receipt of the reference or within such extended period as may be granted by these agencies.
Appropriate laboratory means a laboratory or organisation:-
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government
(iii) any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect.
The District Forum / State Commission mav require the complainant to deposit with it such amount as may be specified towards payment of fees to the appropriate laboratory for carrying out the tests. On receipt of the report, a copy thereof is to be sent by District Forum/State Commission to the opposite party along with its own remarks.
In case any of the parties disputes the correctness of the methods of analysis/test adopted by the appropriate laboratory, the concerned party will be required to submit his objections in writing in regard to the report. After giving both the parties a reasonable opportunity of being heard and to present their objections, if any, the District Forum/Slate Commission shall pass appropriate orders.
II. In case of dispute relating to goods not requiring testing or analysis or relating to services: Where the opposite party denies or disputes the allegations contained in the complaint within the time given by the District Forum / State Commission, it shall dispose of the complaint on the basis of evidence tendered by the parties. In case of failure by the opposite party to represent his case within the prescribed time, the complaint shall be disposed of on the basis of evidence tendered by the complainant.
Limitation period for filing of complaint
The District Forum, the State Commission, or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. However, where the complainant satisfies the Distict Forum / State Commission, that he had sufficient cause for not filing the complaint within two years, such complaint may be entertained by it after recording the reasons for condoning the delay.
Powers of the Redressal Agencies
The District Forum, State Commission and the National Commission are vested with the powers of a civil court under the Code of Civil Procedure while trying a suit in respect of the following matters:-
1. the summoning and enforcing attendance of any defendant or or witness examining the witness on oath;
2. the discovery and production of any document or other material producible as evidence;
3. the reception of evidence on affidavits:
4. the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;
5. issuing of any commission for the examination of any witness; and
6. any other matter which may be prescribed.
Under the Consumer Protection Rules, 1987, the District Forum, Commission and the National Commission have the power to require any person :-
(i) To produce before, and allow to be examined by an officer of any authorities, such books of accounts, documents or commodities as may be required and to keep such book, documents etc. under its custody for the purposes of the Act;
(ii) To furnish such information which may be required for the purposes to any officer so specified.
They have the power to :-
(i) To pass written orders authorising any officer to exercise power of entry and search of any premises where these books, papers, commodities, or documents are kept if there is any ground to believe that these may be destroyed, muliliated, altered, falsified or secreted. Such authorised officer may also seize books, papers, documents or commodities if they are required for the purposes of the Act, provided the seizure is communicated to the District Forum / State Commission / National commission within 72 hours. On examination of such documents or commodities, the agency concerned may order the retention thereof or may return it to the party concerned.
(ii) to issue remedial orders to the opposite party.
(iii) to dismiss frivolous and vexatious complaints and to order the complainant to make payment of costs, not exceeding Rs. 10,000 to the opposite party.
Remedies Granted under the Act
The District Forum / State Commission / National Commission may pass one or more of the following orders to grant relief to the aggrieved consumer :-
1. to remove the defects pointed out by the appropriate laboratory from goods in question;
2. to replace the goods with new goods of similar description which shall be free from any defect;
3. to return to the complainant the price, or, as the case may be, the charges paid by the complainant;
4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party;
5. to remove the defects or deficiencies in the services in question;
6. to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
7. not to offer the hazardous goods for sale:
8. to withdraw the hazardous goods from being offered for sale:
9. to provide for adequate costs to parties.Appeals
Any person aggrieved by an order made by the Forum may prefer an appeal to the State Commission in the prescribed form and manner. Similarly, any person aggrieved by any original order of the State Commission may prefer an appeal to the National Commission in the prescribed form and manner. Any person aggrieved by any original order of the National Commission may prefer an appeal to the Supreme Court.
All such appeals are to be made within thirty days from the date of the order provided that the concerned Appellate authority may entertain an appeal after the said period of thirty days if it is satisfied that there was sufficient cause for not filling it within that period. The period of 30 days is to be computed from the date of receipt of the order by the appellant.
Where no appeal has been preferred against any of the orders of the authorities, such orders would be final. The District Forum, State Commission or National Commission may enforce respective orders as if it were a decree or order made by a Court and in the event of their inability to execute the same, they may send the order to the Court for execution by it as if it were a Court decree or order.
Penalties
Failure or omission by a trader or other person against whom a complaint is made or the complainant to comply with any order of the State Commission or the National Commission shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to 3 years, or with fine of not less than Rs. 2,000 but which may to Rs. 10000 or with both.
However, if it is satisfied that the circumstances of any case so requires, then the District Forum or the State Commission or the National Commission may impose a lower fine or a shorter term of imprisonment
ROLE OF NGOs
NGOs and societies have played a vital role in consumer movement in India. CERC was the pioneer to start the consumer movement in India. Soon many NGOs followed. These NGOs heralded a new revolution. They encouraged the Government of India to enact legislation to protect consumer rights. A list of important NGOs working in India is enclosed with this paper (Annexure I).
A Survey on consumers awareness and strategies for strengthening consumer movement
A survey was carried out to identify the strategies for strengthening consumer movement and awareness. The survey was carried out among college students, retired persons, housewives and academicians in Bikaner (Rajasthan). 25 respondents from each category were selected and interviewed through structured schedule (Annexure II).
FINDINGS AND ANALYSIS
In response to the question asked regarding awareness of consumer rights, 42% respondents were aware of consumer rights. Only 5% of them could mention all the rights. Awareness was highest among academicians and lowest among the housewives.
Only 18 percent respondents demand for cash memos while purchasing the general products, whereas 84 percent demand the same in case of consumer durables.
TABLE NO. 1
RESPONSES REGARDING SAFETY OF CONSUMERS
Product / services
Responses saying that consumers are safe (in percentage)
Responses saying that consumers are not safe (in percentage)
General FMCG an dhousehold products
91
09
Durable products
72
28
General Services
Health
68
32
Education
85
15
Transport
92
08
Insurance
99
01
Banking and finance
45
55
Environmental aspects
37
63
From the above table, it can be inferred that majority of consumers believe that they are safe in respect to general products and services except with regard to banking and finance and regarding environmental aspects. There is a need of greater measures with regard to finance industry and regarding ecological aspects.
When the respondents were asked about their awareness about consumer protection laws, 95% respondents were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
When the respondents were asked about what type of products are those for which they give sincere thought before buying them. The responses are as under:
With regard to awareness of bodies for consumer protection, 45 percent respondents were aware of district consumer forum. There is a need to spread awareness regarding these bodies and their services. Awareness was higher amongst academicians and retired persons.
TABLE NO. 2
NUMBER OF RESPONSES REGARDING WHO SHOULD SPREAD CONSUMER AWARENESS
CATEGORY NUMBER OF RESPONSES
Citizens 2%
NGOs 8%
Government departments 100%
Educational institutions 5%
All the respondents suggested that consumer awareness should be enhanced by government departments. 8 percent respondents also suggested for NGOs and 5 % suggested for educational institutions.
TABLE NO. 3
CONSUMER MOVEMENT BE STRENGTHENED BY –
CATEGORY NUMBER OF RESPONSES
Publicity 20%
Legislation 88%
Changes in course contents 11%
Advertisements 25%
* Responses exceed 100% because of multiple responses
80 percent respondents said that in case of consumer durables and white goods, they go for detailed inquiries.
When they were asked about the strengthening the consumer movement, 88 percent respondents said that it can be done through legislation. Most of the retired persons were in the favour of legislation where as students were in favour of changing the course content and advertisements.
When they were asked about deficiency in received goods, them mentioned that they did not pay much attention to the deficiencies in the goods. Most of the consumers said that they did not weigh or take measurement of good after purchasing.
92 percent respondents revealed that adequate laws exist related to environmental aspects and consumers related aspects. But all the respondents mentioned that problem lies with implementation.
81 percent consumers mentioned that the government organizations and PSUs protect the interests of consumers. But, 19 percent were of the opinion that they are misusing their monopoly, particularly in the petroleum products, and electricity department etc.
TABLE NO. 4
CONSUMER AWARENESS PROGRAMMES SHOULD BE ORGANISED AT –
LEVEL NUMBER OF RESPONSES
At schools and colleges 23%
Through media and literature 98%
Through demonstration 17%
Other programmes 02%
The majority of respondents suggested for using media for promoting consumer awareness.
TABLE NO. 5
STATUS OF CONSUMER PROTECTION IN INIDIA–
CATEGORY NUMBER OF RESPONSES (in percentage)
Worst 00
Bad 10
Fair 71
Good 19
Very Good 00
Majority of respondents have rated consumer protection in India at fair level. The mean score comes out to be .09 on five point scale (-2 to +2), which is very low.
Regarding the decision taken by the government, 78% respondents were in favour of ban on smoking at public places, 66 % were in favour of ban on tobacco products at railway station and 98% were in favour of ban on alcohalic products in the proximity of religious places. Rest of the respondents considered these measures as encroachment on consumers’ rights.
CONCLUSIONS:
Based on the study, it can be concluded that there is a need for concerted action for consumer awareness. There is also a need for strengthening the aspects relating to environmental laws. In spite of all the claims by NGOs and consumer activists, still people have lack of awareness of consumer rights. They are still hesitant even in demanding cash memos, what to talk about after sale services Very few (18 percent) respondents demand for cash memos while purchasing the general products.
There is a need to strengthen the implementation of consumer laws. However, there is awareness of consumer protection laws. When the respondents were asked about their awareness about consumer protection laws, Most of the respondents (95 percent) were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
People still expect the government to come forward and spread consumer awareness. All the respondents suggested that consumer awareness should be enhanced by government departments. 8 percent respondents also suggested for NGOs and 5 % suggested for educational institutions.
Majority of the respondents (80 percent) said that in case of consumer durables and white goods, they go for detailed inquiries.
Most of the retired persons were in the favour of legislation where as students were in favour of changing the course content and advertisements.
19 percent were of the opinion that they are misusing their monopoly, particularly in the petroleum products, and electricity department etc.
The majority of respondents suggested for using media for promoting consumer awareness.
92 percent respondents revealed that adequate laws exist related to environmental aspects and consumers related aspects. But all the respondents mentioned that problem lies with implementation. Majority of respondents have rated consumer protection in India at fair level.
REFERENCES:
Annexure I
Name & Address of consumer organizations
1. Voluntary Organization in Interest of Consumer Education(VOICE)
F-71, Lajpat Nagar II,
New Delhi
2. Consumer Care Society
1/A, 2nd Main, 36th Cross
8th Block Jayanagar,
Bangalore 560082
Bombay Telephone Users' Association
Room No. 7, Petit Municipal
High School, Municipal Compound, Waterfield Road,
Bandra West, Mumbai – 400 050.
Chandigarh Telecom District Telephone Subscribers Association (CTSA)
House No.1339, Sector 15.Punchkula, Haryana
Grahak Sahayak Gurgaon
C-153, Sushant Lok
Gurgaon 122 002
Surya Foundation
170, Sector-A, Pocket-C,
Vasant Kunj,
New Delhi - 110 070.
Citizen consumer and Civic Action Group (CAG)
Old No. 7, New No. 8, 4th Street, Venkateshwara Nagar, Adayar,
Chennai - 600 020
Consumer Guidance Society of India,
'J' Block, Azad Maidan,
Mahapalika Marg, Opp. Cama Hospital
Mumbai - 400 001.
Consumer Protection Council
501/B, 5th Floor
Shaily Navrangpura
Ahmedabad 380 009
Consumer Protection AssociationJai Somnath,
Himmat Nagar Sabarkantha,
Gujarat 3833001
Orissa Consumers' Association
Debajyoti Upobhokta Kalyan Bhavan, Biswanath Lane,
Cuttack-753 002
Annexure II
QUESTIONNAIRE
1. Are you aware of consumer rights. If yes, name them -
2.Do you insist for the cash memo while purchasing durables:
3. Is consumer safe in India with reference to following areas:
A. General FMCG and household products
B. Durable goods
C. General services (health, education, transport, insurance, banking etc.)
D. Environmental aspects
4. Are you aware of some laws on consumer protection?, if yes mention the same.
5. Are you aware of various bodies working for consumer protection, if yes, name them –
6. Who should try to spread consumer awareness
A. Citizens
B. NGOs
C. Government departments
D. Educational institutions
7. How should consumer movement be strengthened –
A. Publicity
B. Increasing awareness by by legislation
C. Change in course contents at high school level
D. Advertisement
8. Are there adequate measures for implementing environment related laws and other consumer related laws
If no – who should promote it and how –
9. Are government institution, organizations, departments and PSUs protecting consumer interests and not misusing monopoly power –
10. Is there any need for consumer awareness programmes / project, if yes, at what level it should be organized and for what type of services:
A. At school / college level
B. Through media and literature
C. Through demonstration
D. Other programmes
11. What is the status of consumer protection in India
Very Bad
Bad
Fair
Good
Very Good
12. Do you agree with the decisions by the government in the past regarding the following:
A. Ban on smoking at public places
Ban on sale of tobacco products at Railway station
Ban on sale of alcoholic products in the proximity of religious places
13. How should the sale of the fake products be stopped.
--------------
ABSTRACT
The consumer movement in India is as old as trade and commerce itself. Even in Kautilya’s Arthshastra, there are references to the concept of protection of consumers against the exploitation by trade and industry, short weighment and measurements, adulteration. There was no organized and systematic movement actually safeguarding the interests of the consumers earlier. Before Independence, consumer interests were covered mainly under laws.
It is generally believed that the consumer movement in India as of today is quite strong when it is compared with other developing countries in Asia, Africa and Latin America. India is a vast country with a very large population of which a sizeable percentage lives below the poverty line. Because of economic inequality, low level of literacy and ignorance, particularly amongst women, the level of consumer awareness may vary place to place.. Protecting the interests of consumers has, therefore, become one of the paramount concerns of the Government than ever before. Hence, policies are being designed and legislations enacted to protect the consumers’ interest and grant them the right to choice, safety, information and redressal. The paper is an attempt to evaluate the role of Government and NGOs. For determining the awareness and strategies for strengthening consumer movement, a survey was carried out amongst the consumers in Bikaner, a desert city of Rajasthan. The survey was conducted among students, housewives, academicians and retired persons. Sample size was hundred respondents. Interviews using structured questionnaire was used to collect data. Quantitative and qualitative analyisis of data was carried out.
The survey revealed that there is a need for concerted action for consumer awareness. There is also a need for strengthening the aspects relating to environmental laws. In spite of all the claims by NGOs and consumer activists, still people have lack of awareness of consumer rights. They are still hesitant even in demanding cash memos, what to talk about after sale services Very few respondents demand for cash memos while purchasing the general products.
There is a need to strengthen the implementation of consumer laws. However, there is awareness of consumer protection laws. When the respondents were asked about their awareness about consumer protection laws, Most of the respondents were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
People still expect the government to come forward and spread consumer awareness. All the respondents suggested that consumer awareness should be enhanced by government departments.
INTRODUCTION
The consumer movement in India is as old as trade and commerce itself. Even in Kautilya’s Arthshastra, there are references to the concept of protection of consumers against the exploitation by trade and industry, short weighment and measurements, adulteration. There was no organized and systematic movement actually safeguarding the interests of the consumers earlier. Before Independence, consumer interests were considered mainly under laws like the Indian Penal Code, Agricultural Production Grading and Marketing Act 1937, and Drugs and Cosmetics Act, 1940. Even though different parts of India had varying degrees of awareness, in general the level of awareness was low.
It is generally believed that the consumer movement in India as of today is quite strong when it is compared with other developing countries in Asia, Africa and Latin America. India is a vast country with a very large population of which a sizeable percentage lives below the poverty line. Because of economic inequality, low level of literacy and ignorance, particularly amongst women, the level of consumer awareness is not too high and, therefore, the consumers are not able to assert and protect themselves. They easily get exploited by trade and industry and service providers. With the liberalisation process which started in 1991 the entire economic scenario is undergoing a complete change from a government-driven economy to a market-driven economy. Protecting the interests of consumers has, therefore, become one of the paramount concerns of the Government than ever before. Hence, policies are being designed and legislations enacted to protect the consumers’ interest and grant them the right to choice, safety, information and redressal. The Right to information bill has been passed by some legislative assemblies such as Rajasthan and Madhya Pradesh.
STATUS OF CONSUMER PROTECTION IN INDIA
Consumer Protection Act, 1986
One of the most important milestones in the consumer movement in the country has been the enactment of the Consumer Protection Act, 1986 to better protect the interest of the consumers. This has revolutionised consumer rights. It is one of the most progressive and comprehensive pieces of socio-benevolent legislation covering all goods and services. The Act provides for a separate three-tier quasi-judicial consumer dispute redressal machinery, popularly known as consumer courts, at the national, state and district levels to provide simple, speedy and free redressal against consumers’ complaints. Filing of a simple complaint on plain paper with the details of the case with supporting documents seeking relief or compensation is enough and it is not obligatory to engage a lawyer. According to the objects and purposes of the Consumer Protection Act, these quasi-judicial bodies observe the principles of natural justice while adjudicating consumer complaints against defective goods, deficient services and restrictive and unfair trade practices through summary trials. The Act applies to all goods and services and covers all sectors, whether private, public or cooperative.
Amendments
The Act was amended in 1991 mainly to incorporate provisions for the quorum of District Forum, appointing persons to preside over State Commission/District Forum in case of absence of the President to enable the court function uninterruptedly. In 1993 the Act was again amended exhaustively to make it more effective and purposeful.
The Government has formulated comprehensive proposals for amending the Consumer Protection Act mainly based on the recommendations of the Working Group and Expert Group set up for the purpose and the wide-ranging consultations its had with the representatives of consumer interests, presidents of the national and state commissions and Central Government Ministries and Departments. These amendments are mainly aimed at facilitating quicker disposal of complaints, enhancing the capability of redressal agencies, strengthening them with more powers, streamlining the procedures and widening the scope of the Act to make it more effective to protect the consumers’ interest .
The Consumer Protection (Amendment) Bill, 2001 introduced in the Rajya Sabha on 26th April, 2001 among other things addresses the issues of quicker disposal of complaints, widening the scope of the Act, strengthening the Consumer Courts, streamlining the procedure and a proposal to strengthen the consumer movement. It is also proposed to establish a consumer protection council in every district in order to strengthen the consumer movement at the grass root level.
Enactment of the Amendment Bill will not only further strengthen the consumer movement in the country but also help the large number of consumers in securing speedy and effective redressal of their complaints.
Government’s Role
A separate Department of Consumer Affairs was created in 1997 to act as the nodal outfit in the Central Government for promoting and protecting the welfare of consumers. It seeks to do this in various ways such as ensuring availability of essential commodities at reasonable prices including monitoring of prices, formulating standards of goods and services, regulation of weighing and measuring instruments and prepacked commodities and providing a legislative framework for safeguarding consumers’ interests and establishment of a machinery for redressal of consumer complaints.
To meet these objectives the Department has been undertaking various measures involving all concerned to strengthen the consumer movement in the country. Some of the important measures being taken to strengthen the consumer movement include initiating multimedia publicity programmes to educate the consumers, providing financial assistance through consumer welfare fund to the NGOs and State Governments to generate consumer awareness, setting up of district information centres to guide the public, national awards on consumer protection to encourage outstanding work by women and youth, observing national and World Consumer Rights Day to remind the consumers to be vigilant, interactions with various interests through Central and State Consumer Protection Council to promote and protect the rights of the consumers, formulation of citizens’ charters containing their entitlements to public services, standards of performance and redressal of grievances for providing an efficient and responsive administration.
The success of the consumer movement mainly depends upon the level of consumer awareness around the country. The Government can only be playing the role of a facilitator or catalyst. The growth of consumer movement is a voluntary effort involving the participation of one and all. Only alert consumers can protect themselves and the society.
STATUTORY CONSUMER PROTECTION BODIES
Consumer Protection Councils
The interests of consumers are enforced through various authorities set up under the CPA. The CPA provides for the setting up of the Central Consumer Protection Council, the State Consumer Protection Council and the District Forum.
Central Consumer Protection Council
The Central Government has set up the Central Consumer Protection Council which consists of the following members :-
(a) The Minister in charge of Consumer Affairs in the Central Government who is its Chairman, and
(b) Other official and non-official members representing varied interests
The Central council consists of 150 members and its term is 3 years. The Council meets as and when necessary but at least one meeting is held in a year.
State Consumer Protection Council
The State Council consists of :-
(a) The Minister in charge of Consumer Affairs in the State Government who is its Chairman, and
(b) Other official and non-official members representing varied interests
The State Council meets as and when necessary but not less than two meetings must be held every year.
Redressal Machinery under the Act
The CPA provides for a 3 tier approach in resolving consumer disputes. The District Forum has jurisdiction to entertain complaints where the value of goods / services complained against and the compensation claimed is less than Rs. 5 lakhs, the State Commission for claims exceeding Rs. 5 lakhs but not exceeding Rs. 20 lakhs and the National Commission for claims exceeding Rs. 20 lakhs.
District Forum
Under the CPA, the State Government has to set up a district Forum in each district of the State. The overnment may establish more than one District Forum in a district if it deems fit. Each District Forum consists of :-
(a) a person who is, or who has been, or is qualified to be, a District Judge who shall be its President
(b) two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.
Appointments to the State Commission shall be made by the State Goverrnment on the recommendation of a Selection Committee consisting of the President of the State Committee, the Secretary - Law Department of the State and the secretary in charge of Consumer Affairs
Every member of the District Forum holds office for 5 years or upto the age of 65 years, whichever is earlier and is not eligilbe for re-appointment. A member may resign by giving notice in writing to the State Government whereupon the vacancy will be filled up by the State Government.
The District Forum can entertain complaints where the value of goods or services and the compensation, if any, claimed is less than rupees 20 lakhs. However, in addition to jurisdiction over consumer goods services valued upto Rs. 20 lakhs, the District Forum also may pass orders against traders indulging in unfair trade practices, sale of defective goods or render deficient services provided the turnover of goods or value of services does not exceed rupees 20 lakhs.
A complaint shall be instituted in the District Forum within the local limits of whose jurisdiction -
(a) the opposite party or the defendant actually and voluntarily resides or carries on business or has a branch office or personally works for gain at the time of institution of the complaint; or
(b) any one of the opposite parties (where there are more than one) actually and voluntarily resides or carries on business or has a branch office or personally works for gain, at the time of institution of the complaint provided that the other opposite party/parties acquiescence in such institution or the permission of the Forum is obtained in respect of such opposite parties; or
(c) the cause of action arises, wholly or in part.
State Commission
The Act provides for the establishment of the State Consumer Disputes Redressal Commission by the State Government in the State by notification. Each State Commission shall consist of:-
(a) a person who is or has been a judge of a High Court appointed by State Government (in consultation with the Chief Justice of the High Court ) who shall be its President;
(b) two other members who shall be persons of ability, integrity, and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom must be a woman.
Every appointment made under this hall be made by the State Government on the recommendation of a Selection Committee consisting of the President of the State Commission, Secretary -Law Department of the State and Secretary in charge of Consumer Affairs in the State.
Every member of the District Forum holds office for 5 years or upto the age of 65 years, whichever is earlier and is not eligilbe for re-appointment. A member may resign by giving notice in writing to the State Government whereupon the vacancy will be filled up by the State Government.
The State Commission can entertain complaints where the value of goods or services and the compensation, if any claimed exceed Rs. 20 lakhs;
The State Commission also has the jurisdiction to entertain appeal against the orders of any District Forum within the State
The State Commission also has the power to call for the records and appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State if it appears that such District Forum has exercised any power not vested in it by law or has failed to exercise a power rightfully vested in it by law or has acted illegally or with material irregularity.
National Commission
The Central Government provides for the establishment of the National Consumer Disputes Redressal Commission The National Commission shall consist of :-
(a) a person who is or has been a judge of the Supreme Court, to be appoint by the Central Government (in consultation with the Chief Justice of India ) who be its President;
(b) four other members who shall be persons of ability, integrity and standing and have adequate knolwiedge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman
Appointments shall be by the Central Government on the recommendation of a Selection Committee consisting of a Judge of the Supreme Court to be nominated by the Chief Justice of India, the Secretary in the Department of Legal Affairs and the Secretary in charge of Consumer Affairs in the Government of India.
Every member of the National Commission shall hold office for a term of five years or upto seventy years of age, whichever is earlier and shall not be eligible for reappointment.
The National Commission shall have jurisdiction :-
a. to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceeds rupees twenty lakhs:
b. to entertain appeals against the orders of any State Commission; and
(c) to call for the records and pass appropriate orders in any consumer dispute which is pending before, or has been decided by any State Commission where it appears to the National Commission that such Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.
Complaints may be filed with the District Forum by :-
1. the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided
2. any recognised consumer association, whether the consumer to whom goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided, is a member of such association or not
3. one or more consumers, where there are numerous consumers having the same interest with the permission of the District Forum, on behalf of or for the benefit of, all consumers so interested
4. the Central or the State Government.
On receipt of a complaint, a copy of the complaint is to be referred to the opposite party, directing him to give his version of the case within 30 days. This period may be extended by another 15 days. If the opposite party admits the allegations contained in the complaint, the complaint will be decided on the basis of materials on the record. Where the opposite party denies or disputes the allegations or omits or fails to take any action to represent his case within the time provided, the dispute will be settled in the following manner :-
I. In case of dispute relating to any goods : Where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, a sample of the goods shall be obtained from the complainant, sealed and authenticated in the manner prescribed for referring to the appropriate laboratory for the purpose of any analysis or test whichever may be necessary, so as to find out whether such goods suffer from any other defect. The appropriate laboratory' would be required to report its finding to the referring authority, i.e. the District Forum or the State Commission within a period of forty- five days from the receipt of the reference or within such extended period as may be granted by these agencies.
Appropriate laboratory means a laboratory or organisation:-
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government
(iii) any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect.
The District Forum / State Commission mav require the complainant to deposit with it such amount as may be specified towards payment of fees to the appropriate laboratory for carrying out the tests. On receipt of the report, a copy thereof is to be sent by District Forum/State Commission to the opposite party along with its own remarks.
In case any of the parties disputes the correctness of the methods of analysis/test adopted by the appropriate laboratory, the concerned party will be required to submit his objections in writing in regard to the report. After giving both the parties a reasonable opportunity of being heard and to present their objections, if any, the District Forum/Slate Commission shall pass appropriate orders.
II. In case of dispute relating to goods not requiring testing or analysis or relating to services: Where the opposite party denies or disputes the allegations contained in the complaint within the time given by the District Forum / State Commission, it shall dispose of the complaint on the basis of evidence tendered by the parties. In case of failure by the opposite party to represent his case within the prescribed time, the complaint shall be disposed of on the basis of evidence tendered by the complainant.
Limitation period for filing of complaint
The District Forum, the State Commission, or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. However, where the complainant satisfies the Distict Forum / State Commission, that he had sufficient cause for not filing the complaint within two years, such complaint may be entertained by it after recording the reasons for condoning the delay.
Powers of the Redressal Agencies
The District Forum, State Commission and the National Commission are vested with the powers of a civil court under the Code of Civil Procedure while trying a suit in respect of the following matters:-
1. the summoning and enforcing attendance of any defendant or or witness examining the witness on oath;
2. the discovery and production of any document or other material producible as evidence;
3. the reception of evidence on affidavits:
4. the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;
5. issuing of any commission for the examination of any witness; and
6. any other matter which may be prescribed.
Under the Consumer Protection Rules, 1987, the District Forum, Commission and the National Commission have the power to require any person :-
(i) To produce before, and allow to be examined by an officer of any authorities, such books of accounts, documents or commodities as may be required and to keep such book, documents etc. under its custody for the purposes of the Act;
(ii) To furnish such information which may be required for the purposes to any officer so specified.
They have the power to :-
(i) To pass written orders authorising any officer to exercise power of entry and search of any premises where these books, papers, commodities, or documents are kept if there is any ground to believe that these may be destroyed, muliliated, altered, falsified or secreted. Such authorised officer may also seize books, papers, documents or commodities if they are required for the purposes of the Act, provided the seizure is communicated to the District Forum / State Commission / National commission within 72 hours. On examination of such documents or commodities, the agency concerned may order the retention thereof or may return it to the party concerned.
(ii) to issue remedial orders to the opposite party.
(iii) to dismiss frivolous and vexatious complaints and to order the complainant to make payment of costs, not exceeding Rs. 10,000 to the opposite party.
Remedies Granted under the Act
The District Forum / State Commission / National Commission may pass one or more of the following orders to grant relief to the aggrieved consumer :-
1. to remove the defects pointed out by the appropriate laboratory from goods in question;
2. to replace the goods with new goods of similar description which shall be free from any defect;
3. to return to the complainant the price, or, as the case may be, the charges paid by the complainant;
4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party;
5. to remove the defects or deficiencies in the services in question;
6. to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
7. not to offer the hazardous goods for sale:
8. to withdraw the hazardous goods from being offered for sale:
9. to provide for adequate costs to parties.Appeals
Any person aggrieved by an order made by the Forum may prefer an appeal to the State Commission in the prescribed form and manner. Similarly, any person aggrieved by any original order of the State Commission may prefer an appeal to the National Commission in the prescribed form and manner. Any person aggrieved by any original order of the National Commission may prefer an appeal to the Supreme Court.
All such appeals are to be made within thirty days from the date of the order provided that the concerned Appellate authority may entertain an appeal after the said period of thirty days if it is satisfied that there was sufficient cause for not filling it within that period. The period of 30 days is to be computed from the date of receipt of the order by the appellant.
Where no appeal has been preferred against any of the orders of the authorities, such orders would be final. The District Forum, State Commission or National Commission may enforce respective orders as if it were a decree or order made by a Court and in the event of their inability to execute the same, they may send the order to the Court for execution by it as if it were a Court decree or order.
Penalties
Failure or omission by a trader or other person against whom a complaint is made or the complainant to comply with any order of the State Commission or the National Commission shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to 3 years, or with fine of not less than Rs. 2,000 but which may to Rs. 10000 or with both.
However, if it is satisfied that the circumstances of any case so requires, then the District Forum or the State Commission or the National Commission may impose a lower fine or a shorter term of imprisonment
ROLE OF NGOs
NGOs and societies have played a vital role in consumer movement in India. CERC was the pioneer to start the consumer movement in India. Soon many NGOs followed. These NGOs heralded a new revolution. They encouraged the Government of India to enact legislation to protect consumer rights. A list of important NGOs working in India is enclosed with this paper (Annexure I).
A Survey on consumers awareness and strategies for strengthening consumer movement
A survey was carried out to identify the strategies for strengthening consumer movement and awareness. The survey was carried out among college students, retired persons, housewives and academicians in Bikaner (Rajasthan). 25 respondents from each category were selected and interviewed through structured schedule (Annexure II).
FINDINGS AND ANALYSIS
In response to the question asked regarding awareness of consumer rights, 42% respondents were aware of consumer rights. Only 5% of them could mention all the rights. Awareness was highest among academicians and lowest among the housewives.
Only 18 percent respondents demand for cash memos while purchasing the general products, whereas 84 percent demand the same in case of consumer durables.
TABLE NO. 1
RESPONSES REGARDING SAFETY OF CONSUMERS
Product / services
Responses saying that consumers are safe (in percentage)
Responses saying that consumers are not safe (in percentage)
General FMCG an dhousehold products
91
09
Durable products
72
28
General Services
Health
68
32
Education
85
15
Transport
92
08
Insurance
99
01
Banking and finance
45
55
Environmental aspects
37
63
From the above table, it can be inferred that majority of consumers believe that they are safe in respect to general products and services except with regard to banking and finance and regarding environmental aspects. There is a need of greater measures with regard to finance industry and regarding ecological aspects.
When the respondents were asked about their awareness about consumer protection laws, 95% respondents were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
When the respondents were asked about what type of products are those for which they give sincere thought before buying them. The responses are as under:
With regard to awareness of bodies for consumer protection, 45 percent respondents were aware of district consumer forum. There is a need to spread awareness regarding these bodies and their services. Awareness was higher amongst academicians and retired persons.
TABLE NO. 2
NUMBER OF RESPONSES REGARDING WHO SHOULD SPREAD CONSUMER AWARENESS
CATEGORY NUMBER OF RESPONSES
Citizens 2%
NGOs 8%
Government departments 100%
Educational institutions 5%
All the respondents suggested that consumer awareness should be enhanced by government departments. 8 percent respondents also suggested for NGOs and 5 % suggested for educational institutions.
TABLE NO. 3
CONSUMER MOVEMENT BE STRENGTHENED BY –
CATEGORY NUMBER OF RESPONSES
Publicity 20%
Legislation 88%
Changes in course contents 11%
Advertisements 25%
* Responses exceed 100% because of multiple responses
80 percent respondents said that in case of consumer durables and white goods, they go for detailed inquiries.
When they were asked about the strengthening the consumer movement, 88 percent respondents said that it can be done through legislation. Most of the retired persons were in the favour of legislation where as students were in favour of changing the course content and advertisements.
When they were asked about deficiency in received goods, them mentioned that they did not pay much attention to the deficiencies in the goods. Most of the consumers said that they did not weigh or take measurement of good after purchasing.
92 percent respondents revealed that adequate laws exist related to environmental aspects and consumers related aspects. But all the respondents mentioned that problem lies with implementation.
81 percent consumers mentioned that the government organizations and PSUs protect the interests of consumers. But, 19 percent were of the opinion that they are misusing their monopoly, particularly in the petroleum products, and electricity department etc.
TABLE NO. 4
CONSUMER AWARENESS PROGRAMMES SHOULD BE ORGANISED AT –
LEVEL NUMBER OF RESPONSES
At schools and colleges 23%
Through media and literature 98%
Through demonstration 17%
Other programmes 02%
The majority of respondents suggested for using media for promoting consumer awareness.
TABLE NO. 5
STATUS OF CONSUMER PROTECTION IN INIDIA–
CATEGORY NUMBER OF RESPONSES (in percentage)
Worst 00
Bad 10
Fair 71
Good 19
Very Good 00
Majority of respondents have rated consumer protection in India at fair level. The mean score comes out to be .09 on five point scale (-2 to +2), which is very low.
Regarding the decision taken by the government, 78% respondents were in favour of ban on smoking at public places, 66 % were in favour of ban on tobacco products at railway station and 98% were in favour of ban on alcohalic products in the proximity of religious places. Rest of the respondents considered these measures as encroachment on consumers’ rights.
CONCLUSIONS:
Based on the study, it can be concluded that there is a need for concerted action for consumer awareness. There is also a need for strengthening the aspects relating to environmental laws. In spite of all the claims by NGOs and consumer activists, still people have lack of awareness of consumer rights. They are still hesitant even in demanding cash memos, what to talk about after sale services Very few (18 percent) respondents demand for cash memos while purchasing the general products.
There is a need to strengthen the implementation of consumer laws. However, there is awareness of consumer protection laws. When the respondents were asked about their awareness about consumer protection laws, Most of the respondents (95 percent) were aware about consumer protection laws. They mentioned that they knew about consumer protection act.
People still expect the government to come forward and spread consumer awareness. All the respondents suggested that consumer awareness should be enhanced by government departments. 8 percent respondents also suggested for NGOs and 5 % suggested for educational institutions.
Majority of the respondents (80 percent) said that in case of consumer durables and white goods, they go for detailed inquiries.
Most of the retired persons were in the favour of legislation where as students were in favour of changing the course content and advertisements.
19 percent were of the opinion that they are misusing their monopoly, particularly in the petroleum products, and electricity department etc.
The majority of respondents suggested for using media for promoting consumer awareness.
92 percent respondents revealed that adequate laws exist related to environmental aspects and consumers related aspects. But all the respondents mentioned that problem lies with implementation. Majority of respondents have rated consumer protection in India at fair level.
REFERENCES:
Annexure I
Name & Address of consumer organizations
1. Voluntary Organization in Interest of Consumer Education(VOICE)
F-71, Lajpat Nagar II,
New Delhi
2. Consumer Care Society
1/A, 2nd Main, 36th Cross
8th Block Jayanagar,
Bangalore 560082
Bombay Telephone Users' Association
Room No. 7, Petit Municipal
High School, Municipal Compound, Waterfield Road,
Bandra West, Mumbai – 400 050.
Chandigarh Telecom District Telephone Subscribers Association (CTSA)
House No.1339, Sector 15.Punchkula, Haryana
Grahak Sahayak Gurgaon
C-153, Sushant Lok
Gurgaon 122 002
Surya Foundation
170, Sector-A, Pocket-C,
Vasant Kunj,
New Delhi - 110 070.
Citizen consumer and Civic Action Group (CAG)
Old No. 7, New No. 8, 4th Street, Venkateshwara Nagar, Adayar,
Chennai - 600 020
Consumer Guidance Society of India,
'J' Block, Azad Maidan,
Mahapalika Marg, Opp. Cama Hospital
Mumbai - 400 001.
Consumer Protection Council
501/B, 5th Floor
Shaily Navrangpura
Ahmedabad 380 009
Consumer Protection AssociationJai Somnath,
Himmat Nagar Sabarkantha,
Gujarat 3833001
Orissa Consumers' Association
Debajyoti Upobhokta Kalyan Bhavan, Biswanath Lane,
Cuttack-753 002
Annexure II
QUESTIONNAIRE
1. Are you aware of consumer rights. If yes, name them -
2.Do you insist for the cash memo while purchasing durables:
3. Is consumer safe in India with reference to following areas:
A. General FMCG and household products
B. Durable goods
C. General services (health, education, transport, insurance, banking etc.)
D. Environmental aspects
4. Are you aware of some laws on consumer protection?, if yes mention the same.
5. Are you aware of various bodies working for consumer protection, if yes, name them –
6. Who should try to spread consumer awareness
A. Citizens
B. NGOs
C. Government departments
D. Educational institutions
7. How should consumer movement be strengthened –
A. Publicity
B. Increasing awareness by by legislation
C. Change in course contents at high school level
D. Advertisement
8. Are there adequate measures for implementing environment related laws and other consumer related laws
If no – who should promote it and how –
9. Are government institution, organizations, departments and PSUs protecting consumer interests and not misusing monopoly power –
10. Is there any need for consumer awareness programmes / project, if yes, at what level it should be organized and for what type of services:
A. At school / college level
B. Through media and literature
C. Through demonstration
D. Other programmes
11. What is the status of consumer protection in India
Very Bad
Bad
Fair
Good
Very Good
12. Do you agree with the decisions by the government in the past regarding the following:
A. Ban on smoking at public places
Ban on sale of tobacco products at Railway station
Ban on sale of alcoholic products in the proximity of religious places
13. How should the sale of the fake products be stopped.
--------------
Saturday, September 27, 2008
REPORT ON MULTILEVEL MARKETING
I have pleasure in sharing a report prepared by Sachin under my guidance. I hope you will keep preparing good work and sharing the knowledge that you have.
trilok
CONTENTS
Multi Level Marketing: A Case Study
Page
· PREFACE i-ii
· ACKNOWLEDGEMENT iii
· CONTENTS iv
· OBJECTIVES v
· RESEARCH METHODOLOGY vi-vii
Chapter: 1 Multi Level Marketing 1-10
· Meaning and definition of Marketing
· Types Of Marketing
· Multi Level Marketing
Chapter: 2 Case Study 11-16
· What is Case Study?
· Types of Case Studies
· The Case Study as a Research Method
Chapter: 3 Golden Arrow: The World of Success 17-21
· What is GASM?
· Vision & Mission
· Hierarchy of GASM
· Legal Aspects of GASM
Chapter: 4 Golden Arrow: Business Plan 22-27
· 11 Types Of Income:
1) Direct Sponsorship 2) Spill Incentive
3) Power of 2 4) Aapke Dus
5) Hamare Dus 6) Power of Repurchase:
7) Repurchase Companion: 8) Recognitions
9) Rewards 10) GA FORCE
11) Bonus Buddy
Chapter: 5 Golden Arrow: Product Range & Joining Options 28-36
Chapter: 6 Comparison of GASM Vs. MLM Companies 37-45
Chapter: 7 Findings & Suggestions 46-47
Bibliography: Books & Websites 48-49
OBJECTIVES
The scheme and syllabus of MBA, VMOU (KOTA) is so designed that it incorporates practical experience with theoretical inputs by providing the candidate with an opportunity to interact with real life situation. As my field is marketing I would like to take such a project in which I can practically study ins and outs of marketing I deem it proper to select Multilevel Marketing: A Case Study as my Project Work.
In present era MLM Companies are getting prominence my objective is to know the depth, prospects, and reasons for success and failure etc. of an MLM company. At present Multilevel Marketing is in its boom and catching attraction of Youths and Corporate houses.
So I have chosen Golden Arrow Sales and Marketing Pvt. Ltd. for my detailed study and tried to achieve my objective. I believe that will help me in learning techniques to solve organizational problems.
RESEARCH METHODOLOGY
Types of Research:
1) Research Design Descriptive Research.
2) Type of Universe Management Employees and Customers of GASM
3) Data Type Primary as well Secondary Data.
4) Research Instrument Structured schedule and Computer with Internet.
5) Contact Method Personal Interview & Internet Connectivity
6) Method of Data-Collection Survey for Primary Data & Internet Surfing for Secondary Data
Pilot Survey:
A schedule was prepared consisting of questions from directors, distributors and customers. The questions were both open and close-ended. Respondents answered most of the questions but certain questions were unanswered for pilot survey and certain new questions were also generated.
Final Schedule:
Final schedule was restructured after omitting the questions, which were not answered during the pilot survey and few question were added which came during the pilot survey. The schedule was constructed to obtain the responses in view of relevance to the services and the level of satisfaction among the customers. The final schedule was easy to understand and easy to answer by the respondent to fulfill the objectives of the research.
Limitations:
Though tried to take utmost care, to make the research work exhaustive, still I could not rule out the presence of few unintentional and unavoidable flows in the research-
1) Indifference and lack of interest disposed by few respondents leading to unauthentic responses.
2) This research is based on personal interview so there may be chance of biasness.
Research methodology mainly used in my project work was interview and questionnaire based surveys. I did it honestly and tried to make my research work exhaustive.
Chapter: 1
Multi Level Marketing
Meaning and definition of Marketing
Marketing is typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for a company’s products, but this is too limited a view of the tasks marketers performs.
Marketing has often been described as “the art of selling products,” but people are surprised when they hear that the most important part of marketing is not selling! Selling is only the tip of the marketing iceberg.
Example: When Sony designed its Walkman, when Nintendo designed a superior video game, and when Toyata introduced its Lexus automobile, these manufacturers were swamped with orders because they had designed the “right” product based on careful marketing homework.
In the words of Kotler: -
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
In the words of Bartles: -
Marketing is the process whereby society, to supply its consumption needs, evolves distributive systems composed of participants, who, interacting under constraints- technical (economic) and ethics (social) – create the transactions or flows which resolve market separations and result in exchange and consumption.
What I feel that the definition adopted by the American Marketing Association is one that suits the best. According to the association the definition is as follows:
“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization objectives.”
The Philosophy of Marketing and the Marketing Concept
The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or her needs, the focal point of all business activities. It is driven by senior managers, passionate about delighting their customers.
Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.
Drucker
This customer focused philosophy is known as the ‘marketing concept’. The marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.
Barwell
Marketing Mix
The Marketing Mix is the set of marketing tools the firm uses to pursue its marketing objetives in the target market.
McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion. Marketing Mix decision must be made for influencing the trade channels as well as the final consumers.
This figure shows the company preparing an offering mix of products, services and prices, and utilizing a promotion mix of sales promotion, advertising, sales force, public relations, direct mail, telemarketing and Internet to reach the trade channels and the target customers.
The firm can change its price, sales force size, and advertising expenditures in the short run. It can develop new products and modify its distribution channels only in the long run. Thus the firm typically makes fewer period-to-period marketing-mix changes in the short run than the number of marketing-mix decision variables might suggest.
The four Ps represent the seller’s view of the marketing tools available for influencing buyers. From a buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs.
Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
Winning companies will be those that can meet customer needs economically and conveniently and with effective communication.
Types Of Marketing
There are 3 main types of marketing: undifferentiated marketing, differentiated marketing, and concentrated marketing.
Undifferentiated marketing assumes everyone is the same and aims a particular product at everyone. Advantages: easy to plan, doesn't miss anyone. Disadvantages: can be wasteful, ignores segmentation, can lead to disappointing sales.
Differentiated marketing aims the product at specific segments in the market. The company may be trying to sell exactly the same product to different segments but it will change its promotional methods and the image it creates. Advantages: separate mix can be developed for each segment; different markets can be easily identified. Disadvantages: Can be costly, message may by-pass some customers.
Concentrated marketing is when the message is aimed at just one small market. Advantages: Small firms can concentrate their marketing, allows a specific mix to be developed. Disadvantages: Ignores other areas of the market, can cause problems in future as may make it more difficult for company to expand.
Usually there are three types of marketing but a new dimension of marketing is introduced commonly known as Multi level Marketing. This involves the concept of marketing to serve Product or services directly from Company to customer. Advantage: cost reduction as there is zero level distribution channels between company and customer. Disadvantage: Socially not accepted in India. Another reason is that untrained people are marketing in this system and they can’t be forced to undergo the training procedure, as they are not bounded by the rules.
Multi Level Marketing
History of MLM:
Multi Level Marketing business is also known as Network Marketing Business but there are few differences, still both marketing systems use the same process of business.
CALIFORNIA PERFUME CORPORATION started MLM business in the year (1888) very well known as C.P.C. It is now more than 100 years; yes this is the 119th year running. In India it was launched in the year 1997 by a famous group of Industries and later many foreign companies started their MLM business here in India. Thanks to those companies as they were the spreader of this system and they sowed the awareness of this MLM industry in Indian people.
The people of India are very much aware of this business nowadays, that this is a business where by purchasing any of the company’s product from the package / a fixed product range / a single product pack acquires an optional business opportunity where they can earn huge & secure their future by investing Zero (0) Amount. Without any Infrastructure Maintenance, Investments, paperwork.
Multi Level Marketing (MLM) was the fastest growing sector of the direct selling industry worldwide. In 1988, the total revenue generated by MLM was $ 12 billion, which doubled to $ 24 billion by 1998. The direct-marketing industry in India was about Rs. 6 billion in 1999. This was a growth of 62% over the previous year.
In the pre-liberalization era, network marketing in India was usually in the form of various chit fund companies like Sahara India. These had a system of agents, who simultaneously mobilized deposits and appointed sub-agents for further deposit mobilization. Companies such as Eureka Forbes and Cease-Fire pioneered the direct selling system in the country with a sales force that was trained to make direct house-to-house sales.
What’s MLM?
Multi-Level marketing, that’s what MLM stands for, is also called network marketing. In this type of marketing, the companies don’t sell their products directly in the open market. Instead they get the public to register as distributor in their company by paying a fee and sell the products. The members in turn introduce others to the company and earn commission when these new members introduce others to the company. These new members are known as down lines for the particular member.
Multi-Level Marketing: CONCEPT
The idea behind multi-level marketing (MLM) is simple. One can do what most businesses do: either sell it directly to consumers or find others who will buy product from him and sell it to other people. MLM require that sponsor people not only to buy and sell product, but who will also sponsor people who will not only buy and sell product but also sponsor new people. Everyone sponsoring people to compete with them but MLM magic convince that it is reasonable to sponsor competitors because they won't really be competitors since everyone will get a cut of their profits. This will take our mind off. This may seem unusual to traditional business people. It seems wonder that the fact that no matter how big our town or market, it is finite. The well will go dry soon enough. There will always be some distributors who will make money in an MLM company.
Multi-level marketing is system of marketing which puts more emphasis upon the sponsoring of distributors than on the selling of products. As such, it is intrinsically flawed. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all.
Comparison between MLM and Traditional Marketing:
Advantages of MLM:
· Cost Reduction: There is no distribution channel in between company to customer. So company has lot of cost saving and able to provide many other benefits to customer.
· Earning through Purchase: Company is providing some point value to customer for every repurchase made by him and through these point value he earn a lot.
· Increment in Social Network: This concept involves very high growth in building of network because basic concept behind MLM is Network marketing.
· Endless Scope: The industry is never saturated and there is always scope for more. Networking businesses work like an office grapevine, where a casual recommendation spreads across a network. The benefits trickle as soon as the word spreads.
· Flexibility: Network marketing allows you the flexibility of working part time or full time and requires nothing more than your interest and desire to explore.
· Common Goal: It works with an ever-increasing number of people from varied backgrounds and locations, all striving to achieve a common goal: the sale of products.
· Low Cost Project: The key advantage of this type of business is that it allows taking chances without costing much. One can give it a try and see if it works fine for him or not. The exit barriers just like the entry costs are negligible. The best part is the residual income and the tax benefits offered by network marketing businesses. One can continue to earn even after quitting.
Limitations of MLM:
· Lack of Understanding of Customer Profile: MLM plans solely concentrate on the financial aspect of the business. They don’t take into account the nature of the person signing up for membership. An introvert can never make it big in this business as this business entails establishing relationships with prospective members. Moreover, money isn’t the sole motivating factor for many people. But the business focuses on money.
· Products not Customized to Local Markets: Most of the MLM companies sell products that are meant for the native countries. These products may not be suitable for local markets. Amway’s car cleaner and window cleaner, for instance, aren’t suitable for the Indian scenario, as labor in India is cheaper than in the US. Hiring a worker to carry out the same task works out cheaper.
I would like to say that network marketing is literally the last bastion of free time enterprise a system in which common people can invest a small sum and through sheer tenacity and perseverance market viable products to the circle of influence, build team to maximize sales and in due time rise to staggering level of financial and time freedom.
Chapter: 2
Case Study
What is Case Study?
Case Study refers to the collection and presentation of detailed information about a particular participant or small group, frequently including the accounts of subjects themselves. A form of qualitative descriptive research, the case study looks intensely at an individual or small participant pool, drawing conclusions only about that participant or group and only in that specific context. Researchers do not focus on the discovery of a universal, generalizable truth, nor do they typically look for cause-effect relationships; instead, emphasis is placed on exploration and description
Types of Case Studies
Under the more generalized category of case study exist several subdivisions, each of which is custom selected for use depending upon the goals and/or objectives of the investigator. These types of case study include the following:
Illustrative Case Studies
These are primarily descriptive studies. They typically utilize one or two instances of an event to show what a situation is like. Illustrative case studies serve primarily to make the unfamiliar familiar and to give readers a common language about the topic in question.
Exploratory (or Pilot) Case Studies
These are condensed case studies performed before implementing a large-scale investigation. Their basic function is to help identify questions and select types of measurement prior to the main investigation. The primary pitfall of this type of study is that initial findings may seem convincing enough to be released prematurely as conclusions.
Cumulative Case Studies
These serve to aggregate information from several sites collected at different times. The idea behind these studies is the collection of past studies will allow for greater generalization without additional cost or time being expended on new, possibly repetitive studies.
Critical Instance Case Studies
These examine one or more sites for either the purpose of examining a situation of unique interest with little or no interest in generalizability, or to call into question or challenge a highly generalized or universal assertion. This method is useful for answering cause and effect questions.
The Case Study as a Research Method
Introduction
Case study research excels at bringing us to an understanding of a complex issue or object and can extend experience or add strength to what is already known through previous research. Case studies emphasize detailed contextual analysis of a limited number of events or conditions and their relationships. Researchers have used the case study research method for many years across a variety of disciplines. Social scientists, in particular, have made wide use of this qualitative research method to examine contemporary real-life situations and provide the basis for the application of ideas and extension of methods. Researcher Robert K. Yin defines the case study research method as an empirical inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used (Yin, 1984, p. 23).
Critics of the case study method believe that the study of a small number of cases can offer no grounds for establishing reliability or generality of findings. Others feel that the intense exposure to study of the case biases the findings. Some dismiss case study research as useful only as an exploratory tool. Yet researchers continue to use the case study research method with success in carefully planned and crafted studies of real-life situations, issues, and problems. Reports on case studies from many disciplines are widely available in the literature.
Many well-known case study researchers such as Robert E. Stake, Helen Simons, and Robert K. Yin have written about case study research and suggested techniques for organizing and conducting the research successfully. This introduction to case study research draws upon their work and proposes six steps that should be used:
Determine and define the research questions
Select the cases and determine data gathering and analysis techniques
Prepare to collect the data
Collect data in the field
Evaluate and analyze the data
Prepare the report
Step1. Determine and Define the Research Questions
The first step in case study research is to establish a firm research focus to which the researcher can refer over the course of study of a complex phenomenon or object. The researcher establishes the focus of the study by forming questions about the situation or problem to be studied and determining a purpose for the study. Case study research generally answers one or more questions, which begin with "how" or "why." To assist in targeting and formulating the questions, researchers conduct a literature review.
Step2. Select the Cases and Determine Data Gathering and Analysis Techniques
When using multiple cases, each case is treated as a single case. Each cases conclusion can then be used as information contributing to the whole study, but each case remains a single case. Exemplary case studies carefully select cases and carefully examine the choices available from among many research tools available in order to increase the validity of the study. Selecting multiple or single cases is a key element, but a case study can include more than one unit of embedded analysis. A key strength of the case study method involves using multiple sources and techniques in the data gathering process. Throughout the design phase, researchers must ensure that the study is well constructed to ensure construct validity, internal validity, external validity, and reliability.
Step3. Prepare to Collect the Data
Researchers prepare databases to assist with categorizing, sorting, storing, and retrieving data for analysis. Exemplary case studies prepare good training programs for investigators, establish clear protocols and procedures in advance of investigator field work, and conduct a pilot study in advance of moving into the field in order to remove obvious barriers and problems. The investigator-training program covers the basic concepts of the study, terminology, processes, and methods, and teaches investigators how to properly apply the techniques being used in the study. The program also trains investigators to understand how the gathering of data using multiple techniques strengthens the study by providing opportunities for triangulation during the analysis phase of the study.
Step4. Collect Data in the Field
Researchers carefully observe the object of the case study and identify causal factors associated with the observed phenomenon. Exemplary case studies use field notes and databases to categorize and reference data so that it is readily available for subsequent reinterpretation. Field notes record feelings and intuitive hunches, pose questions, and document the work in progress.
Step5. Evaluate and Analyze the Data
The case study method, with its use of multiple data collection methods and analysis techniques, provides researchers with opportunities to triangulate data in order to strengthen the research findings and conclusions. Exemplary case studies will deliberately sort the data in many different ways to expose or create new insights and will deliberately look for conflicting data to disconfirm the analysis. Cross-case analysis divides the data by type across all cases investigated. One researcher then examines the data of that type thoroughly.
Step6. Prepare the report
Some researchers report the case study as a story. During the report preparation process, researchers critically examine the document looking for ways the report is incomplete. Some case study researchers suggest that the document review audience include a journalist and some suggest that the participants in the study should review the documents.
Chapter: 3
Golden Arrow: The World of Success
What is GASM?
Golden Arrow Sales & Marketing Pvt. Ltd.
WAS ESTABLISHED
IN THE YEAR 2004 ON 2nd OF NOVEMEMBER
Regd. No. CIN05219ORJ2004PTCO19858
TIN NO: 08931760106 PAN NO: AACCG2604B TAN NO: JPRG03450G
Promoter:
A financial group Phool Financial Services from Kolkata with a group turn over of >100 Cr.
Directors:
Naveen Jain (MD): A young and dynamic person with experience in marketing of FMCG and Packaging Industry for 5 years
Dharam Raj Bothra (Marketing Director): Experience of MLM/Network Marketing for 8 years
Vijay Bothra (Admin Director): A young personality having 10 years of experience in administration and Finance
Region:
We have our presence in 14 states of our country, which includes RAJASTHAN, UTTAR PRADESH, DELHI, GUJRAT, HARYANA, PUNJAB, JHARKHAND, ASSAM, WEST BENGAL, MAHARASTRA, ANDHRA PRADESH, ORISSA, CHHATISHGARH AND MADHYA- PRADESH
Head office:
F-70, Rampath, Shyam Nagar, Jaipur-302019 (Rajasthan)
Regd. office:
138, Meerji Ka Bagh, Behind MLA Quarters,
M.I. Road, Jaipur –302001
Vision & Mission
G - GALAXY A -ADROIT
O - OF R -RELIABLE
L - LEADERS R -REMARKABLE
D - DEDICATED O -OMNIPOTENT
E - ENTHUSIASTIC W -WISDOM
N - NAVIGATOR
The company’s Vision & mission is to develop every Person in a GOLDEN ARROW way, to lead his Life towards Success.
The MISSION is to create a consumer base for the products marketed by the company and to provide business opportunity to the unemployed youth(s). In the present scenario of boom in the field of Network Marketing the company wants to provide better pricing and quality of the products to over the middle class people of our country.
Mohd. Jawaid Waqar, Education Head & Orator of Golden Arrow say’s“Never hesitate to take decisions in life; you have to be an adroit person, which will make you an omnipotent. This can only happen if you are dedicated and enthusiastic towards your decision to achieve your goals, in this way you can navigate yourself and the people with you towards the success you all dreamt of, by doing so you will become a reliable and remarkable personality in your life.’’
The people with high aim always dreams big as they have an attitude to achieve their dreams and become a GOLDEN ARROW.
The only thing to change in you is your “ATTITUDE”, the day you change, and you will be a different person with an improved wisdom power, whose each step will move towards 3P’s Positive ness, Perseverance & Prosperity.
Hierarchy of GASM
Diagrammatic Presentation
Of
Hierarchy of GASM
MANAGING DIRECTOR
MARKETING DIRECTOR
ADMIN. DIRECTOR
HEAD EDUCATION
G.A.CHIEF
G.A.COUNSELLOR
G.A.MENTOR
G.A.DISTRIBUTER
HEAD PRODUTION DEPT.
HEADPACKING & DESPATCH DEPT.
HEAD ON LINE EDUCATION
HEAD SEMINAR & SYMPOSIUM
HEAD PROUDUCT & PRESENTATION TRAINING
Legal Aspects of GASM
Supreme Court and Minister of state, Union Ministry of Consumer Affairs, Food & Public Distribution on Certifying the Legal validity of Network Marketing in India
Mr. V. Sreenivasa Prasad, Minister of Sate in the Union Ministry of Consumer Affairs, Food and Public Distribution, answered a question in Lok Sabha on December 20th-2002 on Network Marketing or MLM.
Admitting that the Government had received proposals from the Network Marketing Industry requesting the enactment of a separate legislation to cover direct selling/multi-level marketing/network marketing, the Minister said the main contention of the representation was that members of the Industry were being targeted due to the vagueness of the Prize Chits and Money Circulation (Banning) Act, 1978 in distinguishing between prize chits funds and genuine agencies involved in direct marketing.
He went on to clarify the position by stating that the matter had been examined in detail in consultation with the ministries concerned. "The need for a separate legislation was not felt in view of the fact that there are adequate provisions available in the Sale of Goods Act, 1930 (for regulating the sale of goods); and the Consumer Protection Act, 1986 (to promote and protect the rights of consumers)," he said.
"The provisions of the Prize Chits and Money Circulation Scheme (Banning), 1978 seek to ban the promotion or conduct of prize chits and money circulation schemes. The provisions of the Act had come up for scrutiny before the Supreme Court of India which ruled that the `Network Marketing Plan' and direct sale of goods and services by the direct selling companies do not fall within the mischief of the aforesaid Act," the Minister added.
Chapter: 4
Golden Arrow: Business Plan
11 Types Of Income:
Direct Sponsorship
Whenever one introduces a person into the Business Plan one get Direct Sponsorship income of Rs. 1100/- each time. One can make as many direct sales as one wish.
Spill Incentive
Whenever one make a direct sale as spill one will get spill incentive as Rs. 100/- per new sale in his/her spilled sale’s network on cutoff basis.
Power of 2
After introducing two persons one in his left group and one in his right group one qualify for this income and one get Rs. 500/-* per pair of one left group and one right group sale till unlimited depth with a capping of Rs. 50000/- per week.
Aapke Dus
When one make 10 direct sales one get Rs. 10/- per sale from each and every sale made by all his direct sponsors till 5th generation.
Hamare Dus
Company provides ten down lines to work for and they will fetch Rs. 1/- per sale made by them till 5th generation (1 left & 1 right sale is compulsory to get this income)
Power of Repurchase:
Once one becomes a distributor of the company by purchasing any of the joining option packages offered by the company one will get the products marketed by the company on Distributor Price and on each and every Repurchase one will get point Value and every 100 PV will be converted in one virtual ID and will be counted on one’s weaker leg. One will receive Point Value for repurchase made by both of one’s groups and on every pair of 100 PV left group and 100 PV right group one will get Rs. 500/-* pair income with a capping of Rs. 50000/- per week
Repurchase Companion:
Repurchase companion is your cohort who helps one to money back, through company’s joining bonanza. Whatever one repurchases company will reimburse one’s expenses from end to end through company’s exceptional system.
Recognitions
The company has following Recognitions and Rewards for the Achievers:
1.Silver Club: Distributors who complete 50 pairs and 5 direct sales will be called silver distributors and will be rewarded with a silver club certificate. He will be qualified to get 1% royalty of all the repurchases of the company. (To get this income one has to complete 10 pairs in that month)
2. Gold Club: The Silver Distributor who promotes 4 Silver Distributors in his down line in a ratio 1:3, 2:2 or 3:1 and make 10 direct sales will be called Gold Distributor and will be rewarded with a Gold Club Certificate. He will be qualified to get 2% royalty of all the company repurchases. (To get this income one has to complete 20 pairs in that month)
3. Diamond Club: The Gold Distributor who promotes 3 Gold distributors in his down line in a ratio 1:2, 2:1 and makes 15 direct sales will be called Diamond Distributor and will be rewarded with a Diamond Club Certificate. He will be qualified to get 3% royalty of all the company repurchases. (To get this income one has to complete 30 pairs in that month)
4. Arrow Club: The Diamond Distributor who promotes 2 Diamond Distributors in his down line in a ratio 1:1 and makes 20 direct sales will be called Arrow distributor and will be rewarded with a Arrow Club Certificate. He will be qualified to Get 4% royalty of all the company repurchases. (To get this income one has to complete 40 pairs in that month)
5. Golden Arrow Club: The Arrow Distributor who promotes 2 Arrow Distributors in his down line in Ratio 1:1 and make 25 direct sales will be called Golden Arrow distributor and will be rewarded with a Golden Arrow Club Certificate. He will be qualified to get 5% royalty of the total company repurchase. (To get this income one has to complete 50 pairs in that month) (This royalty is on cutoff basis)
Rewards
If one makes seven pairs in a week from his joining date he gets 7 pairs in one week from one’s joining date one gets Foce Wrist Watch worth Rs.2440
If one makes 25 pairs in 15 days from one’s joining date one gets DVD Player worth Rs.3000/-.
If one makes 60 pairs in 30 days from one’s joining one gets a Washing Machine Rs. 6000/-60 Days:
If one makes 120 pairs in 60 days from one’s joining date one gets Frost Free Fridge worth 12000/-
If one makes 300 pairs in 100 days from one’s joining date one gets Laptop worth Rs.30000/-.
If one makes 2000 pairs in 365 days from one’s joining date, one gets Maruti Alto AC Car
GA FORCE
Golden Arrow Force /Grandiose Apex Force (A DREAM COME TRUE) GA Force gives one a chance to earn extra through one’s weaker leg. Help one’s weaker leg and secure one’s future. Grow step by step and earn more and more.
1. GA Mentor: The Distributor who makes his two direct sales and both of his two direct makes their two direct sales each, then he becomes GA Mentor and he starts earning Rs. 100/- on each sale in his weaker leg.
2. GA Counselor: The GA Mentor, who promotes two GA Mentors in his down line, one in his left group and one in his right group, becomes GA Counselor and he starts earning Rs. 200/- on each new sale in his weaker leg.
3. GA Chief: The GA counselor, who promotes two GA counselors in his down line, one in his left group and one in his right group, becomes GA Chief and he starts earning Rs. 300/- on each new sale in his weaker leg.
Bonus Buddy
A friend of all GA FORCE, whoever accomplishes the destination of this Force, shall be given bonus from the companies throughout sales of the particular month. Rupees one hundred from each new sale is accumulated in this fund called BONUS BUDDY and the amount is distributed to all GA Force associates who receives a GA Force check in that month.
Chapter: 5
Golden Arrow: Product Range & Joining Options
SUIT LENGTH
Any person can join the company by purchasing one 3 meters exclusive suit length worth Rs. 4550.00 and sponsor more and more peoples to earn money for oneself. Business Tool Kit containing Presentation CD, Broachers, Application forms, Pad, Pen in a lucrative Bag will be given along with the suit length.
LIC
One can join by purchasing one life insurance policy from LIC:
· Jeevan Tarang by LIC of India: Rs.12000.00
· Money back plan By LIC of India: Rs.15000.00
Education
A person can join the company by providing education to their children through distance education system brought by Golden Arrow through their education system channel partner M/s Academy Center who are dealing with following distance education universities
· Bhartiya Shiksha Parishad, Lucknow
· Navbharat Shikhsha Parishad, Rourkela
· RJSMS, Balasore
· University of California, California U.S.A.
· University Of Honolulu, U.S.A.
Foce Watch
A person can join golden arrow by purchasing one pair of wristwatch made by world famous "Foce" company. The price of the pair is Rs. 5800/- only with one full year replacement guarantee.
Website
Websites are the most common commercial tool required by each and every individual nowadays. In the current boom in IT sector all type of businesses and services are dependent on the web address. A person can join the company by purchasing an exclusive personalized website of 10 pages with one year hosting and 5 e-mail ID’s from Golden arrow for Rs. 15000.00. In this way he can earn lot of money through network marketing and improve his current business.
R.O. System
Reveres Osmosis is a scientific technology worldwide, which is proved to treat the water effectively and completely. The water is press through a semi permeable membrane with pores as minute as 0.0001 microns by high-powered booster pump. The complete removal of the tiniest particles like bacteria, virus, Cysts, Protozoa even the Ionic particles including TDS (Total Dissolved Solids), Pesticides and Heavy Metals from Drinking Water. Removes bacteria and virus completely from the water, leaving no chance of their reactivation after long storage or at favored temperature.
Birla Sunlife Insurance Policy
One can join by purchasing one life insurance policy from Birla Sunlife:
· Saral Jeevan By BirlaSunLife: Rs.12000.00
· Dream Plan By BirlaSunLife: Rs.12000.00
Oriental Insurance Policy
A person can join the company by purchasing a accidental plus hospitalization policy of Oriental Insurance Company where he /she will be covered for 100000.00 for 4 years. In this policy the policyholder will be entitled to get hospitalization cash up to Rs. 20000.00 per annum and in case of accidental death of the policyholder the nominee will get Rs. 80000.00
Share Market
Trade the Shares and Commodities through MLM
Join through opening a Demat Account with Rs. 15000.00 as advance brokerage and trade shares through M/s Guiness Securities Ltd. The joining Amount is Rs. 15000.00 against which you will be treated as advance brokerage cum margin money and will be adjusted against brokerage payable by you.
Induction Cooker
A person can join golden arrow by purchasing one induction cooker worth Rs. 6200/- with following Features: 1) 1,800W, 160 - 260V 2) Siemens IGBT built-in, prolong the service life 3) LED shows temperature, time and power 4) 7 cooking functions: cooking rice, making soup, hot pot, barbecue, heating milk, fry, porridge 5) 10 power adjustments: 100W, 300W, 600W, 900W, 1,000W, 1,200W, 1,400W, 1,600W, 1,800W 6) 10 temperature adjustments: 60, 80,100, 120, 140, 160, 180, 200, 220, and 270 7) 1 - 59 minute timing 8) Many faults automatic diagnose functions: special design of automatic inspection for pot, automatic switch off, low voltage protection, overload protection for current and voltage
Health Care
Noni
It is a FRUIT JUICE of the fruit “Morinda Citrifolia,” locally known as Indian Mulberry, and known in Sanskrit as “ACH”. Regular use of this fruit juice gives immense benefits to be healthy. This fruit was found to have been historically used widely by ancient civilizations. It is NOT A MEDICINE, but it helps to work medicines better. It helps medicines work more efficiently. GOLDEN NONI is a micronutrient to the Cells. It works at cellular level. Many researchers through out the world study the properties of Morinda Citrifolia. No other fruit juice works like Morinda Citrifolia, at the cellular level. It detoxifies the body, keeps energetic, gives a feeling of freshness and maintains the body to be free from disease. It helps sleep better. It is priced at Rs. 497/- per bottle of 400 ml
Home Care
Golden Arrow Detergent Powder is a best quality detergent powder useful both for Bucket wash as well as Machine wash. It is a powder with great fragrance and light colour priced at Rs. 85/- per 1 kg pack.
Golden Arrow Toilet Cleaner is made for clean and shining Toilet. It is priced at Rs. 45/- per 500 ml Bottle
Golden Arrow Fabric Whitener is a quality product for white clothes. It improves whiteness and shining of white fabric. It is priced at Rs. 9/- per 75 ml bottle.
Golden Arrow Detergent Cake is a cake for better washing quality without harming the skin. It is priced at Rs. 10/- per cake of 250 Gms
Golden Arrow Agarbati is an incense stick to be used regularly during Pooja in the morning and evening with great flavored fragrance. The regular use brings peacefulness in the home. Priced at Rs. 25/- per pack of 100 sticks.
Liquid Detergent: Golden Arrow Liquid Detergent is useful for all types of clothes with a good fragrance and shining properties. It helps the clothes to retain its shining longer. It is priced at Rs. 46/- per 500 ml Bottle
Golden arrow floor Deo Drop is an excellent floor cleaner and disinfectioner for house and commercial places. It is available in 100ml pack, which can be mixed with 2.5 liters of water to make 2.5 liters floor cleaner. It is priced at Rs. 79/- per 100 ml
Personal Care
Golden Arrow Shampoo is a herbal shampoo to protect hairs from early falling and dandruff. It increases the softness and lustrous ness of the hairs by regular uses.
Golden Arrow Hair Gel is Aloe Vera based Gel to give wet look to Hairs with great fragrance and light blue colour. It is priced at Rs. 125/- per jar of 250 ml.
This is a unique composition of natural Multani Mitti with Rose Water and Chandan powder to use as face pack for great fresh feelings. It also helps in treating pimples. Priced at Rs. 30/- per 100 Gms pack.
Golden Arrow Cold Cream is a herbal base cold Cream with natural Almond Oil. This is a face moisturizer for dry and wrinkled skin. It protects the skin from winter dryness and gives it a soft, radiant and youthful glow. It is priced at Rs. 125/- for 200 Gms pack.
Golden Arrow Fruit Cream is a facial massager with natural herbal fruit extracts. It is priced at Rs. 125/- per 200 Gms pack.
Golden Arrow Kanchan Kaya body lotion is one of the best formulation of natural Chandan Powder, Kesar,Jasmine,Almond Oil, Lemon Extractetc with Aloe Vera and is useful to get young looking skin. By regular use as directed for 45 to 60 days Skin begins to glow. It also prevents skin from UV rays of sunlight. A 100% natural product with no side effects. Priced at Rs. 251/-per 100 ml bottle
Golden Arrow Wrist Watch is available at Rs.259/-per Pc in both Gents as well as Ladies Models with one-year warranty.
Amla Hair Oil: Golden Arrow Amla Hair Oil is made by natural Amla and very good for all type of hairs. Priced at Rs. 49/- per bottle of 200 ml.
Golden Arrow Luxury soap is a normal bathing soap with fragrance of real roses. It is priced at Rs. 15/- per 75 gms cake.
Golden Arrow Premium Talc with unique fragrance keeps you fresh all day long. Priced at Rs. 50.00 per 200gms.
Good quality readymade shirt with free size. MRP Rs. 750/- for one pc
Agro Care
Agrowet 80: The unique product to enhance the expansion of water in irrigation and to increase the production of crop. Priced at Rs. 80/- per bottle of 250 ml
Grah Sudhi & Vastu
Vastu Dosh Nivaran Taral: The unique product for "Grah Sudhi". The use of this liquid will help you & your home from any type of Vastu/Bhumi Dosha. You will feel the positive results within 90 days of use. Direction for use: - mix to drops from bottle no 1 and two drops from bottle no 2 in 3 liters of water and clean complete floor of your house or commercial place daily. This Unique Product is priced at Rs. 1550/- per pack only
Refreshments
GASM has a tie up with different sweets and Namkeen making companies for refreshment product like Bhujia, Rasgulla, and Roasted Namkeens etc.
Chapter: 6
Comparison of GASM Vs. MLM Companies
This is a chapter containing comparison between GASM and other MLM companies. This comparison will be useful to convey detail information about GASM. There is plethora of comparison, so there is no strict format to follow.
1 The Payout Structure: Golden Arrow distributes commission in eleven ways that is exclusive & incomparable from any other company in multilevel & network marketing system.
M O D E
PAYOUT IN RUPEES
DIRECT SPONSOR
1100
POWER OF 2 (JOINING PAIR)
500
POWER OF 2 (REPURCHASE PAIR)
500
SPILL OVER BENEFIT
100
HAMARE DUS
01
AAPKE DUS
10
RECOGNITIONS
1 % EACH IN 5 CATEGORIES (REP)
REWARDS & AWARDS
LIFETIME
REPURCHASE COMPANION
REPURCHASE AMOUNT REFUND
GRANDIOSE APEX (GA) FORCE
3 DIVISIONS 100 PLUS IN EACH DIV
BONUS BUDDY
3 DIVISIONS 50,30,20 TO GA FORCE
2 Joining Pack: Golden Arrow has 13 different joining packs, this company does not impose anything to any new comers or to its distributors, and it is totally their choice to pick a pack from the list as per his /her desire or wish. The company has tied up with many leading insurance companies like L.I.C., Birla, Bajaj, Oriental and also with different leading manufacturers like Whirlpool, Bajaj Two Wheelers and many more, which are included in joining options or repurchase.
JOINING PACK
JOINING AMOUNT IN RUPEES
EXCLUSIVE SUIT LENGTH
4550
ORIENTAL INSURANCE
4550
GOLDEN NONI JUICE (6 BOTTLES)
5500
PAIR OF FOCE WATCH + SUIT LENGTH
5800
INDUCTION COOKER + SUIT LENGTH
6200
L.I.C ENDOWMENT PLAN
12000
R.O SYSTEM (WATER FILTER) + SUIT LENGTH
12500
L.I.C MONEY BACK PLAN
15000
BIRLA SUN LIFE DREAM PLAN
12000
BIRLA SUN LIFE SARAL JEEVAN
12000
SHARE MARKET + SUIT LENGTH
15000
FOCE DIAMOND (SINGLE PIECE) + SUIT LENGTH
8500
DISTANCE EDUCATION
As per University Rules
BUSINESS DEVELOPMENT KIT PROVIDED WITH EACH JOINING PACK
3 No Renewal Charges: Before going into the plan, I should mention an exceptional class of this company, whoever joins this company has a lifetime ID by which he is never off with it, somehow any person stops working for any of his/her reason may again start their work anytime at his/her convenience.
4 No Registration Fee: There is neither registration nor hidden cost for any new comer or distributor, new comer has to choose a pack and pay the price and then he will never ever have to pay a single penny to be attached with the company further in lifetime.
5 Instant Payout: The Company has named it “Direct Sponsor Income”. Any new comer introduced by the distributor (sponsor) as his first referral under his/her genealogy receives the first payout of rupees 1100.00. By this the sponsor gets inspired and enhance to work seeing that he/she received an instant payout of his/her effort. Rupees 1100.00 as a direct sponsor is first of its kind as other companies has a compulsion to introduce more either one or two for the payout.
6 Power of Two: The Company pays pair income through point system; the distributor receives 100 points (p.v) for each joining under him/her. While in repurchase every product has a point placed behind, purchasing saves points for the distributor and at the same time their whole up lines earn points too. Any distributor purchases 100 point products or accumulation from down line comes to 100 point is treated as a sale.
As the distributor completes the two direct sales (A&B) he receives Rs: 2200.00 as a direct commission and at the same time an extra payment of Rs: 500.00 are generated as he completes a pair of sale no other company pays two times on the same sale. Most of the company has this kind of pair payout structure, but this company has a surplus facility. After the first pair a distributor has a sale in any one of his/her leg and the second leg sale does not happen so no company pays out a single penny in any way but GASM pays out (through the repurchase of 100 point by the sponsor), which slips down virtually to make the payment or the group repurchase of 100 point is done in the required leg. (Capping rupees 50,000)
100 points of repurchase from group A and 100 from group B will always fetch rupees 500 to the sponsor, having the points under his/her genealogy. By this way, he will always earn from the repurchase made by their group people. This earning is no doubt possible in any other network marketing company but plan attached to this genealogy is unbelievable. The benefits & rewards related with this income are never thought before. It is the precious and valuable stone in the GASM. (Capping rupees 50,000)
7 Spill Over Income: Whoever makes a third or more sale in his/her extreme left or extreme right leg are always benefited by the direct sponsor commission, apart from this he starts earning rupees 100 from each A & B placed under the third or more sale till unlimited depth. Again this type of earning is in the most of the multi level or network marketing company. But added shocking income is related with the direct sale, the more you make direct sales the more royalty is earned by the earnings attached with the spillover income.
8 Hamare Dus: Outstanding earning plan, this is one of the best & definitely never thought or shaped by any other company. This is the USP of the company. As any one becomes the distributor of the company 10 distributors are placed under his/her genealogy, apart from the first position (power of two). The company places 10 distributors before the joiner joins any one, the distributors placed under the new joiners are the distributors joined prior to him/her. It may be his/her up line or from any other tree apart from his up line placements; it may be from anywhere, from the company’s tree. Whom the new joiner may not know and from their direct effort the company distributes Rs. 1/- for each placement under him till the 5th generation of the company’s rewarded 10 distributors. Total placement till 5th generation under these 10 placements, calculation comes to 11, 11, 100 distributors. This figure is calculated with rupee 1 turn to rupees 11, 11, 100. Any distributor who joins this company shall receive this royalty from the system as the placement is made. The only criterion is that whoever completes two sales (A&B) under his/her genealogy.
9 Aapke Dus: The Company chairs a position to any new comer logs in. This is the income related to spill over means the more a distributor spills the more he/she earns. The company here states in its plan that just sponsor 1 person in a month in your genealogy even if you miss 1 or 2 you will complete at least 10 in a year and teach your down lines to do the same, so by this you will be able to complete the fifth generation of your 10 directs in approximate time of three years. The company distributes rupees 10/- for each distributor placed by you or your down lines and the count turns into 1, 11, 11, 100 (One Crore Eleven Lakhs Eleven Thousand only). This is moreover a royalty provided by the company to the distributors, which is achievable by any common person who just hearts a little attention to the target. This genealogy is another one of its kind, which is not produced by any other company till date.
10 Recognition: Under this label company distributes five percent from its profit to the achievers who accomplishes the target in the plan framed. Silver club, gold club, diamond club, arrow club & golden arrow club are the targets to be achieved. The company distributes 1% additional in each category. Here the company proves to be help very much to grow their distributors to the mark by providing incentives from its own profit. It is commonly used in most of the companies in this profession.
11 Rewards: As the distributor involves himself/herself with the company, he becomes aware of the rewards, which the company has fixed for all the new joiners who steps in this company. All the rewards are fixed as a sales promotion method. Whoever completes the target in the stipulated time will be eligible for the rewards. These rewards motivate and inspire them to earn more and get some more from the same effort.
12 Repurchase Companion: This is an unexpected by any one as no one or no company has ever planned or thought of providing an income like this. It is incomparable income provided to the distributors of the company. Any distributor who completes the first criteria by completing its A & B becomes eligible to have refund of their total amount repurchased; every month any amount of distributors does the repurchase of any amount shall be refunded back their money next month onwards from the company’s most preferable system of the distributors. This system is another USP of the company, which does not allow any distributor to think of any other company.
13 G.A. Force: This income is another unique form of the plan by which golden arrow stands different from any other company. This income is divided into three different slabs to earn. A distributor has to qualify for the condition provided by the company. How a distributor qualifies… a distributor’s (directs) A & B has to complete their A & B, the distributor reaches to the first slab as G.A. mentor and starts receiving commission of rupees 100 from each sale without balancing from his/her weaker leg. Now here if he gets one G.A. mentor in its left wing and another in its right wing he will be promoted, as counselor and increment of rupees 100 will be added to its commission. Now one counselor to its left and one at right will fetch the distributor another additional of rupees 100 from the weaker leg stream as he/ she becomes the G.A. chief of the company.
14 Bonus Buddy: This is a reward to the achievers of G.A. force. The company saves rupees hundred per sale for the G.A. Force achievers. Whoever receives the payment in the running month shall receive the bonus from the bonus buddy. The company has bifurcated this income into 3 groups as rupees 50 to mentor, rupees 30 to counselor & rupees 20 to the chief shall be distributed from the collections of sales. Now the leaders are pumped up by this earning as they receive extra money for the movement they make.
15 Product: There are wide ranges of products like personal care, home care, health care, kitchen care, cloth care etc. So it increases the choice of customer and fulfills the requirement with good quality and economical range.
16 Transparency: All the information about the distributor is available on web page. There is software that maintains the genealogy of distributor. It provides the account information like Payout Cheques, repurchase income, and new joining. Online joining is one of the facilities so one can join from any where at any time.
17 Mix Plan of Level and Binary: It is the only company who has mix the plan of level and binary by this one can enjoy the fast earning of binary and royalty of level plan.
18 Social Fund: This Company is very socially aware and to fulfill its social responsibility it create a social fund for its distributor. By this fund company gives 10000/- Rs. to the nominee of distributor after his/her death.
19 Tie up with GATI: For providing efficient and fast courier and Cargo services Golden Arrow has tied itself up with GATI. It provides rapid services and increase customer satisfaction.
20 BDSA Approved: Bharatiya Direct Selling Association approves GASM. This shows its authenticity and makes it trust worthier.
21 Training Programme: In GASM training is provided by efficient, skilled and experienced faculty who are in this field from last 15 years when MLM was a newborn baby in India. The training grooms overall personality of the distributor and enable a person to hit the target.
22 24 Hours Customer Care: It provides 24 hours customer care facility to satisfy the query of the distributor.
23 Pan Card Mandatory: it is mandatory to quote pan in all transaction. Quoting of PAN on return of income and challan for payment of taxes is necessary to ensure accurate credit of taxes paid and faster processing of return of income.
24 Banking support: For convenience of Customer Company has it’s a/c with many banks like ICICI, The Bank of Rajasthan Ltd., HSBC, and HDFC.
Above comparison reflects that quality product and plan of GASM will provide prosperity to the distributor and it has a working culture for its distributor.
Chapter: 7
Findings & Suggestions
MLM companies are operating worldwide. These have been around us for years. After a study of MLM and Golden Arrow Sales and Marketing Pvt. Ltd results are analyzed and findings and suggestions are as follows:
MLM is literally the last bastion of free time enterprise, a system in which common people can invest a small sum and through sheer tenacity and perseverance market viable products to the circle of influence, build team to maximize sales and in due time rise to staggering level of financial and time freedom.
In MLM long tenure enthusiasm is required to get the result but it is lacking in many cases. GASM is a company in which intensive training programmes are conducted to increase enthusiasm more and more. MD’s of GASM have got leadership qualities and a group of leaders are with them GASM leaders believed in human values: honesty, hard work, and humbleness. …Thus the result has to come.
Some Humble Suggestions:
i. Product quality of GASM is up to the mark but more attention should be paid towards packing, wrapping etc.
ii. Griha Sudahi product is excellent as per quality and it’s effect but promotion an important aspect of marketing is lacking.
iii. GASM is Hi-tech but its distributors are not cyber friendly. So in the Meetings and Seminars such training and awareness should be aroused. Trainings should not be a formality but it should be intensive and Result-Oriented.
iv. Rewards and Recognition should the provided in public. It will boost the morale of other distributors and increase confidence level of the person honoured.
Bibliography
Books:
Waqar Mohd. Javed : Business Manual, Golden Arrow sales and Marketing Pvt. Ltd.
Robret T. Kiyosaki : Business School, Manjul Publishing House Pvt. Ltd.
A.H. Nimbaheda : Aasan Hai Network Marketing Karna, M.J.Publication.
Edward Ludbrook : Big Picture, Legacy Communication.
Edward Ludbrook : Fundamental of Network Marketing , Legacy Communication.
Anthony Grant PhD & Jane Greene: Coach yourself @work,BPI(India) Pvt Ltd
TJ Hoisington :If You Think You Can!,Manjul Books Pvt.Ltd.
Gordon L. Patzer : Experiment-Research Methodology in Marketing: Types and Applications, Quorum Books 1996
Websites:
www.goldenarrowindia.com
www.mlmonline.com
www.earnmore.in
www.mlmtribune.com
www.mlm.com
www.MakingOnlineMillionaires.com
www.TheMLMOutLawsTeam.com
www.AltractionMarketingMentor.com
http://en.wikipedia.org/wiki/Multi-level-marketing
www.mlmrankings.com
www.mlmlegal.com
www.mlmwatchday.com
www.mlm-thetruth.com
trilok
CONTENTS
Multi Level Marketing: A Case Study
Page
· PREFACE i-ii
· ACKNOWLEDGEMENT iii
· CONTENTS iv
· OBJECTIVES v
· RESEARCH METHODOLOGY vi-vii
Chapter: 1 Multi Level Marketing 1-10
· Meaning and definition of Marketing
· Types Of Marketing
· Multi Level Marketing
Chapter: 2 Case Study 11-16
· What is Case Study?
· Types of Case Studies
· The Case Study as a Research Method
Chapter: 3 Golden Arrow: The World of Success 17-21
· What is GASM?
· Vision & Mission
· Hierarchy of GASM
· Legal Aspects of GASM
Chapter: 4 Golden Arrow: Business Plan 22-27
· 11 Types Of Income:
1) Direct Sponsorship 2) Spill Incentive
3) Power of 2 4) Aapke Dus
5) Hamare Dus 6) Power of Repurchase:
7) Repurchase Companion: 8) Recognitions
9) Rewards 10) GA FORCE
11) Bonus Buddy
Chapter: 5 Golden Arrow: Product Range & Joining Options 28-36
Chapter: 6 Comparison of GASM Vs. MLM Companies 37-45
Chapter: 7 Findings & Suggestions 46-47
Bibliography: Books & Websites 48-49
OBJECTIVES
The scheme and syllabus of MBA, VMOU (KOTA) is so designed that it incorporates practical experience with theoretical inputs by providing the candidate with an opportunity to interact with real life situation. As my field is marketing I would like to take such a project in which I can practically study ins and outs of marketing I deem it proper to select Multilevel Marketing: A Case Study as my Project Work.
In present era MLM Companies are getting prominence my objective is to know the depth, prospects, and reasons for success and failure etc. of an MLM company. At present Multilevel Marketing is in its boom and catching attraction of Youths and Corporate houses.
So I have chosen Golden Arrow Sales and Marketing Pvt. Ltd. for my detailed study and tried to achieve my objective. I believe that will help me in learning techniques to solve organizational problems.
RESEARCH METHODOLOGY
Types of Research:
1) Research Design Descriptive Research.
2) Type of Universe Management Employees and Customers of GASM
3) Data Type Primary as well Secondary Data.
4) Research Instrument Structured schedule and Computer with Internet.
5) Contact Method Personal Interview & Internet Connectivity
6) Method of Data-Collection Survey for Primary Data & Internet Surfing for Secondary Data
Pilot Survey:
A schedule was prepared consisting of questions from directors, distributors and customers. The questions were both open and close-ended. Respondents answered most of the questions but certain questions were unanswered for pilot survey and certain new questions were also generated.
Final Schedule:
Final schedule was restructured after omitting the questions, which were not answered during the pilot survey and few question were added which came during the pilot survey. The schedule was constructed to obtain the responses in view of relevance to the services and the level of satisfaction among the customers. The final schedule was easy to understand and easy to answer by the respondent to fulfill the objectives of the research.
Limitations:
Though tried to take utmost care, to make the research work exhaustive, still I could not rule out the presence of few unintentional and unavoidable flows in the research-
1) Indifference and lack of interest disposed by few respondents leading to unauthentic responses.
2) This research is based on personal interview so there may be chance of biasness.
Research methodology mainly used in my project work was interview and questionnaire based surveys. I did it honestly and tried to make my research work exhaustive.
Chapter: 1
Multi Level Marketing
Meaning and definition of Marketing
Marketing is typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for a company’s products, but this is too limited a view of the tasks marketers performs.
Marketing has often been described as “the art of selling products,” but people are surprised when they hear that the most important part of marketing is not selling! Selling is only the tip of the marketing iceberg.
Example: When Sony designed its Walkman, when Nintendo designed a superior video game, and when Toyata introduced its Lexus automobile, these manufacturers were swamped with orders because they had designed the “right” product based on careful marketing homework.
In the words of Kotler: -
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
In the words of Bartles: -
Marketing is the process whereby society, to supply its consumption needs, evolves distributive systems composed of participants, who, interacting under constraints- technical (economic) and ethics (social) – create the transactions or flows which resolve market separations and result in exchange and consumption.
What I feel that the definition adopted by the American Marketing Association is one that suits the best. According to the association the definition is as follows:
“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization objectives.”
The Philosophy of Marketing and the Marketing Concept
The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or her needs, the focal point of all business activities. It is driven by senior managers, passionate about delighting their customers.
Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.
Drucker
This customer focused philosophy is known as the ‘marketing concept’. The marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.
Barwell
Marketing Mix
The Marketing Mix is the set of marketing tools the firm uses to pursue its marketing objetives in the target market.
McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion. Marketing Mix decision must be made for influencing the trade channels as well as the final consumers.
This figure shows the company preparing an offering mix of products, services and prices, and utilizing a promotion mix of sales promotion, advertising, sales force, public relations, direct mail, telemarketing and Internet to reach the trade channels and the target customers.
The firm can change its price, sales force size, and advertising expenditures in the short run. It can develop new products and modify its distribution channels only in the long run. Thus the firm typically makes fewer period-to-period marketing-mix changes in the short run than the number of marketing-mix decision variables might suggest.
The four Ps represent the seller’s view of the marketing tools available for influencing buyers. From a buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs.
Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
Winning companies will be those that can meet customer needs economically and conveniently and with effective communication.
Types Of Marketing
There are 3 main types of marketing: undifferentiated marketing, differentiated marketing, and concentrated marketing.
Undifferentiated marketing assumes everyone is the same and aims a particular product at everyone. Advantages: easy to plan, doesn't miss anyone. Disadvantages: can be wasteful, ignores segmentation, can lead to disappointing sales.
Differentiated marketing aims the product at specific segments in the market. The company may be trying to sell exactly the same product to different segments but it will change its promotional methods and the image it creates. Advantages: separate mix can be developed for each segment; different markets can be easily identified. Disadvantages: Can be costly, message may by-pass some customers.
Concentrated marketing is when the message is aimed at just one small market. Advantages: Small firms can concentrate their marketing, allows a specific mix to be developed. Disadvantages: Ignores other areas of the market, can cause problems in future as may make it more difficult for company to expand.
Usually there are three types of marketing but a new dimension of marketing is introduced commonly known as Multi level Marketing. This involves the concept of marketing to serve Product or services directly from Company to customer. Advantage: cost reduction as there is zero level distribution channels between company and customer. Disadvantage: Socially not accepted in India. Another reason is that untrained people are marketing in this system and they can’t be forced to undergo the training procedure, as they are not bounded by the rules.
Multi Level Marketing
History of MLM:
Multi Level Marketing business is also known as Network Marketing Business but there are few differences, still both marketing systems use the same process of business.
CALIFORNIA PERFUME CORPORATION started MLM business in the year (1888) very well known as C.P.C. It is now more than 100 years; yes this is the 119th year running. In India it was launched in the year 1997 by a famous group of Industries and later many foreign companies started their MLM business here in India. Thanks to those companies as they were the spreader of this system and they sowed the awareness of this MLM industry in Indian people.
The people of India are very much aware of this business nowadays, that this is a business where by purchasing any of the company’s product from the package / a fixed product range / a single product pack acquires an optional business opportunity where they can earn huge & secure their future by investing Zero (0) Amount. Without any Infrastructure Maintenance, Investments, paperwork.
Multi Level Marketing (MLM) was the fastest growing sector of the direct selling industry worldwide. In 1988, the total revenue generated by MLM was $ 12 billion, which doubled to $ 24 billion by 1998. The direct-marketing industry in India was about Rs. 6 billion in 1999. This was a growth of 62% over the previous year.
In the pre-liberalization era, network marketing in India was usually in the form of various chit fund companies like Sahara India. These had a system of agents, who simultaneously mobilized deposits and appointed sub-agents for further deposit mobilization. Companies such as Eureka Forbes and Cease-Fire pioneered the direct selling system in the country with a sales force that was trained to make direct house-to-house sales.
What’s MLM?
Multi-Level marketing, that’s what MLM stands for, is also called network marketing. In this type of marketing, the companies don’t sell their products directly in the open market. Instead they get the public to register as distributor in their company by paying a fee and sell the products. The members in turn introduce others to the company and earn commission when these new members introduce others to the company. These new members are known as down lines for the particular member.
Multi-Level Marketing: CONCEPT
The idea behind multi-level marketing (MLM) is simple. One can do what most businesses do: either sell it directly to consumers or find others who will buy product from him and sell it to other people. MLM require that sponsor people not only to buy and sell product, but who will also sponsor people who will not only buy and sell product but also sponsor new people. Everyone sponsoring people to compete with them but MLM magic convince that it is reasonable to sponsor competitors because they won't really be competitors since everyone will get a cut of their profits. This will take our mind off. This may seem unusual to traditional business people. It seems wonder that the fact that no matter how big our town or market, it is finite. The well will go dry soon enough. There will always be some distributors who will make money in an MLM company.
Multi-level marketing is system of marketing which puts more emphasis upon the sponsoring of distributors than on the selling of products. As such, it is intrinsically flawed. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all.
Comparison between MLM and Traditional Marketing:
Advantages of MLM:
· Cost Reduction: There is no distribution channel in between company to customer. So company has lot of cost saving and able to provide many other benefits to customer.
· Earning through Purchase: Company is providing some point value to customer for every repurchase made by him and through these point value he earn a lot.
· Increment in Social Network: This concept involves very high growth in building of network because basic concept behind MLM is Network marketing.
· Endless Scope: The industry is never saturated and there is always scope for more. Networking businesses work like an office grapevine, where a casual recommendation spreads across a network. The benefits trickle as soon as the word spreads.
· Flexibility: Network marketing allows you the flexibility of working part time or full time and requires nothing more than your interest and desire to explore.
· Common Goal: It works with an ever-increasing number of people from varied backgrounds and locations, all striving to achieve a common goal: the sale of products.
· Low Cost Project: The key advantage of this type of business is that it allows taking chances without costing much. One can give it a try and see if it works fine for him or not. The exit barriers just like the entry costs are negligible. The best part is the residual income and the tax benefits offered by network marketing businesses. One can continue to earn even after quitting.
Limitations of MLM:
· Lack of Understanding of Customer Profile: MLM plans solely concentrate on the financial aspect of the business. They don’t take into account the nature of the person signing up for membership. An introvert can never make it big in this business as this business entails establishing relationships with prospective members. Moreover, money isn’t the sole motivating factor for many people. But the business focuses on money.
· Products not Customized to Local Markets: Most of the MLM companies sell products that are meant for the native countries. These products may not be suitable for local markets. Amway’s car cleaner and window cleaner, for instance, aren’t suitable for the Indian scenario, as labor in India is cheaper than in the US. Hiring a worker to carry out the same task works out cheaper.
I would like to say that network marketing is literally the last bastion of free time enterprise a system in which common people can invest a small sum and through sheer tenacity and perseverance market viable products to the circle of influence, build team to maximize sales and in due time rise to staggering level of financial and time freedom.
Chapter: 2
Case Study
What is Case Study?
Case Study refers to the collection and presentation of detailed information about a particular participant or small group, frequently including the accounts of subjects themselves. A form of qualitative descriptive research, the case study looks intensely at an individual or small participant pool, drawing conclusions only about that participant or group and only in that specific context. Researchers do not focus on the discovery of a universal, generalizable truth, nor do they typically look for cause-effect relationships; instead, emphasis is placed on exploration and description
Types of Case Studies
Under the more generalized category of case study exist several subdivisions, each of which is custom selected for use depending upon the goals and/or objectives of the investigator. These types of case study include the following:
Illustrative Case Studies
These are primarily descriptive studies. They typically utilize one or two instances of an event to show what a situation is like. Illustrative case studies serve primarily to make the unfamiliar familiar and to give readers a common language about the topic in question.
Exploratory (or Pilot) Case Studies
These are condensed case studies performed before implementing a large-scale investigation. Their basic function is to help identify questions and select types of measurement prior to the main investigation. The primary pitfall of this type of study is that initial findings may seem convincing enough to be released prematurely as conclusions.
Cumulative Case Studies
These serve to aggregate information from several sites collected at different times. The idea behind these studies is the collection of past studies will allow for greater generalization without additional cost or time being expended on new, possibly repetitive studies.
Critical Instance Case Studies
These examine one or more sites for either the purpose of examining a situation of unique interest with little or no interest in generalizability, or to call into question or challenge a highly generalized or universal assertion. This method is useful for answering cause and effect questions.
The Case Study as a Research Method
Introduction
Case study research excels at bringing us to an understanding of a complex issue or object and can extend experience or add strength to what is already known through previous research. Case studies emphasize detailed contextual analysis of a limited number of events or conditions and their relationships. Researchers have used the case study research method for many years across a variety of disciplines. Social scientists, in particular, have made wide use of this qualitative research method to examine contemporary real-life situations and provide the basis for the application of ideas and extension of methods. Researcher Robert K. Yin defines the case study research method as an empirical inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used (Yin, 1984, p. 23).
Critics of the case study method believe that the study of a small number of cases can offer no grounds for establishing reliability or generality of findings. Others feel that the intense exposure to study of the case biases the findings. Some dismiss case study research as useful only as an exploratory tool. Yet researchers continue to use the case study research method with success in carefully planned and crafted studies of real-life situations, issues, and problems. Reports on case studies from many disciplines are widely available in the literature.
Many well-known case study researchers such as Robert E. Stake, Helen Simons, and Robert K. Yin have written about case study research and suggested techniques for organizing and conducting the research successfully. This introduction to case study research draws upon their work and proposes six steps that should be used:
Determine and define the research questions
Select the cases and determine data gathering and analysis techniques
Prepare to collect the data
Collect data in the field
Evaluate and analyze the data
Prepare the report
Step1. Determine and Define the Research Questions
The first step in case study research is to establish a firm research focus to which the researcher can refer over the course of study of a complex phenomenon or object. The researcher establishes the focus of the study by forming questions about the situation or problem to be studied and determining a purpose for the study. Case study research generally answers one or more questions, which begin with "how" or "why." To assist in targeting and formulating the questions, researchers conduct a literature review.
Step2. Select the Cases and Determine Data Gathering and Analysis Techniques
When using multiple cases, each case is treated as a single case. Each cases conclusion can then be used as information contributing to the whole study, but each case remains a single case. Exemplary case studies carefully select cases and carefully examine the choices available from among many research tools available in order to increase the validity of the study. Selecting multiple or single cases is a key element, but a case study can include more than one unit of embedded analysis. A key strength of the case study method involves using multiple sources and techniques in the data gathering process. Throughout the design phase, researchers must ensure that the study is well constructed to ensure construct validity, internal validity, external validity, and reliability.
Step3. Prepare to Collect the Data
Researchers prepare databases to assist with categorizing, sorting, storing, and retrieving data for analysis. Exemplary case studies prepare good training programs for investigators, establish clear protocols and procedures in advance of investigator field work, and conduct a pilot study in advance of moving into the field in order to remove obvious barriers and problems. The investigator-training program covers the basic concepts of the study, terminology, processes, and methods, and teaches investigators how to properly apply the techniques being used in the study. The program also trains investigators to understand how the gathering of data using multiple techniques strengthens the study by providing opportunities for triangulation during the analysis phase of the study.
Step4. Collect Data in the Field
Researchers carefully observe the object of the case study and identify causal factors associated with the observed phenomenon. Exemplary case studies use field notes and databases to categorize and reference data so that it is readily available for subsequent reinterpretation. Field notes record feelings and intuitive hunches, pose questions, and document the work in progress.
Step5. Evaluate and Analyze the Data
The case study method, with its use of multiple data collection methods and analysis techniques, provides researchers with opportunities to triangulate data in order to strengthen the research findings and conclusions. Exemplary case studies will deliberately sort the data in many different ways to expose or create new insights and will deliberately look for conflicting data to disconfirm the analysis. Cross-case analysis divides the data by type across all cases investigated. One researcher then examines the data of that type thoroughly.
Step6. Prepare the report
Some researchers report the case study as a story. During the report preparation process, researchers critically examine the document looking for ways the report is incomplete. Some case study researchers suggest that the document review audience include a journalist and some suggest that the participants in the study should review the documents.
Chapter: 3
Golden Arrow: The World of Success
What is GASM?
Golden Arrow Sales & Marketing Pvt. Ltd.
WAS ESTABLISHED
IN THE YEAR 2004 ON 2nd OF NOVEMEMBER
Regd. No. CIN05219ORJ2004PTCO19858
TIN NO: 08931760106 PAN NO: AACCG2604B TAN NO: JPRG03450G
Promoter:
A financial group Phool Financial Services from Kolkata with a group turn over of >100 Cr.
Directors:
Naveen Jain (MD): A young and dynamic person with experience in marketing of FMCG and Packaging Industry for 5 years
Dharam Raj Bothra (Marketing Director): Experience of MLM/Network Marketing for 8 years
Vijay Bothra (Admin Director): A young personality having 10 years of experience in administration and Finance
Region:
We have our presence in 14 states of our country, which includes RAJASTHAN, UTTAR PRADESH, DELHI, GUJRAT, HARYANA, PUNJAB, JHARKHAND, ASSAM, WEST BENGAL, MAHARASTRA, ANDHRA PRADESH, ORISSA, CHHATISHGARH AND MADHYA- PRADESH
Head office:
F-70, Rampath, Shyam Nagar, Jaipur-302019 (Rajasthan)
Regd. office:
138, Meerji Ka Bagh, Behind MLA Quarters,
M.I. Road, Jaipur –302001
Vision & Mission
G - GALAXY A -ADROIT
O - OF R -RELIABLE
L - LEADERS R -REMARKABLE
D - DEDICATED O -OMNIPOTENT
E - ENTHUSIASTIC W -WISDOM
N - NAVIGATOR
The company’s Vision & mission is to develop every Person in a GOLDEN ARROW way, to lead his Life towards Success.
The MISSION is to create a consumer base for the products marketed by the company and to provide business opportunity to the unemployed youth(s). In the present scenario of boom in the field of Network Marketing the company wants to provide better pricing and quality of the products to over the middle class people of our country.
Mohd. Jawaid Waqar, Education Head & Orator of Golden Arrow say’s“Never hesitate to take decisions in life; you have to be an adroit person, which will make you an omnipotent. This can only happen if you are dedicated and enthusiastic towards your decision to achieve your goals, in this way you can navigate yourself and the people with you towards the success you all dreamt of, by doing so you will become a reliable and remarkable personality in your life.’’
The people with high aim always dreams big as they have an attitude to achieve their dreams and become a GOLDEN ARROW.
The only thing to change in you is your “ATTITUDE”, the day you change, and you will be a different person with an improved wisdom power, whose each step will move towards 3P’s Positive ness, Perseverance & Prosperity.
Hierarchy of GASM
Diagrammatic Presentation
Of
Hierarchy of GASM
MANAGING DIRECTOR
MARKETING DIRECTOR
ADMIN. DIRECTOR
HEAD EDUCATION
G.A.CHIEF
G.A.COUNSELLOR
G.A.MENTOR
G.A.DISTRIBUTER
HEAD PRODUTION DEPT.
HEADPACKING & DESPATCH DEPT.
HEAD ON LINE EDUCATION
HEAD SEMINAR & SYMPOSIUM
HEAD PROUDUCT & PRESENTATION TRAINING
Legal Aspects of GASM
Supreme Court and Minister of state, Union Ministry of Consumer Affairs, Food & Public Distribution on Certifying the Legal validity of Network Marketing in India
Mr. V. Sreenivasa Prasad, Minister of Sate in the Union Ministry of Consumer Affairs, Food and Public Distribution, answered a question in Lok Sabha on December 20th-2002 on Network Marketing or MLM.
Admitting that the Government had received proposals from the Network Marketing Industry requesting the enactment of a separate legislation to cover direct selling/multi-level marketing/network marketing, the Minister said the main contention of the representation was that members of the Industry were being targeted due to the vagueness of the Prize Chits and Money Circulation (Banning) Act, 1978 in distinguishing between prize chits funds and genuine agencies involved in direct marketing.
He went on to clarify the position by stating that the matter had been examined in detail in consultation with the ministries concerned. "The need for a separate legislation was not felt in view of the fact that there are adequate provisions available in the Sale of Goods Act, 1930 (for regulating the sale of goods); and the Consumer Protection Act, 1986 (to promote and protect the rights of consumers)," he said.
"The provisions of the Prize Chits and Money Circulation Scheme (Banning), 1978 seek to ban the promotion or conduct of prize chits and money circulation schemes. The provisions of the Act had come up for scrutiny before the Supreme Court of India which ruled that the `Network Marketing Plan' and direct sale of goods and services by the direct selling companies do not fall within the mischief of the aforesaid Act," the Minister added.
Chapter: 4
Golden Arrow: Business Plan
11 Types Of Income:
Direct Sponsorship
Whenever one introduces a person into the Business Plan one get Direct Sponsorship income of Rs. 1100/- each time. One can make as many direct sales as one wish.
Spill Incentive
Whenever one make a direct sale as spill one will get spill incentive as Rs. 100/- per new sale in his/her spilled sale’s network on cutoff basis.
Power of 2
After introducing two persons one in his left group and one in his right group one qualify for this income and one get Rs. 500/-* per pair of one left group and one right group sale till unlimited depth with a capping of Rs. 50000/- per week.
Aapke Dus
When one make 10 direct sales one get Rs. 10/- per sale from each and every sale made by all his direct sponsors till 5th generation.
Hamare Dus
Company provides ten down lines to work for and they will fetch Rs. 1/- per sale made by them till 5th generation (1 left & 1 right sale is compulsory to get this income)
Power of Repurchase:
Once one becomes a distributor of the company by purchasing any of the joining option packages offered by the company one will get the products marketed by the company on Distributor Price and on each and every Repurchase one will get point Value and every 100 PV will be converted in one virtual ID and will be counted on one’s weaker leg. One will receive Point Value for repurchase made by both of one’s groups and on every pair of 100 PV left group and 100 PV right group one will get Rs. 500/-* pair income with a capping of Rs. 50000/- per week
Repurchase Companion:
Repurchase companion is your cohort who helps one to money back, through company’s joining bonanza. Whatever one repurchases company will reimburse one’s expenses from end to end through company’s exceptional system.
Recognitions
The company has following Recognitions and Rewards for the Achievers:
1.Silver Club: Distributors who complete 50 pairs and 5 direct sales will be called silver distributors and will be rewarded with a silver club certificate. He will be qualified to get 1% royalty of all the repurchases of the company. (To get this income one has to complete 10 pairs in that month)
2. Gold Club: The Silver Distributor who promotes 4 Silver Distributors in his down line in a ratio 1:3, 2:2 or 3:1 and make 10 direct sales will be called Gold Distributor and will be rewarded with a Gold Club Certificate. He will be qualified to get 2% royalty of all the company repurchases. (To get this income one has to complete 20 pairs in that month)
3. Diamond Club: The Gold Distributor who promotes 3 Gold distributors in his down line in a ratio 1:2, 2:1 and makes 15 direct sales will be called Diamond Distributor and will be rewarded with a Diamond Club Certificate. He will be qualified to get 3% royalty of all the company repurchases. (To get this income one has to complete 30 pairs in that month)
4. Arrow Club: The Diamond Distributor who promotes 2 Diamond Distributors in his down line in a ratio 1:1 and makes 20 direct sales will be called Arrow distributor and will be rewarded with a Arrow Club Certificate. He will be qualified to Get 4% royalty of all the company repurchases. (To get this income one has to complete 40 pairs in that month)
5. Golden Arrow Club: The Arrow Distributor who promotes 2 Arrow Distributors in his down line in Ratio 1:1 and make 25 direct sales will be called Golden Arrow distributor and will be rewarded with a Golden Arrow Club Certificate. He will be qualified to get 5% royalty of the total company repurchase. (To get this income one has to complete 50 pairs in that month) (This royalty is on cutoff basis)
Rewards
If one makes seven pairs in a week from his joining date he gets 7 pairs in one week from one’s joining date one gets Foce Wrist Watch worth Rs.2440
If one makes 25 pairs in 15 days from one’s joining date one gets DVD Player worth Rs.3000/-.
If one makes 60 pairs in 30 days from one’s joining one gets a Washing Machine Rs. 6000/-60 Days:
If one makes 120 pairs in 60 days from one’s joining date one gets Frost Free Fridge worth 12000/-
If one makes 300 pairs in 100 days from one’s joining date one gets Laptop worth Rs.30000/-.
If one makes 2000 pairs in 365 days from one’s joining date, one gets Maruti Alto AC Car
GA FORCE
Golden Arrow Force /Grandiose Apex Force (A DREAM COME TRUE) GA Force gives one a chance to earn extra through one’s weaker leg. Help one’s weaker leg and secure one’s future. Grow step by step and earn more and more.
1. GA Mentor: The Distributor who makes his two direct sales and both of his two direct makes their two direct sales each, then he becomes GA Mentor and he starts earning Rs. 100/- on each sale in his weaker leg.
2. GA Counselor: The GA Mentor, who promotes two GA Mentors in his down line, one in his left group and one in his right group, becomes GA Counselor and he starts earning Rs. 200/- on each new sale in his weaker leg.
3. GA Chief: The GA counselor, who promotes two GA counselors in his down line, one in his left group and one in his right group, becomes GA Chief and he starts earning Rs. 300/- on each new sale in his weaker leg.
Bonus Buddy
A friend of all GA FORCE, whoever accomplishes the destination of this Force, shall be given bonus from the companies throughout sales of the particular month. Rupees one hundred from each new sale is accumulated in this fund called BONUS BUDDY and the amount is distributed to all GA Force associates who receives a GA Force check in that month.
Chapter: 5
Golden Arrow: Product Range & Joining Options
SUIT LENGTH
Any person can join the company by purchasing one 3 meters exclusive suit length worth Rs. 4550.00 and sponsor more and more peoples to earn money for oneself. Business Tool Kit containing Presentation CD, Broachers, Application forms, Pad, Pen in a lucrative Bag will be given along with the suit length.
LIC
One can join by purchasing one life insurance policy from LIC:
· Jeevan Tarang by LIC of India: Rs.12000.00
· Money back plan By LIC of India: Rs.15000.00
Education
A person can join the company by providing education to their children through distance education system brought by Golden Arrow through their education system channel partner M/s Academy Center who are dealing with following distance education universities
· Bhartiya Shiksha Parishad, Lucknow
· Navbharat Shikhsha Parishad, Rourkela
· RJSMS, Balasore
· University of California, California U.S.A.
· University Of Honolulu, U.S.A.
Foce Watch
A person can join golden arrow by purchasing one pair of wristwatch made by world famous "Foce" company. The price of the pair is Rs. 5800/- only with one full year replacement guarantee.
Website
Websites are the most common commercial tool required by each and every individual nowadays. In the current boom in IT sector all type of businesses and services are dependent on the web address. A person can join the company by purchasing an exclusive personalized website of 10 pages with one year hosting and 5 e-mail ID’s from Golden arrow for Rs. 15000.00. In this way he can earn lot of money through network marketing and improve his current business.
R.O. System
Reveres Osmosis is a scientific technology worldwide, which is proved to treat the water effectively and completely. The water is press through a semi permeable membrane with pores as minute as 0.0001 microns by high-powered booster pump. The complete removal of the tiniest particles like bacteria, virus, Cysts, Protozoa even the Ionic particles including TDS (Total Dissolved Solids), Pesticides and Heavy Metals from Drinking Water. Removes bacteria and virus completely from the water, leaving no chance of their reactivation after long storage or at favored temperature.
Birla Sunlife Insurance Policy
One can join by purchasing one life insurance policy from Birla Sunlife:
· Saral Jeevan By BirlaSunLife: Rs.12000.00
· Dream Plan By BirlaSunLife: Rs.12000.00
Oriental Insurance Policy
A person can join the company by purchasing a accidental plus hospitalization policy of Oriental Insurance Company where he /she will be covered for 100000.00 for 4 years. In this policy the policyholder will be entitled to get hospitalization cash up to Rs. 20000.00 per annum and in case of accidental death of the policyholder the nominee will get Rs. 80000.00
Share Market
Trade the Shares and Commodities through MLM
Join through opening a Demat Account with Rs. 15000.00 as advance brokerage and trade shares through M/s Guiness Securities Ltd. The joining Amount is Rs. 15000.00 against which you will be treated as advance brokerage cum margin money and will be adjusted against brokerage payable by you.
Induction Cooker
A person can join golden arrow by purchasing one induction cooker worth Rs. 6200/- with following Features: 1) 1,800W, 160 - 260V 2) Siemens IGBT built-in, prolong the service life 3) LED shows temperature, time and power 4) 7 cooking functions: cooking rice, making soup, hot pot, barbecue, heating milk, fry, porridge 5) 10 power adjustments: 100W, 300W, 600W, 900W, 1,000W, 1,200W, 1,400W, 1,600W, 1,800W 6) 10 temperature adjustments: 60, 80,100, 120, 140, 160, 180, 200, 220, and 270 7) 1 - 59 minute timing 8) Many faults automatic diagnose functions: special design of automatic inspection for pot, automatic switch off, low voltage protection, overload protection for current and voltage
Health Care
Noni
It is a FRUIT JUICE of the fruit “Morinda Citrifolia,” locally known as Indian Mulberry, and known in Sanskrit as “ACH”. Regular use of this fruit juice gives immense benefits to be healthy. This fruit was found to have been historically used widely by ancient civilizations. It is NOT A MEDICINE, but it helps to work medicines better. It helps medicines work more efficiently. GOLDEN NONI is a micronutrient to the Cells. It works at cellular level. Many researchers through out the world study the properties of Morinda Citrifolia. No other fruit juice works like Morinda Citrifolia, at the cellular level. It detoxifies the body, keeps energetic, gives a feeling of freshness and maintains the body to be free from disease. It helps sleep better. It is priced at Rs. 497/- per bottle of 400 ml
Home Care
Golden Arrow Detergent Powder is a best quality detergent powder useful both for Bucket wash as well as Machine wash. It is a powder with great fragrance and light colour priced at Rs. 85/- per 1 kg pack.
Golden Arrow Toilet Cleaner is made for clean and shining Toilet. It is priced at Rs. 45/- per 500 ml Bottle
Golden Arrow Fabric Whitener is a quality product for white clothes. It improves whiteness and shining of white fabric. It is priced at Rs. 9/- per 75 ml bottle.
Golden Arrow Detergent Cake is a cake for better washing quality without harming the skin. It is priced at Rs. 10/- per cake of 250 Gms
Golden Arrow Agarbati is an incense stick to be used regularly during Pooja in the morning and evening with great flavored fragrance. The regular use brings peacefulness in the home. Priced at Rs. 25/- per pack of 100 sticks.
Liquid Detergent: Golden Arrow Liquid Detergent is useful for all types of clothes with a good fragrance and shining properties. It helps the clothes to retain its shining longer. It is priced at Rs. 46/- per 500 ml Bottle
Golden arrow floor Deo Drop is an excellent floor cleaner and disinfectioner for house and commercial places. It is available in 100ml pack, which can be mixed with 2.5 liters of water to make 2.5 liters floor cleaner. It is priced at Rs. 79/- per 100 ml
Personal Care
Golden Arrow Shampoo is a herbal shampoo to protect hairs from early falling and dandruff. It increases the softness and lustrous ness of the hairs by regular uses.
Golden Arrow Hair Gel is Aloe Vera based Gel to give wet look to Hairs with great fragrance and light blue colour. It is priced at Rs. 125/- per jar of 250 ml.
This is a unique composition of natural Multani Mitti with Rose Water and Chandan powder to use as face pack for great fresh feelings. It also helps in treating pimples. Priced at Rs. 30/- per 100 Gms pack.
Golden Arrow Cold Cream is a herbal base cold Cream with natural Almond Oil. This is a face moisturizer for dry and wrinkled skin. It protects the skin from winter dryness and gives it a soft, radiant and youthful glow. It is priced at Rs. 125/- for 200 Gms pack.
Golden Arrow Fruit Cream is a facial massager with natural herbal fruit extracts. It is priced at Rs. 125/- per 200 Gms pack.
Golden Arrow Kanchan Kaya body lotion is one of the best formulation of natural Chandan Powder, Kesar,Jasmine,Almond Oil, Lemon Extractetc with Aloe Vera and is useful to get young looking skin. By regular use as directed for 45 to 60 days Skin begins to glow. It also prevents skin from UV rays of sunlight. A 100% natural product with no side effects. Priced at Rs. 251/-per 100 ml bottle
Golden Arrow Wrist Watch is available at Rs.259/-per Pc in both Gents as well as Ladies Models with one-year warranty.
Amla Hair Oil: Golden Arrow Amla Hair Oil is made by natural Amla and very good for all type of hairs. Priced at Rs. 49/- per bottle of 200 ml.
Golden Arrow Luxury soap is a normal bathing soap with fragrance of real roses. It is priced at Rs. 15/- per 75 gms cake.
Golden Arrow Premium Talc with unique fragrance keeps you fresh all day long. Priced at Rs. 50.00 per 200gms.
Good quality readymade shirt with free size. MRP Rs. 750/- for one pc
Agro Care
Agrowet 80: The unique product to enhance the expansion of water in irrigation and to increase the production of crop. Priced at Rs. 80/- per bottle of 250 ml
Grah Sudhi & Vastu
Vastu Dosh Nivaran Taral: The unique product for "Grah Sudhi". The use of this liquid will help you & your home from any type of Vastu/Bhumi Dosha. You will feel the positive results within 90 days of use. Direction for use: - mix to drops from bottle no 1 and two drops from bottle no 2 in 3 liters of water and clean complete floor of your house or commercial place daily. This Unique Product is priced at Rs. 1550/- per pack only
Refreshments
GASM has a tie up with different sweets and Namkeen making companies for refreshment product like Bhujia, Rasgulla, and Roasted Namkeens etc.
Chapter: 6
Comparison of GASM Vs. MLM Companies
This is a chapter containing comparison between GASM and other MLM companies. This comparison will be useful to convey detail information about GASM. There is plethora of comparison, so there is no strict format to follow.
1 The Payout Structure: Golden Arrow distributes commission in eleven ways that is exclusive & incomparable from any other company in multilevel & network marketing system.
M O D E
PAYOUT IN RUPEES
DIRECT SPONSOR
1100
POWER OF 2 (JOINING PAIR)
500
POWER OF 2 (REPURCHASE PAIR)
500
SPILL OVER BENEFIT
100
HAMARE DUS
01
AAPKE DUS
10
RECOGNITIONS
1 % EACH IN 5 CATEGORIES (REP)
REWARDS & AWARDS
LIFETIME
REPURCHASE COMPANION
REPURCHASE AMOUNT REFUND
GRANDIOSE APEX (GA) FORCE
3 DIVISIONS 100 PLUS IN EACH DIV
BONUS BUDDY
3 DIVISIONS 50,30,20 TO GA FORCE
2 Joining Pack: Golden Arrow has 13 different joining packs, this company does not impose anything to any new comers or to its distributors, and it is totally their choice to pick a pack from the list as per his /her desire or wish. The company has tied up with many leading insurance companies like L.I.C., Birla, Bajaj, Oriental and also with different leading manufacturers like Whirlpool, Bajaj Two Wheelers and many more, which are included in joining options or repurchase.
JOINING PACK
JOINING AMOUNT IN RUPEES
EXCLUSIVE SUIT LENGTH
4550
ORIENTAL INSURANCE
4550
GOLDEN NONI JUICE (6 BOTTLES)
5500
PAIR OF FOCE WATCH + SUIT LENGTH
5800
INDUCTION COOKER + SUIT LENGTH
6200
L.I.C ENDOWMENT PLAN
12000
R.O SYSTEM (WATER FILTER) + SUIT LENGTH
12500
L.I.C MONEY BACK PLAN
15000
BIRLA SUN LIFE DREAM PLAN
12000
BIRLA SUN LIFE SARAL JEEVAN
12000
SHARE MARKET + SUIT LENGTH
15000
FOCE DIAMOND (SINGLE PIECE) + SUIT LENGTH
8500
DISTANCE EDUCATION
As per University Rules
BUSINESS DEVELOPMENT KIT PROVIDED WITH EACH JOINING PACK
3 No Renewal Charges: Before going into the plan, I should mention an exceptional class of this company, whoever joins this company has a lifetime ID by which he is never off with it, somehow any person stops working for any of his/her reason may again start their work anytime at his/her convenience.
4 No Registration Fee: There is neither registration nor hidden cost for any new comer or distributor, new comer has to choose a pack and pay the price and then he will never ever have to pay a single penny to be attached with the company further in lifetime.
5 Instant Payout: The Company has named it “Direct Sponsor Income”. Any new comer introduced by the distributor (sponsor) as his first referral under his/her genealogy receives the first payout of rupees 1100.00. By this the sponsor gets inspired and enhance to work seeing that he/she received an instant payout of his/her effort. Rupees 1100.00 as a direct sponsor is first of its kind as other companies has a compulsion to introduce more either one or two for the payout.
6 Power of Two: The Company pays pair income through point system; the distributor receives 100 points (p.v) for each joining under him/her. While in repurchase every product has a point placed behind, purchasing saves points for the distributor and at the same time their whole up lines earn points too. Any distributor purchases 100 point products or accumulation from down line comes to 100 point is treated as a sale.
As the distributor completes the two direct sales (A&B) he receives Rs: 2200.00 as a direct commission and at the same time an extra payment of Rs: 500.00 are generated as he completes a pair of sale no other company pays two times on the same sale. Most of the company has this kind of pair payout structure, but this company has a surplus facility. After the first pair a distributor has a sale in any one of his/her leg and the second leg sale does not happen so no company pays out a single penny in any way but GASM pays out (through the repurchase of 100 point by the sponsor), which slips down virtually to make the payment or the group repurchase of 100 point is done in the required leg. (Capping rupees 50,000)
100 points of repurchase from group A and 100 from group B will always fetch rupees 500 to the sponsor, having the points under his/her genealogy. By this way, he will always earn from the repurchase made by their group people. This earning is no doubt possible in any other network marketing company but plan attached to this genealogy is unbelievable. The benefits & rewards related with this income are never thought before. It is the precious and valuable stone in the GASM. (Capping rupees 50,000)
7 Spill Over Income: Whoever makes a third or more sale in his/her extreme left or extreme right leg are always benefited by the direct sponsor commission, apart from this he starts earning rupees 100 from each A & B placed under the third or more sale till unlimited depth. Again this type of earning is in the most of the multi level or network marketing company. But added shocking income is related with the direct sale, the more you make direct sales the more royalty is earned by the earnings attached with the spillover income.
8 Hamare Dus: Outstanding earning plan, this is one of the best & definitely never thought or shaped by any other company. This is the USP of the company. As any one becomes the distributor of the company 10 distributors are placed under his/her genealogy, apart from the first position (power of two). The company places 10 distributors before the joiner joins any one, the distributors placed under the new joiners are the distributors joined prior to him/her. It may be his/her up line or from any other tree apart from his up line placements; it may be from anywhere, from the company’s tree. Whom the new joiner may not know and from their direct effort the company distributes Rs. 1/- for each placement under him till the 5th generation of the company’s rewarded 10 distributors. Total placement till 5th generation under these 10 placements, calculation comes to 11, 11, 100 distributors. This figure is calculated with rupee 1 turn to rupees 11, 11, 100. Any distributor who joins this company shall receive this royalty from the system as the placement is made. The only criterion is that whoever completes two sales (A&B) under his/her genealogy.
9 Aapke Dus: The Company chairs a position to any new comer logs in. This is the income related to spill over means the more a distributor spills the more he/she earns. The company here states in its plan that just sponsor 1 person in a month in your genealogy even if you miss 1 or 2 you will complete at least 10 in a year and teach your down lines to do the same, so by this you will be able to complete the fifth generation of your 10 directs in approximate time of three years. The company distributes rupees 10/- for each distributor placed by you or your down lines and the count turns into 1, 11, 11, 100 (One Crore Eleven Lakhs Eleven Thousand only). This is moreover a royalty provided by the company to the distributors, which is achievable by any common person who just hearts a little attention to the target. This genealogy is another one of its kind, which is not produced by any other company till date.
10 Recognition: Under this label company distributes five percent from its profit to the achievers who accomplishes the target in the plan framed. Silver club, gold club, diamond club, arrow club & golden arrow club are the targets to be achieved. The company distributes 1% additional in each category. Here the company proves to be help very much to grow their distributors to the mark by providing incentives from its own profit. It is commonly used in most of the companies in this profession.
11 Rewards: As the distributor involves himself/herself with the company, he becomes aware of the rewards, which the company has fixed for all the new joiners who steps in this company. All the rewards are fixed as a sales promotion method. Whoever completes the target in the stipulated time will be eligible for the rewards. These rewards motivate and inspire them to earn more and get some more from the same effort.
12 Repurchase Companion: This is an unexpected by any one as no one or no company has ever planned or thought of providing an income like this. It is incomparable income provided to the distributors of the company. Any distributor who completes the first criteria by completing its A & B becomes eligible to have refund of their total amount repurchased; every month any amount of distributors does the repurchase of any amount shall be refunded back their money next month onwards from the company’s most preferable system of the distributors. This system is another USP of the company, which does not allow any distributor to think of any other company.
13 G.A. Force: This income is another unique form of the plan by which golden arrow stands different from any other company. This income is divided into three different slabs to earn. A distributor has to qualify for the condition provided by the company. How a distributor qualifies… a distributor’s (directs) A & B has to complete their A & B, the distributor reaches to the first slab as G.A. mentor and starts receiving commission of rupees 100 from each sale without balancing from his/her weaker leg. Now here if he gets one G.A. mentor in its left wing and another in its right wing he will be promoted, as counselor and increment of rupees 100 will be added to its commission. Now one counselor to its left and one at right will fetch the distributor another additional of rupees 100 from the weaker leg stream as he/ she becomes the G.A. chief of the company.
14 Bonus Buddy: This is a reward to the achievers of G.A. force. The company saves rupees hundred per sale for the G.A. Force achievers. Whoever receives the payment in the running month shall receive the bonus from the bonus buddy. The company has bifurcated this income into 3 groups as rupees 50 to mentor, rupees 30 to counselor & rupees 20 to the chief shall be distributed from the collections of sales. Now the leaders are pumped up by this earning as they receive extra money for the movement they make.
15 Product: There are wide ranges of products like personal care, home care, health care, kitchen care, cloth care etc. So it increases the choice of customer and fulfills the requirement with good quality and economical range.
16 Transparency: All the information about the distributor is available on web page. There is software that maintains the genealogy of distributor. It provides the account information like Payout Cheques, repurchase income, and new joining. Online joining is one of the facilities so one can join from any where at any time.
17 Mix Plan of Level and Binary: It is the only company who has mix the plan of level and binary by this one can enjoy the fast earning of binary and royalty of level plan.
18 Social Fund: This Company is very socially aware and to fulfill its social responsibility it create a social fund for its distributor. By this fund company gives 10000/- Rs. to the nominee of distributor after his/her death.
19 Tie up with GATI: For providing efficient and fast courier and Cargo services Golden Arrow has tied itself up with GATI. It provides rapid services and increase customer satisfaction.
20 BDSA Approved: Bharatiya Direct Selling Association approves GASM. This shows its authenticity and makes it trust worthier.
21 Training Programme: In GASM training is provided by efficient, skilled and experienced faculty who are in this field from last 15 years when MLM was a newborn baby in India. The training grooms overall personality of the distributor and enable a person to hit the target.
22 24 Hours Customer Care: It provides 24 hours customer care facility to satisfy the query of the distributor.
23 Pan Card Mandatory: it is mandatory to quote pan in all transaction. Quoting of PAN on return of income and challan for payment of taxes is necessary to ensure accurate credit of taxes paid and faster processing of return of income.
24 Banking support: For convenience of Customer Company has it’s a/c with many banks like ICICI, The Bank of Rajasthan Ltd., HSBC, and HDFC.
Above comparison reflects that quality product and plan of GASM will provide prosperity to the distributor and it has a working culture for its distributor.
Chapter: 7
Findings & Suggestions
MLM companies are operating worldwide. These have been around us for years. After a study of MLM and Golden Arrow Sales and Marketing Pvt. Ltd results are analyzed and findings and suggestions are as follows:
MLM is literally the last bastion of free time enterprise, a system in which common people can invest a small sum and through sheer tenacity and perseverance market viable products to the circle of influence, build team to maximize sales and in due time rise to staggering level of financial and time freedom.
In MLM long tenure enthusiasm is required to get the result but it is lacking in many cases. GASM is a company in which intensive training programmes are conducted to increase enthusiasm more and more. MD’s of GASM have got leadership qualities and a group of leaders are with them GASM leaders believed in human values: honesty, hard work, and humbleness. …Thus the result has to come.
Some Humble Suggestions:
i. Product quality of GASM is up to the mark but more attention should be paid towards packing, wrapping etc.
ii. Griha Sudahi product is excellent as per quality and it’s effect but promotion an important aspect of marketing is lacking.
iii. GASM is Hi-tech but its distributors are not cyber friendly. So in the Meetings and Seminars such training and awareness should be aroused. Trainings should not be a formality but it should be intensive and Result-Oriented.
iv. Rewards and Recognition should the provided in public. It will boost the morale of other distributors and increase confidence level of the person honoured.
Bibliography
Books:
Waqar Mohd. Javed : Business Manual, Golden Arrow sales and Marketing Pvt. Ltd.
Robret T. Kiyosaki : Business School, Manjul Publishing House Pvt. Ltd.
A.H. Nimbaheda : Aasan Hai Network Marketing Karna, M.J.Publication.
Edward Ludbrook : Big Picture, Legacy Communication.
Edward Ludbrook : Fundamental of Network Marketing , Legacy Communication.
Anthony Grant PhD & Jane Greene: Coach yourself @work,BPI(India) Pvt Ltd
TJ Hoisington :If You Think You Can!,Manjul Books Pvt.Ltd.
Gordon L. Patzer : Experiment-Research Methodology in Marketing: Types and Applications, Quorum Books 1996
Websites:
www.goldenarrowindia.com
www.mlmonline.com
www.earnmore.in
www.mlmtribune.com
www.mlm.com
www.MakingOnlineMillionaires.com
www.TheMLMOutLawsTeam.com
www.AltractionMarketingMentor.com
http://en.wikipedia.org/wiki/Multi-level-marketing
www.mlmrankings.com
www.mlmlegal.com
www.mlmwatchday.com
www.mlm-thetruth.com
Subscribe to:
Posts (Atom)
