Advantage Marketing Systems, Inc. Essay

2166 words - 9 pages

Advantage Marketing Systems, Inc.

Advantage Marketing Systems, Inc. markets a product line consisting of approximately 103 products in three categories; weight management, dietary supplement and personal care products through a network marketing organization in which independent distributors purchase products for resale to retail customers as well as for their own personal use.

AMS follows growth strategy through acquiring other companies with compatible product line. The principle objective of the company’s acquisition strategy is to acquire other network marketing organizations that can be combined with the company’s net work marketing organization, resulting in increased sales volume with minimal additional administrative costs.
We recommend the company to follow its acquisition strategy in order to increase its sales. We also recommend the company to putt more effort in promoting its product line in order to decrease the risk of dependence on AM-300. We also believe that the creation of a research department is a necessity for the company in order to expand its product line and follow consumers preferences changes.

Introduction

The company history

Advantage Marketing Systems, Inc. was founded in 1988 by C.E.O. John Hail after his company T.V.C Marketing completed a five year marketing contract with Pre-Paid.
AMS markets a product line consisting of approximately 100 products in three categories:
· Weight management (8).
· Dietary supplement (28).
· Personal care products (63).

These products are marketed through a network marketing organization where independent distributors purchase products for resale not only for their own personal use, but also retail customers.

Based in Oklahoma City, OK, AMS had 77,800 distributors in September 30th 2000.

The company’s direct competitors are Shaklee Corporation, The A.L Williams Corporation, Mary Kay Cosmetics, AMWAY, Herbalife, Nutrition for Life International, Inc…etc.
Board of directors
The company’s board of directors is composed of”
- Hail, John W; Chairman of the board and Chief Executive Officer: Mr.Hail is the founder of AMS and has served as its Chief Executive Officer and chairman of the board of directors since its inception in June 1988.
- Williams, Joseph B; President: Dr. Joseph B. Williams was appointed President of AMS effective June 1, 2000. He is a member of the Turnaround Management Association, the L.A World Affairs council and the Singapore-American Association.
- Dungan, Jimmy L; director: Mr. Dungan has served as a director since October 1999. He has been actively working full time to develop an AMS distributroship with his wife, Pat, since August 1995.
- Dunlap, R, Terren; Director: Mr. Dunlap has served as Director of the company since June 1995.
- Stonecipher, Harlan C; Director: Mr. Stonecipher has served as a Director of the company since August 1995. He has been Chairman of the Board and Chief Executive Officer of...

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