Quixtar to Amway Name Change Memo

Here is the Quixtar to Amway name change memo from Steve Van Andel and Doug DeVos:

To: Global Directors and Above
All U.S. Employees
From: Steve Van Andel and Doug DeVos
Date: June 5, 2007

In January, we kicked off a global effort to transform our business, under the title Growth Through Innovation. It’s been an exciting time, because wherever we look, we can see signs that we are changing our business for the better.

We want to announce one of those changes to you today.

The realities of a crowded and competitive global marketplace have made us realize that we need to “fly one flag” – to put significant resources behind establishing one opportunity brand wherever we do business.

That brand will be Amway, in North America and all over the world.

This is not an overnight change – the public won’t see the Amway name on the front of our North American business for another 18-24 months.

That’s because this is – this has to be – more than just a name change. We want other key elements of the transformation initiative to be in place before we invite customers in to see the new Amway.

Why it matters

There is a solid business case behind the decision to “fly one flag.”

It’s not about emotion, not about nostalgia.

We’ve only ever had one goal. We want to build, consistent with our values, the biggest and most successful business we can for as many people as possible.

And the Amway brand is the one that gives all of us and all of our IBOs the best chance to be successful.

The reality is, we cannot force consumers to sort out a tangle of opportunity and product brands. We need to be clear about who we are.

And the Amway brand still stands out from the clutter of the marketplace – even the clutter at our own company.

That awareness is an advantage – because competition for consumers around the world is more intense than ever before. Better-focused competitors are gaining market share globally – and, in some markets, passing us by. Brand focus is one of the ways we are beginning to fight back.

Research has shown us that the Quixtar name is weaker and less known in the U.S. and Canada than we ever expected. Meanwhile, even eight years after leaving North America, the Amway name is stronger and better known than we realized.

Are there still reputation challenges associated with the name in the U.S? Yes. But there is also clear evidence that the negatives are dissipating – and that we can turn those negatives around.

In fact, one of our biggest surprises came when we looked at survey research following our television ad campaign last year in Michigan. The “I Am Amway” ads helped us improve key aspects of our reputation in Michigan by 15 to 30 percent.

That was one campaign in one state – in an environment where Amway was under attack – and the public showed they were willing to believe in us again.

And it made us think: What if we put everything we had – all the resources of this business – into establishing one name around the world?

We’re going to find out. And believe us, you will hear a lot more as we go along.

The other obvious question in announcing Amway’s return is, what happens to the Quixtar, Access and Alticor names?

The Quixtar name will fade away as Amway returns. Access and Alticor will continue to exist as legal entities – but, to the public and the marketplace, we will all be Amway.

What’s next

The most important message to remember: We are changing our business, and not just changing a name.

In fact, we are listening to feedback about our business like never before. Consumers, ambitious IBOs, even regulatory agencies – they are all telling us it is time to take action to make our business better, more competitive and more transparent.

And that is where many other elements of the transformation initiative come in. Not just for North America, but for the world.

We are going to build a business that:

• Offers terrific, timely, competitive new products that reflect consumer demand
• Focuses intensely on IBO profitability and making new IBOs successful from the day they enter the business
• Thinks through our brands and how we present them to help us build awareness in the marketplace
• Invests heavily in advertising, communications and other methods of brand building
• Creates a new approach to training that teaches new IBOs how to sell successfully and build a balanced business

Today marks the beginning of the real conversation about the transformation of our business. We will keep this channel of communication open – and busy – as our transformation steams ahead.

But for today, yes, it’s true: A great name will proudly fly the flag for a terrific new way of doing business.

We’ll tell you when we circle the date on a calendar. But it’s going to be a brand new day.

Best,

Steve and Doug

Comments

[Doug_G]

So, does the whole Quixtar experiment seem a little convenient? I mean DV and VA were getting up there in age and inheritance taxes are pretty steep. Could the reorganization of Amway into Alticor, Quixtar, Access, etc been a method of avoiding taxes? Amway has a history or being shady with taxes (at least in Canada). So, DV and VA or pretty much out of the picture and now the company is reorganizing again into Amway. Doesn't that seem odd to anyone else?

[G to the M for those in the know:P]

No Dougie, just you and your tin-foil hat.

[Doug_G]

The only folks who need the tin foil hats are the ones who follow a 2-5 yr plan for 10+ years and still have yet to see any profits.

[RockinThePlan]

Actually the only people that need tin foil hats are those that are following a 40 year plan till death and waste the time they could be spending working a 2 to 5 year plan that may take 10 years by complaining about rich people that will make money with or without them.