A

PROJECT REPORT
ON

Marketing strategy

Of oriflame

(With special reference to Raipur)

Submitted In Partial Fulfilment for The Award Of The Degree

Of Bachelor Of Commerce
YEAR 2013-2014

INTERNAL GUIDE SUBMITTED BY

Miss ANUBHA RANI REED SURBHI SURANA
ASSISTANT PROFESOR ID NO MU11BCM192
MATS UNIVERSITY

SCHOOL OF BUSINESS STUDIES, MATS UNIVERSITY RAIPUR (C.G)

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 ACKNOWLEDGEMENT

It was a enriching and learning experience for me to do this project. I would like

to acknowledge all those people who have continuously guided me throughout

and helped me in completion of my project “MARKING STRATEGY”.

I am obliged to the Anubha mam and Madhusoodanan sir for being extremely

patient, for guide me right from the inception till the successful completion of

the project. I sincerely acknowledge them for extending their guidance, support

for literature, critical reviews of project and the report and above all the moral

support they had provided to me with all stages of this project.

I would also like to thank to all the respondents who have helped me for

collection, of data for their honest participation in the research and helped me

directly or indirectly in successful completion of this study for their help and

cooperation throughout the project.

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 CERTIFICATE FROM THE GUIDE

This is to certify that this project entitle “ A project report on MARKETING

STRATEGY ” with special reference to “PRODUCT OF ORIFLAME”

submitted in partial fulfillment of degree of behavior of commerce to the MATS

UNIVERSITY Raipur (C.G) done by Miss Surbhi Surana, ID No.

MU11BCM192is authentic work carried out by him under my guidance. The

matter embodied in this project work has not been submitted earlier for award of

any degree or diploma to the best of my knowledge and belief.

Signature of guide

MISS. ANUBHA RANI REED

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 CERTIFICATE

This is to certify that this project entitled “Marketing Analysis of Oriflame”

submitted in partial fulfillment of the degree of Bachelor of Commerce to
MATS School of Business Studies, MATS University, Raipur, C.G., prepared
by Surbhi Surana, ID MU11BCM192 is a result of sincere and authentic work
carried out by him/her under the guidance of Mrs. Anubha Rani Reed, faculty,
MSBS. Submission of this project is mandatory for award of his/her degree.

Date:29th March 2014 Head of the Department

MATS School of Business Studies
MATS University, Raipur, C.G

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 DECLARATION

I hereby declare that this project entitled “On Consumer behavior” with special

reference to “PRODUCT OF AMWAY” done by me is submitted to the mats

school of management.

Studies and research Raipur (C.G) in the partial fulfillment of degree commerce

under the guidance of Miss Anubha Rani Reed is a benefited work and it

submitted to any other university or institute for any degree or diploma

Signature of student

Surbhi Surana

ID No.MU11BCM192

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 Table of Contents
CHAPTER CHAPTER Page no.
NO.

1 INTRODUCTION 7-10

2 STATEMENT OF PROBLEM 11-12

3 WHY THIS PARTICULAR TOPIC IS CHOSEN? 13-14

4 OBJECTIVES AND SCOPE OF STUDY 15-17

5 MARKETING STRATEGY 18-22

6 PRODUCT OF ORIFLAME 23-31

7 FIINANCIAL & STRATEGIC ANALYSIS REVIEW 32-36

8 RESEARCH METHEDOLOGY 37-40

9 MAIN REPORT 41-69

10 COMPARITIVE STUDY 70-72

11 FINDINGS & RECCOMENDATIONS 73-75

12 COCLUSION 76-77

BIBLOGRAPHY 78-79

SAMPLE QUESTTIONAIRE 80-83

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 CHAPTER 1

INTRODUCTION

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I N TR O DU C TI ON
Oriflame is an internationally successful company providing consumers

w i t h Scandinavian natural skin care and cosmetic products marketed through

direct sales systems. In accordance with its vision, it started its operation in the largest

consumer market of world in India in July 1996 through a joint venture. Now, the

company has good reputation among Indian consumers, but its direct sal

es, s ys t e m .

M u l t i l e v e l m a r k e t i n g s y s t e m s h a s m a d e t h e a c a d e m i c s a n d practitio

ners of Indian corporate market to focus centrally on the issue. It is in

thisc o n c e r n t h a t , f i n d i n g t h e i s s u e m o s t i n t e r e s t i n g l y; I s e l e c t e d t h i s t o p i

c a n d company for my final year project. The present study makes an attempt to

inquire about the impact of innovation in marketing system (direct marketing

and multi-level marketing) on Oriflame’s performance in relation to making

improvements in customer service system. For this study both the primary and secondary

methods of research methodology have been applied. Based on these a brief findings and

analysis follows. After the completion of whole study, plainly suitable suggestions

and recommendations h a v e b e e n m a d e , w h i c h w o u l d b e u s e f u l n o t o n l y f o r

t h e f u t u r e o p e r a t i o n o f Oriflame, but several other companies wishing to adopt the

concerned marketing s y s t e m , m a y l e a r n a l o t a n d i n t h i s w a y t h e u t i l i t y o f

t h i s s t u d y g o e s w i t h o u t saying.

Oriflame is a cosmetics company that sells high-quality natural. Skincare and cosmetics

products through Home Beauty Demonstrations or Catalogues.Direct sales allow customers to

get advice and inspiration from people theyknow and trust. Buying direct is reliable and

convenient.Being an Oriflame Sales Consultant means unlimited income and

careeropportunities, personal development and a sense of belonging to a friendlyglobal

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community. Oriflame as a company is characterized by a can-do spirit, a decentralized

management and a young and entrepreneurial atmosphere.

Oriflame set up a service center in Delhi to recruit the first level of distributors.

These were the people usually known to the officials of the company and were c a l l e d t h e

core group”. These distributors had the authority to recruit more

distributors who are called. the “downline”.So, the chain goes o

n a n d i s multiplied. Now, the distributors who are recruited by the company are

allowed only to sell to friends, relatives and acquaintances. Oriflame range of Skin-

Care and color cosmetics products are deliberately premium range of products is hardly

likely to be effective and runs the danger of degenerating into forced selling. In India, the

salesman is still looked upon with suspicion. As a result, the products he harks

will hardly be viewed with confidence. E v e r y O r i f l a m e d i s t r i b u t o r s s t a r t s t h e

s a m e w a y. O n e h a s t o b e r e c r u i t e d b y another Oriflame distributor. The trick is to

look for a distributor profile, which is similar to the target customer. The

Distributor Application form is to be filled by the person.

The prerequisites visit are that the person should be more

than 18years age and should be introduced by an existing distributor. Once the form isdeposit

ed with a registration fee of Rs. 800/- a starter kit is being provided. This is a unique sales

kit having product samples and literature this is to be used as

adisplay and demonstration tool to start the business. This kit also contains freeAF and distrib

utor order forms

The distributor once ready to enter the real market and approach the customers has to

proceed in a systematic manner. The daily schedule (photograph).The initial expected

goal should be to service 20 regular customers, and to call on them at least once a month. This

is way to give personalized service and establish business with a steady income. The

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sales start by taking orders right there on visits to the customers. This brings in

the income with the products being ordered by an order form at the Head Office.

The company provides a credit facility to all its distributors. It extent accredit limit

of Rs 5000/- where products worth of this amount can be picked up and sold to the

customer. Distributors order products at the Distributors price

and sell products at the recommended retail price. There is a mark-

up 255 on all products purchased, at intensively trained not only about the product range but

Also about the nuances of direct selling.

Introducing Oriflame:
Oriflame is a cosmetics company that sells high-quality natural

Skin careened cosmetics products through Home Beauty Demonstrations or Catalogues.

Direct sales allow customers to get advice and inspiration from people they know and trust.

Buying direct is reliable and convenient. Being an Oriflame Sales Consultant means unlimited

income and career opportunities, personal development and a sense of belonging to a friendly

global community. Oriflame as a company is characterized by a can-do spirit, a decentralized

management and a young and entrepreneurial atmosphere.

Oriflame cosmetic
Oriflame Cosmetics is one of the world‘s fastest-growing cosmetics companies, selling high-

quality natural skincare and cosmetics products through an independent sales force outside the

traditional retail environment. Oriflame Cosmetics has a presence in 59 countries and is one

of the market leaders in over30 countries. A direct sales force of 2.2 million independent sales

consultants markets a complete range of high-quality skincare products, fragrances, and

cosmetics.

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 CHAPTER 2

STATEMENT ABOUT PROBLEM

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Statement about the problem:

Though such market is assumed to be in never lasting demand but there are certain problems

that this market regularly faces. These problem may include:-

 Uncertainity to the costs of even most economic sources of energy.

 Customer dissatisfaction due to unavaiblity of desire brands or low response by staff.

 Most importatntly Very High Competition that induces heavy rate cuts to survive

Beauty is the essence of every human being. Many of us might not be aware of beauty

product,. Every beauty product differs accordingly to its brand. Oriflame is a latest brand

chosen and used by many consumers. We have chosen this project to analyze how far the

Oriflame products are satisfied to the customers in Chhattisgarh.

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 CHAPTER 3

WHY THIS PARTICULAR TOPIC IS

CHOOSEN

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I s e l e c t e d t h i s t o p i c a n d company for my final year project because present study

makes an attempt to inquire about the impact of innovation in

marketing system on Oriflame’s performance in relation to making improvements in

customer service system .For this study both the primary and secondary methods of research

methodology have been applied. Based on these a brief findings and analysis follows. After

the completion of whole study, plainly suitable suggestions and recommendation

sh a v e b e e n m a d e , w h i c h w o u l d b e u s e f u l n o t o n l y f o r t h e f u t u r e

o p e r a t i o n o f Oriflame, but several other companies wishing to adopt the concerned

marketing’ s s t e m , m a y l e a r n a l o t a n d i n t h i s w a y t h e u t i l i t y o f t h i s s t u d y

g o e s w i t h o u t saying.

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 CHAPTER-4

OBJECTIVE AND SCOPE

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Objectives

 To study the consumer preference towards Oriflame products.

 To know the opinion of consumers toward Oriflame product.

 To influence the people to prefer Oriflame product.

 To find the satisfaction level of consumers.

 To know the variety of products, discounts and offers in using theOriflame product.

 To study the services provided by the agents of Oriflame products.

Scope of the study:

This project was chosen to know about the customer satisfaction towardsoriflame in

Chhattisgarh. To know the mind set of people towardscosmetics. How oriflame has impact on

the minds of the customers

Importance of beliefs

Although the sugar manufacturers would undoubtedly like to decrease theimportance of

healthy teeth, it is usually not feasible to make beliefs lessimportant--consumers are likely to

reason, why, then, would you botherbringing them up in the first place? However, it may be

possible tostrengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may

advertise that it is extremely important for women to replace iron lostthrough

menstruation. Most consumers already agree with this, but thebelief can be made stronger.

Add beliefs
Consumers are less likely to resist the addition of beliefsSo long as they do not conflict with

existing beliefs Thus, the beef industry has added beliefs that beef:-

(1) is convenient

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(2) Can be used to make a number of creative dishes.

Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which

sounds quite plausible to most people.

Change idea

It usually difficult, and very risky, to attempt to change ideals, and only few firms

succeed. For example, Hard Candy may have attempted to change the ideal away from

traditional beauty toward more unique self-expression.

Benefits:

• A single set of figures producing the same bottom line

• An integrated financial plan, aligned with all local plans

• Higher forecasting accuracy

• Integrated business management

• Ability to adapt processes and strategies at short notice in response to marketConditions.

Trends:
Solid growth and a continuous move towards more premium productscontinued in 2008.

However, considering the current recession we will a stronger demand for low price concepts

in the years to come. Inparallel we are seeing a rising demand in the youth and male

segments. There isalso a continuous increase in the market for natural and organic

ingredients. Thisfollows the growing trend for a more holistic stance on beauty, health

andwellness. More and more cross-industry innovations are appearing on the market

Combining health, beauty and food.

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 CHAPTER-5

MARKETING STRATEGY

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M A R K E T I N G S T A T E G Y
W H A T I S D I R E C T S E L L I N G ?

Direct marketing is an important aspect of the strategic P; penetrating. Direct

selling is an ultimate crucial step in offering value to the customer. “The companies say

that direct marketing identifies the unfulfilled needs of the ordinary customers. The

customer would rather be happy if he receives a product of his choice with proper service

person. They (customer) rather think that direct s e l l i n g i m p i n g e s o n t h e c u s t o m e r ’ s

p r i v a c y a n d i n t h e e n d t h e a p p e a l t o t h e customer is lost. Direct selling- When

a company bridges the last link in the genetic value-chain between the retailer and

the residence, and sells its products at the customer’s door steps itself, the process of direct

selling is complete. Few years back any companies, believed that direct selling will not work

in this country for them or for them or of the customer. In the post liberalization

area, with the dynamic market conditions the importance of direct selling is

being realized and more and more companies, are opting for

t h i s e x p e n s i v e b u t effective routs. In today’s market place the sales- driven company

must transit to a customer-oriented one. “Smart companies” – do not just sell and demanding

customers do not just buy

It all started with a small group/community of people coming up with the idea

of circulation of certain commodity on demand.

The circulation area was limited to dose friends and relatives.

•A s o r t o f v e r b a l s a l e s p r o m o t i o n e n t i r e l y o n b a s i s o f f a i t h a n d p e r s o n a l

contacts.

•Gradually, the circle grew

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•E.g. – Reader’s digest launched through direct selling where the magazineswere available to

customers by post on demand basis. It is only through thismethod of circulation that

an extensive network was established in the entire world for the Reader’s Digest. Today it

enjoys one of the largest circulation ‘sin the world.

•Bull worker- German Company (35 years.)Starting –ads in magazines. Still it is

restricted to magazines ads, only never s e e n i n a n y s h o p . T o d a y i t i s a l s o

o n e o f t h e m o s t p o p u l a r G ym . I t e m s a n d exercising machine. India only adopted

this and one every popular coy came up with attractive results-Eureka

Forbes.Today, many companies have adopted the multilevel marketing model. Theseare

Amway, AVON, MODICARE, OFIFLAME, LBH, EUREKA FORBES.

Bull worker- German Company (35 years.)Starting –ads in magazines. Still it is

restricted to magazines ads, only never s e e n i n a n y s h o p . T o d a y i t i s a l s o

o n e o f t h e m o s t p o p u l a r G ym . I t e m s a n d exercising machine. India only adopted

this and one every popular coy came up with attractive results-Eureka

Forbes.Today, many companies have adopted the multilevel marketing model. Theseare

Amway, AVON, MODICARE, OFIFLAME, LBH, EUREKA FORBES.

After all, these companies have realized that, what could be more effective than aface

to face dialogue between a salesperson and a customer. In an environment where the latter

is utterly receptive – her home – whereby, the salesperson has

acomplete control and attention of the customer, which is very important tocomm

unicate (to him) the attributes of his product.Direct selling is a very important

technique in this complex and com0eptitivemarket place. It encourages the salesman

to go out and clinch a deal. But at thesame time direct selling could result in the lifelong

loss of a potential buyer, if itdoes not maximize customer value. The whole sale has to be

carefully planned and thought over even before making the first call at

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a prospective customer, which is of course, not very easy always. Because, it

only takes a minute to clinch a sale but choosing the right minute to contact the

customer involves a day’s work for a direct marketer. This is all the more necessary

because the direct marketer is much like an uninvited guest and, therefore, must ensure that he

does not impost on the customer’s time. Thus, direct sellers can offer additional value by

placing a premium on the customer’s time. Times are changing and it is the ‘performance’,

which is being valued today and not just the product. So for companies like Eureka Forbes

which has to introduce and sell a concept not just the product direct selling was the best

alternative. For many cosmetic manufactures also. The direct contact between the

distributors ensures that the latter actually gets to experience how smoothly a lipstick can be

Applied, or how oil free a moisturizing lotion

id direct Selling, therefore, is notabout crude sales calls but a carefully crafted performance w

hen the product’sv a l u e t o t h e c u s t o m e r i s c l e a r l y d e m o n s t r a t e d .

T o d a y t h e n e e d i s t o s e l l performance, not just products. Even in the

case of industrial products, the performance – over product equation holds

equality true in case of INDAL, which sells its aluminum sheets directly. When

its salesmen were trying, to introduce aluminum applications, they faced

resistance from automobile body builders. They said, ‘aluminum applications

was unfit to the used as a roofing material sine it would get corroded by bird

dropping and would, therefore, lead to holes in the roof. A desperate INDAL, salesman

began carrying samples of aluminum sheets with d a ys o l d b i r d d r o p p i n g s

with him to prove to builders that INDAL’S sheets would not

g e t c o r r o d e d . T h e b u s m a n u f a c t u r e r s s t a r t e d r e p l a c i n g s t e e l w i t h cheaper

and lighter aluminum. “It is only

through direct selling that needed flexibility can be mat”. Clearly, bfocusing our performance,

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and not first the product, the direct marketer can fully demonstrate the value proposition to

the customer. Direct marketing companies have an advantage over conventional selling is that

the relationship between k he company and the customer starts

building even before a sale is made. The salesperson have the satisfaction of generating a

pool of goodwill because. “A satisfied customer in our best salesperson

Thus the evident advantages that direct selling have over conventional selling can
be summarized as:

The direct selling works on the basis of a distribution channel, which relies

on personal touch. Direct selling has some specific advantages for the customers.

1. Provide time for family and relaxation with is becoming a scarcity.

2. It provides convenience of ordering goods from home.

3.Others personalized service, demos, satisfaction and Customer protection asth

emost essential attribute

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 CHAPTER 6

PRODUCT OF ORIFLAME

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PRODUCT OF ORIFLAME
Special Quotes from Brochures:

1. Excellent Product formulation

. 2.Best of nature and science put together.

3. Good skin doesn’t come off the shelf-it needs special effort from,

special products.

4. “Natural” is the Key Word.

5. Primarily into skin care.

Oriflame combines Scandinavian beauty secrets with the most modern research

Technology, which has led to the development of products, built on active natural

ingredients. The result is a remarkable collection of state-off-the –art skin

care products that will help users look & felt their best. In today’s increasingly

harsh environment it is essential to discover ways to combat the dangerous effect

on stress. Oriflame is pursuing research into skin care

to ensure health, safety and environmentOriflame products are developed and

produced at manufacturing plants in Europe, which is sited in pollution-free location.

The cosmetics are developed, refined and evaluated in Ultra-Modern

Laboratories before being produced under the strict micro biological and analytical

guidelines required as laid down by the European Union. The company has a

policy not totest any of the products on animals. Instead, they are tested on human

volunteers in controlled laboratory conditions under the supervision

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of an internationally recognized professor of Dermatology. Legendary

botanical research provided them the inspiration.

Carefully chosen plant extract work together in perfect harmony to create

gentle highly effective formulations.

Some of the natural ingredients used by Oriflame. Are:

1. Camomile : A delicate flower.

2. Witch Hazel: Its leaves & back.

3.Birch: Tree of Venus: Its birch is the foundation of Oriflame basis

s k i n care range.

4.Comfy: Its root is used.

5. Wheat Germ Extract.

6. Hawthorn: Fruit & Flower.

7. Marigold: Flowers & leaves. It is a proven herb even in India Ayurveda.

8. Coltsfoot- leaves & Flowers.

9. Wild pansy.

10. Aloe Vera: Renowned natural oil.

All these chosen were the “pick of the crop” with a history and reputation for their

soothing, calming, healing, cleansing, toning and rejuvenating properties. The

products are thus totally vegetarian formulated by purely plant extract,

without the use of any animal ingredients. The packaging is also

d o n e i n environmentally friendly components as far as possible. Thus,

Oriflame has permission to use some special logos along with its products, which ensure the

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aboveprincipals. Oriflame products are so safe and pure that they can be used even

by Vegans by any fear, being purely vegetarian.

The products as classified into 4 major categories:

1. Natural Skin Care

Oriflame has developed different skin care lines, to suit varying ages and skin

types. The purifying range is a basic skin care region for young skin and is

aimed both for me & women. The Oriflame

Natural skin care system for normal. Drya n d o i l y s k i n i s a c o m p r e h e n s i v e

r a n g e o f p r o d u c t s . T h u s O r i f l a m e f i r s t emphasizes its distributors

to help the customer identify the real skin type and then recommend the best skin care

system for that particular skin. The use

of heright product only will yield those magical results which Oriflame aims at.

The Royal Velvet range

Is specially formulated to provide dry & mature skinswith the rich lubrication they

need to help minimize fine lines and smooth out wrinkles.

The purifying range is for young and oily skins.

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Especially for teenagers, more active and prone to access, pimples and rashes.

This range is for cleaning

and purifying the skin, which is susceptible to injury due to extensive pollution &sun. Now,

Oriflame has introduced

New range especially for India skin and weather conditions.

They include the sun protection and fairness creams. This range is expected to do

very well in India as the fair & glowing skin is always aspired byIndians. Oriflame

emphasizes that this skin care range should be used as a system in 3types:

Cleanness, Toners and Moisturizer. For extra care of skin care of skin theface

pacts and scrubs are available which are not be applied in small quantities. T h u s , t h e s k i n

c a r e r a n g e c o v e r s t h e o v e r a l l c o l l e c t i o n o f p r o d u c t s a s p e r required by

customers.

2. Color Cosmetics & Make Up

Oriflame color cosmetics allow your customers to choose the look they desire.

There is foundation to provide the prefect base for any make-up and a range of

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Color for eyes and tips to add the finishing touch, this range included some

absolutely new products for India. People have been purchasing these

u n i q u e items on their visits abroad, but now they are being available in India.

3. Toiletries

Oriflame offers a wide range of toiletries using natural active ingredients in

hair care, foot care & body care, suitable for whole family. There are special products.

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4 . F R A G N A N C E S

Oriflame take natural ingredients & oils and blends them together to create a range of exciting

fragrance far other men & women. They have deodorants, perfumes, after shaves and

colognes will scintillating fragrances to choose from. The have introduced a

concept. Every perfume resembles a triangle. Top Note- The first thing that is smelt, for few

minutes. Heart- The body note of heart, which gives character and richness. Base- The basis is

the fixative, which gives lasting power & aromatic warmth.

All products are very specific and unique in formulation. They are developed

keeping in mind special skin types and varying needs of humans. It is therefore very

important that their application and use is also done will care. The products are expected to

yield desired results only on proper applications as results only on proper application as per

instructions. For their purpose the distributors are given special training about products

and their application. The distributors help the customers to identify their skin type

and special requirement and only then after them the right products. This distribution help

the customer to identify their skin type and special requirement and only then after

them the right product. This ensures very effective and quick results of these products.

The products are a result of long and laborious research by skin

s c i e n t i s t i n Dublin.

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The maximum Treatment cream is a result of 7 years of research carried o u t t o

provide mature skin will all the possible care and treatment. All

t h e products are very effective so they are to be applied sparsely. Excessiveapplications won’

t yield results. The products are such they won’t cause anyharm as for allergies or

irritations on normal application and condition. But if applied on

wrong skin types or more than required amounts they may cause problems in few

causes. For this reason Oriflame emphasis on proper care while selling of products only

by trained distributors . Though Oriflame is confident of its preparations provide they are

used for

correctpurpose, using directions as given. It says its products should not cause injury.But in

case of any allergy or harm to the users it assures to return back full value of product.

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Page 31
 CHAPTER 8

Financial and strategic Analysis Review:

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FINANCIAL AND STRATEGIC ANALYSIS REVIEW:
Oriflame cosmetics S.A. (Oriflame) is a cosmetics company based in Luxembourg. Through

its subsidiaries, the company is engaged in offering natural skincare and cosmetic

products, including lipsticks, fragrances, toiletries, color cosmetics, and accessories. Oriflame

distributes its products through network of 2.3 million independent sales consultants in Latin

America, CIS and Baltic, central Europe and Mediterranean, Western Europe, Asia, and

Africa. Currently, operates five cosmetic manufacturing plants in Poland, Sweden, India,

china and Russia. That comprehensive SWOT profile of Oriflame cosmetics S.A. provides

you anon-

Depth strategic analysis of the company’s business and operations.

The profile has been compiled to bring to you a clear and a unbiased view of the company‘s

key strengths and weakness and the potential opportunities and threats.

SWOT Analysis

Strength:

1. Easily available products in residential areas, at parlors and sold by people whom

customers

2.Release catalogues frequently with offers on products

3. Customers get help from sponsors who help them as a consultant choose product according

to their skin type, climate etc

4. Established brand name since 43 years

5. Provides natural beauty products through an independent sales force of over 3 million

people

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Weakness:

1 .Lack of promotional activities through mass media

2.Depends on the network of individual sponsors on most of its distribution and available in

very few stores

Opportunity:

1. Develop deeper distribution network

2. Expanding in rural areas.

Threats:

1. Aggressive price competition from local and multinational players

2 Availability of cheap beauty products

3. Presence of many established brands at one place in the stores thus giving customers

variety.

This comprehensive SWOT profile of Oriflame Cosmetics S.A. provides you an in-

depth strategic analysis of the company‘s businesses and operations.

The profile has been compiled by Global Data to bring to you a clear and an unbiased view of

the

company‘s key strengths and weaknesses and the potential

Opportunities and threats. The profile helps you formulate strategies that augment your

business by enabling you to understand your partners, customers and competitors better.

Page 34
Oriflame Cosmetics S.A. (Oriflame) is a cosmetics company based in Luxembourg. Through

its subsidiaries, the company is engaged in offering natural skincare and cosmetic

products, including lipsticks, fragrances, toiletries, color cosmetics, and accessories. Oriflame

Distributes its products through ante work of 2.3 million independent sales consultants in

Latin America, CIS andBaltic, central Europe and Mediterranean, Western Europe, Asia, and

Africa.Currently, it operates five cosmetic manufacturing plants in Poland, Sweden, India,

China and Russia.The company is also engaged in environmental and social activities

including co-founding the World Childhood Foundation and the LiveliestFoundation. The

company is headquartered at Luxembourg, Luxembourg.The company reported revenues of

(Euro) EUR 1,319.67 million during the fiscal year ended December 2008, an increase of

18.95% over 2007. The operating profit of the company was EUR 178.64 million during the

fiscal year 2008, an increase of 37.86% over 2007. The net profit of the company was EUR

124.39million during the fiscal year 2008, an increase of 35.24% over 2007.This company

report forms part of Global

Data‘s ‗Profile on Demand ‘service, covering over 50,000 of the world‘s leading companies.

Oncepurchased, GlobalData‘s highly qualified team of company analysts will

comprehensively research and author a full financial and strategic analysis of Oriflame

Cosmetics S.A., including a detailed SWOT analysis, and deliver this direct to you in pdf

format within two business days. (Excluding weekends)Upon ordering, this SWOT profile

will be updated and delivered direct to your inbox within two working days.

Page 35
S T P of oriflame

Segment:

Middle market price segment.

Target Group:

Women purchasing products on the suggestion of sponsors at the comfort of their homes or

trusted salons.

Positioning:

Provide natural cosmetics.

Page 36
 CHAPTER9.

RESEARCH METHEDOLOGY

Page 37
RESEARCH METHODOLOGY

5.1Formulation of the Research Question

The Research Questions/Hypothesis used is imperative in directing the scope and

process of this dissertation. The Research questions/hypothesis e s t a b l i s h e d f o r

the present study clearly brings out the present state

of h o s p i t a l i t y i n d u s t r y b y s t a t i n g v a r i o u s a r g u m e n t s o p i n i o n b a s

ed oninvestigation and statements put across here, which are su

b j e c t t o verification throughout the dissertation. Hence, the conclusion drawn at last either

seeks to support or reject the Hypothesis. A careful study of numerous texts, articles

and research materials on the Marketing: Oriflame – A REPORT”. Further, this

study gave a sound framework for this research. These relations were tested in the light of

opinions, given by people belonging to this industry. So as a first step towards

proving this topic, these opinions were recorded and put down on comments.

5.2 Secondary Research

To assert the validity of the subject, a secondary research in the form of a

Literature review was undertaken. The objective was to collect thoughts of experts on the

subject matter. All necessary theoretical information relating to the subject was

initiallyo b t a i n e d t h r o u g h v a r i o u s t e x t b o o k s & j o u r n a l s . T o s u p p l e

m e n t t h i s , academic research journals concerning to this topic both tech

n i c a l a n d occasional were also consulted. I myself also visited number of libraries to collect

the information.

Page 38
5 . 3 D a t a C o l l e c t i o n
The method of structured interview was adopted in Data Collection. Here, questionnaires

were prepared and questions were presented in the same order and same wordings to all

interviewees of the

Customers.T h e i n t e r v i e w e r h a d f u l l c o m m a n d o n t h e q u e s t i o n n a i r e a l l a l o n

g t h e interview process. My aim throughout was to extract as much honest opinion and

information from these interviews as possible. Also, the objective was to achieve

‘quantitative’ as well as ‘qualitative ‘data. The structured interviews included a

set of questions, with utmost sincerity and sensitivity to make it sure that they veritably

measured up to the degree of efficacy and validity characterizing the essence of the present

study.

5.4Limitation of the Study

Though, I’m satisfied with what I have done for the final project, yet I can say that I had

performed much better than this if I would have more time to finish this project. Apart from

this, while conducting interview I faced so

many problems and sometimes I got frustrated when the approac

h e d customer took the interview lightly. It was really very tough to make them ready for

answering the questions. B e s i d e s t h e s e , e v e r yt h i n g I f o u n d w e l l i n d o i n g t h i s

t a s k a n d i t c a n b e emphatically said that there is limitation of everything and

so nothing I found new in my case. Whatever experienced I have gained, I will

make use of these in my future professional life.

Page 39
5.5 Interview Questions formulation

Open-ended questions were chosen for the questionnaire. The classification of questions that

were chosen in the Questionnaire were ‘Open Type’. The author feels:

•The questions were easy to ask. It gave the respondents the opportunity to express their

views on the Industry and its practices.

•They are appropriate for the subject matter.

•Allowed a great deal of freedom to probe various areas and to raise specific queries during

the course of the interview.

5.6Questionnaire Design

The author had a set of ideas and expected result based on those ideas from the questionnaire.

For this reason questions were:

•Related to the field of study

•Related to the research hypothesis. Besides, deciding what to ask, the author subsequently

identified the guidelines as to how the questions should be asked. It included:

•Q u e s t i o n s m u s t b e a r s i g n i f i c a n c e t o c o n c e r n e d a r e a o f research.

•Q u e s t i o n s m u s t s e e k i n f o r m a t i o n , u n a t t a i n a b l e f r o m o t h e r sources.

•They must be short as possible but comprehensive enough to allow the author to derive his

requirement of his research. Questions were well laid out

•Utmost care was taken to avoid ambiguity in the questions. The segment selected for the

interview process viz. Customer Level was reached out to receive more accurate and balanced

data.

Page 40
 Chapter 8

MAIN REPORT

Page 41
MAIN REPORT
For the first time, a form of direct marketing will be used as an alternative channel of

distribution and sales in this country. The innovative marketers are imported this

unusual channel of multi-level marketing. Where the shelves in the country’s retail stores are

overflowing already this new technique is outright do some good to them. What MLM

supporters are counting on is that Indian housewives will jump at the opportunity to make

money in their spare time besides being able to win friends& influence people to use their

company’s products

The managing director of Modi Care explains. “There is no large

c a p i t a l investments required, no employees, no bosses and best of all, no risks. “At

Oriflame within a period of 10 months a network of 5,000

distributors was built initially.when this concept was first launched by it in India

. It sales of over Rs 10 corers were incredible. It targets between 50,000 and 70,000

distributors at projected investment of Rs 7 Crore for Dec. 97.H o w i s a l l t h i s a c h i e v e d

w i t h q u e s t i o n t h a t c o m e s t o o n c e m i n d ? T h e p r o c e s s behind reaching these

mind blowing figures is not very complex. It starts the very level of a simple India housewife,

who wants to do something new and exciting of her own. She is the target and

promising distributor of Oriflame products in themarket. How? Yes, this

question needs elaborate answer. In the conventional channel the product moves

from the manufacturer. To the stockiest, wholesaler, retailer and finally to the

consumer in network selling the product is not available at any retail outlets.

Market strategy is a form of direct selling where there is only one

intermediary between the company and the consumer, the “distributor”. This means thatOri

flame works with independent Distributors who deal directly with the end

customer and offer her/him a direct and personal service. Oriflame set up a service

Page 42
center in Delhi to recruit the first level

of distributor.These were the people usually known to the officials of the company and

were c a l l e d t h e c o r e g r o u p ” . T h e s e d i s t r i b u t o r s h a d t h e a u t h o r i t y t o

r e c r u i t m o r e distributors who are called the “down line”. So, the chain goes on and is

multiplied

The distributor is expected to perform the role of a beauty cons

u l t a n t . A n important objective of the training programmer is to bring out the merits of

selling premium cosmetic range to people who the distributor are comfortable with, so that

the exclusive and premium image of the product is maintained. The distributor once ready to

enter the real market and approach the customers has to proceed in a systematic manner. The

daily schedule (photograph).The initial expected goal should be to service

20 regular customers. This bring in the income with the products being ordered by an

order from at the Head office. The company provides a credit facility to all its

distributors. T extents a creditlimit of Rs. 5000/-

where products worth of this amount can be picked up andsold to the

customers. Distributors price and sell products at the recommended r e t a i l

price. There is a mark-up of 25% on all products purchased,

a t t h e distributor price, so there is an immediate profit of 25% on the very first sale.

The payments are to be cleared within the 1-month period for the products taken oncredit.The

process, however, only begins here. The system is structured in such a

wayt h a t t h e m o r e p r o d u c t s a d i s t r i b u t o r s e l l s , t h e h i g h e r h e r c o m m i s s i o n

s . T h e business income of a distributor is based on a monthly accumulation of points.

All products are assigned 2 sets of numbers; Bonus Points and Business Volume.

BP Bonus Points-

w h i c h n o r m a l l y a r e p o i n t s a s s i g n e d t o e a c h p r o d u c t correspon

Page 43
ding to their vale of these points remain constant? These determine the performance

discount.BV Business Volume- It is a monetary value that change

the BV equals the Distributor Price less sales Tax. This represents themonthly sales.

V o l u m e - T h e s e l l i n g o f p r o d u c t s w i t h a B P o f B a y, 1 0 p o i n t s c o u l d e a r n

a n additional commission the total BP of all the products one buys and sells during the

course of a month will determine the performance discount. The

monthly performance discount, is base not only own business volume but also on the busines

s volume generated by any distributor willing the

group.T h e d i s c o u n t p a y m e n t a r e c a l c u l a t e d a n d p a i d o n t h e t o t a l b u s i n e s s

v o l u m e generated by each distributor group in accordance with

the performance discountschedule. The bonus points ensure that the effort required to reach

performancediscount level remains same despite inflation or other factors.

REACHING HIGHER LEVELS FOR REWARDS

When a distributor group achieves a total of 10,000 BP per month for f three

consecutive month, the Oriflame Director level is reached. At this level,

specialrewards are presented they achieve the leadership, eligibility for seminars andhonours.

Oriflame has attractive rewards are recognition’s to extra ordinary performance. There are

great motivators for Distributors. There are “leadership training”,

wherethe leader or distributors who have achieved high sales. This acts as experiencesharing

to give tips to inactive distributors and also serves as

recognition and praise for the star performance. Apart from this regular tips or princes area

rranged. All these interactions serve to induce a feeling of

b e l o n g i n g t o Oriflame family and is itself is a great motivator. They are also give recogniti

Page 44
ont h r o u g h monthly newsletters mentioning their names along

w i t h t h e i r photographs and levels reached by them. Thus the entry of Oriflame with its

multilevel direct selling system could change the very way the discipline is handled in

India and also increase its importance

CONDUCT TOWARDS CONSUMERS

1. Prohibition of all misleading, deceptive or unfair sales practices. At

Oriflamme the distributors are given instruction about, not to

s u b j e c t c u s t o m e r s t o “pressure selling” nor are they obliged to make any purchase. To

give relevant and genuine information on product features. In addition to offer skin analysis

and personal advice on skincare at customers’ homes.

2. Identification: The direct sellers are provided a Distributor number, which is

their identification at the company. The distributor has to give his complete

identification to the customer in a timely fashion without being requested

3. All aspects of product offering are required to be accurate and completed. The

distributors are given tips & complete in for about products during the

training sessions before they all upon customer.

1. Order forms: The distributor order forms are issued to the distributor whichare

to be filled accurately and delivered to the service center / H.

O. Fromwhere the products are dispatched. The forms have all terms of the saless

pelled out clearly.

2. Verbal Promises: The distributors are clearly told to make such claims before

the customers, which are genuine and realistic about product features &quality. At

Page 45
the training sessions they are specifically told not to mention any odd promises about

products. Once more reason for his is that the products are very specific and to

be used according to proper instructions.

3.Cooling off and returns of Goods: A reasonable cooling off period must be provi

ded in order from and all payments or goods traded in must be returned

within reasonable period to the consumer. At Oriflame the damaged

or thosecausing allergy to the users can be returned back within 4 weeks of deliveryor

invoice day. This facility is under the Guarantee of Excellence. Oriflamegive

unconditional rights of return to the customer.

4. The Guarantee and after sale service is to be set forth in

t h e l i t e r a t u r e . Oriflame gives the guarantee seal on every product catalogue

& manual. It also mentions the details of after sale service as being offered by distributor

son a continuously monthly basis.

5. Literature is not deceptive & misleading as per the code.

6. Comparisons and Denigration are not allowed. The

distributors are told not toc o m p a r e t h e p r o d u c t s o n a n y g r o u n d s w i t h o t h e r

p r o d u c t s a n d t o j u s t mention the natural ingredient formulation of them to them to

the customers without confusing them.

7.Respect for privacy: Distributors are guided to take prior appointment whenvisit

ing customers to preserve their Privacy

.8.Referral selling. This relies on some ensure future event in prohibited. This

section does not prohibit giving immediate and certain price reductions

or payments for referrals given with a sale.

Page 46
9.

The timeliness of delivery is required: The orders must be dispatched withina reas

onable the distributor’s reputation. For this Oriflame needs to deliver and process orders as so

on as possible avoiding any delays.The enforcement of the code is the responsibility of

the company. Direct

sellingAssociation or the code administrator being appointed to monitor & resolvecomplaints

Complaints received from distributors.

They are received by various modes.

1. from sales department-

People sent their problems the sale department regarding damages or inquires

about credit status etc. These are forwarded to the complaints department.

2. Customer services-

The customer cell gives the complaints received on phone, the department. This is

usually the case with specific queries. These fall beyond he preview of customer service cell.

3. Post-

Daily there are plenty of letters specifically addressed to complaints department

with varied nature of complaints.

4. Phone-

M a n y d i s t r i b u t o r s c a l l u p d i r e c t l y t h e c o m p l a i n t s d e p a r t m e n t regarding

their problems.

5. FAX-

Page 47
T h e f a x m e s s a g e s a r e a l s o r e c e i v e d o n a r o u n d t h e c l o c k b a s i s a t Oriflame

help.

6. Service centers & single windows-

All complaints from service centers are also received by the end of day.

7. Immediate service-

Distributors come personally at the Head office and tall their complaints at the immediate

service counter. They are again forwarded toOriflame help and a readmitted on priority

basis as the customer is waiting for an immediate replay

Immediate Service

This is the first and foremost counter which is customer interface with Oriflame the head

office. This is a state of the art facility provide immediate service oriflame distributors.

This has 2 staff persons on duty. They take all orders or a t t e n d t o a n y q u e r i e s

a n d r e c e i v e p a ym e n t s f r o m d i s t r i b u t o r s w h o v i s i t personally and

want to pick up orders by hand. This service is very quick and efficient with least time

lags as all transactions occur on line and

directly in person. The immediate orders & other services are given the top priority atOrifla

me as the customer is present right there and is to be serviced in the best possible

manner

This is a recent development at Oriflame. Though the complaints were handled

earlier also but, as the network started increasing with Oriflame going national, there was

a need felt for a full-fledged complaints cell. This started taking shape in May’97.I a s a

summer trainee was assigned the job of assisting in its designing and

functioning. This job was to be done in phases. The first phase was to start sorting out

Page 48
pending complaint and studying them. This w a s d o n e t o study the nature

o f c o m p l a i n t s r e c e i v e d f r o m t h e O r i f l a m e distributors.

An attractive beauty offer:

Over the years, Oriflame

Has launched thousands of products within Skincare, Color Cosmetics, Fragrances, Personal

& Hair Care, Accessories and Wellness; from the eternal favorite, Tender Care Protecting

Balm, to its new and most premium Diamond Cellular Anti-ageing Cream, from Visions V

Freaking

Amazing Mascara to Oriflame Beauty Silky Kiss Lipstick. Oriflame‘s products

Have one thing in commonthey all convey the Oriflame product philosophy. The formulations

are developed using cutting edge technology and products are manufactured according to the

highest quality standards. The 2007 relocation of a number of Oriflame‘s key support

functions to Stockholm was a strategic step and an investment in Oriflame‘s brand image and

unique selling point.

Oriflame Cosmetics known for its Natural Beauty Cosmetics:

Oriflame cosmetics are a well-known Swedish company with naturalbeauty cosmetics. This

company has been around for a solid 43 years and stillgoing strong. They have over 3 million

distributors and have business in 62countries. This company ranks right up there with Mary

Kay and Avoncompanies. Although Oriflame does not have distributors in United States,

youcan find their wonderful natural Swedish products online.This company was started by

two brothers Jonas and Robert AF Jochnick along with a friend Bent Hell sten. Pulling all

together to have the best natural Swedish products, they built a successful natural cosmetics

company, soon to introduce a vitamin line and health products.

Page 49
The Oriflame Company has a motto that MakeMoney Today and Fulfill

Your Dreams Tomorrow‘. To join this company the startup

ADVANTAGES STRATEGY

FLEXIBILITY BY CONTRACTING CUSTOMERS AT

THEIR CONVENIENCE RATHER THEN

YOURS

DEMONSTRATION USING THR OPPORTUNITIES TO

CONDUCT DETAILD DEMOS AT

CUSTOMS AT CUSTOMER COMFORT

AND BEFORE POTENTIAL USER AND

THE BUYER BOTH

BUILDING RELATIONSHIP GOODWILL BY STAISFYING A CUSTOMER SIGHT

FROM CALL..TILL THE SERVICE

GIVING STAGES

REDUCING CONFUSION AND SAVING BY GIVING PERONLIZED VISITS

TIME CUSTOMERS GT ATTENTION AND

UNDERSTAND PRODUCT

ATTRIBUTES CLEARLY GETTING

CONFUSED BY OTHER PRODUCTS

MARKETING USING CUSTOMER TO SELL YOUR

PRODUCT TO OTHER CUSTOMER BY

Page 50
 ENLISTING DIRECT SALES AGENTS

FROM ITS CUSTOMER BASE

A DEAL IS CLOSED IMMEDIATELY BY BY ALLOWING SALES PERSON TO

REACHING THE CUSTOMER TAKE PRICING DECISION ON THE

DIRECTLY SPOT WHEN BE CAN CONCLUDE THE

DEAL IMMEDIATELY.

Cost is low with a norisk sign up policy. They offer the opportunity of being part of their

company tostrong will for Success Company. The Oriflame Company has also overcome the

global economy crisis going full steam ahead. Because of its reputation and line of natural

products this company is constantly growing. Oriflame has a system of strategies that works

well for their business. To start it has low entry fee with no overhead of stock.

It has appealing catalogues of the products with new upcoming items, and has simple business

ethic, they offer personal expansion and growth, an affordable kit of the natural cosmetics is

available, there is unlimited potential for income, and direct selling. Even with the global

economy crisis this company has shown that their system is working today better than it than

it did at the start of the company. Oriflame has attractive incentives and bonuses to help

motivate and excite the distributors to want to promote and expand their growth. With help

of internet so much more is possible to help the success of your business.

Now many companies are able to get the word out on the internet about their company and

products to expand and grow to their fullest potential. If you do your homework and research

different strategies of promoting your business there is no end to what you can accomplish.

Page 51
Whether it is this company or another that interests you to start your home based business,

you need a plan of strategies to develop and grow your business. Along with your plan you

will need patience, determination, and a will to succeed. You want a company that offers

support and information for continuous growth.

Nothing can stop you if you have and use the tools for success that are available to you. With

the internet at your fingertips, the potential to attract leads and prospectus is unlimited.

Learn as much as you can always be educating yourself on new and upcoming strategies. It is

important to stay ahead of the game to develop your business to its fullpotential.

There is no stopping a distributor that has the excitement and desire to succeed! Only you

have the control to have the life you dream of! Because of the strong ethics Oriflame with its

Natural beauty Cosmetics with its Natural beauty cosmetics has, it built a strong and solid

foundation. Learn how to connect you to success with more strategies and opportunities that

can explode your business. To your success!! Charlene stein.

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Consumer behavior

Page 52
involves the psychological processes thatconsumers go through in recognizing needs, finding

ways to solve these needs,making purchase decisions (e.g., whether or not to purchase a

product and, if so,which brand and where), interpret information, make plans, and

implement theseplans (e.g., by engaging in comparison shopping or actually purchasing

aproduct)

Attitudes:

Consumer attitudes are a composite of a consumer‘s

(1) beliefs about,

(2) Feelings about,

(3) And behavioral intentions toward some ―object‖—

Within the context of marketing, usually a brand, product category, or retail store. These

components are viewed together since they are highly interdependent and together represent

forces that influence how the consumer will react to the object

Analyzing survey data is an important and exciting step in the surveyprocess. It is the time

that you may reveal important facts about your customersuncover trends that you might not

otherwise have known existed, or provideirrefutable facts to support your ideas. By doing in-

depth data comparisons, youcan begin to identify relationships between various data that will

help youunderstand more about your respondents, and guide you towards betterdecisions

Page 53
This project gives us a brief about oriflame customers. Analysis is intended to provide a

foundation upon which we can confidently conduct our own survey

Page 54
 Age wise classification

Particulars No of respondents percentage

20-30 years 31 62

30-35 years 9 18

Above 35 years 10 20

Total 50 100

20-30 30-35 above 35

The above data reveals that 62% of respondents belong to 20-30 years,18% of respondents

belong to 30-35 years and 20% of respondents are above 35years.

Page 55
 Gender wise classification

particulars No.of respondents Percentage

male 2 4

female 48 96

total 50 100

male female

The above data reveals that 4% of respondents are male group and 96% of respondents are

female group.

Page 56
Usage of product

particular No of respondents Percentage

As per instruction 20 40

By your own wish 19 38

On friends advice 11 22

total 15 100

as per instruction by your own wish on friends advice

The above table reveals that 40% of respondents use Oriflame product asper instruction, 38%

of respondents use Oriflame product by their own wish and

22% of respondents use Oriflame product according to their friend‘s advice.

Page 57
Price of oriflame product

particulars No.of respondents Percentage

Unsatisfied 3 6

Satisfied 40 80

More satisfied 7 14

total 50 100

unsatisfied satisfied more satisfied

The above table reveals that 6% of respondents are unsatisfied with theprice of Oriflame

product, 80% of respondents are satisfied with the price of Oriflame product and14% of

respondents are more satisfied with the price of Oriflame product

Page 58
Opinion about oriflame product

Particulars No. of respondents Percentage

Good 29 58

Better 21 42

Bad 0 0

total 50 100

good better bad

The above table reveals that 58% of respondents feel good about Oriflameproduct and 42%

of respondents feel better about Oriflame product.

Page 59
Usage of product

particulars No.of respondents percentage

Lipstick 10 20

Nailpolish 18 36

Facecare 22 44

total 50 100

lipstick nailpolish facecare

The above table reveals that 20% of respondents use lipstick in Oriflame, 36% of respondents

use nail polish in Oriflame and 44% of respondent’s oriflame

Page 60
Preference of other brands

particulars No.of respondents Percentage

Lakme 11 22

Oriflame 29 58

Amway 10 20

Total 50 100

20% 22%

lakme
oriflame
amway

58%

The above table shows that 22% of respondents prefer Lakme product, 58% of respondents

prefer Oriflame product and 20% of respondents preferAmway product

Page 61
Period of usage

particulars No.of respondents Percentage

0-2 years 26 52

2-4 years 15 30

Above 4 years 9 18

total 50 100

0-2 years 2-4 years above 4 years

18%

52%

30%

The above table reveals that 52% of respondents are using the Oriflameproducts below 2

years, 30% of respondents of respondents are using theOriflame products between 2-4 years

and 18% of respondents are using theOriflame products above 4 years.

Page 62
Customer care service

particulars No.of respondents Percentage

Excellent 14 28

Satisfactory 36 72

Unsatisfactory 0 0

Total 50 100

excellent
satisfactory
unsatisfactory

The above table reveals that 28% of respondents feel that customer care service in Oriflame

product is excellent and 72% of respondent’s feel that customer service is satisfactory in

Oriflame product.

Page 63
Category of people

Particulars No. of respondents Percentage

High class 14 28

Middle class 14 28

Lower class 2 4

All above 20 40

Total 50 100

high class middle class lower class all above

The above table shows that 56% of respondents are benefited with dealership of Oriflame

product and 44% of respondents are not benefited with dealership of Oriflame product.

Page 64
Do you know that Oriflame provides you its product th

r o u g h d i r e c t marketing?

Particular yes No Percentage

Housewives 20 30 25

Workin women 40 10 75

total 60 40 100

yes no

The above mentioned table shows that out of 20 respondents are aware of the fact that

Oriflame sells its products to the customer through direct marketing; while the remaining 13

respondents are quite unaware about it

Page 65
Do you agree that O r i f l a me while

s e r v i n g i t s p r o d u c t s t o c u s t o m e r adopts the best system?

particulars yes No

Working Women 30 4

Housewives 10 6

Chart Title
35

30

25

20

15

10

0
working women house wife

yes no

The above table shows that out of 50 respondents, 40 respondents agree

t h a t O r i f l a m e w h i l e s e r v i n g i t s p r o d u c t s t o c u s t o m e r s a d o p t s t h e b e s t s ys

t e m o f marketing while the remaining of respondents deny this.

Page 66
DISPLAY OF PRODUCT IN SHOW ROOM

PARTICULAR NO.OF RESPONDENTS PERCENTAGE

SATISFIED 33 66

EXCELLENT 15 30

UN SATISFIED 2 4

TOTAL 50 100

SATISFIED EXCELLENT UN SATISFIED

The above table shows that 66% of respondents are satisfied with the display of Oriflame

product in the show room, 30% of respondents feel excellent about the display of Oriflame

product in the show room and 4% of the respondents are not satisfied with the display of

Oriflame product in the showroom.

Page 67
USAGE OF CHILD PRODUCT

PARTICULR NO.OF RESPONDENTS PERCENTAGE

YES 19 38

NO 31 62

TOTAL 50 100

YES NO

The above table reveals that 38% of respondents use Oriflame product for children and 62%

of respondents does not use Oriflame product for children

Page 68
 CHAPTER 11

COMPARATIVE STUDY

Page 69
Comparative study:

A comparative study between oriflame and Amway through chats….

Which product is good for skin types?

particulars No.of respondents percentage

Oriflame 40 80

Amway 10 20

total 50 100

oriflame amway

Page 70
Comparative study between oriflame and Amway

 Reason is that Amway products are good but middle class n lower middle class people

can’t effort that. Because the prices are very high as compare to oriflame.

 Oriflame price are not high as compare to Amway products.

 Amway have limited beauty product as his main focus is on health supplements

 Oriflame have a wide range of beauty products his main focus is on beauty products

only

 Oriflame used to sell their product such as skin care package, fragrance kit, personal care

product, makeup kit, body care product, hair care product.

 Amway is the best one compare to Oriflame, both have different types of product to

sell for their consumer across. Amway mainly concentrate on health, herbal products,

make up kit, home furnishing products, nutrition products

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 CHAPTER 12

FINDINGS

&

RECOMMENDATIONS

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FINDINGS & RECCOMENDATIONS
 From the study it is understood that most of the respondents attracted toOriflame

Products than other type of cosmetics like Lipsticks, Mascara ,Face cream, Eye liners

etc.,

 It is found by researcher that majority of the respondents who use Oriflame are

females.

 The study reveals that the majority of the respondents like Customer Care Service.

 The study shows that the opinion about Oriflame Products service for buying a

cosmetic in Oriflame is excellent. It is found by researcher that majority of the

respondents use Oriflame by their own wish.

 The brand name has to be built in the market people still compare

it with Shahnaz being herbal. But Shahnaz products are very

c o n c e n t r a t e d a n d Oriflame products are very mild and harmless. Thus the

name has to be built with respect to this. They need to aggressively advertise its

products to build a strong image in the mind of average customers.

 If the price of the cosmetics is reduced it will surely attract more people than the

present. Moreover not only high class but also the middle class people can also

own Oriflame.

 They can introduce more flavors for youngsters and homemakers.

 More varieties can be introduced in Raipur showroom.

 Many more discounts and offers can be provided to increase the customers

satisfaction.

 Showroom display can be modified so that it may attract new customers.

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 Media advertisement should be given so that other customers can be aware of the

product.

 The quality of the customer service at Raipur can be increased in order to satisfy the

customer so that there will be increase inthe customer.

 The study shows that they are satisfied with price of the product.

 The out of stock situation should be avoided by keeping a

minimum safetystock. This problems will be soon settled with the

manufacturing being started at Noida soon.

 One strategy to compensate for the lack of choice which is the strong point

of conventional system in needed. The customer has a lot of options to

choose from at the retail shop.

 The products have to be given the right image in the customer’s mind. A studyo f

what the customer wants from this product range, is to be done.

This i s necessary because, Oriflame’s belief systems. How

much value does thecustomer give to the natural skin care products? This is to

be found, then this

Value is to be delivered through advertising and perception building.

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CHAPTER 13

CONCLUSON

Page 75
COCLUSION
The success of Oriflame is based on a strong and consistent company culture, promoting an

entrepreneurial spirit and a clear set of values. Their mission and passion. Is to fulfill dreams

for people around the world, a dream often focused on building a better quality of life by

belonging to theOriflamesales network.Thus the research group concludes that Oriflame will

surely reach its height very soon in Chhattisgarh.

Overall, the women all liked the products and found the prices low. A problem was

that two of the women were rather allergic to general skin creams and bought

customized ones in the pharmacy. Makes them doubt about the company. However,

all of the

Women could imagine to buy products from Oriflame even though they would need

to test and try them before making a decision. The problem is that they all do not like

to buy by direct selling and thus would not be potential customers of Oriflame, only

because of the way of selling.

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BIBLIOGRAPHY

Page 77
BIBLIOGRAPHY

MAGAZINES:

Women’s Era

Fashion World

Alive

Femina

Business World

Business Today

NEWSPAPERS:

Times of India

WEBSITES:

WWW.WIKIPEDIA.COM

WWW.ORIFLAME.CO.IN

WWW.ORIFLAME.COM

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SAMPLE QUESTION PAPER

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Survey for oriflame product

Name _______________

Gender_________ address____________

1) Who use oriflame product more?

Male

Female

2) How you use oriflame product?

As per instruction
By your own wish

On friends advice

3) How much you satisfied from oriflame product ?

Unsatisfied
Satisfied

More satisfied

4) What is your opinion about oriflame product?

Good

Better
Bad

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5) Which product you prefer most?

Lipstick

Nail polish

Skin care

6) Which brand you give more prerence?

Amway
Lakme

Oriflame

7) How time uh used oriflame product?

0-2 year

2-4 year
Above 4 year

8) Are you satisfied from customer service?

Satisfied

Unsatisfied
Excellent

9) Which category people use this product most?

High-class

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Middle class

Lower middle class

All of the above

10) Do you know that oriflame provides you its product though direct
market?

Yes

No

11) Do you agree that oriflame while serving its products to customer

adopts the best way?

Yes

No

12) What you think about display of product?

SATISFIED

Unsatisfied

Excellent

13) Do children use this product ?

Yes

No

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