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ASSIGNMENT BY GROUP 5

B.VOC 1 (RM & IT)Subject: Marketing & Retail Management

St. Francis college of women

Acknowledgement

We thank Dr . Subi Varghise madam for guiding us to do this project . Which has given us a new insight in understanding how important retail management & marketing strategies plays its part in multi nationals & proves that the retail management subject is not a new subject but an age old art of business now converted into an interesting subject which we are proud to have taken .

Group 5 - Oriflame Kaarshini Bhandari 149021 (PPT & SURVEY) Prathna Jain 149022 (INFORMATION) Nikita Lakhani 149023 (HARD COPY & MAKE

UP) Laxmi Jha 149024 (PRODUCTS &

INFORMATION) Sindhu 149025 (INFORMATION &

NEWS)

Contents

Chapter 1: introduction Aim 9 Introduction to oriflame 10 Tag lines 11 Mission and vision 12 Introduction to founders 13 Present chairman 15 History 16

Contents

Chapter 2 : Insight into OriflameProduct Development 17Environment Friendly 18Natural Ingredients 19Organic Ingredients 20Animal Ingredients 21Vegans/ Vegetarians 22

Contents

CHAPTER 3 : THE MARKETING MIX Product 24 Price 25 Place 26 Promotions 27 Conclusion to marketing mix 28 Strategic approach 29 Brief Facts 30

ContentsCHAPTER 4 : PRODUCTS Purify the skin you are in32 Fragrances in a bottle 34 Color cosmetics 36 Men's corner 38 Hair care 40 Eye catching 42 Reversing the age 44 Matte looking skin you love 46 Personal care 48 Baby's need first 50

Contents Brand ambassador 52 Competitors 54 How to buy Oriflame products 55 Customer service 56 Social responsibilities 58 Survey information 61 Survey 62 Oriflame apart from cosmetics 65 Recent news 67 Contact information 68 Conclusion 69 WEbliography 70

Aim

The aim of this project is to do our research on Oriflame, its history, its products, its marketing strategies and its strength in the present day competitive cosmetic market & give our opinion on it.

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Introduction Founded in 1967 Direct sales in more than 61 countries worldwide. Aim to introduce Swedish natural cosmetic range

worldwide 3.6 million independent consultants that are marketing

Oriflame products around the globe. Oriflame offers the leading business opportunity for

people who want to start making money from  day one Make money today and fulfill your dreams tomorrow. Owns 5 factories in Sweden, china, Poland, Russia and in

india.

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Tag lines

Natural Swedish Cosmetics .

Unique benefits ,fun ,simple, profitable – a world of beauty.

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Vision & Mission Our mission is to be the number one beauty

company selling direct. Our mission is to fulfil dreams.  Oriflame’s aim is to become role models

within corporate social responsibility among the beauty companies selling direct.

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Founders Jonas af Jochnick was born in the year 1937. Most notable for co-founding oriflame cosmetics with

his brother Robert af jochnick in 1967 in Sweden. In 2003 the brothers shared the international swede of

the year award. As of 2006, Jonas af jochnick was Sweden's 19th

wealthiest person as estimated by business magazine Veckans Affarer.

Swedish from nationality. Occupation Businessman.

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Founders Robert af jochnick was born in1940 He most notable for co-founding oriflame cosmetics

with his brother Jonas Af Johnick in 1967 in Sweden. In 2003 the brothers shared the international swede of

the year award. As of 2006, Robert Af Jochnick was Sweden's 34th

wealthiest person as estimated by business magazine Veckans Affarer

Swedish by nationality Occupation Businessman

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Chairman Alexander af Jochnick Chairman of the Board Born in 1971.

Elected to the Board in 2007.

Member of the Remuneration Committee. Member of the Audit Committee.

BSc in Business Administration Stockholm School of Economics.

Chairman of Oriflame Foundation. Board member of CL Intressenter AB, Credus Management AB, Postkodstiftelsen and NC Holding AB. Founder and board member of Serious Nature.

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History Oriflame cosmetics S.A. (Luxemburg oriflame) is a

cosmetics group, founded in 1967. In Sweden by the brothers Jonas af Jochnick and Robert

af jochnick. Sold directly in 61 countries world wide. The brand is named for the oriflamme, the royal banner

of medieval France.

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Product Development

Since its foundation in 1967, oriflame has been a pioneer in developing beauty products inspired by the wisdom of nature and the best of science.

Today oriflame offers 950 cosmetic products at any given time

Having an in-house research and development center provides oriflame greater flexibility over product development in line with oriflame natural and Swedish heritage, ensuring delivery of the highest standard product in the shortest possible time.

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Environment friendly Oriflame were one of the first companies to utilize plant

extracts in skin care products Ingredients from renewable plant’s. Oriflame does not use materials derived from protected or

endangered flora and fauna species, or from environmentally sensitive areas.

It is oriflame cosmetics policy to utilize product packaging which has a minimum environmental impact. 

  Oriflame strives to reduce waste by packaging products simply, while not compromising on product integrity.

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Natural ingredients Oriflame take inspiration from nature when formulating

products and incorporate plant ingredients and actives when possible.Oriflame have strict standards for acceptance of herbal extracts, which take purity, extraction, and activity into account.  We interpret “derived from natural plant s”

Oriflame’s cosmetic products have varying levels of naturalness.

With more than 95% natural ingredients, and only certain synthetic ingredients that are allowed for natural formulations, eco-beauty is the most natural, ethical, and environmentally respectful range of products in Oriflame’s portfolio. 19Slide #

Organic Extracts

Oriflame use extracts from organic plants / fruits in oriflame certain ranges. The extracts used are certified organic according to the regulations in the country of origin.

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Animal ingredients Few ingredients derived from dead animals, or by causing

harm or suffering to animals, are used in oriflame cosmetic products.

Ingredients such as beeswax and honey, lanolin derivatives, and dairy products, which are processed without causing death or injury to animals, are used.

Bovine leather, as a by-product of the human food chain, can be ethically processed.

In oriflame wellness food supplements range fish oil is used as the processed of the omega 3 fatty acids because of its superior quality and documented benefits

The gelatin in the capsules is non-bovine, and derived from fish. 21Slide #

Vegetarians/Vegans

It is the policy of oriflame cosmetics not to use any ingredients derived from dead animals in oriflame cosmetic formulations. 

All oriflame cosmetic products are suitable for vegetarians.Oriflame eco - beauty range bears the Vegan society trademark.In oriflame wellness food supplements they use fish oil and fish gelatin.

The natural balance shake is formulated using a blend of natural egg, Pea and Whey proteins.

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The marketing mix

As a successful online and chain merchandiser like oriflame also implies all the concepts of “marketing mix” popularly known as the “4p's” . The first concept product the second price the third place and fourth the promotion.

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Product The oriflame has a very wide range of

products which is improved and every now and then when required and the range includes the cosmetics, jewelry , bags, goggles etc. The range is innovative and undergoes vigorous changes.

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Price

The price of oriflame products is high as compared to that of other local brands. This is because it uses the natural ingredients and the chemicals are at a very minimum usage . This is the reason that the products are costlier from the other cosmetic brands , but as we can see that in today's market the quality has more importance than the rate tag.

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Place This concept mainly speaks about where

the stores are existing but as many of us know in India oriflame is still a chain system of marketing ie, There are no stores for the brands the products are sold to consumers trough distributors/agents/consultant . These consultants are provided with monthly catalog which is used by them to show to their customers. However in USA oriflame has stores where the products are sold as any other retailing outlet . In India also few malls like stoppers stop have the products of oriflame displayed.

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Promotions

This is one of the most weak part of oriflame down here in India . oriflame does not promote his products as his opponents do. Actually there is no other promotion other than the catalog with distributor have and the online site which provides information about the products.

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Conclusion of Market mix

Even though oriflame does not promote the products effectively it runs in profits and the main reason behind it is it have chosen its lot of customers , & every single day by word of mouth and the catalogs of consultants the consumers of oriflame are increasing .In the same way even though the prices are very high compared to that of other cosmetic as well as bags companies the oriflame maintains a decent profit . It surely does not have a store or showrooms but it has the customer power with him that without the store it exists in market and gives a tough competition to all its competitors.

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Strategic approach as of 2012-2013

Low entrance fee, credit offered and no stock required – easy to join and no risk.

Wide portfolio of Swedish, natural, innovative, quality beauty products at affordable prices.

Frequent, dynamic and attractive catalogues with many new products that make selling easy.

Flexible and reliable ordering, delivery and payment system – easy to do business with.

Personal growth and development through Oriflame University and SARPIO (Sales and Recruitment Process in Oriflame)– at no cost.

Unlimited earning and career opportunity. Enjoy a direct selling company with a human touch and

a sense of belonging. 29Slide #

Brief facts as of 2012-2013

1.5 billion euros in annual sales . Approximately 3.6 million consultants. 7900 employees . A product range of approximately 1000 products. Co-founder of world childhood foundation. Global R&D Centre with more than 100 scientists 5 own production units in Sweden, Poland, china,

Russia and India. Listed on the Nasdaq OMX exchange since

march 2004. Operations in more than 60 countries of which

11 franchisees. 30Slide #

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31 Products

PRODUCTS RANGE

Purify the skin you are in Face wash, Scrub mask, Blackhead remover etc.

One of the major sections in which oriflame provides different products for different skin type is to purify the skin you have .This section mainly deals with the products which are either used to remove make up or the products which are meant to safe guards your skin .

Tag line : Time to get more deeply involved . :Cherish your skin every day .

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Fantasies in a bottle Perfumes , Deodorant

Nothing says more about a woman than the fragrance she chooses. Every woman should have her own signature fragrances—scents that embody every aspect of her. Why settle for just one signature fragrance when you can have one to suit your every facet? Flowery, fruity, spicy, fresh or oriental—you’ll find your perfect signature scent in our family of feminine fragrances. 

Tag line : Reveal your inner temptress.

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Color Cosmetics Nail Polish, Lipsticks etc

This section is one of the most famous section for ladies of all walks of life. It includes lipsticks, nail polishes, etc. stuff which are the major requirement of today's youth , but as we know with the youth the previous generations are also developing the section is one of the favorite.

Tag line : Great color - great price

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Men's Corner Perfumes , Shaving Gel , Fairness Creams , Soap

Bar ,Deodorant

One of the most unique corner of oriflame is the men's corner . Surely Oriflame a line of products which satisfies women's needs but yes it does not ignore men . Oriflame has a wide range of mans products which are equally qualitative and are also widely used. Being the goodwill of the company they released this new branch and it was also successful in the competitive market .

Tag line : Live for the challenge

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Hair Care Conditioners, Shampoos, Hair Coloring

Oriflame’s extensive range of body and hair care products offer you a variety of ranges to meet your daily needs. They are based on (or) inspired by natural ingredients to make you feel clean, refreshed, healthy and pampered . Taking care of your hair implies knowing its characteristics and oriflame hair care is designed to meet these diversities so that everyone can obtain the hair that he/she desires.

Tag line : Shiny hair in the sun

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Eye Catching kaajal , mascara , Eye Shadows ,Liner

Oriflame provides a large range of eye cosmetics .Different types of cosmetics which are made by proper scientific tests and natural ingredients . The specialty of oriflame is clearly evident in this product range neutrality with quality . Every year a wide range is included in this area too.

Tag line : Apple of your eye

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Reversing the age Anti Aging cosmetics

This section is specially contributed to the ladies above 30 years. In this section the scientists have curiously found ways to make ladies look as special as they were for a longer time . The combination of natural herbs and scientific formulae's reverses the age of women and help them looking young and pretty .

Tag line : Total anti aging solutions : Don’t worry and get wrinkles – smile

and get dimples

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Matte Looking Skin You Love Foundation ,Compact ,Concealer blush etc.

Oriflame provides a wide range of cosmetics which can make you feel beautiful . The range of foundation compact concealer blush etc. gives a better impact of women's skin .

Tag line : perfect skin from the nature

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Personal Care

Body Lotions , Talc , Moisturizers , Fairness Cream , Toothpaste , Intimate wash ,Foot Care , Cleansing Milk , Oil

Personal care includes body care, bath and shower products, hair care, oral hygiene, foot care, hand care.

Tag line : Drench your skin in rich moisture

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Baby's Need First Baby Hair & Body Wash , Baby Oil , Baby Soap , Baby

Lotion

Once we finish with the women care and the men's corner oriflame also provides a very soft and gentle line up for adorable babies . Scientifically proven and properly tested this range is specially for the soft and gentle skin and other body parts of a baby.

Tag Line : Gentle as mothers touch :Expert care for delicate skin

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Brand Ambassadors

India : Sonali bendre ( present ) Ritu kumar Malaika aroura khan

Africa : Lady jaydee (tanzania) Juliana kanyomozi ( uganda) Jamila mbugua (kenya)

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COMPETITORS AVON MODICARE AMWAY

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Order Oriflame products Oriflame products are sold exclusively through a global

network of independent consultants. You can order products in two different ways:

Become a consultantwhether you only want to order products for your oriflame self and your oriflame family or start selling oriflame products to others, you can register to become a consultant and get a discount on the catalogue prices.

Become a customeryou can place your oriflame order through one of oriflame many consultants. They will be able to give you advice, show product samples and answer your oriflame questions about oriflame products and how to use them.

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Customer service

Oriflame specialises in natural high-quality beauty products and offers the best of science combined with the best of nature. “Such is the belief in our quality that we offer a 100% satisfaction guarantee. If you aren’t completely happy with product performance you may return it within 30 days for a full refund”.

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Customer service – *Conditions applied .

The product/s must be returned by an Oriflame Consultant within 30 days from the date of invoice to Oriflame Branch or Service Center, not more than 1/3rd of the product should be used. Oriflame reserves the right to accept / reject

any claim/s in case the physical product received is not matching the description or as per given timelines.

The Consultant will be offered a replacement / refund in his/her oriflame account.

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Social Responsibilities

Oriflame supports numerous charities worldwide and is a co-founder of the world childhood foundation.

Livelust a school which is a special school for physically handicapped children .

Deepalaya a project for girl child to empower them .

Hand in hand an entreprenurial ship programme in Tamil nadu for women .

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Survey on Oriflame

Name: Aakankshi AgarwalAge 19Experience in Oriflame 01 YearCtt # 0 97 03 74 61 04E mail

aakankshi.agarwal@gmail.com

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SurveyQ1. For how many years are you doing business with oriflame?A. 1 year

Q2. What is the area from where your customers come from?A. Customers from all over Hyderabad

Q3. Which of the products are sold most from your outlet ?A. Products that are sold most are Milk & Honey , Shampoo, Kaajal

Q4. Is this business you do is for your bread & butter ?A. No I just do this as a hobby as I like meeting & interacting with cross

section of people & it also it gives me some pocket money.

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SurveyQ5. How are your relationship with your clients?A. My customers are happy because they trust my choice in products i sellQ6. What is the profit margin you earn and how do you retain

your clients ?A. I keep bare minimum profits and keep good relationship with

them.Q7. What is the secret of your customers keep coming back to

you again & againA. I have very close relationship with my clients and don't

encourage them to keep buying new products for the sake of swelling my profits. They understand my intentions & trust me. This is the secret of my retaining my customer base.

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Survey

Q8. Other than your customer base do you ever feel need to advertise?

A. Does not need large promotions as it is world famous & its clients trust what it says in its catalogue.

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Oriflame apart from cosmetics

Apart from the range of cosmetics, oriflame also has a diversified range of fashion accessories ( bags , purses , goggles ) & jewelry

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Recent News Oriflame in top 10 beauty brands in India - 1 February 2014 Local news Oriflame sustainable products win 2014 Eco Beauty

Award -7 may 2014 World news

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Contact Information Support Office: Oriflame India Pvt. Ltd.

Ground Floor, Corporate OnePlot No. 5, NHCC JasolaNew Delhi: 110076

Board Tel. No.: 011-43665565 Hyderabad

Amar House No. 6-3-1239/2,1st  Floor Opp KFC,Above IndusInd Bank Somajiguda,Hyderabad – 500082

T: 040 – 44556777E: hyderabad.customersupport@oriflame.co.in

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Conclusion

Oriflame have proved to be a cosmetic brand which promises the best cosmetic products with natural ingredients . 950 products ready for sale .

With more experience than 45 years oriflame has a strong customer base and 3.6 million consultants .

It attracts the consultants and competitors both .

Is a tough competitor due to the Swedish natural cosmetics culture .

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Webliography Websites http://www.oriflame-cosmetics.com,

http://www.oriflame.com Wikipedia Page http://en.wikipedia.org/wiki/Oriflame http://www.evi.com/q/facts_about__oriflame Business Area makeup Related Websites http://www.oriflame-cosmetics.com,

http://www.oriflame.com/, http://www.orijen.co.uk The link for online catalog of oriflame http://in.oriflame.com/products/catalogue-viewer.jhtml?

per=201408 70Slide #