Oriflame.docx

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)

Page 1

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 SkinCare 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 markup 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 highquality 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

Page 18

M A R K E T I N G W H A T

I S

S T A T E G Y

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

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making the first call at

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,

Page 21

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

to ensure health, safety and environmentOriflame

into

products

skin

are

developed

care 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

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supervision

of an internationally

recognized professor

botanical research

provided

them

of

Dermatology. the

Legendary 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

Page 27

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.

Page 28

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

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

Page 29

and laborious

research by

skin

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 irritations

on normal

application and

condition.

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

Page 30

in

Page 31

CHAPTER 8 Financial and strategic Analysis Review:

Page 32

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 anonDepth 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 indepth 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.

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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.

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CHAPTER9. RESEARCH METHEDOLOGY

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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

distributors was built initially.when this concept was first launched

of 5,000 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 Pointsw 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

within reasonable period

payments

to

or

goods traded

the consumer. At

in

must be

Oriflame the

returned 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

or payments for referrals given with a sale.

Page 46

certain

price

reductions

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 departmentPeople sent their problems the sale department

regarding

damages

or inquires

about credit status etc. These are forwarded to the complaints department. 2. Customer servicesThe 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. PostDaily there are plenty of letters specifically addressed to complaints department with varied nature of complaints. 4. PhoneM 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 windowsAll complaints from service centers are also received by the end of day. 7. Immediate serviceDistributors 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

CONDUCT

OPPORTUNITIES

DETAILD

DEMOS

TO 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 TIME

GIVING

PERONLIZED

VISITS

CUSTOMERS GT ATTENTION AND UNDERSTAND ATTRIBUTES

PRODUCT 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 DIRECTLY

THE

CUSTOMER TAKE PRICING DECISION ON THE 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. About IBM Cogon’s BI and Performance Management:

IBM cogon’s business intelligence (BI) and performance management solutions deliver world-leading enterprise planning, consolidation and Software, support and services to help companies plan, understand and manage financial and operational performance. IBM Congo’s solutions bring together technology, analytical applications, best practices, and a broad network of partners to give customers an open, adaptive and complete performance solution. Over 23,000 customers in more than 135 countries around the world chooseIBM Congo solutions. 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 indepth 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

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

Percentage

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 5 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

Page 71

CHAPTER 12

FINDINGS

&

RECOMMENDATIONS

Page 72

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

minimum safetystock.

situation should This

problems

be

avoided

will

be soon

by settled

keeping with

a 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

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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

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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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