Dr.

Babasaheb Ambedkar Marathwada University

Aurangabad

In partial fulfillment of the degree of

Master of commerce first year (Mini Project)

M. S. P. Mandal’s
Deogiri College, Aurangabad

Project report
On
Study of Marketing Strategy of Oriflame India Pvt Ltd
Submitted By
Pradnya Pradeep Lalwani
2018-2019

Under Guidance

Prof. Kharat N. G. Prof. Dr. Ratnaparkhe S.D.

M.Com, NET, M.S.W., G.D.C.& A., M.Com. M.B.A., NET, G.D.C. & A., L.L.B., Ph.D.
(H.O.D. (P. G.) & Co-ordinator P.G. Studies)
Department of Commerce

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 CERTIFICATE

This is to certified that this,

Study of Marketing Strategy of Oriflame India Pvt

Ltd
Is the bonafide work of,

Ms. Pradnya Pradeep Lalwani

Exam Seat No: -------------------------------------,

She/he carried out the research under my supervision certified further, that to the
best of my knowledge the work reported herein is completed as per the
requirements of Dr. Babasaheb Ambedkar Marathwada University, Aurangabad in
partial fulfillment of Master of commerce first year (Mini Project) for the
Academic year 2018-2019.

Signature of the Guide. HOD (P.G.) & Coordinator

P.G. Studies

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 Declaration

I, Pradnya Pradeep Lalwani Student of M. Com II SEM First year

studying in Deogiri College, Aurangabad, solemnly declare that the
project

Study of Marketing Strategy of Oriflame India Pvt Ltd

Was carried out by me in partial fulfillment of the degree of Master of

commerce first year (Mini Project) Course program under the Dr. Babasaheb
Ambedkar Marathwada University Aurangabad.

This project was undertaken as part of academic curriculum as per university

rules and norms and by no commercial interest or motive. It is my original work and
not elsewhere for any other purpose earlier.

PLACE : Aurangabad. Pradnya Pradeep Lalwani

Date : Signature

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 Acknowledgement
“Gratitude is not things of expression; it is more a matter of
feeling.” There is always a sense of gratitude which one express for
other for their help and supervisor in achieving the goals.
I too express my deep gratitude to each and every one who has
been helpful me in completing the project report successfully.

First, of all, I am highly thankful to Dr. S. D. Ratnaparkhe, for

allowing me to pursue my project

Study of Marketing Strategy of Oriflame India Pvt Ltd

My special thanks to Prof. Kharat N. G. Sir who encouraged

me, properly guided me in each and every possible way throughout
my projects reports.
I also give my regard and sincere thanks to Prof. Bharaswadkar
M. L. Madam & Dr. Jawale D.V. Sir who has devoted their precious
time in guiding me and helping me with it in time.

Name of the Student

Pradnya Pradeep Lalwani
Seat No:-

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 INDEX

Sr. No. Page

Contents
No.
Chapter I Introduction 6
Chapter II Company Profile & Theoretical
10
background
Chapter III Research Methodology 17
Chapter IV Analysis & Interpretation of Data 63
Chapter V Conclusion, Suggestion, &
80
Recommendation
Chapter VI Bibliography 83

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 Chapter 1
Introduction

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 Introduction and Design of the study

Cosmetics Introduction:

Building on more than 40 years of skincare and cosmetics expertise and combining the
wisdom of nature with the best of science to deliver distinct product brands - providing a
wide portfolio affordable for the many people all with:

 Assured product performance at value for money.

 High purity ingredients and strict manufacturing standards.
 High ethical standards and stringent environmental policies.

History of cosmetics
The ancient science of cosmetology is believed to have originated in Egypt and
India, but the earliest records of cosmetic substances and their application dates back to
circa 2500 and 1550 B.C, to the Indus valley civilization. There is evidence of highly
advanced ideas of self beautification and a large array of various cosmetic usages both by
men and women, in ancient India. Many of these practices were subtly interwoven with
the seasons and the normal rituals of life. Significantly, the use of cosmetics was directed
not only towards developing an outwardly pleasant and attractive personality, but towards
achieving merit, longevity with good health and happiness. In this context, the earliest
reference of a beautician is from the great epic Mahabharata, where the Pandavas were in
exile incognito. Draupadi worked for the queen of Virāta (Northern district of India). She
called herself Sairandhri (A female attendant in the women's sections of the palace).
There is a reference of her carrying a Prasādhana Petikā (A vanity case containing
substances to beautify, toiletries and accessories to decorate).
The word cosmetics defined as “Substances of diverse origin, scientifically
compounded and used to i) cleanse, ii) allay skin troubles, iii) cover up imperfections and
iv) beautify”, is used in this paper in a wider sense to include Oral hygiene as

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well.Different Lepās (Masks) were recommended for different seasons for body
beautification. The ingredients used during the cold seasons were quite different from
those used in warm seasons.
In fact Ashtānga Hridaya (a 1500 year old book of Ayurveda) offers six different
formulations to be used for the six seasons of the year. Similarly special cosmetic
Tailams (Oils) and Ghritas (Clarified butter or ghee) were used for facial beautification.
Superfluous hair was considered to be a stigma and a large number of depilatory agents
were recommended to get rid of it. Special ingredients were used for hair washes.
Many remedies have been indicated for hair growth, prevention of falling hair and
premature graying. Hair dyes, fragrant hair rinses and fumigants were also in use.
Fragrant bath powders and body deodorants also find frequent mention. Oral hygiene in
the form of care of teeth, mouth deodorants and coloring of lips were daily chores to be
religiously pursued. It appears that the whole range of modern cosmetic usage was
conceived by the ancient Indians and was practiced with the help of natural resources
then available.
Few cultures valued beauty and cosmetic products in ancient times as the
Egyptians did. The history of ancient cosmetics can also be traced back to the culture of
ancient Greece and make-up was also popular in the Roman Empire. There is sufficient
evidence to suggest that people from all these three cultures used hair dyes for instance.
These people used herbal concoctions with components like henna, sage and chamomile
to darken their hair. It was only in the renaissance period that blond hair became
fashionable.

In other cultures like that of China, fingernail painting was popular in ancient
times. Ancient Chinese people used a mixture of gum Arabic, egg whites, gelatin and
beeswax to make the first forms of nail varnish and royalty preferred to use metallic or
bright colors of nail varnish at that time. People from lower ranks were restricted to the
use of paler nail varnish colors, and this trend of discrimination using nail varnish was
also visible in ancient Egypt.

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 Although cosmetic products have undergone many changes in modern times, the
basic concept of using cosmetics to enhance the features of good health has not changed.
For instance, blush-on is used to conceal pale present a picture of rosy cheeks as opposed
to pale skin and nail polish can be used to conceal brittle or dry nails. The history of
makeup cosmetics however is tarnished by the ill-effects that were often experienced
after applying many ancient make-up products. This was because many such products
were created using dangerous components and also because cleansing lotions are not
anywhere to be found in the early history of cosmetics.

The history of the cosmetics industry includes very dark chapters in European and
Western countries from about six centuries back. Mixtures and pastes were then used to
whiten the face, a practice which remained popular till over four hundred years later. The
early mixtures that were used in Europe for this purpose were so potent that they often
led to paralysis, strokes or death. In that era, another method that was employed to make
the skin appear fairer was to bleed oneself using leeches.

Up to the late nineteenth century, women in Western countries may have secretly
worn make-up made from mixtures of household products, as make-up was then deemed
the domain of film stars. Cosmetics were only openly put up for sale in the early part of
the twentieth century for the first time. Tanned or darker skin tones became popular only
as late as the early twentieth century. It was in this era that tanning the skin became a
popular fad.

The history of cosmetics in the 1930s and 1940s shows how the fashion or trend
with respect to lipstick colors was changed annually, getting darker and closer to red
every passing year. It was around this time that eyebrow shaping also became popular.
However, the true surge in make-up sales occurred at the end of the Second World War
when people were celebrating the return of their loved ones.

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 Chapter 2
Company Profile
& Theoretical
Background

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 Introducing Oriflame

Oriflame is a cosmetics company that sells high-quality natural skin care and
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 Holding AG is a Swedish multi-level marketing company founded in 1967 by

brothers Jonas and Robert af Jochnick. The company sells personal care, lip balms,
accessories and dietary supplements.

According to Oriflame, the company sells in more than 60 countries through a sales force
of approximately 3.6 million MLM distributors with sales of €1.36 billion in 2017.

The brand was created as a reference to Oriflamme, a royal banner of medieval France.

In 2017, Stella Ivy Cosmetic, which distributes Oriflame cosmetic products, was fined by
the government of Vietnam for conducting MLM sales without approval. In addition, the
Ministry of Industry and Trade’s Vietnam Competition Agency (VCA) noted that
Oriflame did not carry out or improperly implemented its obligation of training sales staff

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for its MLM network, and there were no signed labor contracts between Stella and its
sales staff.

While our vision is to be the #1 Beauty Company Selling Direct, our mission has always
been to fulfil dreams, for people all over the world.

CORE VALUES
Togetherness, Spirit and Passion are our core values that make Oriflame so unique.
Trusting these values gives us the confidence to succeed in a competitive business while
at the same time helping to make the world a better place.

Togetherness is about people who work together and share the same goals to achieve
greater results. They motivate each other and know that pulling together is more
rewarding than going it alone.

Spirit is about people who have a can-do spirit, a winning attitude and never give up.
They are committed to do what it takes to succeed.

Passion is about passionate people who have the power to change the world. They love
what they do, they believe in it. They know deep down that they can make a difference.

YOUR DREAMS – OUR INSPIRATION

Oriflame’s brand promise of Your Dreams - Our Inspiration™ is deeply rooted in our
history and heritage. During our 45-year history, we have always been dedicated to
inspire and offer people the opportunity to achieve their dreams through our unique
business concept. Your Dreams - Our Inspiration™ is a manifestation of our commitment
to our clients and consultants; their dreams play a large role in developing our new
beauty products and inspiring programmers that help to develop their own business.

We believe in dreams. A dream is individual and personal. Dreams and goals are
beautiful and important. Oriflame is, and always has been about fulfilling dreams. This is

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what we do. Every day. for people all over the world. Are you a dreamer? Do you have
goals? Welcome.

We believe in beauty. Your beauty is as personal as your dreams. Through our unique
beauty products created in Sweden we have given millions of people the opportunity to
change their lives for the better. When you look good, you feel good. And when you feel
good, you are ready to reach for your dreams.

We believe in you. Our work starts with your dreams. They are our inspiration. We
encourage individuals to dream, to set their own goals. And we are a partner along the
way. Our culture is based on respect for and belief in others. We listen to you. Together
we create a global network of beauty and making dreams come true. Do you want to
fulfill your dreams? We do.

SKIN RESEARCH INSTITUTE

With more than 40 years experience, over 100 scientists and state of the art R&D
facilities, we at Oriflame are constantly searching for better solutions and technologies in
order to create more progressive, innovative products that are consistently on-trend and
meet consumer’s needs.

An Oriflame product’s life begins at our Skin Research Institute, where sophisticated
science is used to create unique and sometimes-patented technologies that give us the
leading edge on our competitors. These new technologies are then passed on to the
scientists in our Product Development Centre in Dublin, Ireland, whose role it is to create
a cosmetic formula that fits within an existing Oriflame brand or has the potential to
begin a new one, bringing it to manufacture and enabling its sales. Most importantly,
though, their role is to create a product that you will love and enjoy using.

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 Oriflame Cosmetics

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 over 30 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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 Marketing of Oriflame:

Oriflame is one of the most rapidly growing direct selling beauty companies. They
currently operate in 61 countries although their offices are distributed all around in the
world in places like Chile, Switzerland, Czech Republic, Poland, Sweden, Russia and
Thailand. This company has market dominance in over 1/2 of these 61 countries they sell
their products in. Sorry but this MLM Program is not available in the United States.

It revolves around Europe, Latin America, Africa and Asia. Oriflame also owns 5
of its own manufacturing facilities so this is no small company. I actually found this
company to review by accident in Wikipedia, although they have been operating for a
long time.
When you become an Oriflame Consulting you'll get direct access to lots of
support material that will assist you in getting your new business off the ground. The
company provides total support every step of the way with great training, updated
catalogues and the latest beauty trend information. You will also have access to sales
support tools so you can view your sales commissions, your downline and things like
that.

They also have an Oriflame University that will give you advanced network
marketing training and in-depth product information. Also every 3 weeks the company
distributes their own newsletter that will tell you about new internal product launches,
local events and recognition of people in your area that have made it to Director or
higher. The company also offers an internal support structure and will wire you into their
entire network of Consultants who educate, train and motivate each other.

Oriflame is a direct selling company who cuts out all the middlemen and passes on
this opportunity to Independent Distributors. The company saves a bundle of money this

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way because they've shortened their distribution chain which is reinvested right into the
MLM Compensation Plan for its members.

After digging a little deeper into the Oriflame website I noticed that a Tamilla
Polezhaeva is their top distributor which they call a Sapphire President. Everyone is this
Network Marketing Company dream of achieving this level. Tamilla's motto is "The Sky
is Not The Limit" which means of course there are no limits to success within this
company if you are willing to put in the work.

I was happy to read their statement on Social Responsibility. The company

maintains the highest product standards as well as clean factories. Their social
compliance program is under constant development and upgrades to keep within the most
stringent requirements of not only the law but ethical responsibility to the community and
its MLM Representatives. They also support the World Childhood Foundation which
supports and sponsors children projects in the areas where they are active.

Although you won't be able to join this company if you live in the United States,
people from Latin America, Africa, South America and Asia have a great opportunity
here. Many times entrepreneurs who live in these areas are isolated from a lot of popular
Network Marketing Companies that are only available to people from the United States.
This company has a great deal of good information on their website if you are interested.

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 Chapter 3
Research
Methodology

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Consumer behavior

Consumer behavior involves the psychological processes that consumers 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 these plans (e.g., by engaging in
comparison shopping or actually purchasing a product).

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.

Beliefs

The first component is beliefs. A consumer may hold both positive beliefs toward
an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled
and stains papers). In addition, some beliefs may be neutral (coffee is black), and some
may be differ in valance depending on the person or the situation (e.g., coffee is hot and

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stimulates--good on a cold morning, but not well on a hot summer evening when one
wants to sleep). Note also that the beliefs that consumers hold need not be accurate (e.g.,
that pork contains little fat), and some beliefs may, upon closer examination, be
contradictory.

Affect

Consumers also hold certain feelings toward brands or other objects. Sometimes
these feelings are based on the beliefs (e.g., a person feels nauseated when thinking about
a hamburger because of the tremendous amount of fat it contains), but there may also be
feelings which are relatively independent of beliefs. For example, an extreme
environmentalist may believe that cutting down trees is morally wrong, but may have
positive affect toward Christmas trees because he or she unconsciously associates these
trees with the experience that he or she had at Christmas as a child.

Behavioral intention

The behavioral intention is what the consumer plans to do with respect to the
object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical
consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g.,
although a consumer does not really like a restaurant, he or she will go there because it is
a hangout for his or her friends.

Changing attitudes is generally very difficult, particularly when consumers suspect

that the marketer has a self-serving “agenda” in bringing about this change (e.g., to get
the consumer to buy more or to switch brands). Here are some possible methods

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  Changing affect

One approach is to try to change affect, which may or may not involve getting
consumers to change their beliefs. One strategy uses the approach of classical
conditioning try to “pair” the product with a liked stimulus. For example, we
“pair” a car with a beautiful woman. Alternatively, we can try to get people to like
the advertisement and hope that this liking will “spill over” into the purchase of a
product. For example, the Pillsbury Doughboy does not really emphasize the
conveyance of much information to the consumer; instead, it attempts to create a
warm, “fuzzy” image. Although Energizer Bunny ads try to get people to believe
that their batteries last longer, the main emphasis is on the likeable bunny.
Finally, products which are better known, through the mere exposure effect, tend
to be better liked—that is, the more a product is advertised and seen in stores, the
more it will generally be liked, even if consumers to do not develop any specific
beliefs about the product.

 Changing Behavior

People like to believe that their behavior is rational; thus, once they use our products,
chances are that they will continue unless someone is able to get them to switch. One
way to get people to switch to our brand is to use temporary price discounts and coupons;
however, when consumers buy a product on deal, they may justify the purchase based on
that deal (i.e., the low price) and may then switch to other brands on deal later. A better
way to get people to switch to our brand is to at least temporarily obtain better shelf space
so that the product is more convenient. Consumers are less likely to use this availability
as a rationale for their purchase and may continue to buy the product even when the
product is less conveniently located.

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 Changing Beliefs

Although attempting to change beliefs is the obvious way to attempt attitude

change, particularly when consumers hold unfavorable or inaccurate ones, this is
often difficult to achieve because consumers tend to resist. Several approaches to
belief change exist.

 Change currently held beliefs

It is generally very difficult to attempt to change beliefs that people hold,

particularly those that are strongly held, even if they are inaccurate. For example,
the petroleum industry advertised for a long time that its profits were lower than
were commonly believed, and provided extensive factual evidence in its
advertising to support this reality. Consumers were suspicious and rejected this
information, however.

 Change the importance of beliefs

Although the sugar manufacturers would undoubtedly like to decrease the

importance of healthy teeth, it is usually not feasible to make beliefs less
important--consumers are likely to reason, why, then, would you bother bringing
them up in the first place? However, it may be possible to strengthen beliefs that
favor us--e.g., a vitamin supplement manufacturer may advertise that it is
extremely important for women to replace iron lost through menstruation. Most
consumers already agree with this, but the belief can be made stronger.

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 Add beliefs

Consumers are less likely to resist the addition of beliefs so long as they do not
conflict with existing beliefs. Thus, the beef industry has added beliefs that beef
(1) is convenient and (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.

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 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 market
conditions.

Trends

Solid growth and a continuous move towards more premium products continued in
2008. However, considering the current recession we will also experience a stronger
demand for low price concepts in the years to come. In parallel we are seeing a rising
demand in the youth and male segments. There is also a continuous increase in the
market for natural and organic ingredients. This follows the growing trend for a more
holistic stance on beauty, health and wellness. More and more cross-industry innovations
are appearing on the market – combining health, beauty and food.

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Objectives

 To study the consumer preference towards Oriflame products.

 To improve the standard and quality of the product.
 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 the Oriflame
product.
 To study the services provided by the agents of Oriflame products.

Methodology

This is an explanatory study on the consumer behavior and satisfaction towards

the purchase of Oriflame product. Both descriptive and analytical methods have been
used to explore the linkages on the status of Oriflame. The present study is based on
survey method. The study is based on primary and secondary data.

Statement of the problem:

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 Tuticorin.

Primary data
It is collected from the questionnaire.

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Sources of Primary Data

Primary data were collect from sample respondents of fifty persons from the
collection of primary data and interview schedule was developed before its application
among respondents. Pre-testing was carried out after altering the structured question
given. It was employed to make sample survey.

Secondary data
It is collected from various journals and websites.

Scope of the study

To know the mind set of people towards cosmetics. How Oriflame has impact on
the minds of the customers. Also to study the Marketing Strategy of Oriflame India Pvt

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 Profile of the study

History of Oriflame

Oriflame Cosmetics is today one of the world's fastest-growing cosmetics

companies. Oriflame has sales operations in 63 countries and market leadership in over
30 countries. A sales force of 3.4 million independent Sales Consultants market a
complete range of high quality skincare, fragrances and cosmetics. Although the
company has grown rapidly it never lost sight of its original business concept - Natural
Swedish Cosmetics from friend to friend.

Oriflame Cosmetics

A World Wide Success Story

 Approximately 2 billion Euros in annual sales.
 3.4 million Sales Consultants.
 7500 employees.
 900 products.
 Over 64 million catalogues in 35 languages.
 Watch the Video Global R&D centre with more than 100 scientists
 5 own production units in Sweden, Poland, China, Russia and India
 Listed on the OMX Nordic Exchange since March 2004

Products based on natural ingredients, never tested on animals

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Achievements of Oriflame:

 1967 Founded in Sweden.

 1970 First Oriflame Consultants start selling in the UK.
 1972 Oriflame Ireland opens as a licensee.
 1988 First Catalogues published in the UK.
 1998 Change to current Success Plan.
 2003 Oriflame UK and Ireland reach 7,000 Sales Consultants.

Overview

In order to keep this complex business on the right track and maintain its rapid rate
of growth, the management of Oriflame Cosmetics was in need of a complete, integrated
management platform.

Business Need

To keep its complex business on track and maintain its rapid rate of growth,
Oriflame Cosmetics needed a complete, integrated management platform. The investment
had to benefit business performance over the long term, so the company decided to
implement a total package for performance management.

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Challenges faced
A product catalogue represents the only shop-front and sales vehicle of the
originally Swedish cosmetics supplier, Oriflame. This catalogue is distributed in the form
of a printed sales brochure which can also be accessed online. In the majority of markets
in which the group is active, the catalogue is updated every three to four weeks. “Every
year, we print around 100 million copies of the sales brochure, which is distributed in
some 30 languages around the world,” explains Gabriel Bennet, Chief Financial Officer
at Oriflame Cosmetics. “The brochure presents just a selection of our range, which totals
almost 1000 products. Because 30 to 40 percent of those are updated every year, we are
able to offer our customers a completely new range of cosmetics products every three
years.” In addition, prices and promotional offers of Oriflame Cosmetics’ products are in
some cases adjusted on a daily basis, in order to capitalize on new trends or opportunities
in the market. “We certainly haven’t made it easy on ourselves. But despite the
complexity of our business, we are now one of the fastest growing companies in the
cosmetics industry,” says Bennett. Indeed, sales of Oriflame Cosmetics have grown an
average 17 percent each year between 1990 and 2005. Today, Oriflame Cosmetics is not
only incredibly strong in Central, Eastern, and Southern Europe, but is also experiencing
rapid organic growth in Asia and Latin America.
In order to keep this complex business on the right track and maintain its rapid rate
of growth, the management of Oriflame Cosmetics was in need of a complete, integrated
management platform. “In the first place, we needed to support our existing business
processes and strategy,” says Bennett. “But we also felt that our new solution should
enable us to adapt those processes and strategies, where necessary, at very short notice.
Moreover, our investment had to benefit business performances over the long term. That
is why we decided to implement a total package for performance management.”

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Strategy Followed
According to Gabriel Bennet, the implementation of such a performance
management system was also an important criterion for the successful introduction of the
concept of integrated business management. “That concept implies that you already have
a single set of figures, or in other words, permit only one version of the truth with regard
to your business performance,” Bennett explains. “By ensuring that all countries and
departments within our group worked with the same correct, unambiguous data, we were
hoping to boost both the quality and speed of our communication.”
For that reason, Oriflame Cosmetics had already invested in the construction of an
Oracle data warehouse and in acquiring IBM Cognos financial consolidation software.
“In this sense, we had already begun the first phase of our project, says Bennett. “To
completely finalize that phase, all we had to do was further roll out IBM Cognos 8
Controller, throughout our organization. That is how we were able to lay the foundations
for an all-encompassing, completely integrated management platform.”
“When we were to go in search of a supplier who could offer us a total package
for performance management, we were quick to return to IBM Cognos,” says Christian
Jönsson, Group IT Director at Oriflame Cosmetics. “On closer inspection, the majority of
the other suppliers appeared to offer only parts of the required solution. IBM Cognos was
one of the few who could compile all the necessary elements for us in order to develop a
complete performance management system—software for financial consolidation,
analysis and reporting, and planning and forecasting.”So Oriflame turned to IBM Cognos
again for the second and third phases of its project, and in addition to IBM Cognos 8
Controller, decided to roll out IBM Cognos 8 BI and IBM Cognos 8 Planning as well.
“The real reason we decided to go with IBM Cognos was the rich pallet of
functionalities afforded by the technology, along with its user-friendliness. The average
user with basic knowledge of Excel and the internet can start using IBM Cognos 8 BI in
just half an hour.”

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Benefits Realized

Oriflame implemented IBM Cognos 8 Controller worldwide to allow better

management of its financial performance, and enable every level of the group to work
with a single, identical set of figures. “With this deployment, we have actually achieved
the complete standardization and integration of all financial reporting within the group.
Coming from a Microsoft® Excel® based, non-aligned environments, we now find
ourselves working with one fully integrated financial management system. This is
improving the quality of our data and the speed with which it is processed immensely,”
explains Johnson.
“As a result of that improved level of control, we are now able to adjust our
business processes where necessary,” adds Gabriel Bennet. “And thanks to the
implementation of IBM Cognos 8 BI, we can now also generate better analyses and
reports, giving us a much keener insight into the performances of our marketing, sales,
and distribution networks.”
Best of all, the implementation of the performance management system also lead
to significant changes at the level of strategic management and the introduction of
integrated business management in Oriflame. “We now conduct a monthly product
management review, followed by a demand review and a supplier review to support and
improve our sales and operations planning,” concludes Bennet. “Finally, a management
business review reconciles all of these review processes, so that the information derived
from them can be used at a more strategic management level.”
The next level of improvement for Oriflame is in planning and forecasting.
Bennett says, “We expect to get the most benefits from the third and final phase of our
project, which is designed to help improve our planning and forecasting. That is one of
the most difficult processes in our business and yet one of the most important and we’re
deploying IBM Cognos 8 Planning to handle this phase.”

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Attract, Develop and Retain

Oriflame has approximately 2.9 million independent sales consultants in 61

countries. In addition to this we have over 7,000 employees located in offices all over the
world, including Stockholm, Moscow, Warsaw, Santiago and Bangkok. For us to retain
these people and moreover to be able to attract outstanding professionals, we must offer
motivation and potential for development. We have therefore launched a number of
management and leadership training programmes. We have also implemented a new
strategy for compensation and benefits. To find the right person for each position, we
have adopted a performance management and succession planning system. Our most
important training programmes are found in the Oriflame Academy, implemented in
2007. This internal three-step development programme has been created to support and
strengthen Oriflame’s culture, by ensuring that all employees understand our core values
and operating principles. It is also aimed at increasing integration, strategic
understanding, leadership and management skills.

An Attractive Beauty Offer

Over the years, Oriflame has launched thousands of products within Skin Care,
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 common – they 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.

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Oriflame Cosmetics known for its Natural Beauty Cosmetics
Oriflame cosmetics are a well known Swedish company with natural beauty
cosmetics. This company has been around for a solid 43 years and still going strong.
They have over 3 million distributors and have business in 62 countries. This company
ranks right up there with Mary Kay and Avon companies. Although Oriflame does not
have distributors in United States, you can find their wonderful natural Swedish products
online.

This company was started by two brothers Jonas and Robert AF Jochnick along
with a friend Bengt Hellsten. 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.

The Oriflame Company has a motto that ‘Make Money Today and Fulfill your
Dreams Tomorrow’. To join this company the start up cost is low with a no risk sign up
policy. They offer the opportunity of being part of their company to sell cosmetics and
personal care products. This is a energetic business with a strong 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

- 32 -
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. 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 finger tips, 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 full potential. 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 Cognos BI and Performance Management

IBM Cognos business intelligence (BI) and performance management solutions

deliver world-leading enterprise planning, consolidation and BI software, support and
services to help companies plan, understand and manage financial and operational
performance. IBM Cognos 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 choose IBM Cognos solutions.

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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 a 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 an in-depth
strategic analysis of the company‘s business and operations. The profile has been

- 34 -
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. The profile helps you formulate
strategies that augment your business by enabling you to understand tour partners,
customers and competitors better.

This company report forms part of the ‘profile on demand on Demand’ service,
covering over 50,000 of the world’s leading companies. Once purchased, the highly
qualified team of company analysts will comprehensively research and author a full
financial and strategic 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).

The profile contains critical company information including,

 Business description – A detailed of the company’s operations and business

divisions.
 Corporate strategy – Analyst’s summarization of the company’s business strategy.
 SWOT Analysis – A detailed analysis of the company’s strengths, weakness,
opportunities and threats.
 Company history – Progression of key events associated with the company.
 Major products and services – A list of major products, services and brands of the
company.
 Key competitors – A list of key competitors to the company
 Key employees – A list of the key executives of the company.
 Executive biographies – A brief summary of the executives’ employment history.
 Key operational heads-A list of personal heading key departments/functions.
 Important locations and subsidiaries – A list and contact details of key locations
and subsidiaries of the company.

- 35 -
  Detailed financial ratios for the past five years – The latest financial ratios derived
from the annual financial statements published by the company with 5 years
history.

Interim ratios for the last five periods – The latest financial ratios derived from the
quarterly/semi-annual financial published by the company for 5 interims history.

- 36 -
 Some Product Reviews

Skin Care

Skin Care is our core category as it helps to generate loyal customers who value our
expertise and technological achievements. Oriflame Skin Care brands are targeting
consumers of various age groups and price expectations. We are building a consistent
skin care routine inviting our customers to look after their skin from the very first steps of
cleansing to a special anti-ageing routine. One can find easy-to-use skin care products for
essential and everyday face care. For those who are ready to spend more time on their
skin care routine, they have the choice of premium skincare products to suit different age
groups and types of skin. Sophisticated consumers will always find products which, apart
from innovative, natural ingredients, are effective due to their technological
achievements. Modern, up-to- date skin care packaging also adds much value to our high
quality products. Oriflame Skin Care is concentrating in particular on developing strong
segments, for moisturizers as well as anti-cellulite and anti-ageing categories. To learn
more about Oriflame Skin Care, get to know our skin care brands.

We believe in the power of natural ingredients, and that with scientific support, it creates
the most effective results. Whatever your skin type and age are, our huge range of the
latest skin care ingredients are tailored just for you.

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Make Up

Welcome to Colour Cosmetics. Here innovation meets fashion in make-up for

everyday beauty and festive glamour. We use the best ingredients and natural extracts to
create cosmetics that are safe and effective, even on the most delicate skin. We have three
cosmetics ranges with three different beauty styles – for all your make-up moods

1} Colourbox

Make-up should enhance your natural beauty, but also give you freedom to
express your individual, radiant personality. We offer the best on-trend beauty picks and
essentials such as mascaras, lipsticks, blushes, and foundations, everyday cosmetics for
the face, eyes, lips and nails, plus shades that suit everyone and every look. Whether
seasonal basics or inspirational colour combinations, it’s easy to shop our new products –
all to look beautiful from morning to night.

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 2} The One

The One is about self-expression. It is young, edgy and fun with a positive,
energetic vibe. This is the make-up for hip girls who want to experiment and change their
look. Very me represents individual, creative style – at fantastic prices!.

3} Giordani Gold

Giordani Gold represents affordable luxury. This is where beauty goes beyond
appearances – it is a lifestyle. Here advanced science unites with femininity, modern
elegance and perfection. The Giordani Gold world embodies the art of feminine
sophistication. The perfect beauty for the perfect life.

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Fragrances

Is there anything more potent and evocative than a scent? A fragrance can trigger a
smile, make you fall in love or set the mood. Your favorite scent can take you on an
emotional journey and transport you to your most cherished memories.

Many elements affect your choice of fragrance: mood, occasion or season so why
not be spoilt for choice? The scope of our fragrances means you’ll never need to go
without the right scent for the right occasion. Oriflame’s commitment to quality means
that every fragrance is the creation of the world’s best and most respected perfumers,
who use only the finest essences and essential oils. Discover a new you. Discover a world
of fragrances with Oriflame.

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.

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Bath & Body

Body care means taking care of your body from head to toe and plays an important
role when you will feel clean, refreshed, healthy and pampered. We offer a
comprehensive range of products for feet, oral hygiene and body, to meet your daily
needs.

Hair Care

Whether you want to try out the latest hair trends or need care and treatment to the hair,
so we have great styling and hair products that do the job.

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Wellness

Are you ready to feel, and look, fantastic? At Wellness by Oriflame, we’re committed to
guiding you through the complex world of healthy eating and dietary supplements,
offering a range of high-quality, natural products that are developed by world-leading
Swedish scientists. We also offer all the lifestyle advice you need to live a long, happy
and healthy life.

Youth

Today’s youth are more trend-conscious than ever. They know what they like but
they’re open to experimenting with their personal style and appearance. With that in
mind, we have developed several fragrance lines especially for them. Taking cues from
their brash, self-confident and free-spirited attitude, we have come up with great
fragrances for young women and men that reflect the essence of today's youth.

- 42 -
 SWOT Analysis

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.

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 a network of 2.3
million independent sales consultants in Latin America, CIS and Baltic, 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 Livslust Foundation. 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 124.39 million 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. Once purchased, Global Data’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

- 43 -
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.

- 44 -
 Annual Report of 2017

“ As a makeup artist, Oriflame impressed me so much that I wanted to share the

products with more people. I love this entrepreneurial experience !”

Zhang Li

Independent Oriflame Manager

China

“Oriflame has been a life changing experience for me. My journey from a
housewife to a business woman has been phenomenal. My dream of living an
independent life has come true with the fantastic Oriflame Opportunity. ”

Suparna Sinha

Independent Oriflame Gold Director

India

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 Enabling Change

Oriflame's business success is built on a simple formula combine people's natural desire
to improve their lives with the right opportunity, and it creates real, positive, change.

We are proud to offer people all over the globe the opportunity to make that change. If
they share our passion for beauty and wellness, we can help them drink more of it into the
world. For the majority, that means saving money while enjoying a responsible beauty
and wellness products. For others it, means using a direct-selling model to earn an
income or to build a business

Oriflame has proven business model, perfect for the modern networking world. It is
flexible, digital and powered by millions of trust in relationships and recommendations.
With no risk beyond the small joining fee, we offer "entrepreneurship in a box".

By accelerating our business, we have a positive impact on people and communities

around the world. The value of local entrepreneurship in our global society is well
recognised, from the jobs it generates to the skills it nurtures.

50 years in, Oriflame is the choice of 3 million people looking ahead, we are committed
to continuing to build on the simple formula empowering people and enabling positive
change around the world.

- 46 -
 Statement from the CEO

2017 was a fantastic year for Oriflame, the year that the company celebrate its 50th
anniversary behind this year's results - where we delivered healthy growth, a significant
increase in profitability and strengthened financial position- where long term strategic
activities and the shared commitment of many people.

Ever since it was founded, Oriflame has been about daring to tackle an adapt challenges.
We are used to tough markets and operating regions where same see difficulties but we
see opportunities. On some occasions, we have needed to take bigger leaps than others. It
was about five years ago that we realized that we had to take one of those leaps and make
transformation, without harming the core of our operations. That was when we laid the
foundation for the strategy of which we are now reaping the rewards.

The income opportunity

Oriflame's idea is to give people around the world opportunity to change their lives by
offering entrepreneurship and personal development. That is why everything we do is
based on the development and business opportunities of our consultants. What creates
success for them, create success for us.

Flexibility, development and the ability to control one's own time are becoming
increasingly important for the consultants and the customers of tomorrow we ask
ourselves how we can remain relevant and ensure that are consultant's involvement in
Oriflame is worth it ? How could they on more, without walking more ? Selling many
more products proved not to increase the earnings ability. On the contrary, it involved
more work and just marginally better earnings. We needed to upgrade offering to add
value.

- 47 -
By focusing on the strategic product categories of skin care and wellness we found that
added value. High value and high-margin products drive profitable growth, create brand
value and loyalty - thereby supporting the growth of the company as well as the earnings
opportunity for a Consultants.

The Digital Transformation

I have often said that Oriflame transformed from home parties to influencers, and buy
that I mean that a 50 year old business model of personal relationships has an obvious
online relevance. This has been natural transformation for us, and adjustment of the
model to a more modern way of thinking, communicating and interacting. There are
many examples of people who have been developed themselves and their operations
online. Many particularly in Asia, started their business online and have reached high
levels in a short space of time. Others, with many years of offline experiences Oriflame
leaders in for example CIS have managed to successfully transition and are now leaders
working online in their markets.

The Geographical balance

Striking a more balanced geographical mix has also been clear part of a strategy.
You can never predict exactly what the future will hold in a changeable world,
which is why the mix we see today is the result of both a conscious strategy and
external factors. Oriflame is now more balanced global company than it was few
years ago, particularly due to the investment we have made in our six strategic
markets. We see immense potential in both our more mature and our growth
markets, and we will also continue to enter new markets. What we know for a
certain is the geographical balance will continue to vary over time.

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Financial Highlights

Oriflame reported a year of healthy Euro growth and double-digit local currency growth
with strong profitability improvements. Skin care and wellness sets and routine served as
significant drivers of growth and price mix development during the year. The
performance in Asia and Turkey remained strong and CIS return to growth - supported by
sustained high productivity levels. Latin America recorded healthy growth and
development in Europe and Africa was mixed, with solid and underline growth in Africa
and stable skills in Europe. 2017 was also year of continued healthy and cash flow and at
the end of the year Oriflame was net debt free.

- 49 -
- 50 -
 Operational Highlights

During 2017, important strategic initiatives were taken to enable sustainable growth and
further marginal expansion.

Continuing the online development

Focus areas throughout 2017 were continued development and implementation of the
new E-Commerce engine and for the enhancement of the Oriflame app suite. the increase
in mobile app usage continued with more than 7 lakh active monthly users of the
Oriflame app. Other activities during the year included the development of online
payment options, consultant tools, improved personalization and segmentation support.

Capturing manufacturing opportunities

Through its fully owned manufacturing entity, Cetes Cosmetics AG, Oriflame is taking
various initiatives to achieve more efficient manufacturing and capacity utilisation. The
main function of Cetes cosmetics AG is to continue to support the organic growth of
Oriflame by leveraging the manufacturing assets with an external volumes.

Focusing on the income opportunity

Offering the consultants a competitive income opportunity is key for Oriflame future
success. During the year, the decision was taken to make further investments in the
company's success plan and other related consultant programs in India. The enhanced
programs include higher bonuses and performance discounts, more attractive leader club
programs and a new car program with the possibility to qualify as early as the gold
director level

- 51 -
 Product highlights

During the year, the strategic product categories of skin care and Wellness increased the
full year sales. The main initiatives within the skin care included the launch of Novage
Time Restore as well as the China - specific relaunch of the mass brand Optional, which
primarily targets younger audience interested in benefits other than Anti aging. The
growth in Wellness was primarily driven by set sales.

Several launches were carried out in colour cosmetics The ONE No Compromise
mascara was introduced, using wrap lash technology that only requires warm water to be
removed. The limited edition Giordani Gold Bronzing Pearls was the popular gift for the
Mother's Day and International Women's Day Celebration.

The performance in the fragrance category was primarily driven by new products. Key
launcher during the year included Sublime Nature Tonka Bean, Venture Beyond and
Amber Elixir Crystal.

In Personal and Hair care, Love Nature was launched with all rinse off products been
biodegradable, hair products silicone free exfoliates having natural origin beads.

With Accessories, the electric Foot File Feet up Pedi Smooth enjoyed a successful
launch.

- 52 -
- 53 -
 Company Overview and Strategic Direction

This is Oriflame

The main components of the Oriflame brand are displayed as the foundation of the
Oriflame house. The fundamentals - mission, values and the Swedish attributes – define
Oriflame as a company. They summarize the most important and the long-lasting
qualities of Oriflame community, describing what has made Oriflame great in the past
and what will carry the company successfully into the future.

Combined with the company fundamentals, the beauty and business offerings are what
build the uniqueness of the Oriflame brand. This Uniqueness is summarized in the Brand
Positioning Statement : Beauty by Sweden

The roof of the Oriflame House symbolizes in the company’s vision – the long-term
strategic direction in which the company is moving and the ultimate goal.

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 Our Vision

To be the #1 Beauty Company Selling Direct.

- 55 -
  Our Brand Positioning

What makes Oriflame Unique is the Swedish approach to offering beauty and
business to people around the world

 Our Swedish Attributes

Accessible, Natural, Progressive, Trustworthy

Oriflame is proud of its Swedish Heritage, as it plays a vital role in what makes
the company unique and has helped to define how the company operates. Sweden is a
country with many positive associations and, as the only speed is brand in the global
beauty arena selling direct Oriflame holds a unique position.

Accessible, natural, progressive and trustworthy or Oriflame Swedish attributes

exhibited through the companies offering and general approach to business.

 Our Values

Togetherness, Spirit & Passion

The Oriflame community is united by the shared values of togetherness, spirit and
special. These three words have guided the company for a long time and will continue to
guide Oriflame in the future. The values are infused into everything the company does
and living by these values guides the culture and decisions made.

 Our Mission

To Fulfill Dreams

- 56 -
 The Beauty Offering

Beauty as a way of life; a healthy lifestyle, beautiful skin and personal expression

Oriflame offers a wide and dynamic assortment of high quality products that combine the
best of nature with advanced Swedish science, and use safe eco - ethically screened
ingredients. The portfolios spans 6 complementary categories Skin care, Colour
Cosmetics, Fragrance, Personal and Hair care Accessories and Wellness.

The beauty offering is developed with the consultants in mind, supporting the Oriflame
recommendation model and thereby driving activity and retention. The product should be
easy to buy and recommend to others because of their high quality, great product stories
and unique product benefits providing a compelling and relevant proposition. All
products serve a specific purpose in the product portfolio and across various sales tools
and methods. some products me play the role of door openers and activity drivers and are
well suited for the catalogue. some may be designed to create a bus that attracts
customers why social media, while others are intended to strengthen the brand and the
product culture.

Skincare and wellness are strategic product categories that drive sales and profitability,
create brand value and loyalty, and increase productivity and income opportunities for the
consultants. These are also categories that customers of a need more help navigating and
where the consultants can add value by helping the customers to identify the products that
meet their individual needs. Skin care and wellness daily routine are a key element in the
beauty offering, clearly reflecting Oriflame believe in the Synergy effect of combining
products to obtain the best individual results.

- 57 -
 The Business Opportunity

Make money today and fulfill your dreams tomorrow

Since the very beginning, Oriflame has made entrepreneurship accessible. Within
attractive joining fee and no need to invest in product inventory, consultants have the
opportunity to start using and selling the Oriflame products and making money from day
one. Oriflame acknowledges is the importance of offering and attractive earnings
proposition that is trustworthy, simple and easy to understand. This is supported by
increase focus on selling more for customer contact by presenting daily routine of a
dinner sets at good value, as well as an integrated suite of attractive and modern business
tools that help the consultants to manage and develop their business.

Oriflame distinguishes itself by taking human touch up approach in all of its interaction
with consultants. Oriflame aspire to be known as the company in which consultants feel
scene appreciated and recognized. Personal and professional development is another
important part of the consultant value proposition. Oriflame aims to provide the
consultant with a rewarding journey and delivers on this by offering world class rules,
training, conferences and events, but equally important are the daily activities and
interactions within the networks.

- 58 -
 Driving growth and profitability

Focus on 7 growth drivers

Oriflame has identified 70 drivers that the company believes are crucial to focus on to
deliver on it strategy. the growth drivers comprise the most important strategic areas
where Oriflame seize the opportunity develop a significant competitive edge and the
engine of growth, as well as areas where there is scope for for the development to drive
growth and profitability in line with the strategic direction.

 Product Culture and Hero Sets

Skin care and well as a strategic product categories that drive sales and
profitability, create brand value and loyalty, and increase productivity and the
income opportunities for consultants.

 SARPIO
SARPIO (Sales and recruitment processes in Oriflame) is a unique differentiator
for Oriflame, providing a comprehensive methodology for how to drive systematic
recruitment and leadership development.

 Success plan
The success plan is Oriflame ultimate tool for awarding the consultants. All
offering a competitive income opportunity is key for the company's future success

- 59 -
 Conferences
Conferences are one of the Oriflame key incentives when it comes to building the
Oriflame community and creating a sense of social belonging as well as promoting
recognization, motivation and performance among consultants, primary leaders.

 Digital
As part of the global digital transformation, Oriflame's business model is involved
evolving and now largely comprises and online social selling model, with close to
95% of all orders placed online.

 Customer service
Oriflame advantages lie in its relationship with its consultants. The company is
dedicated to delivering consistent, personalized and positive experiences through
all touch points.

 Brand
A comprehensive brand focus is necessary to ensure that all brand touch points
build Oriflame brand position.

- 60 -
 Social Selling of Today

The basis for Oriflame has always been social selling. As part of the global digital
transformation Oriflame business model is evolving and now largely comprises and
online model.

Oriflame digital strategy has a consultant centric approach, which means that the
initiatives As if from the perspective of how the consultants are empowered to sale,
recruit and manage their business using the latest digital tools. This also means that
Oriflame aims to reach the online beauty shoppers segment mainly through its
consultants, thereby leveraging the power of personal recommendation online. This can,
for example, take the form of consultant sharing inspiring and insightful beauty content
with their friends through social media that is connected to relevant and attractive
products. The product and then either be delivered personally by the consultant or ship
directly to the customer by Oriflame.

The consultants are compensated for the actual sales volume generated by them and their
network. Consultants can use personal links and recommending Oriflame on digital
platforms. Any leave that uses such a link as a point of contact with Oriflame will be
attributed to the appropriate consultant when registering for making a purchase. Oriflame
never bypasses the consultants and in case of drop in registrations by no consultants can
be identified; affairs share allocation algorithm is used to ensure that the commission is
still distributed to the consultants.

As the digital transformation at continuous, Oriflame is focusing on the needs of

tomorrow, developing new tools and new ways of thinking. In order to better understand
the behavior of the consultants and those be able to communicate in a relevant to way,
Oriflame is also pursuing analytical segmentation and marketing automation.

- 61 -
Sustainability

As an inseparable part of its future success, Oriflame is integrating sustainability

throughout its operational framework and business strategies. Oriflame comprehensive
sustainability strategy constitutes of a broad set of commitment covering product
development, social issues and environmentally focuses targets. The strategy is based on
a materiality assessment and focus on areas with the greatest relevance for Oriflame, and
the initiatives can have the largest impact. for each of the three key areas, Oriflame has a
set of a range of commitments and time bound targets designed to improve performance
and move the company closer to its long-term vision of becoming sustainable.

1} Successful people
a cornerstone in Oriflame corporation is, and has always been, to create opportunities to improve
people life forms consultants, employees and suppliers, but also in a broader sense through its
community involvement and support for social causes.

2} Great products
Continuously improving the sustainability profile of product ranges is part of Oriflame strategy
to bring beauty and well being in a responsible way. Oriflame goal is to continue developing
products that made the highest social ethical and environmental standards.

3} Thriving planet
Driving environmental sustainability, not only across Oriflame zone activities but throughout the
value chain, is it long term goal. Focus areas include the sourcing of renewable and sustainable
materials whenever possible, cutting emissions to air and water, and reducing the amount of the
waste produced.
Sustainability has a permanent place on the management agenda, where targets and
commitments are regularly followed up and reviewed while progress is been made, Oriflame
recognize that this is continuous journey there still much more to be done and new challenges lie
ahead

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 Chapter 4

Analysis &
Interpretation
of Data
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 Analysis & Interpretation of Data

Analyzing survey data is an important and exciting step in the survey process. It is
the time that you may reveal important facts about your customers, uncover trends that
you might not otherwise have known existed, or provide irrefutable facts to support your
ideas. By doing in-depth data comparisons, you can begin to identify relationships
between various data that will help you understand more about your respondents, and
guide you towards better decisions.

This project gives you a brief about oriflame customers. Analysis is intended to provide a
foundation upon which we can confidently conduct our own survey.

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 Table 3.1

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

Source: Primary Data.

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 35 years.

Fig.3.1

20-30 years
30-35 years
Above 35 years

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 Table 3.2

Gender wise classification

Particulars No. of respondents Percentage

Male 2 4
Female 48 96
Total 50 100

Source: Primary Data.

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

Fig 3.2

Male Female

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 Table 3.3

Usage of product

Particulars No. of respondents Percentage

As per instruction 20 40
By your own wish 19 38
On friend’s advice 11 22
Total 50 100

Source: Primary Data.

The above table reveals that 40% of respondents use Oriflame product as per
instruction, 38% of respondents use Oriflame product by their own wish and 22%
of respondents use Oriflame product according to their friend’s advice.

Fig. 3.3

As per instruction
By your own wish
On friend’s advice

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 Table 3.4

Price of the Oriflame product

Particulars No. of respondents Percentage

Un satisfied 3 6
Satisfied 40 80
More satisfied 7 14
Total 50 100

Source: Primary Data.

The above table reveals that 6% of respondents are unsatisfied with the price 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.

Fig.3.4

Un satisfied Satisfied More satisfied

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 Table 3.5

Opinion about Oriflame product

Particulars No. of respondents Percentage

Good 29 58
Better 21 42
Bad 0 0
Total 50 100

Source: Primary Data.

The above table reveals that 58% of respondents feel good about Oriflame product
and 42% of respondents feel better about Oriflame product.

Fig.3.5

Good
Better
Bad

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 Table 3.6

Usage of the product

Particulars No. of respondents Percentage

Lip stick 10 20
Nail polish 18 36
Face care 22 44
Total 50 100

Source: Primary Data

The above table reveals that 20% of respondents use lipstick in Oriflame, 36% of
respondents use nail polish in Oriflame and 44% of respondents in Oriflame.

Fig.3.6

Lip stick
Nail polish
Face care

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 Table 3.7

Preference of other brands

Particulars No. of respondents Percentage

Lakme 11 22
Oriflame 29 58
Amway 10 20
Total 50 100

Source: Primary Data.

The above table shows that 22% of respondents prefer Lakme product, 58% of
respondents prefer Oriflame product and 20% of respondents prefer Amway
product.

Fig.3.7

Lakme
Oriflame
Amway

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 Table 3.8

Period of usage

Particulars No. of respondents Percentage

0-2 years 26 52
2-4 years 15 30
Above 4years 9 18
Total 50 100

Source: Primary Data.

The above table reveals that 52% of respondents are using the Oriflame products
below 2 years, 30% of respondents of respondents are using the Oriflame products
between 2-4 years and 18% of respondents are using the Oriflame products above
4 years.

Fig.3.8

0-2 years
2-4 years
Above 4years

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 Table 3.9

Usual purchase of product

Particulars No. of respondents Percentage

Mascara 11 22
Eye liner 6 12
Others 33 66
Total 50 100

Source: Primary Data.

The above table shoes that 22% of respondents purchase mascara usually in
Oriflame product, 12% of respondents purchase eye liner in Oriflame
product and 66% of respondents purchase other Oriflame products.

Fig.3.9

Mascara
Eye liner
Others

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 Table 3.10

Notice TFM% in the product

Particulars No. of respondents Percentage

Yes 42 84
No 8 16
Total 50 100

Source: Primary Data.

The above table shows that 84% of respondents notice TFM% of Oriflame
product, 16% of respondents does not notice the TFM% of the Oriflame
product.

Fig.3.10

Yes
No

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 Table 3.11

Customer care service

Particulars No. of respondents Percentage

Excellent 14 28
Satisfactory 36 72
Un satisfactory 0 0
Total 50 100

Source: Primary Data.

The above table reveals that 28% of respondents feel that customer care
service in Oriflame product is excellent and 72% of respondents feel that
customer service is satisfactory in Oriflame product.

Fig.3.11

Excellent
Satisfactory
Un satisfactory

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 Table 3.12

Category of people

Particulars No. of respondents Particulars

High class 14 28
Middle class 14 28
Low class 2 4
All of the above 20 40
Total 50 100

Source: Primary Data.

The above data reveals that 28% of respondents say that high class people
use Oriflame product, 28% of respondents say that middle class people use
Oriflame product, 4% of respondents say that low class people use Oriflame
product and 20% of respondents says that all category of people use
Oriflame product.

Fig.3.12

High class
Middle class
Low class
All of the above

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 Table 3.13

Display of product in show room

Particulars No. of respondents Percentage

Satisfied 33 66
Excellent 15 30
Un satisfied 2 4
Total 50 100

Source: Primary Data.

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 show room.

Fig.3.13

Satisfied
Excellent
Un satisfied

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 Table 3.14

Usage of child products

Particulars No. of respondents Percentage

yes 19 38
No 31 62
Total 50 100

Source: Primary Data.

The above table reveals that 38% of respondents use Oriflame product for children
and 62% of respondents does not use Oriflame product for children.

Fig.3.14

yes
No

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 Table 3.15

Benefit in dealership

Particulars No. of respondents Percentage

Yes 28 56
No 22 44
Total 50 100

Source: Primary Data.

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.

Fig 3.151

Yes
No

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 Chapter 5

Conclusion,
Suggestion, &
Recommendation

- 80 -
Conclusion

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 the Oriflame sales network.Thus the research group
concludes that Oriflame will surely reach its height very soon in Tuticorin District.

Findings

The researchers have revealed the following findings from the study.

 From the study it is understood that most of the respondents attracted to Oriflame
Products than other type of cosmetics like Foundations, 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 study shows that they are satisfied with price of the product.

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  The study is understood that most of the respondents notice the TFM% in
Oriflame Product.

Suggestion

The following suggestions help in improvement of Oriflame. If these points are

considered, then surely it will increase the sale.

 If the price of the cosmetics is reduced it will surely attract more people than the
present. More over 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 Thoothukudi 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.
 Media advertisement should be given so that other customers can be aware of the
product.
 The quality of the customer service at Thoothukudi branch can be increased in
order to satisfy the customer so that there will be increase in the customer.

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 Chapter 6
Bibliography

- 83 -
 Bibliography

 https://in.oriflame.com
 https://en.wikipedia.org/wiki/Oriflame
 https://in.oriflame.com/about
 https://reports.oriflame.com/en/annual-report-2017/
 http://investors.oriflame.com/investors/reports-and-presentations/annual-
reports
 https://corporate.oriflame.com/SUSTAINABILITY/Management/Strategy/
 https://www.slideshare.net/AdityaaSankhe/oriflame-marketing-strategy
 https://www.rediff.com/money/2005/apr/20inter.htm
 https://www.companieshistory.com/oriflame/
 http://corporate.oriflame.com/About_Oriflame/history/
 http://oriflamenature.weebly.com/oriflame-success-plan.html
 https://economictimes.indiatimes.com/company/oriflame-india-private-
limited/U74899DL1994PTC061083
 https://economictimes.indiatimes.com/industry/cons-products/fashion-/-
cosmetics-/-jewellery/oriflame-to-focus-on-wellness-sets-best-growth-rate-
this-fiscal/articleshow/47043678.cms
 https://www.exchange4media.com/media-print-news/oriflame-to-target-
middle-end-market-3876.html
 http://www.allrefer.com/9-expensive-best-makeup-brands-world
 https://listsurge.com/top-10-best-cosmetic-brands/
 http://investors.oriflame.com/sites/default/files/oriflame-201506150701-
1.pdf
 https://uk.oriflame.com/customer-service/terms-conditions-uk/information-
for-consumers-uk

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