project on oriflame

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ORIFLAME 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 1 Thoothukudi

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Page 1: Project on oriflame

ORIFLAME

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

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(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 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

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ORIFLAME

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.

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.

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ORIFLAME

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.

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.

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ORIFLAME

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.

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

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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 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.

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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.

Consumer behavior:

Consumer behavior involves the psychological processes that

consumers go through in recognizing needs, finding ways to solve these needs,

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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 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.

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ORIFLAME

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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ORIFLAME

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

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ORIFLAME

continue to buy the product even when the product is less conveniently

located. 

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.

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.

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ORIFLAME

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.

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

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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.

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.

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ORIFLAME

Scope of the study:

This project was chosen to know about the customer satisfaction towards

oriflame in Thoothukudi district. To know the mind set of people towards

cosmetics. How oriflame has impact on the minds of the customers.

Chapter scheme:

Chapter I-Introduction and design of the study

Chapter II-Profile of the study

Chapter III-Data analysis and interpretation

Chapter IV-Findings, suggestion and conclusion

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ORIFLAME

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.

O r i f l a m e C o s m e t i c s :

A W o r l d w i d e S u c c e s s S t o r y :

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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ORIFLAME

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

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to benefit business performances over the long term. That is why we decided to

implement a total package for performance management.”

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

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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.”

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,”

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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.”

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.

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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.

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

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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 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

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ORIFLAME

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

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Over 23,000 customers in more than 135 countries around the world choose

IBM Cognos solutions.

Economic status:

Oriflame Cosmetics SA reported consolidated earnings results for the

fourth quarter and full year ended December 31, 2010. For the quarter, the

company reported sales of EUR 440,111,000 against EUR 382,485,000 for the

same period of previous year. Operating profit was EUR 61,010,000 against

EUR 53,658,000 a year ago. Net profit before income tax was EUR 59, 559,000

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ORIFLAME

against EUR 48,073,000 a year ago. Net profit was EUR 55,702,000 or EUR

0.97 per diluted share against EUR 40,127,000 or EUR 0.70 per diluted share a

year ago. Cash flow from operating activities was EUR 61,340,000 against EUR

100,878,000 a year ago. Purchase of property, plant, equipment and investment

property was EUR 17,391,000 against EUR 8,008,000 a year ago. EBITDA was

EUR 68.2 million against EUR 57.7 million a year ago. Adj. operating profit

was EUR 61.0 million against EUR 55.0 million a year ago. Adj. net profit

before income tax was EUR 59.5 million against EUR 49.4 million a year ago.

Adj. net profit was EUR 55.7 million or EUR 0.97 per diluted share against

EUR 41.5 million or EUR 0.73 per diluted share a year ago. For the full year, the

company reported sales of EUR 1,513,596,000 against EUR 1,316,595,000 for

the same period of previous year. Operating profit was EUR 157,351,000 against

EUR 145,441,000 a year ago. Net profit was EUR 117,537,000 a year ago. Net

profit was EUR 117,537,000 or EUR 2.06 per diluted share against EUR

100,312,000 of EUR 1.76 per diluted share a year ago. Cash flow from operating

activities was EUR 90,301,000 against EUR 131,687,000 a year ago. Purchase

of property, plant, equipment and investment property was EUR 62,675,000

against EUR 21,664,000 a year ago. EBITDA was EUR 184.4 million against

EUR 167.0 million a year ago. Adj. operating profit was EUR 168.1 million

against EUR 146.8 million a year ago. Adj. net profit before income tax was

EUR 146.0 million against EUR 118.6 million a year ago. Adj. net profit was

EUR 128.3 million or EUR 2.25 per diluted share against EUR 101.7 million or

EUR 1.78 per diluted share a year ago. For 2011, the company expects its sales

to grow by 5-10% in local currencies and its operating margins to improve from

the 2010 level. Company’s long-term targets are to achieve local-currency sales

growth of some 10% a year and to reach an operating margin of 15%. The

company’s board of directors will propose to the AGM a dividend of EUR 1.50

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ORIFLAME

per share compared with EUR 1.25 for previous year, which corresponds to 67%

of net profit (adjusted for restructuring costs and impairment Iran). The total

amount correspondents to EUR 85.5 million. Following a decision at the AGM

in May, the dividend will be paid on or about May 27, 2011.

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 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

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ORIFLAME

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.

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ORIFLAME

Important locations and subsidiaries – A list and contact details of key

locations and subsidiaries of the company.

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.

Lipstick:

Cleopatra, Egypt’s most famous pharaoh, used crushed carmine beetles to

stain her lips a vibrant shade of red.

Lipstick gained popularity in the 16th century thanks to the English Queen

Elizabeth I and the ladies of her court, who coloured their lips with a

blend of beeswax and red mercuric sulphide.

The first push-up lipstick went on the market in 1915.

The average woman consumes about 4 to 6 pounds of lipstick during a

lifetime by licking her lips. Now you know why you need to re-apply it

after eating!

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ORIFLAME

During the Islamic Golden Age, the Arab Andalusian physician and

chemist Abu al-Qasim al-Zahrawi (Abulcasis) invented solid lipstick,

which consisted of perfume and other ingredients pressed in moulds. He

described the process in his text, in his encyclopaedia of medicine and

surgery, the Al-Tasrif.

In 1770, the British Parliament passed a law that said a woman wearing

lipstick could be tried for witchcraft.

Max Factor, make-up artist to the stars, invented lip-gloss in 1930.

Lipstick’s popularity grew during the Second World War thanks to the

movie industry and applying make-up became commonplace for women.

In 1950, American chemist Hazel Bishop developed the world’s first

kissable non-smear, long-lasting lipstick.

New product lipstick:

Introducing the new limited edition triple core lipstick a special version of

the world’s first triple core lipstick fusing caring balm, passionate colour and

dramatic gloss into one. The result is lips that are softer, more beautiful and

more impactful than ever before. With avocoda, jojoba oil, chamomile and

vitamin E- now in lovable limited edition packaging in five delightful new

shades and featuring a special edition heart-shaped core.

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ORIFLAME

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.

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ORIFLAME

Colour Cosmetics:

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:

Very Me

Very me 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!

Oriflame Beauty

Oriflame Beauty stands for cosmetics expertise. Here we combine

advanced formulations with on-trend products and professional make-up advice.

The best of nature meets the wisdom of science in high performance make-up –

for modern women with a stylish, urban edge. Our goal: to help you achieve

your unique beauty potential.

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ORIFLAME

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.

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.

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ORIFLAME

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.

Women’s Fragrances

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. 

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.

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ORIFLAME

Limited Life

Our Limited Life fragrances are only available for a short time as

exclusive offers, collector’s editions or seasonal products. Don’t miss out on the

great selection of Limited Life fragrances.

Oriflame Eye Makeup:

Oriflame beauty eye makeup brings emphasis and expression to the eyes.

Whether you like experimenting with the latest fashion shades or prefer the

classical look, you will find all you need in Oriflame comprehensive range of

eye makeup.

Eye shadow:

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ORIFLAME

Oriflame beauty eye shadow duo are high coverage eye shadow duos that

give you perfectly matching make up can be applied wet for long lasting intense

colour or try for a silky finish the texture is smooth and very velvety smooth and

they blend perfectly to give you a professional look contains light- reflect

mineral mica for added shimmer.

Mascara:

Oriflame beauty power curl mascara:

Oriflame beauty power curl mascara has a revolutionary brush that lifts

lashes from the root for lasting curl. The intensified colour pigments in this

mascara give dramatic definition. Microspheres help to provide a clump- free

finish to your eye lashes, whilst soft emollients help to keep lashes continued

and flexible.

Giordani Gold VIP Volume Mascara:

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ORIFLAME

Giordani Gold VIP Volume Mascara helps you to create voluptuous

unforgettable lashes in one stroke of this delightfully rich volumising mascara.

This supremely smooth Oriflame formula, enriched with pro vitamin B5,

conditions your lashes whilst providing a thick layer of the finest colour for

dramatically glamorous lashes.

Oriflame Beauty Wonder Lash Mascara:

Superb Lashes! Beautiful Lashes!! You can create high impact lashes with

Oriflame’s Revolutionary high definition 3D applicator. The applicator delivers

lift, length and amazing fullness. The high definition 3D applicator of wonder

lash mascara separates along the eye and the lash leaving no clumps behind.

This formulation is ultra pigmented with carnauba milk for extra conditioning.

Oriflame Beauty Power shine Lip Gloss:

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ORIFLAME

Super power shine gloss with unique applicator for precise and mess-free

application. With advanced pearlescent pigments that deliver a sparkling

and ultra-gloss finish. 5 ml.

Lip perfection:

Sharpnenable lip liner that defines and enhances natural shape of lip.

Available in six creamy shades.1g

Giordani gold lip pencil

Draw your way to luscious lips. Blend with brush for a seamless look, or

use with lip colour for a more precise fill. Available in 3 sumptuous shades. 1.2

g

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ORIFLAME

Concealer:

Luxurious luminizer creates subtle highlights and healthy radiance

anywhere, on face or body. Solid formation for added comfort and ease of

application. Nourishing emollients keep skin soft and smooth while glowing.

7.5g

Foundation:

Luminous mineral foundation with revitalizing sea minerals, for a brighter

complexion when you wear it and when you take it off. 30 ml.

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ORIFLAME

Eye liner:

Turn up the heat with double the colouring one pencil for the hottest looks.

Perfect for lining your inner lash line. Five new colour combos for ultra

dazzle.1.83g

Oriflame Beauty Nail Polish:

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ORIFLAME

Strength and beauty go hand in hand in this pearlescent bronze polish.

Innovative brush technology delivers intense colour in one coat. Ceramide

complex helps strengthen nail structure, while ceramic particles help provide

glossy finish. 7 ml.

Oriflame Beauty Nail Polish Remover :

This gentle nail polish remover removes nail polish quickly. Acetone-free with

delicate vanilla scent. 0 ml.

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.

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ORIFLAME

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 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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ORIFLAME

Data analysis and Interpretation:

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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ORIFLAME

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 years30-35 yearsAbove 35 years

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ORIFLAME

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 instructionBy your own wishOn friend’s advice

Table 3.4

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ORIFLAME

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

Table 3.5

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ORIFLAME

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

GoodBetterBad

Table 3.6

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ORIFLAME

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 stickNail polishFace care

Table 3.7

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ORIFLAME

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

LakmeOriflameAmway

Table 3.8

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ORIFLAME

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 years2-4 yearsAbove 4years

Table 3.9

Usual purchase of product

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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

MascaraEye linerOthers

Table 3.10

Notice TFM% in the product

Particulars No. of respondents Percentage

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ORIFLAME

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

YesNo

Table 3.11

Customer care service

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ORIFLAME

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

ExcellentSatisfactoryUn satisfactory

Table3.12

Category of people

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ORIFLAME

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 classMiddle classLow classAll of the above

Table 3.13

Display of product in show room

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ORIFLAME

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

SatisfiedExcellentUn satisfied

Table 3.14

Usage of child products

Particulars No. of respondents Percentage

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ORIFLAME

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

yesNo

Table 3.15

Benefit in dealership

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ORIFLAME

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 3.15

YesNo

Findings, Suggestion and

Conclusion:

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ORIFLAME

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 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.

The study is understood that most of the respondents

notice the TFM% in Oriflame Product.

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ORIFLAME

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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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.

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