this presentation is just an illustration of the marketing management models

2. PRESENTED BY:
oANUM IRFAN
oSYEDA AREEBA TARIQ
oHASSAN AZIZ
oNASHMIA NAJEEB
oFAHAD UR REHMAN
“CASESTUDY”
SUBJECT:
MARKETING MANAGEMENT

4. OVERVIEW
• Founded in Sweden in 1967 by Robert af Jochnick and
Jonas af Jochnick
• Use Direct Selling
• 1.3 billion Euros in annual sales
• approximately 3.1 million Consultants
• 7 500 employees
• 900 products annually
• Global R&D centre with more than 100 scientists
• 5 own production units Operations in 61 countries of
which 13 franchisees

5. CONT…
• No. 1 position in Europe and on 2nd all over the world.
• Considered as Avon of Europe due to success.
• It is also listed in Nasdaq OMX Exchange since 2004.
• Came to Pakistan in 2009 with headquarters in Lahore.
• Growing market in Pakistan.
• Concept of Network marketing uncommon in Pakistan.
• Word of mouth publicity.

6. MARKETING STRATEGY
SEGMENTATION
GEOGRAPHIC
World Region More than 60 countries
Density Sub urban to Urban
DEMOGRAPHIC
Age 15 to 50
Gender Male, Female
Income Strivers and Above
PSYCHOGRAPHIC
Social Class Middle to Upper
Lifestyle Achievers
BEHAVIORAL
Benefit Quality
Attitude Positive
User Type: skin care, makeup, fragrance, body care and hair use

7. TARGETTING
• Age group of 15 to 50 users who want to look
good and fulfill their dreams
• Young students
• Professionals
• Adults

8. DIFFERENTIATION
• Network Marketing (Direct Channel)
• Quality
• Natural herbs

9. POSITIONING
• European products from natural herbs at
affordable prices
• A complete fashionable cosmetic brand
• Premium Quality

10. MARKETING MIX

11. PRODUCT
ORIFMLAME has a wide variety of product lines and product
ranges which are:
• Skin care: Nourishing hand cream, optimal white day fluids
SPF 15, Diamonds cellular anti ageing cream, Optimal nutri
calm night creams, optimal nutri calm day cream.
• Make up: Renewing hand scrub, Lip spa therapy, Matte control
pressed powder light and medium, Matte control foundation,
Oriflame beauty studio artist (lipsticks), kohl pencil (eye pencil)
• Fragrances: Ascendant deodorant spray,sun eau de toilette,
Mid-night pearl eau de perfume,
• personal care: Oriflame hippo soap, tear-free hair and body
wash, fairness soap, Hair X care protect shampoo.
• Accessories: Oriflame beauty mirror, Hair X cushion brush,
Foot file, Anti cellulite massage.

12. PRICE
• ORIFLAME does premium pricing for its few products
which are for the upper class.
• There are products at various prices which is
affordable by students and professionals.
• Whereas, they have a complete range of products for
middle class easily affordable.

13. PLACE
• Oriflame does direct selling. The products of oriflame
are available on the oriflame shops or outlets only.
There are no retail outlets of oriflame. Like in Pakistan
oriflame shop is located 14-A Ground Floor Ali Block
New Garden Town Lahore and BC-11 Schon Circle
Block-9 Karachi
• Oriflame even sells its products online. They sell either
through Facebook or through its official site
www.oriflame.com.
• Oriflame even appoints its customers to sell its
products that is through it scheme "Make Money Today
and Fulfill Your Dreams Tomorrow."

14. PROMOTION
ORIFLAME has done many promotional activities to promote
the company and its products:
• ORIFLAME has never done any promotion through media.
All the promotion of ORIFLAME is done by “ WORD OF
MOUTH” promotion. They have not created any adds for
the products . But in 3 to 4 months they make their new
catalogues in which they tell the customers how they have
upgraded their products and if any new flavors or a new
product itself has been created.
• One promotional strategy is that at Oriflame you have the
opportunity to become a Consultant and, on the same day,
show the catalogue to friends, neighbors and colleagues,
take an order and earn money immediately. Tomorrow you
can invite people you know to also become Consultants,
start building your team and enjoy unlimited earnings.

15. CONT…
• Then oriflame even sells its products in deals and give
discounts like around 20% discounts are given. And all the
hair, skin products are available in those deals together. This
was named as Oriflame bazaar as there were several deals
for the customers.
• Then this December oriflame will visit the whole Asia to
promote its products more, to increase sales and to bring
many people together. A historic event is about to take
place and you will get to experience it first-hand! This
December get ready for the biggest prospecting tour in the
history of Oriflame Asia coming to your neighborhood. This
extraordinary tour aims to changing the lives of many
people through Oriflame’s “Make Money Today and Fulfill
Your Dreams Tomorrow” business opportunity. We will be
visiting 1,000 cities across Asia where you will get the
unique chance to participate and explore our Oriflame
Opportunity Meetings.

16. COMPETITION:
Mr. Saad the Area Sales Manager of Oriflame in
Pakistan said, “To be the market leader is difficult
within a pace of 3 years but I see the company in
growth face of the product life cycle.”
• ORIFLAME competitors are AVON, AMWAY,
Faberlic and others.
• AVON has always been the biggest competitor of
ORIFLAME.
• ORIFLAME has indirect competitors too- such as
LOREAL, MAYBELLINE, MADONNA.

17. SALES FORCE
• Oriflamme calls its consultants their BUSINESS
PARTNERS
• The consultants get 20% discount on every
product he/she buys and this way they keep
20% in their pockets by selling product to
others on actual price.
• If any target achieved they get pins which are
beautiful, attractive recognitions like some
badge.

18. EMPLOYEES
• Oriflame believes employees are an important
investment for success
• All employees regardless of gender, ethnic belonging,
nationality, age, sexual orientation, political or religious
affiliation or physical capacity should be evaluated
based on the same basic principles; performance,
experience and potential.
• The company offers competitive compensation and
benefits packages to attract and retain the very best
people and let them share in the success that they
build.

19. CONT’D
• some of the benefits they offer are
competitive salary, staff bonus schemes, on
job training and development opportunities,
insurances and healthcare (medical).

20. CSR
• To help them identify the right projects to
support, the majority of Oriflame markets are
working with NGO partners like;
• World Childhood Foundation
• SOS Children’s Villages
• Bethel
• Christian Children’s Fund Foundation
• The Foundation of Goodness

21. SALES
Regional sales 2007 2008 2009 2010 2011
Euro million
CIS & Baltics 613.1 759.1 725.0 861.0 826.1
Europe,
Middle East &
Africa (EMEA)
358.3 390.3 395.4 407.9 420.6
Latin America 49.1 58.5 62.5 84.1 87.3
Asia 62.2 82.4 112.9 143.6 146.0
Other 26.7 29.4 20.7 17.0 13.7
Group 1,109.4 1,319.7 1,316.6 1,513.6 1,493.8

22. PROFITS
Regional operating
profit (adj.)
2007 2008 2009 2010 2011
Euro million
CIS & Baltics 119.8 147.5 106.8 135.0 133.7
Europe, Middle East
& Africa (EMEA)
65.1 71.4 59.1 54.0 61.1
Latin America 4.4 5.2 1.3 3.0 4.6
Asia 2.3 3.3 9.1 10 10.1
Group overhead and
others
(36.2) (40.1) (29.5) (33.9) (45.5)
Group 155.4 187.3 146.8 168.1 164.1

23. CHALLENGES FACED BY THE
COMPANY
• Unavailability of few major products
mentioned on catalogue.
Mr. Saad said, “This would have increased
frustration among the consumers due to
which they might shift to other brands.”

24. CONT…
• Recruiting and retaining employees/sales
force.
“Attracting the sales force was not an easy task
but was more like selling an opportunity to
them. Still we are facing this problem but the
company is working its level best to recruit
sales force that are literate and provide them
attractive packages to retain them.”

25. CONT…
• Lack of awareness among the people in Pakistan
about the brand and its operations.
Mr. Saad the Area Sales Manager of Oriflame in
Pakistan said,
o “To be the market leader is difficult within a
pace of 3 years but I see the company in growth
face of the product life cycle.”
o “There is a need to create awareness rapidly. It’s
impossible over night but to achieve the aim to
be the market leader; people associated with
the company have to work day and night.”

26. QUESTIONS:
1. Other than the discounts and commission, what
should Oriflame do to attract and retain its sales
force?
2. Should the company invest in advertising campai
gns to increase awareness?
How important is advertising for a direct selling
company?
3. What should company do to increase the
availability of its products?
Should the company enlarge its product range w
ith non-cosmetic products to increase sales?

27. THANK YOU…. 