Oriflame Direct Marketing Strategy Essay

Oriflame is a cosmetics company. founded in Sweden in the twelvemonth of 1967 by two brothers Jonas af Jochnick and Robert af Jochnick. The company’s chief merchandises are personal attention. accoutrements and nutritionary merchandises with over about 1000 cosmetics merchandises. The merchandises are priced in higher scope and promise higher value to clients through a more customized and individualized attack for merchandise and service offerings. distribution processes tailored to run into the demands of clients. and the chance to construct client trueness. The logo of the company ‘Oriflame Sweden’ gives a feel of expensive Swedish cosmetics.

ORIFLAME’S MARKETING STRATEGY

The selling scheme adopted by Oriflame is Direct Marketing or Network Marketing. It is one of the largest companies to sell through direct selling through an independent gross revenues force of over 3. 6 million gross revenues advisers in more than 60 states worldwide with one-year gross revenues transcending some €1. 5 billion. Network Marketing or Multi-Level Marketing ( MLM ) is a scheme which allows the parent multi-level company to market and administer their merchandises or/and service. straight to the consumer by direct merchandising in a non-permanent retail location and turn the web through relationship referrals. These gross revenues are done through independent. uncompensated Gross saless Advisers ( full clip or portion clip ) who represent the company and do committee based on the volume of gross revenues.

The gross revenues advisers frequently build their ain administration by enrolling a down-line of other independent distributers. who perform the same occupation ; and as a consequence the full administration expands. As a adviser they earn committee non merely based on their ain gross revenues. but besides on the full gross revenues of the down-line group. This scheme has a really low distribution cost and besides offers a taking concern chance to people. This alone concern construct – ‘Make Money Today and Fulfil Your Dreams Tomorrow’ goes with the trade name promise of the company ‘Your Dreams. Our Inspiration’

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Oriflame implements this scheme with frequent regular catalogues along with frequent. short-run monetary value publicities and cross-sell runs. The inside informations of the scheme are as follows 1 ) Independent gross revenues advisers squad who straight get in touch with end consumers with difficult transcript of catalogue 2 ) Selling through proprietors of beauty parlors to increase client make 3 ) Face-to-face interaction with unrecorded demos about use and benefits of the merchandises 4 ) Samples at low monetary values or free samples with some purchase to seek the merchandise foremost and so purchase as purchasing expensive decorative merchandises is a high engagement determination. 5 ) Direct mails to consumers which includes catalogues. offers 6 ) Online catalogue and offer inside informations on company web site.

A typical online catalogue is as below

7 ) Promoting bing advisers to add more advisers and turn the gross revenues web. This besides helps Oriflame in increasing loyal client base as advisers buy Oriflame merchandises for their personal usage and for their household. The procedure of going an Oriflame Consultant is an easy procedure. It includes undermentioned stairss

8 ) Oriflame besides promotes its advisers to increase the gross revenues by giving different inducements like international travel. gifts and other promotional tactics. For illustration. this year’s major attractive force is Gold Conference in London in 2015

9 ) Offline and on-line make-up tutorials and counsel about wellness and wellness & A ; beauty attention