Saturday, May 18, 2019

Oriflame Direct Marketing Strategy Essay

Oriflame is a cosmetics caller-up, founded in Sweden in the year of 1967 by two br opposites Jonas af Jochnick and Robert af Jochnick. The companys main harvest-tides ar personal care, accessories and nutritional products with over approximately 1000 cosmetics products. The products are priced in high range and promise higher value to clients through a more customized and personalized approach for product and service offerings, distribution processes tailored to meet the needs of customers, and the opportunity to build customer loyalty. The logo of the company Oriflame Sweden gives a feel of expensive Swedish cosmetics.ORIFLAMES MARKETING STRATEGYThe merchandising dodging choose by Oriflame is convey Marketing or Network Marketing. It is one of the largest companies to sell through direct marketing through an independent sales force of over 3.6 million sales consultants in more than 60 countries worldwide with annual sales exceeding some 1.5 billion. Network Marketing or Multi -Level Marketing (MLM) is a strategy which al confuseds the parent multi-level company to market and distribute their products or/and service, directly to the consumer by direct merchandising in a non-permanent retail location and grow the network through relationship referrals. These sales are done through independent, unsalaried Sales Consultants (full time or part time) who represent the company and consume commission based on the volume of sales.The sales consultants often build their own organisation by recruiting a down-line of other independent distributors, who perform the same job and as a result the complete organisation expands. As a consultant they earn commission not only based on their own sales, but also on the entire sales of the down-line group. This strategy has a very low distribution cost and also offers a leading business opportunity to people. This unique business sentiment Make Money Today and Fulfil Your Dreams Tomorrow goes with the brand promise of the company Your Dreams, Our InspirationOriflame implements this strategy with frequent regular enumerations along with frequent, short-term price promotions and cross-sell campaigns. The details of the strategy are as follows 1) item-by-item sales consultants team who directly get in touch with end consumers with hard copy of catalogue 2) Marketing through owners of beauty parlours to increase customer reach 3) Face-to-face interaction with live demos about(predicate) usage and benefits of the products 4) Samples at low prices or free samples with some purchase to try the product graduation exercise and then purchase as buying expensive cosmetic products is a high involvement decision. 5) Direct mails to consumers which includes catalogues, offers 6) Online catalogue and offer details on company website.A typical online catalogue is as infra7) Promoting existing consultants to add more consultants and grow the sales network. This also helps Oriflame in increasing loyal customer ba se as consultants buy Oriflame products for their personal use and for their family. The process of becoming an Oriflame Consultant is an easy process. It includes adjacent steps8) Oriflame also promotes its consultants to increase the sales by giving different incentives like international travel, gifts and other promotional tactics. For example, this years major attraction is Gold Conference in London in 20159) Offline and online makeup tutorials and guidance about health and health & beauty care

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