Case Study – Oriflame

Oriflame Cosmetics is a direct selling company that deals with cosmetics, skin care, and hair care products. The company was first established in the year 1967 in Sweden and using a multi-level marketing model started distributing their products all across the world. The prime categories in which Oriflame sells products include skin care, makeup, fragrance, bath &body, hair and accessories for men, women, and children.

The Customers today are increasingly conscious of the ingredients in every product they use. Oriflame uses natural ingredients in all their products and their products are also not tested on human beings on animals for side effects. Both these increase the appeal of the brand amongst customers. Oriflame uses a three-pronged strategy to sell its products namely direct selling, catalog marketing, and online selling. This not just helps them gain access to more customers but also gives their clients multiple options to choose from based on their convenience in each situation. Quite unlike competitors like Amway, Oriflame has never relied on magazines or television advertisements. In fact, they primarily use word of mouth advertisements and testimonials from customers which are featured in the catalogs, brochures, and website for advertising which in turn cuts down the promotional budgets significantly.

Oriflame through cutting down the usage of paper by featuring products online and also streamlining their logistics network has displayed the increased commitment to sustainability a growing concern in today’s world.

In a bid to get in more sales representatives, Oriflame has often been alleged to inflate the expectations of their representatives in terms of commissions and perks. However, once they become part of the network, these representatives realize that their commissions are commensurate with the volume of sales they are able to generate and they feel disillusioned.

Currently, Oriflame products can also be sourced from their website. The Company is fulfilling the dreams of people across the world reaches out to its customers through 3.6 million independent sales representatives.

Questions:

• What according to you is the sales strategy used by Oriflame has helped them to capture the market?
• What are the different methods used by Oriflame to increase their sales volume?
• What is the lacking of Oriflame?
• How can the company increase their sales volume according to you?

  Oriflame Cosmetics is a direct selling company that deals with cosmetics, skin care, and hair care products. The company was first established in the year 1967 in Sweden and using a multi-level marketing model started distributing their products all across the world. The prime categories in which Oriflame sells products include skin care, makeup, fragrance, bath &body, hair and accessories for men, women, and children.

  The Customers today are increasingly conscious of the ingredients in every product they use. Oriflame uses natural ingredients in all their products and their products are also not tested on human beings on animals for side effects. Both these increase the appeal of the brand amongst customers. Oriflame uses a three-pronged strategy to sell its products namely direct selling, catalog marketing, and online selling. This not just helps them gain access to more customers but also gives their clients multiple options to choose from based on their convenience in each situation. Quite unlike competitors like Amway, Oriflame has never relied on magazines or television advertisements. In fact, they primarily use word of mouth advertisements and testimonials from customers which are featured in the catalogs, brochures, and website for advertising which in turn cuts down the promotional budgets significantly.

  Oriflame through cutting down the usage of paper by featuring products online and also streamlining their logistics network has displayed the increased commitment to sustainability a growing concern in today’s world.

  In a bid to get in more sales representatives, Oriflame has often been alleged to inflate the expectations of their representatives in terms of commissions and perks. However, once they become part of the network, these representatives realize that their commissions are commensurate with the volume of sales they are able to generate and they feel disillusioned.

  Currently, Oriflame products can also be sourced from their website. The Company is fulfilling the dreams of people across the world reaches out to its customers through 3.6 million independent sales representatives.

  Questions:

  • What according to you is the sales strategy used by Oriflame has helped them to capture the market?
  • What are the different methods used by Oriflame to increase their sales volume?
  • What is the lacking of Oriflame?
  • How can the company increase their sales volume according to you?