Direct Marketing Company: Oriflame - Case Study Example

Marketing Report Table of Contents Introduction 3 Discussion 3 Evolution 5 Global and International Retailing Environment 5 Sustainability and Ethical Concerns 7 Technology and Retailing Developments 9 Suggestions And Recommendations 10 10 Conclusion 12 12 References 13 Introduction Marketing is a procedure of strong networking and communication. Through proper communication and marketing process, products and services are delivered through the buyers to the customer as per their requirement. Marketing is a practice, which helps in evaluating customer behaviour and assists in targeting customer for better effectiveness. Customer behaviour and customer satisfaction are one of important factor in marketing. There are different types of marketing, which are implemented by the business organization. Direct marketing is one form of marketing that is used by several organizations. Through direct marketing, non-profit organizations and other businesses have been able to directly connect with the end customers (The Hindu Business Line, 2014). This report discusses about the direct marketing. In direct marketing company mainly, focuses on the customer preferences. In this regard, Oriflame Cosmetics S.A. is the best example of direct marketing. Oriflame Cosmetics is a well-known brand from Sweden. It is an international beauty product company, which have 3.6 million independent consultants. For this study, Oriflame Cosmetics can be regarded as one of the suitable examples to evaluate the impression of globalization on the marketing approaches of a company. B122’s theme is a known format, which is used for describing retailer reports, which will be considered in this study. Discussion In 1967, Oriflame Cosmetics started its journey. Oriflame Cosmetics is the first beauty Product Company that marketed its products directly to the customers (Oriflame, n.d.). Oriflame Cosmetics S.A. is known for its strong networks and direct marketing. Oriflame Cosmetics offer personal body care products, beauty products and accessories as well as nutritional products. Oriflame Cosmetics implements multi-level marketing system for its distributors as well as for customers. The company has a million customers in across 60 countries worldwide, with the use of direct selling (Oriflame, n.d.). In the beginning, Oriflame Cosmetics used network marketing for reaching to the as customers. Contextually, direct marketing by Oriflame have helped in promoting its product to the customers in a unique manner. However, network marketing allows very little capital and provides high-end technology services to the buyers as well as consumers. Oriflame professional can work from his/her home and target the customers. It is evident that Oriflame has become a global brand in a short time span. Oriflame implements certain exceptional marketing concept, which makes the Oriflame Cosmetics different from other competitors. The recruitment process of the company is simple and requires experts with high skills of marketing. Thus, it can be stated that any individual who is interested in Oriflame direct marketing can easily join the company as a professional consultant. Oriflame Cosmetics have quality products at reasonable prices, which help in creating a competitive edge for companies. Oriflame Cosmetics have attractive catalogues with human touch, which makes it attractive and unique from other (Chela, 2012). Moreover, Oriflame Cosmetics have implemented face-to-face marketing, which makes it different from other retailers. With regard, to the products of Oriflame, it can be stated that it uses natural ingredients in its all products for enhanced quality. Whenever, a new professional consultant joins into Oriflame he/she gets discounts and offers from the company. This is one of the marketing strategies used by the company to increase its sales. Additionally, Oriflame Cosmetics provides attractive discounts as well as gifts to its new customers along with its old customers, to retain both forms of customer and increase its customer base. Oriflame Cosmetics consultant as a process of marketing and increasing customer base can individually start their own network with its chain of customers. The marketing concept used by Oriflame is more like a chain process. In this context, it is worth mentioning that Oriflame has its five production divisions in Sweden, China, Russia, India and Poland for greater effectiveness. In order to encore the quality of the product, more than 100 scientists have been working in research and development unit of Oriflame. Oriflame Cosmetics provides various offers and discounts by targeting customer to increase its market (Oriflame, 2013). Evolution Undoubtedly, globalization has changed the entire scenario of marketing today. Retail industries are marketing its product through wide functions in the market. Various organizations are coming up with their own chain of retail stores throughout the world. Oriflame Cosmetics are one of the successful retailers in the market with huge customer base. Oriflame Cosmetics have been affected by various factors, among which, a few have been described below. Global and International Retailing Environment Global and international retailing environment have changed the scenario marketing. New growth in the global economy increases the chance to experiment new ideas in the current environment. Retailers are now resizing their marketplaces according to the customers need. World’s largest growing markets mainly BRIC nations such as Brazil, Russia, India and China are creating new benchmarks for new entrants (Deloitte, n.d.). Consumers are now spending more due to the modern retailing formats. Contextually, it is observed that customers are now going for branded goods and services. Therefore, consumers as well as customers are spending their money for exclusive jewellery and beauty products. Oriflame Cosmetics are one the beauty product company, for which the consumers generously spend their money because of its high quality. Oriflame Cosmetics is a well-known brand for individuals in many countries; it is a global brand that has often been appraised for strengthening the global economy. In the year 2012, Oriflame Cosmetics presented its sales trends in sustainability for the success of the business. They implemented business models, which assisted them to gain profit even during recession. It is evident that the recession had badly affected the global economy. Presently, service industries are shifting towards fast growing e-commerce format. This changing format of e commerce creates a challenge for Oriflame (Oriflame Cosmetics S.A., 2012). However, direct marketing is well suited with online marketing in the modern day era. Online marketing has created a new endeavour for Oriflame. In this regard, most of the retailer marketed its product through online. Furthermore, internet plays an important part in retailing as it reaches a wide range of customers throughout the globe. With the advent of globalization and internet facility consumers in the present scenario, shop more online than offline. The internet allows the consumers to shop products directly from producers as per their choice. Multi-channel shopping is common nowadays. Online marketing and multi-level shopping has enhanced the market share of Oriflame. Oriflame has a new reach in the market due to its advanced marketing techniques. Therefore, it can be stated that Oriflame stands strong in the global environment. The main objective and goal of Oriflame Company is to sustain in the market. The global economy does not affect the Oriflame production directly (Oriflame Cosmetics S.A., 2012). Oriflame has a strong supply chain, which effectively performs in countries. Oriflame Cosmetics have its own chain of prospective customers, who completely believes and trust the brand. In other words, Oriflame have loyal customers due to its promotional and marketing activities. Oriflame maintains the trust of their reliable customers and provides quality services. The products of Oriflame are purchased by high-income groups as well as middle-income groups because of its quality and marketing. Thus, it can be ascertained that changing international environment affects the market as well as alters consumer behaviour towards the branded products (Deloitte, n.d.). Sustainability and Ethical Concerns Whenever, a company launches its new product, one of the priorities of the company is to sustain the market for long time. Ethical concern is another important factor of any company to sustain in the long run (Jennings, 2014). Ethical concerns of the company include rules and regulations and the policies. Sustainability and ethical concern both are equally important for the success of a company. With regards to ethics, company standards, norms of conduct, principles are described for increasing the effectiveness of a company and its market share. Ethics is a crucial factor, which makes the company to sustain in the market with effectiveness. In this context, sustainability and ethical concerns are interrelated. Oriflame is the best example when describing sustainability and ethical concerns. Oriflame has sustained its market since last few years due to its ethics and sustainability. By maintaining ethics and quality services Oriflame has been able to make new customers as well as retained the old customers. As a part of the strategy, Oriflame updated its service patterns on a constant basis to sustain in the market. Oriflame Cosmetics have five production units as stated, mostly situated in countries where business legislature is stable. One the reason of sustainability of Oriflame Cosmetics is that they make its production unit in stable business legislature zones (Oriflame, 2014). Oriflame provides its consumers different types of discounts, even with the purchase of a single product. According to the policies, new recruitments made by the consultant get gifted from the company and different discounts on various products of the company. This is a chain, which is continued in the marketing process of Oriflame (Oriflame, 2014). Contextually, company production, behaviour with the consumers and communities all come under ethics. Oriflame has never compromised with its standard of production. Every year Oriflame supplies more than 600 million products throughout the world. This shows how it maintains sustainability and serves the end customers more effectively (Oriflame Cosmetics S.A., 2014). Oriflame Company coordinates its work in an easy and friendly manner that makes the company more sustainable. It is evident that after the launch of Oriflame cosmetics, many of business professional thought Oriflame would not be able to survive in the market. However, Oriflame Cosmetics proved them wrong and until date is creating milestone for other competitors. Direct marketing or multi-level marketing is not an easy task to perform. It is a different form of communication and is different from traditional marketing process. In direct marketing the supply chain is related to the supplier and consumer only. In this regard, Oriflame have a strong supply process where the goods are delivered on time on order to maintain its stability and market with great ethics (Oriflame Cosmetics S.A., 2014; 2Oriflame, 2014). Technology and Retailing Developments Direct marketing and multi-level marketing give a different dimension to the retail marketing. Technology has made the marketing process easier for the companies as well as for the consumers. E-commerce is the form of technological innovation. Through technological innovations retailers are more connected to their end users. Technology developments help the companies to experiment with the existing products. Oriflame Cosmetics Company tried to invent new products to attract more customers and increase its product range. The company also experimented with its existed products to have a better competitive edge. Oriflame Company have invested and implemented for stem cell technology to increase its effectiveness. In order to provide its customers with new product on anti-ageing, Oriflame Company cultivated its own stem cell plant. “Stem cell technology” is an ingredient, which boosts and rejuvenates ageing skin. This was a unique strategy taken by Oriflame (Business Wire, 2013). Oriflame Cosmetics have made its product with a natural indigent, with the help of technology without using harmful chemicals (Direct Selling News, 2014). Multi-level marketing technology is an important factor, for the enhancement of the business at large. Rapid development in technology is changing the total scenario of retail industry. Internet and social networking sites, made the consumer more aware of the recent trends. Oriflame provides information to its customers regarding their products through online sites. Moreover, the customer consumer can order the products through the website as per the requirement. Online comments and chat broads made available to the consumers creates more awareness about products and services of the company. Retailers try to satisfy their customers to occupy large market share and provide quality products. In this regard, online shopping is an emerging trend, which is used to attract the present generation who are more technology savvy. Retailer companies are changing their pattern of delivering services to the customers as per the need and growing trend of customers to a considerable extent. Another technological development leads to the use of social media. It is a two-way technology medium, which allows consumers to take part in the brand activities and is mainly used by the retailers for profit and market expansion. This two-way brand activity gives a chance to the consumers to provide their feedback regarding the products and their preferences in future. Oriflame Cosmetics have improved its working style, with the help of this technological advancement. Moreover, it publishes the product catalogue every month in the company website for the consumers to place their order as per their preferences Oriflame have created the website, with a forum wherein customers will be given an opportunity to provide their feedback regarding products and accessories of Oriflame. In this regard, it is worth mentioning that reviews are always useful for the success of a business. For Oriflame, customer reviews and feedback is equally important for its sustainability in the future. As per marketing strategy of Oriflame, any individual can join as a member or as a consultant with this brand through the official website. Through technological innovations, it has become possible for new individuals to access the website of Oriflame and get adequate knowledge regarding the current products and accessories. Suggestions And Recommendations Oriflame Cosmetics Company is a well-recognized brand. The global and international retailing environment is currently recovering from economy fall. Oriflame also faced some economic pitfall during the recession. However, Oriflame Company managed to survive the situation and sustain in the market during the economic turmoil. The sales figure of the company turned negative, still it managed to serve the customers and maintain its ethics. Due to economic turmoil, Oriflame did not change its rules and regulations. It maintained its product standards as well as price of its entire range of product. Technology and retailing development also improved its products as well as its services. Thus, through these themes Oriflame Cosmetics relates to the current environment of retailing industry. In the future Oriflame might face competition from its competitors. Global economic changes might be another issue for Oriflame to succeed. It is noted that consumer always go for low price products. If another cosmetics company launch the same range of products in low price and provides same discounts then it is hard for Oriflame to sustain in the market for long. Recently many new cosmetics company come forward with same range of products but it did not market its product through direct marketing. With the technological innovation they might access to direct marketing and reach the customer more quickly. Oriflame Cosmetics have used strong ethical standards, which take it to another level. Oriflame company ethical policies and its suitability helps to perform in the market for future prospects. Its quality product, service deliverance and multi-level marketing will act as plus point in the retail industry. Communication with customers will create a friendly atmosphere for the success of the company. Discounts on new product range and other accessories will provide new dimension for consumer. All these recommendation will assist Oriflame Cosmetics for long time success. Conclusion From the above discussion, it can be comprehended that Oriflame Cosmetics Company have created a new style of marketing. It provides a new dimension to the multi-level marketing process. Cosmetics product can create high level of success in the current economy situation. Oriflame have proved that with high ethical values and standard any business can stand in the market in every possible situation. In the present day context, Oriflame have only five product units. Oriflame has now expanded its range of products and it has come with new home product items. Besides beauty, products Oriflame has slowly expanded its horizon and come across with different types of products like home, kitchen, health and many more. Time to time up gradation of products and services as per the preferences of the customer has led to the long-term sustainability of Oriflame. Modern marketing approaches principally aims to promote innovation and organisational competitiveness, according to which, the company can create customer preferences and maintain its sustainability in the long-term. References Business Wire, 2013. Oriflame Invests In Pioneering Plant Stem Cell Technology. News. [Online] Available at: http://www.businesswire.com/news/home/20131021005090/en/Oriflame-Invests-Pioneering-Plant-Stem-Cell-Technology#.VAxL7fmSxe8 [Accessed September 07, 2014]. Chela, C., 2012. The Oriflame Success Plan. Slideshare. [Online] Available at: http://www.slideshare.net/Chelagat/the-Oriflame-success-plan-13976689[Accessed September 07, 2014]. Direct Selling News, 2014. Oriflame’s Innovative Plant Stem Cell Technology. World News. [Online] Available at: http://directsellingnews.com/index.php/view/Oriflames_innovative_plant_stem_cell_technology#.VAxMCPmSxe8 [Accessed September 07, 2014]. Deloitte, No Date. Retail Global Expansion the Journey Starts At Home. 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