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ORIFLAME

Introduction and Design of the study


Cosmetics introduction:
Building on more than 40 years of skincare and cosmetics expertise and
combining the wisdom of nature with the best of science to deliver distinct
product brands - providing a wide portfolio affordable for the many people all
with:
Assured product performance at value for money.
High purity ingredients and strict manufacturing standards.
High ethical standards and stringent environmental policies.

History of cosmetics:
The ancient science of cosmetology is believed to have originated in
Egypt and India, but the earliest records of cosmetic substances and their
application dates back to circa 2500 and 1550 B.C, to the Indus valley
civilization. There is evidence of highly advanced ideas of self beautification
and a large array of various cosmetic usages both by men and women, in ancient
India. Many of these practices were subtly interwoven with the seasons and the
normal rituals of life. Significantly, the use of cosmetics was directed not only
towards developing an outwardly pleasant and attractive personality, but towards
achieving merit, longevity with good health and happiness. In this context, the
earliest reference of a beautician is from the great epic Mahabharata, where the
Pandavas were in exile incognito. Draupadi worked for the queen of Virta
(Northern district of India). She called herself Sairandhri (A female attendant in
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the women's sections of the palace). There is a reference of her carrying a


Prasdhana Petik (A vanity case containing substances to beautify, toiletries and
accessories to decorate).
The word cosmetics defined as Substances of diverse origin,
scientifically compounded and used to i) cleanse, ii) allay skin troubles, iii)
cover up imperfections and iv) beautify, is used in this paper in a wider sense to
include Oral hygiene as well.Different Leps (Masks) were recommended for
different seasons for body beautification. The ingredients used during the cold
seasons were quite different from those used in warm seasons.
In fact Ashtnga Hridaya (a 1500 year old book of Ayurveda) offers six
different formulations to be used for the six seasons of the year. Similarly special
cosmetic Tailams (Oils) and Ghritas (Clarified butter or ghee) were used for
facial beautification. Superfluous hair was considered to be a stigma and a large
number of depilatory agents were recommended to get rid of it. Special
ingredients were used for hair washes.
Many remedies have been indicated for hair growth, prevention of falling
hair and premature graying. Hair dyes, fragrant hair rinses and fumigants were
also in use. Fragrant bath powders and body deodorants also find frequent
mention. Oral hygiene in the form of care of teeth, mouth deodorants and
coloring of lips were daily chores to be religiously pursued. It appears that the
whole range of modern cosmetic usage was conceived by the ancient Indians
and was practiced with the help of natural resources then available.
Few cultures valued beauty and cosmetic products in ancient times as the
Egyptians did. The history of ancient cosmetics can also be traced back to the
culture of ancient Greece and make-up was also popular in the Roman Empire.
There is sufficient evidence to suggest that people from all these three cultures
used hair dyes for instance. These people used herbal concoctions with
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components like henna, sage and chamomile to darken their hair. It was only in
the renaissance period that blond hair became fashionable.
In other cultures like that of China, fingernail painting was popular in
ancient times. Ancient Chinese people used a mixture of gum Arabic, egg
whites, gelatin and beeswax to make the first forms of nail varnish and royalty
preferred to use metallic or bright colors of nail varnish at that time. People from
lower ranks were restricted to the use of paler nail varnish colors, and this trend
of discrimination using nail varnish was also visible in ancient Egypt.
Although cosmetic products have undergone many changes in modern
times, the basic concept of using cosmetics to enhance the features of good
health has not changed. For instance, blush-on is used to conceal pale present a
picture of rosy cheeks as opposed to pale skin and nail polish can be used to
conceal brittle or dry nails. The history of makeup cosmetics however is
tarnished by the ill-effects that were often experienced after applying many
ancient make-up products. This was because many such products were created
using dangerous components and also because cleansing lotions are not
anywhere to be found in the early history of cosmetics.
The history of the cosmetics industry includes very dark chapters in
European and Western countries from about six centuries back. Mixtures and
pastes were then used to whiten the face, a practice which remained popular till
over four hundred years later. The early mixtures that were used in Europe for
this purpose were so potent that they often led to paralysis, strokes or death. In
that era, another method that was employed to make the skin appear fairer was
to bleed oneself using leeches.

ORIFLAME

Up to the late nineteenth century, women in Western countries may have


secretly worn make-up made from mixtures of household products, as make-up
was then deemed the domain of film stars. Cosmetics were only openly put up
for sale in the early part of the twentieth century for the first time. Tanned or
darker skin tones became popular only as late as the early twentieth century. It
was in this era that tanning the skin became a popular fad.
The history of cosmetics in the 1930s and 1940s shows how the fashion or
trend with respect to lipstick colors was changed annually, getting darker and
closer to red every passing year. It was around this time that eyebrow shaping
also became popular. However, the true surge in make-up sales occurred at the
end of the Second World War when people were celebrating the return of their
loved ones.

Introducing Oriflame:
Oriflame is a cosmetics company that sells high-quality natural skin care
and cosmetics products through Home Beauty Demonstrations or Catalogues.
Direct sales allow customers to get advice and inspiration from people they
know and trust. Buying direct is reliable and convenient.
Being an Oriflame Sales Consultant means unlimited income and career
opportunities, personal development and a sense of belonging to a friendly
global community. Oriflame as a company is characterized by a can-do spirit, a
decentralized management and a young and entrepreneurial atmosphere.

ORIFLAME

Oriflame Cosmetics:

Oriflame Cosmetics is one of the worlds fastest-growing cosmetics


companies, selling high-quality natural skincare and cosmetics products through
an independent sales force outside the traditional retail environment. Oriflame
Cosmetics has a presence in 59 countries and is one of the market leaders in over
30 countries. A direct sales force of 2.2 million independent sales consultants
markets a complete range of high-quality skincare products, fragrances, and
cosmetics.

Marketing of oriflame:

Oriflame is one of the most rapidly growing direct selling beauty


companies. They currently operate in 61 countries although their offices are
distributed all around in the world in places like Chile, Switzerland, Czech
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Republic, Poland, Sweden, Russia and Thailand. This company has market
dominance in over 1/2 of these 61 countries they sell their products in. Sorry but
this MLM Program is not available in the United States.
It revolves around Europe, Latin America, Africa and Asia. Oriflame also
owns 5 of its own manufacturing facilities so this is no small company. I actually
found this company to review by accident in Wikipedia, although they have been
operating for a long time.
When you become an Oriflame Consulting you'll get direct access to lots
of support material that will assist you in getting your new business off the
ground. The company provides total support every step of the way with great
training, updated catalogues and the latest beauty trend information. You will
also have access to sales support tools so you can view your sales commissions,
your downline and things like that.
They also have an Oriflame University that will give you advanced
network marketing training and in-depth product information. Also every 3
weeks the company distributes their own newsletter that will tell you about new
internal product launches, local events and recognition of people in your area
that have made it to Director or higher. The company also offers an internal
support structure and will wire you into their entire network of Consultants who
educate, train and motivate each other.
Oriflame is a direct selling company who cuts out all the middlemen and
passes on this opportunity to Independent Distributors. The company saves a
bundle of money this way because they've shortened their distribution chain
which is reinvested right into the MLM Compensation Plan for its members.
After digging a little deeper into the Oriflame website I noticed that a
Tamilla Polezhaeva is their top distributor which they call a Sapphire President.
Everyone is this Network Marketing Company dream of achieving this level.
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Tamilla's motto is "The Sky is Not The Limit" which means of course there are
no limits to success within this company if you are willing to put in the work.
I was happy to read their statement on Social Responsibility. The
company maintains the highest product standards as well as clean factories.
Their social compliance program is under constant development and upgrades to
keep within the most stringent requirements of not only the law but ethical
responsibility to the community and its MLM Representatives. They also
support the World Childhood Foundation which supports and sponsors children
projects in the areas where they are active.
Although you won't be able to join this company if you live in the United
States, people from Latin America, Africa, South America and Asia have a great
opportunity here. Many times entrepreneurs who live in these areas are isolated
from a lot of popular Network Marketing Companies that are only available to
people from the United States. This company has a great deal of good
information on their website if you are interested.

Consumer behavior:

Consumer behavior

involves the psychological processes that

consumers go through in recognizing needs, finding ways to solve these needs,


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making purchase decisions (e.g., whether or not to purchase a product and, if so,
which brand and where), interpret information, make plans, and implement these
plans (e.g., by engaging in comparison shopping or actually purchasing a
product).

Attitudes:
Consumer attitudes are a composite of a consumers (1) beliefs about, (2)
feelings about, (3) and behavioral intentions toward some objectwithin the
context of marketing, usually a brand, product category, or retail store. These
components are viewed together since they are highly interdependent and
together represent forces that influence how the consumer will react to the
object.

Beliefs:
The first component is beliefs. A consumer may hold both positive
beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs
(e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be
neutral (coffee is black), and some may be differ in valance depending on the
person or the situation (e.g., coffee is hot and stimulates--good on a cold
morning, but not well on a hot summer evening when one wants to sleep). Note
also that the beliefs that consumers hold need not be accurate (e.g., that pork
contains little fat), and some beliefs may, upon closer examination, be
contradictory.
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Affect:
Consumers also hold certain feelings toward brands or other objects.
Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated
when thinking about a hamburger because of the tremendous amount of fat it
contains), but there may also be feelings which are relatively independent of
beliefs. For example, an extreme environmentalist may believe that cutting
down trees is morally wrong, but may have positive affect toward Christmas
trees because he or she unconsciously associates these trees with the experience
that he or she had at Christmas as a child.

Behavioral intention:
The behavioral intention is what the consumer plans to do with respect to
the object (e.g., buy or not buy the brand). As with affect, this is sometimes a
logical consequence of beliefs (or affect), but may sometimes reflect other
circumstances--e.g., although a consumer does not really like a restaurant, he or
she will go there because it is a hangout for his or her friends.
Changing attitudes is generally very difficult, particularly when consumers
suspect that the marketer has a self-serving agenda in bringing about this
change (e.g., to get the consumer to buy more or to switch brands). Here are
some possible methods:

ORIFLAME

Changing affect:
One approach is to try to change affect, which may or may not involve
getting consumers to change their beliefs. One strategy uses the approach
of classical conditioning try to pair the product with a liked stimulus.
For example, we pair a car with a beautiful woman. Alternatively, we
can try to get people to like the advertisement and hope that this liking
will spill over into the purchase of a product. For example, the
Pillsbury Doughboy does not really emphasize the conveyance of much
information to the consumer; instead, it attempts to create a warm,
fuzzy image. Although Energizer Bunny ads try to get people to believe
that their batteries last longer, the main emphasis is on the likeable bunny.
Finally, products which are better known, through the mere exposure
effect, tend to be better likedthat is, the more a product is advertised
and seen in stores, the more it will generally be liked, even if consumers
to do not develop any specific beliefs about the product.
Changing behavior:
People like to believe that their behavior is rational; thus, once they use
our products, chances are that they will continue unless someone is able to
get them to switch. One way to get people to switch to our brand is to use
temporary price discounts and coupons; however, when consumers buy a
product on deal, they may justify the purchase based on that deal (i.e., the
low price) and may then switch to other brands on deal later. A better way
to get people to switch to our brand is to at least temporarily obtain better
shelf space so that the product is more convenient. Consumers are less
likely to use this availability as a rationale for their purchase and may
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continue to buy the product even when the product is less conveniently
located.
Changing beliefs:
Although attempting to change beliefs is the obvious way to attempt
attitude change, particularly when consumers hold unfavorable or
inaccurate ones, this is often difficult to achieve because consumers tend
to resist. Several approaches to belief change exist.
Change currently held beliefs:
It is generally very difficult to attempt to change beliefs that people hold,
particularly those that are strongly held, even if they are inaccurate. For
example, the petroleum industry advertised for a long time that its profits
were lower than were commonly believed, and provided extensive factual
evidence in its advertising to support this reality. Consumers were
suspicious and rejected this information, however.
Change the importance of beliefs:
Although the sugar manufacturers would undoubtedly like to decrease the
importance of healthy teeth, it is usually not feasible to make beliefs less
important--consumers are likely to reason, why, then, would you bother
bringing them up in the first place? However, it may be possible to
strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer
may advertise that it is extremely important for women to replace iron lost
through menstruation. Most consumers already agree with this, but the
belief can be made stronger.
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Add beliefs:
Consumers are less likely to resist the addition of beliefs so long as they
do not conflict with existing beliefs. Thus, the beef industry has added
beliefs that beef (1) is convenient and (2) can be used to make a number
of creative dishes. Vitamin manufacturers attempt to add the belief that
stress causes vitamin depletion, which sounds quite plausible to most
people.
Change idea:
It usually difficult, and very risky, to attempt to change ideals, and only
few firms succeed. For example, Hard Candy may have attempted to
change the ideal away from traditional beauty toward more unique self
expression.

Benefits:
A single set of figures producing the same bottom line
An integrated financial plan, aligned with all local plans
Higher forecasting accuracy
Integrated business management
Ability to adapt processes and strategies at short notice in response to market
conditions.

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Trends:
Solid growth and a continuous move towards more premium products
continued in 2008. However, considering the current recession we will also
experience a stronger demand for low price concepts in the years to come. In
parallel we are seeing a rising demand in the youth and male segments. There is
also a continuous increase in the market for natural and organic ingredients. This
follows the growing trend for a more holistic stance on beauty, health and
wellness. More and more cross-industry innovations are appearing on the market
combining health, beauty and food.

Objectives:

To study the consumer preference towards Oriflame products.


To improve the standard and quality of the product.
To know the opinion of consumers toward Oriflame product.
To influence the people to prefer Oriflame product.
To find the satisfaction level of consumers.
To know the variety of products, discounts and offers in using the

Oriflame product.
To study the services provided by the agents of Oriflame products.

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Profile of the study


History of Oriflame:
Oriflame Cosmetics is today one of the world's fastest-growing cosmetics
companies. Oriflame has sales operations in 63 countries and market leadership
in over 30 countries. A sales force of 3.4 million independent Sales Consultants
market a complete range of high quality skincare, fragrances and cosmetics.
Although the company has grown rapidly it never lost sight of its original
business concept - Natural Swedish Cosmetics from friend to friend.
Oriflame Cosmetics:
A Wor l d w i d e S u c c e s s S t o r y :

Approximately 2 billion Euros in annual sales.


3.4 million Sales Consultants.
7500 employees.
900 products.
Over 64 million catalogues in 35 languages.
Watch the Video Global R&D centre with more than 100 scientists
5 own production units in Sweden, Poland, China, Russia and India
Listed on the OMX Nordic Exchange since March 2004
Products based on natural ingredients, never tested on animals

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Achievements of Oriflame:

1967 Founded in Sweden.


1970 First Oriflame Consultants start selling in the UK.
1972 Oriflame Ireland opens as a licensee.
1988 First Catalogues published in the UK.
1998 Change to current Success Plan.
2003 Oriflame UK and Ireland reach 7,000 Sales Consultants.

Overview:
In order to keep this complex business on the right track and maintain its
rapid rate of growth, the management of Oriflame Cosmetics was in need of a
complete, integrated management platform.

Business need:
To keep its complex business on track and maintain its rapid rate of
growth, Oriflame Cosmetics needed a complete, integrated management
platform. The investment had to benefit business performance over the long
term, so the company decided to implement a total package for performance
management.

Challenges faced:
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A product catalogue represents the only shop-front and sales vehicle of the
originally Swedish cosmetics supplier, Oriflame. This catalogue is distributed in
the form of a printed sales brochure which can also be accessed online. In the
majority of markets in which the group is active, the catalogue is updated every
three to four weeks. Every year, we print around 100 million copies of the sales
brochure, which is distributed in some 30 languages around the world, explains
Gabriel Bennet, Chief Financial Officer at Oriflame Cosmetics. The brochure
presents just a selection of our range, which totals almost 1000 products.
Because 30 to 40 percent of those are updated every year, we are able to offer
our customers a completely new range of cosmetics products every three years.
In addition, prices and promotional offers of Oriflame Cosmetics products are in
some cases adjusted on a daily basis, in order to capitalize on new trends or
opportunities in the market. We certainly havent made it easy on ourselves.
But despite the complexity of our business, we are now one of the fastest
growing companies in the cosmetics industry, says Bennett. Indeed, sales of
Oriflame Cosmetics have grown an average 17 percent each year between 1990
and 2005. Today, Oriflame Cosmetics is not only incredibly strong in Central,
Eastern, and Southern Europe, but is also experiencing rapid organic growth in
Asia and Latin America.
In order to keep this complex business on the right track and maintain its
rapid rate of growth, the management of Oriflame Cosmetics was in need of a
complete, integrated management platform. In the first place, we needed to
support our existing business processes and strategy, says Bennett. But we also
felt that our new solution should enable us to adapt those processes and
strategies, where necessary, at very short notice. Moreover, our investment had
to benefit business performances over the long term. That is why we decided to
implement a total package for performance management.
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Strategy followed:
According to Gabriel Bennet, the implementation of such a performance
management system was also an important criterion for the successful
introduction of the concept of integrated business management. That concept
implies that you already have a single set of figures, or in other words, permit
only one version of the truth with regard to your business performance, Bennett
explains. By ensuring that all countries and departments within our group
worked with the same correct, unambiguous data, we were hoping to boost both
the quality and speed of our communication.
For that reason, Oriflame Cosmetics had already invested in the
construction of an Oracle data warehouse and in acquiring IBM Cognos
financial consolidation software. In this sense, we had already begun the first
phase of our project, says Bennett. To completely finalize that phase, all we had
to do was further roll out IBM Cognos 8 Controller, throughout our organization.
That is how we were able to lay the foundations for an all-encompassing,
completely integrated management platform.
When we were to go in search of a supplier who could offer us a total
package for performance management, we were quick to return to IBM
Cognos, says Christian Jnsson, Group IT Director at Oriflame Cosmetics. On
closer inspection, the majority of the other suppliers appeared to offer only parts
of the required solution. IBM Cognos was one of the few who could compile all
the necessary elements for us in order to develop a complete performance
management systemsoftware for financial consolidation, analysis and
reporting, and planning and forecasting.So Oriflame turned to IBM Cognos
again for the second and third phases of its project, and in addition to IBM
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Cognos 8 Controller, decided to roll out IBM Cognos 8 BI and IBM Cognos 8
Planning as well.
The real reason we decided to go with IBM Cognos was the rich pallet of
functionalities afforded by the technology, along with its user-friendliness. The
average user with basic knowledge of Excel and the internet can start using IBM
Cognos 8 BI in just half an hour.

Benefits realized:
Oriflame implemented IBM Cognos 8 Controller worldwide to allow
better management of its financial performance, and enable every level of the
group to work with a single, identical set of figures. With this deployment, we
have actually achieved the complete standardization and integration of all
financial reporting within the group. Coming from a Microsoft Excel based,
non-aligned environments, we now find ourselves working with one fully
integrated financial management system. This is improving the quality of our
data and the speed with which it is processed immensely, explains Johnson.
As a result of that improved level of control, we are now able to adjust
our business processes where necessary, adds Gabriel Bennet. And thanks to
the implementation of IBM Cognos 8 BI, we can now also generate better
analyses and reports, giving us a much keener insight into the performances of
our marketing, sales, and distribution networks.
Best of all, the implementation of the performance management system
also lead to significant changes at the level of strategic management and the
introduction of integrated business management in Oriflame. We now conduct a
monthly product management review, followed by a demand review and a
supplier review to support and improve our sales and operations planning,
concludes Bennet. Finally, a management business review reconciles all of
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these review processes, so that the information derived from them can be used at
a more strategic management level.
The next level of improvement for Oriflame is in planning and
forecasting. Bennett says, We expect to get the most benefits from the third and
final phase of our project, which is designed to help improve our planning and
forecasting. That is one of the most difficult processes in our business and yet
one of the most important and were deploying IBM Cognos 8 Planning to
handle this phase.

Attract, develop and retain:


Oriflame has approximately 2.9 million independent sales consultants in
61 countries. In addition to this we have over 7,000 employees located in offices
all over the world, including Stockholm, Moscow, Warsaw, Santiago and
Bangkok. For us to retain these people and moreover to be able to attract
outstanding professionals, we must offer motivation and potential for
development. We have therefore launched a number of management and
leadership training programmes. We have also implemented a new strategy for
compensation and benets. To nd the right person for each position, we have
adopted a performance management and succession planning system. Our most
important training programmes are found in the Oriame Academy,
implemented in 2007. This internal three-step development programme has been
created to support and strengthen Oriames culture, by ensuring that all
employees understand our core values and operating principles. It is also aimed
at increasing integration, strategic understanding, leadership and management
skills.

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An attractive beauty offer:


Over the years, Oriame has launched thousands of products within Skin
Care, Color Cosmetics, Fragrances, Personal & Hair Care, Accessories and
Wellness; from the eternal favorite, Tender Care Protecting Balm, to its new and
most premium Diamond Cellular Anti-ageing Cream, from Visions V Freaking
Amazing Mascara to Oriame Beauty Silky Kiss Lipstick. Oriflames products
have one thing in common they all convey the Oriflame product philosophy.
The formulations are developed using cutting edge technology and products are
manufactured according to the highest quality standards. The 2007 relocation of
a number of Oriames key support functions to Stockholm was a strategic step
and an investment in Oriames brand image and unique selling point.

Oriflame Cosmetics known for its Natural Beauty Cosmetics:


Oriflame cosmetics are a well known Swedish company with natural
beauty cosmetics. This company has been around for a solid 43 years and still
going strong. They have over 3 million distributors and have business in 62
countries. This company ranks right up there with Mary Kay and Avon
companies. Although Oriflame does not have distributors in United States, you
can find their wonderful natural Swedish products online.
This company was started by two brothers Jonas and Robert AF Jochnick
along with a friend Bengt Hellsten. Pulling all together to have the best natural
Swedish products, they built a successful natural cosmetics company, soon to
introduce a vitamin line and health products.
The Oriflame Company has a motto that Make Money Today and Fulfill
your Dreams Tomorrow. To join this company the start up cost is low with a no
risk sign up policy. They offer the opportunity of being part of their company to
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sell cosmetics and personal care products. This is a energetic business with a
strong will for success company. The Oriflame Company has also overcome the
global economy crisis going full steam ahead. Because of its reputation and line
of natural products this company is constantly growing.
Oriflame has a system of strategies that works well for their business. To
start it has low entry fee with no overhead of stock. It has appealing catalogues
of the products with new upcoming items, and has simple business ethic, they
offer personal expansion and growth, an affordable kit of the natural cosmetics is
available, there is unlimited potential for income, and direct selling. Even with
the global economy crisis this company has shown that their system is working
today better than it than it did at the start of the company.
Oriflame has attractive incentives and bonuses to help motivate and excite
the distributors to want to promote and expand their growth. With help of
internet so much more is possible to help the success of your business. Now
many companies are able to get the word out on the internet about their company
and products to expand and grow to their fullest potential. If you do your
homework and research different strategies of promoting your business there is
no end to what you can accomplish. Whether it is this company or another that
interests you to start your home based business, you need a plan of strategies to
develop and grow your business. Along with your plan you will need patience,
determination, and a will to succeed. You want a company that offers support
and information for continuous growth. Nothing can stop you if you have and
use the tools for success that are available to you. With the internet at your finger
tips, the potential to attract leads and prospectus is unlimited. Learn as much as
you can always be educating yourself on new and upcoming strategies. It is
important to stay ahead of the game to develop your business to its full potential.
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There is no stopping a distributor that has the excitement and desire to succeed!
Only you have the control to have the life you dream of!
Because of the strong ethics Oriflame with its Natural beauty Cosmetics
with its Natural beauty cosmetics has, it built a strong and solid foundation.
Learn how to connect you to success with more strategies and opportunities that
can explode your business. To your success!! Charlene stein.

About IBM Cognos BI and Performance Management:


IBM Cognos business intelligence (BI) and performance management
solutions deliver world-leading enterprise planning, consolidation and BI
software, support and services to help companies plan, understand and manage
financial and operational performance. IBM Cognos solutions bring together
technology, analytical applications, best practices, and a broad network of
partners to give customers an open, adaptive and complete performance solution.
Over 23,000 customers in more than 135 countries around the world choose
IBM Cognos solutions.

Economic status:
Oriflame Cosmetics SA reported consolidated earnings results for the
fourth quarter and full year ended December 31, 2010. For the quarter, the
company reported sales of EUR 440,111,000 against EUR 382,485,000 for the
same period of previous year. Operating profit was EUR 61,010,000 against
EUR 53,658,000 a year ago. Net profit before income tax was EUR 59, 559,000
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against EUR 48,073,000 a year ago. Net profit was EUR 55,702,000 or EUR
0.97 per diluted share against EUR 40,127,000 or EUR 0.70 per diluted share a
year ago. Cash flow from operating activities was EUR 61,340,000 against EUR
100,878,000 a year ago. Purchase of property, plant, equipment and investment
property was EUR 17,391,000 against EUR 8,008,000 a year ago. EBITDA was
EUR 68.2 million against EUR 57.7 million a year ago. Adj. operating profit
was EUR 61.0 million against EUR 55.0 million a year ago. Adj. net profit
before income tax was EUR 59.5 million against EUR 49.4 million a year ago.
Adj. net profit was EUR 55.7 million or EUR 0.97 per diluted share against
EUR 41.5 million or EUR 0.73 per diluted share a year ago. For the full year, the
company reported sales of EUR 1,513,596,000 against EUR 1,316,595,000 for
the same period of previous year. Operating profit was EUR 157,351,000 against
EUR 145,441,000 a year ago. Net profit was EUR 117,537,000 a year ago. Net
profit was EUR 117,537,000 or EUR 2.06 per diluted share against EUR
100,312,000 of EUR 1.76 per diluted share a year ago. Cash flow from operating
activities was EUR 90,301,000 against EUR 131,687,000 a year ago. Purchase
of property, plant, equipment and investment property was EUR 62,675,000
against EUR 21,664,000 a year ago. EBITDA was EUR 184.4 million against
EUR 167.0 million a year ago. Adj. operating profit was EUR 168.1 million
against EUR 146.8 million a year ago. Adj. net profit before income tax was
EUR 146.0 million against EUR 118.6 million a year ago. Adj. net profit was
EUR 128.3 million or EUR 2.25 per diluted share against EUR 101.7 million or
EUR 1.78 per diluted share a year ago. For 2011, the company expects its sales
to grow by 5-10% in local currencies and its operating margins to improve from
the 2010 level. Companys long-term targets are to achieve local-currency sales
growth of some 10% a year and to reach an operating margin of 15%. The
companys board of directors will propose to the AGM a dividend of EUR 1.50
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ORIFLAME

per share compared with EUR 1.25 for previous year, which corresponds to 67%
of net profit (adjusted for restructuring costs and impairment Iran). The total
amount correspondents to EUR 85.5 million. Following a decision at the AGM
in May, the dividend will be paid on or about May 27, 2011.

Financial and strategic Analysis Review:

Oriflame cosmetics S.A. (Oriflame) is a cosmetics company based in


Luxembourg. Through its subsidiaries, the company is engaged in offering
natural skincare and cosmetic products, including lipsticks, fragrances, toiletries,
color cosmetics, and accessories. Oriflame distributes its products through a
network of 2.3 million independent sales consultants in Latin America, CIS and
Baltic, central Europe and Mediterranean, Western Europe, Asia, and Africa.
Currently, operates five cosmetic manufacturing plants in Poland, Sweden, India,
china and Russia.
That comprehensive SWOT profile of Oriflame cosmetics S.A. provides you an
in-depth strategic analysis of the companys business and operations. The profile
has been compiled to bring to you a clear and a unbiased view of the companys
key strengths and weakness and the potential opportunities and threats. The
24

ORIFLAME

profile helps you formulate strategies that augment your business by enabling
you to understand tour partners, customers and competitors better.
This company report forms part of the profile on demand on Demand
service, covering over 50,000 of the worlds leading companies. Once
purchased, the highly qualified team of company analysts will comprehensively
research and author a full financial and strategic of Oriflame Cosmetics S.A.
including a detailed SWOT analysis and deliver this direct to you in pdf format
within two business days (excluding weekends).
The profile contains critical company information including,
Business description A detailed of the companys operations and
business divisions.
Corporate strategy Analysts summarization of the companys business
strategy.
SWOT Analysis A detailed analysis of the companys strengths,
weakness, opportunities and threats.
Company history Progression of key events associated with the
company.
Major products and services A list of major products, services and
brands of the company.
Key competitors A list of key competitors to the company
Key employees A list of the key executives of the company.
Executive biographies A brief summary of the executives employment
history.
Key operational

heads-A

list

of

personal

heading

key

departments/functions.
Important locations and subsidiaries A list and contact details of key
locations and subsidiaries of the company.

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ORIFLAME

Detailed financial ratios for the past five years The latest financial ratios
derived from the annual financial statements published by the company
with 5 years history.
Interim ratios for the last five periods The latest financial ratios derived from
the quarterly/semi-annual financial published by the company for 5 interims
history.

Lipstick:

Cleopatra, Egypts most famous pharaoh, used crushed carmine beetles to


stain her lips a vibrant shade of red.
Lipstick gained popularity in the 16th century thanks to the English Queen
Elizabeth I and the ladies of her court, who coloured their lips with a
blend of beeswax and red mercuric sulphide.
The first push-up lipstick went on the market in 1915.
The average woman consumes about 4 to 6 pounds of lipstick during a
lifetime by licking her lips. Now you know why you need to re-apply it
after eating!

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ORIFLAME

During the Islamic Golden Age, the Arab Andalusian physician and
chemist Abu al-Qasim al-Zahrawi (Abulcasis) invented solid lipstick,
which consisted of perfume and other ingredients pressed in moulds. He
described the process in his text, in his encyclopaedia of medicine and
surgery, the Al-Tasrif.
In 1770, the British Parliament passed a law that said a woman wearing
lipstick could be tried for witchcraft.
Max Factor, make-up artist to the stars, invented lip-gloss in 1930.
Lipsticks popularity grew during the Second World War thanks to the
movie industry and applying make-up became commonplace for women.
In 1950, American chemist Hazel Bishop developed the worlds first
kissable non-smear, long-lasting lipstick.

New product lipstick:


Introducing the new limited edition triple core lipstick a special version of
the worlds first triple core lipstick fusing caring balm, passionate colour and
dramatic gloss into one. The result is lips that are softer, more beautiful and
more impactful than ever before. With avocoda, jojoba oil, chamomile and
vitamin E- now in lovable limited edition packaging in five delightful new
shades and featuring a special edition heart-shaped core.

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ORIFLAME

Skin Care:

Skin Care is our core category as it helps to generate loyal customers who
value our expertise and technological achievements. Oriflame Skin Care brands
are targeting consumers of various age groups and price expectations. We are
building a consistent skin care routine inviting our customers to look after their
skin from the very first steps of cleansing to a special anti-ageing routine. One
can find easy-to-use skin care products for essential and everyday face care. For
those who are ready to spend more time on their skin care routine, they have the
choice of premium skincare products to suit different age groups and types of
skin. Sophisticated consumers will always find products which, apart from
innovative, natural ingredients, are effective due to their technological
achievements. Modern, up-to- date skin care packaging also adds much value to
our high quality products. Oriflame Skin Care is concentrating in particular on
developing strong segments, for moisturizers as well as anti-cellulite and antiageing categories. To learn more about Oriflame Skin Care, get to know our skin
care brands.

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ORIFLAME

Colour Cosmetics:

Welcome to Colour Cosmetics. Here innovation meets fashion in make-up for


everyday beauty and festive glamour. We use the best ingredients and natural
extracts to create cosmetics that are safe and effective, even on the most delicate
skin. We have three cosmetics ranges with three different beauty styles for all
your make-up moods:
Very Me
Very me is about self-expression. It is young, edgy and fun with a
positive, energetic vibe. This is the make-up for hip girls who want to
experiment and change their look. Very me represents individual, creative style
at fantastic prices!
Oriflame Beauty
Oriflame Beauty stands for cosmetics expertise. Here we combine
advanced formulations with on-trend products and professional make-up advice.
The best of nature meets the wisdom of science in high performance make-up

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ORIFLAME

for modern women with a stylish, urban edge. Our goal: to help you achieve
your unique beauty potential.

Giordani Gold:

Giordani Gold represents affordable luxury. This is where beauty goes


beyond appearances it is a lifestyle. Here advanced science unites with
femininity, modern elegance and perfection. The Giordani Gold world embodies
the art of feminine sophistication. The perfect beauty for the perfect life.

Fragrances:

Is there anything more potent and evocative than a scent? A fragrance can trigger
a smile, make you fall in love or set the mood. Your favorite scent can take you
on an emotional journey and transport you to your most cherished memories.
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ORIFLAME

Many elements affect your choice of fragrance: mood, occasion or season


so why not be spoilt for choice? The scope of our fragrances means youll never
need to go without the right scent for the right occasion. Oriflames commitment
to quality means that every fragrance is the creation of the worlds best and most
respected perfumers, who use only the finest essences and essential oils.
Discover a new you. Discover a world of fragrances with Oriflame.
Womens Fragrances
Nothing says more about a woman than the fragrance she chooses. Every
woman should have her own signature fragrancesscents that embody every
aspect of her. Why settle for just one signature fragrance when you can have one
to suit your every facet? Flowery, fruity, spicy, fresh or orientalyoull find
your perfect signature scent in our family of feminine fragrances.

Youth
Todays youth are more trend-conscious than ever. They know what they
like but theyre open to experimenting with their personal style and appearance.
With that in mind, we have developed several fragrance lines especially for
them. Taking cues from their brash, self-confident and free-spirited attitude, we
have come up with great fragrances for young women and men that reflect the
essence of today's youth.

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ORIFLAME

Limited Life
Our Limited Life fragrances are only available for a short time as
exclusive offers, collectors editions or seasonal products. Dont miss out on the
great selection of Limited Life fragrances.

Oriflame Eye Makeup:

Oriflame beauty eye makeup brings emphasis and expression to the eyes.
Whether you like experimenting with the latest fashion shades or prefer the
classical look, you will find all you need in Oriflame comprehensive range of
eye makeup.

Eye shadow:

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ORIFLAME

Oriflame beauty eye shadow duo are high coverage eye shadow duos that
give you perfectly matching make up can be applied wet for long lasting intense
colour or try for a silky finish the texture is smooth and very velvety smooth and
they blend perfectly to give you a professional look contains light- reflect
mineral mica for added shimmer.

Mascara:
Oriflame beauty power curl mascara:

Oriflame beauty power curl mascara has a revolutionary brush that lifts
lashes from the root for lasting curl. The intensified colour pigments in this
mascara give dramatic definition. Microspheres help to provide a clump- free
finish to your eye lashes, whilst soft emollients help to keep lashes continued
and flexible.

Giordani Gold VIP Volume Mascara:

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ORIFLAME

Giordani Gold VIP Volume Mascara helps you to create voluptuous


unforgettable lashes in one stroke of this delightfully rich volumising mascara.
This supremely smooth Oriflame formula, enriched with pro vitamin B5,
conditions your lashes whilst providing a thick layer of the finest colour for
dramatically glamorous lashes.

Oriflame Beauty Wonder Lash Mascara:

Superb Lashes! Beautiful Lashes!! You can create high impact lashes with
Oriflames Revolutionary high definition 3D applicator. The applicator delivers
lift, length and amazing fullness. The high definition 3D applicator of wonder
lash mascara separates along the eye and the lash leaving no clumps behind.
This formulation is ultra pigmented with carnauba milk for extra conditioning.

Oriflame Beauty Power shine Lip Gloss:

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ORIFLAME

Super power shine gloss with unique applicator for precise and mess-free
application. With advanced pearlescent pigments that deliver a sparkling
and ultra-gloss finish. 5 ml.

Lip perfection:

Sharpnenable lip liner that defines and enhances natural shape of lip.
Available in six creamy shades.1g

Giordani gold lip pencil

Draw your way to luscious lips. Blend with brush for a seamless look, or
use with lip colour for a more precise fill. Available in 3 sumptuous shades. 1.2 g

Concealer:
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ORIFLAME

Luxurious luminizer creates subtle highlights and healthy radiance


anywhere, on face or body. Solid formation for added comfort and ease of
application. Nourishing emollients keep skin soft and smooth while glowing.
7.5g

Foundation:

Luminous mineral foundation with revitalizing sea minerals, for a brighter


complexion when you wear it and when you take it off. 30 ml.

Eye liner:
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ORIFLAME

Turn up the heat with double the colouring one pencil for the hottest looks.
Perfect for lining your inner lash line. Five new colour combos for ultra
dazzle.1.83g

Oriflame Beauty Nail Polish:

Strength and beauty go hand in hand in this pearlescent bronze polish.


Innovative brush technology delivers intense colour in one coat. Ceramide
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ORIFLAME

complex helps strengthen nail structure, while ceramic particles help provide
glossy finish. 7 ml.

Oriflame Beauty Nail Polish Remover:

This gentle nail polish remover removes nail polish quickly. Acetone-free with
delicate vanilla scent. 0 ml.

SWOT analysis:
This comprehensive SWOT profile of Oriflame Cosmetics S.A. provides
you an in-depth strategic analysis of the companys businesses and operations.
The profile has been compiled by Global Data to bring to you a clear and an
unbiased view of the companys key strengths and weaknesses and the potential
opportunities and threats. The profile helps you formulate strategies that
augment your business by enabling you to understand your partners, customers
and competitors better.
Oriflame Cosmetics S.A. (Oriflame) is a cosmetics company based in
Luxembourg. Through its subsidiaries, the company is engaged in offering
38

ORIFLAME

natural skincare and cosmetic products, including lipsticks, fragrances, toiletries,


color cosmetics, and accessories. Oriflame distributes its products through a
network of 2.3 million independent sales consultants in Latin America, CIS and
Baltic, central Europe and Mediterranean, Western Europe, Asia, and Africa.
Currently, it operates five cosmetic manufacturing plants in Poland, Sweden,
India, China and Russia.
The company is also engaged in environmental and social activities
including co-founding the World Childhood Foundation and the Livslust
Foundation. The company is headquartered at Luxembourg, Luxembourg.The
company reported revenues of (Euro) EUR 1,319.67 million during the fiscal
year ended December 2008, an increase of 18.95% over 2007. The operating
profit of the company was EUR 178.64 million during the fiscal year 2008, an
increase of 37.86% over 2007. The net profit of the company was EUR 124.39
million during the fiscal year 2008, an increase of 35.24% over 2007.
This company report forms part of Global Datas Profile on Demand
service, covering over 50,000 of the worlds leading companies. Once
purchased, Global Datas highly qualified team of company analysts will
comprehensively research and author a full financial and strategic analysis of
Oriflame Cosmetics S.A., including a detailed SWOT analysis, and deliver this
direct to you in pdf format within two business days. (Excluding weekends)
Upon ordering, this SWOT profile will be updated and delivered direct to your
inbox within two working days.

Methodology:
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ORIFLAME

This is an explanatory study on the consumer behavior and satisfaction


towards the purchase of Oriflame product. Both descriptive and analytical
methods have been used to explore the linkages on the status of Oriflame. The
present study is based on survey method. The study is based on primary and
secondary data.

Statement of the problem:


Beauty is the essence of every human being. Many of us might not be
aware of beauty product,. Every beauty product differs accordingly to its brand.
Oriflame is a latest brand chosen and used by many consumers. We have chosen

Suggestion:

The following suggestions help in improvement of


Oriflame. If these points are considered, then surely it will
increase the sale.

If the price of the cosmetics is reduced it will surely attract


more people than the present. More over not only high
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ORIFLAME

class but also the middle class people can also own

Oriflame.
They can introduce more flavors for youngsters and

homemakers.
More varieties can be introduced in Satna showroom.
Many more discounts and offers can be provided to

increase the customers satisfaction.


Showroom display can be modified so that it may attract

new customers.
Media advertisement should be given so that other

customers can be aware of the product.


The quality of the customer service at Satna branch can be
increased in order to satisfy the customer so that there will
be increase in the customer.

Conclusion:
The success of Oriflame is based on a strong and consistent company
culture, promoting an entrepreneurial spirit and a clear set of values. Their
mission and passion is to fulll dreams for people around the world, a dream
often focused on building a better quality of life by belonging to the Oriame

41

ORIFLAME

sales network.Thus the research group concludes that Oriflame will surely reach
its height very soon in Satna District.

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