Professional Documents
Culture Documents
Project On Oriflame
Project On Oriflame
Cosmetics introduction:
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 Virāta
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used hair dyes for instance. These people used herbal concoctions with
components like henna, sage and chamomile to darken their hair. It was only in
the renaissance period that blond hair became fashionable.
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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:
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Oriflame Cosmetics:
Marketing of oriflame:
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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:
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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:
Beliefs:
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Affect:
Behavioral intention:
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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 liked—that 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:
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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
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Trends:
Objectives:
Methodology:
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present study is based on survey method. The study is based on primary and
secondary data.
Primary data:
It is collected from the questionnaire.
Primary data were collect from sample respondents of fifty persons from
the collection of primary data and interview schedule was developed before its
application among respondents. Pre-testing was carried out after altering the
structured question given. It was employed to make sample survey.
Secondary data:
It is collected from various journals and websites.
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Chapter scheme:
Chapter I-Introduction and design of the study
Chapter II-Profile of the study
Chapter III-Data analysis and interpretation
Chapter IV-Findings, suggestion and conclusion
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History of Oriflame:
Oriflame Cosmetics:
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Achievements of Oriflame:
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.
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Challenges faced:
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 haven’t
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
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to benefit business performances over the long term. That is why we decided to
implement a total package for performance management.”
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 Jönsson, 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 system—software for financial consolidation, analysis and
reporting, and planning and forecasting.”So Oriflame turned to IBM Cognos
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again for the second and third phases of its project, and in addition to IBM
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,”
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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
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potential. 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.
Economic status:
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. Company’s long-term targets are to achieve local-currency sales
growth of some 10% a year and to reach an operating margin of 15%. The
company’s board of directors will propose to the AGM a dividend of EUR 1.50
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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.
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profile helps you formulate strategies that augment your business by enabling
you to understand tour partners, customers and competitors better.
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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:
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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.
Lipstick’s 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 world’s first
kissable non-smear, long-lasting lipstick.
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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 anti-
ageing categories. To learn more about Oriflame Skin Care, get to know our skin
care brands.
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Colour Cosmetics:
Very Me
Oriflame Beauty
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Giordani Gold:
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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Women’s Fragrances
Nothing says more about a woman than the fragrance she chooses. Every
woman should have her own signature fragrances—scents 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 oriental—you’ll find
your perfect signature scent in our family of feminine fragrances.
Youth
Today’s youth are more trend-conscious than ever. They know what they
like but they’re 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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Limited Life
Our Limited Life fragrances are only available for a short time as
exclusive offers, collector’s editions or seasonal products. Don’t miss out on the
great selection of Limited Life fragrances.
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 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 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.
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Superb Lashes! Beautiful Lashes!! You can create high impact lashes with
Oriflame’s 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.
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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
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
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Concealer:
Foundation:
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Eye liner:
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
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This gentle nail polish remover removes nail polish quickly. Acetone-free with
delicate vanilla scent. 0 ml.
SWOT analysis:
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Upon ordering, this SWOT profile will be updated and delivered direct to your
inbox within two working days.
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Table 3.1
The above data reveals that 62% of respondents belong to 20-30 years,
18% of respondents belong to 30-35 years and 20% of respondents are above 35
years.
Fig.3.1
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20-30 years
30-35 years
Above 35 years
Table 3.2
The above data reveals that 4% of respondents are male group and 96% of
respondents are female group.
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Fig 3.2
Male Female
Table 3.3
Usage of product
The above table reveals that 40% of respondents use Oriflame product as
per instruction, 38% of respondents use Oriflame product by their own wish and
22% of respondents use Oriflame product according to their friend’s advice.
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Fig. 3.3
As per instruction
By your own wish
On friend’s advice
Table 3.4
The above table reveals that 6% of respondents are unsatisfied with the
price of Oriflame product, 80% of respondents are satisfied with the price of
Oriflame product and14% of respondents are more satisfied with the price of
Oriflame product. Fig.3.4
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Table 3.5
The above table reveals that 58% of respondents feel good about Oriflame
product and 42% of respondents feel better about Oriflame product.
Fig.3.5
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Good
Better
Bad
Table 3.6
The above table reveals that 20% of respondents use lipstick in Oriflame,
36% of respondents use nail polish in Oriflame and 44% of respondents in
Oriflame.
Fig.3.6
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Lip stick
Nail polish
Face care
Table 3.7
The above table shows that 22% of respondents prefer Lakme product,
58% of respondents prefer Oriflame product and 20% of respondents prefer
Amway product.
Fig.3.7
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Lakme
Oriflame
Amway
Table 3.8
Period of usage
The above table reveals that 52% of respondents are using the Oriflame
products below 2 years, 30% of respondents of respondents are using the
Oriflame products between 2-4 years and 18% of respondents are using the
Oriflame products above 4 years.
Fig.3.8
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0-2 years
2-4 years
Above 4years
Table 3.9
Fig.3.9
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Mascara
Eye liner
Others
Table 3.10
Fig.3.10
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Yes
No
Table 3.11
The above table reveals that 28% of respondents feel that customer
care service in Oriflame product is excellent and 72% of respondents feel
that customer service is satisfactory in Oriflame product.
Fig.3.11
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Excellent
Satisfactory
Un satisfactory
Table3.12
Category of people
The above data reveals that 28% of respondents say that high class
people use Oriflame product, 28% of respondents say that middle class
people use Oriflame product, 4% of respondents say that low class people
use Oriflame product and 20% of respondents says that all category of
people use Oriflame product.
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Fig.3.12
High class
Middle class
Low class
All of the above
Table 3.13
The above table shows that 66% of respondents are satisfied with the
display of Oriflame product in the show room, 30% of respondents feel excellent
about the display of Oriflame product in the show room and 4% of the
respondents are not satisfied with the display of Oriflame product in the show
room.
Fig.3.13
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Satisfied
Excellent
Un satisfied
Table 3.14
The above table reveals that 38% of respondents use Oriflame product for
children and 62% of respondents does not use Oriflame product for children.
Fig.3.14
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yes
No
Table 3.15
Benefit in dealership
The above table shows that 56% of respondents are benefited with
dealership of Oriflame product and 44% of respondents are not benefited with
dealership of Oriflame product.
Fig 3.15
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Yes
No
Findings:
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Suggestion:
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Conclusion:
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mission and passion is to fulfill dreams for people around the world, a dream
sales network.Thus the research group concludes that Oriflame will surely reach
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