Academic Work

2.  Oriflame In Brief
 SWOT Analysis
 PESTEL analysis
 Client Groups and Empathy Map
Value Proposition
Mission, vision and values
 SMART strategic goals for next 5 years
Contents of
Presentation

3.  Founded in 1967
 Direct selling cosmetics company
 Product range of approximately 1,000 products.
 3 million sales consultants
 Operations in more than 60 countries of which 12 are
operated by franchisees.
 Production facilities in Poland, Sweden, China, Russia
and India.
 Approximately 7,000 employees.
Oriflame In Brief

4. SWOT Analysis
Strength
 Established Brand Name
 Innovative products, High quality and
Affordable prices
 Environmental and Animal friendly
 Latest Catalogues
 Natural Products
 Independent sales force of over 3
million people

5. SWOT Analysis
Weakness
 Lack of promotional activities
 Depends on the network of individual
sponsors
 Available in very few stores
 No retail shop outlet
 Lacks opportunity of customer impulse
buying

6. SWOT Analysis
Opportunity
 Develop Deeper distribution network
 Expanding in new country
 Investing in R&D, launch of new
products through innovation

7. SWOT Analysis
Threats
 Aggressive price competition
 Availability of cheap beauty products
 Presence of many established brands
 Increasing production cost

8. PESTELAnalysis
Political
 Tax policies
 Employment laws
 Labor law
 Trade restrictions and tariffs
 Political stability

9. PESTELAnalysis
Economical
 The inflation rate
 Economic growth
 Unemployment rates
 Interest rates
 Exchange rates

10. PESTELAnalysis
Social
 Attitudes, values, beliefs, behaviours and typical
regional demographic trends.
 The cultural aspects and health consciousness,
 Population growth rate,
 Career attitudes and emphasis on safety.

11. PESTELAnalysis
Technological
 Automation
 New Production method
 Rate of technological change

12. PESTELAnalysis
Environmental
 Environment friendly
 Natural products
 Least affect on Environment

13. PESTELAnalysis
Legal
 Consumer law
 Employment law
 Health and safety law

14. Client Groups(Market Segment)
 Geographic Segmentation: More then 60 countries
 Demographic Segmentation: 15 to 50 years old male and
female
 Psychographic Segmentation: Middle to upper class people
 Behavioural Segmentation: Satisfied customer and refers
to others

15. Empathy Map
Client Name: Angelina
Age: 21
Profession: Student (Studying Bachelor at
University)
 What does she sees?
What does client hear?
What does feel and think?
What does say and do?
What is her pain & Gain ?

16. Value Proposition
Value of product relative to price - a
function of quality and price
Quality of product
Time issues, such as product
availability, availability of sales
assistance, time waiting at checkout,
and delivery time
Atmosphere of store, such as
cleanliness, organization, and enjoyable
shopping environment.
•Separation

17. Value Proposition
Cont.
Availability of the products
Experimental Design
Innovation
Transparency
Customer Satisfaction
•Separation

18. Mission
Mission is to Fulfil Dreams
LOOK GOOD, MAKE MONEY, HAVE FUN

19. Vision
Vision is to be the #1 Beauty Company
Selling Direct

20. Values
 Togetherness
 Spirit
 Passion

21. SMART Strategic goals
 Increase sales up to 40% to maximise profit
margin through expansion to new markets.
 Improve the efficiency of sales network through
training and development.
 Introduce new promotional activities.
 Increase the number of sales representative and
motivate the existing representative.

22. Business Model
Customer Segments:
•Age group of 15 to 50 users who want to look good
•Young student
•Professionals
•Adults
Value Propositions:
•High quality natural product
•Earning money by sharing the experience of
product with other customer.
•Innovative beauty solution

23. Business Model
Channel:
•Retail online shop
•Direct sale representative
Customer Relationships:
•Company Website
•Sales Representative
•Automated service
Revenue Streams:
•Sales through direct sale force and online shop.