Published by MBA Skool Team, Last Updated: August 20, 2017
Marketing Strategy of Oriflame analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Oriflame marketing mix, help the brand succeed.
Oriflame marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Oriflame Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Oriflame Product Strategy:
The product strategy and mix in Oriflame marketing strategy can be explained as follows:
Oriflame is one of the most prominent names in beauty, cosmetics and skin care. Oriflame is mostly into women cosmetic products but also men’s segment. Oriflame has product range of over 400, most of them in cosmetics, personal care, and wellness category. The products in its marketing mix are broadly categorised as:
• Skin Care: Sun Cream Eyes Cream, Cleanser, tonners, Moisturiser, Face Treatment, Natural products are the new growth segment in Skin Care.
• Make Up: Face make up which includes product like foundation and powder, Eye makeup like mascara and eye liner, Lips makeup, Nail polish and other nail makeup, Beauty tools and brushes
• Fragrance products like perfumes for both men and women
• Bath and Body care for Men, Women, and Kids
• Haircare for Women and Men: For men only shampoo is available, other products are exclusive for women
• Beauty Accessories
• Company also provide wellness management service which have food supplements
Oriflame follows strategy of straight extension of product lines to all countries. All its products are conceptualized at its state of art Skin Research Institute where over 100 scientists are engaged in product technology development. These technologies are passed to product development centre in Dublin, Ireland who creates a cosmetic formula for Oriflame brand.
Image: company website
Oriflame Price/Pricing Strategy:
Below is the pricing strategy in Oriflame marketing strategy:
Oriflame products are available at premium over average cosmetic products in market.
However, its prices are competitive with respect to other brands like Avon in the direct selling cosmetics. Oriflame has distinct brands targeting at different segments like in Skin Care it has brands like NovAge and Ecobeauty which are targeted at different consumer segment. Its pricing strategy in its marketing mix is product line pricing where it has base price for entry brand and premium for the other brands. Oriflame prices also varies as per the average consumer market of the country. In India, its products are available at affordable prices whereas comparable products are sold at premium in European countries. Oriflame offers short-term price promotions and cross-sell campaigns
Following is the distribution strategy in the Oriflame marketing mix:
Oriflame’s model of business is through direct selling. Company has about 3.6 million independent cosmetic consultant who sell company’s product through personal selling. Its product is also available on e-commerce platforms like Amazon. Oriflame sales channel has growth into mobile app and its application is available on both Play store and Apple’s iOS. Oriflame is present in over 60 countries, covering five continents of Europe, Asia, Africa, South America, and North America. Oriflame has divided its operations into CIS and Baltics, EMEA, Asia and Latin America region. CIS and Baltics region contributes more than half of company’s sales. East European block is strong hold of company and volatility in those markets have significant impact on company’s operating profit. Company manufacturers product in local country to keep lower costs for its entry segment of products. In India which is a key market for the company, Oriflame has two manufacturing units making products for India and other Asian countries.
Oriflame India has a network of 2.5 lakh direct sellers.
Oriflame Promotion & Advertising Strategy:
The promotional and advertising strategy in the Oriflame marketing strategy is as follows:
Oriflame’s most of the sales comes from direct selling and hence company invest in training consultant. Oriflame’s tagline is “Your Dream – Our Inspiration” and it is the central theme around all its campaign. The major source of promotion is company’s product catalogue which each independent cosmetic consultant offers to the customers. It associates celebrities to be on the cover and promotional pages of the catalogue. Company gives brief period discounts in festive seasons to promote its offerings. Oriflame invest on TV commercial in some countries to create brand recall among consumers. It’s ad campaign are available on digital media platforms like YouTube. Oriflame’s page is present on social media platforms like Facebook and Twitter, Facebook, and Instagram. The company invests in CSR initiative. Company’s CSR initiative is focussed on sustainability and it has achieved several milestones in promoting sustainability through its product. Oriflame has cross-category eco-friendly cosmetics range. Its CSR initiatives forms a unique selling proposition for its consultants. This concludes the marketing mix of Oriflame.
Oriflame is a Swedish multi-national beauty products company which has adopted a model of selling directly to the consumer. It was founded in 1967 by Jochnick brothers. Oriflame draws its name from a royal banner of medieval France “Oriflamme”. The annual sales of Oriflame are about € 1.2 billion. Oriflame’s headquarter is located at Stockholm, Sweden. Global cosmetic industry has current estimated revenue of over $170 billion and is expected to grow to $ 429.8 billion by 2022 with a CAGR of 4.3%. Rise of disposable income across the globe is one of the growth factors for this industry. Asia-Pacific and Europe have emerged to be the two largest market in terms of market size. India is Oriflame’s fifth largest market and its India operations got started in 1995.
Direct selling cosmetic market is a competitive market given the presence of companies like Avon, Mary Kay and Arrbone. Oriflame’s vision is to be the number one direct selling format beauty company in the world.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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