Final Minor Research Project on the basis of oriflame cosmetics. PDF

Preview

Summary

I have done this project on the basis of how customers can be satisfied with oriflame marketing distribution channel, like online marketing, B2B marketing and many more....

Description

CUSTOMER SATISFACTION TOWARDS DISTRIBUTION CHANNEL OF ORIFLAME A Minor research project

Submitted to Shri Vaishnav Vidyapeeth Vishwavidyalaya

For the partial fulfillment of Bachelor of Business Administration (2017-20) By Arihant Jain Under the guidance of Dr. Rajeev Shukla

Shri Vaishnav School of Management Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore

1

Declaration

I Arihant jain student of Shri Vaishnav School of Management, Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore (M.P) do hereby declare that Minor Research Project entitled “Customer Satisfaction Towards Distribution Marketing Channel of Oriflame” is an original work and has not been submitted anywhere in the quest of any degree.

Date: 15\11\2019

Signature

Place:

Arihant Jain

Certificate 2

This is to certify that Arihant jain is a student of BBA 5 th Semester, Shri Vaishnav School of Management, Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore (M.P). He has prepared his Minor Research Project on the topic “Customer Satisfaction Towards Distribution Marketing Channel of Oriflame” under my supervision.

Dr. Rajeev shukla

Director,SVSM

Acknowledgement

3

I would Like to express my special thanks of gratitude to my mentor DR. Rajeev Shukla who give me the golden opportunity to this wonderful project on the topic “Customer Satisfaction towards distribution channel of oriflamme”, which also helped in doing a lot of research and I came to know about so many new things I am really thankful to them.

Date: 15\11\2019

Signature

Place:

Arihant jain

Table of Contents

4

Page no.

1. Introduction 2. Review of literature 3. Objectives 4. Research Method 5. History 6. Attractive beauty offer 7. Strategy followed 8. Financial and strategic analysis 9. Swot analysis 10. Data analysis and interpretation 11. Findings and suggestion 12. Questionnaire 13. Reference 14. Conclusion

Introduction

5

6 7-8 9 10 11 11-12 12 13 14 15-27 28-29 30-32 33 34

Oriflame Holding AG is a beauty company selling directt founded in 1967 by the brothers Jonas af Jochnick and Robert af Jochnick and their friend Bengt Hellsten. Oriflame has a presence in more than 60 countries and its wide portfolio of Swedish, nature-inspired, beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.3 billion in 2018. Today, Oriflame's business model largely comprises an online model, with around 96% of all orders placed online. Respect for people and nature underlies Oriflame's operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame Cosmetics is an international beauty company selling direct in more than 60 countries worldwide with their wide portfolio of Swedish, natural, innovative beauty products which are marketed through a sales force of approximately 3.6 million independent consultants, who together create annual sales exceeding some €1.5 billion.

Review of Literature

6

 The desire to be the perfect, to innovative is human nature. Caring about their body and their physical aspect is very important to women. The application of cosmetic has become a social phenomenon in Indonesian people lives. Over time, attitudes and habits are changing as social structures metamorphose, as new and different technologies affect the market. There are a lot of international cosmetic brand in Indonesia but this study focuses on “Oriflame” The main factors attract women consumers in Oriflame are discount, product quality and price. The main reason consumers are using Oriflame is the quality that satisfies their needs, trust worthy brand. (Agus Hermavan)  The research has been conducted to know the peoples expectation and satisfaction Towards Oriflame Products. The difficulties faced by the customers with regard to skin care products availability and quality were also inquired into and there by their overall satisfaction level was studied. This is a descriptive research and mainly primary data is used for the purpose of data collection from 50 respondents through questionnaire. It was undertaken to determine the customer opinion and behavior of customers, price, quality, brand name are included in the study. Satisfaction level on Oriflame products. (Ms.M.Nandhini)  Cosmetics are regarded as a means of enhancing one’s complexion and beautifying the skin. These cosmetics only include not only include skin care, there are also varieties of shampoos and conditioners available, which keeps the hair clean, soft and healthy. 7

The main goal of this research is to track and measure customer satisfaction on cosmetics, from that we can find the steps in order to increase the overall quality of the customer service and also to analyze about the spending the female customers make monthly on cosmetic. For this purpose, 120 customers were selected and obtained various response based on questionnaire method. The tools used in this study are percentage analysis, Anova, mean analysis and correlation This study reveals that majority of the customer. (Mr.M.S.Siranjeevi)

Objective:

8

 To analyze on what basis the customer tend to buy the oriflamme products  To understand the requirement and expectation of customer regarding products  To know about female customer spending on cosmetics  To know about distribution channel in oriflame products

Research Method

9

   

Type of study Sample size Area Data Collection

: : : :

Descriptive Method 60 Ujjain Primary and secondry data

 Primary Data: Questionnaire  Secondry Data: Internet and research paper  Data enterpretation : Analysis of Chart

History

10

Oriflame Cosmetics is today one of the world's quickest developing beauty care products organizations. Oriflame has deals tasks in 63 nations and market initiative in more than 30 nations. A business power of 3.4 million free Sales Consultants advertise a total scope of excellent skincare, aromas and beautifying agents. In spite of the fact that the organization has developed quickly it never dismissed its unique business idea - Natural Swedish Cosmetics from companion to companion.

Strategy Followed

As indicated by Gabriel Bennet, the usage of such a presentation the executives framework was likewise a significant standard for the effective presentation of the idea of coordinated business the board. ―That idea infers that you as of now have a solitary arrangement of figures, or as such, license just a single variant of reality concerning your business performance, ‖ Bennett clarifies. ―By guaranteeing that all nations and offices inside our gathering worked with the equivalent right, unambiguous information, we were wanting to help both the quality and speed of our communication. Therefore, Oriflame Beautifying agents had just put resources into the development of a Prophet information distribution center and in gaining IBM Cognos money related solidification programming. ―In this sense, we had just started the first period of our undertaking, says Bennett. ―To totally conclude that stage, all we had to do was further turn out IBM Cognos 8 Controller, all through our association. That is the manner by which we had the option to establish the frameworks for an allencompassing, totally coordinated administration platform. ‖ ―When we were to go looking for a provider who could offer us an aggregate bundle for execution the executives, we rushed to come back to IBM Cognos, ‖ says Christian Jönsson, Gathering IT Executive at Oriflame Makeup. ―On closer review, most of different providers seemed to offer just parts of the necessary arrangement. IBM Cognos was one of only a handful rare sorts of people who could incorporate all the important components for us so as to build up a total execution the executives framework—programming for monetary combination, investigation and revealing, and arranging and anticipating. 11

Attractive Beauty Offer

Throughout the years, Oriflame has propelled a large number of items inside Skin Care, Shading Beauty care products, Scents, Individual and Hair Care, Embellishments and Wellbeing; from the everlasting top pick, Delicate Consideration Ensuring Medicine, to its new and most premium Precious stone Cell Hostile to maturing Cream, from Dreams V Cracking Astonishing Mascara to Oriflame Magnificence Smooth Kiss Lipstick. Oriflame's items make them thing in like manner – they all pass on the Oriflame item theory. The plans are created utilizing bleeding edge innovation and items are made by the most excellent gauges. The 2007 movement of some of Oriflame's key bolster capacities to Stockholm was a vital advance what's more, an interest in Oriflame's image picture and exceptional selling point.

Financial and strategic analysis

12

Oriflame beautifying agents S.A. (Oriflame) is a beauty care products organization situated in Luxembourg. Through its backups, the organization is occupied with advertising common skincare and restorative items, including lipsticks, scents, toiletries, shading beautifiers, and embellishments. Oriflame conveys its items through a system of 2.3 million autonomous deals experts in Latin America, CIS and Baltic, focal Europe and Mediterranean, Western Europe, Asia, and Africa. Presently, works five restorative assembling plants in Poland, Sweden, India, china and Russia. That complete SWOT profile of Oriflame beautifying agents S.A. gives you an inside and out key examination of the company‗s business and activities. The profile has been arranged to bring to you a reasonable and an unprejudiced perspective on the organization's key qualities and shortcoming and the potential openings and dangers.

Swot analysis

13

This comprehensive SWOT profile of Oriflame Cosmetics S.A. provides you an in-depth strategic analysis of the company‘s businesses and operations. The profile has been compiled by Global Data to bring to you a clear and an unbiased view of the company‘s 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 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 cofounding 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.

Data analysis and interpretation

14

Analyzing survey data is an important and exciting step in the survey process. It is the time that you may reveal important facts about your customers, uncover trends that you might not otherwise have known existed, or provide irrefutable facts to support your ideas. By doing in-depth data comparisons, you can begin to identify relationships between various data that will help you understand more about your respondents, and guide you towards better decisions.

Chart 1

Source: Primary data

The above chart reveals that 93.3% of respondents (almost all) has been using any cosmetic brand and the rest 6.7% of the respondents has not been used any cosmetic brand, in 60 responses.

Source: Primary data

The above chart reveals that 86.7% respondents has using women’s

Source: Primary data

The above chart reveals that 91.7% almost all of the respondents has aware of oriflame cosmetic products and the rest 8.3% of respondents has not been aware of oriflame cosmetic products.

Source: Primary data Some of the respondents cannot use oriflame products due to following reasons:     

30.8% respondents do not need them 38.5% respondents will used other products 15.4% respondents think that they are expensive 23.1% respondents are afraid of other people reactions 7.7% respondents can not mentioned their reasons (Other reasons) (In 13 responses) Chart 6

19

Source: Primary data

The above chart shows that 75% respondents has been know the oriflame through advertisement ( newspapers, TV ad’s, magazines), 13.3% respondents has been know the oriflame brand through internet and the rest 11.7 has been know through word of mouth influence.

Chart 7

20

Source: Primary data

The above chart shows the 50% of respondents think that oriflame cosmetic has been provide quality products to it’s customers, 41.7% respondents cannot say that they can provide quality products to customer or not, & 8.3% respondents thinks that they cannot provide quality products.

Chart 8

21

Source: Primary data

The above chart shows that 80% respondents can suggest the oriflame products to his friends, relatives and colleagues, & the rest 20% cannot suggest the oriflame cosmetic products.

Chart 9

22

Source: Primary data

The above chart shows that 76.7% respondents can buy the oriflame products from traditional shops (retail shops), 13.3% respondents can purchase through online shopping sites, 8.3% respondents purchase from mall, the rest 1.7% respondents can buy from network marketing (door to door).

Chart 10 23

Source: Primary data

The respondents can use oriflame products due to following reasons:    

70% respondents can use oriflame products due to its availability 55% respondents can use the products for its quality 31.7% respondents can the products for its variety 28.3% respondents can use the products for its price

Chart 11

24

Source: Primary data

The above chart shows that 10% respondents wants the better packaging in oriflame products, 11.7% respondents wants more shades, 15% respondents wants more product range and the rest 63.3% respondents wants all the 3 mentioned above.

Chart 12

25

Source: Primary data

The above chart shows that 38.3% respondents can attract towards oriflame product through discount, 33.3% can attract through offers, 15% can attract through gift prize and the rest 13.3% can attract through others (Not mention).

Chart 13

26

Source: Primary data

The above chart shows that:  43.3% respondents has been totally satisfied with oriflame products  40% respondents has been satisfied with product  10% respondents has been somewhat satisfied with product  The rest 6.7% respondents cannot be satisfied with product

Findings:

27

Following findings revealed from the study:  From the study it is understood that most of the respondents attracted to Oriflame Products than other type of cosmetics but few of the respondents has not used oriflame products.  It is found that majority of the respondents who use Oriflame are females.  The study shows that the opinion about Oriflame Products service for buying a cosmetic in Oriflame is good.  The study shows that some respondents are satisfied with price of the product.  This study shows that most of the respondents want more shades, better packaging and more products from the oriflame cosmetic.  This study reveals that most of the customers are like to buy oriflame products from retail shops other than online or mall.  This study reveals that some respondents think that oriflame provides quality products.

Suggestion:

The following suggestions help in improvement of Oriflame. If these points are considered, then surely it will increase the sale. 28

 If the price of the cosmetics is reduced it will surely attract more people than the present. Moreover not only high 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 oriflame cosmetic.  Many more discounts and offers can be provided to increase the customers satisfaction.  Media advertisement should be given so that other customers can be aware of the product.  Showroom display can be modified so that it may attract new customers.  More retail shops to be open in every city so that customer can easily buy the oriflame products because most of the customers are like to buy the products from traditional or retail shops.

Questionnaire:

1. What is your name? Answer29

2. How old are you? Answer3. Did you use any cosmetics?  Yes  No

4. If yes, you are using:  Men’s products  Women’s ones  Both

5. Are you aware of oriflame products?  Yes  No

6. If no, then what is the reason you are not using oriflame products?  I do not need them  I am using other products  They are expensive  Afraid of other people reaction  Other reasons

7. How did you come to know about oriflame brand?  Through advertisement  Word of mouth influence  Through internet

8. Do you think oriflame provides quality products to his customer? 30

 Yes  No  Can’t say

9. Do you recommend your friends and colleagues about oriflamme products?  Yes  No

10.Where do you like to buy oriflamme products?  Online shopping sites  Mall  Traditional shops  Network marketing 11.What is the main reason for your use of oriflamme product?  Price  Variety  Quality  Availability 12.What changes would you like to see in oriflame products?  More products  More shades  Better packaging  All of the above 13.Which promotional activity do you attract towards towards oriflame products?  Discount  Gift prize  Offers  Others

31

14.Give your satisfaction level towards oriflame cosmetic brand:  0-20  20-40  40-60  60-80  80-100

Reference

 From Wikipedia https://en.wikipedia.org/wiki/Oriflame

32

 From scribd https://www.scribd.com/doc/138836856/Marketing-strategy-of-oriflame-indai-ltd

 From business fashion https://www.businessoffashion.com/articles/news-analysis/founders-of-swedish-cosmeticsbrand-oriflame-offer-to-buy-out-company

 From oriflame https://in.oriflame.com/

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 fulfill dreams for people around the world, a dream often focused on building a better quality of life by belonging to the Oriflame sales network.

33

34...