Marketing Management Amway--Oriflame

SHUNIDA SHAIKH
S.Y.B.M.S-B 71

NETWORK MARKETING
Network Marketing or Multi-Level Marketing (MLM) is a business concept which allows the parent multi level marketing company to market and distribute their products, or/and service, directly to the consumer by direct selling and relationship referral. According to the WFDSA (World Federation of Direct Selling Associations), direct selling is defined, as the face-to-face marketing of products and services directly to consumers in a non permanent, retail location. Independent, unsalaried sales Consultants represent the company and make commission based on the volume of sales. The sales consultants often build their own organisation by recruiting a downline of other independent distributors who do the same; as a result the entire organisation expands.. As a consultant you earn commission not only based on your own sales, but also on the entire sales of your downline group. The amount of rewards paid out is decided according to the company's compensation plan. On the above basis, AMWAY and ORIFLAME are the two products which have been reviewed in the following assignment

Amway is a direct selling company and manufacturer with more than three million Independent Business Owners (IBOs) in over 100 countries and territories around the world, that uses network marketing to sell a variety of products, primarily in the health, beauty, and home care markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada , Michigan, the company and family of companies under Alticor reported sales growth of 9.5%, reaching US$9.2 billion for the year ending December 31, 2010. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics. In 2004, Health & Beauty products accounted for nearly 60% of worldwide sales.. Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.32 among the largest private companies in the U.S. by Forbes in 2010.

Vision
Inspiring people to live better lives.

Mission
To provide the best business opportunity. To deliver exceptional quality products to urban and semi urban homes in the areas of nutrition and wellness, cosmetics, personal care, home care, home tech and insurance.

Our Values
Amway has established some simple shared values that unite the entire company, and all of the Business Owners that are associated with Amway. Integrity We will uphold the highest personal and professional integrity which demonstrates honestly, loyalty, respect and high ethical standards in all our responsibilities, obligations and other activities. Trust Building reliability and dependability for self by displaying commitment, honesty, confidentiality and consistency in all actions. Transparency We will promote a culture of openness and mutual trust by interacting objectively and without underlying personal interests. Service Orientation We are committed to serve our customers to fulfill their needs by focusing efforts on discovering and thereby meeting stated and unstated requirements. Recognition We are committed to honor, encourage and support individuals and teams who contribute, through their behavior and actions, to the success of the organization.

ARTISTRY PRODUCT FAMILIES

ARTISTRY Essentials
Serious science and everyday simplicity combine for a fresh perspective on personal style featuring natural botanicals to keep skin healthy looking and strong. Artistry Essentials is a comprehensive product line for all skin types providing optimal skin health with maximum ease of use.

ARTISTRY Time Defiance

Our most advanced anti-aging ARTISTRY skin care system defies age by focusing on the importance of cellular communication. TIME DEFIANCE products feature anti-aging Derma Cell Exchange technology, repairing the signs of aging to help skin look younger

Crme LuXury
Experience the truth of skin transformation. Creme LuXury gives women the power of Cell Effect, re-energizing skin for optimum performance and a revitalized appearance. Look forward to firmer, softer, smoother and more radiant skin that acts up to 15 years younger

ARTISTRY Colour
Where beauty and creativity meet, ARTISTRY Colour products match and enhance a womans natural colouring, whoever she is, wherever she lives. Create the look that enhances your natural beauty with face, eye, cheek and lip essentials designed to reveal the beauty that resides inside every woman

Business model
Amway combines direct selling with a multi-level marketing (network marketing) strategy. "Independent Business Owners" (IBOs) may market products directly to potential customers and may also recruit (sponsor) and train other people to become IBOs. Each IBO may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated. People may also register as IBOs to buy products at discounted prices. Amway distributes a range of branded products. These products are sold to IBOs worldwide. The IBOs are Amways links with consumers and the communities in which they operate. The IBOs are self-employed and are highly motivated. IBOs sell to people that they know or meet. They can introduce others to the Amway business

How Amway Works

Amway believes that hard work should be rewarded. Put simply, the Amway Independent Business Owners Compensation Plan rewards IBOs for selling products and for sponsoring others who do the same. They earn income from: Retail markup* on product sales to customers. Monthly performance bonuses ranging from 3% to 25% of business volume depending on your monthly productivity. Monthly and annual leadership bonuses and other cash awards and business incentives based on group performance.

Motivational guidelines by Amway to induce people to become IBOs:

Step 1: Learn. The only way to truly understand your products is to use them. Knowing what these products can do for you is important when presenting them as solutions for your customers. Step 2: Retail. As your product knowledge increases, you will discover people all around you who need what you have to offer through your Amway business. Retail selling is the easiest way to make money through your Amway business.

Step 3: Sponsor. For some of your friends, products provide the solution they seek. For others, the Amway business opportunity will have strong appeal as they seek a business that can help them achieve their goals. When you sponsor them, you can be rewarded for the business volume they generate. Its that easy. Sign up for your own Amway business today.

Sales and Marketing Plan

The Amway Sales and Marketing Plan is a low risk, low start-up cost business opportunity that is open to everyone. It allows you to build your business through retailing products and sponsoring other people who, in turn, can retail products and offer the business opportunity to others. By passing your sales and marketing knowledge to your developing team, you not only build your own business network but also enable others to build one of their own. The Amway Sales and Marketing Plan has been operating for over 40 years and is available in over 80 countries and territories around the globe. The core of the Amway Sales and Marketing Plan's income opportunity is the sale of quality AMWAY products to retail customers. As your Amway business grows, the rewards you earn grow in proportion. The Amway Sales and Marketing Plan does not compensate anybody for simply recruiting others as Amway Business Owners.

Amway INDIA Brand Ambassadors

Amway & CSR

The Amway corporate vision is Helping people live better lives. AMWAY products and its business opportunity make a difference in the health, happiness, and personal fulfillment of people around the world. Amway defines a global cause as a social issue affecting many people around the world engaged in a struggle or plight that warrants a charitable response. Amway, who, as part of its Corporate Social Responsibility strategy, works with UNICEF. As a family company, Amway is committed to playing a part in improving the lives of children in need across the globe.

CSR-ACROSS THE WORLD

Amway One By One

At the heart of the Amway commitment of caring is the One By One Campaign for Children, which helps disadvantaged children around the world live, achieve, learn, and of course play. Since the program launched in 2003, we have partnered with employees and Amway distributors to help more than 8 million children. Weve logged 2.3 million volunteer hours, and raised $141 million dollars for childrens causes worldwide.

Project HAITI

In the aftermath of the devastating January 2010 earthquakes in Haiti, Amway launched the next phase of the Amway Emergency Response Plan. In an effort to make a positive difference in the lives of those affected, Amway has partnered with SOS Childrens Villages to help build a village to care for homeless and abandoned children. Two villages in Haitione in Cap-Haitien and one in Santo, in the Port-au-Prince area currently provide homes for more than 500 children. The newest SOS village will be built in Les Cayes. It will include 15 family homes, each supporting nine orphans and their Special Mothers who raise them as their own. The village also features a kindergarten, primary school, medical center, and community facilities. Because of the overflowing compassion of Amway, its employees, and Independent Business Owners (IBOs), more than $1 million in cash, products, and services was collected and put to use in Haiti during the immediate earthquake relief efforts.

CSR - AMWAY INDIA

Amway Opportunity Foundation, or AOF for short, is responsible for Amways corporate social responsibility (CSR) plans and initiatives. It is a registered non-profit organization registered under the Societies Act.AOF is also registered under the Foreign Contribution (Regulation) Act [FCRA], which means that it has the permission of the Government of India to accept foreign funds.Donations to AOF are exempt under section 80 G of the Income Tax Act, which means that any donation to AOF draws a 50% rebate on income tax. AOF is a decentralized organization that has 46 Local Implementation Committees (LIC) in as many cities. Each LIC has the capacity to carry out 3-5 events and activities in a year these could include organizing visits and donations to orphanages, organizing health camps for children from economically depressed sections, blood donation camps, celebrating Childrens Day either with children from economically depressed sections or from orphanages. Some projects undertaken are:

National Project For The BLIND

Amway launched the National Project for the Blind in 1998, when it entered into a partnership with the Delhi-based NGO, All India Confederation of the Blind (AICB). In 2000, it entered into understanding with the Mumbai-based National Association for the Blind, India (NAB).Under this project, AOF and AICB/NAB print and distribute Braille textbooks to all school-going children in a state. This partnership has printed and distributed Braille textbooks across the country. A total of 15 MoUs have been signed between AOF and its NGO partners.

Adopt a Child - Project Muskaan

To expend support financial or material to select orphanages/homes, under the umbrella of One-ByOne - Amways social project that is at work in 88 countries and territories worldwide, with children as its focal area of work. Our commitment to each orphanage is in multiples of 12-month blocks. This project is carried out in partnership with Amway Business Owners (ABOs) who contribute to help meet expenses of the children in these orphanages. Amway matches the donations made by ABOs.

How money is collected: Donations can be made via cheque in the name of AOF Orphanage Fund, and handed over at the various Amway offices. In addition ABO's can authorize deduction from their AR account while Amway employees can authorize deduction from their salaries.

Mobile Dental Clinic

Amway donated a state-of-the-art mobile dental clinic to the Rotary Club, Delhi Mid-town, for the use in slum areas in 1996. Operated by the Rotary Club, this clinic offers free dental check up and care six days a week, 52 weeks a year, to the underprivileged in and around Delhi.

Endowment To The Faculty Of Management Studies, UNIVERSITY OF DELHI

Amway made a significant endowment to the Faculty of Management Studies (FMS) Delhi University, in 1998. This led to the creation of the Amway Chair on Entrepreneurial Development at the FMS. This endowment had been made with the intention of encouraging entrepreneurial study.

White Cane Day And Louis Braille Day

Since 1998, AOF has also been active in some other activities for the blind. AOF has, along with AICB, celebrated White Cane Day (October 15th) and Louis Braille day (January 4th).On White Cane Day, AOF supports AICB distribute white canes to blind children.

AOF and CHILD RELIEF AND YOU (CRY)

The January 26th killer-quake that rocked Gujarat in 2001 devastated almost the entire state. Tens of thousands lost their lives, uncounted others lost their homes. A whole slew of aid-agencies rushed into the beleaguered state, offering first aid, medicine, food, blankets etc. After sifting through a host of possible partners through whom Amway could channelise its relief money, AOF proposed that CRY as a preferred partner. CRY is another well-known NGO that has an impeccable track record. As in most emergencies, it is the children who are often the worst affected, AOF took a conscious decision to channelise Rs. 35 lacs that Amway distributors, employees and Amway as a company, had collected. An AOF representative traveled some 800 kms in the worst affected areas of Anjar (Bhuj) and Dhrol (Jamnagar) in areas where not even one building remained unaffected. With the funds Amway had sent them, CRY runs activity centres for children in the villages in these two areas.

Nanhe Chitrakaar
AOF has, in the past three years, held two painting contests for children of the Amway family. These contests take place in some 20 cities, where children of distributors, employees and other service partners participate. The first ten paintings then serve as impressions for Seasons Greetings, Congratulations and Thank You cards, which are then sold by Amway distributors. The proceeds of these cards form the bulk of AOFs annual budget. Thus, the Amway distributor is intricately linked to AOFs work, and hence has a significant share in Amway's social responsibility.

Computer Centre In A School For The Blind

AOF has also helped the Ramakrishna Mission Blind Boys Academy (RKMBBA), Narendarpur (Kolkatta) set up a computer centre. This is the first such computer centre for the blind in Eastern India. Set in a sprawling and green campus, this efficiently run institution has a host of facilities for its students, which includes music, crafts, vocational training, besides the routine classes. One of the various pressing requirements was a computer centre, which would enable students to pick up this much-needed skill.

FACT SHEET- Activities conducted

1996:Donates a state-of-the-art mobile dental clinic to the Rotary Club, Delhi Mid-town, for use in slum areas. 1997:Presents a 20-volume Braille set of the Websters Dictionary in English, to the Delhi Blind School. 1998:Commences National Project for the Blind Braille textbooks being printed for Rajasthan. Under this project, AOF brought out Braille textbooks for all blind-school going children in a state. Endowment to the Faculty of Management Studies (FMS) Delhi University. 1999:Supports the National Braille reading contest held at Delhi. Braille textbooks for all blind schoolgoing children Delhi. Audio textbooks for Bangalore University Supports the Terry Fox run at Bangalore. This is an event organized around the world, in aid of cancer research. 2000:2nd National Braille Reading contest at Delhi. Braille textbooks for Maharasthra, Haryana and Uttar Pradesh. Supports the Karnataka Welfare Association for the Blind (KWAB) in conducting a cultural event in Bangalore. Celebrates International White Cane day. 2001:3rd National Braille reading contest on Louis Braille day. Donates a sum of Rs 30 lacs to Child Relief and You (CRY) after the Gujarat earthquake. Braille textbooks for Punjab, Bihar, Gujarat and Tamil Nadu. Celebrates International White Cane Day, in 9 cities. Sets up a specialized computer centre with the Ramakrishna Mission Blind Boys Academy (RKMBBA), Narendrapur, Kolkata. Supports Dr. Shroff's Charity Eye Hospital in conducting communications workshops for the blind. Teams up with Rajiv Gandhi Foundation (RGF) to set up 10 village libraries in Wynaad district, Kerala. Distributes 1000 Braille kits for blind children in Kerala. Makes possible the National Conference on Braille, in Delhi. Supports Autism week in December 2001 in Delhi. 2002:4th National Braille reading contest. Celebrates International White Cane Day in 10 cities. Enables the state-level chess tournament for the blind, in Tamil Nadu.

Celebrates Childrens Day, in 11 cities, wherein AOF volunteers (Amway distributors and staff) take children from orphanages and homes for destitute children, to picnics, amusement parks or film shows. 20 blood donation camps held in the year Organises a cataract operation camp at Surat - 120 free operations. 2003:5th National Braille reading contest in Delhi. Braille textbooks for Rajasthan & Delhi (2nd time), Karnataka, and Andhra Pradesh.Free eye camps were held at Erode, Balasore, Delhi and Siliguri - over 25,000 persons had free eye check ups and around 500 free operations were carried out. White Cane Day, where over 2000 White Canes were distributed to the blind. Celebrates childrens day in eight cities. Musical-nite fund raiser at Madurai. Proceeds pledged to the Indian Blind School at Madurai. Holds over 50 Blood Donation Camps, with 5,000 donors most of whom are Amway distributors. Receives citation and award from the World Blind Union (WBU), in Dec 03. AOF is the only Indian NGO to be so recognized by WBU. A series of fundraisers was held, by providing Hepatitis B vaccinations for the public. The proceeds of this used for child-related issues. Surat Raktdaan Kendra and Madurai Medical college award AOF for BDCs it has held. 2004:Car rally for blind children at Surat, and Jaipur-foot camp at Balasore. Fund-raiser musical nights held at Chennai, Coimbatore, Erode, Ranchi and Kolkata. AOF volunteers at Guwahati collected and donated Rs 30,000 to the district administration to help combat the flood crisis in the north eastern state. Braille textbooks for Madhya Pradesh. Holds over 50 blood donations camps in 2004 as well. Receives two awards one from Indian Red Cross Society, Orissa and the other from Central Red Cross bank, Cuttack. Donates furniture and clothing to St. Michael Blind School Ranchi. Childrens Day celebrated in as many as 35 cities. Organizes heart-check up camp at village Charba, Dehradun. Refurbishes Balika Niketan, the Home for the destitute girl-child at Dehradun. 2005:Donates group hearing system to the Red Cross Koshish School for the Deaf, Dumb and Blind at Amritsar, and musical instruments and toys to the Anubhab School for mentally challenged children. Study material donated to the Bhima Bhoi Blind School, Bhubaneshwar, and to the Blind school, Guwahati. Funds raiser musical-nite at Guwahati, Pune, Ahmedabad, Surat, and Rajkot, and at Lucknow (picnic), Siliguri and Bhubaneshwar (health camps) 45 blood donation camps held till Sep-2005 On occasion of World Health Day 2005 (April 7th) holds health camps at orphanages at Ahmedabad, Bhopal, Rajkot, Kurnool, Hyderabad, Chennai and Salem. Constructing two blocks of an orphanage at Nagapattinam for Tsunami affected children Celebrated International White Cane day in 16 cities, distributed 200 canes at each. Celebrated Childrens day at 36 cities free MMR camps at 8 and picnics and outings for orphans at 28 others. 2006:Donates appliances and furniture to orphanages and Guwahati, Kolkata, Kohlapur. Upgrades two orphanages and Kochi and Lucknow. Organised two typhoid camps at 15 cities across India.

Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden. The company sells skin care, cosmetic products and other related products through an independent sales force. Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnick, and their then partner, Bengt Hellsten in Stockholm. The brand got its name from the royal banner of medieval France which was traditionally unfurled only on the battlefield and accompanied by the war cry Montjoie Saint Denis. Oriflame is now an international beauty company selling direct in more than sixty countries worldwide. Its wide portfolio of products are marketed through a sales force of more than 3.6 million Independent Consultants.

Brief facts
1.5 billion Euros in annual sales Approx. 3.6 million Consultants 8000 employees 1000 products annually Co-founder of World Childhood Foundation. 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 Operations in more than 60 countries of which 13 franchisees

Oriflame core values

Togetherness, Spirit and Passion are the three fundamental values of Oriflame. Trusting these values we feel confident that we can succeed in a competitive business while at the same time help make the world a better place.

Togetherness
People who work together and share the same goals achieve greater results. They motivate each other and know that pulling together is more rewarding than going it alone.

Spirit
People with a can-do spirit have a winning attitude and never give up. They are committed to do what it takes to succeed.

Passion Passionate people have the power to change the world. They love what they do, they believe in it. They know deep down that they can make a difference.

Oriflame Skincare & Cosmetic Products

Ecollagen Target wrinkles from three dimensions length, depth and width.

Time Reversing InTense Developed with -ProstimulineTM Complex, In Tense provides a complete treatment to restore and revitalise dry, mature skin.

Optimals Bio Maximum+

Treat your skin with BioMaximum+, the latest from Optimals. It fights wrinkles and loss of firmness naturally.

Make-up Range Oriflame brings to you a large number of exciting products to colour up your lives!

Business Model
Oriflame is manufacturer of beauty and personal care products. They utilize the multi-level marketing and direct sales business model to sell their products and services. That means that the company manufactures the products and has an independent sales force that sells the products via word-ofmouth. Oriame launched its direct sales method in 1967 when the Company was founded as a vital part of its innovative business concept. The model has proven its resilience, sustainability and validity for more than 40 years. It has proven to be a successful marketing method in emerging, as well as mature, markets. Oriflame currently has approximately 3.3 million independent consultants world-wide and does business in 62 countries throughout the world

Business strategy
Oriflames strategic focus can be summarised in these seven key points Low entrance fee, credit offered and no stock required easy to join and no risk. Wide portfolio of Swedish, natural, innovative, quality beauty products at affordable prices. Frequent, dynamic and attractive catalogues with many new products that make selling easy Flexible and reliable ordering, delivery and payment system easy to do business with. Personal growth and development through Oriflame University and SARPIO (Sales and Recruitment Process in Oriflame) at no cost. Unlimited earning and career opportunity. Enjoy a direct selling company with a human touch and a sense of belonging

How Oriflame Works

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 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. 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 theyve shortened their distribution chain which is reinvested right into the MLM Compensation Plan for its members. When you become an Oriflame Consultant youll 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.

Motivational guidelines by Oriflame to induce people to become Consultants:

MAKE MONEY With Oriflame you always have the freedom of choice Earn money immediately everytime you sell a product - 30% retail profit straight in your pocket. There are no limits - earn extra imcome or make it a career. Build your own business by inviting others to join your team. Earn bonus on the work done by yourself and your network mad enjoy other great rewards. It fits with your lifestyle.

HAVE FUN Share your favourite cosmetics with family and friends Help others grow as you build your own team Meet new people and make new friends Grow personally and professionally through meetings, trainings and seminars Travel internationally and qualify for high profile events, cars and huge cash awards.

Oriflame INDIA Brand Ambassador

Oriflame & CSR

Oriflames view of Corporate Social Responsibility (CSR) encompasses applying a responsible business model, which empowers people and provides them with tools to enrich their lives Oriflame is committed to the ten principles of the United Nations Global Compact. These apply to the areas of human rights, labour standards, the environment and anti-corruption. The Company worked during the year to integrate these principles into the Code of Conduct and to ensure that they permeate all aspects of the business.

Global responsibility
When formulating our products we strive to use natural ingredients that are in line with our strong environmental policies and are not harmful to the environment. For example, the main cleansing agents used in our shampoos and shower gels are biodegradable, approved by the Swedish Society for Nature Conservation and are in line with Good Environmental Choice (Bra Miljval) standards. We are one of the first companies to utilise plant extracts in skin care products and we have always tried

to optimise the use of ingredients from renewable plant sources. Scientific reports on safety and environmental issues are continuously monitored to ensure that action can be taken to replace any ingredients that may have a negative impact on consumer health and the environment. In addition, Oriflames product packaging is recyclable and minimised to reduce waste. Oriflame has a strong ethical ethos which is evident through all facets of its operations. Oriflame products are formulated and manufactured in line with high industry standards and ethical guidelines. We currently operate five cosmetic manufacturing plants - in Poland, Sweden, India, China and Russia. All Oriflame manufacturing facilities and sub-contractors comply with the relevant local and national laws and regulations. Such laws include those relating to labour standards, environmental manufacturing and health and safety practices. Water conservation is a key priority in Oriflames environmental management plan. In line with our proactive approach towards responsible environmental management we apply design techniques at all of our manufacturing facilities, aimed at reducing water consumption and minimising pollution. Oriflame takes a strong stance on important social and ethical issues such as child labour, ethnic beliefs and culture. We are also committed to helping children at risk and to providing education for young women through our Social Cause Programs.

CSR-ACROSS THE WORLD

World childhood Foundation

n
Every child has a right to a childhood, to security, joy, playfulness and curiosity about life. Every child has a right to grow up and develop socially and intellectually. But many children are devoid of these, their most fundamental rights. That's why Oriflame co-founded the World Childhood Foundation. Through them we reach out to the world's most vulnerable children: street children, sexually abused children and children in institutions. Together, we promote projects for girls and young mothers - since few others do. Oriflame supports the World Childhood Foundation in many ways. Apart from the co-founder contribution, we also sponsor a variety of Childhoods project in the markets where we are active. Currently Oriflame gives extra support to projects benefiting children in Estonia, Lithuania, Latvia, Russia and Poland.

Livslust

Livslust (Dzivesprieks) is a very special school. It gives hope for the future and provides vocational education and social rehabilitation for struggling teenagers in Latvia. Most of these teenagers have spent their whole lives in orphanages and educational institutions. Before arriving at the school, they have little hope and few, if any, of the skills needed to build a good life. Livslust was founded in 1994. The students combine general subjects like English, mathematics and social skills with practical training in building construction, sewing, agriculture, computer skills, cooking or carpentry. By learning a trade, they create the foundation for a better future for themselves.The Livslust school is financed by donations from sponsors, and Oriflame has been an active contributor from the very start

CSR- Oriflame INDIA

Deepalaya
Oriflame believes that any investments made in the education of a girl, translates directly and quickly into better health care, poverty reduction and better overall economic performance of the family. Girl Child education has a wide-ranging impact on many aspects of human survival and development. Thus, Oriflame Girl Child project is an endeavour to spread the message that a communitys development is incomplete without the education of girls. Under this project Oriflame has sponsored education of 1,000 girls for a period of four years from Deepalaya, the largest operational NGO in Delhi. A grant of approximate 4 crores was given to Deepalaya for the Oriflame Girl Child project. The contribution has facilitated education of selected

girls in the age bracket of 4 to 17 years. Through this project Oriflame aims to lead these girls towards the path of education and bring out their latent talents. Magnus Brannstrom, Oriflame CEO visited Deepalaya on 12 th June 2006. During his visit, he interacted with Oriflame Girls' and actively discussed their progress with teachers and school authorities.

Hand in Hand
Entrepreneurial ship has always been a focus for Oriflame and thats the reason in November 2006, a grant of 30 crores was given from af Jochnick Foundation to Hand in Hand - an NGO operational since 1988 in Tamil Nadu. The grant is used by Hand in Hand for running Self Help Groups (SHG) and Microfinance Projects in specific areas of general training for SHG members, womens literacy programme and medium-sized enterprises. The goal is to empower poor rural women who are members of SHGs to ultimately become entrepreneurs and set-up enterprises in order to bring in more income to the families. This is done by forming women into Self Help Groups, training them in capacity building and skills development and helping them to build sustainable livelihoods for themselves and their families. Most of them are first of all taught basic reading, writing and arithmetic through a 100-day literacy course. One such Self Help Group is running a crisp bakery and have had great success.The Paper Cup unit, Citizens Centre, Aina Tailoring Unit, Adult Literacy Training, a Broiler Farm are some of the many other projects initiated by Hand In Hand. Oriflame India continuously supports Hand in Hand with, for example, hosting fund raising events in our Support Office facilities in New Delhi

Power of pout: Lipsticks help educate the girl child

Besides being good for love and romance, V-Day month could also bring cheer to the lives of at least a thousand young girls in India. With an aim to raise funds for the upliftment of the girl child in India, a cosmetic company has announced that it will donate Rs 6 per lipstick sold in the month of February towards a charity. An initiative by Swedish cosmetic brand Oriflame, the month-long "Power of Kiss" campaign aims to raise funds through sale of lipsticks in India.

Fredrik Widell, managing director of Oriflame, South Asia, says: "Since February is the month of love, our catalogue for the month is themed around lipsticks. So for every unit sold, Rs 2 will be given away from the MRP, while an additional Rs 4 per unit will be added by 'Jochnick Foundation', a charity concern formed by the founders of the company." The money will be donated to the Delhi-based NGO Deepalaya that works towards girl child welfare in India. Sudha Parthasarthy, executive director of the organization, explains that they run four exclusive schools for girls in and around the slums of South Delhi, picking students from extremely marginal families such as the children of rickshaw-pullers and hawkers. "The money generated by the campaign will go towards education of a 1,000 girls out of the 3,000-odd who are enrolled in our schools," she says. Designer Rohit Bal, who has been signed as brand ambassador for the campaign, says, "I think there is a time in our lives when we all need to give back to society. This initiative will ensure the safety of at least a thousand girls by giving them access to formal education so they can provide for their family, if needed." Shilpa Ajwani, national sales manager of Oriflame India, says that as part of its CSR initiative, the company has already invested around Rs 4 crore towards these girls but this was for the first time that client involvement is also sought. Chandigarh-based sociologist Nirmal Sharma says that from time to time, FMCG brands keep running such campaigns wherein a part of sales proceeds is given away from social causes. For instance, in UK, cosmetic line MAC has signed Lady Gaga and pop singer Cyndi Lauper to support its Viva Glam programme in support of HIV/AIDS awareness. As a result of this partnership, every cent of the selling price of Viva Glam lipsticks will be donated to support those living with HIV. "This adds to the brand value while also increasing awareness among the patrons about the company's CSR initiatives and in many cases, it may also boost the sales," says Sharma. Agrees Widell, "Under this campaign, we are hoping to sell at least 5, 00,000 lipsticks in India this month so that we are able to generate at least Rs 3 million for Deepalaya."

Conclusion: AMWAY v/s ORIFLAME

Amway started in the year 1957 was introduced in the INDIAN market in the year 1995. Whereas Oriflame which started out much later in 1967 was also launched in INDIA in the year 1995 and hence, both have got a fair start in the Indian market. Amway India has 400 full time employees and has generated indirect employment for 1,650 persons at all the contract manufacturer locations. The Company has provided the income generating opportunity to over 4,50,000 active independent Amway Business Owners. On the other hand, even though Oriflame has its presence in around 1,267 Indian cities and Towns it still has only around 1,50,000 Individual Consultants. In Oriflame, Consultants promote the product and the opportunity by means of holding beauty demonstrations. Training is provided free of charge by the company to arm the Consultants with all the knowledge they need. Whereas in Amway, online support is available at Amway's corporate

website, which is very informative and includes information about the Amway story, the business opportunity, and much more. Websites are also available for every country/market that Amway does business in. Also, Oriflame lacks the excellent corporate sponsored conventions and distributor lead regional events. That are held by top Amway distributors, who are among the highest income earners in the industry, with huge organizations. Consequently, they are usually larger than most national conventions that are held by many newer network marketing companies, and are very inspiring and life changing. Regarding Amways products and service, you name it, they have it. Great quality Amway products, such as nutrition, cosmetics, personal care, skincare, homecare, as well as top name brand products and services. It's important to note here that Amway products are backed by the most impressive research and development department, not only in the network marketing industry, but in the world. Amway's R&D includes 57 laboratories, which includes 13 quality assurance laboratories, with hundreds of projects in process. Amway also currently holds over 200 patents and nearly 400 more with patents pending. Whereas, Oriflame India has product lines for men, women and children in only four key

categories :

Colour cosmetics Skincare Hair and personal care Fragrances

80 percent of Oriflame products are imported and just 20 percent are manufactured in India. The company boasts of an only in house research team which is dedicated to ongoing research which served the company well for the past 40 years. Regarding the compensation plan, as an independent beauty consultant with Oriflame you can earn between 23% to 30% in commission by selling the product. As with any direct sales MLM you will earn money by recruiting others into the business underneath you. Unfortunately the company isnt very forthcoming with their compensation plan as there was nothing to be found that informs us how they pay, what levels can be achieved overall and so on. On the other hand Amway is a solid company that you can bank your future on, and when you consider the unmatched number and quality of Amway products, and the recruiting frenzy that is expected from the introduction of Quixtar, their compensation plan is much more lucrative than many newer MLM companies. Advantages of Amway includes Financial strength, track record of success, a true global opportunity, highly diversified product line, excellent training and support, and without a doubt...Quixtar and that of Oriflame includes very Fairly Priced and affordable products. Negative name recognition to some, relatively less distributor-friendly comp plan than many newer companies and Distributors having to pay commissions to and order products for "pre-direct" downline members are some of Amways disadvantages while Distributors often complaining of late product delivery is a disadvantage to Oriflame.

Bibliography:
www.oriflame.co.in www.oriflame.com www.amway.in www.amway.com www.scribd.com

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