A

Project Report

On

“CUSTOMER SATISFACTION FOR ORIFLAME COSMETICS”

Submitted to

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

NEW DELHI

Submitted By: Submitted To:

Suraj, Sonali Bhardwaj Dr. Neha Gangwar

PERIYAR MANAGEMENT AND COMPUTER COLLEGE

NEW DELHI

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 INTRODUCTION

This report is an attempt to understand the level of customer satisfaction for Oriflame cosmetics.
Oriflame has emerged as one of the global leaders in cosmetics. They have 5 key areas of
expertise − hair care, hair colors, skincare, make-up and fragrances. There is a huge motive
behind the study of Oriflame. The operations such as, business marketing strategies, business
plans of company at a glance, business structure, management and operating structures,
competitors position as per this company, business development, discussion of business
strategies, SWOT analysis to understand the different pros and cons of the company, so that the
problem areas can be located and effective corrective strategies can be recommended to the
company. This study offers a comprehensive analysis of the organization, its business segments,
and competitors. It analyzes the business and marketing strategies adopted by the company, to
gain a competitive edge in the industry. The profile also evaluates the strengths of the company
and the opportunities present in the market. This study presents the key facts & figures, business
description, products & services offered and corporate timeline of the company. It also examines
the significant developments and milestone that have taken place in the company.

SCOPE OF THE STUDY :

This study uncovers the impact, utility and effectiveness & efficiency of marketing strategies of
Oriflame on the success of cosmetic industry. A special emphasis is laid down on Oriflame
cosmetics.

The project begins with detailed information about marketing strategies and the impact of
measuring customer satisfaction in cosmetic industry. Further, it covers topics as data collection
tools and research methodology used for the project. Then it gives a complete analysis of the
data collected and it is then used to reach to a conclusion. The study is useful for the better
understanding of marketing strategies towards the Oriflame cosmetic industry. For the purpose
of this study, a questionnaire was designed based on different parameters to judge and
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understand the consumer behavior towards Oriflame cosmetics. Target group of the project was
mainly Oriflame customers.

As this study is confined to Oriflame, it covers an analysis of consumer behavior, attitude,

perceptions, marketing strategies and satisfaction with respect to Oriflame as a BRAND in
cosmetic industry.

The study takes into account the customers of Oriflame in New Delhi.

OBJECTIVES:

• To study the marketing strategies of Oriflame cosmetics. (i.e. 4 P’s Strategies-Product,

Price, Promotion, Place).
• To know and analyze the level of satisfaction of customers with regard to Oriflame’s as
one of the major players in Cosmetic industry.

• To ascertain the areas of problem faced by Oriflame customer & the Strategies for
Customer satisfaction.

• To study the overall trends of Cosmetic Industry.

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology
can properly refer to the theoretical analysis of the methods appropriate to a field of study or
to the body of methods and principles particular to a branch of knowledge.

UNIVERSE
All items in any field of enquiry costitute a ‘Universe’ or ‘Population’. A complete renumeration
of all items in the population is known as a census enquiry. The universe selected for the study
was customers availing different products of ORIFLAME in DELHI region.

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SAMPLE SIZE & SAMPLING TECHNIQUE
The number of items selected from the universe to represent the universe is called size of the
sample. It was not feasible to cover all the customers who use the cosmetic products of
ORIFLAME Company.

For the study a total of 56 respondents were approached out of which 50 filled in the
questionnaire correctly and completely and the rest 6unfilled questionnaires were rejected.
Therefore sample size for current study comprises 50 respondents.

The sampling technique used for the study is convenience sampling, where in the population
elements are selected for inclusion in the sample based on the ease of access.

DATA COLLECTION METHOD

For the study, both primary and secondary data were collected. For primary data, a questionnaire
was developed and administered to the respondents who have used the services of journal,
magazines, newspapers, company, literature, books, web sources were consulted.

PRESENTATION TOOLS USED

These tools help to make project interactive and easily understandable by any individual who
want to seek information about any particular subject.

The main presentation tools are as follows:

 Graphs.
 Pie charts.
 Tables.

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MAJOR PLAYERS & THEIR MARKET SHARE

AVON LAKME

MAYBELLINE REVLON

AMWAY

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 MARKET SHARE 2016

BRAND MARKET SHARE (%)

LAKME 25.89

REVLON 19.57

AVON 16.98

ORIFLAME 15.26

MAYBELINE 12.56

AMWAY 9.74

Source: Business Express, 2015

MARKET SHARE

9.74 Lakme
25.89 Revlon
12.56
Avon
Oriflame

15.26 Maybellin
19.57 Amway

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COMPANY PROFILE
 ORIFLAME – INTRODUCTION

Oriflame was founded in 1967 by two brothers and their friend, Oriflame is now an
international beauty company selling direct in more than 60 countries worldwide. Its wide
portfolio of Swedish, natural, innovative beauty products are marketed through a sales
force of approximately 3.6 million independent consultants that are marketing our
products around the globe.

Oriflame offers the leading business opportunity for people who want to start making money
from day one and work towards fulfilling their personal dreams and ambitions through its unique
business concept - Make Money Today and Fulfill Your Dreams Tomorrow™.

Respect for people and nature underlie the company’s operating principles and are 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 listed on the Nasdaq
OMX Nordic Exchange.

Some facts:
 1.5 billion Euros in annual sales.

 Approximately 3.6 million Consultants 11000 employees.

 A product range of approximately 1000 products.
 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.
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  Listed on the NASDAQ OMX Exchange since March 2004.
 Operations in more than 60 countries of which 11franchisees’.

Literature Review
GENERAL FINDINGS:
SWOT ANALYSIS OF ORIFLAME PRODUCTS

Strengths

1. Easily available products in residential areas, at parlors and sold by people whom
customers know and trust.
2. Release catalogues frequently with offers on products
3. Customers get help from sponsors who help them as a consultant choose product
according to their skin type, climate etc.
4. Established brand name for the last 43 years.
5. Provides natural beauty products through an independent sales force of over 3 million
people.

Weaknesses

1. Lack of promotional activities through mass media.

2. Depends on the network of individual sponsors on most of its distribution and
available in very few stores

Opportunities

1. Develop deeper distribution network

2.Expanding in rural areas
3.Investing in R&D, launch of new products through innovation

Threats

1. Aggressive price competition from local and multinational players.

2. Availability of cheap beauty products.

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 3. Presence of many established brands at one place in the stores thus giving
customers variety.

Data Interpretation
1. According to you which is the most important factor while
selecting cosmetic brand?

OPTIONS NO. OF PERCENTAGE

RESPONDENTS

Quality 26 52%
Price 12 24%
Availability 8 16%
Offers 4 8%

Total 50 100%

INTERPRETATION:

After analyzing the above table and figure it was identified that 52% of the respondents consider
quality as the important factor while selecting cosmetic product.

2. When do you use cosmetics?

OPTIONS NO OF RESPONDENTS PERCENTAGE

Always 5 10%
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 At parties & occasions 25 50%
Every time I go outside home 10 20%
Whenever I want to 10 20%
TOTAL 50 100%

INTERPRETATION:

From the above figure, it’s clear that out of 50 respondents ,10% respondents use makeup always
, 50%of them use makeup at parties and occasions, 20% respondents use makeup outside home
and 20 % of them use makeup when they want to use.

3. How much money do you spent on cosmetics in a month?

OPTIONS NO OF RESPONDENTS PERCENTAGE

Less than 500 12 24%

Between 500-1000 20 40%

More than 1000, less than 8 16%

1500

More than 1500 10 20%

TOTAL 50 100%

INTERPRETATION:

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According to the graph shown above, out of 50respondents,24% of women spent less than 500
on cosmetics in a month, 40% of them spent money on cosmetics between 500-1000, 16% spent
more than 1000 but less than 1500 and 20% of them spent more than 1500 on cosmetics in a
month.

4. What do you feel is the most important benefit of using

cosmetics? (Choose any 1)

OPTIONS NO OF RESPONDENTS PERCENTAGE

Better Skin 12 24%

Medical reasons 7 14%

Maintain young looks 18 36%

Others 13 26%

TOTAL 50 100%

INTERPRETATION:

According to the graph shown above, out of 100 respondents, 36% of respondents said that the
most suitable benefit of using cosmetics is young looks, 28% of women said because of better
skin, 14% of respondents use cosmetics because of medical reasons and 26% use it because of
other reasons.

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 5. What is the frequency of using Oriflame products?

FREQUENCY NO. OF PERCENTAGE

RESPONDENTS

Sometime 15 30%

Regularly 6 12%

Rarely 29 58%

Total 50 100%

INTERPRETATION:

After analysing the above table and figure, it was identified that majority of the
respondents i.e 58% rarely use Oriflame products.

6. What is the source of knowledge of Oriflame products?

OPTIONS NO. OF RESPONDENTS PERCENTAGE

TV 4 8%

Newspaper/Magazines 12 24%

Word of mouth 24 48%

10 20%
Internet

Total 50 100%

INTERPRETATION:

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 After analyzing the above table and figure it was found that majority of respondents i.e. 48%
got to know about products of Oriflame through word of mouth.

7. For what purpose you buy Oriflame products?

OPTIONS NO OF RESPONDENTS PERCENTAGE

Lip care 7 14%

Eye care 9 18%

Skin care 29 58%

Multiple reason 5 10%

Total 50 100%

INTERPRETATION:

After analyzing the above statement it was identified that majority of respondents’ i.e.58% say
that the purpose of buying Oriflame products is skin care.

8. Are the Oriflame products available at ease?

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 OPTIONS NO. OF RESPONDENTS PERCENTAGE

Mostly 25 50%

Sometime 14 28%

Rarely 11 22%

Total 50 100%

Interpretation:

From the above table and figure, it can be found that majority of the respondentsi.e 40% find the prices
perfectly priced.

9. How do you find the prices of Oriflame products?

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Highly overpriced 2 4%

Slightly overpriced 8 16%

Perfectly priced 40 80%

Under priced 0 0%

Total 50 100%

INTERPRETATION:

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 After analyzing the above table and figure it was identified that majority of the respondents
i.e. 80% find the prices of Oriflame product perfectly overpriced.

10.If given choice, which brand would you like to prefer apart from
Oriflame products?

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Avon 4 8%

Revlon 8 16%

Lakme 22 44%

Maybellin 14 28%

Others 2 4%

Total 50 100%

INTERPRETATION:

After analyzing the above figure and table it was found that if the respondents had given a
choice to switch the brand, majority of them would have chosen Lakme, i.e. 44% of the
respondents.

11. Would you like to recommend Oriflame products to others?

OPTIONS NO. OF PERCENTAGE

RESPONDENTS

Yes 45 90%

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 No 1 2%

Can’t 4 8%
say

Total 50 100%

INTERPRETATION:
After analysing the above chart and table, it was found that 90% of the respondents
would like to recommend Oriflame products to others.

12. Are you satisfied with the promotional schemes of

Oriflame?
OPTIONS NO. OF PERCENTAGE
RESPONDENTS

Yes 38 76%

No 4 8%

Can’t say 8 16%

Total 50 100%

INTERPRETATION:
After analyzing the above statement, it was identified that 76% respondents were
satisfied with the promotional schemes of Oriflame.

13. If Oriflame product is not available then what would you do?

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 OPTIONS NO OF PERCENTAGE
RESPONDENTS

Will buy some other brand 20 40%

Will never change my 10 20%

brand preference

Will wait for Oriflame to be 13 26%

available at the outlet as soon
as possible

Will postpone purchasing 7 14%

TOTAL 50 100%

INTERPRTATION:

From the above figure it is clear that out of 50 respondents, 20% will never change their brand
preference if Oriflame products is not available,26% of them will wait for Oriflame to be
available at the outlet as soon as possible ,40% of them will buy some other brand and 14% will
postpone buying the product .

CONCLUSION AND SUGGESTIONS

CONCLUSION
The present study comes to the floor with the revelations having exciting and full of curiosity
determinants in relation to the specified objectives to understand and analyze the 4P aspects of
marketing for Oriflame. Further the study helped in identifying the reasons which stops the
customers to buy Oriflame Products over other products and to understand customer Brand
knowledge with regard to Oriflame. As the study has been conducted, in the context of Indian
customers (where interviewed customers are from north-west Delhi), the investigation
perspectives have been thrown, conditioning the specified motives of Indian people, putting
aside the motives outside India. The research conducted was also helpful in identifying the
frequency of purchase and usage of the Oriflame products.
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Following are the few key findings of the study:

 After analysing, it was identified that majority of the respondents i.e 52% sometimes use
Oriflame products.
 After analyzing it was found that majority of respondents i.e. 24% got to know about products of
Oriflame through newspaper/magazines.
 After analyzing it was identified that majority of respondents’ i.e.58% say that the purpose of
buying Oriflame products is skin care.
 After analyzing it was identified that the majority of respondents i.e.50% say that the
product is easily available to them most of the times.

 After analyzing it was identified that majority of the respondents i.e. 64% find the prices
of Oriflame product slightly overpriced.

 After analyzing it was found that if the respondents had given a choice to switch the brand,
majority of them would have chosen Lakme, i.e. 56% of the respondents.
 After analysing, it was found that 90% of the respondents would like to recommend
Oriflame products to others.

 After analyzing, it was identified that 76% respondents were satisfied with the
promotional schemes of Oriflame.

 After analyzing it was identified that 52% of the respondents consider quality as the
important factor while selecting cosmetic product.

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SUGGESTIONS

 It needs to improve the QUALITY of the product so as to earn a large customer base
because 76% of the respondents feel that quality is the most important factor while
selecting cosmetic brand.

 Almost 5% people are happy with their current brand and do not want to switch to
Oriflame products thus it needs to make the customers aware of the products.

 Oriflame need to adopt different promotional mediums like internet, stores, product
binding schemes and even surrogative marketing.

 Introducing a low price product line for the rural market.

 Introduce herbal product lines as the customer is getting more inclined towards herbal
products.

 Make the consumers aware of all the products other than its flagship products like
eyeliners, lipsticks, gloss, and kajal etc.

 Improve upon online sales service in tier 1 and tier 2 cities taking the time constraint of
the customers in the picture.

 As boys are also becoming looks conscious so the male beauty segment can be one area
of focus

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 SAMPLE QUESTIONNAIRE
Dear Respondent,

This is a survey regarding the product analysis of Oriflame, so kindly furnish the correct
information. The information given will only be utilized for the research purpose only and not
any other purpose.

1. According to you which is the most important factor while selecting cosmetic brand?

a) Quality b) Price c) Availability d) Offers e) Other

2. When do you use cosmetics?

a) Always b) at parties c) Every time I go outside home d) When i want to

3 How much money do you spent on cosmetics in a month?

a) Less than 500 b) between 500-1000 c)more than 1000, less than 1500 d) more than 1500

4. What do you feel is the most important benefit of using cosmetics? Choose any 1.

a) Better skin b) medical reasons c) maintain your looks d) others

5 What is the frequency of using Oriflame products?

a) Sometimes b) mostly c) rarely

6 What is the source of knowledge of Oriflame products?

a) TV b) newspaper/magazines c)word of mouth d) internet

7 For what purpose you buy Oriflame products?

a) lip Care b) eye care c) Skin care d) Multiple Reasons

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8 Are the Oriflame products available to you at ease?

a) Mostly b) sometimes c) Rarely d) Never

9 How do you find the prices of Oriflame products?

a) Highly overpriced b) Slightly overpriced c) Perfectly priced d)under priced

10 If given choice, which brand would you prefer apart from Oriflame for cosmetics?

a) Avon b) Revlon c)Lakme d)Maybelline e)Others __________

11 Would you like to recommend Oriflame products to others?

a. Yes b) No c)Can’t Say

12 Are you satisfied with the promotional schemes of Oriflame?

a) Yes b) No c) Can’t Say

13 If Oriflame product is not available then what would you do?

A) Will buy some other brand.

b) Will never change any brand preference.

C) Will wait for Oriflame to be available at the outlet as soon as possible.

d) Will postpone purchasing.

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