The Marketing mix of Oriflame analyses the 4Ps of Oriflame, including the Product, Price, Place, and Promotions. Oriflame Holding AG is a public limited company of Swedish origin. It is associated with the FMCG sector as a personal care brand. The company was founded in 1967 by its co-founders and brothers, Robert of Jochnick and Jonas af Jochnick. Oriflame is a multinational company that has successfully created a well-deserved brand name. It faces competition from the following.
- Plantain
- Beraca
- Carpe
- Living Proof
- Parfex
- L’Oreal
- Amway
- Avon
About Oriflame
- Type: Multi-level marketing company
- Industry: Personal care
- Founded: 1967
- Founders: Jonas and Anders af Jochnick, Bengt Hellsten
- Headquarters: Stockholm, Sweden
- Area served: Over 60 countries worldwide
- Current CEO: Magnus Brännström
- Number of employees: Over 3.6 million independent brand representatives
- Major products: Cosmetics, skincare, haircare, fragrances, nutritional supplements, and home fragrances
Table of Contents
Oriflame Product Strategy
Oriflame is one of the leading global beauty companies related to personal care, nutritional products, and accessories. It offers a diversified portfolio of innovative and natural skin care products and an opportunity to start a business. Its product range includes more than one thousand products.
Oriflame offers a diverse range of products in its mix.
The new Product Mix of Oriflame in 2023 is as follows (Source).
- Skincare Products: These include cleansers, toners, moisturizers, serums, eye creams, and various treatments targeting specific skin concerns like aging, dryness, oiliness, or acne.
- Makeup: Oriflame offers various makeup products, including foundations, concealers, powders, blushes, eyeshadows, eyeliners, mascaras, lipsticks, and lip glosses.
- Fragrances: The company produces fragrances for men and women, ranging from everyday scents to more luxurious and extraordinary perfumes.
- Personal Care: This includes products like shower gels, body lotions, hand creams, deodorants, and oral care items.
- Hair Care: Shampoos, conditioners, hair treatments, and styling products are part of their hair care line.
- Wellness: Oriflame also offers wellness products like dietary supplements and health foods, focusing on beauty from within.
- Accessories can range from beauty tools (like brushes and applicators) to fashion accessories and jewelry.
It’s important to note that the availability of these products can vary by region and country, and Oriflame often updates its product range with new launches and discontinues older lines. Checking their official website or catalog would be recommended for the most current information.
Oriflame Place Strategy
Oriflame is an international brand that operates via its headquarters in Stockholm, Sweden. The corporate offices are in Luxembourg and Switzerland. It has spread its product presence in nearly sixty countries, including the United Kingdom, Poland, China, Bangladesh, Nepal, Germany, France, United States, India, Indonesia, and Russia, and continents like North America, South America, Africa, Asia and Europe.
Its production units are established in India, Russia, China, Poland, and Sweden. It tries to manufacture locally to lower its production costs. The company has employed nearly one hundred scientists in its R&D facilities. Its marketing research and product development center is in Dublin, Ireland.
Here’s the place strategy of Oriflame.
- Direct Selling Model: Oriflame primarily utilizes a direct selling approach, where independent consultants market and sell products directly to consumers. This method fosters personal relationships and allows consultants to offer personalized advice and demonstrations.
- Online Sales Platform: Alongside traditional direct selling, Oriflame embraces e-commerce, allowing customers to purchase products online. This approach caters to the growing trend of online shopping and reaches a broader audience.
- Global Presence with Local Focus: While Oriflame operates in over 60 countries, it emphasizes local market needs and preferences in its product offerings and marketing strategies, ensuring relevance in diverse cultural contexts.
- Training and Support for Consultants: Oriflame invests in extensive training and support for its consultants, equipping them with the skills and knowledge to effectively market and sell products in their respective regions.
- Catalog Marketing: The company regularly releases product catalogs, both in print and digital formats, which are key tools for consultants to showcase the latest products and offers to customers, facilitating the direct selling process.
Oriflame Pricing Strategy
Oriflame boasts of a staggering annual sales figure reaching 4 billion Euros. It has targeted women from urban cities looking for a better product from the safety of their home or a trusted salon as its target customers. The company has positioned itself as a provider of natural cosmetics. The brand has launched some basic products to include men as its potential customers.
Oriflame faces aggressive price competition from both multinational and local players. The company offers premium products and has adopted a product line pricing. Its prices are at par with good and reputed brands of international fame.
This gives it a strong and niche place in the consumer market that connects it with the elite class. Distinctive brands target different product segments, and to counter their efforts, Oriflame has adopted a pricing policy dependent on geographical factors.
In places like India, it has adopted reasonable and affordable pricing, whereas it has kept a premium pricing policy in European countries. Oriflame has also adopted a promotional pricing strategy that offers incentives and price discounts at intervals.
Oriflame’s pricing strategy is a sophisticated blend of market-driven and value-based approaches carefully designed to position the brand in the competitive beauty and wellness industry. Here’s an analysis of their strategy:
- Value-Based Pricing: Oriflame sets prices by evaluating the perceived value of their products to consumers. Often seen as high-quality, their offerings incorporate innovative technology and natural ingredients, justifying a premium over basic beauty products. This approach resonates with consumers who seek quality and efficacy.
- Competitive Pricing: While maintaining a premium image, Oriflame monitors the competition. They strategically price products to remain competitive within the beauty market, ensuring they’re within reach of their target customer base while still reflecting the brand’s premium status.
- Psychological Pricing: The company often employs psychological pricing tactics, setting prices just below a round number (e.g., $19.99 instead of $20). This technique, common in consumer goods, makes prices appear significantly lower and more attractive to customers.
- Promotional Pricing: Oriflame frequently uses promotional pricing strategies, such as discounts, limited-time offers, and bundle deals, to drive sales and attract new customers. These promotions are particularly effective in the direct selling model, creating urgency and encouraging larger orders.
- Segmented Pricing: Since it operates in diverse global markets, Oriflame adapts its pricing strategy to suit different economic conditions and consumer purchasing powers. This segmented approach ensures affordability in lower-income markets while maintaining higher prices in more affluent regions.
In summary, Oriflame’s pricing strategy is a well-calibrated mix of value perception, price competition, market competitiveness, psychological tactics, promotional dynamics, and geographical segmentation. This approach reinforces their brand positioning and maximizes market penetration and profitability.
Oriflame Promotion Strategy
Oriflame depends heavily on word-of-mouth publicity for its brand endorsement. Its workers and satisfied customers are its sponsors who publicize the brand with their efforts. The company depends heavily on its direct sellers as marketing managers and has opened centers for training consultants.
It has created ad campaigns around its tagline Your Dream – Our Inspiration. Oriflame has launched its product catalog, which its independent consultant offers to its customers as part of its promotional activity. Several celebrities and famous personalities are attached to this brand to create brand loyalty and visibility in the consumer market.
Kalki Koechlin was roped in to launch an ad campaign, A Beautiful Change. Sonali Bendre and Huma Qureshi have also been attached to promotional tactics for Oriflame India. The company offers discounts and incentives at periodic intervals as part of its promotional package.
Oriflame has created ad campaigns shown via television channels in some countries. The company also advertises via social media platforms like YouTube, Instagram, and its website. It has 9.59 million and 30.95k followers on the Facebook page and Twitter account, respectively.
Oriflame is an active participant in policies that are environmentally and socially beneficial. It supports several charities and has co-launched The World Childhood Foundation via its CSR initiatives.
Some Recent Video ads and Print ads for Oriflame are:
Liked this post? Check out the complete series on Marketing Mix
