Marketing Strategy and SWOT Analysis of Oriflame

Oriflame Holding AG is a Multi-level marketing company founded in Sweden that deals with sells of beauty and personal care products. The company operates within 60 countries in the world and has a comprehensive income of more than 36.5 million euros. The brand offers makeup and skincare products for adults and ones for teens like creams for cleaning, moisturizing, and protecting. Other like products such as accessories or handbags are also available. The company has been founded to find anything he/she is seeking from one brand-store. I suggest to go through the marketing strategies of Oriflame and conduct a SWOT Analysis to know more about their success    story. 

Let’s see what are the vision and mission statements of Oriflame first.

Vision Statement

To be the #1 beauty company selling direct

The visionary of Oriflame company clearly reveals its purpose what it wants to be. Skin Care and Wellness are strategic product categories that drive sales and profitability, create brand value and loyalty, and increase productivity and income opportunities for the consultants. These are also categories that customers often need more help navigating in order to identify the products that meet their individual needs. Skin Care and beauty cosmetics aim to combine products that will assist in obtaining the best personal results.

Mission Statement 

Helping people around the world to fulfill their dreams is our mission and purpose. We do it by offering a comprehensive range of beauty products to our customers, focusing on skincare and wellness, created in Sweden. We also provide a unique business opportunity for people to build their own business as an independent Oriflame Brand Partners, selling our products and recruiting more people to sell.

The mission statement claims what they want to do for potential consumers, which is to make them happy by living up to their most desired aims. Also, the product portfolio is broad, which allows it to live up expectations of purchasers. But this is not the end: the company suggests a job for everyone who is good at recruiting and calling people to join the marketing team and have a good career opportunity. 

It’s time to discuss the positioning strategy of the company.

Here we witness a post from the Instagram Official Account of Oriflame where is depicted an apple shape colors of different cosmetics. There are also varieties of lipsticks and gel manicures for nails filled in the center of “the apple.” Girls will claim this is a portion of paradise for them. Others will say this is something magical is coming forward. Invention and curiosity are correctly addressing the brand Archetype of the Innocent. It stands for living without obstacles and difficulties, where certainty and predictability are highly valued. 

So what does the Innocent Brand archetype represent?

Core Desire: to live in paradise.
Goal: to experience happiness and positive emotions.
Strategy: complete tasks without mistakes, be inspired be perfection.

Messaging Levels:

Level One: desire to achieve simplicity, goodness and purity.
Level Two: faith and deep belief in trustworthiness, naiveness, objectivity.
Level Three: enthusiasm towards creativity and sophistication, innovative and critical thinking, positivity and renewal.
Level Four: unnatural sense of singleness, individuality and integrity.

The Innocent may be a suitable identity for the brand if

1. It is able to give answers to questions that are simple and easy identifiable
2. Has interconnectedness with positivity, goodness, morality, childhood and lucidity.
3. Is priced starting from moderate level to low.
4. Are produced y a company that works in consideration with straight-arrow core values.
5. There is keen desire to be differentiated at least by outer image.

Now, let’s make SWOT Analysis of Oriflame.

Strengths

• The company works since 1967 and has a strong presence in the cosmetics industry. Oriflame is one of the earliest established companies in the world that has done a thorough examination of skin issues and continues to manufacture skincare products that address those problems.
• Oriflame has a priority, which is the focus on natural ingredients. The company points out the vitality of organic contains and ensures its customers through products, such as against aging.
• The company gives potential consumers the opportunity to choose how they want to be consulted, via catalogs, direct selling, or online selling. In terms of direct selling, special Oriflame consultants will advise those who use word of mouth to explain and guide.
• The geographic presence in different regions can act as one of the significant roles of the organization. It ensures easy attainability and accessibility for buyers from other countries and regions. Furthermore, a strong presence on social platforms or only on the web gives them another opportunity to conduct purchases online, which is one of the most convenient shopping types. 

Weaknesses

• Oriflame’s working system is designed so that every single person can join and start selling and distributing their channels. This is, of course, an excellent way to obtain brand awareness; however, the process of recruitment is not being done as clearly as it could be by virtue of professional sales managers. The hidden fact here is that the consultants are mostly household or unemployed women.
• Sometimes the company seems uncompetitive because of being cheap and low grade. Nowadays, other, more sophisticated products address people’s concerns more effectively related to skin and body care and beauty facets. 
• Poor project management skills weaken the company’s progress because it challenges the chance of spreading the existing channels of prominence and distribution.  

Opportunities

• One of the great opportunities for Oriflame is the development through making distribution channels deeper. This means the company can devise seminars for evolving selling executives’ knowledge in the marketing sphere and gain experience from professionals. 
• There are hundreds of brands that have enormous amounts of products for different and narrower purposes. Oriflame needs to develop its Research and Development Department in order to get acquainted with what actually people want. In other words, changing and adding product portfolio will definitely affect positively on the brand awareness and turnover facets. 
• Another efficient way the company can evolve is to enhance its distribution channels to urban and rural or developing areas. This will assist not only the company to move further but also those communities and people living there.

Threats

• Price competition is one of the prior threats that can affect the company’s well-being. Many local and multinational companies offer more of those skincare and beauty products at more affordable prices. Here is an important nuance we need to acknowledge while we say price competition. It refers to the fact of cheapness or expensiveness and the effectiveness in terms of quality and price relationship. 
• Oriflame is considered to be a medium-priced brand that is near to cheap ones than expensive firms. The company actually has many competitors in terms of offering affordable products, such as Avon, Faberlic, Lakme, Amway, etc. 
• The shortage of skilled representatives of the company sometimes demotivates skilled ones to join the team and start their career or job in Oriflame. The probability of losing such employees is relatively high in companies where they are not chosen adequately. 

Now, let’s discuss the targeting strategies of Oriflame.

To do so, we need to watch the commercial example of the company below.

The advertisement hero is Russian model Natalia Vodianova, who attracts all potential customers to purchase the perfume because it contains a paradise inside immediately. We see she was walking nicely in a mystical building, where she suddenly found “the perfection” in a dark room. It was put there in the center of the room as a highly valued item where we also witness a bracelet-like thing shaping around the fragrance.

When it was touched and taken from the firmly caught place, it started to break everything around. However, the chaos created did not keep her from her goa: she finally sprinkled the aroma. 

What did the commercial was intended to convey? The target audience where the beautiful lady was an example of the group, for sure. What kind of characteristics did she have? Confidence, trendiness, and positivity. If you are already eager to know more about the segment of Carpe Diem, you are welcome to read further. 

Values and Beliefs

Carpe Diem is quite outgoing and lives for enjoyment. They like frequently going out with friends and fulfill their days with fun and curiosity together as they are used to buzz. The target segment highly values and gives importance to a promising career because it involves the opportunity of completing lots of tasks in life by virtue of good standing. Money is the first and foremost factor in why they study and work. Money indicates the chance of freedom and independence. One can do anything whenever he/she wants if he/she owns appropriate finance.

As independence is essential to Carpe Diem, they usually start a business and put almost all their efforts there. However, career advancement is not the only priority in their life. They also appreciate their family and usually find some time to sacrifice to family members. Being overall educated and developed individuality is one of their core desires and focuses. 

Shopping Attitude

Carpe Diem value modernity and sophistication. They always do their best to keep up-to-dated. They support welfare and high standards of living. The target segment is brand-oriented, and they still are fond of quality above quantity.

Brand loyalty is also firmly maintained by their choice to purchase an item. This comes from their experience, so whenever they try a product, and it is a good one, they never seek an alternative because once it was already treated. 

Doing shopping gives them a sense of pleasure where they can be self-expressed in their choices and mood. They always elaborate on the final point that they do not doubt in gaining the best product from the best store.

This affects their confidence positively. Carpe Diem is one of the first brand or right adopters, but they give special attention to the West’s newness. 

Other Interesting Facts

1. Carpe Diem regularly does sport at gym clubs because the shape of their body and health is more than significant to them. 
2. Carpe Diem is interested in cultural and art exhibitions. Reading books is also from their favorites to do things, but biographies attract them most. 
3. The representatives of this segment live for a day. They are risky and adventurous people who never cease seeking new challenges. 
4. Carpe Diem is attentive towards cars and like-spirited and fuzzy driving. 

16 Personalities (why do you need them in your business?)

Carpe Diems are one of the most powerful and solvent segments in 16 personalities. They always follow the trends of the given period and try to be the leader of the trend․ For example, be a successful businessman, or successful athlete or rapper. They are very talented, but at the same time are lazy and ambitious.

They love to achieve great success at the expense of their talent, their skills. You also should choose the right target (ideal buyer persona) for your business and in this context, you should research all 16 Personalities, 16 types of clients that you may meet during your daily business and marketing activity. To find out more about 16 types you can click below to get our e-book “16 Personalities”.

So much about Oriflame’s beauty and skin care brand. We discussed the marketing strategies of the brand by pointing out the targeting strategies and brand archetype and conducted a SWOT analysis of the company where we hope you found out the questions you were curious about to know. For more similar posts check out the main page of our website.