Oriflame Direct Marketing Strategy

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Summary

Airframe is a large direct marketing company with over 3.6 million sales consultants in over 60 countries, generating annual sales of around ?1.5 billion. They use a multi-level marketing or network marketing strategy, where independent sales consultants sell products directly to consumers and earn commission based on their own sales and the sales of their down-line group. This strategy has low distribution costs and offers a business opportunity to people. Airframe implements this strategy through various methods, including independent sales consultants, beauty parlors, face-to-face demos, samples, direct mail, and online catalogues. They also promote existing consultants to add more consultants and grow the sales network, which increases their loyal customer base as consultants buy Airframe products for personal and family use.

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It is one of the largest companies to sell through direct marketing through an independent sales force of over 3. 6 million sales consultants in more than 60 countries worldwide with annual sales exceeding some ?1. 5 billion. Network Marketing or Multi-Level Marketing (ML) is a strategy which allows the parent multi-level company to market and distribute their products r/and service, directly to the consumer by direct selling in a Nan-permanent retail location and grow the network through relationship referrals.

These sales are done through independent, unsteadied Sales Consultants (full time or part time) who represent the company and make commission based on the volume of sales. The sales consultants often build their own organization by recruiting a down-line of other independent distributors, who perform the same job; and as a result the entire organization expands. As a consultant they earn commission not only based on their own sales, but also on the entire sales of the down-line group.

This strategy has a very low distribution cost and also offers a leading business opportunity to people. This unique business concept – ‘Make Money Today and Fulfill Your Dreams Tomorrow’ goes with the brand promise of the company ‘Your Dreams, Our Inspiration’ Airframe implements this strategy with frequent regular catalogues along with frequent, short-term price promotions and cross-sell campaigns. The details of the strategy are as follows 1) Independent sales consultants team who directly get in touch with end consumers with hard copy of catalogue 2)

Marketing through owners of beauty parlous to increase customer reach 3) Face-to-face interaction with live demos about usage and benefits of the products 4) Samples at low prices or free samples with some purchase to try the product first and then purchase as buying expensive cosmetic products is a high involvement decision. 5) Direct mails to consumers which includes catalogues, offers 6) Online catalogue and offer details on company website. A typical online catalogue is as below 7) Promoting existing consultants to add more consultants and grow the sales outwork.

This also helps Airframe in increasing loyal customer base as consultants buy Airframe products for their personal use and for their family.

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