Oriflame cosmetics report free essay sample

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. -POOJA PATEL (1240) Brief facts †¢1.5 billion Euros in annual sales †¢Approximately 3.6 million Consultants †¢7900 employees †¢A product range of approximately 1000 products. We will write a custom essay sample on Oriflame cosmetics report or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page †¢Co-founder of World Childhood Foundation. †¢Global RD centre with more than 100 scientists †¢5 own production units in Sweden, Poland, China, Russia and India †¢Listed on the Nasdaq OMX Exchange since March 2004 †¢Operations in more than 60 countries of which 11 franchisees LIST OF COUNTRIES IN WHICH IT DEALS Competitors In BRAZIL Avon Mary Kay Oriflame, whose products are marketed by 3.5 million representatives selling from their homes, gets about 55 percent of its revenue from former Soviet  republics. To compete with larger rivals, such as Avon and Mary Kay Inc., Oriflame also wants to expand into new markets in Asia. Malaysia, Laos and Cambodia will likely be added in the next five years, In Russia AVON ïÆ'ËœThat’s just what Swedish cosmetics giant Oriflame did to tout its products and recruit sales representatives in Russia, much to the surprise of its biggest competitor, U.S.-based Avon Products, Inc. ïÆ'ËœThe two cosmetics companies have being going head to head over the Russian market since Avon arrived in 1990. And while the Russian economy has had its ups and downs in recent years, it was still a $3.3 billion-dollar market in 2010, placing it at No. 8 in Direct Selling News’ ranking of billion-dollar markets. ïÆ'ËœBoth companies continue to implement business strategies that vie for the coveted cosmetics market, which accounts for one-third of all direct sales in Russia. Oriflame is focusing on attracting more men while Avon is appealing to the traditionally female-dominated sales force by supporting breast cancer screening and campaigning against domestic violence. In India Avon India, Jafra Ruchi Cosmetics, AMWAY Global Supply of products †¢Supply and distribution planning with our suppliers and sales companies. Supply planning plans more than 600M units annually from more than 50 suppliers worldwide and the distribution planning plans globally to our 60 markets in 5 regions. †¢Logistic control the smooth delivery of products. †¢They have responsibility of goods distributions from supplier to hubs and from hubs to market (customer). †¢They also ensure that the markets receive correct products, in the correct quantity, at correct time with correct document all in good condition. Oriflame’s relationship with society †¢Culture- common culture is an invisible bond; it has the power to unit, enthuse and lead people over borders and boundaries that might otherwise separate them. The Oriflame culture gives each person the freedom to set their own. †¢Belief in others, we have given millions of people the  opportunity to change their lives for the better- an opportunity that many have taken to achieve their dreams. †¢We have given people in Russia, Europe, Asia, America, south Africa and opportunity to start their own business, often in countries where the freedom to do targets, income and working hours. FUTURE PLANS As stated in its second quarter 2013 report, Oriflame announced it is fully committed to increasing sales and efficiency within the group. As such, the company is announcing a number of proposed initiatives to be implemented in  2013 and early 2014. These initiatives aim to shorten time to market, increase the effectiveness of catalogues, sales campaigns and back-office functions and find synergies of global indirect purchases, and are expected to lead to annual cost savings in the range of 15-20 MEUR. â€Å"Oriflame’s entrepreneurial culture is one of our core assets. Following the international expansion over the last decade, we now need to adjust our working processes in certain areas to reach our full potential. These initiatives will make Oriflame a more agile, entrepreneurial and professional organisation, and will enable us to meet market demands and, ultimately, enhance sales,† comments Magnus Brà ¤nnstrà ¶m, CEO and president of Oriflame Cosmetics. After the successful launch of the improved remuneration plan for Oriflame consultants in the CIS (the Success Plan), Oriflame will also put additional focus on driving sales in the EMEA region. 1.New sub-regional structure of the EMEA organization—Based on market similarity, market maturity and consumer characteristics, four new and further empowered sub-regions will be created: Central Europe, Western Europe, Turkey and Africa. This implies that the existing EMEA regional organization will be downsized. 2.Improved set-up of EMEA catalogue development—Catalogue creation and production for EMEA will be relocated to the new sub-regions, thus ensuring better catalogue relevance to local market preferences and tailored response to the consumers’ needs. Measures to enhance efficiency in the group include: 1.Clear split of responsibilities—To ensure a high level of entrepreneurship and quick responses to market demands, while creating synergies in the organization, the company has redefined and clarified the roles and responsibilities on the global, regional and local levels. 2.Globalize purchasing initiatives in the indirect expenditure area—Oriflame already has a global purchasing organization focusing primarily on direct spend related to cost of goods sold as well as international conferences. By further globalizing the purchases related to indirect spend (traveling, offices, external support and marketing activities), Oriflame can reduce the overall costs while at the same time keep ongoing activities unchanged. 3.Extend the existing Global Shared Service concept and streamline back-office functions—Oriflame has in recent years successfully implemented the Global  Shared Service concept in IT, finance and parts of HR administration. Oriflame will continue this process, which will enable the group to drive a more effective back-office organization, in relation to both costs and response times. Facing the Future With JDA To help manage its fast-growing business, Oriflame turned to JDA Software. Previously, the company had conducted approximately 95 percent of its work in Excel or via email. The company wanted to automate its inventory planning processes to ensure that its actual orders were connected to the forecast. The company embarked on a journey to improve its service levels, and create direct alignment from its suppliers through to its multiple distribution lanes, hubs and worldwide markets. After evaluating three other software vendors, Oriflame selected JDA. â€Å"We were impressed by JDAs future product development plans, financial strength, client references and the collaborative business relationship we could have,† said Marc Weber, supply planning process expert, Oriflame.