UNIVERSITY OF MUMBAI

(2018-2019)

A PROJECT REPORT ON

“DIRECT MARKETING OF ORIFLAME”

SUBMITTED BY:

SHIVANI CHATURVEDI
2505

BACHELOR OF MANGEMENT STUDIES

SEMESTER VI
(2018-2019)

SUVARNA RAIKAR

NAME OF THE GUIDE

Sadhana Education Society’s

L.S. RAHEJA COLLEGE OF ARTS AND
COMMERCE
Juhu Road, Santacruz (West),
Mumbai- 400054
 DECLARATION

I, SHIVANI SANJAY CHATURVEDI , the student of

Bachelor of Management Studies Semester IV (2017-2018)
hereby declare that I have successfully completed the project on
DIRECT MARKETING OF ORIFLAME for the academic
year 2017-2018. The project is done under the guidance of
Mrs. SUVARNA RAIKAR and this project work is
submitted in the partial fulfillment of the requirements for the
award of the degree of Bachelor of Management Studies.

The information submitted is true and original to the best of my

knowledge.

Signature of Student

SHIVANI CHATURVEDI
Roll No. 2505
 CERTIFICATE

This is to certify that Miss SHIVANI .S. CHATURVEDI, Roll

No. 2505 of Bachelor of Management Studies Semester VI
(2017-2018) has successfully completed the project on
Direct Marketing Of Oriflame under the guidance of
SUVARNA.M. RAIKAR for the academic year 2017-2018.

Mrs. SUVARNA. M. RAIKAR Dr.

DEBAJIT N. SARKAR
(Course Coordinator) (Principal)

Mrs. SUVARNA. M. RAIKAR

(Project Guide/Internal Examiner)(External Examiner)

 DIRECT MARKETING OF ORIFLAME

Executive summary

About the project

Within a short span of the last five-six years, the use of cosmetics by Indian consumers
has increased significantly with more and more women and men taking greater interest in
personal grooming, increasing disposable incomes, changing life styles, influence of
satellite television and greater product choice and availability.
This cosmetics and personal care industry has been growing at an average rate of 20 per
cent for the last few years. The growing Indian cosmetics market offers promising
prospects for international brands. The growth rate in the cosmetics market reflects an
increasing demand for beauty care products in India. Perfumes and fragrances, skin care,
and hair care products are some of the major segments with promising prospects for U.S.
companies.

Penetration of most cosmetic and toiletries is very low in India.

Current consumption of many products is well below that of many countries in Asia. The
low market penetration of many cosmetics and personal care products offers room for
growth.
The urban population with increasing purchasing power is the major force driving
demand for cosmetics and toiletries.
India’s import of cosmetics and toiletries and intermediate raw materials is around US$
120 million, of which the U.S. has a share of approximately 10 percent.
Plan of the project

Beauty is skin deep… and sure enough Oriflame understand it like no one does Today brand
Oriflame stand strong as one of the 100 most powerful brands and right fully so ,for its ‘the’
brand that lights up the face of million girls ,everyday. It’s a brand that inspires, motivate and
infuses confidence, colours, shades, brushes and tones to beautify have been the core attribute of
the products.
The challenge which the cosmetic industry has to break was the negative connotation of “being
fashionable’’.
Though the brand missed out on during the past year despite having roped top brand
ambassadors is that it scored low on promotional gauge. In the following project we basically
seeks to provide experiential marketing solutions to a brand (Oriflame) .We also gauge into
reasons that why Oriflame’s position as market leader was threatened when international majors
like Revlon and Maybelline entered the fray in the mid-90s.The research process was entailed by
visiting oriflame outlets in noida ,which includes the response received from target
audiences(Min age 19yrs- Max -45yrs) via through questionnaire for deeper insights.
 INTRODUCTION

Meaning Of Direct Marketing

Direct marketing is an advertising and marketing strategy distinguished by at least one, and
sometime both, of two characteristics. First, direct marketing targets likely consumers with ads
relevant to their interests based on demographic and individualized consumer data. Second,
direct marketing prompts the consumer to a specific action (to send in a form or call a telephone
number) rather than simply seeking to increase brand awareness. This "call to action"
distinguishes direct marketing from general advertising. Forms of direct marketing include:
catalog and mail order, product advertising direct mail, political direct mail, direct response
cards, coupons, infomercials, telemarketing, and e-mail marketing.

When direct-marketing is the primary subject of a collection this overview provides an abstract
of the collection and a link to the collection guide. For collections of which direct marketing
materials are only a small part, this overview provides a more specific description of the relevant
materials and their location, as well as a link to the collection guide. In some cases, a collection
contains only one or two relevant documents. They have been included in this overview because,
together, these documents provide the researcher with several writings, speeches, and essays on
direct marketing, usually by individual advertising agency executives.

Definition
‘Direct marketing is a very popular and widely used method of informing people about products
and services. It's a method of contacting customers and potential customers personally, rather
than having an indirect medium between the company and the consumer, such as magazine ads
or billboards that are seen by the general public. Direct marketing can take many forms,
including mail, telephone calls, emails, brochures, and coupons. The information is usually very
broad and meant for a general audience. Direct marketing works best for products that have a
wide appeal’.
Orientation Of Direct Marketing

Direct marketing, using catalogues was practiced in 15th-century England and Europe. The
publisher Aldus Manutius of Venice printed a catalogue of the books he offered for sale. In 1667,
the English gardener, William Lucas, published a seed catalogue, which he mailed to his
customers to inform them of his prices. Catalogues spread to colonial America, where Benjamin
Franklin is believed to have been the first cataloguer in British America. In 1744, he produced a
catalogue of scientific and academic books.
Meeting the demands of the consumer revolution and growth in wealth of the middle classes that
helped drive the Industrial Revolution in Britain, the Following the industrial revolution of the
late 18th-century, a growing middle class created new demand for goods and services.
In the 19th century, the American retailer, Aaron Montgomery Ward, believed that using the
technique of selling products directly to the customer at appealing prices could, if executed
effectively and efficiently, revolutionize the market industry and therefore be used as a model for
marketing products and creating customer loyalty. The term "direct marketing" was coined long
after Montgomery Ward's time.
In 1872, Ward produced the first mail-order catalog for his Montgomery Ward mail order
business. By buying goods and then reselling them directly to customers, Ward was
consequently removing the middlemen at the general store and, to the benefit of the customer,
drastically lowering the prices. The Direct Mail Advertising Association, predecessor of the
present-day Direct Marketing Association, was first established in 1917. Third class bulk
mail postage rates were established in 1928.
In 1967, Lester Wunderman identified, named, and defined the term "direct marketing".
Wunderman—considered to be the father of contemporary direct marketing is behind the
creation of the toll-free 1-800 number and numerous loyalty marketing programs including the
Columbia Record Club, the magazine subscription card, and the American Express Customer
Rewards program.
FORMS OF DIRECT MARKETING

1. Face to Face selling

2. Telemarketing

3. Direct mail marketing

4. Catalogue Marketing

5. Direct Response Television Marketing

6. Kiosk Marketing

7. Online Marketing and E-commerce

Now let’s discuss each and every one of them in details.

1. Face to Face Selling

Face to Face Selling is another term used for personal selling. It is a process
in which salesperson interacts with customer directly in order to sell the
product. Face to Face selling is marketing and selling product to customer
using his skills and marketing techniques. It can occur during a sales
meeting or in a retail environment. Face to Face Selling is considered as
cornerstone of sales. It can be done through presentations, persuasive pitch
or demonstrations. For major sales people like to meet salesman rather than
opting for telephonic or online buying It is the oldest form of direct
marketing or simply marketing in which the authorized sales persons are
employed by the organizations who meet the prospects directly. These sales
persons make efforts to reach the prospects, convert them into profitable
customers, develop long run relationships and hence promote the business of
their organizations.
2. Telemarketing
Telemarketing is that form of direct marketing in which telephone is used for the
purpose of communicating with the customers buys the products directly from the
sellers. Telemarketing is further divided into the following two types.

 Outbound Telephone Marketing

 Inbound Toll Free

Outbound Telephone Marketing

Outbound telephone marketing is used to sell the products directly to the customers
by calling them on the telephone.

Inbound Toll Free

In this type, orders are received from customers on the telephone as a result of ads
on television or radio etc. There are many customers who admire the unsolicited
telemarketing, but most of them feels disturbance by receiving such unsolicited
sales messages on the telephone. Therefore, certain legislation is being made for
the protection of people from this unsolicited telemarketing during specific hours
of the day.

3. Direct Mail Marketing

These forms of direct marketing include direct mail marketing in which an offer,
reminder, announcement or other things are sent to the address of a particular
person. Direct one to one Communication takes place in direct mail marketing.
There are several advantages of using direct mail marketing which are as follow.

 It is much more flexible.

 It is personalized.
 Selection of target market is high.
 The results are easily measured.

The cost of direct mail marketing is relatively higher than other forms of direct
marketing, but in this case the prospects are quickly converted into the potential
customers. Direct mail marketing is further divided into the following three types.
  Fax Mail
 E-mail
 Voice Mail

4. Catalog Marketing
In catalog marketing, catalogs are mailed to a specified list of customers or provide
physical catalogs to a group of people at stores in order to sell particular products.
A catalog is a combination of at least eight printed pages which includes details of
multiple products along with the identification of direct ordering mechanism. A
complete line of goods is offered through catalogs by some stores. There are many
direct retailers who place the catalogs of their product on the internet. The internet
based catalogs are passive in nature and therefore need to be marketed
electronically.

5. Direct Response Television Marketing

There are two forms of direct response television marketing which are as follow.

 Direct Response Advertising

 Home Shopping Channels

Direct Response Advertising

When infomercials or television spots are aired by the marketers, direct response
advertising takes place.

Home Shopping Channels

These consist of complete channels or programs that are specified in selling goods
or services.

In the coming years linkages with the internet technology along with the two sided
interactive television would transform the television shopping much sophisticated
from the current type and it would be regarded as one of the most effective forms
of direct marketing.
6. Kiosk Marketing

There are certain organizations that have sophisticated machines called kiosks,
which provide information about the particular products and have an effective
ordering mechanism. These kiosk machines are placed in the main area of the
cities like airport, stores and other famous locations. Some business marketers also
place their kiosk machines at the trade shows for the promotion of their products.
Moreover the merger of the real world with the virtual world of commerce is
making kiosks as much more online in nature. The example of this modern
technology includes the Gap interactive kiosk.

7. Online Marketing & Electronic Commerce

One of the effective forms of direct marketing is the online marketing & the
electronic commerce, which is carried out completely in electronics’ way. There
are online computer systems that connect the customers with the seller in an online
manner so that that can make transactions. Online marketing & electronic
commerce is further divided into the following two forms.

 Commercial Online Services

 Internet

Commercial Online Stores

The information and marketing services are offered by the authorized commercial
online service provider who charges a monthly fee for its subscribers. Example of
this type is America Online

Internet

With the advancement in the information technology field, now the old
commercial online service is replaced by highly most advanced internet which
serves as a basic online marketing channel. The internet is composed of a large
number of different networks of computers that are connected with each other. For
a meeting of sellers and buyers over the internet, World Wide Web serves as the
popular place of meeting.

Channels of Direct Marketing

Any channel / media which you can use to deliver a communication to a customer
can be used in direct marketing.

1. Magazines: Direct-response print ads in magazines must ask the reader to do

something by making a definite offer or request of the reader. Typically this means
sending in a coupon or bound-in reply card, or calling a toll-free number. With
well over 2,000 consumer magazines now being published, magazine ads allow
direct marketers to reach audiences with identifiable interests. In addition to
advertising heavily in special-interest magazines, direct marketers utilize mass
consumer magazines and take advantage of regional advertising space to target
specific audiences.
Direct marketers find magazines' long lead times, slower response, and scarcer
space than direct mail to be disadvantages. In some cases magazine advertising is
not as selective as direct mail or telemarketing.

2. Newspapers: While direct marketers advertise in magazines more than

newspapers, newspapers have some distinct advantages over magazines, the more
popular direct marketing medium. They include the variety of sections offered
within a newspaper, shorter closing dates, an immediate response, and broad
coverage of a large and diverse audience. Disadvantages include poor ad
reproduction and the limited availability of color. Editorial content can also have
more of an adverse effect on ad response than in magazines. In addition to
advertising in the regular pages of a newspaper, direct marketers also advertise in
freestanding inserts that are usually distributed with the Sunday editions of
newspapers.
3. Insert Media: These are marketing materials put into other communications,
like a catalog, newspaper, magazine, package, or bill.

4. Direct Mail: Direct mail is shipped to prospects depending on criteria like age,
income, place, occupation, purchasing pattern, etc. Direct mail consists of
advertising circulars, catalogs, CDs, pre-approved credit card applications, etc.
Some advantages of direct mail are: ideal for response, selectivity, and personal
impact, flexibility of format and timing and measurability.

5. Syndicated Mailing: The marketer may though make the mail himself but may
make financial agreements with other mail order businesses, to mail the offer under
their letterhead.
6. Email Campaigns: In the era of digital media, numerous businesses use email
exactly as they use mail. Circulating a message by email eliminates the expense of
printing and mailing, and thus is cheaper than a print mail campaign.

7. SMS: A lot of companies have started to use sms as a means to market their
products and services to customers. Laws and regulations forbid sales of phone
numbers, so mass texting arbitrarily are not allowed. Nevertheless, companies ask
consumers for their phone numbers and consent to text them with promotional
information. This is a fantastic approach to lure them to return or do more business
with you.

8. Social Media: A number of businesses have started using social media to

convey their messages. Consumers can link to your business and you can even
seek out potential prospects to “friend” or link. Broadcasting messages through the
network can help you tell others about events, sales, new releases, new services or
changes in your business.

9. Voicemail Marketing: It has surfaced out of the market prevalence of personal

and business voicemail systems. Voicemail marketing offered an economical way
to access people directly, by voice. Misuse of marketing uses of voicemail led to
loads of “voice-spam,” and motivated several states to pass laws regulating
consumer voicemail marketing. Lately, organizations have implemented guided
voicemail (a software in which pre-recorded voicemails are guided by live phone
callers) to achieve customized business-to-business marketing previously restricted
to telemarketing. Due to the fact that guided voicemail is employed to make
contact with only businesses, it is exempt from Do Not Call laws in place for other
kinds of voicemail marketing.

10. Direct Response Radio: In this advertisements include a call to action having
a certain tracking mechanism. Frequently, this monitoring mechanism is a “call
now” prompts with a toll-free telephone number or a unique Web link. Response to
the advertisement can be tracked in terms of calls, orders, sales, consumers, leads,
and profits which originate from the broadcasting of those advertisements.

Importance of Direct marketing To Consumers

Customers are time-starved, hassled, lonely, cynical and skeptical. Such customers
will not trust direct marketers, who have not branded themselves. It is important to
consider the state of society before designing direct marketing campaigns. Direct
marketing takes place when companies promote their products directly to potential
buyers and provide a method for them to make a purchase. Examples of direct
marketing include television infomercials, direct mail offers and Internet sites.
Direct marketing can provide buyers with several potential benefits

 Convenience
Buyers of products and services offered via direct marketing can often make
purchases from the comfort of their home or office. Since direct marketers make
use of online or print catalogs, the buyer can simply browse until he finds the
product he wants and complete the transaction by telephone or Internet and avoid
the hassle of shopping malls. People that respond to television and radio ads can
also complete their transaction with a phone call or a few clicks of a computer
mouse.

 No Salespeople
Shoppers who don't enjoy dealing with salespeople often prefer direct marketing
because there is no need for face-to-face interaction. Buyers can shop at their own
pace and take the time to conduct any necessary research without feeling pressured
to make a decision.

 No Middleman
Buying direct can mean dealing strictly with the manufacturer without the
intervention of a third-party retailer or distributor. This eliminates the price
markups added by a middleman, resulting in lower prices to the buyer. It may also
provide the buyer the opportunity to negotiate price.

 Customization
It can be easy for a buyer to customize the product or service to their exact
specifications through direct marketing. Product websites are available that allow
the buyer to actually design the product from scratch. This eliminates
 miscommunication or a lack of understanding that can occur between a buyer and a
salesperson.

 Special Offers
Buyers may have access to special offers that are only available through direct
marketing. For example, once a purchase is made, the buyer may receive additional
offers in the form of email coupons. Certain special offers may only be available to
those who peruse a company's website or respond to a television ad

Importance of Direct marketing To Marketers

 Find new customers. Direct marketing helps you build a list of new potential
customers. You can compile or purchase a database of customers who are likely to
buy your product or service.

 Target most likely customers. Are your customers generally females over 30
years old? Perhaps you’re targeting young adults or seniors. Direct marketing
companies can help you create lists to reach potential customers who are a good
target for your product or service. Communicate with existing customers for
repeat business or up sell. Some of your most important business comes from
repeat customers. Stay in touch with customers with direct marketing to promote a
special offer, promotion or event and let them know about other services.

 Direct marketing has quick production and turnaround. Commercial printers

offer fast turnaround time to get direct mail out to customers. An email can also be
created very quickly and sent out to customers.

 Advertise specific products, services, special offers and events. With direct
marketing, you control the message and offer.

 Branding your business can seem like an expensive notion, but by simply
creating a cohesive direct marketing campaign, you can create a recognizable
 company brand. Throw in a special offer, and you’ve combined brand with a call-
to-action!

 You can personalize for a better response. Variable data printing or VDP, allows
you to personalize each direct mail marketing piece. Addressing the recipients by
name and even printing messages based on the target audience offers better ways
for businesses and organizations to connect with customers. For example, you can
simultaneously be advertising an offer for makeup to females and ties for men.

 It’s cost effective. When you break it down by ROI, direct marketing is a cost
effective marketing solution. You know exactly how much you are spending to
reach each customer.

 Direct marketing campaigns are easy. With direct marketing you can choose
between postcards, letters, catalogues, transpromo marketing (marketing on billing
statements), email marketing and more.

Limitations Of Direct Marketing

1. Image factors. As we noted earlier, the mail segment of this industry is often
referred to as junk mail. Many people believe unsolicited mail promotes junk
products, and others dislike being solicited. Even some senders of direct mail,
including Motorola, GM, and Air Products & Chemicals, say they throw out most
of the junk mail they receive. This problem is particularly relevant given the
increased volume of mail being sent. (One study estimates the typical American
receives 14 pieces of junk mail per week.)39 Another predicts that by 2007
consumers will receive over 3,900 junk e-mails per year. In 2002 over 205.7
billion pieces of mail were sent in the United States alone.
Likewise, direct-response ads on TV are often low-budget ads for lower-priced
products, which contribute to the image that something less than the best products
are marketed in this way. (Some of this image is being overcome by the home
shopping channels, which promote some very expensive products.) Telemarketing
is found to be irritating to many consumers, as is "spam" or Internet junk mail. As
you can see in Ethical Perspective 14-2, other factors have also created image
problems for the direct-marketing industry.
2. Accuracy. One of the advantages cited for direct mail and telemarketing was
targeting potential customers specifically. But the effectiveness of these methods
depends on the accuracy of the lists used. People move, change occupations, and
so on, and if the lists are not kept current, selectivity will decrease.
Computerization has greatly improved the currency of lists and reduced the
incidence of bad names; however, the ability to generate lists is becoming a
problem.
3. Content support. In our discussion of media strategy objectives in Chapter 10,
we said the ability of magazines to create mood contributes to the overall
effectiveness of the ads they carry. In direct-response advertising, mood creation is
limited to the surrounding program and/or editorial content. Direct mail and online
services are unlikely to create a desirable mood.
4. Rising costs. As postal rates increase, direct-mail profits are immediately and
directly impacted.
5. Intrusive: Many people find direct marketing annoying and intrusive. This is
especially true of telemarketing and door-to-door sales. Some people dislike
marketing mail and consider it to be ‘junk mail’. If consumers find your marketing
tactics annoying it can create a negative brand association and make them less
likely to buy. This is more likely with less targeted campaigns.
6. Environment: Using leafleting or paper-heavy direct mail campaigns can be
bad for the environment. To avoid this, and any negative impact on your brand
image, use recycled materials or try email campaigns.

7. Low response rates: direct marketing response rates tend to be around 1-

3%.When you reach a consumer who isn’t interested in your products of services,
it wastes money and they are likely to find it irritating. Use more targeted lists as
opposed to sending out mass messages to minimize this.

8. Competition: It can be hard to make your messages stand out when the
recipient receives high number of marketing emails or direct mail.

9. Cost: Tactics like telemarketing and direct mail may have high financial and
resource costs.

10. Legal issues: There are laws relating to privacy and data protection in direct
marketing. You must ensure that your mailing list only contains individuals who
have consented to receive marketing messages from you.
 Benefits of Direct Marketing To Buyers
Direct marketing materials, such as Internet and physical catalogs, Web display
advertisements, email blasts, and fliers, allow the buyer of goods and merchandise
to do direct business with the seller. The elimination of the middle man in these
transactions extends the benefits of engaging in direct marketing beyond the seller
to the buyer in a variety of ways. A small business may benefit from direct
marketing as both the seller of products and the buyer of goods and services.

1. Ease of Purchase
Small businesses that engage in direct marketing help simplify the purchase
process for consumers while simultaneously reducing the amount of employee
effort required for each transaction. For example, the creation of an Internet ad
requires the business to pay an employee or contractor for the creation of the ad
and the purchase of Web real estate for the ad to rotate on. After this, the only
employee and customer contact needed is for customer support related to ordering,
queries or order fulfillment. When the business is the customer, the ease of
purchase experienced with telephone or online orders allows the company to save
time and money that would traditionally be spent seeking a needed item.
2. Relevant Products
Direct marketing picks and chooses the potential customers exposed to the
marketing materials based on the demographic most likely to purchase the product
or service advertised. A small business selling flowers and greeting cards may
receive direct marketing brochures focusing on new display cases and bulk flower
pots while it sends out fliers advertising Administrative Professional's Day
bouquets to other area businesses. In each scenario, products for sale are presented
to customers with a need for the goods. Providing relevant products to an
interested base increases the potential for high sales.
3. Research
A small business looking to make a major investment in goods or services benefits
when it possesses the ability to thoroughly research buying options. Catalogs and
landing pages for online ads provide detailed information on products and services
the buyer can use to determine if a particular purchase fits the needs of the business
or if a second option may be better. Since a salesperson is not involved in the
process, no pressure exists for the buyer to make an impulse decision that may not
best serve his company.
4. Money Savings
Small-business buyers may find that the direct marketing efforts of other
businesses helps reduce company expenses on key products. Many sales catalogs,
fliers and Web ads often feature coupons or savings code that allow the buyer to
save a specific dollar amount or percentage off a purchase price or provide the
buyer with an order upgrade or additional products. Likewise, the small-business
seller may find that similar incentives also encourage his own buyers to purchase.
In these instances, the seller receives a fast sale while the buyer acquires needed or
wanted products at a reduced

5. 24/7 presence:
Another advantage of direct marketing for customers is that they can shop
anywhere and time of day that they want as long as they have access to the
internet. ASOS are a click business which means that a business provides its
service and goods through the internet only. This means that there will be no stores
for the customers to visit and they will have to log onto the businesses website to
look at the products and to purchase them. The business will have a warehouse or
some other facilities where the products will be kept and the products will be sent
from here. Therefore ASOS operating hours will be 24/7 and this is a good method
of customer service. This is because it is easy and simple to do, it also provides
customers with convenience as they can shop whenever they want and they can
purchase anything they want to and this is at the comfort of their home. At ASOS
as well as operating 24/ 7 they have a customer care service which is operated from
the website 24/7.
6. Many ways to know previous customer experiences:
Today’s wise customer use internet and visit product reviews blog, watch review
videos and understand past reviews/feedbacks of sellers. Today, they don’t want to
invest money anywhere and on anything without confirming the actual ROI.
That’s how direct marketing helps them to take shopping decisions intelligently.
For example, if they want to buy a brand new laptop for the work range between
60,000 to 1, 00,000+ ranges, they will take 5 to 10 days to make the buying
decision. It’s because before investing that much amount they want to understand
every aspect in this case. They will watch their selected Laptop reviews on the
YouTube, Blog.

7. Availability of communication channels:

Effective communication is the number one method in direct marketing to grow
sales and to promote business online. And it’s possible through many things by
doing direct marketing.
For example, using chat/click to call/community form/customer support etc.
options on the business website, Google my business listing and Face book
business page is the most convenient way for customers. It’s’ a part of direct
marketing strategy. But it helps customers to communicate regarding products and
services. They can ask questions before and after buying. And customer support
can help them in real time.

8. Customers can stay in touch with product updates:

YouTube, Face book, Twitter and Blog are play big role in online advertising and
marketing. If you use any of these medium for direct marketing then it will help
customers to keep connected with you for future updates and newer version of the
application.
For example, you’re running a unstitched clothes shop/readymade garments shop
online or offline and update your social media pages regularly or whenever you
add new collection in the store website or shop.
It allows customers to keep their personality and appearance trendy and beautiful.
But it can be when they see and buy a new range of clothes. And who is that who
do not want to looks good. That’s why they like social media pages of brands. You
can do the same.

9. Personalized marketing content:

Search Engine Ads, Video Ads, Display Advertising, affiliate marketing and
sponsored posts and content etc. are personalized. It is targeted. It’s beneficial for
customers. Whenever they see any advertisement on the search engine, website,
YouTube, face book it is very much connected to them. It’s because direct
marketing allow business to target the particular category of customers based on
their age, interest, location and according to the search queries. So that customers
can see what they want to see, and get the solutions they are looking. It’s not only
save time and money but also provide great brand experiences.

10.Promotion
Another advantage of direct marketing is that the customers can find out about the
promotions taking place. This is because direct marketing enables businesses to
make changes to their website immediately and they are able to use a wide range of
graphics and multimedia which makes the advertisements more appealing and
therefore attract more customers. If customers are aware of the promotions that are
being provided by ASOS they may decide to shop there as they will be willing and
able to spend more money.
Also by using direct marketing businesses can use their websites to promote stores
that customers are able to visit, they can promote their brick and mortar presence.
This benefits the business as they are able to attract more customers which can
help to increase sale and revenue. It benefits the customers as they will be able to
use the website to find out the details of the stores and it is convenient for them as
it could save them time and effort. ASOS is a click business which means that they
only operate from the internet and the only premises that they do have is there
warehouse and offices. So promoting their brick and mortar wouldn’t apply to
them however the other things that they may promote is the wide range of products
that they sell and the different services that they are providing like forums..
 Benefits of Direct Marketing To Marketers

Good direct marketing campaigns focus on promoting a specific product or

service, and call on your customers to act - to receive further information, register
their interest, visit your website, and make a booking or a purchase.

Direct marketing gives you the opportunity to promote your products and services
directly to the customers who most need them. A good direct marketing campaign
will:

 help you build relationships with new customers

 test the appeal of your product or service
 tell you which marketing approaches reach your target market
 provide customers with compelling content they can share with potential
customers
 Increase sales.

However, direct marketing campaigns require careful planning and a clear

understanding of responsible direct marketing practice. Being aware of the benefits
and challenges of direct marketing will help you use direct marketing effectively.

1. Making the most of direct marketing

A well-planned direct marketing campaign can take you straight to your ideal
customers. Identifying the benefits of direct marketing will help you stay focused
on getting the most out of your direct marketing campaign.

2. Target your ideal customers

Using direct marketing allows you to target specific groups of customers with
tailored messages. By taking the time to research and identify the customers who
are most likely to need or want your products and services, you can focus your
marketing efforts where they have the highest chance of achieving results.
A well-targeted direct marketing campaign will also provide you with an accurate
understanding of how your customers are responding to your product and service
offers.

3. Market on a budget

Direct marketing that is targeted to a specific audience can help you set realistic
sales goals and improve sales results on a tight marketing budget. Businesses can
run effective and purposeful direct marketing campaigns at a fraction of the cost of
broadcast advertising.

4. Increase sales to current and lapsed customers

Most customers welcome contact from familiar business people who make an
effort to understand their needs and build a personal relationship. You can increase
sales to your existing customers by maintaining reliable customer records and
choosing simple, well-planned promotional tactics.

You can also use direct marketing tactics to re-establish relationships with
customers who haven't returned to your business in a while. Approaching lapsed
customers is an opportunity to rekindle sales, keep your customer records accurate,
and find out why your customers move on.

5. Improve customer loyalty

Direct marketing helps you build direct relationships with your customers. You can
personalize promotions, letters and offers to create an immediate link with your
customer and increase their personal connection to your business.

Many businesses combine direct marketing and customer loyalty strategies to keep
and build customer relationships (e.g. by sending birthday cards, discount offers,
invites to upcoming sales).

6. Create new business

When using direct marketing you can communicate directly with your chosen
target market and this should give you a better sales success rate than
communicating to the mass market, many of whom may not be interested in your
products and services.
If you use effective techniques for sourcing and finding new customers, you can
generate new customer prospects and grow your sales to new customers.

Direct marketing lets you adapt and respond to the needs of your market, and your
business. You can achieve fast and flexible sales results using direct marketing.
For example, you could use a direct marketing campaign to:

 boost sales of a particular product

 run out discontinued stock
 renew stale sales figures
 increase customer contacts
 directly follow-up on a promotion.

Word-of-mouth is the most powerful form of marketing. An effective marketing

campaign will provide customers with collateral about your business that they can
easily share with their friends, colleagues and family. This can generate new leads
for your business.

7. Test and measure your products and sales performance

Direct approaches provide direct feedback. Direct marketing is also a great way to
gauge your customers' appetite for your products and trial new products or
services.

Direct marketing also allows you to test new markets, review sales results, measure
the effectiveness of your sales and advertising tactics, and easily make adjustments
to your campaign. Each time you run a direct marketing campaign you should
monitor and review the results, using this information to improve the success of
your next campaign.

For example, if you mail 100 customers a catalogue with a discount voucher on the
back page and 20 customers bring this into your business to use, the campaign had
a response rate of 20%. By working out the cost of creating and mailing the
catalogue, as well as the profit you made from each customer that responded, you
can assess the success of your direct marketing campaign.
8. Cost Effective
When you don't have to pay a retailer a percentage of the sale, you are able to
retain more of the profits. Direct marketing tactics that use catalogs, website
funnels and coupons are inexpensive to start. Computers have also made
telemarketing easier with automatic dialers cutting down on the need for as many
telemarketers to keep dialing.

9. Personal Interaction
When you are working directly with the consumers, you are able to control the
interaction more effectively. This personal touch helps sell the finer points of your
products that a retailer might gloss over, because the retailer has other similar
products. When the customer is your customer, you are better able to survey him
and to determine other needs or ways to improve your product or service. Direct
feedback is extremely valuable, as is controlling the relationship yourself instead
of leaving it in the hands of a third-party retailer.

10.Measurable Results
Direct marketing on the Internet gives advertising companies measurable results to
report to their clients. Because Internet direct marketing typically requires the user
to respond in some way (clicking a link, entering a code, etc.), advertisers obtain
useful data that shows the strength of a campaign. For example, if a company uses
a banner with an offer that asks the user to click through, and the banner receives
few hits, the company can assume that the offer is not enticing or the banner is not
appealing.
 Growth in Direct Marketing

1. Market fragmentation has limited the applicability of mass marketing

techniques. Increased fragmentation has lead to the emergence of segments that are
smaller in size. Such consumer segments have finer, distinct sets of needs which
may not be fulfilled by the current offering of the marketer. Therefore, the
capability of direct marketing techniques to target distinct consumer groups is of
increasing importance.

2. The increasing supply of lists and their diversity has provided raw data for direct
marketing activities. There is large amount of transaction data available with
retailers and internet marketing companies that can be used to target individual
customers more accurately.
3. Sophisticated software allows generation of personalized letters, messages and
offerings.

4. Sophisticated analytical tools are available now that help companies to classify
and understand customers better. Households can be classified into types of
neighborhoods’ by using geodemographic analysis. For example, neighborhoods of
elderly people, or private houses or single people can be identified. These in turn
can be cross-referenced with product usage, media usage and lifestyle segments.

5. High cost of personal selling have led companies to take advantage of direct
marketing techniques such as direct response advertising and telemarketing to
make the sales force more effective. Direct marketing techniques generate leads
that can be screened by outbound or inbound telemarketing.
 Latest Trends In Direct Marketing

 Omnichannel Marketing

It is extremely important to make all your marketing efforts targeted. It is one of

the vital digital trends. It is becoming increasingly important over the years. It
would remain one of the most significant online business trends. The modern
marketing campaign has to be well-targeted and based on data. Data are crucial
as they guarantee that your strategies will be personalized. Data should be a part
of every campaign as customers are very sophisticated regarding data.
Remember that the major part of your client’s base is probably millennial who
are very tech-savvy. Many marketers understand the benefits of omnichannel
marketing and unified campaigns across different media. This drives a more
unified, collaborative effort between marketing partners and creative agencies.
The growth of demand in omnichannel marketing is one of the reasons our
strategy and creative services departments continue to expand and encompass
more direct marketing channels.

 Data for Targeted Marketing

Targeted messaging has been a big direct marketing trend over the last few years,
and it continues to grow without showing signs of stopping. Not only does data-
driven targeted marketing better resonate with a prospective customer and increase
the probability of a response, it is now an expected part of every campaign.
Consumers are becoming data-sophisticated and are interested in targeted, relevant
marketing. This is perhaps thanks to the fact that a growing number of millennial,
who are now in entering their prime spending years, are knowledgeable about how
data gathering works and expect it to be used to their benefit.

 Direct Mail

Despite worries from marketers that direct mail is becoming outdated and
undesirable, research is showing the opposite to be true. Not only are direct mail
volumes on a steady rise, but surveys are reflecting a desire for mail, citing the
credibility and – dare I say? – Novelty of physical mail as the reason for high
response rates. In fact, mail is expected to take a larger seat at the table due to the
first two trends listed, as direct mail is a great tool for connecting marketing
efforts, driving response through other channels and targeting specific audiences

 Brand storytelling

Brand storytelling is one of the hot trends in marketing. You have every reason to
make it a part of your marketing strategy. Brand storytelling gives you a “human”
face and voice. It helps you to reach potential clients; it evokes emotions and
encourages customers to share personal stories of their own related to your brand.
Any strategy you apply nowadays should be a combination of more traditional
techniques and new business trends. Digital trends can become a very powerful
and effective tool. However, you have no right to ignore direct marketing.
Incorporating the best features of different techniques is a win-win strategy. There
is no need to replace direct marketing with the latest business trends. What is the
way to do this right? Your direct mail can provide information about your online
marketing and the social media you use. Your website address should become an
integral element of any email you send - and it is not a mail marketing trend, it is a
feature which simply must exist. The same refers to landing addresses. Social
media are a great platform to talk to your customers. Conversation is important – it
strengthens the bonds of a brand with a client.

 Newsletters

Newsletters help your brand to be connected. Newsletters build community. They

lead to social growth. You can also use your newsletters for the popularization of
your social media channels. Do not forget about adding a call to action buttons to
the most used social media channels like Facebook, Twitter, YouTube, and
Instagram.
Newsletters can even drive traffic to your website. Just target your email correctly.
It will increase the level of sales, expand your fan base and will have a great
impact on your business. Another popular marketing trend is the use of video
streaming. Facebook gives its users an opportunity to stream online with the help
of Facebook Live. Video marketing will most certainly stay on the list of popular
direct marketing trends of 2018.
 COMPANY PROFILE

Introduction To Oriflame

Oriflame is a cosmetics company that sells high-quality natural

skin care and cosmetics products through Home Beauty Demonstrations or
Catalogues. Direct sales allow customers to get advice and inspiration from people
they know and trust. Buying direct is reliable and convenient. Being an Oriflame
Sales Consultant means unlimited income and career opportunities, personal
development and a sense of belonging to a friendly global community. Oriflame as
a company is characterized by a can-do spirit, a decentralized management and
a young and entrepreneurial atmosphere.
History

It all began in 1967 in a tatty two-room office in central Stockholm. We brothers

and our then partner, Bengt Hellsten, sat and talked one day about our dream. We
wanted to give people the opportunity to benefit from good skin care and attractive
cosmetics, and we wanted our products to be inspired by the natural beauty that the
world associates with Sweden.

Our concept was by no means an obvious contender for success. Not in the 1960s
and especially not in Sweden, where the anti-Vietnam War movement, the greens
and the student activists were at their height. “Care” was an important word at that
time, but it was not particularly associated with one’s own body and wellbeing.

The office was plain and uninspiring. In the middle there was a rickety ping-pong
table on which we packed our products for delivery to our sales consultants. They
were an important part of our business concept.. We had sales consultants all over
the country, and each and every one of them had the heart and ambition of an
entrepreneur. They wanted to be part of a revolutionary new business and earn
money from natural skin care.

We have come a long way from that tatty two-room office in Stockholm. We have
no plans to change the formula of our success. On the contrary, current trends
confirm that our 40-yearold business concept is even more appropriate now than it
was then. We are active in those parts of the world with the fastest growth rates,
and we are active in the market segment with the greatest growth of all – direct
sales.

It is with a mixture of satisfaction and caution that we look forward to the years
ahead. The goal is clear – Oriflame’s target is to become the world’s leading direct
sales cosmetics company. That journey has begun!

In conclusion, we wish to thank all of you who have at one time or another
supported us on our long journey – forward-looking investors and our fantastic
employees who develop, design, market and manufacture Oriflame products. But
above all, we would like to thank the generations of sales consultants and leaders
all over the world – our business partners – who, we are convinced, will still be
with us when we achieve our goal of becoming the world’s leading direct sales
cosmetics company.
Oriflame Product range
Skin Care

Skin Care is our core category as it helps to generate loyal customers who value
our expertise and technological achievements. Oriflame Skin Care brands are
targeting consumers of various age groups and price expectations. We are building
a consistent skin care routine inviting our customers to look after their skin from
the very first steps of cleansing to a special anti-ageing routine.

One can find easy-to-use skin care products for essential and everyday face care.
For those who are ready to spend more time on their skin care routine, they have
the choice of premium skincare products to suit different age groups and types
of skin. Sophisticated consumers will always find products which, apart from
innovative, natural ingredients, are effective due to their technological
achievements. Modern, up-to- date skin care packaging also adds much value tour
high quality products. Oriflame Skin Care is concentrating in particular on
developing strong segments, for moisturizers as well as anti-cellulite and anti-
ageing categories
  Colour Cosmetics

The world of colour cosmetics is not only about colours. Oriflame’s approach is to
enhance every woman’s natural beauty. Our portfolio offers a wide and
sophisticated range of products with enhanced formulations and trendy packaging.
We have products t0 suit every woman, every mood and every style. The new
limited edition triple core lipstick a special version of the world‘s first triple core
lipstick fusing caring balm, passionate colour and Dramatic gloss into one. The
result is lips that are softer, more beautiful and more impactful than ever before.
With avocado, jojoba oil, chamomile and vitamin E- now in lovable limited edition
packaging in five delightful new shades and featuring a special edition heart-
shaped core
  Fragrances

Nothing says more about a woman than the fragrance she chooses. Everywoman
should have her own signature fragrances scents that embody every aspect of her.
Why settle for just one signature fragrance when you can have onto suit your every
facet? Flowery, fruity, spicy, fresh or oriental—you‘ll find
your perfect signature scent in our family of feminine fragrances
Is there anything more potent and evocative than a scent? A fragrance can trigger a
smile, make you fall in love or set the mood. Your favorite scent can take you on
an emotional journey and transport you to your most cherished memories.
Oriflame offers a qualitative and wide fragrance portfolio ranging from exclusive
to the more moderately priced. All fragrances are developed in France, the heart of
perfumery, to ensure superior quality, innovation and performance.
  Personal & Hair Care

Personal Care includes body care, oral hygiene, foot care, hand care, sun care and
even baby care. Our extensive and high performance hair and body care products
offer you a variety of ranges to meet your daily needs. They are based on or
inspired by natural ingredients to make you feel clean, refreshed, healthy and
relaxed.
.

 Accessories

From hair brushes to handbags, sunglasses to sandals, toothbrushes to teddy bears,

make up bags to manicure sets, sarongs to scarves, candles to combs, not to
mention belts, pedicure sets, towels, bracelets, necklaces, earrings, toilet bags and
seasonal gifts, Oriflame has them all and much, much more!
 Wellness

Beauty is not just skin deep, it comes from within.

Wellness by Oriflame has been carefully designed in partnership with
Swedish scientists and nutritional experts to bring innovative, safe and high
quality wellness products that will protect your skin´s natural beauty and
help you achieve top performance.
 Direct Marketing Strategies Of Oriflame

1. Sustainability strategy

Oriflame have a vision to become a sustainable company. To achieve this vision

the company has a strategy that helps the business succeed by contributing to a
more sustainable planet.

Sustainability is part of Oriflame’s heritage

Since the very beginning the company have aimed to be “recognized for our
commitment” to the environment and have understood our own “responsibility as a
good corporate citizen” (Oriflame Values, 1969). Oriflame’s long-term
commitment to become a sustainable company is echoed across our business
strategy – is in values and Swedish attributes and also has a focus on using
ingredients from nature.

Oriflame’s business strategy is influenced in a number of ways:

All the operations should be characterized by trust and respect. This is the
foundation of the companies Values and Brand Attributes.

It means that company is open and transparent; we keep our promises and act
in a truthful and fair way, in our relationships and our interactions.

Oriflame’s aim to pursue long term growth by acting “as a good corporate
citizen by showing a strong sense of social responsibility and respect for
nature”.

One of the four key strategic brand attributes for the products is nature: “We
were one of the first companies within the direct selling industry to develop
products with ingredients sourced directly from nature. The inspiration from
nature and natural ingredients continue to play an important part in our
product portfolio”.
2. Personal Selling Strategy

In the context of direct marketing, selling is personal and involves interaction with
a prospect. This interaction can be at a distance e.g. over the telephone. However,
most personal selling is carried out on a face-to-face basis and this dimension is a
key strength of personal selling. Selling is more expensive on a cost-per-contact
basis, but sometimes there is no substitute for a personal approach as building
personal relationships is a key element in the context of customer care.

Consumers can benefit from direct selling because of the convenience and service
it provides, as it includes personal communication, demonstration and explanation
of products to a higher standard than in conventional retail outlets or through the
printed media.

The task of direct selling differs according to products or services being marketed.
In some situations it is more a matter of keeping customers satisfied and the task
then calls more for skills of personality and caring.

Oriflame Cosmetics uses freelance agents to visit people in their own homes and
demonstrate and explain the use of a range of beauty products. Direct selling
provides benefits to individuals who desire an opportunity to earn income and
build their own business. It also offers an alternative to consumers who want
something different from traditional shopping.

The company sales agent receives commission on any orders and the party
organizer usually receives a ‘free’ gift of some of the company’s products.

Oriflame has now departed from this type of selling, but many companies find that
party selling works for them including companies such as Virgin Vie (cosmetics)
and Anne Summers (adult products).
3. Direct mail Strategy

This is a strategy of using specially designed advertisements, usually in

newspapers and magazines, to invoke a direct response rather than a delayed one.
The most familiar type is the coupon-response press advertisement, in which a
coupon is provided that the reader may use to order the product or service or
request further information or a sales call. Other variants involve incentives to visit
the retail outlet immediately, such as preview invitations and money-off coupons.
Direct mail can also be used for direct response advertising.

Oriflame have to move quickly and keep up with the latest developments and
trends and invest in appropriate software and systems to stay ahead of the
competition.

Database marketing describes a way of organizing a company’s total marketing

and sales processes. It is broad and can impact through market research and
product development to customer service.

Accurate information about customers that is readily available can transform

marketing. It allows you to take information you have in your customer databases,
analyze it to find patterns like purchasing associations and relationships, and use
information that has been gained to produce and instigate better marketing and
sales programmes.
This means targeting specific groups with specific messages about products that
are important to them. This means more resources can be spent on prospects that
are most likely to buy, increasing the return on marketing and sales investment.
Proper use of databases gives marketing better tools through which to operate and
improves the effectiveness of marketing campaigns, allowing for the more
effective allocation and utilization of marketing resources.
4. Catalogue marketing Strategy

Catalog marketing is a sales technique used by businesses to group many items

together in a printed piece or an online store, hoping to sell at least one item to the
recipient.
Consumers buy directly from the catalog sender by phone, return envelope or
online using information in the catalog.
Some catalog marketers act as intermediaries between consumers and
manufacturers, while businesses with more than a few items create their own
catalogs.

 Online Catalogs
To save on the cost of printing and mailing and to allow retailers to update prices,
products and promotions more quickly, Oriflame put their products in an online
catalog.
The products are grouped and displayed in a similar fashion to a print catalog, but
consumers can sort items by price, category, manufacturer or other criteria.
These catalogs allow shoppers to purchase immediately, using a virtual shopping
cart and an electronic payment method.
For 93% of shoppers, visuals like images and videos are a key deciding factor in
the purchasing process. The company process images 60,000 times faster than text,
and 90% of the information that's sent to our brain is visual.
Which explains why catalogs are still more effective as a marketing tool than a
repetitive grid of products in a web shop?
This is something that oriflame understand really well. The vast majority send
catalogs to their representatives not only to inspire them but also their network of
shoppers.
Often however, that's where it ends. The catalogs, once printed and mailed out, are
either shelved or uploaded to the website as a PDF.
 Buying behavior is changing, people shop online and that goes for Direct Selling
reps too.
What the reps have going for them, is their one-to-one relationships with their
customers. After all, 90% of buyers are more likely to buy a product recommended
to them by friends, family or someone they trust. At it's heart, it's a word-of-mouth
industry.
Where other direct marketing businesses are often lagging, however is in making
their print catalogs as easily available in digital spaces as possible.

5. Membership Strategy

Sometimes, a prospective member fails to join because of an undesirable

membership structure. So Oriflame has worked upon it and came up with these
desired solutions:

Offer a free trial – Free appeals to everyone. Some members need to simply try
your program risk-free before making up their minds.

Offer short-term memberships – In addition to free trials, consider limited runs.

While this option may not be right for every organization, don’t feel like you’re
bound to the standard one year contract, either. You can offer six month
agreements, or even month to month.

Offer increment billing – Instead of billing all at once, offer to bill on

installments. For example, while the member may still be locked into a year
agreement, they’ll only need to pay every month.

Offer a guarantee – Guarantees go a long way into inspiring confidence. Stand

behind the touted benefits of your membership program by a money-back
guarantee.

Offer multiple tiers of membership – Not every prospective member will need
the full array of benefits. Consider portioning out your membership so that it
appeals to a wider group of people.
 Oriflame Conduct towards Direct Selling

1.Recruiting: The misleading, deceptive or unfair recruiting are prohibit

ed bylaw. The willing people are offered distributorship after explaining
thegenuine terms and conditions.

2 . B u s i n e s s I n f or ma t i o n : Or i f l a me p r o v i d e s i t s d i r e c t s e l l e r s t h e
i n f o r ma t i o n , which is accurate, complete and verifiable. The distributors are
given
elaborateexplanation about the business opportunity during training sessions to giv
ethem confidence.

3. Earning claims: All distributors are to set targets for themselves ad

decide the levels they want to reach. Thus, Oriflame gives
them opportunity to claim earn in proportion their efforts.

4 . Fe e s : Th e r e g i s t r a t i o n f e e s o f R s . 8 0 0 o n l y a r e c h a r g e d . Th i s i s
u n d e r t h e reasonable limits as set by he code.

5 .T e r mi n a t i o n : U n d e r t h i s t h e c o mp a n i e s a r e r e q u i r e d t o
b u y b a c k i n v e n t o r y, which include promotional material and sales aids
and kits at the cost to the direct seller less a deduction up to a maximum of 10
%

6.Inventory: Oriflame does not encourage distributors to place range

orders in normal circumstances. In fact they have a provision in the
order-processing package of reaching the quantity if it exceeds a limit of say 10
items.

7. Remuneration and Accounts: The code says

t h a t m o n e y o w n e d t o D i r e c t Sellers must be paid in commercially
reasonable time. Oriflame clears all accounts by paying the performance and
bonus checks till 25th of each month to all its distributors.

8.Training and Education: Proper training sessions a

r e a r r a n g e d f o r t h e distributors to make them apt with all latest changes
and improvements. They are regularly informed about the company
policies and performances via widely distributed monthly new letters.
 LITERATURE REVIEW

WHAT IS DIRECT SELLING?

Direct marketing is an important aspect of the strategic P; penetrating.

Direct selling is an ultimate crucial step in offering value to the customer.\

“The companies say that direct marketing identifies the unfulfilled needs
of the ordinary customers. The customer would rather be happy if he receives a
product of his choice with proper service person. They (customer) rather think that
direct s e l l i n g i mp i n g e s o n t h e c u s t ome r ’ s p r i v a c y a n d i n t h e e n d
t h e a p p e a l t o t h e customer is lost.

Direct selling- When a company bridges the last link in the genetic
value-chain between the retailer and the residence, and sells its products at the
customer’s door steps itself, the process of direct selling is complete.

Few years back any companies, believed that direct selling will not work in this
country for them or for them or of the customer. In the post liberalization
area, with the dynamic market conditions the importance of direct selling
is being r e a l i z e d a n d mo r e a n d mo r e c o mp a n i e s , a r e o p t i n g f o r
t h i s e x p e n s i v e b u t effective routs. In today’s market place the sales-
driven company must transit to a customer-oriented one.

“Smart companies” – do not just sell and demanding customers do not just buy.
 It all started with a small group/community of people coming up with the idea
of circulation of certain commodity on demand.

 The circulation area was limited to dose friends and relatives.

 A s o r t o f v e r b a l s a l e s p r o mo t i o n e n t i r e l y o n b a s i s o f f a i t h a n d
p e r s o n a l contacts.

 Gradually, the circle grew

 E.g. – Reader’s digest launched through direct selling where the magazineswere
available to customers by post on demand basis. It is only through this
method of circulation that an extensive network was established in the entire
world for the Reader’s Digest. Today it enjoys one of the largest circulation ’s
in the world.

 Bull worker- German Company (35 years.)

 Starting –ads in magazines. Still it is restricted to magazines ads, only

never s e e n i n a n y s h o p . To d a y i t i s a l s o o n e o f t h e mo s t
p o p u l a r G yms I t e ms a n d exercising machine.

 India only adopted this and one every popular coy came up with attractive
results-Eureka Forbes.

 Today, many companies have adopted the multilevel marketing model. These
are Amway, AVON, MODICARE, OFIFLAME, LBH, EUREKA FORBES.
After all, these companies have realized that, what could be more effective than a
face to face dialogue between a salesperson and a customer. In an environment
where the latter is utterly receptive- the home-whereby-the salesperson
has a complete control and attention of the customer’ which is very
important to communicate the attributes of the product

Direct selling is a very important technique in this complex and

com0eptitivemarket place. It encourages the salesman to go out and clinch a deal.
But at the same time direct selling could result in the lifelong loss of a potential
buyer, if it does not maximize customer value. The whole sale has to be
carefully planned and thought over even before making the first call at
a prospective customer, which is of course, not very easy always.

Because, it only takes a minute to clinch a sale but choosing the right
minute to contact the customer involves a day’s work for a direct marketer.
This is all the more necessary because the direct marketer is much like an
uninvited guest and, therefore, must ensure that he does not impost on
the customer’s time. Thus, direct sellers can offer additional value by placing a
premium on the customer’s time.

Times are changing and it is the ‘performance’, which is being valued today and
not just the product. So for companies like Eureka Forbes which has to introduce
and sell a concept not just the product direct selling was the best alternative.
For many cosmetic manufactures also the direct contact between
distributor ensures that the latter actually gets to experience how smoothly
a lipstick can be applied, or how oil free a moisturizing lotion.
Direct Selling, therefore, is notabout crude sales calls but a carefully crafted perfor
mance when the product’s value to the customer is directly

Even in the case of industrial products, the performance – over product

equation holds equality true in case of INDAL, which sells its aluminum
sheets directly. When its salesmen were trying, to introduce aluminum
applications, they faced resistance from automobile body builders.
They said, ‘aluminum applications was unfit to the used as a roofing
material sine it would get corroded by bird dropping and would, therefore,
lead to holes in the roof.

A desperate INDAL, salesman began carrying samples of aluminum

sheets with d a ys o l d b i r d d r o p p i n g s wi t h h i m t o pr o v e t o b u i l d e r s
that I N D AL ’ S sheets wo u l d n o t get corroded. Th e b us
ma n u f a c t u r e r s s t a r t e d r e p l a c i n g s t e e l wi t h cheaper and lighter
aluminum“It isthrough direct selling that needed flexibility can be mat”. Clearly, bf
ocusing our performance, and not first the product, the direct marketer can fully
demonstrate the value proposition to the customer.

Direct marketing companies have an advantage over conventional selling is that

the relationship between k he company and the customer starts
building even before a sale is made.
The salesperson has the satisfaction of generating a pool of goodwill because.
“A satisfied customer in our best salesperson”.
 Thus the evident advantages that direct selling have over conventional selling can
be summarized as :

ADVANTAGE STRATEGY

Flexibility By contracting customers at their

convenience rather than yours.

Demonstration Using the opportunities to conduct detailed

demos at customs at customer comfort and
before potential user and the buyer both.

Building Relationship Goodwill By satisfying a customer sight from 1st call

i.e. till the service giving stages.

Reducing confusion and saving time By giving personalized visits, customers

get attention and understand product
attributes clearly getting confused by other
products.

Multi-level marketing Using your customer to sell your product to

other customer by enlisting direct sales
agents from its customer basics.

A deal is closed immediately by reaching the By allowing salesperson to take pricing

customer directly. decisions to the spot when he can conclude
the deal immediately.
According to the World Federation of Direct Selling Associations, “Direct Selling
is the marketing of consumer products directly to consumes, generally in their
homes or in the homes of others, at their work place and other places
a wa y f ro m p er m a n en t r et a i l locations. Usually through
e x p l a n a t i o n o r demonstration of the products by a Direct Seller”.

The direct selling works on the basis of a distribution channel, which

relies on personal touch. Direct selling has some specific advantages for the
customers.

1. Provide time for family and relaxation with is becoming a scarcity

2. It provides convenience of ordering goods from home.

3.Others personalized service, demos, satisfaction and Customer

protection on as the most essential attribute.

2. PRODUCTS

D i r e c t s e l l i n g i s t h e a p p r o p r i a t e s t r a t e g y o f ma r k e t i n g f o r p r o d u c t
s o f h i g h performance items requiring detailed explanation or demonstration.
Some such products can be mentioned here where the direct selling has bright
prospects.
1 . C l e a n i n g s ys t e ms , V a c u u m c l e a n e r s .

2. Microwave ovens.

3. Kitchenware.

4. High quality cosmetic and toiletries.

5. Educational programs and multimedia items.

Direct selling can be broadly classified as Single Level, Multilevel or Party Plan.

S i n g l e L e v e l Di r e c t S e l l i n g :
A c o n c e p t , w h i c h a l l o w s o n l y o n e l e v e l o f distributors,
who are recruited directly by the company. This has been used in India for
years now.

Multi Level Marketing Network Marketing:

It goes beyond the conventional one level of distributors.
Each distributor can recruit many distributors
under,him who in turn can again further recruit more people under them and all
these wo u l d c o n s t it u t e a ‘ Do wn Li ne ’ o f t h e d i s t r i b ut o r s wh o
i n i t i a l l y jo i n e d t h e company. It is a relatively new concept in India.
Party Plan:
where the host/hostess organizes a party or a get-together at his/her house
or a venue with the purpose of demonstration the products collectively to the
group. All the participants are aware of the purpose of the meeting and they
share the interest. Orders are obtained during the course of the party or after the
demonstration/presentation of the products is complete.

Although single level and multilevel marketing concepts have been launched inInd
ia. Eureka Forbes, Modi Telstra, INDAL have been selling their products by
single level direct selling. Where s the companies like Amway, AVON Oriflame
and Modi care have adopted the multilevel marketing. The party plan concept has
yet to take off in a big way.

There is on thing common to all the methods of Direct Selling, which is ALL
OFTHEM ESTABLISH A DIRECT CONTACT between the
prospective customer and the company by cutting down the
intermediary steps of the conventional selling.
They direct selling concept has the following key points.

1.Truly entrepreneurial,

2 .Lo w/ n o c a p i t a l i n v e s t me n t

3 . ‘ Le a r n a b l e ’ p r o f e s s i o n .

By truly entrepreneurial nature it means that three is

an open opportunity for earning in proportion to the efforts. This can be
full fledged business provided all the necessary inputs, where very one is
his/her own boss.

There is practically on or very less capital investment is compared with any

other business at the initial stages. All one needs to do is to get the distributorship
with a very nominal fees and start the business, which brings results in
proportion to the efforts put in.

Then, thirdly it has a ‘Learnable’ nature as a profession. One learns as one carries
it on, from own experiences but there are a very few setbacks to be faced alone as
there is always a company backing the distributors
 INTERNATIONAL PERCEPTION TOWARDS DIRECT SELLING

On the International front direct selling has been always an important concept in
t h e ma r k e t i n g wo r l d . Th i s p r o mo t i o n o f t h e d i r e c t s e l l i n g
C o n c e p t i s t h e important objective.
To fulfill this objective the World Federation of Direct Selling
Association was established. Today the direct selling associations are
operational in 43 countries all over the
World. Th e d i r e c t s e l l i n g a s s o c i a t i o n s h a v e t h e principle objectives such
as:

1. Promote direct selling industry in the particular country.

2. Meet the collective need of the member companies.

3 . P r o t e c t t h e r i g h t s o f c o n s u me r s .

The World Federation of Direct Selling Associations ensures full protection to

consumers and assures ethical behavior among direct selling company
andcustomer through its cods of conduct. The member company should:

I)Respect the right of the consumers and promote a healthy

environment.

II) To serve with honesty, sincerity, and commitment.

MARKETING SYSTEM IN DIRECT LEVEL OF ORIFLAME IN
INDIA

THE PROCESS
For the first time, a form of direct marketing will be used as an alternative channel of
distribution and sales in this country. The innovative marketers are imported this unusual
channel of multilevel of marketing. Where the shelves in the country’s retail stores bare
over flowing already this new technique is outright to do something good to them.

What MLM supports are counting on is that Indian housewives will jump at the
opportunity to make money in their spare time decides being able to win friends and
influence people to use there company’s product.

The managing director of Modi care explains. “There is no large capital investments
required, no employees, no bosses, and best of all, no risk”

At Oriflame within a period of 10 months a network of 5000 distributors was built

initially when this concept was first launched by it in India . it sales of Rs 10 crores were
incredible. It targets between 50000 and 70000 distributors at projected investment of Rs.
7 crores for December 97.

How is all this achieved? This question comes to the mind the process behind reaching
these mind-blowing figures is not very complex. It starts the level of a simple Indian
housewife, who wants to do something new and exciting for her Own. She is the target
and promising distributor of oriflame products in the market. How? Yes, this question
need elaborate answer.
In the conventional channel the products moves from the manufacturer. To the stockiest,
wholesaler, retailer and finally to the consumer in network selling the product is not
available at any retail stores

SHOPS
RETAIL SALES TEAMS
ADVERTISING
WHOLESELLERS
STOCKIST CUSTOMER
TRANSPORT

DIRECT SELLING
 DISTRIBUTOR CUSTOMER

FACTORY

MLM Strategy is a form of direct selling where there is only one intermediately between
the company and the consumer, the “distributor”. This means that Oriflame works with
independent distributors who deal with the need customer and offer him or her direct and
personal service.

Oriflame setup a service centre in Delhi to recruit the first level of distributor.
These were the people usually known to the officials of the company and were called the
core group.
These distributors at the authority to recreate more distributors who are called the “down
line. So the chains goes on and it is multiplies

The distributor is expected to perform the role of a beauty consultant and important
objective of the training programme is to bring out the merits of selling a premium
cosmetic range to people who the distributors are comfortable with, so that the exclusive
and premium image of the product is maintained

The distributors once ready to enter the market and approach the customer has to proceed
in a systematic manner. The daily schedule (photographs).

The initial expected goal should be to service 20 regular customers this bring in the
income with the products being ordered b y an order from at the head office. The
company provided the credit facility .to all its distributors.

T extends a credit limit of Rs. 5000/- where product of worth of this amount can be
picked up and sold to the customers. Distributors price and sell product recommended
retail price.
There is a markup of 25% on all products purchased at the distributors price, so there is
an immediate profit of 25% of the very first sale . the payments are to be cleared within
the 1 month period for the products taken on credit.
DIRECT MARKETING FLOWCHART