Riding high on the recent judgement passed by the Delhi High Courtbarring e-commerce platforms Amazon, Flipkart and Snapdeal from selling their product, direct selling cosmetics brand, Oriflame plans to increase its marketing spend this year. “Last year we advertised heavily on the print medium, this year however, we may spend more on the television platform,” Frederic Widell, VP, head, South Asia, and MD, Oriflame India.
The company, which follows direct selling model, diverts 70% of marketing spend towards above-the-line (ATL) activities, such as print and TV, and the rest goes towards below-the-line (BTL).
For Widell, the cosmetic brand spends more on media and ATL activations to drive brand awareness. Out of the 70%, half is spent on the digital platform and the rest goes towards traditional media such as print and TV.
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Widell states, that Oriflame considers its salesforce, called consultants, as bearers of BTL activities. “We don’t have any BTL activities other than our consultant who, through word of mouth, spread our brand awareness. Our audience is more receptive to this sort of marketing as it is a friend who is informing them about a product rather than a celebrity, whose endorsement, audiences now take with a pinch of salt,” he added.
The company pays 25% commission to the consultants on every sale along with a bonus on the basis of sales. The commission as well as the bonus is part of the marketing spend.
At present, Oriflame has 500 products and issues 12 catalogues per annum. “Before, we used to have 800 products but we downsized with the aim to cater better to the needs of our consumers,” Widell added.
“We do not plan to open more centres as we have recently renovated four of our main service centres, which will cater to consultants,” Widell highlighted. The company has 20 service centres, pan-India, with five strategically placed warehouses to make product availability faster and direct to home.
The company, currently, has more than 30 lakh consultants across India. In 2018, Oriflame faced challenges in skin- and wellness-care market, owing to illicit sales of its merchandise online.