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Analysis: Marketing

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Analysis: Marketing
T 1.2 Introduction
Oriflame is a Swedish beauty selling company, which offers over 1.000 different products such as skin care, cosmetics, fragrances, personal and hair care, and other wellness products. Oriflame operates in more than 60 countries in the world, besides it is the market leader in more than half of those countries. Oriflame’s first entries were in Northern Europe. After settling in those Scandinavian markets, Oriflame expended in other European countries such as the United Kingdom, Spain, etc...; in South America such as Mexico and Argentina; and in Asia such as China, Thailand, Vietnam etc.

We did realise a huge and potential market for Oriflame, which is the United States of America. In our opinion Oriflame should expand its market to the United States of America since it’s a direct way to achieve Oriflame’s CEO’s - Magnus Brännström - goal: “Our vision is to be the best, to be number one in the world selling beauty product direct”.

In our report we will focus on handling the different problems and challenges that might occur when entering the US market.

1.3 Problem proposal

How could Oriflame increase its market share with the US market?

● Why is it worth/beneficial to breach the US market?
People in the US are in an average more wealthier than people in Europe, which gives them the opportunity to spend more on natural quality products. On the other hand it is the biggest cosmetic and toiletry consumer in the world, therefore it’s definitely worth entering this market as well.
● What kind of competitors are we going to face in the US market?
Currently there are two big competitor companies present in the US. market. They are AVON (US), and FABERLIC (RU). We are going to analyse the market, identify different threats and opportunities and drive a conclusion about the best strategy to overcome the competition.
● What are the advantages and disadvantages of the MLM system, why would we keep using it?
The



Bibliography: Sources of theories: Kotler Philip & Keller Kevin Lane, 2006, MArketing Management 12th edition, New Jersey

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