CHAPTER I

INTRODUCTION
Section - A
1.1

General Introduction:
Market:
The word market is derived from a Latin word Marcatus which means

Merchandise or trade. It is a place where business is conducted.

Generally market is referred as a place where there are three elements
buyer, seller, and a commodity. Any place where these three elements are available
that would be called a market.
The marketing activity is an economic activity concerned with the
creation of place, time and possession utility and it involves the exchange of goods
& services.
According to American Marketing Association, Marketing is concerned
with the people and the activities involved in the flow of goods & services from
producer to consumer.
Direct Marketing:
Direct Marketing is a channel agnostic form of advertising which allows
businesses and nonprofit organizations to communicate straight to the customer,
with advertising with techniques that can include cell phone, text messaging, Email, interactive consumer websites, online display ads, database marketing, fliers,
catalog distribution, promotional letters, targeted television commercials, response
generating newspaper/magazines advertisements and outdoor advertising.
Amongst its practitioners, it is also refer to as direct response.

Direct marketing is the use of consumer-direct channels to reach and deliver

goods and services to customers without using market middlemen, wholesalers,
advertisers and retailers. Direct selling can be conducted one-on-one, in a group
or party format, or online. According to the World Federation of Direct Selling
Associations (WFDSA), 87 million people, roughly the population of Vietnam,
are part of the global, direct-selling sales force. Direct sellers around the world
have $132 billion in sales annually.
Direct marketing is a channel-agnostic form of advertising which allows
businesses and nonprofit organizations to communicate straight to the customer,
with advertising techniques that can include cell phone text messaging, email,
interactive consumer websites, online display ads, database marketing, fliers,
catalog distribution, promotional letters, targeted television commercials,
response-generating

newspaper/magazine

advertisements,

and

outdoor

advertising. Amongst its practitioners, it is also referred to as Direct Response.

Direct marketing messages emphasize a focus on the customer, data, and
accountability. Hence, besides the actual communication, creation of actionable
segments, pre- and post-campaign analytics, and measurement of results, are
integral to any good Direct Marketing campaign. Characteristics that distinguish
direct marketing are:
A database of names (prospects, customers, businesses, etc.), often with
certain other relevant information such as contact number/address, demographic
information, purchase habits/history, company history, etc., is used to develop a
list of targeted entities with some existing common interests, traits or
characteristics. Generating such a database is often considered part of the Direct
Marketing campaign.

Marketing messages are addressed directly to this list of customer and/or

prospects. Direct marketing relies on being able to address the members of a
target market. Addressability comes in a variety of forms including email
addresses, phone numbers, Web browser cookies, fax numbers and postal
addresses.
Direct marketing seeks to drive a specific "call to action." For example, an
advertisement may ask the prospect to call a free phone number, mail in a
response or order, or click on a link to a website.
Direct marketing emphasizes track able, measurable responses, results and
costs from prospects and/or customersregardless of medium.
Direct marketing is practiced by businesses of all sizesfrom the smallest
start-up to the leaders on the Fortune 500. A well-executed direct advertising
campaign can prove a positive return on investment by showing how many
potential customers responded to a clear call-to-action. General advertising
eschews calls-for-action in favor of messages that try to build prospects
emotional awareness or engagement with a brand. Even well-designed general
advertisements rarely can prove their impact on the organizations bottom line.
The demonstrable result of Direct Marketing is the reason for its increasing
popularity.
Measuring the results of direct marketing
Whereas it can be difficult to measure the effects of advertising or sponsorship,
in contrast, direct marketing is totally accountable. With any direct marketing
campaign, you can calculate a break-even point - the number of sales you need
to make to cover the cost of the marketing. In addition, you can work out the
cost per response and the actual return on investment.

This simple analysis will enable you to tweak your campaigns in order to
improve your results. You can also identify those that are most responsive and
target them again in future.

THING OF BEAUTY IS A JOY FOREVER

Beauty has a universal language that transcends all bars at caste, creed &
religion. Every Woman has an image of how she wants to look and image which
she wistfully sighs over. Every worm nurses a fervent desire, for a glowing
complexion, sparkling eyes thick lustrous hair, smooth well-manicured hands, all
combined together to create a beautiful whole. The desire for a beautiful look can
be fulfilled with some education a dash of Skills, lot of patience and above all an
urge to experiment and innovative.
Cosmetics are preparations used to change the appearance or enhance the
beauty of the Face, skin and hair. Cosmetics are the substances and preparations
not including soap, that are applied to the human body for cleaning, beautifying,
promoting attractiveness or altering the appearance. Cosmetics were originally
used as an adjunct to religious ritual, and the ceremonial aspects were gradually
lost as both men and women, adorned themselves with cosmetics.
Cosmetics have become a lot more acceptable today than they were some
years ago.
Cloths may have been integral to mans transition from the Stone Age to the
modern times, but the transition from the late 20 th century to 21st is not without
help cosmetic creams and cleansers. As technology grew, more and more
chemically were made known. These factors influenced the raise of numbers of
industries in this field. Now the situation is that the cosmetic industry is in a
boom and at present it surely is an area where can bank in over cash.

1.2

Specific Introduction:
The study of cosmetic and perfumery forms a continuous narrative

throughout the history of man developing as he developed. The origins are

Associated with fighting, hunting religion and superstition; later with medicine;
Then a knowledge increased becoming dissociated from medicine and allied to
Pharmacy. In the 16th and 17th century books omitting cosmetics and devoted to
Perfumery were printed.
Interestingly, the study and preparation of essential Oils developed
separately in the wine, cordial and beverage industry with the Beginnings of the
science and distillation, in the 16th century. Today cosmetics And perfumery exist
with technologies of their own. The scientific bases of these are supported by the
many new researches in chemistry and especially in Bio- chemistry of the skin
and bodily functions.
Importance:
The heart of the business success lies in its marketing. Most aspects of our
business depend on successful marketing. The overall marketing umbrella
covers advertising, public relations, promotions and sales. Marketing is a
process by which a product or service is introduced and promoted to potential
customers. Without marketing, our business may offer the best products or
services in your industry, but none of our potential customers would know about
it. Without marketing, sales may crash and companies may have to close.
About Oriflame:

Oriflame is a leading beauty company selling direct. We are present in

more than 60 countries, of which we are the market leader in more than half.
Oriflame has its origin in Sweden with corporate offices in Switzerland. We offer a
wide range of high-quality beauty products as well as a unique opportunity to join
our sales force and start your own business.