Increased catalogue frequency, focus on skincare and increased service levels
The company will sharpen the marketing strategy with increased focus on the dual customer offering of products and the direct selling opportunity. The increased catalogue frequency that has been introduced in some markets will continue, coupled with efforts to strengthen each catalogues selling power and layout. With market research showing higher projected growth within the area of skincare, Oriflame will leverage on the company's heritage, successful formulations and strong market positions within this product category in Western Europe.
New financial targets
Following a full business review of the group, the Board of Directors has adopted new financial targets:
Oriflame Cosmetics aims to achieve local currency sales growth of 5-10 percent per annum and within a five year period an operating margin of 15 percent.
Outlook 2005
As a consequence of successful initiatives during the first half year of 2005, Oriflame expects to report local currency sales growth in excess of 15 percent in the third quarter compared to the third quarter 2004.
As previously stated, a number of factors impact sales and margins in-between quarters:
- Effectiveness of individual catalogues and product introductions
- Effectiveness of recruitment programmes
- Timing of sales and marketing activities
- Number of sales days per quarter
- Currency effects
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