Business Case: Marketing Research for Customers Segmentation

12172 Words Sep 21st, 2011 49 Pages
To: Senior Management of Oriflame Belarus From: Marketing Manager XXX Date: 21/11/2010

BUSINESS CASE
Version Number: 1.0

Marketing research for customers segmentation

This document is confidential and has been made available to the individual to whom it is addressed strictly on the understanding that its contents will not be disclosed or discussed with any third parties with exception of the individual 's own professional advisers.

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Table of Contents

1 Executive Summary ............................................................................................................... 3 2 Introduction
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20 B. Audit ............................................................................................................................ 22

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1. Executive summary
Oriflame-Belarus grew rapidly for the last 5 years through providing existing sales force with a range of beauty products (mainly cosmetics) of mass-market segment. The last two years are characterized with declining of sales of Oriflame-Belarus and loosing 1.4% of market share. External objective reasons for seeking for roots of the problem in inadequate STP policy of the Company are: Cosmetic market of Belarus in very good growing. 6% per year is forecasted in 20112013; No one competitor lost such a huge market share in the period. Company did drastically changes in neither in marketing strategy nor in tactics. As a proof: advertising and sales support expenditures keep the same level throughout last 5 years. The customer information available in the Company says that retention level of customers is very good but average Sales per head are growing slower market. The attached business case has been worked out for Oriflame Belarus to outline the necessity to carry out a project on new segmentation of Oriflames‟ customers. The aim of the company is to understand and describe new trends in consumers‟ behavior, to create new consumers profile for father changes in STP policy. Data about consumers available
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