Veronica from Prag, 15 years old

100 Euro she would buy alcohol
On a free day she riding her horse
In 10 years she will have a family
She doesn´t know what she is scared about...
She would like to go to Mallorca

Jacob from Prag, 16 years old

100 Euro he would buy cigarettes
On a free day he plays football
In 10 years he will work in a restaurant
Family makes him happy
He is scared of spiders
He would like to go to USA

Jacob from Prag, 16 years old

100 Euro he would buy cigaretts
On a free day he plays football
In 10 years he will work in a restaurant
Family makes him happy
He is scared of spiders...
He would like to go to USA

Lukas from Prag, 15 years old

100 Euro he would buy clothes
On a free day he plays football
In 10 years he will work as a bartender
Friends makes him happy
He is scared that his mother will die
He would like to go to London

Last Minute Sales - in the NON digital way!

In Prague they also have travel shops.

Simple, no light, lamps nor flashy signs and digital media to attract customers. Simple A4 peaces of paper in black/white on a large board - filling the whole display in the window!

Online internet penetration amongst the population is at most around 50% - online booking of holidays much smaller.

Oriflame – successful distribution & retention strategy

Why is it interesting to visit Oriflame?
- because cosmetics is the fastest growing private consumer goods in the Eastern part of Europe.
- Personal apperance and looks is definetely part of the experience economy

We are in the ”smiling products” business. Likewise selling holidays. The first words coming from managing director Magnus Holm who received us in the headquarter in Prague.
Immediately we “feel” the difference. The dynamic of the company and personalization of staff and customers (who are also somehow considered intermediaries selling Oriflame products).

Observations highlights:
* Multilevel marketing – experiences and people is the key
* Pyramide-model (normal consumers also the main salesforce – paid 30% commission)
* Emotions and closeness to local community are the driving forces for selling
* 80.000 mainly women are both customers and sales force
* Oriflame strongest in the country side (more difficult in big city Prague)
* Online orders are 57% - rest is directly face to face sales. (in Finland 99% online)
* More “homecomsumers” in Tjeck Republic than any other country in the World
* Local famous Tjeck model used as the “face” in all marketing & charity woork. Swedish faces do not work well in marketing – too natural looking….
* High potential for growth amingst the new generation
* Language skills the main barrier in most consumer markets in Tjeck republic. Has to be local language
* Population is withdrawn, unsecure and lacks self confidence (history of the country heavy influence still)
* Younger generation >20 years have a more positive view on the future – potential for Oriflame
* Mass media advertising necessary in the future – to meet the competition from international brands
* Emotions – the key USP for Oriflame (smiling products)

Interview highlights

The three most important trends long termed
1. Cosmetic business infrastructure development (international brands entering the market place)
2. The community driver: Both web 2.0 and local fysical environment (mouth to mouth)
3. Expected growht in “skin care products” – 12% pa

Consumer behavior change
1. New generation more open & selfconfident
2. A hidden “force” within the population waiting to break out…Huge effect on consumption
3. The influence of mass marketing will put the current distribution model under pressure – but it will remain.

Industrial framework changes
1. Advertising change – foreign brands coming in investing in mass media.
2. The salary development I Tjeck Republic is high (10% pa) puts the Oriflame distribution model and margins) under pressure

Innovation in Oriflame
1. 80.000 creators around the country! Free to invent all sorts of happenings themselves
2. Fysical meeeting amongst people the most important thing
3. Innovation brainstorming book used every day: “Six thinking Hats”.
4. Many meetings with the consulents ca. 100 people. Round tables discussions, It council, Crystal Ball, Top Club etc.

The importance of corporate culture & values?
1. Culture & Values THE MOST IMPORTANT THING
2. Ethical values made by the founders (still valid)
3. Charity important
4. Incentive trips & happenings (4000 people have just spend 5 days in TFS)
5. Successstories with personal faces!

Our visit to oriflame raises the question:
Is Oriflame a symbol of the ANTI trends towards the e-com based society & community?
Is the fysical enteraction and meeting amongst people becoming increasing important in a digitalized society?

In the States they have Starbuck - in Germany they have Balzac Coffee

The story of a selfconfident German woman who decided to copy paste the most successfull coffee-bar concept in the World: StarBuck. She formed her own chain of coffee bars in Berlin, Hannover, Hamburg and Lübeck called Balzac Coffee.

She did it well. Exepct for the branding colours being brown and golden – this is a true copy of a Starbuck shop. From interior design to the uniforms and service concept. The product portfolio has a few differentiated specialities like different milk products (Soya milk, lactosefreie milk etc.)

An example of an American and worldwide superbrand being transformed into a German national brand. Even the staff talked perfect "american"...

Zlata from Prague, 22 years old

100 Euro she would buy school books for. 1000 Euro she would give to someone who really meeds them

A free day she studies or does some sports. She would NOT watch TV.

In 10 years she want to work within law (which she studies) and have a family.

Nice weather makes her happy.

She is scared of negative people.

She would like to travel to India and other places with interesting culture.

German youths in Prague

They are both 16 and touristing in Prague.

For 100 Euro they would shop and eat if getting 1000 Euro they would save half of it and shop for the rest. A scoter says the guy.

A free day they party

In 10 years they want a job and a carriere, the guy would like to have a family when he is 26.

Being with friends makes them happy.

She is scared to die and he is scared for people he is in trouble with.

They want to travel to USA and Russia.

Observation - Behaviour of Check people

We find the Check people very direct in their manners. They are rather closed up and we are sorry to say that we find their service poor. To some extent we believe this has to do with their English language skills as the Check people fluent in English tend to be more open minded.

Hotel Josef

This is a a award winning hotel. We are most satisfied with our berakfast which has everything you ever could wish for in the first meal of the day. What catches our attention the most though is the little jogging map we find in our rooms showing 3 different jogging routes, from short to a really long one, in Prague.

Using Beyoncé

A German newspaper writes about the success Sony has earnd using Beyoncé in their campaigns. But it is also stated that companies (record lables) use to little of these stars.

Brand packaging company Cocoon

We meet with Petr Baca, MD and founder of Cocoon.

Most important trends in his business is: 1, The importance of design is growing. 2, Fads change faster. 3, Better selection of well qualified people is needed (need of foreigner competence.

The consumer will become more selective and demanding, he says that companies will have to learn to react faster. His company constanly work with innovation in relation to design.

According to Petr company culture is no. 1 priority for a service company (as he sees them selves) as this is what you "bring".

We start to discuss the Check people and he consider them conservative, he thinks that they will evolve and there is an ongoing internationalization but that they will stay conservative.

Worth to notice is that he says that the country could be called "The island with no religion" and that they have a 50% divorce rate.

Environment exhibition

Down town Prague with it’s stage like houses and milieu we stumble on an exhibition about ecology. Among tourist restaurants and a shopping mall we get thrown back into reality again.

Sport / bech resort in the middle of Prague

We find a beach in the city centre. Available for young people. We take a taxi and from no where a “beach resort” pop ups. This is an area for the whole family to relax and spend a day. You have play ground areas, splash pools for small children, beach volley ball field, area for soccer and Boule and loads of bars and restaurants. The “resort” is called a sports club and an entrance fee is charged. We come here to observe youths but we find people in all ages. What strikes us as amazing is that we find a beach in town.

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