Business Orientation starts at 2:00pm

Business Orientation Meeting

Course Outline

• Company Profile• Company Vision• Facts on Fragrances• Company Products• Marketing Plan and Ways to Earn• How to become an Independent Business Distributor• Starter Kit• Global Business

FM GROUP WORLD

2007 FM GROUP WORLD Wroclaw was founded 2010 FM GROUP WORLD already expanded in 55 countries

Established in 2004 as initiative by Artur Trawinski in POLAND and it has a line of exclusive perfume products

COMPANIES behind

OUR PRODUCTS

Founded in 1995 by Andrzej Trawinski

Polish company manufacturing perfumes, perfumed waters and toilette waters in many scents for men and women

June 2008, New factory in PSARY, close to WROCLAW was opened

International company creating high quality fragrance compositions

FRAGRANCES

Founded in 1911 by Dr. Bruno Stropa

Has 43 branches worldwide including France, Italy, Austria, Switzerland, Russia, USA, Brazil, China and Australia.

Some of their well known clients are L’Oreal, Escada, Beiersdorf and Perfand which produces perfumes for FM Group World

COMPANY

FM GROUP Fragrance Inc.

First branch of FM GROUP WORLD in Asia

Founded and co-owned by Piotr Barszcz, General Manager

August 2010, the company introduced a new and unique line of EAU DE PARFUM 50 world’s best seller fragrances, new look for 50ml exclusively made for the Philippine market.

Our VISION

To become the Fragrance company of choice that offers the best Marketing

plan/Earning opportunities and to become a world leader in the production

and distribution of perfumes by continuously producing top quality

products at affordable prices.

The word perfume used today derives from the Latin per fumus, meaning "through smoke". Perfumery, or the art of making perfumes, began in ancient Mesopotamia and Egypt 4000 years back and was further refined by the Romans and Persians. In Europe it came in the 14th century. Hungary produced the first modern perfume in 1371.

Modern perfumery began in the late 19th century with the commercial synthesis of aroma compounds such as vanillin or coumarin

Facts on Fragrances

Perfume is a mixture of fragrant essential oils and aroma compounds, fixatives, and solvents used to give the human body a pleasant scent.

Image is everything, and a particular perfume will have an image associated with it.

Image with style…

Facts about Fragrances

• Perfume is a 35 billion dollar industry!!!

Perfume - most potent and expensive form with 25-40% of fragrance oil. Apply sparingly as its concentration means more intensity on skin and lasts for 9-16 hours.Eau de Parfum - 18-25% of fragrance oil, the rest is alcohol and water and lasts for 6-9 hours.Eau de Toilette - lighter fragrance with 8-15% fragrance oil and lasts for 4-6 hours.Eau de Cologne - 5-15% of fragrance oil and lasts 2-4 hours

Mist - Increasingly popular nowadays as all over body spray with 3-7% fragrance oil and lasts for 1-2 hours. Can be applied lavishly. Storing them in the fridge increases its cooling effect.

Splash and after Shave – 1-3% of Fragrance Oil and lasts 30 minutes- 1 hour

FormFragrance

Concentration %Hours to

last on skinPERFUME 25 to 40 9 to 16

EAU DE PARFUM 15 to 25 6 to 9

EAU DE TOILETTE 8 to15 4 to 6

EAU DE COLOGNE 5 to 15 2 to 4

PERFUME MIST 3 to 7 1 to 2

SPLASH & AFTER SHAVE 1 to 3 .30 to 1

Form Sample FragrancesPERFUME

EAU DE PARFUMEstee Lauder Beyond Paradise for Women; YvesSaintLaurent Elle for Women; Prada L Eau Ambree for Women

EAU DE TOILETTEChristian Dior Poison for Women; Kenzo Flower For Women; Hugo Boss Grey for Men; Davidoff Coolwater for Him;

EAU DE COLOGNERoyal secret by Royal secret for Women; Tommy Hilfiger Boy; Liz Claiborne Spark for Men; Arsenal Arsenal 1886 for Men

PERFUME MISTDove Ultimate go fresh Body Mist; Victoria's Secret Kissing in Paris Sheer Fragrance Mist; Perfect Man Alternative Glacial Mist

SPLASH & AFTER SHAVESecret Scent Expressions Ooh La La Body Splash; CHRISTIAN DIOREau Sauvage After Shave Spray

Top notes: The scents that are perceived immediately on application of a perfume. Also called

the head notes. Middle notes: The scent of a perfume that emerges just prior to when the top notes dissipate. They are also

called the heart notes. Base notes: The scent of a perfume that appears

close to the departure of the middle notes. Base notes bring depth and solidity to a perfume. Compounds of

this class of scents are typically rich and "deep" and are usually not perceived until 30 minutes after

application.

Apply fragrance on the warmest areas such as the back of the knee, crook of the elbow, neck and decolletage(chest/breast area) as scent is activated by body heat.

When trying out new scents, limit tests to 3 or 4 at a time. The nose gets numb with more and you get "nose fatigue".

Fragrance has two enemies: light and heatStore fragrance out of direct sunlight to maximize a scent’s lifeStash seldom used fragrances in their boxes and in the refrigerator.Sprays last longer than splash bottles because our bacteria bearing fingers never make contact with the juice.

How do we sell fragrances: It is best to know the different

personalities of our fragrances and our customers

• There’s a fragrance for different occasions• There’s a fragrance for different

personalities• Understanding the customer’s personality

and lifestyle and matching his/her needs with what’s in the line helps encourage multiple purchases

About the FM Perfumes

What does this mean to you? It means that our perfumes last longer

FM Perfumes have recognisable similarities to other leading brands

– and are far less expensive

Unlike branded names which is Eau De Toilette (3% – 8%

concentrated)

FM products are Eau de Parfum (16% concentrated)

Why are designer perfumes so expensive?

(A) Manufacturer

Consumer

(B) National Wholesaler or Broker

(C) Regional Wholesaler

(D) Retailer

(A) – (D) = MASSIVE COSTS

Rentals, Bank Rates, Insurance, Staff, Profit

Margin, Shipping, ADVERTISING,Celebrity endorsements etc Distribution costs can account for up to 90% of the final price paid by the customer.

Why our prices are so low?

RETAIL TO MAKE A PROFITIndependent Distributors Consumer

X X

XFM markets their unique product range to consumers using Independent Distributors They pay substantial commissions for producing product sales from team buildingThe savings enable FM to produce the same or better quality than the „high street” at rock bottom prices

GET YOUR RETAIL PROFIT IMMEDIATELY

P780P880P910

P990

P1100

How does one Earn?

Magnolia ProgramOrchid Program

MAGNOLIA PROGRAMME

Group Volume Points are based on the sales of your ENTIRE TEAM each month.

FOR EVERY BOTTLE

18.36 pts.

Cumulative in a month

23.50 pts.

One bottle of perfume P480 = 18.36 points

LEVEL3% 6% 9% 12% 15% 18% 21%

MAGNOLIA SILVER MAGNOLIAGOLDENMAGNOLIA

The commission is based on the sales of your ENTIRE TEAM each month.

The bigger your team is, the higher percentage commission you get.

17 bottles x 18.36pts = 312.12 pts300 points = 3%

Classification Achievement Level

Group Volume in points

No. of Bottles

Amount

MAGNOLIA3%6%9%

300 – 1,1991,200 – 3,5993,600 – 7,199

17 – 6566 – 196

197 – 392

Php 8,160.00 – 31,200.00 31,680.00 – 94,080.00 94,560.00 – 188,160.00

SILVER MAGNOLIA

12%15%18%

7,200 – 11,99912,000 – 20,39920,400 – 29,999

393 – 653654 – 1,111

1,112 – 1,633

188,640.00 – 313,440.00314,920.00 – 533,280.00533,760.00 – 783,840.00

GOLDEN MAGNOLIA

21% 30,000 and above

1,634 784,320.00

You36.72

Personal Points

697.68Group’s Points

Daniel146.88pts.

Christie110.16pts.

Sarah146.88pts.

Paul73.44pts.

Carol183.60pts.

Daniel’s GroupPV 36.72ptsGV 146.88

Level 1 (3 x 36.72) = 110.16 + 36.72 146.88pts

You36.72

Personal Points

697.68Group’s Points

3%Your commission: 697.68

pointsx 3% x 17.40 = Php 364.18

Achievement

Level

Conversion

Factor

Personal Sales for 2 Bottles 2 x 210 = Php 420.00

Total Earnings = Php 784.18

Thus PHP364.18 is your additional commission based on thevolume of products sold by you and your group.

For example

7,100 p. – 9%

4,800 p. – 9%

1,800 p. – 6%1,500 p. – 6%

1,300 p. – 6%

16,500 + 36.72 = 16,536.72 – 15%

6%

6%

9%9%

9%

4,800 x 9% x 17.40 = P 7,516.804,800 x 6% x 17.40 =

P 5,011.20

7,100 x 9% x 17.40 = P 11,118.60

7,100 x 6% x 17.40 = P 7,412.40

1,800 x 6% x 17.40 = P 1,879.20

1,800 x 9% x 17.40 = P 2,818.80

1,500 x 6% x 17.40 = P 1,566.00

1,500 x 9% x 17.40 = P 2,349.00

1,300 x 6% x 17.40 = P 1,357.20

1,300 x 9% x 17.40 = P 2,035.80

Your BonusP19,723.04

A

B

CD

EDaniel

Christie

SarahPaul

CarolYour Achievement Level – 1st Line Achievement Level (less)

For example

5,500 p. – 9%

8,200 p. – 12%

9,600 p. – 12%2,800 p. – 6%

17,000 p. – 15%

43,100 + 36.72 = 43,136.72 – 21%

9%

12%

9%15%

6%

Your BonusP64,548.97

8,200 x 12% x 17.40 = P 17,121.608,200 x 9% x 17.40 =

P 12,841.20

5,500 x 9% x 17.40 = P 8,613.00

5,500 x 12% x 17.40 = P 11,484.00

9,600 x 12% x 17.40 = P 20,044.80

9,600 x 9% x 17.40 P 15,033.60

2,800 x 6% x 17.40 = P 2,923.20

2,800 x 15% x 17.40 = P 7,308.00

17,000 x 15% x 17.40 = P 44,370.00

17,000 x 6% x 17.40 = P 17,748.00

A

B

CD

EDaniel

Christie

Sarah

Paul

Carol

Average Income of Magnolia Club Members

Classification Effectiveness Level

Points QTY of Bottles Average Commission/

MonthMagnolia 3% 300 17 Php 162.92

6% 1,200 66 1,265.07

9% 3,600 167 3,536.47

Silver Magnolia 12% 7,200 393 11,497.1315% 12,000 654 19,822.87

18% 20,400 1,112 44,069.03

Golden Magnolia 21% 30,000 1,634 65,550.97

A

JhonPeter

Josef

B

C

Raul21%2

1 3

21%

21%

21%

21%

The Exclusive Orchid Club

The Orchid Club is a prestigious, international association of Leaders, who are ranked at the highest achievement levels in FM GROUP’s hierarchy.

Honorary Titles: Pearl Amaranth Golden Diamond Black Diamond

The Exclusive Orchid Club

In any given accounting month, 9% of the FM GROUP worldwideturnover in points is allocated for sharing between all themembers of the Orchid Club.

The BLACK DIAMOND ORCHID title: 0,5% of FM GROUP World’s points turnover

The DIAMOND ORCHID title: 1,5% of FM GROUP World’s points turnover

The GOLDEN ORCHID title: 1,5% of FM GROUP World’s points turnover

The AMARANTH ORCHID title: 1,5% of FM GROUP World’s points turnover

The PEARL ORCHID title: 4% of FM GROUP World’s points turnover

The amount of the commission you get as a member of the Club depends on the level you achieve in a given month:

Average Income

These are just Orchid Bonuses and on top of your Achievement Level Commissions!!!

Title # of Franchises

Average Income/ Month

Pearl Orchid 2 x 21% Php 58,000.00

Amaranth Orchid 3 x 21% 385,000.00

Golden Orchid 3 Pearl 1,300,000.00

Diamond Orchid 5 Pearl 2,800,000.00

YOU

21 % 21 %

a.)

21 %

YOU

Total Group Points =20, 000 points

b.)

Pearl

Pearl Orchid 2 x 21% Average Income per Month Php 58,000.00

The PEARL ORCHID title: 4% of FM GROUP World’s points turnover

OR

YOU

20,000pts 20,000 points

Pearl Orchid 2 x 21% Average Income per Month Php 58,000.00

The PEARL ORCHID title: 4% of FM GROUP World’s points turnover

Group Volume = 40,000 points/MONTH

4 years

HONDA Civic 1.8 AT

YOU

30,000pts 50,000 points

Group Volume = 80,000 points/MONTH

4 years

21%

Average Income

These are just Orchid Bonuses and on top of your Achievement Level Commissions!!!

Title # of Franchises

Average Income/ Month

Pearl Orchid 2 x 21% Php 58,000.00

Amaranth Orchid 3 x 21% 385,000.00

Golden Orchid 3 Pearl 1,300,000.00

Diamond Orchid 5 Pearl 2,800,000.00

Amaranth Orchid

YOU

21 % 21 %21 %

Amaranth Orchid 3 x 21% Average Income per month PHP 385,000.00

The AMARANTH ORCHID title: 1.5% of FM GROUP World’s points turnover

Amaranth Orchid 3 x 21% Average Income per month PHP 385,000.00

The AMARANTH ORCHID title: 1.5% of FM GROUP World’s points turnover HONDA CRV 2.0 4x2 MT

YOU

21 % 21 %21 %

Average Income

These are just Orchid Bonuses and on top of your Achievement Level Commissions!!!

Title # of Franchises

Average Income/ Month

Pearl Orchid 2 x 21% Php 58,000.00

Amaranth Orchid 3 x 21% 385,000.00

Golden Orchid 3 Pearl 1,300,000.00

Diamond Orchid 5 Pearl 2,800,000.00

Golden Orchid

YOU

Pearl PearlPearl

Golden Orchid 3 Pearl Average Income per Month PHP 1,300,000.00

The GOLDEN ORCHID title: 1.5% of FM GROUP World’s points turnover

Golden Orchid 3 Pearl Average Income per Month PHP 1,300,000.00

The GOLDEN ORCHID title: 1.5% of FM GROUP World’s points turnover

Mercedez-Benz Class B160

YOU

Pearl PearlPearl

Average Income

These are just Orchid Bonuses and on top of your Achievement Level Commissions!!!

Title # of Franchises

Average Income/ Month

Pearl Orchid 2 x 21% Php 58,000.00

Amaranth Orchid 3 x 21% 385,000.00

Golden Orchid 3 Pearl 1,300,000.00

Diamond Orchid 5 Pearl 2,800,000.00

Diamond Orchid

YOU

Pearl PearlPearlPearl Pearl

Diamond Orchid 5 Pearl Average Income Per Month PHP2,800,000.00

The DIAMOND ORCHID title: 1.5% of FM GROUP World’s points turnover

Diamond Orchid 5 Pearl Average Income Per Month PHP2,800,000.00

The DIAMOND ORCHID title: 1.5% of FM GROUP World’s points turnover

Mercedez-Benz C Class

YOU

Pearl PearlPearlPearl Pearl

DISTRIBUTOR

1 X 210 = PHP 210.00

10 X 210 = 2,100.00

100 X 210 = 21,000.00

How to become a DISTRIBUTOR

To become a FM GROUP World distributor you need to sign a INDEPENDENT DISTRIBUTOR CONTRACT

STARTER KIT20samples = Php 500.00100samples = Php 2,000.00

Great news to our Dear Distributors & New Recruits!!!

Empower yourselves w/ FM Group Fragrance.Recruit now and be rewarded w/points!!!"

Register now and choose from the Starter Pack that you think will help you jumpstart your business!!!

www.fmworld.com

GLOBAL BUSINESS

2004 – 2008: the company reached more than 300,000 new distributors

2008 – present: the company reached more than a Million new distributors

Constant Increase of Company’s Turnover

2010: the company worldwide turnover already reached $15,000,000/ monthly