How to manage the workforce with falling

motivation and enthusiasm?

Group 3:
Suyash Nigotia 13P116
Ashir Madan 13P131
Kaushik Nihalani 13P148
Mayank Rathore 13P150
Nikhil Jain 13P152
Eureka Forbes is a Direct Selling company, a joint venture
between Electrolux and Forbes, established in 1982
Market leader in Vacuum cleaner technology and water
purifiers with 70% market share and 63% market share
respectively
They were targeting 400 A-level cities with population of
100,000 or more, which had 55 million households out of
the overall 200 million




RSM
ASM
SDSM
DSM
DDSM
HCRC
Team Leader
Group Leader
Eurochamps
Recruitment done in a highly subjective manner through
advertisements and some lower tier colleges
Day for a Eurochamp involved:
30 minutes of morning meeting
Followed by 40-50 cold calls knocking doors
Reporting to CRC by midday
Afternoon and evening are to close calls
Each position, other than Eurochamps involved management
as well as selling
Company is facing high attrition rate at various levels
It had been more than two years since any of the regional
heads had been in the field
The overload of management tasks had made it difficult for
higher management to stay in touch with the pulse of the
consumer


Increased clashes taking place due to:
Territory conflicts: More than one Eurochamps trying to service the same territory
Changing demographics resulting in un-even demographics
Lack of formal DB made it skewed in favor of old Eurochamps, who solicited favors from
During a sales visit with Eurochamps the CEO realized that:
Eurochamps were missing easy sales
Missing visible cues to close the sales
Equipments were unclean and damaged
Customer response was far from satisfying
Poaching of the sales force is taking place at a large scale as Eureka
Forbes Eurochamps are considered accomplished salesmen



Possible reasons:
No scope for collaborative training as
trained Eurochamps would then
encroach of the territory of the older
Eurochamps
Inadequate time for the managers to
stay close to the pulse of the customer
as was required
There is a possibility that there was a
lack of training in all the aspects of sale
which are described here


Bettering the best
This involved changing the evaluation and compensation criteria for the Eurochamps
This method would reward the Eurochamp for each step in the selling chain, as given below















Some of the senior managers said that this method would be More bite than bark
However, if we look at the above table, we realize that this is not true
For an equivalent sale the Eurochamp will have to increase the no of activities as follows
There was, however another problem with the method. It still did not address the How
instead of How much which the management wanted
The employee morale however was boosted through it






Activity Daily Target Points Equivalent to sales
Active Door Knock 30 5 60
Appointment for the day 5 10 30
GAS 1 30 10
Service Request 2 10 30
Demos 3 100 30
Sale: Standard 1 300 --
Sale: High end product

600 --
Reference 1 50 12
FGF

3000 --
Meetings 1 200 1.5
Commercial Appointment (w/a
business entity) 1 50 6

A database for prospective customers need to be devised,
where existing customers served as the starting point
Sales territory re-distribution would be required to ensure
that each territory has equal potential
Award system needs to be changed to ensure that team
performance is rewarded rather than individual performance
Continuous training system needs to be devised to be made
sure
Also, Eurochamps can be rewarded for the training held as
well
Investigate the factors why OYOB (Own Your Own Bike)
scheme is so successful at arresting attrition rate
Feedback system to ensure that number of cold calls etc are
not inflated



Currently, only 2.5 million households are being serviced as
compared to potential 55 million households
Conversion of Cold calls is approximately 2% (500,000 out
of 24 million)
With this kind of potential, a single Direct sales channel
might hinder their possible progress
The current CRCs can be transformed into chains, where
demo is given to prospective customers
This would mean that the aim of advertising, (Currently only
to make Eurochamps seem friendly) would require to be
changed