Eureka Forbes Ltd.

Managing the Selling Effort

OBSERVATIONS
 COMPANY HISTORY
• EFL was a joint venture between the
Forbes(India) Group & Electrolux of Sweden in
1982.
• Consisted of a single office(Mumbai) with 20
sales reps.
• First product-EuroClean vacuum cleaner,later
followed by AquaGuard Water Purifier.
• Suresh L. Goklaney joined in 1987 as the CEO
of the company.
 KEY FEATURES
• Company is engaged in direct selling without
involving any middlemen.
• Along with building Customer response
centres(CRC) and service centres also began to
build a comprehensive customer database.
• Ranked 1 of India’s Best Employers.
• Revenue earned primarily from AquaGuard
sales and after-sales service(64%), secondarily
from vacuum cleaners(22%).
 INDIAN MARKET
• EFL targeted those households in the 400 A-level
cities with monthly income above the price of
their products. Only 18million met such criteria.
• EFL products were not among the priority
purchases of middle-income households.
• Very often it is noticed that customers are not
very clear about what they want and at what
price while entering in a retail stores .Retailers
encouraged “deal selling” and primary sales lever
was price.
 What EFL offers and how
• Offers higher functionality than competitors at
a higher price.
• EuroChamps,the sales reps ,Interacts with
customer at their convenient locations where
the customer has enough time and no
distractions which is later followed by
demonstrations and object handling.
 EuroChamps
• Primarily young people with great
communication skills become such a recognizable
figure that the “Man with the case” become an
informal second company logo.
• Older EuroChamps become team leaders and
heads of CRCs.
• He goes door to door, interacts,
demonstrates,takes order, reports to office
,deposit payments and request delivery for closed
sales.
 RECRUITMENT & TRAINING
• Campus recruitment, career fairs,
employment exchanges.
• Lac of women to recruit.
• Another powerful tool is own your own Bike
Scheme(OYBS).
• Mentoring newcomers by senior reps before
being assigned to their own sales.
• Informal method such as videos, role play,
mock demos.
 EVALUATION & COMPENSATION
• EuroChamps are expected to contact 50
customers per day.
• A Eurochamp who is consistent enough to sell
22 units per month over a 6-month period
was inducted to Silver-Circle Club.
• The champions club included 100 top direct
sales performers.
 CURRENT ISSUES & SOLUTIONS
• Missing of an easy sale.
• Demo equipment damaged or not clean.
• Poor performances.
• Formalized training by establishing 8 CRTCs.
• Rather than rewarding only on sales volume,
award points allocated on sales process.
• “Bettering the Best” by elevating the morale
of sales team, improving productivity.
INSIGHTS
• The idea behind the new system was to
reduce the sales pressure on the sales people
and to change their focus to improving the
process of selling.
• As the process is customer centric so
Customer engaging time must be enhanced.
• Compensation for sales person is important at
different stages of a perfect selling.
• Territory wise target is to be achieved.
• Sales reps can manipulate their points by
making more cold calls.
• Maintaining customer database is necessary.
• EuroChamps should feel themselves an
important part of the company and take
responsibilities eagerly and need to take pride
in that.