61700212 eureka-forbes-mba-porject-report-prince-dudhatra


Published on


  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

61700212 eureka-forbes-mba-porject-report-prince-dudhatra

  1. 1. EUREKA FORBES LTD. PREPARED BY T.Y.B.B.A. Academic Year 2007-2008Grace College of Commerce Submitted To Saurashtra University Guided By Bhavna Madam 1
  2. 2. PREFACE Since the declaration of new industrialpolicy for the small scale industry in Aug-1991 witha view to make them strong and viable units, theyhave made an important contribution to the Indianeconomy along with the bigger firm. It is thus animportant part of the study B.B.A. to introduce tothe subject, the subject of entrepreneurship andmanagement of small business. “The student of today shall be theentrepreneur of tomorrow.” With this maxim in mindthe students are trained for entrepreneurshipdevelopment through the subject. Hence it isimportant that the students practically study suchskills and learn the same. With these factors in mind the students arerequired to prepare a industrial project report on anyselected product. In this regard I have prepared anindustrial project report on EUREKA FORBESPVT.LTD. As per the syllabus, given by theSaurashtra University this is presented here in thebest possible manner and to the best of mobility. 2
  3. 3. DECLARATION I, undersigned Parekh Urvi H. a student ofT.Y.B.B.A. of Grace College of Commerce. Here bydeclare that the project work presently in this reportin my own work and has been carried out under thesupervision of Bhavna Madam. This project has not been previouslysubmitted to any other university of anyexamination. I have tried my level best to include allinformation in this report.Date: -_____________________Place: - RAJKOT 3
  4. 4. Acknowledgement It is really a much of pleasure for me toprepare a industrial project report. At this stagewhile studying in T.Y.B.B.A. project report is animportant part of business and it is in the interest ofthe entrepreneur to prepare the project before hestart the actually production. This project report is very helpful indeveloping an entrepreneurial skill and it is also apart of study of T.Y.B.B.A, the training programs orguidance which is provides by my college, so I wouldlike to express my sincere thanks to real source ofinspiration Dr. Manish Thaker who has encouragedme to be a real entrepreneur. I am also sincerely thankful to “EUREKAFORBES LTD.” which is the real source ofinformation of my project, which helped me a lot inthe preparation of this industrial project report. Lastly I would like to sincerely acknowledgean express my gratitude to all those who have 4
  5. 5. directly or indirectly helpful to me bring the course ofstudy as it shall be ever prayed so. OBJECTIVES OF STUDY EUREKA FORBES is one of the TATA’s GroupCompany in today’s competitive world EUREKA FORBESLIMITED is overcoming its competitors like BPL, PHILIPS, andVIDEOCON etc. and getting success all over India in a veryshort span of time. I want to know the reason of this extraordinary success in competitive age, so I have selectedEUREKA FORBES LIMITED for my practical training as partof my study. It is said that “Nothing happens until somebodypromote something”. One may have the best product, packageand so on. It may have fair price but after all above people willnot buy your product, if they have never heard of it and theyare simply unaware of its experience. So people must knowthat the right product is right time and right place. This is thejob of promotion mix in marketing. As promotion mix is one ofthe important ingredients of marketing mix I have selected“PROMOTION MIX” as a topic of my report. 5
  6. 6. TABLE OF CONTENTSSr. No. Particulars(1) General Information(2) Promotion Mix(3) 1) Advertising 2) Sales promotion 3) Personal selling 4) Publicity & Public relations(4) Conclusion(5) Bibliography 6
  7. 7. 7
  8. 8. COMPANY AT A GLANCEName of the unit : EUREKA FORBESLIMITEDNature of the product : Consumer DurableYear of establishment : 1982Address of Factory : Faciet Asia Ltd. 52, Apkot Ind, Estate Hosur. BANGLORE.Registered Office : 7, Chaka Beria Road (South) KOLKATACorporate office : Shalinu Palace, 2nd floor,81-83, Bhavani Shankar Road, Dadar (West) Mumbai-400 028Mailing Address : P.O. Box- 936 8
  9. 9. Phone No. : 022-4371129(12lines)Tele fax. : 022-4371125HISTORY AND DEVELOPMENT OF THE UNIT EUREKA FORBES LIMITED is a group ofTATA as the mother company of ‘EUREKA FORBESLIMITED’. Company is an associate company of thehouse of TATA. India’s foremost industrial groupwhose aggregate sales turnover for the year 1998-99was almost Rs. 19,000 crores and employees over250,000 persons. The turnover of ‘EUREKA FORBESLIMITED’ is Rs. 500 to 600 crore. ‘EUREKA FORBES LIMITED’ is theoutcome of joint venture of two renewed industrialgiants’ viz. Forbes Gohak Ltd. and Electronics A/B ofSweden. Electrolux is a pioneer company, which hasstarted in the year 1971 as direct selling company inthe market. They started with product ‘VACCUMCLENNER’ directly to the customer in the businessworld. The EUREKA FORBES LIMITED wasstarted in the month of February 1982 with oneoffice at BOMBAY and nearly with a staff of 10people with one product i.e. VACCUM CLENNER.But not at present EUREKA FORBES LIMITED has200 to 250 locations in all over India with nearlyabout 6000 salesman with multi-product like 9
  10. 10. Vacuum-cleaner, Aqua-Guard water filter, airpurifier etc. EUREKA FORBES LIMITED has made themission of propagating the ‘CLEANING WORLD OFEUREKA FORBES AND THE ULTIMATE INCLEANING SYSTEM’. EUREKA FORBES LIMITED is in a strongposition as leader in Health and Hygiene products. Itis the pioneer of direct selling in India. SIZE AND FORM OF The ORGANIZATION Depending upon the ownership, theorganization can be classified into three forms andthese forms are described as follows.FORM OF BUSINESS ORGANIZATION1. Private Sector: - The units owned andmanaged by the individual come under this sector.2. Public Sector: - The units owned andmanaged by the government come under this sector. 3. Joint venture: - The units that are the jointventure of the government and individual comeunder this sector.SIZE OF THE UNITIn India, generally the business units are classifiedinto three main categories on the basis of the size ofthe unit.1. LARGE SCALE UNIT:- 10
  11. 11. A large scale unit is the one whose investment infixed assets and current assets is more than 5crores.2. MEDIUM SCALE UNIT:-A medium scale unit is the one whose investment infixed assets and current assets fall between 3 to 5crores.3. SMALL SCALE UNIT:-A small scale unit is the one whose investment infixed assets and current assets are less than 2crores. EUREKA FORBES LIMITED is the largescale business and it is said to be private sector 11
  13. 13. 1. MR. Rajesh Jani2. MR. Jayesh Jani{For vacuum cleaner}1. MR Divyesh Mehta2. MR. Sahi Pandya{For Aqua Guard} 13
  14. 14. PRODUCT, COMPETITIORS AND MARKET SHARE EUREKA FORBES LIMITED has a number of products but in this project report we are going to deal with only main product of the company viz.⇒ VACCUM CLEANER:- Types of vacuum cleaner are as under. Euro clean (XL) (New) Tornando vacuum cleaner 2-75 industrial vacuum cleaners The respective price of EURO CLEAN is Rs. 5,990/- and the main competitors of these particular product are as under. BPL SANYO PHILIPS MODY HOOVER SUMEET MAHARAJA VIDEOCON USHA ELECTRONICAL The respective price of AQUA GUARD is Rs. 6,690/- and the main competitors of this particular are as follows.o CRYSTAL CLEAR (PERMIONICS)o ALFA PUREo VIDEOCON 14
  15. 15. o MONIBAo SYNEX PURIFIER Besides above mentioned competitors there are many local companies, which are also competitors of the company. When we take “VACCUM CLEANER” into consideration the most known name among all is “EURO CLEAN” i.e. one product of “EUREKA FORBES LIMITED” and its market share is nearly 70 to 80 %. There is 24 months warranty provided with the product. “AQUA GUARD” consumed almost 65 to 70% of the total market of water filters. There is 12 months warranty provided with the product. They are also selling Air-purifier as a product of the company but it is not as much as popular in Indian market. 15
  16. 16. 16
  17. 17. PROMOTION MIXINTRODUCTION The marketing activities of productplanning, price and distribution are performedmainly within a business or between a business andmember of its distribution channels. You may havebest product package and so on. It may have fairprice, but people will not buy your product, if theyhave never heard of it, and they are simply unawareof its existence. The market must communicateinformation in a persuasive language. People mustknow the right product is available at the right placeand at the right price is the job of promotion mixmarketing. So it is said that “Nothing happens untilsomebody promote something.” Basically promotion is an attempt toinfluence and more specifically promotion is anelement in the organization’s marketing mix thatserves to inform, persuade and remind the market ofthe product and the organization selling it, in hope ofinfluence the consumer’s feeling, beliefs orbehaviour. Modern marketing calls for more thandeveloping a good product, pricing it attractively andmarketing it accessible target customers. Companymust also communicate their present and potentialcustomers, retailers, suppliers, other stock holderand general public. Every company is inevitable therole of communicator and promoter. For companiesthe question not whether communicate but ratherwhat to say to whom to say and how often. 17
  18. 18. DEFINITION:- “Promotion consists of those activitieswhich are designed to bring a company’s productand services to the favorable or positive attain ofpotential or other customers.” Each tool of promotion mix is a vehicle ofmedium of communication in the field of marketingmanagement. The marketer is an artist creates themost favorable blend of promotion elements ofinfluence buyer behavior and the process of decisionmaking in purchase. Thus sales can be promotedthrough promotion campaign, there mainly fourimportant tools of promotion mix which aredescribed as follows.1. Advertising2. Sales promotion3. Personal selling4. Publicity & Public relationLet us study all the four promotional tools one byone in short.ADVERTISING:- The American marketing associationdefines advertising as “Any paid form of non personalpresentation and promotion of ideas, goods orservices by an identified sponsor.” The important orkey words on this on an advertisement, instead ofcommunication with customer face to face.Companies the advertise ordinarily uses a massmedium, television, newspaper, a radio, hoarding 18
  19. 19. etc. These messengers, when they appear; identifyclearly who has paid for them.SALES PROMOTION:- Sales Promotion includes a wide variety oftools and sales promotion is a direct inducementwhich offers an extra value and incentive for theproduct to the sales force, distributors or theultimate customer.Sales promotion methods are useful means ofstimulating a quick and immediate response fromcustomer coupons, music cassettes, free samplesand free demonstration and just as few examples ofmany forms that sales promotion may take.PERSONAL SELLING:- Personal selling involves a one to onerelationship with a customer. It is the oralpresentation of tangible and intangible product by aseller to a prospect for the purpose of completing anexchange. The benefit of personal selling is that itallows sales personnel to judge the relationship ofcustomer to their sales presentation and thus, givesus an opportunity to very the message for betterunderstanding. It is not suited to the massdistribution consumer product.PUBLICITY:- Publicity is formally defined as “any form ofnon-paid advertisement and communication.” Ingeneral it increases consumer awareness of acompany of its products particularly new and 19
  20. 20. innovative product and marketing practice. A company can also plan publicity to derive its advantage. What Eureka thinks about its customer:- A customer is the most important person ever in this office_ _ _ in personal or by mail. A customer is not dependent on us _ _ _ we are dependent on him. A customer is not an interruption of our work_ _ _ he is the purpose of it. We are not doing a favour by serving him_ _ _ he is doing us a favour by giving us the opportunity to do so. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. A customer is a person who brings us his wants. It is our job to handle them profitability to him and to ourselves. 20
  21. 21. 21
  22. 22. INDEX OF ADVERTISINGSerial ParticularsNo.(1) Introduction(2) Objective of Advertising(3) Different medias of advertising(4) Advertising theme of appeal(5) Advertising Agency(6) Advertising copy(7) Advertising Budget 22
  23. 23. 23
  24. 24. INTRODUCTIONAdvertising is one of the five major roles. Companiesuse direct persuasive communication to targetbuyers and public. It is because mass markets atreasonable costs. It is too costly and time consumingto use only sales people in large geographically drivemarkets. However, where as personal selling ordirect selling can be tailored to the individualprospect mass communicators try to reach manypeople with a common massage. This ultimatelyresults into mass communication at a reasonablecost.Advertising is the most important promotion toolamong all the other tools of promotion. There will behardly a field of business in which advertising is notused for sales expansion. It is not exaggeration tosay that “MODERN AGE IS THE AGE OFADVERTISING”. It is the foundation of modern tradeand industry.From the above discussion EUREKA FORBESLIMITED give advertising in newspaper or inmagazines in yearly or in Diwali. But in televisionEUREKA FORBES LIMITED gives advertising regallyon every channel. 24
  25. 25. DISTINGUISH FEATURES OF ADVERTISING:- It is unique of means non-personal or mass communication announcing the sale of goods or services. It can help to introduce a new product quickly. The advertising is non-personal salesmanship function like personal salesmanship. It is a silent but forceful salesmanship. It helps to pre-sale a product. It is an openly sponsored sales message regarding any product or service. It is paid form of communication by the sponsors [Advertiser] to the media owner. Advertising message can be addressed to numerous people at a time they may be readers, listeners, viewers, collectively. 25
  26. 26. OBJEVTIVES OF ADVERTISING We already know that every activity is depend on some specific objectives and the advertising is one kind of activity, so it has also some objectives behind its publications Either it may to increase demand, to attract customer, middleman to face competition or other marketing purpose. The first in developing advertising programmed to set advertising objectives. According to EUREKA FORBES LIMITED these objectives must flow from prior decision on the target market EUREKA FORBES LIMITED, market positioning and marketing mix. The market positioning and marketing mix strategies define the job that advertising must do total marketing programmed. The EUREKA FORBES LIMITED has undertaken the activity of advertising with a view to attain the following objectives. TO INFORM:- Telling the market about the new features of the product. Suggesting new uses for a product. Explaining how the product works. Building a company’s image. Telling about mode of selling. 26
  27. 27. TO PERSUADE:-⇒ Building brand preference.⇒ Encouraging switching to your brand.⇒ Changing customer’s perception of product attributes.⇒ Persuading customers to purchase now. TO REMIND:-♥ Reminding customers that the product may be needed in the near future.♥ Reminding them aware to buy.♥ Maintaining its top mind awareness. DIFFERENT MEDIA OF ADVERTISING:- Advertising Media is the vehicle for manufacturers to convey company. There are many media of advertising through which company can advertise. The selection of media depends on various factors such as:- The finance allocation for advertising. The nature of competition and promotional aid-offered by media circulation. 27
  28. 28.  Right media of advertising will enable the advertiser to deliver the message effectively to the intended markets of prospectus. The different type of media can be analyzed as follows: MEDIA OF ADVERTISING 1 2 3 PRINT MEDIA OUTDOOR DIRECT MAIL PUBLICITY ADVERTISING News papers Posters Circular Selling Magazines Hoardings Quotations Trade/technical Electrical Price lists journals display Periodicals Sign Boards Pamphlets 4 5 6 BROADCAST TRANSIT OTHER MEDIA FORMS Radio Railway Window Display Television Buses Exhibitions Film Airplanes Directories Internets Car-cards Advertising specialists 28
  29. 29. Out of the above media, EUREKA FORBES LIMITED uses media for advertising, some of included in some of included in sales promotion tools and some of them are describes as follows:- 1. PRESS MEDIA:- Press media included following important media. Newspaper Magazines Trade and Technical Magazines Periodicals According to EUREKKA FORBES LIMITED, they give advertisement in newspapers and magazines only one time when like festivals of DIWALI or yearly based. In newspapers they use state leading “SANDESH”, “GUJARAT SAMACHAR”, Country leading “THE TIMES OF INDIA” and “INDIAN EXPRESS” and in Magazine they used “CHITRALEKHA, GRUH SHOBHA, and READERS DIGEST etc.” So at least we can say that press media is not use more than other by EUREKA FORBES LIMITED. 29
  30. 30. 2. OUTDOOR ADVERTISING:- EUREKA FORBES LIMITED had adoptedposters, hoarding and electric display as media ofoutdoor advertising. They are giving importance tothis media because it has long life and wide appealand also because it can attract attention ofnumerous people. EUREKA FORBES LIMITED hasbeen taking into consideration some important pointwhile giving advertising through its media such asthe place of the posters, hoardings, electric displayand rules and regulation levied by the government.They choose the local place for this purpose. However, they are not giving too muchimportance to this media because of its effectivenesscan not be accurately measured and it may be leadto considerable wastage also. Further it is not usefulin selective advertisement.3. DIRECT MAIL ADVERTISING:- The direct mail advertising is the vehicle fortransmitting the message in printed, written orprocessed form with control in distribution. Direct toselected individual. EUREKA FORBES LIMITED isalso using this media of advertising in the form ofbooklet and personal letters that are described asunder.4. RADIO ADVERTISING:- 30
  31. 31. EUREKA FORBES LIMITED is using thismedia because it is suitable for some illiterate peopleand also because spoken words have greater impactthan written words. They advertise their product onradio before and after giving much more importanceto this media because it can not detailed informationand has low memory value.5. TELEVISION ADVERTISING:- EUREKA FORBES LIMITED is usingtelevision as an important media of advertisement.They advertise their products on ZEE TV, STARPLUS, and SONY TV etc. regularly before verypopular programmers. So that it can attract moreprospective customers. They are giving muchimportance to television advertisement. So, EUREKA FORBES LIMITED give advertiseof its product through above media but its mainsource is “DOOR TO DOOR SELLING” according toEUREKA FORBES LIMITED it is the best way for it toincrease the sales. So it gives much importance to“DOOR TO DOOR SELLING.” 31
  32. 32. ADVERTISEMENT THEME OF APPEAL The theme of appeal is control idea aroundwhich the advertisement is created. It is called theunique sales promotion. There are various appealsused in advertisement to sell product or service. Theselection of theme of appeals is usually made bymeans of consumer study and research, is that theyhave got the knowledge about the types ofprospective customers, their style of living, socialclass to which they belong and kind of approachthem need, they have conducted this research toform the advertising theme also. After a proper consideration, EUREKA FORBESLIMITED has selected following theme for vacuumcleaner and water purifier.1. THEME OF PRIDE:- Generally vacuum cleaner in EUREKAORBES LIMITED is sold with the theme of prideappearing to upper class and rich class. It appealsthe theme of pride by saying the statement thatEUREKA FORBES LIMITED.2. THEME OF EASE IN COMFORT:- In EUREKA FORBES LIMITED vacuumcleaner is sold through advertisement with the themeof easy in operation. It says that the time of cleaningyour house with the help of vacuum cleaner the 32
  33. 33. operation is so easy just on the switch take in handof EURO CLEAN (XL) and get house clean in fewminutes.3. TO SAY ABOUT MODE OF SELLING:- In the advertisement of vacuum cleanerand aqua guard water purifier of EUREKA FORBESLIMITED, this theme is also pointed out. Inadvertisement, it says that you need not to goanywhere to buy vacuum cleaner and aqua guardwater purifier of EUREKA FORBES LIITED. Justmake us call and our salesman reach at your homeas fast as possible to demonstrate the item. ADVETISING AGENCY Advertising agency can be explain in brieflyas “The organization undertaken the task of planningand executing the advertising programmes on behalftheir clients. The advertising agency take the brief formof the marketing and advertising department of theclient company and learns everything about theproduct to be advertised, the budget meant for it’sthe objectives of advertising programmes etc., withthe help of brief idea they create advertisement, thetake copyrights of writers who wrote advertisingmessage, its layout and several advertising copies forthe approval of the clients of marketing departmenton finalizing the advertising coy the agency inconsultation with clients prepares a media plan inwhich the message will be put, the time frequencyetc, also included in this. The advertising copy isgiven to reduction department, which prepares thefinal art work to be given to the broad casting andtelevision media. Regarding the organization needs toperform the message of the advertising activities in acompany, management has three objectives. 33
  34. 34.  A company’s own advertises department. An outside advertising agency. Both company department and advertising agency. Advertising is independent concerns acting as specialist in advertise even companies with strong advertising department use advertising agents. It acts as agent or consultant of the advertiser who is manufacturer, wholesaler or retailer. It is not an agent in the legal sense originally but in acted media owner. Today the very popular agencies of advertisements are:- CAMERAD LINTAS OLEIVE AND MATHEOR SAUBHAGYA HINDUSTAN TANSAN OBILY EUREKA FORBES LIMITED has been also taken the help of very popular agency OLEIVE AND MATHEOR (O&M), Mumbai regions for using the advertising agency are follows:- The company can not have all types of specialists such as copywriter, artists, design staff, market research experts etc. The agencies have these highly paid specialists on a permanent basis because their costs are spread over many advertisers. Hence, it is economical and cheaper to use an advertising agency. The agency can take unbiased or objectives views of any advertising problem. The agency can see the product, its merits, and demerits through the 34
  35. 35. eyes of the buyers who are also outsiders; thisobjectively is not possible for an advertisementdepartment of the company. Finally the media owner pays the agency.The company pays nothing for the use of an agencywhile buying advertising space. He pays the samecost if the places an advertisement directly with themedia partner. The EUREKA FORBES LIMITED gives theagency. The company pays nothing for the use of anagency while buying advertising directly with themedia owner. The EUREKA FORBES LIMITED gives thedesign, size, color, etc. of the product to the agency.The advertisement, selection of media, placement ofadvertises, advertising research study of audiencethese app characteristics are performed by the“O&M”, Mumbai. It receives about 15% ofcommission from the media owner also.ADVERTISING COPY The term copy refers to a material which isto be set type of the print media or spoken byannouncer for broad case commercial. Advertisingcopy is the most important and critical activity forthe success of the entire advertising of the companydepends on it to a large extent. Advertising copy is akey activity in advertising indeed a creative activity.A copy transits the sealing point of a client’s productor say and who in an advertisement that how to sayand show it. He is called upon to alter all his creativetalent to present those product benefits which bestappeal to consumers. 35
  36. 36. Advertising copy includes all the element ofan advertising message whatever printed or broadcast. In advertising for the print media it includesthe heading, subheading, and picture. EUREKAFORBES LIMITED, cartoons and body of theadvertisement. It may even include trade marks, thecompany logo, border and music in addition to wordsspoken in the advertisement message. TV has thedomination of motion in addition to that of TVincludes the words o be spoken by the characters inthe scripts plus music and sound effect as well asillustrative materials. Action and even camera effectalso. 36
  37. 37. QUALITIES OF GOOD ADVERTISING COPYo It must have a personal appeal.o It must be responsible but never dull.o Independent and bold think ness.o Keep preparation and imagination.o High degree of adoptability.o It may be slice of life.o It may present a life style.o It may awake a mood or image such beauty, love or sincerity.o It may be musicalo It may a personality symbol. 37
  38. 38. ADVERTISEMENT BUDGET Having established the advertising objectives, the next important managerial task is to determine the advertising appropriation for company’s budgetary period. It is that part of company’s communication budget which is to be spent or invested on media, mean and other ancillary services to as to impersonally advertising budget which are as follows.o Affordable methodo Competitive comparison methodo Percentage on sales methodo Return on investment methodo Objectives and task method. EUREKA FORBES LIMITED first of all overall budget for promotion is decided. This budget is decided on the basis of percentage on sales method. Overall promotion budget they are appropriating 25% budget to advertising, they are using this method for determine promotion budget as well as advertising because it is easy to understand and calculate. Further there is a relationship between sales and promotion expenditure. 38
  39. 39. 39
  40. 40. INDEX OF SALES PROMOTIONSerial PARTICULARSNo.(1) Introduction(2) Objectives of Sales Promotion(3) Sales Promotion Tools a) Consumption promotion tools b) Trade promotion tools c) Business promotion tools(4) Development of the sales(5) Promotion programme 40
  41. 41. INTRODUCTION Sales promotion is an importantinstrument in marketing efforts today, salespromotion is a necessity not merely a luxury or afashion. It is not expenditure; it is an investmentwhich can pay rich dividends. It is an integral part ofthe marketing activities. Sales promotion is one of the most looselyused terms in the marketing vocabulary. Salespromotion consists of diverse collection of incentivestools, mostly short term designed to stimulatequicker and greater purchase of particular productsby consumers or the trade. In other words, salespromotion consists of those activities that areintended to stimulate customer demanded andimprove the marketing performance of seller. Inshort, where as advertising offers reasons to buysales promotion offers incentives to buy. Sales promotion includes tools forconsumer promotion [E.g. samples, coupons, cashrefunds offer, price off, premium rewards, free trials,warranties, demonstration contest etc. Tradepromotion [e.g., Buying allowance, free goods,merchandise] and sales force promotion [e.g. bonus,contest, sales relies]. In short, sales promotion is abridge or connecting link between advertising andpersonal selling. 41
  42. 42. OBJECTIVES OF SALES PROMOTION Today it is the world of stiff competition. Consumers are becoming aware about the value of the product. Which they are going to buy and price of it. Today there is not competition about price, but consumers want to extra benefits and best quality of product by paying the same price. Now a days’ a lot importance is attached to sales promotion in each and every kind of organization. It is an incentive to attract consumers. Sales promotion has got importance because by the way of which product improvement is there and also new product development is also possible and sales promotion is also helpful in maintaining consumer attraction and create brand image in the minds of consumers. EUREKA FORBES LIMITED has adopted a sales promotion as major tool of marketing efforts. According to EUREKA FORBES LIMITED prospectively buyer must be attached urgent and ever persuade to buy a product of the company. They are giving importance to sales promotion because;• It stimulates positive awareness towards the product.• It gives extra incentives to the consumers to male a purchase.• It gives direct inducement to take immediate action now rather then later. 42
  43. 43. SALES PROMOTION TOOLS Many sales promotion tools are available toaccomplish sales promotion objectives. Thepromotion planner should take into account the typeof the market. Sales promotion objectives,competitive conditions and cost effectiveness of eachtool. We will now consider the main sales promotiontools used by EUREKA FORBES LIMITED forconsumer’s promotion, trade promotion and salesforce promotion.CONSUMER PROMOTION TOOLS Major consumer promotion tools used bythe EUREKA FORBES LIMITED are as under.WARRANTY:- Product warranty is important promotionaltool, especially as consumers become more qualitysensitive. Vacuum cleaner [Euro clean XL] arewarranted against defects arising from factorydesign, workmanship and materials for a period of24 moths form the date of invoice as well as aquaguard water purifier are also warranted for a periodof 12 months from the date of invoice. Both aboveproducts are warranted subject to followingcondition. 43
  44. 44. CONDITION:- The customer will notify the companypromptly of any defect noticed opportunity toinspect, test and remedy then for which thecustomer deposited the goods, if necessary with thecustomer deposit the goods if necessary with thecompany’s office/service center with invoice in thecity where are sold.Inspection and test reports of company’soffice/service center will be treated as final andbinding under the warranty for determining defects,repairs alternations required or cried out certifyingworking of the goods thereafter. The company or its authorized agent will beentitled to retain any defective part replaced underthe warranty period. The company’s liability under the warrantyperiod will be limited only to be defects, which occurunder condition of normal operation, and underproper use. It excludes defects occurring because ofabuse, faculty care or maintenance, repair alterationto goods or parts by other use on electrical supply forwhich the goods are not designed or to damagecaused by lighting or other electrical are not coveredby this warranty. 44
  45. 45. Components subjects to wear such ascarbon, brushed and accessories are not covered bythis warranty. The customer will have not claim underthis warranty in respect of any personal injury,damage or consequently accordance with operationalmanual.AFTER SALES SERVICES:- In EUREKA FORBES LIMITED, thecustomer may be offered a service contact with thecompany on the expiry of the warranty of the goodsbrought to its service center by the customers.FREE TRIAL:- In EUREKA FORBES LIMITED, free trialconsists of inviting prospective purchases to try theproduct without any type of payment and after tryingit if purchase is satisfied they can purchase theproduct. Prospective buyers are invited throughpersonal letters.DEMONSTRATION:- In EUREKA FORBES LIMITED, there isdoor to door selling called direct selling. Salesmangoes to prospective customer’s house and gives thecomplete knowledge about the product. i.e. Type ofproducts, different types of accessories used in theproduct, its superiority in operation and differenttypes of uses. He gives them live demonstration ifprospective customers ring up. Then they also go totheir office also. Demonstration is one of theimportant tool for EUREKA FORBES LIMITED andthey increase their sales from the demonstration.Thus it is the very important part of customerpromotion tool by which company comes in direct 45
  46. 46. contact with prospective buyer and tries tounderstand their demand and solve their problemwhich can ultimately increase the sales of thecompany’s product.PREMIUM:- Premium or gifts are merchandise offers ata relatively low cost or free as an incentive topurchase. In EUREKA FORBES LIMITED also, itgives one bag free with Euro clean XL and AquaGuard.TRADE PROMOTION TOOLS There are number of manufacturers areusing a number of trade promotion tools due tobelow objectives:- Trade promotion tools can easily persuadethe retailer or whole seller to carry the brand. Trade promotion can include the retailer topromote the brand by display features of productand price reductions. Trade promotion can stimulate retailersand trade sales clerk to push the product. In EUREKA FORBES LIMITED, company isnot giving any types of trade promotion such as priceoff, allowance, free goods because company has notwhole seller or retailer. Instead of them, companyhas its own more than 200 branches all over India.Because of the disadvantages of whole selling andretailing, company has opened its own branches allover India, providing direct service to the prospectivecustomers. 46
  47. 47. BUSINESS PROMOTION TOOLS EUREKA FORBES LIMITED spends toomuch of business promotion. These tools are usedfor such purpose as gathering business leads,impressing and rewarding prospective customer andstimulating the sales force to gather more effort. Themain tools of business promotion tools are asunder:-DISPLAYING IN EXHIBITION, FAIR ETC. EUREKA FORBES LIMITED takes part indifferent exhibitions and fairs. Generally this type offairs and exhibitions are held by some otherauthority at the time of some festivals such asNavratri, Janmashtami, Diwali etc. and in those fairsand exhibition companies books their stole and givelive demonstration. Same way EUREKA FORBESLIMITED buys the space and set up display todemonstration their product. Thus the cost of thesetools is very much less, but values of this are toomuch high. There are number of people attend thistypes of fair and exhibitions and same into thecontact with the company and its uses.SALES CONTEST:- In EUREKA FORBES LIMITED, salescontest is a contest involving the sales force aimed atincluding them to increase their sales over a statedperiod with price going to those who secede. In EUREKA FORBES LIMITED, sales targetis decided first by the company. In this direct 47
  48. 48. promotion is not given to the employee. Each and every employee has to perform the job of best salesman first. If the salesman achieves the target setup by the company over the stipulated time, he can get the chance of promotion and other prizes such as free trip of any one big city in India. With the help of the business promotion company can get following benefits:-  It can increase its sales.  It can satisfy the salesmen’s needs.  Company can get information about efficient personnel and can provide best incentives to work. However, EUREKA FORBES LIMITED, is taking too much care in fixing target because if target is low then it is possible that in-efficient person is promoted and if target is high then it can disappointed the salesmen. SPECIALITY ADVERTISING:- In EUREKA FORBES LIMITED, specifically advertising consists of blueprints, pen, calendars, cigarette lighter etc. The item keeps the company’s name before the prospect and creates goodwill because of utility of the items.DEVELOPING THE SALES PROMOTIONPROGRAMME. In EUREKA FORBES LIMITED, to develop the promotion programme, they have to think about following points or we have say that people should 48
  49. 49. develop the sales promotion programme taking intoaccount following consideration:-SIZE OF AN INCENTIVE:- According to EUREKA FORBES LIMITED, acertain minimum incentive is necessary for thesuccess of promotion. A higher incentives level willproduce more sales response. But at a diminishingrate so company fixes the sizes in between low andhigh.e.g. Company is arranging sales contest. Then if itgives too much less incentive then nobody will go forthis and it is too much high will become expensive.In this situation company has find out middle way.They are giving promotion plus prize benefit tosuccessful sales person. Thus, size of incentives in EUREKAFORBES LIMITED is fixed after taking intoconsideration the financial availability and benefitderived form that incentive.CONDITION FOR PARTICIPATING:- Here the decision is taken about, theincentive that might be offered to everyone or toselected groups.DURATION OF PROMOTION:- In EUREKA FORBES LIMITED, in case ofconsumer promotion tools, the duration of warrantyis fixed like 1 year and 2 year in Aqua guard andVacuum cleaner. This duration is fixed after takinginto consideration the technical aspect of theproduct.SALES PROMOTION BUDGETS:- 49
  50. 50. Finally, the market decides the salespromotion budget. In EUREKA FORBES LOMITED,the method of determining the sales promotionbudget is very simple. They fix budget on the basis ofconventional percentage of the total promotionbudget. They have sales promotion budget is 15% ofthe total promotion budget.After determining the proper sales promotionprogramme, it is implemented at a stipulated time.Evaluation of sales promotion programme is done inEUREKA FORBES LIMITED i.e. comparing the salesfigures before and after the implementation of salespromotion programme. 50
  52. 52. Sr.No. Particulars (1) Introduction (2) Importance of personal selling (3) Essential of effective selling (4) Salesmanship (5) Types of salesman (6) Recruitment of salesman (7) Selection of salesman (8) Training and compensation plan (9) Personal selling system (10) Personal selling process EUREKA FORBES LIMITED is giving toomuch importance to personal selling rather thanadvertising and sales promotion. There are noretailers or wholesalers for company product so thispersonal selling system also known as direct selling 52
  53. 53. system also known as direct selling system. So inthis way in EUREKA FORBES LIMITED, there is adirect selling system. From the above definition it can be saidthat personal selling is an art but according toEUREKA FORBES LIMITED, it is both science andart. An art is “SKILL IN PERFORMANCEACQUIRED BY STUDY AND OBSERVATION ANDEXPENDITURE” viewed in this manner,salesmanship is an art, and salesmanship requires acertain aptitude or talent, a certain type ofpersonality. A salesman must posses a certain skillcan be acquired and developed. A science has been defined as“SYSTEMATISED KNOWLEDGE”. Salesmanship canbe considered as science according to this viewbecause it is based on certain standard principal andtheory. However, salesmanship is not an exactscience compare to physics or other, but it is ascience based in Human Psychology. It can beconsidered a “SOCIAL SCIENCE.” INTRODUCTION 53
  54. 54. The term “Personal selling”, itself signifiesthe meaning i.e. a person goes to the customer andintroduce the product with a view to sell the product.A salesman is one who practices the profession ofselling. Personal selling refers to the oralpresentation in conversation by a salesrepresentative with one or more prospectivecustomer for the purpose of making sales. No othertool for promotion is as strong as personal selling orsalesmanship. Personal selling is highly distinctive andthe only form of promotion involving face to face(direct) relationship or interpersonal interactioncommunication between a sales person and one ormore prospective customers. Personal selling has been defined byRussell and Beech as “It is the art of persuading thepeople to purchase goods which will give off lastingsatisfaction by using methods which consume theleast time and efforts.” 54
  55. 55. IMPORTANCE OF PERSONAL SELLING Personal selling is the most important in the production mix. EUREKA FORBES LIMITED is giving too much importance to personal selling because through personal selling EUREKA FORBES LIMITED is in as position to get following advantage. A person can pinpoint prospect. Hence, there is minimum rate of effort and expenditure in personal selling. Personal selling interview in salesmanship assures attention and interest of a prospect. Personal selling has flexibility. Salesman talk and presentation can be fitted to the individual needs and obvious of his prospect. This is not possible in advertising. Sales can meet objectives and reactions of his prospect in order to gain favorable action. Company is giving actual demonstration. Actual demonstration of the product or its use is recognized as the most powerful means of convincing. Advertising can not use demonstration but salesman can use it easily. Company is using personal selling as most important tool because it is the best means of two way communication between the company and its customers. Top management can be fully informed about vital matters such as competition, customer reaction and comments, market trend etc. This feedback of information can not be adequately achieved through other means of promotion. 55
  56. 56. ESSENTIAL OF EFFECTIVE SELLING According to EUREKA FORBES LIMITED, theleader of personal selling, personal salesman shouldbe well equated with five EUREKA FORBES LIMITEDdepartments. These five pre-requirements can besummarized as follows.KNOWLEDGE OF YOUR COMPANY:- Some products are not joined on their ownmerit but the name of the company thatmanufactures them. Hence salesman must becompany oriented. The facts about it the companymust be at his prospect about your firm so that theymay decide to do business with your firm.KNOWLEDGE OF YOUR PRODUCT:- A salesman knows all about his productlike raw-material from which it is made, how it isused. It is maintained product features customersbenefits, selling points of the product in relating toits rival and so on without having the adequateknowledge about vacuum cleaner, and Aqua-guard,a salesman can not convience the prospect andconvert him into a customer.KNOWLEDGE OF COMPETITION:- A salesman should constantly study theproduct offered by his competitors and determinetheir strength and weakness in comparison to hisown products. Though knowledge of the company itsproduct is and its competitors constitutes the solid 56
  57. 57. background of essential information for effectiveselling buyer have faith on well informed salesman.KNOWLEDGE OF CUSTOMERS:- A salesman must have knowledge aboutthe customer’s wants and desires; customer’s buyingprocess, their perception, innovation and learningprocess. Sales presentation can not be effectiveunless a salesman knows about factors influencingbuyer behaviour.KNOWLEDGE OF SELLING PROCESS A salesman should have adequateknowledge about selling process. It should beinformed of all the stages of selling process likeprospecting, presentation and post sales activitiesetc. The salesman can use A I D A S formula i.e.Attention,Interest,Desire,Action andSatisfaction 57
  58. 58. TYPES OF SALESMANThe following is the chart of showing types ofsalesman:- Different Types Of Salesman Industrial Merchant Consumer Salesmanship Salesmanship Salesmanship Specialty Missionary Salesman Salesman Creative Detail Salesman SalesmanAll are traveling salesman in chart at specific salesterritory. 58
  59. 59. DETAILS OF SALESMANSHIPINDUSTRIAL SALESMANSHIP Industrial salesmanship needs a technicalbackground in engineering or chemistry tounderstand the problems and also know thelanguage of technically trained agents. Industrialsalesman represent manufactures or wholesalers etc,for highly technical training are employed to studythe customer problems, recommended properequipment, supervise the installation and train userin its operations.MERCHANT SALESMANSHIP:- It involves quantity selling of all types ofconsumer goods (convenience, shopping and specialgoods) to resellers. They operate the consumer goodmarket we have 4 types of more merchant salesman.[SPECIALITY SALESMAN] He is called upon the sell consumerspecialities such as vacuum cleaner, refrigerator,cosmetics etc. They also sell in industrial productand materials supplies etc. These salesmen specialize in introducingnew product or innovation in the market. They adoptthe technique of aggressive salesmanship.[MISSIONARY SALESMAN] 59
  60. 60. They are responsible for promoting salesand create a demand they help much out inarranging stores, display planning store, sales andhelping in all merchandise activities.[CREATIVE SALESMAN] They are the salesman who seeks tointroduce a new product or a new brand into themarket. They create a demand for such novelty theyare pioneer salesman.CONSUMER SALESMANSHIP It helps the customer to take purchasedecision i.e. in the store to buy “NOW” i.e. on thespot. They also create strong patronage a storeloyalty to ensure repeat purchase by customers. It isrequired for selling high cost articles, e.g.automobile, refrigerators, television sets etc.In EUREKA FORBES LIMITED, we find especiallycreative salesman. They are expert in introducingnew products and innovations in the markets. Theyare able to create demand for both introducibleproducts with their creative stall of salesmanship. 60
  61. 61. RECRUITMENT OFSALESMAN Recruitment refers to process of searchingfor prospective employee and inducing them to applyfor job. It is the most important function becauseunless the right type of people is hired even the bestplan and organization system would not do muchgood. Systematic recruitment of salesman leads togreater productivity. Higher more able in labourturnover and better resolution of the concern.In EUREKA FORBES LIMITED, first of allrecruitment policy is established when it is foundthat there is a need of salesman. They getinformation about prospective employeerecommended form present employee or formeremployee of the organization. They evaluate theinformation collected by them and make decision toselect to reject prospective salesman. They also giveadvertisement in local newspaper, trade journals andmagazines. Interviews are held up a proper selectionprocess in made after consideration. 61
  62. 62. SELECTION OF SALESMAN Selection is the processes in whichcandidates for employment are divide into classesthose who are offered employment and those who arenot. While selecting the salesman in EUREKAFORBES LIMITED following qualities are taken intoconsideration.[A] PHYSICAL QUALITIES According to EUREKA FORBES LIMITED,salesman should have a good physical appearancewhich is a very big asset for a salesman. Accordingto them, he should be well built and free fromphysical defects, he should have appropriate dress,clean appearance, a good posture in creature a goodfirst impression. A salesman must always havecheerful smile in his face.[B] SOCIAL QUALITIES A salesman is required to move in differentcities to meet many customers and set along withthem. He must therefore develop a good socialbehaviour. A salesman must always cultivate goodmanners. According to EUREKA FORBES LIMITED,a salesman must be polite and respectful and neverbecome unduly familiar with his customers, courtesyin dealing with customers using polite expressionsand a sincere desire to please customers are verynecessary for success in salesmanship. 62
  63. 63. [C] MENTAL QUALITIES According to EUREKA FORBES LIMITED,the mental make up of a salesman must beconductive to success. He should have a good powerof memory and ostentation. Each must be able torecognize the customers, their characters and theirbuying motives and adjust his sales according. Hemust be alert and always on his toes. He should beself-confident.[D] MORAL QUALITIES Honesty and integrity are the essentialcharacter qualities of a salesman. Customer must bewilling to depend on the salesman. Creating ofgoodwill and a name of fair and honest dealing areessential in business. A salesman must be loyal bothto his employer and customers, there are alsovarious other qualities, which a salesman mustdevelop in order to become successful. While taking the interview and these qualitiesmatched with prospective salesman character and ifthere is best match between the two he is selected asa salesman of the company. 63
  64. 64. TRAINING AND COMPENSATION PLANTRAINING In EUREKA FORBES LIMITED, trainingplays the major role the people in EUREKA FORBESLIMITED are given a class room training of 2 to 3days in which knowledge of the company, directselling [personal selling], product knowledgeinformation is covered. After the sales persons aregiven field training in which a senior sales personaccompanies him and he is made to observe theactions and reactions of the customers and salespersons. These types of field training are given for 15to 30 days. After that if salesman is ready to go alonethen he will be given specific sales target in forparticular month and if he will succeed in selling thespecific target then he will be promoted.COMPENSATION PLAN EUREKA FORBES LIMITED is the bestcompany, which as the best compensation plan fortheir sales force. A part of it’s paid in the firm ofbasis and field allowance. But the company believedin “GIVE AND TAKE POLICY’’ it is so said inEUREKA FORBES LIMITED, that it is the highestpaid for hard work and lowest paid for lower work.The company has various slab for commission inwhich sales persons can earn as much as his ownEUREKA FORBES LIMITED, who can sell average 20units per month can earn more than Rs. 5000/-. 64
  65. 65. PERSONAL SELLING SYSTEM The system approach is useful forunderstanding the elements of personal sellingstrategy. The sales system under the systemapproach is presented in the following diagram. Sales System Input Transformation Outputs Human Changed CustomersTechnological Sales Process Changed sellersOrganizationSYSTEM BOUNDERSENVIRONMENTENVIRONMENTAL PROCESS [UNCONTROLLABLE]ENVIRONMENTAL ALTERNATIVES[CONTROLLABLE]INPUTS:- The environment provides the inputs to thesales situation from which the sales manager selectsmore favourable combination of inputs in order tofulfill his sales objectives. 65
  66. 66. (1) Technological inputs(2) Human Inputs(3) Organizational inputTRANSPORTATION PROCESS The transportation process to influence bythe combination and working of the outputs.FEEDBACK:- Feedback refers to the return flow ofinformation from the sales encounter. Suchinformation can be used to modify the sellingsystem. The performance of salesman is evaluated bythe sales manager even by the group leader of thesalesman.OUTPUT:- The effectiveness of the system and itsvarious survivals depends upon transforming theprospect into a buyer. Consumers’ attitudepurchases the product are also the outputs. EUREKA FORBES LIMITED practice spotpurchase. Once the salesman to the prospectiveconsumer, he gives demonstration of the productand the prospective customer has to take immediatedecision whether he is interested the salesman takesthe order and there after on the next day customergets the delivery of the product. Hence the salesforce of the every businessor company they are the focal point of he marketing 66
  67. 67. mix. They are not depending on the seller in reality,but the seller is dependent upon them. There are various types of customer, i.e.impulsive customer timid or nervous customer,argumentative price minded, talkative, silent andsuspicious. The salesman of this company throughkeep observation and study can trace the individualpeculiarities of his prospect on the basis of hisknowledge and he adopts his sales talk to securefavorable result. The prospective customer is not classifiedby the sales status wiz, how ever they doclassification of the future customer according totheir profession as under.BusinessmanGovernment servantsProfessionalsIndustrialistService class Businessmen do not react or respond in avery manner forward the company’s product andtheir purchase are always varying. Government servants are the mostresponsive group of customer, they mostly reactpositively towards the purchase of the product. 67
  68. 68. Professionals are generally educatedadvanced class of society. They have got advancedthinking hence mostly they are the adopter pf thecompany product. Industrialist does not behave in a specificmanner towards the product the response is notalways predictable. Generally the purchases of service classcustomer are seasonal i.e. during festivals likeDIWALI. The upper-middle and middle class peoplemostly purchase the products of the companybecause they are the class of people who are eager toutilize the best available service in the market. Asthey have planned their purchase either by cash i.e.once a year on Diwali bonus or sometime throughloans and hence to maintain their standard in everymanner. In the present society and the environmentthey are the first people to buy the given advantages. 68
  69. 69. PERSONAL SELLING PROCESS Personal selling refers to organizationalpresentation in conversion with one or moreprospective customers for the purchase makingsales.In EUREKA FORBES LIMITED, the process ofpersonal selling is as under.PERSONAL SELLING PROCESSPROSPECTPRE-APPROACHMEETING OBJECTIONCLOSING THE SALESFOLLOW-UP 69
  70. 70. [1] PROSPECTING:- The first step is to develop a list of existingprospectus and potential customer having need ofthe product purchasing power, intension to pay andauthority to purchase. Prospectus can be qualifiedby examining their financial ability volume ofbusiness special requirement, location and littlehood of continues business.[2] PRE-APPROACH Once prospectuses are located andqualified salesman should find out his needs andproblems and to be solved them. He should find outtheir habits. Nature behaviour etc. On the basis ofadequate information of the customers salesman canprepare his plan of sales presentation or interview onthe basis of this pre-approach.[3] APPROACH SALES PRESENTATION The third step is the stage where thesalesman comes face to face with the prospectcustomers. This point consists of the two major partsobtaining as interview and the first contract. Thesalesman may use various means of obtaininginterview generally in EUREKA FORBES LIMITED.The salesman directing goes to the house ofprospective customers, introduce himself with theinterview what is more important here first contact.Salesman must be able to attract prospects attentionand get him interested in the product. 70
  71. 71. [4] SALES PRESENTATION Once the salesman has sought and foundpotential customer and they has matched theirwants with his product he is ready to formallypresent product of company to the customer.EUREKA FORBES LIMITED, the salesman presentthe sales in such a way, which is closely related tobuying, process of customers. It is presented in thelanguage that prospect can understand easily. Theyadopt sales interview generally through AIDAStheory, securing attention is the first step after thatto create interest is the second step. Many devicesare used to arouse and increase interest in theproduct salesman of EUREKA FORBES LIMITED isdoing this through frying and interaction sales talkas well as through actual free demonstration of theproduct and its operation wherever feasible.[5] MEETING OBJECTIONS:- Objectives and reactions representfeedback to salesman communication. They reflectgrowing interest of the customer in the product. Thesalesman of EUREKA FORBES LIMITED welcomesthese objections and reactions because unless theobjection is satisfactory solved, the sales cannot takeplace. Prospects that refuse objections are easier tosatisfy than a prospect that shows not any interestin the product. 71
  72. 72. [6] CLOSING THE SALES The close is the act of actually getting theprospects assent to buy the product. It is very goodefforts so far made by the salesman and is thereforethe climax of the entire sales process. Here salesmanwatches for every sign which may indicate that theprospect is willing to buy and apply to close. He alsoremembers that initiative must be come from him.According to EUREKA FORBES LIMITED, a sale isnever complete until the product is finally in thehands of a satisfied user. Salesman alone can assuresuch competition of sales.[7] FOLLOW-UP The purchase decision does not completethe salesman’s task. In EUREKA FORBES LIMITED,he writes the order, arranges for dispatch anddelivery of product, assures buyer on the wisdom ofhis decision and minimize his dissatisfaction if any.The salesman contacts the customer frequently tomaintain his goodwill and smooth relation over andabove to solve post sales problems the follow up is agood source of feedback to the salesman. 72
  73. 73. Achievement:- Eureka Forbes is now a Case Study inHarvard Business School Eureka Forbes Limited, the pioneer ofDirect Sales in India, entered the hallowed portals ofHarvard Business School by joining the band ofselect companies which have become a case study inits MBA classrooms. Today, 900 students at thisglobally recognized center of business education,began studying a case based on Eureka Forbes,titled “Managing the sales Effort” written byProfessor Das Narayandas of this school, assisted bysenior researcher Kerry Hermann form the GlobalResearch Group. Mr. Suresh Goklaney, Managing Director ofEureka Forbes, himself an alumnus, was in Bostonon invitation form the Harvard Business School andsaid “The 5500 salespersons working for EurekaForbes – whom we fondly call Euro champs – will bedelighted that the unique and young company whichthey have created over the last 24 years has beenfound worthy by Harvard Business School to write acase study on”.Eureka Forbes, about to go into its Silver Jubileeyear, has notched up an impressive turnover of Rs.6.1 Billion (Rs. 610 crores) selling premium life styleproducts like water purifiers and vacuum cleanerswhich bring better health to the families of theircustomers. In the growing sunrise markets of waterpurification and vacuum cleaning, Eureka Forbesenjoys market shares upwards of 70% through itsbrands Aquaguard and Euroclean respectively. Inthe year 2004, Aquaguard was choosen as a“Superbrand” by a panel of eminent persons in theIndian industry. 73
  74. 74. 74
  75. 75. PUBLICITY AND PUBLIC RELATIONSr. No. Particulars[1] PUBLICITY[2] Introduction[3] Importance of Publicity[4] Benefits of Publicity[5] Limitation of Publicity[6] PUBLIC RELATIONS[7] Introduction[8] Objectives of Public Relation[9] Parties of Public Relation[10] Major tools of public relation in marketing 75
  76. 76. PUBLICITYINTRODUCTION:- Publicity is also called marketing publicrelation, publicity is not form by the organization,and publicity comes form news reporters, columnistand journalist people. It comes to the receiver as thetruth rather than as a commercial public relationand publicity taken together become the forth majoringredient of promotion mix. These activities arehowever not controllable by the firm, every firm triesto create a good relation as to give good publicityunder the social; marketing concept publicity andpublic relation are assuming unique importance inthe firms as a part of promotion mix. Defective products, unfair trade practice,anti-social activities etc, will create bad brand image,increased consumer protect, strict governmentregulations and soon the firm having a poor publicimage will have lower sales and lower profit.IMPORTANCE OF PUBLICITY:- Now a day in each and every company,publicity is required, without publicity cannotincrease its production and cannot achieve its salestarget and profit. So each and every company tries tofive more and more publicity. Advertising is the mainsource of publicity for EUREKA FORBES LIMITED. By the way of advertising company want toattract consumers and tries to increase sales volumeof which the company is able to increase its profit. 76
  77. 77. So publicity is helpful for making good publicrelation. The company creates good public relationsso as to give publicity.BENEFITS OF PUBLICITY:- Publicity is essentially aimed at buildingpositive image, goodwill or favorable visibility hasacquired a sound footing to assist a company in itsmarketing efforts. Publicity is helpful in creating food publicrelations. It is major ingredient of promotion mix. Itis nor personal stimulation of demand for a product,service, or business unit. It helps in creating salesand profit to the organization. In EUREKA FORBES LIMITED, throughpublicity company has been able to achieve salestarget and also it is helpful in creating good publicrelations.LIMITATION OF PUBLICITY:- The firm having poor publicity image willhave lower sales and lower profit. Unfair tradepractices often result in favorable publicity of a firm.Defective product and product image also createsnegative publicity. 77
  78. 78. PUBLIC RELATIONSINTRODUCTION Public relation is another importantpromotion tool which until recently was treated as amarketing step child but not become an importantmarketing function. The total process of buildinggoodwill towards business enterprise and securing aright public image of the company is called publicrelation. It is creating a favorable atmosphere forcecomplement advertising by certain communication isnot possible without establishing and maintainsmutual understanding between the company and itscustomers. Public relation activities typically aredesigned to build or maintain a favourablerelationship with its various publics, customers,stock holders, employees, labor unions, the localcommunity and the government. EUREKA FORBES LIMITED is also givingimportance to public relation because theirprocesses are nothing but it pays too much. InEUREKA FORBES LIMITED, there is one separatedepartment for public relation and its staff is so busyin relation with various public stock holders,employees, legislators, etc.OBJECTIVES OF PUBLIC RELATION:- 78
  79. 79. After each and every activity there shouldbe some objective. EUREKA FORBES LIMITED hasalso some objectives for adopting public as majormarketing tools.They are as follows.To assist in the launch of new productTo assist in requisitioning nature productTo build up interest in product categoryTo influence specific target groupTo build the corporate image in a way that projectfavourable on its products.PARTIES TO PUBLIC RELATIONS:- There are various public groups, which arerelated to public relations. They are employees,customers, share holders, community etc. EUREKAFORBES LIMITED maintains the good relation withall these parties in following way.EMPLOYEES:- It is the most important factor for smoothfunction of business without employees. EUREKAFORBES LIMITED is aware of significance ofemployees because in the absence of employees theproduction process and other activities of businesscome to stand and end. EUREKA FORBES LIMITEDis maintaining good and harmonious relations withemployees so that they can give their best to theorganizations. EUREKA FORBES LIMITED providesfix rate or wages, timely wages, extra benefit like 79
  80. 80. facility of loans contribution towards PF, Bonus, andCommission etc.CUSTOMERS:- It is necessary to maintain contact withboth the actual and prospective customers EUREKAFORBES LIMITED aims to create more and morecustomers by fulfilling their needs and wants.EUREKA FORBES LIMITED provides the after salesservice form time to time. It also service thecustomer ego through giving best items.GOVERNMENT:- EUREKA FORBES LIMITED is maintaininggood relation with government by paying regulartaxes and following rules and regulations framed bythe government.LOCAL COMMUNITY:- EUREKA FORBES LIMITED recognized itsresponsibility to community in which it is doing itsbusiness. As their motto “ALWAYS THE BEST” theirremains nothing more to say about company’srelations with maintain the public interest whichcreates good public relation. EUREKA FORBESLIMITED provides good service to its customers onregular basis.SUPPLIERS, CREDITORS ETC:- EUREKA FORBES LIMITED of coursekeeps cardinal relations with its supplier to ensure 80
  81. 81. regular delivery of goods at reasonable price,preference in case of material shortage, intimationabout forth coming shortages, information about thenew developed substitute, prolonged payment incase of temporary liquidity crises. They people alsomaintain food relations with creditors to ensurefavourable term of credit.OTHER PARTY:- Other party will include press, radio andTV Company EUREKA FORBES LIMITED maintainsconstant and cardinal relations with them. EUREKAFORBES LIMITED gives regularly advertisement inTV, Radio and Press. 81
  82. 82. MAJOR TOOLS OF PUBLICRELATION IN MARKETING:- There are various tools in marketing forpublic relations. Some of them are as under.PublicationsEventsNewsSpeechesPublic Service ActivitiesIdentity MediaExplanation regarding some of above is given asunder.[1] NEWS:- In EUREKA FORBES LIMITED, company’sprofessional also is to find and create favourablepoints about company and prepare news in thatpoint. News generation requires skill in developing astory concept and researching at extensively.[2] Events:- EUREKA FORBES LIMITED arrangesspecial events to draw attention to its new productsor to other activity of company. Event includes newconference, seminars, exhibitions, competitions etc.[3] Written Material:- EUREKA FORBES LIMITED relies extensivelyon written material to reach and influence their largemarket. These include reports, broachers andliterature. 82
  83. 83. CONCLUSION On the ball’s of the comprehensive research ofthe EUREKA FORBES LIMITED, it can be concludedthat the position of the EUREKA FORBES LIMITEDin comparison to its competitors is very strong. Thewell experienced, efficient and industrial sales forceof EUREKA FORBES LIMITED is the strength of it.They are the first to introduce vacuum cleaner inIndia with the direct selling as a greater tool ofpromotional mix. In a very short span of time, theyhave achieved great success. Today the “Vacuum cleaner” & “Water Purifier”have necessary requirement of the person who arevery much conscious about health rather thanluxury item its demand increasing day by day. Withthe increase in demand may new companies havealso entered in this market so EUREKA FORBESLIMITED has to complete with all these competitorsvery much. EUREKA FORBES LIMITED has created goodbrand age also. However one of their weak points isless importance given to other tools of promotion mixcompare to direct selling. Thus it can conclude that the company hasbright and prosperous future ahead. 83
  84. 84. SUGGESTIONS From the overall study of the promotionalmix of the EUREKA FORBES LIMITED, it can besuggested that,[1] As it is good that they are giving too muchimportance to personal selling but they have to giveimportance to advertising and other tool atpromotion mix also. Because advertising and otherpromotion tools has their own importance.[2] In today’s world consumer are becoming awareat market and market policy. They want extra qualityof the product from the price, which they have paid.People also like to get discounts, gift and otherspecial offer because it is their mentality hence thecompany should adopt certain measures in order togive very much importance to sales promotionactivity because it gives “Incentives to Buy” where asadvertising personal selling gives “Reason to Buy”.[3] The company should increase compensationprovided to the salesman who will attract a better-educated class and the existing salesman will workwith a motivation.[4] Company should increase the training periodfrom six months to one year in some specific casesand also company gives advertisement in newspaperregularly rather than within a year. 84
  85. 85. BIBLIOGRAPHY For getting the information regardingvarious aspect of promotion mix in theoreticalconcept as well as practical aspect, I have taken thereference of certain books which are as follows.[1] Marketing ManagementBy:- Philip Kotler[2] Marketing ManagementBy:- S.A. Sherlekar.[3] Website - www.eurekaforbes.com 85