Eureka forbes-ltd

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  • Notes: a. For confirmed EuroChamps. b. At sales executive level. Friend Chain: Applicable for Metros and mini-Metros only; 10% of the team’s earnings on friendship chain–maximum Rs. 600. Assumptions: Petrol @ Rs. 50/ per liter. For EuroChamps: EuroChamps confirmed level; productivity = 10 sales. For Group Leader: Productivity = 8; personal sales = 11; group sales = 43. For Team Leader: 1. Assistant Team Manager level; per person productivity = 8-9 sales; team sales = 82 (own group 42 + 40). For HCRC: Team Manager level; Head of Location–Team Manager level; single product Head of Location; 100% achievement of budget; own team sales = 150; own group = 38.   Glossary of components:   Holiday Bonus : paid on the average commission earned during the year. Leave Travel Concession : paid on a yearly basis subject to availing of annual leave. Medical Reimbursement : non taxable reimbursement. Contingency Compensation : paid on achievement of consistent productivity, against contingencies such as medical emergency. Friendship Chain : to enhance customer satisfaction, paid on customer contact. Petrol Reimbursement : paid on maximum territory coverage and tax free income. Consistency Reward : paid to maintain consistent performance over a period of 3 months. House Rent Allowance : linked to basic salary as a percentage and increases as the person grows in the organization. Provident Fund : statutory requirement that provides for annuity and pension on superannuation. Performance Incentive : paid linked to achievement of KRAs. Superannuation & Gratuity : statutory funds. Job Related Expense : Tax free reimbursement.  
  • Notes: a. For confirmed EuroChamps. b. At sales executive level. Friend Chain: Applicable for Metros and mini-Metros only; 10% of the team’s earnings on friendship chain–maximum Rs. 600. Assumptions: Petrol @ Rs. 50/ per liter. For EuroChamps: EuroChamps confirmed level; productivity = 10 sales. For Group Leader: Productivity = 8; personal sales = 11; group sales = 43. For Team Leader: 1. Assistant Team Manager level; per person productivity = 8-9 sales; team sales = 82 (own group 42 + 40). For HCRC: Team Manager level; Head of Location–Team Manager level; single product Head of Location; 100% achievement of budget; own team sales = 150; own group = 38.   Glossary of components:   Holiday Bonus : paid on the average commission earned during the year. Leave Travel Concession : paid on a yearly basis subject to availing of annual leave. Medical Reimbursement : non taxable reimbursement. Contingency Compensation : paid on achievement of consistent productivity, against contingencies such as medical emergency. Friendship Chain : to enhance customer satisfaction, paid on customer contact. Petrol Reimbursement : paid on maximum territory coverage and tax free income. Consistency Reward : paid to maintain consistent performance over a period of 3 months. House Rent Allowance : linked to basic salary as a percentage and increases as the person grows in the organization. Provident Fund : statutory requirement that provides for annuity and pension on superannuation. Performance Incentive : paid linked to achievement of KRAs. Superannuation & Gratuity : statutory funds. Job Related Expense : Tax free reimbursement.
  • Eureka forbes-ltd

    1. 1. Eureka Forbes Ltd. -A Sales Territory case study By- Neil D’Souza (4912)
    2. 2. About Eureka Forbes Ltd (EFL) <ul><li>EFL was started in 1982 as a joint venture between the Forbes (India) Group and Electrolux of Sweden. </li></ul><ul><li>Business under Mr. Suresh Goklaney’s leadership . </li></ul><ul><li>EFL installed a market barometer system in 2003 . </li></ul>
    3. 3. Company Profile <ul><li>The products basically cover Vacuum Cleaners, Water Purifiers, and Air Purifiers. </li></ul><ul><li>Employees 9,400 </li></ul><ul><li>Workplace locations 243 </li></ul><ul><li>Business units 4 </li></ul><ul><li>Unique roles 106 </li></ul><ul><li>Concept of ‘councillors’ and ‘senators’ </li></ul>
    4. 4. Sales Approach <ul><li>Involves three steps: </li></ul><ul><li>Cold calls are made </li></ul><ul><li>Product demonstrations conducted, </li></ul><ul><li>EuroCleans (Vacuum Cleaners) and Aquaguards (Water Purifiers) are then sold by the EFL field sales force. </li></ul>
    5. 5. ORGANIZATION
    6. 6. Roles and Responsibilities (at regional level) <ul><li>Customer Sales Specialist (EuroChamp) </li></ul><ul><li>Group Leader </li></ul><ul><li>Team Leader </li></ul><ul><li>Head Customer Response Centres </li></ul><ul><li>Deputy Division Sales Manager (DDSM); Division Sales Manager (DSM) </li></ul><ul><li>Area Sales Manager (ASM) and Senior Division Sales Manager (SDSM) </li></ul><ul><li>Regional Sales Manager (RSM) </li></ul>
    7. 7. The EFL Sales Organization EFL is split into 3 geographical regions, each led by a COO. Common central functions of finance, HR, marketing, SCM, IT and BD support all 3 divisions. The EuroChamp, who is the customer sales specialist takes the product to the customers’ homes, demonstrates it, and closes the sale. Four EuroChamps make up a group led by a group customer sales specialist who functions as group leader.
    8. 8. The EFL Sales Organization <ul><li>Group leaders also have sales quotas. </li></ul><ul><li>Team leaders oversee 2 groups, 1 in which they function as the group leader. </li></ul><ul><li>Each head of a CRC (HCRC) oversees 3 team leaders. </li></ul><ul><li>The EuroChamp is focused solely on sales. The next three levels above him need to sell and manage. </li></ul><ul><li>HCRCs are managed by DDSMs or DSMs </li></ul><ul><li>The DDSMs and DSMs by the SrDSMs or ASMs who report, in turn, to a regional head. </li></ul>
    9. 9. The Eurochamp <ul><li>Attitudes and skills required- </li></ul><ul><li>Minimum 2 years university education, graduates are preferred </li></ul><ul><li>High achievement drive </li></ul><ul><li>Reasonable spoken communication </li></ul><ul><li> and interpersonal skills </li></ul><ul><li>Perseverance </li></ul><ul><li>Financial requirements </li></ul>
    10. 10. Routine Activities of a EuroChamp <ul><li>Morning field meeting. </li></ul><ul><li>Cold calling. </li></ul><ul><li>Daily activity reports, deposit ing payments, and request delivery for closed sales. </li></ul><ul><li>Role-playing and mock de monstrations for new recruits . </li></ul><ul><li>Keeping up to date with product information in terms of innovation and upgrades. </li></ul><ul><li>Closing sales, collecting payments, making courtesy calls on existing customers, and generating references or retraining customers. </li></ul>
    11. 11. Time Estimates for Euro Champ Daily Tasks
    12. 12. Training <ul><li>New recruits are given 2 days to go through the handbook. </li></ul><ul><li>They then spend 1/2 weeks shadowing a senior sales representative before being assigned their own sales territories and quotas. </li></ul><ul><li>A 7-day training program called </li></ul><ul><li> “ My First Week at EFL” is provided </li></ul><ul><li>and 2 days are given to absorb the </li></ul><ul><li>information from this training. </li></ul><ul><li>Supplementary materials are distributed during the program including a booklet detailing EFL’s code of conduct and information on the OYBS(Own Your Bike Scheme). Manuals are translated into the local languages. </li></ul>
    13. 13. Supervision <ul><li>Reporting and feedback is 3 times in a day, </li></ul><ul><li>At the morning meeting before heading out on cold-calls; </li></ul><ul><li>At the midday meeting to report on door knocking results and morning demos; </li></ul><ul><li>And at the end-of-day review to register afternoon follow ups, demos, and sales numbers. </li></ul>
    14. 14. Quotas and Territories <ul><li>Annual quotas are broken down into monthly requirements of 60 product demonstrations and a minimum of 10 sales closings per month. </li></ul><ul><li>The EuroChamps are expected to average 50 customer contacts per day. </li></ul>
    15. 15. Evaluation and Compensation <ul><li>A EuroChamp’s base compensation includes : </li></ul><ul><ul><li>Salary </li></ul></ul><ul><ul><li>rent allowance </li></ul></ul><ul><ul><li>a special pay </li></ul></ul><ul><ul><li>a demo allowance (for customer sales </li></ul></ul><ul><ul><li>specialist probationers), </li></ul></ul><ul><ul><li>a leave travel concession, </li></ul></ul><ul><ul><li>a holiday bonus, </li></ul></ul><ul><ul><li>medical reimbursement, </li></ul></ul><ul><ul><li>and, when applicable, a travel reimbursement (or, for representatives who did not possess a 2-wheeler, a reimbursement of travel expenses up to Rs. 600 per month) . </li></ul></ul>
    16. 16. Evaluation and Compensation <ul><li>Base salary is scaled against length of service, total sales, and average sales over the last 6 months . </li></ul><ul><li>A contingency compensation scheme based on number of units sold could be invoked in the event of marriage or hospitalization. </li></ul><ul><li>Confirmed EuroChamps who maintain </li></ul><ul><li>contact with or retrained a customer 3 months </li></ul><ul><li>and 6 months from date of purchase can </li></ul><ul><li>earn an additional Rs. 30 and Rs. 40, </li></ul><ul><li>respectively. Payment under this plan, </li></ul><ul><li>termed the Friendship Chain, can not </li></ul><ul><li>exceed Rs. 600 per month. </li></ul>
    17. 17. Evaluation and Compensation <ul><li>An averagely successful salesman earns two-thirds of his monthly earnings through commissions. </li></ul><ul><li>This emphasis has an automatic sieving effect: anyone who cannot learn to sell does not get commission and hence earns less and exits very quickly. </li></ul>
    18. 18. EFL Compensation Scheme: Front Line, (Rs. per month, approximate figures
    19. 19. EFL Compensation Scheme: Front Line, (Rs. per month, approximate figures
    20. 20. EFL’s Compensation Plan <ul><li>Doesn’t reward only on sales volume </li></ul><ul><li>Points are given on successful completion of various stages of selling process and compensation linked to the points scored </li></ul>
    21. 21. Sample of Daily Activity Form
    22. 24. Summary <ul><li>It has well organized sales force which includes focused leadership by EuroChamps. </li></ul><ul><li>Each EuroChamp has the groups working under him. </li></ul><ul><li>EuroChamps have strict daily routine activities like Daily activity reports, collecting payments etc. </li></ul><ul><li>EFL provide well organized training programs for new recruiters. </li></ul><ul><li>Work takes place under proper supervision. </li></ul>

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