This document provides information about a project report prepared by Urvi H. Parekh, a student of T.Y.B.B.A. at Grace College of Commerce, for the academic year 2007-2008. The report focuses on the promotion mix of Eureka Forbes Ltd. It includes sections on the history and development of Eureka Forbes, its products and competitors, and an analysis of the different elements of its promotion mix including advertising, sales promotion, personal selling, and publicity. The summary examines the objectives, structure and key topics covered in the student's industrial project report.

1. EUREKA FORBES LTD.
PREPARED BY
T.Y.B.B.A.
Academic Year
2007-2008
Grace College of Commerce
Submitted To
Saurashtra University
Guided By
Bhavna Madam
1

2. PREFACE
Since the declaration of new industrial
policy for the small scale industry in Aug-1991 with
a view to make them strong and viable units, they
have made an important contribution to the Indian
economy along with the bigger firm. It is thus an
important part of the study B.B.A. to introduce to
the subject, the subject of entrepreneurship and
management of small business.
“The student of today shall be the
entrepreneur of tomorrow.” With this maxim in mind
the students are trained for entrepreneurship
development through the subject. Hence it is
important that the students practically study such
skills and learn the same.
With these factors in mind the students are
required to prepare a industrial project report on any
selected product. In this regard I have prepared an
industrial project report on EUREKA FORBES
PVT.LTD. As per the syllabus, given by the
Saurashtra University this is presented here in the
best possible manner and to the best of mobility.
2

3. DECLARATION
I, undersigned Parekh Urvi H. a student of
T.Y.B.B.A. of Grace College of Commerce. Here by
declare that the project work presently in this report
in my own work and has been carried out under the
supervision of Bhavna Madam.
This project has not been previously
submitted to any other university of any
examination. I have tried my level best to include all
information in this report.
Date: -
_____________________
Place: - RAJKOT
3

4. Acknowledgement
It is really a much of pleasure for me to
prepare a industrial project report. At this stage
while studying in T.Y.B.B.A. project report is an
important part of business and it is in the interest of
the entrepreneur to prepare the project before he
start the actually production.
This project report is very helpful in
developing an entrepreneurial skill and it is also a
part of study of T.Y.B.B.A, the training programs or
guidance which is provides by my college, so I would
like to express my sincere thanks to real source of
inspiration Dr. Manish Thaker who has encouraged
me to be a real entrepreneur.
I am also sincerely thankful to “EUREKA
FORBES LTD.” which is the real source of
information of my project, which helped me a lot in
the preparation of this industrial project report.
Lastly I would like to sincerely acknowledge
an express my gratitude to all those who have
4

5. directly or indirectly helpful to me bring the course of
study as it shall be ever prayed so.
OBJECTIVES OF STUDY
EUREKA FORBES is one of the TATA’s Group
Company in today’s competitive world EUREKA FORBES
LIMITED is overcoming its competitors like BPL, PHILIPS, and
VIDEOCON etc. and getting success all over India in a very
short span of time. I want to know the reason of this extra
ordinary success in competitive age, so I have selected
EUREKA FORBES LIMITED for my practical training as part
of my study.
It is said that “Nothing happens until somebody
promote something”. One may have the best product, package
and so on. It may have fair price but after all above people will
not buy your product, if they have never heard of it and they
are simply unaware of its experience. So people must know
that the right product is right time and right place. This is the
job of promotion mix in marketing. As promotion mix is one of
the important ingredients of marketing mix I have selected
“PROMOTION MIX” as a topic of my report.
5

6. TABLE OF CONTENTS
Sr. 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

8. COMPANY AT A GLANCE
Name of the unit : EUREKA FORBES
LIMITED
Nature of the product : Consumer Durable
Year of establishment : 1982
Address of Factory : Faciet Asia Ltd.
52, Apkot Ind,
Estate Hosur.
BANGLORE.
Registered Office : 7, Chaka Beria Road
(South)
KOLKATA
Corporate office : Shalinu Palace,
2nd floor,81-83,
Bhavani Shankar Road,
Dadar (West)
Mumbai-400 028
Mailing Address : P.O. Box- 936
8

9. Phone No. : 022-4371129
(12lines)
Tele fax. : 022-4371125
HISTORY AND DEVELOPMENT OF
THE UNIT
EUREKA FORBES LIMITED is a group of
TATA as the mother company of ‘EUREKA FORBES
LIMITED’. Company is an associate company of the
house of TATA. India’s foremost industrial group
whose aggregate sales turnover for the year 1998-99
was almost Rs. 19,000 crores and employees over
250,000 persons. The turnover of ‘EUREKA FORBES
LIMITED’ is Rs. 500 to 600 crore.
‘EUREKA FORBES LIMITED’ is the
outcome of joint venture of two renewed industrial
giants’ viz. Forbes Gohak Ltd. and Electronics A/B of
Sweden.
Electrolux is a pioneer company, which has
started in the year 1971 as direct selling company in
the market. They started with product ‘VACCUM
CLENNER’ directly to the customer in the business
world.
The EUREKA FORBES LIMITED was
started in the month of February 1982 with one
office at BOMBAY and nearly with a staff of 10
people with one product i.e. VACCUM CLENNER.
But not at present EUREKA FORBES LIMITED has
200 to 250 locations in all over India with nearly
about 6000 salesman with multi-product like
9

10. Vacuum-cleaner, Aqua-Guard water filter, air
purifier etc.
EUREKA FORBES LIMITED has made the
mission of propagating the ‘CLEANING WORLD OF
EUREKA FORBES AND THE ULTIMATE IN
CLEANING SYSTEM’.
EUREKA FORBES LIMITED is in a strong
position as leader in Health and Hygiene products. It
is the pioneer of direct selling in India.
SIZE AND FORM OF The
ORGANIZATION
Depending upon the ownership, the
organization can be classified into three forms and
these forms are described as follows.
FORM OF BUSINESS ORGANIZATION
1. Private Sector: - The units owned and
managed by the individual come under this sector.
2. Public Sector: - The units owned and
managed by the government come under this sector.
3. Joint venture: - The units that are the joint
venture of the government and individual come
under this sector.
SIZE OF THE UNIT
In India, generally the business units are classified
into three main categories on the basis of the size of
the unit.
1. LARGE SCALE UNIT:-
10

11. A large scale unit is the one whose investment in
fixed assets and current assets is more than 5
crores.
2. MEDIUM SCALE UNIT:-
A medium scale unit is the one whose investment in
fixed assets and current assets fall between 3 to 5
crores.
3. SMALL SCALE UNIT:-
A small scale unit is the one whose investment in
fixed assets and current assets are less than 2
crores.
EUREKA FORBES LIMITED is the large
scale business and it is said to be private sector
11

12. THE BOARD OF DIRECTORS.
CHAIRMAN MR. Fredali A. Mehta
MANAGING DIRECTOR MR.
S.C.Goklney
VICE PRESIDENT MR. A.V. Suresh
AREA SALES MANAGER MR. Terence
Able (Gujarat)
DISTRICT DIVISIONAL MR. Pankaj
Joshi
SALES MANAGER (Gujarat)
GROUP LEADER
12

13. 1. MR. Rajesh Jani
2. MR. Jayesh Jani
{For vacuum cleaner}
1. MR Divyesh Mehta
2. MR. Sahi Pandya
{For Aqua Guard}
13

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 PURE
o VIDEOCON
14

15. o MONIBA
o 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

17. PROMOTION MIX
INTRODUCTION
The marketing activities of product
planning, price and distribution are performed
mainly within a business or between a business and
member of its distribution channels. You may have
best product package and so on. It may have fair
price, but people will not buy your product, if they
have never heard of it, and they are simply unaware
of its existence. The market must communicate
information in a persuasive language. People must
know the right product is available at the right place
and at the right price is the job of promotion mix
marketing. So it is said that “Nothing happens until
somebody promote something.”
Basically promotion is an attempt to
influence and more specifically promotion is an
element in the organization’s marketing mix that
serves to inform, persuade and remind the market of
the product and the organization selling it, in hope of
influence the consumer’s feeling, beliefs or
behaviour.
Modern marketing calls for more than
developing a good product, pricing it attractively and
marketing it accessible target customers. Company
must also communicate their present and potential
customers, retailers, suppliers, other stock holder
and general public. Every company is inevitable the
role of communicator and promoter. For companies
the question not whether communicate but rather
what to say to whom to say and how often.
17

18. DEFINITION:-
“Promotion consists of those activities
which are designed to bring a company’s product
and services to the favorable or positive attain of
potential or other customers.”
Each tool of promotion mix is a vehicle of
medium of communication in the field of marketing
management. The marketer is an artist creates the
most favorable blend of promotion elements of
influence buyer behavior and the process of decision
making in purchase. Thus sales can be promoted
through promotion campaign, there mainly four
important tools of promotion mix which are
described as follows.
1. Advertising
2. Sales promotion
3. Personal selling
4. Publicity & Public relation
Let us study all the four promotional tools one by
one in short.
ADVERTISING:-
The American marketing association
defines advertising as “Any paid form of non personal
presentation and promotion of ideas, goods or
services by an identified sponsor.” The important or
key words on this on an advertisement, instead of
communication with customer face to face.
Companies the advertise ordinarily uses a mass
medium, television, newspaper, a radio, hoarding
18

19. etc. These messengers, when they appear; identify
clearly who has paid for them.
SALES PROMOTION:-
Sales Promotion includes a wide variety of
tools and sales promotion is a direct inducement
which offers an extra value and incentive for the
product to the sales force, distributors or the
ultimate customer.
Sales promotion methods are useful means of
stimulating a quick and immediate response from
customer coupons, music cassettes, free samples
and free demonstration and just as few examples of
many forms that sales promotion may take.
PERSONAL SELLING:-
Personal selling involves a one to one
relationship with a customer. It is the oral
presentation of tangible and intangible product by a
seller to a prospect for the purpose of completing an
exchange.
The benefit of personal selling is that it
allows sales personnel to judge the relationship of
customer to their sales presentation and thus, gives
us an opportunity to very the message for better
understanding. It is not suited to the mass
distribution consumer product.
PUBLICITY:-
Publicity is formally defined as “any form of
non-paid advertisement and communication.” In
general it increases consumer awareness of a
company of its products particularly new and
19

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

22. INDEX OF ADVERTISING
Serial Particulars
No.
(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

24. INTRODUCTION
Advertising is one of the five major roles. Companies
use direct persuasive communication to target
buyers and public. It is because mass markets at
reasonable costs. It is too costly and time consuming
to use only sales people in large geographically drive
markets. However, where as personal selling or
direct selling can be tailored to the individual
prospect mass communicators try to reach many
people with a common massage. This ultimately
results into mass communication at a reasonable
cost.
Advertising is the most important promotion tool
among all the other tools of promotion. There will be
hardly a field of business in which advertising is not
used for sales expansion. It is not exaggeration to
say that “MODERN AGE IS THE AGE OF
ADVERTISING”. It is the foundation of modern trade
and industry.
From the above discussion EUREKA FORBES
LIMITED give advertising in newspaper or in
magazines in yearly or in Diwali. But in television
EUREKA FORBES LIMITED gives advertising regally
on every channel.
24

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. 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. 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.  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. 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. 2. OUTDOOR ADVERTISING:-
EUREKA FORBES LIMITED had adopted
posters, hoarding and electric display as media of
outdoor advertising. They are giving importance to
this media because it has long life and wide appeal
and also because it can attract attention of
numerous people. EUREKA FORBES LIMITED has
been taking into consideration some important point
while giving advertising through its media such as
the place of the posters, hoardings, electric display
and rules and regulation levied by the government.
They choose the local place for this purpose.
However, they are not giving too much
importance to this media because of its effectiveness
can not be accurately measured and it may be lead
to considerable wastage also. Further it is not useful
in selective advertisement.
3. DIRECT MAIL ADVERTISING:-
The direct mail advertising is the vehicle for
transmitting the message in printed, written or
processed form with control in distribution. Direct to
selected individual. EUREKA FORBES LIMITED is
also using this media of advertising in the form of
booklet and personal letters that are described as
under.
4. RADIO ADVERTISING:-
30

31. EUREKA FORBES LIMITED is using this
media because it is suitable for some illiterate people
and also because spoken words have greater impact
than written words. They advertise their product on
radio before and after giving much more importance
to this media because it can not detailed information
and has low memory value.
5. TELEVISION ADVERTISING:-
EUREKA FORBES LIMITED is using
television as an important media of advertisement.
They advertise their products on ZEE TV, STAR
PLUS, and SONY TV etc. regularly before very
popular programmers. So that it can attract more
prospective customers. They are giving much
importance to television advertisement.
So, EUREKA FORBES LIMITED give advertise
of its product through above media but its main
source is “DOOR TO DOOR SELLING” according to
EUREKA FORBES LIMITED it is the best way for it to
increase the sales. So it gives much importance to
“DOOR TO DOOR SELLING.”
31

32. ADVERTISEMENT THEME OF
APPEAL
The theme of appeal is control idea around
which the advertisement is created. It is called the
unique sales promotion. There are various appeals
used in advertisement to sell product or service. The
selection of theme of appeals is usually made by
means of consumer study and research, is that they
have got the knowledge about the types of
prospective customers, their style of living, social
class to which they belong and kind of approach
them need, they have conducted this research to
form the advertising theme also.
After a proper consideration, EUREKA FORBES
LIMITED has selected following theme for vacuum
cleaner and water purifier.
1. THEME OF PRIDE:-
Generally vacuum cleaner in EUREKA
ORBES LIMITED is sold with the theme of pride
appearing to upper class and rich class. It appeals
the theme of pride by saying the statement that
EUREKA FORBES LIMITED.
2. THEME OF EASE IN COMFORT:-
In EUREKA FORBES LIMITED vacuum
cleaner is sold through advertisement with the theme
of easy in operation. It says that the time of cleaning
your house with the help of vacuum cleaner the
32

33. operation is so easy just on the switch take in hand
of EURO CLEAN (XL) and get house clean in few
minutes.
3. TO SAY ABOUT MODE OF SELLING:-
In the advertisement of vacuum cleaner
and aqua guard water purifier of EUREKA FORBES
LIMITED, this theme is also pointed out. In
advertisement, it says that you need not to go
anywhere to buy vacuum cleaner and aqua guard
water purifier of EUREKA FORBES LIITED. Just
make us call and our salesman reach at your home
as fast as possible to demonstrate the item.
ADVETISING AGENCY
Advertising agency can be explain in briefly
as “The organization undertaken the task of planning
and executing the advertising programmes on behalf
their clients.
The advertising agency take the brief form
of the marketing and advertising department of the
client company and learns everything about the
product to be advertised, the budget meant for it’s
the objectives of advertising programmes etc., with
the help of brief idea they create advertisement, the
take copyrights of writers who wrote advertising
message, its layout and several advertising copies for
the approval of the clients of marketing department
on finalizing the advertising coy the agency in
consultation with clients prepares a media plan in
which the message will be put, the time frequency
etc, also included in this. The advertising copy is
given to reduction department, which prepares the
final art work to be given to the broad casting and
television media.
Regarding the organization needs to
perform the message of the advertising activities in a
company, management has three objectives.
33

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. eyes of the buyers who are also outsiders; this
objectively is not possible for an advertisement
department of the company.
Finally the media owner pays the agency.
The company pays nothing for the use of an agency
while buying advertising space. He pays the same
cost if the places an advertisement directly with the
media partner.
The EUREKA FORBES LIMITED gives the
agency. The company pays nothing for the use of an
agency while buying advertising directly with the
media owner.
The EUREKA FORBES LIMITED gives the
design, size, color, etc. of the product to the agency.
The advertisement, selection of media, placement of
advertises, advertising research study of audience
these app characteristics are performed by the
“O&M”, Mumbai. It receives about 15% of
commission from the media owner also.
ADVERTISING COPY
The term copy refers to a material which is
to be set type of the print media or spoken by
announcer for broad case commercial. Advertising
copy is the most important and critical activity for
the success of the entire advertising of the company
depends on it to a large extent. Advertising copy is a
key activity in advertising indeed a creative activity.
A copy transits the sealing point of a client’s product
or say and who in an advertisement that how to say
and show it. He is called upon to alter all his creative
talent to present those product benefits which best
appeal to consumers.
35

36. Advertising copy includes all the element of
an advertising message whatever printed or broad
cast. In advertising for the print media it includes
the heading, subheading, and picture. EUREKA
FORBES LIMITED, cartoons and body of the
advertisement. It may even include trade marks, the
company logo, border and music in addition to words
spoken in the advertisement message. TV has the
domination of motion in addition to that of TV
includes the words o be spoken by the characters in
the scripts plus music and sound effect as well as
illustrative materials. Action and even camera effect
also.
36

37. QUALITIES OF GOOD ADVERTISING COPY
o 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 musical
o It may a personality symbol.
37

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 method
o Competitive comparison method
o Percentage on sales method
o Return on investment method
o 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

40. INDEX OF SALES PROMOTION
Serial PARTICULARS
No.
(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. INTRODUCTION
Sales promotion is an important
instrument in marketing efforts today, sales
promotion is a necessity not merely a luxury or a
fashion. It is not expenditure; it is an investment
which can pay rich dividends. It is an integral part of
the marketing activities.
Sales promotion is one of the most loosely
used terms in the marketing vocabulary. Sales
promotion consists of diverse collection of incentives
tools, mostly short term designed to stimulate
quicker and greater purchase of particular products
by consumers or the trade. In other words, sales
promotion consists of those activities that are
intended to stimulate customer demanded and
improve the marketing performance of seller. In
short, where as advertising offers reasons to buy
sales promotion offers incentives to buy.
Sales promotion includes tools for
consumer promotion [E.g. samples, coupons, cash
refunds offer, price off, premium rewards, free trials,
warranties, demonstration contest etc. Trade
promotion [e.g., Buying allowance, free goods,
merchandise] and sales force promotion [e.g. bonus,
contest, sales relies]. In short, sales promotion is a
bridge or connecting link between advertising and
personal selling.
41

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. SALES PROMOTION TOOLS
Many sales promotion tools are available to
accomplish sales promotion objectives. The
promotion planner should take into account the type
of the market. Sales promotion objectives,
competitive conditions and cost effectiveness of each
tool. We will now consider the main sales promotion
tools used by EUREKA FORBES LIMITED for
consumer’s promotion, trade promotion and sales
force promotion.
CONSUMER PROMOTION TOOLS
Major consumer promotion tools used by
the EUREKA FORBES LIMITED are as under.
WARRANTY:-
Product warranty is important promotional
tool, especially as consumers become more quality
sensitive. Vacuum cleaner [Euro clean XL] are
warranted against defects arising from factory
design, workmanship and materials for a period of
24 moths form the date of invoice as well as aqua
guard water purifier are also warranted for a period
of 12 months from the date of invoice. Both above
products are warranted subject to following
condition.
43

44. CONDITION:-
The customer will notify the company
promptly of any defect noticed opportunity to
inspect, test and remedy then for which the
customer deposited the goods, if necessary with the
customer deposit the goods if necessary with the
company’s office/service center with invoice in the
city where are sold.
Inspection and test reports of company’s
office/service center will be treated as final and
binding under the warranty for determining defects,
repairs alternations required or cried out certifying
working of the goods thereafter.
The company or its authorized agent will be
entitled to retain any defective part replaced under
the warranty period.
The company’s liability under the warranty
period will be limited only to be defects, which occur
under condition of normal operation, and under
proper use. It excludes defects occurring because of
abuse, faculty care or maintenance, repair alteration
to goods or parts by other use on electrical supply for
which the goods are not designed or to damage
caused by lighting or other electrical are not covered
by this warranty.
44

45. Components subjects to wear such as
carbon, brushed and accessories are not covered by
this warranty.
The customer will have not claim under
this warranty in respect of any personal injury,
damage or consequently accordance with operational
manual.
AFTER SALES SERVICES:-
In EUREKA FORBES LIMITED, the
customer may be offered a service contact with the
company on the expiry of the warranty of the goods
brought to its service center by the customers.
FREE TRIAL:-
In EUREKA FORBES LIMITED, free trial
consists of inviting prospective purchases to try the
product without any type of payment and after trying
it if purchase is satisfied they can purchase the
product. Prospective buyers are invited through
personal letters.
DEMONSTRATION:-
In EUREKA FORBES LIMITED, there is
door to door selling called direct selling. Salesman
goes to prospective customer’s house and gives the
complete knowledge about the product. i.e. Type of
products, different types of accessories used in the
product, its superiority in operation and different
types of uses. He gives them live demonstration if
prospective customers ring up. Then they also go to
their office also. Demonstration is one of the
important tool for EUREKA FORBES LIMITED and
they increase their sales from the demonstration.
Thus it is the very important part of customer
promotion tool by which company comes in direct
45

46. contact with prospective buyer and tries to
understand their demand and solve their problem
which can ultimately increase the sales of the
company’s product.
PREMIUM:-
Premium or gifts are merchandise offers at
a relatively low cost or free as an incentive to
purchase. In EUREKA FORBES LIMITED also, it
gives one bag free with Euro clean XL and Aqua
Guard.
TRADE PROMOTION TOOLS
There are number of manufacturers are
using a number of trade promotion tools due to
below objectives:-
Trade promotion tools can easily persuade
the retailer or whole seller to carry the brand.
Trade promotion can include the retailer to
promote the brand by display features of product
and price reductions.
Trade promotion can stimulate retailers
and trade sales clerk to push the product.
In EUREKA FORBES LIMITED, company is
not giving any types of trade promotion such as price
off, allowance, free goods because company has not
whole seller or retailer. Instead of them, company
has its own more than 200 branches all over India.
Because of the disadvantages of whole selling and
retailing, company has opened its own branches all
over India, providing direct service to the prospective
customers.
46

47. BUSINESS PROMOTION TOOLS
EUREKA FORBES LIMITED spends too
much of business promotion. These tools are used
for such purpose as gathering business leads,
impressing and rewarding prospective customer and
stimulating the sales force to gather more effort. The
main tools of business promotion tools are as
under:-
DISPLAYING IN EXHIBITION, FAIR ETC.
EUREKA FORBES LIMITED takes part in
different exhibitions and fairs. Generally this type of
fairs and exhibitions are held by some other
authority at the time of some festivals such as
Navratri, Janmashtami, Diwali etc. and in those fairs
and exhibition companies books their stole and give
live demonstration. Same way EUREKA FORBES
LIMITED buys the space and set up display to
demonstration their product. Thus the cost of these
tools is very much less, but values of this are too
much high. There are number of people attend this
types of fair and exhibitions and same into the
contact with the company and its uses.
SALES CONTEST:-
In EUREKA FORBES LIMITED, sales
contest is a contest involving the sales force aimed at
including them to increase their sales over a stated
period with price going to those who secede.
In EUREKA FORBES LIMITED, sales target
is decided first by the company. In this direct
47

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 PROMOTION
PROGRAMME.
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. develop the sales promotion programme taking into
account following consideration:-
SIZE OF AN INCENTIVE:-
According to EUREKA FORBES LIMITED, a
certain minimum incentive is necessary for the
success of promotion. A higher incentives level will
produce more sales response. But at a diminishing
rate so company fixes the sizes in between low and
high.
e.g. Company is arranging sales contest. Then if it
gives too much less incentive then nobody will go for
this 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 to
successful sales person.
Thus, size of incentives in EUREKA
FORBES LIMITED is fixed after taking into
consideration the financial availability and benefit
derived form that incentive.
CONDITION FOR PARTICIPATING:-
Here the decision is taken about, the
incentive that might be offered to everyone or to
selected groups.
DURATION OF PROMOTION:-
In EUREKA FORBES LIMITED, in case of
consumer promotion tools, the duration of warranty
is fixed like 1 year and 2 year in Aqua guard and
Vacuum cleaner. This duration is fixed after taking
into consideration the technical aspect of the
product.
SALES PROMOTION BUDGETS:-
49

50. Finally, the market decides the sales
promotion budget. In EUREKA FORBES LOMITED,
the method of determining the sales promotion
budget is very simple. They fix budget on the basis of
conventional percentage of the total promotion
budget. They have sales promotion budget is 15% of
the total promotion budget.
After determining the proper sales promotion
programme, it is implemented at a stipulated time.
Evaluation of sales promotion programme is done in
EUREKA FORBES LIMITED i.e. comparing the sales
figures before and after the implementation of sales
promotion programme.
50

51. INDEX OF PERSONAL SELLING
51

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 too
much importance to personal selling rather than
advertising and sales promotion. There are no
retailers or wholesalers for company product so this
personal selling system also known as direct selling
52

53. system also known as direct selling system. So in
this way in EUREKA FORBES LIMITED, there is a
direct selling system.
From the above definition it can be said
that personal selling is an art but according to
EUREKA FORBES LIMITED, it is both science and
art.
An art is “SKILL IN PERFORMANCE
ACQUIRED BY STUDY AND OBSERVATION AND
EXPENDITURE” viewed in this manner,
salesmanship is an art, and salesmanship requires a
certain aptitude or talent, a certain type of
personality. A salesman must posses a certain skill
can be acquired and developed.
A science has been defined as
“SYSTEMATISED KNOWLEDGE”. Salesmanship can
be considered as science according to this view
because it is based on certain standard principal and
theory. However, salesmanship is not an exact
science compare to physics or other, but it is a
science based in Human Psychology. It can be
considered a “SOCIAL SCIENCE.”
INTRODUCTION
53

54. The term “Personal selling”, itself signifies
the meaning i.e. a person goes to the customer and
introduce the product with a view to sell the product.
A salesman is one who practices the profession of
selling. Personal selling refers to the oral
presentation in conversation by a sales
representative with one or more prospective
customer for the purpose of making sales. No other
tool for promotion is as strong as personal selling or
salesmanship.
Personal selling is highly distinctive and
the only form of promotion involving face to face
(direct) relationship or interpersonal interaction
communication between a sales person and one or
more prospective customers.
Personal selling has been defined by
Russell and Beech as “It is the art of persuading the
people to purchase goods which will give off lasting
satisfaction by using methods which consume the
least time and efforts.”
54

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. ESSENTIAL OF EFFECTIVE
SELLING
According to EUREKA FORBES LIMITED, the
leader of personal selling, personal salesman should
be well equated with five EUREKA FORBES LIMITED
departments. These five pre-requirements can be
summarized as follows.
KNOWLEDGE OF YOUR COMPANY:-
Some products are not joined on their own
merit but the name of the company that
manufactures them. Hence salesman must be
company oriented. The facts about it the company
must be at his prospect about your firm so that they
may decide to do business with your firm.
KNOWLEDGE OF YOUR PRODUCT:-
A salesman knows all about his product
like raw-material from which it is made, how it is
used. It is maintained product features customers
benefits, selling points of the product in relating to
its rival and so on without having the adequate
knowledge about vacuum cleaner, and Aqua-guard,
a salesman can not convience the prospect and
convert him into a customer.
KNOWLEDGE OF COMPETITION:-
A salesman should constantly study the
product offered by his competitors and determine
their strength and weakness in comparison to his
own products. Though knowledge of the company its
product is and its competitors constitutes the solid
56

57. background of essential information for effective
selling buyer have faith on well informed salesman.
KNOWLEDGE OF CUSTOMERS:-
A salesman must have knowledge about
the customer’s wants and desires; customer’s buying
process, their perception, innovation and learning
process. Sales presentation can not be effective
unless a salesman knows about factors influencing
buyer behaviour.
KNOWLEDGE OF SELLING PROCESS
A salesman should have adequate
knowledge about selling process. It should be
informed of all the stages of selling process like
prospecting, presentation and post sales activities
etc. The salesman can use A I D A S formula i.e.
Attention,
Interest,
Desire,
Action and
Satisfaction
57

58. TYPES OF SALESMAN
The following is the chart of showing types of
salesman:-
Different Types
Of
Salesman
Industrial Merchant Consumer
Salesmanship Salesmanship Salesmanship
Specialty Missionary
Salesman Salesman
Creative Detail
Salesman Salesman
All are traveling salesman in chart at specific sales
territory.
58

59. DETAILS OF SALESMANSHIP
INDUSTRIAL SALESMANSHIP
Industrial salesmanship needs a technical
background in engineering or chemistry to
understand the problems and also know the
language of technically trained agents. Industrial
salesman represent manufactures or wholesalers etc,
for highly technical training are employed to study
the customer problems, recommended proper
equipment, supervise the installation and train user
in its operations.
MERCHANT SALESMANSHIP:-
It involves quantity selling of all types of
consumer goods (convenience, shopping and special
goods) to resellers. They operate the consumer good
market we have 4 types of more merchant salesman.
[SPECIALITY SALESMAN]
He is called upon the sell consumer
specialities such as vacuum cleaner, refrigerator,
cosmetics etc. They also sell in industrial product
and materials supplies etc.
These salesmen specialize in introducing
new product or innovation in the market. They adopt
the technique of aggressive salesmanship.
[MISSIONARY SALESMAN]
59

60. They are responsible for promoting sales
and create a demand they help much out in
arranging stores, display planning store, sales and
helping in all merchandise activities.
[CREATIVE SALESMAN]
They are the salesman who seeks to
introduce a new product or a new brand into the
market. They create a demand for such novelty they
are pioneer salesman.
CONSUMER SALESMANSHIP
It helps the customer to take purchase
decision i.e. in the store to buy “NOW” i.e. on the
spot. They also create strong patronage a store
loyalty to ensure repeat purchase by customers. It is
required for selling high cost articles, e.g.
automobile, refrigerators, television sets etc.
In EUREKA FORBES LIMITED, we find especially
creative salesman. They are expert in introducing
new products and innovations in the markets. They
are able to create demand for both introducible
products with their creative stall of salesmanship.
60

61. RECRUITMENT OF
SALESMAN
Recruitment refers to process of searching
for prospective employee and inducing them to apply
for job. It is the most important function because
unless the right type of people is hired even the best
plan and organization system would not do much
good. Systematic recruitment of salesman leads to
greater productivity. Higher more able in labour
turnover and better resolution of the concern.
In EUREKA FORBES LIMITED, first of all
recruitment policy is established when it is found
that there is a need of salesman. They get
information about prospective employee
recommended form present employee or former
employee of the organization. They evaluate the
information collected by them and make decision to
select to reject prospective salesman. They also give
advertisement in local newspaper, trade journals and
magazines. Interviews are held up a proper selection
process in made after consideration.
61

62. SELECTION OF SALESMAN
Selection is the processes in which
candidates for employment are divide into classes
those who are offered employment and those who are
not.
While selecting the salesman in EUREKA
FORBES LIMITED following qualities are taken into
consideration.
[A] PHYSICAL QUALITIES
According to EUREKA FORBES LIMITED,
salesman should have a good physical appearance
which is a very big asset for a salesman. According
to them, he should be well built and free from
physical defects, he should have appropriate dress,
clean appearance, a good posture in creature a good
first impression. A salesman must always have
cheerful smile in his face.
[B] SOCIAL QUALITIES
A salesman is required to move in different
cities to meet many customers and set along with
them. He must therefore develop a good social
behaviour. A salesman must always cultivate good
manners. According to EUREKA FORBES LIMITED,
a salesman must be polite and respectful and never
become unduly familiar with his customers, courtesy
in dealing with customers using polite expressions
and a sincere desire to please customers are very
necessary for success in salesmanship.
62

63. [C] MENTAL QUALITIES
According to EUREKA FORBES LIMITED,
the mental make up of a salesman must be
conductive to success. He should have a good power
of memory and ostentation. Each must be able to
recognize the customers, their characters and their
buying motives and adjust his sales according. He
must be alert and always on his toes. He should be
self-confident.
[D] MORAL QUALITIES
Honesty and integrity are the essential
character qualities of a salesman. Customer must be
willing to depend on the salesman. Creating of
goodwill and a name of fair and honest dealing are
essential in business. A salesman must be loyal both
to his employer and customers, there are also
various other qualities, which a salesman must
develop in order to become successful.
While taking the interview and these qualities
matched with prospective salesman character and if
there is best match between the two he is selected as
a salesman of the company.
63

64. TRAINING AND COMPENSATION
PLAN
TRAINING
In EUREKA FORBES LIMITED, training
plays the major role the people in EUREKA FORBES
LIMITED are given a class room training of 2 to 3
days in which knowledge of the company, direct
selling [personal selling], product knowledge
information is covered. After the sales persons are
given field training in which a senior sales person
accompanies him and he is made to observe the
actions and reactions of the customers and sales
persons. These types of field training are given for 15
to 30 days. After that if salesman is ready to go alone
then he will be given specific sales target in for
particular month and if he will succeed in selling the
specific target then he will be promoted.
COMPENSATION PLAN
EUREKA FORBES LIMITED is the best
company, which as the best compensation plan for
their sales force. A part of it’s paid in the firm of
basis and field allowance. But the company believed
in “GIVE AND TAKE POLICY’’ it is so said in
EUREKA FORBES LIMITED, that it is the highest
paid for hard work and lowest paid for lower work.
The company has various slab for commission in
which sales persons can earn as much as his own
EUREKA FORBES LIMITED, who can sell average 20
units per month can earn more than Rs. 5000/-.
64

65. PERSONAL SELLING SYSTEM
The system approach is useful for
understanding the elements of personal selling
strategy. The sales system under the system
approach is presented in the following diagram.
Sales
System
Input Transformation Outputs
Human
Changed Customers
Technological Sales Process
Changed sellers
Organization
SYSTEM BOUNDERS
ENVIRONMENT
ENVIRONMENTAL PROCESS [UNCONTROLLABLE]
ENVIRONMENTAL ALTERNATIVES
[CONTROLLABLE]
INPUTS:-
The environment provides the inputs to the
sales situation from which the sales manager selects
more favourable combination of inputs in order to
fulfill his sales objectives.
65

66. (1) Technological inputs
(2) Human Inputs
(3) Organizational input
TRANSPORTATION PROCESS
The transportation process to influence by
the combination and working of the outputs.
FEEDBACK:-
Feedback refers to the return flow of
information from the sales encounter. Such
information can be used to modify the selling
system. The performance of salesman is evaluated by
the sales manager even by the group leader of the
salesman.
OUTPUT:-
The effectiveness of the system and its
various survivals depends upon transforming the
prospect into a buyer. Consumers’ attitude
purchases the product are also the outputs.
EUREKA FORBES LIMITED practice spot
purchase. Once the salesman to the prospective
consumer, he gives demonstration of the product
and the prospective customer has to take immediate
decision whether he is interested the salesman takes
the order and there after on the next day customer
gets the delivery of the product.
Hence the salesforce of the every business
or company they are the focal point of he marketing
66

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 and
suspicious.
The salesman of this company through
keep observation and study can trace the individual
peculiarities of his prospect on the basis of his
knowledge and he adopts his sales talk to secure
favorable result.
The prospective customer is not classified
by the sales status wiz, how ever they do
classification of the future customer according to
their profession as under.
Businessman
Government servants
Professionals
Industrialist
Service class
Businessmen do not react or respond in a
very manner forward the company’s product and
their purchase are always varying.
Government servants are the most
responsive group of customer, they mostly react
positively towards the purchase of the product.
67

68. Professionals are generally educated
advanced class of society. They have got advanced
thinking hence mostly they are the adopter pf the
company product.
Industrialist does not behave in a specific
manner towards the product the response is not
always predictable.
Generally the purchases of service class
customer are seasonal i.e. during festivals like
DIWALI.
The upper-middle and middle class people
mostly purchase the products of the company
because they are the class of people who are eager to
utilize the best available service in the market. As
they have planned their purchase either by cash i.e.
once a year on Diwali bonus or sometime through
loans and hence to maintain their standard in every
manner. In the present society and the environment
they are the first people to buy the given advantages.
68

69. PERSONAL SELLING PROCESS
Personal selling refers to organizational
presentation in conversion with one or more
prospective customers for the purchase making
sales.
In EUREKA FORBES LIMITED, the process of
personal selling is as under.
PERSONAL SELLING PROCESS
PROSPECT
PRE-APPROACH
MEETING OBJECTION
CLOSING THE SALES
FOLLOW-UP
69

70. [1] PROSPECTING:-
The first step is to develop a list of existing
prospectus and potential customer having need of
the product purchasing power, intension to pay and
authority to purchase. Prospectus can be qualified
by examining their financial ability volume of
business special requirement, location and little
hood of continues business.
[2] PRE-APPROACH
Once prospectuses are located and
qualified salesman should find out his needs and
problems and to be solved them. He should find out
their habits. Nature behaviour etc. On the basis of
adequate information of the customers salesman can
prepare his plan of sales presentation or interview on
the basis of this pre-approach.
[3] APPROACH SALES PRESENTATION
The third step is the stage where the
salesman comes face to face with the prospect
customers. This point consists of the two major parts
obtaining as interview and the first contract. The
salesman may use various means of obtaining
interview generally in EUREKA FORBES LIMITED.
The salesman directing goes to the house of
prospective customers, introduce himself with the
interview what is more important here first contact.
Salesman must be able to attract prospects attention
and get him interested in the product.
70

71. [4] SALES PRESENTATION
Once the salesman has sought and found
potential customer and they has matched their
wants with his product he is ready to formally
present product of company to the customer.
EUREKA FORBES LIMITED, the salesman present
the sales in such a way, which is closely related to
buying, process of customers. It is presented in the
language that prospect can understand easily. They
adopt sales interview generally through AIDAS
theory, securing attention is the first step after that
to create interest is the second step. Many devices
are used to arouse and increase interest in the
product salesman of EUREKA FORBES LIMITED is
doing this through frying and interaction sales talk
as well as through actual free demonstration of the
product and its operation wherever feasible.
[5] MEETING OBJECTIONS:-
Objectives and reactions represent
feedback to salesman communication. They reflect
growing interest of the customer in the product. The
salesman of EUREKA FORBES LIMITED welcomes
these objections and reactions because unless the
objection is satisfactory solved, the sales cannot take
place. Prospects that refuse objections are easier to
satisfy than a prospect that shows not any interest
in the product.
71

72. [6] CLOSING THE SALES
The close is the act of actually getting the
prospects assent to buy the product. It is very good
efforts so far made by the salesman and is therefore
the climax of the entire sales process. Here salesman
watches for every sign which may indicate that the
prospect is willing to buy and apply to close. He also
remembers that initiative must be come from him.
According to EUREKA FORBES LIMITED, a sale is
never complete until the product is finally in the
hands of a satisfied user. Salesman alone can assure
such competition of sales.
[7] FOLLOW-UP
The purchase decision does not complete
the salesman’s task. In EUREKA FORBES LIMITED,
he writes the order, arranges for dispatch and
delivery of product, assures buyer on the wisdom of
his decision and minimize his dissatisfaction if any.
The salesman contacts the customer frequently to
maintain his goodwill and smooth relation over and
above to solve post sales problems the follow up is a
good source of feedback to the salesman.
72

73. Achievement:-
Eureka Forbes is now a Case Study in
Harvard Business School
Eureka Forbes Limited, the pioneer of
Direct Sales in India, entered the hallowed portals of
Harvard Business School by joining the band of
select companies which have become a case study in
its MBA classrooms. Today, 900 students at this
globally recognized center of business education,
began studying a case based on Eureka Forbes,
titled “Managing the sales Effort” written by
Professor Das Narayandas of this school, assisted by
senior researcher Kerry Hermann form the Global
Research Group.
Mr. Suresh Goklaney, Managing Director of
Eureka Forbes, himself an alumnus, was in Boston
on invitation form the Harvard Business School and
said “The 5500 salespersons working for Eureka
Forbes – whom we fondly call Euro champs – will be
delighted that the unique and young company which
they have created over the last 24 years has been
found worthy by Harvard Business School to write a
case study on”.
Eureka Forbes, about to go into its Silver Jubilee
year, has notched up an impressive turnover of Rs.
6.1 Billion (Rs. 610 crores) selling premium life style
products like water purifiers and vacuum cleaners
which bring better health to the families of their
customers. In the growing sunrise markets of water
purification and vacuum cleaning, Eureka Forbes
enjoys market shares upwards of 70% through its
brands Aquaguard and Euroclean respectively. In
the year 2004, Aquaguard was choosen as a
“Superbrand” by a panel of eminent persons in the
Indian industry.
73

74. 74

75. PUBLICITY AND PUBLIC RELATION
Sr. 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
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76. PUBLICITY
INTRODUCTION:-
Publicity is also called marketing public
relation, publicity is not form by the organization,
and publicity comes form news reporters, columnist
and journalist people. It comes to the receiver as the
truth rather than as a commercial public relation
and publicity taken together become the forth major
ingredient of promotion mix. These activities are
however not controllable by the firm, every firm tries
to create a good relation as to give good publicity
under the social; marketing concept publicity and
public relation are assuming unique importance in
the 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 government
regulations and soon the firm having a poor public
image will have lower sales and lower profit.
IMPORTANCE OF PUBLICITY:-
Now a day in each and every company,
publicity is required, without publicity cannot
increase its production and cannot achieve its sales
target and profit. So each and every company tries to
five more and more publicity. Advertising is the main
source of publicity for EUREKA FORBES LIMITED.
By the way of advertising company want to
attract consumers and tries to increase sales volume
of which the company is able to increase its profit.
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77. So publicity is helpful for making good public
relation. The company creates good public relations
so as to give publicity.
BENEFITS OF PUBLICITY:-
Publicity is essentially aimed at building
positive image, goodwill or favorable visibility has
acquired a sound footing to assist a company in its
marketing efforts.
Publicity is helpful in creating food public
relations. It is major ingredient of promotion mix. It
is nor personal stimulation of demand for a product,
service, or business unit. It helps in creating sales
and profit to the organization.
In EUREKA FORBES LIMITED, through
publicity company has been able to achieve sales
target and also it is helpful in creating good public
relations.
LIMITATION OF PUBLICITY:-
The firm having poor publicity image will
have lower sales and lower profit. Unfair trade
practices often result in favorable publicity of a firm.
Defective product and product image also creates
negative publicity.
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78. PUBLIC RELATIONS
INTRODUCTION
Public relation is another important
promotion tool which until recently was treated as a
marketing step child but not become an important
marketing function. The total process of building
goodwill towards business enterprise and securing a
right public image of the company is called public
relation. It is creating a favorable atmosphere force
complement advertising by certain communication is
not possible without establishing and maintains
mutual understanding between the company and its
customers.
Public relation activities typically are
designed to build or maintain a favourable
relationship with its various publics, customers,
stock holders, employees, labor unions, the local
community and the government.
EUREKA FORBES LIMITED is also giving
importance to public relation because their
processes are nothing but it pays too much. In
EUREKA FORBES LIMITED, there is one separate
department for public relation and its staff is so busy
in relation with various public stock holders,
employees, legislators, etc.
OBJECTIVES OF PUBLIC RELATION:-
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79. After each and every activity there should
be some objective. EUREKA FORBES LIMITED has
also some objectives for adopting public as major
marketing tools.
They are as follows.
To assist in the launch of new product
To assist in requisitioning nature product
To build up interest in product category
To influence specific target group
To build the corporate image in a way that project
favourable on its products.
PARTIES TO PUBLIC RELATIONS:-
There are various public groups, which are
related to public relations. They are employees,
customers, share holders, community etc. EUREKA
FORBES LIMITED maintains the good relation with
all these parties in following way.
EMPLOYEES:-
It is the most important factor for smooth
function of business without employees. EUREKA
FORBES LIMITED is aware of significance of
employees because in the absence of employees the
production process and other activities of business
come to stand and end. EUREKA FORBES LIMITED
is maintaining good and harmonious relations with
employees so that they can give their best to the
organizations. EUREKA FORBES LIMITED provides
fix rate or wages, timely wages, extra benefit like
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80. facility of loans contribution towards PF, Bonus, and
Commission etc.
CUSTOMERS:-
It is necessary to maintain contact with
both the actual and prospective customers EUREKA
FORBES LIMITED aims to create more and more
customers by fulfilling their needs and wants.
EUREKA FORBES LIMITED provides the after sales
service form time to time. It also service the
customer ego through giving best items.
GOVERNMENT:-
EUREKA FORBES LIMITED is maintaining
good relation with government by paying regular
taxes and following rules and regulations framed by
the government.
LOCAL COMMUNITY:-
EUREKA FORBES LIMITED recognized its
responsibility to community in which it is doing its
business. As their motto “ALWAYS THE BEST” their
remains nothing more to say about company’s
relations with maintain the public interest which
creates good public relation. EUREKA FORBES
LIMITED provides good service to its customers on
regular basis.
SUPPLIERS, CREDITORS ETC:-
EUREKA FORBES LIMITED of course
keeps cardinal relations with its supplier to ensure
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81. regular delivery of goods at reasonable price,
preference in case of material shortage, intimation
about forth coming shortages, information about the
new developed substitute, prolonged payment in
case of temporary liquidity crises. They people also
maintain food relations with creditors to ensure
favourable term of credit.
OTHER PARTY:-
Other party will include press, radio and
TV Company EUREKA FORBES LIMITED maintains
constant and cardinal relations with them. EUREKA
FORBES LIMITED gives regularly advertisement in
TV, Radio and Press.
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82. MAJOR TOOLS OF PUBLIC
RELATION IN MARKETING:-
There are various tools in marketing for
public relations. Some of them are as under.
Publications
Events
News
Speeches
Public Service Activities
Identity Media
Explanation regarding some of above is given as
under.
[1] NEWS:-
In EUREKA FORBES LIMITED, company’s
professional also is to find and create favourable
points about company and prepare news in that
point. News generation requires skill in developing a
story concept and researching at extensively.
[2] Events:-
EUREKA FORBES LIMITED arranges
special events to draw attention to its new products
or to other activity of company. Event includes new
conference, seminars, exhibitions, competitions etc.
[3] Written Material:-
EUREKA FORBES LIMITED relies extensively
on written material to reach and influence their large
market. These include reports, broachers and
literature.
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83. CONCLUSION
On the ball’s of the comprehensive research of
the EUREKA FORBES LIMITED, it can be concluded
that the position of the EUREKA FORBES LIMITED
in comparison to its competitors is very strong. The
well experienced, efficient and industrial sales force
of EUREKA FORBES LIMITED is the strength of it.
They are the first to introduce vacuum cleaner in
India with the direct selling as a greater tool of
promotional mix. In a very short span of time, they
have achieved great success.
Today the “Vacuum cleaner” & “Water Purifier”
have necessary requirement of the person who are
very much conscious about health rather than
luxury item its demand increasing day by day. With
the increase in demand may new companies have
also entered in this market so EUREKA FORBES
LIMITED has to complete with all these competitors
very much.
EUREKA FORBES LIMITED has created good
brand age also. However one of their weak points is
less importance given to other tools of promotion mix
compare to direct selling.
Thus it can conclude that the company has
bright and prosperous future ahead.
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84. SUGGESTIONS
From the overall study of the promotional
mix of the EUREKA FORBES LIMITED, it can be
suggested that,
[1] As it is good that they are giving too much
importance to personal selling but they have to give
importance to advertising and other tool at
promotion mix also. Because advertising and other
promotion tools has their own importance.
[2] In today’s world consumer are becoming aware
at market and market policy. They want extra quality
of the product from the price, which they have paid.
People also like to get discounts, gift and other
special offer because it is their mentality hence the
company should adopt certain measures in order to
give very much importance to sales promotion
activity because it gives “Incentives to Buy” where as
advertising personal selling gives “Reason to Buy”.
[3] The company should increase compensation
provided to the salesman who will attract a better-
educated class and the existing salesman will work
with a motivation.
[4] Company should increase the training period
from six months to one year in some specific cases
and also company gives advertisement in newspaper
regularly rather than within a year.
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85. BIBLIOGRAPHY
For getting the information regarding
various aspect of promotion mix in theoretical
concept as well as practical aspect, I have taken the
reference of certain books which are as follows.
[1] Marketing Management
By:- Philip Kotler
[2] Marketing Management
By:- S.A. Sherlekar.
[3] Website - www.eurekaforbes.com
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