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Eureka Forbes Ltd Case Study

Eureka Forbes Ltd is a consumer goods company based in Mumbai, India that was founded in 1982. It uses a direct sales model where employees called "EuroChamps" conduct cold calls and home demonstrations to sell water purifiers, vacuum cleaners, and other products. The document discusses Eureka Forbes' sales organization, recruitment and training of EuroChamps, their daily routines, and compensation structure. It also notes some current issues like territory conflicts and outlines changes the new CEO is making, like formalizing training and revising the compensation plan.

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Eureka Forbes Ltd - Reorganizing the Sales Force Presented by- Ruchita Dhanawade (PM-17-03) Piyali Jana (PM-17-05) Deepali kamble (PM-17-07) Pooja kukreja(PM-17-09) Sakshi Gopal Mishra (PM-17-11) Shiva Navik(PM-17-13) Nitish Pandey(PM-17-15) Shubham Mantri(PM-17-35)
• Eureka Forbes Ltd is a consumer goods company based in Mumbai, India. It was founded in 1982 and is a part of the Shapoorji Pallonji Group. • Founded: 1982 • Key people: Marzin R Shroff (MD & CEO) • Number of employees: 10,000 Eureka Forbes Ltd is a consumer goods company based in Mumbai, India. It was founded in 1982 and is a part of the
Eureka Forbes Products
1. Why does EFL think that customers will not buy purifier and Vacuum Cleaners from Retail shop? 2. Eureka Forbes is into Direct selling, should they stick to this legacy? 3. Is EFL doing a good job of training and motivating people ?
• Eureka Forbes ltd. Has a unique sales approach • 24 million cold calls • 2.4 million product demonstration are being conducted • More than 5,00,000 Euro Cleans and Aqua Guards are being sold by the FF Annually • According to EFL direct selling at homes is the best method • EurekaChamps breakdown the prospects inertia through powerful presentation, effective demonstrations, superior and customized explanation to over-come objection and close the sale
THE EFL SALES ORGANIZATION • 3 Geographical Profit and loss Regions Led by a Chief Operating Officer • Common Central Function: HR, finance, marketing, Supply Chain etc
Regional Head Deputy Divisional sales manager Divisional sales managers Senior Divisional sales manager Area Sales Manager Customer Sales Specialist EuroChamp EuroChamp Eurochamp Eurochamp The EFL Sales Organization
THE EURO CHAMP • During its early year, EFL recruited young men from middle class homes, although women joined over the time • Recruits were expected to be Extroverted, enthusiastic • “Man with the case” became an informal second company logo • EFL looks for several attitudes and skills in their potential Eurochamps such as-Minimum 2 years education ,reasonable spoken communications, interpersonal skills, financially needy • The revenue of the EFL directly depends on the Eurochamps attitude,skills and motivation • There are standard profiles to guide recruitment
A Day in the life of a Eurochamp • A Eurochamp’s primary responsibility is selling • There are host of task to be completed daily. The Eurochamp’s day begin with a 30minutes morning field meeting led by a team leader • Meetings always open with a rousing chorus of the EuroChamps anthem sung by the entire group • Team leader review each member with previous day performance and learnings among the members • Then embark on their door-knocking on about 40-50 doors by midday,(cold-calling)with objective of generating 3-4 appointments for demonstration in the evening
• By midday, the Eurochamps return to the area office to complete their daily activity reports, deposit payments, and request delivery for closed sales • Afternoon and evenings are spent closing sales, collecting payments • At the day’s end, a night field meeting is held • Additionally , Eurochamps plan for the month and recruit friends to work for the company
Recruitment • Eurochamps are recruited in a variety of ways by flyers, billboards, poster campaigns, and newspaper ads are used • Campus recruitment, which target second-tier colleges, and also relies on career fairs, held in major towns • Efforts to hire lady Eurochamps are going, but difficult to attract. • EFL’s Friend-get a friend Scheme provides incentives for employees to recruit friends. • One of EFL’s most powerful recruitment tool is its ‘Own Your Own Bike Scheme’(OYBS)
TRAINING • Newcomer + seasoned rep. • Newcomer + senior sales rep. • My First Week at EFL. • In-class training and field coaching section. • Aspiring newcomers would have only 2 days. • They also includes Supplementary material. • Here diverse individual are converted into single entity.
• Group leader , Team leader shares their daily learning, grooming tips, sales techniques and general advice to new recruiters. • Wearing appropriate attire and clean shave is important for EFL salesperson.
SUPERVISION • EuroCamps are engaged and reporting and feedback atleast 3 times daily • Supervision emphasis on 2 things: 1. Learning 2. Developing leaders • Front line work is high pressure job (which includes travelling, meeting people, carrying products and demostrations and also making presentation)
• Group leaders and team leaders address the problems and complaints from customers to EuroChamps • Detailed information is taken which helps supervision to guide the EuroChamps
Quotas and Territories • Annual quota break down into monthly quota • Requirements are: 60 Product demonstrations At least 8 sales per month Contacts 50 customers per day • Initially, sales force was small and market was large but now scene is changed and the territory conflict are seen
• Changing Demographics • Senior Representatives claims for popular territory which are assigned to new sales representatives • Absence of Formal customers contact database, seasoned rep takes advantage to gain sales referral and sales lead
Evaluation and Compensation • Eurochamps compensation include salary, rent allowance, special pay per month, a demo allowance, a leave travel concession, a holiday bonus, medical reimbursement and travel reimbursement • Base salary is scaled against length of service, total sales and average sales over the last six months
• Eurochamps who maintain and retain customers from three to six months from date of purchase earn additional Rs. 30 and Rs. 40 respectively and this cannot be exceeds Rs. 500 per months • Eurochamps achievements EFL’s Achievers Clubs Silver Circle Club • Repeat membership affords greater status like member of Champions Club
CURRENT ISSUES 1. CEO Joined the Regional Manager and EuroChamps 2. Observed Eurochamps focused on their demo 3. Important to Present themselves in front of customer 4. Responding to customer objection rejected in training 5. No longer ignore data, evidence, poor performance 6. Regional manager were not going to the fields List of issue continued to build & repeat as CEO spoke to EFL manager & sales management team. CEO decide to Make some Dramatic changes.
Formalizing Training • EFL established early in 2004 centralized Recruitment &Training Centers (CRTCs) • Formalizing training made its importance explicit • Training materials, trainers, training rooms, training benchmarks, training schedules & follow up systems were created in order to do a good job at it • CRTCs were established in eight cities EFL was most vulnerable • Training development executives
New evaluation and compensation plan EFL’s new compensation plans: • Brought confidence and positive attitude • Award rather than rewards • Encourage each and every EuroChamps • Culture of openness • Feedback to every EuroChamps
The next step • Vision of CEO of EFL “Friends For Life “ • The CEO wanted sales reps. to built bridges with customers even when they did not have anything to sell • The EuroChamps needed to focus away from worrying about how much they sell to hoe they sell • The step that were initiated were hopeful of providing a process orientation to the EFL sales force, instead of the end-result oriented approach
Question 1 Consumers today are far more sophisticated than before. Does Eureka Forbes still need to continue with its direct selling model, when consumers are already well acquainted with its product? After all, Direct selling is an expensive mans of reaching out to customers, which is justified when the product is new and hence, purchase risk is high. Besides, why would a customer tolerate the EuroChamp intruding on his time and privacy now?
QUESTION 2 How would Eureka Forbes manage to keep its salesforce motivated when there are several opportunities available for sales person in the market?
Question 3 The salesperson is the company for the customer. The Eureka Forbes salesperson does not seems to be highly motivated while doing this job. He is just carrying out the motions. Besides, the company its self not aggressive in its branding activities as it was before. Has the organization as a whole become complacent in managing its brand?
• Company should uptake the branding activities • Company must motivate to the sales rep in the training and upgrade the skills of rep • The demo equipment's must be replaced • Company should able to differentiate that how it is best from rivals
QUESTION 4 Is the company portfolio adequate? Comment ,argue and discuss future direction by company
THANK YOU