Eureka Forbes Ltd Case Study on Reorganizing the Sales Force

1. 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)

2. • 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

3. Eureka Forbes Products

4. 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 ?

5. • 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

6. 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

7. 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

8. 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

9. 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

10. • 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

11. 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)

12. 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.

13. • 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.

14. 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)

15. • 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

16. 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

17. • 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

18. 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

19. • 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

20. 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.

21. 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

22. 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

23. 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

24. 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?

25. QUESTION 2
How would Eureka Forbes manage to keep its
salesforce motivated when there are several
opportunities available for sales person in the
market?

26. 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?

27. • 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

28. QUESTION 4
Is the company portfolio adequate?
Comment ,argue and discuss future
direction by company

29. THANK YOU