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COMPANY PROJECT REPORT

OF
INTRENSHIP PROGRAM 2009

IP COMPANY- EUREKA FOBES LIMITED

SUBMITTED TO:
MR. GAJENDRA BHARDWAJ (Company
Guide)

SUBMITTED BY:

ADITYA KHANDELWAL
FORWARDING LETTER

To : Gajendra Bhardwaj

From : Aditya Khandelwal

Date : 30/06/2009

Title : Managing the channel sales of Eureka Forbes limited.

Subject : The report on the Eureka Forbes

The report contains the following points on the Eureka


Forbes.

 Introduction of company
 Product of the company
 Analysis of the player of the industry
 Market share
 Market trends
 Differentiate from other in the industry
 Generic competitive strategies
 4Ps Analysis
 Positioning analysis
 Valuation exercise
TABLE OF CONTANTS

1. Introduction of the company

2. Product of the company

3. Analysis of the players of the industry

4. Market share

5. Market Trends

6. Differentiate from other in the industry

7. Marketing strategy

8. Generic competitive strategies

9. 4Ps analysis

10. Positioning analysis

11. Valuation exercise

12. References

ACKNOWLEDGEMENT
The completion of any report depends upon the co-oration, co-ordination and combined

efforts of several resources of knowledge inspiration and energy.

Before we get into thick of the things. We would like to add a few heartfelt

words for the people who were part of this project in numerous ways… people who gave

unending support to us in completing this project.

Firstly we thankful to Mr.Gajendra Bhardwaj, for giving us opportunity to

give us this live project by which we can understand the effectiveness of advertising and

personal selling on industrial good of your choice in your city .

INTRODUCTION OF THE COMPANY

Multi-product, Multi-channel Corporation - part of the Shapoorji Pallonji Group. About 7,000 employees are
working in the company. Eureka Forbes Ltd. is the Leader in domestic and industrial Water Purification
Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. Eureka Forbes Ltd. is the Pioneers in Direct
selling - Asia's Largest Direct Sales Organization. About 6,000 strong Direct Sales Force touches 1.50 million
Indian homes, adding 1,500 customers daily. Customer family now numbers over 6 million - enduring
relationships as friends for life. The Operations of this company is going on 125 cities & 475 towns across
India.

Eureka Forbes Ltd. also expanded channels that reach out to customers to include. This company has Over
5,000 strong Dealer Sales Network in India .and also have 58 distributors for strong Institutional Sales Network.
This company has Security Systems Division that is one of India's largest system integrators.

Eureka Forbes Ltd have a strong service network that backs up sales efforts. About 4500 company trained
technicians who make 20,000 kitchen visits daily. That is supported by Call Centers, Customer Care
Representatives & Mobile Service Vans.

Eureka Forbes - A Business Super brand .this company’s Aqua guard & Euro clean - Chosen Super brands.
This company Ranked among India's Most Admired Consumer Durable Companies. This company awarded for
The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise'
MAKE- Asia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards.

Eureka Forbes Ltd. Vision is to make a happy, healthy, and safe & pollution free environment on truest and
lasting relationship with customers.

Eureka Forbes Ltd. Mission is To Build sustainable relationship with customers as their ‘Friend for life’ by
satisfying their evolving health, hygiene and life style need through…

PRODUCT OF THE COMPANY


Eureka fobes Ltd. Majorly deals with water purifiers, vacuum cleaner, air purifiers and security solution.

WATER PURIFIERS:-
Eureka Forbes is a specialist in 5 water technologies, addressing 17 diverse water conditions. Over 71
million liters of Aqua guard water is consumed daily.

Eureka Forbes is the world's largest manufacturer of Ultraviolet based Water Purification System.
With over 20 products and over 3 million units sold.

Following are the product name.


crystal UV, ivory UV, aquaflo dx UV ,aquaflo UV, spring fresh Ro ,elegant RO, aqua care RO, RO+UV,and
aqua sure 18lt.&25lt.

VACUUM CLEANERS:-

Dusting, sweeping & swabbing does not get rid of fine dust. Even the cleanest-looking spaces harbour
dust & dirt. Dust floats in the air & settles on pillows, mattresses, furniture, dhurries & even soft toys.

Fine dust is actually living dust - microscopic, health threatening dust mites live in it. Over 19,000
dust mites in a single gram of fine dust. Dust mites cause allergies like fatigue, runny noses, itches and
even severe asthma.

Ordinary cleaning does not get rid of dust mites - only powerful, thorough cleaning with a vacuum
cleaner can. Eureka Forbes are pioneers and leaders in vacuum cleaning with over 2.5 mn satisfied
customers. Eureka Forbes has the widest range of vacuum cleaners and accessories that remove dust
& dirt from deep below surfaces, hard-to-reach places and areas where it does not seem to be present.
They are infinitely superior to conventional cleaning methods and are easy-to-use.

Following are the product name.

Easy clean, Trendy xenon, Trendy, Trendy chary.

AIR PURIFIERS:-

Indoor air is more polluted than the air outside. Polluted air causes maladies like allergies headaches, nausea,
physical aches etc. Asthma and allergy sufferers are worst affected. Pollutants include cigarette smoke, dust,
pollen, fibers, soot, dander, airbor. Fungal & bacterial particles and indoor allergy stimuli odours. Particles
smaller than 10 microns are the greatest health risk as our body's natural biological deface mechanism is not
effective in dealing with them.

SECURITY SOLUTION:-
Euro vigil from Eureka Forbes provides complete safety for your loved one & business. Solution customized for
home, institutions & corporate, each solution from Euro vigil is tailor-made for unique requirement.
An array of product – intrusion detection, access control, surveillance & fire detection, the euro vigil solutions
are state-of- the art security solutions providing you total safety.

ANALYSIS OF THE PLAYER OF THE INDUSTRY

1. EUREKA FORBES LTD.:-

Multi-product, Multi-channel Corporation - part of the Shapoorji Pallonji Group. About 7,000
employees are working in the company. Eureka Forbes Ltd. is the Leader in domestic and industrial Water
Purification Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. Eureka Forbes Ltd. is the
Pioneers in Direct selling - Asia's Largest Direct Sales Organization. About 6,000 strong Direct Sales Force
touches 1.50 million Indian homes, adding 1,500 customers daily. Customer family now numbers over 6 million
- enduring relationships as friends for life. The Operations of this company is going on 125 cities & 475 towns
across India.

Eureka Forbes Ltd. also expanded channels that reach out to customers to include. This company has Over
5,000 strong Dealer Sales Network in India .and also have 58 distributors for strong Institutional Sales Network.
This company have Security Systems Division that is one of India's largest system integrators.

Eureka Forbes Ltd have a strong service network that backs up sales efforts. About 4500 company trained
technicians who make 20,000 kitchen visits daily. That is supported by Call Centers, Customer Care
Representatives & Mobile Service Vans.

Eureka Forbes - A Business Super brand .this company’s Aqua guard & Euro clean - Chosen Super brands.
This company Ranked among India's Most Admired Consumer Durable Companies. This company awarded for
The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise'
MAKE- Asia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards.

Eureka Forbes Ltd. Vision is to make a happy, healthy, and safe & pollution free environment on truest and
lasting relationship with customers.

Eureka Forbes Ltd. Mission is To Build sustainable relationship with customers as their ‘Friend for life’ by
satisfying their evolving health, hygiene and life style need through…

2. KENT: -

KENT is a 21st century health care products company with a vision for making the world a
healthy and a happy family. This company’s mission is to produce innovative health care products that purify the
water we drink, the food we eat and the air we breathe, thus help people live healthier. For customers, bringing
health care products for you, is more than just a business, it is a passion. It is, In fact, it is the most prominent
purpose of our existence.

Pioneer in bringing revolutionary RO technology to India for the first time, Kent, started in 1995 in
Noida, Despite a humble beginning, today Kent is a strong organization with offices spread across Delhi, NCR,
Mumbai and other major cities. Most importantly, Kent is having millions of satisfied customers to its credit.

This company’s product philosophy is unambiguous. We help people in attaining the biggest and most
precious wealth called "Perfect Health", which is reflected in our range of health care products too.

Kent’ vision is To Making the world a healthy & happy family and to become the number one market player
with maximum market coverage by providing the world’s first Mineral RO technology and sustainable values.

Due to very aggressive and extensive adve7rtising & marketing strategies of the company KENT Mineral RO
has gained immense popularity amongst the general public. The product has been so successful and popular that
it was awarded three International Awards in 2007.

Best Domestic Water Purifier 2006-2007 AND 2007-2008 (By UNICCO And Water Digest International) ,
Golden Peacock Award For Best Eco Innovation 2006-2007.

3. HINDUSTAN UNILEVER LTD.:-

Pure it, a breakthrough offering of Hindustan Unilever, comes with many unique benefits –
complete protection from all water-borne diseases, great convenience, and unmatched affordability. Pure it’s
unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide
impurities, giving you water that's 'as safe as boiled water. It assures your family of 100% protection from all
water-borne diseases like jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or
continuous tap water supply. You will be further reassured to know that Pure it meets the stringent germ-kill
criteria of the Environmental Protection Agency (EPA), the toughest regulatory agency in the USA. Protect your
loved ones with a Pure it Water Purifier today!

4. PHILIPS:-

ROYAL PHILIPS ELECTRONICS, a global leader in the three interlocking domains of


healthcare, lifestyle and technology recently announced its foray into the water purification market. Philips
Electronics India ltd, a subsidiary of the Netherlands based Royal Philips electronics endorsed the
announcement by launching the “Philips Intelligent Water Purifier”, a state of art advanced UV Water Purifier.
Said to bring about a revolution in the water purification market, the company not only promises to provide
pure and safe water but the new range also features delivery convenience to the consumers. Adopting the policy
of aggressive marketing, various ‘Experience Centers’ will be set up in high traffic areas wherein the consumer
can see, touch, feel and experience the water purifier. The demonstrator will also inform the consumer about the
nearest retail purchase point of the product.

Philips has also set up a robust CRM system for providing sales support whereby a consumer helpline called
‘Philips Pure Water Care helpline’ which is already operation.

MARKET SHARE
It is estimated that roughly two thirds of the existing water purification market belongs to UV
water purifiers and one third is shared between reverse osmosis purification systems and chemical purifiers. In
the UV purifier segment, Eureka Forbes’ Aqua guard is the clear market leader with approximately 68% market
share. Other brands include Philips’ Intelligent Water Purifier with 7% and HUL’pureit. With 25% market share.
The UV purifier market is estimated to be growing at a lower rate than the chemical based segment.
Reverse osmosis purifiers, which are rather expensive and not the preferred option in many areas, have a smaller
share of the market when compared with UV purifiers and chemical based systems. In the reverse osmosis
segment, Eureka Forbes is again the major player with 60% share. A major portion of the remaining 40% belongs
to Kent reverse osmosis Systems
MARKET TRENDS
The water purifier market is seeing a three-way fight between the two global giants, Hindustan
Unilever and Philips, and the local market leader, Eureka Forbes which has unleashed a new national campaign
for its economy water purifier brand.

Both HUL and Eureka are gearing up to woo the large section of the lower-income group which could not
afford ultra-violet water purifiers with a starting price of about Rs 5,000 and do not have steady supply of
electricity and tap water

HUL, which began selling its Pure it brand of water purifier nationally earlier this year, is now being
challenged by Eureka Forbes with its Aqua sure brand launched nationally this month.

Aqua sure uses a resin based technology in which the water is treated by a chemical like bromine and then
the chemical is removed from the water after it purifies it. This product also does not need electricity.

Eureka is straddling the retail and also direct selling model to increase its market share and keep HUL at bay.
While HUL is selling its water purifier at Rs 1,800, Eureka has priced one of its models at Rs 1,600.

Industry experts say that in India three types of water purifiers are being marketed now — ultra-violet based,
reverse osmosis and resin based. The country’s largest water purifier maker Eureka Forbes’ Aqua guard is the
market leader with 68 per cent in UV-based market.

In reverse osmosis (RO) as well the company enjoys 60 per cent share and Delhi-based Kent RO systems
has 40 per cent share. RO based water purifiers are the most expensive section of the water purifier market and
are priced at Rs 13,000 and above.
Philips, on the other hand, which uses UV-based technology to purify water, has dropped its price to Rs
6,995 from the initial launch price of Rs 8,500. Industry sources say its struggle to establish itself in the market
with lesser priced water purifiers by competitors has been difficult..

Out of the 220 million households in India, only about 8 million use water purifiers. Eureka Forbes has a
reach of 6 million households. HUL, in its first three years of operations, has already sold 1 million units.

DIFFERENTIATE FROM OTHERS IN THE INDUSTRY


Eureka Forbes Ltd. is one of the largest companies in water purifier industry. The company is
working is two way first is direct marketing and second is channel marketing. Eureka Forbes Ltd. is first
company in India who is dominant in direct marketing .in the sense on direct marketing is to sell the product
direct to the end customer. In this marketing there are no intermediatries. This type of marketing contributes
75% sales turnover. On the other hand Eureka Forbes Ltd. is also dominant channel marketing. This is followed
by company to distributors, distributors to dealer, dealers to end customer. This type of marketing contributes
25% sales turnover.

In this company’s water purifier have unique 5 stage purification process in this purification process there are 5
filer.

• Stage 1 there is a particulate filter which is removes dirt & floating particles.

• Stage 2 there is sediment filter which is removes suspended impurities.

• Stage 3 there is a Biostat carbon block which is removes bad odour and taste and also removes chlorine
and organic chemicals.

• Stage 4 there is active disinfectant to seeks & destroys Disease-causing bacteria and virus

• Stage 5 there is special activated carbon for retains the natural taste of water.

KENT is dominant in industry by channel sales. But this company use advertising. The brand
ambassador of Kent is bollywood actress Hema malini.I Kent Purification by RO followed by UV with TDS
Controller to maintain natural minerals in water .Computer Controlled Operation with Filter Change Alarm &
UV Fail Alarm .After a preset time, Filter Change Alarm is audible which indicates the time to replace the
filters. If the filters are not changed within next 60 hours of use, the purifier will stop functioning .Incase the
UV stops functioning, UV Fail Alarm is audible. The purifier will not function until the UV lamp is replaced
.Stylish eye catching modern design.”Purified water level indicator" on storage tank .Enhanced purification
through an additional Micronics Filter .Spin Welded RO Membrane Housing to prevent tampering .Secondary
purification by UV after RO ensures enhanced water quality throughout service cycles .Monitoring filter
replacement in time helps maintaining the optimum filter & water quality.8 liters of purified water storage
capacity that makes water available on demand, even in the absence of electricity / water supply. Fully
automatic operation with auto-start and auto-off & Built-in SMPS to operate within 160-300 AC voltage

Philips have good name in electronics world. So the water purifier of Philips sells with their brand
name. Philips water purifier have advanced state-of-the-art UV (PLS) technology destroys known waterborne viruses,
bacteria, parasites and amoebae while the activated carbon and sediment filter removes turbidity, chlorine, volatile organic
chemicals (VOC’s), cysts, larger micro-organisms and improves taste. The maximum flow rate of 1.2 liter per minute
ensures that you have safe drinking water available at any time

HUL is the very big FMCG Company. In water purifier industry this company have one product that
is pure it. In pure it has a Germ kill battery. This technology kills all harmful viruses and bacteria and removes
parasites and pesticide impurities. Pure it is available in two attractive colors that are Royal Blue and burgundy

Feature Consumer Benefit AquaSure Philips Kent Purit

From the house of Eureka Forbes,


leaders in water Purification for 25
years Turst of 25 lakh customers √ X x x
Endorsed by Indian Medical
Association Guarantee of 178000 doctors √ X X x
Gives the freedom to place
Table top facility where ever you want √ X X x
Convenience to fill water by
Stainless Steel bottle holding tray keeping glass √ X X x
Back Flush Facility clean the filter √ √ √ √
Gives you water which is safer
Power Boil than boiled water √ √ √ √
back up of 1004 exclusive service gives very quick after sales
centers across 186 cities service across india √ x x √
cartridge life indicator √ x x x
wall hanging facility √ √ x √
twist filter change √ √ √ √
macro filter Dust and soil remove √ √ √ √
sediment filtre Suspended particles remove √ x x x

Marketing strategy:-
(a)Direct marketing-
 Eureka Forbes followed the globally 'tried and tested' direct selling route for marketing
its products in India, thus becoming one of the first direct selling companies in India.
 Eureka Forbes not only had the financial strength, but also a strong network of sales
executives to push its new products into them market.

(b)Networking channel sales-

 Eureka Forbes is setting up alternative and bew retail channels to increase the
penetration of water purification devices.
 Networking division is now extending products to chemists, CSDs (canteen stores
department) and general merchandise stores to reach out to households which do
not use water purification devices.

PORTER’S GENERIC COMPETITIVE STRATEGIES


To analyze a firm’s success in an industry in which it is operating its position in the industry and its
attractiveness should be evaluated. a firm can perform profitably, even though the industry is not lucrative, if it
can employ its resources optimally. If the company determinant of a firm’s profitability is the attractiveness of
the industry on which it operates, an important secondary determinant is its position with in that industry. Even
though an industry may have below-average profitability, a firm that is optimally positioned can generate
superior returns.

Michael E.Porter suggested that all strategies are the derived strategies from generic strategies. They are given
below

1. Cost leadership strategy: - a firm gains cost leadership in an industry when it’s cost of production is
lower than that of its competitors. It can gain cost leadership by managing its processes and resources
efficiently this strategies involves attempting to minimize cost in every aspect of the business.

2. Differentiation strategy: - firm that adopt the differentiation strategy successfully have access to advance
scientific research ,a highly skilled labor force, effective communication strategies, etc. a firm may
differentiate its products and service in various way . it may differentiate itself from others in terms of
design or brand name.

3. Focus strategy: - a firm is pursuing a focus strategy trend to serve a specific segment instead of catering
to the entire market. This segment may be a special group of customers, a specific geographic area or
particular product or service line. A firm following a focus strategy and also differentiated strategy will
have advantage of pricing their product higher.

In water purifier industry the product of this industry is divided in to two segments first is reverse
osmosis segment and second is ultra violet segment.
In reverse osmosis segment the Eureka Forbes ltd follow cost leadership strategy and differentiation
strategy because this company have three type of RO.those are used for low TDS(Total dissolved solid) water
and high TDS water. The all three product of this company are different for their storage capacity, purification
stages and modal. And this company is working about 25 years so the company has lots of goodwill and brand
name. On the other hand Kent also comes in water purification industry with their product. Kent is follow focus
strategy and differentiation strategy because Kent is working only one product that is Kent RO. Kent brand
ambassador is bollywood actress HEMA MALINI. Philips also come in this industry with there brand name so
Philips follow differentiation strategy.

In ultra-violet segment the Eureka Forbes ltd.follow cost leadership. Differentiation and focus strategies
because this company have five types of UV those are different for there feature like storage capacity, online,
electric & non electric, water outflow, etc. the company have good band name. In this segment the company
targets all levels of customer. On the other hand HUL follow the differentiation and focus strategies because the
company have good brand name. And HUL have only one product that is PURE IT.

HUL, which began selling its PURE IT brand of water purifier nationally earlier this year, is now being
challenged by Eureka Forbes with its AQUASURE brand launched nationally this month.
.

4Ps Analysis

The major marketing management decision can be classified on one of following four categories

1. Product

2. Price

3. Place

4. Promotion

These variables are known as the marketing mix or 4 P’s of marketing. They are the variables that marketing managers
can control in order to best satisfy customers in the target market.

Product: - The product is the physical product or service offered to the costumer. In the case of physical
product, it also refers to any services or conveniences that are part of the offering. Product decision includes
aspects such as functions, appearance, packaging, service, warranty, etc.

Price: - Pricing decision should take into account profit margins and the probable pricing response of
competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as
leasing.
Place: - Place decisions are those associated with channels of distribution that serve as the means for getting
the product to the target customers. The distribution system performs transactional, logistical, and facilitating
functions.

Promotion: - Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should be performed
when making promotion decision. It is useful to know the value off a customer in order to determine whether
addition customers are worth the cost of acquiring them.

4Ps Analysis of Eureka Forbes limited


In Eureka Forbes ltd. we done 4Ps analysis in two segment first is UV segment and second is RO segment.

4Ps analysis for UV segment:-

1. CRYSTAL UV:-
Product Product feature

1.The sleek new Crystal is a multistage compact water purifier with power boil

2.Has an Electronic Monitoring system to ensure pure water or no water

3.The 3 components, sediment filter, activated carbon block and UV chamber ensure pure, safe
drinking water

4.Inbuilt voltage stabilizer with special indicator

5.Auto Power shut off to save unnecessary power consumption

6.Electronics flush it drain stagnant water

7.convenient water filling tray

8.water outflow 2 liter/min

Price Rs.7650

place it is install in low TDS area

promotion giving best service, promoted by company promoters

2. IVORY:-
Product Product feature
1.The Aqua sure Ivory is an elegantly designed multistage UV water purifier with power
boiling

2.Has an Electronic Monitoring system to ensure pure water or no water

3.online water filter-cum- purification system

4.can be placed on a counter or mounted on a wall

5.Dual filter to remove odour and impurities

6.World proven UV technology that deactivates all bacteria and virus

7.Bottle holding tray

8.Water outflow 2 liter/min

Price Rs.6990

place it is install in low TDS area

promotion giving best service, promoted by company promoters

3. AQUALFO DX:-
Product Product feature

1.The Aqua sure Aquaflo DX is a multistage UV water purifier with power boil

2.online water filer-cum-purification system

3.removes odour, organic impurities and traces of chlorine

4.Deactivates all bacteria and virus into UV chamber

5.Bottle holding tray

6.Water outflow 1 liter/min

Price Rs.5990

place it is install in low TDS area

promotion giving best service, promoted by company promoters

4Ps analysis for RO Segment:-

SPRING FRESH RO SYSTEM:-


Product Product feature

1.The Aqua sure spring is a 6-stage RO water purifier with power Boil

2.Removes excess TDS from hard water and makes it taste fresh

3.Has auto shut-off of pump, with unique weight sensor mechanism

4.Separate sealed cap for storage tank protects water from dust and impurities

5.Storage capacity of 8 liters of purified water

6.conveninent water filling tray

Price Rs.13990

place It is installing in High TDS area like above 300.

promotion giving best service, promoted by company promoters

ELEGANT RO SYSTEM:-
Product Product feature

1.The Aqua sure Elegant is an advance RO water purifier with power Boil

2.5 stage purification system

3.Auto shut-off micro switch controller

4.5 liter. Purified water capacity

5.Protection against dry running of pump

6.Auto shut-off to avoid wastage of water

Price Rs.9990

place It is installing in High TDS area like above 300.

promotion giving best service, promoted by company promoters

AQUACARE RO SYSTEM:-
Product Product feature

1.The Aqua sure Aqua care RO is an elegantly designed, optimized RO water purifier with
power Boil

2.Optimum RO purification system

3.It has a reverse osmosis membrane to revive the original taste of water

4.A special cartridge to enhance the life of the membrane

5.Online Reverse Osmosis purification system

6.water outflow 8 liter/min

Price Rs.8995

place It is installing in High TDS area like above 300.

promotion giving best service, promoted by company promoters

4Ps model of Eureka Forbes ltd.

PRODUCT PRICE

a) Suitable for all type of raw water a) Product price range started for 1800 - 16000
b) Easy availability nation wide b) Low cost of maintenance and consumable
c) Many stages of water purification process c) Low cost for product
d) Automatic membrane cleaning system d) Best price for other than competitor
e) Multi products launched - water purifier 18 lit., UV and RO EX..(eureka) aqua flow dx Philips
f) No running water a) price- 5990 6230
g) No boiling required

PROMOTION PLACE

a) Activated subscription immediately a) Increase impurities than use for water purifier
b) Right time installation of products b) Increase disease
c) Working properly c) Direct sales given knowledge for customers
d) Properly repair services against paid AMC's d) Easy available product
e) Services during contract period e) At jaipur 2 distributors and many dealers
f) Saves time f) Any activity, Ex…Knops’
POSITIONING ANALYSIS

Tables for sales $ profit

Year sales in million profit in corer


2008 845.5 249.1
2007 839.98 229.3
2006 733.4 219.8
2005 634.33

Sales graph-

900
845.5 840.98
800
733.4
700
634.33
600
500

400 salesmillion
300

200
100
0
2008 2007 2006 2005

Reason for rise sales –

 We at Eureka Forbes always believe in going total satisfaction to the customers.


 Product design product performance and after sales services is better.
 Catalogue to large fraternity of customers.
 Last year sales are not increasing because other competitor coming in the market.
 Eureka Forbes products price is low but other competitor price high.
 The campaigns tried to build the image of a Euro champ as a Friend rather than one that is after the
money

Profit graph-

profit crore

255
250
245
240
235
230
225 profit
220 crore
215
210
205
200
2008 2007 2006

Reason for increase profit

 Eureka Forbes (EFL) has come a long way. From being famous for pioneering the direct
selling in India to being rated as the best employer and top it all a case study at Harvard.
 Eureka Forbes is a joint venture between Forbes (India) and Electrolux from Sweden.
 Eureka Forbes has also tried to position their sales persons as problem solvers rather than
sales officers.
 Because of the low interest and since the product benefits needs to be demonstrated to the
customers, conventional distribution was not viable
 This brand connects very well with the concern of mothers about the purity of the water at
home.
 Eureka Forbes is a brand that personifies the hard work of all Euro champs.
VALUATION EXERCISE
Eureka Forbes Ltd is a part of Shapoorji Pallonji Group. This group listed on Nation stock Exchange of India
ltd.with name of Forbes & Company Ltd.the Net Assets value and Earning per share of that company in the year
of 2008-09 is given below.

Net Current assets Rs.cr


Current Assets, Loans & advances 215.75
Less: Current Liabilities &provision 150.1
Total Net Current Assets 65.65
EPS 1.88

For only Eureka Forbes ltd.During the year under review, your Company made a turnover of Rs.813 crores, a
growth of 10% over the previous year. The profit before tax and extraordinary items also increased from
Rs.38.95 corers to Rs.41.81 corers, a growth of 7% as compared to 14.7% in the previous year.

In terms of acquisition for this company. Other company will pay Net Assets value amount than that company
will merge there company.

References:-
1. www.eurekaforbes.com

2. www.pureitwater.com

3. www.kent.co.in

4. www.icicidirect.com