Introduction of Eureka Forbes

Eureka Forbes is a part of the Shapoorji Pallonji Group and today it is a 12 billion INR, multi
product and multi channel corporation. Being Asia’s largest direct sales organization, our
force of 7000 direct personnel touches 1.5 million homes. Dedicated to the cause of providing
healthier living, today, the co have successfully established ourselves as a business super-
brand and our dedicated team works around the clock to make your lives healthier and more
secure! The company has strive to provide the best after sales service and to achieve the same
we have over 1500 service centres and as many as 4500 company trained technicians who
visit over 20,000 Indian kitchens daily! 

The two major products of Eureka Forbes

1. Eureka Forbes Water Purifiers

2. Eureka Forbes Vacuum Cleaners

Eureka Forbes Water Purifiers

Eureka Forbes have all over 20 water purifiers ranging from Rs.2,000 to Rs.25,000. Their
range of products treats the water with varying levels of technology. The main difference is
that the expensive systems like the Integra Hi-Life have larger water production capacity per
hour, more water storage capacity, and use the Reverse Osmosis Technology (RO) to treat the
water.
Market Segmentation
Market segmentation can be conducted using a number of approaches including
demographic, geographic, attitudinal, psychographic, and behavioural.

Geographic Variables
 Regional: Eureka Forbes has branches in almost all the metropolitan cities and it is
available almost all over the country.
 Population density: It is targeted to Urban, Suburban and rural area in India.
Demographic Segmentation
 Age: Eureka is targeted to different age groups like young and middle and old age
group as water is a necessity for all age groups.
 Gender: Eureka Forbes is targeted to both male and female.
 Income: Targeted to middle and high income groups of people.
 Occupation: It is targeted to all groups of occupation.
 Religion: It is targeted to all kind of religious people.

Psychographic segmentation

Lifestyle – different people have different lifestyle patterns and our behaviour may change as
we pass through different stages of life. Water Filter belongs to a better people with better
lifestyle, hygiene and health conscious people.
Behavioural segmentation

 Benefits sought :Eureka Forbes water has created an better image to the consumers
through its quality and better service
 Product usage: Eureka Forbes service is open to all type of customers.

Targeting
Eureka Forbes in India has carved a niche as the leading company for water purifiers. RO is
one of the most effective processes of purifying water with high TDS content. Eureka Forbes
is setting up alternative and new retail channels to increase the penetration of water
purification devices. Eureka Forbes have a range of non power using products under the
Aqua sure brand which we are promoting through the new channels set up by the retail
division. The purpose is to target 60 million households in urban and rural residential areas
which have never used water purifiers.
Positioning
Eureka Forbes has positioned itself as a cost effective, customer centric organization
servicing the market need for purified water. It will leverage its competitive edge to achieve
the desired positioning. Its competitive advantage is the ability to generate revenue streams
for sellers of the product; this is virtue of network marketing system.

Strategies Adopted by Eureka Forbes Water Purifiers

SELLING STRATEGIE
S ADOPTED
1. Direct Selling- Door-to-Door Selling
Eureka Forbes has an approach to sales that is well-worn in the West but is not so
common in India. Unlike Procter & Gamble, which relies on closet-size, mom-and-pop stores
to sell its products, Eureka Forbes cuts out the middleman and instead uses a team of young
salespeople to give in-house product demonstrations and convince consumers of a need that
they didn't know they had. In its early days the company only sold vacuum cleaners. It has
managed to persuade Indians to stop boiling their otherwise undrinkable tap water and
instead use a now-ubiquitous water purifier better known as "Aquaguard".
2. Product Segmentation
Eureka Forbes sells different water-purifiers on the basis of classifying their utility and price
affordability. The water purifiers are classified as follows:
AQUAGUARD-ECONOMY
AQUAGUARD- TOTAL PROTECTION
AQUAGUARD-SPECIAL USAGES
AQUAGUARD- DIRECT ONE
3. Making and Growing Relationships- An Irreplaceable Commodity
Whether people end up buying Aquaguard from a giant store or a door-to-door salesman,
EFL’s crew tries to stay close to the customers. After each sale a Eureka Forbes plumber
installs the water purifier. Service technicians conduct periodic maintenance.
Competitors of Eureka Forbes

 Kent - Grand
 Hindustan unilever -pureit
 Philips intellegent
 Whirlpool Pure Fresh
 Jaipan
 Alpha Dewdrop
 Eurotek System
 GenPure R.O System
 BIONICS

Compititor of Eureka Forbes

Kent Water Purifier

Kent Water purifier is a healthcare products company with a vision for making the world a
healthy and a happy family. Bringing healthcare products to you, is more than just a business,
it is a passion. In fact, the most prominent purpose of our existence. 

Strategies

 Kent is positioned as a premium brand of water purifier targeted at SEC A&A + Most of the
existing purifiers are based on Ultraviolet technology.
  Kent follows focus strategy and differentiation strategy because Kent is working only
one product that is Kent RO. Kent brand ambassador is bollywood actress HEMA
MALINI.
 Kent has implemented key marketing strategy of being extravert. Having this
behavioural character is necessary to be sufficiently assertive for developing sales.
Competitors’ Analysis:

Initially Eureka Forbes was the only company manufacturing water purifier, in Sambalpur. It
used to enjoy a monopoly market. People there were not aware of any other brand. But with
changing times, other companies had emerged with their technologies and products. With the
help of branding and media these company has gained a little importance in the town of
Sambalpur. Though the mass of the population is still using Eureka Forbes- Aqua guard, but
still people are aware of some of the brands which have emerged. They are as follows:

 Philips- Intelligent – Out of 50 respondants 4% are aware of this product

 Kent Guard – Again only 4% are aware of this brand
 Hindustan Unilever – 8% of the people are aware of this brand
 Blue Star – Only 2% know about this product
 Kenstar – Around 6% of the respondants know about Kenstar water purifier
 Aqua fresh water purifier P7 – Only 1% of the total respondants were aware of this
brand.

Eureka Forbes Vacuum Cleaner

Eureka Forbes (EFL) has come a long way. From being famous (or infamous) for
Pioneering the direct selling in India. The way Eureka Forbes has pitched in to the market
with its wide range of products has allowed the users to select from the extensive choices
available according to their preferences. Eureka Forbes is a joint venture between Forbes
(India) and Electrolux from Sweden. Eureka Forbes first launched the Vacuum cleaners in
India.
Segmentation

Geographic Variables
 Regional: Eureka Forbes has branches in almost all the metropolitan cities and it is
available almost all over the country.
 Population density: It is targeted to Urban, Suburban and rural area in India.
Demographic Segmentation
 Age: Eureka is targeted to age groups like middle and old age group as they
 Gender: Eureka Forbes is targeted to both male and female.
 Income: Targeted to middle and high income groups of people.
 Religion: It is targeted to all kind of religious people.

Psychographic segmentation

Eureka Forbes had positioned their product as a prestigious product its of self esteem to use
vacuum cleaner to clean the floor compared to the traditional methods. They had strike the
attitude and perception of their people with their successful strategy.
 

Behavioural segmentation

 Benefits sought: Eureka Forbes Vacuum cleaner has created an better image to the
consumers through its quality and better service.
 Product usage: Eureka Forbes Vacuum cleaner service is open to all type of
customers.

Targeting

The objective behind the move is to offer complete cleaning solutions at value-for-money
pricing strategy and develop the specialised cleaning chemical market. . Aquaguard water
purifier targeted at the top of SEC households, this brand has effectively positioned itself as a one stop
shop for pure water. This brand connects very well with the concern of mothers about the purity of the
water at home. The route adopted was not the conventional one of distribution, supported by
advertising. Instead the company created ‘the friendly man from Eureka Forbes’ and sent him
to homes to fight dirt and germs.

USER POSITOINING:

The way Eureka Forbes has pitched in to the market with its wide range of products
has allowed the users to select from the extensive choices available according to their
preferences. Two major categories in Eureka Forbes were studied, and it was amazing
to see the number of sub-products under them. Each had distinct features varying
from each other in terms of price, function, usage, etc. In this way, Eureka Forbes has
been able to position themselves according to the users needs, whatever it may be-
price, style, functions and so on. Multipurpose Daily Use Vacuum Cleaner, Suction &
Blower Functions, Shoulder Strap were designed for easy usage and in a convenient
hand held position. In such ways, each product is positioned with its exclusive
benefits in the minds of the customers.

Strategies Adopted by Eureka Forbes Vacuum Cleaner

SELLING STRATEGY ADOPTED:
1. Because of the low interest and since the product benefits needs to be demonstrated to
the customers, conventional distribution was not viable. Hence EFL chose the less travelled
Direct Selling route.
2. Professional Sales Approach
The Eureka Forbes sales man was called Euro champ. It was a tough job for these
Salesmen who had to go through the "cold calls" to get a sale. At one point of time,
Because of the aggressive nature of these sales persons, people became scared even to listen
to these sales persons.
 3. Eureka Forbes has also tried to position their sales persons as problem solvers rather
than sales officers. The campaigns tried to build the image of a Euro champ as a
Friend rather than one that is after the money.
4. Benefit Positioning
As seen in the above segment, Eureka Forbes has introduced a new product with
added benefits at regular intervals in the market. Each product comes with a specific
benefit, apart from the normal features. For e.g.: FORBES products are for Daily
cleaning purpose and EUROCLEAN are for deep cleaning purpose.

Competitors Co.s of Vacuum Cleaner :

 Metropolitan Vacuum Cleaner co.
 Hoover Vacuum Cleaner co.
 Tasmanian Vacuum Cleaner co.
 Kirbyy Vaccum Cleaner co.
 Panasonic Vacuum Cleaner co.
 Car Vacuum Cleaner co.
Panasonic Vacuum Cleaner company
Panasonic is a leading edge company offering well designed vacuum cleaners with many
advanced features. The MC-CG885 is an excellent example, combining style with
functionality and durability in this midsize power team.

Strategies of Panasonic Vacuum Cleaner

 They maintain abundant quality.
 They have their retail presence of vacuum cleaners in II Tier and III tier cities.
 Panasonic has taken an important step for development of their strategies for II Tier
and III tier cities in order to focus their product specifically as per the consumer
needs.
 Panasonic has enhanced their retail presence and also their product line.
 Panasonic new brand strategy has helped them to increase their brand equity and
provide added benefit to their customers. From this strategy emerges their core
concept of 'ideas' which will deliver Panasonic's brand value and ensure a smooth
 flow of ideas to create new products and services that are extremely valuable to our
customers in their daily lives".
 Panasonic is targeting a 50 per cent increase in sales in the next three years with the
help of a four-pronged growth strategy, focusing on distribution and sales,
merchandising, brand, and direct customer contact.

Competitors Analysis

Eureka Forbes initially had come up with the vacuum cleaners and they had adopted door to
door strategy where the salesmen was approaching the customers and dealing with them. The
salesmen were called Euro champ. Within a short span of time many other companies came
into the market and gave a tough competition. Even though Eureka had come up with
different types of vacuum cleaners, the competitors such as Panasonic came up with the
vacuum cleaners with better quality and brand name. They developed by entering the retail
market by selling in retail stores in many cities. Panasonic came up with creativity ideas
which developed their brand name and many other china companies came up with their
vacuum cleaners which also led to a competition with Eureka Forbes vacuum cleaners.

Conclusion

Eureka Forbes is a company of multiple products successfully running in the market. It has
segmented and targeted and spread its network in many cities. Their main process of sales is
door to door sales. Even though many competitors have come to the market they are
successfully moving ahead with their products. Eureka Forbes water purifier has come up
with many models in their purifier. They have targeted it towards the middle and high income
group level as they maintain hygienic environment. Eureka Forbes can come with an
competitive advantage by developing effective sales promotion and campaigns which will
bring an better brand image in the minds of the consumers which will lead to effective sales
in the economy.

Bibliography

www.Eurekaforbes.com

serrell and hartline –core book