Eureka Forbes Group 3 - Presentation Transcript

Presented By :

Group-3

Shapoorji Pallonji Group Formed n 1982 131Cities &398 towns in India.

Employees over 7000 Touched 1.25 million Indian homes and adding
1,500 customers daily. Water Purification Systems, Vacuum Cleaners, Air
Purifiers & Security Solutions. Eureka Forbes enjoys 70 % market share in
the country and northern region including, Punjab, Haryana, Himachal
Pradesh and Uttaranchal, contribute 20% to the total revenue. Growth in
sales volume - 18%

It can be resolved only through considerable human

interactions thus they employed the concept of personal selling .

Advantageous in promoting and selling high cost , complex items.

Operates more effectively when customers are on the verge of

making a final decision and committing themselves.

Followed globally tried and tested direct selling strategy.

Created awareness before it sold Eureka as a brand.

Sales personnel were highly motivated and targeted right people.

Continuous innovations to the basic product.

ADVERTISING

Mass

Competitive Attention

Breadth

Remember

Impression

Spend for Everyone

DIRECT MARKETING

Targeted

Selective Attention
 Depth

Respond

Decision

Spend for Targets

KEY FEATURES - A 10,000 strong dealer sales network

A 58 distributor strong Institutional

Sales Network

Eureka Forbes has set up alternative and new retail channels to

increase the penetration of water purification devices.

The purpose is to target 60 million households in urban and rural

residential areas.

Motive is to try and expand the physical reach of products for which
market penetration is just 9%.

Under normal circumstances the whole cycle takes 15 days

precisely.

If product is not available at any stage, the manufacturing unit is

directly notified.

Usual delivery time provided by eurochamps is next business day.

CCD person doesn’t provide turn around time.

Two types of Sales Representative

CCD - Corporate Care

Leads are provided by superior, no cold calling, handle business to

business clients.

THE EURO CHAMPS

They are the only interface between organization and the

customers.

The revenues of EFL directly depends on Eurochamp’s attitude, skill

and motivation.

Euro Champ
Personal Selling Process adopted by Eureka Forbes Prospecting Preparation and
planning Initiating contact Sales presentation Handling Objections
Negotiations Closing the sales Follow up and account management

Prospecting

Identify and qualify prospects.

Companies qualify the leads by contacting them by mail or phone

to assess their level of interest and financial capacity.

‘ Hot’ prospects are turned over to the field sales force.

Warm prospects to telemarketing units.

It takes about 4 calls on a prospect to accomplish a business

transaction.

Preparation and planning

Eurochamp needs to learn as much as possible about the prospect .

He should set call objectives: to qualify the prospect, gather

information, make an immediate sale.

Initiating Contact

Eurochamp makes a phone call to the prospect to get an

appointment for demonstration.

Sales Presentation

Sales person tells the product “story” to the buyer, using features,
advantages, benefits and value approach.

Handling Objections

Customers pose

* Psychological resistance.

* Logical Resistance.

To handle such objections sales person maintains a positive

approach.

Negotiation

Eurochamp need to negotiate on issues regarding price, contract

completion time, Quality of goods and services offered and product
safety.
Closing the sales

Closing signs from the buyer includes physical action, Statements

or comments and questions.

Eurochamp provides buyer with minor choices such as colour or

size, or indicate what the buyer will lose by not placing the order
now.

Products

Water Purifiers

Vacuum Cleaners

Air Purifiers

Security Solutions

Industrial Solutions

Price

Water Purifiers: Rs. 9,590 onwards

Vacuum Cleaners: Rs. 7,990 onwards

Air Purifiers: Rs: 6,400 onwards.

Place

Pioneers in Direct selling - Asia's Largest Direct Sales Organisation

Operations in over 131 cities & 398 towns across India.

7,000 strong Direct Sales Force touches 1.50 million Indian

homes, adding 1,500 customers daily

Expanded channels that reach out to customers to include

A 10,000 strong dealer sales network

A 58 distributor strong Institutional Sales Network

A strong service network that backs up sales efforts

4500 company trained technicians who make 20,000 kitchen

visits daily

Supported by Call Centres, Customer Care Representatives &

Mobile Service Vans
Promotion

Website

Advertisements (TV, Print and Radio)

Free Demonstration at door steps .

Sales Operations Of EFL

INVENTORY MANAGEMENT-FABV Analysis

EFFICIENT TRAINING

FRIENDLY WORKING ENVIRONMENT

COMPETITOR ANALYSIS-SWOT

360 Degree Marketing Strategy.

CUSTOMER FOCUS

CRM

CVM

Customer satisfaction and loyalty

CLV

Sales Budget and Forecast Quantitative Method: BY Moving Average method

Sales forecast= actual sales for past 3 or 6 year/ No. of. year(3 or 6) Year
Sales (Rs) 3 year 6 year 2000 322 2001 353 2002 394 2003 244 356
2004 361 330 2005 307 246 2006 419 297 327 2007 503 362 343 2008
588 410 368 2009 425 503 400 2010 505 434

Exponential Method

This method is closely related to moving average method.

Sales forecast for next year= (L) (actual sales of this year) + (1-L)

(this year’s sales forecast)

L=smoothing constant (or) probability weighing factor

Therefore,

Sales forecast for 2010= 0.2* 425+(1-0.2)*505

= Rs.489

Assuming L = 0.2
Assumption that what happened in the immediate past will continue to happen
in the immediate future. As we saw that different sales forecasting
method giving different answer. Sales forecast for 2010= actual
sales*actual sales of this year/Actual sales of last = 425*425/ 588 =
Rs.307

Suggestion:

We would like to suggest that company should use the Regression

method to predict the sales forecast in Quantitative method .

Which would help in forecasting accurate sales.

Sales forecast: Year Sales Expenditure 2000 322 291 2001 353 342 2002 394
370 2003 244 261 2004 361 360 2005 307 303 2006 419 408 2007 503
481 2008 588 562 2009 425 389 2010 501 477

Sales Quota :Top –Down Approach

Cities + Towns

Area (Based On Population)

Target.

Plans & Suggestion

Improving retail channels to increase the penetration of water

purification devices.

Its retail division is now extending its products to chemists, CSDs

(Canteen Stores Department) and general merchandise stores to
reach out to households which do not use water purification
devices.

Improved Training Process.

Increase the Product Line.

Can adopt Chain - Marketing.