Eureka Forbes Ltd.

-A Sales Territory case

study
By-
Neil D’Souza
(4912)
About Eureka Forbes Ltd (EFL)
 EFL was started in 1982 as a joint venture
between the Forbes (India) Group and
Electrolux of Sweden.

 Business under Mr. Suresh Goklaney’s

leadership .

 EFL installed a market barometer system in

2003 .
 Company Profile
 The products basically cover Vacuum Cleaners,
Water Purifiers, and Air Purifiers.

 Employees 9,400
 Workplace locations 243
 Business units 4
 Unique roles 106

 Concept of ‘councillors’ and ‘senators’

 Sales Approach
 Involves three steps:
 Cold calls are made
 Product demonstrations conducted,
 EuroCleans (Vacuum Cleaners) and Aquaguards
(Water Purifiers) are then sold by the EFL field
sales force.
ORGANIZATION
 Roles and Responsibilities
(at regional level)

 Customer Sales Specialist (EuroChamp)

 Group Leader
 Team Leader
 Head Customer Response Centres
 Deputy Division Sales Manager (DDSM);
Division Sales Manager (DSM)
 Area Sales Manager (ASM) and Senior Division
Sales Manager (SDSM)
 Regional Sales Manager (RSM)
 The EFL Sales Organization
EFL is split into 3 geographical regions, each led by a
COO.
Common central functions of finance, HR, marketing,
SCM, IT and BD support all 3 divisions.

The EuroChamp, who is the customer sales specialist

takes the product to the customers’ homes,
demonstrates it, and closes the sale.

Four EuroChamps make up a group led by a group

customer sales specialist who functions as group leader.
The EFL Sales Organization
 Group leaders also have sales quotas.

 Team leaders oversee 2 groups, 1 in which they function as

the group leader.

 Each head of a CRC (HCRC) oversees 3 team leaders.

 The EuroChamp is focused solely on sales. The next three

levels above him need to sell and manage.

 HCRCs are managed by DDSMs or DSMs

 The DDSMs and DSMs by the SrDSMs or ASMs who

report, in turn, to a regional head.
 The Eurochamp
Attitudes and skills required-
 Minimum 2 years university education, graduates
are preferred
 High achievement drive
 Reasonable spoken communication

and interpersonal skills

 Perseverance
 Financial requirements
 Routine Activities
of a EuroChamp
1. Morning field meeting.
2. Cold calling.
3. Daily activity reports, depositing payments, and
request delivery for closed sales.
4. Role-playing and mock demonstrations for new
recruits .
5. Keeping up to date with product information in
terms of innovation and upgrades.
6. Closing sales, collecting payments, making courtesy
calls on existing customers, and generating
references or retraining customers.
Time Estimates for Euro Champ Daily Tasks
 Training
 New recruits are given 2 days to go through the handbook.

 They then spend 1/2 weeks shadowing a senior sales

representative before being assigned their own sales territories
and quotas.

 A 7-day training program called

“My First Week at EFL” is provided
and 2 days are given to absorb the
information from this training.
 Supplementary materials are distributed during the program
including a booklet detailing EFL’s code of conduct and
information on the OYBS(Own Your Bike Scheme). Manuals
are translated into the local languages.
 Supervision
Reporting and feedback is 3 times in a day,
2. At the morning meeting before heading out on cold-
calls;
3. At the midday meeting to report on door knocking
results and morning demos;
4. And at the end-of-day review to register afternoon
follow ups, demos, and sales numbers.
 Quotas and Territories
 Annual quotas are broken down into monthly
requirements of 60 product demonstrations and
a minimum of 10 sales closings per month.

 The EuroChamps are expected to average 50

customer contacts per day.
 Evaluation and Compensation
 A EuroChamp’s base compensation includes :
 Salary
 rent allowance
 a special pay
 a demo allowance (for customer sales
specialist probationers),
 a leave travel concession,
 a holiday bonus,
 medical reimbursement,
 and, when applicable, a travel reimbursement (or, for
representatives who did not possess a 2-wheeler, a
reimbursement of travel expenses up to Rs. 600 per
month) .
 Evaluation and Compensation
 Base salary is scaled against length of service, total sales, and
average sales over the last 6 months .
 A contingency compensation scheme based on number of
units sold could be invoked in the event of marriage or
hospitalization.
 Confirmed EuroChamps who maintain
contact with or retrained a customer 3 months
and 6 months from date of purchase can
earn an additional Rs. 30 and Rs. 40,
respectively. Payment under this plan,
termed the Friendship Chain, can not
exceed Rs. 600 per month.
Evaluation and Compensation
 An averagely successful salesman earns two-
thirds of his monthly earnings through
commissions.

 This emphasis has an automatic sieving effect:

anyone who cannot learn to sell does not get
commission and hence earns less and exits very
quickly.
EFL Compensation Scheme: Front Line,
(Rs. per month, approximate figures
EFL Compensation Scheme: Front Line,
(Rs. per month, approximate figures
 EFL’s Compensation Plan
 Doesn’t reward only on sales volume
 Points are given on successful completion of various stages
of selling process and compensation linked to the points
scored
Sample of Daily Activity Form
 Summary
 It has well organized sales force which includes focused
leadership by EuroChamps.
 Each EuroChamp has the groups working under him.
 EuroChamps have strict daily routine activities like Daily activity
reports, collecting payments etc.
 EFL provide well organized training programs for new
recruiters.
 Work takes place under proper supervision.