SMBD Session 2

Jyoti Jaiswal
PGFA1913
Understanding of the topic and analysis of topic in Eureka Forbes

Selling Process: Prospecting & Qualifying, Pre approach, Approach
Prospecting: It is the process of identifying potential customers for the company’s products and
services. It starts with the company identifying the names and address of the probable prospects.
Methods For Consulting Existing Customer

Identifying Referrals from external sources such as suppliers, intermedairies etc
Leads
Referrals from internal company sources
Standard Industrial Classification System
Referrals from publications
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Networking by Salespeople
Cold Canvasing
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World Wibe Web
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Qualifying: The probable prospects generated through prospecting are then qualified by using
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the criteria of need for the product or service, affordability to buy and ability to decide. The
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probable prospects or leads, after qualifying, are placed in three groups of
 Hot Prospects: have a high probability to buy and have sound financial capacity. Their
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information’s are handed over to salespersons.

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 Warm Prospects: neutral; less likely to buy, these are given to telemarketing team for
follow-up.
 Cold Prospects: these likely to take long time to buy and requires lot of efforts to
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convert them. Such prospects are kept in pending list for future follow up.
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This process of prospecting & qualifying is known as “sales funnel” or “sales pipeline”.
Pre-Approach: this step included two tasks

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 Information Gathering: about the prospects in greater depth by carrying out customer
research and by using the various sources of obtaining information.
 Planning the Sales: before planning the call salesperson, must consider these four
questions like to Whom to talk? Where to see? What is the call objective? How to
approach?
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Approach: After gathering depth information about prospects and plaining the call next step is
to make an appointment to see the prospects. Few approach techniques are: -
 Introductory Approach
 Opening benefit statement in this salesperson open by mentioning an important and
customer specific benefit of his product or services.
 Product Approach especially appealing to those people who are visual or hands-on
leaners because it allows them to look and touch.
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Eureka Forbes Case Analysis
Company Overview
A joint venture between the Forbes (India) Group and Electrolux of Sweden. It was started with a
single office in Mumbai with 20 sales representatives.
Industry: Home Appliances
Headquarters: Mumbai, India
Key People: Suresh L. Goklaney (CEO)
S.K. Palekar (COO, Head of Marketing)
Products
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 Vacuum Cleaner
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 Water purifier
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 Air purifier (added in the product line in 1993)
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 Security systems (1997)
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Over the years EFL has effectively used direct selling method with the help of field sales forces
of more than 5000 sales representatives called ‘Euro champs’ devoted to its two main products,
Euro Clean vacuum cleaners and Aqua Guard water purifiers. The picture of the Euro champ,
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wearing a white shirt and a dark suit, and with a demo kit in his hand, heading from door to door,
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has become forever embedded in the minds of Indian customers. This goes with the company’s
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motto of treating the customer as "a friend for life."
Revenue Background
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64% Aqua guard

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22% Euro Clean (Vacuum Cleaner)

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Indian Market
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 56 million households
 EFL products were not a priority item for households
 70% market share
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 No other direct sale competition

 High price products
 Selling the concept relied on extensive presentation, demonstration and customer
objection handling
Organisational Structure
EFL was split into 3 geographical regions these regions were led by chief operating office. They
made 4-euro champs group led by group customer sales specialist called “group leader”.
Euro Champs
 Young men in their early 20s

 From lower middle-class homes
 With Minimum 2 years university education
 Knows and fluent with English and local language
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A euro champ spends around 11+ hours per day to complete the tasks given to him.
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Problems Faced by the Company
 Salespersons focused on only completing their demo

 Missed visual cues signalling their interest to buy
 Demo equipment’s were damaged and unclean
 The art of responding to customer objections was neglected
 No time to coach
 Euro champs were going through motion mechanically (were doing the task without any
real effort)
 Time needed to manage quotas and sales volumes
Recruitment
 Decentralized recruitment
 Mostly EFL relied on campus, career fairs, employment exchanges for recruitment
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 Friend-get-a-friend scheme provided incentives for employees to recruit friends
Own Your Own Bike scheme confirm recruits who made 25% down payment of bike.
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Introduced
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Centralized recruitment process
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 It will attract bigger and better pool of talent
 Standardized recruitment process
It promoted Biased free recruitment process
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Training
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 Followed an On-the-job training method
First 2 Days given to read the company’s handbook

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
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 New sales representatives were paired with seasoned representatives for almost 1 to 2 to
Improved Training Program

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 Introduced CRTCs (Centralised Recruitment and Training Centres)

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 “My First Week At EFL” a 7-day training program included both in class training and
field coaching sessions.
 Initiated “Learning by Experience” Managers with successful careers as field leaders
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with good track records in sales and people development were asked to share their
experiences, advices, tips with Euro champs
 “Making of Euro Champs” After 4-6 months of joining another training program held for
the sales representative which included activities like role plays; mock demos; videos etc.
Compensation
Compensation structure of a Euro champs included salary, rent allowance, leave travel
concession, holiday bonus, medical reimbursement, travel reimbursement plus commission based
on sales volume. A Euro champ can earn as much as two thirds of his monthly earnings in the
form of commissions.
Existing
Job Evaluation method
 Ranking
 Job classification
Recognition
 Achievers Club
 The Silver Circle Club
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 The Champion Club
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Strength of the existing system
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 Highly result oriented
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No limit to the commission one can earns
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 Totally transparent system where performance of each employee and the commission
earned by him is known
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Limitation Of existing system

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 Only focused on result, not on the way they were achieved

 High pressure to achieve targets
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Re Engineered Reward System and Introduced New Evaluation and Compensation

Method
Introduced “Bettering the best” it was designed to give award points to the salesperson for the
successful completion of various stages of the selling process and linked the compensation to the
points scored by the salespersons. Rather than rewarding the salesperson solely based on sales
volume. It also included “Daily Recognition” schemes and top performer were given a monthly
reward of Rs. 500.
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Strength of the New System
 Reduced the sales pressure on sales representatives and diverted there focus on improving
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the selling process, lower attrition rate by improving the sprit and morale of the sales
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team, improves the chance of sale as overall customer handling is improves.

 Productivity of low performers would be improved.
 Daily recognition of performance would put a control on low performers and would lead
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to low attrition rate.

 Clarity of the various process of sale and how each stage has point to be earned.
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 A monthly reward of Rs. 500 can be earned by top performing employees

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Limitation of the New System
 Euro champs focus of making sales would get shifted to earning more points.
 Daily filing of activity report forms was time consuming.
 Possibility of overstating of efforts.
 Daily monitoring and tallying the point required considerable time in paperwork and
training in using the spreadsheets of the computerized reporting system.
 Possibility of nonperformers getting high compensation with low sale.
 Not possible to measure qualitative aspects of selling.
The new scheme focuses on the entire process of reaching there i.e. not only on the result but on
the means adopted to make sale. This will improve every step of selling process as prospecting,
pre-approach, approach will be done more effectively. Daily recognition of euro champs by his
superior will motivate him to perform well. Good things about this schemes are
Sales representatives are the link between the customer and our facilities
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Conclusion
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After analyzing whole of the case in my views
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How Technology will impact the prospecting, pre-approach, approach?
The first three steps of selling process is all about connecting to the right people
and in todays world technology has somewhat taking over personal selling.
Research through linkedIn navigator
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Understanding oSf the Video
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Jyoti Jaiswal

Understanding of the topic and analysis of topic in Eureka Forbes

Methods For Consulting Existing Customer

probable prospects or leads, after qualifying, are placed in three groups of

information’s are handed over to salespersons.

Pre-Approach: this step included two tasks

Industry: Home Appliances

Headquarters: Mumbai, India

Key People: Suresh L. Goklaney (CEO)

S.K. Palekar (COO, Head of Marketing)

motto of treating the customer as "a friend for life."

64% Aqua guard

22% Euro Clean (Vacuum Cleaner)

 No other direct sale competition

 Young men in their early 20s

 Salespersons focused on only completing their demo

 Followed an On-the-job training method

First 2 Days given to read the company’s handbook

Improved Training Program

 Introduced CRTCs (Centralised Recruitment and Training Centres)

Job Evaluation method

Limitation Of existing system

 Only focused on result, not on the way they were achieved

Re Engineered Reward System and Introduced New Evaluation and Compensation

Strength of the New System

team, improves the chance of sale as overall customer handling is improves.

to low attrition rate.

 A monthly reward of Rs. 500 can be earned by top performing employees

Limitation of the New System

How Technology will impact the prospecting, pre-approach, approach?

Research through linkedIn navigator

Understanding oSf the Video

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