Eureka Forbes:

Managing the Selling effort

PRADEEP KUMAR
&
SANJEEV KUMAR SINGH
 EFL : Profile

 EFL was Started in 1982 as joint venture between the

Forbes(India) group & Electrolux of Sweden
 Business under Mr Suresh Goklani’s leadership
 EFL installed a market barometer system in 2003
 Type Inc.
 Industry Home Appliances
 Founded 1982 Headquarters Mumbai, Maharashtra,
India
 Key people Suresh Goklaney (Vice-Chairman &
MD)
 Products Water Purifiers, Vacuum Cleaners, Air
Purifiers, Security Systems
 Employees 10000
 Parent Forbes & Company Ltd.
 Under Goklaney’s leadership EFL had grown steadily
 Air purifier – in product line – 1993
 1999- Mr. A.V.Suresh ,COO and senior V.P.
rechristened EFL’s 116 sales offices Customer
Response Centres (CRCs),solicited customer
feedback and opened more service centres.
 In the yr – 2000 EFL announced a common nation
wide customer service phone number supported by
a network of five call centres accessible 24 hrs.- resp
time 48 hrs.
 Comprehensive database – to increase the number of
targeted calls relative to cold calls the company also
began to build a comprehensive customer database.
 116 sales offices in 92 cities – largest field sales force
in Asia
 Revenue- 64% Aqua guard water purifier & 22%
Euroclean vacuum cleaners
 Sales approach

 Cold calls are made

 Product demonstration are made
 Euro cleans (vacuum cleaner) and Aqua guards
(water purifiers) are then sold by EFL sales force
 Sales organization

 EFL is split into three(3) geographical regions,each

lead by a COO
 Common central functions of
finance,FR,operations,SCM,IT and BD support all
the 3 divisions
 The Eurochamp , who is customer sales specilaist
takes the product to customer’s home,demonstarte
and close the sale
 4 Eurochamps make a group lead by a group
customer sales specialist who functions as a group
leader
 Contd…

 Group leaders also have sales quota

 Teamleaders oversee two groups, 1 in which they
function as group leader
 Each head of CRC(HCRC) oversee three team leaders
 Eurochamp is solely focussed on sale. The next three
level above him need to sell and manage.
 HCRCs are managed by DDSMs or DSMs
 The DDSMs and DSMs are managed by the sr DSMs
or ASMs who report ,in turn to a regional head.
 The Eurochamp
Skills & Attitude

 Minimum 2 yrs university education are preferred

 High achievement drive
 Reasonable spoken communication & inerpersonal
skills
 Preservrance
 Financial requirements
 Time estimate for Eurochamp daily task
Tasks Average time spent
Morning field meeting 30
Travel to assigned territory 30
Door knocks 120 (max 1800
Mid day meeting 60
Filling in daily activity report 15 (max 30)
Depositing payments 15
Getting units issued for 15
delivery
Reconciling inventory & 15
potential orders
Cleaning demo unit 20
Role play & product training (included in midday meeting)
Afternoon customer visit 120
Demo & selling 180
 Supervision

 Reporting & feedback- 3 times in a day

 At the morning meeting before heading out on cold
calls
 At the mid day meeting to report on door knocking
results and morning demos
 At the end of the day, review to register afternoon
follow ups, demos and sales numbers.
 Quotas & Territories

 Annual quotas are broken down into monthly

requirements of 60 product demonstrations and a
minimum of 10 sales closing per month
 The Eurochamps are expected to 50 cutomers
contacts daily
 Evaluation & Compensation

 Salary
 Rent allowances
 A special pay
 A demo allowance
 A leave travel concession
 A holiday bonus
 Medical reimburshments
 Travel reimburshments
 Base salary is scaled against length of service, total
service and average sales over the last six 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 additional rs 30 and
rs 40,respectively. Payments under plan, termed the
freindshipchain cannot exceed rs 600 per month.
 EFL Compensation scheme:Frontline

Income Eurochamp Groupleader

Fixed income
Basic 3200(a) 4100(b)
HRA 800 1150
LTC 200 250
Medical 75 75
Field expenses
Bike maintenance 100 100
Bonus 500 700
PF 250 350
Special pay 250 250
Special promotional
expences
Total 5375 6975
 Contd…..
Variable Income
Holiday bonus 200 200
Sales related expenses

Petrol 1000 3000

Quarterly comisison 700
Comission (Monthly for
BM)
Group comission
Contingency comission

Performance incentive

Productivity based
incentive
HCRC allowances
Friendship chain 900 600
Total 6000
Total(A +B) 8875 12975
 EFL’s Compensation plan
Point Based

Points are given on successful completion of various stages of selling

process and compensation linked to the point scored
Criteria Points Daily Minimum
Requirements
Active door knock 5 per door knock 30

Appointment for the day 10 per appointment 5

Gift-a –Smile 30 per call 1

Service request 10 per service request 2

Demos 100 per demo 3

sales: standard 300 per sale 1

Sales : High End products 600 per sale 1

Reference 50 per refernce 1

Friend –get –a friend meeting 3000 for interviews 1

200 attend all the meetings

Commercial appointment 50 per appointment 1

 Selling Strategy : 2012

 Sales Agent- based upon comission

 Sales outsourcing- Direct Branded represetation
 Telemarketing- Throgh Internet & TV
( to reduce the dependecy upon Eurochamps and to
compete with other competitive products)
Demo of products are easier
Payment parts are made easier through online
payments.