You are on page 1of 83

EUREKA FORBES LTD.

PREPARED BY T.Y.B.B.A. Academic Year 2007-2008

Grace College of Commerce

Saurashtra University Bhavna Madam


Guided By

Submitted To

PREFACE
Since the declaration of new industrial policy for the small scale industry in Aug-1991 with a view to make them strong and viable units, they have made an important contribution to the Indian economy along with the bigger firm. It is thus an important part of the study B.B.A. to introduce to the subject, the subject of entrepreneurship and management of small business. The the students student are of today for shall be the

entrepreneur of tomorrow. With this maxim in mind trained the entrepreneurship Hence it is development through subject.

important that the students practically study such skills and learn the same. With these factors in mind the students are required to prepare a industrial project report on any selected product. In this regard I have prepared an industrial project report on EUREKA FORBES PVT.LTD. As per the syllabus, given by the Saurashtra University this is presented here in the best possible manner and to the best of mobility.

DECLARATION

I, undersigned Parekh Urvi H. a student of T.Y.B.B.A. of Grace College of Commerce. Here by declare that the project work presently in this report in my own work and has been carried out under the supervision of Bhavna Madam.

This submitted to

project any

has other

not

been

previously of any

university

examination. I have tried my level best to include all information in this report.

Date: _____________________

Place: - RAJKOT

Acknowledgement
It is really a much of pleasure for me to prepare a industrial project report. At this stage while studying in T.Y.B.B.A. project report is an important part of business and it is in the interest of the entrepreneur to prepare the project before he start the actually production. This project report is very helpful in

developing an entrepreneurial skill and it is also a part of study of T.Y.B.B.A, the training programs or guidance which is provides by my college, so I would like to express my sincere thanks to real source of inspiration Dr. Manish Thaker who has encouraged me to be a real entrepreneur. I am also sincerely thankful to EUREKA FORBES LTD. which is the real source of information of my project, which helped me a lot in the preparation of this industrial project report. Lastly I would like to sincerely acknowledge an express my gratitude to all those who have directly or indirectly helpful to me bring the course of study as it shall be ever prayed so.

OBJECTIVES OF STUDY
EUREKA FORBES is one of the TATAs Group Company in todays competitive world EUREKA FORBES LIMITED is overcoming its competitors like BPL, PHILIPS, and VIDEOCON etc. and getting success all over India in a very short span of time. I want to know the reason of this extra ordinary success in competitive age, so I have selected EUREKA FORBES LIMITED for my practical training as part of my study. It is said that Nothing happens until somebody promote something. One may have the best product, package and so on. It may have fair price but after all above people will not buy your product, if they have never heard of it and they are simply unaware of its experience. So people must know that the right product is right time and right place. This is the job of promotion mix in marketing. As promotion mix is one of the important ingredients of marketing mix I have selected PROMOTION MIX as a topic of my report.

TABLE OF CONTENTS
Sr. No. (1) (2) (3) Particulars
General Information Promotion Mix 1) 2) 3) 4) Advertising Sales promotion Personal selling Publicity & Public relations

(4) (5)

Conclusion Bibliography

COMPANY AT A GLANCE
Name of the unit : EUREKA FORBES LIMITED

Nature of the product : Consumer Durable Year of establishment : 1982 Address of Factory : Faciet Asia Ltd.
52, Apkot Ind, Estate Hosur. BANGLORE.

Registered Office

: 7, Chaka Beria Road (South) KOLKATA : Shalinu Palace,


2nd floor,81-83, Bhavani Shankar Road, Dadar (West) Mumbai-400 028

Corporate office

Mailing Address Phone No. (12lines)

: :

P.O. Box- 936 022-4371129 022-4371125

Tele fax.

HISTORY

AND DEVELOPMENT OF THE UNIT

EUREKA FORBES LIMITED is a group of TATA as the mother company of EUREKA FORBES LIMITED. Company is an associate company of the house of TATA. Indias foremost industrial group whose aggregate sales turnover for the year 1998-99 was almost Rs. 19,000 crores and employees over 250,000 persons. The turnover of EUREKA FORBES LIMITED is Rs. 500 to 600 crore. EUREKA FORBES LIMITED is the outcome of joint venture of two renewed industrial giants viz. Forbes Gohak Ltd. and Electronics A/B of Sweden. Electrolux is a pioneer company, which has started in the year 1971 as direct selling company in the market. They started with product VACCUM CLENNER directly to the customer in the business world. The EUREKA FORBES LIMITED was started in the month of February 1982 with one office at BOMBAY and nearly with a staff of 10 people with one product i.e. VACCUM CLENNER. But not at present EUREKA FORBES LIMITED has 200 to 250 locations in all over India with nearly about 6000 salesman with multi-product like Vacuum-cleaner, Aqua-Guard water filter, air purifier etc. EUREKA FORBES LIMITED has made the mission of propagating the CLEANING WORLD OF EUREKA FORBES AND THE ULTIMATE IN CLEANING SYSTEM. EUREKA FORBES LIMITED is in a strong position as leader in Health and Hygiene products. It is the pioneer of direct selling in India.

SIZE AND FORM OF The ORGANIZATION


Depending upon the ownership, the organization can be classified into three forms and these forms are described as follows.

FORM OF BUSINESS ORGANIZATION


1. Private Sector: The units owned and managed by the individual come under this sector. 2. Public Sector: - The units owned and managed by the government come under this sector. 3. Joint venture: - The units that are the joint venture of the government and individual come under this sector.

SIZE OF THE UNIT


In India, generally the business units are classified into three main categories on the basis of the size of the unit. 1. LARGE SCALE UNIT:A large scale unit is the one whose investment in fixed assets and current assets is more than 5 crores. 2. MEDIUM SCALE UNIT:A medium scale unit is the one whose investment in fixed assets and current assets fall between 3 to 5 crores. 3. SMALL SCALE UNIT:A small scale unit is the one whose investment in fixed assets and current assets are less than 2 crores.

10

EUREKA FORBES LIMITED is the large scale business and it is said to be private sector

11

THE BOARD OF DIRECTORS.


CHAIRMAN MANAGING DIRECTOR VICE PRESIDENT AREA SALES MANAGER DISTRICT DIVISIONAL SALES MANAGER GROUP LEADER 1. MR. Rajesh Jani 2. MR. Jayesh Jani {For vacuum cleaner} 1. MR Divyesh Mehta 2. MR. Sahi Pandya {For Aqua Guard} MR. Fredali A. Mehta MR. S.C.Goklney MR. A.V. Suresh MR. Terence Able (Gujarat) MR. Pankaj Joshi (Gujarat)

12

13

PRODUCT, COMPETITIORS AND MARKET SHARE


EUREKA FORBES LIMITED has a number of products but in this project report we are going to deal with only main product of the company viz.

VACCUM CLEANER:-

Types of vacuum cleaner are as under. Euro clean (XL) (New) Tornando vacuum cleaner 2-75 industrial vacuum cleaners

The respective price of EURO CLEAN is Rs. 5,990/- and the main competitors of these particular product are as under. BPL SANYO PHILIPS MODY HOOVER SUMEET MAHARAJA VIDEOCON USHA ELECTRONICAL

The respective price of AQUA GUARD is Rs. 6,690/- and the main competitors of this particular are as follows. o o o o CRYSTAL CLEAR (PERMIONICS) ALFA PURE VIDEOCON MONIBA

14

SYNEX PURIFIER

Besides above mentioned competitors there are many local companies, which are also competitors of the company. When we take VACCUM CLEANER into consideration the most known name among all is EURO CLEAN i.e. one product of EUREKA FORBES LIMITED and its market share is nearly 70 to 80 %. There is 24 months warranty provided with the product. AQUA GUARD consumed almost 65 to 70% of the total market of water filters. There is 12 months warranty provided with the product. They are also selling Air-purifier as a product of the company but it is not as much as popular in Indian market.

15

16

PROMOTION MIX
INTRODUCTION
The marketing activities of product planning, price and distribution are performed mainly within a business or between a business and member of its distribution channels. You may have best product package and so on. It may have fair price, but people will not buy your product, if they have never heard of it, and they are simply unaware of its existence. The market must communicate information in a persuasive language. People must know the right product is available at the right place and at the right price is the job of promotion mix marketing. So it is said that Nothing happens until somebody promote something. Basically promotion is an attempt to influence and more specifically promotion is an element in the organizations marketing mix that serves to inform, persuade and remind the market of the product and the organization selling it, in hope of influence the consumers feeling, beliefs or behaviour. Modern marketing calls for more than developing a good product, pricing it attractively and marketing it accessible target customers. Company must also communicate their present and potential customers, retailers, suppliers, other stock holder and general public. Every company is inevitable the role of communicator and promoter. For companies the question not whether communicate but rather what to say to whom to say and how often.

DEFINITION:-

17

Promotion consists of those activities which are designed to bring a companys product and services to the favorable or positive attain of potential or other customers. Each tool of promotion mix is a vehicle of medium of communication in the field of marketing management. The marketer is an artist creates the most favorable blend of promotion elements of influence buyer behavior and the process of decision making in purchase. Thus sales can be promoted through promotion campaign, there mainly four important tools of promotion mix which are described as follows. 1. 2. 3. Advertising Sales promotion Personal selling

4. Publicity & Public relation Let us study all the four promotional tools one by one in short.

ADVERTISING:The American marketing association defines advertising as Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The important or key words on this on an advertisement, instead of communication with customer face to face. Companies the advertise ordinarily uses a mass medium, television, newspaper, a radio, hoarding etc. These messengers, when they appear; identify clearly who has paid for them.

SALES PROMOTION:-

18

Sales Promotion includes a wide variety of tools and sales promotion is a direct inducement which offers an extra value and incentive for the product to the sales force, distributors or the ultimate customer. Sales promotion methods are useful means of stimulating a quick and immediate response from customer coupons, music cassettes, free samples and free demonstration and just as few examples of many forms that sales promotion may take.

PERSONAL SELLING:Personal selling involves a one to one relationship with a customer. It is the oral presentation of tangible and intangible product by a seller to a prospect for the purpose of completing an exchange. The benefit of personal selling is that it allows sales personnel to judge the relationship of customer to their sales presentation and thus, gives us an opportunity to very the message for better understanding. It is not suited to the mass distribution consumer product.

PUBLICITY:Publicity is formally defined as any form of non-paid advertisement and communication. In general it increases consumer awareness of a company of its products particularly new and innovative product and marketing practice. A company can also plan publicity to derive its advantage.

What Eureka thinks about its customer:19

A customer is the most important person ever in this office_ _ _ in personal or by mail.

A customer is not dependent on us _ _ _ we are dependent on him. A customer is not an interruption of our work_ _ _ he is the purpose of it. We are not doing a favour by serving him_ _ _ he is doing us a favour by giving us the opportunity to do so. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. A customer is a person who brings us his wants. It is our job to handle them profitability to him and to ourselves.

20

21

INDEX OF ADVERTISING
Serial Particulars No. Introduction (1) (2) (3) (4) (5) (6) (7)
Objective of Advertising Different advertising medias of

Advertising theme of appeal Advertising Agency Advertising copy Advertising Budget

22

INTRODUCTION
Advertising is one of the five major roles. Companies use direct persuasive communication to target buyers and public. It is because mass markets at reasonable costs. It is too costly and time consuming to use only sales people in large geographically drive markets. However, where as personal selling or direct selling can be tailored to the individual prospect mass communicators try to reach many people with a common massage. This ultimately results into mass communication at a reasonable cost. Advertising is the most important promotion tool among all the other tools of promotion. There will be hardly a field of business in which advertising is not used for sales expansion. It is not exaggeration to say that MODERN AGE IS THE AGE OF ADVERTISING. It is the foundation of modern trade and industry. From the above discussion EUREKA FORBES LIMITED give advertising in newspaper or in magazines in yearly or in Diwali. But in television EUREKA FORBES LIMITED gives advertising regally on every channel.

23

DISTINGUISH FEATURES OF ADVERTISING: It is unique of means non-personal or mass communication announcing the sale of goods or services. It can help to introduce a new product quickly. The advertising is non-personal salesmanship function like personal salesmanship. It is a silent but forceful salesmanship. It helps to pre-sale a product. It is an openly sponsored sales message regarding any product or service. It is paid form of communication by the sponsors [Advertiser] to the media owner. Advertising message can be addressed to numerous people at a time they may be readers, listeners, viewers, collectively.

24

OBJEVTIVES OF ADVERTISING
We already know that every activity is depend on some specific objectives and the advertising is one kind of activity, so it has also some objectives behind its publications Either it may to increase demand, to attract customer, middleman to face competition or other marketing purpose. The first in developing advertising programmed to set advertising objectives. According to EUREKA FORBES LIMITED these objectives must flow from prior decision on the target market EUREKA FORBES LIMITED, market positioning and marketing mix. The market positioning and marketing mix strategies define the job that advertising must do total marketing programmed. The EUREKA FORBES LIMITED has undertaken the activity of advertising with a view to attain the following objectives.

TO INFORM:Telling the market about the new features of the product. Suggesting new uses for a product.

Explaining how the product works. Building a companys image. Telling about mode of selling.

25

TO PERSUADE:

Building brand preference. Encouraging switching to your brand.

Changing customers perception of product attributes.

Persuading customers to purchase now.

TO REMIND: Reminding customers that the product may be needed in the near future. Reminding them aware to buy. Maintaining its top mind awareness.

DIFFERENT MEDIA OF ADVERTISING:Advertising Media is the vehicle for manufacturers to convey company. There are many media of advertising through which company can advertise. The selection of media depends on various factors such as:

The finance allocation for advertising.

The nature of competition and promotional aidoffered by media circulation. Right media of advertising will enable the advertiser to deliver the message effectively to the intended markets of prospectus. The different type of media can be analyzed as follows:

26

MEDIA OF ADVERTISING
1 PRINT MEDIA
News papers Magazines

2 OUTDOOR PUBLICITY
Posters Hoardings

3 DIRECT MAIL ADVERTISING


Circular Selling Quotations Price lists Pamphlets

Trade/technical Electrical journals display Periodicals Sign Boards

4 BROADCAST MEDIA
Radio Television Film Internets

5 TRANSIT
Railway Buses Airplanes Car-cards

6 OTHER FORMS
Window Display Exhibitions Directories Advertising specialists

27

Out of the above media, EUREKA FORBES LIMITED uses media for advertising, some of included in some of included in sales promotion tools and some of them are describes as follows:-

1. PRESS MEDIA:Press media media. included following important

Newspaper Magazines Trade and Technical Magazines Periodicals

According to EUREKKA FORBES LIMITED, they give advertisement in newspapers and magazines only one time when like festivals of DIWALI or yearly based. In newspapers they use state leading SANDESH, GUJARAT SAMACHAR, Country leading THE TIMES OF INDIA and INDIAN EXPRESS and in Magazine they used CHITRALEKHA, GRUH SHOBHA, and READERS DIGEST etc. So at least we can say that press media is not use more than other by EUREKA FORBES LIMITED.

28

2.

OUTDOOR ADVERTISING:-

EUREKA FORBES LIMITED had adopted posters, hoarding and electric display as media of outdoor advertising. They are giving importance to this media because it has long life and wide appeal and also because it can attract attention of numerous people. EUREKA FORBES LIMITED has been taking into consideration some important point while giving advertising through its media such as the place of the posters, hoardings, electric display and rules and regulation levied by the government. They choose the local place for this purpose. However, they are not giving too much importance to this media because of its effectiveness can not be accurately measured and it may be lead to considerable wastage also. Further it is not useful in selective advertisement.

3.

DIRECT MAIL ADVERTISING:-

The direct mail advertising is the vehicle for transmitting the message in printed, written or processed form with control in distribution. Direct to selected individual. EUREKA FORBES LIMITED is also using this media of advertising in the form of booklet and personal letters that are described as under.

4.

RADIO ADVERTISING:-

EUREKA FORBES LIMITED is using this media because it is suitable for some illiterate people and also because spoken words have greater impact than written words. They advertise their product on radio before and after giving much more importance to this media because it can not detailed information and has low memory value.

29

5.

TELEVISION ADVERTISING:-

EUREKA FORBES LIMITED is using television as an important media of advertisement. They advertise their products on ZEE TV, STAR PLUS, and SONY TV etc. regularly before very popular programmers. So that it can attract more prospective customers. They are giving much importance to television advertisement. So, EUREKA FORBES LIMITED give advertise of its product through above media but its main source is DOOR TO DOOR SELLING according to EUREKA FORBES LIMITED it is the best way for it to increase the sales. So it gives much importance to DOOR TO DOOR SELLING.

30

ADVERTISEMENT THEME OF APPEAL


The theme of appeal is control idea around which the advertisement is created. It is called the unique sales promotion. There are various appeals used in advertisement to sell product or service. The selection of theme of appeals is usually made by means of consumer study and research, is that they have got the knowledge about the types of prospective customers, their style of living, social class to which they belong and kind of approach them need, they have conducted this research to form the advertising theme also. After a proper consideration, EUREKA FORBES LIMITED has selected following theme for vacuum cleaner and water purifier.

1.

Generally vacuum cleaner in EUREKA ORBES LIMITED is sold with the theme of pride appearing to upper class and rich class. It appeals the theme of pride by saying the statement that EUREKA FORBES LIMITED.

THEME OF PRIDE:-

2.

THEME OF EASE IN COMFORT:-

In EUREKA FORBES LIMITED vacuum cleaner is sold through advertisement with the theme of easy in operation. It says that the time of cleaning your house with the help of vacuum cleaner the operation is so easy just on the switch take in hand of EURO CLEAN (XL) and get house clean in few minutes.

3.

TO SAY ABOUT MODE OF SELLING:-

In the advertisement of vacuum cleaner and aqua guard water purifier of EUREKA FORBES LIMITED, this theme is also pointed out. In advertisement, it says that you need not to go anywhere to buy vacuum cleaner and aqua guard water purifier of EUREKA FORBES LIITED. Just make

31

us call and our salesman reach at your home as fast as possible to demonstrate the item.

ADVETISING AGENCY
Advertising agency can be explain in briefly as The organization undertaken the task of planning and executing the advertising programmes on behalf their clients. The advertising agency take the brief form of the marketing and advertising department of the client company and learns everything about the product to be advertised, the budget meant for its the objectives of advertising programmes etc., with the help of brief idea they create advertisement, the take copyrights of writers who wrote advertising message, its layout and several advertising copies for the approval of the clients of marketing department on finalizing the advertising coy the agency in consultation with clients prepares a media plan in which the message will be put, the time frequency etc, also included in this. The advertising copy is given to reduction department, which prepares the final art work to be given to the broad casting and television media. Regarding the organization needs to perform the message of the advertising activities in a company, management has three objectives. A companys own advertises department. An outside advertising agency.

Both company department and advertising agency. Advertising is independent concerns acting as specialist in advertise even companies with strong advertising department use advertising agents. It

32

acts as agent or consultant of the advertiser who is manufacturer, wholesaler or retailer. It is not an agent in the legal sense originally but in acted media owner. Today the very popular agencies of advertisements are:CAMERAD OLEIVE AND MATHEOR HINDUSTAN TANSAN LINTAS SAUBHAGYA OBILY

EUREKA FORBES LIMITED has been also taken the help of very popular agency OLEIVE AND MATHEOR (O&M), Mumbai regions for using the advertising agency are follows:The company can not have all types of specialists such as copywriter, artists, design staff, market research experts etc. The agencies have these highly paid specialists on a permanent basis because their costs are spread over many advertisers. Hence, it is economical and cheaper to use an advertising agency. The agency can take unbiased or objectives views of any advertising problem. The agency can see the product, its merits, and demerits through the eyes of the buyers who are also outsiders; this objectively is not possible for an advertisement department of the company. Finally the media owner pays the agency. The company pays nothing for the use of an agency while buying advertising space. He pays the same cost if the places an advertisement directly with the media partner. The EUREKA FORBES LIMITED gives the agency. The company pays nothing for the use of an

33

agency while buying advertising directly with the media owner. The EUREKA FORBES LIMITED gives the design, size, color, etc. of the product to the agency. The advertisement, selection of media, placement of advertises, advertising research study of audience these app characteristics are performed by the O&M, Mumbai. It receives about 15% of commission from the media owner also.

ADVERTISING COPY
The term copy refers to a material which is to be set type of the print media or spoken by announcer for broad case commercial. Advertising copy is the most important and critical activity for the success of the entire advertising of the company depends on it to a large extent. Advertising copy is a key activity in advertising indeed a creative activity. A copy transits the sealing point of a clients product or say and who in an advertisement that how to say and show it. He is called upon to alter all his creative talent to present those product benefits which best appeal to consumers. Advertising copy includes all the element of an advertising message whatever printed or broad cast. In advertising for the print media it includes the heading, subheading, and picture. EUREKA FORBES LIMITED, cartoons and body of the advertisement. It may even include trade marks, the company logo, border and music in addition to words spoken in the advertisement message. TV has the domination of motion in addition to that of TV includes the words o be spoken by the characters in the scripts plus music and sound effect as well as illustrative materials. Action and even camera effect also.

34

35

QUALITIES OF GOOD ADVERTISING COPY


o o o o o o o It must have a personal appeal. It must be responsible but never dull. Independent and bold think ness. Keep preparation and imagination. High degree of adoptability. It may be slice of life. It may present a life style.

o It may awake a mood or image such beauty, love or sincerity. o o It may be musical It may a personality symbol.

36

ADVERTISEMENT BUDGET
Having established the advertising objectives, the next important managerial task is to determine the advertising appropriation for companys budgetary period. It is that part of companys communication budget which is to be spent or invested on media, mean and other ancillary services to as to impersonally advertising budget which are as follows. o o o o o Affordable method Competitive comparison method Percentage on sales method Return on investment method Objectives and task method.

EUREKA FORBES LIMITED first of all overall budget for promotion is decided. This budget is decided on the basis of percentage on sales method. Overall promotion budget they are appropriating 25% budget to advertising, they are using this method for determine promotion budget as well as advertising because it is easy to understand and calculate. Further there is a relationship between sales and promotion expenditure.

37

38

INDEX OF SALES PROMOTION

Serial No. (1) (2) (3)

PARTICULARS
Introduction Objectives of Sales Promotion Sales Promotion Tools a) Consumption promotion tools b) Trade promotion tools c) Business promotion tools Development of the sales Promotion programme

(4) (5)

39

INTRODUCTION
Sales promotion is an important instrument in marketing efforts today, sales promotion is a necessity not merely a luxury or a fashion. It is not expenditure; it is an investment which can pay rich dividends. It is an integral part of the marketing activities. Sales promotion is one of the most loosely used terms in the marketing vocabulary. Sales promotion consists of diverse collection of incentives tools, mostly short term designed to stimulate quicker and greater purchase of particular products by consumers or the trade. In other words, sales promotion consists of those activities that are intended to stimulate customer demanded and improve the marketing performance of seller. In short, where as advertising offers reasons to buy sales promotion offers incentives to buy. Sales promotion includes tools for consumer promotion [E.g. samples, coupons, cash refunds offer, price off, premium rewards, free trials, warranties, demonstration contest etc. Trade promotion [e.g., Buying allowance, free goods, merchandise] and sales force promotion [e.g. bonus, contest, sales relies]. In short, sales promotion is a bridge or connecting link between advertising and personal selling.

40

OBJECTIVES OF SALES PROMOTION


Today it is the world of stiff competition. Consumers are becoming aware about the value of the product. Which they are going to buy and price of it. Today there is not competition about price, but consumers want to extra benefits and best quality of product by paying the same price. Now a days a lot importance is attached to sales promotion in each and every kind of organization. It is an incentive to attract consumers. Sales promotion has got importance because by the way of which product improvement is there and also new product development is also possible and sales promotion is also helpful in maintaining consumer attraction and create brand image in the minds of consumers. EUREKA FORBES LIMITED has adopted a sales promotion as major tool of marketing efforts. According to EUREKA FORBES LIMITED prospectively buyer must be attached urgent and ever persuade to buy a product of the company. They are giving importance to sales promotion because; It stimulates positive awareness towards the product. It gives extra incentives to the consumers to male a purchase. It gives direct inducement to take immediate action now rather then later.

41

SALES PROMOTION TOOLS


Many sales promotion tools are available to accomplish sales promotion objectives. The promotion planner should take into account the type of the market. Sales promotion objectives, competitive conditions and cost effectiveness of each tool. We will now consider the main sales promotion tools used by EUREKA FORBES LIMITED for consumers promotion, trade promotion and sales force promotion.

CONSUMER PROMOTION TOOLS


Major consumer promotion tools used by the EUREKA FORBES LIMITED are as under.

WARRANTY:Product warranty is important promotional tool, especially as consumers become more quality sensitive. Vacuum cleaner [Euro clean XL] are warranted against defects arising from factory design, workmanship and materials for a period of 24 moths form the date of invoice as well as aqua guard water purifier are also warranted for a period of 12 months from the date of invoice. Both above products are warranted subject to following condition.

42

CONDITION:The customer will notify the company promptly of any defect noticed opportunity to inspect, test and remedy then for which the customer deposited the goods, if necessary with the customer deposit the goods if necessary with the companys office/service center with invoice in the city where are sold. Inspection and test reports of companys office/service center will be treated as final and binding under the warranty for determining defects, repairs alternations required or cried out certifying working of the goods thereafter. The company or its authorized agent will be entitled to retain any defective part replaced under the warranty period. The companys liability under the warranty period will be limited only to be defects, which occur under condition of normal operation, and under proper use. It excludes defects occurring because of abuse, faculty care or maintenance, repair alteration to goods or parts by other use on electrical supply for which the goods are not designed or to damage caused by lighting or other electrical are not covered by this warranty. Components subjects to wear such as carbon, brushed and accessories are not covered by this warranty. The customer will have not claim under this warranty in respect of any personal injury, damage or consequently accordance with operational manual.

43

AFTER SALES SERVICES:In EUREKA FORBES LIMITED, the customer may be offered a service contact with the company on the expiry of the warranty of the goods brought to its service center by the customers.

FREE TRIAL:In EUREKA FORBES LIMITED, free trial consists of inviting prospective purchases to try the product without any type of payment and after trying it if purchase is satisfied they can purchase the product. Prospective buyers are invited through personal letters.

DEMONSTRATION:In EUREKA FORBES LIMITED, there is door to door selling called direct selling. Salesman goes to prospective customers house and gives the complete knowledge about the product. i.e. Type of products, different types of accessories used in the product, its superiority in operation and different types of uses. He gives them live demonstration if prospective customers ring up. Then they also go to their office also. Demonstration is one of the important tool for EUREKA FORBES LIMITED and they increase their sales from the demonstration. Thus it is the very important part of customer promotion tool by which company comes in direct contact with prospective buyer and tries to understand their demand and solve their problem which can ultimately increase the sales of the companys product.

PREMIUM:Premium or gifts are merchandise offers at a relatively low cost or free as an incentive to

44

purchase. In EUREKA FORBES LIMITED also, it gives one bag free with Euro clean XL and Aqua Guard.

TRADE PROMOTION TOOLS


There are number of manufacturers are using a number of trade promotion tools due to below objectives:Trade promotion tools can easily persuade the retailer or whole seller to carry the brand. Trade promotion can include the retailer to promote the brand by display features of product and price reductions. Trade promotion can stimulate retailers and trade sales clerk to push the product. In EUREKA FORBES LIMITED, company is not giving any types of trade promotion such as price off, allowance, free goods because company has not whole seller or retailer. Instead of them, company has its own more than 200 branches all over India. Because of the disadvantages of whole selling and retailing, company has opened its own branches all over India, providing direct service to the prospective customers.

BUSINESS PROMOTION TOOLS


EUREKA FORBES LIMITED spends too much of business promotion. These tools are used for such purpose as gathering business leads, impressing and rewarding prospective customer and stimulating the sales force to gather more effort. The main tools of business promotion tools are as under:-

45

DISPLAYING IN EXHIBITION, FAIR ETC.

EUREKA FORBES LIMITED takes part in different exhibitions and fairs. Generally this type of fairs and exhibitions are held by some other authority at the time of some festivals such as Navratri, Janmashtami, Diwali etc. and in those fairs and exhibition companies books their stole and give live demonstration. Same way EUREKA FORBES LIMITED buys the space and set up display to demonstration their product. Thus the cost of these tools is very much less, but values of this are too much high. There are number of people attend this types of fair and exhibitions and same into the contact with the company and its uses.

SALES CONTEST:In EUREKA FORBES LIMITED, sales contest is a contest involving the sales force aimed at including them to increase their sales over a stated period with price going to those who secede. In EUREKA FORBES LIMITED, sales target is decided first by the company. In this direct promotion is not given to the employee. Each and every employee has to perform the job of best salesman first. If the salesman achieves the target setup by the company over the stipulated time, he can get the chance of promotion and other prizes such as free trip of any one big city in India. With the help of the business promotion company can get following benefits: It can increase its sales. It can satisfy the salesmens needs.

46

Company can get information about efficient personnel and can provide best incentives to work.

However, EUREKA FORBES LIMITED, is taking too much care in fixing target because if target is low then it is possible that in-efficient person is promoted and if target is high then it can disappointed the salesmen.

SPECIALITY ADVERTISING:In EUREKA FORBES LIMITED, specifically advertising consists of blueprints, pen, calendars, cigarette lighter etc. The item keeps the companys name before the prospect and creates goodwill because of utility of the items.

DEVELOPING PROGRAMME.

THE

SALES

PROMOTION

In EUREKA FORBES LIMITED, to develop the promotion programme, they have to think about following points or we have say that people should develop the sales promotion programme taking into account following consideration:-

SIZE OF AN INCENTIVE:According to EUREKA FORBES LIMITED, a certain minimum incentive is necessary for the success of promotion. A higher incentives level will produce more sales response. But at a diminishing rate so company fixes the sizes in between low and high.

47

e.g. Company is arranging sales contest. Then if it gives too much less incentive then nobody will go for this and it is too much high will become expensive. In this situation company has find out middle way. They are giving promotion plus prize benefit to successful sales person. Thus, size of incentives in EUREKA FORBES LIMITED is fixed after taking into consideration the financial availability and benefit derived form that incentive.

CONDITION FOR PARTICIPATING:Here the decision is taken about, the incentive that might be offered to everyone or to selected groups.

DURATION OF PROMOTION:In EUREKA FORBES LIMITED, in case of consumer promotion tools, the duration of warranty is fixed like 1 year and 2 year in Aqua guard and Vacuum cleaner. This duration is fixed after taking into consideration the technical aspect of the product.

SALES PROMOTION BUDGETS:Finally, the market decides the sales promotion budget. In EUREKA FORBES LOMITED, the method of determining the sales promotion budget is very simple. They fix budget on the basis of conventional percentage of the total promotion budget. They have sales promotion budget is 15% of the total promotion budget. After determining the proper sales promotion programme, it is implemented at a stipulated time. Evaluation of sales promotion programme is done in EUREKA FORBES LIMITED i.e. comparing the sales

48

figures before and after the implementation of sales promotion programme.

49

INDEX OF PERSONAL SELLING

Sr.No. Particulars (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Introduction Importance of personal selling Essential of effective selling Salesmanship Types of salesman Recruitment of salesman Selection of salesman Training and compensation plan Personal selling system Personal selling process

50

EUREKA FORBES LIMITED is giving too much importance to personal selling rather than advertising and sales promotion. There are no retailers or wholesalers for company product so this personal selling system also known as direct selling system also known as direct selling system. So in this way in EUREKA FORBES LIMITED, there is a direct selling system. From the above definition it can be said that personal selling is an art but according to EUREKA FORBES LIMITED, it is both science and art. An art is SKILL IN PERFORMANCE ACQUIRED BY STUDY AND OBSERVATION AND EXPENDITURE viewed in this manner, salesmanship is an art, and salesmanship requires a certain aptitude or talent, a certain type of personality. A salesman must posses a certain skill can be acquired and developed. A science has been defined as SYSTEMATISED KNOWLEDGE. Salesmanship can be considered as science according to this view because it is based on certain standard principal and theory. However, salesmanship is not an exact science compare to physics or other, but it is a science based in Human Psychology. It can be considered a SOCIAL SCIENCE.

51

INTRODUCTION
The term Personal selling, itself signifies the meaning i.e. a person goes to the customer and introduce the product with a view to sell the product. A salesman is one who practices the profession of selling. Personal selling refers to the oral presentation in conversation by a sales representative with one or more prospective customer for the purpose of making sales. No other tool for promotion is as strong as personal selling or salesmanship. Personal selling is highly distinctive and the only form of promotion involving face to face (direct) relationship or interpersonal interaction communication between a sales person and one or more prospective customers. Personal selling has been defined by Russell and Beech as It is the art of persuading the people to purchase goods which will give off lasting satisfaction by using methods which consume the least time and efforts.

52

IMPORTANCE OF PERSONAL SELLING


Personal selling is the most important in the production mix. EUREKA FORBES LIMITED is giving too much importance to personal selling because through personal selling EUREKA FORBES LIMITED is in as position to get following advantage. A person can pinpoint prospect. Hence, there is minimum rate of effort and expenditure in personal selling. Personal selling interview in salesmanship assures attention and interest of a prospect. Personal selling has flexibility. Salesman talk and presentation can be fitted to the individual needs and obvious of his prospect. This is not possible in advertising. Sales can meet objectives and reactions of his prospect in order to gain favorable action. Company is giving actual demonstration. Actual demonstration of the product or its use is recognized as the most powerful means of convincing. Advertising can not use demonstration but salesman can use it easily. Company is using personal selling as most important tool because it is the best means of two way communication between the company and its customers. Top management can be fully informed about vital matters such as competition, customer

53

reaction and comments, market trend etc. This feedback of information can not be adequately achieved through other means of promotion.

ESSENTIAL OF EFFECTIVE SELLING


According to EUREKA FORBES LIMITED, the leader of personal selling, personal salesman should be well equated with five EUREKA FORBES LIMITED departments. These five pre-requirements can be summarized as follows.

KNOWLEDGE OF YOUR COMPANY:Some products are not joined on their own merit but the name of the company that manufactures them. Hence salesman must be company oriented. The facts about it the company must be at his prospect about your firm so that they may decide to do business with your firm.

KNOWLEDGE OF YOUR PRODUCT:A salesman knows all about his product like raw-material from which it is made, how it is used. It is maintained product features customers benefits, selling points of the product in relating to its rival and so on without having the adequate knowledge about vacuum cleaner, and Aqua-guard, a salesman can not convience the prospect and convert him into a customer.

KNOWLEDGE OF COMPETITION:-

54

A salesman should constantly study the product offered by his competitors and determine their strength and weakness in comparison to his own products. Though knowledge of the company its product is and its competitors constitutes the solid background of essential information for effective selling buyer have faith on well informed salesman.

KNOWLEDGE OF CUSTOMERS:A salesman must have knowledge about the customers wants and desires; customers buying process, their perception, innovation and learning process. Sales presentation can not be effective unless a salesman knows about factors influencing buyer behaviour.

KNOWLEDGE OF SELLING PROCESS


A salesman should have adequate knowledge about selling process. It should be informed of all the stages of selling process like prospecting, presentation and post sales activities etc. The salesman can use A I D A S formula i.e.

Attention, Interest, Desire, Action and Satisfaction

55

TYPES OF SALESMAN
The following is the chart of showing types of salesman:-

Different Types Of Salesman

Industrial Salesmanship

Merchant Salesmanship

Consumer Salesmanship

Specialty Salesman

Missionary Salesman

Creative Salesman

Detail Salesman

All are traveling salesman in chart at specific sales territory.

56

DETAILS OF SALESMANSHIP
INDUSTRIAL SALESMANSHIP
Industrial salesmanship needs a technical background in engineering or chemistry to understand the problems and also know the language of technically trained agents. Industrial salesman represent manufactures or wholesalers etc, for highly technical training are employed to study the customer problems, recommended proper equipment, supervise the installation and train user in its operations.

MERCHANT SALESMANSHIP:It involves quantity selling of all types of consumer goods (convenience, shopping and special goods) to resellers. They operate the consumer good market we have 4 types of more merchant salesman.

[SPECIALITY SALESMAN]
He is called upon the sell consumer specialities such as vacuum cleaner, refrigerator, cosmetics etc. They also sell in industrial product and materials supplies etc. These salesmen specialize in introducing new product or innovation in the market. They adopt the technique of aggressive salesmanship.

[MISSIONARY SALESMAN]

57

They are responsible for promoting sales and create a demand they help much out in arranging stores, display planning store, sales and helping in all merchandise activities.

[CREATIVE SALESMAN]
They are the salesman who seeks to introduce a new product or a new brand into the market. They create a demand for such novelty they are pioneer salesman.

CONSUMER SALESMANSHIP
It helps the customer to take purchase decision i.e. in the store to buy NOW i.e. on the spot. They also create strong patronage a store loyalty to ensure repeat purchase by customers. It is required for selling high cost articles, e.g. automobile, refrigerators, television sets etc. In EUREKA FORBES LIMITED, we find especially creative salesman. They are expert in introducing new products and innovations in the markets. They are able to create demand for both introducible products with their creative stall of salesmanship.

58

RECRUITMENT SALESMAN

OF

Recruitment refers to process of searching for prospective employee and inducing them to apply for job. It is the most important function because unless the right type of people is hired even the best plan and organization system would not do much good. Systematic recruitment of salesman leads to greater productivity. Higher more able in labour turnover and better resolution of the concern. In EUREKA FORBES LIMITED, first of all recruitment policy is established when it is found that there is a need of salesman. They get information about prospective employee recommended form present employee or former employee of the organization. They evaluate the information collected by them and make decision to select to reject prospective salesman. They also give advertisement in local newspaper, trade journals and magazines. Interviews are held up a proper selection process in made after consideration.

59

SELECTION OF SALESMAN
Selection is the processes in which candidates for employment are divide into classes those who are offered employment and those who are not. While selecting the salesman in EUREKA FORBES LIMITED following qualities are taken into consideration. [A] PHYSICAL QUALITIES According to EUREKA FORBES LIMITED, salesman should have a good physical appearance which is a very big asset for a salesman. According to them, he should be well built and free from physical defects, he should have appropriate dress, clean appearance, a good posture in creature a good first impression. A salesman must always have cheerful smile in his face. [B] SOCIAL QUALITIES A salesman is required to move in different cities to meet many customers and set along with them. He must therefore develop a good social behaviour. A salesman must always cultivate good manners. According to EUREKA FORBES LIMITED, a salesman must be polite and respectful and never become unduly familiar with his customers, courtesy in dealing with customers using polite expressions and a sincere desire to please customers are very necessary for success in salesmanship.

60

[C] MENTAL QUALITIES According to EUREKA FORBES LIMITED, the mental make up of a salesman must be conductive to success. He should have a good power of memory and ostentation. Each must be able to recognize the customers, their characters and their buying motives and adjust his sales according. He must be alert and always on his toes. He should be self-confident. [D] MORAL QUALITIES Honesty and integrity are the essential character qualities of a salesman. Customer must be willing to depend on the salesman. Creating of goodwill and a name of fair and honest dealing are essential in business. A salesman must be loyal both to his employer and customers, there are also various other qualities, which a salesman must develop in order to become successful. While taking the interview and these qualities matched with prospective salesman character and if there is best match between the two he is selected as a salesman of the company.

61

TRAINING AND COMPENSATION PLAN TRAINING


In EUREKA FORBES LIMITED, training plays the major role the people in EUREKA FORBES LIMITED are given a class room training of 2 to 3 days in which knowledge of the company, direct selling [personal selling], product knowledge information is covered. After the sales persons are given field training in which a senior sales person accompanies him and he is made to observe the actions and reactions of the customers and sales persons. These types of field training are given for 15 to 30 days. After that if salesman is ready to go alone then he will be given specific sales target in for particular month and if he will succeed in selling the specific target then he will be promoted.

COMPENSATION PLAN
EUREKA FORBES LIMITED is the best company, which as the best compensation plan for their sales force. A part of its paid in the firm of basis and field allowance. But the company believed in GIVE AND TAKE POLICY it is so said in EUREKA FORBES LIMITED, that it is the highest paid for hard work and lowest paid for lower work. The company has various slab for commission in which sales persons can earn as much as his own EUREKA FORBES LIMITED, who can sell average 20 units per month can earn more than Rs. 5000/-.

62

PERSONAL SELLING SYSTEM


The system approach is useful for understanding the elements of personal selling strategy. The sales system under the system approach is presented in the following diagram.
Sales System

Input

Transformation

Outputs

Human Technological Organization

Sales Process

Changed Customers Changed sellers

SYSTEM BOUNDERS ENVIRONMENT ENVIRONMENTAL PROCESS [UNCONTROLLABLE] ENVIRONMENTAL ALTERNATIVES [CONTROLLABLE] INPUTS:The environment provides the inputs to the sales situation from which the sales manager selects more favourable combination of inputs in order to fulfill his sales objectives.

63

(1) Technological inputs (2) Human Inputs (3) Organizational input TRANSPORTATION PROCESS The transportation process to influence by the combination and working of the outputs. FEEDBACK:Feedback refers to the return flow of information from the sales encounter. Such information can be used to modify the selling system. The performance of salesman is evaluated by the sales manager even by the group leader of the salesman. OUTPUT:The effectiveness of the system and its various survivals depends upon transforming the prospect into a buyer. Consumers attitude purchases the product are also the outputs. EUREKA FORBES LIMITED practice spot purchase. Once the salesman to the prospective consumer, he gives demonstration of the product and the prospective customer has to take immediate decision whether he is interested the salesman takes the order and there after on the next day customer gets the delivery of the product. Hence the salesforce of the every business or company they are the focal point of he marketing mix. They are not depending on the seller in reality, but the seller is dependent upon them.

64

There are various types of customer, i.e. impulsive customer timid or nervous customer, argumentative price minded, talkative, silent and suspicious. The salesman of this company through keep observation and study can trace the individual peculiarities of his prospect on the basis of his knowledge and he adopts his sales talk to secure favorable result. The prospective customer is not classified by the sales status wiz, how ever they do classification of the future customer according to their profession as under. Businessman Government servants Professionals Industrialist Service class Businessmen do not react or respond in a very manner forward the companys product and their purchase are always varying. Government servants are the most responsive group of customer, they mostly react positively towards the purchase of the product. Professionals are generally educated advanced class of society. They have got advanced thinking hence mostly they are the adopter pf the company product.

65

Industrialist does not behave in a specific manner towards the product the response is not always predictable. Generally the purchases of service class customer are seasonal i.e. during festivals like DIWALI. The upper-middle and middle class people mostly purchase the products of the company because they are the class of people who are eager to utilize the best available service in the market. As they have planned their purchase either by cash i.e. once a year on Diwali bonus or sometime through loans and hence to maintain their standard in every manner. In the present society and the environment they are the first people to buy the given advantages.

66

PERSONAL SELLING PROCESS


Personal selling refers to organizational presentation in conversion with one or more prospective customers for the purchase making sales. In EUREKA FORBES LIMITED, the process of personal selling is as under. PERSONAL SELLING PROCESS PROSPECT PRE-APPROACH MEETING OBJECTION CLOSING THE SALES FOLLOW-UP

67

[1] PROSPECTING:The first step is to develop a list of existing prospectus and potential customer having need of the product purchasing power, intension to pay and authority to purchase. Prospectus can be qualified by examining their financial ability volume of business special requirement, location and little hood of continues business. [2] PRE-APPROACH Once prospectuses are located and qualified salesman should find out his needs and problems and to be solved them. He should find out their habits. Nature behaviour etc. On the basis of adequate information of the customers salesman can prepare his plan of sales presentation or interview on the basis of this pre-approach. [3] APPROACH SALES PRESENTATION The third step is the stage where the salesman comes face to face with the prospect customers. This point consists of the two major parts obtaining as interview and the first contract. The salesman may use various means of obtaining interview generally in EUREKA FORBES LIMITED. The salesman directing goes to the house of prospective customers, introduce himself with the interview what is more important here first contact. Salesman must be able to attract prospects attention and get him interested in the product.

[4] SALES PRESENTATION

68

Once the salesman has sought and found potential customer and they has matched their wants with his product he is ready to formally present product of company to the customer. EUREKA FORBES LIMITED, the salesman present the sales in such a way, which is closely related to buying, process of customers. It is presented in the language that prospect can understand easily. They adopt sales interview generally through AIDAS theory, securing attention is the first step after that to create interest is the second step. Many devices are used to arouse and increase interest in the product salesman of EUREKA FORBES LIMITED is doing this through frying and interaction sales talk as well as through actual free demonstration of the product and its operation wherever feasible. [5] MEETING OBJECTIONS:Objectives and reactions represent feedback to salesman communication. They reflect growing interest of the customer in the product. The salesman of EUREKA FORBES LIMITED welcomes these objections and reactions because unless the objection is satisfactory solved, the sales cannot take place. Prospects that refuse objections are easier to satisfy than a prospect that shows not any interest in the product.

[6] CLOSING THE SALES

69

The close is the act of actually getting the prospects assent to buy the product. It is very good efforts so far made by the salesman and is therefore the climax of the entire sales process. Here salesman watches for every sign which may indicate that the prospect is willing to buy and apply to close. He also remembers that initiative must be come from him. According to EUREKA FORBES LIMITED, a sale is never complete until the product is finally in the hands of a satisfied user. Salesman alone can assure such competition of sales. [7] FOLLOW-UP The purchase decision does not complete the salesmans task. In EUREKA FORBES LIMITED, he writes the order, arranges for dispatch and delivery of product, assures buyer on the wisdom of his decision and minimize his dissatisfaction if any. The salesman contacts the customer frequently to maintain his goodwill and smooth relation over and above to solve post sales problems the follow up is a good source of feedback to the salesman.

Achievement:-

70

Eureka Forbes is now a Case Study in Harvard Business School Eureka Forbes Limited, the pioneer of Direct Sales in India, entered the hallowed portals of Harvard Business School by joining the band of select companies which have become a case study in its MBA classrooms. Today, 900 students at this globally recognized center of business education, began studying a case based on Eureka Forbes, titled Managing the sales Effort written by Professor Das Narayandas of this school, assisted by senior researcher Kerry Hermann form the Global Research Group. Mr. Suresh Goklaney, Managing Director of Eureka Forbes, himself an alumnus, was in Boston on invitation form the Harvard Business School and said The 5500 salespersons working for Eureka Forbes whom we fondly call Euro champs will be delighted that the unique and young company which they have created over the last 24 years has been found worthy by Harvard Business School to write a case study on. Eureka Forbes, about to go into its Silver Jubilee year, has notched up an impressive turnover of Rs. 6.1 Billion (Rs. 610 crores) selling premium life style products like water purifiers and vacuum cleaners which bring better health to the families of their customers. In the growing sunrise markets of water purification and vacuum cleaning, Eureka Forbes enjoys market shares upwards of 70% through its brands Aquaguard and Euroclean respectively. In the year 2004, Aquaguard was choosen as a Superbrand by a panel of eminent persons in the Indian industry.

71

PUBLICITY AND PUBLIC RELATION


72

Sr. No.
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10]

Particulars
PUBLICITY Introduction Importance of Publicity Benefits of Publicity Limitation of Publicity PUBLIC RELATIONS Introduction Objectives of Public Relation Parties of Public Relation Major tools of public relation in marketing

PUBLICITY
INTRODUCTION:73

Publicity is also called marketing public relation, publicity is not form by the organization, and publicity comes form news reporters, columnist and journalist people. It comes to the receiver as the truth rather than as a commercial public relation and publicity taken together become the forth major ingredient of promotion mix. These activities are however not controllable by the firm, every firm tries to create a good relation as to give good publicity under the social; marketing concept publicity and public relation are assuming unique importance in the firms as a part of promotion mix. Defective products, unfair trade practice, anti-social activities etc, will create bad brand image, increased consumer protect, strict government regulations and soon the firm having a poor public image will have lower sales and lower profit.

IMPORTANCE OF PUBLICITY:Now a day in each and every company, publicity is required, without publicity cannot increase its production and cannot achieve its sales target and profit. So each and every company tries to five more and more publicity. Advertising is the main source of publicity for EUREKA FORBES LIMITED. By the way of advertising company want to attract consumers and tries to increase sales volume of which the company is able to increase its profit. So publicity is helpful for making good public relation. The company creates good public relations so as to give publicity.

BENEFITS OF PUBLICITY:-

74

Publicity is essentially aimed at building positive image, goodwill or favorable visibility has acquired a sound footing to assist a company in its marketing efforts. Publicity is helpful in creating food public relations. It is major ingredient of promotion mix. It is nor personal stimulation of demand for a product, service, or business unit. It helps in creating sales and profit to the organization. In EUREKA FORBES LIMITED, through publicity company has been able to achieve sales target and also it is helpful in creating good public relations.

LIMITATION OF PUBLICITY:The firm having poor publicity image will have lower sales and lower profit. Unfair trade practices often result in favorable publicity of a firm. Defective product and product image also creates negative publicity.

PUBLIC RELATIONS
75

INTRODUCTION
Public relation is another important promotion tool which until recently was treated as a marketing step child but not become an important marketing function. The total process of building goodwill towards business enterprise and securing a right public image of the company is called public relation. It is creating a favorable atmosphere force complement advertising by certain communication is not possible without establishing and maintains mutual understanding between the company and its customers. Public relation activities typically are designed to build or maintain a favourable relationship with its various publics, customers, stock holders, employees, labor unions, the local community and the government. EUREKA FORBES LIMITED is also giving importance to public relation because their processes are nothing but it pays too much. In EUREKA FORBES LIMITED, there is one separate department for public relation and its staff is so busy in relation with various public stock holders, employees, legislators, etc.

OBJECTIVES OF PUBLIC RELATION:After each and every activity there should be some objective. EUREKA FORBES LIMITED has also some objectives for adopting public as major marketing tools.

They are as follows.


To assist in the launch of new product

76

To assist in requisitioning nature product To build up interest in product category To influence specific target group To build the corporate image in a way that project favourable on its products. PARTIES TO PUBLIC RELATIONS:There are various public groups, which are related to public relations. They are employees, customers, share holders, community etc. EUREKA FORBES LIMITED maintains the good relation with all these parties in following way.

EMPLOYEES:It is the most important factor for smooth function of business without employees. EUREKA FORBES LIMITED is aware of significance of employees because in the absence of employees the production process and other activities of business come to stand and end. EUREKA FORBES LIMITED is maintaining good and harmonious relations with employees so that they can give their best to the organizations. EUREKA FORBES LIMITED provides fix rate or wages, timely wages, extra benefit like facility of loans contribution towards PF, Bonus, and Commission etc.

CUSTOMERS:-

77

It is necessary to maintain contact with both the actual and prospective customers EUREKA FORBES LIMITED aims to create more and more customers by fulfilling their needs and wants. EUREKA FORBES LIMITED provides the after sales service form time to time. It also service the customer ego through giving best items.

GOVERNMENT:EUREKA FORBES LIMITED is maintaining good relation with government by paying regular taxes and following rules and regulations framed by the government.

LOCAL COMMUNITY:EUREKA FORBES LIMITED recognized its responsibility to community in which it is doing its business. As their motto ALWAYS THE BEST their remains nothing more to say about companys relations with maintain the public interest which creates good public relation. EUREKA FORBES LIMITED provides good service to its customers on regular basis.

SUPPLIERS, CREDITORS ETC:EUREKA FORBES LIMITED of course keeps cardinal relations with its supplier to ensure regular delivery of goods at reasonable price, preference in case of material shortage, intimation about forth coming shortages, information about the new developed substitute, prolonged payment in case of temporary liquidity crises. They people also maintain food relations with creditors to ensure favourable term of credit.

OTHER PARTY:-

78

Other party will include press, radio and TV Company EUREKA FORBES LIMITED maintains constant and cardinal relations with them. EUREKA FORBES LIMITED gives regularly advertisement in TV, Radio and Press.

79

MAJOR TOOLS OF PUBLIC RELATION IN MARKETING:There are various tools in marketing for public relations. Some of them are as under. Publications Events News Speeches Public Service Activities Identity Media Explanation regarding some of above is given as under. [1]

In EUREKA FORBES LIMITED, companys professional also is to find and create favourable points about company and prepare news in that point. News generation requires skill in developing a story concept and researching at extensively. [2] Events:EUREKA FORBES LIMITED arranges special events to draw attention to its new products or to other activity of company. Event includes new conference, seminars, exhibitions, competitions etc. [3] Written Material:EUREKA FORBES LIMITED relies extensively on written material to reach and influence their large market. These include reports, broachers and literature.

NEWS:-

80

CONCLUSION
On the balls of the comprehensive research of the EUREKA FORBES LIMITED, it can be concluded that the position of the EUREKA FORBES LIMITED in comparison to its competitors is very strong. The well experienced, efficient and industrial sales force of EUREKA FORBES LIMITED is the strength of it. They are the first to introduce vacuum cleaner in India with the direct selling as a greater tool of promotional mix. In a very short span of time, they have achieved great success. Today the Vacuum cleaner & Water Purifier have necessary requirement of the person who are very much conscious about health rather than luxury item its demand increasing day by day. With the increase in demand may new companies have also entered in this market so EUREKA FORBES LIMITED has to complete with all these competitors very much. EUREKA FORBES LIMITED has created good brand age also. However one of their weak points is less importance given to other tools of promotion mix compare to direct selling. Thus it can conclude that the company has bright and prosperous future ahead.

81

SUGGESTIONS
From the overall study of the promotional mix of the EUREKA FORBES LIMITED, it can be suggested that, [1] As it is good that they are giving too much importance to personal selling but they have to give importance to advertising and other tool at promotion mix also. Because advertising and other promotion tools has their own importance. [2] In todays world consumer are becoming aware at market and market policy. They want extra quality of the product from the price, which they have paid. People also like to get discounts, gift and other special offer because it is their mentality hence the company should adopt certain measures in order to give very much importance to sales promotion activity because it gives Incentives to Buy where as advertising personal selling gives Reason to Buy. [3] The company should increase compensation provided to the salesman who will attract a bettereducated class and the existing salesman will work with a motivation. [4] Company should increase the training period from six months to one year in some specific cases and also company gives advertisement in newspaper regularly rather than within a year.

82

BIBLIOGRAPHY
For getting the information regarding various aspect of promotion mix in theoretical concept as well as practical aspect, I have taken the reference of certain books which are as follows. [1] Marketing Management

By:- Philip Kotler [2] Marketing Management

By:- S.A. Sherlekar. [3] Website - www.eurekaforbes.com

83