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Eureka Forbes

Ltd.
-A Sales Territory
case study

ByNeil DSouza
(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


Goklaneys leadership .

EFL installed a market barometer


system in 2003 .

Company Profile

The products basically cover Vacuum


Cleaners, Water Purifiers, and Air
Purifiers.

Employees
Workplace locations
Business units
Unique roles

Concept of councillors and senators

9,400
243
4
106

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 Organizatio


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

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

1.
2.
3.
4.
5.
6.

Routine
Activities of a
EuroChamp
Morning field meeting.
Cold calling.
Daily activity reports, deposit ing payments,
and request delivery for closed sales.
Role-playing and mock demonstrations for
new recruits .
Keeping up to date with product information
in terms of innovation and upgrades.
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 EFLs
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,
1.
At the morning meeting before heading
out on cold-calls;
2.
At the midday meeting to report on door
knocking results and morning demos;
3.
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 EuroChamps 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

EFLs Compensation Plan

Doesnt 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.