SITUATION ANALYSIS

• Alarm bells were ringing for EFL as the sale of their vacuum cleaner
EuroClean had softened over the past year and a half, sales closure
rates had decreased substantially while attrition at the EuroChamps
level had shot up.
• In 2004, the revenues of EFL had crossed the INR 5 billion mark. The
company had 116 sales offices in 92 cities and over 5000 sales
representatives pushing the two main company products –
EuroClean Vacuum Cleaner and AquaGuard Water Purifiers.
• EFL’s primary target market comprised of households with monthly
incomes in excess of price of its products. Only 18 million
households in India met this criteria in 2004.
• The current penetration of the company was about 25% of the
market hence there was tremendous potential for the company to
grow.
 EFL SALES APPROACH
• In 2004 the sales team of EFL made 24 million sales calls,
conducted more than 2.4 million demonstrations and sold more
than 500000 units of EuroClean and Aquaguards.
• The company invested heavily in advertising locally as well at
regional and national levels and was able to reach out to at least
80 million existing or potential customers annually.
• The business strategy of the company deals with using the direct
sales approach without the involvement of the middlemen.
• EuroChamps were basically customer sales specialists who have
the responsibilities of front line sales representative.
• Almost all the company employees had started their careers at EFL
as EuroChamps.
CHALLENGES BEING FACED CURRENTLY
• Despite huge investments in advertising, the company was
not able to penetrate the market aggressively.
ISSUES POSSIBLE REASONS
•EuroChamps missing easy sale and •Improper training from higher ups
targets given. and team leads.
•Demo Equipment damaged and •This can be due to stringent
unclean. targets/ lack of time to senior
•Responding to customer objections representatives.
is neglected in training. •Senior reps have no incentive to
train new team member.
•Territory conflicts between seniors •Saturation in territories
and juniors.
•High attrition rate •Due to inadequate support from
senior members.
•Saturated territories to meet high
targets.
 RE-ENGINEERED REWARD SYSTEM
• New PLAN: Bettering the Best
• The New Compensation system was designed to give the
award points to the sales person, for the successful
completion of various stages of selling processes.

What Went Well What Didn’t Go Well

•Reduction of sales pressure, lower
•Time spent in daily filing of
attrition rate, improves sales
reports.
process in terms of customer
•Possibility of overstating of
experience.
efforts.
•Improved customer acquisition and
•Not possible to measure
retention.
qualitative aspect of selling.
•Improvement in sales productivity
•Possible high compensation
per person. Daily recognition will
with low sale for process points
lead to greater motivation.
 ORGANIZATIONAL CHANGE-
BENEFITS
• Organizations can change the way they are structured in order to
be more responsive to their external environment. Also entities
can attempt to change their culture, including management and
leadership styles, values and beliefs. 
• In case of EFL, Territory wise targets were set. This helped in
correct assignment of EuroChamps and efficient use of resources
within the organization.
• Senior representatives were offered healthy incentives to train and
teach junior reps. This boosted the morale of the organisation.
• A bottom up feedback system would be beneficial for an
organisation like EFL to ensure the quality of training being given
to EuroChamps.