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 9,400 243 4 106

Concept of councillors and senators

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 Organization

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 a group customer sales specialist who functions as group leader.

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

Routine Activities of a EuroChamp

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5. 6.

Morning field meeting. Cold calling. Daily activity reports, depositing 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 coldcalls; 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 twothirds 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.