Eureka Forbes Ltd.: Managing The Selling Effort(a) (hbr Case Study)

Eureka Forbes ltd.: Managing the selling effort(A) (HBR Case Study)

Presented By Group – 4 Nikita Ranjan Sujata Sharma Abhishek Verma Nitin Kumar Raj Paul

Siddhartha Bhattacharjee

About Eureka Forbes Ltd.  Eureka Forbes Ltd is a consumer goods company based in

Mumbai, India.  Eureka Forbes Ltd. (EFL), a joint venture between Forbes

Group and Electrolux formed in 1982, is the leading company in India in consumer durable products like vacuum cleaner and water purifier.  EFL has effectively utilized the direct selling approach by

setting up the largest field sales force in Asia comprising of 5,000+ sales representatives called “Eurochamps”  The company’s first product the Euroclean vacuum

cleaner, was followed in 1984 by its aquaguard water purifier .

 EFL is split into three geographical regions, each led by a Chief Operating

Officer.  Common Central functions of finance, HR, Marketing, Supply Chain,

Information Technology and Business Development support all three divisions.  The EuroChamp, who is the customer sales specialist The EuroChamp, who is

the customer sales specialist takes the product to the customers’ homes, 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

Organisation Chart

Attitudes and skills required Minimum 2 years university education, graduates are preferred  High achievement drive  Reasonable spoken communication and interpersonal skills  Determination  Financial requirements

Objectives: • The new framework "Bettering the best" was presented

• Remuneration is subject to fruitful finishing of different phases of selling • Improving profitability • Expanding day by day demos • Upgrading Client commitment time

• Giving a symptomatic instrument to HCRC

 The Euro Champs were result oriented i.e. sales was the prime

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and sole objective. The selection of the eurochamps was not based on academic criteria. It is mainly based on the subjective judgements of the people. The commissions were directly related to the sales. If there is no sale happening then, eurochamps prefer to exit the company swiftly. Less attention given to build customer relationships. The job is a very high pressure job. Too much emphasis on target sales have led to psychological pressure on the sales reps

 Increase the financial rewards linked to various sales processes  Find means to measure the qualitative aspect of customer interaction.

This can be achieved by periodic customer surveys  To reduce time spent on recording, promote self reporting by

salespersons with penalties for incidents of incorrect reporting.  Use the new scheme in the recruitment advertisement to attract potential

candidates.