COMPANY ANALYSIS

Eureka Forbes is Ks billion multi- product multi- Channel Corporation which is a part of the Shapoorji-Pallonji (group which was set up in 1982, to market health and hygiene products to Indian consumers. It has evolved as a leader in domestic and industrial water purification system, vacuum cleaners, air purifiers and security solution.

Eureka Forbes were the first to introduce domestic Water Purification System (l984V the Aquaguard" model-as well as it revolutionized the Indian market by introducing products like Home Cleaning System 1982), and Air Purification System (1994). In order to introduce these previously unknown products to society in which nationwide commercial campaigns were impossibility, the company had to pioneer another innovation- directing sealing. The crops of suit- clad Eureka Forbes salesman were the first such in the country and were tremendous success. They are now- Asia's largest direct selling organization with a 5000 strong direct sales force touching 1.25 million Indian homes and adding 1,500 customers daily. Such was the success of Eureka Forbes that "Aqua guard" has now become a synonym for water purifier in India, like "Xerox" for [photocopying]

The promise was clear: To create a company that wouldn't be about bricks, mortar or sales graphs, but driven by something for more potent. Something that would stand the wound stands the test of time: relationships"

DIRECT MARKETING
Eureka Forbes followed the globally tried and tested direct selling route for marketing its products in India, thus becoming one of the first direct selling route companies in India. Vacuum cleaners and water purifiers were rather new concepts for Indian consumers, who had till then followed only the traditional methods of cleaning and filtering. Therefore, Eureka Forbes had to first establish the concept of vacuum cleaners and water purifiers in India before it could sell Eureka as a brand. The company believed that its core strength was its people. It employed dynamic, highly motivated individuals, called Euro champs who projected the image of The friendly man from Eureka Forbes. Thus, for the average Indian Customer, Eureka Forbes became synonymous with the smartly dressed salesman who come to their houses and cleaned up things in a jiffy or showed how air/water was indispensible.

Euro Champs initially targeted the metros but soon began visiting smaller cities and towns also commenting on the decision to diversity into bottled water company sources said that it was only to strong then the core products by capitalizing on their brand image. Goklancy said In the water category, I will conduct activities which will strengthen my core products. How I do that and what I do is a matter of strategy. According to companys sources, Eureka Forbes not anly had the financial strength, but also a strong network of sales executives to push its new products into the market. The companys decision to enter the retail business was primirly the result of its launch of Tornada vacuum cleaners and Aquaflo water purifier in 1995. Eureka Forbes had utilized the retail route for this range, mainly to cater to the industrial segment.

Over the years, the retail business assumed greater significance and by 1999, around 5% of the companys sales came form the 2500- strong network in 1999. Eureka Forbes Ltd, the leading vacuum cleaner and water/air purifier equipment company, announced a major policy change that came as a surprize to the Indian corporate world. The company, regarded as a pioneer of direct marketing in India, was planning to focus more on the retailing business in the future. Commenting on this decision, goklaney,, Marketing Director, Eureka Forbes, said, Direct sales permit us to exploit only the top end of the market. This move was in accordance with the companys plans to increase the validity of its products. The company planned to make its products available in retail outlets through its dealers network, spread across 2600 dealers.

EUREKA FORBES- FRIEND FOR LIFE Customers have always been the center of business for Eureka Forbes; they strive to be in close touch with having also taken initiative to educate their customers to change their perceptions and practices. According to the Eureka Forbes Limited officials, A sale is only the beginning of the relationship, however, company makes special efforts to let the bonds of friendship endure through their service. Everyone at Eureka Forbes Limited strive hard to make a customer their Friends for Life. Eureka Forbes has rechristened their offices to Customer Response Center, making them the hub of all customer centric efforts. A significant part of their revenues come from relationship marketing including service contracts, spares and accessories sale, products up-gradation and new references. As more channels to reach out to customers were introduces, organization was restructured to harmonize these multiple

avenues of interaction and present a single face to the customer is everyones customer under the process of Convergence.

A 5 billion multi-product, multi channel corporation. Operating in over 92 cities, with over 6000 employees. Pioneers and leaders in water purification systems, vacuum cleaners and air purifiers. Pioneers in direct selling- Asias largest selling organization- 5000 strong direct force touches 1.25 million Indian homes, adding 1500 customers daily. Customer family now numbers over 5 million- enduring relationships as Friends for Life. Expanded channels that reach out to customers to include a 3800 strong dealer sales network. A 58 distributor strong institutional sales network.

STUDY OF VERTICES AT EUREKA FORBES

VISION OF EUREKA FORBES

 MISSION OF EUREKA FORBES

 THE VALUES OF EUREKA FORBES

 CERTIFICATE OF EUREKA FORBES

 EUROSMILE- WE GO MILES FOR YOUR SMILES

Service at your doorstep. Indias largest after-sales service network-over 650 service centers. 3000 trained technicians make 10000 calls a day. Single number access- 24 hours in 8 major cities-39883333 Only genuine spare parts. Free routine check-ups and free service camps. Annual maintenance contracts- the largest in the country. Mobile service vans.

A specialized service by Eureka Forbes to provide all the information about Eureka Forbes products and services at one single number- available 24 hrs*365 days. The Euro Help Line provides the following: Gives complete information about products and services. Locations of Customer Response Center or Sales offices, timings, contact persons, etc. Solutions to simple problems on the spot A single point solution to customer queries or calls Information on status of complaints and requirements

CERTIFICATION OF EUREKA FORBES Factories ISO 14000 and 9000 certified. Tested and certified over 100 laboratories in India, US, UK and South Africa. Certifications include those from the highly reputed Bureau of Indian Standards (BIS), University of Minnesota; University of Pretoria, South Africa; Water Quality Certificate- USA; Water Quality Certificate- Thames Water Center, USA; University of Sunderland- England. Indian Standards Institute (ISI) Certification Indian Medical Association (IMA) Endorsement Incorporates prestigious International Water Quality Association (WQA) Certified carbon block that removes pesticides. CE Certification for unmatched safety of products

 MANAGEMENT STRUCTURE CHAIRMAN Pallonji Mistry

MANAGING DIRECTOR Suresh Gokhlani

CHIEF EXECUTIVE OFFICER ASLAM KARMANI

NATIONAL SALES MANAGER

NATIONAL SALES MANAGER

Ajay Sharma

Ravi Kumar

 THE DREAM OF EUREKA FORBES

MARKET SHARE It is estimated that approximately two-thirds of the existing water purification market belongs to UV water purifiers and one-third is shared between reverse osmosis purification systems and chemical purifiers. In the UV purifier segment, Eureka Forbes Aquaguard is the clear market leader with approximately 68% market share. Other brands include Philips Intelligent Water Purifier with 7% and HULs Pureit with 255 market share. The UV purifier market is estimated to be growing at a lower rate than the chemical based segment. Reverse osmosis purifiers, which are rather expensive and not the preferred option in many areas, have a smaller share of market when compared with UV purifiers and chemical based systems. In the reverse osmosis segment, Eureka Forbes is again the major player with 60% share. A major portion of the remaining 40% belongs to Kent reverse osmosis systems.

MARKET TRENDS The water purifier market is seeing a three-way fight between the two global giants, Hindustan Unilever and Philips, and the local market leader. Eureka Forbes which has unleashed a new national campaign for its economy water purifier brand. Both HUL and Eureka are gearing up to woo the large section of the lowerincome group which could not afford ultra-violet water purifiers with a starting price of about Rs 5,000 and do not have steady supply of electricity and tap water HUL, which began selling its Pure it brand of water purifier nationally earlier this year, is now being challenged by Eureka Forbes with its Aqua sure brand launched nationally this month. Aqua sure uses a resin based technology in which the water is treated by a chemical like bromine and then the chemical is removed from the water after it purifies it. This product also does not need electricity. Eureka is straddling the retail and also direct selling model to increase its market share and keep HUL at bay. While HUL is selling its water purifier at Rs 1,800, Eureka has priced one of its models at Rs 1,600. Industry experts say that in India three types of water purifiers are being marketed now ultra-violet based, reverse osmosis and resin based. The country's largest water purifier maker Eureka Forbes' Aqua guard is the market leader with 68 per cent in UV-based market. In reverse osmosis (RO) as well the company enjoys 60 per cent share and Delhi-based Kent RO systems has 40 per cent share. RO based water purifiers are the most expensive section of the water purifier market and arc priced at Rs 13,000 and above.

Philips, on the other hand, which uses L'V-based technology to purify water, has dropped its price to Rs 6,995 from the initial launch price of Rs 8,500. Industry sources say its struggle to establish itself in the market with lesser priced water purifiers by competitors has been difficult. Out of the 220 million households in India, only about 8 million use water purifiers. Eureka Forbes has a reach of 6 million households. HUL, in its first three years of operations, has already sold 1 million units. DIFFERENTIATE FROM OTHERS IN THE INDUSTRY_ Eureka Forbes Ltd is one of the largest companies in water purifier industry. The company is working is Iwo way first is direct marketing and second is channel marketing. Eureka Forbes Ltd. is first company in India who is dominant in direct marketing .in the sense on direct marketing is to sell the product direct to the end customer. In this marketing there are no intermediaries. This type of marketing contributes 75% sales turnover. On the other hand Eureka Forbes Ltd. is also dominant channel marketing. This is followed by company to distributors, distributors lo dealer, dealers lo end customer. This type of marketing contributes 25% sales turnover. In this company's water purifier have unique 5 stage purification process in this purification process there are 5 filters. Stage 1 there is a particulate filter which is removes dirt & floating particles. Stage 2 there is sediment filter which is removes suspended impurities. Stage 3 there is a Bio stat carbon block which is removes bad odor and taste and also removes chlorine and organic chemicals. Stage 4 there is active disinfectant to seeks & destroys Disease-causing bacteria and virus Stage 5 there is special activated carbon for retains the natural taste of water.

KENT is dominant in industry by channel sales. But this company use advertising. The brand ambassador of Kent is bollywood actress Hema Malini. Kent Purification by RO followed by UV with TDS Controller to maintain natural minerals in water .Computer Controlled Operation with Filter Change Alarm & UV Fail Alarm .After a preset time. Filter Change Alarm is audible which indicates the time to replace the filters. If the filters are not changed within next 60 hours of use, the purifier will stop functioning. In case the UV stops functioning, UV Fail Alarm is audible. The purifiers will not function until the UV lamp is replaced .Stylish eye catching modem design."Purified water level indicator" on storage tank .Enhanced purification through an additional Micronics Filter .Spin Welded RO Membrane Housing to prevent tampering .Secondary purification by UV after RO ensures enhanced water quality throughout service cycles .Monitoring filter replacement in time helps maintaining the optimum filter & water quality.8 liters of purified water storage capacity that makes water available on demand, even in the absence of electricity / water supply. Fully automatic operation with auto-start and auto-off & Built-in SMPS to operate within 160-300 AC voltage. Philips have good name in electronics world. So the water purifier of Philips sells with their brand name. Philips water purifier have advanced state-of-theart UV (PLS) technology destroys known waterborne viruses, bacteria, parasites and amoebae while the activated carbon and sediment filler removes turbidity, chlorine, volatile organic chemicals (VOC's), cysts, larger microorganisms and improves taste. The maximum flow rate of 1.2 liter per minute ensures that you have safe drinking water available at any time. HUL is the very big FMCG Company. In water purifier industry this company has one product that is pure ft. In pure it has a (i.m.e.i kill battery). This technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities. Pureit is available in two attractive colors that are Royal Blue and Burgundy.

PORTER'S GENERIC COMPETITIVE STRATEGIES To analyze a firms success in an industry in which it is operating its position in the industry and its attractiveness should be evaluated, a firm can perform profitably, even though the industry is not lucrative, if it can employ its resources optimally. If the company determinant of a firm's profitability is the attractiveness of the industry on which it operates, an important secondary determinant is its position with in that industry. Even though an industry may have below-average profitability, a firm that is optimally positioned can generate superior returns. Michael E. Porter suggested that all strategies are the derived strategies from generic strategies. They are given below:

1. Cost leadership strategy: - a firm gains cost leadership in an industry when it's cost of production is lower than that of its competitors. It can gain cost leadership by managing its processes and resources efficiently this strategies involves attempting to minimize cost in every aspect of the business. 2. Differentiation strategy: - firm that adopt the differentiation strategy successfully have access to advance scientific research ,a highly skilled labor force, effective communication strategies, etc. a firm may differentiate its products and service in various way . It may differentiate itself from others in terms of design or brand name. 3. Focus strategy: - a firm is pursuing a focus strategy trend to serve a specific segment instead of catering to the entire market. This segment may be a special group of customers, a specific geographic area or particular product or service line. A firm following a focus strategy and also a differentiated strategy will have advantage of pricing their products higher. In water purifier industry, the product is divided into two segments. First is reverse osmosis (RO) segment and second is ultra-violet (UV) segment.

In Reverse Osmosis (RO) segment the Eureka Forbes Ltd follow cost leadership strategy because this company has three types of RO Systems. These are used for low TDS (Total Dissolved Solids) water and high TDS water. All the three products of this company are different for their storage capacity, purification stages and models. And this company is working for about 25 years so it has a brand name and lot of goodwill in the market. On the other hand, Kent also comes in water purification industry with their product. Kent follows focus strategy and differentiation strategy because Kent is working only for one product, i.e. Kent RO. Kents brand ambassador is Bollywood Actress Hema Malini. Philips also comes in this industry with their brand name and it follows differentiation strategy. In Ultra Violet (UV) Segment, the Eureka Forbes Ltd follow cost leadership differentiation and focus strategy because this company has five types of UV filters those are differ for their features like storage capacity, electric and non electric, water inflow and outflow, etc. The company has a good brand image. In this segment, the company targets all levels of customers. On the other hand, HUL follows the differentiation and focus strategies because the company has a good brand name and HUL has only one product, i.e. Pureit. HUL, which began selling its PUREIT brand of water purifier nationally earlier this year, is now being challenged by Eureka Forbes with its AQUASURE brand launched nationally this month.

4PS ANALYSIS The major marketing management decision can be classified on one of following tour categories 1. Product 2. Price 3. Place 4. Promotion These variables are known as the marketing mix or 4 P's of marketing. They arc the variables that marketing managers can control in order to best satisfy customers in the target market. Product: - The product is the physical product or service offered to the customer. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc. Price: - Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing. Place: - Place decisions arc those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Promotion: - Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. It is useful to know the value off a customer in order to determine whether addition customers are worth the cost of acquiring them.