Eureka Forbes: Managing the Selling effort

PRADEEP KUMAR & SANJEEV KUMAR SINGH

EFL : Profile
EFL was Started in 1982 as joint venture between the

Forbes(India) group & Electrolux of Sweden Business under Mr Suresh Goklanis leadership EFL installed a market barometer system in 2003

 Type Inc.

Industry Home Appliances

Founded 1982 Headquarters Mumbai, Maharashtra,

India Key people Suresh Goklaney (Vice-Chairman & MD) Products Water Purifiers, Vacuum Cleaners, Air Purifiers, Security Systems Employees 10000 Parent Forbes & Company Ltd.

 Under Goklaneys leadership EFL had grown steadily

Air purifier in product line 1993

1999- Mr. A.V.Suresh ,COO and senior V.P.

rechristened EFLs 116 sales offices Customer Response Centres (CRCs),solicited customer feedback and opened more service centres. In the yr 2000 EFL announced a common nation wide customer service phone number supported by a network of five call centres accessible 24 hrs.- resp time 48 hrs.

 Comprehensive database to increase the number of

targeted calls relative to cold calls the company also began to build a comprehensive customer database. 116 sales offices in 92 cities largest field sales force in Asia Revenue- 64% Aqua guard water purifier & 22% Euroclean vacuum cleaners

Sales approach
Cold calls are made

Product demonstration are made

Euro cleans (vacuum cleaner) and Aqua guards

(water purifiers) are then sold by EFL sales force

Sales organization
EFL is split into three(3) geographical regions,each

lead by a COO Common central functions of finance,FR,operations,SCM,IT and BD support all the 3 divisions The Eurochamp , who is customer sales specilaist takes the product to customers home,demonstarte and close the sale 4 Eurochamps make a group lead by a group customer sales specialist who functions as a group leader

Contd
Group leaders also have sales quota

Teamleaders oversee two groups, 1 in which they

function as group leader Each head of CRC(HCRC) oversee three team leaders Eurochamp is solely focussed on sale. The next three level above him need to sell and manage. HCRCs are managed by DDSMs or DSMs The DDSMs and DSMs are managed by the sr DSMs or ASMs who report ,in turn to a regional head.

The Eurochamp Skills & Attitude

Minimum 2 yrs university education are preferred

High achievement drive

Reasonable spoken communication & inerpersonal

skills Preservrance Financial requirements

Time estimate for Eurochamp daily task

Tasks Morning field meeting Travel to assigned territory Door knocks Average time spent 30 30 120 (max 1800

Mid day meeting

Filling in daily activity report Depositing payments Getting units issued for delivery Reconciling inventory & potential orders Cleaning demo unit Role play & product training

60
15 (max 30) 15 15 15 20 (included in midday meeting)

Afternoon customer visit

Demo & selling

120
180

Supervision
Reporting & feedback- 3 times in a day

At the morning meeting before heading out on cold

calls At the mid day meeting to report on door knocking results and morning demos At the end of the day, review to register afternoon follow ups, demos and sales numbers.

Quotas & Territories

Annual quotas are broken down into monthly

requirements of 60 product demonstrations and a minimum of 10 sales closing per month The Eurochamps are expected to 50 cutomers contacts daily

Evaluation & Compensation

Salary

Rent allowances
A special pay A demo allowance

A leave travel concession

A holiday bonus Medical reimburshments

Travel reimburshments

 Base salary is scaled against length of service, total

service and average sales over the last six 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 additional rs 30 and rs 40,respectively. Payments under plan, termed the freindshipchain cannot exceed rs 600 per month.

EFL Compensation scheme:Frontline

Income Eurochamp 3200(a) 800 200 75 100 500 250 250 Groupleader 4100(b) 1150 250 75 100 700 350 250

Fixed income
Basic HRA LTC Medical Field expenses Bike maintenance Bonus PF Special pay Special promotional expences Total 5375 6975

Contd..
Variable Income Holiday bonus Sales related expenses Petrol 1000 3000 200 200

Quarterly comisison
Comission (Monthly for BM) Group comission Contingency comission

700

Performance incentive
Productivity based incentive HCRC allowances Friendship chain 900 8875 600

Total
Total(A +B)

6000
12975

EFLs Compensation plan Point Based

Points are given on successful completion of various stages of selling process and compensation linked to the point scored
Criteria Active door knock Appointment for the day Gift-a Smile Service request Demos sales: standard Sales : High End products Reference Friend get a friend meeting Points 5 per door knock 10 per appointment 30 per call 10 per service request 100 per demo 300 per sale 600 per sale 50 per refernce 3000 for interviews 200 attend all the meetings Commercial appointment 50 per appointment 1 Daily Minimum Requirements 30 5 1 2 3 1 1 1 1

Selling Strategy : 2012

Sales Agent- based upon comission

Sales outsourcing- Direct Branded represetation

Telemarketing- Throgh Internet & TV

( to reduce the dependecy upon Eurochamps and to compete with other competitive products) Demo of products are easier Payment parts are made easier through online payments.