MMS-I

Div: B

Presented By :

Deepika Kapoor 71Neha Manocha 90Suraj Mirchandani 95Devashish Nabhi 100Prayag Panchal 108

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Marketing Definition

Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Kotler.

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Marketing is also defined as “The right product, in the right place, at the right time, at the right price.”

Hence marketing of every product is very important since it is the focal point of all business ventures as it describes how you plan to attract and retain customers which is the most crucial aspect of a business.

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About Eureka ForbesEureka Forbes, part of the Shapoorji

Pallonji Group's Forbes GokakEFL was started in 1982 as a joint

venture between the Forbes (India) group and Electrolux of Sweden.

Business under Mr. Suresh Goklaney’s leadership.

Being Asia’s largest direct sales organization it is a 12 billion INR, multi product and multi channel corporation.

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Company Profile

The products basically cover Vacuum Cleaners, Water Purifiers, Air Purifiers and Security Systems

Employees 7000Workplace locations 243 Business units 4 Concept of‘councillors’and senators’

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Business PracticeCustomer is the sole focus of the businessAchieve maximum customer satisfaction Strive to honor commitments to both internal and external

customersStress on integrity, transparency and consistency in all

dealingsSeek to maintain a warm, positive and friendly work

environmentEncourage teamwork, motivate and train employeesEmpower people at appropriate levels to achieve their

goalsRecognize and reward merit and performanceStrive to make the organisation a responsible corporate

citizen.04/09/23 7

Products of Eureka Forbes

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Some of the other products…..

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Sales Approach Involves three steps:

Cold calls are madeProduct demonstrations conductedEuroCleans (Vaccum Cleaners)and Aquaguards (Water

Purifiers) are then sold by the EFL field sales force.

Why not retail?

Selling the concepts relied on extensive presentation, demonstration, and customer objection handling. It can only be done through considerable human interaction and there is just one place that customers have this time on hand: at home

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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

EFL Sales Organization

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The Euro champThe Euro Champ, who is the customer sales specialist

takes the product to the customers’ homes, demonstrates it, and closes the sale.

Four Euro Champs make up a group led by a group leader

Attitudes and skills required by the Eurochamp : Minimum 2 years university education, graduates are

preferredHigh achievement drive Reasonable spoken communication and interpersonal

skillsPerseverance04/09/23 12

FactsOne of the first direct selling companies

in IndiaBasically targeted the segment of

housewivesSuffered huge losses during 1992-1993‘A relationship does not end with sale,

it actually begins’Changed its advertising strategy in

November 1999

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The new campaign aimed that vacuum cleaners were easy to use and even maid servants could be trusted with the product

‘Eureka Forbes institute of Environment’It also conducted lectures and cleanliness

drives in various parts of the countryIt built a customer base of 2.5 million by

1999 and a turnover of Rs. 3.08 billion for 1999-2000.

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Questions

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Question 1: With changing market conditions, is the

direct selling strategy still the right strategy for a consumer electronics manufacturer like Eureka Forbes?

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Direct sellingA method of distribution of consumer goods and services through personal contact(seller to buyer) away from fixed business locations, primarily in a home.

It is also defined as a form of selling without retail outlets, distributors, wholesalers or any type of middlemen.

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Strategic perspectiveDirect selling as distribution channel

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Advantages of Direct sellingIt is easy,convinent and private.Consumers can avail best prices as there is

no middle man involved.Helpful for the companies to build a close

and direct relation with the consumers.It saves the valuable time of working and

busy people.

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Question 2: Analyze the shift in the company’s advertising

strategy from focusing on the ‘friendly salesman’ to the ‘maidservant’ in 1999?

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Change in Marketing StrategySince the company was not satisfied with the

growth of the vacuum cleaner market. The product usage was limited because

many housewives found the product bulky and cumbersome to use in comparison to the broom and cloth duster that were traditionally used and also the domestic help was easily available.

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Also the company observed that majority of indian consumers allowed their servants to operate their washing machines but not the vacuum cleaner. Hence they started the campaign which aimed at establishing the fact that even maidservants could be trusted with the product.

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Question 3:How can Eureka Forbes benefit from

associating with various environmental protection activities?

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Since Eureka Forbes has adopted Environmental Policy it can get consumer attention because every consumer are far more aware of the pollution impact and environmental protection, and even consider these two factors in their daily purchasing activities.

It can build brand equity.Increase financial value of the brand.

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Explore business opportunity to international buyers.

More effective use of scarce resources.Save cost through effective energy

consumption.Increase loyalty of employees.Win support from stakeholders.

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