TRAINING REPORT

ON

SALES STRATEGIES OF AQUAGUARD

Submitted to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

In Partial Fulfilment of Requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)

(4th Semester) Submitted by,

NAME: Kailash Somnathe

Regn. NO. : 1073901744 Roll No.: 1090210491 GURU GRAM BUSINESS SCHOOL
ELC Code : 151012055 Plot No 74, Unnati Park, Besa, Nagpur, Maharashtra

AUGUST 2012

TITLES

PAGE NO.

TITLE PAGE INDEX CERTIFICATE DECLARATION ACKNOWLEDGEMENT CONTENTS

1 2 3 4 5 6

This is to certify that Mr. Kailash Somnathe, a student of the Maharshi Dayanand University , Rohtak , has prepared his Project Report Sales strategies of Aquaguard , at entitled Guru Gram Business School , under my

guidance . He has fulfilled all requirements leading to award of the degree of MBA ( Industry Integrated ) . This report is undertaken by the record of bonafide training to any other

him and no part of it has been submitted

University or Educational Institution for award of any other degree or simillar titles or prizes.

I wish him all success in life.

Mr. Ajay Patole Program Coordinator Guru Gram Business School

I hereby declare that Training Report Conducted at EUREKA FORBES LTD., NAGPUR Under the guidance of Mr. AJAY PATOLE Submitted in partial fulfilment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other simillar titles or prizes. Place: _________ Date: _________ Mr. KAILASH SOMNATHE Regn.No.1073901744 Roll no. :1090210491

This is to certify that MR. KAILASH SOMNATHE who is pursuing MBA (industry integrated) course of Maharshi Dayanand University , Rohtak , at Guru Gram Business school Nagpur has undergone management training at our organization from 1 Jan 2012

His performance during training period was found to be excellence

We wish him success for his future endeavors.

Anil Dhunde Incharge manager

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to NIAM trainings officer for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of GURU GRAM BUSINESS SCHOOL NAGPUR for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude to Mr. Ajay Patole and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

CHAPTER NO.

CONTENTS

SUB CONTENTS

PAG E NO

1.

INTRODUCTIO N

1.1

GENERAL OF SECTOR

INTRODUCTION

10

1.2

INDUST RY PROFIL E

ORIGINE

AND

16

DEVELOPEMENT GROWTH AND 15

PRESENT STATUS FUTURE INDUSTRY 2. PROFILE OF THE ORGANIZATIO N 2.3 2.4 2.5 Present status Functional department 24 26 35 ORGANIZATION STRUCTURE AND CHART 2.2 Growth developement 22 2.1 Origin of the organization 24 OF 18

36 2.6 PRODUCT PROFILE

44 2.7 MARKET PROFILE

3.

Discussions on Training

3.1 3.2

Student work profile Key learning

46 47

STUDY OF SELECTED RESEARCH PROBLEM

4.1

Statement of research problem

48

4.2

Statement of research objectives

49

4.3

Research design and methodology

50

ANALYSIS

5.1 5.2

Analysis of data Summary of finding Summary of learning experience

51 52 53

SUMMARY AND CONCLUSION

6.1

6.2

Conclusion and recommendation

53

APPENDICES

BIBLIOGRAPY

54

LIST OF GRAPHS AND CHARTS

Sr. No. 1 2 3 4 5 6

Graph No. 1 2 3 4 5 6 TOP PLAYER

Graph Title

Page No.

11 12 13 35 45 44

MARKET LEADER PORTERS ANALYSIS MODEL ORGANIZATION STRUCTURE DISTRIBUTION STRUCTURE MARKET SHARE

CHAPTER- 1 INTRODUCTION

10

GENERAL INTRODUCTION ABOUT FMCD SECTOR

The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as kitchen appliances (microwave ovens, grinders etc) are also included in this category. This industry includes all those goods which are durable i.e. products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. According to recent industry reports, the steadily growing market for consumer durables is estimated at Rs. 300 billion.

Segmentation of the Consumer Durables Industry: The consumer durables industry can be broadly classified into 2 segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment are as follows:

What does the Past Say?Heres the review..

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Titan, the market leader in watches and branded jewelry, has clocked the highest Net Sales CAGR of 34% over the last 6 years. It has the competitive advantage of a strong brand, which has helped it become the market leader. Using the right segmentation & smart branding strategies, Titan has successfully captured the watch and jewelry market. It has also managed to maintain a good Net Profit Margin of 6% TTK Prestige, the market leader in pressure cookers and kitchen solutions, has registered the highest CAGR of 74% in Net Profit over a 6-year period. Porters Analysis:

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What are the growth drivers for this sector? Heres the analysis 1) Rise in Disposable Income: The demand for consumer durables has been rising with the increase in disposable income coupled with more and more consumers falling under the double income families. Also, the growing Indian middle-class plays a major role in increasing the demand. This, along with a fall in the prices of durable goods mainly due to the

13

advancement of technology, easy import of components has led to an increase in the consumption expenditure on durable goods. 2) Easy-availability of consumer financing: Apart from steady growth in income of consumers, consumer financing has become a major driver in the consumer durables industry. In the case of more expensive consumer goods, such as refrigerators, washing machines, color televisions and personal computers, retailers are marketing their goods more aggressively by providing easy financing options to the consumers by partnering with banks. The easy-availability of consumer financing is beneficial mainly for the lower and middle income group, especially when the cost of capital and flexibility of the scheme is in their favor. 3) Existing Potential in Rural Markets: Growth is coming in a big way from the smaller towns and rural markets and is expected to be the next growth opportunity for the consumer durables market. In the last year ~3035% of the total sales of consumer durables was from the rural market. This is expected to grow by 40-45% in the near future. The rural durables market has been growing by ~30% annually, mainly due to the growing affordability of products as well as the general buoyancy in the economy. Products like mobile phones, televisions and music systems are the ones which have witnessed high growth among the rural market. To further cater to this market many manufacturers have started using local languages while offering products to the rural crowd.

4) Increasing share of Organised Retail: Since the last couple of years there has been an increasing shift towards organized retail (brands) from the unorganized (unbranded) products. With rising income and purchasing power, and the younger generation preferring branded products, the share of organized shopping is increasing. Shopping in malls is considered more of an experience these days. According to estimates, organized retail which constituted ~4% of the total buying till 2010, is expected to grow to over 10% by 2013. 5) Entertainment and Media to boost growth: According to a recent report by KPMG, the Indian Media & Entertainment (M&E) industry registered a growth of 11% over 2009 and touched Rs. 652 bn and is expected to achieve a 13% growth in 2011. Overall the industry is expected to register a CAGR of
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14% to touch Rs.1275 bn by 2015. Out of this, the television industry is expected to achieve a 16% CAGR and is expected to account for almost half of the Indian M&E industry revenues. The television segment of the consumer durables industry is seeing high growth coming from high-end flat panel TV, LCD TVs and Plasma TVs. All of these were expected to register a 100%+ growth in the last year. Hence, the growing importance of entertainment and media on our lifestyles is expected to boost the demand for products like Plasma TVs , LCDs, DVD Players.

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INDUSTRY PROFILE INDUSTRY OF WATER PURIFIER IN INDIAN MARKET

ONE man's meat is another's poison can well be said in the context of the bottled water controversy. Even as the ripples seem far from receding on whether the pesticide-residue in packaged drinking water is a reason for concern the water-purifier industry has lost no time in sniffing out an opportunity. "Water from Waterguard is completely safe from harmful pesticides, bacteria, viruses and is economical too!", says an advertisement from Usha Shriram, advertising for its Usha Brita Water Purification Systems. And in case you miss the point, the advertisement has in its background copies of media reports on `Pesticides in bottled water.' Meanwhile, Eureka Forbes, touted to be the leader in the water purification segment, reacted more swiftly to the pesticide-issue and came out with "reassuring" advertisements, within a couple of days after the Centre for Science and Environment (CSE) came out with its controversial report. The Ministry of Food Processing Industries held an inter-ministerial meeting on the issue, to "take stock and decide on the future course of action." The Union Health Ministry too had met discuss the subject and according to sources; the inclination was towards aligning with the European Union (EU) norms. However, the Bureau of Indian Standards reiterated its stand on the issue and said: "That it took into consideration the limits set by the USFDA, the EU, the World Health Organization (WHO), Codex etc. and decided that since bottled water was a value-added product and in keeping the public/consumer interest, the (BIS) committee unanimously decided to quantify the maximum limits for pesticide residue and made the necessary amendments to the two Indian standards".

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The different companies which manufacture water purifier are: Aqua Guard Kent grand, Hindustan uni lever pure it, Philips intelligent, Whirlpool Pure Fresh, Jaipan, Alpha Dewdrop, Eurotek System, GenPure R.O System, Bionics Aqua Tech Kenstar water purifier, Krona, Astro-boy-water purifier, Euro Fabs, Euro riva water purifier, Aqua fresh water purifier. The two major products of Eureka Forbes:1. Eureka Forbes Water Purifiers 2. Eureka Forbes Vacuum Cleaners Eureka Forbes Water Purifiers:Eureka Forbes have all over 20 water purifiers ranging from Rs.2,000 to Rs.25,000. Their range of products treats the water with varying levels of technology. The main difference is

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that the expensive systems like the Integra Hi-Life have larger water production capacity per hour, more water storage capacity, and use the Reverse Osmosis Technology (RO) to treat the water. Market Segmentation:Market segmentation can be conducted using a number of approaches including demographic, geographic, attitudinal, psychographic, and behavioural. Geographic Variables:Regional: Eureka Forbes has branches in almost all the metropolitan cities and it is available almost all over the country. Population density:- It is targeted to Urban, Suburban and rural area in India. Demographic Segmentation:Age: Eureka is targeted to different age groups like young and middle and old age group as water is a necessity for all age groups. Gender: Eureka Forbes is targeted to both male and female. Income: Targeted to middle and high income groups of people. Occupation: It is targeted to all groups of occupation. Religion: It is targeted to all kind of religious people.

Psychographic segmentation:Lifestyle different people have different lifestyle patterns and our behavior may change as we pass through different stages of life. Water Filter belongs to a better people with better lifestyle, hygiene and health conscious people. Behavioral segmentation:Benefits sought :Eureka Forbes water has created an better image to the consumers through its quality and better service

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Product usage: Eureka Forbes service is open to all type of customers. Targeting:Eureka Forbes in India has carved a niche as the leading company for water purifiers. RO is one of the most effective processes of purifying water with high TDS content. Eureka Forbes is setting up alternative and new retail channels to increase the penetration of water purification devices. Eureka Forbes have a range of non power using products under the Aqua sure brand which we are promoting through the new channels set up by the retail division. The purpose is to target 60 million households in urban and rural residential areas which have never used water purifiers. Positioning:Eureka Forbes has positioned itself as a cost effective, customer centric organization servicing the market need for purified water. It will leverage its competitive edge to achieve the desired positioning. Its competitive advantage is the ability to generate revenue streams for sellers of the product; this is virtue of network marketing system.

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CHAPTER 2 PROFILE OF ORGANIZATION

20

EUREKA FORBES LIMITED

In 1999, Eureka Forbes Ltd. (Eureka Forbes), the leading vacuum cleaner and water/air purifier equipment company, announced a major policy change that came as a surprise to the Indian corporate world. The company, regarded as the pioneer of direct marketing in India, was planning to focus more on the retailing business in the future. Commenting on this decision, S Goklaney, Managing Director, Eureka Forbes, said, "Direct sales permits us to exploit only the top end of the market. This move was in accordance with the company's plans to increase the visibility of its products. The company planned to make its products available in retail outlets through its dealer network, spread across 2,600 dealers. With this move, Eureka Forbes also planned to increase the sales revenue generated by the retail division. Eureka Forbes' Senior VicePresident, Sales and Marketing, Palekar, explained, "While the dealer channel contributes 10% to the overall sales turnover of the company, the direct sales route contributes 75%. The same year, in another major departure from the business practices adopted since it began business in India, Eureka Forbes announced its decision to enter the bottled water market. The company wanted to position itself as a one-stop shop for products related to providing pure water. Industry watchers questioned this decision, observing that most manufacturers of bottled water were regional players and very few brands had an all-India presence. Parle's Bisleri mineral water brand, the only national level player at that point of time, was expected to pose stiff competition to Eureka Forbes. The fact that these developments came at a time when the partners in the Eureka Forbes joint venture, Forbes Gokak Ltd. (FGL) and Electrolux AB (Electrolux), were engaged in a bitter boardroom battle, added to the air of uncertainty surrounding the company. The tiff had started in early 1999, when Electrolux announced its decision to walk out of the direct sales business world over and, consequently, sell off its 40% stake in Eureka Forbes. Company observers stated that Eureka Forbes could find it difficult to succeed in the retail business without Electrolux's financial support and marketing expertise. The decisions to shift from direct selling to retailing and to enter the bottled water segment were being eyed
21

with suspicion by analysts. Commenting on these decisions, analysts said that since Eureka Forbes was a relatively new player in the retail business and did not have much experience, it could have a tough future ahead. Background note

Fred Wardell, a well-known businessman of Detroit, Michigan, launched vacuum cleaners under the Eureka brand name in 1909. Eureka's vacuum cleaners were sleek, versatile and lightweight, while most of the vacuum cleaners manufactured those days were clumsy and difficult to use. Within a few years, the company became well-known for its innovative product range. In 1913, Eureka launched vacuum cleaners in six different models and offered various add-ons for cleaning floors (bare/carpeted), walls, upholstery, and crevices. The company adopted the direct marketing route from the very beginning and its sales personnel delivered personalized services to customers. As vacuum cleaners became increasingly popular in the early 1900s, Eureka employed around 5000 salesmen and opened over 400 branches to cater to growing customer demand. Within a decade, Eureka had established itself as the market leader in the Vacuum Cleaner industry. The company acquired reputation for high quality products and excellent customer/dealer relations. In 1915, Eureka received the highest award for vacuum cleaners in those days, the `Grand Prize', by a jury of electrical experts at the San Francisco International Exposition. By 1919, Eureka was manufacturing around 2,000 vacuum cleaners per day at its factory (spread over 3.5 acres in downtown Detroit). Over the next decade, the company went on to become the number one vacuum cleaner company in the US. By 1927, the company manufactured one-third of all vacuum cleaners purchased in the US. During World War II, Eureka had to stop production and its business suffered to a great extent for a couple of years. In 1945, the company moved its headquarters from Detroit to Bloomington, Illinois. During the same year, it merged with leading heating and air-conditioning equipment manufacturer, Williams Oil-O-Matic Heating Company, and was renamed as EurekaWilliams. Over the next few years, the company diversified into the manufacture of oil burners and government defense equipment. In 1960, Eureka-Williams merged with electronic goods manufacturer National Union Electric. The company even manufactured a
22

battery-operated automobile named Henney Kilowatt. But it did not stay long in all these businesses and soon decided to focus only on its original business of manufacturing vacuum cleaners and various other home appliances. In 1974, Electrolux1 of Sweden, the world's largest producer of home appliances, purchased Eureka-Williams and changed its name back to Eureka. Electrolux expanded Eureka's manufacturing base manifold by opening factories at various places in USA. In 1974, a manufacturing and warehousing facility was opened in Normal, Illinois (closed down later on). In 1981, a manufacturing plant for the production of parts (of vacuum cleaners) was opened in Juarez, Mexico and another was opened in El Paso in 1983, which was later expanded in 1997. The El Paso unit was the world's largest vacuum cleaner manufacturing facility. Electrolux brought the Eureka brand to India in 1981 through Eureka Forbes, a joint venture with FGL. While Electrolux held 40% of the stake, the rest 60% was held by FGL. FGL was a 60:40 joint venture between the construction major ShapoorjiPallonji Group and one of India's largest business houses, the Tata Group of companies. Eureka Forbes launched its first range of vacuum cleaners, `Euroclean', in 1982, and established its direct sales division in the same year. The company's subsidiary for manufacturing water purifiers, Aquamall Water Solutions Ltd., was also established in 1982. The company began operations from a single office in Delhi, with just 10 field representatives. Two years later, it launched the Aquaguard range of water purifiers. As business started picking up, Eureka Forbes established its dealer sales division in 1985, its industrial sales division in 1986, and its exports division in 1989. During the mid-1990s, the company diversified into products like mixers and irons. However, as the quality of these products was reportedly very poor, Eureka Forbes had to discontinue them. In 1994, the company entered the air purifiers segment. In 1995, Eureka Forbes launched the `Tornado' range of vacuum cleaners and the `Aquaflo' range of water purifiers, exclusively for marketing through the dealer route. In 1997, Eureka Forbes diversified into electronic security solutions under the brand name `Eurovigil'. The company established manufacturing facilities at Bhimtal (Uttar Pradesh, now Uttaranchal), Hyderabad (Andhra Pradesh) and Banglore (Karnataka). Eureka Forbes also had a Research and Development center at Bangalore.

23

Eureka Forbes - Starting from scratch HISTORY

The Eureka Forbes story began twenty six years ago when it gained the first mover advantage by capitalizing on a market opportunity it spotted way ahead of its time. Traditional water purification methods such as alum straining and boiling were unable to handle the wide spectrum of new water contaminants. Aqua guard was the first home water purifier system to be introduced in India to combat this emerging monster. There were many skeptics who predicted that the product was doomed to fail as there was no perceptible market need for it. The company found in direct selling an important ally and a perfect solution. By creating a dynamic sales team aptly christened Euro champs Eureka Forbes was able to create a market where none existed by breaking down resistance. The Euro champ mentored, installed and serviced the product and won the trust of the family. In the comfort of peoples homes he was able to demonstrate and place irrefutable evidence that the eye often deceived. With the residential front falling to Eureka Forbes it was only a matter of time before corporate India realized that better employee health, fostered by a clean work environment translated into an exponential increase in productivity and efficiency. To provide support to this view Eureka Forbes created a dedicated arm the Eureka Forbes Corporate Care Division to service this need. In the meanwhile the retail market continued to grow, providing it with efficient service became a Eureka Forbes priority. The companys Consumer Division helped it to consolidate its position in the retail market by introducing a product range for both the upper as well as the lower end of the market. Eureka Forbes also added franchised direct operations to augment its reach and tap the vast potential in smaller towns. Forbes Facility Services and Forbes Concept Hospitality Services were setup to provide institutional customers with complete outsourcing facilities. Water-borne diseases are not just an India centric phenomenon. Large parts of the world suffer from this deficiency. Eureka Forbes was quick to seize the opportunity. It made its debut in the international arena with Forbes Lux a joint venture with Lux AG, the world leader in direct selling. This joint venture now reaches customers in over 39 countries.

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 companies in India. Vacuum
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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 `Eurochamps', who projected the image of `The friendly man from Eureka Forbes'. Thus, for the average Indian consumer, Eureka Forbes became synonymous with the smartly dressed salesman who came to their houses and cleaned up things in a jiffy or showed how air/water purifiers were indispensable. Eurochamps initially targeted the metros but soon began visiting smaller cities and towns also. Though the company posted profits initially, it suffered a setback in 1992-93, when profits declined by 50% in comparison to the previous year. The following year, the company even had to post its first-ever loss of Rs. 42.5 mn. However, gradually the company's products gained acceptance in Indian markets and company sales picked up. The company began advertising across various media primarily to familiarize its target segment, housewives, with its products and introduce it to its salesforce. These advertisements showed helpful salespersons who solved the problems of housewives. Television commercials typically featured models who appeared `friendly' and trustworthy. The company also used actors from popular Hindi TV serials, such as NitishBhardwaj and Amar Upadhyay, to enhance the friendly and trustworthy image of its salespersons. The company's direct marketing thrust did not end with the conversion of orders into sales. Eureka Forbes started a customer care network that took care of after-sales services offered by the company. The company's customer service network comprised over 400 CRC (Customer Response Centers), covering over 98 towns with more than 4000 sales personnel working under it. These centers offered a plethora of options to its customers in order to enhance their satisfaction with their purchases. Some of these options were: An `Annual Maintenance Contract', which the customer could enter into after the warranty period was over. Free maintenance for its equipment at medical establishments on a yearly basisThis scheme was called `Operation Red Zone'. A mobile service van facility for New Delhi and Mumbai customers.
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`Water Labs' for customers who wanted to reassure themselves about the quality of water purified by Aquaguard. Representatives from these labs visited customer premises, collected water samples, and provided test reports to the concerned customer. This service was available in Mumbai, New Delhi, Kolkata Chennai, Bangalore and Ahmedabad. The `Euroclean home contest' gave owners of Euroclean vacuum cleaners the opportunity to entertain celebrities in their homes, on the basis of a cleanliness contest conducted by the company. The `Gift a Smile' scheme was introduced to encourage sales personnel to keep in constant touch with the customers. In an attempt to forge closer ties with its customers and push its new products, Eureka Forbes launched a scheme that gave existing customers the option of getting a new water purifier against their old model at a discounted price. Customers in New Delhi, Chennai and Bangalore could access the central CRC round-theclock. Service call-back was guaranteed within 48 hours, since most service personnel were accessible through pagers. The company believed that `A relationship does not end with a sale. It actually begins.' Eureka Forbes gave a lot of importance to Customer Relationship Management (CRM) and tried to maintain high level of post-sale customer contact. As after-sales service formed a crucial element of its marketing mix, the company set up a 24 hour-365 day virtual call center. The call center's software built into it tracked a complaint back to the nearest sales office or franchisee on the basis of the complainant's telephone number or PIN code. Updat

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FUTURE PROSPECTS OF EUREKA FORBES

Commenting on the decision to diversify into bottled water, company sources said that it was only to strengthen the core products by capitalizing on their brand image. Goklaney said, "In the water category, I will conduct activities which strengthen my core products. How I do that and what I do is a matter of strategy." According to company sources, Eureka Forbes not only had the financial strength, but also a strong network of sales executives to push its new products into the market. The company's decision to enter the retail business was primarily the result of its launch of `Tornado' vacuum cleaners and `Aquaflo' water purifiers 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 company's sales came from the 2500-strong dealer network. Eureka Forbes saw a lot of potential in the retail business and thus decided to work towards expanding its dealer network further and double its revenues from this segment. In 2001, the dealer market was growing at the rate of 25% annually, and the company expected its dealer network to grow further by 25% by the end of 2002. In 2001, with a customer base of 3 million, Eureka Forbes sales turnover stood at Rs. 3.68 bn, 32% of which came from vacuum cleaners and 45% from water purifiers. By 2002, the company was the undisputed market leader in the vacuum cleaner segment with 75% market share and water purifier segment with 85% market share. It was the market leader in the air purification and electronic security solutions segments as well. Meanwhile, in April 2002, after a long period of negotiations, FGL signed a deal to buyout Eureka Forbes from Electrolux for Rs. 317.7 mn. FGL agreed to pay an annual royalty to Electrolux to use the Eureka Forbes brand name. However, the two partners could not reach an agreement over the issues of brand rights transfer. Since, as per the joint venture agreement, Electrolux owned the Eureka, Aquaguard, EuroClean and EuroAir brands, it was necessary that the two parties agreed over the use of these brands in future by Eureka Forbes. However, the matter remained unresolved in July 2002. Refuting allegations that Electrolux's departure would have any kind of negative impact on its performance, company sources pointed out that the Swedish partner never had management control of the company, and that its inputs were only
27

in the form of technology transfer. And even on the technology front, Eureka Forbes did not seem to be worried. Palekar said, "Technology is a non-issue. It used to be a competitive advantage 15 years ago, but not today. In fact, with research and development costs escalating and product lives becoming shorter, everybody in the consumer durables business licenses out technology today." Over the years many players had entered the segments Eureka Forbes was operating in3 , but none of them had been able to make a significant impact. That the `going was strong' despite the upheavals it was going through, indicated that direct marketing or retail, with or without Electrolux, Eureka Forbes planned to retain its distinction of being the largest direct sales organization in Asi

COMPANYS VISION
A happy healthy safe & pollution free environment built with trust and lasting relationship with customers

Companys vision (sales)...

Vision I: T o be the no.1 water purifier brand in dealer trade

Vision II: To be recognized as one of the finest marketing organization for trade management.

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COMPANYS MISSION
To build sustainable relationship with customers as their Friends for life by satisfying their evolving health hygiene safety and lifestyle through

Our people
Through entrepreneurial spirit and ambition is fuelled by a culture of pride, learning, earning and fun.

Our products and Services

That reflect innovation, become quality benchmarks, and provide real value for money.

Our policy and Practices

Which are fair, transparent and constantly improved to maximise stakeholders satisfaction and achieve market leadership.

COMPANYS VALUES
CUSTOMER is the centre of our business. Integrity and highest ethical standards, mutual respect and trust is our working relationships. Communication that is open and two ways. Diversity of people, cultures and ideas, innovation and encouragement to challenge the status quo, continuous improvement, development and learning in all that we do. Teamwork and meeting our commitments to one another performance with recognition for results.

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COMPANY PROFILE
We are Your friends for life, we are Eureka Forbes!

It dates back to 1982, when health ambassadors from Eureka Forbes, with a

new concept of living in a clean environment and drinking water in its purest form knocked on your door. They called themselves friends for life and they proved that they indeed were. Eureka Forbes continues to be the best friend in Indian Households even after two decades and the sentiments have not changed. Eureka Forbes is a part of the Shapoorji Pallonji Group and today it is a 12 billion INR, multi product and multi channel corporation. Incepted in 1982, we have put 28 years of consolidated efforts to become the undisputed leaders in domestic and industrial Water Purification Systems, Vacuum Cleaners, Air Purifiers & Security Solutions. Being Asias largest direct sales organization, our force of 7000 direct personnel touches 8 million homes. We have one of the largest networks catering to more than 131 cities and 398 towns across the country. We also have a 10,000 strong dealer sales network and over 58 distributor strong Industrial Sales Network.

Dedicated to the cause of providing healthier living, today we have successfully established ourselves as a business super-brand and our dedicated team works around the clock to make your lives healthier and more secure. We strive to provide the best after sales service, and to achieve the same we have over 1500 service centers and as many as 4500 company trained technicians who visit over 20,000 Indian kitchens daily!

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COMPANY HEADINGS
Rs. 10 billion multi-product, multi-channel corporation - part of the Shapoorji Pallonji Group. Over 7,000 employees. Leaders in domestic and industrial Water Purification Systems, Vacuum Cleaners, Air Purifiers & Security. Pioneers in Direct selling - Asia's Largest Direct Sales Organisation. A strong service network that backs up sales efforts, Supported by Call Centre, Customer Care Representatives & Mobile Service Vans and 24 hour helpline for customers - Eurohelpline . Eureka Forbes - A Business Superbrand . Aquaguard & Euroclean - Chosen Superbrands. Ranked among India's Most Admired Consumer Durable Companies. Best Employers (3 times in a row). Winner of 'Most Admired Knowledge Enterprise' MAKE- Asia Awards. A case study at the prestigious Harvard Business School. Winner of awards on Customer Responsiveness. Winner of Water Digest awards. Customer has always been the centre of their business. They are in close and constant touch with their customers, listening to them and understanding their needs . They have created exciting new products and services to satisfy customers needs.

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 A sale is only the beginning of a relationship - they make a special effort to let the bonds of friendship endure through service, post purchase training and a host of other customer care incentives. Operates in over 92 cities in India. Employs over 6000 individuals. 1st to introduce domestic water purifier and vacuum cleaner in 1980. Innovated direct selling. Asias largest direct selling organisation 1500 customers added daily. Effective marketing and training of employees and stakeholders on goods, services and company objectives.

Eureka Forbes Business Policies: The customer is the sole focus of our business. We constantly Endeavour towards customer satisfaction by delivering products and services of the best value and quality. We strive to honor our commitments, implied to both internal and external customers. We stress on integrity, transparency and consistency in all our dealings. We always strive to have a trusting, mutually beneficial and long-lasting relationships with our business associates. We seek to maintain a warm, positive and friendly work. We empower our people at appropriate level to achieve their g

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ACHIEVEMENTS
Eureka Forbes has received many prestigious accolades since its inception - be it in relation to our products, our people practices or our social responsibility. We continue to make our mark in each of these fields thanks to the continuous support of our untiring people, fondly called Eurochamps; our ever supportive customers, our associates and our partners. This drives us to continuously strive to outdo ourselves as a company and reinstate our position as friends for life. forever.

Our efforts have borne us fruits in the form of the numerous awards that we have received from time to time:
Winner of 6 prestigious UNESCO Water Digest Awards 2009-10. Winner of the Frost & Sullivan Award for the Best Company from the domestic point of use, Water treatment systems and Customer Service Leadership Award. We have been ranked amongst India's Most Admired Consumer Durable Companies. Awarded Best Employers 4 times in a row. Winner of 'Most Admired Knowledge Enterprise' MAKE- Asia Awards. Holds the distinction of presenting a case study at the prestigious Harvard Business School.

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Eureka Forbes Limited awarded for Customer Responsiveness

Eureka Forbes Limited has been awarded the The Economic Times - Avaya Global Connect AwardDrd, for excellence in Customer Responsive Policies and Practices.

Avaya Global Connect Limited is a leading enterprise and a dominant player in the contact centre market. Th in customer responsiveness as the new competence for companies wanting to stay ahead, paved way for The Economic Times - Avaya Global Connect Customer Responsiveness Awards, 2005. The participating companies were judged under many parameters like innovation, responsiveness, customer

education, etc. Companies across various categories including Automobiles, IT and Consumer Durables comp

against each other. Five nominees were short-listed from each category and a customer poll helped select a fin

winner. Eureka Forbes Limited emerged as a winner in the Consumer Durables Category after receiving an overwhelming number of votes online and through printed forms.

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2.5 ORGANIZATION CHART OF EUREKA FORBES LIMITED

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Products of AQUAGUARD
Aqua Guard is the most trusted brand all over India. Aqua Guard water purifier chosen as super brand. Eureka Forbes is pioneer in Home water purifiers, RO water purifiers, UV water purifiers in India. They are specialist in 5 water technologies addressing 17 diverse water conditions and are the World's largest manufacturer of Ultraviolet (UV) based water purification system.

The most important appliance in your kitchen is the water purifier. Regular filters are not enough to kill the bacteria present in water supplied to most Indian homes. The finance minister has promised clean, drinking water to one and all by making water purifiers cheaper than what they used to be. With affordable water purifiers available, pure clean drinking water will no longer be a luxury. Time, we thought, you tried this test to check out how well equipped you are in your knowledge of water purifiers.

There are many companies who have introduced Reverse Osmosis technology based Water Purifier's in market. Here, they have some selected models for keeping you fit and fine.

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Zero B Pristine 15LPH

This water purifier has 4 purification stages like- Pre-filter purification, Pre-carbonfilter, Sediment filter purification and Reverse Osmosis technology. Reverse Osmosis separate remove dissolved salts, heavy metals, chemicals, microorganism and other impurities to drain. Auto Flust Timer (AFT) eliminates the need of manual cleaning of water purifier. This model is sleek and aesthetically designed. It comes with a 15 litres of storage capacity and is available in 2 different colours. Price - Rs 24,000

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Eureka Forbes - AQUAGUARD TOTAL SENSA

This storage water purifier has 9.5 Liters water storage capacity and 4 purification stages like- Sediments purification, Ultra-Violet purification, Reverse Osmosis technology purification and and finally Argentum Nano Fresh+ which improves taste. It has Reverse Osmosis Technology; it uses semi-permeable membrane to divert dissolved salts, heavy metals, chemicals, micro-organisms and other impurities to drain. The Ultra-violet purification system has a lamp which helps in eliminating bacteria and viruses thus providing safe drinking water. Its patented Intelligent Blu-G technology senses the quality of water. Then auto-selects the best water purification technology that should be used.

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AQUAGUARD ULTRA
An equivalent product to Pureit exists from Eureka Forbes as well Aquaguard Ultra. It uses an ultrafiltration membrane to purify water. The product claims to be capable of removing impurities even in the molecular range. Just like Pureit, Ultra does not require electricity to function. It has a four stage purification: 1. Particle Filter - good for 3000 litres 2. Sediment Filter - good for 6000 litres 3. Activated Carbon Filter - good for 3000 litres 4. Ultrafiltration cartridge - good for 6000 litres

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Eureka Forbes - AQUAGUARD TOTAL RO SMART

This water purifier has a flow rate of 8 liters per hour. This RO purification water purifier has 5 purification stages process that removes bacteria, virus, protozoa, and cysts and reduces all ionic particles including heavy metals, pesticides and TDS (Total Dissolved solid) from water

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Eureka Forbes - Aquaguard Reviva

This water purifier has 5 purification stages like- Pre-filter purification, Candle filter purification, Silver-impregnated activated carbon purification and Reverse Osmosis technology purification. It comes with 7.5 liters of storage capacity.

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Total Gold Nova

This product of eureka forbes is named total gold nova it has three stages of water purification.with a solid fiber body and direct water flow system. And it also with a warranty of one year.

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Eureka forbes classic

This product of Eurekaforbes named classic this is the first model of Aquaguard with three stages of water purification and a metal and abs plastic body which really compatible with water and it also have one year of warranty.

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44

Product Distribution Of Eureka Forbes

Production
12 production plants all over India

Zonal warehouse
(4 all over India)

District ware house

(Wagholi in Pune)

Distributor
(2 in PMC and PCMC)

Retailers
(Malls, electronic, electronic shops, super markets.)

Consumer
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CHAPTER 3 DISCUSSION ON TRAINING

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3.1 WORK PROFILE

ROLE ;- SALES PERSON AND MARKETING REPRESENTATIVE. RESPONSIBILITIES; To attend the meeting every day. To go in market for knocking. To take appointment for giving products demo. To convince customer for selling products. To dispatch payment. To deliver product.

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CHAPTER 4 STUDY IN TRAINING

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SALES STRATEGIES
1. Direct Selling- Door-to-Door Selling Eureka Forbes has an approach to sales that is well-worn in the West but is not so common in India. Unlike Procter & Gamble, which relies on closet-size, mom-and-pop stores to sell its products, Eureka Forbes cuts out the middleman and instead uses a team of young salespeople to give in-house product demonstrations and convince consumers of a need that they didn't know they had. In its early days the company only sold vacuum cleaners. It has managed to persuade Indians to stop boiling their otherwise undrinkable tap water and instead use a now-ubiquitous water purifier better known as "Aquaguard". 2. Product Segmentation Eureka Forbes sells different water-purifiers on the basis of classifying their utility and price affordability. The water purifiers are classified as follows: AQUAGUARD-ECONOMY AQUAGUARD- TOTAL PROTECTION AQUAGUARD-SPECIAL USAGES AQUAGUARD- DIRECT ONE Specialist

The High End models are made available only through the Trained Direct Sales of Eureka Forbes, by giving a HOME DEMO

The Low End models have been made available in all leading consumer electronics and home appliances show rooms across the country. 3. Making and Growing Relationships- An Irreplaceable Commodity Whether people end up buying Aquaguard from a giant store or a door-to-door salesman, EFLs crew tries to stay close to the customers. After each sale a Eureka Forbes plumber installs the water purifier. Service technicians conduct periodic maintenance. Customers can get their water tested at 15 "Aquacheck" water labs throughout th

Selling through strategy

Ask to whom am I selling? What am I selling why are they buying. Know your product but sell solutions. Remember that pay back analysis is part of any sale so make the business case crystal clear. Develop strategy around your customer s objectives. Listen be humble but be aggressive yet not over bearing. Thing long term but focus on the present.
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Change for everything but be competitive.

Out sell the competition

Plan each sales call carefully, know the customers hot buttons, find internal champion, dont bash the competition. Target wisely based on near term opportunity size of account and intuitive feel about sale cycle after initial call, Time is the most precious commodity in a sale persons daily routine use judgment on where to spend time. Be show fresh on every call per severe show commitment to customer need this build your credibility. Develop feel budgeted estimate the cycle. Welcome objection dont be defensive focus on details.

Closing techniques
Build relationship show that you care. Ask for the order dont be reticent or fear rejection. Set price expectation- dont argue the till you are in the contract process. Prepare well for every negotiation list listen issue well. Dont be afraid to say no customer will respect you. Summarize the meeting make sure you follow up on action item and suggest next interaction. Remain in control of the selling process. Your job is to get the sale.

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Chapter 5 Analysis

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ANALYSIS AND SUMMARY OF FINDINGS

As per study of sales strategy of aquaguard I found that eureka Forbes ltd. For selling aquaguard following direct selling method. Eureka Forbes making aquaguard available at the door of customer. Eureka forbes sending their sales person at the door of customers then sales persons taking appointment and gives demonstration of aquagurd products as per water condition of customer.

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Chapter 6 summary and conclusion

I have done training in eureka Forbes ltd. My role was sales Person so I have learned many things and I have learned to sale the aquaguard and I have learned how to do knocking at the customer doors and how to give demo of products to the customer , how to convince customer to buy the product ,how to interact with customer so on. I found that sales strategy of aquaguard is door to door selling and giving leaflets and also available website for online selling.

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BIBLIOGRAPHY

WWW.COMPAREINDIA .COM WWW.GOOGLE.COM WWW.KENTO.COM.IN WWW.MONEYWORKS4ME.COM WWW.NAGPUR.NIC.IN WWW.SCRIBD .COM

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