EUREKA FORBES LTD.

PREPARED BY

T.Y.B.B.A.

Academic Year
2007-2008

Grace College of Commerce

Submitted To
Saurashtra University
Guided By
Bhavna Madam

1
 PREFACE

Since the declaration of new industrial policy

for the small scale industry in Aug-1991 with a view to
make them strong and viable units, they have made an
important contribution to the Indian economy along
with the bigger firm. It is thus an important part of the
study B.B.A. to introduce to the subject, the subject of
entrepreneurship and management of small business.

The student of today shall be the

entrepreneur of tomorrow. With this maxim in mind
the students are trained for entrepreneurship
development through the subject. Hence it is
important that the students practically study such
skills and learn the same.

With these factors in mind the students are

required to prepare a industrial project report on any
selected product. In this regard I have prepared an
industrial project report on EUREKA FORBES
PVT.LTD. As per the syllabus, given by the Saurashtra
University this is presented here in the best possible
manner and to the best of mobility.

2
 DECLARATION

I, undersigned Parekh Urvi H. a student of

T.Y.B.B.A. of Grace College of Commerce. Here by
declare that the project work presently in this report in
my own work and has been carried out under the
supervision of Bhavna Madam.

This project has not been previously

submitted to any other university of any examination.
I have tried my level best to include all information in
this report.

Date: -
_____________________

Place: - RAJKOT

3
 Acknowledgement

It is really a much of pleasure for me to

prepare a industrial project report. At this stage while
studying in T.Y.B.B.A. project report is an important
part of business and it is in the interest of the
entrepreneur to prepare the project before he start the
actually production.

This project report is very helpful in

developing an entrepreneurial skill and it is also a part
of study of T.Y.B.B.A, the training programs or
guidance which is provides by my college, so I would
like to express my sincere thanks to real source of
inspiration Dr. Manish Thaker who has encouraged
me to be a real entrepreneur.

I am also sincerely thankful to EUREKA

FORBES LTD. which is the real source of information
of my project, which helped me a lot in the preparation
of this industrial project report.

Lastly I would like to sincerely acknowledge

an express my gratitude to all those who have directly
or indirectly helpful to me bring the course of study as
it shall be ever prayed so.

4
 OBJECTIVES OF STUDY

EUREKA FORBES is one of the TATAs Group

Company in todays competitive world EUREKA FORBES
LIMITED is overcoming its competitors like BPL, PHILIPS, and
VIDEOCON etc. and getting success all over India in a very
short span of time. I want to know the reason of this extra
ordinary success in competitive age, so I have selected EUREKA
FORBES LIMITED for my practical training as part of my study.

It is said that Nothing happens until somebody promote

something. One may have the best product, package and so
on. It may have fair price but after all above people will not buy
your product, if they have never heard of it and they are simply
unaware of its experience. So people must know that the right
product is right time and right place. This is the job of
promotion mix in marketing. As promotion mix is one of the
important ingredients of marketing mix I have selected
PROMOTION MIX as a topic of my report.

5
 TABLE OF CONTENTS

Sr. No. Particulars

(1) General Information

(2) Promotion Mix

(3) 1) Advertising
2) Sales promotion
3) Personal selling
4) Publicity & Public relations

(4) Conclusion

(5) Bibliography

6
7
 COMPANY AT A GLANCE

Name of the unit : EUREKA FORBES LIMITED

Nature of the product : Consumer Durable

Year of establishment : 1982

Address of Factory : Faciet Asia Ltd.

52, Apkot Ind,
Estate Hosur.
BANGLORE.

Registered Office : 7, Chaka Beria Road

(South)
KOLKATA

Corporate office : Shalinu Palace,

2nd floor,81-83,
Bhavani Shankar Road,
Dadar (West)
Mumbai-400 028

Mailing Address : P.O. Box- 936

Phone No. : 022-4371129

(12lines)

Tele fax. : 022-4371125

8
HISTORY AND DEVELOPMENT OF
THE UNIT

EUREKA FORBES LIMITED is a group of

TATA as the mother company of EUREKA FORBES
LIMITED. Company is an associate company of the
house of TATA. Indias foremost industrial group
whose aggregate sales turnover for the year 1998-99
was almost Rs. 19,000 crores and employees over
250,000 persons. The turnover of EUREKA FORBES
LIMITED is Rs. 500 to 600 crore.

EUREKA FORBES LIMITED is the outcome

of joint venture of two renewed industrial giants viz.
Forbes Gohak Ltd. and Electronics A/B of Sweden.

Electrolux is a pioneer company, which has

started in the year 1971 as direct selling company in
the market. They started with product VACCUM
CLENNER directly to the customer in the business
world.

The EUREKA FORBES LIMITED was started

in the month of February 1982 with one office at
BOMBAY and nearly with a staff of 10 people with one
product i.e. VACCUM CLENNER. But not at present
EUREKA FORBES LIMITED has 200 to 250 locations
in all over India with nearly about 6000 salesman with
multi-product like Vacuum-cleaner, Aqua-Guard water
filter, air purifier etc.

EUREKA FORBES LIMITED has made the

mission of propagating the CLEANING WORLD OF
EUREKA FORBES AND THE ULTIMATE IN CLEANING
SYSTEM.

EUREKA FORBES LIMITED is in a strong

position as leader in Health and Hygiene products. It
is the pioneer of direct selling in India.

9
 SIZE AND FORM OF The
ORGANIZATION

Depending upon the ownership, the

organization can be classified into three forms and
these forms are described as follows.

FORM OF BUSINESS ORGANIZATION

1. Private Sector: - The units owned and

managed by the individual come under this sector.

2. Public Sector: - The units owned and

managed by the government come under this sector.

3. Joint venture: - The units that are the joint

venture of the government and individual come under
this sector.

SIZE OF THE UNIT

In India, generally the business units are classified

into three main categories on the basis of the size of
the unit.

1. LARGE SCALE UNIT:-

A large scale unit is the one whose investment in fixed
assets and current assets is more than 5 crores.

2. MEDIUM SCALE UNIT:-

A medium scale unit is the one whose investment in
fixed assets and current assets fall between 3 to 5
crores.

3. SMALL SCALE UNIT:-

A small scale unit is the one whose investment in fixed
assets and current assets are less than 2 crores.
EUREKA FORBES LIMITED is the large scale
business and it is said to be private sector

10
11
THE BOARD OF DIRECTORS.

CHAIRMAN MR. Fredali A. Mehta

MANAGING DIRECTOR MR. S.C.Goklney

VICE PRESIDENT MR. A.V. Suresh

AREA SALES MANAGER MR. Terence Able

(Gujarat)

DISTRICT DIVISIONAL MR. Pankaj Joshi

SALES MANAGER (Gujarat)

GROUP LEADER

1. MR. Rajesh Jani

2. MR. Jayesh Jani
{For vacuum cleaner}

1. MR Divyesh Mehta
2. MR. Sahi Pandya
{For Aqua Guard}

12
 PRODUCT, COMPETITIORS AND MARKET
SHARE

EUREKA FORBES LIMITED has a number of products

but in this project report we are going to deal with only
main product of the company viz.

VACCUM CLEANER:-

Types of vacuum cleaner are as under.

Euro clean (XL) (New)

Tornando vacuum cleaner

2-75 industrial vacuum cleaners

The respective price of EURO CLEAN is Rs.

5,990/- and the main competitors of these particular
product are as under.

BPL SANYO
PHILIPS
MODY HOOVER
SUMEET
MAHARAJA
VIDEOCON
USHA ELECTRONICAL

The respective price of AQUA GUARD is

Rs. 6,690/- and the main competitors of this
particular are as follows.

o CRYSTAL CLEAR (PERMIONICS)

o ALFA PURE

o VIDEOCON

o MONIBA

13
o SYNEX PURIFIER

Besides above mentioned competitors there

are many local companies, which are also competitors
of the company.

When we take VACCUM CLEANER into

consideration the most known name among all is
EURO CLEAN i.e. one product of EUREKA FORBES
LIMITED and its market share is nearly 70 to 80 %.
There is 24 months warranty provided with the
product.

AQUA GUARD consumed almost 65 to 70%

of the total market of water filters. There is 12 months
warranty provided with the product.

They are also selling Air-purifier as a product

of the company but it is not as much as popular in
Indian market.

14
15
 PROMOTION MIX
INTRODUCTION

The marketing activities of product planning,

price and distribution are performed mainly within a
business or between a business and member of its
distribution channels. You may have best product
package and so on. It may have fair price, but people
will not buy your product, if they have never heard of
it, and they are simply unaware of its existence. The
market must communicate information in a persuasive
language. People must know the right product is
available at the right place and at the right price is the
job of promotion mix marketing. So it is said that
Nothing happens until somebody promote
something.

Basically promotion is an attempt to

influence and more specifically promotion is an
element in the organizations marketing mix that
serves to inform, persuade and remind the market of
the product and the organization selling it, in hope of
influence the consumers feeling, beliefs or behaviour.

Modern marketing calls for more than

developing a good product, pricing it attractively and
marketing it accessible target customers. Company
must also communicate their present and potential
customers, retailers, suppliers, other stock holder and
general public. Every company is inevitable the role of
communicator and promoter. For companies the
question not whether communicate but rather what to
say to whom to say and how often.

16
DEFINITION:-

Promotion consists of those activities which

are designed to bring a companys product and
services to the favorable or positive attain of potential
or other customers.

Each tool of promotion mix is a vehicle of

medium of communication in the field of marketing
management. The marketer is an artist creates the
most favorable blend of promotion elements of
influence buyer behavior and the process of decision
making in purchase. Thus sales can be promoted
through promotion campaign, there mainly four
important tools of promotion mix which are described
as follows.

1. Advertising

2. Sales promotion

3. Personal selling

4. Publicity & Public relation

Let us study all the four promotional tools one by one
in short.

ADVERTISING:-

The American marketing association defines

advertising as Any paid form of non personal
presentation and promotion of ideas, goods or services
by an identified sponsor. The important or key words
on this on an advertisement, instead of
communication with customer face to face. Companies
the advertise ordinarily uses a mass medium,
television, newspaper, a radio, hoarding etc. These
messengers, when they appear; identify clearly who
has paid for them.

17
SALES PROMOTION:-

Sales Promotion includes a wide variety of

tools and sales promotion is a direct inducement
which offers an extra value and incentive for the
product to the sales force, distributors or the ultimate
customer.
Sales promotion methods are useful means of
stimulating a quick and immediate response from
customer coupons, music cassettes, free samples and
free demonstration and just as few examples of many
forms that sales promotion may take.

PERSONAL SELLING:-

Personal selling involves a one to one

relationship with a customer. It is the oral
presentation of tangible and intangible product by a
seller to a prospect for the purpose of completing an
exchange.

The benefit of personal selling is that it

allows sales personnel to judge the relationship of
customer to their sales presentation and thus, gives us
an opportunity to very the message for better
understanding. It is not suited to the mass
distribution consumer product.

PUBLICITY:-

Publicity is formally defined as any form of

non-paid advertisement and communication. In
general it increases consumer awareness of a company
of its products particularly new and innovative product
and marketing practice. A company can also plan
publicity to derive its advantage.

18
 What Eureka thinks about its customer:-

A customer is the most important person ever in

this office_ _ _ in personal or by mail.

A customer is not dependent on us _ _ _ we are

dependent on him.

A customer is not an interruption of our work_ _

_ he is the purpose of it. We are not doing a favour by
serving him_ _ _ he is doing us a favour by giving us
the opportunity to do so.

A customer is not someone to argue or match

wits with. Nobody ever won an argument with a
customer.

A customer is a person who brings us his wants.

It is our job to handle them profitability to him and to
ourselves.

19
20
INDEX OF ADVERTISING

Serial Particulars
No.
(1) Introduction

(2) Objective of Advertising

(3) Different medias of advertising

(4) Advertising theme of appeal

(5) Advertising Agency

(6) Advertising copy

(7) Advertising Budget

21
INTRODUCTION
Advertising is one of the five major roles. Companies
use direct persuasive communication to target buyers
and public. It is because mass markets at reasonable
costs. It is too costly and time consuming to use only
sales people in large geographically drive markets.
However, where as personal selling or direct selling
can be tailored to the individual prospect mass
communicators try to reach many people with a
common massage. This ultimately results into mass
communication at a reasonable cost.
Advertising is the most important promotion tool
among all the other tools of promotion. There will be
hardly a field of business in which advertising is not
used for sales expansion. It is not exaggeration to say
that MODERN AGE IS THE AGE OF ADVERTISING.
It is the foundation of modern trade and industry.

From the above discussion EUREKA FORBES

LIMITED give advertising in newspaper or in
magazines in yearly or in Diwali. But in television
EUREKA FORBES LIMITED gives advertising regally
on every channel.

22
 DISTINGUISH FEATURES OF ADVERTISING:-

It is unique of means non-personal or mass

communication announcing the sale of goods or
services. It can help to introduce a new product
quickly.

The advertising is non-personal salesmanship

function like personal salesmanship. It is a silent but
forceful salesmanship. It helps to pre-sale a product.

It is an openly sponsored sales message

regarding any product or service.

It is paid form of communication by the

sponsors [Advertiser] to the media owner.
Advertising message can be addressed to numerous
people at a time they may be readers, listeners,
viewers, collectively.

23
 OBJEVTIVES OF ADVERTISING

We already know that every activity is depend on some

specific objectives and the advertising is one kind of
activity, so it has also some objectives behind its
publications Either it may to increase demand, to
attract customer, middleman to face competition or
other marketing purpose.

The first in developing advertising programmed to set

advertising objectives. According to EUREKA FORBES
LIMITED these objectives must flow from prior
decision on the target market EUREKA FORBES
LIMITED, market positioning and marketing mix. The
market positioning and marketing mix strategies
define the job that advertising must do total marketing
programmed. The EUREKA FORBES LIMITED has
undertaken the activity of advertising with a view to
attain the following objectives.

TO INFORM:-

Telling the market about the new features of the

product.
Suggesting new uses for a product.

Explaining how the product works.

Building a companys image.

Telling about mode of selling.

24
 TO PERSUADE:-
Building brand preference.

Encouraging switching to your brand.

Changing customers perception of product

attributes.

Persuading customers to purchase now .

TO REMIND:-

Reminding customers that the product may be

needed in the near future.

Reminding them aware to buy.

Maintaining its top mind awareness.

DIFFERENT MEDIA OF ADVERTISING:-

Advertising Media is the vehicle for manufacturers to

convey company. There are many media of advertising
through which company can advertise. The selection of
media depends on various factors such as:-

The finance allocation for advertising.

The nature of competition and promotional aid-

offered by media circulation.

Right media of advertising will enable the

advertiser to deliver the message effectively to the
intended markets of prospectus. The different type of
media can be analyzed as follows:

25
 MEDIA OF ADVERTISING

1 2 3
PRINT MEDIA OUTDOOR DIRECT MAIL
PUBLICITY ADVERTISING
News papers Posters Circular Selling
Magazines Hoardings Quotations

Trade/technical Electrical Price lists

journals display

Periodicals Sign Boards Pamphlets

4 5 6
BROADCAST TRANSIT OTHER
MEDIA FORMS
Radio Railway Window
Display
Television Buses Exhibitions
Film Airplanes Directories
Internets Car-cards Advertising
specialists

26
 Out of the above media, EUREKA FORBES
LIMITED uses media for advertising, some of included
in some of included in sales promotion tools and some
of them are describes as follows:-

1. PRESS MEDIA:-

Press media included following important

media.

Newspaper

Magazines

Trade and Technical Magazines

Periodicals

According to EUREKKA FORBES LIMITED,

they give advertisement in newspapers and magazines
only one time when like festivals of DIWALI or yearly
based. In newspapers they use state leading
SANDESH, GUJARAT SAMACHAR, Country leading
THE TIMES OF INDIA and INDIAN EXPRESS and
in Magazine they used CHITRALEKHA, GRUH
SHOBHA, and READERS DIGEST etc.
So at least we can say that press media is not use
more than other by EUREKA FORBES LIMITED.

27
2. OUTDOOR ADVERTISING:-

EUREKA FORBES LIMITED had adopted

posters, hoarding and electric display as media of
outdoor advertising. They are giving importance to this
media because it has long life and wide appeal and
also because it can attract attention of numerous
people. EUREKA FORBES LIMITED has been taking
into consideration some important point while giving
advertising through its media such as the place of the
posters, hoardings, electric display and rules and
regulation levied by the government. They choose the
local place for this purpose.

However, they are not giving too much

importance to this media because of its effectiveness
can not be accurately measured and it may be lead to
considerable wastage also. Further it is not useful in
selective advertisement.

3. DIRECT MAIL ADVERTISING:-

The direct mail advertising is the vehicle for

transmitting the message in printed, written or
processed form with control in distribution. Direct to
selected individual. EUREKA FORBES LIMITED is also
using this media of advertising in the form of booklet
and personal letters that are described as under.

4. RADIO ADVERTISING:-

EUREKA FORBES LIMITED is using this

media because it is suitable for some illiterate people
and also because spoken words have greater impact
than written words. They advertise their product on
radio before and after giving much more importance to
this media because it can not detailed information and
has low memory value.

28
5. TELEVISION ADVERTISING:-
EUREKA FORBES LIMITED is using
television as an important media of advertisement.
They advertise their products on ZEE TV, STAR PLUS,
and SONY TV etc. regularly before very popular
programmers. So that it can attract more prospective
customers. They are giving much importance to
television advertisement.

So, EUREKA FORBES LIMITED give advertise of

its product through above media but its main source
is DOOR TO DOOR SELLING according to EUREKA
FORBES LIMITED it is the best way for it to increase
the sales. So it gives much importance to DOOR TO
DOOR SELLING.

29
 ADVERTISEMENT THEME OF
APPEAL

The theme of appeal is control idea around which

the advertisement is created. It is called the unique
sales promotion. There are various appeals used in
advertisement to sell product or service. The selection
of theme of appeals is usually made by means of
consumer study and research, is that they have got
the knowledge about the types of prospective
customers, their style of living, social class to which
they belong and kind of approach them need, they
have conducted this research to form the advertising
theme also.
After a proper consideration, EUREKA FORBES
LIMITED has selected following theme for vacuum
cleaner and water purifier.
1. THEME OF PRIDE:-
Generally vacuum cleaner in EUREKA
ORBES LIMITED is sold with the theme of pride
appearing to upper class and rich class. It appeals the
theme of pride by saying the statement that EUREKA
FORBES LIMITED.
2. THEME OF EASE IN COMFORT:-
In EUREKA FORBES LIMITED vacuum
cleaner is sold through advertisement with the theme
of easy in operation. It says that the time of cleaning
your house with the help of vacuum cleaner the
operation is so easy just on the switch take in hand of
EURO CLEAN (XL) and get house clean in few
minutes.
3. TO SAY ABOUT MODE OF SELLING:-
In the advertisement of vacuum cleaner and
aqua guard water purifier of EUREKA FORBES
LIMITED, this theme is also pointed out. In
advertisement, it says that you need not to go
anywhere to buy vacuum cleaner and aqua guard
water purifier of EUREKA FORBES LIITED. Just make

30
 us call and our salesman reach at your home as fast
as possible to demonstrate the item.
ADVETISING AGENCY

Advertising agency can be explain in briefly

as The organization undertaken the task of planning
and executing the advertising programmes on behalf
their clients.

The advertising agency take the brief form of

the marketing and advertising department of the client
company and learns everything about the product to
be advertised, the budget meant for its the objectives
of advertising programmes etc., with the help of brief
idea they create advertisement, the take copyrights of
writers who wrote advertising message, its layout and
several advertising copies for the approval of the
clients of marketing department on finalizing the
advertising coy the agency in consultation with clients
prepares a media plan in which the message will be
put, the time frequency etc, also included in this. The
advertising copy is given to reduction department,
which prepares the final art work to be given to the
broad casting and television media.

Regarding the organization needs to perform

the message of the advertising activities in a company,
management has three objectives.

A companys own advertises department.

An outside advertising agency.

Both company department and advertising

agency.

Advertising is independent concerns acting

as specialist in advertise even companies with strong
advertising department use advertising agents. It acts
as agent or consultant of the advertiser who is

31
manufacturer, wholesaler or retailer. It is not an agent
in the legal sense originally but in acted media owner.
Today the very popular agencies of
advertisements are:-

CAMERAD LINTAS

OLEIVE AND MATHEOR SAUBHAGYA

HINDUSTAN TANSAN OBILY

EUREKA FORBES LIMITED has been also

taken the help of very popular agency OLEIVE AND
MATHEOR (O&M), Mumbai regions for using the
advertising agency are follows:-

The company can not have all types of

specialists such as copywriter, artists, design staff,
market research experts etc. The agencies have these
highly paid specialists on a permanent basis because
their costs are spread over many advertisers. Hence, it
is economical and cheaper to use an advertising
agency.

The agency can take unbiased or objectives

views of any advertising problem. The agency can see
the product, its merits, and demerits through the eyes
of the buyers who are also outsiders; this objectively is
not possible for an advertisement department of the
company.

Finally the media owner pays the agency.

The company pays nothing for the use of an agency
while buying advertising space. He pays the same cost
if the places an advertisement directly with the media
partner.

The EUREKA FORBES LIMITED gives the

agency. The company pays nothing for the use of an
agency while buying advertising directly with the
media owner.

32
 The EUREKA FORBES LIMITED gives the
design, size, color, etc. of the product to the agency.
The advertisement, selection of media, placement of
advertises, advertising research study of audience
these app characteristics are performed by the O&M,
Mumbai. It receives about 15% of commission from the
media owner also.

ADVERTISING COPY

The term copy refers to a material which is to

be set type of the print media or spoken by announcer
for broad case commercial. Advertising copy is the
most important and critical activity for the success of
the entire advertising of the company depends on it to
a large extent. Advertising copy is a key activity in
advertising indeed a creative activity. A copy transits
the sealing point of a clients product or say and who
in an advertisement that how to say and show it. He is
called upon to alter all his creative talent to present
those product benefits which best appeal to
consumers.

Advertising copy includes all the element of

an advertising message whatever printed or broad
cast. In advertising for the print media it includes the
heading, subheading, and picture. EUREKA FORBES
LIMITED, cartoons and body of the advertisement. It
may even include trade marks, the company logo,
border and music in addition to words spoken in the
advertisement message. TV has the domination of
motion in addition to that of TV includes the words o
be spoken by the characters in the scripts plus music
and sound effect as well as illustrative materials.
Action and even camera effect also.

33
34
QUALITIES OF GOOD ADVERTISING COPY

o It must have a personal appeal.

o It must be responsible but never dull.

o Independent and bold think ness.

o Keep preparation and imagination.

o High degree of adoptability.

o It may be slice of life.

o It may present a life style.

o It may awake a mood or image such beauty,

love or sincerity.

o It may be musical

o It may a personality symbol.

35
 ADVERTISEMENT BUDGET

Having established the advertising objectives, the

next important managerial task is to determine the
advertising appropriation for companys budgetary
period. It is that part of companys communication
budget which is to be spent or invested on media,
mean and other ancillary services to as to
impersonally advertising budget which are as follows.

o Affordable method

o Competitive comparison method

o Percentage on sales method

o Return on investment method

o Objectives and task method.

EUREKA FORBES LIMITED first of all overall

budget for promotion is decided. This budget is
decided on the basis of percentage on sales method.
Overall promotion budget they are appropriating 25%
budget to advertising, they are using this method for
determine promotion budget as well as advertising
because it is easy to understand and calculate.
Further there is a relationship between sales and
promotion expenditure.

36
37
 INDEX OF SALES PROMOTION

Serial PARTICULARS
No.
(1) Introduction
(2) Objectives of Sales Promotion
(3) Sales Promotion Tools
a) Consumption promotion
tools
b) Trade promotion tools
c) Business promotion tools
(4) Development of the sales
(5) Promotion programme

38
 INTRODUCTION

Sales promotion is an important instrument

in marketing efforts today, sales promotion is a
necessity not merely a luxury or a fashion. It is not
expenditure; it is an investment which can pay rich
dividends. It is an integral part of the marketing
activities.

Sales promotion is one of the most loosely

used terms in the marketing vocabulary. Sales
promotion consists of diverse collection of incentives
tools, mostly short term designed to stimulate quicker
and greater purchase of particular products by
consumers or the trade. In other words, sales
promotion consists of those activities that are intended
to stimulate customer demanded and improve the
marketing performance of seller. In short, where as
advertising offers reasons to buy sales promotion
offers incentives to buy.

Sales promotion includes tools for consumer

promotion [E.g. samples, coupons, cash refunds offer,
price off, premium rewards, free trials, warranties,
demonstration contest etc. Trade promotion [e.g.,
Buying allowance, free goods, merchandise] and sales
force promotion [e.g. bonus, contest, sales relies]. In
short, sales promotion is a bridge or connecting link
between advertising and personal selling.

39
 OBJECTIVES OF SALES
PROMOTION

Today it is the world of stiff competition.

Consumers are becoming aware about the value of the
product. Which they are going to buy and price of it.
Today there is not competition about price, but
consumers want to extra benefits and best quality of
product by paying the same price.

Now a days a lot importance is attached to sales

promotion in each and every kind of organization. It is
an incentive to attract consumers. Sales promotion
has got importance because by the way of which
product improvement is there and also new product
development is also possible and sales promotion is
also helpful in maintaining consumer attraction and
create brand image in the minds of consumers.

EUREKA FORBES LIMITED has adopted a sales

promotion as major tool of marketing efforts.
According to EUREKA FORBES LIMITED prospectively
buyer must be attached urgent and ever persuade to
buy a product of the company. They are giving
importance to sales promotion because;

It stimulates positive awareness towards the

product.

It gives extra incentives to the consumers to male

a purchase.

It gives direct inducement to take immediate

action now rather then later.

40
 SALES PROMOTION TOOLS

Many sales promotion tools are available to

accomplish sales promotion objectives. The promotion
planner should take into account the type of the
market. Sales promotion objectives, competitive
conditions and cost effectiveness of each tool. We will
now consider the main sales promotion tools used by
EUREKA FORBES LIMITED for consumers promotion,
trade promotion and sales force promotion.

CONSUMER PROMOTION TOOLS

Major consumer promotion tools used by the
EUREKA FORBES LIMITED are as under.

WARRANTY:-

Product warranty is important promotional

tool, especially as consumers become more quality
sensitive. Vacuum cleaner [Euro clean XL] are
warranted against defects arising from factory design,
workmanship and materials for a period of 24 moths
form the date of invoice as well as aqua guard water
purifier are also warranted for a period of 12 months
from the date of invoice. Both above products are
warranted subject to following condition.

41
CONDITION:-

The customer will notify the company

promptly of any defect noticed opportunity to inspect,
test and remedy then for which the customer
deposited the goods, if necessary with the customer
deposit the goods if necessary with the companys
office/service center with invoice in the city where are
sold.

Inspection and test reports of companys office/service

center will be treated as final and binding under the
warranty for determining defects, repairs alternations
required or cried out certifying working of the goods
thereafter.

The company or its authorized agent will be

entitled to retain any defective part replaced under the
warranty period.

The companys liability under the warranty

period will be limited only to be defects, which occur
under condition of normal operation, and under
proper use. It excludes defects occurring because of
abuse, faculty care or maintenance, repair alteration
to goods or parts by other use on electrical supply for
which the goods are not designed or to damage caused
by lighting or other electrical are not covered by this
warranty.

Components subjects to wear such as

carbon, brushed and accessories are not covered by
this warranty.

The customer will have not claim under this

warranty in respect of any personal injury, damage or
consequently accordance with operational manual.

42
AFTER SALES SERVICES:-
In EUREKA FORBES LIMITED, the customer
may be offered a service contact with the company on
the expiry of the warranty of the goods brought to its
service center by the customers.

FREE TRIAL:-
In EUREKA FORBES LIMITED, free trial
consists of inviting prospective purchases to try the
product without any type of payment and after trying
it if purchase is satisfied they can purchase the
product. Prospective buyers are invited through
personal letters.

DEMONSTRATION:-
In EUREKA FORBES LIMITED, there is door
to door selling called direct selling. Salesman goes to
prospective customers house and gives the complete
knowledge about the product. i.e. Type of products,
different types of accessories used in the product, its
superiority in operation and different types of uses. He
gives them live demonstration if prospective customers
ring up. Then they also go to their office also.
Demonstration is one of the important tool for
EUREKA FORBES LIMITED and they increase their
sales from the demonstration.
Thus it is the very important part of customer
promotion tool by which company comes in direct
contact with prospective buyer and tries to understand
their demand and solve their problem which can
ultimately increase the sales of the companys product.

PREMIUM:-
Premium or gifts are merchandise offers at a
relatively low cost or free as an incentive to purchase.
In EUREKA FORBES LIMITED also, it gives one bag
free with Euro clean XL and Aqua Guard.

43
TRADE PROMOTION TOOLS
There are number of manufacturers are
using a number of trade promotion tools due to below
objectives:-

Trade promotion tools can easily persuade

the retailer or whole seller to carry the brand.

Trade promotion can include the retailer to

promote the brand by display features of product and
price reductions.

Trade promotion can stimulate retailers and

trade sales clerk to push the product.

In EUREKA FORBES LIMITED, company is

not giving any types of trade promotion such as price
off, allowance, free goods because company has not
whole seller or retailer. Instead of them, company has
its own more than 200 branches all over India.
Because of the disadvantages of whole selling and
retailing, company has opened its own branches all
over India, providing direct service to the prospective
customers.

BUSINESS PROMOTION TOOLS

EUREKA FORBES LIMITED spends too
much of business promotion. These tools are used for
such purpose as gathering business leads, impressing
and rewarding prospective customer and stimulating
the sales force to gather more effort. The main tools of
business promotion tools are as under:-

DISPLAYING IN EXHIBITION, FAIR ETC.

44
 EUREKA FORBES LIMITED takes part in
different exhibitions and fairs. Generally this type of
fairs and exhibitions are held by some other authority
at the time of some festivals such as Navratri,
Janmashtami, Diwali etc. and in those fairs and
exhibition companies books their stole and give live
demonstration. Same way EUREKA FORBES LIMITED
buys the space and set up display to demonstration
their product. Thus the cost of these tools is very
much less, but values of this are too much high. There
are number of people attend this types of fair and
exhibitions and same into the contact with the
company and its uses.

SALES CONTEST:-

In EUREKA FORBES LIMITED, sales contest

is a contest involving the sales force aimed at
including them to increase their sales over a stated
period with price going to those who secede.

In EUREKA FORBES LIMITED, sales target

is decided first by the company. In this direct
promotion is not given to the employee. Each and
every employee has to perform the job of best
salesman first. If the salesman achieves the target
setup by the company over the stipulated time, he can
get the chance of promotion and other prizes such as
free trip of any one big city in India.

With the help of the business promotion company can

get following benefits:-

It can increase its sales.

It can satisfy the salesmens needs.
Company can get information about
efficient personnel and can provide best incentives to
work.

45
 However, EUREKA FORBES LIMITED, is
taking too much care in fixing target because if target
is low then it is possible that in-efficient person is
promoted and if target is high then it can disappointed
the salesmen.

SPECIALITY ADVERTISING:-

In EUREKA FORBES LIMITED, specifically

advertising consists of blueprints, pen, calendars,
cigarette lighter etc. The item keeps the companys
name before the prospect and creates goodwill because
of utility of the items.

DEVELOPING THE SALES PROMOTION

PROGRAMME.

In EUREKA FORBES LIMITED, to develop

the promotion programme, they have to think about
following points or we have say that people should
develop the sales promotion programme taking into
account following consideration:-

SIZE OF AN INCENTIVE:-

According to EUREKA FORBES LIMITED, a

certain minimum incentive is necessary for the
success of promotion. A higher incentives level will
produce more sales response. But at a diminishing
rate so company fixes the sizes in between low and
high.

e.g. Company is arranging sales contest. Then if it

gives too much less incentive then nobody will go for
this and it is too much high will become expensive. In
this situation company has find out middle way. They
are giving promotion plus prize benefit to successful
sales person.

46
 Thus, size of incentives in EUREKA FORBES
LIMITED is fixed after taking into consideration the
financial availability and benefit derived form that
incentive.

CONDITION FOR PARTICIPATING:-

Here the decision is taken about, the

incentive that might be offered to everyone or to
selected groups.

DURATION OF PROMOTION:-

In EUREKA FORBES LIMITED, in case of

consumer promotion tools, the duration of warranty is
fixed like 1 year and 2 year in Aqua guard and
Vacuum cleaner. This duration is fixed after taking
into consideration the technical aspect of the product.

SALES PROMOTION BUDGETS:-

Finally, the market decides the sales

promotion budget. In EUREKA FORBES LOMITED, the
method of determining the sales promotion budget is
very simple. They fix budget on the basis of
conventional percentage of the total promotion budget.
They have sales promotion budget is 15% of the total
promotion budget.
After determining the proper sales promotion
programme, it is implemented at a stipulated time.
Evaluation of sales promotion programme is done in
EUREKA FORBES LIMITED i.e. comparing the sales
figures before and after the implementation of sales
promotion programme.

47
48
 INDEX OF PERSONAL SELLING

Sr.No.
Particulars
(1) Introduction

(2) Importance of personal selling

(3) Essential of effective selling

(4) Salesmanship

(5) Types of salesman

(6) Recruitment of salesman

(7) Selection of salesman

(8) Training and compensation plan

(9) Personal selling system

(10) Personal selling process

EUREKA FORBES LIMITED is giving too

much importance to personal selling rather than
advertising and sales promotion. There are no retailers
or wholesalers for company product so this personal
selling system also known as direct selling system also
known as direct selling system. So in this way in
EUREKA FORBES LIMITED, there is a direct selling
system.

49
 From the above definition it can be said that
personal selling is an art but according to EUREKA
FORBES LIMITED, it is both science and art.

An art is SKILL IN PERFORMANCE

ACQUIRED BY STUDY AND OBSERVATION AND
EXPENDITURE viewed in this manner, salesmanship
is an art, and salesmanship requires a certain aptitude
or talent, a certain type of personality. A salesman
must posses a certain skill can be acquired and
developed.

A science has been defined as

SYSTEMATISED KNOWLEDGE. Salesmanship can
be considered as science according to this view
because it is based on certain standard principal and
theory. However, salesmanship is not an exact science
compare to physics or other, but it is a science based
in Human Psychology. It can be considered a SOCIAL
SCIENCE.

INTRODUCTION

The term Personal selling, itself signifies

the meaning i.e. a person goes to the customer and
introduce the product with a view to sell the product.
A salesman is one who practices the profession of
selling. Personal selling refers to the oral presentation
in conversation by a sales representative with one or
more prospective customer for the purpose of making

50
sales. No other tool for promotion is as strong as
personal selling or salesmanship.

Personal selling is highly distinctive and the

only form of promotion involving face to face (direct)
relationship or interpersonal interaction
communication between a sales person and one or
more prospective customers.

Personal selling has been defined by Russell

and Beech as It is the art of persuading the people to
purchase goods which will give off lasting satisfaction
by using methods which consume the least time and
efforts.

IMPORTANCE OF PERSONAL SELLING

Personal selling is the most important in the

production mix. EUREKA FORBES LIMITED is giving
too much importance to personal selling because
through personal selling EUREKA FORBES LIMITED
is in as position to get following advantage.

51
 A person can pinpoint prospect. Hence, there
is minimum rate of effort and expenditure in personal
selling.

Personal selling interview in salesmanship

assures attention and interest of a prospect. Personal
selling has flexibility. Salesman talk and presentation
can be fitted to the individual needs and obvious of his
prospect. This is not possible in advertising.

Sales can meet objectives and reactions of his

prospect in order to gain favorable action.

Company is giving actual demonstration.

Actual demonstration of the product or its use is
recognized as the most powerful means of convincing.
Advertising can not use demonstration but salesman
can use it easily.

Company is using personal selling as most

important tool because it is the best means of two way
communication between the company and its
customers. Top management can be fully informed
about vital matters such as competition, customer
reaction and comments, market trend etc. This
feedback of information can not be adequately
achieved through other means of promotion.

ESSENTIAL OF EFFECTIVE
SELLING
According to EUREKA FORBES LIMITED, the
leader of personal selling, personal salesman should
be well equated with five EUREKA FORBES LIMITED
departments. These five pre-requirements can be
summarized as follows.

52
KNOWLEDGE OF YOUR COMPANY:-

Some products are not joined on their own

merit but the name of the company that manufactures
them. Hence salesman must be company oriented. The
facts about it the company must be at his prospect
about your firm so that they may decide to do
business with your firm.

KNOWLEDGE OF YOUR PRODUCT:-

A salesman knows all about his product like

raw-material from which it is made, how it is used. It
is maintained product features customers benefits,
selling points of the product in relating to its rival and
so on without having the adequate knowledge about
vacuum cleaner, and Aqua-guard, a salesman can not
convience the prospect and convert him into a
customer.

KNOWLEDGE OF COMPETITION:-

A salesman should constantly study the

product offered by his competitors and determine their
strength and weakness in comparison to his own
products. Though knowledge of the company its
product is and its competitors constitutes the solid
background of essential information for effective
selling buyer have faith on well informed salesman.

KNOWLEDGE OF CUSTOMERS:-

A salesman must have knowledge about the

customers wants and desires; customers buying
process, their perception, innovation and learning
process. Sales presentation can not be effective unless
a salesman knows about factors influencing buyer
behaviour.

53
KNOWLEDGE OF SELLING PROCESS

A salesman should have adequate knowledge

about selling process. It should be informed of all the
stages of selling process like prospecting, presentation
and post sales activities etc. The salesman can use A
I D A S formula i.e.

Attention,
Interest,
Desire,
Action and
Satisfaction

TYPES OF SALESMAN

The following is the chart of showing types of

salesman:-

54
 Different Types
Of
Salesman

Industrial Merchant Consumer

Salesmanship Salesmanship Salesmanship

Specialty Missionary
Salesman Salesman

Creative Detail
Salesman Salesman

All are traveling salesman in chart at specific sales

territory.

DETAILS OF SALESMANSHIP

INDUSTRIAL SALESMANSHIP

Industrial salesmanship needs a technical

background in engineering or chemistry to understand
the problems and also know the language of
technically trained agents. Industrial salesman

55
represent manufactures or wholesalers etc, for highly
technical training are employed to study the customer
problems, recommended proper equipment, supervise
the installation and train user in its operations.

MERCHANT SALESMANSHIP:-

It involves quantity selling of all types of

consumer goods (convenience, shopping and special
goods) to resellers. They operate the consumer good
market we have 4 types of more merchant salesman.

[SPECIALITY SALESMAN]

He is called upon the sell consumer

specialities such as vacuum cleaner, refrigerator,
cosmetics etc. They also sell in industrial product and
materials supplies etc.

These salesmen specialize in introducing new

product or innovation in the market. They adopt the
technique of aggressive salesmanship.

[MISSIONARY SALESMAN]

They are responsible for promoting sales and

create a demand they help much out in arranging
stores, display planning store, sales and helping in all
merchandise activities.

[CREATIVE SALESMAN]
They are the salesman who seeks to
introduce a new product or a new brand into the
market. They create a demand for such novelty they
are pioneer salesman.

56
CONSUMER SALESMANSHIP

It helps the customer to take purchase

decision i.e. in the store to buy NOW i.e. on the spot.
They also create strong patronage a store loyalty to
ensure repeat purchase by customers. It is required
for selling high cost articles, e.g. automobile,
refrigerators, television sets etc.
In EUREKA FORBES LIMITED, we find especially
creative salesman. They are expert in introducing new
products and innovations in the markets. They are
able to create demand for both introducible products
with their creative stall of salesmanship.

RECRUITMENT OF SALESMAN
Recruitment refers to process of searching
for prospective employee and inducing them to apply
for job. It is the most important function because
unless the right type of people is hired even the best
plan and organization system would not do much
good. Systematic recruitment of salesman leads to

57
greater productivity. Higher more able in labour
turnover and better resolution of the concern.
In EUREKA FORBES LIMITED, first of all recruitment
policy is established when it is found that there is a
need of salesman. They get information about
prospective employee recommended form present
employee or former employee of the organization. They
evaluate the information collected by them and make
decision to select to reject prospective salesman. They
also give advertisement in local newspaper, trade
journals and magazines. Interviews are held up a
proper selection process in made after consideration.

58
SELECTION OF SALESMAN
Selection is the processes in which
candidates for employment are divide into classes
those who are offered employment and those who are
not.

While selecting the salesman in EUREKA

FORBES LIMITED following qualities are taken into
consideration.

[A] PHYSICAL QUALITIES

According to EUREKA FORBES LIMITED,

salesman should have a good physical appearance
which is a very big asset for a salesman. According to
them, he should be well built and free from physical
defects, he should have appropriate dress, clean
appearance, a good posture in creature a good first
impression. A salesman must always have cheerful
smile in his face.

[B] SOCIAL QUALITIES

A salesman is required to move in different

cities to meet many customers and set along with
them. He must therefore develop a good social
behaviour. A salesman must always cultivate good
manners. According to EUREKA FORBES LIMITED, a
salesman must be polite and respectful and never
become unduly familiar with his customers, courtesy
in dealing with customers using polite expressions and
a sincere desire to please customers are very
necessary for success in salesmanship.

59
[C] MENTAL QUALITIES

According to EUREKA FORBES LIMITED, the

mental make up of a salesman must be conductive to
success. He should have a good power of memory and
ostentation. Each must be able to recognize the
customers, their characters and their buying motives
and adjust his sales according. He must be alert and
always on his toes. He should be self-confident.

[D] MORAL QUALITIES

Honesty and integrity are the essential

character qualities of a salesman. Customer must be
willing to depend on the salesman. Creating of goodwill
and a name of fair and honest dealing are essential in
business. A salesman must be loyal both to his
employer and customers, there are also various other
qualities, which a salesman must develop in order to
become successful.

While taking the interview and these qualities

matched with prospective salesman character and if
there is best match between the two he is selected as a
salesman of the company.

60
 TRAINING AND COMPENSATION
PLAN

TRAINING
In EUREKA FORBES LIMITED, training
plays the major role the people in EUREKA FORBES
LIMITED are given a class room training of 2 to 3 days
in which knowledge of the company, direct selling
[personal selling], product knowledge information is
covered. After the sales persons are given field training
in which a senior sales person accompanies him and
he is made to observe the actions and reactions of the
customers and sales persons. These types of field
training are given for 15 to 30 days. After that if
salesman is ready to go alone then he will be given
specific sales target in for particular month and if he
will succeed in selling the specific target then he will
be promoted.

COMPENSATION PLAN
EUREKA FORBES LIMITED is the best
company, which as the best compensation plan for
their sales force. A part of its paid in the firm of basis
and field allowance. But the company believed in
GIVE AND TAKE POLICY it is so said in EUREKA
FORBES LIMITED, that it is the highest paid for hard
work and lowest paid for lower work. The company has
various slab for commission in which sales persons
can earn as much as his own EUREKA FORBES
LIMITED, who can sell average 20 units per month can
earn more than Rs. 5000/-.

61
 PERSONAL SELLING SYSTEM

The system approach is useful for understanding

the elements of personal selling strategy. The sales
system under the system approach is presented in the
following diagram.

Sales
System

Input Transformation Outputs

Human Technological Changed Customers

Sales Process
Organization Changed sellers

SYSTEM BOUNDERS

ENVIRONMENT

ENVIRONMENTAL PROCESS [UNCONTROLLABLE]

ENVIRONMENTAL ALTERNATIVES [CONTROLLABLE]

INPUTS:-

The environment provides the inputs to the

sales situation from which the sales manager selects
more favourable combination of inputs in order to
fulfill his sales objectives.

62
(1) Technological inputs

(2) Human Inputs

(3) Organizational input

TRANSPORTATION PROCESS

The transportation process to influence by

the combination and working of the outputs.

FEEDBACK:-

Feedback refers to the return flow of

information from the sales encounter. Such
information can be used to modify the selling system.
The performance of salesman is evaluated by the sales
manager even by the group leader of the salesman.

OUTPUT:-

The effectiveness of the system and its

various survivals depends upon transforming the
prospect into a buyer. Consumers attitude purchases
the product are also the outputs.

EUREKA FORBES LIMITED practice spot

purchase. Once the salesman to the prospective
consumer, he gives demonstration of the product and
the prospective customer has to take immediate
decision whether he is interested the salesman takes
the order and there after on the next day customer
gets the delivery of the product.

Hence the salesforce of the every business or

company they are the focal point of he marketing mix.
They are not depending on the seller in reality, but the
seller is dependent upon them.

63
 There are various types of customer, i.e.
impulsive customer timid or nervous customer,
argumentative price minded, talkative, silent and
suspicious.

The salesman of this company through keep

observation and study can trace the individual
peculiarities of his prospect on the basis of his
knowledge and he adopts his sales talk to secure
favorable result.

The prospective customer is not classified by

the sales status wiz, how ever they do classification of
the future customer according to their profession as
under.

Businessman

Government servants

Professionals

Industrialist

Service class

Businessmen do not react or respond in a

very manner forward the companys product and their
purchase are always varying.

Government servants are the most

responsive group of customer, they mostly react
positively towards the purchase of the product.

Professionals are generally educated

advanced class of society. They have got advanced
thinking hence mostly they are the adopter pf the
company product.

64
 Industrialist does not behave in a specific
manner towards the product the response is not
always predictable.

Generally the purchases of service class

customer are seasonal i.e. during festivals like
DIWALI.

The upper-middle and middle class people

mostly purchase the products of the company because
they are the class of people who are eager to utilize the
best available service in the market. As they have
planned their purchase either by cash i.e. once a year
on Diwali bonus or sometime through loans and hence
to maintain their standard in every manner. In the
present society and the environment they are the first
people to buy the given advantages.

65
 PERSONAL SELLING PROCESS

Personal selling refers to organizational

presentation in conversion with one or more
prospective customers for the purchase making sales.

In EUREKA FORBES LIMITED, the process of personal

selling is as under.

PERSONAL SELLING PROCESS

PROSPECT

PRE-APPROACH

MEETING OBJECTION

CLOSING THE SALES

FOLLOW-UP

66
[1] PROSPECTING:-

The first step is to develop a list of existing

prospectus and potential customer having need of the
product purchasing power, intension to pay and
authority to purchase. Prospectus can be qualified by
examining their financial ability volume of business
special requirement, location and little hood of
continues business.

[2] PRE-APPROACH

Once prospectuses are located and qualified

salesman should find out his needs and problems and
to be solved them. He should find out their habits.
Nature behaviour etc. On the basis of adequate
information of the customers salesman can prepare
his plan of sales presentation or interview on the basis
of this pre-approach.

[3] APPROACH SALES PRESENTATION

The third step is the stage where the

salesman comes face to face with the prospect
customers. This point consists of the two major parts
obtaining as interview and the first contract. The
salesman may use various means of obtaining
interview generally in EUREKA FORBES LIMITED. The
salesman directing goes to the house of prospective
customers, introduce himself with the interview what
is more important here first contact. Salesman must
be able to attract prospects attention and get him
interested in the product.

67
[4] SALES PRESENTATION

Once the salesman has sought and found

potential customer and they has matched their wants
with his product he is ready to formally present
product of company to the customer. EUREKA
FORBES LIMITED, the salesman present the sales in
such a way, which is closely related to buying, process
of customers. It is presented in the language that
prospect can understand easily. They adopt sales
interview generally through AIDAS theory, securing
attention is the first step after that to create interest is
the second step. Many devices are used to arouse and
increase interest in the product salesman of EUREKA
FORBES LIMITED is doing this through frying and
interaction sales talk as well as through actual free
demonstration of the product and its operation
wherever feasible.

[5] MEETING OBJECTIONS:-

Objectives and reactions represent feedback

to salesman communication. They reflect growing
interest of the customer in the product. The salesman
of EUREKA FORBES LIMITED welcomes these
objections and reactions because unless the objection
is satisfactory solved, the sales cannot take place.
Prospects that refuse objections are easier to satisfy
than a prospect that shows not any interest in the
product.

68
[6] CLOSING THE SALES

The close is the act of actually getting the

prospects assent to buy the product. It is very good
efforts so far made by the salesman and is therefore
the climax of the entire sales process. Here salesman
watches for every sign which may indicate that the
prospect is willing to buy and apply to close. He also
remembers that initiative must be come from him.
According to EUREKA FORBES LIMITED, a sale is
never complete until the product is finally in the hands
of a satisfied user. Salesman alone can assure such
competition of sales.

[7] FOLLOW-UP

The purchase decision does not complete the

salesmans task. In EUREKA FORBES LIMITED, he
writes the order, arranges for dispatch and delivery of
product, assures buyer on the wisdom of his decision
and minimize his dissatisfaction if any. The salesman
contacts the customer frequently to maintain his
goodwill and smooth relation over and above to solve
post sales problems the follow up is a good source of
feedback to the salesman.

69
Achievement:-

Eureka Forbes is now a Case Study in

Harvard Business School

Eureka Forbes Limited, the pioneer of Direct

Sales in India, entered the hallowed portals of Harvard
Business School by joining the band of select
companies which have become a case study in its MBA
classrooms. Today, 900 students at this globally
recognized center of business education, began
studying a case based on Eureka Forbes, titled
Managing the sales Effort written by Professor Das
Narayandas of this school, assisted by senior
researcher Kerry Hermann form the Global Research
Group.

Mr. Suresh Goklaney, Managing Director of

Eureka Forbes, himself an alumnus, was in Boston on
invitation form the Harvard Business School and said
The 5500 salespersons working for Eureka Forbes
whom we fondly call Euro champs will be delighted
that the unique and young company which they have
created over the last 24 years has been found worthy
by Harvard Business School to write a case study on.
Eureka Forbes, about to go into its Silver Jubilee year,
has notched up an impressive turnover of Rs. 6.1
Billion (Rs. 610 crores) selling premium life style
products like water purifiers and vacuum cleaners
which bring better health to the families of their
customers. In the growing sunrise markets of water
purification and vacuum cleaning, Eureka Forbes
enjoys market shares upwards of 70% through its
brands Aquaguard and Euroclean respectively. In the
year 2004, Aquaguard was choosen as a
Superbrand by a panel of eminent persons in the
Indian industry.

70
71
 PUBLICITY AND PUBLIC RELATION

Sr. No. Particulars

[1] PUBLICITY

[2] Introduction

[3] Importance of Publicity

[4] Benefits of Publicity

[5] Limitation of Publicity

[6] PUBLIC RELATIONS

[7] Introduction

[8] Objectives of Public Relation

[9] Parties of Public Relation

[10] Major tools of public relation in

marketing

PUBLICITY

INTRODUCTION:-

Publicity is also called marketing public

relation, publicity is not form by the organization, and
publicity comes form news reporters, columnist and
journalist people. It comes to the receiver as the truth
rather than as a commercial public relation and
publicity taken together become the forth major
ingredient of promotion mix. These activities are
however not controllable by the firm, every firm tries to

72
create a good relation as to give good publicity under
the social; marketing concept publicity and public
relation are assuming unique importance in the firms
as a part of promotion mix.

Defective products, unfair trade practice,

anti-social activities etc, will create bad brand image,
increased consumer protect, strict government
regulations and soon the firm having a poor public
image will have lower sales and lower profit.

IMPORTANCE OF PUBLICITY:-

Now a day in each and every company,

publicity is required, without publicity cannot increase
its production and cannot achieve its sales target and
profit. So each and every company tries to five more
and more publicity. Advertising is the main source of
publicity for EUREKA FORBES LIMITED.

By the way of advertising company want to

attract consumers and tries to increase sales volume
of which the company is able to increase its profit. So
publicity is helpful for making good public relation.
The company creates good public relations so as to
give publicity.

BENEFITS OF PUBLICITY:-

Publicity is essentially aimed at building

positive image, goodwill or favorable visibility has
acquired a sound footing to assist a company in its
marketing efforts.

Publicity is helpful in creating food public

relations. It is major ingredient of promotion mix. It is
nor personal stimulation of demand for a product,
service, or business unit. It helps in creating sales and
profit to the organization.

73
 In EUREKA FORBES LIMITED, through
publicity company has been able to achieve sales
target and also it is helpful in creating good public
relations.

LIMITATION OF PUBLICITY:-

The firm having poor publicity image will

have lower sales and lower profit. Unfair trade
practices often result in favorable publicity of a firm.
Defective product and product image also creates
negative publicity.

PUBLIC RELATIONS
INTRODUCTION

Public relation is another important

promotion tool which until recently was treated as a
marketing step child but not become an important
marketing function. The total process of building
goodwill towards business enterprise and securing a
right public image of the company is called public
relation. It is creating a favorable atmosphere force
complement advertising by certain communication is

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not possible without establishing and maintains
mutual understanding between the company and its
customers.

Public relation activities typically are

designed to build or maintain a favourable relationship
with its various publics, customers, stock holders,
employees, labor unions, the local community and the
government.

EUREKA FORBES LIMITED is also giving

importance to public relation because their processes
are nothing but it pays too much. In EUREKA
FORBES LIMITED, there is one separate department
for public relation and its staff is so busy in relation
with various public stock holders, employees,
legislators, etc.

OBJECTIVES OF PUBLIC RELATION:-

After each and every activity there should be

some objective. EUREKA FORBES LIMITED has also
some objectives for adopting public as major
marketing tools.

They are as follows.

To assist in the launch of new product

To assist in requisitioning nature product

To build up interest in product category

To influence specific target group

To build the corporate image in a way that project

favourable on its products.

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PARTIES TO PUBLIC RELATIONS:-

There are various public groups, which are

related to public relations. They are employees,
customers, share holders, community etc. EUREKA
FORBES LIMITED maintains the good relation with all
these parties in following way.

EMPLOYEES:-

It is the most important factor for smooth

function of business without employees. EUREKA
FORBES LIMITED is aware of significance of
employees because in the absence of employees the
production process and other activities of business
come to stand and end. EUREKA FORBES LIMITED is
maintaining good and harmonious relations with
employees so that they can give their best to the
organizations. EUREKA FORBES LIMITED provides fix
rate or wages, timely wages, extra benefit like facility of
loans contribution towards PF, Bonus, and
Commission etc.

CUSTOMERS:-

It is necessary to maintain contact with both

the actual and prospective customers EUREKA
FORBES LIMITED aims to create more and more
customers by fulfilling their needs and wants.
EUREKA FORBES LIMITED provides the after sales
service form time to time. It also service the customer
ego through giving best items.

GOVERNMENT:-

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 EUREKA FORBES LIMITED is maintaining
good relation with government by paying regular taxes
and following rules and regulations framed by the
government.

LOCAL COMMUNITY:-

EUREKA FORBES LIMITED recognized its

responsibility to community in which it is doing its
business. As their motto ALWAYS THE BEST their
remains nothing more to say about companys
relations with maintain the public interest which
creates good public relation. EUREKA FORBES
LIMITED provides good service to its customers on
regular basis.

SUPPLIERS, CREDITORS ETC:-

EUREKA FORBES LIMITED of course keeps

cardinal relations with its supplier to ensure regular
delivery of goods at reasonable price, preference in
case of material shortage, intimation about forth
coming shortages, information about the new
developed substitute, prolonged payment in case of
temporary liquidity crises. They people also maintain
food relations with creditors to ensure favourable term
of credit.

OTHER PARTY:-

Other party will include press, radio and TV

Company EUREKA FORBES LIMITED maintains
constant and cardinal relations with them. EUREKA
FORBES LIMITED gives regularly advertisement in TV,
Radio and Press.

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78
MAJOR TOOLS OF PUBLIC
RELATION IN MARKETING:-
There are various tools in marketing for
public relations. Some of them are as under.

Publications

Events

News

Speeches

Public Service Activities

Identity Media

Explanation regarding some of above is given as

under.

[1] NEWS:-
In EUREKA FORBES LIMITED, companys
professional also is to find and create favourable
points about company and prepare news in that point.
News generation requires skill in developing a story
concept and researching at extensively.
[2] Events:-
EUREKA FORBES LIMITED arranges special
events to draw attention to its new products or to
other activity of company. Event includes new
conference, seminars, exhibitions, competitions etc.
[3] Written Material:-
EUREKA FORBES LIMITED relies extensively on
written material to reach and influence their large
market. These include reports, broachers and
literature.

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 CONCLUSION

On the balls of the comprehensive research of

the EUREKA FORBES LIMITED, it can be concluded
that the position of the EUREKA FORBES LIMITED in
comparison to its competitors is very strong. The well
experienced, efficient and industrial sales force of
EUREKA FORBES LIMITED is the strength of it. They
are the first to introduce vacuum cleaner in India with
the direct selling as a greater tool of promotional mix.
In a very short span of time, they have achieved great
success.

Today the Vacuum cleaner & Water Purifier

have necessary requirement of the person who are very
much conscious about health rather than luxury item
its demand increasing day by day. With the increase in
demand may new companies have also entered in this
market so EUREKA FORBES LIMITED has to complete
with all these competitors very much.

EUREKA FORBES LIMITED has created good

brand age also. However one of their weak points is
less importance given to other tools of promotion mix
compare to direct selling.

Thus it can conclude that the company has

bright and prosperous future ahead.

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 SUGGESTIONS
From the overall study of the promotional
mix of the EUREKA FORBES LIMITED, it can be
suggested that,

[1] As it is good that they are giving too much

importance to personal selling but they have to give
importance to advertising and other tool at promotion
mix also. Because advertising and other promotion
tools has their own importance.

[2] In todays world consumer are becoming aware at

market and market policy. They want extra quality of
the product from the price, which they have paid.
People also like to get discounts, gift and other special
offer because it is their mentality hence the company
should adopt certain measures in order to give very
much importance to sales promotion activity because
it gives Incentives to Buy where as advertising
personal selling gives Reason to Buy.

[3] The company should increase compensation

provided to the salesman who will attract a better-
educated class and the existing salesman will work
with a motivation.

[4] Company should increase the training period

from six months to one year in some specific cases and
also company gives advertisement in newspaper
regularly rather than within a year.

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 BIBLIOGRAPHY

For getting the information regarding various

aspect of promotion mix in theoretical concept as well
as practical aspect, I have taken the reference of
certain books which are as follows.

[1] Marketing Management

By:- Philip Kotler

[2] Marketing Management

By:- S.A. Sherlekar.

[3] Website - www.eurekaforbes.com

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