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Eureka Forbes Limited:

Managing the Selling Effort
GROUP 4: Section-B

Gautam Mahesh 13P081
Gopesh Nakra 13P104
Satyajit Tripathy 13P109
Aviral Bansal 13P135
Jatin Gupta 13P145
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Case Context
Eureka Forbes, a direct-selling consumer appliances company
Rs. 5 billion of sales revenue for 2003-04
Largest field sales force in Asia

Business Strategy Direct Sales Approach
Targeting Customers Targeting customers of A-level cities
Sales Force Sales Reps (called EuroChamps) in their early
20s from lower middle class homes
Compensation Criteria Mostly performance linked variable pay
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Direct Selling @ Eureka
EuroChamps, the Sales Representatives recruited at a young age to groom them for
need-based selling
Expected to be achievement-driven and ambitious to generate leads
Immense job pressure: job physically, psychologically and economically demanding
EFL had extensive engagement programs for EuroChamps OYBS, Exclusive Clubs,
etc.
Well structured performance management system monetary and non-monetary
components
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Issues at hand
Sales volume on a decline
EuroChamps missing easy sales
Sales reps not trained well to handle customer objections
Territorial conflicts and saturation
Senior sales reps poaching territories of newly joined
Faltering performance of sales persons due to lack of proper supervision
EFL managers unable to find much time for field visits
Major salary being derived from commissions, thus high exits


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Need for a New Evaluation System
Declining sales closure rates
Attrition rates on a surge
Softening of revenues in Vacuum Cleaner category
Qualitative performance measurement completely ignored
Address the training related incapabilities of sales reps
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Bettering the Best Approach
New Evaluation criteria aimed at giving due importance to qualitative aspects of the sales
rep in addition to sales volumes
Compensation based on successful completion of various stages of selling
Objectives:
Motivating EuroChamps through fragmented target setting
Improving productivity levels of low performers
Rekindle competitive spirit of EuroChamps
Enhancing customer engagement time (> 70%)
Increasing daily demos
Providing for an effective evaluation system
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Analysis of the new approach
Quality driven approach How
they sell to How much they sell
Encourages supervisors to be more
active in the field
Hopes to improve the total sales
Financial rewards were insignificant
No incentive for high performers to
improve
Extra reporting efforts for
EuroChamps
Additional monitoring and tallying load
for EFL Managers
Reduced focus on core activities
Pros Cons
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Recommendations
Maintenance of a Centralized customer database to prevent territorial conflict
Increase incentives for points earned by EuroChamps
Focus more on training; On-the-job Training critical for EFL and EuroChamps
Focus on EuroChamps retention post 2 years of work as they were the backbone of
EFL
Maintain greater fixed pay structure in the initial years to decrease attrition to prevent
demotivation of young Sales Reps
Allot more time to EuroChamps for their core activities like demos and conversion
Set less ambitious targets for young EuroChamps to avoid Demotivation