Eureka Forbes

Group 3
 Introduction

• The role of sales rep and the design of effective sales management and
compensation system.
• EFL – Established in 1982 as a JV between Forbes group and Electrolux of
Sweden.
• Leading products – Euro clean vacuum cleaner, industrial cleaning products
• Embraced the customer as “Friend for Life”
• EuroClean Bullet – ‘Deep Cleaning+’ Technology
• Business Strategy:
Direct Sales No Middlemen
Performance linked pay
system

EuroChamps:
EFL recruited primarily young men from their early 20s from lower middle class
homes. Able to read and write in English and local language. Customer Sales
specialists, responsible for front line sales.
 Analysis of Euro Champ Jobs & Critical
Evaluation
• Direct sales approach followed by the company and performance linked pay system,
EuroChamps focussed on just targets.
1. Selection based on subjective judgements of the people, could lead to inefficiency in
recruitment.
2. Inadequate training, EuroChamps ignored the task of responding to customer objections.
3. Lack of clarity and lack of communication of company’s expectations.
4. Poaching in the company due to result more important than the process.
5. Less attention given by EuroChamps to relationship building.

“High pressure, cyclical psychological pressure job”

Situational Analysis
 Evaluating the New Compensation Scheme

• Instead of compensating the employees solely on the basis of sales volume,

the new system would award points for successful completion of each stage
of the selling process and link compensation to the points scored.
• Bigger goals were divided into smaller targets so that the EuroChamps’
motivation and spirits are kept high. Embraced the customer as “Friend for
Life”
• Daily target setting and recognition by superiors was done.
Strengths of the New Compensation System
• Clarity of the various processes of sale and how each stage has point to be earned.
• Every stage was important so there would be no usage of unfair means, like poaching
another employee's customers and regions.
• Daily recognition of performance would put a control on low performers and hence
would lead to low attrition.
• Productivity of low performers would be improved.
• Number of daily demonstration would increase.
• Customer engagement time would be enhanced.
• Morale and Sprit of the sales team would be improved.
• Sales productivity and overall sales quality will improve.
 Limitations of the New Compensation
Scheme
• EuroChamps focus of “making sales” would get shifted to earning more points, with
no end result.
• Nonperformers with substantial points. but without any actual sale would get
rewarded.
• Daily filling of activity reports forms by EuroChamps was time consuming.
• Daily monitoring and tallying the points of EuroChamps performance required
considerable time in paper work and also training in using the spreadsheet of the
computerized reporting system.
• No method to prevent the EuroChamps from overrating their efforts in order to gain
more points and earn more money.
Problem Identification & Solution
Reforms in New Compensation
THANK YOU