Sales : Eureka Forbes Ltd

Eureka Forbes Eureka Forbes Ltd.Ltd.

Group VI:Group VI:

About Eureka ForbesAbout Eureka Forbes

EFL was started in 1982 as a joint EFL was started in 1982 as a joint venture between the Forbes (India) venture between the Forbes (India) Group and Electrolux of Sweden.Group and Electrolux of Sweden.

Business under Mr. Suresh Business under Mr. Suresh Goklaney’s leadership .Goklaney’s leadership .

EFL installed a market barometer EFL installed a market barometer system in 2003 .system in 2003 .

Company ProfileCompany Profile The products basically cover The products basically cover Vacuum Vacuum

Cleaners, Water Purifiers, and Air Cleaners, Water Purifiers, and Air Purifiers.Purifiers.

EmployeesEmployees 9,4009,400 Workplace locationsWorkplace locations 243243 Business unitsBusiness units 44 Unique rolesUnique roles 106106

Concept of Concept of ‘councillors’ ‘councillors’ andand ‘‘senators’senators’

Sales ApproachSales Approach

Involves three steps:Involves three steps: Cold calls are madeCold calls are made Product demonstrations conducted, Product demonstrations conducted, EuroCleans (Vaccum Cleaners) and EuroCleans (Vaccum Cleaners) and

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

Why not retail?Why not retail? Selling the concepts relied on extensive Selling the concepts relied on extensive

presentation, demonstration, and presentation, demonstration, and customer objection handling.customer objection handling.

It can only be done through It can only be done through considerable human interaction and considerable human interaction and there is there is

just one place thatjust one place that customers have customers have

this time on hand: this time on hand: at homeat home.” .”

ORGANIZATIONORGANIZATION

Roles and Responsibilities Roles and Responsibilities (at regional level)(at regional level)

Customer Sales Specialist (EuroChamp)Customer Sales Specialist (EuroChamp) Group LeaderGroup Leader Team LeaderTeam Leader Head Customer Response CentresHead Customer Response Centres Deputy Division Sales ManagerDeputy Division Sales Manager (DDSM); (DDSM);

Division Sales ManagerDivision Sales Manager (DSM)(DSM) Area Sales Manager (ASM) andArea Sales Manager (ASM) and Senior Senior

Division Sales ManagerDivision Sales Manager (SDSM)(SDSM) Regional Sales Manager (RSM)Regional Sales Manager (RSM)

The EFL Sales OrganizationThe EFL Sales OrganizationEFL is split into 3 geographical regions, EFL is split into 3 geographical regions, each led by a COO.each led by a COO.Common central functions of finance, HR, Common central functions of finance, HR, marketing, SCM, IT and BD support all 3 marketing, SCM, IT and BD support all 3 divisions.divisions.

The EuroChamp, who is the customer The EuroChamp, who is the customer sales specialist takes the product to the sales specialist takes the product to the customers’ homes, demonstrates it, and customers’ homes, demonstrates it, and closes the sale.closes the sale.

Four EuroChamps make up a group led by Four EuroChamps make up a group led by a group customer sales specialist who a group customer sales specialist who functions as group leader. functions as group leader.

The EFL Sales The EFL Sales OrganizationOrganization

Group leaders also have sales quotas.Group leaders also have sales quotas.

Team leaders oversee 2 groups, 1 in which they Team leaders oversee 2 groups, 1 in which they function as the group leader. function as the group leader.

Each head of a CRC (HCRC) oversees 3 team Each head of a CRC (HCRC) oversees 3 team leaders.leaders.

The EuroChamp is focused solely on sales. The The EuroChamp is focused solely on sales. The next three levels above him need to sell and next three levels above him need to sell and manage.manage.

HCRCs are managed by DDSMs or DSMsHCRCs are managed by DDSMs or DSMs

The DDSMs and DSMs by the SrDSMs or ASMs The DDSMs and DSMs by the SrDSMs or ASMs who report, in turn, to a regional head. who report, in turn, to a regional head.

The EurochampThe Eurochamp

Attitudes and skills required by the Attitudes and skills required by the EurochampEurochamp

Minimum 2 years university education, Minimum 2 years university education, graduates are preferredgraduates are preferred

High achievement driveHigh achievement drive Reasonable spoken communicationReasonable spoken communication

and interpersonal skillsand interpersonal skills PerseverancePerseverance Financial requirementsFinancial requirements

Routine Activities of a Routine Activities of a EuroChampEuroChamp

1.1. Morning field meeting.Morning field meeting.2.2. Cold calling.Cold calling.3.3. Daily activity reports, depositDaily activity reports, depositing ing payments, payments,

and request delivery for closed sales.and request delivery for closed sales.4.4. Role-playing and mockRole-playing and mock de demonstrations for monstrations for

new recruits .new recruits .5.5. Keeping up to date with product Keeping up to date with product

information in terms of innovation and information in terms of innovation and upgrades.upgrades.

6.6. Closing sales, collecting payments, making Closing sales, collecting payments, making courtesy calls oncourtesy calls on existing customers, and existing customers, and generating references or retraining generating references or retraining customers.customers.

Time Estimates for Euro Champ Time Estimates for Euro Champ Daily TasksDaily Tasks

TrainingTraining New recruits are given 2 days to go through the New recruits are given 2 days to go through the

handbook.handbook.

They then spendThey then spend 1/2 weeks shadowing a senior 1/2 weeks shadowing a senior sales representative before being assigned their sales representative before being assigned their own sales territories and quotas.own sales territories and quotas.

A 7-day training program calledA 7-day training program called “ “My First Week at EFL” is provided My First Week at EFL” is provided and 2 days are given to absorb the and 2 days are given to absorb the information from this training.information from this training.

Supplementary materials are distributed during Supplementary materials are distributed during the program including a booklet detailing EFL’s the program including a booklet detailing EFL’s code of conduct and information on the code of conduct and information on the OYBS(Own Your Bike Scheme). Manuals are OYBS(Own Your Bike Scheme). Manuals are translated into the local languages.translated into the local languages.

SupervisionSupervision

Reporting and feedback is 3 times in a day,Reporting and feedback is 3 times in a day,

1.1. At the morningAt the morning meeting before heading out meeting before heading out on cold-calls; on cold-calls;

2.2. At the midday meeting to report on door At the midday meeting to report on door knocking resultsknocking results and morning demos; and morning demos;

3.3. And at the end-of-day reviewAnd at the end-of-day review to register afternoon follow to register afternoon follow ups, demos, and salesups, demos, and sales numbers. numbers.

Quotas and TerritoriesQuotas and Territories

Annual quotas are broken down into Annual quotas are broken down into monthly requirements of 60 product monthly requirements of 60 product demonstrations anddemonstrations and a minimum of a minimum of 10 sales closings per month. 10 sales closings per month.

The EuroChamps are expected to The EuroChamps are expected to average 50 customer contactsaverage 50 customer contacts per per day.day.

Evaluation and Evaluation and CompensationCompensation

A EuroChamp’s base compensation A EuroChamp’s base compensation includes :includes : SalarySalary rent allowancerent allowance a special paya special pay a demo allowance (for customer sales a demo allowance (for customer sales

specialist probationers),specialist probationers), a leave travel concession, a leave travel concession, a holiday bonus, a holiday bonus, medical reimbursement, medical reimbursement, and, when applicable, a travel reimbursement and, when applicable, a travel reimbursement

(or, for representatives who did not possess a (or, for representatives who did not possess a 2-wheeler, a reimbursement of travel 2-wheeler, a reimbursement of travel expenses up to Rs. 600 per month) .expenses up to Rs. 600 per month) .

Evaluation and Evaluation and CompensationCompensation

Base salary is scaled against length of service, Base salary is scaled against length of service, total sales, and average sales over thetotal sales, and average sales over the last 6 last 6 months .months .

A contingency compensation scheme based on A contingency compensation scheme based on number of units sold could be invoked in the number of units sold could be invoked in the event of marriage or hospitalization. event of marriage or hospitalization.

Confirmed EuroChamps who maintain Confirmed EuroChamps who maintain contact with or retrained a customer 3 months contact with or retrained a customer 3 months and 6 months from date of purchase can and 6 months from date of purchase can earn an additional Rs. 30 and Rs. 40, earn an additional Rs. 30 and Rs. 40, respectively. Payment under this plan, respectively. Payment under this plan, termed the Friendship Chain, can not termed the Friendship Chain, can not exceed Rs. 600 per month.exceed Rs. 600 per month.

Evaluation and Evaluation and CompensationCompensation

An averagely successful salesman An averagely successful salesman earns two-thirds of his monthly earns two-thirds of his monthly earnings through commissions.earnings through commissions.

This emphasis has an automatic This emphasis has an automatic sieving effect: anyone who cannot sieving effect: anyone who cannot learn to sell does not get commission learn to sell does not get commission and hence earns less and exits very and hence earns less and exits very quickly.quickly.

EFL Compensation Scheme: EFL Compensation Scheme: Front Line, (Rs. per month, Front Line, (Rs. per month,

approximate figuresapproximate figures

EFL Compensation Scheme: EFL Compensation Scheme: Front Line, (Rs. per month, Front Line, (Rs. per month,

approximate figuresapproximate figures

EFL’s Compensation PlanEFL’s Compensation Plan Doesn’t reward only on sales volumeDoesn’t reward only on sales volume Points are given on successful completion of Points are given on successful completion of

various stages of selling process andvarious stages of selling process and compensation linked to the points scoredcompensation linked to the points scored

Sample of Daily Activity FormSample of Daily Activity Form

SummarySummary It has well organized sales force which includes It has well organized sales force which includes

focused leadership by focused leadership by EuroChamps.EuroChamps. Each Each EuroChamp has EuroChamp has the groups working under the groups working under

him.him. EuroChamps have strict daily routine activities EuroChamps have strict daily routine activities

like Daily activity reports, collecting payments like Daily activity reports, collecting payments etc.etc.

They provide well organized training programs They provide well organized training programs for new recruiters.for new recruiters.

Work takes place under proper supervision.Work takes place under proper supervision.