Eureka Forbes
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Eureka Forbes Ltd.
Managing the Selling Effort
SHRM Case Submission
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17-Jul-12
PGPX –VII (12-13) – Term I1
Aditya Bansal ( 6612006)
Problem Statement
Eureka Forbes Ltd. (EFL), a joint venture between Forbes Group and Electrolux formed in 1982, is the leading company in India in consumer durable products like vacuum cleaner and water purifier.
Over the years, EFL has effectively utilized the direct selling approach by setting up the largest field sales force in Asia comprising of 5,000+ sales representatives called ‘Eurochamps’ for its two main products, EuroClean vacuum cleaner and AquaGuard water purifier. The image of a Eurochamp, wearing a white shirt and a dark tie, with a demo kit in his bag, going from door to door, has been ingrained in the minds of Indian consumers permanently. This goes with the motto of the company to consider the customer as “A Friend for Life”.
By late 2003, however, the company was faced with multiple issues like declining sales volumes, falling sales closure rates and high sales rep attrition. The company also witnessed a declining performance of the sales force across many of EFL’s territories. There were instances of missing sales and other such irregularities by the Eurochamps. To counter this, Mr. Suresh Goklaney, the CEO of the company, came up with a new sales representative evaluation and compensation system called “Bettering the Best”. The new system called for rewarding sales reps for process adherence and sales both, in contrast to the earlier system based on sales only.
The key decision facing the EFL management team is to assess the effectiveness of the new system and decide whether to rollout the system nationwide and across all product lines. The company will also have to determine the manner of rollout of the new system.
Theoretical Framework
The case revolves around maximising the results of the sales force. The HR discipline provides us with
Eureka Forbes Ltd.
Managing the Selling Effort
SHRM Case Submission
[pic][pic]
17-Jul-12
PGPX –VII (12-13) – Term I1
Aditya Bansal ( 6612006)
Problem Statement
Eureka Forbes Ltd. (EFL), a joint venture between Forbes Group and Electrolux formed in 1982, is the leading company in India in consumer durable products like vacuum cleaner and water purifier.
Over the years, EFL has effectively utilized the direct selling approach by setting up the largest field sales force in Asia comprising of 5,000+ sales representatives called ‘Eurochamps’ for its two main products, EuroClean vacuum cleaner and AquaGuard water purifier. The image of a Eurochamp, wearing a white shirt and a dark tie, with a demo kit in his bag, going from door to door, has been ingrained in the minds of Indian consumers permanently. This goes with the motto of the company to consider the customer as “A Friend for Life”.
By late 2003, however, the company was faced with multiple issues like declining sales volumes, falling sales closure rates and high sales rep attrition. The company also witnessed a declining performance of the sales force across many of EFL’s territories. There were instances of missing sales and other such irregularities by the Eurochamps. To counter this, Mr. Suresh Goklaney, the CEO of the company, came up with a new sales representative evaluation and compensation system called “Bettering the Best”. The new system called for rewarding sales reps for process adherence and sales both, in contrast to the earlier system based on sales only.
The key decision facing the EFL management team is to assess the effectiveness of the new system and decide whether to rollout the system nationwide and across all product lines. The company will also have to determine the manner of rollout of the new system.
Theoretical Framework
The case revolves around maximising the results of the sales force. The HR discipline provides us with