STUDY OF VERTICLES AT EUREKA FORBES

Verticals at Eureka Forbes

Project Report On Eureka Forbes

By

Ujjwal Pandey
Roll No. PGFC1645

Eureka Forbes

Copyright@Inteshar Memon Page 1

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Executive summary
This project was done in Eureka Forbes, Dadari. The project was carried out to understand and
study of verticals in Eureka Forbes.

The main objective of the project was to study the secondary business of retail B2B and corporate
care division B2B and find out if any gaps exist in the current system. The primary data was
collected with the help of questionnaire and personal interviews. Secondary data was collected from
website of Eureka Forbes.

This report contains brief overview of Eureka Forbes. Its market trends, market share, competitor
analysis and a survey on consumer behavior about the water purifier of Eureka Forbes.

In retail division products goes through different channel people inside as well as outside company
people. So it was possible to get maximum input from retail division. Since the project given was
field project, the research is based upon informal interview of different people in retail hierarchy
also upon market observation.

This report is entails study and analysis of retail division, customer service and how bad after sale
service causes decrease in rate of product sales (Water purifiers) Report analyses inputs given by
different people involved in retail hierarchy and channel as well as market observation. This
analysis will help organization to understand the problem better and accordingly to take decisions to
eliminate service glitches and improve the service.

This project also contains industrial selling process, important aspects of industrial selling,
distributor management etc.

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COMPANY ANALYSIS

EUREKA FORBES LIMITEDthe Organization.

Eureka Forbes is Rs billion multi- product multi- Channel Corporation which is a part
of the Shapoorji-Palings Group which was set up in 1982, to market health and hygiene
products to Indian consumers. It has evolved as a leader in domestic and industrial water
purification system, vacuum cleaners, air purifiers and security solution.

Eureka Forbes were the first to introduce domestic Water Purification System (1984)- the
Aqua guard model-as well as it revolutionized the Indian market by introducing products
like Home Cleaning System (1982), and Air Purification System (1994). In order to introduce
these previously unknown products to society in which nationwide commercial campaigns
were impossibility, the company had to pioneer another innovation- directing sealing. The
crops of suit- clad Eureka Forbes salesmen were the first such in the country and were
tremendous success. They are now- Asias largest direct selling organization with a 5000
strong direct sales force touching 1.25 million Indian homes and adding 1,500 customers
daily. Such was the success of Eureka Forbes that Aqua guard has now become a synonym
for water purifier in India, like Xerox for [photocopying]

The promise was clear: To create a company that wouldnt be about bricks, mortar or
sales graphs, but driven by something for more potent. Something that would stand the
would stand the test of time: relationships

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DIRECT MARKETING
Eureka Forbes followed the globally tried and tested direct selling route for marketing
its products in India, thus becoming one of the first direct selling companies in India. Vacuum
cleaners for water purifiers were rather new concepts for India consumer, who had till then
followed only the traditional methods of cleaning and filtering. Therefore, Eureka Forbes had
to first establish the concept of vacuum cleaners and water purifiers in India before it could
sell Eureka is a brand. The company believed that its core strength was its people. It
employed dynamic, highly motivated individuals, called Euro champs who projected. The
image of The friendly man from Eureka Forbes. Thus, for the average Indian consumer,
Eureka Forbes become synonymous with the smartly dressed salesman who come to their
houses and cleaned up things in a jiffy or showed how air/water purifier were indispensable.

Euro champs initially targeted the metros but soon began visiting smaller cities and
towns also commenting on the decision to diversity into bottled water company sources said
that it was only to strong then the core products by capitalizing on their brand image.
Goklaney said In the water category, I will conduct activities which strengthen my core
products. How I do that and what I do is a matter of strategy. According to company sources,
Eureka Forbes not only had the financial strength, but also a strong network to sales
executives to push its new products into the market. The companys decision to enter the retail
business was primarily the result of its launch of Tronada vacuum cleaners and Aqua Flo
water purifier in 1995. Eureka Forbes had utilized the retail route for this range, mainly to
cater to the industrial segment. Over the years, the retail business assumed greater significance
and by 1999, around 5% of the companys sales came from the 2500- strong dealer network
in1999. Eureka Forbes ltd. The leading vacuum cleaner and water/air purifier equipment
company, announced a major policy change that came as a surprise to the Indian corporate
world. The company, regarded as the pioneer of direct marketing in India, was planning to
focus more on the retailing business in the future. Commenting on this decision, & Goklaney,
Marketing Director, Eureka Forbes, said Direct sales permits us to exploit only the top end of
the market. This move was in accordance with the companys plans to increase the validity
of its products. The company planned to make its products available in retail outlets through
its dealer network, spread across 2,600 dealers.

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Eureka Forbes Friend for Life

Customers have always been the center of business for ELF, they strive to be in close
and constant touch with have also taken initiative to educate their customers to change their
perceptions and practices. According to the ELF officials A sale is only the beginning of the
relationship , however company makes specials efforts to let the bonds of friendship endure
through their service. Everyone at EFL strive hard to make a customer there Friend for life.
Eureka Forbes have rechristened their offices to CRS (Customer Response centre making
them the hub of all customer centric efforts. A significant part of their revenues comes from
relationship marketing including service contracts, spares and accessories sales, products up
gradation and new references. As more channels to reach out to customers were introduced,
organization was restructured to harmonize these multiple avenues of interaction and present a
single face to the customer is every ones customer under this process of convergence

A 5 billion multi-product, multi-channel corporation.

Operating in over 92 cities, with over 6000 employees.

Pioneers & leaders in water purification systems, vacuum cleaners & air purifiers.

Pioneers in direct selling - Asia's largest direct selling organization - 5,000 strong

direct sales force touches 1.25 million Indian homes, adding 1,500 customers daily.

Customer family now numbers over 5 million - enduring relationships as 'Friends for

Life'.

Expanded channels that reach out to customers to include a 3,800 strong dealer sales

network. A 58 distributor strong institutional sales network;

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Service at your doorstep

Indias largest after-sales service network - over 650 Service Centers

3,000 trained technicians make 10,000 calls a day

Single number access - 24 hours in 8 major cities - 3988 33 33
Only genuine spare parts
Free routine check-ups and free service camps
Annual Maintenance Contracts - the largest in the country
Mobile service vans

A specialized service by Eureka Forbes to provide all the information about Eureka
Forbes products and services at one single number - available 24 hrs.*365days.

The Euro Help Line provides the following:

Gives complete information about products and services

Locations of Customer Response Centre or Sales offices, timings, contact persons, etc.
Solutions to simple problems on the spot
A single point solution to customer queries or calls
Information on status of complaints and requirements

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MANAGEMENT STRUCTURE

CHAIRMAN
Pallonji Mistry

MANAGING
DIRECTOR
Suresh Ghoklani

C.E.O
Aslam Karmani

NATIONAL NATIONAL
SALES SALES
MANAGER MANAGER
AjaySharma Ravi Kumar

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VERTICLES OF EUREKA FORBES

All Eureka Forbes products are sold through 3 major sales verticals. These verticals generate
maximum revenues for company. These are

DIRECT DIVISION
MAIN CONSUMER DIVISION
DIVISION CORPORATE CARE
DIVISION

To support these verticals, there are 7 different support divisions. They are as follows

Service
Customer Relation
Support R&D
Divisions Manufacturing
HRD
Finance

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There are 4 subdivisions in consumer division. They are

CONSUMER
DIVISION

RURAL TRADITIONAL
BUSINESS
PARTNER
NEW CHANNEL
CHANNEL RETAIL
CHANNEL

1. Franchise Business partners

These are non- selling division of consumer division. This division takes care of after sales serv
Servicing part is delegated to some independent business units which are specialized in servicin
consumer durables. These are called as Service Business partners or just partners. Previously there
known as servicing franchise. There are in all about 14 business partners in Mumbai. There should
serviceman among 650 customers. These servicemen are trained by Eureka Forbes and are paid b
Business Partners.

2. New Channels
These are also advance distribution networks which are formed for distributing non traditional
outlets. Accordingly they are classified into three divisions. They are NC1, NC2 and BPCL
department

NC1 This includes distributing products for Modern Organized Retail. Modern Organized
retail consists of Organized retail outlets like Hyper city, Shoprite etc. These are managed by
different managers and distributers.

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NC2 This includes small scale institutional selling. Products are sold through shops other
than consumer appliances shops. These shops are places where consumers buy utensils or
furniture. The idea behind this is, consumer will buy furniture when there must new place, and
when there is new place there must be requirement for water purifier. When a person will see
a water purifier in furniture shop, he wont go other place to buy water purifier. So here a
consumer will buy water purifier from that shop itself.

BPCL Division -- This division is formed to manage distribution through BPCL gas network.
BPCL delivery boys deliver gas cylinders into houses. So company tied up with BPCL to use
delivery people of BPCL as salesmen for Eureka Forbes products by giving little part of
profits.

3. Rural channel
Rural channels are to provide rural customers with somewhat customized products. Urban
channels include distributor who like to do business only in areas where they have high
concentration of customers. So to serve rural population of customers there was requirement
of different kind of distribution network with different set of characteristics.

1. Traditional retail Division

Traditional channels include selling through regional general retail outlets. These outlets are
small to medium size consumer shops with limited target customers. Shops involved in this
channel are consumer durable shops, utensils and house appliances shops. Distribution
channels used is traditional one. That is,

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MANUFACTURING DISTRIBUTORS RETAIL

BELOW IS THE DISTRIBUTOR LIST AT MUMBAI

Sr Distributor Category Area covered

no
1. General electronics water purifier Mulund-CST
2. KALPANA MARKETING water purifier Dadar-Borival
3. Hans marketing water purifier Dahisar-dhanu-palghar
4. Phoenix marketing water purifier Thane-badlapur
5. Prakash enterprise water purifier New Bombay-panvel
6. Sanjay agency water purifier Raigad district

Retail Hierarchy at regional level

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Supply Chain

1. Almost all products are manufacture in Aquamall/ Aquatech factories. They are situated in
many places. They were situated in Baddi but now it is shifted to Deharadun.

2. For South and south west part of India, major company warehouse is at Bangaluroo. After
manufacturing of products, they are stored in Bangaluroo warehouse.

3. After quotation by state head, products are transferred to regional warehouse. In case of
Mumbai area (M1 & M2), the warehouse is in Panvel.

4. After stock reaches regional warehouse, distributors give out orders. These orders are
managed by Area Head and Territory sales In-Charge.

5. After distributor receives goods or stock, he distributes stock among retailer into his
authority.

6. Once retailer receives stocks, he sales it off to end user i.e. consumer.

This how a product reaches final consumer from company. But here point to be noted
distribution channel for every category of product is different. There different distributors for
respective products. For example there are different distributors for Water purifier no- electric,
electric water purifier and vacuum cleaners.

Installation and After-sales service: For each product, a sales person or here ISP must give
demonstration of that product. After a customer decides to buy that product, here water
purifier, a technician from the company has to go to customers place and has to install that
water purifier within 24 hours of purchase order. Also along with purchase order a customer
also get 1 year free maintenance contract. According to contract servicing of a product is free
for 1 year of time span. In case of water purifiers, the Candle i.e. purifier chamber must be
cleaned in every 6 months. So its very important that a technician must clean or replace
cartridge after 6 months of purchase or else water will not be as pure as promised by Eureka
Forbes.

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Welcome to the World of Forbes Pro Solutions

Forbes Pro Solutions is a part of Eureka Forbes Limited, your one stop shop for Mechanized
cleaning solutions, Safe drinking water, Facility management and hospitality concepts, water
& waste water treatment plants & Railways solution.

Our commitment to customers is backed by over 25 years of Eureka Forbes expertise, a

nationwide service network and strategic alliances with world leaders. Whatever
business you are in, our comprehensive range of solutions & services enables you to
maintain a hygienic, safe and productive work environment.

Forbes Pro Solutions:

Welcome to the World of Forbes Pro Solutions

It took many years of hard and dedicated work for Forbes Pro Solutions to achieve its pioneer
- ship position in the world of professional cleaning equipment and Railways solutions also
with a high degree of corporate excellence in Facility Management, Concept and Hospitality
Solutions, Water and Waste Water Solutions. We know, therefore, that success doesnt come
easily and can never be taken for granted. This is why we strive for excellence in everything
that we do not only by ushering the best of the products, technologies and services but also the
experience to the industry, as also in all aspects of our business.

We expect our customer service personnel to be knowledgeable, polite and efficient. We

expect our back-office team to be ready and fully capable of supporting our field sales and
service people, and we are constantly examining ways of improving the flow of our processes
and systems. Nothing is ever taken for granted, least of all success.

A Complete range of Solutions

Today the product and services portfolio is larger and deeper than at any time in the divisions
long history. From light weight backpack vacuum cleaners to heavy-duty road sweepers in the
cleaning technology solutions, Online cooler cum purifiers to Large capacity storage cooler
cum purifiers in the water solutions, Water and Waste Water Treatment plants from the Water
projects stable, Facility Management, Concepts and Hospitality Solutions from the Forbes
Facilities and Concept Solutions, Varied models for the Railways from the Railway Projects.
Our services and Products provide cost effective, productive, and environmentally friendly
solutions for cleaning professionals, industrial applications and all allied institutions.

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Vision

Forbes Pro Solutions is today a strong and successful company, thanks to its dedicated,
qualified and highly trained professional sales cum Hygiene Consultants who have through
the years ensured that our clients get the best of Complete hygiene Solutions that has
resulted in utmost client satisfaction. This corporate strength allows us to devote the resources
needed to maintain our product leadership and to efficiently serve the needs of the industry.
While our product range is wider and deeper than ever before, we continue to strive for
improvement so that the total cost of cleaning can be lowered and the efficacy of the same is
maintained at the highest levels. We aim towards excellence in everything we do, and we
intend to serve you even better in the future. Industry leadership, after all, is not merely status,
it is a responsibility.

Experience matters

It is important for cleaning professionals to know that they are dealing with a company that is
reliable, financially sound and that has years of experience in this industry. Having been in
business for over two decades, Forbes Pro Solutions meets all these criteria. This deep and
fundamental knowledge is unmatched and irreplaceable.

Gen-Next Solutions at all times

Products and Service innovation are of prime importance to Forbes Pro Solutions in its drive
to remain at the leading edge of technical know-how. By maintaining a constant focus on the
needs of our customers, we aim to lower the running cost of our product and services through
efficient and time saving solutions and products. At the same time developing new concepts,
product portfolios and services, we are continuously looking for ways to improve what we
have as a Complete Solutions that we already have in our portfolio. Being never satisfied
with the status quo is one way of maintaining our competitiveness in the Industry arena.

Our commitment to customers is backed by over 27years of Eureka Forbes expertise, a

nationwide service network and strategic alliances with world leaders. Whatever business you
are in, our comprehensive range of solutions enables you to maintain a hygienic, safe and
productive work environment.

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Forbes Pro Cleaning Technology Solutions:

Welcome to the World of Forbes Pro Cleaning Technology Solutions.

Forbes Pro Cleaning Technology Solutions has the range of products to provide
comprehensive solutions required for Hospitality, Manufacturing Industry, Building Service
Contractors, Process Industry etc., which includes, Commercial & Industrial Vacuum
Cleaners, Carpet Cleaners, Scrubbing Machines, High Pressure Cleaners, Road/ Street
sweepers, Beach cleaners, etc.
Hygiene Chemicals used for Housekeeping is catered to the clients through our SPARKLEEN
range, a value for money product.

Forbes Pro Cleaning Technology Solutions along with its globally renowned partners
provides the Best Total Cleaning Solution to the Indian Industry segments.

Forbes Pro Cleaning Technology Solutions Our USP

One stop shop for all cleaning needs to provide a total solution.
Provide consultancy to improve the productivity.
To provide International standard cleaning Products, chemicals and total solutions.
Established service network across the country to provide service with the least
response time.
Regular ongoing training to your staff at your premises on the optimum usage of
chemicals and cleaning equipments.
Providing cleaning equipments and Hygiene Chemicals adhering to International Safety
Norms.

Our Product Range: An exhaustive array of Products to suit most applications

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FINDING & RECOMMENDATION FROM THE

PROJECT

As per the survey done following were the findings and recommendations of
the survey:

Price structure should be revised

Customer service is something which company should pay more

attention at.

All models not available for display in retail outlets and also brochures
should be made available.

Sales person at the retails counters should have proper knowledge

about the product.

Should focus more on brand awareness.

Technological & other aspects should be re consider and re- christened.

To know about the buying behavior of customer regarding purchase of

water purifier

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BIBLIOGRAPHY

WEBSITES

www.eurekaforbes.com

www.customercomplaint.in

www.golakindia.com

www.icmrindia.org

www.compareindia.com

www.pureit.in

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