1. MARKETING ASSIGNMENT – 1
(Eureka Forbes Ltd)
- ADITYA JHUNJHUNWALA, 17001
Q1. SHOULD GOKLANEY ROLL OUT THE NEW “BETTERING THE BEST”
PROGRAM THROUGH THE ENTIRE SALES ORGANIZATION? WHAT
CHANGES WOULD YOU RECOMMEND TO THE CURRENT PLAN?
Mr. Suresh Goklaney, the CEO of the company, came up with a new sales representative
evaluation and compensationsystem 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. Mr. Goklaney expected his Euro Champs to not only focus
on sales but also on good customer relationship. At this time, The Old Compensation
Scheme was there for Eurochamps and base Compensation structure of EuroChamps
including salary, rent, leave allowance, holiday, and bonus. Commission was earned on
basis of sales volume. A EuroChamp could earn as much as two third of his monthly
earning in form of commissions. In a month, EuroChamp was required to give 60 demos,
do a minimum sale of 10 and have an average 50 customers contact. Thus, a lot of
emphasis were laid in number of sales done and earning in the new system bettering the
Best.
There were some limitations in the current plan system. So some of the recommendation
to the current plan could be –
o The new system gives proportionate weight to various components of sales
o Territory wise targets should be set for each component, as each territory is
different
o Time to be dedicatedfor each component should be considered and some changes
should be made as commented in the above table. – Some time component of
seasoned reps and leads should be dedicated for training
o Seasoned reps and team leaders should get points for every new rep under him
who stays beyond six months
o Salesmen would start increasing their points by performing easier activities more
like cold calling – So, beyond points, ratios like call conversion etc. should also be
analysed territory wise and weights should be adjusted accordingly
2. Q2. DEFINE THE ROLE OF THE EUROCHAMP. WHAT ARE THE SALES
TASKS THAT THE FIRM WANTS THE EUROCHAMP TO UNDERTAKE?
Euro Champs were customer sales representative who have the responsible of front line
sale. The Euro Champ task is result oriented, Euro Champs are selling the product door
to door they are focused just on targets. Lack of clarity and lack of communication of
company’s expectations lead to improper and inefficient performance of the Euro
Champs. The EFL Sales Organization EFL is split into 3 geographical regions, each led
by a COO. Common central functions of finance, HR, marketing, SCM, IT and BD
support all 3 divisions. The EuroChamp, who is the customer sales specialist takes the
product to the customers’homes, demonstrates it, and closesthe sale. FourEuroChamps
make up a group led by a group customer sales specialistwho functions as group leader.
Routine Activities of a EuroChamp –
o Morning field meeting.
o Cold calling.
o Daily activity reports, depositing payments, and request delivery for closed sales.
o Role-playing and mock demonstrations for new recruits.
o Keeping up to date with product information in terms of innovation and upgrades.
o Closing sales, collecting payments, making courtesy calls on existing customers,
and generating references or retraining customers.
Q3. WHAT ARE THE QUALITIES OF A GOOD EUROCHAMP? COMPARE AND
CONTRAST THE EUROCHAMP WITH OTHER EXAMPLES OF SALES
REPRESENTATIVES.
Some of the qualities of a good Eurochamps as compared to other same representative
that they possess are -
o The company chooses such Eurochamps that has edge to learn new things and
make himself advance as compared to the market
o These Eurochamps should Able to convince and engaged with the customer.
o The Eurochamps should have a proper behaviour and learn to sell perfect
products to the customers without being rude to them.
o Eurochamps also had proper knowledge of the product.
o These Eurochamps are able to give answer each question which is asked to them.
o They have a good communication skill and presentable skills
A normal sales representative of other brands usually doesn’t have proper dress code
which is given by the company they don’t have good communication skill so they are not
able to convinces their customer and explain their product, normal sales person some
time demotivated and rude but Euro Champ is always polite with customer and respect
them.
3. Q4. EXPLAIN THE REASONS FOR THE SALES PROCESS FAILURES THAT
GOKLANEY OBSERVED IN THE FIELD. WHAT ARE THE REASONS FOR
THE CURRENT SITUATION?
o Achieving maximum sales was objective, how it is achieved was not important
o The mail concern of the employee was to just complete the task that understand
the addressing the concerns of customers and winning their confidence.
o No impotence of goodcustomer relation was seenamong the employees, they were
interest only in making a sales deal.
o If a sale representative is not able to sell any product, he would not earn any
incentive, hence his moral would go down and his performance would further
deteriorate if he is not able to come up, and this will lead him to quit the
organisation.
o Compensation was directly related to the number of product sold.
Q5. DO YOU AGREE WITH THE FIRM’S CURRENT APPROACH TO
COMPENSATION? HOW DOES THE NEW PROGRAM CHANGE THIS
APPROACH?
CURRENT SYSTEM
o Current system focuses on highly result-oriented system where commission were
directly impacted by the number of sales done.
o Direct contact with customer is possible as there is no middle line distribution
o There is no limit to the commission one can earn as it is depended on number of
product sold.
o Transparent system of compensation where performance of each employee
o Compensation was directly related to number of product sold.
NEW SYSTEM
o Clarity of several of sales and how each stage has point to be earned.
o Daily recognition of performance would put a control on low performance and
hence would lead to low attrition
o Productivity of low performers would be improved
o Number of daily amount would increase
o Customer engagement and relationship would be improved
o Sales Productivity and overall sales quality will improve.
4. Q6. ASSESS THE OTHER ASPECTS OF THE SALES MANAGEMENT
PRACTICES AT EUREKA FORBES LTD. WHAT CHANGES WOULD YOU
RECOMMEND TO THE FIRM’S APPROACH TO RECRUITMENT,
TRAINING, SUPERVISION, EVALUATION, AND COMPENSATION?
There are various aspects in which Eureka Forbes has improved in terms of sales
management practices from its current system to the new systems but still are
many area in which Eureka Forbes can improve that in case of Recruitment,
training, supervision and compensation systems. The company instead of direct
sales can also focus on retail based or exclusively on online sales based, as this will
give comparative advantages compared with other competitors available in the
market.
Eureka Forbes recruitment process is not based on academic qualification. This is
mainly basedon subjective judgment of the people; this recruitment process is also good
but if they are also adding Academic criteria for their recurrent process then they also
take more effective Euro Champ. In addition, if they are start online requirement then
they are able to hire localemployee that is good for the company because they are easily
convince the localcustomer. The training which they received was not adequate. Due to
which it was observed that the Euro Champ ignored the art of responding to customer
observation. A new team or rather experienced team of supervised players should be
there so that they can correct their mistakes and guide them whenever that are in a
dilemma and help them in motivating themselves and give them new techniques on how
to present themselves to the customers to sell the respective product, which they are
demonstrating. The money amount should be increased so that the people are attracted
and work better, certain small gifts can also be given to them to other employees who
have achievedtheir target to a lesserextent as comparedto others so that they do not feel
bad about themselves, and think of leaving the company.
