A SIP Report On

SCOPE OF INSTITUTIONAL SELLING FOR WATER PURIFIERS & BUSINESS DEVELOPMENT THROUGH MALLS AND SHOWROOMS WITH SPECIAL REFERENCE TO EUREKA FORBES PRODUCTS

Submitted to
DATTA MEGHE INSTITUTE OF MANAGEMENT STUDIES, NAGPUR

Submitted by
ASHISH H. BARAPATRE (MBA-IInd year)

Under the guidance of

Dr. SHINEY CHIB

DATTA MEGHE INSTITUTE OF MANAGEMENT STUDIES, NAGPUR

CERTIFICATE

This is to certify that Summer Internship Project Report titled SCOPE OF INSTITUTIONAL SELLING AND BUSINESS DEVELOPMEN THROUGH MALLS AND SHOWROOMS is a bonafide work carried out by MR. ASHISH H. BARAPATRE of MBA- II (Marketing and Finance) of Datta Meghe Institute of Management studies in the partial fulfilment of Master of Business Administration course of University of Nagpur (2011 - 2013). He has worked under our guidance and direction. His work is found to be good and complete in all respect. During the period we found him hardworking, sincere and loyal. We wish him all the best for future.

Mr. Yaman Chawhan Project Guide and Area Head Eureka Forbes Ltd., Nagpur

Dr. Shiney Chib Project Guide and HOD, Datta Meghe Institute of Management studies, Nagpur.

DECLARATION

I, Ashish H. Barapatre student of M.B.A IInd YEAR of Datta Meghe Institute of Management Studied, Nagpur (2011-2013), Hereby declare that this project report SCOPE OF INSTIUTIONAL SELLING AND BUSINESS DEVELOPMENT THROUGH MALLS AND SHOWROOMS is written and submitted by me under the guidance of Mr. Yaman Chawhan and Dr. Shiney Chib (Project Guides). The analysis and interpretations in the report are based on both primary and secondary data collection. This project is not copied from any source or other project submitted for similar purpose.

Date: Place: Nagpur

Ashish H. Barapatre

ACKNOWLEDGEMENT

Every project has a number of persons involved in it, some directly others indirectly. Everyone has contributed to its success; the critics who spur you into action with renewed enthusiasm and the supporters who steadfastly encourage you all through till the end. I would like to take this opportunity to express my gratitude for all those who provided valuable criticism, appreciation and guidance to make this project a success. I express my gratitude to Mr. Yaman Chawhan, and Dr. Shiney Chib my Project Guides for their guidance, motivation and attention. They were very much approachable with all my doubts. I am thankful to all of my friends and colleagues for their help in completing this project work. Finally, I am thankful to my entire family members for their great support and encouragement.

Date: Place: Nagpur

Ashish H. Barapatre

TABLE OF CONTENTS

CHAPTER

PARTICULARS

PAGE NO.

INRODUCTION

ORGANISATION PROFILE

PRODUCT PROFILE

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4 5

OBJECTIVES OF STUDY MY TASKS AT EUREKA FORBES

13 14

RESEARRCH METHODOLOGY

16

OUTCOME

20

RECOMMENDATIONS

21

10

CONCLUSION

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11

BIBLIOGRAPHY

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INTRODUCTION

The Project is about institutional sales of water purifiers and business through malls and showrooms with special reference to the products of Eureka Forbes. The project is divided into two topics i.e. Scope of institutional Sales, and Business through malls and showrooms. As we know in institutional selling products are sold in bulk or in large volumes. Before going ahead let us see as to what an Institutional Selling and Institutional Markets are:Institutional Sales: - It comprises of selling of goods in large volumes with a shortest supply chain passing through various sales step where end party can be a user/ Consumer. Institutional Market: - As explained by Philip Kotler in his book of Marketing Management, the institutional market consists of schools, college and university hostels, hospitals and nursing homes, and other institutions that provide goods and services to people in their care. Therefore the first and foremost objective of my project was to identify the areas or market for Institutional Sales. For which I had to analyze the market or institutional buyers where water purifiers can be sold in bulk and make contacts with them. In these days the concept of corporate gifting has become very famous where dealers are given gifts to encourage sales. I with this concept started working on my project. I started searching for sectors that follow this concept of corporate gifting and I found sectors like Pharmaceutical, Infrastructure, Real Estate, and other potential Institutional Buyers such as big service and manufacturing companies, schools and colleges, university hostels, hospitals, companies employee societies, government department. Institutional selling which involves shortest channel (supply chain) is beneficial for companies to increase sales by incurring low cost and as a result of which discount can be given to institutional buyers. Eureka Forbes started its business with the concept of direct selling but it is now looking to take a step into institutional selling to increase its market share.
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In this project I collected information by asking questions to my project guide at Eureka Forbes which can be called as an interview method data collection. My tasks in this project were to make contacts with decision makers of companies in these sectors and tell them about offers and convince them to buy water purifiers of Eureka Forbes for corporate gifting. Firstly I searched for decision makers and fixed appointments with them and secondly I met them and explained to them about offers that Eureka Forbes gives to Institutional buyers. Talking about second part of my project, it is about business of Eureka Forbes products through malls and showrooms. It is also called MRO (Modern Retail Outlet). Business through malls and showrooms is one of the growing concepts and modern methods of todays business era. It is latest trend in the market. The concept of shopping was altered completely with the emergence of shopping malls. Eureka Forbes also acquired this concept and started their business through MRO (Modern Retail Outlets). Eureka Forbes has tied up with malls (like Big Bazaar) and showrooms (like Roopam, Taori Marketing, and Fare Deal etc. Nagpur). Eureka Forbes keeps a representative who is also called a promoter at Malls and Showrooms who promotes its products. The representative attends the customers and tells them advantages of his product and disadvantages of others products. The objective of my project was to observe and study how business is done through malls and showrooms. And in this project I was assigned a task to look after the supply procedure and reduce supply bottlenecks. For which I visited all the showrooms and mall (Big Bazaar) and I talked to the owners and managers of these showrooms and malls and tried to sort out their problems regarding supply.

ORGANIZATION PROFILE

10th February, 1982 marks the birth of Eureka Forbes. It is a joint venture of Forbes group with 60 percent shares and Electrolux AB group with 40 percent. Eureka Forbes is Rs.10 billion multi-product, multi-channel corporations. Earlier it was a part of Tata group now it is a part of the Shapoorji Pallonji Group. Over 7,000 employees are at work in the organization. They are the leader in domestic and industrial Water Purification Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. Eureka Forbes is the pioneers in direct selling. It is the Asia's largest direct sales organization. They are now one of the largest direct selling companies in the world, cited as a classic direct sales reference by marketing guru, Philip Kotler, in his famous textbook Marketing Management. They have 6,000 strong Direct Sales Force touching 1.50 million Indian homes, adding 1,500 customers daily Customer family now numbers over 6 million for Eureka Forbes - enduring relationships as "Friends for Life". It is operating in over 125 cities & our consumer channel has over 15,000 dealers across 1800 + cities and towns in India to bring a better quality of life to customers who seek the means to safer, healthier lives Its expanded channels reach out to customers to include; over 5,000 strong Dealer Sales Network, a 58 distributor strong Institutional Sales Network, security Systems Division - one of India's largest system integrators, a customer finance scheme, Euro value-for customers to easily obtain the means to Live Healthier Lives, a strong service network that backs up sales efforts, 4500 company trained technicians who make 20,000 kitchen visits daily including a constant support by call centres, customer care representatives & mobile service vans. Eureka Forbes is basically structured in five divisions: Euro smile, Consumer, Euro air, Euro vigil and EFL Direct. Euro smile is the service division of Eureka Forbes, with the largest service network across India catering to the needs of domestic and institutional customers. With Over 7,000 employees they are the leaders in domestic and industrial water purification systems, vacuum cleaners & air purifiers.
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Consumer division deals with the selling of the products through the chain of dealers. The products are sold under the Aquasure brand. Euro air division deals in air purifiers while Euro vigil division caters to the security needs of the customers. Euro vigil divisions consist of electronic security systems. It consists of fire detection and alarm system, access control system, perimeter protection system, integrated systems and building management systems. EFL division is a direct division selling the products on door to door basis. Aquaguard and Euroclean are the water purifiers and vacuum cleaners respectively sold through direct sales. They are the leaders in the water purifier system. Water that looks clear is safe to drink. This is a myth Aquaguard has sought to dispel since its launch in 1984. Waterborne diseases are largely caused by invisible bacteria and virus. They are eliminated by Aqua guards 3-stage purification process, thus ensuring the health of children across 35 countries. Aquaguard has a range of products that specially cater to diverse water conditions (hard or soft), and that is why it is trusted by mothers across the world. The Aquaguard brand owes its success to Eurochamps (Direct Selling representatives of Eureka Forbes), who pioneered the Direct Selling concept in India. Today, over 105 laboratories across the world certify Aquaguard. Aquaguard enjoys the faith of 20 million people and has been given Super brand status. It is the only water purification system that is endorsed by the Indian Medical Association, a body of 1, 78,000 doctors. Hence, Aquaguard is the tried, tested and trusted choice for mothers. Today it is India's largest direct selling organization with a strong direct sales force of over 7,000 people. Operating in over 100 Indian cities, Eureka Forbes has learnt a lot from these diverse cultures across the Indian sub-continent. Eureka Forbes is present in 450 smaller towns through franchised direct operations and has a 3,800 strong dealer network and more than 58 distributors in their strong institutional sales network. In 2007, Eureka Forbes surpassed $ 200 Million in sales for the first time.
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One of the widest service networks in the country backs up our products. Over 5800 company trained technicians operating from over 1,100 service centres bring service to the doorstep, making 25,000 kitchen visits daily. It is estimated that 80% of Eureka Forbess customers have a service centre within a 5 km. radius of their machines. These are supported by call centres, customer care representatives & mobile service vans. Our flagship water purification brand, Aquaguard, is virtually synonymous with pure, safe drinking water and continues to be the undisputed leader in the category. Trusted by over 40 million people, it is one of the largest selling water purifiers in the world. Euroclean vacuum cleaners, with over 3.5 million satisfied customers, is the undisputed leader in the category, having sold more than all the other brands combined.

Eureka Forbes Limiteds Mission & Vision: Mission

To build sustainable relationships with customers as their "Friend for Life" by satisfying their evolving health, hygiene, safety and lifestyle through. Our people whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning, earning and fun. Our Product and Services that reflect innovation become quality benchmarks and provide real value - for - money. Our Policies and Practices that is fair, transparent and constantly improved to optimize stakeholder satisfaction and achieve market leadership

Vision
A Happy, Healthy, Safe and Pollution free environment built on trust and lasting relationships with customers.

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PRODUCT PROFILE

Eureka Forbes has two main and popular brands under the name of eureka Forbes and they are:1. Aquasure, 2. Aquaguard.

Eureka Forbes

Institutional Sales

Direct Sales

Aquasure

Aquaguard

Eureka Forbes uses Aquaguard brand for direct selling whereas Aquasure is used for

institutional selling. Let us now see some of the products available under Aquasure brand:-

Aqusure Xtra MRP Rs.1490

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Aquasure Amrit MRP Rs.2499

Aquasure Galaxi MRP Rs.2199

Aquasure Smart UV MRP Rs.7499

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OBJECTIVES OF STUDY

Organizational:-

1. To identify new areas for institutional sales. 2. To increase sales with the help of institutional selling. 3. To develop contacts/relations with potential institutional buyer. 4. To run promotional campaigns at the campuses of big companies. 5. To generate sales through such promotional campaigns. 6. To reduce supply bottlenecks at malls and showrooms. 7. To increase sales through malls and showrooms.

Self:1. To learn practically about institutional selling. 2. To learn/study about institutional market. 3. To study and practice different ways of approaching an institutional buyer. 4. To develop new institutional buyers. 5. To learn how business is done through malls and showrooms. 6. To learn procedure of supply for malls and showrooms. 7. To learn about supply chain for malls and showrooms.

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MY TASKS AT EUREKA FORBES

When I started working on the project my objectives were very clear and I was assigned tasks according to the objectives. Tasks relating Institutional Sales:-

Identify the Institutional Markets

Identify the Institutional Buyers

Approach them

Ask them for appointment

Make Proposals

Meet them personally

Explain to them about offers and take their Feedback

Report that feedback to the Manager at Eureka Forbes

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In this firstly, I had to identify the Institutional Market and the Market which I could identify for Institutional sales are Pharmaceutical, Infrastructure, Real Estate, and other potential Institutional Buyers such as big service and manufacturing companies, schools and colleges, university hostels, hospitals, companies employee societies, government department. Secondly, I had to identify potential institutional buyers in that market and I could identify many institutional buyers. Some of them are Mahindra and Mahindra MIDC Nagpur, Essar Oil Nagpur, Mahindra Holidays, Mundle English High School Nagpur, Nivesh Infra, Phoenix Infrastructure and many more. Then I had to approach them via phone call and ask them for appointment. After getting appointment I and my manager were making proposals consisting products and pricing offers and with that proposal I was going to meet them. After meeting I was explaining our offers to them and taking their feedback and reporting that to the manager at Eureka Forbes.

Tasks Relating Business through Malls and Showrooms:-

In this I was assigned the tasks like:-

1. To resolve the problem of Supply. For this I had to talk to Floor Manager of Big Bazaar and try to resolve the problem with his help.

2. I had to help the Representatives/Promoters at Big Bazaar and other showrooms to improve the way they talk to the customers and tell them more effective way of attracting the customers.

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RESEARCH METHODOLOGY

In the project, I have not done any kind of research. But as we know Research is also to search for the answer of any question. It means Research is also about searching the answer to the question. While working on the project few questions came to mind regarding the objectives of the project. Most of the data have been collected from primary sources such as observation and interviewing the concerned people. Data have also been collected from secondary sources such as books, leaflet of the company and websites.

RESEARCH PROCESS Preliminary Study

Observation

Discussion with faculty and company guide

Interviewing concerned people

Analysis

Interpretation, Conclusion and Recommendation

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While working on my project I observed many things about institutional sales and Scope of Institutional sales for Eureka Forbes in Nagpur. I also observed things about the business of Eureka Forbes through Malls and showrooms such as procedure of supply, problems of supply bottleneck and reasons for the same. I also had discussions with the Manager of Eureka Forbes Nagpur and faculty on my project objectives. For fulfilling objectives and successful accomplishment of my project I interviewed concerned people like my manager at Eureka Forbes, Floor Manager at Big Bazaar. Following are a few questions which I asked them:-

Questions to Project Guide at Eureka Forbes:-

1. What is the status of Eureka Forbes about Institutional Selling? 2. How do you do Institutional selling? 3. How do you search for Institutional Buyers? 4. How do you approach them? 5. Do you offer discount to Institutional Buyers? If yes how much? 6. Do you find Institutional Selling is one of the booming concepts? 7. How does Eureka Forbes do its business through malls and showrooms?

Questions to Floor Manager at Eureka Forbes:-

1. How does the procedure of supply happen? 2. Why does the supply bottleneck occur? 3. How does the purchase order take place?

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Reply to the questions by Manager:Status of Eureka Forbes about Institutional Sales? :Eureka Forbes mainly focuses on Direct selling and Business to Business selling, but now we have started focusing on this concept of business as we see the scope of Institutional selling for our products.

How do you do it? :We firstly search for Institutional Buyers like Companies who follow the concept of corporate gifting, schools and colleges who have teaching staff more than 30 and then we give presentations to them about water awareness then we tell them about our water purifiers.

Method of approaching Institutional Buyers? :We make a proposal and send our representative with the proposal and fix appointment. After fixing appointment I go to them and negotiate.

Do you offer discount to Institutional Buyers? :Yes, we offer discount to them, but it depends on the quantity of products they purchase.

Do you find Institutional selling is one of the booming concepts? Yes.

How does Eureka Forbes do its business through malls and showrooms? We have tied up with malls (Big Bazaar) at top managerial level.

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Reply to the questions by Floor Manager of Big Bazaar:How does the procedure of supply happen ? :Big Bazaar gives order to Eureka Forbes (Purchase Order)

Purchase Order is sent to the company

Invoicing

Eureka Forbes sends products to the godown of Big Bazaar at MIHAN

Big Bazaar distributes products to all floors of Big Bazaar

Why does the supply bottleneck occur? :Due to procedure. It takes time to distribute as per stock order.

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OUTCOME

It was a very wonderful experience at Eureka Forbes and a complete package of practical learning and value addition. It helped me upgrade my knowledge in the following areas: 1. Institutional Selling.

2. Institutional Market. 3. Ways by which Institutional Buyers are approached. 4. Ways of negotiations with Institutional Buyers. 5. How to make professional proposals. 6. Ways in which business is done through malls and showrooms. 7. Supply procedures. 8. Ways to tackle & overcome supply bottleneck at Malls.

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RECOMMENDATIONS

Being at Eureka Forbes for more than one month I realised some things through observation, field work, discussion and interviewing concerned people and I have some recommendations which I would like to recommend:-

1. The company should go for Institutional Selling more aggressively because it has a big scope of Institutional selling in Nagpur. 2. The company can promote its water purifiers by running water awareness campaign at campuses of big companies. 3. Negotiation could be done at top managerial level for this. 4. The company should train its people for Institutional selling. 5. Awareness campaigns like hoardings and could be conducted to advertise the product. 6. The company should try to shorten demand and supply gap at Malls and showrooms by acting quickly. 7. The company may offer good profit margins to malls and showrooms owners so that they can promote eureka Forbes product more aggressively as compare to its competitors.

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CONCLUSION

Through observation, field work, discussion and interviewing concerned people I have come to the conclusion that Eureka Forbes has been doing good business with the concept of Direct selling and Business to business but it has a very big scope of Institutional sales for its water purifiers. Institutional selling: During my internship I realised that Institutional selling is one of the good concepts of generating business, and therefore Eureka Forbes should look at it more seriously. By running water awareness campaign product promotion may be done and sales can be generated at campuses of big companies who have a good number of employees. Companies who follow the concept of corporate gifting can be found out for Institutional selling. Business through malls and showrooms:- Doing business through malls and showrooms is really a good concept if all the things go correctly like supply chain, purchase order. If a good profit margin is given to malls and showrooms owners then they promote and sell products more aggressively.

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BIBLIOGRAPHY

Book:
1) Marketing Management by Phillip Kotler.

Websites:

1) http://www.eurekaforbes.com 2) http://www.google.com

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