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INTRODUCTION
Eureka Forbes is a joint venture between Forbes Gokak (part of the Shapoorji Pallonji group) and Electrolux AB of Sweden. It was setup in India in 1982 to market health and hygiene products to Indian consumers. It has manufacturing facilities at Bhimtal, Hyderabad and Bangalore together with an advanced Research & Development centre at Bangalore. The water testing facility of Aqua mall (100% subsidiary of Eureka Forbes) in Bangalore is the first facility in Asia and the seventh in the world to get accredited by the Water Quality Association of America. The turnover of Eureka Forbes in the FY 2003-2004 was around 510 Crores. Eureka Forbes has around 4000 successful sales personnel who are referred to as Eurochamps and over 500 response centres to provide prompt and efficient after sales service. Eureka Forbes pioneered the concept of direct marketing in health and hygiene products. Direct marketing always faces lots of challenges and its successful operation needs continuous monitoring and motivation. It is Asias largest direct sales organization. It also has dealer sales division, industrial sales division and an exports division.
This study has carried out at Bangalore Eureka Forbes Central Sales Office. This study covered the functions of various department i.e. Sales, Marketing, Human Resources, Finance, Systems, Research and Development and customer Relations Management. This study also took time to analyze the strength and weakness of the organization.
Eureka Forbes Ltd having 172 offices in India in which 61 of them is in South India. About 95% of the market share for vacuum cleaners and about 74% of the market share for water purifiers. Major competitors are Philips, Whirl Pool, Kent, Pureit (HLL) etc. Mainly the product promotions of Eureka Forbes are through Exhibitions, Brochures, Campaigns and field activities.
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INDUSTRY PROFILE
"Water from Waterguard is completely safe from harmful pesticides, bacteria, viruses and is economical too!", says an advertisement from Usha Shriram, Advertising for its Usha Brita Water Purification Systems. And in case you miss the point, the advertisement has in its background copies of media reports on `Pesticides in bottled water. 'Meanwhile, Eureka Forbes, touted to be the leader in the water purification segment, reacted more swiftly to the pesticide-issue and came out with "reassuring" advertisements, within a couple of days after the Centre for Science and Environment (CSE) came out with its controversial report. "The Union Health Ministry too had met discuss the subject and according to sources; the inclination was towards aligning with the European Union (EU)norms.
However, the Bureau of Indian Standards reiterated its stand on the issue and said: "That it took into consideration the limits set by the USFDA, the EU, the World Health Organization (WHO), Codex etc. and decided that since bottled water was a value-added product and in keeping the public/consumer interest ,the (BIS) committee unanimously decided to quantify the maximum limits for pesticide residue and made the necessary amendments to the two Indian standards
Eureka Forbes product lines are related to health, hygiene and safety. They are mainly concentrating on water purification systems for different segments.
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Aqua Guard Kent grand Hindustan Unilever pure it Philips Intelligent Whirlpool Pure Fresh Japan, Alpha Dewdrop Eurotek System Gen Pure R.O System Bionics Aqua Tech Ken star water purifier Astro-boy-water purifier Euro Fabs Euro Riva water purifier Aqua fresh water purifier
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ORGANISATION STUDY ON EUREKA FORBES Product features of other major water purifier 1. kent guard : It has 8 litres water storage capacity & 5 purification stages like-sediments purf., pre-carbon filter,carbon purif. , UV&Reverse Osmosis technology purification.
2.Hindustan Unilever Pure It : This water purifier has 4 purification stages like- Pre-filter purification,
activated carbon purification, Germ kill Processor and Unique Polisher. It has 9 liters of storage capacity. This water purifier does not require electricity.
3.Philips intelligent: Philips established its new water purifier business, having achieved a 30%
retail market share in India with its UV water purifier and becoming the Brazilian market leader in the on-tap water purifier category.
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5 2.5 2.5 2 1.6 Aquaguard pure it kent philips others
The consumer has spoken. Identifying and paying tribute to exceptional brands, the vox populi has placed both EUROCLEAN VACUUM CLEANERS and AQUAGUARD WATER PURIFIERS in the Super brand category. AQUAGUARD was chosen for the second time running. Recognizing, rewarding and reinforcing leading brands from all over the world,consumers have clearly shown their preference for a brand that offers significant emotional and physical advantages over competitors. The secondedition of Consumer Super brands 2006-2007 had it all clearly spelt out in black and white. Brand leaders in
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1.SP Group
140 years ago, Mumbai was largely an uninhabited cluster of islands. To fulfill the watersupply needs of the city a reservoir was built, in the famous Malabar Hills. Not only didthe reservoir sustain the needs of Mumbai for the next 100 years, it also witnessed thegrowth of Mumbai as the Commercial Capital of India. The reservoir was built by a Littlewood Pallonji & Co., which today is Shapoorji PallonjiCo. & Ltd. one of the leading construction giants in India and abroad. Shapoorji Pallonji & Co. Ltd. is just one of the jewels in the SP crown. It draws vital support from other group companies to be able to execute turnkey projects swiftly and efficiently. These include SP Fabricators, AFCONS, Forbes, Sterling and Wilson, SP Construction Materials Group, SP Real Estate and Samalpatti Power Company Private Limited. Together, this conglomerate continues to strive towards perfection, quality and commitment virtues.
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4.FORBES LUX:
Opening Doors to a Healthier, happier world. For over 100 years now, millions of people across the globe have opened their doors to health. Lux International AG, Switzerland is an organization backed by over 100 years of experience, over 20 million customers and Eureka Forbes Ltd., India, one of the largest direct selling company in Asia with an active database of over 5 million customers and 25years of developing relationships. The Forbes and Lux Groups joined hands in their expansion world over and laid the foundation for the Forbes Lux Group with its headquarters in Switzerland. The new company with a 50:50 shareholding between both companies, aims to develop direct sales operations around the world, operating with two strong brands, Forbes and Lux. The two companies partnering to form Forbes Lux Group are well known market leaders in their respective markets, share a common goal of understanding the consumers, bringing to them high quality solutions and above all, developing lasting relationships. Forbes Lux Group is about building healthy relationships. With their range of water purifiers, vacuum cleaners, steam cleaners, air purifiers and more, the group offers innovations for a healthier, happier life at home to people across the world.
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COMPANY PROFILE The Organization Companys values Symbol of Quality Euro smile Board of Directors Strategic Direction Euro Helpline Environment People Eureka Forbes Relationship Eureka Family Aqua Check New Avenues Companys Dreams Future Plan
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Mr. Pallonji Mistry 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 a society in which nationwide commercial compaign were an impossibility, the company had to pioneer another innovation- directing sealing. The crops of suitclad Eureka Forbes salesman 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 customer 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 test of time: relationships IRECT marketing
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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.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. Eurochams intitially 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. 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 Aquaflo 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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A5 billion multi- product , multi-channel corporation. Operating in over 125 cities & 475 town across India , with over 10,000 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 1.5 million Indian homes, adding 1,500 customers daily. Customer family now numbers over 5 million - enduring relationships as 'Friends for Life'.
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CURRENT SCENARIO:
The consumer durables market in India is valued at US $ 4.5 billions currently. In 2010, micro wave ovens and air conditioners registered a growth of about 30%. Frost-free refrigerators have registered significant growth as many urban families are replacing their old refrigerators. Refrigerator sales amounted to 4.5 millions in 2009, whereas the production of the refrigerators went up by 21% as compared to the preceding year. Washing machines, which have always seen poor growth, have seen reasonable growth in2009. More and more Indians are now buying electrical appliances due to change in electricity scenario. The penetration level of color televisions (CTVs) is expected to increase 3 times by 2010.
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SYMBOL OF QUALITY
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SERVICES:
Service at your doorstep Indias largest after-sales service network - over 650 Service Centres 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 24hrs*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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ORGANISATION STUDY ON EUREKA FORBES Factories ISO 14000 and 9000 certified
Tested and certified by over 100 laboratories in India, US, UK and South Africa . Certifications include those from the highly reputed Bureau of Indian Standards (BIS), University of Minnesota; University of Pretoria, South Africa; Water Quality Certificate USA; WQC - Thames Water Centre - USA; University of Sunderland - England. ISI (Indian Standards Institute) certification IMA (Indian Medical Association endorsement) Incorporates prestigious International Water Quality Association (WQA) certified carbon block that removes pesticides. CE certification for the unmatched safety of products.
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vacuum cleaner
Air purifier
Security Solution
Fire
Eureka forbes ltd. Revolutionized the Indian market by introducing products like Home Cleaning System(1982), Water Purification System (1984) and Air Purification System(1994).
The following are the basic products of Eureka Forbes Ltd,. Which has always promised to provide safe and healthy living.
1. WATER PURIFICATION SYSTEM 2. AIR PURIFICATION SYSTEM 3. HOME CLEANING SYSTEM (Vacuum Cleaners) 4. HOME SECURITY SYSTEM 5. INDUSTRIAL SOLUTIONS (Industrial water purifiers)
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Specialists in 5 water technologies. Over 20 Products available and millions units sold. Addressing 17 diverse water conditions. Worlds largest manufacturer of Ultra Violet based Water Purification systems. Over 71 million liters of Aqua guard water is consumed daily.
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Floats in the air & settles on pillows, mattresses, furniture, durries & even soft toys .
Dust mites cause allergies like fatigue, runny noses, itches and even severe asthma .
Ordinary cleaning does not get rid of dust mites - only powerful, thorough cleaning with a vacuum cleaner. Infinitely superior than conventional cleaning methods and easy-to- use.
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Causes maladies like allergies headaches, nausea, physical aches Asthma and allergy sufferers worst affected.
Pollutants include cigarette smoke, dust, pollen, fibers, soot, airborne fungal & bacterial particles, indoor allergy stimuli odors.
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Contract cleaning service that effectively combines our products and cleaning chemicals .
Numerous prestigious, satisfied customers including some of the countrys premier corporations.
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PRODUCTS
AG COMPACT
FEATURES
Unique E-Boiling + 2-in-1 compact cartridges EMS Decalcifier Auto Shut off V oltage Stabilizer
AG- ULTRA No Electricity required. Advanced Ultrafication System. Ideal for TDS levels; up to 500mg/ltr. Works with loft tank. High storage capacity
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ULTIMA
Unique 3-in-1 Home wash system Washes Vacuums Steam Sanitizes Keep allergies at bay Thorough cleaning
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BULLET
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ORGANISATION STUDY ON EUREKA FORBES AIR PURIFICATION SYSTEM PRODUCTS EURO AIR FEATURES
Two optional filters to suitUsers choice. Electrostatic filter. Three fan speeds. 4 stage purification system
GENEUS
UV Lamp that effectively killsBacteria and germs present inthe air. International looks. Amicro controller based logic circuitthat controls its operation. Higher air flow and more stages of filtration for faster and better cleaningrate. Bigger filter area, hence longer filter life. Rugged induction motor.
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S Y 200TNT2
Eurovigil from Eureka Forbes provides complete safety for your loved ones & business. Solutions customized for homes, institutions & corporates, each solution from Eurovigil is tailor-made for unique requirement.
An array of products - intrusion detection, access control, surveillance & fire detection, the Eurovigil solutions are state-of-the-art security solutions providing you total safety.
The strategic tie-ups with world's leading companies in security solutions like Notifier , Honeywell, Bosch and many others make the Eurovigil systems the ideal solution for your homes and business.
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Through this technically advanced system you can monitor, supervise,control and secure all of your hotels and other organizations 24X7. With the help of Global Static Internet Protocol (GPIS) system, you can monitor each an every moment of all the hotels and other organizations at a time from a single place. This system is fully vandal proof and can perform in very low light or no- light situation.
Inbuilt hard disk (up to 2000GB ) keeps record of day to day activities.
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Protect trespassing. Keep daily attendance Fully automatic This system consists of: 1. Electromagnetic lock 2. Door controller 3. Access managent software 4. Access card.
You can see and talk to the visitor without opening the door. Just press a button and unlock the door without moving from your couch.
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VISION
A Happy , Health, Safe and pollution free Environment built on Trust and lasting Realtionships with customers
Eureka Forbes Ltd. should be taken in the market abroad both for household and industrial cleaning equipment. They will be ready with faster customer response through electronic contacts. By making a transition from distributors to marketers of industrial cleaning equipment. water
Emerging as a preferred employee for youth. Establishing Eureka Forbes as a purifying Specialist Company. Becoming a gateway to multi-national company looking to set up base in India.
Introducing innovations and being perceived as the best service providers in the country; and having our ability to respond to the ever-changing demand of the customers.
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MISSION & OBJECTIVES To build sustainable relationships with customers as their Friend for Life. By their evolving Health, Hygiene, Safety and lifestyle through our people Whose entrepreneurial sprit and ambition is fuelled by the culture of pride, learning , raening and fun our Products and services that reflect innovation, become quality benchmarks and provide real value - for - money. Our policies and practices that are fair , transparent and constantly Improved to Maximise stakeholder satisfaction and achieve market leadership.
Our people will live comfortably and make a responsible amount of moneythat satisfies there at home. Potecting the environment let us learn it from children.!!!
CHAIRMAN
VICE CHAIRMAN
MANAGING DIRECTOR
SENIOR VP FINANCE
SENIOR VP DIRECT
SENIOR VP RETAIL
SALES
SENIOR VP TECHNIC AL
SENIOR VP FACTOR Y
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ORGANISATION STUDY ON EUREKA FORBES DIVISIONS IN EUREKA FORBES A.Direct Sales Division:
Established in 1982 - The main selling arm and flagshipof the company. This division has over 5000 sales personnel working in and across thecountry. The products under this division include Euroclean range of Home CleaningSystems, Aquaguard Water Purification Systems and Euroair Air PurificationSystems. Euroclean Vacuum Cleaners India's Largest Selling Vacuum cleaners withover 2.5 million satisfied customers. Already expanded into 450 smaller townsthrough franchised direct operations.
D. Forbes Professional:
Established in 1986 - To provide adequate coverage of the large and rapidly growing industrial and commercial segments, Industrial SalesDivision was set up with Industrial and commercial heavy duty cleaning equipmentand water purifiers as its main products, this division has built a base loyal customers.
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E. INTERNATIONAL OPERATION :
To understand the changing global market scenario on water purification systems andthe increasing awareness on health and hygiene, Eureka Forbes have begun a venture Euro Forbes International with its regional head quarters and manufacturingfacilities in Singapore. This international network made Eureka Forbes a global player in water purification systems, which enabled us to spread the promise of providing pure and safe drinking water beyond the boundaries of India. Their rapid internationalexpansion plans also include Middle East, South Africa, Latin America and Europe.Eureka Forbess water purification systems are manufactured by Aquamall, a whollyowned subsidiary, with a vision of becoming a one stop shop for water purificationsolutions. Aquamall is the worlds largest UV water purifier manufacturer with ISO/ISI certification.
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H. Supporting Divisions:
There are 8 supporting divisions, they area: a.Technical b.Research and Development c.Manufacturing Team d.Manufacturing Division e.Logistics f.Euro Value g.Human Resource Management h.Marketing i.Systems
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STRUCTURE OF MAIN DIVISONS SENIOR VP VICE PRESIDENT GENERAL MANGER DEPUTY GENERAL MANAGER REGIONAL SALES MANAGER AREA SALES MANAGER SENIOR DIVISIONAL MANAGER DIVISION SALES MANAGER DEPUTY DIVISIONAL SALES MANAGER BRANCH MANAGER SALES REPRESENTATIVE
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All in all, the HR function is still to a large degree administrative and common to all organizations. To varying degrees, most organizations have formalized selection, evaluation nad payroll processes. Efficient and effective management of the Human Capital pool (HCP) has become an increasingly amperative and complex activity to all HR professionals. The HR function consists of tracking innumerable dada points on each employee, from personal histories, data, skills, capabilities, expriences to payroll records. TO reduce the manual workload of these administartive activities, organization began to electronically automate many of these processes by introducing innovative HR practices.
In Eureka Forbes HR function is headed by Sr. Vice President, who is reporting to the president of the organization. The challenges in HR function of Eureka Forbes are the recruitment and retaining of the people.
Recruitment: Eureka Forbes recruits their manpower through direct interview andmostly through campus recruitments and employment exchanges. Training and development: The new recruitment will undergo 1 month class
roominduction cum training program in our training centre which is known as CRTC Central Recruitment Training Centre. Eureka Forbes provides ample scope for learning for the employees through its SELF LEARNING PROGRAM (SLP) and provides a
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Management Development Programs from prestigious institutes in India includingIIMs develops and groom the leaders for tomorrow. All these activities are carried out by HRM.
Payroll: SAP automates the pay process by gathering data on employee time
andattendance, calculating various deductions and taxes, and generating periodic paycheques and employee tax reports. The necessary data required fir this process is providing by HR. Salary includes the basic pay, sales commissions, performanceincentives, Bonus etc. Performance Appraisal Systems: All the employees performance has been assessingwith a specified time interval. The middle and top management staffs performancehave been assessed by their effectiveness of KRA Key Result Area.
Transfers: All the employees job in Eureka Forbes is transferable and the company
provides all the expenses incurred during the transfer. Also takes care of their familystravel and settlement in the new place. Employee Relations and Discipline: HR monitors the organizational behavior of each employee and educates each employee in basic discipline in the organization andany one violates, HR is authorized to take necessary discipline action. Takes care of Employee grievances and complaints. Benefits and Welfare: This includes the insurance policy, accident benefits, provident fund, gratuity and pension plans, loan facilities. All the employees and their dependents are covered the cash less hospitalization option.
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ORGANISATION STUDY ON EUREKA FORBES STRUCTURE OF SUPPORTING DIVISONS IN HR SENIOR VICE PRESIDENT HUMAN RESOURCE
ASSISTANT MANAGER
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Marketing functions: In order to make fact-based decisions regarding marketing strategy and design effective, cost-efficient implementation programs and firms must possess a detailed, objective understanding of their own business and the market in which they operate. Traditionally, marketing analysis was structured into 3 areas: Customer analysis Company analysis Competitor analysis (so called 3Cs analysis). Customer analysis: The focus of customer analysis is to develop a scheme for market
segmentation, breaking down the market into various constituent groups of customers, which arecalled customer segments or market segments. Marketing managers work to developdetailed profiles of each segment, focusing on any number of variables that may differ among the segments:demographic, psychographic,geographic,behavioral,needsbenefit, and other factors may all be examined.
ORGANISATION STUDY ON EUREKA FORBES Competitor analysis: In Competitor analysis, marketers build detailed profiles of each
competitor in themarket, focusing especially on their relative competitive strengths and weaknessesusingSWOT analysis. Marketing managers will examine each competitor's coststructure, sources of profits, resources and competencies, competitive positioningand product differentiation, degree of vertical integration,historical responses to industrydevelopments, and other factors.
Marketing strategy:
Once the company has obtained an adequate understanding of the customer base andits own competitive position in the industry, marketing managers are able to make keystrategic decisions and develop amarketing strategydesigned to maximize therevenuesandprofitsof the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth,market share, long-term profitability, or other Goals.
Implementation planning:
After the firm's strategic objectives have been identified, the target market selected and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the strategy.Traditionally, this has involved implementation planning across the chosen
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PRODUCT Suitable for all type of raw water Easy availability nation wide Many stages of water purification process Automatic membrane cleaning system Multi products launched- water purifier 18 lit., UV and RO No running water
PRICE Product price range started for started for 1800-16000 Low cost of maintenance and consumable Low cost for product Best price for other than competitor Ex..(eureka) aqua flow dx philips- 6230 Price - 5990 PROMOTION Increase impurities than use for water purifier Increase disease Direct sales given knowledge for customers Easy available product At jaipur 2 distributors and many dealers Any activity, exknops
PLACE Activated subscriptions immediately Right time installation of products Working properly Properly repair services against paid AMCs Services during contract period Saves time
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ORGANISATION STUDY ON EUREKA FORBES Reporting, measurement, feedback and control systems
Marketing management employs a variety of metricsto measure progress against objectives. It is the responsibility of marketing managers -- in the marketing department or elsewhere -to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner. Marketingmanagement therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs,sales force management systems, andcustomer relationship managementtools (CRM). In Eureka Forbes the marketing department is headed by Sr. Vice president and the marketing department plays a vital role in the following to support the operation 1. Advertisements Advertisement improves the trust and builds the confidence of purchasing a product.Different innovative advertisements will play a great role and it will support the salesman for closing the sale.
5.Do continuous market survey and analysis This will helps us to know the pulse of the
market, identify new market, market peneration level, identify potential customers and learn the competitr products and their activities.
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ZONAL HEAD
STATE HEAD
AREA HEAD
ISP CO-ORDINATOR
TERRITORY HEAD
IN SHOP PROMOTER
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we are not just about profits we have made, the markets we have conquered or the
distances we have covered. Eureka Forbes is about the lives we have touched. This is the statement of Eureka Forbes. 1.FINANCIAL RESULTS: The results for the current year and those for the previous year are shown below: Particulars Sales and other income Profit before Depreciation Less : Depreciation 2010(Rs) 6,33,57,03,128 42,37,45,077 8,41,60,633 2011(Rs) 5,50,24,35,405 38,14,49,368 6,00,52,303
Profit before tax 33,95,84,444 Less:provision for current, Fringe benefit and deferred 11,98,48,588 tax Profit after tax 21,97,35,856
Less: prior years tax adjustments(net) Profit after tax and prior years adjustments
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NIL 21,97,35,856
20,05,927 22,57,85,416
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ORGANISATION STUDY ON EUREKA FORBES Add: balance brought forward from previous year Amount available for appropriation APPROPRIATIONS : Interim dividend Tax on dividend Transferred to general reserve Balance carried to balance sheet 2. DIVIDEND: Your Company has paid 250% interim dividend amounting to Rs.5.00 Crores (Previous Year - Rs.4.00 Crores). Keeping in view the Companys constant endeavour to bring in stateoftheart technology models and upgrade its existing range of models which require substantial investment, your Directors have decided not to recommend final dividend for the year under review (Previous Year Nil). 3.TRANSFER TO RESERVES: The Company propose to transfer Rs.20 Crores to the General Reserve out of the amount available for appropriations and an amount of Rs.41.39 Crores is proposed to be retained in the Profit and Loss Account. 4.OPERATIONS:
Your Company continues its impressive growth during the year under review with increase in sales of 16% over previous year, the profit before tax has shown a growth of 19.5% over the previous year, i.e. from Rs.30.90 crores to Rs.36.94 crores. The Company continues to focus on upgrading technology and has considerably improved the quality of the products being manufactured. During the year the Company has
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5.SUBSIDIARY COMPANYS:
Forbes Aquamall Limited, a wholly owned subsidiary of the Company has maintained satisfactory results with a turnover of Rs.78.32 crores and a profit before tax of Rs.3.60 crores. This has been possible with the concerted efforts of the whole team in Forbes Aquamall.
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MANAGER FINANCE
EXECUTIVE FINANCE
SUPERVISOR FINANCE
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ORGANISATION STUDY ON EUREKA FORBES RESEARCH AND DEVELOPMENT 1. Specific areas in which R&D carried out by the company : The companys R &D centre continues to be recognized by the department of science and industrial research, Ministry of science and technology, Government Of India. The water laboratory at Bangalore is recognized by the Karnataka State pollution control Board and world Water Quality association- USA and as credited by national accreditation noard for testing and calibrating laboratories, india. 2. Benefits derived as a result of the above efforts: R&D through its efforts has enabled the manufacturer to introduce to its own water purifiers at the lower end of yhe market segment.R&D has also recommended improved electronics, which is more stable and also automatically communicates to the service call centre if there is a service department. R&D has, morever contributed to improve upon products and accessories like modern UV water purifiers, 7 Stage RO/UF & UV purifier, Membrane technology based purifiers, etc. to meet the different requirements due to varying water condition in the market place. R&D has also tested and suggested improvements in imported products like ReverseOsmosis, 3-in-1 Vacuum Cleaners, Five Stage Water Purifiers to suit Indianconditions. Company introduced Ecofriendly household cleaning Liquids for sale through service personnel. 3. Future Plan of Action: There are a number of products, process improvements andaccessories, which are under development in the field of water purifiers, vacuumcleaners, air purifiers, kitchen appliances and ecofriendly chemical cleaningsolutions. These products would be at various price points to cater to different marketsegments. R&D will involve in joint
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ORGANISATION STUDY ON EUREKA FORBES development of products with Foreign Businessassociates for International requirements. R&D would continue to work on value engineering, cost optimization and reengineering to improve the overall operating efficiency. R&D works closely withBusiness Development to introduce new products from the foreign business associatesand also for import substitution.
Expenditure on R&D a.Capital b.Recurring c.Total d.Total R&D expenditure as percentage of total turnover
Rs.1.39 lakhs
0.31%
Technology absorption, adaptation and innovation : 1. Efforts, in brief, made towards technology absorption, adaptation and innovation. In line with the rapidly changing technological environment, the R & D staff are provided with the requisite means to keep abreast of the changes. They are also encouraged to attend national and international technical symposiums and trade fairsto understand the latest technology and adapt them to Indian conditions. Worked withIIT Chennai to develop nano Silver technology for water purification enhancement.The technology is implemented in the product seamlessly.
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ORGANISATION STUDY ON EUREKA FORBES 2. Benefits derived, as a result of the above: product improvement, cost reduction, product development, import substitution, etc. The results derived from the above efforts have contributed to significantimprovement in product quality and performance. Customer Relationship Management (CRM) KEEP THE CUTOMERS FOR LIFE CUSTOMER RETENTION PROGRAMS What is the greatest global business secret? Satisfied customers!!! Every companysgreatest assets are its customers, because without customers there is no company andthere is no business. It is that simple. The rewarded customer buys, multiplies andcomes back . Treat the customers well and satisfied customers will be our best sourceof advertising and marketing.Success in today's business world depends more and more on building relationshipsand keeping loyalty among customers and employees. Like any strong relationship --loyal, long-term (and profitable!) business relationships require time, care, attentionand commitment. Customers want more than a veneer of courtesy when they are in contact with us.They want a business relationship where they are appreciated, respected andremembered. When they think of doing business with us they want to be able to say, They know me very well. Excellent quality service helps to keep customer loyalty and helps to maximizecustomer lifetime value
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STRENGTHS
Brand image of AQUAGUARD. Benchmark for Direct sales strategy. Asias largest direct selling company. Strong dealers sales network. Eureka Forbes has almost1000 service centers to resolve the customer issues with a very least response time. Eureka Forbes is the young, vibrant organization withemployee strength of 7250 spread across 100 cities in India
WEAKNESS Since it is the direct sales organization, proper monitoring of employees isnot possible. Continuous and constant monitoring of employees is essential tomaintain the discipline in operation. Service network in suburbs. Falling short to serve huge customer base. THREATS Competitors Sometimes dealer or retailer not complete their their responsibilities. Government policies. Lots of organisation are focusing and investing on these areas and it would creates the competition. General awareness in Customer.
OPPORTUNITIES Health, hygiene and safety are the major concern of the people today. The environmental conditions are degrading due to the over exploitation and the growing crime is another concern. It has has all the products to provide solutions to these problems. At international as well as institutional level.
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ORGANISATION STUDY ON EUREKA FORBES MAJOR PLAN AND SUGGESTIONS : Improving retail channel increase the penetration of water purification devices. Its retail division is now extending its products to chemists, CSDs (Canteen Stores Department) and general merchandise stores to reach out to households which do not use water purification devices Improved Training Process. Increase the Product Line. Can adopt Chain- Marketing. As per the survey done following were the findings and suggestions 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 brouchores 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. Spare should be made available at proper time.
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CONCLUSIONS
Eureka Forbes Ltd is a very eminent company but each company has some positive and some negative points and Eureka Forbes Ltd is not an exception in that. The company is a well renowned company.
The company has a few positive points like proper Management, Excellent HR Department, and proper Time Management. The Company is well known mostly in Northern part of the India for its good services at reasonable prices.
The Company has set bench marks for every department in order to detect any diversions in its services. The Company also revises its bench marks from time to time. Therefore the Company is dominant in the market. It faces competition from several companies that are fast catching up. The Company has also dynamic people who are experienced enough.
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Particular
Source of Funds Share Capital Reserves & Surplus Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities Application of Funds
OXBRIDGE BUSINESS SCHOOL
2011
2010
2009
2008
2007
12.90
12.90
12.90
12.90
12.90
90.05
71.98
15.00
22.71
31.87
39.22
35.98
105.05 94.69
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Fixed Assets Gross Block Less : Accumulated Depreciation Provision for impairment of Assets Net Fixed Assets Capital Work In Progress Total Fixed Assets Investments Current Assets Inventories
OXBRIDGE BUSINESS SCHOOL
200.88 218.64 216.44 208.96 579.81 81.43 85.24 74.83 69.29 283.23
0.00
3.63
0.27
0.00
0.00
2.13
0.49
1.97
4.13
21.95
18.90
20.03
25.89
39.24
129.62
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Sundry Debtors Cash & Bank Balances Loans & Advances Total Current Assets Current Liabilities & Provisions Current Liabilities Provisions Total Current Liabilities & Provision Net Current
OXBRIDGE BUSINESS SCHOOL
32.01
27.11
31.80
52.84
82.40
15.69
12.81
7.63
20.60
25.89
35.09
34.69
32.14
84.11
130.00
101.68 94.64
97.47
196.79 367.91
15.00
16.62
13.81
17.65
26.67
-22.09
-35.80
-31.60
61.73
152.64
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Assets Miscellaneous Expenditure written off Total Assets 0.00 0.00 1.23 0.00 0.00
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BIBLIOGRAPHY
WEBSITES:
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