Direct marketing In eurekAFORBES AND AMWAYS

Group Members
Name Jigar Doshi Rasesh Gohil Premil Malde Jigar Saiya Khyati Shah Sudhir Tiwari Roll No. 08 18 28 38 48 58

Definition of direct Marketing

The Direct Marketing Association (DMA) defines direct marketing as communications where data are used systematically to achieve quantifiable marketing objectives and where direct contact is

made, or invited, between a company and its

customers and prospective customers.

What is Direct marketing?

DM is a communication between seller and buyer directly. No intermediary media is used. It is direct communication but with a marketing purpose.

Research shows that a combination of brochure and Internet works,

persuading people to buy the Internet needs the brochures

reassuring feel and existence, giving an Internet site substance.

Eureka Forbes
The Direct Marketing Pioneer

History
1909, Detroit : Fred Wardell launched vacuum cleaners
under the name Eureka Established itself as market leader in Vacuum cleaner industry by adopting direct marketing and personalized services

Electrolux buys Eureka-Williams in 1974

Journey in India
Had to establish the concepts of Vacuum cleaners and Water purifiers before selling. Core strength : Dynamic highly motivated salesforce

EUROCHAMPS The friendly man from Eureka Forbes

Gained foothold after initial hiccups through many sales and marketing strategies

Why Enter into Direct Marketing?

Vacuum cleaners and water purifiers were new concepts for Indian consumers Followed traditional methods of cleaning and filtering
It had to establish the new concept of air and water purifying Eureka Forbes became synonymous with the smartly dressed salesman who come to their house and cleaned up in a jiffy

Sales Management @

Eureka Forbes in India

Sales Objective

To provide an innovative product range through Direct Marketing To make the people aware of health and hygiene

Nature and Role of Selling

Direct marketing through 5000 salesman and 400 branches

Image of Selling

The Friendly man from Eureka Forbes Instilled more confidence and acceptability in consumers

Sales Organization @

The It Initiatives- the B2E strategy

Weekly sales reporting by salespersons

More efficient inventory management

Efficient Sales Force Management

Online ranking profiles of Salesmen

CRM @ Eureka Forbes

A relationship doesnt end with sale. It actually begins. Annual Maintenance Contract Operation Red Zone and Mobile service for customers from specific places Water labs Euroclean Home Contest 24 x 365 virtual call center Discounts to dedicated customers

Sales Functions and Policies @

Changing with time.

Increase in consumer focus : Advertising Strategies

Consumer Training Drive

Online Training sessions for new salesforce

Eureka Forbes Institute of Environment

Television initiatives Pollution control camps

Led to increase in customer base, sales turnover and clientele

Personal Selling

AIDAS Implementation by Eureka Forbes

Attention Interest Desire Action Satisfaction
impending importance of vacuum cleaners and water purifiers was stated with their degree of indispensability

Eurochamps presentation delivery was tailor made to portray the major aspects of a product and its benefits Eurochamps dealt with the objections tactfully and clarified them Gracious acceptance and delivery of orders Maximum Importance given to post-purchase relationship with the consumers

Personal Selling Approach

Prospecting Pre-approach Approach Sales Presentation Post Sales Follow up

Recommendations

SETTING UP ALTERNATIVE AND NEW RETAIL CHANNELS

AQUASURE

NEW MEANS OF MARKET PENETRATION

AUGMENTATION OF THE TARGET MARKET

Network Marketing

Facts about Amway

Started in US in 1959 with 1 product.
Is now a $8.2 billion Corporation. The Largest Direct Selling Company. Currently managed by Chairman Steve Van Andel and President Doug De Vos

 Has already notched up a sales turnover of Rs 1,128 crore with a Rs 151-crore investment. About 85% of the products the company sells in India, are made in India by about 7 third-party contract manufacturers.

600 patents, 450 World Class products.

32000 product training sessions each year.

Why enter into Direct Marketing?

Indians usually wont say No to a person whos coming to our home to show/demonstrate a product To create awareness about their product as well as their brand Amway is going for advertisements and they started selling points in spas, gyms etc

Facts about Amway-India

Commenced business in India from 1998 Globally 450 products but in India they have just 110 products. Last year, Amway grew over 40 per cent (in India), which is more than any other country where they operate.

Operates in four categories - nutrition, cosmetics, personal care and homecare.

Eastern India contributes around 22 percent of the total sales of the company.

Tamil Nadu, is their largest market. They had done business worth Rs.93.8 crore in Tamil Nadu in 2007 and had paid taxes to the tune of Rs.10.25 crore in the year.

It has 14 offices and six warehouses in the state and carry out home deliveries to 879 pins codes in the state.

AMWAY INDIA 12 Years 1998-2010

1998
6 Products 5 Offices 1500 pin codes Service 70% Money Back Guarantee Turnover Rs. 100 Crores Turnover Rs. 1000+ Crores

2010
100+ Products 120+ Offices 12000+ Pin Codes Money Back Guarantee

Business model of Amway

BUILD YOUR OWN EMPIRE

Amways Promotional Strategy

The company has been advertising heavily, quite simply defying the laws of direct selling.
The purpose of their advertisement is to build corporate brand awareness. Television campaign ran till 2010. The advertising campaign for 2009 was aimed at increasing awareness. By the time they get into 2010, they plan to look at category-specific or even product- specific advertising,"

 Although Amway has been operating in India since 1998, it started advertising only recently. The focus is more on their nutrition and wellness products.

Traditionally Amway did not advertise.

At present, their advertising budget is Rs 15 crore because the aim is not to create demand but to build awareness and create a market atmosphere conducive for our distributors."

 Distribution N/w Quality Products Provides opportunities for building business

Lack of awareness Product specific ads Focus on variety of products

Strengths

Weakness

Opportunities
Repetitive Sales Expand distributors base

Threats

Competitors like P&G, Avon, Hindustan Lever

Amways Future Plans

Planning to expand its distributor base in next 10 years to 9 lakh personnel.

Plans to add about 100,000 direct sellers.

Nearly 60% of Direct Sellers stay with the Company.

Increase the number of its offices to 300 from the existing 127.

Amway's focus is on improving the consumer access and the first step towards online sales by revamping its website.

New Website of Amway India 24x7 Web ordering facility

Findings And Recommendations

FINDINGS Distribution N/w Quality Products Repetitive Sales RECOMMENDATIONS Lack of awareness

Product specific Ads

Lack of Core products