Direct marketing

In eurekAFORBES AND AMWAYS

Group Members

• Jigar Doshi• Rasesh Gohil• Premil Malde• Jigar Saiya• Khyati Shah• Sudhir Tiwari

• 08• 18• 28• 38• 48• 58

• Name • Roll No.

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

brochure’s reassuring feel and existence, giving an Internet site

substance.

 

Eureka ForbesThe 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

Online ranking profiles of Salesmen

Efficient Sales Force Management

CRM @ Eureka Forbes

• 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

“ A relationship doesn’t end with sale. It actually

begins.”

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

•impending importance of vacuum cleaners and water purifiers was stated with their degree of indispensability

Attention

•Eurochamps presentation delivery was tailor made to portray the major aspects of a product and its benefits

Interest

•Eurochamps dealt with the objections tactfully and clarified them

Desire

•Gracious acceptance and delivery of orders

Action

•Maximum Importance given to post-purchase relationship with the consumers

Satisfaction

Personal Selling Approach

Prospecting

Pre-approach

Approach

Sales Presentation

Post Sales Follow up

Recommendations

SETTING UP ALTERNATIVE

AND NEW RETAIL

CHANNELS

AQUASURE

AUGMENTATION OF THE TARGET

MARKET

NEW MEANS OF MARKET

PENETRATION

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 who’s 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

2010

100+ Products

120+ Offices

12000+ Pin Codes

Money Back Guarantee

Turnover Rs. 1000+ Crores

BUILD YOUR OWN EMPIRE

Business model of Amway

Amway’s 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."

• Competitors like P&G, Avon, Hindustan Lever

• Repetitive Sales• Expand

distributors base

• Lack of awareness• Product specific ads• Focus on variety of• products

• Distribution N/w• Quality Products• Provides opportu-

nities for building business

Strengths

WeaknessThreats

Opportunities

Amway’s 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