Eureka Forbes Intro

7/31/2019 Eureka Forbes Intro

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COMPANY ANALYSIS

Eureka Forbes is Ks billion multi- product multi- Channel Corporation which

is a part of the Shapoorji-Pallonji (group which was set up in 1982, to markethealth and hygiene products to Indian consumers. It has evolved as a leader

in domestic and industrial water purification system, vacuum cleaners, air

purifiers and security solution.

Eureka Forbes were the first to introduce domestic Water Purification System(l984V the Aquaguard" 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 unknownproducts to society in which nationwide commercial campaigns were

impossibility, the company had to pioneer another innovation- directing

sealing. The crops of suit- clad Eureka Forbes salesman were the first such in

the country and were tremendous success. They are now- Asia's largest direct

selling organization with a 5000 strong direct sales force touching 1.25million Indian homes and adding 1,500 customers 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 wouldn't be about

bricks, mortar or sales graphs, but driven by something for more potent.

Something that would stand the wound stands the test of time:relationships"


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DIRECT MARKETING

Eureka Forbes followed the globally tried and tested direct selling route for

marketing its products in India, thus becoming one of the first direct selling

route companies in India. Vacuum cleaners and water purifiers were rather

new concepts for Indian consumers, who had till then followed only the

traditional methods of cleaning and filtering. Therefore, Eureka Forbes had to

first establish the concept of vacuum cleaners and water purifiers in India

before it could sell Eureka as a brand. The company believed that its core

strength was its people. It employed dynamic, highly motivated individuals,called Euro champs who projected the image of The friendly man from

Eureka Forbes. Thus, for the average Indian Customer, Eureka Forbes

became synonymous with the smartly dressed salesman who come to their

houses and cleaned up things in a jiffy or showed how air/water was

indispensible.

Euro Champs initially 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. Goklancy said In the water category, I

will conduct activities which will strengthen my core products. How I do that

and what I do is a matter of strategy. According to companys sources,

Eureka Forbes not anly had the financial strength, but also a strong network

of sales executives to push its new products into the market. The companysdecision to enter the retail business was primirly the result of its launch of

Tornada 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.


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Over the years, the retail business assumed greater significance and by 1999,

around 5% of the companys sales came form the 2500- strong network in

1999. Eureka Forbes Ltd, the leading vacuum cleaner and water/air purifier

equipment company, announced a major policy change that came as a

surprize to the Indian corporate world. The company, regarded as a 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 permit us to exploit only the top

end of the market. This move was in accordance with the companys plansto increase the validity of its products. The company planned to make its

products available in retail outlets through its dealers network, spread across

2600 dealers.

EUREKA FORBES- FRIEND FOR LIFE

Customers have always been the center of business for Eureka Forbes; they

strive to be in close touch with having also taken initiative to educate their

customers to change their perceptions and practices. According to the Eureka

Forbes Limited officials, A sale is only the beginning of the relationship,

however, company makes special efforts to let the bonds of friendship endure

through their service. Everyone at Eureka Forbes Limited strive hard to make

a customer their Friends for Life. Eureka Forbes has rechristened their

offices to Customer Response Center, making them the hub of all customer

centric efforts. A significant part of their revenues come from relationship

marketing including service contracts, spares and accessories sale, products

up-gradation and new references. As more channels to reach out to customers

were introduces, organization was restructured to harmonize these multiple


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avenues of interaction and present a single face to the customer is everyones

customer under the process of Convergence.

A 5 billion multi-product, multi channel corporation. Operating in over 92 cities, with over 6000 employees. Pioneers and leaders in water purification systems, vacuum cleaners

and air purifiers.

Pioneers in direct selling- Asias largest selling organization- 5000strong direct force touches 1.25 million Indian homes, adding 1500

customers daily.

Customer family now numbers over 5 million- enduring relationshipsas Friends for Life.

Expanded channels that reach out to customers to include a 3800 strongdealer sales network. A 58 distributor strong institutional sales

network.


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STUDY OF VERTICES AT EUREKA FORBES

VISION OF EUREKA FORBES


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MISSION OF EUREKA FORBES


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THE VALUES OF EUREKA FORBES


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CERTIFICATE OF EUREKA FORBES


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EUROSMILE- WE GO MILES FOR YOUR SMILES

Service at your doorstep. Indias largest after-sales service network-over 650 service

centers.

3000 trained technicians make 10000 calls a day. Single number access- 24 hours in 8 major cities-39883333 Only genuine spare parts. Free routine check-ups and free service camps. Annual maintenance contracts- the largest in the country. Mobile service vans.


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A specialized service by Eureka Forbes to provide all the

information about Eureka Forbes products and services at one

single number- available 24 hrs*365 days.

The Euro Help Line provides the following:

Gives complete information about products and services. Locations of Customer Response Center 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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CERTIFICATION OF EUREKA FORBES

Factories ISO 14000 and 9000 certified.

Tested and certified over 100 laboratories in India, US, UKand South Africa.

Certifications include those from the highly reputed Bureauof Indian Standards (BIS), University of Minnesota;

University of Pretoria, South Africa; Water Quality

Certificate- USA; Water Quality Certificate- Thames Water

Center, USA; University of Sunderland- England.

Indian Standards Institute (ISI) Certification Indian Medical Association (IMA) Endorsement Incorporates prestigious International Water Quality

Association (WQA) Certified carbon block that removes

pesticides.

CE Certification for unmatched safety of products


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MANAGEMENT STRUCTURECHAIRMAN

Pallonji Mistry

MANAGING DIRECTOR

Suresh Gokhlani

CHIEF EXECUTIVE OFFICER

ASLAM KARMANI

NATIONAL SALES MANAGER NATIONAL SALES MANAGER

Ajay Sharma Ravi Kumar


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THE DREAM OF EUREKA FORBES


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MARKET SHARE

It is estimated that approximately two-thirds of the existing

water purification market belongs to UV water purifiers and

one-third is shared between reverse osmosis purification systems

and chemical purifiers. In the UV purifier segment, Eureka

Forbes Aquaguard is the clear market leader with

approximately 68% market share. Other brands include Philips

Intelligent Water Purifier with 7% and HULs Pureit with 255

market share. The UV purifier market is estimated to be growing

at a lower rate than the chemical based segment.

Reverse osmosis purifiers, which are rather expensive and not

the preferred option in many areas, have a smaller share of

market when compared with UV purifiers and chemical based

systems. In the reverse osmosis segment, Eureka Forbes is again

the major player with 60% share. A major portion of the

remaining 40% belongs to Kent reverse osmosis systems.


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MARKET TRENDS

The water purifier market is seeing a three-way fight between the two global

giants, Hindustan Unilever and Philips, and the local market leader. Eureka

Forbes which has unleashed a new national campaign for its economy water

purifier brand.

Both HUL and Eureka are gearing up to woo the large section of the lower-income group which could not afford ultra-violet water purifiers with a

starting price of about Rs 5,000 and do not have steady supply of electricity

and tap water HUL, which began selling its Pure it brand of water purifier

nationally earlier this year, is now being challenged by Eureka Forbes with itsAqua sure brand launched nationally this month.

Aqua sure uses a resin based technology in which the water is treated by a

chemical like bromine and then the chemical is removed from the water after

it purifies it. This product also does not need electricity.

Eureka is straddling the retail and also direct selling model to increase its

market share and keep HUL at bay. While HUL is selling its water purifier at

Rs 1,800, Eureka has priced one of its models at Rs 1,600.

Industry experts say that in India three types of water purifiers are being

marketed now ultra-violet based, reverse osmosis and resin based. The

country's largest water purifier maker Eureka Forbes' Aqua guard is the

market leader with 68 per cent in UV-based market.

In reverse osmosis (RO) as well the company enjoys 60 per cent share and

Delhi-based Kent RO systems has 40 per cent share. RO based water

purifiers are the most expensive section of the water purifier market and arc

priced at Rs 13,000 and above.


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Philips, on the other hand, which uses L'V-based technology to purify water,has dropped its price to Rs 6,995 from the initial launch price of Rs 8,500.

Industry sources say its struggle to establish itself in the market with lesser

priced water purifiers by competitors has been difficult.

Out of the 220 million households in India, only about 8 million use water

purifiers. Eureka Forbes has a reach of 6 million households. HUL, in its first

three years of operations, has already sold 1 million units.

DIFFERENTIATE FROM OTHERS IN THE INDUSTRY_

Eureka Forbes Ltd is one of the largest companies in water purifier industry.

The company is working is Iwo way first is direct marketing and second ischannel marketing. Eureka Forbes Ltd. is first company in India who is

dominant in direct marketing .in the sense on direct marketing is to sell theproduct direct to the end customer. In this marketing there are no

intermediaries. This type of marketing contributes 75% sales turnover. On the

other hand Eureka Forbes Ltd. is also dominant channel marketing. This is

followed by company to distributors, distributors lo dealer, dealers lo end

customer. This type of marketing contributes 25% sales turnover.

In this company's water purifier have unique 5 stage purification process inthis purification process there are 5 filters.

Stage 1 there is a particulate filter which is removes dirt & floating

particles.

Stage 2 there is sediment filter which is removes suspended impurities.

Stage 3 there is a Bio stat carbon block which is removes bad odor an d taste

and also removes chlorine and organic chemicals.

Stage 4 there is active disinfectant to seeks & destroys Disease-causing

bacteria and virus

Stage 5 there is special activated carbon for retains the natural taste of

water.


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KENT is dominant in industry by channel sales. But this company use

advertising. The brand ambassador of Kent is bollywood actress Hema

Malini.

Kent Purification by RO followed by UV with TDS Controller to maintainnatural minerals in water .Computer Controlled Operation with Filter Change

Alarm & UV Fail Alarm .After a preset time. Filter Change Alarm is audible

which indicates the time to replace the filters. If the filters are not changed

within next 60 hours of use, the purifier will stop functioning. In case the UV

stops functioning, UV Fail Alarm is audible. The purifiers will not function

until the UV lamp is replaced .Stylish eye catching modem design."Purified

water level indicator" on storage tank .Enhanced purification through anadditional Micronics Filter .Spin Welded RO Membrane Housing to prevent

tampering .Secondary purification by UV after RO ensures enhanced water

quality throughout service cycles .Monitoring filter replacement in time helps

maintaining the optimum filter & water quality.8 liters of purified water

storage capacity that makes water available on demand, even in the absence

of electricity / water supply. Fully automatic operation with auto-start and

auto-off & Built-in SMPS to operate within 160-300 AC voltage.

Philips have good name in electronics world. So the water purifier of Philips

sells with their brand name. Philips water purifier have advanced state-of-the-

art UV (PLS) technology destroys known waterborne viruses, bacteria,

parasites and amoebae while the activated carbon and sediment filler removes

turbidity, chlorine, volatile organic chemicals (VOC's), cysts, larger micro-organisms and improves taste. The maximum flow rate of 1.2 liter per minute

ensures that you have safe drinking water available at any time.

HUL is the very big FMCG Company. In water purifier industry this

company has one product that is pure ft. In pure it has a (i.m.e.i kill battery).

This technology kills allharmful viruses and bacteria and removes parasites

and pesticide impurities. Pureit is available in two attractive colors that are

Royal Blue and Burgundy.


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PORTER'S GENERIC COMPETITIVE STRATEGIES

To analyze a firms success in an industry in which it is operating its position

in the industry and its attractiveness should be evaluated, a firm can perform

profitably, even though the industry is not lucrative, if it can employ its

resources optimally. If the company determinant of a firm's profitability is the

attractiveness of the industry on which it operates, an important secondary

determinant is its position with in that industry. Even though an industry may

have below-average profitability, a firm that is optimally positioned can

generate superior returns.

Michael E. Porter suggested that all strategies are the derived strategies from

generic strategies. They are given below:

1. Cost leadership strategy: - a firm gains cost leadership in an industrywhen it's cost of production is lower than that of its competitors. It cangain cost leadership by managing its processes and resources efficiently

this strategies involves attempting to minimize cost in every aspect of

the business.

2. Differentiation strategy: - firm that adopt the differentiation strategysuccessfully have access to advance scientific research ,a highly skilled

labor force, effective communication strategies, etc. a firm maydifferentiate its products and service in various way . It maydifferentiate itself from others in terms of design or brand name.

3. Focus strategy: - a firm is pursuing a focus strategy trend to serve aspecific segment instead of catering to the entire market. This segment

may be a special group of customers, a specific geographic area or

particular product or service line. A firm following a focus strategy and

also a differentiated strategy will have advantage of pricing their

products higher.

In water purifier industry, the product is divided into two segments. First

is reverse osmosis (RO) segment and second is ultra-violet (UV) segment.


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In Reverse Osmosis (RO) segment the Eureka Forbes Ltd follow cost

leadership strategy because this company has three types of RO Systems.

These are used for low TDS (Total Dissolved Solids) water and high TDS

water. All the three products of this company are different for their storage

capacity, purification stages and models. And this company is working for

about 25 years so it has a brand name and lot of goodwill in the market.

On the other hand, Kent also comes in water purification industry with their

product. Kent follows focus strategy and differentiation strategy because

Kent is working only for one product, i.e. Kent RO. Kents brand ambassador

is Bollywood Actress Hema Malini. Philips also comes in this industry with

their brand name and it follows differentiation strategy.

In Ultra Violet (UV) Segment, the Eureka Forbes Ltd follow cost leadership

differentiation and focus strategy because this company has five types of UV

filters those are differ for their features like storage capacity, electric and non

electric, water inflow and outflow, etc. The company has a good brand

image. In this segment, the company targets all levels of customers. On the

other hand, HUL follows the differentiation and focus strategies because the

company has a good brand name and HUL has only one product, i.e. Pureit.

HUL, which began selling its PUREIT brand of water purifier nationally

earlier this year, is now being challenged by Eureka Forbes with its

AQUASURE brand launched nationally this month.


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4PS ANALYSIS

The major marketing management decision can be classified on one offollowing tour categories

1. Product

2. Price

3. Place

4. Promotion

These variables are known as the marketing mix or 4 P's of marketing. They

arc the variables that marketing managers can control in order to best satisfy

customers in the target market.

Product: - The product is the physical product or service offered to the

customer. In the case of physical product, it also refers to any services or

conveniences that are part of the offering. Product decision includes aspects

such as functions, appearance, packaging, service, warranty, etc.

Price: - Pricing decision should take into account profit margins and the

probable pricing response of competitors. Pricing includes not only the list

price, but also discounts, financing, and other options such as leasing.

Place: - Place decisions arc those associated with channels of distribution thatserve as the means for getting the product to the target customers. The

distribution system performs transactional, logistical, and facilitating

functions.

Promotion: - Promotion decisions are those related to communicating and

selling to potential consumers. Since these costs can be large in proportion to

the product price, a break-even analysis should be performed when making

promotion decision. It is useful to know the value off a customer in order to

determine whether addition customers are worth the cost of acquiring them.

Eureka Forbes Intro

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