Firm focused on direct selling to sell more products through outlets.
Eureka Forbes, better known for its sales agents giving demonstrations
of products such as vacuum cleaners and water purifiers at homes, is
changing its marketing strategy.
The company, with close to 8,000 door-to-door sales force, largest in Asia, would now focus more on selling products through retail outlets.
Marzin Shroff, CEO of direct sales and senior vice-president of marketing, said the change in people’s lifestyles and increased competition is driving the shift for the company, which till a few years back relied exclusively on direct sales.
“Nowadays both husband and wife are working, so there is no one at home and therefore the direct sales force is unable to reach a large segment of people.”
Also, the company cannot ignore the retail channel given the rising competition, he said.
New players including Luminious Water, Panasonic. Electrolux and Kelvinator have entered the water purifier market, which is estimated to grow to Rs 7,000 crore by 2015.
The company already faces competition from HUL, Tata Chemicals, Kent RO and LG.
Eureka Forbes had started testing the retail channel a few years earlier but had maintained it would sell only select entry-level products through the route.
Shroff said they are now selling several models, both premium and mass segment, across national and regional stores and Canteen Department Stores. Moreover, it is manufacturing certain products only for the retail channel.
However, the models being sold in stores are cheaper than the those sold by direct sales force.
“You have to be cheaper in retail as people are looking for good value for money products. Also, there is a severe price competition,” Shroff said.
Apart from stores, the company is also focusing on e-commerce.
Though it forms a small part of overall sales, the channel helps in getting leads for sales.
Eureka Forbes is also looking to grow in the packaged drinking water segment which it entered in 2010.
It is trebling franchise partners to 80 from 26 to ensure better sales and distribution of its product -- Aquasure.
The Rs 6,000 crore packaged drinking market is severely competitive with biggies like Bisleri, Tata Global, PepsiCo, Coca-Cola and several other regional players.
The company aims to capture market in key states of Andhra Pradesh, Karnataka and Tamil Nadu. Shroff said, “We are charging Rs 1 less and have also increased margins to the retailers to gain market share.”
Source: http://to.ly/mb5b
The company, with close to 8,000 door-to-door sales force, largest in Asia, would now focus more on selling products through retail outlets.
Marzin Shroff, CEO of direct sales and senior vice-president of marketing, said the change in people’s lifestyles and increased competition is driving the shift for the company, which till a few years back relied exclusively on direct sales.
“Nowadays both husband and wife are working, so there is no one at home and therefore the direct sales force is unable to reach a large segment of people.”
Also, the company cannot ignore the retail channel given the rising competition, he said.
New players including Luminious Water, Panasonic. Electrolux and Kelvinator have entered the water purifier market, which is estimated to grow to Rs 7,000 crore by 2015.
The company already faces competition from HUL, Tata Chemicals, Kent RO and LG.
Eureka Forbes had started testing the retail channel a few years earlier but had maintained it would sell only select entry-level products through the route.
Shroff said they are now selling several models, both premium and mass segment, across national and regional stores and Canteen Department Stores. Moreover, it is manufacturing certain products only for the retail channel.
However, the models being sold in stores are cheaper than the those sold by direct sales force.
“You have to be cheaper in retail as people are looking for good value for money products. Also, there is a severe price competition,” Shroff said.
Apart from stores, the company is also focusing on e-commerce.
Though it forms a small part of overall sales, the channel helps in getting leads for sales.
Eureka Forbes is also looking to grow in the packaged drinking water segment which it entered in 2010.
It is trebling franchise partners to 80 from 26 to ensure better sales and distribution of its product -- Aquasure.
The Rs 6,000 crore packaged drinking market is severely competitive with biggies like Bisleri, Tata Global, PepsiCo, Coca-Cola and several other regional players.
The company aims to capture market in key states of Andhra Pradesh, Karnataka and Tamil Nadu. Shroff said, “We are charging Rs 1 less and have also increased margins to the retailers to gain market share.”
Source: http://to.ly/mb5b
