Eureka Forbes Case Study

Eureka Forbes
Saikat Sarkar EPGCMM11036
1. Should Goklaney roll out the new 'Bettering the Best' program through entire sales
organization? What changes, if any would you like to recommend to the current plan?
The new plan cannot be rolled out as it is and requires certain reforms.
a) The proposed rewards linked to the points system were too small to make a difference.
The rewards should be linked to certain stages separately based on the merit of that
stage.
b) Some territories are more lucrative than others. The commissions should be determined
based on the sales territories and customer portfolios.
c) The final goal is sales which brings the ROI. But there can be discrimination if somebody
does more sales and yet perform less in the lower stages compared to others who have
less sales but has done well in the initial stages. No solution has been given to this issue.
d) To keep a track on each EuroChamp will be extremely tedious on the respective
managers which will affect their own performance.
e) The new set of reporting and paperworks should be reconsidered and a more consise
format should be brought in place. Computer traing is also required.
f) There can be exaggeration in reporting stage level achievements and some kind of
evaluation aspect should be brought in to judge the authenticity.
g) The restructuring requires a significant change in mindset which should be addressed
since older employees were accustomed to the previous model.
h) The monthly reward of top performers with Rs. 500 across ranks seems a bit on the
lower side and should be in descending order from the EuroChamps as the rank rises.
Top EuroChamps should get more than 500 to keep the spirits high since they are at the
front end.
The current plan lacks certain aspects as mentioned below which should be changed:
a) The means to achieve the target is not valued and hense customer relationship building was not
very good. This should be an area of focus.
b) The target was only achieving sales and hense did not address the customers actual point of
views or requirements. So was not generating further insights.
c) Since it was only about achieving the goals, morales may go down for Eurochamps if he is not
able to get appropriate sales targets which may result in quitting the organization.
d) This plan is more about customer acquisition more than customer retention and referrals which
is actually the company’s goal.
e) Since the target is sales sometimes the sales person goes through the demonstration process
mechanically missing out of certain ques and hense lose sale.
f) Unclean and damaged demo instruments should have a proper system of maintenance.
g) Senior representatives have no incentives for training new ones.
h) Territories should be properly defined to avoid conflicts among employees. Some territories are
also more lucrative and some not. There should be separate system of evaluation based on the
territories.
i) There should be rewards for staying longer in the company to bring in low attrition rates.
j) Trainings are not given proper importance and sometimes was only for two days due to lack of
proper system which can be improved with a better system.
2. Define the role of the EuroChamp? What sales tasks EuroChamps undertake?
EuroChamps are the front line direct sales representatives who carry the following sales function as
mentioned below in the tasks. They were primarily men in their early 20s from lower middle class
homes. They are expected to effectively read and write in English. The job is result oriented. The focus is
more on achieving the target than the means to get it. The compensation is based on the targets
achieved. They bring the products to the customers home, demonstrate it and sell. They can be called
the actual on the field soldiers for the company who did the entire process of sales after the product is
developed.
EuroChamps undertake the following sales tasks:
 Attending morning meetings

 Cold Calls
 Carrying the demo to the consumers home
 Demonstration
 Customer objection and query handling
 Sales
 Collecting and depositing payments
 Attending night meetings for the final details and further planning
 Creating reports 3 times a day
 Recruiting friends
 Training new recruits
3. What are your views on the current approach to compensation? Does the new
program change this approach? How?
In the current approach the job is high pressure because of the physical, psychological and
economic factors associated with it. The final achievement is recognized only after the goal is
met and doesn’t have option of validation or recognition to the buildup path or stages of
progress to the final goal. The base compensation structure of a EuroChamp included salary,
rent, allowance, leave travel concession, holiday bonus, medical reimbsment and travel
reimbursement. Commissions were earned on the basis of sales volume. A EuroChamp could
earn as much as two thirds of his monthly earnings in the form of commissions. As per the
numbers (60 demos, 10 sales, 50 customer contacts per month) there was a lot of emphasis in
number of sales done and earning commissions accordingly. Other forms of recognition included
membership in Achievers club, Silver Circle Club. The high performers were given full paid
holidays to exotic destinations. This system looks somewhat fair but lacks a very important
factor. Since it was only about achieving the goals, morales may go down for Eurochamps if he is
not able to get appropriate sales targets which may result in quitting the organization. It is
strictly achievement based which might be a little unfair since practicalities and on ground
situations may not be same always and may vary from time to time.
The new approach does bring in a lot of positive aspects than the current one. It brought in daily
evaluation system to monitor performances better. The issue of recognizing efforts at each
stage of the process was also brought in and not just the final sales made. . This provided a
sense of achievement with each stage that was achieved in the entire process of sales. This
system will surely add motivation among the EuroChamps and help in enhancing the process at
each stage level e.g increase in demonstration and othersThis will also help develop the
productivity of low performers.

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What is the role of a EuroChamp?

What are your views on the current approach to compensation?

Eureka Forbes

Saikat Sarkar EPGCMM11036

EuroChamps undertake the following sales tasks:

 Attending morning meetings

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