Eureka Forbes Marketing

Description
Marketing for Eureka Forbes. It covers its history, industry analysis, competitors, SWOT, 7P's service, pricing strategies, porter.

Eureka forbes

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 • Comes to India in JV with FGL(forbes gorkak limited)- named Eureka Forbes • Euroclean & Aquaguard

Journey in India
• Had to establish the concepts of Vacuum cleaners and Water purifiers before selling. • Core strength : Dynamic highly motivated sales force. • EUROCHAMPS- The friendly man from Eureka Forbes • Gained foothold after initial hiccups through many sales and marketing strategies

EUREKA FORBES Company Profile
• Rs. 10 billion multi-product, multi-channel corporation part of the Shapoorji Pallonji Group with Over 7,000 employees • Leaders in domestic and industrial Water Purification Systems, Vacuum Cleaners, Air Purifiers & Security Solutions • A strong service network that backs up sales efforts – 4500 company trained technicians – Supported by Call Centres, Customer Care Representatives & Mobile Service Vans

EUREKA FORBES Company Profile
• Pioneers in Direct selling - Asia's Largest Direct Sales Organization
– 7,000 strong Direct Sales Force touches 1.50 million Indian homes, adding 1,500 customers daily – Customer family now numbers over 6 million enduring relationships as "Friends For Life" – Operations in over 131 cities & 398 towns across India.

EUREKA FORBES Company Profile
• Expanded channels that reach out to customers to include
– A 10,000 strong dealer sales network – A 58 distributor strong Institutional Sales Network – Security Systems Division - one of India's largest system integrators – A customer finance scheme, Eurovalue, for customers to easily obtain the means to Live Healthier Lives

EUREKA FORBES Company Profile
• Eureka Forbes - A Business Superbrand
– Aquaguard & Euroclean - Chosen Superbrands – Ranked among India's Most Admired Consumer Durable Companies – Best Employers (4 times in a row) – Winner of 'Most Admired Knowledge Enterprise' MAKE- Asia Awards – A case study at the prestigious Harvard Business School – Winner of awards on Customer Responsiveness – Winner of Water Digest awards

Products Offered By EUREKA FORBES

Water Purifier Industry
• Approximately 80% of diseases in India are caused by water borne micro organisms • The urban Indian is more health conscious than rural consumers • It is estimated that around 80% of urban dwellers do not purify tap water • Switching by consumers from boiling to water purifier • The demand for effective water purifiers is growing rapidly • The three principal players today are Eureka Forbes, Hindustan Lever and Philips

Water Purifier Product Line
Aquaguard
Economy • Aquaguard Classic • Aquaguard Compact

AquaSure
Powerboil
• AquaSure AQUAFLO • AquaSure Aquaflow Dx • AquaSure CRYSTAL • AquaSure DESIGNA • AquaSure Elegant RO • AquaSure Ivory • AquaSure Platinum • AquaSure RO+UV • AquaSure SpringFresh RO • AquaSure Star LX • AquaSure Storage UV
Sureboil • AquaSure Mobile Water Purifier • AquaSure Royale 1800 • AquaSure Steel • AquaSure Storage 4 in 1 (18 Litre) • AquaSure Storage 4 in 1 (25 Litre) • AquaSure Supreme 3000

Direct One
Aquaguard Integra Hi-Life

Special Usages • Aquaguard Booster • Aquaguard Hi-Flo • Aquaguard Total NF • Aquaguard Total RO • Aquaguard Total RO PROTEC+ • Aquaguard Total RO SMART TURBO

Total Protection • Aquaguard Total Gold Nova • Aquaguard Total INFINITI • Aquaguard Total iNOVA • Aquaguard Total Reviva • Aquaguard Total SENSA

AQUAGUARD Compact
? Powered with e-boiling+, an Intelligent Purity Sensor system and Mineral Preserver system, Aquaguard Compact removes waterborne disease-causing bacteria organisms, impurities and more. ? Ensuring that the water your child drinks is absolutely pure and safe. ? Only Aquaguard guarantees every mother totally pure water, by offering a range of solutions to take care of every impurity.

AQUAGUARD Total REVIVA
? Aquaguard Total introduces you to the revolutionary Reviva. Equipped with Reverse Osmosis Plus, the new Reviva removes harmful lead, a cause of brain damage, especially in young children.

? It also helps protect your family from water-borne disease-causing bacteria, virus and protozoa including cyst and harmful disease-causing chemicals like pesticides and more.
? Ensuring that every drop of water your family drinks is pure and safe

AQUAGUARD Total SENSA
? The all new Aquaguard Total SENSA is the world's first water purifier with BluG.
? The patented Blu-G senses the quality of input water and auto-selects the best water purification technology UV or RO. Ensuring that every glass of water is pure, perfectly balanced and rich in minerals.

? Aquaguard Total Water Purifiers are the only purifiers in India that are endorsed by the Indian Medical Association.

Major Competitors
• • • • • • • • • • • • • • • Kent grand, Hindustan unilever –pureit, Philips intellegent, Whirlpool Pure Fresh, Jaipan, Alpha Dewdrop, Eurotek System, GenPure R.O System, Bionics Aqua Tech Kenstar water purifier, Krona, Astro-boy-water purifier, Euro Fabs, Euro riva water purifier, Aqua fresh water purifier

Comparative Analysis

Eureka Forbes - AquaSure Machine Features Type of Water Purifier Storage Capacity (Litres) Methods of Purification Purification Stages Pre-Filter Purification Candle-Filter Purification Silver-Impregnated Activated Carbon Purification Ultra-Violet Purification Reverse Osmosis 4 Yes No Yes No NO Storage Type 13

Hindustan Unilever - Pureit

Storage 9 4 Yes No Yes No NO Germkill Processor and Unique Polisher

Other Methods

Active Disinfectant / Special Carbon

Exteriors Material of Body Exterior Features Colours Available Power Requirement Power Required After Sales Service No No White-Blue White and Maroon ABS Plastic Foodgrade ABS Plastic

Warranty Period (Years)
Price

1 year
Rs.1800/-

6 months
Rs.2000/-

Whirlpool - Purafresh Deluxe Machine Features Type of Water Purifier Storage Capacity (Litres) Storage 6.5 6 Yes No Yes No Yes

Eureka Forbes - AQUAGUARD TOTAL RO Storage 9 6 Yes No No No Yes Particle Filter, Clarity Cartridge, PreTaste Enhancer Cartridge, Post-Taste Enhancer Cartridge and Nano Silver Medium

Methods of Purification
Purification Stages Pre-Filter Purification Candle-Filter Purification Silver-Impregnated Activated Carbon Purification Ultra-Violet Purification Reverse Osmosis

Other Methods

Plus Sediment Filter, Pre Carbon Filter and Post Carbon Filter

Exteriors Material of Body Exterior Features Colours Available Technical Specifications Flow Rate (Litres/Minute) Water Pressure (kg/sq.cm) Power Requirement Power Required Warranty Price Yes 1Year Rs.15950/Yes 1 year Rs.14500/1.25ltr/min 0.5 1.5ltr/min 0.6 Grey Blue-White ABS Plastic ABS Plastic

AquaSure SpringFresh RO Machine Features Water Pressure (kg/sq.cm) Storage Capacity (Litres) Storage Capacity(Litres) Methods of Purification Purification Stages Pre-Filter Purification 6 Yes 0.4 8 1 -10

Kent Excell Super 0.3 7 1 -10 5 Yes

Candle-Filter Purification Silver-Impregnated Activated Carbon Purification Ultra-Violet Purification (UV)
Reverse Osmosis (R.O) Other Methods Purification Stages Technical Specifications Flow Rate (Litres/Minute) Power Requirement Power Required Power Consumption (Overall) (Watts) Voltage (Volts) Frequency (Hz) Exteriors Material of Body Physical Features Colours Available After Sales Service Warranty Price

NO
YES

NO
YES

NO
YES Sediment-Filter, Pre-RO carbon Cartridge, Post RO ... 4-6 No Info

NO
YES Reverse Osmosis Technology 4-6 No Info

25 230 50 ABS Plastic White 1 Year Rs.12,900/-

27 240 50 No Info White 1 Year Rs.13,500/-

Research objectives
• Competitors’ Analysis
– (a) Product Satisfaction – (b) Product Improvements

• Company Analysis

SWOT Analysis of Eureka Forbes Aquaguard
Strengths:
1. Generic Name to Water Purifiers
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Brand Image

Price

Word of Mouth

Previous Experience

Others

Reasons for choosing Eureka Forbes Aquaguard

Strengths:
2. Wide customer base

Strengths:
3. Technological Edge
Technology ______________________________|______ 1 3 5

4. Direct Selling Pioneer 5. Low maintenance cost

Weaknesses:
1. Inadequate after sales service

Reason for Dissatisfaction
Maintenance Cost 10% Others 5%

After Sales Service Price Price 26% After Sales Service 59% Maintenance Cost Others

Weaknesses:
2. Dependence on Power 3. Price too high

Opportunities:
1. Very less penetration of Water Purifiers in India

Source: R S Rajan, vice president, consumer marketing, Ion Exchange India Limited, Mumbai, personal communications, February 20, 2008

Opportunities:
2. Water – A lucrative business - Water need doubling every 20 years - 1.3 bn (20% world population) lack access to safe drinking water 3. Leverage the brand name

Threats:
1. New entrants - No entry barriers - Consumer is capricious - HUL & Philips 2. Conventional competitors

Threats:
3. High R & D cost - Incur R&D at low margins - HUL & Philips can incur R&D by “Transfer Revenues”

7 P’s of Service Marketing
• Offer you make to a customer can be varied by altering the P’s • E.g. High profile brand – More Focus on promotion, less on price

Water Purifiers 1. Aquaguard • Economy Aquaguard Classic • Special Usages Aqua guard Booster • Total Protection Aqua guard Total Gold Nova 2. Aqua Sure • Power boil Aqua Sure AQUAFLO • Sure boil Aqua Sure Mobile Water Purifier Aqua Sure Storage 4 in 1 (25 Liter) • Direct One Aqua guard Integra HiLife

Vacuum Cleaners •Direct One Sparkle •Euro clean Complete Cleaning Euro clean Wet & Dry •Daily Cleaning Euro clean Turbo •Deep Cleaning Euro clean ACE •High Pressure Cleaning Euro clean Power Wash •Forbes Easy Clean Late Forbes Easy Clean Swift Trendy Niño Trendy Steel

Air Purifiers

Security Solutions

Euro air 2000 Euro air Genius

Home Security H 100 HW 200 I-Link B 100 I-Link BW200 I-See LYNX REN OMNI-400 Video Door Phone VISTA-20P

Industrial Solutions Products
Carpet Cleaners & Extractors Cleaning and Hygiene Products
•Heavy Duty Floor Cleaner •Degreaser •House Keeping Air Freshener Glass Cleaner Hand wash •Marble Safe Cleaner •Multi Purpose Cleaner •Neutral Floor Cleaner •Toilet Bowl Cleaner •Kitchen / Ware Washing Oven and Grill Cleaner Utensil Cleaning Liquid

Industrial Vacuum Cleaners
ATEX Pneumatic Vacuums A 15 / A 17 Single Phase Vacuums - Wet & Dry CFM 127 CFM 137 ECOIL 13 IW 2050 Three Phase Vacuums - Wet & Dry CFM 3308 CFM 3508 CFM 3707 / 3907 CFM SOL 5W ECOIL 22 R 305 V/X White Line Series CFM 150/36

Commercial Vacuum Cleaners
Dry BACKUUM GD 110 GD 930/930 S2 GU 350/450 UZ 964 Wet & Dry GWD 350-2 GWD 375-2

Floor Cleaners & Maintainers

High Pressure Cleaners

AX 410
Combination Machines Scrubbing, Drying and Sweeping CR 1200

Automatic Scrubber Dryers CA 340 CA 551 Brunishers SDM 53-1500 Single Disc Scrubbers 421C 510B SDM 43-DUO Walk behind sweepers SW 750

Cold Water P 2-28 XT P 330 XT P 3-40 XT Hot Water N 3-26 N 4-42

Product

Brand Name Strategies
1. 2. 3. 4. Individual Brand Name Family / Umbrella Brand Name Company name Private label/Store Brand

Eureka Forbes - Umbrella Brand name “Aqua” in all its products

• 1. 2. 3. 4. 5.

Ways to price a product Market Skimming (Higher price but not sustainable)– Followed by EF One price strategy Psychological Pricing – Can be implemented Leader Pricing Market Penetration – New product strategy

Place(Channel Levels & Dist Strategies)
Manufacturer

INTERNET – Low barriers to entry, Wider audience
Manufacturer

Consumer ZERO-LEVEL

Retailer

Consumer ONE LEVEL

Promotion-Elements Integrated to form Campaign
1. Personal Selling – Euro Champ acting on behalf of org.(75% of sales) 2. Sales Promotion – BOGOF, money-off, Exchange offers etc. E.g. EFL :1 Year after sales service, free batteries , grants & scholarships for env. Research, introductory offers for new products 3. PR – deliberate & planned at new product launch , controversies clarification E.g. Legal case HUL vs. EFL 4. Exhibitions – Create awareness, encourage trials. E.g. ICE 2008, 09,Elecrama, Mumbai marathon 2010

Promotion-Elements Integrated to form Campaign

5. Direct Mail – database access 6. Advertisement – Paid communication E.g. Newspapers, online ads, bus sides, hoardings, Implied ads movies 7. Sponsorship - associated with certain cause

Promotion-Elements Integrated to form Campaign
• 1. 2. 3. 4. 5. Social Marketing – Rain water harvesting Swine flu helpline R & D in water borne disease Pollution control camps Seminars on water related subject

Pollution level indicator

Promotion based on AIDA
Awareness in new Markets Interest Creation in New and Existing Markets Desire to drink safe and pure water Action Buying the product
AIDA Applies to both product as well as to the after sale customer service

Pattern of Segmentation
Selective Specialization
M1 M2 M3

P1

P2

P3

Physical Evidence – material part of service
• Some org rely heavily on it for mktng campaign • Packaging, internet/web page. Brochures, furniture, uniform • EFL Interaction with their trained sales force, website - extensive

People – Can alter service as required
• Training, Personal Selling, Customer service • E.g. EFL USP - salesman solving your query, uniform etc. Process – means to achieve an outcome. Have i/p, throughput , o/p. Mktg adds value at each stage • Feedback can be taken & mix can be altered • EFL - Inquiry to installation process – inefficient. • Can be improved to build customer/brand loyalty

Aqua Sure Steel Sure Boil
Features
? Advanced 5 stage Sureboil water purification technology ? 2 Way Tap To Monitor Flow ? Total Capacity 18 Litres (Lower Drum 8 Litres) ? Cartridge Life - 1800 Litres ? Unique 5 Stage Purification Process ? Stainless Steel Finish Body ? No Boiling Required ? No Electricity Required ? No Running Water Required ? Kills Disease Causing Bacteria and Virus ? Does Not Use Chlorine ? IMA Certification ? Technical Specifications* ? Dimensions (W x D x H) mm : 270 x 236 x 500 mm Net Weight : 2 kgs

New Market - Rural India
• • • •
• •

• • • •
• •

Direct selling (Panchayat) Awareness of water-borne diseases Health camps with doctors Pamphlets filled during health camps and then providing free demo No electricity required Reward system for extra sales to dealers – Brand Loyalty Increase sale through distributors > 25% One-price strategy Renting the purifiers(Rs. 450/- per month) Micro finance organizations – Credit facilities Set up W.P plants - Providing pure water at 10 – 15 paise per liter Water testing kits – Check water samples

New Markets - Tier II Cities
Why Tier II? - Low Penetration - Disposable income - Health conscious Marketing - Direct selling - TV Advertisement - Sponsorship - 360 Degree Marketing - Free after sales services for certain period - Intimating the customers about change of catridges

NEW Markets - Educational institutions
• Problems: - Difference in type of water - After – sales service

Financial Projections

New Product - Aquaguard
Packaged Water USP of the product Facts: - Bisleri has 60% market share - The industry is growing at 40-50% - 76% consumption in transit - Low penetration & High Competition

New Product - Aquaguard
Marketing & Benefits
Aquaguard – Synonymous to purified water Differentiation Size & Shape of the Bottle Positioning Distribution Purifiers are Competitors



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