Eureka Forbes - The Direct Marketing Pioneer

ICMR HOME | ICMR Case Collection

Case Details:

Case Code : MKTG022
Case Length : 11 Pages
Period : 1999 - 2001
Pub Date : 2002
Teaching Note : Available
Organization : Eureka Forbes Ltd.
Industry : Varied
Countries : India

To download Eureka Forbes - The Direct Marketing Pioneer case study (Case Code: MKTG022) click on the button below, and select the case from the list of available cases:

Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Current Exchange Rates
INR 300.00 = USD ($),
= GBP (£),
= EURO (€)
Currency data courtesy coinmill.com
INR is INDIAN RUPEES (Rs.)

» Marketing Case Studies Collection
» Mini Cases on Marketing Management
» Micro Cases Studies on Marketing
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

To Purchase IBSAT 2008 Bulletin & Application Form
Click Here

<< Previous

No More Direct Marketing? Contd...

The fact that these developments came at a time when the partners in the Eureka Forbes joint venture, Forbes Gokak Ltd. (FGL) and Electrolux AB (Electrolux), were engaged in a bitter boardroom battle, added to the air of uncertainty surrounding the company.

The tiff had started in early 1999, when Electrolux announced its decision to walk out of the direct sales business worldover and, consequently, sell off its 40% stake in Eureka Forbes. Company observers stated that Eureka Forbes could find it difficult to succeed in the retail business without Electrolux's financial support and marketing expertise. The decisions to shift from direct selling to retailing and to enter the bottled water segment were being eyed with suspicion by analysts. Commenting on these decisions, analysts said that since Eureka Forbes was a relatively new player in the retail business and did not have much experience, it could have a tough future ahead.

Background Note

Fred Wardell, a well-known businessman of Detroit, Michigan, launched vacuum cleaners under the Eureka brand name in 1909. Eureka's vacuum cleaners were sleek, versatile and lightweight, while most of the vacuum cleaners manufactured those days were clumsy and difficult to use.

Within a few years, the company became well-known for its innovative product range. In 1913, Eureka launched vacuum cleaners in six different models and offered various add-ons for cleaning floors (bare/carpeted), walls, upholstery, and crevices. The company adopted the direct marketing route from the very beginning and its sales personnel delivered personalized services to customers.

As vacuum cleaners became increasingly popular in the early 1900s, Eureka employed around 5000 salesmen and opened over 400 branches to cater to growing customer demand. Within a decade, Eureka had established itself as the market leader in the Vacuum Cleaner industry.

The company acquired reputation for high quality products and excellent customer/dealer relations. In 1915, Eureka received the highest award for vacuum cleaners in those days, the ‘Grand Prize,'by a jury of electrical experts at the San Francisco International Exposition...

Excerpts >>