"The promise was clear: To create a company that wouldn't be about bricks, mortar or sales graphs, but driven by something far more potent. Something that would stand the test of time: relationships."

In 1999, Eureka Forbes Ltd. (Eureka Forbes), the leading vacuum cleaner and water/air purifier equipment company, announced a major policy change that came as a surprise to the Indian corporate world. The company, regarded as the pioneer of direct marketing in India, was planning to focus more on the retailing business in the future. Commenting on this decision, S Goklaney, Managing Director, Eureka Forbes, said, "Direct sales permits us to exploit only the top end of the market."

This move was in accordance with the company's plans to increase the visibility of its products. The company planned to make its products available in retail outlets through its dealer network, spread across 2,600 dealers. With this move, Eureka Forbes also planned to increase the sales revenue generated by the retail division. Eureka Forbes Senior Vice-President, Sales and Marketing, Palekar, explained, "While the dealer channel contributes 10% to the overall sales turnover of the company, the direct sales route contributes 75%."

The same year, in another major departure from the business practices adopted since it began business in India, Eureka Forbes announced its decision to enter the bottled water market. The company wanted to position itself as a one-stop shop for products related to providing pure water. Industry watchers questioned this decision, observing that most manufacturers of bottled water were regional players and very few brands had an all-India presence. Parle's Bisleri mineral water brand, the only national level player at that point of time, was expected to pose stiff competition to Eureka Forbes.

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 world over and, consequently, sell off its 40% stake in Eureka Forbes.

Marketing Strategy, Advertising, Market Research, Brand Management, Services Marketing, CRM, Retailing, E-Marketing, Sales Management, bricks, mortar, sales graphs, test of time, relationships, Eureka Forbes joint venture, sales business world, Bisleri mineral water brand, Sales, Marketing, products.