Airtel Money

Develop a model for identifying Recharge outlets with a strong affinity to do high quality airtel Money business**
** gross with low decay coupled with good throughput

Bibartan Roy

Methodology
Generate insights from Guide, Mentor and project sponsor

Conduct market visits to get a feel of the ground level reality about the product
Based on the findings from market visits and basic data analysis, visit shortlisted outlets, Determine parameters that are common to high performing airtel Money stores Complete data analysis concerning trends in prepaid and develop an algorithm. Apply same to identify high potential airtel Money .

Implement changes and monitor them

Executive Summary
Retailer involvement and product visibility are good determinants of Money success Airtel prepaid throughput is also a good determinant of AM outlets Std minutes are a very strong indicator of airtel Money potential (P2B) Analysis of Present Money Outlets: To identify scope for specific promotions Competition outlets are low hanging fruit

A. Retailer involvement and product visibility are good determinants of Money success

Key Determinants of Airtel Money success at retail level

Time & Manpower Awareness (Branding) Knowledge & motivation of retailer

Manpower at outlet and Money visibility are key drivers

Acquisitions vs Manpower
35 30 Manpower 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 35 30 Manpower, 3 EA, 25

Dedicated manpower at the outlet has a very strong correlation to the Acquisitions at the outlet. R square value is almost 60%`
Acquisitions vs Branding

Branding helps in creating awareness And hence interest amongst customers This also has a high degree of correlation

25 Branding 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 EA Branding

B. Airtel prepaid throughput and decay are also a good determinant of AM outlets
Acquisition Common attributes of the winners
Avg. prepaid rechargeRs 35000 Std packs Sale-22 packs Data Tertiary-Rs.1498 R-offer Participation-30

High

Decay Low Can be upgraded to Winners

Decay High

Low

Acquisition

Common attributes of the winners

Prepaid recharge Rs 35000 Std Sales-22 Data Tertiary-1498 R-offer Participation-30

When these criteria are applied to the universe of prepaid dealers, we identify another 800 high potential winners with potential to acquire high gross and low decay

800 outles Geographically identified below

350
300

No. of 200 Outlets

150 100 50 0 Ahmedabad Baroda North Gujarat Rajkot Surat

250

Zones

C. STD minutes are a very strong indicator of airtel Money P2B

Questions:
Why STD minutes? Would increasing the number of outlets in high STD sites increase P2B?
STD % vs P2B Total >30% STD >60% STD # sites 7923 2900 1150 as a % of total Sites 37% 15% # doing P2B 412 285 178 % doing P2B 5% 10% 15% P2B(Cr) 3.74 3.61 3.4 as a % of total P2B 97% 91%

Analyis
No. of Greater than 60% STD outlets, form to only 15% of the total sites, contribute to 91% of total P2B Conversion of sites into P2B also increases from a 5% total to 15% for high STD sites P2B doing sites have an average of almost 5 sites as compared to 1 outlet for non-P2B sites

P2B vs Avg. no. of outlets Total >30% STD >60% STD # sites 7923 2900 1150 Not Doing P2B 1.3 1.3 1.3 Doing P2B 4.5 4.6 4.8

Inference: Focus on having AM outlets, in STD rich sites

Ahmedabad City, Thematic Map

Sites with high STD minutes should have enrolled Money outlets. Highlighted below are sites in Ahmedabad city where STD traffic is high

but zero Money outlets , some of them highlighted with circles

Number of airtel Money retailers at the site, Gujarat STD business as % of total business at site, Gujarat

Geographically Sites being identified..

30-60% STD >60% STD >60% STD 30-60% STD

Need more Outlets

No P2B

No Outlets present, in outlet these sites with With at least 1 AM & >30% STD, high STD %, doing no P2B At 1 LSO to be looked into and possibly least This needs FSEtake servicing the site, with no other AM measures to encash these outlet in his beat opportunities

D. Analysis of Present Money Outlets: To

identify scope for specific promotions
Parameters to select outlets to do activities & Promotions
>18 8%

% outlets
0 40%

12-18 8% 6-12 16%

High Data packs High SMS packs

Potential Outlets Utilities: 1082 Up to potential: 150

2-3 8%

1 12%

4-6 8%

12-18 8% 6-12 13%

>18 8%

% outlets
0 50%

High STD packs

Potential Outlets P2B: 2573 Up to potential: 280

Selection Criteria for promotions

While selecting Outlets for P2B; High STD recharges as well as Low ticket sizes should also be taken into consideration For Recharges and utility, we can aim at high Data usage outlets with moderate to high ticket sizes

4-6 7%

1 9% 2-3 5%

E. Competition outlets are low hanging fruit

Competition such as SBI Tiny, ICICI Fino, Suvidha and Alpha Money already do estimated Rs 50 Crore of P2B business in Gujarat. So, huge opportunity lurks in the market.

Online transfer ICICI Bank provides free net connection and in some places even PC Money gets transferred within an hour Retailer commission monthly

SMS transfer Customer pays for each SMS ATM Card, which provides opportunity to withdraw cash as well Retailer commission monthly

SMS transfer Gamut of services too vast-Utilitites, Rc, transfer Retailer commission monthly

Pricing comparison

P2B-Pricing Comparison: Service charge to Customer

SBI airtel money Suvidhaa Transfer Amount TINY/KIOS 1% 1.5% K/EKO Fino Alpha Money Tata 2% MRupee

Competitor Estimated Outlets In Gujarat

Fino Tiny Suvidhaa 350 300 400

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

10 20 30 40 50 60 70 80 90 100

25 40 60 80 100 100 100 100 100 100

15 30 45 60 75 90 105 120 135 150

30 40 50 60 75 -

20 40 60 80 100 120 140 160 180 200

30 40 50 60 75 -

With Rs. 5000 as the transfer amount we are 50% less costly than competitors

Targeting these outlets is a must; our rates are lower for the customer as well as our Profit sharing with the retailers. The retailers are often not aware of this.

Potential in the market-Ahmedabad city

Major 1 Fino Category # outlets Avg Total A 10 3 30 B 30 0.8 24 C 40 0.25 10 Total 64 2 Alpha # outlets Avg Total 150 0.3 45 45 3 Suvidhaa # outlets Avg Total 80 0.5 40 40 Grand total 149

There is NO presence of SBI Tiny in Ahmedabad City: confirmation from Mr. B.C Raval-AGM SBIMain Branch, Ahmedabad. Salient Features Distribution for these competitors are through normal telecom outlets and ticket counters Our rates the most nominal to the customers Commission to retailers by all competitors is monthly basis.

Minor 1 SBI Green Remit Card 2 Tata Mrupee

There is potential of around 1.5 crores in Ahmedabad market itself. Estimated around 50 crores opportunity in Gujarat.

Comparative Analysis:
Sl. No. 1 Parameters Parent Service from company Customer Trust Service to Customers Charges to customer Awareness to Retailer Fino ICICI Excellent Suvidhaa Yes Bank Good Highly Trustworthy Average(2-3 hrs) 1.5% Medium 0.75% 100 Telecom Mostly airtel Money airtel Good Alpha Money UBI Good Highly Trustworthy Average (2-3hrs) 2% Meduim 1% 200 Mostly Telecom

Weak areas & need to improve

2 3 4 5 6 7 8

Highly Trustworthy
Fast (1 hr) Variable (3%1.5%) High 0.5% 80

Trust Issues
Slow (4 hrs) 1% Medium-High 0.5% 1600 Telecom

Commission to Retailer(P2B)
Penetration in Ahmedabad (outlets) Distribution Withdrawing facility Transactions (lakhs) Utilities other than P2B

Our strength areas; need to leverage these more

Telecom+Ticketi Mostly ng outlets

10
11

No
65

No
40

No
8

Yes (ATM card)

45

12

No

Yes

Yes

Yes

In order to weaken competition, we have to penetrate into the ticketing outlets Facilitities for non-airtel customers to transfer money should be made Issuance of receipts

Suggestions & course of action

Status

Bring in more airtel Money Outlets in sites with high STD % and no AM outlet. Instead of investing all efforts in non performing outlets, we can concentrate on the potential outlets in both P2B and for Utilities. Bring in other Prepaid outlets with the Winner characteristics into Airtel money Recruit personnel from 3rd party agencies to man selected outlets , to negate time issues for retailer Target competitor outlets

Sites have been identified Potential outlets identified & activities started 800 new outlets shared and in process of enrolment 30 recruited, 20 more in pipeline

Analysis done. Location of some of the outlets are being targeted.

What else could have been done..

Analysis

FSE intent analysis-FSE minutes spent on Airtel Money, by a time-series analysis could have been done. Can be given cue cards etc. New outlets venture-Amul owner actually showed interest in doing business with us. High footfall+ good manpower. FSE wise decay analysis-decay as a measure of no of AM outlets to total no of outlets in the beat & check for correlation with Decay

Feasibility Check Can be done through a sample analysis

Pilot with few outlets Full end statistical validation and analysis needs to be completed to map behavior

Thank You