Professional Documents
Culture Documents
PROJECT GUIDE
Date of Submission
___/___/______
GROUP NO.
E 1137
GROUP MEMBERS
Abhishek Mishra
Anshul Bharsham
Naveen Rastogi
Rohit Yadav
Shailesh Yadav
Table of Content
1. Executive Summary
2. Acknowledgement
3. Methodology
5. Sector Outlook
6. Company Background
7. Distribution Network
8. Selection of Dealers
9. Service Network
14. Questionnaires
Executive summary
This project aims to study the distribution channels, sales network and service
patterns of the telecom sector through an analytical and comparative study of two
leading companies- Bharti Airtel Limited. & Vodafone Ltd. The project also tries
to bring out the shortcomings, if any, in the present system and thus recommends
suggestions to improve the same. The project also gives insights into the various
financial terms, norms of the sales and service departments as per the guidelines of
the telecom industry.
The project was designed after detailed discussion with the company officials on
three parameters i.e. distribution network, service network and sales functioning.
The project also includes the insights given by the dealers and officials of the
company.
Firstly, the project discusses the distribution network of the two companies and the
functions carried out by the channel members. Bharti Airtel Limited being the
largest services provider in India definitely has a wider reach and more number of
dealers than vodafone.
The project also covers the financial terms of the company with the dealers and
that of the dealers with the customers.
Secondly, the project discusses the sales functioning of the two companies, which
includes aspects such as the hierarchy of the sales department prevalent in the
company; the responsibilities and functions of the sales force, their performance
appraisal structure etc.
Finally the project covers the service network of the two companies which deals
with the after sale services and their effectiveness provided by both the companies
and various complaints and queries are handled by them.
Acknowledgements
We are very thankful to the entire dealer, service, and sales network of Bharti
Airtel Limited and Vodafone Limited for their cooperation, without which
completion of this project would not have been possible.
We are extremely grateful to for sharing with us all the details of the project and
providing us with valuable insights about sales, distribution & servicing function.
We would like to thank them for the patience shown by them and being of such a
great help to all our queries.
We would also like to express our gratitude towards our professors Maninder
Singh, for giving us an opportunity to do this project on sales and distribution and
for being the guiding light through the completion of this project.
Methodology
The objective of this project on sales and distribution is to do an analytical and
comparative study of the sales, service and distribution function of two players
from the chosen business sector.
The business sector chosen for this purpose is the fast growing telecom sector, and
the players chosen for study from this sector are:
VODAFONE, FRANCHISEE
VODAFONE AUTHORISED DEALERS
BHARTI AIRTEL LIMITED – Territory Sales Manager
THE INTERNET
www.google.com
www.askjeeves.com
www.indiainfoline.com
www.snowcem.com
www.airtel.com
LIMITATIONS:
It was difficult to ask for time required for a detailed discussion on the
questionnaire & therefore several aspects of the questionnaire were answered
briefly.
The company officials did not divulge details about competitive sales policies,
strategies & certain financial terms with dealers as they find it to be a confidential
piece of information of the company.
SIZE
• India is the fifth largest telecom services market in the world; $17.8 billion
revenues in FY 2005
• Industry grew by about 36% in FY 2005 over FY 2004
• The Indian telecom market size of over $8.3 billion is expected to treble
itself by year 2011-2012, according to Ernst & Young. "The Indian telecom
market size of over $8.3 billion is expected to treble itself by financial year
2012. Thus there is a significant opportunity for telecom players.
• Telecom market has grown at about 25% p.a. over the last 5 years
• Wireless segment subscriber base grew at 85% p.a.: fixed line segment at
about 10% p.a.
STRUCTURE
• The Indian telecom market has both public and private sector companies
participating:
• Public sector has over 60% market share, down from 90% in 2000
• Private companies have added subscribers at a CAGR of 192% since 2000
• Mobile operators have deployed both CDMA ( 16 million users) and GSM
(55 million users) wireless networks
• Value added service features constitute 10% of revenue today (2 % in 2001)
POLICY
Sector Outlook
OUTLOOK
POTENTIAL
Bharti Airtel
In March 2008, Bharti Airtel will leverage the expertise of Singtel to roll out
third generation services in Sri Lanka. This is because Singapore-based
Asian telecom major Singtel, which owns a little over 30% in Bharti Airtel, is
a major player in the 3G space as it has already third generation networks
in several markets across Asia
Recently Sunil Bharti's Airtel launched its calling card in America specially
for the NRI (Non-resident Indians) and people calling from America to India
at a cheaper rate as compared to the tariff offered by other providers.
On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel
for US $1.6 billion; and purchased a controlling stake in rival Hutchison
Essar.
The businesses at Bharti Airtel have been structured into three individual
strategic business units (SBU’s) - mobile services, telemedia services
(ATS) & enterprise services. The mobile services group provides GSM
mobile services across India in 23 telecom circles, while the ATS business
group provides broadband & telephone services in 94 cities. The enterprise
services group has two sub-units - carriers (long distance services) and
services to corporates. All these services are provided under the Airtel
brand.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and
The National Stock Exchange of India Limited (NSE).
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti
Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has
successfully launched an international venture with EL Rothschild Group to export
fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the
first private telecom services provider with a footprint in all the 23 telecom circles.
Bharti Airtel since its inception has been at the forefront of technology and has
steered the course of the telecom sector in the country with its world class products
and services. The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBU’s) - mobile services, broadband &
telephone services (B&T) & enterprise services. The mobile business provides
mobile & fixed wireless services using GSM technology across 23 telecom circles
while the B&T business offers broadband & telephone services in 94 cities. The
Enterprise services provide end-to-end telecom solutions to corporate customers
and national & international long distance services to carriers. All these services
are provided under the Airtel brand.
BUSINESS DIVISIONS
Bharti Airtel offers GSM mobile services in all The group offers high speed broadband internet
the 23-telecom circles of India and is the with a best in class network. With Landline
largest mobile service provider in the country, services in 94 cities we help you stay in touch
based on the number of customers. with your friends & family and the world.
CHANNEL STRUCTURE
TERRITOTY MANAGER
Tie up
Retailers Alternate Channels
Brand/Store etc
Airtel follows a strict policy in selection of the dealers, and therefore it is necessary
to fulfill the following pre- requisites to be eligible to become a dealer:
1) The dealers should have a sound financial background. The financial capability
of a dealer is solely depended on the discretion of the company officials.
2) The dealers should have a good market reputation, since the dealers help the
customers in forming the first impression a customer has about the company.
3) The dealer should have a good previous track record,i.e of timely payments, no
criminal background etc.
4)The dealers should have good market penetration. The companies ability to gain
maximum customers in this era of competition solely depends on the penetration
the dealers have in the market.
5)The last criterion of dealers selection for Airtel is the area the dealers cover.
This would include different geographical areas which are covered by a dealer.
RESPONSIBILITIES AND FUNCTIONS OF THE DEALERS
Airtel believes in “Customer Loyalty” and thus Airtel expects that their dealers
apart from selling paint products should perform the following functions for better
customer relations’ management:
1) Sales promotion through regular promotional schemes, road shows,
campaigns etc. the expenses incurred by the dealers is shared by the
company only if these activities are for promotion of the company and not of
the dealer.
2) Recruitment- done under the guidance of certain Airtel officials
The dealer should be in regular touch with the customer, keep taking his feedback
and ensure maximum customer satisfaction. The dealer should also try and
convince the customer to try newer product’s of the company.
Pre sale
Selling
Post sale services
SALES KIT:
PERFORMANCE APPRAISAL
MARGINS
The company gives margins at the time of sale of the product. The margin varies
according to the type of the product.
PROMOTIONAL ACTIVITIES
Airtel actively supports its cannel members with promotional activities.Airtel helps
performing these activities on a daily basis ..Further these are divide in to different
levels which are
Zonal level-zonal staff is involved in this. These include various kinds of road
shows.
Airtel had market surveys with respect to their channel members and general
market surveys.
Company Background
Vodafone limited
Vodafone established its presence in India in 1994 by acquiring the cellular license
for Mumbai. It now has operations in 16 circles accounting for 70% of India's
mobile customer base. With over 27.7 million customers, it is one of India's most
reputed telecom companies.
vodafone, under the Hutch brand, over the years, has been named the 'Most
Respected Telecom Company', the 'Best Mobile Service in the country', and the
'Most Creative and Most Effective Advertiser of the Year'.
Hutchison Essar is now part of Vodafone - the world's leading international mobile
communications company. Vodafone now has operations in 26 countries across 5
continents and 36 partner networks with about 225 million proportionate customers
worldwide. Vodafone has tied up with Essar as its principal joint venture partner
for the Indian operation.
.
The Essar Group is one of India's largest corporate houses with interests spanning
the manufacturing and service sectors like Steel, Oil & Gas, Power, Telecom &
BPO, Shipping & Logistics and Engineering & Constructions. The Group has an
asset base of over Rs.20 billion (US$ 4.4.billion) and employs over 4000 people.
Prepaid Outlets
Want to go Hutch and stay connected anytime, anywhere? Just visit a Hutch
outlet in your neighborhood and choose from a range of affordable Postpaid or
Prepaid connections.
VODAFONE Shops
Whether you're looking for a new vodafone connection, or a fresh handset,
you'll find it here. You can also subscribe to any of our value added services or
get more information on them. Pay your bills, get your queries answered, and
lots more.
Hutch Shops are located at very convenient locations around the country.
Select your region to find one near you.
Vodafone Teleshops
Did you know that a range of vodafone services are available in your very own
neighborhood? Just walk into a Hutch Teleshop, just round the corner, for
anything you need.
At a vodafone Teleshops you can buy a new postpaid or prepaid card, pay your
bills, reactivate your connection, and much more.
Distribution network
A supply chain is described that consists of all the parties and their supplied
activities that help us to create and deliver services to the final customer.
The front channels are specially kept in mind.
ACTIVITIES:
1. Order
2. Handling
3. Storage
4. Display
5. Promotion
6. Selling
12. What are the margins you provide to your Channel Members?
13. How do you assign targets to your sales personnel’s and what
type of targets?
THANK YOU
Questionnaire
(For Dealer’s/Retailer’s/Franchisee)
10) How will you rate the efficiency of your sales persons
a) Very Good b) Good c) Satisfactory d) Poor e)
Very poor
11) Does company provides you with any assistance by means of
promotional activities?
a) YES b) NO
If Yes, Numbers, Timing, Quantity of promotions.
12) Do you provide appraisals to your sales persons?
a) YES b) NO
If Yes, on what Parameters?
CONSUMER QUESTIONNAIRE
Q.6 How do you rate these connection in terms of customer care services ?
V.Good Good Neutral Bad V.Bad
Vodafone 1 2 3 4 5
Airtel 1 2 3 4 5
PERSONAL DETAILS
NAME: ________________________________
AGE: ______
OCCUPATION: _________________________
ANALYSIS
Rating of Airtel in terms of network
120
100
80
VBAD
60 BAD
NEUTRAL
40 GOOD
EXCELLENT
20
0
1 2 3 4 5
90
80
70
60
VBAD
50
BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
120
100
80
VBAD
60 BAD
NEUTRAL
40 GOOD
EXCELLENT
20
0
1 2 3 4 5
100
90
80
70
60 VBAD
50 BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
90
80
70
60
VBAD
50
BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
100
90
80
70
60 VBAD
50 BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
90
80
70
60
VBAD
50
BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
120
100
80
VBAD
60 BAD
NEUTRAL
40 GOOD
EXCELLENT
20
0
1 2 3 4 5
80
70
60
50 VBAD
40 BAD
NEUTRAL
30
GOOD
20 EXCELLENT
10
0
1 2 3 4 5
120
100
80
VBAD
60 BAD
NEUTRAL
40 GOOD
EXCELLENT
20
0
1 2 3 4 5
100
90
80
70
60 VBAD
50 BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5
90
80
70
60
VBAD
50
BAD
40 NEUTRAL
30 GOOD
20 EXCELLENT
10
0
1 2 3 4 5