INTRODUCTION Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest and world's third

largest cellular service provider with more than 82 million subscribers as of December 2008. It also offers fixed line services and broadband services. SingTel owns over 30% of the Bharti Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister company of the brand 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 agric - 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 productsand services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM...

Sales & Distribution strategies of Bharti Airtel Ltd. A multi-regional marketing and sales team builds both direct and indirect sales channels. Regional organizations are responsible for the definition of the sales & marketing strategies, and plans for their respective territories. Each region also provides significant inputs and reviews of the corporate strategic sales, marketing, and product direction. In order to capitalize on the opportunities in each geographic region, Bharti

Airtel has put into place a network of on-the-ground, experienced and incentivised sales and marketing personnel. The teams there build both direct customer relationships as well as indirect channels (through handset manufacturer, Network Solutions Provider, etc.). Company uses second and third degree distribution network. Second degree distribution network: =========================================== Company makes invoice of SIMs, PEFs, GSM Pay Phones, RCVs of various denominations chiefly Rs.10, Rs 30 and Rs. 60 to only Urban Distributors and Rural Super Distributors. Easy balance is also transferred to only Urban Distributors (UDs) and Rural Supers (RS). Urban distributors distribute the above items to retailers according to the demand and transfer easy balance to retailer through FOS SIM. Therefore, this setup of distribution is Second Degree and it is more suitable for catering to the need of urban areas. Third degree distribution network: ========================================== RS distributes the above items to Rural Distributors commonly known as RDs and transfers easy balance into Rural Distributors SIM. Rural Distributor then distribute the above items among the retailer according to the demand of it and transfer easy balance to retailer through FOS SIM from easy balance of Distributor SIM. This three level distribution is used to reach to sub urban and rural areas. Relative comparison and advantages of second and third degree distribution network: ======================================================= =========================== Ø Second degree distribution is suitable for urban areas because the demand is higher, there is high population density and that’s why quick availability of product and services are required. Ø As the UD gets items directly from the company so products, services and promotion materials can be made available to retailers in shorter period of time. Ø UD can generate secondary and consequently primary in shorter period of time. Ø Three degree distribution is suitable for catering to rural areas because lesser population density and large spread of geographical areas. Ø Since in rural areas there is poor banking infrastructure and courier services hence for availability of products and services, three degree distribution is more appropriate.

Field officer sales (FOS): FOS is manpower of UDs and RDs, who on behalf of them sell the SIM, RCVs, Easy balance etc. to retailers under his assigned beat. These are only manpower of the distributors who works in the market. Roles and responsibility of FOS: FOS is responsible for the secondary sales under his assigned beat. FOS is responsible for collecting PEFs, money against billing by retailer and distribution of promotion material among retailers in consultation with TM. Circulate communication from the company properly to Retailers regarding schemes, new offers, incentives etc. FOS resolves the retailer complains through FOS help line. To escalate the unresolved claims and complains of retailers to distributor and TM. Urban Distributors: ==================================== These are known as UD and located at District HQ. It distributes the products, easy balance, services and promotion material to retailer in designated urban areas of a district and responsible for smooth attainment of target of SIM activation and recharge without encroaching into other distributor’s territories. All retailers’ Lapu SIM falling under the particular beat is mapped with corresponding FOS of that beat and FOS SIM is mapped to the distributor (UD) SIM. Distributors use distributor SIM to transfer and distribute Easy Balance to mapped FOS. FOS uses FOS SIM to transfer the easy balance to mapped retailer’s Lapu SIM.UD gets certain percentage discount on their billing to company. From which certain percentage discount they have to give on their secondary sales to the retailer. Thus Urban distributor works with certain percentage margin on all its sales. Each UD gets a distributor SIM, FOS SIM as many as per FOS and a 503 SIM or activation SIM. They have to make DD payments to company for primary only on Monday and Thursday per week. Roles and responsibility of Urban Distributors: Distribution of SIM, RCV, Easy Recharge, PEF, GSM Pay Phones, Lapu SIM, FOS SIM, Replacement SIM according to the retailers and other requirement within its territory only. Activate customer SIMs within its territory after proper checking of POI, POA and error free PEF. Collect all PEFs and Re-documents from retailers and send it to respective Circle Head Quarter. Distribution of promotional materials among the retailers according to the allocation of TM/ZSM, received from company. Maintains distributor health report, secondary details regarding retailers and SIM activation details. These reports have to be shared with TM. To make DD payments to company for primary on scheduled date only.

To maintain required stock of RCVs and Easy Recharge for 10 days secondary. Circulate communication from the company properly to retailers. Escalation of retailers’ claims and complains to TM/ZSM. Rural Super: ============================= These are known as RS and mainly located at district headquarters. It distributes the products, easy balance, services and promotion materials to its rural distributors only. Under one Rural Super there has to be maximum 12 RDs and they can maximum 1 cr turnover. They get certain percentage discount on their billing to company. From which certain percentage discount they have to give on their secondary sale to the RDs. Thus RS works withcertain percentage margin on all its sales. Each RS gets a RS SIM. They have to make DD payments to company for primary only on two schedule days per week. Roles and responsibility if Rural Super: Distribution of SIM, RCV, Easy Recharge, PEF, GSM Pay Phones, replacement SIM etc. according to the RDs requirement within its territory only. Collect all PEFs and Re-documents from RDs and send to respective Circle Head Quarter. Distribution of promotional materials among the RDs according to the allocation of TM/ZSM, received from company. Maintains distributor health report, secondary details regarding RDs and SIM activation details. These reports have to be shared with TM. To make DD payments to company for primary on scheduled date only. To maintain required stock of RCVs and Easy Recharge for 7 days secondary. To collect money for invoices to RDs on schedule date and arrange the supply of items of the invoices to RDs. Circulate communication from the company properly to RDs. Escalation of RDs’ claims and complains to TM/ZSM. Rural Distributors: ==================================== These are known as RD and can be located at blocks and towns. For every 5000 population there has to be a rural distributor. It distributes the products, services and promotion material in designated territory and responsible for smooth attainment of target of SIM activation and recharge without encroaching into other distributor’s territories. They get certain percentage discount from RS on their billing to Rural Super. They cannot get invoice from company directly. From which certain percentage discount they have to give on their secondary sales to the retailer. Thus rural distributor works with certain percentage margin on all its sales. Each RD gets a distributor SIM, one FOS SIM per FOS and a 503 SIM or activation SIM. They have to make payments to RS for primary only on two schedule days per week. Roles and Responsibility of Rural Distributor:

Distribution of SIM, RCV, Easy Recharge, PEF, GSM Pay Phones, Replacement SIM etc. according to the Retailers requirement within its territory only. Collect all PEFs and Re-documents from retailers and send it to respective RS. Distribution of promotional materials among the retailers according to the allocation of TM/ZSM, received from company. Maintains distributor health report, secondary details regarding Retailers and SIM activation details. These reports have to be shared with TM. To make DD payments to RDs for primary on scheduled date only. To maintain required stock of RCVs and Easy Recharge for 7 days secondary. To collect money for invoices to Retailers and arrange the supply of items of the invoices to Retailers. Circulate communication from the company properly to retailers. Escalation of retailers’ claims and complains to TM/ZSM and Rural Super. Retailers: =========================== Retailers are mainly mobile handset shops, phone booths, mobile servicing and repairing shops and other shops which are strategically located and from where customer can purchase the products and services. Retailer gets 3% discount from RDs/UDs on their billing to RDs/UDs. Thus retailer works with 3% margin on all its sales. Selected retailer gets retailer SIM known as Lapu SIM mapped with a distributor and a FOS. Roles and responsibility of retailer: ü Fill error free PEFs and verification of supporting copy for POI and POA of the customer with originals and same for the Re-documents before activating the SIM. ü Proper utilization and display of promotional materials. ü Communicate customers properly about the schemes, new offers and benefits. ü To sell the product and services to customer at right price. ü Serve the customers’ requirements with the available stocks of SIM, RCV and easy balance etc. and not to create artificial shortage. ü Should purchase RCVs, SIMs and Easy Balance from respective distributor only. Field officer sales (FOS) FOS is manpower of UDs and RDs, who on behalf of them sell the SIM, RCVs, Easy balance etc. to retailers under his assigned beat. These are only manpower of the distributors who works in the market. Roles and responsibility of FOS: FOS is responsible for the secondary sales under his assigned beat. FOS is responsible for collecting PEFs, money against billing by retailer and distribution of promotion material among retailers in consultation with TM. Circulate communication from the company properly to Retailers regarding

schemes, new offers, incentives etc. FOS resolves the retailer complains through FOS help line. To escalate the unresolved claims and complains of retailers to distributor and TM. Company supports and monitoring of sales and distribution networks Company has dedicated departments called as customer service division (CSD) which helps in the following ways to resolve the retailer complains, helps FSO to resolve the escalated retailer complaints and provides valuable supports to territory managers and ZSM in monitoring the sales and distribution networks. It resolves the customer general complains. It provides help line to retailers and FOS. It also provides help line to territory managers and helps them to resolve escalated retailer issues, FOS issues and other information required by TM.Communicates all service related message to retailers, FOS, distributors, TM and ZSM.

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