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Airtel the biggest telecom player in Indian market in terms of subscribers and revenue. It is operating in 20 regions of the country. From the days of initiation Airtel maintained an image of better networking, better consumer service in terms of CRM and a brand of high image which in other words can be said as Airtel’s USP. In Odissa market Airtel entered in the year of 2004 December and within three years of time it captured a lions share in the market. In some of the major cities Airtel is a market leader. After four years of operation in Odissa market Airtel played a game as it reduces the margin from distributor to retailer because it got the brand loyalty from the subscribers and succeeded with its PULLING strategy in the market also with some highly innovative value added schemes. In particular Cuttack market the Airtel faced a great challenge after the reduction in margin. Lots of strikes were done against company and many retailers refused to sale Airtels’ products and this made Cuttack the toughest market in the Eastern part of the country. It put a challenge in front of the sales team to maximize the sales. Though Airtel has 32% market share in Cuttack but it still facing tough challenge from its rivals. Airtel Subscribers: 1. Total number of subscribers in India is 9, 89, 08, 993. 2. Airtel has a market share of 31.65% of total 29, 93, 49, 436 GSM customers. 3. Airtel has 23 circles in India, has agreement allover the country except North East provision of the Country. 4. Airtel started its operation in Orissa in the year of 2004, 4th Dec. 5. Up to the latest report Airtel has a total 24, 96,023 subscribers in Orissa. Airtel in Cuttack: • • • • Population of Cuttack is nearly 7, 00,000 and 40% of this total population uses mobile phones. From total mobile subscribers Airtel has a market share of 32%, having highest market share in the Cuttack region. Airtelhas setup 55 BTS (towers), showing its quality and reputation of network coverage. Over 1620 Retailers(registered up to 6th May 2009) available in this Urban area and many more retailers’ sales Airtel vouchers also (these are not registered). (Those retailers sale Airtel sim are considered to be registered) CHAPTER - I INTRODUCTION NEED OF THE STUDY Airtel is an old & fastest growing company & leading in the communication market providing ever best possible service to the customers. New & advance facilities & plans are being introduced day by day & those are only to satisfy customers taking care of customers need. OBJECTIVES OF THE STUDY 1. To understand the awareness of Airtel products among retailers in the market. 2. To create interest as well as find out the potential new retail outlets 3. To analyze the retailer’s perception towards Airtel 4. To know the satisfaction level of Retailers towards Airtel products and services. 5. To maximize retail outlets through traditional channel that will increase the sales in future. 6. To create more numbers of Airtel subscribers. METHODOLOGY Data collection: Our study used both primary & secondary data. Secondary Data I have collected all the details from the FSEs and the team leader of the PK Agency distributor. Sources of Data 1. PK Agency team leader’s personal data. 2. Territory managers personal report behalf of exploration of business. Primary Data Primary data has been collected from the new retail outlets, existing outlets and new Airtel subscribers. Methodology 1. Meeting all the retailers (Those who are interested to sale Airtel products). 2. Explaining about the business and how to incur profit and giving them competitors’ feedback through one to one interaction. 3. Creating interest to become a new Airtel outlet by showing leaflets of different features. 4. Finding out the retailers through schedule method. 5. Convincing & creating interest through pushing strategy. 6. All the procedures were recorded through proper questionnaires. SCOPE OF THE STUDY By this study satisfaction as well as attitude towards the Airtel has been found out, which can be used in strategy formulation in Cuttack, Orissa. 1. Lacking & factor for dissatisfaction has been studied from Retailer point of view which can be taken care & improved. 2. Getting an opportunity to convince & interact with theRetailers. 3. Creating awareness & finding out potential Retailers for Airtel. LIMITATIONS OF THE STUDY At most attention was taken to eliminate any kind of biasness & mis-interpretation in the study to get optimum result. Even though the following limitations could have certain degree of impact on the findings. 1. The study was confined to Cuttack, PK agency only which may not represent the real picture of the entire Cuttack market. 2. Many retailers were not interested in Airtel because of steep competition in the locality among retailers. Data collected about satisfaction & awareness level may not represent the real picture as the sample size covered only 423 retailers. • Type of Research: A descriptive research has been followed for the study • Sampling technique: A cluster sampling has been used for the study. Sample Size: 1. Survey for Retail outlets: 423 2. Survey for New Subscribers: 862 3. Airtel special scheme promotion: 11 4. Survey for iBox and PCO: 134 SCHEDULE DESIGN There were different question patterns were designed for individual tasks and informal interviews were also conducted in case of new scheme promotion. Questions those have been filled by us according to the response of the respondents about the different questions & in the mean while their reaction towards the different perceptions towards different communication companies have been observed. There are some general questions to make them comfortable to answer. The parameters that are measured 1. Retailer reliability 2. Customer awareness 3. Customer satisfaction 4. Factor Preference Questions were designed for: 1. Opening up New Retail Outlets 2. New Airtel Subscribers Informal Interviews were followed in case of 1. Special scheme promotion 2. Selling of iBox and PCO. CHAPTER – II COMPANY PROFILE COMPANY PROFILE Bharti Airtel Type Public, Listed on BSE Founded 1985 Headquarters New Delhi, India Key people Sunil Mittal (Chairman and CEO) Industry Telecommunication Products Mobile and FixedLine Telecommunication operator Revenue $6 Billion Website www.airtel.in 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 83 million subscribers as of April 2009. It also offers fixed line services and broadband services. It offers its TELECOM services under theAirtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. SingTel owns over 30% of the Bharti Telecom. Bharti Airtel India’s largest integrated and the first private telecom services provider in all the 23 Telecom circles. With its world class products and services, BhartiAirtel since its inception, has been at the forefront of technology and has steered the course of the telecom sector in the country. The businesses at Bharti Airtel are structured into three strategic business units (SBU’s) – Mobile Services, Telemedia Services & Enterprise Services. The Mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles, Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solution to corporate customers and additionally provide national & international long distance services to carriers. We have recently forayed into Media Business by launching our DTH Services in October 2008. All these services are rendered under a unified brand “Airtel”. Bharti Airtel serves over 82mn customers as of October 31, 2008; of whom 80,199,747 subscribe to GSM services and 2,549,043 use Telemedia Services either for voice and/or broadband access delivered through DSL. They are the largest wireless service provider in the country, based on the number of subscribers as of October 31, 2008. BhartiAirtel has a dominant position in the GSM services with a market share of 34.5 % as of September 2008. The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited. This has been incorporated with an objective to provide “Shared Telecom Infrastructure” to telecom operators across the world on a nondiscriminatory basis. It’s commitment towards continuous innovation will enable optimization of future tower rollout and enhance operational efficiencies and result in substantial cost savings for its customers. The strategy of de-coupling infrastructure and backend processes from the core sales and marketing function was a strategy pioneered by Airtel and then implemented by a number of other companies. Bharti is the “total telecom provider” for India’s large enterprises. It
As per same Urban system few FSB works under each RD and they supply the products to the individual retailers.1500) . Their job is to supply those products to theRetailers. Distributor distributes the products to the FSEs’. In Rural Areas Same procedure is followed in the rural areas but the distribution system is different from Urban Area and the Margin is also different.They have a margin of 0.5% of Bharti’s total subscriber base. the outcomes are.) Stock system in distribution: The complete stock maintenance procedure is categorically divided in two parts. Airtel’s’ philosophy is “Value Creation” for the customers. The entire organization is tailored to bring focus to our customers’ need through a unique multi-dimensional structure.5% margin on RCV Rs. (The FSE visits each Outlet in alternative days whether their is any shortage of product or not. Territory Manager distributes the products as per demand for individual distributors. with a focus on providing mobile services”.000 towers will result in the company achieving 70% population coverage. Largest Private Fixed Line Operator In India. which is scheduled as per the target for the territory. 2. In urban areas the Margin for the Distributor is 1. once in every 2 days. Here 35% of the value must be in RCV. Continuous process improvement happens within the organization based on Voice of customers using six sigma methodology and knowledge management. an increase from 82.and 2. In Rural Areas the company is spending a margin nearly 4. Stock to be Maintained by Retailer In the case of Distributor: The distributor has to keep the LAPU balance for minimum 7 days. Business Strategy “To capitalize on the growth opportunities that the company believes are available in the Indian telecommunication market and consolidate its position to be the leading integrated telecommunication services provider in the key market in the India. by using a mix application of technologies.7% in the Q4 of the previous year. • • • • • Sunil Bharti Mittal. Prepaid customers account for 88. Largest Private Integrated Telecom Company In India.” Adjudged As the ‘Best Carrier India‘At the Telecom Asia Award 2008.000) subscribers Bharti Airtel’s enterprise Services. Airtel Was Chosen As The 2nd Most Trusted Service Brand In India In The ‘Most Trusted. Padma Bhushan Awards In 2007. (So the company has been taken a great step in sales maximization in rural areas that they will be able to reduce the margin and will not have a loss in rural areas. Regional. The Retailers margin is 2.) 13 SALES: (The way Airtel sales designed) Selection of Sales Force Controlling of Sales force . Functional. green belts. Largest Wireless Operator In India. . 2007.5%.Brand Equity Awarded With Top Honors At The GSM Mobile World Congress Conference 2008 In Barcelona for the Category “Best Billing/ Customer Care Solution. call management. The retailers have a margin of 2.10/. • Economic Times ‘Company of the Year 2007’ Award for Corporate Excellence Gallup Great Workplace Award for 2008 -Airtel is one of the only 20 companies worldwide and the only company from India to receive the prestigious award. and yellow belts. • ARPU has dropped to Rs 406. Products are supplied from the RS to the RD (Rural Distributors).They have a margin of 1.7%. • • • Focus on maximizing revenues and margins. Gallup Great Workplace Award For 2008. Focus on satisfying and retaining customers by ensuring high level customer satisfaction. Location.7% (2. All AES employees are trained in the strategy. Stock to be Maintained by Distributor 2. we want Airtel to be the most admired brand in India.5% and 2. an additional 30.7% ( 2.7%).7% on other RCVs) So.e. Blended monthly minutes of usage per customer in Q4 was at 475 minutes. Here 33% of the value must be in RCV. Leverage strengths of its strategic and financial partners. • • • Position itself to tap data transmission opportunities and offer advanced mobile data services. Bharti work closely with their enterprise customers to uniquely address all their strategic connectivity needs. 10/. Therefore it creates solutions that are flexible.3%.GSM Association Chairman’s Award 2008. Offer multiple telecommunication services to provide customers with a “one-stop shop” solution. It is also a compulsory task for each FSE to go and to ask Retailers whether there is any shortage of product. Adjudged As ‘Company of the Year’ At the CNBC India Business Leader Awards 2007.and for all other RCVs the margin is 2. Has completed 100% verification of its subscribers and in the process disconnected three lakh (300. lower than 10. black belt. Bharti has over 39 million users as on March 31. Largest Telecom Company Listed On Indian Stock Exchanges. robust Business process management system which helps in monitoring of output performance of processes in the form of Non Financial Parameters which are reviewed at different levels i. It has set a target of 125 million subscribers by 2010. • • • Loved by more customers Targeted by top talent Benchmarked by more business Airtel Mission We will meet the mobile communication needs of our customers through: • • • • Error-free service delivery Innovate products and services Cost efficiency Unified messaging solutions 10 CHAPTER – III DISTRIBUTION PROCEDURE & SALES FORCE 11 Airtel distribution channel: Airtel (company) Urban Area Rural Area Distributor Rural Super FSE Rural Distributor Retailer FSE Retailer ` Distribution procedure and Margins: In Urban Areas • • • • • Airtel directly supply its products to the distributors in Urban Areas through Territory Manager. Ranked 2nd In the Survey of India’s Most Respected Companies by Business world 2007. 1. National and crop office level. (SMS. completely 12 ••••• Company’s supply system to the territory manager is same procedure as per urban areas.1%.5% on RCV of Rs. The company is spending nearly 4% in Urban Areas. In the case of Retailer: The retailer has to keep LAPU balance for 3 days (minimum amount Rs. • • After the proposed network expansion. Non-voice revenues. Awards and recognition Bharti Airtel has received recognition for its innovative practices across the world. Brands 2008 Survey’ Conducted By The Economic Times . statistical tools and techniques of Six Sigma quality. scalable.David is busy connecting India to Europe.harnesses the power of alliances to combine with ownership of media and technologies to create business-enabling end-to-end solutions. 1. voice mail. hello tunes and Airtel Live) constituted 10% of total revenues during Q4.Airtel Vision “To provide global telecom services and delight customers” By 2010. President . Capture maximum telecommunication revenue potential with minimum geographical coverage. some are as Follows: • 3rd Largest Wireless Operator In The World.7% a year ago. The organization has been in six sigma champions. from this above analysis and distribution channel system. The supply system of Airtel is so strong that a Retailer will never go with shortage of product. The products at first distributed to the RS (Rural Super).
1.67 paisa effective cost to operator Validity main A/C (months) Validity dedicated (months) Voucher denominations PCO section Maximum Service price Rs 398 598 1398 PCO Phone 1984 1000 500 1500 2239 -240 1 4 iBox 2975 1500 500 2000 2985 315 1 6 19 decrement local Rs talk time Roi % validity days iBox talk time Roi % validity days Operator price 0. The cost of the Airtel or Coin box is Rs. In this recharge voucher the talk time is 0. solve potential problems and make your people more proactive. Airtel PCO & iBox: Airtel is also providing the PCO services in Cuttack region. Recharge voucher: In Every 1000 rupees of easy recharge the retailer must have to keep 33% of paper vouchers where the distributor has to keep 35%. At this situation the company provides a special voucher.as main balance valid for a month.) (The company made a calculation that if any retailer will have minimum 9 customers for PCO/iBox 18 then retailer will reach to the break even point on his investment. where.600/-. The sim is provided to the company at free of cost which the retailer can sale at maximum Rs 100/.where easy recharge is available up to RS 10. proposals and clients. Airtel PCO scheme: • Monthly Recharge scheme: Here the retailer has to recharge the PCO monthly wise. PCO Sales Problems: Stiff competition from TATA INDICOM. The cost of the recharge voucher is Rs. that is Airtel to Airtel free talk time of Rs. A retailer has minimum 5 easy recharge customers per month. and any follow up that might be required. failuring this target the SIM will be automatically deactivated. That’s why we can see the difference betweenAirtel sales growth and other challenger and follower.where there will be free offer the retailer will get.on words and easy recharges are available from Rs 30/.67 1244 33 60 356 33 30 400 178 33 0 200 . The next one will be his profit. Here the special offer is that “Reduction the in cost of the Annual Recharge Voucher”. named “Validity extension” voucher. when. what . Only regular retailers have this facility. At this cost of recharge the talk time is Rs.1500/. 500/-.Airtel also provides the facility for the one year recharge. Outlet categorize & Target setting 16 Products of Airtel SIM (Security Identification Module) • • LAPU: A SIM is provided to retailers from the company at free of cost for providing easy recharge service. Sales Force AutomationA sale force automation solution (SFA) is a system that automatically records all the stages in a sales process. RIM. 500/.356/-. Before this scheme the cost of the Airtel annual voucher was Rs. 400/-. • . The cost of sim to company is Rs 40/. Paper voucher is maximum available up to Rs 120/. At the installation cost. Promotional Offer for PCO and iBox (Coin box) during April 2009: • When any new retailer will have a new connection. Now Airtel provides this sim with 64kb memory. Here the cost of the voucher is Rs. This SIM has a memory of 128kb and specially designed for easy recharge purpose.Airtel to Airtel valid for next 6 months.67 354 33 30 0. and during this offer the company provided this voucher at the cost of RS. 15 CHAPTER – IV Products of Airtel. And will have a balance of Rs. here the retailer will get a talk time balance of Rs.Here Airtel provides Top up facility for further recharge .A situation where there will be no connection. Controlling of sales Force – They also control the sales force because they know the importance of control system in organization.and to whom we they can sale their product. BSNL TATA is preferred as it has less investment comparatively to Airtel and RIM (All of us mobile phones so why should I install a coin box. How.on words. • If the retailer will loose its recharge period then he will be unable to call through the PCO..with life time option.Though the validity period for this recharge is 1 year but Airtel dose not provide any talk time on this. he will have a talk time of Rs. • • • PRIMARY (The products those are supplied to the distributor from the company is said to be Primary) SECONDARY(The products supplied to the Retailers from the Distributors through FSEs is said to be Secondary) TERTIARY(Here the Retailer sold the products to the customers) • • • The base product of company. For your managers: now monitor the performance of your work force.400/. Maintenance problem occurs a lot with Airtel as the service provider is unable to do so. How it benefitsAirtel sales teamFor your business: your sales team can approach the market in an organized and efficient manner. iBox (Coin Box) 2. For your sales teams: now it’s easier to close a deal by keeping a track of your orders.51 and it is valid for 10days. The cost of the recharge voucher per month is Rs.) ( HERE DETAILS OF THE PCO & iBox IS PROVIDED. Recharge vouchers are available at different costs from Rs 10/. Motivating of sales force – If because of some reason any employee is not able to do their best performance in that case rather than any action they use motivation as a tool for increasing morale of that employee. through paid phone lists. Fully integrated in all departments that deal with customer service management. PCO (like BSNL land line facility) Airtel PCO As the PCO of Airtel is divided in two categories and as per the category their is significant price differentiation also available. They are using these entire four step for decide their sales force and each step they are also Check they are doing right things or not and if they thing changes are needed than they revised whole process again.67 532 33 45 0.) Table: 1 iBox Pricing and PCO pricing Parameter Customer Price FAT(A2A) FAT(A2All) Total Talk Time total coin collection @ 0. This includes a contact management system which tracks all contact that has been made with a given customer. • In the month of April Airtel provided a special offer on PCO for their sales maximization in PCO. This SIM has also Rs 300 talk time free Airtel to Airtel. required for new subscriber..and its validity is for 30 days. 178/.Sales Manager Training of Sales Force Motivating Of sales force Selection of sales forceThey recruited separate department for sales and work of those employee is to get or generate more and more revenue for organization. 14 What to getEnsures that your sales effort doesn’t get duplicated thereby eliminating the risk of irate customers.000/-. 2985/17 The cost of the Airtel PCO is Rs. They provide this facility in two ways. the purpose of the contact.The cost of the recharge is Rs 200/. 1985/These are the cost to the distributor (minimum selling amount). Training of Sales Force – After Recruitment they are trained their employee for effective working and in this training period they guided employee.600/-. Sales lead tracking system creates a list of potential customers or customers of related products.
12. yearly call reports 5. 24 Here the target for PK agency is provided bellow: Table: 6 Current Month Target(May 2009) PK AGENCY REPORT(Airtel Distributor .5 1 2. In Cuttack there are total 1620 outlets which registered.023 core. 432 iBox and 67 PCO (Up to 10th May 2009) Airtel Navaratna: The “AirtelNAVARATNA” award is a special way to encourage and appreciate the retailer’s performance. hands free speaker phone 13.monthly. Retailer’s margin compared with other service providers Table: 3 a. The margin has lots of importance because as per this the Company can have more number of Retail Outlets.000 to 1.Airtel maintains a category for its retail outlets. Hyderabad 75 Achieved 52 Target 5 PCO Achieved 0 iBox Target Achieved 15 13 I have worked for 6 weeks SSO locations SIM Sold Through Canopy (7 days) Turning Point (7 days) Mobile & Mobile (5days) Jaidurga Communication (7 days) Nigam International (14 days) Target 60 100 50 Sold 94 163 39 210 480 287 839 25 . COMPETION MARGINS( for Urban) OPERATOR DISTRIBUTOR RETAILER DISTRIBUTOR(PCO) RETAILER(PCO) Airtel Vodafone Aircel BSNL TATA RIM RTL Virgin !dea 3 1.000 15.000 30. 16*1 back light LCD Inbuilt fwt + 4.5 2 1. CATEGORY WISE MOVEMENT(Types of Outlets) Outlet Type as per (Outlet Type as Per Turn over monthly) SSO Outlet Type Cat A Cat B Cat C Cat D Cat E Turn Over in Rs.8 1. 21 (The company puts a sales target of 10% increment on each current month’s sales) Competition margin in the Cuttack market for all the Service Providers.Table: 2 Comparison of Airtel iBox with other operators Parameter Security deposit time hrs Y * 7000 to investment 8000 3000 paper rcv Top ups post paid N voucher N Rs 100 for 10 validity next quality of ocb na Local Local Visiontek ccb cases soled through service battery space required ISD in ccb more N M N M N little as all integrated * N 48 Y 48 .Cuttack Region) NAME Prasanna Chitta Ranjan Prafulla Ananta Samir Pradip Sing Total Activation 541 547 798 441 391 176 167 557 3618 Revenue 1814990 2037136 1584210 2048090 1259201 920727. daily .000 Type S1 S2 S3 S4 S5 S6 Number of Activation 75+ 50 to 74 30 to 49 11 to 29 5 to 10 1 to 4 SSO(sale/activation) 22 b. external adapter cum charger 10. phone book Airtel Retail Outlet Retail Outlet means those shops which sales Airtel products (SIM. Name of the Distributor (Table: 4) Number of FSE PK Agency JD Distributor Kamala Agency Tirupati Distributor(Choudwar) 8421 23 PK agency has the maximum area coverage in Cuttack region. vouchers).000 to 30.000 <15. (Exact amount not provided) On 8th April 2009 !dea entered into the Cuttack market and started pushing their products. booth display support (optional) 4. >1. Battery back up 4 to 5 hrs Incoming call restriction Battery low message on lcd Caller id 9. It is mandatory to achieve both parameters to be awarded.50. long beep at the start and end of the call 8.5 ah battery Automatic coin collection on call maturity Programmable 1. Airtel miserably failed to achieve their target and they achieved the 17% less than the target of previous month March 2009. Target setup for month of May with some new offers and aggressive selling strategy.3 1.72 Y phone and sms Y N days n Y Paper voucher n easy recharge Y 2222 lowest investment Y 72 Y 72 N 72 BSNL TATA RIM Airtel 20 Features of iBox • • • • • • • • • PCO 1.Cuttack Region) NAME Prasanna Chitta Ranjan Prafulla Ananta Samir Pradip Sing Total Activation 295 333 511 226 182 95 113 361 2116 Revenue LSO 99 108 74 85 78 82 57 92 675 SSO 65 73 41 65 51 44 43 73 455 New O/Lt 0 0 0 0 0 0 0 0 0 PCO 0 0 0 0 0 0 0 0 0 Total revenue earned in the month of April 2009 is Rs 1.5 (Airtel has 32% market share in Cuttack market) Airtel in Cuttack Market Number of distributor in Cuttack: In Cuttack region there are total 4 distributors. As per the sales strategy there is a 10% hike in each individual’s target from previous month.3 coin options Network sim and bts locking provision Low power consumption.1 914150. Types of outlets b. last 200 call details (date/time/value of the call) 6. Airtel logo and tune at the time of booting the phones.3 2.000 60. Margin a.50. polyphonic ring tones 11.6 1403274 11981778.7 3 5 4 3 3 3 2 1.5 1.7 LSO 119 130 89 102 94 98 68 110 810 SSO 78 88 49 78 61 53 52 90 549 New O/Lt 20 22 15 17 16 16 11 18 135 PCO 3 3 3 3 3 3 3 3 24 Target for the interns during SIP (in Cuttack region): Table: 7 Target & Achievement During SIP NAME College NEW OUTLETS Target Pradeepta IPE. Internal battery with 2-3 hrs and stand by time of rs 6 hrs.000 to 60. This award is given to those retailers who are capable of doing a business of Rs. limit/no limit calling mode 7. I have analyzed its FSE’s target and achievement.2. Table: 5 FSE Achievement (April 09) PK AGENCY REPORT(Airtel Distributor . Though !dea sold at very low price with lots of facilities with a aggressive sales force and with advertisement they started an immediate response from new subscribers and from students this caused a decrease in Airtel’s sales and creating new subscribers.50. 000/and above with 50 or more SSO activation. through which the sale can be pushed. Call charges are displayed on the screen 2. billing printer support (optional) 3.
Mobile Services. He/She has to give one latest his/her photo. To activate the sim following procedure is followed Step1: The retailer sends a sms through the LAPU. The company possesses a customized version of the Google search engine which will enhance broadband services to customers. Despite being forced to outsource much of its technical operations in the early days. 2.but the most important thing is that. UN (space) Mobile Num to 59109 Step 2: This sms reaches to 59109 (technical section) and then 3 new sms comes in return one to Retailer. 1st that person has to insert the sim in the mobile phone and then has to call 123.using its 'Matchbox' strategy. The new iPhone will be launched in India via an Airtel distributorship. Extracting information from them about “At what cost they are selling Airtel sim. they are providing Electronic boards to the outlets at instance and spreading information rapidly among demographic dividend about the free offers. As now a day in the Cuttack market the distributors are providing retailers activated Sims. Airtel comes to you from Bharti Airtel Limited. Bharti Airtelcould also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. A new outlet has to take minimum vouchers of cost Rs 1000/-. 2. and also so that the business benefits are scalable . Our objectives are • • • Finding out the top (Airtel Navaranta awarded) retail outlets and also some other outlets in the prime locations of Cuttack region. So the start-up business had to outsource to industry experts in the field. this allowed Airtel to work from its own blank sheet of paper. The sim initially is not activated. 2. If the documents are known to be fake or doubtful then the connection will be cutoff immediately. As the FSE’s also complained that the retail outlets prefer !dea and Vodafone rather than Airtel. Another strategic partnership is held with Blackberry Wireless Solutions. If any new person will subscribe the to a new connection the retailer provides him the way to activate the sim. The new subscriber must have to be an Indian citizen.They were pushing !dea and Vodafone new sims rather than Airtel. Other stakeholders in Bharti Airtel include Sony-Ericsson. They can do a sms to know this. 2. By using this service they can get the conformation on the sim and mobile number at the basic level. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. Vodafone which owned a 5. Seek (space) Mobile num/sim num to 59300 27 CHAPTER – V SWOT ANALYSIS 28 SWOT Analysis Strengths 1. DL. They are providing the margin as per the market term (3% to retailers) . and to question industry approaches and 29 practices . • • Directly going to the shop and asking the sales person about Airtel sim cost with life time validity and about the tariff chart of Airtel as customer. 26 Necessary Documents for New Subscription: 1. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. 2. 2. An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago. I did a job of Retailers analysis with a team of 3 after consulting with territory manager and with his proper guidance. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature. This results a – ve growth in Airtel. 3. 30 CHAPTER – VI Analysis of the Survey and interpretation 31 As per the requirement the overall strategy was divided in certain categories. Informal interviews were conducted for Airtel special scheme promotion and for sales maximization of iBox and PCO. (Airtel customer service number (toll free)). 1. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call. Our approach towards retail out lets to extract information. 3. They have implemented a better strategy and covered up maximum retail out lets.as well as many other telecommunications services to both domestic and corporate customers. Opportunities 1. as the company moved into small and remote villages and towns. 1 PCOs and 3 iBoxs were the target for the interns) Minimum cost of an iBox was Rs 2975/. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market.6% stake in the Airtel business sold it back to Airtel. We worked in team covered up maximum retailers possible in the given time period (2 days) after making a list of top retailer outlets.and cost of PCO was Rs 1975/-. (This scheme can not be mentioned on the project report but can be discussed with internal/external Guide and at the time of presentation) SIM activation procedure: (During training I had informed and demonstrated this procedure to the new outlets) SIM is provided by the company to the distributor and the distributors’ supplies the sim as per individual Retailers demand. home electricity or phone bill(land line. IPTV is another potential new service that could underpin the company's long-term strategy. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) . The company is investing in its operation in 120. after any subscriber bought this sim then the retailer uses a special procedure through its LAPU sim to activate that sim. The tie-up with Google can only enhance the Airtel brand. Legal action can be taken against the retailer or the distributor for this negligence. Nokia .Total 900 SSO. Airtel Telemedia Services & Enterprise Services. 1. The company has covered the entire Indian nation with its network. Weaknesses 1. Any valid document showing his nativity or residential proofs like Pass Port. This means that the business has access to knowledge and technology from other parts of the telecommunications world. the business has little knowledge and experience of how a cellular telephone system actually worked. India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. New subscriber analysis and new outlet opening analysis were done through proper questionnaires. Then the sim will be automatically activated and will be ready to use. which was a particular strength of some of its competitors such as Hutchison Essar. Through this way we extracted the information about the retailers’ preference. providing necessary and original documents required and after getting the confidence of the retailer that the provided documents are valid. and also provides advertising opportunities in Indian for Google. 5. How to check the authenticity of the sim and the number at the distributor/retailer level: Sometimes the AEAF contains some error on the sim number or mobile number. It was a group task where other targets were individual 1422 (In a weak 15 new outlets. and instead invested in its rival Hutchison Essar. 4. 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. allowing a competing Indian industrialist to invest in the new emerging African telecommunications market.000 small villages every year. Sales of SSO were under a special scheme. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. It is the largest cellular provider in India. 3. Actions on Fake documents: 1. BSNL preferred) etc. 3. Airtel and Vodafone seem to be having an on/off relationship. UN (space) Mob Num to 59110 After this the new sim will be activated and will be ready to use. and also supplies broadband and telephone services . This new business will control more than 60% of India's network towers. Threats 1.000 to 160. Got the information on which brand the retailer is trying to push out. The retailer or the distributor can directly check the authenticity of this trough special Airtelservice. 3. This opened the door for talks between Reliance Communication's Anil Ambani and MTN. This has underpinned its large and rising customer base. Bharti Airtel has more than 71 million customers. What the retailer prefers to sale (which sim they are trying to push out) by what information providing to the customer These are the thing that I have to extract from the retailers. Voter ID . 3. Towers are important if your company wishes to provide wide coverage nationally. Market Analysis In the month of April !dea came to the Cuttack market with better offers and with more talk time. But during recent scenario maximum retailers are supplying activated sims to the retailersthat the new subscriber can easily use the new sim without any delay in the service. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. So. 2. Meeting the shop owner and showing them as we are students of the Revenswa University and doing a survey on SSO in Cuttack market. Until recently Airtel did not own its own towers. next one to FSE and the last one to the Distributor. with whom they hold a strategic alliance. 32 • . After the new subscriber bought the sim. free talk time at a lower cost.for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India. Step 3: Then the distributor send a new sms. The new subscriber can only get this sim after paying the cost of sim. The market analysis was done through informal interviews and also information extracted from the retailers by visiting the outlet as mysterious customers.and Sing Tel.
3. They provided all the list of top 18 retail outlets under PK Agency. (All the procedures are informal in nature. 10/. The scheme was properly informed to the retailer. 36 Analysis Report in Graphical Presentation: 1. It is cost to the company. 2. So it depends upon the retailer at what price that they can sale but they have to achieve that target within 90 days. no prior questions were made a informal approach was taken to get the information) Suggestions after the analysis report to the Territory Manager: • • • • Spread the information among public about the cost of the sim. With the team. My team was in the task of outlet’s advertisement about their offer in the near by areas and to handle their sales for the initial days. The company was not going to provide any financial help or promotional help to the retailers. Strategy followed for the scheme: Objective: To convince maximum to maximum numbers of retail outlets to accept this scheme.to the company.40/. Putting advertisement boards and hording near by locations and putting some posters near by shop with their acceptance. Company provided the guaranty of sales promotion for the retailer during initial period. I had a task to talk to the retailers behalf of their plan how to sale the sim with this span of time. Methodology: 1. Outputs of the Strategy 1. 4. Zonal Manager. The company provided the help of Summer Interns to assist the outlets for their sales promotion during initial days. 3. During the promotion we are saying this offer is from the Particular Retailer who has agreed with the proposal.cost to company with special recharge voucher(power plus) of Rs 39/. The main reason for this offer is to push the retailers to sale Airtel. They can only get the help from Territory Manager. Putting Canopy from 5PM to 10 PM near by prime locations.and minimum amount that they want to sale depends upon them. documents in proper time and collected the documents twice per day.(over 42 degree centigrade) and high humid condition in Cuttack town. Primary Data: Data collected from all the top retail outlets. Overall outcome: • Some Sims were sold out during this period but the overall market remained same as this project were done only for 7 days and can not be continued for more period because of high atmospheric temp. Sale sim in coaching institutions at cost to company. Company provided canopy to the concerned outlets that they could sale the SIM at near by locations. helping them to sale the sim. The entire 18 outlet’s previous 6 months sales were analyzed. Following steps are followed in the entire project. After this scheme the territory manager informed the elite retailers as well as other retailers and assured them to help. Made one strategy how to help the retailer for their sales promotion. The locations of those outlets were properly studied. informing public in that locality on this scheme and to help the retailer to make their advertisement. which costs Rs. 3.on each recharge. 49. For New SIM holders: Less Cost Number of subscribers 400 300 200 100 0 Series1 SA 318 A 212 N 134 approval Regular users 300 Subscribers 200 100 0 Series1 SA 213 A 178 N 273 Approval Dis 67 S Dis 131 Dis 109 S Dis 89 37 Use it during tim e of need 500 Subscriber 0 Series1 SA 409 A 189 N 188 Approval future propose Dis 71 S Dis 5 .Airtel announced that if any retailer will be able to sale more than 1000 sim within 90 days then that retailer will be awarded with a Hero Honda Passion Plus bike. Informing coaching institutions on this offer. To help them in their decision making and for their sales promotion. 33 (Details of the Analysis is provided Bellow) Overall Report 123 Consumer Preference 51 Airtel 14 !dea 31 Vodafone 6 Aircel 12 Smart 7 BSNL 2 60 50 40 30 51 20 31 10 0 Consumer Preference 51 14 Airtel 14 !dea 31 6 Vodafone 6 Series1 12 Aircel 12 7 Smart 7 2 BSNL 2 Series1 Special Scheme Promotion & Analysis: Looking at the present situation the company has made a special offer for Orissa circle. 94 SIMs were sold out during this period. distribution.Going to the shop as a customer and asking for a brand of the sales person’s choice as I need cheep network with more talk time. From these 4 outlets 2 were awarded with Airtel Navaranta. STEPS FOLLOWED 1. Through conducting an informal interview. The distributor provided the SIMs. In the Cuttack region 4 elite retailers at first were 34 interested in this new scheme. These outlets are Navaratna awarded. (The Territory Manager. Company provided the assurance to help the retailer how to implement the scheme that the retailer will incur minimum loss and will have the maximum profit. The cost of a new Airtel sim with Life time is Rs. Put canopy and sale sim after consulting with retailers. The pricing decision of the SIM was taken by the retail outlet owner and with Territory. The sales promotion method started with brand name of Airtel. Outcomes: • • • In the 4 prime locations canopy was setup for 7 consecutive days. 2. That later that Retailer can have customers and will sale the sim and voucher at this proposed scheme. This offer is for retailers. Finally informing the Territory manager on the retailers’ activities. • • Some retailers were taken into consideration and they allowed us to go with the above proposal. But they have to pay Rs.which is valid for 3 months instead of 1 month. The ZSM & Territory Manager helped the retailer for their planning and implementation.power plus and the retailer got a benefit of Rs. No product sold to the retailers in credit. Maximum of the Sims were recharged with Rs 39/. 2. PK Agency staffs were cooperated and provided necessary advice for this schemes successful implementation) 35 Strategy followed to convince the retailers: 1. Methodology Secondary data: The data was colleted from the Airtel head office in Bhubaneswar. The retailers can sale a life time sim maximum Rs 200/.000/.in the market. 40/-. I managed to convince 4 retailers to accept this scheme. 3. 2. Recommendations and Actions on my suggestions: Put canopy in some prime locations of Cuttack and selling the sim at the cost of Rs 40/.
) 41 Analysis for opening New Outlets Satisfied w ith Distribution System 23% Agreed 50% Neutral Disagreed 27% . Its overall outcome was that subscribers were not happy with Airtel tariff as they said it very costly. As the tariff was considered Airtel got only . From this above analysis the outcome is that maximum of the new subscribers will keep the sim with them and will use it when it would be needed.64% of responses. Why a customer is interested to be an Airtelsubscriber? What a new subscriber thinks about Airtel was the inherited reasons for interpretation. Except BSNL (27%) others are not a competitor of Airtel. B. 04% response where !dea got a response of 35%. In the month of April 2009 !dea entered the market with lots of offer and it was responded highly as they were providing “(New SIM with Life Time + Rs 50 talk time + power plus(valid for 6 months) + Unlimited free talk time !dea to !dea) @ Rs 50”. Service: Airtel is not considered as a better back door service provider for its subscribers in the market though it got a response of 24% (highest response) but its near by competitors are not so far behind from it as response for Aircel 21%. (Where Airtel stands as per new subscribers’ perception) A. Tariff and VAS: When this particular sector was analyzed Airtel is lagging behind (Tariff). (OVERALL outcome from these analysis is that Airtel is a market leader no doubt about it as it received 29. Regular Uses: From the total sample size that I had taken only 45% of them were agreed that they will regularly use the Airtel sim and 46% said that they will keep it and 69% of subscribers were agreed that they will have the sim with them and will only use at the time need. As VAS is consideredAirtel is better than its comparators. B. Airtel got a response of 23% but Vodafone produced a grate challenge as its extensive and expressive promotion during this period of April and mid May as the IPL was going on. The overall out come of this analysis was that either the Airtel distributors provide more FSE or increase their salary by a small margin. so the cost of SIM was less compared to other outlets. 22% for Smart were there. So overall interpretation is that Airtel must have to be more customer oriented and to provide better customer care facility. (Reason for buying a new Airtel sim) A. Availability: In this category all the network providers were all most nearly as the maximum responses were went to 19% against Airtel’s 17%.Subscribers 400 200 0 Series1 SA 234 A 198 N 134 approval Dis 187 S Dis 109 Service 250 S b cib r u s r es 200 150 100 50 0 Series1 Airtel 209 Aircel 187 !dea 11 BSNL 168 Smart 198 Vodafone 89 Service profider Network Coverage 400 300 200 100 0 Series1 Airtel 287 Aircel 123 !dea 16 BSNL 234 Smart 151 Vodafone 51 38 VAS 250 200 150 100 50 0 Series1 Airtel 201 Aircel 151 !dea 8 BSNL 158 Smart 176 Vodafone 168 Tariff 400 300 200 100 0 Series1 Airtel 35 Aircel 179 !dea 309 BSNL 49 Smart 123 Vodafone 167 Availability 200 150 100 50 0 Series1 Airtel 150 Aircel 167 !dea 123 Overall 300 200 100 0 Series1 BSNL 142 Smart 156 Vodafone 124 Airtel 256 Aircel 140 !dea 58 BSNL 196 Smart 171 Vodafone 41 39 Analysis and interpretation of survey of new Airtel subscribers: Objective of the study is to know the new subscribers acknowledgement towards the preference for Airtel. Network Coverage: 33% of subscribers accepted that Airtel provides the best networking in Cuttack and its near by interior areas that’s why they have to keep a Airtel sim that they can use it at the time of need. 40 C. 19% for BSNL. COST of SIM: Though the SIMs were sold under a special scheme. D. But it must have to look in certain areas like Tariff and distribution system and customer cares to gain a better margin than its competitors. Only 45% accepted that they will be a regular user ofAirtel. So the overall outcome interoperated as the low cost is the main reason for the sales of SIMs. Where 22% agreed that they need to subscribe Airtel sim and 15% stand neutral.61% persons agreed that they are buying Airtel sim because the cost of the sim is very less* and this is the only reason that they are interested not to miss a chance of buying a new sim at this special cost with offer.
8. Airtel PCO facing the worst competition from its competitors as only 26 PCO was in the market during last 17 moths. very few responses from them. 3. Where others (new entrants) are doing it. 7. allowing it to implement and deliver new services rapidly. not a regular use. Demand in the market for Airtel sim and vouchers as the outlets agreed maximum persons are asking for Airtel vouchers. So. 47 Recommendations There are following suggestions for marketing strategies for Airtel1. Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration. Competitors selling strategy becoming a biggest problem for sales maximization. Collected primary data from outlets (iBox and PCO) 5. Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships. efficient total customer experience through end-to-end integration of customer-facing processes. 6. The overall outcome depends upon the “Demand in the market for Airtel” which is driving customers towards Airtel. TATA Indicom provides better margin. Optimization of business processes and infrastructure. 7. Many of the present outlets are not happy with the FSE as they are providing the vouchers and other products in proper time (distribution problem). Airtel iBox and PCO holders were surveyed. . Reliance is not so famous among retailers but its profit margin is better. 5. BSNL pco holders earn maximum profit as per the retailer’s point of view. Because of special offer during April 2009 some iBox were sold. 5. 3. 2. . 3. standardized integration . Maximum numbers of working professionals are interested for Airtel. Less margin 2. Retailer margin is not a problem for Airtel in Cuttack. In some areas there is significant number of outlets that the individuals business is affected by this steep competition. III. It also provides life time offer. 10. 3. 2. Strategy for Sales of PCO and iBox Objective Airtel is a market leader in Cuttack in terms of prepaid subscribers. 2. banners etc. I had followed certain strategy to sale my products 1. 50 TATA Indicom coin box & PCO holders were surveyed. 2nd PCO holders were surveyed. Airtel Company is trying to open more and more outlets but FSEs are not so interested to open in a large number as their work load will be more and they have to achieve more target. 3. People prefer Airtel in Cuttack because of its network coverage all over the state including rural areas. It is difficult to maximize the sale as maximum consumers are local business men and they prefer more talk time in their usual tariff. Students are not showing any interested in Airtel. A. 34 Reliance coin box holders were surveyed. 45 CHAPTER – VII CONCLUSION & RECOMMENDATIONS 46 Conclusion • Airtel facing a steep competition in Cuttack Market. 43 4. Better quality product and service facility is better. C. .(FSEs are not so much interested to maximize this sales) 4. 3. Two types of questionnaires were designed for surveying outlets. 44 Methodology: Three different types of surveys were made and their results were properly analyzed then I had made my strategy how to maximize the sales. 4. Improved cross-selling and targeting and a more seamless. With competition intensifying in the Indian telecom services market. I had taken to maximize the iBox and PCO sales as an challenge. . Inactive sales force. Some outlets demands electronic add board but distributors are unable to providing in time.Maxim um Num ber of Subscribers 6% 26% Agreed Neutral Disagreed 68% 42 Less Margin 30% Agreed Neutral Disagreed 57% 13% Dem and in the Market 20% 43% Agreed Neutral Disagreed 37% Reasons for a retailer to be an Airtel outlet 1. The interpretation of survey and analysis 1. 78 BSNL PCOs were surveyed. Methodology Primary data: 1. Some retailers were interested in Airtel iBox as its profit margin is better. 2. Reason of low sales for Airtel iBox / PCO 1.Only high tariff cost matters in sales maximization. the other entrants are capable of pushing their sales. 4. Scan the market. Though Cuttack market is full of business men they also keep an Airtel for their emergency use. Spread the information among the outlets about Airtel’s iBox and PCO offer. But it faced a real tough competition in sales of iBox and PCO sets. It is that Cuttack is the toughest market in the Eastern Part of the country. Its calling charges are less compared to others. Maximum of the retailers also accepted that in market Airtel has maximum number of subscribers. Some retailers bringing in the Vouchers and easy from rural area to Cuttack region to get more margins comparatively to urban areas. Airtel is proving fewer margins compared to other network service providers but most subscribers are attached with Airtel a biggest reason for a retail outlet to start this business. Made a SWOT analysis of iBox and PCO. The main purpose was to make conformation why retail outlets are interested in Airtel iBox & PCO. Retailers are unhappy with Airtel’s advertisement offers because the company is not providing them the Electronic Boards in time (for new outlets). Made a comparative analysis for Airtel product. B. II. 9. Retailer benefit schemes as they achieve the target can push more subscribers and maximize sales. Maximum of retailers accepted that I. (Though it first introduced this operation so it has nearly captured the market leaving little space for the competitors) 2. Retailers agreed that Airtel is no mort pulling product. Though Airtel is a market leader in terms of prepaid GSM service. through flexible. Late entry into the market. 1st Reliance and TATA Indicom coin box holders were surveyed. The survey was conducted as an Informal interview process to extract the information from the outlets. •••••••• Airtel has a good reputation as a telecom brand in Cuttack. 6. this is the only major reason taken to be considered for sales maximization of Airtel iBox.
(Ranking methodology) Service Network Coverage Airtel Aircel !dea BSNL Smart Vodafone VAS Ease of availability Tariff Reliability Overall 1. Smart. I am only interested for sim / lapu / vouchers only in coming period. 3. is needed. Are you buying now because: a. Do you think is it easy to push Airtel. BSNL is more profitable. SIM cost is very less comparatively with other ones? SA A N Dis S Dis b. SA A N Dis S Dis c. A N Dis 6. RIM. VOUCHER N Y N EASY RECHARGE Y N (If no then) Are you interested to be an Airtel Retail Outlet? Y / N (if no then) You must be aware of Airtel Business. Do you think maximum people are asking for Airtel? A N Dis 7. 13. 8. A/Dis 11. I will use it only at the time of need. Questions: Rate from 1 to 5. Flexible pricing model will enable Bharti Airtel to avoid major increases in capital expenditures 48 ANNEXURE 49 Appendix-A Questionnaires for opening new outlets 1.(Requesting the retailer to know the business) If I got a positive response then: Complete information provided on Airtel business If no: Requested for another time if there is no response I have to leave that outlet. Airtel is PUSHING/PULLING 12. Does the customers ever pulled towards Airtel. I am not interested with Airtel because Low margin: A / N / Dis Unsatisfied with FSE: A / N / Dis So many retail outlets near by : A / N / Dis No credit facility:A / N / Dis Airtel does not provide Add boards or support regarding advertisements in time: A / N / Dis Selling Vodafone !dea. I will keep it for future purpose. SA A N Dis S Dis d. 4. SA A N Dis S Dis Appendix-C . At 1st the information regarding the business provided to the retailer in details and after that this questions were asked to analyze why these retailers are showing interest in this business) 5. 9. not regularly. It 50 was also required for my project under market analysis “why one buy Airtel”. Do you know that Airtel has maximum numbers of customers in Cuttack market? Y / N Are you satisfied with Airtel distributor’s service procedure? Are you happy with FSE’s service? A/N/Dis 10. Why… _______________________________________________________________________ Appendix-B Questionnaires for New SIM holders: While selling new SIM I did a comparative analysis on different network service providers regarding customer interest. Outsourcing of technology will provide Bharti Airtel to focus resources on growing the business.framework. Do you think Airtel provides less margin compared to other service providers. If interested for then : Complete information provided on Airtel business (If the outlet shows interest for the business. A few questions were asked to new SIM buyers. 4. I will use this SIM regularly. Where 5 are minimum and 1 is the maximum value. Are you selling Airtel’s products? (SIM: y/n) (Vouchers: y/n) (Easy recharge: y/n) SIM Y 2.
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