Division B

   
Group name B01
   
Marketing Management -1 Group work assignment – Teracom Ltd.
   
Group members: Name (Roll Number)
  Aditi Sidharta Choudhury (PGPM-17-071)
  Akshay A Shakkarwar (PGPM-17-075)
  Amit Kumar (PGPM-17-077)
  Mohammed Shahzad Khan (PGPM-17-099)
  Zeba Ali Sayeed (PGPM-17-137)
Q1. If Teracom adopts the distribution model of B2B to penetrate retail
markets, do you think it will be successful? Why?    
Yes. If Teracom adopts the distribution model of B2B (Teracom-Distributors-
Retailers-Consumer) to penetrate retail markets, it will be successful.

Though Teracom, being one of India’s fastest- growing companies and with
business interests in both the telecom and power infrastructure sectors, had a well-
established institutional distribution network that they wanted to leverage, they
were faced with differences in retail consumer behaviour from one region to the
other in a diverse market of India with vast geography and diverse culture.

 To have a distributor between retail (B2B model) would mean to include

someone who has a better understanding of customer’s need (their customs,
culture and traditions) and in turn mean better business and market capture.

 With B2B, Teracom will have a better competitive edge in the market with
leveraging its distribution channel via the distributor.

 The price offered by Teracom will be comparatively low and favourable for
the consumer as there are no intermediaries (telecom) in between but the
distributor who is going to increase the revenue with larger market share.

 Teracom could emerge as a trustworthy brand and could mould consumer’s

attitudes towards itself with the help of the distributors.

 With India becoming the world’s fastest-growing and competitive telecom

market, the benefits of entering and being one of the few and probably most
recognised in the retail markets are high so adopting B2B seems very
profitable for the Teracom. 

Q2. Assess Teracom's strategy to have a separate distribution channel for

the retail market. What should be the appropriate channel selection
process for selling modems in the retail market?

There are two major factors behind having a separate distribution channel for the
retail market:

 Teracom would not be able to use its sales force of institutional distributors,
which is dedicated to business sales only, to directly deliver to consumers.
 Due to vast geography and diverse cultures, Teracom was faced with
differences in retail consumer behaviour from one region to another. The
 company realized that it would not be enough for Teracom to survive with
only institutional dealers. It would be necessary to appoint different
distributors retail customers – those who would understand local traditions,
customs, and culture.

So, the proposed channel is:

Teracom – Distributor – Retailer - Consumer

Appropriate channel selection process will be decided upon meeting following

criteria to evaluate the distributors:

 An increase in reach by catering to the maximum retailers in the area.

 Optimum investment in terms of vehicles or storage – The key to success in
this retail segment were proper storage and warehousing facilities., as well
as proper market coverage by the distributor to ensure a wider distribution of
the product.
 High-quality sales force – Telecom retailers needed to have technically
competent personnel to advise retail customers to purchase the right
modems.
 Participating in promotions run by the company
 Educating retailers about the modems

Q3. What is your assessment of the first three applicants? Do any of them
provide a unique and distinctive advantage to the company? 

With a few basic considerations of expectations from the distributors in mind, here
are the assessment of the first three applicants:
 First three applicants for the distributorship
XVariables
Sharma & Sons Pawan Distributors Rajdhani distributors
Pawan Distributors supplied
modems to various
They cover 150 retailers
government organisations,
With S&S fairly new in in Delhi, have been in the
Reach in the institutions, and telecom
the market, the reach 3G business for 2 years
market (by companies plus their
will not be penetrated and in general over the
catering to salespeople would visit
to the fullest. Currently preceding 5 years have
the maximum institutional buyers regularly
they cover 200 retail developed a favourable
retailers in to negotiate and receive
outlets for their sales relationship with the
the area) orders which indicates that
target. retailers. This sounds
their market presence and
promising.
hold is strong and is a
favourable point.
Nothing is mentioned about
They have 2 vans and
the vehicles but since they They have only one
an average inventory of
were supplying goods to 50 vehicle and as well that
Optimum Rs 4 million inventory
institutional customers seems they are not ready to
investment in per month, this seems
like they had fine number of invest in any more
terms of a low number but S&S
vehicles, they had a small vehicles and nothing is
vehicles or is ready to expand it as
warehouse to meet any mentioned about the
storage per the requirement,
emergency needs, it does not storage capacity. Seems
which is quite
seem very favourable for not favourable.
favourable.
them.
The sales force is of
The sales force is of only 10
only 10 employees, They have a very low
employees, which is low, but
High-quality which is low and as well sales force plus the same
they do sufficient marketing
sales force they have limited was not going in the
and provide after sales
knowledge of the market to fetch orders.
support.
product.
They are already in sufficient
marketing and service They seem a little rigid
Participating
S&S are ready to mould support, which indicates they with their thought process
in promotions
their organization to have sufficient knowledge and and do not seem to be
run by the
meet the requirements. will be participative in very participative in
company
promotions run by the promotions if at all.
company.
S&S employees are less No, the sales force is low
sound technically (not as well as they do not
Educating
favourable), but they seem to care in the
retailers Yes, they have this capability
are inclined to adapt, market to get orders and
about the with their team of 10.
adopt and learn and know much about the
modems
expand as per the product and after sales
requirement. service, not favourable.

As can be seen from the above table, Pawan distributors offers an edge over the
other two distributors.