Professional Documents
Culture Documents
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.
• Airtel has 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)
1
CHAPTER - I
INTRODUCTION
2
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.
2. To create interest as well as find out the potential new retail outlets
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.
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
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.
3
4. Finding out the retailers through schedule method.
5. Convincing & creating interest through pushing strategy.
4
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.
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CHAPTER – II
COMPANY PROFILE
6
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 Fixed-Line 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 the Airtel
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, Bharti Airtel 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
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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. Bharti Airtel 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 harnesses the power of alliances to
combine with ownership of media and technologies to create business-enabling end-to-end solutions.
Bharti work closely with their enterprise customers to uniquely address all their strategic connectivity
needs, by using a mix application of technologies. The entire organization is tailored to bring focus to
our customers’ need through a unique multi-dimensional structure; Airtel’s’ philosophy is “Value
Creation” for the customers. Therefore it creates solutions that are flexible, scalable, 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.e. Location, Regional, Functional,
National and crop office level.
Continuous process improvement happens within the organization based on Voice of customers using
six sigma methodology and knowledge management. The organization has been in six sigma
champions, black belt, green belts, and yellow belts. All AES employees are trained in the strategy,
statistical tools and techniques of Six Sigma quality.
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, with a focus on providing mobile services”.
• Focus on maximizing revenues and margins.
• Capture maximum telecommunication revenue potential with minimum geographical coverage.
• Offer multiple telecommunication services to provide customers with a “one-stop shop”
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solution.
• Position itself to tap data transmission opportunities and offer advanced mobile data services.
• Focus on satisfying and retaining customers by ensuring high level customer satisfaction.
• Leverage strengths of its strategic and financial partners.
Awards and recognition
Bharti Airtel has received recognition for its innovative practices across the world, some are as
Follows:
• 3rd Largest Wireless Operator In The World, Largest Private Integrated Telecom Company In
India, Largest Wireless Operator In India, Largest Private Fixed Line Operator In India, Largest
Telecom Company Listed On Indian Stock Exchanges.
• Sunil Bharti Mittal, - GSM Association Chairman’s Award 2008, Padma Bhushan Awards In
2007.
• Airtel Was Chosen As The 2nd Most Trusted Service Brand In India In The ‘Most Trusted.
• Brands 2008 Survey’ Conducted By The Economic Times - Brand Equity
• Awarded With Top Honors At The GSM Mobile World Congress Conference 2008 In
Barcelona for the Category “Best Billing/ Customer Care Solution.”
• Adjudged As the ‘Best Carrier India‘At the Telecom Asia Award 2008, Gallup Great Workplace
Award For 2008, Ranked 2nd In the Survey of India’s Most Respected Companies by Business
world 2007, Adjudged As ‘Company of the Year’ At the CNBC India Business Leader Awards
2007.
• 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.
• After the proposed network expansion, an additional 30,000 towers will result in the company
achieving 70% population coverage.
• Bharti has over 39 million users as on March 31, 2007, It has set a target of 125 million
subscribers by 2010. Prepaid customers account for 88.5% of Bharti’s total subscriber base, an
increase from 82.7% a year ago.
• ARPU has dropped to Rs 406, Non-voice revenues, (SMS, voice mail, call management, hello
tunes and Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4
of the previous year. Blended monthly minutes of usage per customer in Q4 was at 475 minutes.
Has completed 100% verification of its subscribers and in the process disconnected three lakh
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(300,000) subscribers Bharti Airtel’s enterprise Services, President - David is busy connecting
India to Europe.
Airtel Vision
“To provide global telecom services and delight customers”
By 2010, we want Airtel to be the most admired brand in India.
• 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
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CHAPTER – III
DISTRIBUTION PROCEDURE
&
SALES FORCE
11
Airtel distribution channel:
Airtel (company)
Retailer FSE
Retailer
`
12
• Company’s supply system to the territory manager is same procedure as per urban areas.
• The products at first distributed to the RS (Rural Super).They have a margin of 0.7%.
• Products are supplied from the RS to the RD (Rural Distributors).They have a margin of
1.1%.
• As per same Urban system few FSB works under each RD and they supply the products
to the individual retailers.
• The retailers have a margin of 2.5% and 2.7% ( 2.5% on RCV of Rs. 10/- and 2.7% on
other RCVs)
So, from this above analysis and distribution channel system, the outcomes are.
1. The company is spending nearly 4% in Urban Areas.
2. In Rural Areas the company is spending a margin nearly 4.5%.
(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.)
Stock system in distribution:
The complete stock maintenance procedure is categorically divided in two parts.
1. Stock to be Maintained by Distributor
2. Stock to be Maintained by Retailer
In the case of Distributor:
The distributor has to keep the LAPU balance for minimum 7 days; Here 35% of the value must be in
RCV.
In the case of Retailer:
The retailer has to keep LAPU balance for 3 days (minimum amount Rs.1500)
; Here 33% of the value must be in RCV.
(The FSE visits each Outlet in alternative days whether their is any shortage of product or not. The
supply system of Airtel is so strong that a Retailer will never go with shortage of product. It is also a
compulsory task for each FSE to go and to ask Retailers whether there is any shortage of product, once
in every 2 days.)
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SALES: (The way Airtel sales designed)
Selection of
Sales Force
Motivating
Of sales force
14
What to get-
Ensures that your sales effort doesn’t get duplicated thereby eliminating the risk of irate customers.
Sales lead tracking system creates a list of potential customers or customers of related products, through
paid phone lists. Fully integrated in all departments that deal with customer service management.
For your business: your sales team can approach the market in an organized and efficient manner. For
your managers: now monitor the performance of your work force, solve potential problems and make
your people more proactive. For your sales teams: now it’s easier to close a deal by keeping a track of
your orders, proposals and clients.
15
CHAPTER – IV
16
Products of Airtel
SIM (Security Identification Module)
• The base product of company, required for new subscriber. Now Airtel provides this sim with
64kb memory.
• The cost of sim to company is Rs 40/- with life time option. The sim is provided to the company
at free of cost which the retailer can sale at maximum Rs 100/- .
LAPU:
A SIM is provided to retailers from the company at free of cost for providing easy recharge service.
Only regular retailers have this facility. This SIM has a memory of 128kb and specially designed for
easy recharge purpose. A retailer has minimum 5 easy recharge customers per month, failuring this
target the SIM will be automatically deactivated. This SIM has also Rs 300 talk time free Airtel to
Airtel.
• 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)
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%.
• Recharge vouchers are available at different costs from Rs 10/- on words and easy recharges
are available from Rs 30/- on words.
• Paper voucher is maximum available up to Rs 120/- where easy recharge is available up to
RS 10,000/-.
Airtel PCO & iBox:
Airtel is also providing the PCO services in Cuttack region. They provide this facility in two ways.
1. iBox (Coin Box)
2. 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.
The cost of the Airtel or Coin box is Rs. 2985/-
17
The cost of the Airtel PCO is Rs. 1985/-
These are the cost to the distributor (minimum selling amount).
18
then retailer will reach to the break even point on his investment. The next one will be his profit.)
(
HERE DETAILS OF THE PCO & iBox IS PROVIDED.)
Table: 1
iBox Pricing and PCO pricing
Parameter PCO Phone iBox
Customer Price 1984 2975
FAT(A2A) 1000 1500
FAT(A2All) 500 500
Total Talk Time 1500 2000
total coin collection @ 0.67 paisa 2239 2985
effective cost to operator -240 315
Validity main A/C (months) 1 1
Validity dedicated (months) 4 6
Voucher denominations PCO section
Maximum Service price Rs 398 598 1398
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decrement local Rs 0.67 0.67 0.67
talk time 354 532 1244
Roi % 33 33 33
validity days 30 45 60
iBox
talk time 356 178
Roi % 33 33
validity days 30 0
Operator price 400 200
Table: 2
Comparison of Airtel iBox with other operators
Parameter BSNL TATA RIM Airtel
Security
deposit Y Y Y N
time hrs * 72 72 72
7000 to
investment 8000 3000 2222 lowest investment
paper
rcv post paid voucher Paper voucher easy recharge
Top ups N N n Y
Rs 100 for 10
validity next N days n Y
quality of
ocb na Local Local Visiontek ccb
cases soled through
service * 48 48 - 72 phone and sms
battery N Y Y Y
space
required more M M little as all integrated
ISD in ccb N N N
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Features of iBox
• 16*1 back light LCD
• Inbuilt fwt + 4.5 ah battery
• Automatic coin collection on call maturity
• Programmable 1,2,3 coin options
• Network sim and bts locking provision
• Low power consumption. Battery back up 4 to 5 hrs
• Incoming call restriction
• Battery low message on lcd
• Caller id
PCO
1. Call charges are displayed on the screen
2. billing printer support (optional)
3. booth display support (optional)
4. daily ,monthly, yearly call reports
5. last 200 call details (date/time/value of the call)
6. limit/no limit calling mode
7. long beep at the start and end of the call
8. Internal battery with 2-3 hrs and stand by time of rs 6 hrs.
9. external adapter cum charger
10. polyphonic ring tones
11. Airtel logo and tune at the time of booting the phones.
12. hands free speaker phone
13. phone book
Airtel Retail Outlet
Retail Outlet means those shops which sales Airtel products (SIM, vouchers).Airtel maintains a
category for its retail outlets. In Cuttack there are total 1620 outlets which registered, 432 iBox and 67
PCO (Up to 10th May 2009)
Airtel Navaratna:
The “Airtel NAVARATNA” award is a special way to encourage and appreciate the retailer’s
performance. This award is given to those retailers who are capable of doing a business of Rs.50, 000/-
and above with 50 or more SSO activation. It is mandatory to achieve both parameters to be awarded.
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(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. The margin has lots of
importance because as per this the Company can have more number of Retail Outlets, through which
the sale can be pushed.
S6 1 to 4
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b. COMPETION MARGINS( for Urban)
PK Agency 8
JD Distributor 4
Kamala Agency 2
Tirupati Distributor(Choudwar) 1
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PK agency has the maximum area coverage in Cuttack region. I have analyzed its FSE’s target and
achievement.
Table: 5
24
Here the target for PK agency is provided bellow:
Table: 6
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Total 900 1422
SSO, It was a group task where other targets were individual
(In a weak 15 new outlets, 1 PCOs and 3 iBoxs were the target for the interns)
Minimum cost of an iBox was Rs 2975/- and cost of PCO was Rs 1975/-.
A new outlet has to take minimum vouchers of cost Rs 1000/-.
Sales of SSO were under a special scheme. (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. The sim initially is not activated, after any subscriber bought this sim then
the retailer uses a special procedure through its LAPU sim to activate that sim. But during recent
scenario maximum retailers are supplying activated sims to the retailers that the new subscriber can
easily use the new sim without any delay in the service.
To activate the sim following procedure is followed
Step1: The retailer sends a sms through the LAPU.
Step 2: This sms reaches to 59109 (technical section) and then 3 new sms comes in
return one to Retailer, next one to FSE and the last one to the Distributor.
Step 3: Then the distributor send a new sms.
After this the new sim will be activated and will be ready to use.
As now a day in the Cuttack market the distributors are providing retailers activated Sims. If any
new person will subscribe the to a new connection the retailer provides him the way to activate the sim.
The new subscriber can only get this sim after paying the cost of sim, providing necessary and original
documents required and after getting the confidence of the retailer that the provided documents are
valid. After the new subscriber bought the sim, 1st that person has to insert the sim in the mobile phone
and then has to call 123, (Airtel customer service number (toll free)). Then the sim will be automatically
activated and will be ready to use.
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Necessary Documents for New Subscription:
1. The new subscriber must have to be an Indian citizen.
2. He/She has to give one latest his/her photo.
3. Any valid document showing his nativity or residential proofs like Pass Port, DL, Voter ID ,
home electricity or phone bill(land line, BSNL preferred) etc.
Actions on Fake documents:
1. If the documents are known to be fake or doubtful then the connection will be cutoff
immediately.
2. Legal action can be taken against the retailer or the distributor for this negligence.
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. The retailer or the
distributor can directly check the authenticity of this trough special Airtel service. They can do a sms to
know this. By using this service they can get the conformation on the sim and mobile number at the
basic level.
Seek (space) Mobile num/sim num to 59300
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CHAPTER – V
SWOT
ANALYSIS
28
SWOT Analysis
Strengths
1. Bharti Airtel has more than 71 million customers. It is the largest cellular provider in India, and
also supplies broadband and telephone services - as well as many other telecommunications
services to both domestic and corporate customers.
2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom
they hold a strategic alliance. This means that the business has access to knowledge and
technology from other parts of the telecommunications world.
3. The company has covered the entire Indian nation with its network. This has underpinned its
large and rising customer base.
Weaknesses
1. An often cited original weakness is that when the business was started by Sunil Bharti Mittal
over 15 years ago, the business has little knowledge and experience of how a cellular telephone
system actually worked. So the start-up business had to outsource to industry experts in the field.
2. Until recently Airtel did not own its own towers, which was a particular strength of some of its
competitors such as Hutchison Essar. Towers are important if your company wishes to provide
wide coverage nationally.
3. 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.
Opportunities
1. The company possesses a customized version of the Google search engine which will enhance
broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and
also provides advertising opportunities in Indian for Google.
2. Global telecommunications and new technology brands see Airtel as a key strategic player in the
Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another
strategic partnership is held with Blackberry Wireless Solutions.
3. Despite being forced to outsource much of its technical operations in the early days, this allowed
Airtel to work from its own blank sheet of paper, and to question industry approaches and
29
practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute
model which is better suited to India, as the company moved into small and remote villages and
towns.
4. The company is investing in its operation in 120,000 to 160,000 small villages every year. It
sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and
also so that the business benefits are scalable - using its 'Matchbox' strategy.
5. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to
create a new independent tower company called Indus Towers. This new business will control
more than 60% of India's network towers. IPTV is another potential new service that could
underpin the company's long-term strategy.
Threats
1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6%
stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison
Essar. Knowledge and technology previously available to Airtel now moves into the hands of
one of its competitors.
2. 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.
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. This opened the door for talks between Reliance
Communication's Anil Ambani and MTN, allowing a competing Indian industrialist to invest in
the new emerging African telecommunications market.
3. Bharti Airtel could also be the target for the takeover vision of other global telecommunications
players that wish to move into the Indian market.
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, Airtel Telemedia Services & Enterprise
Services.
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CHAPTER – VI
31
As per the requirement the overall strategy was divided in certain categories.
1. Informal interviews were conducted for Airtel special scheme promotion and for sales
maximization of iBox and PCO.
2. New subscriber analysis and new outlet opening analysis were done through proper
questionnaires.
3. The market analysis was done through informal interviews and also information extracted from
the retailers by visiting the outlet as mysterious customers.
1. Market Analysis
In the month of April !dea came to the Cuttack market with better offers and with more talk time, free
talk time at a lower cost. They have implemented a better strategy and covered up maximum retail out
lets. They are providing the margin as per the market term (3% to retailers) ,but the most important
thing is that, they are providing Electronic boards to the outlets at instance and spreading information
rapidly among demographic dividend about the free offers. This results a –ve growth in Airtel. As the
FSE’s also complained that the retail outlets prefer !dea and Vodafone rather than Airtel.They were
pushing !dea and Vodafone new sims rather than Airtel.
So, I did a job of Retailers analysis with a team of 3 after consulting with territory manager and with his
proper guidance.
Our objectives are
• Finding out the top (Airtel Navaranta awarded) retail outlets and also some other outlets in the
prime locations of Cuttack region.
• Extracting information from them about “At what cost they are selling Airtel sim.
• 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. We worked in team covered up maximum
retailers possible in the given time period (2 days) after making a list of top retailer outlets.
Our approach towards retail out lets to extract information.
• 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.
• Meeting the shop owner and showing them as we are students of the Revenswa University and
doing a survey on SSO in Cuttack market. Through this way we extracted the information
about the retailers’ preference. Got the information on which brand the retailer is trying to
push out.
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• 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.
(All the procedures are informal in nature, 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.
• Put canopy and sale sim after consulting with retailers.
• Sale sim in coaching institutions at cost to company.
Recommendations and Actions on my suggestions:
• Put canopy in some prime locations of Cuttack and selling the sim at the cost of Rs 40/- cost to
company with special recharge voucher(power plus) of Rs 39/- which is valid for 3 months
instead of 1 month.
• Some retailers were taken into consideration and they allowed us to go with the above proposal.
• During the promotion we are saying this offer is from the Particular Retailer who has agreed
with the proposal. That later that Retailer can have customers and will sale the sim and voucher
at this proposed scheme.
Outcomes:
• In the 4 prime locations canopy was setup for 7 consecutive days.
• 94 SIMs were sold out during this period.
• Maximum of the Sims were recharged with Rs 39/- power plus and the retailer got a benefit of
Rs. 10/- on each recharge.
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.(over 42 degree centigrade) and high humid condition in Cuttack town.
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(Details of the Analysis is provided Bellow)
Overall Consumer
Report Preference Airtel !dea Vodafone Aircel Smart BSNL
123 51 14 31 6 12 7 2
60
50
40
30
51
20
31
10
14 12
6 7
0 2
Consumer
Airtel !dea Vodafone Aircel Smart BSNL
Preference
Series1 51 14 31 6 12 7 2
Series1
retailers. The main reason for this offer is to push the retailers to sale Airtel.
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, which costs Rs. 49,000/- in the market.
The company was not going to provide any financial help or promotional help to the retailers. The cost
of a new Airtel sim with Life time is Rs. 40/-. It is cost to the company. The retailers can sale a life time
sim maximum Rs 200/- and minimum amount that they want to sale depends upon them. But they have
to pay Rs.40/- to the company. No product sold to the retailers in credit. So it depends upon the retailer
at what price that they can sale but they have to achieve that target within 90 days. They can only get
the help from Territory Manager. After this scheme the territory manager informed the elite retailers as
well as other retailers and assured them to help. In the Cuttack region 4 elite retailers at first were
34
interested in this new scheme. I had a task to talk to the retailers behalf of their plan how to sale the sim
with this span of time. To help them in their decision making and for their sales promotion, distribution,
helping them to sale the sim, informing public in that locality on this scheme and to help the retailer to
make their advertisement. Finally informing the Territory manager on the retailers’ activities.
With the team, I managed to convince 4 retailers to accept this scheme. From these 4 outlets 2 were
awarded with Airtel Navaranta. The pricing decision of the SIM was taken by the retail outlet owner
My team was in the task of outlet’s advertisement about their offer in the near by areas and to handle
Objective:
Methodology
Secondary data: The data was colleted from the Airtel head office in Bhubaneswar. They provided
all the list of top 18 retail outlets under PK Agency. These outlets are Navaratna awarded.
Primary Data: Data collected from all the top retail outlets. Through conducting an informal
interview.
Methodology:
3. Made one strategy how to help the retailer for their sales promotion.
(The Territory Manager, PK Agency staffs were cooperated and provided necessary advice for this
35
Strategy followed to convince the retailers:
2. Company provided the guaranty of sales promotion for the retailer during initial period.
3. 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.
1. The ZSM & Territory Manager helped the retailer for their planning and implementation.
2. The distributor provided the SIMs, documents in proper time and collected the documents twice
per day.
3. Company provided canopy to the concerned outlets that they could sale the SIM at near by
locations.
4. The company provided the help of Summer Interns to assist the outlets for their sales promotion
The sales promotion method started with brand name of Airtel. Following steps are followed in the
entire project.
STEPS FOLLOWED
1. Putting advertisement boards and hording near by locations and putting some posters near by
36
Analysis Report in Graphical Presentation:
Less Cost
Number of subscribers
400
300
200
100
0
SA A N Dis S Dis
Regular users
300
Subscribers
200
100
0
SA A N Dis S Dis
37
Use it during tim e of need
500
Subscriber
0
SA A N Dis S Dis
400
Subscribers
200
0
SA A N Dis S Dis
Service
250
200
Subscribers
150
100
50
0
Airtel Aircel !dea BSNL Smart Vodafone
Series1 209 187 11 168 198 89
Service profider
Network Coverage
400
300
200
100
0
Airtel Aircel !dea BSNL Smart Vodafone
38
VAS
250
200
150
100
50
0
Airtel Aircel !dea BSNL Smart Vodafone
Tariff
400
300
200
100
0
Airtel Aircel !dea BSNL Smart Vodafone
Availability
200
150
100
50
0
Airtel Aircel !dea BSNL Smart Vodafone
Overall
300
200
100
0
Airtel Aircel !dea BSNL Smart Vodafone
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.
Why a customer is interested to be an Airtel subscriber?
What a new subscriber thinks about Airtel was the inherited reasons for interpretation.
40
C. Tariff and VAS:
When this particular sector was analyzed Airtel is lagging behind (Tariff). 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”. As the tariff was considered Airtel got only
.04% response where !dea got a response of 35%. Its overall outcome was that subscribers were
not happy with Airtel tariff as they said it very costly.
As VAS is considered Airtel is better than its comparators. 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.
D. Availability:
In this category all the network providers were all most nearly as the maximum responses were
went to 19% against Airtel’s 17%. The overall out come of this analysis was that either the
Airtel distributors provide more FSE or increase their salary by a small margin.
(OVERALL outcome from these analysis is that Airtel is a market leader no doubt about it as it
received 29.64% of responses. 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.)
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Analysis for opening New Outlets
23%
Agreed
Neutral
50%
Disagreed
27%
26%
Agreed
Neutral
Disagreed
68%
42
Less Margin
30%
Agreed
Neutral
Disagreed
57%
13%
20%
43%
Agreed
Neutral
Disagreed
37%
43
4. 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).
5. 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.
6. In some areas there is significant number of outlets that the individuals business is affected by
this steep competition.
7. Some outlets demands electronic add board but distributors are unable to providing in time.
8. The overall outcome depends upon the “Demand in the market for Airtel” which is driving
customers towards Airtel.
9. Maximum of retailers accepted that
I. Maximum numbers of working professionals are interested for Airtel.
II. Though Cuttack market is full of business men they also keep an Airtel for their
emergency use, not a regular use.
III. Students are not showing any interested in Airtel, very few responses from them.
10. Retailers agreed that Airtel is no mort pulling product.
Strategy for Sales of PCO and iBox
Objective
Airtel is a market leader in Cuttack in terms of prepaid subscribers. But it faced a real tough
competition in sales of iBox and PCO sets. I had taken to maximize the iBox and PCO sales as an
challenge. I had followed certain strategy to sale my products
1. Scan the market.
2. Made a comparative analysis for Airtel product.
3. Made a SWOT analysis of iBox and PCO.
4. Collected primary data from outlets (iBox and PCO)
5. Spread the information among the outlets about Airtel’s iBox and PCO offer.
Methodology
Primary data:
1. Two types of questionnaires were designed for surveying outlets.
2. 1st Reliance and TATA Indicom coin box holders were surveyed.
3. 2nd PCO holders were surveyed.
4. Airtel iBox and PCO holders were surveyed.
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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.
A. 50 TATA Indicom coin box & PCO holders were surveyed.
B. 34 Reliance coin box holders were surveyed.
C. 78 BSNL PCOs were surveyed.
The survey was conducted as an Informal interview process to extract the information from the
outlets.
The main purpose was to make conformation why retail outlets are interested in Airtel iBox & PCO.
The interpretation of survey and analysis
1. TATA Indicom provides better margin. Its calling charges are less compared to others. Better
quality product and service facility is better. It also provides life time offer.
(Though it first introduced this operation so it has nearly captured the market leaving
little space for the competitors)
2. Reliance is not so famous among retailers but its profit margin is better.
3. BSNL pco holders earn maximum profit as per the retailer’s point of view.
Reason of low sales for Airtel iBox / PCO
1. Less margin
2. Late entry into the market.
3. Inactive sales force.(FSEs are not so much interested to maximize this sales)
4. Airtel PCO facing the worst competition from its competitors as only 26 PCO was in the market
during last 17 moths.
5. Some retailers were interested in Airtel iBox as its profit margin is better.
6. Because of special offer during April 2009 some iBox were sold.
7. Though Airtel is a market leader in terms of prepaid GSM service, this is the only major reason
taken to be considered for sales maximization of Airtel iBox.
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CHAPTER – VII
CONCLUSION
&
RECOMMENDATIONS
46
Conclusion
• Airtel facing a steep competition in Cuttack Market. It is that Cuttack is the toughest market in
the Eastern Part of the country. It is difficult to maximize the sale as maximum consumers are
local business men and they prefer more talk time in their usual tariff.
• People prefer Airtel in Cuttack because of its network coverage all over the state including rural
areas.
• Retailer benefit schemes as they achieve the target can push more subscribers and maximize
sales.
• Some retailers bringing in the Vouchers and easy from rural area to Cuttack region to get more
margins comparatively to urban areas.
• Retailers are unhappy with Airtel’s advertisement offers because the company is not providing
them the Electronic Boards in time (for new outlets), banners etc. . . . Where others (new
entrants) are doing it. So, the other entrants are capable of pushing their sales.
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Recommendations
There are following suggestions for marketing strategies for Airtel-
1. Bharti Airtel needed to maximize its future flexibility and growth potential by adopting
a business-driven framework for integration, allowing it to implement and deliver new
services rapidly. With competition intensifying in the Indian telecom services market,
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.
2. Improved cross-selling and targeting and a more seamless, efficient total customer
experience through end-to-end integration of customer-facing processes.
3. Optimization of business processes and infrastructure, through flexible, standardized
integration framework, is needed.
4. Outsourcing of technology will provide Bharti Airtel to focus resources on growing the
business.
Flexible pricing model will enable Bharti Airtel to avoid major increases in capital expenditures
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ANNEXURE
49
Appendix-A
Questionnaires for opening new outlets
1. Are you selling Airtel’s products? (SIM: y/n) (Vouchers: y/n) (Easy recharge: y/n)
Y N Y N Y N
7. Do you know that Airtel has maximum numbers of customers in Cuttack market? Y / N
8. Are you satisfied with Airtel distributor’s service procedure?
9. Are you happy with FSE’s service? A/N/Dis
10. Do you think is it easy to push Airtel. A/Dis
11. Does the customers ever pulled towards Airtel, Airtel is PUSHING/PULLING
12. 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, RIM, Smart, BSNL is more profitable.
13. I am only interested for sim / lapu / vouchers only in coming period.
Why…_______________________________________________________________________
Appendix-B
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was also required for my project under market analysis “why one buy Airtel”.
A few questions were asked to new SIM buyers.
Questions:
Rate from 1 to 5. Where 5 are minimum and 1 is the maximum value. (Ranking methodology)
Service Network VAS Ease of Tariff Reliability Overall
Coverage availability
Airtel
Aircel
!dea
BSNL
Smart
Vodafone
Appendix-C
Questionnaires for Outlets to accept the scheme (Airtel Company’s staff will help you in sales promotion and pricing?)
(1st the scheme was properly presented to the retailer)
1. In which sells you get maximum profits. ______________________________
2. Is any telecom company providing you any offer like this before or now? Y / N
3. Airtel ever before provide you any offer. Y / N : time:_____________________
4. (If yes) did the company employees help you in sales promotion? y/n ________________
5. I have accepted this scheme because:_______________________________________
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Bibliography
Books
1. Havalder K.K. and Vasant M.C. (2007), “ Sales and Distribution Management”, Tata McGraw
Hill, New Delhi
Websites:
1. www.scribd.com
2. www.12manage.com
Journals
1. JMR
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