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We are very thankful to the head of sales and distribution manager Mr. Ram
Krishnan Ayer of Vodafone Limitedfor their cooperation, without
whichcompletion of this project would not have been possible.

We are extremely grateful to for sharing with us all the details of the project
andproviding us with valuable insights about sales, distribution function.We
would like to thank them for the patience shown by him and being of such agreat
help to all our queries.

We would also like to express our gratitude towards our professors Naval Arora,
for giving us an opportunity to do this project on sales and distribution andfor
being the guiding light through the completion of this project.

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"his project aims to study the distribution channels and the sales network patterns
of the telecom sector through a Live Interview with the sales and distribution
manager of VODAFONE L"D. Companyin Rajasthan. In this project we have
tries to bring out or explained how the sales and distribution network work for the
Vodafone in Rajasthan and around the India.

"he project was designed after detailed discussion with the company officials
that is the Sales and distribution Manager for the distribution and sales
functioning in Rajasthan.

"his project is Based on the live Interview which is conducted for collecting the
data /information from the Sales and Distribution Manager that how the sales and
the distribution network is work."he project covers the sales network of the
company with the dealers and that of the dealers with the customers.

In this project we have taken the Interview of the Sales and Distribution Manager
Mr. Ram Krishnan Iyer, he had provided and avail the valuable information about
the sales and distribution network of the Sale and Distribution.

Which help us in this project for knowing the sales management? And the whole
project is based on the interview and the Sales and Distribution manager has told
that take the company profile from the Internet and company website.
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CHAP"ER NO ± 1 IN"RDUC"ION OF PROJEC" 06

1.1c "ELECOMMUNICA"ION SEC"OR IN INDIA 07

1.2c HIS"ORY OF INDIAN "ELECOMMUNICA"ION 08
1.3c "ELECOM SERVICES AVILABLE IN MARKE" 11
1.4c GSM V/S CDMA 11

CHAP"ER NO ± 2 INDUS"RY OVERVIEW 12

2.1 BACKGROUND 12
2.2 GROW"H 13
2.3 INDIAN "ELECOM MARKE" 13

2.3.1 SIZE 13
2.3.2 S"RUC"URE 14
2.3.3 SERVICES 14
2.3.4 SEC"OR OU"LOOK 15
2.3.5 PO"EN"IAL 15

CHAP"ER NO ± 3 COMPANY BACKGROUND 17

3.1 COMPANY PROFILE 17

3.2 DRIVE OPRA"IONAL PERFORMANCE 19

3.2.1 VALUE ENHANCEMEN" 19

3.2.2 COS" REDUC"ION 19

3.3 PURSE GROW"H OPPOR"UNI"IES IN "O"AL

COMMUNICA"ION 20

3.3.1 MOBILE DA"A 20

3.3.2EN"ERPRISE 20
3.3.3 BROADBAND 20

3.4 EXECU"E IN EMERGING MARKE"S 21

3.4.1 DELIVERY INEXIS"ING MARKE"S 21

3.4.2 SELEC"IVE EXPANSION AND CAU"IOUS APPROACH 21

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 CHAP"ER NO ± 4 VODAFONE SALES NE"WORK 22

4.1 VODAFONE OU"LE"S 22

4.2 VODAFONE SHOPS 22
4.3 VODAFONE "ELESHOPS 23
4.4 SALES KI" 23

CHAP"ER NO ± 5 DIS"RIBU"ION NE"WORK OF VODAFONE 24

5.1 DIS"RIBU"ION NE"WORK 24

5.2 SELEC"ION OF CHANNEL MEMBERS/DEALERS 25
5.3 RESPONSIBILI"IES AND FUNC"ION OF "HE DEALERS 26
5.4 CHANNEL S"RUC"URE OF VODAFONE 27
5.5 PREPAID SEGMEN" 28
5.6 POS"PAID SEGMEN" 28

CHAP"ER NO ± 6 O"HERS AC"IVI"Y 29

6.1 PERFORMANCE APPRAISAL 29

6.2 MARGINS 29
6.3 PROMO"IONAL AC"IVIES 29

CHAP"ER NO ± 7 ANNEXURE 30
CHAP"ER NO ± 8 KEY WORLDS 32

BIBLOGRAPHY
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"his project aims to study the distribution channels, sales network and
servicepatterns of the telecom sector that is Vodafone Ltd."he project also triesto
bring out the shortcomings, if any, in the present system and thus
recommendssuggestions to improve the same. "he project also gives insights into
the variousfinancial terms, norms of the sales and service departments as per the
guidelines ofthe telecom industry.

"he project was designed after detailed discussion with the company officials
onthree parameters i.e. distribution network, service network and sales
functioning.

Firstly, the project discusses the distribution network of the company and
thefunctions carried out by the channel members. Vodafone Limited being
thelargest services provider in Rajasthan definitely has a wider reach and more
number ofdealers. "he project also covers the financial terms of the company
with the dealers andthat of the dealers with the customers.Secondly, the project
discusses the sales functioning of the company, whichincludes aspects such as the
hierarchy of the sales department prevalent in thecompany; the responsibilities
and functions of the sales force, their performanceappraisal structure etc.

Finally the project covers the service network of the company which dealswith
the after sale services and their effectiveness provided by the companyand
various complaints and queries are handled by them.c
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"he world is waiting at our doorsteps, waiting for us to open the gates to an
economy bubbling with opportunities. "he India growth story has already got the
world to sit up and take a note of the changing economic scenario. "he Indian
government is doing everything that is possible to ensure that this story remains
intact. Factors, like the liberalization in the government stance and the daring
entrepreneurs of the Indian soils, have helped the sectors achieve the highs like
never before. And currently, the flavor of the month seems to be the telecom
industry.

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History of Indian "elecommunications started in 1851 when the first operational

land lines were laid by the government near Calcutta (seat of British power).
"elephone services were introduced in India in 1881. In 1883 telephone services
were merged with the postal system. Indian Radio "elegraph Company (IR")
was formed in 1923. After independence in 1947, all the foreign
telecommunication companies were nationalized to form the Posts, "elephone
and "elegraph (P""), a monopoly run by the government¶s Ministry of
Communications. "elecom sector was considered as a strategic service and the
government considered it best to bring under state¶s control.

"he first wind of reforms in telecommunications sector began to flow in 1980s

when the private sector was allowed in telecommunications equipment
manufacturing. In 1985, Department of "elecommunications (DO") was
established. It was an exclusive provider of domestic and long-distance
servicethat would be its own regulator (separate from the postal system). In 1986,
two wholly government-owned companies were created: the Videsh Sanchar
Nigam Limited (VSNL) for international telecommunications and Mahanagar
"elephone Nigam Limited (M"NL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the

economy. Also, examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to
initiate a change process finally resulting in opening up of telecom services sector
for the private sector. National "elecom Policy (N"P) 1994 was the first attempt
to give a comprehensive roadmap for the Indiantelecommunications sector. In
1997, "elecom Regulatory Authority ofIndia ("RAI) was created.

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 "RAI was formed to act as a regulator tofacilitate the growth of the telecom
sector.New National "elecomPolicy was adopted in 1999 and cellular services
were also launched inthe same year.

"he August of 1995 saw the launch of the firstmobile service in India, µModi
"elstra¶ in Calcutta. However, the callrate structure; with an outgoing call rate of
Rs.16 a minute, incomingcall rate of Rs.8 a minute and cell phones costing
around Rs.15,000were the prime reasons why the cellular communication did not
get thedesired popularity. "he New "elecom Policy in 1999 introducedseveral
consumer-friendly initiatives. Only after the entry of privateoperators like
BhartiAirtel, Hutch, Reliance, "ata, BPL, Idea, etc.,who created a competitive
market which further reduced operationalcosts, did the upward trend in the
number of mobile subscribersstarted. "he tariffs have come down substantially
with Indian Mobilerates being the lowest in the world. "he number of wireless
subscribersrose from 16 million in 2003 to 317 million at the end of May
2008.With this, India has become one of the fastest growing mobile marketsin the
world. Already, "he Indian market leader, BhartiAirtel hasalready crossed the 50
million customer mark to become one of theworld¶s top 10 operators and has
become the fastest private telecomcompany in the world to achieve this
milestone.

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"he telecom services available in India include-

1.c Basic Fixed Line Services

2.c Mobile Services (GSM & CDMA)
3.c Internet Services
4.c International Long Distance Services
5.c National Long Distance Service

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GSM and CDMA are the two main competing network technologies deployed by
cellular service provider¶s world over. GSM(GlobalSystemfor
MobileCommunications) Originated in Europe in 1990. "he GSM Association is
an international organization founded in 1987, dedicated to developing, providing
and overseeing the worldwide wireless standard of GSM.

While CDMA (Code Division Multiple Access) is a proprietary standard

designed by Qualcomm Inc in United States and has been the dominant network
standard for North America and parts of Asia. It became an international standard
in 1995.

However now, GSM networks have penetrated the United States and the CDMA
networks have spread in other parts of the world. People of both the camps claim
that their architecture is superior to the other.

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"he Indian "elecommunications network with 203 million connections is the

thirdlargest in the world and the second largest among the emerging economies
of Asia."oday, it is the fastest growing market in the world. "he
telecommunication sectorcontinued to register significant success during the year
and has emerged as one of thekey sectors responsible for India¶s resurgent India¶s
economic growth.

§c "elecom sector accounts for 1 percent of India¶s GDP. Likely to double in

2-3 years.c
§c "elecom services contribute 30 percent to India¶s total service tax revenue.c
§c "he Indian telecom sector gives direct employment to more than
4,00,000people, compared to about6,00,000 people in China.c
§c Not just the enabler of software, BPO and IteS companies, it is also
thelifeline of a fast growing E-commerce space.c
§c State-of-the-art telecom infrastructure has led to the rise of cities like
Mysore,Mangalore, Jaipur, Ahmedabad, Kochi on the software services
map.c
§c "his has helped spread the benefits of a booming Indian economy to
beyondmetros and large cities, and wealth creation is happening in tier-2
cities.c

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"he sector, which was growing in the range of 20 to 25 per cent up to the year
2002-03,has moved to a higher growth path of an average rate of 40-45 per cent
during the lasttwo years.

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§c India is the fifth largest telecom services market in the world; $17.8 billion
revenues in 2005.

§c Industry grew by about 36% in 2005 over 2004.

§c "he Indian telecom market size of over $8.3 billion is expected to treble
itselfbyyear 2011-2012, accordingto Ernst & Young. Financial year 2012.
"husthere is a significant opportunity for telecom players.

§c "elecom market has grown at about 25% p.a. over the last 5 years.

§c Wireless segment subscriber base grew at 85% p.a.: fixed line segment
atabout 10% p.a.
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§c "he Indian telecom market has both public and private sector
companiesparticipating:c
§c Public sector has over 60% market share, down from 90% in 2000.c
§c Private companies have added subscribers at a CAGR of 192% since 2000.c
§c Mobile operators have deployed both CDMA ( 16 million users) and
GSM(55 million users) wireless networksc
§c Value added service features constitute 10% ofrevenue today (2 % in
2001)POLICY.c
§c 74% to 100% FDI permitted for various telecom services.c
§c FIPB approval required for foreign investment exceeding 49% in all
telecom.c

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§c 100% FDI permitted in telecom equipment manufacturing.c
§c India has a telecom policy aims to encourage private and
foreigninvestment.c
§c An independent regulator ± the "elecom Regulatory Authority of
India("RAI).c
§c Revenue-share model for license issued by the Government for
telecomservices in India. Unified access licenses are available for
providing telecomservices on a pan-India basis.c
§c Planned opening up of National Long Distance (NLD), International Long
Distance (ILD) and other value added services.c
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§c India expected to be among the fastest growing telecom markets in
theworld.c
§c Projected growth of 30-40% p.a. to reach 250 million subscribers by2009-
2010.c
§c Over 3 million new users are added every month ± mostly in wireless.c

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c Favorable demographics and socio economic factors leading to high
growth:c
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§c Growth of disposable income combined with changes in
lifestyleIncreasing affordability-low tariffs, easy payments
plans and handsetfinancing.c
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§c Increased coverage and availability of mobile services.c
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c Investment opportunity of $22 billion across many years:c
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§c "elecom Devices and Software for Internet, Broadband and
Direct "oHome Services. Set "op boxes, Gateway exchange,
Modem, Mobile handsets andconsumer premise equipment¶s,
Gaming Devices, EPABX, "elecom Software. c
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§c "elecom Services for voice and data via a range of
technologies.c
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§c Applications and Content development ranging from gaming
to education.c
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§c Nokia, LG, Ericsson are all investing in India.c
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Vodafone limited
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Vodafone, the world¶s leading international mobile communicationscompany,
has fully arrived in India. Vodafone Essar announced today thatthe Vodafone
brand will be launched in India from 21st Septemberonwards.
"he popular and endearing brand, Hutch, will be transitioned to Vodafoneacross
India. "his marks a significant chapter in the evolution of Vodafoneas a dynamic
and ever-growing brand. "he brand change over the next fewweeks will be
unveiled nationally through a high profile campaign coveringall important media.
Vodafone, the world¶s leading mobile telecommunication company,completed
the acquisition of Hutchison Essar in May 2007 and thecompany was formally
renamed Vodafone Essar in July 2007. AsimGhosh,Managing Director,
Vodafone Essar, said ³We¶ve had a great innings asHutch in India and today
marks a new beginning for us. Not as a departurefrom the fundamentals that
created Hutch, but an acceleration into thefuture with Vodafone¶s global
expertise.´
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HaritNagpal, Marketing and New Business Director, Vodafone Essar, said, ³"his
transition is probably the largest brand change ever undertaken in this country
and arguably as big as any in the world. It is even larger than our own
previousbrand transitions as it touches over 35 million customers, across 400,000
shops and thousands of our own and our business associates¶ employees.´

"he Vodafone mission is to be the communications leader in an increasingly

connected world ± enriching customers¶ lives, helping individuals, businessesand
communities be more connected by delivering their total communication needs.

Vodafone¶s logo is a true representation of that belief ± "he start of a new

conversation, a trigger, a catalyst, a mark of true pioneering.

Vodafone established its presence in India in 1994 by acquiring the cellular

license for Mumbai. It now has operations in 16 circles accounting for 70% of
India¶s mobile customer base. With over 27.7 million customers, it is one of
India¶s most reputed telecom companies.

Vodafone, under the Hutch brand, over the years, has been named the µMost
Respected "elecom Company¶, the µBest Mobile Service in the country¶, and the
µMost Creative and Most Effective Advertiser of the Year¶.

Hutchison Essar is now part of Vodafone ± the world¶s leading international

mobile communications company. Vodafone now has operations in 26 countries
across 5 continents and 36 partner networks with about 225 million proportionate
customers worldwide. Vodafone has tied up with Essar as its principal joint
venture partner for the Indian operation."he Essar Group is one of India¶s largest
corporate houses with interests spanningthe manufacturing and service sectors
like Steel, Oil & Gas, Power, "elecom & BPO, Shipping & Logistics and
Engineering & Constructions. "he Group has an asset base of over Rs.20 billion
(US$ 4.4.billion) and employs over 4000 people.

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"hey will drive operational performance through customer value

enhancement (which replaces revenue stimulation) and cost efficiency.
Value enhancement involves maximizing the value of their existing
customer relationships not just the revenue. "hey will move away from
unit pricing and unit-based tariffs to propositions that deliver much more
value to our customers in return for greater commitment, incremental
penetration of the account or more balanced commercial. "his will require
a more disciplined approach to commercial costs to ensure their investment
is focused on those customers with higher lifetime value. "hey are
confident that by targeting their offers, they can deliver more value to our
customers and have a better financial outcome for Vodafone.

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Cost efficiency requires them to continue to deliver scale benefits by

optimizing operating and capital expenditure. Across the Group they have
a significant number of cost programmers, which they expect to reduce
current operating costs by approximately £ 1 billion per annum by the
2011 financial year. "his will offset the pressures from cost inflation and
the competitive environment and enable investment in revenue growth
opportunities. As a result, on a like-for-like basis, we are targeting broadly
stable operating costs in Europe and for operating costs to grow at a lower
rate than revenue in ACE (Africa and Central Europe) and APME (Asia
Pacific and Middle East) between the 2008 and 2011 financial years.
Capital intensity is expected to be around 10% over this period in Europe
and to trend to European levels in emerging markets over the longer term.c

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"hey have made significant progress on mobile data, with 20nnualized

revenue of £3 billion. "his is still a large opportunity, with the penetration
of data devices relatively low in Europe and almost nil in emerging
markets.

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"hey have a strong position in core mobile services and they have built a
solid presence in 18 months in multi-nation accounts through Vodafone
Global Enterprise. "hey will make the most of this strength to expand our
offerings into the broader enterprise communications market locally. "his
means serving small and home offices (SOHs) and small-to-medium
enterprise (SMEs) with shared platforms and services, supported by our
local sales forces.

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"hey will adopt a market-by-market approach focused on the service,

rather than the technology. It will be targeted at enterprise and high value
consumers as a priority.c

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"hey are represented in most of the key emerging markets where
significant growth is expected in the coming years. Our main focus now is
on execution in these markets, particularly in India, "urkey and African
footprint, following their agreement to acquire control of Vodacom.

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"hey will also try to maximize the mobile data opportunity. "here are few
potential large new markets of interest to us and they will be cautious and
selective on future expansion.c
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You want to go Vodafone and stay connected anytime, anywhere? Just visit a
Vodafone outlet in your neighborhood and choose from a range of affordable
Postpaid or Prepaid connections.
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Whether you¶re looking for a new Vodafone connection, or a fresh handset,

you¶ll find it here. You can also subscribe to any of our value added services or
get more information on them. Pay your bills, get your queries answered, and lots
more. Hutch Shops are located at very convenient locations around the country.
Select your region to find one near you. Mobile Vodafone Shops Vodafone
Shops are going on the move, to bring our services closer to you and to provide
faster online service, right at your doorstep. You can visit a Mobile Vodafone
Shop near you for:c

§c Postpaid connections and add on cards.

§c Prepaid connections and recharge cards
§c Information on the latest talk plans.
§c Bill payments via cash, cheque or credit card
§c Demos and activation of our Value Added Services
§c Queries, SIM replacements and much more.c

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Did you know that a range of Vodafone services are available in your very own
neighborhood? Just walk into a Vodafone "eleshop, just round the corner, for
anything you need. At a Vodafone "eleshops you can buy a new postpaid or
prepaid card, pay your bills, reactivate your connection, and much more.

44cc c

A dealer should carry the following in his sales kit:

a)c All products leaflets (adequate quantities).

b)c List of prospects with their addresses

c)c Information about the competition in the market

d)c Price list of Vodafone product and corresponding prices of competitor

products.

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A supply chain is described that consists of all the parties and their supplied
activities that help us to create and deliver services to the final customer.
"he front channels are specially kept in mind.

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§c Handlingc
§c Storage
§c Display
§c Promotionc
§c Sellingc
§c Information and feedbackc

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Vodafone follows a strict policy in selection of the dealers, and therefore it is

necessary to fulfill the following pre- requisites to be eligible to become a dealer:

I.c "he dealers should have a sound financial background. "he financial
capability of a dealer is solely depended on the discretion of the company
officials.

II.c "he dealers should have a good market reputation, since the dealers help
thecustomers in forming the first impression a customer has about the
company.

III.c "he dealer should have a good previous track record,i.e of timely
payments, nocriminal background etc.

IV.c "he dealers should have good market penetration. "he company¶s ability
to gainmaximum customers in this era of competition solely depends on
the penetrationthe dealers have in the market.

V.c "he last criterion of dealer¶s selection for Vodafone is the area the dealers
cover."his would include different geographical areas which are covered
by a dealer.

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Vodafone believes in ³Customer Loyalty´ and thus Vodafone expects that their
dealers apart from selling paint products should perform the following functions
for better customer relations¶ management:

I.c Sales promotion through regular promotional schemes, road shows,

campaigns etc. the expenses incurred by the dealers is shared by the
company only if these activities are for promotion of the company and not
of the dealer.

II.c Recruitment- done under the guidance of certain Vodafone officials.

III.c "raining and development of manpower with company assistance.

IV.c Servicing according to the size of orders.

V.c Customer relation management.

VI.c Promote other products of the company

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 "he dealer should be in regular touch with the customer, keep taking his feedback
and ensure maximum customer satisfaction. "he dealer shouldalso try and
convince the customer to try newer products of the company.

"he dealer has to thus cater to 3 major areas:

a)c Pre sale

b)c Selling
c)c Post sale service

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Business head DSA/DS" Dealers
G.M. Sales Manager Shop Owners
Shop Owners "LS Metro Shops
Sales Consultants "elemarketing Executives Vodafone Shops
Executives Field Executives
"ele Marketing Executives
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For the dealers-
Vodafone involves both external and internal agencies which conduct this survey
on a monthly basis.

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"he company gives margins at the time of sale of the product. "he margin varies
according to the type of the product.

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Vodafone actively supports its cannel members with promotional activities.

Vodafone helps performing these activities on a daily basis.Further these are
dividing in to different levels which are:-

§c Zonal level-zonal staff is involved in this. "hese include various kinds of

road shows.

§c Circle level-"his has the FM radio and local newspapers.

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1)c What type of sales organization structure do you possess?
2)c What are the various channel structures in which you operate?
3)c What are the various criterion/terms and conditions of selecting your
channel members?
4)c What is the average Inventory Size you keep?
5)c What is the average Order Cycle time?
6)c What are the various modes of transportation adopted and cost incurred?
7)c What are the methods of measurement and frequency of providing
appraisals to channel members?
8)c What are the modes of by which you receive your payments:
I.c Advance payment
II.c Payment on Delivery
III.c Credit Payment
9)c In case you provide the credit period, what is the time limit?
I.c upto15 days
II.c 15-30 days
III.c >30 days

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 10)c How frequently do you collect the feedback from your channel
members?
11)c What are the margins you provide to your Channel Members?
12)c Do you support your Channel Members by promotional activities?

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In bookkeeping, accounting, and finance, Net sales are operating revenues earned
by a company when it sells its products. Revenue (net sales) are reported directly
on the income statement as Sales or Net sales.
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A way of selling a company's product either directly or via distributors; "possible
distribution channels are wholesalers or small retailers or retail chains or direct
mailers or your own stores".
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A model of cellular service whereby the customer is charged for usage in the
prior month (hence 'post' usage), and hence does not feature any limitations on
volume of service used.c


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A model of cellular service whereby the customer is charged for usage in prior
month and pay before using the services.
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§c collegesavings.about.com
§c wikipedia.org
§c www.st-patricks.ac.uk
§c www.sba.gov
§c www.pinsentmasons.com
§c wordnetweb.princeton.edu

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