Business to Business Marketing Stage-I Submission

Group 4, Section A
Rosemir Dodre (PGP27178) H Swamy Mahesh(PGP28119) Santosh Anand G (PGP28285) Anand
IIM Lucknow

Aditya Goda (PGP28028) Mukesh Kumar (PGP28284) Niraj Kumar (PGP28311)

18th June 2013 B2B

Contents

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1. Company profile: AIRTEL

Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, the company ranks amongst the top 4 mobile service providers globally in terms of the number of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over 269 million customers across its operations at the end of March 2013. There are 4 business divisions of Airtel 1) Mobile services 2) Tele-media services 3) Airtel Business 4) Digital TV services New Initiatives taken or planned to be taken up by Airtel: Airtel money (Semi Closed Wallet) launched nationally in February 2012, in over 300 towns across 20,000 retail outlets with an acceptance network across 7,500 merchant establishments. CEM (Customer Experience Management), a proactive diagnosis tool that provides a multi-dimensional end-to-end view encompassing network, device, service insights and usage behaviour The Company re-organized the India operations into the B2C (Business to Consumer) and B2B (Business to Business) entities to leverage inherent synergies across multiple product lines. 3 | Page

Airtel business mobility solutions helps match the needs of your organization and preference of your employees with the right mix of applications, voice plans and devices. The solution lets your people work from anywhere and in a manner they choose enabling them to achieve more and results in more smiles per cubicle. Naturally, as your organization's smile line goes up, so does the bottom line.

Mobile application tool for enterprises the business application that enables you to unleash the power of your human capital

Customised voice plans include International Roaming packs that are created to suit your needs

Business Division (Airtel business - BFSI)

Banking Financial Services and Insurance, under this vertical we cater mainly to payment solutions. We are proposing mobile point-of-sale solutions to large corporates to make transactions cashless and portable.

2. Product profile: PAP (Plug and Pay)

Plug and Play (PAP) enables business entity to accept cards, such as debit and credit on their iOS or Android powered phones or tabs. The application offers flexibility of manually entering the card details or swiping the card through the PAP reader. PAP reader is a tiny device reader which can be attached into the audio jack of any phone or tablet which reads the magnetic stripe embedded in card. PAP Register app resembles a traditional cash register, which can be readily understood and is very user friendly. PAP Wallet enables customers to set up a tab and obtain pay from their consumers simply with a credit, debit, or gift card. Sketch of our product

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3. Product profile fit to companys

This business unit of Airtel delivers end to end telecom solutions to India's large corporates. It serves as the single point of contact for all telecommunication needs for corporate customers in India by providing full suite of communication services across data, voice and managed services. PAP fits to the companys strategy of enriching lives of people in many ways. Some of the applications that can be used by business are a) Cashless transactions at customers home Many e-retailers give home delivery services where customers need to pay cash at home. Besides this many hotels and restaurants offer home delivery where cash transaction happens at consumers, place. This cash transaction can be 5 | Page

completely replaced by portable PAP device, which can accept cards at any place and hence provide hassle free transaction. It also eliminates problem of change which is often experienced by retailers. b) Increasing customers satisfaction by reducing queue at shopping place In many retail chains, there are big queue at peak times and they want affordable and neat solution which can reduce their burden and increase the shopping experiences of their consumers. c) Bill payments at government agencies At many government agencies, people have to pay their bills (such as electricity bill) on a monthly basis, where a person goes to every home for meter reading. If that person carries PAP with him to the customer, then the customer can make the payment there itself. This would be very convenient for both the government collecting agencies and end customer. Companys profile fit with product profile: Companys mission Customer service focus Empowered employees Innovative services Cost efficiency

So in align with companys mission to provide innovative services to small and medium business enterprises and giving end to end solution. It specializes in providing customized solutions to address unique requirements of different industry verticals; BFSI, IT, ITeS, Manufacturing and distribution, media, education, telecom, Government and PSUs and retail among others.

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5. Definition of One Unit of Product

One Product Unit One transaction per dongle for the merchant. Cost to merchant = 2.5% of total transaction amount
PAP product package consist of dongle which will be provided free of cost to merchants. Revenue source would be 2.5% commission charged over all the transactions carried out using PAP.

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6. Costing Analysis
A. Total Cost To Company
Cost of Project Software App Employee costs (50 employees) Working Capital IT infra SGA Setup Cost Total cost Cost 150000 0 150000 00 *49850 00 200000 00 127500 00 500000 0 592350 00 Basis Development & Distribution cost of software - one time Cost of maintaining corporate accounts Number of dongles * Cost of each Dongle Server/Storage/Platform cost 10% of Revenue for first Year Cost of setting up the business - one time

*Number of Dongles calculation is shown below

B. Demand and Revenue Estimate

Estimate (INR) 1 2 3 4 Online Retail Business in India (worth in INR) Business through Cash on Delivery mode Size of Cash on Delivery ( Column 1 * Column 2) Estimated Market share of Cash on Delivery for PAP (5% of Column 3) 8 | Page 170000000 000 60% 102000000 000 510000000 0

5 6 7 8 9 10 11 12

Average amount per Cash on Delivery per transaction (Secondary Data) Total number of transactions in an year Transactions per day (assuming 310 days of operations per year) Number of transactions per dongle per day (Expected) Number of dongles (Column 7 / Column 8) Estimated Revenue (5% of Cash on Delivery volume for PAP) Net profit (Estimated Revenue Total Cost) Volume of data per transaction

1650 3090909 9971 10 997 12750000 0 68265000 1Mb

C. Revenue Projections
Assuming a CAGR of 30%, the revenue projections for the first five years of operations are shown below: Year1 Year2 Year3 Year4 Year5 1275000 00 1657500 00 2154750 00 2801175 00 3641527 50

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