distribution network of bharti airtel - … parameter airtel vodafone distribution channel structure...

DISTRIBUTION NETWORK

OF BHARTI AIRTEL

EXISTING DISTRIBUTION SYSTEM OF THE COMPANY

GENERAL TRADE

URBAN TRADE RURAL TRADE

This consists of a system of distributors (Urban and Rural) who are allotted territories and service retailers who have shops

in the local market. These retailers in turn provide service to customers. Some types of shops are:

• Recharge only shops

• Recharge and Sim providers

• Mobile phone and accessories shops

• Kirana Shops

• Stationery shops

• Pan Shops

DistributorsField Sales

ExecutivesRetailers Customers

Rural Direct

Distributors

Field Sales

Executives

Rural

RetailersCustomersDistributors

Field Sales

ExecutivesRetailers

EXISTING DISTRIBUTION SYSTEM OF THE COMPANY

MODERN TRADE

This channel consists of Airtel exclusive stores in

vicinity of malls and other popular shopping streets.

These are franchises owned by dealers who may or

may not be the same distributors. These are

primarily for customer service but also serve as one

of the channels of distribution.



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


ONLINE TRADE

This consists of company’s own website and various

other online recharge sites like Freecharge, Paytm

and so on. The online channel only does transaction

related only to recharges.

EXISTING SALES MANAGEMENT OF THE COMPANY



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


The country has been divided into 23 circles.

The categories A, B, C are decided on the basis of:

Population Density

Purchasing Power

Penetration

SALES HIERARCHY



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


Circle CEO

Director Market Operations

Sales Head

Zonal Business Managers

Zonal Sales Manager

Territory Sales Manager


Zonal Sales Manager



Zonal Sales Manager



Zonal Sales Manager


SALES HIERARCHY



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


SALES HEAD

The sales head reports directly to the circle CEO and is responsible for formulating strategies for sales growth in the

circle.

ZBM (ZONAL BUSINESS MANGERS)

The ZBMs are responsible for sales of a zone( usually consists of 6-7 districts). From this level the execution of the

strategies start. The ZBMs report to the Sales head.

ZSM ( ZONAL SALES MANAGER)

The ZSMs look after sales in individual districts. They report to the ZBM.

TSM (TERRITORY SALES MANAGER)

The TSMs handle individual distributors and support the distributors in their work. They manage the distributor’s

sales staff (Field Sales Executives) on a daily basis and are responsible for driving daily sales of the distributors.

MARGIN



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


Margins Structure for Distributors

The company transfers 104.25% of the value which the distributor credits to

the company. The distributor passes 2.5% to the retailer.

Rs. 10-12 per sim

Margins Structure for Retailers

2.5% in recharge

5-10 Rs per sim.

HOW DO THE SALES AND MANAGEMENT SYSTEM FUNCTION IN THE COMPANY



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


1.• Company appoints distributors so as to reach different retailers in a city.

2.• Distributors are appointed taking into consideration the capacity of investment, proximity to

markets, reputation in the market.

3.• Distributors appoint field sales executives on his payroll. The number of FSEs are decided

according to the number of shops in the area allotted to the distributor.

4.• The TSMs are responsible for daily dealing with the distributors and manage the distributor’s

FSEs.

5.• The TSM takes daily gate meeting with the FSEs and discusses the focus area of the day and

feedback on the previous day activities.

6.• The TSMs also ensures that the distributors perform on their KPIs and proper stock is maintained.

COMPETITOR ANALYSIS

COMPANY PARAMETER AIRTEL VODAFONE

Distribution Channel Structure

Simplified single layer structure. Distributors

hire the field sales representatives and allot them

60-70 retailers.

Super distributors - ensure that the stock of SIM

card is always available for the retailers.

Associate distributors - Sell SIM cards and data

cards to end customers through their shops in

metro cities.

Sales Channel Structure

Circle CEO looks after the entire circle

operations.

Zonal sales manager is responsible for

handling sales of a particular zone.

TSM has the main responsibility of handling

distributors.

Simplified channel structure, with the Area Sales

Manager (ASM) for 2-3 districts.

Margins to the Channel Partners

Margin to the distributor- 1.75%.

Margin to the retailer-2.5%.

Margin to the distributor- 2%.

Margin to the retailer-2.5%.

Salary Structure for the channel

partners

FSE-100% salary is paid by the distributor.

Airtel has no role in selection or payment for the

FSEs

FSE- 50% paid by Vodafone and 50% by distributor

REGIONS OF FIELD VISIT

Jail Road

Vijay Nagar

Bhawar Kuan

Treasure Island

Ticket Size

Frequency of visit of salesman

margins of competitors

Total Business per month

Margin earned by retailer

Company promotional activities

Competitor promotional activities

Once daily

Airtel: Rs 20000-25000Total: Rs 50000-55000

2.5 % on rechargeRs 5 on sim


Rs 2000-5000 recharge50 sims

Rate cards pamphlets and postersPromotions on sim and recharge offers

Same

REGION: JAILROAD

Ticket Size







Once daily





Low promotional activities, No kiosksPromotions on sim and recharge offers

Lesser than airtel

REGION: BHAWAR KUAN

Ticket Size







Once daily in the evening


2.5 % on rechargeRs 5-10 on sim


Rs 1500-2000 recharge10-12 sims

Low promotional activitiesPublic non responsive

Lesser than airtel

REGION: VIJAY NAGAR

Ticket Size







Once daily





Moderate promotional activitiesKiosks and banners of airtel in the area

Comparable to airtel

REGION: TREASURE ISLAND




Once in two days

Recharge: Around 250 customers per month. Average value- 150 Rs. Therefore: 250*150= 37,500 Rs

E- Recharge: Varies according to value of recharge. Ex- Rs 10 on 298 Rs. Recharge.For lower amount recharges, the margin is calculated by clubbing all the transactions.Sim: Rs. 5- 10 payout per sim

AIRTEL EXCLUSIVE STORES

Company Promotional Activity

Seasonal offers- Bonanza for different types of customers.

RECOMMENDATIONS



Rural Direct

Distributors

Field Sales

Executives

Rural


Field Sales


Coverage on Pan shops should be increased in the

Vijay Nagar area. There were no Pan Shops selling

recharges. It will be first mover advantage for the

company.

Airtel Stores should have a “Do-it-Yourself” machine

to encourage transactions.

Partner with mobile shops in Vijay Nagar Area

The presence of the Airtel recharges in the area

around TI and Regal Square in low. Customers have

to go to jail road to get the recharges. Coverage in

this area should be increased.

There is less promotional activity in the Bhawar

Kuan area. The company should focus on activities in

this area as it is a hub of coaching institutes.

There is no proper Point of Sales display material in

the shops around the railway station area. Focus on

this aspect should be provided.

THANK YOU

distribution network of bharti airtel - … parameter airtel vodafone distribution channel structure...

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