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E1E1--E2 CME2 CMMANAGEMENTMANAGEMENT
For internal circulation of BSNLonly
MANAGEMENTMANAGEMENT
Project VijayProject Vijay
WELCOME
This is a presentation for the E1-E2 Management
Module for the Topic: Project Vijay.
Eligibility: Those who have got the Upgradation to E1-
to E2.
This presentation is last updated on 15-3-2011.
You can also visit the Digital library of BSNL to see this
topic.
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Learning objectives
At the end of session, the trainees will be able to
Explain present status of BSNL
Describe Project Vijay Objectives
Define key terms used in Project Vijay such as FoS, Primary
sales,Secondary sales, Tertiary sales, Reach and Extraction , MBOsales,Secondary sales, Tertiary sales, Reach and Extraction , MBO
Explain revised structure of Franchisee channel
Explain team structure for Project Vijay
Explain the concept of market retailer survey
Describe role description of Project Vijay Team
Describe proposed process for ordering and delivery
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BSNL FINANCIAL PERFORMANCEBSNL FINANCIAL PERFORMANCE
For internal circulation of BSNLonly3/11/2011
Present status of BSNL
Largest fiber and copper network
� Widest geographical reach
� Large base of mobile towers
� Significant potential to monetize assets through
broadband broadband
Large existing customer base
� Long customer relationships
� Large , geographically distributed and experienced
manpower
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Challenges
Slowing growth leading to poor financial performance �
Facing an extremely competitive environment
Lacking some critical skills to succeed in current market
scenario scenario
Organization structure and processes that are not
attuned to market needs �
Low employee motivation and involvement
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Wireless: Basic definitions - I
Customer using mobile services for first timeFirst time users
Increase in active subscriber base is called 'Net Adds'Net Adds (= No of new connections sold - No of disconnections/ churn)
New Total No. of SIMs sold during a duration are considered as
New connectionsconnections
No. of disconnections leaving the operator are defined as
churn subscribersChurn
Recharge voucher is a paper voucher which customer
buys to recharge his prepaid SIM
Recharge
Voucher
Note: New connections are also referred to as Gross adds
2
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Wireless: Basic definitions - II
C Top-Up SIM is a special SIM given to Franchises/Retailers, using which they canCTOP-UPrecharge a subscriber's SIM without using any paper vouchersSIM
When a subscriber recharges his prepaid SIM from a retailer's C TOP-UP SIM or Electronic through a website, it is called electronic recharge or flexi recharge
Recharge
Commission is the money channel partner gets from telecom operator for making aCommission sale. E.g. on RCV sale, Franchise gets 4.5% discount of which some part he will pass
on to retaileron to retailer
Trade scheme is a promotional scheme for channel partners (Franchise, Retailers)Trade Scheme
where channel partners could get more incentive over and above usual commission •Incentive could be gifts/ prizes or extra commission in Rs
• Trade scheme usually runs for a short duration, e.g. in last 10 days of the
month E.g. Vodafone scheme on new SIMs
Product Points PointsReward/ gift
sold awarded slabs
Durables: e.g. Music system,Magic box 25 < 7k
Refrigerator, washing machine, etc.
Handset Higher value durables: A/C,20 8k - 23 k
bundle Blackberry, laptop, handycam, etc.
Pre-paid 10 25k - 50k Motorcycle, TV, Foreign trip, etc.
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Seven distinct channels exist within BSNLFranchisee Retailer network accounts for bulk of wireless sales (SIMs, Recharge)
# across India Definition/ exclusivity
1 • Franchisees: ~1,200 • Specific area allocated, exclusive Accounts forFranchisee• Sub-franchisees: ~6,000 -13,5003 • Non-exclusive (via franchisee)
Retailer Network ~70-95% of• Retailers: 300,000 -350,000 • Non-exclusive (via franchisee/sub franchisee) wireless sales4
2
DSA • ~21,000 - 25,000 • Non-exclusive• Types: Individual, Post office, Petrol pumps, PCOs
3 • ~4,100 • BSNL owned outlet (exclusive)Customer Service• Focus on customer service (vs sales)Centre (CSC)Centre (CSC)
4 • Exclusive (composed of BSNL employees)• Proposed: ~45,000 • Teams of sales-force split product-wiseCompany sales
• Activities planned: Door to door sales, Franchisee monitoring, org.force (proposed)of melas, etc
5• ~301 • Provides soft pins2 to retail outlets with POS terminals
E-PIN franchisee • Non-exclusive/ exclusive
6• ~51 • Partner company (sys. integrator) for supply of products notBusiness
available with BSNL, to meet all customer requirementsAssociate (BA)• Non-exclusive
7Business • ~150 • Exclusive (BSNL employees)
External InternalDevelopment (BD) • Function as key account managers
Note: All figures in this slide are approximate estimates obtained from BSNL 1. Incomplete figure - not available for all circles2. PIN nos transmitted in electronic form to POS terminals, then printedas recharge coupons and sold to customer 3. Exact no not available 4. Will vary significantly by circle/ SSA
Source: BSNL 4
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Definitions of Key terms used in
Project Vijay
FoS: Feet on street:
Franchise's employees
who will visit retailer shops � deliver material and who will visit retailer shops � deliver material and
collect CAF (Customer Application forms ) forms
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Primary Sales:
Sales of product from BSNL to franchise is defined as
'Primary Sales'
Secondary Sales:
Any sales from franchise unit to retailer is defined as
'Secondary Sales' 'Secondary Sales'
Tertiary sales:
Product sales from retailer to end-customer is defined
as 'Tertiary Sales'
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Reach:
Reach defined as the ratio of telecom retail outlets
(multi-brand telecom outlets) that sell BSNL products to
the total number of telecom retail outlets in a particular the total number of telecom retail outlets in a particular
geographical area .
For internal circulation of BSNL only
Extraction:
Extraction defined as the share of BSNL sales in the
total sales of a particular multi-brand telecom outlet
By number of SIMs By number of SIMs
By value of recharge
For internal circulation of BSNL only
Definitions - reach and extractionILLUSTRATIVE
Multi-brand telecom outlets selling SIMS (total)BSNL Reach
Reach defined as the ratio of telecom retail outlets (multi-brand telecom outlets) that
sell BSNL products to the sell BSNL SIMs (4) Do not sell BSNL SIMs (4)
total number of telecom retailoutlets in a particular BSNL reach = 4 / 8 = 50%BSNL reach = 4 / 8 = 50%geography
Total SIM sales of a multi-brand telecom outletBSNL Extraction
Extraction defined as the share of BSNL sales in the total sales of a particular
multi-brand telecom outlet BSNL SIMs sold (2) non-BSNL SIMs sold (8)
• By number of SIMs• By value of recharge BSNL SIM extraction = 2 / 10 = 20%
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MBO:
Multi-brand telecom outlets
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Revised structure of Franchisee channel
Primary sales will be made from BSNL SSA to
Franchisee.
Franchisee will make the sales to Sub Franchisee and
also to MBO retail Outlets through FoS. also to MBO retail Outlets through FoS.
Sub Franchisee will also make sales to MBO retail
Outlets in its area.
MBO retail Outlets will make the sales to customers.
For internal circulation of BSNL only
India likely to have ~700 mn wireless connections over next 5 yrsGrowth will be front-loaded with ~53% new adds in next two years
India wireless connections growth (past and projected)
Subscribers (Mn)
800 ~53% of total
net adds during Urban+8%2008-13 703 Rural
655Overall
605600 +20% 554
360484484347
Total net adds320 million334
383400 319+59%
300 Urban net adds 87 million (27%)
261
273
200 Rural net adds 233 million (73%)166+96% 343307
27196 23518452
33 1106 13
0
1Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Monthly net adds (Urban) in million 2.3 1.6 1.3 1.1 1.1
Monthly net adds (Rural) in million 6.1 4.2 3.0 3.0 3.0
1. BSNL & MTNL WLL not projected & excluded hereafter. Rural & Urban break-up estimated based on Jun-08 break-up Note: Based on circle wise estimation; BSNL WLL data excluded for projections; Connections are referred as subscribers hereafter in this presentation Source: COAI, AUSPI, TRAI, Census data, literature survey, BCG analysis
9
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Seven building blocks of Project Vijay have been defined, inorder to achieve these objectives
1
Creation of Proj.Training of team
Vijay team
Wireless Potential Index2
analysis
Tariff Tool:3
Training and Rollout
SancharSoft:4 SancharSoft: Refinement
Set-up and Rollout
Market Retailer5
Survey
6 Revised Channel norms
7 Review Mechanisms
Start of a circle Ongoing refinement & stabilization18
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Concept of market retailer survey
In the beginning a survey of retailers selling telecom
products in a particular geographical area will be made
by BSNL survey team with a purpose
To baseline existing retailer universe before pilot launch
To develop channel norms for franchisee FOS and To develop channel norms for franchisee FOS and
service frequency, based on analysis of retailer universe
Survey to be conducted in each SSA of circle
Both urban & rural areas to be covered
• Survey to be completed in 3-4 weeks duration
For internal circulation of BSNL only
Details which are contained in the
printed survey form in brief
1. Details of the surveyor
2. Details of the retailers with phone numbers
3. Do you sell SIMs of any brand? yes/no
4. Do you sell recharge voucher of any kind? Yes ?No
5. Do you sell BSNL SIM? yes/no 5. Do you sell BSNL SIM? yes/no
6. Who sell BSNL SIM to you?
7. Details of monthly sale of telecom product.
8. Comments about BSNL services to the retailer?
For internal circulation of BSNL only
Revised team structure for Project VijayNew roles created at HO, Circle and Corporate level
Head Office Circle SSA/ Region
Project Sponsor(Director, Cons. Mobility2 )
Project Champion (HO) Project Champion (Circle)(GM, Cons. Mobility, S&D) (CGM)
SSA/ Region Head
Project Leader1(GM/ DGM Cons. Mobility)
Rollout Managers SSA sales head - Cons. MobilityRollout Managers SSA sales head - Cons. Mobility
(DGM) (DGM/ DE/ SDE)Circle level Nodes
(SDE/ JTO)
Dedicated DGM Franchisee Managers Retailer Mgr Coordinator Channelstationed at circle but (SDE/ JTO) (SDE/ JTO) Mgmt.
reporting at HO teamRetailer Managers(TOA/ TTA/ TM)
Franchisee
Sub-franchisee
New roles created in BSNL
Channel (external)MBO Retailer MBO Retailer
Interact via Project Vijay review process
Customer1. Actual designation depends on the size of the circle; Large circles would have a GM Consumer Mobility (S&D) asthe Project Leaders, reporting to PGM Consumer Mobility (who reports to CGM) 2. Consumer Mobility
21
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Role of Project Vijay Team
Roles Role Description
Roll Out Mangers (ROM) Responsible for overall roll-out of Project Vijay in circle Expected
to drive on-the-ground implementation in circle and escalate
unresolved issues at the circle level, to HO
Circle level Nodes Guide SSA teams with best practices, key risks at a
particular stage, etc.
Help SSA teams resolve and escalate issues
SSA Sales Head - Responsible for overall roll-out of Project Vijay in Region/SSA, SSA Sales Head -
cons. Mobility
Responsible for overall roll-out of Project Vijay in Region/SSA,
incl. team formation, process changes and value outcome
Act as Sales head, Mobility at SSA/ Region
Franchisee Manger (FM) Provide support and manage franchisees and sub-
franchisees
Retailer manager
Coordinator (RMC)
Provide support and manage retailer managers
Retailer manager (RM) Act as retailer survey team, to map retailer universe (up-front)
Directly interact with and provide support to retailers on an
ongoing basis
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Proposed process for ordering and
delivery
Franchisee need not come to SSA office.
Franchisee Will deposit the amount in bank and intimate the
Franchisee manager and AO SALES) about money deposited in
BSNL account to supply the telecom product and place an order on
phone or through email. phone or through email.
AO (Sales) will verify whether the amount has been credited
in BSNL account or not.
After verifying, AO (Sales) and Franchisee manager will deliver
the material at the door of the Franchisees.
For internal circulation of BSNL only
Incentives and Awards
Role Reimbursement Type
Travel/meal/mobile
Reimbursement
amount per month
Franchisee manager Travel & MealMobile (if not alreadyprovided)
Rs 1800Rs 500
Retailer Manager Travel & Meal Rs 1300Retailer Manager Coordinator
Travel & MealMobile (if not alreadyProvided)
Rs 1300Rs 500
Retailer Manager for visitsup to 40kms/day avg
Travel & MealMobile (if not alreadyprovided)
Rs 1800Rs 500
Retailer Manager for visits beyond 40kms/day avg
Travel & MealMobile (if not alreadyprovided)
Rs 2600Rs 500
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Franchisee manager and Retailer
manager Roles
Franchisee Manager is expected to manage up-to 2
Franchisees and visit them every alternate day
Franchisee Manager is also expected to visit
each sub-franchise once a montheach sub-franchise once a month
Retailer Manager Coordinators expected to manage up
to 15 Retailer Managers and do 1 inspection visit per
Retailer Manager per month
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Role of Retailer manager
Each retailer manager is typically assigned -200-300
retailers, depending on area geography and is expected
to visit each retailer -2 times a month
Final decision on which category the retailer Manager Final decision on which category the retailer Manager
falls in should be made by the SSA sales head, advised
by the Retailer Manager Coordinator.
For internal circulation of BSNL only
Reimbursement
The base reimbursement will be paid to Franchisee
Manager and Retailer Manager Coordinator upon
meeting a minimum of 10% achievement on
Primary sale( # of SIM and Recharge value)Primary sale( # of SIM and Recharge value)
The base reimbursement will be paid to Retailer
Manager upon meeting a minimum of 30%
achievement on no. of retailers visits done as a
proportion of the total no of retailers visits assigned
For internal circulation of BSNL only
Awards
Award Level Frequency Amount Criteria
Best Franchisee manager
Circle Quarterly Rs.3000 Highest averagescore onKPAs
Best Retailer manager
Circle Quarterly Rs.3000 Highest averagescore onmanager
coordinatorscore onKPAs
Best Retailer manager
SSA Quarterly Rs.750 Highest averagescore onKPAs
Best Sales head Circle Quarterly Rs.5000 Highest averagescore onKPAs
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Conditions for Award
In case of a tie, the award amount may be equally split.
In order to qualify for an award the Franchisee Manager or Retailer
Manager coordinator must meet a minimum of 10% achievement on
Primary sale (# of SIM and Recharge value)
Similarly in, order to qualify for the award, the Retailer Manager must
meet a minimum of 30% achievement on no. of retailers visits done
as a proportion of the total no of retailer visits assigned.
For internal circulation of BSNL only
The final decision on awards at the circle levels should
be made by the PGM/GM (Consumer Mobility) at circle
level at the end of the month, after taking in to the level at the end of the month, after taking in to the
account the average score on KPAs received from SSAs'
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Facilities
SSA Sales Head Office space, Desktop with broadband GSMSIM or WLL phone (if not available)
Franchisee Manager Office space, Desktop with broadband GSMSIM or WLL phone (if not available)
Retailer Manager Coordinator Office space, Desktop with broadband GSMSIM or WLL phone (if not available)
Retailer Manager GSM SIM or WLL phone (if not available
For internal circulation of BSNL only
Conclusion
Project Vijay will take care of market share in consumer
mobility.
Market share is the product of reach and extraction. Project
Vijay will increase the reach and extraction of consumer
mobility in the market through dedicated channel mobility in the market through dedicated channel
management.
As the reach and extraction will be increased, the market
share will go up
All depends on the sincerity and hard work of Project Vijay
team members.
For internal circulation of BSNL only
For internal circulation of BSNLonly