Professional Documents
Culture Documents
Sales and Distribution of Vodafone
Sales and Distribution of Vodafone
2010
PROJECT REPORT
OF
SALES AND DISTRIBUTION MANAGEMENT OF
VODAFONE
RAHUL SHARMA
ss
SUBMITTED TO:Prof.
NAVAL ARORA
KUNAL DABHAI
SUBMITTED IN PARTIAL FUFILLMENT OF POST GRADUATE DEGREE
MASTER IN
BUSINESS ADMINISTRATION
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ACKNOWLEDGMENT
We are very thankful to the head of sales and distribution manager Mr. Ram
Krishnan Ayer of Vodafone Limited for their cooperation, without which
completion of this project would not have been possible.
We are extremely grateful to for sharing with us all the details of the project and
providing us with valuable insights about sales, distribution function. We would
like to thank them for the patience shown by him and being of such a great 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 and for
being the guiding light through the completion of this project.
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EXECUTIVE SUMMARY
This 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 LTD. Company in 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.
The 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.
This 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. The 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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Contents
CHAPTER NO 1
CHAPTER NO 2
CHAPTER NO 3
INTRDUCTION OF PROJECT
06
1.1
1.2
1.3
1.4
07
08
11
11
INDUSTRY OVERVIEW
12
2.1 BACKGROUND
2.2 GROWTH
2.3 INDIAN TELECOM MARKET
12
13
13
2.3.1 SIZE
2.3.2 STRUCTURE
2.3.3 SERVICES
2.3.4 SECTOR OUTLOOK
2.3.5 POTENTIAL
13
14
14
15
15
COMPANY BACKGROUND
17
17
19
19
19
20
20
20
20
21
21
21
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CHAPTER NO 4
CHAPTER NO 5
CHAPTER NO 6
CHAPTER NO 7
CHAPTER NO 8
22
22
22
23
23
24
24
25
26
27
28
28
OTHERS ACTIVITY
29
29
29
29
ANNEXURE
KEY WORLDS
30
32
BIBLOGRAPHY
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CHAPTER 1
INTRODUCTION OF PROJECT
This project aims to study the distribution channels, sales network and service
patterns of the telecom sector that is Vodafone Ltd. The project also tries to bring
out the shortcomings, if any, in the present system and thus recommends
suggestions to improve the same. The project also gives insights into the various
financial terms, norms of the sales and service departments as per the guidelines
of the telecom industry.
The project was designed after detailed discussion with the company officials on
three parameters i.e. distribution network, service network and sales functioning.
Firstly, the project discusses the distribution network of the company and the
functions carried out by the channel members. Vodafone Limited being the
largest services provider in Rajasthan definitely has a wider reach and more
number of dealers. The project also covers the financial terms of the company
with the dealers and that of the dealers with the customers. Secondly, the project
discusses the sales functioning of the company, which includes aspects such as
the hierarchy of the sales department prevalent in the company; the
responsibilities and functions of the sales force, their performance appraisal
structure etc.
Finally the project covers the service network of the company which deals with
the after sale services and their effectiveness provided by the company and
various complaints and queries are handled by them.
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The world is waiting at our doorsteps, waiting for us to open the gates to an
economy bubbling with opportunities. The India growth story has already got the
world to sit up and take a note of the changing economic scenario. The 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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TRAI was formed to act as a regulator to facilitate the growth of the telecom
sector. New National Telecom Policy was adopted in 1999 and cellular services
were also launched in the same year.
The August of 1995 saw the launch of the first mobile service in India, Modi
Telstra in Calcutta. However, the call rate structure; with an outgoing call rate of
Rs.16 a minute, incoming call rate of Rs.8 a minute and cell phones costing
around Rs.15,000 were the prime reasons why the cellular communication did
not get the desired popularity. The New Telecom Policy in 1999 introduced
several consumer-friendly initiatives. Only after the entry of private operators
like Bharti Airtel, Hutch, Reliance, Tata, BPL, Idea, etc., who created a
competitive market which further reduced operational costs, did the upward trend
in the number of mobile subscribers started. The tariffs have come down
substantially with Indian Mobile rates being the lowest in the world. The number
of wireless subscribers rose 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
markets in the world. Already, The Indian market leader, Bharti Airtel has
already crossed the 50 million customer mark to become one of the worlds top
10 operators and has become the fastest private telecom company in the world to
achieve this milestone.
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1.2 TELECOM SERVICE AVAILABLE IN INDIA:The telecom services available in India include-
1.
2.
3.
4.
5.
GSM and CDMA are the two main competing network technologies deployed by
cellular service providers world over. GSM(Global System for Mobile
Communications) Originated in Europe in 1990. The 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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CHAPTER NO 2
INDUSTRY OVERVIEW
2.1Background
2-3 years.
Telecom services contribute 30 percent to Indias total service tax revenue.
The Indian telecom sector gives direct employment to more than 4,00,000
people, compared to about 6,00,000 people in China.
Not just the enabler of software, BPO and IteS companies, it is also the
lifeline of a fast growing E-commerce space.
State-of-the-art telecom infrastructure has led to the rise of cities like
Mysore, Mangalore, Jaipur, Ahmedabad, Kochi on the software services
map.
This has helped spread the benefits of a booming Indian economy to
beyond metros and large cities, and wealth creation is happening in tier-2
cities.
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2.2 Growth
The 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 last two years.
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2.3.2 STRUCTURE
The Indian telecom market has both public and private sector companies
participating:
Public sector has over 60% market share, down from 90% in 2000.
Private companies have added subscribers at a CAGR of 192% since 2000.
Mobile operators have deployed both CDMA ( 16 million users) and GSM
(55 million users) wireless networks
Value added service features constitute 10% of revenue today (2 % in
2001) POLICY.
74% to 100% FDI permitted for various telecom services.
FIPB approval required for foreign investment exceeding 49% in all
telecom.
2.3.3 Services
100% FDI permitted in telecom equipment manufacturing.
India has a telecom policy aims to encourage private and foreign
investment.
An independent regulator the Telecom Regulatory Authority of India
(TRAI).
Revenue-share model for license issued by the Government for telecom
services in India. Unified access licenses are available for providing
telecom services on a pan-India basis.
Planned opening up of National Long Distance (NLD), International Long
Distance (ILD) and other value added services.
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CHAPTER 3
COMPANY BACKFROUND
3.1 COMPANY PROFILE
Vodafone limited
Harit Nagpal, Marketing and New Business Director, Vodafone Essar, said, This
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 previous
brand transitions as it touches over 35 million customers, across 400,000 shops
and thousands of our own and our business associates employees.
The Vodafone mission is to be the communications leader in an increasingly
connected world enriching customers lives, helping individuals, businesses
and communities be more connected by delivering their total communication
needs.
Vodafones logo is a true representation of that belief The 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
Indias mobile customer base. With over 27.7 million customers, it is one of
Indias most reputed telecom companies.
Vodafone, under the Hutch brand, over the years, has been named the Most
Respected Telecom Company, the Best Mobile Service in the country, and the
Most Creative and Most Effective Advertiser of the Year.
Hutchison Essar is now part of Vodafone the worlds 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. The Essar Group is one of Indias largest
corporate houses with interests spanning the manufacturing and service sectors
like Steel, Oil & Gas, Power, Telecom & BPO, Shipping & Logistics and
Engineering & Constructions. The Group has an asset base of over Rs.20 billion
(US$ 4.4.billion) and employs over 4000 people.
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3.3.2 ENTERPRISE
They 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. They will make the most of this strength to expand our
offerings into the broader enterprise communications market locally. This
means serving small and home offices (SOHs) and small-to-medium
enterprise (SMEs) with shared platforms and services, supported by our
local sales forces.
3.3.3 BROADBAND
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They will also try to maximize the mobile data opportunity. There are few
potential large new markets of interest to us and they will be cautious and
selective on future expansion.
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CHAPTER NO 4
VODAFONE SALES NETWORK
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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 Teleshop, just round the corner, for
anything you need. At a Vodafone Teleshops you can buy a new postpaid or
prepaid card, pay your bills, reactivate your connection, and much more.
b)
c)
d)
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CHAPTER NO 5
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.
The front channels are specially kept in mind.
ACTIVITIES:
Order
Handling
Storage
Display
Promotion
Selling
Information and feedback
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I.
II.
The dealers should have a good market reputation, since the dealers help
the customers in forming the first impression a customer has about the
company.
III.
IV.
The dealers should have good market penetration. The companys ability
to gain maximum customers in this era of competition solely depends on
the penetration the dealers have in the market.
V.
The last criterion of dealers selection for Vodafone is the area the dealers
cover. This would include different geographical areas which are covered
by a dealer.
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Vodafone believes in Customer Loyalty and thus Vodafone expects that their
dealers apart from selling paint products should perform the following functions
for better customer relations management:
I.
II.
III.
IV.
V.
VI.
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The dealer should be in regular touch with the customer, keep taking his feedback
and ensure maximum customer satisfaction. The dealer should also try and
convince the customer to try newer products of the company.
The dealer has to thus cater to 3 major areas:
a) Pre sale
b) Selling
c) Post sale service
CHNNEL STRUCTURE
Indirect sales
Misc. sale
Business head
G.M. Sales
Shop Owners
Sales Consultants
Executives
Tele Marketing Executives
Field Executives
DSA/DST
Manager
TLS
Telemarketing Executives
Field Executives
Dealers
Shop Owners
Metro Shops
Vodafone Shops
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Prepaid segmentation
IB
IS
IG
IP
Postpaid segmentation
(co.owned/co. paid)
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CHAPTER NO 6
OTHER ACTIVITIES
The company gives margins at the time of sale of the product. The margin varies
according to the type of the product.
CHAPTER NO 7
ANNEXURE
QUESTIONNAIRE
Advance payment
Payment on Delivery
Credit Payment
9) In case you provide the credit period, what is the time limit?
I.
upto15 days
II.
15-30 days
III.
>30 days
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10)
members?
11)
12)
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CHAPTER 8
KEY WORLDS
SALES
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.
DISTRIBUTION CHANNEL
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".
POST PAID
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.
PREPAID
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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BIBLIOGRAPHY
collegesavings.about.com
wikipedia.org
www.st-patricks.ac.uk
www.sba.gov
www.pinsentmasons.com
wordnetweb.princeton.edu
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