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The Indian Institute of Planning & Management: Project Trimester
The Indian Institute of Planning & Management: Project Trimester
Project Trimester
(Spring Summer 2008-10)
Submitted by:
(GROUP NO.HR263)Gaurav Soni (16)
Kumar Deepak (24)
Sanya Gulati (49)
Saurabh Mishra (51)
DTH industry
EXECUTIVE SUMMARY
Over the years back as we all know cable TV was everywhere, but the
two three years back a new technological revolution happened and
direct to home satellite television came into existence and as days
passes by DTH sector in India has developed with the availability of
more brands, better quality products and better service.
Our research facilitates designing an overall sales and distribution
management strategy for a DTH sector after an in-depth study and
analysis of two established brands in the DTH business sector: Tata
Sky and Airtel DTH (India).
The objective of our research was:
To compare the sales and distribution effectiveness (Quantitative
Research).
To carry out a detailed study of Logistics Network
To design a comprehensive sales system.
The data collected for the research involves the use of both primary
and secondary sources. Primary data is based on the findings from the
company personnel with the use of tools like questionnaires and
discussions. This data is further substantiated by the
use of
DTH industry
After all the research and analysis work done during the course time of
this project we came to the conclusion that Tata Sky sales is more
effective than that of Airtel DTH, but even then there is a great room
for improvement available for them.
DTH industry
ACKNOWLEDGEMENT
We would like to express our gratitude to all the dealers, distributors and the
corporate officials of Airtel DTH and Tata Sky for their kind support and assistance
while furnishing the required informations.
We also express our gratitude and thanks to Prof. Maninder Singh for their
invaluable co-operation, continued support and guidance as well as healthy criticism
throughout resulting works. Their able guidance, encouragement and valuable suggestion
led our way pass easily through most difficult period during this Sales Project.
We would also like to thank the faculty and staff of IIPM because without their
help this project would not have been completed.
DTH industry
TABLE OF CONTENTS
S No.
Topics
Page No.
1.
Methodology .....5
2.
3.
4.
Recommendations ....32
5.
5.
Bibliography .35
6.
Annexure....36
DTH industry
METHODOLOGY
Business Sector:
In order to study the sales and distribution effectiveness of two
organisations we decided to take the DTH Industry.
Objective:
TATA SKY & AIRTEL DTH
DTH industry
The main objective of the study can be divided into following heads:
To compare the Sales and Distribution Effectiveness (Quantitative research).
To carry out a detailed study of Logistics Network: Mode/s, Costs and
Monitoring Systems.
To design a comprehensive sales reporting system for the chosen business
sector.
Data Collection:
Data collection will be done from both Primary as well as Secondary sources.
Research Design:
The research is descriptive type and accordingly the design is formulated so that
precise and relevant information may be gathered.
DTH industry
Structured Questionnaires
Sample design:
The research will be conducted by interviewing various Organisational officials and
the Dealers, Retailers and Franchisees.
Sample Size:
The target will be to interview at least 4 distributor of each company and as many
officials as possible.
DTH industry
COMPANY BACKGROUND
Tata Sky
History:
Tata Sky, an 80:20 joint venture between Tata Sons and the Star group, provides satellite
television services to Indian viewers. The company was incorporated in 2004 and offers a
range of media and entertainment options to customers.
The TATA Group is one of Indias largest and most respected business conglomerates. It
comprises diversified businesses in sectors such as materials, engineering, services,
energy, information systems & communications, consumer products and chemicals.
The Group and its enterprises have been steadfast and distinctive in their adherence to
business ethics and their commitment to corporate social responsibility. This is a legacy
DTH industry
that has earned the Group the trust of many millions of stakeholders in measure few
business houses anywhere in the world can match
Areas of business
Tata Sky's direct-to-home satellite platform delivers more than 100 television channels,
movies and interactive services for games, learning, recipes, news, chat rooms, etc. It has
state-of-the-art digital infrastructure and a retail network that covers more than 4,500
towns in India.
Location
Based in Mumbai, the company has three call centres (Pune, Chandigarh and
Hyderabad).
Airtel DTH
History:
The businesses at Bharti Airtel have always been structured into three individual strategic
business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise
Services. The mobile business provides mobile & fixed wireless services and has recently
launched a Direct-to-Home (DTH) service, Airtel digital TV. The company provides endto-end data and enterprise services to the corporate customers.
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DTH industry
11
DTH industry
DISTRIBUTION SYSTEM
AIRTEL DTH
DISTRIBUTION SYSTEM
A proper distribution system is very important for every company because now a days the
customer wants full service without any pain. Airtel has a deep penetration in the market
due to its cellular services and it has provided them a advantage in the market. I have
also seen in the market the happy faces of customers and retailers of Airtel because of the
easy availability of Airtel DTH retailers.
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DTH industry
2. Satisfied customers
3. Competitive advantage
4. Better market reputation
5. Saves time
Organisation
C & FA
Distributior
TATA SKY & AIRTEL DTH
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DTH industry
Several FOS
FOS
Different retailers
FOS
Different retailers
FOS
Different retailers
DISTRIBUTOR
Channel Structure:
AIRTEL DTH
Manufacturing unit
Warehouses
Distributors
Exclusive Showrooms
Exclusive Retailers
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DTH industry
Dealer
Retailer
Customer
Manufacturing Unit
Warehouses
Distributors
15
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Dealer
Corporate sales
Retailer
Customer
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1.
Financial Capacity: The financial condition of the member must be sound and
Market Reputation: He should have a good reputation in the market and also
consideration is
-Space and in case of retailers it is location.
4.
Experience: He should have been in the field for a minimum period of 5 years.
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DTH industry
Airtel DTH: The average inventory size kept by airtel is of almost 15 set-top box for
each set of set-top box sold.
Tata Sky: The average inventory size in case of tata sky is of 20 set-top box for each
set of set-top box sold.
LOGISTICS:
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DTH industry
Airtel DTH: Order processing time in case of Airtel is 1 day. Although airtel follows
a special logistics for any urgent demand.
TATA Sky DTH: In case of TATA sky the order processing time is 2 days. The
modes of transportation adopted are basically Road and Rail, but in certain urgent cases it
may be sent through Air.
The order processing of Tata Sky is same as that of Airtel.
Performance Appraisal
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DTH industry
Airtel DTH: The performance appraisal of channel members in case of airtel is done
on half-yearly basis. The major criterion for appraisals is the net increase in terms of
sales compared to that of last time .the incentives provided varies from gifts to free
foreign trips.
Tata Sky: In case of Tata sky the evaluation is done on a quarterly basis and the
appraisal is provided annually.
The reason for high satisfaction of the channel members of tata sky can be understood
from this, as they are duly appraised on a regular basis and their problems are duly
solved.
Assigning of targets:
Airtel DTH: In Airtel DTH the targets are assigned to the sales personnels based on
the following criterions:
i. Population of that area.
ii. No. of distributors in that area.
iii. Potential available in that territory.
iv. Back history of individual sales personnel.
Tata Sky: In TATA Sky the targets are assigned to the sales personnels based on the
following criterions:
i. Total area to be covered.
ii. Past performances of the individual.
iii. No. of distributors in that region.
20
DTH industry
While working on this project I have to face some difficulties while conducting the
survey.
People were not interested in giving their actual information about their family income
and airtime, as they were extremely scared about the income tax some people have
difficult to take them in confidence so that they can give correct information.
Some of the limitations are:
Not at home
Refusal to co-operate
Respondent bias
Market Research:
Airtel DTH: They do market research through questionnaires which they ask to fill
from their customer after they install their set-top box.
Tata Sky: They do not conduct any individual market research but they get the desired
information from the same method as they ask customer to fill a questionnaire during the
installation of the product.
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SALES SYSTEM
On the basis of data collected from the retailers, distributors, etc. an approximated
comparison of the two is shown below:
Overall Effectiveness
Airtel DTH
TATA Sky
22
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Quality maintenance:
Quality Maintainence
Airtel DTH
Tata Sky
23
DTH industry
Customer Orientation:
Customer Orientation
Airtel DTH
Tata Sky
24
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Delivery Time:
Delivery Time
48
47
46
45
44
43
0
Tata Sky
Airtel DTH
25
DTH industry
Promotional activities:
Promotional Activities
Tata Sky
Airtel DTH
26
DTH industry
Salesmen services
Airtel DTH
Tata Sky
27
DTH industry
Order flexibility
Airtel DTH
Tata Sky
28
DTH industry
Transporters Behavior:
Transporters Behaviour
Airtel DTH
Tata Sky
After going through the above values it can be concluded that Tata Sky sales and
distribution system is more effective than that of Airtel.
29
DTH industry
Recommendations
1.
innovative manner so that they can provide more competition to their competitors.
2.
As Tata Sky Plus is targeting a niche market, it should make its products
30
DTH industry
Bibliography
For our project we have referred to the following places for information:
www.tatagroup.com/tatasky
www.airteltv.in
www. Indiantelevision.com
Sales and Distribution Management by F.L.Lobo
"Bharti Airtel set to foray into India's DTH market, to launch Airtel Digital TV from Oct.
9". International Business Times (08 October 2008). 8 October 2008.
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DTH industry
Annexure
32
DTH industry
Questionnaire
(Sales and Marketing department)
1)
2)
Two Year
3)
4)
Reason__________________________________________________________________
______
5)
6)
Have you ever faced any problem in your DTH regarding the following?
Maintenance
Servicing
Manufacturing Defect
Others
Others
:
7)
8)
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DTH industry
9)
Rate the services of the after sales person on the basis of following;
CRITERIA
YES NO
Responsiveness
10) How much time taken by the
Availability
company to solve your problem
Helpfulness
completely?
Capability
24 hours
2-3 days
Week
More
11) a) How many times you have lodged a complaint regarding a particular product?
1 time
2-4 times
More
b) If yes, on how many calls have you been attended by an executive?
Readily available
2 3 times
4-7 times
More
12) 11)
Tick the efficiency of the Sales Person to make your buying more
comfortable?
Very efficient
Efficient
Sharp/rude
Less knowledgeable
Less efficient Less knowledgeable
15)
PRODUCT
COMPANY
Fully Satisfied
Partially
Satisfied
Not Satisfied
If Not Satisfied, which brand in future you would like to buy and why?
_______________________________________________________________________
_________
NAME:_________________________________________________________________
________
OCCUPATION:
SERVICE
BUSINESS OTHERS (Specify)
_____________________
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DTH industry
HOUSEHOLD INCOME:
6Lakhs
1.5 3Lakhs
3 4.5Lakhs
4.5
Above 6Lakhs
THANK YOU
Questionnaire
(For Dealers/Retailers/Franchisee)
CHANNEL MEMBER
1) a) What are the Terms and Conditions set by the Company for the Channel
Members?
____________________________________________________________________
_________
____________________________________________________________________
_________
b) What are the average sales per month?
_________________________________________________________________
_________
c) How much is the average sale for refrigerator per month?
_________________________________________________________________
_________________________________________________________________
__________________
2) Are you Happy with the sales targets set by the Company?
_________________________________________________________________
_________________________________________________________________
__________________________
3) Do you get any credit period from the company?
Yes_______ No_______
If Yes, What is the credit period you get?
i) Upto 15 days
4)
_______________________________________________________________________
___
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DTH industry
5) What are the margins that you get from the company?
_________________________________________________________________
_________
6)
7) Where would you rank the services/assistance provided to you by the company/s
Services
Very
poor
Delivery Time
Quality Maintenance
Incentives
Promotional activities
Condition of Product
Commercial Terms
Services of Sales Persons
8) How will you rate the efficiency of your sales persons?
a) Very Good
b) Good
c) Satisfactory
d) Poor
e) Very poor
9) How the Company does help you to assist the Product to the End Consumers?
Yes______
No______
If Yes, Do you face any problems in the Distribution Network of the Company?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________________________________
10) Do you face complains?
Yes______
No______
If Yes, what are the kinds of Complains?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
________________________________________________________
11) How do you manage them in the given span of time?
_______________________________________________________________________
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DTH industry
_______________________________________________________________________
_______________________________________________________________________
__________________________________________
Person Contacted:
____________________________________________________________________
Name of dealer:
_____________________________________________________________________
Address:
_____________________________________________________________________
Tel. No.:
______________________________________________________________________
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DTH industry
COMPANY REPRESENTATIVE
1) What is the Sales Turnover of the Company?
------------------------------------------------------------------------------------------------------------------------------2) a) In how many Zones is India Divided?
______________________________________________
b) On what basis Delhi NCR is divided?
_____________________________________________
c) Number of showrooms
India____________
Delhi NCR___________
3) a) What is the Company Sales Organization Structure for HONDA?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------b) What are the profiles of the Members involved in the Structure?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------c) Who Monitors the entire Sales Process? In what ways does it serves as an
effective tool for the company.
-----------------------------------------------------------------------------------------------------------------------------
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DTH industry
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------4) a) What are the formats opted by HONDA for the Distribution of its product?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------b) On what basis does the Company chooses its Channel Members?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------c) What are the Criteria to Appraise the Channel Members?
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------d) How does the Company responds the different distribution Flaws faced during
the
process?
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------5) What is the product range?
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------6) a) How many warehouses do you have?
India____________
Delhi NCR___________
b) How are Orders Processed among the Channel Members and the Company
Level?
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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DTH industry
40