Executive summery

Introduction

Airtel Bangladesh Limited is a GSM-based cellular operator in Bangladesh. Airtel is the sixth
mobile phone carrier to enter the Bangladesh market, and originally launched commercial
operations under the brand name "Warid Telecom" on May 10, 2007. Warid Telecom
International LLC, an Abu Dhabi based consortium, sold a majority 70 stake in the company to
India's Bharti Airtel Limited for US$300 million. Bharti Airtel Limited took management control
of the company and its board, and rebranded the company's services under its own Airtel brand
from December 20, 2010. The Bangladesh Telecommunication regulatory Commission approved
the deal on Jan 4, 2010. Bharti Airtel made a fresh investment of USD 300 million to rapidly
expand the operations of Warid Telecom and have management and board control of the
company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group
continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of
the Company. The new funding is being utilized for expansion of the network, both for coverage,
capacity, and introduction of innovative products and services. As a result of this additional
investment, the overall investment in the company will be in the region of USD 1 billion.
Mission and tangible: By 2015 Airtel will be the most loved brand, enriching the lives of
millions.

"Enriching lives means putting the customer at the heart of everything we do. We will meet their
needs based on our deep understanding of their ambitions, wherever they are. By having this
focus we will enrich our own lives and those of our other key stakeholders. Only then will we be
thought of as exciting, innovation, on their side and a truly world class company."

Brand logo:
 Airtel Bangladesh Distributors:

Direct Distributor:

Direct Distributors of Airtel BD deals with corporates. Corporates has to take

more than 20 sim cards for their personnel. Direct Distributors sales more than 20
sim cards and maintain their services if needed. Direct distributors are managed by
the company itself.

Indirect Distributors:
Indirect Distributors of Airtel BD deals with retailers. These distributors sales sim
cards, recharge cards and loads to the retailers. From the retailers this sim cards
and recharges are sold to the customers.

Airtel BD tries to avoid those distributers who are already holding the same
telecommunication companies products. Like: grammen phones distributors,
Robis Distributores and other communication companies.

Airtel BD has one hundred eleven (111) indirect distributors all over the
Bangladesh. These indirect distributors are managed by the Sales Forces, Territory
managers, Zone of distribution manager (ZDM)

Airtel BD divides the country into five zones for doing the sales operation in a
smooth way. These zones are:
1. Dhaka South Zone
2. Dhaka North Zone
3. Bogra Zone
4. Chittagong zone
5. Khulna Zone

Airtel BDs 11 (eleven) steps of Channel Design Sequence :

As we know Airtel BD is 4th (Forth) largest telecommunication company in terms
of subscribers in Bangladesh.

Airtel BD does not really follow all eleven steps, they has their own 16 steps of
channel design sequences. From which some steps matches with the eleven steps
from the book.

On our visit to the Airtel BD head office they did not give all the steps of channel
design sequences.

Some steps of channel design sequences are given below:

Step1: Identify the new market you want to penetrate or new product you
need to launch:

Airtel BD identified the new market when they came to the telecommunication
industry. Airtel acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of
the UAE-based Abu Dhabi Group.
They have 3G connection corporate connections (postpaid) and 3G connection
customer connection (both postpaid and pre-paid). With lots of packages and
bundle offers for the customers.

Step2: verify the need for a new channel of distribution:

As we know Airtel BD is the fourth largest telecom company in Bangladesh so

they has to serve millions of people who uses Airtel connection. So the company
needs lots of distributers who can serve the retailers and the customers easily.
Therefore Airtel needs for a channel of distributors.
Step3: evaluate all macro market conditions:

End user buying behaviour/ preference

Technology
Competitive action
Legalities

End user buying behaviour/ preference:

Airtel has many packages and offers for the end users by looking into their buying
behaviour. For the corporates they have post-paid connection in a serial number.
For the customers like us airtel have both post-paid and pre-paid 3G connections.
Customers can choose their own packages as they needed.

Technology:
Technology now a days a major problem for all the industries. Due to the changes
of technology customers are avail to use 2G to 3G network with fastest internet
connection. Airtel has good network coverage all over the Bangladesh which is
only possible due to technology.

Competitive action:
Mobile phone operators are continuously offering more value added services to
enrich the lives of the customers. At the same time the competition among the
telecom companies has reached to the peak level. This situation is compelling the
one telecom operator providing the better quality services and keeping the call
charge lower than the other operators.
 Legalities:
Like all other telecom company Airtel also has some legal issues. Airtel had to take
permission to operate their services in Bangladesh from Bangladesh
Telecommunication Regulatory Commission (BTRC). Airtel has to pay some taxes
to the Government to operate the services in the country.

Step 4: Investigate all possible channel of distribution structures:

Trade Licence: Airtel BD ask their Indirect Distributors to submit their Trade
Licence.

VAT Registration: Airtel BD ask for VAT Registration Number.

Income TAX: Airtel BD wants to know the indirect distributors Income Tax paper,
so that the company can do business with them legally.

Police verification: Airtel BD needs to know whether the distributers have any police
record like faulty or having any defects. Police clearance is must.

Step5: research and rank customer/end user:

Airtel BD does research and rank customers or end users. Airtel BD ranks the
customers by the packages and on pick hours and off pick hours users. Adda,
Golpo, Kotha, Airtel-Postpaid and Airtel Prepaid user enjoy various value added
services(VAS), such as SMS, MMS, GPRS, 64K SIM, Dual SIM product,
Corporate packages for product advertising via SMS, and a host of other
 features. However, International Roaming is available only to Airtel postpaid
users.

Step6: Obtain internal corporate recommitment:

Airtel BD maintains good relationship with their distributors by formally.

Formally: On (Contract& Policies)

Airtel BD maintains good relationship with their COD by giving or fulfilling CODs
wants. Like they gives TK 25 profits on every TK 100. IF an Indirect COD buys TK
100000 than the Indirect COD receives TK 25000 profits.

Step7: Approach and sign the selected distributors:

When Airtel BD finds all the sequences are perfect than only they approach and
sign the selected distributors.

Steps 8: Monitor and evaluate the channel structure

Airtel BD monitors and evaluates all channels of distribution by appointing their

companys Sales forces, Territory managers, Zone of distribution manager (ZDM).
They check the CODs by schedule field visits.
Selection Criteria :
Channel selection criteria are what the company and your retailers want the distributor to be look
like. As we know Airtel BD is fourth largest telecom companies in Bangladesh, they have very
strong distribution selection criteria, and before choosing any distributor they strongly maintain
these to avoid future conflict.
They also involve other managers in developing the criteria. Marketing, finance, HR, distribution
managers are work together to make criteria for channel selection.
 Involvement:

Airtel BDs first selection criteria will be those candidates who can be fully involved with
the business, without creating any problems, because they are the fourth largest and
reputed telecom company in Bangladesh. So involvement by the distributors is must.

Business age of Candidate:

For Airtel BD the business age of the candidate is not mandatory, but it depends on
territory manager. If territory manager wants a new distributor than business age of
candidate is depend on the territory manager.

Professional background of key executive:

For Airtel BD the professional background of key executive of distributors should be

higher secondary certificate (HSC) passed.

Financial Strength:

Financial strength is most important factor for Airtel BD. Airtel BD is mostly concern on
financial strength because the distributor has to buy huge amount of flexi loads. Airtel BD
does not give any credits to its distributors. So the distributor has to buy flexi loads in cash.
Therefor the distributor has to be financially strength.

Revenue Performance:

Airtel BD is a huge company. As we know it is the fourth largest telecom company in

Bangladesh. So the company emphasise on revenue performance of the distributors. If the
distributors are financially strength than they can generate huge amount of revenue.
Revenue performance is also an important factor of selection criteria.

Technical Expertise:
For Airtel BD technical Experts needed by the distributors is invalid. Airtel BD has their
own customer cares for any technical fault. Airtel BD has more than *****customer care to
deal with the technical problems faced by the customers. Airtel BD also serves their
customer through online and through call help line 24 hours a day, 365 days a year.

Knowledge of local market condition:

Airtel BD has the knowledge of local market conditions. Areas like:

Business areas within Dhaka City (old Dhakas Chok Bazar, Gulisthan, Motijhil, Nayabazar,
Bangsal, Palan. New Dhakas Dhanmondi, Banana,Uttara, Rampura, Mirpur etc) has to serve
with huge amount of flexi loads.
Residential areas its not mandatory to buy huge amount of flexi loads by the distributors.

Enticements
Airtel always remember that distributors are the source of their profit and also if
they maintain a good relationship with distributors it will be long term benefit for
a company. Airtel keep in mind that meeting with distributor always be short so
be ready for rapid fire negotiation and dont offer everything! Like poker.
Policies divided into antes and pluses
Antes: antes Policies that are necessary to get the company into the COD
business. Airtel gives their distribution some point like profitability, speedy deliver
their product.
Pluses: Policies that strengthen the position of the company and make an
advantageous difference between the company and the main competition.
The enticements they are offering to their distributors are given below
Speedy delivery: Airtel has total 111 distributors arcos the country, they divided
into 5 zone Dhaka South Dhaka North Bogra Chittagong Khulna for delivery their
product. So distributor can easy full fill the demand of a product within a short
time.
CONSISTENT AND RESPONSIVE SALES AND MARKETING SUPPORT:
PAYMENT TERMS:
Comprehensive cooperative advertising:

Full product line/ mix: Airtel has categorized its products in two types

priduct

Customized
Standardized
Product

Business
Pre-Paid Postpaid
Solution

Business Solution is
provided as a
customized service to
different medium
and large
organization and
Professionals. This
customization allows
interesting call and
sms charge among
the member of the
organization, fax and
internet service
within the
organization branch.
The customized
service of one
organization is never
told to other or
disclosed.
 Communication with channel member

A breakdown in the communication channel leads to an inefficient flow of information.

Distributors salespersons are unaware of what the company expects of them. They are uninformed
of what is going on in the company, because company usually talks with the top level of
distributors about the company policies and about sales. Airtel telecommunication tries to
communicate with their top to lower distribution sales people. The distributor manager of Airtel is
able to communicate to their distributor.

Communicate via e-mail and phone: All products are not available in each retail

distribution point of Airtel. Different users have different types of needs. Some is happy using
recharge card while others are comfortable with recharge load to recharge their balance of Airtel
connection. If people go to an outlet and do not find their favorite options they will be unhappy
with the Airtels service. People want the solution without any hassle near to hand. Product
unavailability is a contradiction to that. Motivation is needed for the retailer so that they sell all
the products of Airtel. Airtel has total 111 distributors, it is impossible to communicate face to face
each distributor sales personnel regularly so that it is easy and fastest way to communicate to
distributor via e-mail and phone. When distributor faces any problem or they need any emergency
product they communicate with the company territory manager and distributor manager about their
problem then territory/distributor manager contact with the company directly or the distributor can
contact with the company directly via phone using their hot line number. Before Airtel think to
change any policy and other changes or think to launch a new product they always talk about their
major distributor personnel about the changes. Airtel always try to maintain their communication
with their distributors. Airtel has a supervisor in the company who maintain the contact with
distributor also.

Airtel follows the effective communication mechanisms to build a nurture relationship with
channel members.

Field visit by Airtel personnel: Most of the problems of the retailers are solved by the

helpline service. But there are some problems that cannot be solved over the telephone
conversation or e-mail. Retailers need to appear physically to deal with those problems. Airtel has
its strong field visit personnel who communicate six days in a week with retailers. Field visit
personnel are the main mechanism from the company to directly communicate with the retailers.
Airtel has Zonal offices around the country, which is known as Zonal office, located at key
locations. These centers are directly run by Airtel itself. Airtel telecommunication company
personnel try to field visit regularly because they think it offers them several benefits. It shows
that Airtel is sincerely interested in the success of the company-distributor relationship. A field
visit can make the companys expertise available to the company. Airtel follows some guideline
for a successful field visit program

Airtal personnel carefully plan their each field visit agenda because the field visit personnel
do not want to waste the distributor time so Airtel try to make each visit meaningful to
their distributors.
Airtel prepare their field visit personnel before the visit by explaining the basics of
channel marketing so that later any problem will not occur.
Usually Airtel assign territory and zone manager for visit but sometimes Airtel set up visits
for key personnel by all parts of companys every department.
 Channel conflict

Conflicts are the common part of every company either its small or large. Channel conflict does
not go away if ignored in fact , it surly grows worse. It is manufacturer and distributor
responsibility to resolve conflicts equitably and quickly. The best way to resolve conflict is to
prevent it altogether. Airtel Telecommunication Company faces some channel conflict and they
try to solve that conflict altogether.

Financial conflict: Financial stability of distributor is very important issue. If the distributor
does not have strong financial stability they do not able to buy manufacture product and when
manufacture does not provide committed commission to distributor then conflict occurs between
manufacture and distribution channel. Airtel telecommunication faces these kinds of problem then
they try to solve the problem as soon as possible and they have the company legal team, financial
department who maintain financial conflict.

Stoking level: Airtel Telecommunication Company faces channel conflict in stoking level.
The primary responsibilities of a distributor is to maintain a reasonable and proper inventory of a
manufacturers product to adequately meet local market demand, conflict arises when a Airtel
distributors do not commit to the stoking level what the Airtel desires.
To solve that problem Airtel seek mutual agreement on the inventory to be carried with the
distributors and Airtel always try to avoid unnecessary conflict with the distributors.

Legal conflict: Airtel faces sometimes legal conflict with the distributors, because sometime
distributor want to do illegal things which was not include in policy as Airtel do not permit the
retailer to sell wholesale product to the other retailer, distributor salesperson wants to cover other
salesperson area etc. To solve this kind of conflict Airtel has stand-by legal team who always solve
that problem immediately so that is does not happen in future.