New Distribution Channel

Group 3:
13P018 : Chitwan Singh
13P020 : Divya Yadav
13P052 : Tejaswi Kalispudi
13P055 : Vidushi Garg
13P056: Vikas Gulleria
Industry
Overview
Secondary
Research
Primary
Research
Analysis
Enterprise
Selling
Telecom
industry
Key Players
Company
Overview
Airtel
Business
Overview
Comparative
of B2B in
Airtel and
Idea
Understanding
Sales Force
Design and
sales
management
practices at
Airtel
Interacted
with Head of
Sales NESA
Region &
ZSM, HO
Airtel
Visit Airtel
Stores
2
Outline
Industry Overview

2
nd
largest in the world based on the
number of telephone users
Expected to grow to 1145 million
subscribers in 2020
Key Players- Airtel, Vodafone, Idea
Cellular, Reliance Infocom,
BSNL/MTNL







3
Company Overview
Worlds 4
th
largest mobile telecommunications
company
Subscriber base : Over 280 million
Product offerings include 2G, 3G and 4G
wireless services, mobile commerce, fixed line
services, DTH etc
Operates in 20 countries across south Asia,
Africa and channel islands
Provides GSM service in all 22 circles
Revenue: INR. 809.22 billion for 2013-14






Overview
Secondary
Research
Primary
Research
Analysis
Enterprise
Selling
SALES FORCE STRUCTURE
4
Deep Rural Market Rural Feeder Market Remote Rural Market
Zonal Business
Manager
Zonal Sales
Manager
Territory Sales
Manager
Distributor
Field Sales
Executive
Retailer


Zonal Business
Manager
Zonal Sales manager
Territory Sales
Manager
Rural stockist
Rural stockist Rural Distributor
Rural Distributor Field Sales executive Field Sales executive
CHALLENGES FACED BY TELECOM
PRODUCTS
5
B2B SERVICES :
Discounts and volumes play a big role in determining
sales
Bargaining power of customers is very high here
Due to no intermediaries , company decides the prices in
the market
MOBILE SERVICES :
SIM activation failure can lead to continuous
complaining by the customer to retailer
Issues of connection problems and delays in
desired product
Low demand of paper recharges in urban areas.
Low micro SIM availability
EASY RECHARGE :
Customer complaints
Resolving a problem is difficult
Sometimes the recharge is not done or a wrong recharge
is done reducing retailers effectiveness
ONLINE RECHARGE :
Discount available with retailers may not be available
online, leading to lower effectiveness of this channel
No awareness in rural areas
Issues with money transfers leading to inefficiencies
Industry
Overview
Secondary
Research
Primary
Research
Analysis
Enterprise
Selling
Sales Force Design
6
Postpaid Mobility
National Market Operation
director/ Hub CEO
CEO
Head of Sales/ Operations
Head (COO)
Zonal Business Manager
Territory Sales
Manager
Prepaid Mobility
National Market Operation
director/ Hub CEO
CEO
Head of Sales/ Operations
Head (COO)
Zonal Sales Manager
Territory Sales Manager
Zonal Business Manager
Telemedia
CEO
Head of Sales / COO
Zonal Sales Manager
Territory Sales Manager
DTH
CEO
Head of Sales/ COO
Zonal Sales Manager
Territory Sales Manager
Own Franchisee
manager
Field Sales
Executive
Promoters
SIM ACTIVATION AND
RECHARGE
7
Roles & Responsibilities
8
Chief Market
Operations
(CMO):
Heading the national team
All the circle Chief Operating Officers (COO) report to CMO
Chief
Operating
Officer (COO):
Responsible for decisions on market operations related to
recruitment, compensation of sales force, market offers, channel
decisions
Zonal Business Managers head each zone are directly reporting to
COO
Sales Targets
Annual Attrition Rate
Zonal
Business
Manager
(ZBM):
ZBM takes care of All the Product Categories for the given
Zone
Zonal Sales Manager reports to ZBM
Revenues from new and existing
accounts
Market Share
Roles & Responsibilities Evaluation Parameters
Roles & Responsibilities
9
Zonal Sales
Manager
(ZSM):
Every Product category is handled by a Zonal Sales Manager (ZSM)
His role is to handle the daily targets and track the performance of
the product sales in the zone.
Territory sales managers (TSM) reports to ZSM
Growth in Market Share
Primary Sales
Customer satisfaction
Territory Sales
Manager (TSM):
Handles a territory, Field Service executive and Smart Phone
Promoters
Targets are decided and distributed to on ground force by TSM
Targets are decided at the month start, but are further divided into
daily expectations
Sales Revenue targets
Increase in customer base
Gross addition
Evaluation Parameters Roles & Responsibilities
Field Service
Executives and
Smart Phone
Promoters:
Hired by distributors
Smartphone Promoters are hired by airtel
Absolute number of sales
RECRUITMENT
1. Selected through Young Leader Program
2. Also, hiring is done by immediate upper
level (ZSM)
Selection criteria :
2 to 3 years of sales experience, preferably
in the similar industry
Outgoing and extrovert personality
Target seeker and pressure handling
capabilities
Impressing and involving people,
networking skills

10
Territory Sales Manager ( TSM)
1. FSE hired by distributors along with TSM
& ZSM
2. SPP hired by Airtel
Selection criteria :
Confidence
Problem Solver
Graduate
Earning potential from 15K to 20K
Aware of technology happenings around
the world



FSE & SPP
Training
11
FSE & SPP
Day long
workshop

Process Training

Fortnightly training
sessions along with
job
Airtel Sales
Academy for Sales
Training &
Knowledge sharing
Certificate training
course with monthly
refreshers
Training Programs made
available in key
development areas

TSM
Skills & Competencies
Business success
Customer satisfaction
People management skills
12
Yearly
Quarterly
Monthly
Weekly
Target Setting
Forecasting
Targets are set based on the Previous year
performance, industry performance &
potential
Certain assumptions are also considered to
set the targets
Quarterly Reality Check is done with the
Executive Committee (Circle CEO + Chair of
every function)
Compensation
Distributors: Commission based on Sales Revenue
Sales Force Team
Fixed ( 80%) + Variable (20%) Salary
Variable Component ranges from 50-200%
Overachieving is also rewarded
13
Sales Target Achieved % of Variable Applicable
90 % 50 %
100 % 100 %
120 % 150 %
150 % 200 %
Motivation Drivers
14
INDIVIDUALS :
-Salary component
-Movie coupon/
Sodexo coupons
-Best performers
certificates
TEAM :
-Incentives on new
products to
improve sales


RETAILERS :
-R offer scheme to
earn above the
regular incentives
on a particular
recharge offer
ZONES :
Team prizes and
Party funds to best
performing zones
Annual International Get together and cultural programs for sales teams
ZSM/ZBM: After 2 years of tenure & Good Performance ZSM/ZBM: Larger Circle
TERRITORY ALLOCATION
Territory division done on the basis of PIN
codes
If required market size is considered to
balance the territory
For distributors, Territory marking is done
Due to the product (recharge), customer
cannibalization happens
Increase in sales force size is dependent on
Competitor location
Conflicts
New technology introduction

15
SALES FORCE SIZING
B2B, B2C conflicts in service hubs
Company owned company operated outlets Vs Modern Retail/General Retail
Distributor Vs Distributor
CONFLICTS
RECOMMENDATION

16
THANK YOU!!
17