Professional Documents
Culture Documents
INTERIM REPORT
Submitted by
521153419
Prof. ___________________________
DECLARATION
ACKNOWLEDGEMENT
Thanks to God and may His peace and blessings be upon all his prophets for
granting me the chance and the ability to successfully complete this study.
I wish to express my deepest gratitude to my corporate guide Mr. Samarpan
Debroy, Asst. Manager, Airtel for his valuable advice and guidance of this work.
Special thanks and gratitude to Ms. Kanchan Banerjee, Sr. Executive, CSD,
Airtel for her genuine support, valuable advice and sincere comments which
helped me a lot to finish this study.
I am also indebted to Mr. Suchit Biswas Roy, Asst. manager, Airtel for sharing
vital information critical to the accomplishment of the project objectives and
providing direction in pursuance of the project. The constant support rendered not
only by these two crucial entities, but by the entire Airtel family is praiseworthy.
Lastly I would like to thank my faculty guide Prof. _______________________
for his intellectual stimulation and moral support through my project.
I hope this project report reflecting my learnings in the past eight weeks is as
beneficial to the organization as it has been to me.
EXECUTIVE SUMMARY:
Mobile telecommunications, supported by a network covering about 97% of the countrys
population and 82% of the land area, has become one of the most vibrant services sub-sectors in
the economy. The number of subscribers almost doubled in 1 year up from 22 million in 2007 to
about 36 million in March 2007, and is forecast to increase to 50 million by 2009. Keeping
competition on the forehead Airtel one of the leading telecom service providers in India had put
its journey of glory towards Orissa in December, 2004. And now this is the top brand among
other telecom service providers of Orissa.
Due to the huge market potential even public sector undertakings like BSNL and MTNL have
also begun offering cellular services apart from basic wireline services.
With the world-wide expansion of companies and changing technologies, Indian Organizations
have realized the importance of customer satisfaction, both internal and external. While
companies focus thousands of dollars on external customer service in hopes of wooing and
retaining customers, little attention is being paid to the effect poor internal customer service has
on overall customer satisfaction. It all starts within your organization! Sooner or later the ripple
effect reaches your external customers. To really walk your service talk, the commitment to
internal customer service must match company's external focus on customer care.
Satisfying both internal and external customers of the company along with increasing revenue is
the main motive of the Service industry. At the advent of cut-throat competition in the telecom
sector in Orissa, with the entry of Vodafone and with the presence of other six players, it is a
direct business need to reduce service OPEX and improve channel satisfaction. Hence this may
prove as a strategic business project in order to reduce Service OPEX of CSD and to enhance
channel partners satisfaction.
Each of the chapter has been scheduled in a manner so as to enable the reader to appreciate the
contents easily. The report is supported by facts and figures and data wherever necessary with a
view to assist the reader in developing clear understanding of the topic.
This report will be extremely useful for those it is meant. Constructive and healthy suggestions
for improvements of the report will be greatly appreciated.
ACTIVITIES
Introduced to the corporate guide and other employees related to the training.
I was asked to get the required study materials for the training
2nd
The corporate guide took sessions to make us familiar with the Training Process at
Airtel
3rd
A Training program for the DHD executives was organized at the DHD call
center.
I was a part of the same training program which went on for 4 days.
The management problem related to the project was addressed to let us know the
importance of the project.
I was helped by the corporate guide in the analyzing the training result.
The feedback of all the trainees was evaluated to know the effectiveness of the
training.
The findings were presented to the CSD head, Airtel to discuss the scope of
improvement of the training
Some action points were discussed with brainstorming with the HR.
The Report along with all the findings of the project was submitted to the
organization
1st
4th
5th
6th
7th
8th
Bharti Airtel
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has
a diverse business portfolio and has created global brands in the telecommunication sector.
Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with WalMart for the cash & carry business. It has successfully launched an international venture with EL
Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and
has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Airtel comes from Bharti Airtel Limited, Indias largest integrated and the first private telecom
services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception
has been at the forefront of technology and has steered the course of the telecom sector in the
country with its world class products and services. The businesses at Bharti Airtel have been
structured into three individual strategic business units (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless
services using GSM technology across 23 telecom circles while the Airtel Tele-media Services
business offers broadband & telephone services in 94 cities. The Enterprise services provide endto-end telecom solutions to corporate customers and national & international long distance
services to carriers. All these services are provided under the Airtel brand.
Company Background
Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of
telecommunications services. The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBUs)
Mobile services,
Tele-media services (ATS) &
Enterprise services.
The mobile services group provides GSM mobile services across India in 23 telecom circles,
while the B&T business group provides broadband & telephone services in 94 cities. The
Enterprise services group has two sub-units - carriers (long distance services) and services to
corporate. All these services are provided under the Airtel brand.
Vision:
By 2010 Airtel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more business.
We at Airtel always think in fresh and innovative ways about the needs of our customers and how
we want them to feel. We deliver what we promise and go out of our way to delight the customer
with a little bit more
Mission
We will meet the mobile communication needs of our customers through:
Cost efficiency
Company Profile:
Bharti Airtel Limited, a group company of Bharti Enterprises, is Indias leading integrated
telecom services provider with an aggregate of 64.26 million customers as of end of March 2008,
consisting of 61.98 million mobile customers.
Bharti Airtel has been rated among the best performing companies in the world in the Business
Week IT 100 list 2007. Bharti Airtel is structured into three strategic business units - Mobile
services, Tele-media services and Enterprise services. The mobile business provides mobile &
fixed wireless services using GSM technology across 23 telecom circles. The Tele-media
business provides broadband and telephone services in 94 cities and is foraying into the IPTV
and DTH segments. The Enterprise services business provides end-to-end telecom solutions to
corporate customers and national and international long distance services to carriers. All these
services are provided under the Airtel brand. Airtels high-speed optic fiber network currently
spans over 73,787 KMs. covering all the major cities in the country. The company has two
international landing stations in Chennai that connects two submarine cable systems - i2i to
Singapore and SEA-ME-WE-4 to Europe.
Bharti Airtel is one of India's leading private sector providers of telecommunications services
based on an aggregate of 64,268,047 customers as of March 31, 2008, consisting of 61,984,721
GSM mobile and 2,283,326 Tele-media customers. The company is the largest GSM mobile
service provider in the country, based on the number of customers; it has an all India footprint,
with mobile operations in all the 23-telecom circles of India. The company also provides telemedia services (erstwhile broadband & telephone) in 94 cities.
The company complements its mobile and tele-media services with national and international
long distance services. For international connectivity to the east, the company has a submarine
cable landing station at Chennai, which connects the submarine cable - Network i-2-i, connecting
Chennai and Singapore. For international connectivity to the west, it is a member of the South
East Asia-Middle East-Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other
global telecom operators, and has commissioned the fourth generation cable system. SEA-MEWE-4 supports telephone, Internet, multimedia and various other broadband and data. The
company provides reliable end-to-end data and enterprise solutions to the top corporate
customers by leveraging its nationwide fiber optic backbone, last mile connectivity in mobile and
tele-media services, VSATs, ISP and international bandwidth access through the gateways and
landing stations.
Partners:
Network Equipment
Mobile Services
Nokia, Ericsson
Tele-media Services
Information Technology
IBM
IBM Daksh,
Hinduja TMT, Teletech &
Mphasis
Singtel
Board of Directors:
OSullivan
Kurt Hellstrom
N. Kumar
Ajay Lal
Francis Heng
Arun Bharat Ram
Director
Director
Director
Director
Director
Director
Exchange Listings
The Brand
Airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven to seize the
day with an ambition to become the most globally admired telecom service. Airtel, after just ten
years, has risen to the pinnacle of achievement.
As India's leading telecommunications company Airtel brand has played the role as a major
catalyst in India's reforms, contributing to its economic resurgence.
Today we touch peoples lives with our Mobile services, Telemedia services, to connecting India's
leading 1000+ corporate. We also connect Indians living in USA with our call home service.
Brand Attributes
Fresh
In-touch
On my side
Can-do
Factsheet
Name
Business
Description
Established
Proportionate
Revenue
Proportionate
EBITDA
Shares in Issue
Listings
Market
Capitalization
Customer Base
Operational
Network
Provides GSM mobile services in all the 23 telecom circles in India, and
was the first private operator to have an all India presence.
Provides telemedia services (fixed line) in 94 cities in India.
Registered Office
Organization Structure:
As an outcome of a restructuring exercise conducted within the company; a new integrated organizational
structure has emerged; with realigned roles, responsibilities and reporting relationships of Bhartis key
team players. With effect from March 01, 2006, this unified management structure of 'One Airtel' will
enable continued improvement in the delivery of the Groups strategic vision.
the
BHARTI AIRTEL LIMITED
Category of Shareholder
532454
Number
Shareholders
Quarter Ended :
of
Total number of
shares
Number of shares
held
in
dematerialized
form
31.03.2008
Total shareholding as a percentage of
totanumber of shares
As a percentage of
(A+B)1
As a percentage of
(A+B+C)
Indian
Individuals/
Hindu Undivided
Family
(b)
Central
Government/
State
Government(s)
(c)
Bodies Corporate
(d)
Financial Institutions/ Banks
(e)
Any Others(Specify)
Sub Total(A)(1)
2. Foreign
(a)
Individuals
(Non-Residents
Individuals/Foreign Individuals)
(b)
Bodies Corporate
(c)
Institutions
(d)
Any Others(Specify)
Sub Total(A)(2)
Total Shareholding of Promoter and Promoter
Group (A)= (A)(1)+(A)(2)
(B)
1
(a)
(b)
(c)
Public shareholding
Institutions
Mutual Funds/ UTI
Financial Institutions /Banks
Central
Government/
State
Government(s)
(d)
Venture Capital Funds
(e)
Insurance Companies
(f)
Foreign Institutional Investors
(g)
Foreign Venture Capital Investors
(h)
Any Other
Sub-Total (B)(1)
(B 2) Non-institutions
(a)
Bodies Corporate
(b)
Individuals
Individuals
-i.
Individual
shareholders holding nominal share
I
capital up to Rs 1 lakh
II
ii. Individual shareholders holding
nominal share capital in excess of
Rs. 1 lakh.
(c)
c-i
c-ii
Foreign Companies
c-iii
Non-resident Indians
c-iv
c-v
Trusts
c-vi
NIL
NIL
NIL
NIL
NIL
1
NIL
NIL
NIL
859986028
NIL
NIL
NIL
859986028
NIL
NIL
NIL
45.31
NIL
NIL
NIL
45.31
NIL
NIL
859986028
859986028
45.31
45.31
NIL
2
NIL
NIL
NIL
390363150
NIL
NIL
NIL
94703500
NIL
NIL
NIL
20.57
NIL
NIL
NIL
20.57
NIL
NIL
390363150
94703500
20.57
20.57
1250349178
954689528
65.88
65.88
217
33
40612849
1222512
40612849
1222512
2.14
0.06
2.14
0.06
NIL
NIL
12
831
NIL
NIL
NIL
44892253
474252686
NIL
NIL
NIL
44892253
474252686
NIL
NIL
NIL
2.37
24.99
NIL
NIL
NIL
2.37
24.99
NIL
1093
560980300
29.56
29.56
560980300
2114
38391925
35669790
2.02
2.02
161273
14087966
14081133
0.74
0.74
175
9147527
9147527
0.48
0.48
40
40
0.00
0.00
16251502
16251502
0.86
0.86
2058
998802
998802
0.05
0.05
5178500
5178500
0.27
0.27
16
2325736
2325736
0.12
0.12
Clearing Members
Sub-Total (B)(2)
Total Public Shareholding (B)=
(B)(1)+(B)(2)
TOTAL (A)+(B)
Shares held by Custodians and
against which DepositorReceipts
(C)
have been issued
GRAND TOTAL (A)+(B)+(C)
(B)
NIL
254
195970
195970
0.01
0.01
165895
86577968
83849000
4.56
4.56
166988
166991
647558268
1897907446
644829300
1599518828
34.12
100.00
34.12
100.00
0
1897907446
0
1599518828
0.00
100.00
0.00
100.00
0
166991
(I)(b) Statement showing Shareholding of persons belonging to the category Promoter and
Promoter Group
Sr. No.
Number of shares
859986028
45.31
Pastel Limited
295659650
15.58
94703500
4.99
1250349178
65.88
TOTAL
(I)(c)Statement showing Shareholding of persons belonging to the category Public and holding
more than 1% of the total number of shares
Sr. No.
Number of shares
44753341
2.36
40819329
2.15
Merrill Lynch
Espana S.A
26780063
1.41
23183398
1.22
21832491
1.15
157368622
8.29
5
TOTAL
Capital
Markets
(I)(d)
Sr. No.
N.A.
TOTAL
(II)(a)
Sr. No.
N.A.
TOTAL
Number of locked-in
NIL
NIL
NIL
NIL
of
shares
outstanding
NIL
NIL
NIL
NIL
NIL
NIL
Shares
underlying
outstanding DRs as a
percentage of total number
of shares {i.e., Grand Total
(A)+(B)+(C) indicated in
Statement at para (I)(a)
above}
(II)(b)
Name of the DR Holder
Type of outstanding DR
(ADRs, GDRs, SDRs, etc.)
Number
underlying
DRs
of
shares
outstanding
NIL
NIL
NIL
NIL
NIL
NIL
Shares
underlying
outstanding DRs as a
percentage of total number
of shares {i.e., Grand Total
(A)+(B)+(C) indicated in
Statement at para (I)(a)
above}
We encourage our employees to take decisions and design business processes, keeping in mind
the following:
Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it is
important that each employee should understand the importance of environmental, social and
economical aspects while taking business decisions. At Bharti, each employee is sensitized
towards CSR issues and thus operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally sensitive decisions on the ground.
Employees
We believe that one of the most important drivers of growth and success for any organization is
its people. At Bharti Airtel, our Mantra for employee delight focuses on 5 Ps People, Pride,
Passion, Processes and Performance.
Bharti Airtel has been recognized among the Best Employers in the Country for two successive
years being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable
position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration &
acknowledgement of the robust, progressive, people as well as business aligned Human Resource
practices, which the organization has developed and implemented remarkably in a very short
span of time.
Bharti Airtel follows an open door policy to approach the management, which helps resolve
issues with mutual agreements. We encourage people to stand up against any unfair treatment for
which we have the Office of the Ombudsman, where employees can raise any issues regarding
business and workplace conduct. Bharti ensures transparency through the various
communication policies, strategies and plans. . Regular Employee Communication Forums
provides a platform for the employees to raise issues that require resolution.
Our leaders strongly believe in facilitating and initiating activities that help employees manage
their health and well-being. Our focus always remains to redefine leadership; we develop leaders
who enable performance and inspire their people to unleash their potential. Our people
orientation reflects in our vision of being targeted by top talent, and a key aspect of our
business focus building a best-in-class leadership team that nurtures talent at every level.
Employee friendly HR policies have been put in place, which amply reflect the organizations
concern for its people. Some typical examples of these policies and practices include a family-
day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off,
festival celebration with family, no official meetings on weekends, five day weeks, concierge
services, call center engagement programs etc. These care policies and practices are applied
across the organizational levels without any discrimination.
Even a sweeper in the corporate office must understand that, if he does not keep
the office clean, the visiting shareholders could question the companys ability to
manage a business if they cannot manage their premises well
Mr. Akhil Gupta
(g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills are carried out in Bharti
Airtel offices as a practice. All Airtel offices are provided with First Aid boxes and have
identified people as First Aid specialists.
Community Initiatives
Corporate Social Responsibility is embedded in, and built upon, the stated values of Bharti
the institution. These values guide all our activities and each employee is encouraged to take
decisions and design business-linked processes that are sensitive to communities and
environment.
We have an obligation to fulfill to society and the communities in which we operate, and help
improve the quality of life for everyone, today and in the future.
Based on the basic guidelines and direction provided in the Code of Conduct, Bharti has
undertaken many community programs.
(a) CSR Initiatives @ Bharti Airtel
Bharti Airtel has a nation-wide presence that has grown at an exponential rate in the recent years.
Each local office undertakes special programs for the local community, thereby reaching out to
people. Many projects like material collection drive and blood donation camps are organized for
the welfare of the underprivileged community. Bharti constantly searches for new, innovative
ways of reducing the consumption of resources, with the aim of leaving a better and greener
earth for future generations.
Response to Disaster
Bharti Airtels response to Tsunami Disaster: Bharti Airtel undertook the following initiatives for
immediate relief and rehabilitation to Tsunami victims:
Built a mobile network in Andaman & Nicobar islands in less than 3 months to aid rapid
rehabilitation of the island
Donated Rs. 1 Crore to the Prime Ministers Relief Fund, in addition to contributions
from employees
Raised resources for Tsunami victims by initiatives such as a Benefit Cricket Match
To help underprivileged children and youth of our country realize their potential.
Bharti Foundations mission is to create and support programs that bring about sustainable
changes through education, use of technology and information and best practice sharing.
Bharti Foundation has established itself the goals of improving accessibility and quality of
education at the school level for underprivileged children, and to provide education and training
opportunities to youth.
Visit www.bhartifoundation.org to know more about Bharti Foundation
Services
Experience total cost control, no rentals and easy billing with our
postpaid and prepaid services. Explore the world with our roaming
services and get absolutely cool offers with Airtel Live!
Airtel welcomes you to the world of telephony services for your home.
Experience a world class service and cutting edge technology with Airtel
landline and our feature rich Wireless fixed line. Whats more, calling is
made more fun & convenient with services and entertainment on Airtel
Our calling card services connect you to the world from India and
allow a better way to call back India.
With Airtels Wireless Internet, you have the freedom to access the
Internet anytime, anywhere across India. It enables Internet, Email,
and Office applications with real-time secure VPN access to
corporate applications whilst on the move.
Services
Our Voice services give you the right tools, to suit the needs of small,
medium and large enterprises and to stay ahead.
We offer you a range of services that help to keep your business running
24x7.
We provide you connectivity, where ever you take your business. Our
Satellite Services bring you the benefits of access in remote locations.
Advertisement
Press release
3. Products:
There are basically 4 products which Airtel deals. They are
o SUK- Start up Kit
o VV Validity Voucher
These are basically the recharge vouchers having a limited validity, i.e. One
month or lifetime validity.
o Top Ups:
These are the Top-Up vouchers which dont have any validity, but adds amount to
your account.
o Super VV or Power Voucher:
These are the vouchers which enables a customer to reduce their call value
charges.
4. Usage & Retention:
This department deals with the Top-Ups and power pack vouchers.
5. Value Added Services (VAS):
Airtel has come up with value added services that offer total freedom to avail facilities of
getting Ringtones, Hello Tunes, Jokes and Astrology, Cricket scores etc. just by calling
portal number. VAS contributes to about 20% of total revenue.
6. Revenue Assurance:
This division assures revenue generated through the various recharge vouchers and SIM
cards.
7. Acquisition:
This deals with the product SUKs. These people create plans so that more number of
activations can be done.
8. Marketing Research:
This division handles the visibility part. It checks which type of offers and schemes and
presently provided by the competitors and which are required by Airtel now.
Marketing Department
Finance
Human Resource:
Technical
Information Technology
Business Excellence
Distribution - introduction
Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three
are Product, Price and Promotion.
Promotion
Contact
Matching
Negotiation
Physical distribution
Financing
Acquiring and using funds to cover the costs of the distribution channel
Risk taking
All of the above functions need to be undertaken in any market. The question is - who performs
them and how many levels there need to be in the distribution channel in order to make it cost
effective.
quantities, the use of wholesalers makes economic sense. This arrangement tends to work best
where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful
retailers who have an incentive to cut out the wholesaler. A good example of this channel
arrangement in the UK is the distribution of drugs.
Ordering
Handling and shipping
Storage
Display
Promotion
Selling
Information feedback
Agents and Brokers Organizations that mainly work to bring suppliers and buyers
together in exchange for a fee.
Distribution Service Firms Offer services aiding in the movement of products such as
assistance with transportation, storage, and order processing.
Others This category includes firms that provide additional services to aid in the
distribution process such as insurance companies and firms offering transportation
routing assistance
When choosing a distribution strategy a marketer must determine what value a channel member
adds to the firms products. Remember, as we discussed in the Product Decisions Tutorial,
customers assess a products value by looking at many factors including those that surround the
product (i.e., augmented product). Several surrounding features can be directly influenced by
channel members, such as customer service, delivery, and availability. Consequently, for the
marketer selecting a channel partner involves a value analysis in the same way customers make
purchase decisions. That is, the marketer must assess the benefits received from utilizing a
channel partner versus the cost incurred for using the services.
that work for them. Suppliers though like to ship products they produce in large
quantities since this is more cost effective than shipping smaller amounts. For instance,
consider what it costs to drive a truck a long distance. In terms of operational expenses
for the truck (e.g., fuel, truck drivers cost) lets assume it costs (US) $1,000 to go from
point A to point B. Yet in most cases, with the exception of a little decrease in fuel
efficiency, it does not cost that much more to drive the truck whether it is filled with 1000
boxes containing the product or whether it only has 100 boxes. But when transportation
costs are considered on a per product basis ($1 per box vs. $10 per box) the cost is much
less for a full truck. The ability of intermediaries to purchase large quantities but to resell
them in smaller quantities (referred to as bulk breaking) not only makes these products
available to those wanting smaller quantities but the reseller is able to pass along to their
customers a significant portion of the cost savings gained by purchasing in large volume.
Create Sales Resellers are at the front line when it comes to creating demand for the
marketers product. In some cases resellers perform an active selling role using
persuasive techniques to encourage customers to purchase a marketers product. In other
cases they encourage sales of the product through their own advertising efforts and using
other promotional means such as special product displays.
Offer Financial Support Resellers often provide programs that enable customers to
more easily purchase products by offering financial programs that ease payment
requirements. These programs include allowing customers to: purchase on credit;
purchase using a payment plan; delay the start of payments; and allowing trade-in or
exchange options.
Provide Information Companies utilizing resellers for selling their products depend on
distributors to provide information that can help improve the product. High-level
intermediaries may offer their suppliers real-time access to sales data including
information showing how products are selling by such characteristics as geographic
location, type of customer, and product location (e.g., where located within a store, where
found on a website). If high-level information is not available, marketers can often count
on resellers to provide feedback as to how customers are responding to products. This
feedback can occur either through surveys or interviews with resellers employees or by
requesting the reseller allow the marketer to survey customers.
Loss of Revenue Resellers are not likely to offer services to a marketer unless they see
financial gain in doing so. They obtain payment for their services as either direct
payment (e.g., marketer pays for shipping costs) or, in the case of resellers, by charging
their customers more than what they paid the marketer for acquiring the product (termed
markup). For the latter, marketers have a good idea of what the final customer will pay
for their product which means the marketer must charge less when selling the product to
resellers. In these situations marketers are not reaping the full sale price by using
resellers, which they may be able to do if they sold directly to the customer.
Loss of Communication Control Marketers not only give up revenue when using
resellers, they may also give up control of the message being conveyed to customers. If
the reseller engages in communication activities, such as personal selling in order to get
customers to purchase the product, the marketer is no longer controlling what is being
said about the product. This can lead to miscommunication problems with customers,
especially if the reseller embellishes the benefits the product provides to the customer.
While marketers can influence what is being said by training resellers salespeople, they
lack ultimate control of the message.
Loss of Product Importance Once a product is out of the marketers hands the
importance of that product is left up to channel members. If there are pressing issues in
the channel, such as transportation problems, or if a competitor is using promotional
incentives in an effort to push their product through resellers, the marketers product may
not get the attention the marketer feels it should receive.
Channel Arrangements
The distribution channel consists of many parties each seeking to meet their own business
objectives. Clearly for the channel to work well, relationships between channel members must
be strong with each member understanding and trusting others on whom they depend for product
distribution to flow smoothly. For instance, a small sporting goods retailer that purchases
products from a wholesaler trusts the wholesaler to deliver required items on-time in order to
meet customer demand, while the wholesaler counts on the retailer to place regular orders and to
make on-time payments.
Relationships in a channel are in large part a function of the arrangement that occurs between the
members. These arrangements can be divided in two main categories: independent and
dependent.
Corporate Under this arrangement a supplier operates its own distribution system
in a manor that produces an integrated channel. This occurs most frequently in the
retail industry where a supplier operates a chain of retail stores. Starbucks is a
company that does this. They import and process coffee and then sell it under their
own brand name in their own stores. It should be mentioned that Starbucks also
distributes their products in other ways, such as through grocery stores and mail
order. As we will see in more detail later, Starbucks is using a multi-channel structure
to market their products.
Contractual Under this arrangement a legal document obligates members to agree
on how a product is distributed. Often times the agreement specifically spells out
which activities each member is permitted to perform or not perform. This type of
arrangement can occur in several formats including:
Wholesaler-sponsored where a wholesaler brings together and manages
many independent retailers including having the retailers use the same name
Retailer-sponsored this format also brings together retailers but the retailers
are responsible for managing the relationship
Franchised where a central organization controls nearly all activities of
other members
Administrative In certain channel arrangements a single member may dominate
the decisions that occur within the channel. These situations occur when one channel
member has achieved a significant power position. This most likely occurs if a
manufacturer has significant power due to brands in strong demand by target markets
(e.g., Procter &Gamble) or if a retailer has significant power due to size and market
coverage (e.g., Wal-Mart). In most cases the arrangement is understood to occur and
is not bound by legal or financial arrangements. (More discussion on channel power
can be found below.)
related to marketing decisions while others are affected by relationships that exist with members
of the channel.
Next we examine the key factors to consider when designing a distribution strategy. We group
these into two main categories: marketing decision issues and channel relationship issues. In
turn, each of these categories contains several topics of concern to marketers.
most concern to consumer products companies, though there are many industrial products that
also must decide how much coverage to give their products.
There are three main levels of distribution coverage - mass coverage, selective and
exclusive.
Mass Coverage - The mass coverage (also known as intensive distribution) strategy
attempts to distribute products widely in nearly all locations in which that type of product
is sold. This level of distribution is only feasible for relatively low priced products that
appeal to very large target markets (e.g., see consumer convenience products). A product
such as Coca-Cola is a classic example since it is available in a wide variety of locations
including grocery stores, convenience stores, vending machines, hotels and many, many
more. With such a large number of locations selling the product the cost of distribution is
extremely high and must be offset with very high sales volume.
Selective Coverage - Under selective coverage the marketer deliberately seeks to limit
the locations in which this type of product is sold. To the non-marketer it may seem
strange for a marketer to not want to distribute their product in every possible location.
However, the logic of this strategy is tied to the size and nature of the products target
market. Products with selective coverage appeal to smaller, more focused target markets
(e.g., see consumer shopping products) compared to the size of target markets for mass
marketed products. Consequently, because the market size is smaller, the number of
locations needed to support the distribution of the product is fewer.
Exclusive Coverage - Some high-end products target very narrow markets that have a
relatively small number of customers. These customers are often characterized as
discriminating in their taste for products and seek to satisfy some of their needs with
high-quality, though expensive products. Additionally, many buyers of high-end products
require a high level of customer service from the channel member from whom they
purchase. These characteristics of the target market may lead the marketer to sell their
products through a very select or exclusive group of resellers. For all intents and
purposes all products available for purchase over the Internet are distributed in the same
way - mass coverage. So a better way to look at the three levels is to consider these as
options for distribution coverage of products that are physically purchased by a customer
(i.e., walk-in to purchase).
Channel Power
A channel can be made up of many parties each adding value to the product purchased by
customers. However, some parties within the channel may carry greater weight than others. In
marketing terms this is called channel power, which refers to the influence one party within a
channel has over other channel members. When power is exerted by a channel member they are
often in the position to make demands of others. For instance, they may demand better financial
terms (e.g., will only buy if prices are lowered, will only sell if price is higher) or demand other
members perform certain tasks (e.g., do more marketing to customers, perform more product
services). Channel power can be seen in several ways:
Channel Conflict
In an effort to increase product sales, marketers are often attracted by the notion that sales can
grow if the marketer expands distribution by adding additional resellers. Such decisions must be
handled carefully, however, so that existing dealers do not feel threatened by the new distributors
who they may feel are encroaching on their customers and siphoning potential business. For
marketers, channel strategy designed to expand product distribution may in fact do the opposite
if existing members feel there is a conflict in the decisions made by the marketer. If existing
members sense a conflict and feel the marketer is not sensitive to their needs they may choose to
stop handling the marketers products.
Need for Long-Term Commitments
Channel decisions have long-term consequences for marketers since efforts to establish new
relationships can take an extensive period of time while ending existing relationships can prove
difficult. For instance, Company A, a marketer of kitchen cabinets that wants to change
distribution strategy, may decide to stop selling their product line through industrial supply
companies that distribute cabinets to building contractors and instead sell through large retail
home centers. If in the future Company A decides to once again enter the industrial supply
market they may run into resistance since supply companies may have replaced Company As
product line with other products and, given what happened to the previous relationship, may be
reluctant to deal with Company A. As another example of problems with long-term
commitments, building contractors may be comfortable purchasing kitchen cabinets from
industrial suppliers. If Company A decides to change their reseller network they may find it
difficult to regain the building contractor customer base, who may continue to purchase from the
industrial suppliers but are now purchasing products from Company As competitors. In this
case, Company A may have to give serious thought to whether breaking their long-term
relationship with industrial suppliers is in the companys best interest.
Direct Marketing Systems With this system the customer places the order either
through information gained from non-personal contact with the marketer, such as by
visiting the marketers website or ordering from the marketers catalog, or through
personal communication with a customer representative who is not a salesperson, such as
through toll-free telephone ordering.
Direct Retail Systems This type of system exists when a product marketer also
operates their own retail outlets. As previously discussed, Starbucks would fall into this
category.
Personal Selling Systems The key to this direct distribution system is that a person
whose main responsibility involves creating and managing sales (e.g., salesperson) is
involved in the distribution process, generally by persuading the buyer to place an order.
While the order itself may not be handled by the salesperson (e.g., buyer physically
places the order online or by phone) the salesperson plays a role in generating the sales.
Assisted Marketing Systems Under the assisted marketing system, the marketer relies
on others to help communicate the marketers products but handles distribution directly
to the customer. The classic example of assisted marketing systems is eBay which helps
bring buyers and sellers together for a fee. Other agents and brokers would also fall into
this category.
Single-Party Selling System - Under this system the marketer engages another party
who then sells and distributes directly to the final customer. This is most likely to occur
when the product is sold through large store-based retail chains or through online
retailers, in which case it is often referred to as a trade selling system.
Multiple-Party Selling System This indirect distribution system has the product
passing through two or more distributors before reaching the final customer. The most
likely scenario is when a wholesaler purchases from the manufacturer and sells the
product to retailers.
stores, a direct marketing system by selling via direct mail, and a single-party selling system by
selling through grocery stores (they also use other distribution systems).
The multi-channel approach expands distribution and allows the marketer to reach a wider
market, however, as we discussed under Channel Relationships, the marketer must be careful
with this approach due to the potential for channel conflict.
Delivery Resellers want the product delivered on-time and in good condition in order to
meet customer demand and avoid inventory out-of-stocks.
Profit Margin Resellers are in business to make money so a key factor in their decision
to handle a product is how much money they will make on each product sold. They
expect that the difference (i.e., margin) between their cost for acquiring the product from
a supplier and the price they charge to sell the product to their customers will be
sufficient to meet their profit objectives.
Other Incentives Besides profit margin, resellers may want other incentives to entice
them especially if they are required to give extra effort selling the product. These
incentives may be in the form of additional free products or even bonuses (e.g., bonus,
free trips) for achieving sales goals.
Packaging Resellers want to handle products as easily as possible and want their
suppliers to ship and sell products in packages that fit within their system. For example,
products may need to be a certain size or design in order to fit on a stores shelf, or the
shipping package must fit within the resellers warehouse or receiving dock space. Also,
many resellers are now requiring marketers to consider adding identification tags to
products (e.g., RFID tags) to allow for easier inventory tracking when the product is
received and also when it is sold.
Training Some products require the reseller to have strong knowledge of the product
including demonstrating the product to customers. Marketers must consider offering
training to resellers to insure the reseller has the knowledge to present the product
accurately.
Promotional Help Resellers often seek additional help from the product supplier to
promote the product to customers. Such help may come in the form of funding for
advertisements, point-of-purchase product materials, or in-store demonstrations.
Customer Service:
Customer service (also known as Client Service) is the provision of service to customers before,
during and after a purchase.
According to Turban et al, 2002, Customer service is a series of activities designed to enhance
the level of customer satisfaction that is, the feeling that a product or service has met the
customer expectation.
Its importance varies by product, industry and customer. As an example, an expert customer
might require less pre-purchase service (i.e., advice) than a novice. In many cases, customer
service is more important if the purchase relates to a service as opposed to a product".
Customer service may be provided by a person (e.g., sales and service representative), or by
automated means called self-service. Examples of self service are Internet sites.
Customer service is normally an integral part of a companys customer value proposition.
Training - services needed to assist the customer in learning how to use a product
Financial Assistance services needed to help customers with the financial commitment
in purchases or using the product
Complaint Resolution - services needed to address other problems that have arisen with
customers use of a product
In many industries customers experience with a companys customer service can significantly
affect their overall opinion of the product. Companies producing superior products may
negatively impact their products if they back these up with shoddy service. On the other hand,
many companies compete not because their products are superior to their competitors but
because they offer a higher level of customer service. In fact, many believe that customer
service will eventually become the most significant benefit offered by a company because global
competition (i.e., increase in similar products) makes it more difficult for a companys product to
offer unique advantages.
Customer service manifests itself in several ways, with the most common being a dedicated
department to handle customer issues. Whether a company establishes a separate department or
spreads the function among many departments, being responsive and offering reliable service is
critical and in the future will be demanded by customers.
As a manager you will always find yourself in the midst of a war between departments.
Production resented Editorial for the way they missed deadlines and delivered shoddy copy.
Conversely, Editorial had little respect for the resulting manuscripts they received back from
Production, full of errors and oversights. Poor teamwork, poor communication and myopic
thinking had led to a hardening of positions over time. They each cared about the finished
product but were putting pressure on each other without realizing it. Over time, both groups
came to appreciate each other and how to best work together to achieve win-wins for the greater
good of their customers.
Do you relish or dread committee work with other departments? Does it seem their aims are
contrary to your departments? When other departments contact you for help do you regard it as a
nuisance, a distraction and a drain of your valuable time? Can you see the greater good that
comes from helping them solve their problems or fulfill their needs?
Take pride in opportunities to help other departments look good. Obviously, you don't want their
success to come at your expense. Usually helping others doesn't mean you lose a zero-sum game,
where only one of you can win and helping others hurts you. In most cases helping other
departments leads to a win-win situation. And what goes around usually comes around. Helping
other departments succeed can help yours too when the roles are reversed.
Up with People
Good internal customer service starts with good morale within your group. Are your people
happy? Do they feel good about themselves and their contributions to the goals of the department
and to the company at large? They should, and effort should be made to help them do so. Happy
employees are productive, and customers take note. Happy employees are also better team
players. Will you fly the airline whose employees are striking with management or the airline
whose employees are management? Employees invested in employee stock purchasing plans
with matching contributions see themselves as much more a part of the company. Thus, as the
company goes, so goes their lot.
Who's On Top?
Many organizational charts employ an inverted pyramid with customers at top. Some companies
instead put their employees at the top. In many senses, the employees are management's
customers. Corporate values that emphasize treating employees well translate to good customer
care too. Does your organization value its people? Invariably, companies that care about their
people can better ask their people to care about their customers.
Employees should never complain within earshot of customers. It gives them the
impression your company isn't well run, shaking their confidence in you.
Employees should never complain to customers about other department's employees.
Who wants to patronize a company whose people don't get along with each other?
Employees at every level should strive to build bridges between departments. This can be
done through cross training, joint picnics, parties or off-sites, or creative gatherings, as
well as day-to-day niceties.
Utilize post mortems after joint projects so everyone can learn from the experience. You
can mend fences and gain new understandings when everyone reviews what went
right...or wrong. By doing so after the project the immediate pressure is off, yet stronger
bonds can be forged while the experience is fresh in peoples' minds. Not doing so can
result in lingering animosities that will exacerbate future collaborations.
Let your employees become "Customer for a Day" to experience firsthand what your
customers experience when doing business with you.
All these things can be seen as interruptions that take us away from our "real" jobs, yet they are
vital to our company's success. If you see a gap between your "real" job and the needs of others
in your organization, you need to rethink what your real job is. In helping others in your
company, you help your company succeed. Superior internal customer service improves morale,
productivity, employee retention, external customer service and, ultimately, profitability. As
Arthur M. Blank, co-founder of Home Depot and owner of the recently acquired Atlanta Falcons
football team said in his keynote at the Metro Atlanta Chamber of Commerce's Small Business
Person of the Year Award luncheon, caring for your "associates" is fundamental to caring for
your customers and shareholders.
CIG
Process
Process Code
P/CSD/CIG/2181
Global
Champion
Value Streams:
Welcome
Acquisitio
n
Service
Visit
AV/CV
Network
Billing Collection
s
ARC
Call
Centre
Provisioni
ng
Retailer
helpdesk
Process
RetentionRefund
STARTS: Retailers. Distributors, prepaid shoppees and FSE dialing helpline number.
END: Answered calls coded in PACS.
CUSTOMER
CSD
Prepaid customer
Channel partners
OUTPUT
INPUT
Call
SUPPLIER
No
Is it a Retailer/
Distributor?
Yes
Call reaches IVR
Is query
resolved at IVR?
Yes
No
Retailer/Distributor
presses 9 in IVR
No
OCR?
Process ends
Key CTQs:
PARAMETER
CTQ
MEASURE
DEFECT
DEFINITION
UNIT
PCA 20
Service Level
* Ref Anx
Calls answered
in first 20sec
PROCESS
MEASURES
Call resolved in
first attempt
FCR
SR
raised
% SR wrongly
raised
wrongly
Wait Time
Abandoned calls
Wait time
% Abandoned
Calls
JKQ
Each
Calls
answered
< 85%
(One Repeat )
Each
raised
Time Taken to
reach CSR
> I Minute
Each calls
Calls abandoned
>7%
Each
calls
abandoned
Total hold in a
call
<30 sec.
Each call
=<110 sec
CSR
participation
JKQ scores
Each
call
received from
Retailers
Total SR raised
Average
handling time
Time taken to
handle each call
>110sec
Quiz scores
JKQ for
<85%
NCT
As
per
target
AOP
Call
Retailer
1 Repeat
>2.5 % (till Q3
exit, 1.5% till Q4
exit.) of total SR
raised
>30 sec
hold
>70%
=>85%
Hold time/call
Average
time
Each
Call
answered
per
Call per Retailer
SR
Cancelled SR/Total SR
raised
<2.5 %( till
Q3
exit,
1.5%
till
Q4 exit.)
<1 Minute
<7%
= > 85%
<
AOP
target
Sl.
No
1
Flow
Retailer/Distributor
calls helpline
number from his
/her mobile /
landline
2
Is it a
retailer/
distribut
or
Description
Timeli
ne
Retailer/Distributor
calls helpline number
from his /her mobile /
landline
As
& Service
When
Level
If
it
is
a
retailer/distributor then
call lands up at the
helpdesk IVR
CTQ
Respon
sibility
Retailer/
Distribut
or
Control
Rules/
Ref
>=70%
On call
go to step 4.
No
access
provided to a non
retailer/distributor.
On call
Process ends
No access
provided to
the helpline
IVR
Y
4
Is
quer
y
resolv
ed at
IVR?
Call
ends.
Process Ends
On call
IVR
5
Retailer/Distribut
or presses 9 on
the IVR
Retailer/Distributo
r presses 9 in IVR
Retailer/
Distribut
or
On call
6
CSR greets the
Retailer/Distribut
CSR
or identifies
the nature of the
requirement.
On call
CSR raise SR
in PACS & SLAY
time given to
Is
the
it
retailer/distribut
O
or to be N
C
CSR
Call
Quality
Audit
CSR
As
per
partner
target
Output
customer.
nature
of
requirement
the
scores
CSR
provide
resolution & ends
the
call
with
standard
script.
Go to step 11.
On
FCR/
quality
audit
score
CSR
>=85%
call
CSR raise SR in
PACS & SLA time
given
to
the
retailer/distributor
to be informed to
customer.
10
11
Process ends
WORK INSTRUCTIONS
%
SR
wrongly CSR
raised
<2.5 %
( till Q3
exit,
1.5% till
Q4 exit.)
Average
handling
time
120sec.
CSR
Work Instruction
CODE
DESCRIPTIONS
W1
W2
CSR to report to work 15 minutes before shift for briefing and debriefing .
W3
W4
All CSRs to use the standard opening and closing script, and Use help file
for guidelines.
W5
W6
Service request number to be given for SR's raised for Non OCR call type .
W7
W8
W9
W10
W11
W12
W13
Sl. No
Description
Details
Briefing
&
FORMAT
De-briefing
Format
Format
Call Script
helpdesk
Format
Channel FAQs
Format
Format
Escalation Dashboard
Format
Format
Circle specific
numbers
1
2
3
Code
F/MO/CSD/CIG/RHD/01
F/MO/CSD/CIG/ RHD /02
Retailer
Helpdesk
Briefing /
Debriefing
Briefing
briefing
De-
General
New
offers/Schemes
Briefing
Process
modified/changed
Pain
AreasProcess/Operationa
l
Pain Areas-Admin
and HR
Debriefing
General
Detailed
discussionBriefing/
De-briefing
(*)
Feedback
from
CSR/Team
name
Actio
n
taken
By
Whom
By
When
TAT
committed
Status
as per
TAT
New
offers/Schemes
Process
modified/changed
Pain
AreasProcess/Operationa
l
Pain Areas-Admin
and HR
Distributors shall load up the phones of his 'Feet on Street' agents with certain Rupee
values, using his secure PIN on his cellphone.
The Easy Load server at Airtel shall debit the values to distributor and Credit the
accounts of respective FoS agents
FoS agents shall load up retailer cell-phones using the same procedure (and secure PINs)
Customers shall be loaded up with the desired denominations by the retailers.
Each transaction will be confirmed by SMS and allocated a transaction ID.
Paperless Transactions which is possible Anytime, Anywhere and for Any amount.
No stock out anywhere in the Channel
Better utilization of channels working capital
Opportunity to attract cost-conscious subscribers who dont have enough money to reload.
Win customers from competitors
Opportunity to add on new class of Dealers
FAQs
Q. Will the way I pay for recharging change because of this?
No Sir/Madam you will pay for your recharge just as you do now. However the receipt which
you get must carry the Transaction ID as mentioned in the SMS received by you.
Q. So will Airtel paper coupons be withdrawn?
No Sir/Madam you have the option of recharging through paper coupons as you have been doing
in the past. Both the options of paper recharge and Airtel Easy recharge will co-exist at the same
time
Q. Will I need a new SIM?
No Sir/Madam. Your existing SIM will work as before you do not need to change it.
Q. So now I can get recharge worth say for e. g Rs.375?
Yes Sir/Madam you can get a recharge worth any amount now. However a minimum amount
from which the recharge will be possible is Rs. 10/- onwards. From this amount the processing
fee and service tax will get deducted and your account will get updated with the balance amount .
Q. Is this process safe & tested?
Yes Sir/Madam. It has application security, Password protection, Message Encryption.
Though it is latest technology, it is already being used by two leading players in Phillipines
SMART> 60% thru e-load (in 6 months)
GLOBE> 50% thru e-load (in 2 months)
Q. Will I be charged if I use the Airtel Easy recharge option?
No Sir/Madam the charges would remain the same as before.
Q. How do I know that my account has actually been updated?
Sir you can check it like you do in the case of a paper coupon either by dialing 123 or by
pressing *123# to get the balance on screen.
Q. What is the time taken for a recharge to happen?
The Recharge will happen within half a minute (30 secs) of the retailer sending the SMS.
503 Module
Lapu Module
HLR
Infobank
CRBT
Custinfo
MINSAT
OTA
Short Forms
FULL FORM
PACS
FSE
CSR
SR
Service Request
SLA
IVR
OCR
QUERY DESCRIPTION
Enquiry About downloading RT from543217/54321/Bada TOP UP/JOKE sms from 55170/Bonus on consumption
Offe
ADPR1
Enquiry About Bird S-199/ RCV 100/Special Value Voucher/ new 135SVV for 495 new Lifetime subscribers/Use of
Power Cards after Easy Charge Rs.99/cricket pack Dactivation/ std pack/daily decrement pack
PAKS1
RCHS1
Enquiry About FNF/98 Power card for 99 Easy Lifetime Offer /Local /STD Pack Activation /Deactivation
Enquiry About Top Up/RCV Recharge Denominations/
ACTD1
INVA1
RCHG1
HTSC1
HBDS1
BALD1
ABSO1
HTAD1
SMSP1
INBA1
Enquiry About Negative Baln. Qry/Credit Clearance Date/Low Baln. Prompt for Call/TRANSFER FAILUER DUE
TO INSUFFICIENT BAL of Retailer /FOS/Dist
SEWK1
WRCL2
LTPR1
COMPLAIN
ID
BNRA3
ICPL3
DDBN2
BNCA2
COMPLAINT DESCRIPTION
Cos Not Changed/ Validity not Extended
Incoming calls problem - Local
MINSAT,Other Module Downtime
PACS Down,CDRs not available
AWCC3
LSMS3
WAVS3
WBAR3
ANRC3
LAPD2
ACTP3
BNRA2
BDPA3
OGCL3
SEWK2
Auto Renewal of VAS Pack,Crk Pack,Voice Chat,GPRS,Music Station,MCA and Instant Messanger
Pef Barring
Complaining About Balance not received after recharge
Customer not able to recharge due to LAPU downtime
New SIM not activated after TAT/
Cos Not Changed/ Validity not Extended within TAT
Main / Dedicated Account Balance Deduction
Outgoing calls problem - Local
Duplicate SIM not activated, within TAT
GIFT3
HTNP3
INVR2
INDL3
HBO Offer, Promotional FAT Related Issue/IN Decrement FAT not credited
Customer complaint related to Hello Tune not playing at all
Complaining About 123 IVR not working
Complaint related to indoor coverage issue
OVCR2
PAKS2
Complain about Cricket Pack activated but not recieving SMS /Not able to activate/deactivate VAS / Cricket Pack
Decrement Pack not getting Activated or Deactivated within TAT
OVCR1
ERCR1
CBSD1
CDIA1
SIME1
GIFT1
Airtel follows indirect intermediaries distribution system. The distribution channel comprises
of
PRODUCER DISTRIBUTOR RETAILER CONSUMER.
The end customer in the distribution channel is the Retailer, who is an internal customer. This is
the reason, it is necessary to understand the buying behavior of the target customers. Airtel has
taken immense measures to fulfill the needs of its target customers, thus increasing the level of
customer satisfaction. The incentives and the facilities available for the retailers certainly lure the
Retailers drive the market forward. Airtel follows both push and Pull strategy to be the market
leader.
SALES
Airtel introduces various new offers
for the customers almost everyday which clearly shows the
Department
Pull Strategy. It imposes target on the distributors and the retailers and forces them to achieve
that, reflects the Push strategy.
Sales:This
RETAILERS
ZBM,
BBSR
ZBM, BLSR
ZBM,
BRAH
ZBM, SBLP
Role of TMs:
A TM is the territory manager who monitors the DISTRIBUTORS/ Retailers/ FOS/ Runner and
FE on a day to day basis. Overall the zone is monitored by the Sales Manager. The TMs ensures
better service for the distribution of the products of Airtel including SUKs, SKUs, and HBOs. He
directly controls the distributor and gives the target to the distributor which has been assigned by
his immediate controller i.e. the SM. He sets the target on weekly and monthly basis to the FOS.
He also ensures better distribution is being done by the FOS. A TM monitors 2 or more
Distributors and their down line.
Role of Distributor:
Distributor is the most important channel partner in the distribution channel of the telecom
industry. Distributor is directly related to the company and the middle man for the retailers in the
company. Distributor carries the command and the service from the company and provides it to
the retailers who ultimately sell it to the customers. To be a Distributor of Airtel, the agency
should be a dealer of any FMCG products for at least 5 years. Airtel assigns a particular area to a
distributor and defines the market which it has to handle. Then the distributors work starts. The
distributor along with the TM locates the retail counters of a particular area and the business
starts on. The FOS and the runner are recruited by the distributor who carries the products and
services to the retailers.
Role of FOS:
A FOS is a person recruited by the distributor who is responsible to go to the market and make
available the products to the retailers. Each distributor has around 7 to 8 FOS according to the
area assigned to the distributor. These FOS represents the distributor and the company and is in
contact directly with the retailers. FOSs basic job is to provide the required products as SIM ,
RCVs and LAPU amount to the retailers. Being the representative of the company he personally
provides information regarding the new offers and schemes to the retailer. Though the retailers
get the information on their mobile phone regarding the offers, but certain clarification is also
made by the FOS. Any problem faced by the retailers is to be solved by the FOS. The FOS
collects everyday the products like SIM, RCVs, LAPU amount etc from the distributor and goes
to the retailers. Each FOS has been assigned a particular Beat plan. (A Beat plan is a particular
market of a particular area). Nowadays a FOS is also known as Field Sales Executive (FSE).
E.g. Balaji Traders is a distributor in the Bhubaneswar zone whose area has been assigned from
Vani-Vihar to Fire Station square. This distributor has recruited 8 FOSs who looks after the entire
assigned area.
Role of Runner:
A Runner is a person recruited by the distributor who is responsible to collect the documents
from the retailers. This person is also responsible to provide the banners and posters to the
retailers. The Runner gets Rs 4 for collecting a filled APEF.
E.g. Balaji Trader has recruited 6 Runners who are looking after the entire assigned area to
collect document and checking the merchandising.
Role of Retailer:
Retailer is the most important chain of the distribution channel. This is because he is the person
who comes in direct contact with the customers He is the end customer for Airtel sales in the
distribution channel. Airtels main aim is to have more acquisition or activation because this
eventually increases the sales of SUK and RCVs. Though Airtel sales people visit the market
timely but the retailers are always in the market and they only can say about the pulse of the
market. Though the retailers act as point of sale it does some other jobs as such it flows the
message of the market demands and needs of the company.
Research Methodology:
Airtel follows Six Sigma process for all projects.
What is Six-Sigma?
Six Sigma is a business management strategy, originally developed by Motorola, that today
enjoys wide-spread application in many sectors of industry.
Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and
business processes. It uses a set of quality management methods, including statistical methods,
and creates a special infrastructure of people within the organization ("Black Belts" etc.) who are
experts in these methods. Each Six Sigma project carried out within an organization follows a
defined sequence of steps and has quantified financial targets (cost reduction or profit increase).
Hence the widely accepted definition of a six sigma process is one that produces 3.4
defective parts per million opportunities (DPMO). This is based on the fact that a
process that is normally distributed will have 3.4 parts per million beyond a point that
is 4.5 standard deviations above or below the mean (one-sided capability study). So
the 3.4 DPMO of a "Six Sigma" process in fact corresponds to 4.5 sigmas, namely 6
sigmas minus the 1.5 sigma shift introduced to account for long-term variation. This
is designed to prevent overestimation of real-life process capability.
Six Sigma has two key methodologies: DMAIC and DMADV, both inspired by
Deming's Plan-Do-Check-Act Cycle. DMAIC is used to improve an existing business
process; DMADV is used to create new product or process designs.
Define the Customer, their Critical to Quality (CTQ) issues, and the Core Business Process
involved.
Define who customers are, what their requirements are for products and services, and
what their expectations are
Define project boundaries the stop and start of the process
Define the process to be improved by mapping the process flow
Analyze the data collected and process map to determine root causes of defects and
opportunities for improvement.
Improve the target process by designing creative solutions to fix and prevent problems.
Research Topic:
A study to minimize calls of dealers at Dealers Help Desk (DHD) for Bharti
Airtel, Orissa Circle.
Business Case:
Satisfying both internal and external customers of the company along with increasing revenue is
the main motive of the Service industry. At the advent of cut-throat competition in the telecom
sector in Orissa, with the entry of Vodafone and with the presence of other six players, it is a
direct business need to reduce service OPEX and improve channel satisfaction. Hence reducing
calls at DHD is an essential strategic business project in order to reduce Service OPEX of CSD
and to enhance channel partners satisfaction.
To carry out end to end study for identifying potential root causes for calls at DHD.
To recommend solutions to streamline internal process in order to reduce calls at DHD,
this will ensure high level of channel partner satisfaction.
To achieve Calls per Retailer (CPR) 5.00 by July 31st.
2. Out-Scope:
Prepaid subscribers
Postpaid subscribers
ARCs
Other Airtel circles in India
Research Design:
Research Type:
Descriptive Research- This research is undertaken to describe answers to questions of
Who, Where, When, and How. Descriptive Research is desirable when we wish to project
studys findings to a larger population. The description is used for frequencies, averages,
and other statistical calculation.
Sources of Data:
o Marketing Department at Airtel, BBSR
o CSD at Airtel, BBSR
Sample Size:
All calls at DHD for the month of April and May.
The Analysis:
PSMS1
43690
15.76%
PAKS1
39041
14.08%
INVA1
16772
6.05%
ADPR1
15796
5.70%
ACTD1
13225
4.77%
RCHS1
10931
3.94%
ERCR1
9242
3.33%
OVCR1
8676
3.13%
HTSC1
8583
3.10%
RCHG1
8327
3.00%
CBSD1
8318
3.00%
BLNK1
7679
2.77%
HBDS1
6789
2.45%
SIME1
5700
2.06%
HTAD1
5102
1.84%
TPIN4
5048
1.82%
CDIA1
5021
1.81%
BALD1
4363
1.57%
Case Type
Percentage
COMPLAINT
13496
4.9%
QUERY
254851
91.8%
REQUEST
9268
3.3%
Status
Count Of Status
Percentage
CLOSE
268439
96.69%
OPEN
9177
3.31%
The main aim is to recognize the low productive and high calling dealers and take
necessary steps to minimize their calls.
This will bring down the overall CPR below the present average
Before:
After
Take
necessary
actions
1856
40721
21.95
Total no
(April)
of
activations
made 18,105
3,96,51,033
1,673
66,541
39.79
21,819
4,54,31,701
Now it was important to recognize these dealers and plan the action according to the
priority.
The action plans were decided after a lot of brain storming,
CountOfCase Type
14010
271515
15217
QUERY
REQUEST
COMPLAINT
BHUBANESWAR
106272
5345
5546
117163
BALASORE
52382
2893
2576
57851
BERHAMPUR
32001
1871
1692
35564
SAMBALPUR
56768
3079
2983
62830
OTHERS
24092
2029
1213
27334
TOTAL CIRCLE
271515
15217
14010
300742
Graphical
Representation:
SUBBASE APR
SUBBASE
MAY
BHUBANESWAR
18904
19985
ZONE
Query
Request
Complaint
BALASORE
8290
8794
BHUBANESWAR
90.7
4.6
4.7
BERHAMPUR
6440
7217
BALASORE
90.5
5.0
4.5
SAMBALPUR
9958
10485
BERHAMPUR
90.0
5.3
4.8
OTHERS
3888
9832
SAMBALPUR
90.4
4.9
4.7
Grand Total
47480
56313
OTHERS
88.1
7.4
4.4
Total
BBSR
13240
BLSR
6039
BRAH
4253
SBLP
6967
OTHERS
10222
Grand Total
40721
SUBBASE
Total (Q+R+C)
CPC
Unique (Q+R+C)
Unique CPC
BHUBANESWAR
19985
117163
5.86
13240
8.85
BALASORE
8794
57851
6.58
6039
9.58
BERHAMPUR
7217
35564
4.93
4253
8.36
SAMBALPUR
10485
62830
5.99
6967
9.02
OTHERS
9832
27334
2.78
10222
2.67
Grand Total
56313
300742
5.34
40721
7.39
Action Points:
Based on the above comparison between April and May, some action points were planned for
implementation. The action points were decided after a lot of brain storming sessions.
The lists of Action Plans are as follows:
1. For Red Zone & Blue Zone Retailers (very critical priority):
Service Camp
Planned for Zones:
BBSRBLSRBRAHSBLPRecognizing their all sources of information like
SMs
TMs
FSEs
Doing a gap analysis for all the retailers.
Providing the retailers with all possible information about the products and
services.
2. Share all actions on Query ID which are contributing higher to DHD calls.
3. Find out calls per month for those retailers (red & blue zone) for the month of March
and May.
4. An outbound calling program for frequent callers. (planned to start on 10th June)
5. To look into the problem of blue zone > 26 calls retailers with Query ID ABS01and
ACT
Conclusion:
Internal customer service is the service we provide fellow employees and other
departments within our own organizations, as well as our suppliers and anyone else
with whom we work to get our jobs done. Distributor is one of the most important
channel partners in the distribution channel of the telecom industry. Distributor is
directly related to the company and the middle man for the retailers in the
company. Along with Distributors, Retailers are also very important chain of the
distribution channel. This is because he is the person who comes in direct contact
with the customers. Satisfying them with solving their queries will ultimately lead
to customer satisfaction. A satisfied channel partner will make fewer calls to DHD,
thus decreasing the total no of calls at DHD. This will ultimately lead to reduction
in OPEX along with satisfaction of Channel partners.
Recommendations:
The main aim of this project is to minimize the calls at DHD, thus decreasing OPEX. Hence
these steps can be implemented to get desired result. This will definitely decrease the CPC.
1. Service Camp:
These Camps will be specially designed for the retailers and distributors to train
them on methods to solve customer queries and complains.
These camps will be organized in all the 4 zones in good hotels.
These camps will include personnel from CSD of Airtel and professional trainer.
These camps will even target to train the TMs, FOSs and FEs.
The camps will aim to solve upon the queries which counts for the maximum calls
at DHD.
These camps will be organized frequently.
2. Booklets:
It has been planned to provide the Retailers and Distributors with enough information, so
that they can serve the customers efficiently, without any assistance. The main aim of this
booklet will be to flood the channel partners with lot of information.
3. Sending SMS:
The Retailers and Distributors will be sent SMS everyday regarding new offers and plans.
This will help the channel partner to know the processes better.
The SMS will also be sent to TMs, FOSs and FEs, this will help them to serve the
customers better and will finally lead to less calls at DHD.
Bibliography:
Web Based:
http://www.airtel.in
http://www.wikipedia.org
http://www.enterprenuer.com
http://www.knowthis.com
http://www.isixsigma.com
http://www.tutor2u.net
http://www.smallbusinesssuccess.biz
http://customerservicezone.com
http://www.knowthis.com
http://www.tc.umn.edu
Reference Books:
Marketing Management by Philip Kotler, Kelvin Lane Keller, Abraham
Koshi and Mithileswar Jha, Pearson Education, 12th Edition.
Management Research Methodology, by K.N.Krishnaswamy, Siva
Kumar and M. Mithirajan, Pearson Education.
Research Methodology: Methods and Techniques by C.R.Kothari, New
Age International (P) Ltd,