INTRODUCTION

CHANNELS OF DISTRIBUTION

Channels of distribution is the movement of goods and services between the point of
production and point of consumption through organization that performs a verity of
marketing activities the major participants in distribution channel are
producers,intermediaries and consumers.it is also known as marketing channels.

We can define formally the distribution channels as the set of interdependent

institutions participating in the marketing activities involved in the movement the flow of
goods or services from the primary producer to ultimate consumers. Channels of distribution
plays a very important role in achieving the marketing objectives of a company.undobtedly,
the manufacturer of products and services creates involve utility but the distribution channels
create time and place utilities.

A distribution channel is a chain of business or intermediaries through which

goods and services passes until it reaches to the end customer (Or) a channel of distribution is
a path traced in the direct or indirect transfer of ownership of a product as it moves from
producers to consumer.

A channel is pipeline through which a flows on its way to the consumer the manager put
his products into the pipeline marketing channels and it moves towards various marketing
people and reaches the ultimate consumer which is the other end of the channel.

According to American marketing association “a channel of distribution or marketing

channel is a structure of intra –company organization, units and intra –company agents and
dealers , wholesaler and retailer through which a commodity product or services is marketed.

According to Philip kotler “every producer seeks to links together the set of marketing
intermediaries that best fulfill the firms objectives .this set of marketing intermediaries is
called the marketing channel [also trade channel or channel of distribution.”

1
Objectives of the study
 To study the channel design of Idea Cellular Limited
 To study the perception of Idea retailers
 To study the perception of Idea distributor

Scope of the study

 The study is considering Jagitial district for survey, which has a wide business for
Telecommunication business.

Source of Information
 Primary data collection collected distributors and retailers.
 Secondary data taken from marketing journals

Sample design
The process of drawing a trial from a large population is called sampling. Population refers to
the total of items about which information is defined. Well selected samples may reflect
fairly and accurately the characteristics of the population.
1. Sampling Unit: The sample unit of this survey was the distributor and retailers who
sales idea simcards and recharge cards in jagtial, telangana.
2. Sample Size: The sample size was 45 retailers.
3. Contact Method: Personal Interview
In interview schedule I used multiple choice question and ranking system questions.

Limitations of the study

 All the observation and recommendation will be made on the feed back

2
 Chapter-2:
LITERATURE REVIEW
STUDY RELATED TO SURVEY PROJECTS ON TELECOM
SERVICES

(Obaji, 2011) Distribution still offers a new frontier for competing successfully, especially if
the emphasis is placed on the design and management of superior marketing channel systems
to provide excellent customer services. Yet designing optimal marketing channel systems to

3
boost sales, formulating innovative distribution strategies and managing channels system
effectively is no simple task
(Rosenbloom, 2010) Thus, managers responsible for developing and managing the distribution
channels that make products and services available to literally billions of customers around
the world face a more complex challenge than the previous generation of channel managers.
Not only do today's channel managers need to think globally, but they must also act locally in
terms of providing the appropriate array of channels desired by heterogeneous markets all
over the world
Shikha Ojha (2009) conducted a study on “Consumer Awareness of VAS of Telecom Sector
of India”. She analyzed the contribution of the mobile phone services not only at the national
or state level, but also its involvement in an individual's life. She found out that the less
number of users are aware of all the VAS provided by the service providers and thus the
companies should focus on the awareness campaign.

Shirshendu Ganguli (2008) conducted a study on “Drivers of Customer Satisfaction in

Indian Cellular services Market “in which he discussed the impact of service quality and
features on customer satisfaction from the cellular users viewpoint.

Girish Taneja & Neeraj Kaushik (2007) conducted a study on “Customers perception
towards Mobile service providers: An analytical study” aims to deduce the factors that
customers perceive to be the most important while utilizing the services of a mobile service
provider.

Kalpana and Chinnadurai (2006) in their study titled “Promotional Strategies of Cellular
Services: A Customer Perspective” analyzed that the increasing competition and changing
taste and preferences of the customer’s all over the world are forcing companies to change
their targeting strategies. The study revealed the customer attitude and their satisfaction
towards the Cellular services in Coimbatore city.

Wilska (2003) according to survey of finish young people aged 16-20, it was found that
mobile phones choice and especially usage is consistent with respondents‟ general
consumption styles. The researcher showed that addictive use was common among females
and was related to trendy and impulsive consumption styles. Instead, males were found to
have more technology enthusiasm and trend – consciousness. These attributes were then
4
linked to impulsive consumption. the study concluded that genders are becoming more alike
in telecom service choice. Because individual differences in consumption patterns are
obviously identifiable.

Indian Telecommunication Statistics (2002) in its study showed the long run trend in
supply and demand of Direct Exchange Lines (DEL). Potential demand for telecom services
is much more than its supply. In eventful decade of sect oral reforms, there has been
significant growth in supply of DEL.

Requelme(2001) examined how much self knowledge consumers have when choosing
between different telecom service brands. The study was built upon six key attributes (
service features, connection fee, access cost, cell to cell phone rates, call rates and free calls
)related to mobile. The 97 research showed that consumers with prior experience about a
product can predict their choices relatively well , although respondents tended to
overestimate the importance of features, call rates and free calls and underestimate the
importance of a monthly access fee , mobile to mobile phones rates and the connection fee.
Mobile phone choice and use has also been found to be related to prior consumption style.

Muller (1990) in his a research focuses that the success of the mobile commerce can be
attributed to the personal nature of wireless devices. Adding to this are its unique features of
voice and data transmission and distinct features like localization, feasibility and
convenience. The sustained growth the mobile commerce around the world has been more
because of the transfer of technology according to the needs of local geography.

MTNL Report (1991) explains that international bodies had supplemented government
resources and funded expansion and technology up gradation78programmesMTNL Report
(1991)36 explains that international bodies had supplemented government resources and
funded expansion and technology up gradation78programmes.

Akwule (1992) researched that in comparison Kenya, which had almost the same level of
gross domestic investment as percentage of GDP from 1981-89 raided the telecom
investment as a share of GDP from 3.28% to 8.67 in 1978.The effect of under investment in
these sectors was compounded by the diffusion of these scarce resources over a number of
areas where no specific area in telecom was developed.
5
Jain and Chhokar (1993) points out the limitations of capital and manpower as key
constraints. The Athreya‟s Committee‟s report may be viewed as an initiation of a process of
examining organizational options. Management incentives which would allow these
organizations to increase profitability and the structural mechanisms which would allow then
to raise capital from markets had been sketchily outlined.

Sheth and Parvatiyar (1995)

developing customer relationships has historical antecedents going back into the pre-
industrial
era. Much of it was due to direct interaction between producers of agricultural products and
their consumers. Similarly artisans often developed customized products for each customer.
Such direct interaction led to relational bonding between the producer and the consumer. It
was only after industrial era‟s mass production society and the advent of middlemen that
there were less frequent interactions between producers and consumers leading to
transactions oriented marketing. The production and consumption functions got separated
leading to marketing functions being performed by the middlemen. And middlemen are in
general oriented towards economic aspects of buying since the largest cost is often the cost of
goods sold.
This is a newer orientation and looks at the distribution system or channel as a social system
consisting of interacting sets of major economic and social political forces that affect
behavior and performance (Stern & Reve, 1980). Another framework is ecological. This
approach focuses on the interaction between the firm and its environment. Finally, we have a
strategic managerial system approach that emphasizes decision making and a developed
system of strategy planning. Thus, this framework for looking at channel alternatives is
concerned with the integrated and coordinated use of channel and marketing resources to
achieve specific objectives (Michman, 1983).
National Telecom Policy (1999)
projected a target 75 million telephone lines by the year 2005 and 175 million telephone lines
by 2010 has been set. Indian telecom sector has already achieved 100 million lines. With over
100 million telephone connections and an annual turnover of Rs. 61,000 crores, our present
teledensity is around 9.1%. The growth of Indian telecom network has been over 30%
consistently during last 5 years.

6
 Chapter-3
Industry profile and Company profile
Telecommunication
India is currently the world’s second-largest telecommunications market with a subscriber
base of 1.05 billion and has registered strong growth in the past decade and half. The Indian
mobile economy is growing rapidly and will contribute substantially to India’s Gross
Domestic Product (GDP), according to report prepared by GSM Association (GSMA) in
collaboration with the Boston Consulting Group (BCG). The country is the fourth largest app
economy in the world.

The Indian telecom sector is expected to generate four million direct and indirect jobs over
the next five years according to estimates by Randstad India. The employment opportunities
are expected to be created due to combination of government’s efforts to increase penetration
in rural areas and the rapid increase in smartphone sales and rising internet usage.

International Data Corporation (IDC) predicts India to overtake US as the second-largest

smartphone market globally by 2017 and to maintain high growth rate over the next few
years as people switch to smartphones and gradually upgrade to 4G.

Indian telecom sector is more than 165 years old. Telecommunications was first introduced in
India in 1851 when the first operational landlines were laid by the government near Kolkata
(then Calcutta), although telephone services were formally introduced in India much later in
1881. Further, in 1883,
Telephone services were merged with the postal system. In 1947, after India attained
independence, all foreign telecommunication companies were nationalized to form the Posts,
Telephone and Telegraph (PTT), a body that was governed by the Ministry of
Communication.

7
Liberalization of Indian telecommunication industry started in 1981 when Prime Minister
Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned
Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy
was let down because of political opposition. Attempts to liberalize the telecommunication
industry were continued by the following government under the prime-minister ship of Rajiv
Gandhi. He invited Sam Pitroda, a US-based Non-resident Indian NRI and a former Rockwell
International executive to set up a Centre for Development of Telemetric(C-DOT) which
manufactured electronic telephone exchanges in India for the first time. Sam Pitroda had a
significant role as a consultant and adviser in the development of telecommunication in India.

In 1985, the Department of Telecom (DoT) was separated from Indian Post &
Telecommunication Department. DoT was responsible for telecom services in entire country
until 1986 when Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam
Limited (VSNL) were carved out of DoT to run the telecom services of metro cities(Delhi
and Mumbai) and international long distance operations respectively.

The demand for telephones was ever increasing and in the 1990s Indian government was
under increasing pressure to open up the telecom sector for private investment as a part of
Liberalisation-Privatisation- Globalization policies that the government had to accept to
overcome the severe fiscal crisis and resultant balance of payments issue in 1991.
Consequently, private investment in the sector of Value Added Services (VAS) was allowed
and cellular telecom sector were opened up for competition from private investments. It was
during this period that the Narsimha Rao-led government introduced the National
Telecommunications policy (NTP) in 1994 which brought changes in the following areas:
 Ownership,
 Service and
 Regulation of telecommunications infrastructure

The policy introduced the concept of telecommunication for all and its vision was to expand
the telecommunication facilities to all the villages in India. Liberalization in the basic telecom
sector was also envisaged in this policy. They were also successful in establishing joint
ventures between state owned telecom companies and international players. Foreign firms

8
were eligible to 49% of the total stake. The multi-nationals were just involved in technology
transfer, and not policy making.

During this period, the World Bank and ITU had advised the Indian Government to liberalise
long distance services to release the monopoly of the state owned DoT and VSNL and to
enable competition in the long distance carrier business which would help reduce tariffs and
better the economy of the country.

The Rao run government instead liberalized the local services, taking the opposite political
parties into confidence and assuring foreign involvement in the long distance business after 5
years. The country was divided into 20 telecommunication circles for basic telephony and 18
circles for mobile services. These circles were divided into category A, B and C depending
on the value of the revenue in each circle. The government threw open the bids to one private
company per circle along with government owned DoT per circle.

For cellular service two service providers were allowed per circle and a 15 years license was
given to each provider. During all these improvements, the government did face oppositions
from ITI, DoT, MTNL, VSNL and other labour unions, but they managed to keep away from
all the hurdles.

In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which
reduced the interference of Government in deciding tariffs and policy making. The political
powers changed in1999 and the new government under the leadership of Atal Bihari
Vajpayee was more pro-reforms and introduced better liberalization policies. In 2000, the
Vajpayee government constituted the Telecom Disputes Settlement and Appellate Tribunal
(TDSAT) through an amendment of the TRAI Act, 1997. The primary objective of TDSAT's
establishment was to release TRAI from adjudicatory and dispute settlement functions in
order to strengthen the regulatory framework. Any dispute involving parties like licensor,
licensee, service provider and consumers are resolved by TDSAT. Moreover, any direction,
order or decision of TRAI can be challenged by appealing in TDSAT. The government
corporatized the operations wing of DoT on 1 October 2000 and named it as Department of
Telecommunication Services (DTS) which was later named as Bharat Sanchar Nigam
Limited (BSNL).

9
The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the
opposite political parties and leftist thinkers. Domestic business groups wanted the
government to privatise VSNL. Finally in April 2002, the government decided to cut its stake
of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally
took 25% stake in VSNL.
This was a gateway to many foreign investors to get entry into the Indian Telecom Markets.
After March 2000, the government became more liberal in making policies and issuing
licenses to private operators. The government further reduced license fees for cellular service
providers and increased the allowable stake to 74% for foreign companies. Because of all
these factors, the service fees finally reduced and the call costs were cut greatly enabling
every common middle-class family in India to afford a cell phone. Nearly 32 million handsets
were sold in India at that time. The data reveals the real potential for growth of the Indian
mobile market. Many private operators, such as Reliance Communications, Tata Indicom,
Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential Indian
telecom market. The breathtaking growth of the telecommunication companies in India over
the last twenty years has made a history. The economic resurgence affected in the early 1990s
brought around a paradigm shift on the overall business scenario of India. With the arrival of
private telecommunication companies in India, the industry observed introduction of mobile
phones into the Indian market and it became extremely popular amongst the Indian masses.
Removal of restrictions on foreign capital investment and industrial de licensing has allowed
various private players to enter into the Indian telecommunication market. The Indian
telecom industry is characterized with intense competition, and continuous price wars.
Currently, there are around a dozen telecom service providers who operate in the wired and
wireless segment. The Industry has grown over twenty times in just ten years, from under 37
million subscribers in the year 2001 to over 898 million subscribers in the year 2013.

Factors Facilitating Growth of the Telecom Sector in India

The phenomenal growth in the Indian telecom industry was brought about by the wireless
revolution that began in the nineties. Besides this, the following factors also aided the growth
of the industry.
Liberalization:
The relaxation of telecom regulations has played a major role in the development of the
Indian telecom industry. The liberalisation policies of 1991 and the consequent influx of
10
private players have led the industry on a high growth trajectory and have increased the level
of competition. Post-liberalisation, the telecom industry has received more investments and
has implemented higher technology.
Increasing Affordability of Handsets:
The phenomenal growth in the Indian telecom industry was predominantly aided by the
meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to
enter the market and to cater to the growing demand. Further, the manufacturers introduced
lower-priced handsets with add-on facilities to cater to the increasing number of subscribers
from different strata of the society. Now even entry-level handsets come with features like
coloured display and FM radio. Thus, the falling handset prices and the add-on features have
triggered growth of the Indian telecom industry.
Prepaid Cards Bring in More Subscribers:
In the late nineties, India was introduced to prepaid cards, which was yet another milestone
for the wireless sector. Prepaid cards lured more subscribers into the industry besides
lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards
were quite a phenomenon among first-time users who wanted to control their bills and
students who had limited resources but greater need to be connected. Pre-paid cards greatly
helped the cellular market to grow rapidly and cater to the untapped market. Further, the
introduction of innovative schemes like recharge coupons of smaller denominations and life
time incoming free cards has led to an exponential growth in the subscriber base.

Introduction of Calling Party Pays (CPP):

The CPP regime was introduced in India in 2003 and under this regime, the calling party
who initiated the call was to bear the entire cost of the call. This regime came to be applicable
for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the
Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from
both mobile as well as fixed line networks. Shifting to the CPP system has greatly fuelled the
subscriber growth in the sector.
Changing Demographic Profile:
The changing demographic profile of India has also played an important role in subscriber
growth. The changed profile is characterized by a large young population, a burgeoning
middle class with growing disposable income, urbanization, increasing literacy levels and
higher adaptability to technology. These new features have multiplied the need to be

11
 Landline subscriber Wireless subscriber Teledensity
Telecom circle base in million (April base in million (September
2017) (April 2017) 2014)
connected always and to own a wireless phone and therefore, in present times mobiles are
perceived as a utility rather than a luxury.
Increased Competition & Declining Tariffs:
Liberalisation of the telecom industry has fuelled intense competition, especially in the
cellular segment. The ever-increasing competition has led to high growth of subscribers and
has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular
phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges
for incoming calls too. Today, however, incoming calls are no longer charged and outgoing
calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way
indeed. Increased competition and the subsequent tariff war has acted as a major catalyst for
attracting more subscribers. Apart from these major growth drivers, an improved network
coverage, entry of CDMA players, growth of value-added services (VAS), advancement in
technology, and growing data services have also driven the growth of the industry.
Challenges:
Even though the Indian telecommunications sector has come a long way since the time of
liberalization and promises growth, there are a number of issues which still pose a challenge
to its progress. Two critical issues are:
 High capital investments
 Well-established players who have a nationwide network
 License fee
 Continuously evolving technology
 Decaling Average Revenue Per User
 Lack of Telecom Infrastructure
 A wide variety of choices available to customers both in fixed as well as mobile
telephony has resulted in increased bargaining power for the customers.

Subscriber base by circle:

India is divided into 22 telecom circles:

12
Andhra Pradesh &
1.62 85.37 81.06
Telangana

Assam 0.15 21.88 50.41

Bihar &
0.31 84.93 47.66
Jharkhand

Delhi 3.22 53.74 232.22

Gujarat & Daman

1.32 72.14 93.34
& Diu

Haryana 0.34 25.07 80.31

Himachal Pradesh 0.14 10.42 109.55

Jammu and
0.12 12.01 69.98
Kashmir

Karnataka 2.27 69.02 94.20

Kerala &
2.09 39.31 95.96
Lakshadweep

Kolkata(including
0.85 29.36 73.0
West Bengal )

Madhya Pradesh
1.01 70.15 57.04
& Chhattisgarh

Maharashtra &
Goa (including 1.88 94.43 92.20 *
Mumbai )

Mumbai 3.04 36.62 Not available

North East 0.11 12.47 72.00

13
 Orissa 0.28 34.45 63.41

Punjab 0.99 36.32 103.49

Rajasthan 0.72 67.25 76.18

Tamil
Nadu(including
2.52 89.42 114.71
Chennai since
2005)

Uttar
0.49 105.01 58.09(Combined)*
Pradesh(East)

Uttar
Pradesh(West) & 0.38 66.64 58.09(Combined)*
Uttarakhand

Market share of mobile network operators as on 30 April 2017

14
 Airtel : 280.64 million (23.6%)
 Vodafone : 211.93 million (17.9%)
 Idea : 196.28 million (16.5%)
 Jio : 123.36 million (10.4%)
 BSNL : 104.16 million (8.8%)
 Aircel : 90.32 million (7.6%)
 RCom : 81.34 million (6.9%)
 Telenor : 47.34 million (4.0%)
 Tata Docomo : 43.7 million (3.7%)
 MTS : 4.13 million (0.3%)

Market share of mobile network operators as on 30 April 2017

tata docomo MTS
telenor 0%
4%
4%
Rcom
7%
airtel
24%
aircel
8%
BSNL
9%
vodafone
jio 18%
10%
idea
16%

Company profile

15
 Idea Cellular Limited

Type Public

Traded as BSE: 532822

NSE: IDEA

Industry Telecommunications

Founded 1995; 22 years ago

Headquarters Mumbai, India

Key people Kumar Mangalam Birla(Chairman)

Products Mobile telephony, wireless

broadband

Revenue ₹354 billion (US$5.5 billion) (2016

Net income ₹31.92 billion(US$500 million) (2015)

Members 200 million (July 2017)

Parent Aditya Birla Group, Axiata

Website www.ideacellular.com

IDEA CELLULAR LIMITED:

Idea Cellular is an Aditya Birla Group Company, India's first truly multinational corporation.
Idea is a pan-India integrated GSM operator offering 2G, 3G and 4G services, and has its
own NLD and ILD operations, and ISP license. Idea is one of the top three mobile operators
in India, with an annual revenue in excess of USD 5 billion and a revenue market share of 19

16
per cent. With nearly 200 million subscribers, Idea ranks sixth in the global rankings of
operators in subscriber terms, for single country operations.
In line with the Government’s vision of Digital India, Idea has accelerated its efforts of
building a digital economy. Backed with a pan-India wireless broadband coverage, Idea has
forayed into Digital services with the launch of a suite of digital entertainment apps — Idea
Music Lounge, Idea Movie Club and Idea Game Spark. With this the company has begun its
transformation from a pure play mobile operator to an integrated digital services and
solutions provider. Idea will also expand its digital offerings into digital communication,
digital payments, cloud and storage, digital information and many more. The first half of
2017 will also see the launch of Aditya Birla Idea Payments Bank.
Idea’s pan-India network covers over 400,000 towns and villages across the country. The
company is further expanding network infrastructure to make high speed mobile broadband
services reach out to over a billion population of the country. Idea executed the fastest 4G
roll-out in the country in 2016 - with one broadband site being installed every ten minutes.
Idea’s pan-India network comprises of over 240,000 cell sites, nearly half of which is
broadband. Idea has also rapidly expanded its fiber network which spread across 1.4 lakh kms
at the end of March ’17.
Idea has been focused at growing its 4G presence in India which is now available across 20
circles, covering 94 per cent of its revenue market.
Using the latest in technology, Idea provides world-class service delivery through the most
extensive network of customer touch points, comprising of over 8,700 exclusive Idea outlets,
call centre, Digital app and social media. Idea’s commitment to providing superior customer
experience across all touch points has helped it stay at the No. 1 position in Customer
Satisfaction Survey, consistently, for the last few years. The leading market research firm
Forrester in its ‘Customer Service Index 2016’ has ranked Idea at No. 1 position in customer
service and rated it as “good” — the only wireless service provider to achieve this feat!
Idea has consistently retained its leadership position in Mobile Number Portability (MNP)
and has recorded a net gain of over 22 million customers through MNP, till end of March ’17.
One in every four customers chooses Idea as a preferred telecom operator.
Idea has received several national and international recognitions for its path-breaking
innovations in mobile telephony products and services. Idea won the prestigious ET Telecom
Award in 2017 for Best Enterprise Mobility Solution. Idea was awarded the Golden Peacock
Award for Corporate Social Responsibility for being the best among the Indian Telecom
Companies for CSR. It was the winner of Voice & Data Telecom Leadership Awards 2016
17
under the Leadership Recognition category for various successful initiatives and deployments
in the areas of Enterprise Services, Customer Service, Marketing, Internet and Broadband,
Infrastructure Innovation, and VAS. Idea was recognised as the Best Company of the Year
2015 at India Business Leader Awards by CNBC and is listed among the Top 25 companies
in the Business Today ‘Best Companies to Work For’ Survey. Idea MD Himanshu Kapania
was awarded the Best CEO of the year 2015 by Business Today.
Company History - Idea Cellular Ltd.
We were incorporated as Birla Communications Limited on March 14, 1995 and granted a
certificate of commencement of business on August 11, 1995. Our registered office was in
Mumbai, Maharashtra. Our name was changed to Birla AT&T Communications Limited on
May 30, 1996 following the execution of a joint venture agreement dated December 5, 1995
between AT&T Corporation and Grasim Industries Limited pursuant to which the Aditya
Birla Group held 51% of our Equity Share capital and AWS Group held 49% of our Equity
Share capital. Our registered office was transferred from Industry House, 1st Floor, 159
Church Gate Reclamation, Mumbai 400 020, Maharashtra to Suman Tower, Plot No. 18,
Sector 11, Gandhinagar 382011 Gujarat on October 22, 1996. With effect from January 1,
2001 following our merger with Tata Cellular Limited the joint venture agreement between
AT&T Corporation and Grasim Industries Limited dated December 5, 1995 was replaced by
a shareholders agreement dated December 15, 2000 entered into between Grasim Industries
Limited on behalf of the Aditya Birla Group, Tata Industries Limited on behalf of the Tata
Group and AT&T Wireless Services Inc. on behalf of the AWS Group following which our
name was changed to Birla Tata AT&T Limited on November 6, 2001. Consequent to the
introduction of the “Idea” brand, our name was changed to Idea Cellular Limited on May 1,
2002. The AWS Group exited from the Company on September 28, 2005 by selling
371,780,740 Equity Shares of the Company, which constituted 50% of the holding of AT&T
Cellular Private Limited in our equity share capital, to ABNL and by transferring the
remaining 371,780,750 Equity Shares to Tata Industries Limited. The Tata Group ceased to
be a shareholder of the Company on June 20, 2006 when Tata Industries Limited and Apex
Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular Private
Limited) sold all their shares in the Company to the Aditya Birla Group.

On October 26, 2006, P5 Asia Investments (Mauritius) Limited (“P5 Asia”) acquired 14.60%
of our Equity Share capital. Under a Governance and Exit Rights Agreement dated October

18
23, 2006 between P5 Asia, ABNL and Birla TMT, so long as an initial public offering has not
occurred and P5 Asia holds no less than 10% of our Equity Shares, ABNL and Birla TMT are
required to procure that (a) our Company and its Subsidiaries shall not take or pursue any of
the following actions without P5 Asia’s prior consent (such consent to be obtained in a board
and/or shareholders resolution) including in respect of (i) any merger with, acquisition of, or
amalgamation or consolidation with another company or business; (ii) assuming or permitting
to exist any borrowings or indebtedness in the nature of borrowings if the amount of all such
borrowings of our Company and its Subsidiaries would exceed Rs. 6,800 million; (iii)
entering into a new line of business; (iv) increasing our authorized or issued share capital; or
(v) entering into a joint venture and (b) our Company makes available to P5 Asia certain
financial information relating to our Company and its Subsidiaries such as monthly
management accounts, quarterly unconsolidated balance sheet and profit and loss account and
the annual audited consolidated balance sheets and profit and loss accounts.

P5 Asia also has a right to appoint one director to our Board so long as it holds at least 10%
of our total issued and outstanding Equity Shares. Mr. Biswajit Subramanian has been
appointed to our Board by P5 Asia pursuant to the exercise of the above right. In addition,
any IPO of our Equity Shares requires P5 Asia’s written consent, and, further, in any such
IPO, P5 Asia has the right to offer for sale such number of Equity Shares representing up to
10% of the total Equity Shares which are held by it. By its letters dated December 2, 2006 to
ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and has confirmed
that it does not intend to offer for sale any of the Equity Shares held by it in such Issue.

We, either directly or through our Subsidiaries, provide mobile services in the Andhra
Pradesh, Delhi, Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra and Uttar Pradesh
(West) Circles, and have recently launched services and as such are in the process of fully
rolling-out our network in the Uttar Pradesh (East), Rajasthan and Himachal Pradesh Circles
pursuant to licenses issued by the DoT.
MAJOR EVENTS
The chronology of key events of the Company from incorporation is set out below:
1995:
Incorporated as Birla Communications Limited

19
Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles
following the original GSM license bidding process
1996:
Changed name to Birla AT&T Communications Limited following joint venture between
Grasim Industries and AT&T Corporation
1997:
Commenced operations in the Gujarat and Maharashtra Circles
1999:
Migrated to revenues share license fee regime under New Telecommunications Policy
(“NTP”)
2000
Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh
Circle
2001:
Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh
(including Chhattisgarh) Circle
Changed name to Birla Tata AT&T Limited
2001:
Obtained license for providing GSM-based services in the Delhi Circle following the fourth
operator GSM license bidding process

2002:
Changed name to Idea Cellular Limited and launched “Idea” brand name . Commenced
commercial operations in Delhi Circle . Reached the one million subscriber mark

2003:
Reached the two million subscriber mark

2004:
Completed debt restructuring for the then existing debt facilities and additional funding for
the Delhi Circle.
Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile
Communications Limited)
Reached the four million subscriber mar
20
First operator in India to commercially launch EDGE services
2005:
-Reached the five million subscriber mark
-Turned profit positive
-Won an award for the “Bill Flash” service at the GSM Association Awards in Barcelona,
Spain Sponsored the International Indian Film Academy Awards
-Sponsored the International Indian Film Academy Awards

2006:
-Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire
shareholding in the Company to the Aditya Birla Group
-Acquired Escorts Telecommunications Limited (subsequently renamed as Idea
Telecommunications Limited)
-Restructuring of debt
-Launch of the New Circles
-Reached the 10 million subscriber mark
-Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.
-Received Letter of Intent from the DoT for a new UAS License for the Bihar
-Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya
-Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its
entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of
Rs. 100 million.
2007
-Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at
the GSM Association Awards in Barcelona, Spain -Initial Public Offering aggregating to Rs.
28,187 million and Listing of Equity Shares on the Bombay Stock Exchange and the National
Stock Exchange -Merger of seven subsidiaries with Idea Cellular Limited -Reached the
twenty million subscriber mark
2008
- Idea Cellular Ltd has informed that the Board of Directors of the Company at its meeting
held on October 20, 2008, inter alia, has appointed the following persons as Directors on the
Board of the Company:
1. Mr. R C Bhargava - Independent Director (Additional Director)
2. Mr. P Murari - Independent Director - (Additional Director)
21
3. Dr. Hans Wijayasuriya - Non Executive Director (Nominee of TM International Bhd).
-Idea acquired 9 licenses for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal,
Orissa, Kolkata, Assam, North East and Jammu & Kashmir
-Acquired Spice Communications with the operating circles of Punjab and Karnataka
-Launched services in Mumbai metro in the largest single metro city launch, ever
-Launched services in Bihar
2009
-Subscriber base as on December 31, 2009: 57,611,872
-Idea becomes a pan-India operator
-Emerging Company of the Year - fastest growing mobile operator in the world’s fastest
growing telecom market
- IDEA wins prestigious Golden Peacock Award 2008 for My Gang
- IDEA and Babajob launch a unique wap portal for job seekers in the informal sector
- Firstsource & Idea announce a five-year Outsourcing Partnership.

2010
- Idea Cellular - Auction of 2.1 GHz band (3G Spectrum)
- Idea Cellular ties up with Indian Railways
- Idea cellular wants to provide 3G services in 4 circles out of the 11 that it has, for the same
it has contacted Nokia Siemens Networks for deployment of equipment and services
- Nation gives a thumb up to Idea Oongli Cricket
- IDEA Cellular recognized as the 'Most Customer Responsive Company' in the Telecom
sector by Avaya Global Connect

2011
- In order to provide assistance to 700 million mobile users regarding the services of mobile
number portability, idea cellular has started a helpline number just before the three days of its
launch.
- Launch of 'Idea My Cash', Powered by Axis Bank
- Idea introduces special International Roaming offer
- Idea user becomes first Indian to win ‘Panchkoti Mahamoney’ on KBC
-Idea wins ‘Best Brand Campaign’ at the prestigious World Communication Awards 2011
2012

22
- Department of Telecom (DoT) has said that the proposal of Malaysia based Axiata group to
raise 1 per cent stake in Idea cellular to 21 per cent would not create any fresh security threat
for the country.
- Idea Cellular declared as winner in 2G Spectrum auction
- Idea, one of the leading telecom brands in India, continues to buzz in the global arena! It has
now bagged the prestigious World Communication Awards 2012 (WCA) under the ‘Best
Brand Campaign’ category at the recently held awards ceremony in London.
- Idea Cellular launched its new communication campaign, with a catchy jingle which has
immediately gone viral! ‘Idea Rings All India’, the new advertisement from Idea, depicts the
diversity, footprint, and seamlessness of our country, and how Idea’s customers benefit from
its pan-India network.
- Idea wins at the prestigious World Communication Awards 2012, second year
consecutively
- ‘Ivory’ from Idea most affordable Android 4.0 Smartphone launched in India.

2013 -Idea Cellular Ltd Signs Unified License with the Department of Telecommunications -
Idea Cellular introduces buffet plans for post-paid subscribers

2014 -Idea wins 900 MHz for Delhi, and 4G in 8 strategic markets -Idea Cellular Ltd Board
recommends Dividend

2015 -Microsoft has tied with Idea Cellular to launch operator billing on the Windows Store
for Idea subscribers -Idea Cellular Ltd has successfully retained the crucial 900 MHz
spectrum and won 54 MHz of 900 MHz spectrum -Videocon Telecommunications sold its
spectrum in Gujarat and UP (West) circles to Idea Cellular at a valuation of Rs 3,310 crore -
Idea launches world-class, high-speed 4G LTE services in all four Telecom service areas of
South India -Idea Cellular launches 4G in all 5 states of South India, Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu and Telangana.

2016 -Idea launches 4G services in four more states -Idea Cellular unveils 4G in Orissa -Idea
Cellular launches Easy Share Plan -Idea covers 10 telecom circles with its world class 4G
LTE services

23
 Chapter -4
Theoretical framework
CHANNELS OF DISTRIBUTION

Distribution is one of the four elements of the marketing mix, the other three being product,
pricing and promotion. This marketing mix is also referred to as the four Ps of marketing;
distribution is here called physical distribution or place. Simply put, distribution is the
process of delivering the products manufactured or service provided by a firm to the end user.
Various intermediaries are involved in this process. This chain of intermediaries which helps
in transferring the product from one intermediary to the next before it reaches the end user is
called the Distribution Chain or Distribution Channel. Each intermediary has a specific role
and need which the marketer caters to.

Distribution channels are not limited to products only even the services provided by a
producer may pass through this channel and reach the customer. Both direct and indirect
channels come into use in this case. For instance, the hotel industry provides facility for
lodging to its customers, which is a non-physical commodity or a service. The hotel may
provide rooms on direct booking as well as through indirect channels like tour operators,
travel agents, airlines etc. Distribution chain has seen several improvements in the form of
franchising. Also there has been link ups between two service sectors like travel and tourism
which has made services available more accessible to the customer. For instance hotels also
provide cars on rent.

Functions of a Distribution Channel

 The primary function of a distribution channel is to bridge the gap between
production and consumption.
 A close study of the market is extremely essential. A sound marketing plan depends
upon thorough market study.
 The distribution channel is also responsible for promoting the product. Awareness
regarding products and other offers should be created among the consumers.
 Creating contacts or prospective buyers and maintaining liaison with existing ones.
 Understanding the customer's needs and adjusting the offer accordingly.
 Negotiate price and other offers related to the product as per the customer demand.
 Storage and distribution of goods
 Catering to the financial requirements for the smooth working of the distribution
chain.

24
  Risk taking for example by stock holding

A distribution channel is a chain of business or intermediaries through which goods

and services passes until it reaches to the end customer.
The channels of distribution is the movement of goods and services between the point
of production and point of consumption through organization that performs a verity of
marketing activities the major participants in distribution channel are producers
,intermediaries and consumers.
According to American marketing association “a channel of distribution or marketing
channel is a structure of intra –company organization, units and intra –company agents and
dealers , wholesaler and retailer through which a commodity product or services is
marketed.”
According to Philip kotler “every producer seeks to links together the set of marketing
intermediaries that best fulfill the firms objectives .this set of marketing intermediaries is
called the marketing channel [also trade channel or channel of distribution.”
According to Beckman and others “the course taken in the transfer of the title to a
commodity constitutes its channels of distribution.it is the route taken by the title to a product
in its passage from its first owner , an agriculture producer, or a manufacturer, as the case
may be to the last owner ,the ultimate consumer or business user.”
According to William J Stanton “a channel of distribution for a product is the route
taken by the title to the goods as they move from the producer to the ultimate consumers or
industrial users.”

Channels of distribution can be broadly divided into three categories:

(1) Direct channel of distribution
(2)Indirect channel of distribution
(3)Multi channel of distribution

1.DIRECT CHANNEL OF DITRIBUTION:

This is the shortest channel a producer can adopt for distribution of goods and services.in this
method the goods moves directly from the producer to the customers without any middle men
or merchant. Selling at manufacturing plant, door to door selling by sales man ,mail order
houses.

25
 producer

consumer

INDIRECT CHANNEL OF DISTRIBUTION:

It means distribution of goods through middlemen or intermediaries, either in
the channel there is one middle man like a sole selling agent who distributes goods through a
number of middlemen subsequently or there may be a number of middlemen when the
producer distributes the products through a number of agents or wholesalers or even retailers.
Retailers sell directly to the consumer whereas wholesaler sells through them.
TYPICAL INDIRECT CHANNELS OF DISTRIBUTION

a. One-level channel:
In this channel there is only one intermediary between producer and consumer. The
intermediary may be wholesaler or retailer.

producer

retailer

consumer

b. Two-level channel
c. This type of channel has two intermediaries namely, wholesales/distributer and
retailer.

26
 producer

wholesale/distributer

retailer

consumer

d. Three-level channel
This type of channel has three intermediaries, namely distributer,
wholesaler, and retailer. This pattern is also used for convenience products.

producer

distributer

wholesaler

retailer

consumer

e. four-level channel
This type of channel has four intermediaries , namely , merchant agent ,distributer
,wholesaler and retailer. This type of channel is used to consumer durable products.

27
 producer

merchant agent

distributer

wholesaler

retailer

consumer

2. Multi-channel of distribution
It is also called as hybrid channel of distribution.in the past many companies used a single
channel to sell to a single market or market segment. Today with the effect of consumer
segments channel possibilities more and more companies have adopted multi-channel
distribution system .such multi-channel marketing occurs when a single firm setup two or
more marketing channels to reach one or more customer segments.

The marketing channel of idea cellular is as below.

manufacturer

wholesaler

retailer

consumer

In this channel first manufacturer produce the simcards and then they sent to the
wholesaler as per order. Wholesaler sends to the retailers and shopkeepers and then lastly
retailer sales to customer.

28
 Percentage of
S.no Opinion No.of respondents
respondents

Chapter 5
DATA ANALYSIS
AND INTERPRITATION

1) How long you have been dealing with IDEA SIM CARDS?

29
 1 <1year 2 4%

2 Below 3 years 9 20%

3 3-6years 14 31%

4 Above 6 years 20 45%

Total 45 100%

30
 Dealing with idea simcards
50%

40% 45%

30%
31%
20%
20%
10%

0% 4%
<1year Below 3 years 3-6years Above 6 years
1 2 3 4

INTERPRETATION
 The survey explains regarding how long the channel members are using Idea
simcards.45% of channel members are tied up with the Idea services more than
6years.It indicating a good relationship exist between channel members and company.
 31% of channel members are 3-6 years dealing with idea services.
 20% of channel members are dealing with idea services below 3years.
 This question concludes that the company increasing its market share.

2) How do you feel the company image?

Percentage of
S.no Opinion No.of respondents
respondents
1 Highly satisfied 20 44%

2 satisfied 22 49%

3 neutral 3 7%
4
dissatisfied 0 0

Total 45 100%

31
 Company image
60%

50%
49%
40% 44%
30%

20%

10%
0%
0% 7%
Highly satisfied satisfied neutral dissatisfied

INTERPRETATION
From the above table it represents that more number of retailers are satisfied with the
image of the company.
 49% of channel members are satisfied and 44% of channel members are highly
satisfied about company image.
 This question concludes that the company has good image in the market.
3. How does a customer come to your shop?
Percentage of
S.no Opinion No.of respondents
respondents

1 By your influence 0 0%

2 By friends 8 18%

3 By advertisement 18 40%

4 By brand name 19 42%

5 Others 0 0%

Total 45 100%

32
 Percentage of
s.no Opinion No.of respondents
respondents

Customers awwarness
50
40
40% 42%
30
20
10 18%
0% 0%
0
By your influence By friends By advertisement By brand name Others
1 2 3 4 5

INTERPRETATION
 From the above table it represents that 42% of customers are coming to shop based on
the Brand Name of the company it indicates the company has good Brand Image
 40% of customers are based on advertisement and 18% of customers are come to shop
by friend’s suggestion.
 This question concludes that the company has good brand image and effective
advertisement.

4. Do you face any difficulty in dealing with customers?

33
 1 Yes 0 0%

2 No 45 100%

Total 45 100%

Difficulty in dealing with customers

120

100
100%
80

60

40

20
0%
0
Yes No

INTERPRETATION
 From the above table it represents that none of the retailers are faced any difficulty in
dealing with customers.
 It resembles that respondents are not facing any sort of difficulty.

5. Are you satisfied with the sales of IDEA SIMCAEDS?

S.no Opinion No.of respondents Percentage of

respondents
1 Highly satisfied 15 33%

34
 2 Moderately 18 40%
satisfied
3 satisfied 12 27%

4 Dissatisfied 0 0%

Total 45 100%

IDEA sales
45%
40%
35% 40%
30% 33%
25%
27%
20%
15%
10%
5% 0%
0%
Highly satisfied Moderately satisfied Dissatisfied
satisfied
1 2 3 4

INTERPRETATION
 From the above table it represents that 40% of channel members are moderately
satisfied and 33% of the channel members are highly satisfied and 27% of channel
members are satisfied with the sales of idea simcards.
 This question concludes that none of channel members are dissatisfied with the sales
of Idea simcards.
 This concludes that the company increasing its sales.

6. Are satisfied with the supply chain from the company?

S.no Opinion No.of respondents Percentage of

respondents
1 Highly satisfied 24 53%

35
 2 Moderately 17 38%
satisfied
3 satisfied 4 9%

4 Dissatisfied 0 0%

Total 45 100%

Supply chain of company

60%

50% 53%
40%
38%
30%

20%

10%
9% 0%
0%
Highly satisfied Moderately satisfied satisfied Dissatisfied
1 2 3 4

INTERPRETATION
This question explains regarding the satisfaction of retailers with the supply chain
from company.
 53% of channel members are highly satisfied. 38% of channel members are
moderately satisfied and 9% of channel members are satisfied with the supply chain
of idea cellular.
 This question concludes that highest percentage of retailers are highly satisfied
because whatever they are expecting from the company it is fulfilled by company and
channel members.

7. How do you estimate the demand for various products?

S.no Opinion No.of respondents Percentage of
respondents
1 Past sales 15 34%

36
 2 Seasonal 26 58%

3 Orders 2 4%

4 Others 2 4%

Total 45 100%

Demand estimation for IDEA products

70%
60%
50% 58%

40%
30% 34%
20%
10%
0% 4% 4%
Past sales Seasonal Orders Others
1 2 3 4

INTERPRETATION
The survey explains regarding how retailers estimate the demand for various products
of idea.
 58% of retailers estimate the demand seasonally, 34% of retailers are estimate on their
past sales.

8) Do you face any difficulty in dealing with company?

S.no Opinion No.of respondents Percentage of

respondents
1 Yes 0 0%

2 No 45 100%

total 45 100%

37
 Difficulty with the company
120

100
100%
80

60

40

20
0%
0
Yes No

INTERPRETATION
From the above table it represents that the retailers face any difficulty with the
company.
 None of the retailers are faced any difficulty with the company.
 It indicates that the company has good relationship with the channel members.

9. Is there any effect on your sales after JIO launch?

Percentage of
s.no Opinion No.of respondents
respondents

1 Yes 40 89%

2 No 5 11%

total 45 100%

38
 Effect of JIO on IDEA sales
100%
90%
80% 89%
70%
60%
50%
40%
30%
20%
10% 11%
0%
yes No

INTERPRETATION
 In this survey this question explains impact on sales of idea after JIO entered into the
market.
 89%of retailers said the sales are decreased after entering JIO in the market and
11%of retailers said there is no decrease of sales after enter the JIO .because where
still JIO is not covered in that market area .
 Conclusion of this question reveals finally there is lot of effect on idea sale after JIO
entering in the market.
10. According to you what makes customers in getting more satisfaction?

S.no Opinion No.of respondents Percentage of

respondents
1 Brand name 23 51%

2 Price 12 27%

3 Quality 10 22%

4 Others 0 0%

Total 45 100%

39
 Customer Satisfaction
60%

50%
51%
40%

30%

20% 27%
22%
10%
0%
0%
Brand name Price Quality Others
1 2 3 4

INTERPRETATION
This question explains regarding what makes customers in getting more
satisfaction of company.
 More than half of the retailers are satisfied on brand name of idea cellular
27%of channel members are satisfied about the quality of services provided
by company
 This question concludes that the company has good brand image and
providing quality services at reasonable prices.

11. How much you are satisfied with IDEA CELLULAR service?
S.no Opinion No.of respondents Percentage of
respondents
1 Highly satisfied 25 56%
2 Satisfied 20 44%
3 Dissatisfied 0 0%
4 Highly Dissatisfied 0 0%
Total 45 100%

40
 IDEA CELLULAR services
60%
50% 56%
40% 44%
30%
20%
10%
0% 0%
0%
Highly satisfied Satisfied Dissatisfied Highly Dissatisfied
1 2 3 4

INTERPRETATION
This survey explains about how much the channel members are satisfied with idea
cellular services
 56%of retailers are highly satisfied and 44%of retailers are satisfied
 This question concludes that idea cellular providing excellent services to the retailers
which made retailers highly satisfy

12. Do you faced any stock out problems for idea cellular?
S.no Opinion No.of respondents Percentage of
respondents
1 Frequently 0 0%

2 Rarely 9 20%

3 No 36 80%

Total 45 100%

41
 Stock problem of Idea Cellular
90%
80%
70% 80%
60%
50%
40%
30%
20%
10% 20%
0%
0%
Frequently Rarely No
1 2 3

INTERPRETATION
This question explains regarding any problems faced by idea cellular.
 80%of the channel members are said there is no problem with the idea cellular
and 20%of the channel members said rarely they have problems in stock out.
 This question conclude the company provides in stock to retailer as they
expected.

13. According to you how the customers does are aware of IDEA CELLULAR?
S.no Opinion No.of respondents Percentage of
respondents
1 Advertisement 32 71%
2 Dealer 10 22%
3 Campaign 3 7%
4 Others 0 0%
Total 45 100%

42
 Awareness of Idea Cellular
80%
70%
60% 71%
50%
40%
30%
20%
22%
10%
7% 0%
0%
Advertisement Dealer Campaign Others
1 2 3 4

INTERPRETATION
 From the above table it resembles that the 71%customers aware of idea cellular based
on the advertisement 22%of the customers are aware because of dealer and 71%of
customer are come to know by the campaign of idea cellular.
 This question concludes that the company has good advertisement impact on
customer.

14. How much percentage of fright charges you incurred, when you receive goods from
the company to your store point

S.no Opinion No.of respondents Percentage of

respondents
1 2% 0 0%

2 3% 0 0%

3 4% 1 2%

4 Not interested to 44 98%

reveal

43
Total 45 100%

Fright charges on stock

120%
100%
98%
80%
60%
40%
20%
0% 0% 2%
0%
2% 3% 4% Not interested to
reveal
1 2 3 4

INTERPRETATION

 From the above table it resembles that 98% of the retailers are not willing to reveal
the fright charges incurred to them.
 2% of retailers are said it as 4% of fright charges will incurred to them.
 This question concludes that the retailers are not interested to reveal fright charges
because they feel it as business secret.

15. Are you satisfied with payment mode of company?

S.no Opinion No.of respondents Percentage of

respondents
1 Satisfied 29 64%
2 Dissatisfied 3 7%
3 Neutral 13 29%
Total 45 100%

44
 Payment mode of comapany
70%
60% 64%
50%
40%
30%
29%
20%
10%
7%
0%
Satisfied Dissatisfied Neutral
1 2 3

INTERPRETATION
 From the above table it represents that 64% of retailers are satisfied with the payment
mode of the company, 29% are neutral and 7% of retailers are dissatisfied.

16. Are you satisfied with the monetary benefits from company?
S.no Opinion No.of respondents Percentage of
respondents
1 Highly Satisfied 9 20%

2 Satisfied 27 60%

3 Dissatisfied 9 20%

Total 45 100%

45
 Monetary benifits from company
70%
60%
60%
50%
40%
30%
20%
20% 20%
10%
0%
Highly Satisfied Satisfied Dissatisfied
1 2 3

INTERPRETATION
 From the above table it represents that 60% of retailers are satisfied with monetary
benefits from the company.
 20%of retailers are highly satisfied and 20% of retailers are dissatisfied with the
monetary benefits.
 This question concludes that the company providing good monetary benefits to
channel members.

17. Are satisfied with sales promotion schemes to company?

S.no Opinion No.of respondents Percentage of
respondents
1 Highly Satisfied 30 67%

2 Satisfied 15 33%

3 Dissatisfied 0 0%

Total 45 100%

46
 Sales promotions to company
80%
70%
60% 67%
50%
40%
30%
33%
20%
10%
0%
0%
Highly Satisfied Satisfied Dissatisfied
1 2 3

INTERPRETATION
 From the above table it explains that more than half 67%of retailers are satisfied with
the promotional schemes of company.
 33%of retailers are satisfied.
 None of the retailers are dissatisfied.
 This concludes that the company sale promotions strategies are good.

Findings

1. It was found that more number of respondents are dealing with Idea simcards above 6
years.
2. Out of respondents met for the study. It was found that 49% of retailers are satisfied
with the company image and 44% of respondents are highly satisfied.
3. From the survey it was found that 40% of retailers are moderately satisfied with the
sales of Idea simcards and 33% of retailers are highly satisfied.
4. It was found that the more number of retailers are highly satisfied with the supply
chain from the company
5. From the survey it was found that the retailers estimate the demand for various Idea
products seasonally.
6. It was found that there is no difficult is faced by retailers with the company
47
 7. Out of respondents met for the study.it was found that there is an effect on the sales of
Idea after Jio launched in the market. 89% of respondents said that the sales of idea
decreased due to Jio.
8. From the survey it was found that there is no stock out problem because what the
retailer expecting the company is providing them.
9. It was found that more number of retailers are satisfied with the monetary benefits
provided by the company.
10. Out of respondents met for the study. It was found that the retailers are highly
satisfied with the sales promotion strategies of the company

SUGGESTIONS
 As the company providing 4g services in urban areas mainly it should
also focus on rural areas.
 Positive word of mouth from the sales people may be generated and
sustained as it stands next to television media in influencing
customer’s choice.
 As the IDEA CELLULAR position in the market is 3rd. By providing
4g services in rural areas may increase their position in the market.
 Though the monetary benefits providing by the company is satisfying
the retailers if they provide more commission for retailers which may
increase their performance.

48
BIBILOGRAPHY
WEBSITES:
 www.Idea cellular.in
 www.google.com

BOOKS: Marketing management

49