A 1

PROJECT REPORT
ON
ANALYSIS AND OPENING OF NEW
UNIQUE RETAIL OUTLETS FOR
AIRTEL

Under The Guidance Of

ARUN SHUKLA VIVEK SINGH

Zonal Sales Manager Territory Sales Manager

Bharti Airtel -Mobile Services Bharti Airtel-Mobile Services

Lucknow Lucknow

Submitted By:
GAURAV BAGWAR (2008MBA-15)

Submitted To:
RIKHI R REGMI

Astt. Manager HR

Bharti Airtel - Mobile Services

Lucknow

ABV-INDIAN INSTITUTE OF INFORMATION TECHNOLOGY AND

MANAGEMENT
(Autonomous Institute of Govt. of India)

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 CERTIFICATE
2

This is to certify that the project on “SALES and MARKETING” named “ANALYSIS
AND OPENING OF NEW UNIQUE RETAIL OUTLETS” submitted at Bharti Airtel
Limited, Lucknow, in partial fulfillment of the summer training for the Master of Business
Administration, embodies the results of bonafide project work carried out by Mr.
GAURAV BAGWAR(2008MBA-15) under my guidance and supervision, and no part of
this project work has been submitted to any other.

RIKHI R REGMI

Astt. Manager HR

Bharti Airtel-Mobile Services

Lucknow

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 ACKNOWLEDGEMENT
3
The beatitude, bliss and euphoria that accompany successful completion of any task would be
incomplete without the expression of gratitude to the people who made it possible with their
every bit of help. As success in any work is credited to hard work, but without a proper
guidance it may be out of ones reach, so with reverence and honour I acknowledge all those
who helped me in carrying out this project successfully.

I avail this opportunity to express our profound sense of sincere and deep gratitude t0o Mr.
Vivek Singh(Territory Sales Manager), who guided with his valuable help in channelizing
the effort in the right direction during the course of the project.

I am also grateful to Mr. Arun Shukla(Zonal Sales Manager) and various FOS who gave
their valuable guidance to me. Last but not the least, I am very much thankful to our friends
and well-wishers and all others who have been instrumental in completion of this work.

Place: Bharti Airtel Limited- Mobile Services

Lucknow

Date: 24 July 2009

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 CONTENTS 4
S.NO. PAGE NO.

1. NEED OF STUDY.................................................................06

2. OBJECTIVE...........................................................................06

3. METHODOLOGY.................................................................06

4. COMPANY PROFILE...........................................................08

5. SALES....................................................................................18

6. SALES AND MARKETING RELATIONSHIP....................21

7. RETAILING...........................................................................22

8. SUPPLY-CHAIN MANAGEMENT......................................23

9. DISTRIBUTION SYSTEM....................................................27

10. SWOT ANALYSIS................................................................ 33

11. MARKET ANALYSIS...........................................................35

12. BUSINESS AND MARKET STRATEGIES.........................36

13. MOBILE STRATEGIES........................................................37

14. FINDINGS..............................................................................38

15. OBSERVATION.....................................................................38

16. CONCLUSION.......................................................................39

17. REFERENCES........................................................................41

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 5

“The mobile phone has moved beyond being a mere

device to become a
Key “social object” present in every aspect of our daily
lives”
International Telecommunications Union. ITU

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NEED OF THE STUDY
Airtel is an old & fastest growing company & leading in the communication market providing ever
best possible service to the customers. New & advance facilities & plans are being introduced day
by day & those are only to satisfy customers taking care of customers need.

OBJECTIVES OF THE STUDY

1. To understand the awareness of Airtel products among retailers in the market.
2. To create interest as well as find out the potential new retail outlets.
3. To analyze the retailer’s perception towards Airtel.
4. To maximize retail outlets through traditional channel that will increase the sales in future.
5. To create more numbers of Airtel subscribers.

METHODOLOGY

Data collection:
Our study used both primary & secondary data.
Secondary Data
I have collected all the details from the FOSs and the team leader of the Shree Laxmi and GeeNext
distributors.
Sources of Data
1. FOSs personal data.
2. Territory managers personal report behalf of exploration of business.
Primary Data
Primary data has been collected from the new retail outlets, existing outlets and new Airtel
subscribers.

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Methodology
1. Meeting all the retailers (Those who are interested to sale Airtel products).
2. Explaining about the business and how to incur profit and giving them competitors’ feedback
through one to one interaction.
3. Creating interest to become a new Airtel outlet by showing leaflets of different features.
4. Finding out the retailers through schedule method.
5. Convincing & creating interest through pushing strategy.

SCOPE OF THE STUDY

By this study satisfaction as well as attitude towards the Airtel has been found out, which can be
used in strategy formulation.
1. Lacking & factor for dissatisfaction has been studied from Retailer point of view which can be
taken care & improved.
2. Getting an opportunity to convince & interact with the Retailers.
3. Creating awareness & finding out potential Retailers for Airtel.

LIMITATIONS OF THE STUDY

At most attention was taken to eliminate any kind of biasness & mis-interpretation in the study to
get optimum result. Even though the following limitations could have certain degree of impact on
the findings.
1. The study was confined to Lucknow, Geenext and Shree Laxmi agency only which may not
represent the real picture of the entire Lucknow market.
2. Many retailers were not interested in Airtel because of steep competition in the locality among
retailers.
• Type of Research: A descriptive research has been followed for the study.

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COMPANY PROFILE

Bharti Airtel

Airtel was started by Mr.Sunil Bharti Mittal,a graduate from Ludhiana (PUNJAB).earlier he was
owner of local telecom company Beetel. Afterwards he planned to expand his company at national
level and the consequence is Airtel,what we see today.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest cellular
service provider with more than 100 million subscribers as of June 2009. It also offers fixed line
services and broadband services. It offers its TELECOM services under the Airtel brand and is
headed by Sunil Mittal.

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 Wal-Mart 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 to you from Bharti Airtel Limited, India’s 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 (SBU’s) - 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 Telemedia Services business
offers broadband & telephone services in 95 cities. The Enterprise services provide end-to-end
telecom solutions to corporate customers and national & international long distance services to

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carriers. All these services are provided under the Airtel brand.

Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel
owns the Airtel brand and provides the following services under the brand name Airtel: Mobile
Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet
Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates).

Leading international telecommunication companies such as SingTel and Vodafone held partial
stakes in Bharti Airtel.In April 2006 Bharti Global Limited was awarded a telecommunications
licence in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In
September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a
mobile telecommunications licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the
launch of a relationship with Vodafone for Island mobile subscribers. In July 2007, Bharti Airtel
signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed
network. In August 2007, the company announced it will be launching a customized version of
Google search engine that will provide an 'array of services' to its broadband customers.

Mobile Services
In 1994, the telecommunications sector was partially deregulated for Cellular Mobile Telephony
Services (‘CMTS’).
The licenses were issued by the Department of Telecommunications (‘DoT’) to the Group upon
payment of fixed amounts as annual license fees and were valid for an initial period of 10 years. In
addition, the Group was required to pay a fixed amount for wireless and spectrum charges to the
Wireless Planning Commission (‘WPC’) – a section of the DoT. This regime is collectively
referred to herein as the “old license fee regime”.
The Government of India (‘GoI’) approved the New Telecom Policy, 1999 (‘NTP-99’) on July 6,
1999, which came into effect from August 1, 1999, providing for the payment of a “one-time
license entry fee” and annual fees payable under a revenue sharing arrangement. Also, the license
period was extended from the original 10 years to 20 years. This regime is collectively referred to
herein as the “NTP-99 license fee regime”.
For the existing mobile and fixed line services operators, license fees payable up to July 31, 1999,
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under the old license fee regime, as adjusted for the notional extension of the effective date of the
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original licenses by six months, were deemed to be the one-time license entry fees. New licensees
would pay a one time upfront fee plus the revenue share. The Group provided its unconditional
acceptance of the terms and conditions for migrating to NTP-99 license fee regime.

Broadband and Telephone Services

In September 1994, the GoI announced guidelines for private sector entry into the fixed-line
telecommunication services, which provided for the granting of licenses for the provision of fixed
line services to one new licensee in each of the telecommunication circles. Within each circle, the
new licensees would compete with Mahanagar Telephone Nigam Limited (‘MTNL’) (in Delhi and
Mumbai) and Bharat Sanchar Nigam Limited (‘BSNL’) (in all other circles). The licenses would be
valid for a period of 15 years. The Group obtained the licenses from the DoT to provide fixed line
services in Madhya Pradesh, Delhi, Haryana, Karnataka and Tamil Nadu circles. These licences
were granted by the DoT on a non-exclusive basis.

The revenue share percentages have been fixed by the GoI at 10%, 8% and 6% of the AGR for A,
B and C categories of circles, respectively.

Touchtel

Until September 18, 2004, Bharti provided fixed-line telephony and broadband services under the
Touchtel brand. Bharti now provides all telecom services including fixed-line services under a
common brand "Airtel".

BlackBerry

On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in India.
The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion
(RIM).

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Digital TV 11

On 9th October 2008, Airtel joined the DTH bandwagon in India with Airtel Digital TV, a Direct-
to-Home Televison service.

iPhone 3G

As of 22nd August 2008, the Apple iPhone 3G is available in India on Airtel and Vodafone.

Awards and recognition

2006

• Wireless service provider of the year 2005 at the Frost and Sulivan Asia-Pacific ICT awards
• Competitive service provider of the year 2005 at the Frost and Sulivan Asia-Pacific ICT
awards
• Airtel also received the title of India's best Broadband service,from the PC World Magazine
in the first broadband survey held in India.

In the news

On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6 billion;
and purchased a controlling stake in rival Hutchison Essar.

In its monthly press release, following statistics have been presented for end of April 2007.

• Bharti Airtel added the highest ever net addition of 5.3 million customers in a single quarter
(Q4-FY0607) and also the highest ever net addition of 18 million total subscribers in 2006-
07
• The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.
• It has an installed base of 40,000 cellsites and 59% population coverage
• After the proposed network expansion, an additional 30,000 towers will result in the
company achieving 70% population coverage

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 • Bharti has over 39 million users as on March 31, 2007
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• It has set a target of 125 million subscribers by 2010
• Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from
82.7% a year ago
• ARPU has dropped to Rs 406
• Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live)
constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous
year
• Blended monthly minutes of usage per customer in Q4 was at 475 minutes
• Has completed 100% verification of its subscribers and in the process disconnected three
lakh (300,000) subscribers
• Bharti Airtel’s enterprise Services, President - David is busy connecting India to Europe.
David announced the building of 15,000 km 3.84 Terrabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East. The project is known as Europe
India gateway [EIG] and is expected to cost $700 million, which is to be completed by Q2-
2010. Alcatel Lucent and Tyco are the telecom vendors for the project.

Members in the EIG consortium include - AT&T, BT, C&W, Djibouti Telecom, Du, Gibtelecom,
IAM, Libyan Telecom, MTN Group Ltd., Omantel, PT Comunicacoes-S.A, Saudi Telecom
Company, Telecom Egypt, Telkom SA Ltd, and Verizon Business.

In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group,
a South Africa-based telecommunications company with coverage in 21 countries in Africa and the
Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a
100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm.
However, both sides emphasize the tentative nature of the talks, while The Economist magazine
noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues
and broader geographic coverage. However, the talks fell apart as MTN group tried to reverse the
negotiations by making Bharti almost a subsidiary of the new company.

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Subscriber Base

Group/Category City/Circle Operators May'2009 June'2009 Monthly % %

Additions Market Growth
Share over
previous
month
Bharti Airtel
Metro Delhi Bharti 5013775 5114351 100576
Airtel

Metro Mumbai Bharti 2821221 2826561 5340

Airtel

Metro Kolkata Bharti 2527010 2542882 15872

Airtel

Metro Chennai Bharti 268110 2320577 52467

Airtel

A' Circle A.P. Bharti 9821762 10101627 279865

Airtel

A' Circle Karnatka Bharti 10322015 10552659 230644

Airtel

A' Circle T.N. Bharti 6569274 6811054 241780

Airtel

A' Circle Maharashtra Bharti 6036123 6096530 60407

Airtel

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A' Circle Gujarat Bharti 4253725 4364229 110504
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Airtel

B' Circle Punjab Bharti 3858426 3921741 63315

Airtel

B' Circle UP (W) Bharti 2468395 2526960 58565

Airtel

B' Circle Haryana Bharti 1280162 1288688 8526

Airtel

B' Circle M.P. Bharti 5001125 5166595 165470

Airtel

B' Circle Kerala Bharti 2502433 2620335 117902

Airtel

B' Circle WB Bharti 3886556 4041562 155006

Airtel

B' Circle Rajasthan Bharti 7572262 7862633 290371

Airtel

B' Circle UP (E) Bharti 6467537 6679810 212273

Airtel

C' Circle H.P. Bharti 991275 1031947 40672

Airtel

C' Circle J&K Bharti 1785817 1814674 28857

Airtel

C' Circle Orissa Bharti 3253456 3428702 175246

Airtel

C' Circle Bihar Bharti 8159469 8494235 334766

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 Airtel
15
C' Circle Assam Bharti 1684159 1734349 50190
Airtel

C' Circle NE Bharti 1005121 1025180 20059

Airtel

Total 99549208 102367881 32.42% 2.83%

Additions 2813902 2818673

Group Company wise % market share - June'2009

Name of Total Sub % Market

Sl. No.
Company Figures Share

1 Bharti Airtel 102367881 32.42%

2 Vodafone Essar 76449598 24.21%

3 BSNL 49073929 15.54%

4 IDEA 47088878 14.91%

5 Aircel 21798731 6.90%

Reliance
6 Telecom 12401101 3.93%

8 MTNL 4297218 1.36%

9 Loop Mobile 2305640 0.73%

All India 315782976 100.00%

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14.91, 15% Bharti Airtel

15.54, 16% Vodafone Essar
6.9, 7%
BSNL
3.93, 4%
IDEA
24.21, 24% 1.36, 1% Aircel
0.73, 1% Reliance Telecom
32.42, 32% MTNL
Loop Mobile

Business Divisions

1. Mobile Services

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.

2. Airtel Telemedia Services

The group offers high speed broadband internet with a best in class network. With Landline
services in 94 cities we help you stay in touch with your friends & family and the world.

3. Enterprise Services

The group focuses on delivering telecommunications services as an integrated offering

including mobile, broadband & telephone, national and international long distance and data
connectivity services to corporate, small and medium scale enterprises.

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VISION:
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To make mobile communications a way of life and be the customers' first choice.

MISSION:

We will meet the mobile communication needs of our customers through:

•Error-free service delivery

•Innovative products and services
• Cost efficiency
• Unified Messaging Solutions

CORE VALUE:

We will delight our customer with our simplicity, speed & innovation.

We will honours our commitment.

We will follow the highest standard of professional integrity & behaviour.

We will respect individual, build winning teams and lead by example.

We will create a fun filled and friendly workplace.

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 SALES 18

A sale is the pinnacle activity involved in selling products or services in return for money or
other compensation. It is an act of completion of a commercial activity.

The "deal is closed", means the customer has consented to the proposed product or service by
making full or partial payment (as in case of installments) to the seller.

A sale is completed by the seller, the owner of the goods. It starts with consent (or
agreement) to an acquisition or appropriation or request followed by the passing of title
(property or ownership) in the item and the application and due settlement of a price, the
obligation for which arises due to the seller's requirement to pass ownership, being a price the
seller is happy to part with ownership of or any claim upon the item. The purchaser, though a
party to the sale, does not execute the sale, only the seller does that. To be precise the sale
completes prior to the payment and gives rise to the obligation of payment. If the seller
completes the first two above stages (consent and passing ownership) of the sale prior to
settlement of the price the sale is still valid and gives rise to an obligation to pay.

Sales Techniques
The sale can be made through:

• Direct sales, involving person to person contact

o Buying Facilitation Method
• Pro forma sales
• Agency-based
o Sales agents (real estate, manufacturing)
o Sales outsourcing through direct branded representation
o Transaction sales
o Consultative sales
o Complex sales
o Consignment
o Telemarketing or telesales
o Retail or consumer
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 • Door-to-door or traveling salesperson
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• Request for proposal – An invitation for suppliers, through a bidding process, to
submit a proposal on a specific product or service. An RFP is usually part of a
complex sales process, also known as enterprise sales.
• Business-to-business – Business-to-business sales are much more relationship based
owing to the lack of emotional attachment to the products in question.
Industrial/Professional Sales is selling from one business to another
• Electronic
o Web – Business-to-business and business-to-consumer
o Electronic Data Interchange (EDI) – A set of standard for structuring
information to be electronically exchanged between and within businesses
• Indirect, human-mediated but with indirect contact
o Mail-order
• Sales Methods:
o Selling technique
o SPIN Selling
o Consultative selling
o Solution selling
o Strategic Selling
o Sales Negotiation
o Reverse Selling
o Paint-the-Picture™

Sales Agents
Agents in the sales process can be defined as representing either side of the sales process for
example:

Sales Broker or Seller Agency or Seller Agent

This is a traditional role where the salesperson represents a person or company on the selling
end of the deal.

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Buyers Broker or Buyer Brokerage
20
This is where the salesperson represents the consumer making the purchase. This is most
often applied in large transactions.

Disclosed Dual Agent

This is where the salesperson represents both parties in the sale and acts as a mediator for the
transaction. The role of the salesperson here is to over see that both parties receive an honest
and fair deal, and is responsible to both.

Transaction Broker
This is where the salesperson doesn't represent either party, but handles the transaction only.
This is where the seller owes no responsibility to either party getting a fair or honest deal, just
that all of the papers are handled properly.

Sales Outsourcing
This is direct branded representation where the sales reps are recruited, hired, and managed
by an external entity but hold quotas, represent themselves as the brand of the client, and
report all activities (through their own sales management channels) back to the client. It is
akin to a virtual extension of a sales force.

Sales Managers
It is the goal of a qualified and talented sales manager to implement various sales strategies
and management techniques in order to facilitate improved profits and increased sales
volume. They are also responsible for coordinating the sales and marketing department as
well as oversight concerning the fair and honest execution of the sales process by his agents.

Salespersons
The primary function of professional sales is to generate and close leads, educate prospects,
fill needs and satisfy wants of consumers appropriately, and therefore turn prospective
customers into actual ones. The successful questioning to understand a customer's goal and
requirements relevant to the product, the further creation of a valuable solution by
communicating the necessary information that encourages a buyer to achieve their goal at an

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economic cost is the responsibility of the salesperson or the sales engine (e.g. internet,
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vending machine etc). A good sales person should never miss sell or over evaluate the
customers requirements.

THE SALES AND MARKETING

RELATIONSHIP
Marketing and sales are very different, but have the same goal. Marketing improves the
selling environment and plays a very important role in sales. If the marketing department
generates a potential customers list, it can be beneficial for sales. The marketing department's
goal is increase the number of interactions between potential customers and the sales team
using promotional techniques such as advertising, sales promotion, publicity, and public
relations, creating new sales channels, or creating new products (new product development),
among other things. In most large corporations, the marketing department is structured in a
similar fashion to the sales department and the managers of these teams must coordinate
efforts in order to drive profits and business success. For example, an "inbound" focused
campaign seeks to drive more customers "through the door" giving the sales department a
better chance of selling their product to the consumer. A good marketing program would
address any potential downsides as well. The Sales department's goal would be to improve
the interaction between the customer and the sales facility or mechanism (example, web site)
and/or salesperson. Sales management would break down the selling process and then
increase the effectiveness of the discreet processes as well as the interaction between
processes. For example, in many out-bound sales environments, the typical process is out
bound calling, the sales pitch, handling objections, opportunity identification, and the close.
Each step of the process has sales-related issues, skills, and training needs as well as
marketing solutions to improve each discrete step, as well as the whole process.

One further common complication of marketing involves the inability to measure results for a
great deal of marketing initiatives. In essence, many marketing and advertising executives
often lose sight of the objective of sales/revenue/profit, as they focus on establishing a

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creative/innovative program, without concern for the top or bottom lines. Such is a
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fundamental pitfall of marketing for marketing's sake.

RETAILING
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store or kiosk, or by post, in small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be
individuals or businesses. In commerce, a retailer buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then sells
smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses, or in a shopping
center or mall, but are mostly found in the central business district. Shopping streets may be
for pedestrians only. Sometimes a shopping street has a partial or full roof to protect
customers from precipitation. Online retailing, also known as e-commerce is the latest form
of non-shop retailing (cf. mail order).

Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.

Without studying the supply chain phenomenon of the system the study
would not be complete.

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 SUPPLY CHAIN MANAGEMENT 23
Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required by
end customers (Harland, 1996). Supply Chain Management spans all movement and storage
of raw materials, work-in-process inventory, and finished goods from point of origin to point
of consumption (supply chain).

Supply Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management activities. It also
includes the crucial components of coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third-party service providers, and customers. In
essence, Supply Chain Management integrates supply and demand management within and
across companies. More recently, the loosely coupled, self-organizing network of businesses
that cooperates to provide product and service offerings has been called the Extended
Enterprise.

Supply Chain Management can also refer to Supply chain management software which are
tools or modules used in executing supply chain transactions, managing supplier relationships
and controlling associated business processes.

Supply chain event management (abbreviated as SCEM) is a consideration of all possible

occurring events and factors that can cause a disruption in a supply chain. With SCEM
possible scenarios can be created and solutions can be planned.

Supply Chain Management Problems

Supply chain management must address the following problems:

• Distribution Network Configuration: Number, location and network missions of

suppliers, production facilities, distribution centers, warehouses, cross-docks and
customers.
• Distribution Strategy: Including questions of operating control (centralized,
decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping,

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 Cross docking, DSD (direct store delivery), closed loop shipping); mode of
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transportation (e.g., motor carrier, including truckload, LTL, parcel; railroad;
intermodal, including TOFC and COFC; ocean freight; airfreight); replenishment
strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated,
private carrier, common carrier, contract carrier, or 3PL).
• Trade-Offs in Logistical Activities: The above activities must be coordinated well
together in order to achieve the least total logistics cost. Trade-offs exist that increase
the total cost if only one of the activities is optimized. For example, full truckload
(FTL) rates are more economical on a cost per pallet basis than less than truckload
(LTL) shipments. If, however, a full truckload of a product is ordered to reduce
transportation costs there will be an increase in inventory holding costs which may
increase total logistics costs. It is therefore imperative to take a systems approach
when planning logistical activities. These trade-offs are key to developing the most
efficient and effective Logistics and SCM strategy.
• Information: Integration of and other processes through the supply chain to share
valuable information, including demand signals, forecasts, inventory, transportation,
and potential collaboration etc.
• Inventory Management: Quantity and location of inventory including raw materials,
work-in-progress (WIP) and finished goods.
• Cash-Flow: Arranging the payment terms and the methodologies for exchanging
funds across entities within the supply chain.

Supply chain execution is managing and coordinating the movement of materials,

information and funds across the supply chain. The flow is bi-directional.

Activities/functions

Supply chain management is a cross-function approach to manage the movement of raw

materials into an organization, certain aspects of the internal processing of materials into
finished goods, and then the movement of finished goods out of the organization toward the
end-consumer. As organizations strive to focus on core competencies and becoming more
flexible, they have reduced their ownership of raw materials sources and distribution
channels. These functions are increasingly being outsourced to other entities that can perform

24
the activities better or more cost effectively. The effect is to increase the number of
25
organizations involved in satisfying customer demand, while reducing management control
of daily logistics operations. Less control and more supply chain partners led to the creation
of supply chain management concepts. The purpose of supply chain management is to
improve trust and collaboration among supply chain partners, thus improving inventory
visibility and improving inventory velocity.

Several models have been proposed for understanding the activities required to manage
material movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Council. Another model is the SCM
Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be
grouped into strategic, tactical, and operational levels of activities.

Strategic

• Strategic network optimisation, including the number, location, and size of

warehousing, distribution centers, and facilities
• Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational improvements such
as cross docking, direct shipping, and third-party logistics
• Product life cycle management, so that new and existing products can be optimally
integrated into the supply chain and capacity management
• Information Technology infrastructure, to support supply chain operations
• Where-to-make and what-to-make-or-buy decisions
• Aligning overall organizational strategy with supply strategy

Tactical

• Sourcing contracts and other purchasing decisions.

• Production decisions, including contracting, scheduling, and planning process
definition.
• Inventory decisions, including quantity, location, and quality of inventory.
• Transportation strategy, including frequency, routes, and contracting.

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 • [Benchmarking] of all operations against competitors and implementation of best
26
practices throughout the enterprise.
• Milestone payments
• Focus on customer demand.

Operational

• Daily production and distribution planning, including all nodes in the supply chain.
• Production scheduling for each manufacturing facility in the supply chain (minute by
minute).
• Demand planning and forecasting, coordinating the demand forecast of all customers
and sharing the forecast with all suppliers.
• Sourcing planning, including current inventory and forecast demand, in collaboration
with all suppliers.
• Inbound operations, including transportation from suppliers and receiving inventory.
• Production operations, including the consumption of materials and flow of finished
goods.
• Outbound operations, including all fulfillment activities, warehousing and
transportation to customers.
• Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.

Supply-Chain Management In Airtel

Bharti Airtel understands the importance of partners to remain competitive in a dynamic
business environment. As a step in that direction, the Supply Chain (SCM) function has been
created with a mandate to develop partner relationships to maximize mutual opportunities for
growth and profitability. The SCM organization has a central core team of supply chain
subject mater experts and execution teams operating under different business divisions across
the country.

At the center of Bharti Airtel's Supply Chain Philosophy is partnership and

collaboration.

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 DISTRIBUTION SYSTEM 27

A proper distribution system is very important for every company because now a days the
customer wants full service without any pain. Airtel has a deep penetration in the market of
prepaid cards, coupons, easy recharge and postpaid cards. I also seen in the market the happy
faces of customers and retailers of Airtel because of the easy availability of Airtel cards and
coupons.

BENEFITS OF GOOD DISTRIBUTION SYSTEM

1. Easy availability
2. Satisfied customers
3. Competitive advantage
4. Better market reputation
5. Saves time

DISTRIBUTION SYSTEM OF AIRTEL

1. Organisation (C&FA's)
2. Distributor
3. Retailer
4. Customer

The supply chain is directly related to the sales.

Beyond the sales management, distribution contains a series of links before reaching to the
consumers.

In the distribution system:

Under one Town Sales Manager(TSM) 4-7 distributors works.

Each distributor carries 5-7 FOS(Feet On Street)/Salesman who carries the sales of
the products of the company like SIM, Paper recharge(PRC), Lapu(E-Recharge) to
the UROs i.e. Unique Recharge Outlets.

27

Each FOS visits to 20-30 outlets daily and twice a week that means they divides the
total outlets for three days to visit them twice. 28

And also FOS carries the work of opening of new outlets.

The distributors are given their geographical areas to work.

For the opening of New Outlets some points are helpful which are helpful in the business:

1. Identify the location.

2. Footfall of the customers.

3. Visibility of the location.

4. Facility of parking.

Directly or indirectly these outlets contributes to the growth and GDP(Gross Domestic
Products) of the country as each outlets on an average gives the business of 6000-10000
rupees/week.

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Airtel Distribution Channel: 29

Retailer

Distribution Procedure and Margins:

In Urban Areas
• Airtel directly supply its products to the distributors in Urban Areas through Territory
Manager.
• Territory Manager distributes the products as per demand for individual distributors,
which is scheduled as per the target for the territory.
• Distributor distributes the products to the FOSs’. Their job is to supply those products to

29
 the Retailers.
30
• The Retailers margin is 2.75% on Lapu and Paper recharge both.

Selection of Sales Force-

They recruited separate department for sales and work of those employee is to get or generate
more and more revenue for organization.
Training of Sales Force –
After Recruitment they are trained for effective working and in this training period they
are guided employee. How, when, where, what and to whom they can sale their product.
Motivating of sales force –
If because of some reason any employee is not able to do their best performance in that case
rather than any action they use motivation as a tool for increasing morale of that employee.
Controlling of sales Force –
They also control the sales force because they know the importance of control system in
organization. They are using these entire four step for decide their sales force and each step
30
they also check are they doing right things or not and if the thing changes are needed than
31
they revised whole process again.
That’s why we can see the difference between Airtel sales growth and other challenger and
follower.
Sales Force Automation-
A sale force automation solution (SFA) is a system that automatically records all the stages in
a sales process. This includes a contact management system which tracks all contact that has
been made with a given customer, the purpose of the contact, and any follow up that might be
required.
What to get-
Ensures that your sales effort doesn’t get duplicated thereby eliminating the risk of irate
customers. Sales lead tracking system creates a list of potential customers or customers of
related products, through paid phone lists. Fully integrated in all departments that deal with
customer service management.
How it benefits Airtel sales team-
For your business: your sales team can approach the market in an organized and efficient
manner.
For your managers: now monitor the performance of your work force, solve potential
problems and make your people more proactive.
For your sales teams: now it’s easier to close a deal by keeping a track of your orders,
proposals and clients.

THREE TYPES OF SALES:

1. Primary Sales - Organisation to Distribution of Prepaid, Postpaid Cards, Coupons, easy

recharge etc.

2. Secondary Sales - Distributor to Retailers

3. Tertiary Sales - Retailer to Customer

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PROCEDURE OF ACTIVATION OF PREPAID CONNECTION:
32

Dealer (Confirms on 570)

FOS (Saw that the form is completed and has Accessory papers

Distributor (Activates the card)

PROCEDURE OF ACTIVATION OF POSTPAID CONNECTION:

Dealer (Collects of Cash and facilitates in Competition)

FOS (Collects the Form)

Distributor (Activates the card)

As now a days in the market the distributors are providing retailers activated SIMs. If any
new person will subscribe the to a new connection the retailer provides him the way to
activate the sim. The new subscriber can only get this sim after paying the cost of sim,
providing necessary and original documents required and after getting the confidence of the
retailer that the provided documents are valid. After the new subscriber bought the sim, 1st
that person has to insert the sim in the mobile phone and then has to call 123, (Airtel
customer servicenumber (toll free)). Then the sim will be automatically activated and will be
ready to use.

Necessary Documents for New Subscription:

1. The new subscriber must have to be an Indian citizen.
2. He/She has to give one latest his/her photo.
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3. Any valid document showing his nativity or residential proofs like Passport, DL, Voter ID
33
home electricity or phone bill(land line, BSNL preferred) etc.

Actions on Fake documents:

1. If the documents are known to be fake or doubtful then the connection will be cutoff
immediately.
2. Legal action can be taken against the retailer or the distributor for this negligence.

SWOT ANALYSIS
Strengths
1. Bharti Airtel has more than 100 million customers. It is the largest cellular provider in
India, and also supplies broadband and telephone services - as well as many other
telecommunications services to both domestic and corporate customers.
2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with
whom they hold a strategic alliance. This means that the business has access to knowledge
and technology from other parts of the telecommunications world.
3. The company has covered the entire Indian nation with its network. This has underpinned
its large and rising customer base.

Weaknesses
1. Until recently Airtel did not own its own towers, which was a particular strength of some
of its competitors such as Hutchison Essar. Towers are important if your company wishes to
provide wide coverage nationally.
2. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the
lack of any real emerging market investment opportunity for the business once the Indian
market has become mature.

33
Opportunities
34
1. The company possesses a customized version of the Google search engine which will
enhance broadband services to customers. The tie-up with Google can only enhance the
Airtel brand, and also provides advertising opportunities in Indian for Google.
2. Global telecommunications and new technology brands see Airtel as a key strategic player
in the Indian market. The new iPhone launched in India via an Airtel distributorship.
Another strategic partnership is held with Blackberry Wireless Solutions.
3. Despite being forced to outsource much of its technical operations in the early days, this
allowed Airtel to work from its own blank sheet of paper, and to question industry
approaches and 30 practices - for example replacing the Revenue-Per-Customer model with a
Revenue-Per-Minute model which is better suited to India, as the company moved into small
and remote villages and towns.
4. The company is investing in its operation in 120,000 to 160,000 small villages every year.
It sees that less well-off consumers may only be able to afford a few tens of Rupees per call,
and also so that the business benefits are scalable - using its 'Matchbox' strategy.
5. Bharti Airtel has embarked on another joint venture with Vodafone Essar and Idea Cellular
to create a new independent tower company called Indus Towers. This new business will
control more than 60% of India's network towers. IPTV is another potential new service that
could underpin the company's long-term strategy.

Threats
1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a
5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival
Hutchison Essar. Knowledge and technology previously available to Airtel now moves into
the hands of one of its competitors.
2. The quickly changing pace of the global telecommunications industry could tempt Airtel to
go along the acquisition trail which may make it vulnerable when the world is in recession.
Perhaps this was an impact upon the decision not to proceed with talks about the potential
purchase of South Africa's MTN in May 2008 but later on it proceed further in May 2009.
3. Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.

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 MARKET ANALYSIS 35

The objectives was:

• Finding out the top (Airtel) retail outlets and also some other outlets in the prime locations

of region.

• Extracting information from them about “At what cost” they are selling Airtel sim.

• What the retailer prefers to sale (which sim they are trying to push out), by what

information providing to the customer.

These are the thing that I have to extract from the retailers. The approach towards retail out

lets to extract information.

• Directly going to the shop and asking the sales person about Airtel sim cost with life time

validity and about the tariff chart of Airtel as customer.

• Meeting the shop owner and showing them as we are students and doing a survey in

market. Through this way we extracted the information about the retailers’ preference. Got

the information on which brand the retailer is trying to push out.

• Going to the shop as a customer and asking for a brand of the sales person’s choice as I

need cheep network with more talk time.

(All the procedures are informal in nature, no prior questions were made a informal approach

was taken to get the information).

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 BUSINESS & MARKETING STRATEGIES 36

Some Marketing And Business Tools Adopted By AIRTEL As To

Promote Its Activities:

Seminars: seminars are conducted at different places by the expert time by time to

make people aware.

Publicity: publicity is done through various media.

Stalls at famous places: they conduct their stall after a particular period of time on the

famous and public place to attract them towards themselves.

DSA (Direct Sales Agency)

Print media

Hoarding

Banners

Advertisement

Leaflets

Follow ups

By KNOP

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 MOBILE STRATEGY 37

Capture maximum telecommunications revenue potential with minimum

geographicalcoverage to maximise its revenues and margins.Build high quality mobile

networks by deploying state-of-the-art technology to offer superior services.

Use the experience it has gained from operating its existing mobile networks to develop and

operate other mobile networks in India and to share the expertise across all of its existing and

new Circles.

Attract and retain high revenue generating customers by providing competitive tariffs,

offering high quality customer support, proactive retention programs and roaming packages

across all of its mobile circles.

Provide affordable tariff plans to suit each segment of the market with a view to expand the

reach, thereby increasing the mobile customer base rapidly.

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 FINDINGS 38

Airtel URO

URO – Unique Retail Outlet

Basically for providing customer services in terms of their queries to build good relation with
customers to reach a point of customer satisfaction. Building good customer relation does not
only help in expanding sales but also helps in knowing the customer better and knowing the
customer further leads to acknowledgement of tastes & preferences of the customer.

One of the various ways to reach the customer is through franchisee. It helps the customer to
be in touch with a particular business. The franchisee should be at many places to build a
strong relation with all segments of customer. It must also have many customer executives so
that there are enough people to attend all customers and time can be saved. It leads to instant
help to the consumer to be happy and satisfied and the sole purpose of marketing "Customer
Satisfaction is achieved.

OBSERVATION:

The retailers’ complaints on some areas for not getting the proper selling of the Airtel

products. For that company should make the proper strategies.

(a) The company should look the strategies of the competitive companies.

(b) The company should try its level best to keep the price low as compare to
competitors.

(c) The schemes should be updated as per the needs and occasions

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 CONCLUSION 39

“Good services is the way to retain the clients”

1. Demand in the market for Airtel sim and vouchers as the outlets agreed

maximum persons are asking for Airtel vouchers.

2. Maximum of the retailers also accepted that in market Airtel has maximum

number of subscribers.

3. Airtel is proving fewer margins compared to other network service providers

but most subscribers are attached with Airtel a biggest reason for a retail outlet

to start this business.

4. Airtel Company is trying to open more and more outlets but FSEs are not so

interested to open in a large number as their work load will be more and they

have to achieve more target.

5. In some areas there is significant number of outlets that the individuals

business is affected by this steep competition.

6. Some outlets demands electronic add board but distributors are unable to

provide in time.

7. The overall outcome depends upon the “Demand in the market for Airtel”

which is driving customers towards Airtel.

8. Maximum of retailers accepted that

39
I. Maximum numbers of working professionals are interested for Airtel.
40
II. Though market is full of business men they also keep an Airtel for their

emergency use, not a regular use.

III. Students are not showing any interested in Airtel, very few responses from

them.

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 REFERENCES 41
1. www.airtel.in
2. www.wikipedia.org
3. COAI website(Cellular Operators Association of India)
4. Google search
5. Marketing Management, 12th ed. Pearson Prentice Hall
6. Marketing Management by Philip Kotler 9th Edition
7. Harper, Douglas (2001). "Retailing and Sales".

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