Distribution session

Vodafone Open Office

Mumbai, India
Sunil Sood, Director Business Operations West and South
Sanjoy Mukerji, Director Business Operations North and East
30 November - 1 December 2011

India scale
Country

Population (m)

China

1323

India

1180

United States

302

Indonesia

245

Uttar Pradesh

191

Brazil

189

Pakistan

165

Bangladesh

147

Russia

143

Nigeria

131

Japan

127

Bihar

121

Maharashtra

108

Mexico

107

Philippines

89

Madhya Pradesh

88

West Bengal

88

Vietnam

84

Germany

82

Egypt

79

Ethiopia

75

Spans 3.3m sq. km

across 35 states and union
territories ~ 6X of France

State of Uttar Pradesh

would be the 5th largest
country in the world
Urban population 28%
of total1
Per capita income 2010-11
US$11502

1 - Census 2001, Ministry of Home Affairs

2 - CSO, India

India: Telecom market structure

3

15

Ave. ARPU
(US$)1

Mobile penetration1

Ave. RPM
(US$)1

3.5

70%

0.01

3 Metro circles2
Large cities; high purchasing power, high population density,
cosmopolitan
160% penetration

5 A circles

Delhi

States with highest earning power

84% penetration

8 B circles
Kolkata
Mumbai

Majority of population in rural, low infrastructure development

63% penetration

6 C circles
Chennai

1. Bank of America Merrill Lynch Global Wireless Matrix 28 September 2011

2. Chennai and Tamil Nadu treated as one circle as per TRAI reports

Relatively lower earning power, limited infrastructure

50% penetration

Zonal operation structure

Circle

Zonal Head

All Channels

Marketing

First level of
General management

Customer
Service

Credit &
Collection

Proximity to the customer

Channel specialist
Uniform experience
Speed to market
Empowered service touch points
4

Network

Channel structures
Vodafone
Indirect Channel

Exclusive Retail

2 tiered distribution
model

Exclusive

For mass market

reach

Primary focus on
postpaid, terminals
& data

Focused on prepaid

Sales and service

Direct Channels

Modern Trade

Selling directly to the

end customer

Large format outlets

/ chain stores

Focused on postpaid

Future growth driver

for Data & 3G

Multi product channel strategy for uniform customer experience

B2B Business
Enterprise
VGE
National A/C
SME
Includes fixed line
and data

Indirect channel challenges

593k villages, 92% have population of less than 10k1
66% of population in villages of less than 10k1
Ratio of Urban to Rural per capita is 2.72
Tele-density - Urban 163%, Rural 35%3
Predominantly prepaid market
Unorganised retail

1. Census 2001, Ministry of Home Affairs

2. Central statistical organisation estimates 2004-05
3. TRAI performance indicator report AMJ-11

Indirect channel (Tier 1) urban

Key Metrics

Vodafone

Distributor

Distributor Sales
Executives

Retailer

Unique electronic Top up outlets 1.3 outlets per 1,000 population

Unique activating outlets - 60% of
electronic top up outlets
Daily activating outlets - 21% of
activating outlets
Data selling outlets - 40% of
electronic top up outlet
Distributor Sales Executives - 1 for
every 60 outlets

Retailer Retailer
Retailer
SIM, recharge vouchers
and e-top up

Metrics used for target setting

and performance measurement

Sell SIMs and Recharge

Urban as defined by census

Distribution by trained distributor manpower as per company determined norms

Indirect channel (Tier 2) rural

Direct distribution to
village clusters
within 20kms

20KM

2 Tiered distribution sales and service model to

increase presence and relevance
Associate distributors appointed to cater to
rural population, responsible for 4 to 7 cell-sites
in designated area
Associate distributor also responsible for
providing service
Advantage of Associate Distributor
Son of soil, familiarity with local environment
Low cost, viable and scalable

Customer service closer to the rural customer

8

Main
Town

40KM

35KM

Cluster of
villages
serviced by
Associate
distributor

Cluster of
villages
serviced by
Associate
distributor

Indirect channel (Tier 2) rural

Cell-site & distribution planned using
geographic information system mapping.
Census population superimposed

2443
1339

All villages listed within cell-site coverage

2263

1951
3524

766

5 km

2443
1126

Cell-site location
9

Population

Distribution norm for outlets and extraction

fixed for sales force by village

Indirect channel reach

Indirect Channel partners

Multi Brand outlet reach

1,400,000

9,000

1,200,000

8,000
7,000

1,000,000

6,000
800,000

5,000

600,000

4,000
3,000

400,000

MAR 11

EtopUp outlet

23.5K channel partner sales force serving 1.25 million multi brand outlets in 360K town and villages

10

1,250,608

867,267

1,098,465

MAR 10

778,730

Activation Outlet

963,033

MAR 09

680,052

MAR 08

740,718

415,471

Sep 11

200,000

434,421

Associate Distributors

8,454

MAR 11

3,859

7,913

MAR 10

3,726

Distributors

5,646

MAR 09

3,619

3,293

MAR 08

3,335

1,519

2,321

1,000

346,384

2,000

Sep 11

Exclusive retail
Vodafone exclusive retail

11

Vodafone Store

Vodafone Mini Store

Urban & Semi Urban

Vodafone Mini Store Rural

Experience

Convenience

Service & Trust

Service advantage
Home of the Smartphone

Entrepreneurial model
Low cost

Differentiator in rural
market Face of brand

Exclusive retail footprint

465

681

348

217

369

Vodafone Mini Store

(Urban & Rural)

7,125

1,151

2,497

1,827

1,105

Total

7,590

1,832

2,845

2,044

1,474

Vodafone Stores

The widest presence of exclusive retail in the country, servicing over a million walk-ins, selling 33%
of total postpaid, and 8% of prepaid acquisition every month

12

Direct channels
Direct Sales Agent
Feet on street, cold calling

Tele-calling

Super Call Centre

Out bound tele-calling setup,

with feet on street fulfillment
model

Call transfer from inbound

call center, Upselling to
existing customer base

Analytics based data

provided- pre to post
migration

Immediate transfer to a DSA

tele-calling set up

Channel managed by the Business Partner under supervision of the Vodafone Channel Manager

13

Geographic identification for opening new outlets

Geo coordinate mapping of

all Retailers

Capture on an Excel Sheet

Upload on a map tool

Appoint new
retailers
Identify Visible Gaps

Bring Vodafone Closer to the customers

Focused approach to outlet expansion

14

Multi brand outlet & customer engagement: Mera(My) offer

Personalised monthly activation target
based on past 4 months performance
Customised incentives based on quality
and ARPU

Personalised recharge offer based on

last month performance
Customised incentives based on target
volume

Customised offer for customer and retailer

Activation

Recharge

Involvement of trade in upselling

and retention

Booster

Entertainment

Dial in #121, the offer is played based on

previous behaviour

Incentivising improvement
Build efficiency in target setting

Weekly booster on
Minimum Daily Activations
Bonus Card Sale

15

Special FREE VAS for retailer to drive Dial Ins

Jokes and Radio
Voice Chats
Quiz

Effective utilisation of acquisition costs

Multi brand outlet segmentation quality focus

Retailers categorised based on their quality
of acquisition and revenue

High quality
Low revenue

Revenue

High quality
High revenue

Low quality
Low revenue

Low quality
High revenue
L

Quality

16

Quality is determined by the retention and

the ARPU of the customer acquired by the
retailer
Basis their position on the grid, relevant
decisions are taken
Payout for acquisition
Loyalty program
Differentiated service

Capability - empowerment of sales

1.
2.
3.
4.

Retailer Name
Town Name
FOS/DSE name
Dist Name
FTD, MTD and last MTD
Gross UB last MTD:- 25
Gross UB MTD:- 15
Etopup tertiary last month:
12000
Etopup tertiary this month:
6000
Data pack sold

17

Vodafone
Passbook
May11,Etop Com 1796,OTF
12513, QPS Early Bird 2520,
Apr
QPS
17520,
MNP
Recharge Sch 150, MNP Sch 0,
MNP
*121
Com
220,
Anya12895,
Kul
47614.
Hamara wada kamai sabse
JYADA

Pre sales call preparation

Cell-site info

Retail delight

Current activation target vs.

Actual, vs. LMTD
Etop up balance
Data packs sold
Retail segment

Performance in a town/village
cluster
Used for acquisition cost planning
Relative position to competition
and action planning to improve
share-customer & acquisition

Settlement statement with

retailer
All details can be accessed
by a pull sms

Analytics - cell-site intelligence approach

Cell-site treated like a factory

Platinum
Gold
Silver
Bronze

Mar-10
6
11
10
5

Oct-10
6
15
9
2

Jun-11
6
17
7
2

Rajasthan District Map

Ganganagar
Hanumangarh

All business metrics measured at cell-site level

Information extracted for every cell-site

Churu

Bikaner

Jhunjhunu

Sikar

customer market share

Jaisalmer

Nagaur

traffic patterns (STD, ISD, On net, local)

VAS

Agglomeration of information on geographic

/AD/Distributor/Zonal basis

Bharatpur

Jodhpur

Jaipur

acquisition market share

quality of subs

Alwar

Ajmer
Barmer

Pali
Jalore
Sirohi

Bhilwara
Rajsamand
Chittaurgarh

Udaipur

Tonk

Dausa
Sawai

Bundi
Kota

Baran

Jhalawar

Dungarpur
Banswara

Relative position for developing strategy for;

acquisition, brand activity etc.

18

Karauli

Dhaulpur

Vodafone Indias unique distribution capabilities

Zonal structure
Associate distributor model

Exclusive rural retail-mini stores

Management information tools at the individual POS level
Cellsite-based analysis and geo mapping

Best practice sharing between circles

Effective and efficient implementation engine

19