DISTRIBUTION NETWORK
OF BHARTI AIRTEL
EXISTING DISTRIBUTION SYSTEM OF THE COMPANY
GENERAL TRADE
This consists of a system of distributors (Urban and Rural) who are allotted territories and service retailers who have shops
in the local market. These retailers in turn provide service to customers. Some types of shops are:
• Recharge only shops • Kirana Shops
• Recharge and Sim providers • Stationery shops
• Mobile phone and accessories shops • Pan Shops
URBAN TRADE RURAL TRADE
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers Customers
Executives Distributors Executives Retailers
EXISTING DISTRIBUTION SYSTEM OF THE COMPANY
MODERN TRADE ONLINE TRADE
This channel consists of Airtel exclusive stores in This consists of company’s own website and various
vicinity of malls and other popular shopping streets. other online recharge sites like Freecharge, Paytm
These are franchises owned by dealers who may or and so on. The online channel only does transaction
may not be the same distributors. These are related only to recharges.
primarily for customer service but also serve as one
of the channels of distribution.
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers Customers
Executives Distributors Executives Retailers
EXISTING SALES MANAGEMENT OF THE COMPANY
The country has been divided into 23 circles.
The categories A, B, C are decided on the basis of:
Population Density
Purchasing Power
Penetration
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers Customers
Executives Distributors Executives Retailers
SALES HIERARCHY
Zonal Business Zonal Sales Territory Sales
Managers Manager Manager
Circle CEO
Zonal Business Zonal Sales Territory Sales
Managers Manager Manager
Director Market
Sales Head
Operations
Zonal Business Zonal Sales Territory Sales
Managers Manager Manager
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers Customers
Executives Distributors Executives Retailers
Zonal Business Zonal Sales Territory Sales
Managers Manager Manager
SALES HIERARCHY
SALES HEAD
The sales head reports directly to the circle CEO and is responsible for formulating strategies for sales growth in the
circle.
ZBM (ZONAL BUSINESS MANGERS)
The ZBMs are responsible for sales of a zone( usually consists of 6-7 districts). From this level the execution of the
strategies start. The ZBMs report to the Sales head.
ZSM ( ZONAL SALES MANAGER)
The ZSMs look after sales in individual districts. They report to the ZBM.
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers Customers
Executives Distributors Executives Retailers
TSM (TERRITORY SALES MANAGER)
The TSMs handle individual distributors and support the distributors in their work. They manage the distributor’s
sales staff (Field Sales Executives) on a daily basis and are responsible for driving daily sales of the distributors.
MARGIN
Margins Structure for Distributors
The company transfers 104.25% of the value which the distributor credits to
the company. The distributor passes 2.5% to the retailer.
Rs. 10-12 per sim
Margins Structure for Retailers
2.5% in recharge
5-10 Rs per
Distributors sim.
Field Sales
Retailers Customers
Rural Direct Field Sales Rural
Customers
Executives Distributors Executives Retailers
HOW DO THE SALES AND MANAGEMENT SYSTEM FUNCTION IN THE COMPANY
• Company appoints distributors so as to reach different retailers in a city.
1.
• Distributors are appointed taking into consideration the capacity of investment, proximity to
2. markets, reputation in the market.
• Distributors appoint field sales executives on his payroll. The number of FSEs are decided
3. according to the number of shops in the area allotted to the distributor.
• The TSMs are responsible for daily dealing with the distributors and manage the distributor’s
4. FSEs.
• The TSM takes daily gate meeting with the FSEs and discusses the focus area of the day and
feedback on
5. Distributors the
Field previous day activities.Customers
Sales Rural Direct Field Sales Rural
Retailers Customers Customers
Executives Distributors Executives Retailers
• The TSMs also ensures that the distributors perform on their KPIs and proper stock is maintained.
6.
COMPETITOR ANALYSIS
COMPANY PARAMETER AIRTEL VODAFONE
Super distributors - ensure that the stock of SIM
Simplified single layer structure. Distributors
card is always available for the retailers.
Distribution Channel Structure hire the field sales representatives and allot them
Associate distributors - Sell SIM cards and data
60-70 retailers.
cards to end customers through their shops in
metro cities.
Circle CEO looks after the entire circle
operations.
Zonal sales manager is responsible for Simplified channel structure, with the Area Sales
Sales Channel Structure
handling sales of a particular zone. Manager (ASM) for 2-3 districts.
TSM has the main responsibility of handling
distributors.
Margin to the distributor- 1.75%. Margin to the distributor- 2%.
Margins to the Channel Partners Margin to the retailer-2.5%. Margin to the retailer-2.5%.
FSE-100% salary is paid by the distributor.
Salary Structure for the channel
Airtel has no role in selection or payment for the FSE- 50% paid by Vodafone and 50% by distributor
partners
FSEs
REGIONS OF FIELD VISIT
Vijay Nagar
Jail Road
Bhawar Kuan
Treasure Island
REGION: JAILROAD
Frequency of visit of salesman
Once daily
Total Business per month
Airtel: Rs 20000-25000
Total: Rs 50000-55000
Margin earned by retailer
2.5 % on recharge
Rs 5 on sim
margins of competitors
2.5 % on recharge
Rs 5 on sim
Ticket Size
Rs 2000-5000 recharge
50 sims
Company promotional activities
Rate cards pamphlets and posters
Promotions on sim and recharge offers
Competitor promotional activities
Same
REGION: BHAWAR KUAN
Frequency of visit of salesman
Once daily
Total Business per month
Airtel: Rs 30000-35000
Total: Rs 65000-70000
Margin earned by retailer
2.5 % on recharge
Rs 5 on sim
margins of competitors
2.5 % on recharge
Rs 10 on sim
Ticket Size
Rs 4000-5000 recharge
100 sims
Company promotional activities
Low promotional activities, No kiosks
Promotions on sim and recharge offers
Competitor promotional activities
Lesser than airtel
REGION: VIJAY NAGAR
Frequency of visit of salesman
Once daily in the evening
Total Business per month
Airtel: Rs 40000-50000
Total: Rs 150000-200000
Margin earned by retailer
2.5 % on recharge
Rs 5-10 on sim
margins of competitors
2.5 % on recharge
Rs 5-10 on sim
Ticket Size
Rs 1500-2000 recharge
10-12 sims
Company promotional activities
Low promotional activities
Public non responsive
Competitor promotional activities
Lesser than airtel
REGION: TREASURE ISLAND
Frequency of visit of salesman
Once daily
Total Business per month
Airtel: Rs 40000-45000
Total: Rs 80000-90000
Margin earned by retailer
2.5 % on recharge
Rs 4-5 on sim
margins of competitors
2.5 % on recharge
Rs 4 on sim
Ticket Size
Rs 6000-7000 recharge
20 sims
Company promotional activities
Moderate promotional activities
Kiosks and banners of airtel in the area
Competitor promotional activities
Comparable to airtel
AIRTEL EXCLUSIVE STORES
Frequency of visit of salesman
Once in two days
Total Business per month
Recharge: Around 250 customers per month.
Average value- 150 Rs. Therefore:
250*150= 37,500 Rs
Margin earned by retailer
E- Recharge: Varies according to value of
recharge. Ex- Rs 10 on 298 Rs. Recharge.
For lower amount recharges, the margin
is calculated by clubbing all the
transactions.
Sim: Rs. 5- 10 payout per sim
Company Promotional Activity
Seasonal offers- Bonanza for different
types of customers.
RECOMMENDATIONS
Coverage on Pan shops should be increased in the The presence of the Airtel recharges in the area
Vijay Nagar area. There were no Pan Shops selling around TI and Regal Square in low. Customers have
recharges. It will be first mover advantage for the to go to jail road to get the recharges. Coverage in
company. this area should be increased.
Airtel Stores should have a “Do-it-Yourself” machine There is less promotional activity in the Bhawar
to encourage transactions. Kuan area. The company should focus on activities in
this area as it is a hub of coaching institutes.
Partner with mobile shops in Vijay Nagar Area
There is no proper Point of Sales display material in
the shops around the railway station area. Focus on
Field Sales Rural Direct Field Sales Rural
Distributors Retailers Customers this aspect should be provided. Customers
Executives Distributors Executives Retailers
THANK YOU
