DISTRIBUTION NETWORK
OF BHARTI AIRTEL
EXISTING DISTRIBUTION SYSTEM OF THE COMPANY
GENERAL TRADE
URBAN TRADE RURAL 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
• Recharge and Sim providers
• Mobile phone and accessories shops
• Kirana Shops
• Stationery shops
• Pan Shops
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers
EXISTING DISTRIBUTION SYSTEM OF THE COMPANY
MODERN TRADE
This channel consists of Airtel exclusive stores in
vicinity of malls and other popular shopping streets.
These are franchises owned by dealers who may or
may not be the same distributors. These are
primarily for customer service but also serve as one
of the channels of distribution.
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
ONLINE TRADE
This consists of company’s own website and various
other online recharge sites like Freecharge, Paytm
and so on. The online channel only does transaction
related only to recharges.
EXISTING SALES MANAGEMENT OF THE COMPANY
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
The country has been divided into 23 circles.
The categories A, B, C are decided on the basis of:
Population Density
Purchasing Power
Penetration
SALES HIERARCHY
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
Circle CEO
Director Market Operations
Sales Head
Zonal Business Managers
Zonal Sales Manager
Territory Sales Manager
Zonal Business Managers
Zonal Sales Manager
Territory Sales Manager
Zonal Business Managers
Zonal Sales Manager
Territory Sales Manager
Zonal Business Managers
Zonal Sales Manager
Territory Sales Manager
SALES HIERARCHY
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
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.
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
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
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 sim.
HOW DO THE SALES AND MANAGEMENT SYSTEM FUNCTION IN THE COMPANY
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
1.• Company appoints distributors so as to reach different retailers in a city.
2.• Distributors are appointed taking into consideration the capacity of investment, proximity to
markets, reputation in the market.
3.• Distributors appoint field sales executives on his payroll. The number of FSEs are decided
according to the number of shops in the area allotted to the distributor.
4.• The TSMs are responsible for daily dealing with the distributors and manage the distributor’s
FSEs.
5.• The TSM takes daily gate meeting with the FSEs and discusses the focus area of the day and
feedback on the previous day activities.
6.• The TSMs also ensures that the distributors perform on their KPIs and proper stock is maintained.
COMPETITOR ANALYSIS
COMPANY PARAMETER AIRTEL VODAFONE
Distribution Channel Structure
Simplified single layer structure. Distributors
hire the field sales representatives and allot them
60-70 retailers.
Super distributors - ensure that the stock of SIM
card is always available for the retailers.
Associate distributors - Sell SIM cards and data
cards to end customers through their shops in
metro cities.
Sales Channel Structure
Circle CEO looks after the entire circle
operations.
Zonal sales manager is responsible for
handling sales of a particular zone.
TSM has the main responsibility of handling
distributors.
Simplified channel structure, with the Area Sales
Manager (ASM) for 2-3 districts.
Margins to the Channel Partners
Margin to the distributor- 1.75%.
Margin to the retailer-2.5%.
Margin to the distributor- 2%.
Margin to the retailer-2.5%.
Salary Structure for the channel
partners
FSE-100% salary is paid by the distributor.
Airtel has no role in selection or payment for the
FSEs
FSE- 50% paid by Vodafone and 50% by distributor
REGIONS OF FIELD VISIT
Jail Road
Vijay Nagar
Bhawar Kuan
Treasure Island
Ticket Size
Frequency of visit of salesman
margins of competitors
Total Business per month
Margin earned by retailer
Company promotional activities
Competitor promotional activities
Once daily
Airtel: Rs 20000-25000Total: Rs 50000-55000
2.5 % on rechargeRs 5 on sim
2.5 % on rechargeRs 5 on sim
Rs 2000-5000 recharge50 sims
Rate cards pamphlets and postersPromotions on sim and recharge offers
Same
REGION: JAILROAD
Ticket Size
Frequency of visit of salesman
margins of competitors
Total Business per month
Margin earned by retailer
Company promotional activities
Competitor promotional activities
Once daily
Airtel: Rs 30000-35000Total: Rs 65000-70000
2.5 % on rechargeRs 5 on sim
2.5 % on rechargeRs 10 on sim
Rs 4000-5000 recharge100 sims
Low promotional activities, No kiosksPromotions on sim and recharge offers
Lesser than airtel
REGION: BHAWAR KUAN
Ticket Size
Frequency of visit of salesman
margins of competitors
Total Business per month
Margin earned by retailer
Company promotional activities
Competitor promotional activities
Once daily in the evening
Airtel: Rs 40000-50000Total: Rs 150000-200000
2.5 % on rechargeRs 5-10 on sim
2.5 % on rechargeRs 5-10 on sim
Rs 1500-2000 recharge10-12 sims
Low promotional activitiesPublic non responsive
Lesser than airtel
REGION: VIJAY NAGAR
Ticket Size
Frequency of visit of salesman
margins of competitors
Total Business per month
Margin earned by retailer
Company promotional activities
Competitor promotional activities
Once daily
Airtel: Rs 40000-45000Total: Rs 80000-90000
2.5 % on rechargeRs 4-5 on sim
2.5 % on rechargeRs 4 on sim
Rs 6000-7000 recharge20 sims
Moderate promotional activitiesKiosks and banners of airtel in the area
Comparable to airtel
REGION: TREASURE ISLAND
Frequency of visit of salesman
Total Business per month
Margin earned by retailer
Once in two days
Recharge: Around 250 customers per month. Average value- 150 Rs. Therefore: 250*150= 37,500 Rs
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
AIRTEL EXCLUSIVE STORES
Company Promotional Activity
Seasonal offers- Bonanza for different types of customers.
RECOMMENDATIONS
DistributorsField Sales
ExecutivesRetailers Customers
Rural Direct
Distributors
Field Sales
Executives
Rural
RetailersCustomersDistributors
Field Sales
ExecutivesRetailers Customers
Coverage on Pan shops should be increased in the
Vijay Nagar area. There were no Pan Shops selling
recharges. It will be first mover advantage for the
company.
Airtel Stores should have a “Do-it-Yourself” machine
to encourage transactions.
Partner with mobile shops in Vijay Nagar Area
The presence of the Airtel recharges in the area
around TI and Regal Square in low. Customers have
to go to jail road to get the recharges. Coverage in
this area should be increased.
There is less promotional activity in the Bhawar
Kuan area. The company should focus on activities in
this area as it is a hub of coaching institutes.
There is no proper Point of Sales display material in
the shops around the railway station area. Focus on
this aspect should be provided.
THANK YOU