Airtel Distribution Strategy

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Distribution Strategy
Bharti Airtel

This document is a study of the existing distribution strategy and distribution channel of the mobile recharge coupons followed by Bharti Airtel and proposes new product to be launched and its respective distribution structure

Group - 10
Ankit Bhardwaj - 11PGDM071
Mohit Khera - 11PGDM082
Nitin Khanna - 11PGDM091

2012
Group 10
International Management Institute
12/16/2012

Table of Contents
Sales & Distribution Strategies3
Introduction3
Second degree distribution network3
Third degree distribution network4
Reasons for having two degree and three degree networks5
Areas covered for collecting information5
Sales Force5
Responsibilities of FOS5
Urban Distributors6
Responsibilities of Urban Distributors6
Rural Supers6
Responsibilities of Rural Supers7
Rural Distributors7
Retailers7
Responsibilities of retailers7
Company support and monitoring of sales and distribution networks8
Responsibilities of CSD9
New Offerings and Distribution Channels10
Urban channel10
Rural channel10
Main issues/ challenges faced by the company13

Sales & Distribution Strategies
Introduction
Airtel is the Market leader in Indian telecom market with a market share of all India mobile subscribers at 23.4%. It is India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Airtel has set-up a multi-regional marketing and sales team that is responsible for building two types of sales channels – 1. Direct sales channels

2. Indirect sales channels
Airtel has a network of personnel who take care of marketing and sales plans of their regions by capitalizing on the opportunities in their geographic region. These teams build both direct customer relationships as well as indirect channels (through handset manufacturer, Network Solutions Provider, etc.) Urban Distributors

AIRTEL
The distribution strategy of Airtel includes second and third degree distribution network. As shown below, Airtel makes transactions only with Urban Distributors (UDs) and Rural Supers (RS). These transactions generally are invoices of SIMs, GSM Pay Phones etc.

Rural Supers

Retailers
Rural Distributors

Retailers

Second degree distribution network
 The second degree network includes the urban distributors, who collect the above items from Airtel and distribute them to the retailers. These distributors also transfer easy balance through FOS (Field Officer Sales) SIM to the retailer, according to his/ her demand. Since this set up includes only two channelmembers, it is a Second Degree network and is suitable for catering to the need of urban areas, where reaching the retailers is easier due to well established road and transportation facilities. Third degree distribution network

 This network includes Rural Supers (RS) who distribute the above items to Rural Distributors (RDs). In this case, the RS transfers easy balance into Rural Distributors. Rural Distributors then take the items to the retailers and transfer easy balance through FOS SIM to the retailer, according to his/ her demand, from easy balance of Distributor SIM. This three level distribution is makes it easier for the company to reach the sub urban and rural areas, where retailers are few and widely located. Although we found no of these entities very less.

Reasons for having two degree and three degree networks
• Second Degree network suits the urban areas well since these areas areusually densely populated, and have very high demands for Airtel’sproducts and services. It becomes important for the company to supply the products and services as quickly as possible. As the distributor (UD) gets the products directly from Airtel, therefore, the products, services and promotional materials can reach...
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