Distribution Channel Of Airtel Prepaid
PGDM, Section – A, Batch: 2011 – 2013, Term – III
Submitted to: Prof. S. Panda
Avik Mitra (11DM010)
Arnab Mondal (11DM027)
Ayan Mukherjee (11DM53)
We are immensely thankful to Prof. S. Panda for giving us this project and to Mr. S. K. Pattnaik, the distributor’s manager at Hindusthan Agencies, Rasulgarh and Mr. Kritinath Tripathy, Marketing Manager, Bharti Airtel for sharing their valuable information with us and helping us obtain an insight about the intricacies involved in the distribution channel of Airtel Prepiad.
Airtel is the market leader in the Indian telecom Market with a revenue market share of 30.8% as on August, 2011. It is India’s first private telecom services provider covering all the telecom circles. Airtel prepaid’s distribution network is very similar to that of an FMCG. There are two type of markets: A) urban market B) rural market. The distribution for these two markets is totally different. Factors for deciding the distributor as told to us by Mr. Kritinath Tripathy, Marketing Manager, Bahrti Airtel at Infocity, Patia, the following are considered. 1) Population:- Population is one of the most important factor for selecting the urban distributor because if there is more number of subscriber of Airtel then there is more number of distributor is required. 2) No of retail outlets present in the area:- Airtel is trying to cover 1000 retail outlets by one distributor so the number of retail outlets is very much important. 3) BTS tower:- In area if the number of subscribers is more then for providing the proper connection the BTS tower is required. So if the subscriber is more then more number of distributor is required. 4) Revenue:- Revenue is one of the most important factor for selecting the number of distributor. 5) Geographical situation of market:- Geographical location of the market is important for selecting the distributor. There is also few criteria for selecting the distributor. For urban distributor minimum number of 25cr turnover is required and for rural super stockiest 10cr of turnover is required. In Bhubaneswar there are 30 and 2 BTS tower is in Puri.
In Bhubaneswar there is one operational head under whom there are 4 ZBM; under one ZBM there are four ZSM and under him there are territory managers and rural territory managers.
The Distribution Channel
In order to have an understanding of how things work in the distribution channel in the telecom sector, for Airtel in particular, our area of study being Bhubaneswar. We had a talk with the manager of the distributor Mr. S. K. Pattnaik of Hindusthan Agencies at Rasulgarh where he looks after the entire proceedings. Following are our findings in this regard. Airtel has divided its distribution network into two heads namely – * Second Degree Distribution Network:
The second degree network includes the urban distributors, who collect the items (RCVs, Dongles, LAPU SIMs, Activation kit for Dth etc.) from Airtel and distribute them to the retailers. These distributors also transfer easy balance through FOS (Field Officer Sales) to the retailer according to the demand. Since this set up includes only two channel members, it is regarded as 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. Rationale: This type of distribution network suits the urban areas due to dense population and high demands for Airtel’s products and services, the quick supply of which becomes very important for the company. As the Urban Distributor gets the products directly from Airtel, therefore, the products, services and promotional materials can reach the retailers in shorter span of time.
* Third Degree Distribution Network:
This network includes Rural Supers...