Research report on comparative analysis of sales and distribution between airtel & vodaphone

PROJECT TITLECOMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION BETWEEN VODAFONE AND AIRTELPROJECT GUIDEProf. MANINDER SINGHDate of Submission___/___/______GROUP NO.E 1137GROUP MEMBERSAbhishek MishraAnshul BharshamNaveen RastogiRohit YadavShailesh YadavTable of Content1. Executive Summary 2. Acknowledgement 3. Methodology 4. Indian Telecom Market5. Sector Outlook6. Company Background 7. Distribution Network8. Selection of Dealers9. Service Network10. Company Background(Hutch)11. Distribution Network12. Selection Of Dealers13. Service Network14. Questionnaires15. Data analysis Executive summaryThis project aims to study the distribution channels, sales network and service patterns of the telecom sector through an analytical and comparative study of two leading companies- Bharti Airtel Limited. & Vodafone Ltd. The project also tries to bring out the shortcomings, if any, in the present system and thus recommends suggestions to improve the same. The project also gives insights into the various financial terms, norms of the sales and service departments as per the guidelines of the telecom industry.The project was designed after detailed discussion with the company officials on three parameters i.e. distribution network, service network and sales functioning. The project also includes the insights given by the dealers and officials of the company. Firstly, the project discusses the distribution network of the two companies and the functions carried out by the channel members. Bharti Airtel Limited being the largest services provider in India definitely has a wider reach and more number of dealers than vodafone.The project also covers the financial terms of the company with the dealers and that of the dealers with the customers.Secondly, the project discusses the sales functioning of the two companies, which includes aspects such as the hierarchy of the sales department prevalent in the company; the responsibilities and functions of the sales force, their performance appraisal structure etc.Finally the project covers the service network of the two companies which deals with the after sale services and their effectiveness provided by both the companies and various complaints and queries are handled by them. AcknowledgementsWe are very thankful to the entire dealer, service, and sales network of Bharti Airtel Limited and Vodafone Limited for their cooperation, without which completion of this project would not have been possible.We are extremely grateful to for sharing with us all the details of the project and providing us with valuable insights about sales, distribution & servicing function. We would like to thank them for the patience shown by them and being of such a great help to all our queries.We would also like to express our gratitude towards our professors Maninder Singh, for giving us an opportunity to do this project on sales and distribution and for being the guiding light through the completion of this project.MethodologyThe objective of this project on sales and distribution is to do an analytical and comparative study of the sales, service and distribution function of two players from the chosen business sector.The business sector chosen for this purpose is the fast growing telecom sector, and the players chosen for study from this sector are:Bharti Airtel Limited Vodafone LimitedINFORMATION SOURCESPRIMARY DATA SOURCES- VODAFONE, FRANCHISEE VODAFONE AUTHORISED DEALERS  BHARTI AIRTEL LIMITED – Territory Sales Manager AIRTEL AUTHORISED DEALERS, FRANCHISEESECONDARY DATA SOURCES- THE INTERNETwww.google.comwww.askjeeves.comwww.indiainfoline.comwww.snowcem.comwww.airtel.comDATA COLLECTION TOOLS Interviews & Discussions with the company officials, dealers and Sales people. Questionnaires were used to record data.LIMITATIONS: It was difficult to ask for time required for a detailed discussion on the questionnaire & therefore several aspects of the questionnaire were answered briefly.The company officials did not divulge details about competitive sales policies, strategies & certain financial terms with dealers as they find it to be a confidential piece of information of the company.Indian Telecom Market SIZE• India is the fifth largest telecom services market in the world; $17.8 billion revenues in FY 2005• Industry grew by about 36% in FY 2005 over FY 2004• The Indian telecom market size of over $8.3 billion is expected to treble itself by year 2011-2012, according to Ernst & Young. "The Indian telecom market size of over $8.3 billion is expected to treble itself by financial year 2012. Thus there is a significant opportunity for telecom players.• Telecom market has grown at about 25% p.a. over the last 5 years• Wireless segment subscriber base grew at 85% p.a.: fixed line segment at about 10% p.a.STRUCTURE• The Indian telecom market has both public and private sector companies participating:• Public sector has over 60% market share, down from 90% in 2000• Private companies have added subscribers at a CAGR of 192% since 2000• Mobile operators have deployed both CDMA ( 16 million users) and GSM (55 million users) wireless networks• Value added service features constitute 10% of revenue today (2 % in 2001)POLICY• 74% to 100% FDI permitted for various telecom services• FIPB approval required for foreign investment exceeding 49% in all telecom services• 100% FDI permitted in telecom equipment manufacturing• India has a telecom policy aims to encourage private and foreign investment , Highlights are• An independent regulator – the Telecom Regulatory Authority of India (TRAI)• Revenue-share model for license issued by the Government for telecom services in India. Unified access licenses are available for providing telecom services on a pan-India basis• Planned opening up of National Long Distance (NLD), International Long Distance (ILD) and other value added services. COMPANY SERVICESINVESTORCellulaBasiNLD ILDrc1.Bharti TeleventuresYes Yes Yes Yes Vodafone, Singapore Telecom, Warburg Pincus2.Reliance InfocommYes Yes Yes Yes Reliance Group3.Tata IndicomYesYesYesYes Tata Group4.BSNLYesYesYesGovernment of India 5. VodafoneYesVodafone Whampoa, Essar Group6. Idea CellularYesAT&T, Tata Group,Birla GroupNote: NLD-National Long Distance ILD-International Long Distance Source: TRAI, DOT, TSMG AnalysisSector OutlookOUTLOOK• India expected to be among the fastest growing telecom markets in the world• Projected growth of 30-40% p.a. to reach 250 million subscribers by 2009-2010• Over 3 million new users are added every month – mostly in wirelessPOTENTIAL1. Favorable demographics and socio economic factors leading to high growth:• Growth of disposable income combined with changes in lifestyle• Increasing affordability-low tariffs, easy payments plans and handset financing• Increased coverage and availability of mobile services2. Investment opportunity of $22 billion across many years:• Telecom Devices and Software for Internet, Broadband and Direct To Home Services. Set Top boxes, Gateway exchange, Modem, Mobile handsets and consumer premise equipments, Gaming Devices, EPABX, Telecom Software• Telecom Services for voice and data via a range of technologies• Applications and Content development ranging from gaming to education• Nokia, Electeq, Alcatel, LG, Ericsson are all investing in India.SECONDARY DATA: www.dotindia.com, www.trai.gov.inDocument Outline

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