1

SUMMER INTERNSHIP PROJECT REPORT

PGDBM

2009-2011

Corporate Guide

Mr. Bablu Singh.

Submitted By

Sapan Kumar Das.

Integral Institute of Advanced Management.

Visakhapatnam-530017

Dhanbad page

1

ACKNOWLEDGEMENTThis report bears the imprint of many people. Right from the experienced staff of Idea Cellular Ltd, to the staff of Integral Institute of Advanced Management, Visakhapatnam without whose support and guidance I would have not got the unique opportunity to successfully complete my internship in this esteemed organization.

I would like to thank Mr. Jyoti Kumar and Mr.Pankaj Verma , who allow me to do this project in Idea Cellular Ltd successfully.

I take this opportunity to express my deep gratitude to all the employees of , Idea , Dhanbad. Also I am indebted for the rich guidance, knowledge and suggestions provided by my guide, Mr. Bablu Singh who took sincere efforts and illustrated the Marketing Concept and Distribution Channel in Idea Cellular Ltd, with their vast knowledge in the field, which helped me in carrying out my internship.

I also would like to thank Mr. Tapas Majumdar and Mr. Anoop Kumar. who help me in doing the project successfully.

Last but not least, I also thank all those people whom I met in the industry during my internship and helped me to accomplish my assignments in the most efficient and effective manner.

Dhanbad page

1

Place : Dhanbad

Table of content

1) Objective of the project………………....................................5

2) Overview of telecom industry………………………………6

Telecom Industry in India………………………………6 History of Indian Telecommunications…………………6-8 Company users ………………………………………… 9 Market Share of the Telecom Company in India………10 Subscribers ………………………………………………11

3) Introduction of Idea Cellular…………………………………12

Introduction ………………………………………………….12-13 Our Service Areas ……………………………………………13 Established Service Areas ……………………………………13 New Service Areas ……………………………………………14 Holding …………………………………………………………15 Mission …………………………………………………………16

4.) Key people …………………………………………………………16-18

Board of Directors Corporate Leadership Team Circle Heads Brand Information

5.) Our Partners ……………………………………………………..18-19

Brand Idea ……………………………………………………………19

Brand Mission………………………………………………………...20

Brand Initiatives …………………………………………………..…20

6.) Research Methodology……………………………………………..22

Dhanbad page

1

Definition of Research …………………………………..23 Sample size ………………………………………………23 Types and Techniques ………………………………..…24 Tools used …………………………………………….….24 Limitation of the study ………………………………….25

7.) Data Analysis & Interpretation……………………………26

8.)Questionnaires for the customer…………………… .…….26-32

9.) Telecom Market Share in Dhanbad……………………33-35

10.) Distribution channel of idea……………………………35

Distribution Strategy………………………………36-37

Selecting members within a channel……………….38-39

Motivating Channel Members ………………………39-40

Sales Organization structure …………………………41

Distribution channel of idea in Dhanbad……………..42

11.) Channel Management……………………………………42-43

12.) Process started …………………………………………43

Customer Interaction………………………………….44

13.) Observation and Finding…………………………..45

Conclusion ……………………………………………47

Suggestions …………………………………………..47 Bibliography…………………………………………….….48

Dhanbad page

1

Objective of the project

Objective of the project

1. To find out the perception of Retailer towards incentive.

2. To find out the telecom market share of different companies in

Dhanbad.

3. To find out the Retailer satisfaction towards the different plans and

offers by the company.

4. To find out the competitor of Idea in Dhanbad.

Dhanbad page

1

Overview of telecom industry

Telecom Industry in India

The telecom industry is one of the fastest growing industries in India. India has nearly more than 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom Industry has the highest growth rate in the world. Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. India’s mobile phone subscriber base is growing at a rate of 82.2% . China is the biggest market in Asia Pacific. Compared to that India’s share in Asia Pacific Mobile Phone market is 6.4% . Considering the fact that India and China have almost comparable populations , India’s low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India

Dhanbad page

1

in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT ) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government’s Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state’s control.

In 1990’s telecommunications sector benefited from the general opening up of the economy. Also , examples o telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector.Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 percent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

Dhanbad page

1

India added 13.82 million new mobile subscribers in February 09, down from 15.41 million a month earlier, according to Indian telecom regulator TRAI. India’s total number of mobile subscribers rose to 376.12 million at end-February from 362.30 million at the end of January. While China added 18.55 million new mobile phone subscribers in the first two months of 2009 and total wireless subscriber base stood at 659.78 million as of end-February 2009. China Mobile subscribers sent 607.1 billion SMSs last year, up by over 100 billion from the last year, and downloaded more than 76 million full music Tracks. India’s GSM subscribers totaled 277.5 million by end-February, accounting for nearly 75% of total wireless market share. According to figures released by the Cellular Operators Association of India (COAI), GSM players added 10.84 million new subscribers in March, taking total GSM subscriptions for the fiscal year to 288.3 million. The numbers exclude subscriptions for Reliance Communications, the CDMA service provider that recently launched GSM services, because the company does not reveal GSM numbers separately. If the estimates of 2.5 million to 2.7 million GSM subscribers for Reliance Communications are added, the total monthly increase for GSM subscriptions will be 13.54 million.At this rate, India’s GSM subscriber base is growing at more than double the monthly growth rate of China, which is adding around 6 million customers every month.

The recent data released by the Telecom Regulatory Authority of India (TRAI) puts the total telecom subscriber base of India at 653.92 million by end of May 2010 increasing from 638.05 million total telephone subscribers recorded in April 2010. The growth registered accounts to be 2.49%, with the overall Tele-density in India being 55.38.

As per the data provided by the telecom operators, the mobile subscribers in the country reached 617.53 million in May 2010 marking growth of 2.71% from the April 2010. The mobile subscriber base stood at 601.22 million in April.

Dhanbad page

1

Company users

Market share and revenue

Dhanbad page

Group Company No. of Subscribers

Airtel(GSM) 13,06,19,487

Reliance (CDMA + GSM) 10,51,55,754

Vodafone Essar(GSM) 10,37,55,978

Tata (CDMA) 6,78,84,042

IDEA(GSM) 6,52,88,248

BSNL(GSM) 6,47,44,985

Aircel(GSM) 3,84,69,541

Uninor 50,21,651

MTNL(GSM) 48,17,670

MTS (CDMA) 42,15,599

Loop Mobile(GSM) 28,94,511

Stel (GSM) 11,12,391

HFCL (CDMA) 3,27,341

Etisalat (GSM) 4,990

Total (All India) 59,43,12,188

1 Dhanbad page

1 Dhanbad page

1

INTRODUCATION OF IDEA CELLULAR

Introduction :

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.

IDEA Cellular is a leading GSM mobile services operator in India with 67 million subscribers, under brand IDEA. It is a pan India integrated GSM operator covering the entire telephony landscape of the country, and has NLD and ILD operations.

A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India, in an increasingly segmented market. From basic voice & Short Message Service (SMS) services to high-end value added & GPRS services such as Blackberry, Data card, Mobile TV, Games etc - IDEA is seen as an innovative, customer focused brand.

IDEA offers affordable and world-class mobile services to varied

Dhanbad page

1

segments of mobile users. Be it high end users, or low-end, price sensitive consumers - IDEA's tariff plans are designed to suit every pocket.

 

With a vision of delighting its customers while meeting their individual communication needs anytime, anywhere, IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers are always connected while on the move, within the country or other parts of the world.

IDEA is the winner of 'The Emerging Company of the Year Award' at The Economic Times Corporate Excellence Awards 2008-09. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for "Best Billing and Customer Care Solution” for 2 consecutive years. It was awarded "Mobile Operator of the Year Award - India” for 2007 and 2008 at the Annual Asian Mobile News Awards (IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1,30,000 employees belonging to 30 nationalities. The Group has been adjudged the '6th Top Company for Leaders in Asia Pacific Region' in 2009, in a survey conducted by Hewitt Associates, in partnership with The RBL Group, and Fortune. The Group has also been rated 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

 

Service AreasThe Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India. These classifications are based principally on a Service Area's revenue generating potential.

IDEA is a pan-India operator with services being made available in all parts of the country.

The telecom service areas have been divided into Established and New

Dhanbad page

1

Service Areas.

 

Established Service AreasThe established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).

Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited.

In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002.

In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004.

 

New Service Areas

The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar & Jharkhand , Mumbai, Karnataka, Punjab, Orissa, Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata & West Bengal, and Assam & North East.

Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were acquired through the acquisition of Escotel (Escorts Telecommunications Limited).

Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was the largest Metro City launch in India. In Bihar, Idea acquired

Dhanbad page

1

500,000 subscribers in just over 100 days.

Brand Idea was launched in Karnataka and Punjab, through the acquisition of spice communication.

The company has expanded its pan-India presence through service launches in Orissa, Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata & West Bengal, and the North East states in FY10.

Holding

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter could not have more than 10% stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai when Idea filed for its license.

The Birla thus approached the DOT and sought its intervention, and the Tatas replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Novo, a company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family owned company. Currently, Birla Group holds 98.3% of the total shares of the company. Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal Pradesh and UP (East) to make itself a pan-India player. Recently, Idea got licenses to operate in Mumbai & Bihar. They are

Dhanbad page

1

awaiting the spectrum from Dot.

Our Mission

Key People

Board of Directors -

Mr. Kumar Mangalam Birla (Chairman)Smt. Rajashree Birla Mr. Sanjeev Aga (Managing Director)Mr. Arun ThiagarajanMs. Tarjani VakilMr. Mohan GyaniMr. Gian Prakash GuptaMr. R.C. BhargavaMr. P. MurariMr. Biswajit A. SubramanianDr. Rakesh JainMr. Juan Villalonga NavarroDr. Hansa Wijayasuriya (Alternate to Mr. Juan Villalonga Navarro)

Management Team -

Dhanbad page

1

Corporate Leadership Team

Mr. Sanjeev Aga, Managing DirectorMr. Akshaya Moondra, Chief Financial Officer Mr. Anil K. Tandan, Chief Technology OfficerMr. Prakash K. Paranjape, Chief Information OfficerMr. Pradeep Shrivastava, Chief Marketing OfficerMr. Navanit Narayan, Chief Service Delivery OfficerMr. Vinay K. Razdan, Chief Human Resource Officer Mr. Rajat K. Mukarji, Chief Corporate Affairs OfficerMr. Rajesh K. Srivastava, Chief Materials & Procurement OfficerMr. Ambrish Jain, Director - OperationsMr. Himanshu Kapania, Director – Operations

Circle HeadsMr. Iyer Subbaraman S., Chief Operating Officer, Andhra PradeshMr. Rajendra Chourasia, Chief Operating Officer, Madhya Pradesh & ChattisgarhMr. Virad Kaul, Chief Operating Officer, Uttar Pradesh (West), Delhi & HaryanaMr. T. G. B. Ramakrishna, Chief Operating Officer, KeralaMr. Sashi Shankar, Chief Operating Officer, MumbaiMr. P.Lakshminarayana, Chief Operating Officer, Maharashtra & GoaMr. Naozer Firoze Aibara, Chief Operating Officer, Uttar Pradesh (East) Mr. Sunil Kataria, Senior Vice President - Operations, RajasthanMr. Arul Bright, Senior Vice President - Operations, GujaratMr. M. D. Prasad, Senior Vice President - Operations, BiharMr. M. Srinivas, Senior Vice President - Operations, Tamil Nadu & ChennaiMr. Siva Ganapathi, Chief Operating Officer, KarnatakaMr. Anish Roy, Chief Operating Officer, Punjab, J&K and Himachal PradeshMr. Aloke Malik, Chief Operating Officer, East (Kolkata, Rest of Bengal, Orissa & NESA) 

Dhanbad page

1

Our Partners

IDEA welcomes all businesses and individuals interested in partnering with us to enhance and strengthen the IDEA products & services portfolio.

To explore such potential partnerships, kindly get in touch with us by submitting the Partners Form.

Some of our Technology and Content Partners:

VAS:

Onmobile Asia Pacific Ltd

Cellebrum India Ltd

Siddhivinayak Astro Services Ltd.

Kodiak Ltd

Mauj

Net4nuts India Ltd

Dhanbad page

1

Yahoo Rediff

Sify

NDTV

The brand IdeaIt is almost impossible to disintegrate brand Idea from the orporate Idea. Brand values are the company values and vise versa. Brand Vision: It goes without saying that the brand vision of idea mirrors the company’s vision. The brand mission statement is...... To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space.

IDEA - Brand Values

Innovate. Stimulate. Liberate....

It is these brand values, which have made us a formidable player in the telecom industry. Innovations that stimulate the customer and liberate him from the shackles of time and space are the core of our brand. This is what we strive for. Nothing more, nothing less, nothing else.

Brand Mission :

The India footprint IdeaAnywhere connectivity - bringing India closer.

The Technology Advantage IdeaTomorrow's technology to enrich today.

Dhanbad page

1

The Customer Focus Idea

Make a single interaction a lasting relationship. 

The Employee Focus Idea

Nurture the roots that nurture our ideas.

Brand InitiativesOur aim, through media buying and planning, is to create year round impact. With the objective of strengthening our brand, we work with strategic communication partners on campaigns like sponsorship of the Idea International Indian Film Academy awards and the television programs “Idea Rocks India”, “Idea Star Singer” and “Idea Andhra Idol”. We seek engagement with subscribers on a variety of levels, from major celebrity fashion shows to small local events timed to coincide with new product offerings.

Since August 2003, we have commissioned a Brand Track Index Study to evaluate the health of our brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of mobile users a well as those intending to purchase mobiles within the next three months. According to the study our brand is perceived as “reliable/trustworthy” and one that “offers cheaper and good promotional offers”. We have improved our rating in the Brand Track Index calculated by the study in the past year reflecting, we believe, the growing strength of our brand.

The main communication medium for the Idea brand is television, where we seek strategic Idea brand coverage in various formats. Billboards and hoardings are used as a secondary medium, customized for specific regional preferences to communicate effectively at the local level. We also use other mass communication media such as the press and radio to communicate price plans and other tactical and customer information.

All our key initiatives are subjected to a rigorous testing and launch process to ensure accountability for all advertising spend and improve the chances of success of a new product. This process is followed up with extensive briefing of call

Dhanbad page

1

center agents and sales personnel and real-time tracking of the impact of the communication and feedback from subscribers.

Dhanbad page

1

Research Methodology

Definition of Research :

The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within

Dhanbad page

1

specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. The characteristics of research presented below will be examined in greater details later are:

Systematic problem solving which identifies variables and tests

relationships between them,

Collecting, organizing and evaluating data. Logical, so procedures can be duplicated or understood by others Empirical, so decisions are based on data collected Reductive, so it investigates a small sample which can be generalized to a

larger population

Replicable, so others may test the findings by repeating it. Discovering new facts or verify and test old facts. Developing new scientific tools, concepts and theories, which

would facilitate to take decision

Sample sizeFor carrying out any research or study on any subject it is very difficult to cover even 10% of the total population. Therefore the sample size has to be decided for a meaningful conclusion. For designing the sample size, it was thought proper to cover a very small percentage of population in various age groups. The method used for sample technique was non probability convenience sampling method. This method is used because it is known previously as to whether a particular person will be asked to fill the questionnaire. Convenient sampling is used because only those people will be asked to fill the questionnaires that were easily accessible and available to the researcher. Considering the constraints, it was decided to conduct the study based on sample size of 100 Retailers . Scientific method is not adopted in this study because of financial

Dhanbad page

1

constraints and also because of lack of time; also the basic aim of doing the research is academic, hence most convenient way is selected.

TYPES & TECHNIQUES

The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision which is precise and rational. The study is conclusive because after doing the study the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. The study is statistical because throughout the study all the similar samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated.

Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision.

TOOLS USED

To know the response I have used the questionnaire method in sample survey. If one wishes to find what people think or know, the logical procedure is to ask them. This has lead marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaires were structured non-disguised questionnaire because the questions, which the questionnaire contained, were arranged in a specific order besides every question asked was logical for the study, no question can be termed as irrelevant.

Dhanbad page

1

The questionnaire, were non-disguised because the questionnaire were constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they asked to fill the questionnaire.

LIMITATIONS OF THE STUDY

The research will be conducted in a limited area.

The internet information can be irrelevant.

Time will be a major constraint.

The respondent will be limited so cannot be treated as a whole population.

The respondent may be biased.

Due to language problem it is possible that the respondents are not be able to

understand the questionnaire and can cause misleading results.

Dhanbad page

1

Data Analysis & Interpreta

tion

Questionnaires for the customer(Retailer)

Dhanbad page

1

DATA ANALYSIS & NTERPRETATION Which Brand do you sell the most ?

Idea% of Idea% of

respondentsAirtel17Reliance13Idea18Vodafone19Aircel10Tata Docomo11Uninor7Bsnl5

Reliance21Idea17Vodafone15Aircel4Tata Docomo4Options

How much activations do you sell and what is the percentage of idea ?

Total Activation

who gives you the best service ?

Options

% of respondents

Dhanbad page

1

9253Airtel39 1877 20%

How much recharge do you sell and what is percentage of idea ?

How is the network quality of idea in your area ?

Dhanbad page

1

Which brand come first in your mind when you sell a sim ?

TelcomMarket Share

Dhanbad page

1

in Dhanbad

Here we have prepared some questionnaires from the Retailer’s point of view and tried to find out the market share of the following telecom industry in Dhanbad :

Idea Reliance (Gsm) Airtel Vodafone Aircel Tata Docomo

Dhanbad page

1

Distribution Channel of

Idea

Introduction

Distribution is all about getting your product/service to the right people at the right time with special consideration for profit and effectiveness. Successful marketing does not end when a business has developed a product/service and has found its appropriate target audience with a view to selling it at the 'right price'.

The next issue that needs to be faced is how they are going to distribute and sell this product/service to these people- the consumers.

Dhanbad page

1

When a product/service is purchased by a consumer, it may have been bought directly from the business, or it may have been through a number of intermediaries (wholesaler, retailer, etc): the seare known as distribution channels. Small businesses need to acknowledge the different types of distribution channels to utilize sales potential. After reading the article, you may learn that you could increase sales or profit by using a different distribution channel to the one that you currently use.

Distribution channels are influenced largely by the type and size of the business and so some of the channels explained may not be feasible for your particular business. Consequently, you may take note that these channels could be adopted in the future to accommodate for any changes and to help your business grow.

Distribution Strategy

And trusted to act Distribution strategy is influenced by the market structure, the firm's objectives, and its resources and of course it’s overall marketing strategy. All these factors are addressed in the section on selecting Distribution Channels.

The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g. specialty goods such as car repair kits); or Exclusive (with distribution restricted to up market outlets, as in the case of Gucci clothes).

The next strategic decision clarifies the number of levels within a channel such as agents, distributors, wholesalers, retailers. In some Japanese markets there are many, many intermediaries involved.

Next comes a sensitive strategic decision whether to go single channel or multi-channel. Some producers, like Manchester United FC, use multi-channels - they

Dhanbad page

1

use many different routes, direct and indirect, to bring their products to their customers.

Multi-channel Systems like this are common where intensive distribution is required. So direct marketing is combined with indirect marketing through intermediaries. Then comes the next level of strategic decisions concerning strategic relationships and partnerships. Two common strategies are Vertical Marketing Systems and Horizontal Marketing Systems.

Vertical Marketing Systems involve suppliers and intermediaries working closely together instead of against each other. They plan production and delivery schedules, quality levels, promotions and sometimes prices. Resources, like information, equipment and expertise, are shared. The system is usually managed by a dominant member, or 'channel captain'. VMS is more flexible than vertical integration where the manufacturer actually owns the distribution channel, for example, Doctor Martens boot manufacturers own their own retail store.

Horizontal Marketing Systems occur where organizations operating on the same channel level (e.g. two suppliers or two retailers) co-operate. They then share their distribution expertise and distribution channels. This can speed up the time taken to penetrate the market. There is room for creative alliances here. See Southwestern Bell's alliance with Granada TV Shops in the Hall Of Fame.

Resources available affect distribution strategy. Who can handle outbound logistics, marketing and sales, and servicing? Can the supplier afford to deliver small quantities, can it provide more trucks, can its sales force 'push' products into national retail chains? Can the organization deal with thousands, maybe even millions of customers - can it cope? Does it want to devote huge resources here or would it prefer to utilize someone else's resources in return for a slice of the profits? Difficult marketing dilemmas which make distribution strategy both critical and interesting. The sections on Distribution Channels explore this in more detail.

Dhanbad page

1

Selecting members within a channel

Having decided to go through intermediaries the next question is whether to use agents or distributors and also how many. Unlike distributors, agents don't hold stocks - they only act as sales agents finding customers, collecting orders and passing them on to the supplier in return for a percentage commission. How would you select a distributor or an agent? Here are some criteria:

1. Market Coverage, 2. Sales Forecast, 3. Cost, 4. Other Resources, 5. Profitability, 6. Control, 7. Motivation, 8. Reputation, 9. Competition, 10. Contracts

1. Market Coverage: - does the profile of existing customers match your target market profile? - is the number of customers big enough to meet the required distribution penetration? - is the existing sales force big enough to cover the territory? - are they dependant on a single individual? - are the existing delivery fleet and warehouse facilities adequate?

2. Sales Forecast: How many can they sell? What are their forecasts based upon? Do they give a 'best, worst and average' forecast? Will they invest in large stock commitment? Do they have budgets to run promotions? Some suppliers even ask their distributors for a marketing plan showing how they intend to market the supplier's products.

3. Cost: What will it cost in terms of discounts, commissions, stock investment and marketing support?

4. Other Resources: Does the target market require anything special such as technical advice, installation, quick deliveries, and instant availability? If so can the distributor provide it?

5. Profitability: How much profit will the distributor generate for the supplier?

6. Control: Do they have a reporting system in place? How do they deal with problems? How often is review meetings scheduled? Can you influence the way they present your products?

Dhanbad page

1

7. Motivation: Does the agent or distributor convey a sense of excitement and enthusiasm about the product? What about its sales force - what's their reaction?

8. Reputation: Has it got a good track record? This includes the number of years in business, growth and profit record, solvency, general stability and overall reliability. Is it dependant on one key player?

9. Competition: Do they distribute any competitor's products?

10. Contracts: Some distributors demand exclusivity. Some agreements tie the supplier in for certain periods of time. Check for flexibility in case things go wrong.

The bottom line is: Can the agent or distributor be motivated, controlled and trusted? Motivated to sell your product among a range of others. Controlled to back results feed or change strategy if requested. As a reliable ambassador of your product?

Motivating Channel MembersImagine these three scenarios:

You are a producer of 'Grand Pens' a brand of fountain pens.

A customer seeks advice from a pen shop on which pen to buy and the retailer

strongly recommends yours. A customer asks a retailer, who stocks your pen, for another brand called 'Bad Pens'. The retailer recommends and offers your pen as superior. A retailer actively solicits business for you by asking customers buying other products to come and have a look at the exquisite 'Grand Pen'. This retailer is obviously very motivated. 'Mindshare', as it is called in the USA, has to do with how important your product is in the distributor's mind relative to the other lines they carry. Winning the battle for the distributor's share of mind can be more important than many other marketing strategies. It applies in industrial markets and consumer markets where intermediaries play

Dhanbad page

1

important roles in the distribution channel. In reality, maintaining continually high levels of motivation among intermediaries presents a challenge. It requires a reasonable quality product, creative promotions, product training, joint visits between producer and distributor, co-operative advertising, merchandising and display. Most of these apply to agents as much as distributors and retailers.

Keeping the intermediary stimulated is important. Positive motivators, like sales contests are preferred to negative motivators like sanctions such as reduced discounts and the threat of terminating the relationship. A positive reward works better than a negative punishment. Ideally there should be a shared sense of responsibility - a partnership - a strategic partnership. The supplier and intermediary are there to help each other. Vertical Marketing Systems are a good example. Clear communications, covering sales goals, review meetings, reporting procedures, marketing strategy, training, market information required, suggestions for improvements, all help. Regular contact through visits, review meetings, dinners, competitions, newsletters, thank you letters, congratulatory awards all help to keep everyone working closely together.

These are all non-financial incentives which provide a form of psychic income as opposed to financial income. That's not to say that financial incentives aren't useful motivators, it just means that there are other motivations there too. In fact the money spent on financial incentives is often spent more effectively when the sales person is rewarded with a plaque, a gold pen or a holiday in the Bahamas rather than just the cash which tends to get soaked up and lost in a sea of ordinary household daily expenditure.

Non cash rewards appeal to the higher levels of Maslow's Hierarchy of Needs

belonging, esteem and self actualization. Despite this, conflict can occur when too many distributors are appointed within close proximity of each other, or the producer engages in a multiple channel strategy of direct marketing as well as marketing through intermediaries. Carefully motivating distributors is vital if goods are to flow smoothly through the channel and reach satisfied customers.

Dhanbad page

1

Sales Organization structure

Distribution channel of idea in DhanbadIn Distribution the company’s Distributors plays very important role. Direct sales are done by Distributor. Distributors gets the product of Idea cellular and V-top directly from the company.

Sales are done by these three process.

1. Sale through DSE.2. Market Activities.3. Promotional Activities.

Total Sales revenue/month = Approx. 2.2 crore

Total Activation in July = Approx. 42000

Total No. of Distributors in Dhanbad zone = 55.

Total No. of Retailers in Dhanbad Zone =5501.

Channel ManagementChannel Management. Yet another sales and marketing phrase that is thrown around like everyone knows what it means. But so few companies really comprehend channel management in a way that really helps them. It’s really

Dhanbad page

1

no wonder. Sales channels (being the conduits by which we distribute our products to the end-user) come in many shapes—from direct, to the web, to the traditional retail environment. And, we’re just doing whatever we can to get any business from any of them! But is that the most efficient and effective approach? That’s where Channel Management comes in. Channel management, as a process by which a company creates formalized programs for selling and servicing customers within a specific channel, can really impact your business—and in a positive way! To get started, first segment your channels by like characteristics (their needs, buying patterns, success factors, etc.) and then customize a channel management program that includes:

1. Goals: - Define the specific goals you have for each channel segment. Consider your goals for the channel as whole as well as individual accounts. And, remember to consider your goals for both acquisition and retention.

2. Policies: - Construct well-defined polices for administering the accounts within this channel. Be sure to keep the unique characteristics of each segment in mind when defining policies for account set up, order management, product fulfillment, etc.

3. Products: - Identify which products in your offering are most suited for each segment and create appropriate messaging. Also, determine where your up sell opportunities lie.

4. Sales/Marketing Programs: - Design support programs for your channel that meet THEIR needs, not what your idea of their needs are. To do this, you should start by asking your customers within this segment, “how can we best support you in the selling and marketing of our products?” That being said, the standard considerations are product training, co-op advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be diligent about addressing this segment’s SPECIFIC needs in these areas. Defining a channel anagement strategy for each segment allows you to be more effective within each segment, while gaining efficiency at the same time. Still, maintaining brand consistency across all channel segments is critical to your long-term success. So

Dhanbad page

1

find a good balance between customization and brand consistency and you’ll be on your way to successful channel management.

Process startedWe went to distributor point where we saw there were some people (distributor & DSE ) who had a chain by which they worked together. Every DSE had particular market in that market they collected money and gave them sim card and paper Boucher& e-Boucher and gave that money to the distribute point.

Customer Interaction

We went to new retailer and convince them to join with telecom market, and gave them some beautiful offer to started their business with low amount.

Task :

We went to existing Retailers and gave them the new offers of selling sims , what

are the benefits and target to getting incentive.

Areas Covered :

Station road to Big Bazar, Teli para , Bartand , Kolakusma ,Nutandih , JP nagar¸ Memko More , Karmic Nagar , Koyla Nagar.

Dhanbad page

1

Observation and

Findings Dhanbad page

1

Observation and Findings :

In the survey of Dhanbad city found this result by approaching different- different retailer who deals in the communication products and find out result in Dhanbad city with the help of questionnaire. This finding is based on only last month result.

Airtel is the Market Leader in Dhanbad. This result is based upon the

Sales Revenue of various telecom player in Dhanbad City.

Idea and Vodafone are having similar Sales revenue then Idea and

Vodafone are Competitor of each other.

Most of the Retailers are satisfied with service quality of Idea cellular,

But 18% to 20% are not satisfied Because they having some problem

like did not get Sign Box, Boards ,Tariff Charts etc for their

advertisement.

Idea cellular having Excellent network quality in cities and town but

Poor network quality in Rural Areas.

Dhanbad page

1

Idea cellular’s having various tariff plans which attracts more

customers compare to other telecom players.

Conclusion :

In Dhanbad it is found that !dea is most attracting Brand and it gives very good

service to Retailers. Vodafone is most closer competitor of Idea. Airtel is Market

leader in Sales Revenue where Idea placed in 3rd position.

SUGGESTIONS: It should motivate the Retailer to increase sales revenue by giving gifts and

rewards etc.

It should increase network quality in Rural areas.

It should provide expertise regularly visit to Retailer to giving the

knowledge of sales promotion, coming technology, offers and plans.

It should concentrate on advertisement like Road side hoardings and

banners.

Dhanbad page

1

It should provide a service to retailer if by mistake any retailer recharge a

amount to other number then on request of retailer it may come back by

deduction of few percent.

Bibliography

Books:

• Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New

Dehli.

• C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi.

Dhanbad page

1

Web Resources :

www.trai.gov.in

http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx

http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/

aboutus_home.jsp

http://www.ideacellular.com/IDEA.portal?

_nfpb=true&_pageLabel=IDEA_Page_AboutIdea

http://www.india-cellular.com

http://trai.gov.in/upload/pressReleases

Mobile2win

Dhanbad page