Description
PROJECT ON TATA INDICOM
A
PROJECT REPORT
ON
“Employing
the potential of Retail chain distribution of Tata Tele Services
In partial fulfillment in award of PGD Two !ear "ull Time Programme
COMPANY GUIDE
FACULTY GUIDE r# $IP%& SIR Mr. Neeraj Agrawal Assistant manager Sales & Marketing
SUBMITTED BY TA A C!AND SAINI "GDM #T! SEM $%&&'(%&))* " ESIDENCY INSTITUTE INTE NATI+NAL MANAGEMENT '
PREFACE
The successful completion of this project was a unique experience for me interacting various person !" achieve by a oing this
because by visiting many place an
better #nowle ge about sales $ The experience which " gaine
project was essential at this turning point of my carrer this project is being submitte which content etaile analysis of the research un er ta#en by me$ The research provi es an opportunity to the stu ent to #nowle ge an competencies require evote his%her s#ills uring the technical session$
ACKNOWLEDGEMENT
" express my sincere gra i !"e # my in"!s ry g!i"e Mr$ Neera% Agra&a'( Assis $manager ) *a'es + Mar,e ing( Ta a Te'eser-ices Limi e" .#r /is a0'e g!i"ance( c#n in!#!s s!pp#r an" c##pera i#n /r#!g/#! my raining( &i /#! &/ic/ /e presen &#r, &#!'" n# /a-e 0een p#ssi0'e$ I &#!'" a's# 'i,e # /an, /e en ire eam #. Ta a Te'eser-ies Limi e"( .#r /eir c#ns an s!pp#r an" /e'p in /e s!ccess.!' c#mp'e i#n #. /is pr#%ec $
Las 0! n# 'eas I &#!'" 'i,e # /an, # a'' /#se &/# /a-e "irec 'y #r in"irec 'y /e'pe" me in s!ccess.!' c#mp'e i#n #. my raining$
(
CE TIFICATE +F + IGINALITY
I) Tara *hand Saini S+o Shri Paras Ram saini) having Roll no# ',-' of .atch (,,/0'') do hereby certify and declare that this research report titled employing the potential of Retail chain distribution of Tata Tele Services Is the result of my own wor12 This report contains no materials or information which has been previously submitted for any other academic diploma or degree) e3cept where indicated otherwise#
Date , st-1ent ,
Signat-re ./ t0e
A"" +2AL "AGE
This report) entitled) employing the potential of Retail chain distribution of Tata Tele Services) prepared and submitted by) Tara *hand Saini) in partial fulfillment of the re4uirements for the degree of PGD is hereby accepted
Mr. Vipul
$Fa3-lt4 G-i1e*
-
T5.&E 6" *67TE7TS
S. N.. ' ( < 8 '# (# -# 8T-5$$$ are high degree of commonality of design worldwideB compatibility of services within >8T-5$$$ and with the fi;ed networ&B superior two-way voice communication qualityB small terminals for worldwide useB worldwide roaming capabilityB and capability for multimedia applications and a wide range of services (e.g. video-teleconferencing! high speed >nternet! speech and high rate data .
':
List ./ 1.3-ments,
&ist of Documents needed for a connectionF The various documents that are needed for a post paid wal1y and mobile connection from Tata In1i3.m are the followingF
F.r t0e 3.nne3ti.n t0at is t. 6e installe1 at resi1en3e,
).
• • • • • •
I1entit4 "r../ $an4.ne*,
Dri7ing li3ense 2.ter8s i1entit4 3ar1 "ass9.rt Bank "ass B..k5 wit0 a stam9e1 a 90.t. .n it "0.t. 3re1it 3ar1. Arms an1 Amm-niti.n li3ense
%.
• • • • • • • •
"r../ ./ esi1en3e $An4.ne*,
"ass9.rt Dri7ing li3ense "ai1 tele90.ne 6ills $n.t m.re t0an # m.nt0s .l1* "ai1 ele3tri3it4 6ills $n.t m.re t0an # m.nt0s .l1* "ai1 water 6ill $n.t m.re t0an # m.nt0s .l1* 2e0i3le registrati.n 3erti/i3ate ati.n 3ar1 M-ni3i9al ta: 9a4ment re3ei9t
';
;.
"AN Car1 .r F.rm alls 5H- //= 3!56/ /6D /5 E 55 / 5D // ,66 =6 3!666 DD H6 D /-D F =6 = H,6 3=-!D-= /3/H /6 //6 3 5D /H /!3=6 -D6 -!366 /,6 /H = /56 3 =D 3E -DE D3 /!3=H D6 D 56 F -D ,
Pro uct Contribution L
7est
UP Wes
35J
EJ =3J =J
7al#y Post
7al#y Pre
C*C Post
C*C Pre
(=
Role of Aistributor'
The responsibilities of Aistributor towar s the Retailer)s are' /$ Provi ing the retailers with the require functioning$ 3$ Beeping the retailers up ate about changes in Changes in Tariff! submitting them to the (ervices an company)s policy of operation$ -$ Timely collection of CAF from the retailers an customer care ivision of the company$ 5$ Provi ing the retailer with PCP material to help them attract more customers$ D$ Passing on the benefits given by the company to the retailers$ The responsibilities of Aistributor towar s the Company are' /$ To maintain a stoc# of han sets for /D L 3/ 9Recharge Coupon Iouchers< for H L /5 "n icom$ 3$ To ensure placements of "n icom)s pro ucts so as to increase the availability an visibility$ -$ To #eep up superior relationship with all its retailers this woul eventually lea to sales with recommen ations from retailer$ 5$ Achieving the secon ary sales targets given by the company$ D$ Cpening up on new retail outlets in or er to increase the availability an penetration of company)s pro ucts an services$ =$ Timely investment into business$ ays an that of RCI by Tata ays as irecte stoc# to allow their proper
(/
0eat Plan
0eat Plan is a sche ule esigne to ma#e sure a certain number of visits to epen on the number of
retailers by the FC( over a wee#$ These visits
han sets sol per month which are the basis for classification of retail outlets$
C'assi.ica i#n #. Re ai' O! 'e s
7hile preparing beat plan it becomes important to classify the retail outlets on the basis of volume of sales they provi e$ All the retail outlets of Tata "n icom were classifie in four categories as un er' Category A 0 C A *onthly (ales (ales of M /D han sets % month (ales of /6 L /5 han sets % month (ales of D L , han sets % month (ales of / F 5 han sets % month Frequency of FC( visits Aaily Cnce in 3 ays Cnce in - ays 7ee#ly
Class A retailers form only about /DJ of all outlets but in terms of sales value they provi e =6J L H6J of business$ Thus a Class A retailer is precious to Tata in icom an nee s to be given in ivi ual attention$ (uch a retail outlet is usually provi e with better schemes! is more often visite by the FC( an is provi e with the best PCP 9Point of Purchase< merchan ise$ For Sample Beat Plan please refer to Appendix C.
R#'e #. BO*
The BO* 9Feet on (treet< is a person traine by the company who wor#s with the istributor to ma#e secon ary sales! i$e$ sales ma e by the chec#ing an collections on cre it sales ue to the istributor$ -, istributor to the retailers$ The FC( is responsible for pro uct presentation! or er ta#ing! stoc#
Each FC( is accountable for - beats! each of -6 L -D retailers$ These beats are geographically allocate to ifferent FC(s$ The FC( ma#es visits to the retailers un er his territory accor ing to the beat plan! which specifies which all retailers are to be met on a given ay$ Cn these visits the FC( ma#es pro uct presentation! highlighting the benefits of Tata "n icom over its competitors$ >e also lets the retailer #now about the current promotional offers being floate by "n icom for its retailers an customers$ The FC( provi es the retailer with company merchan ise an PCP material! which increases the visibility of Tata "n icom! its pro ucts an schemes$ This also helps the retailer ma#e sales easily an earn a significant margin$ Another #ey tas# performe by the FC( is NCr er ta#ingO! which inclu es the uty of stoc# chec#ing! where he to have a fair i ea about the
confirmation about the volume an value of the stoc# or ere an entering so in the or er boo#$ The FC( also han les the an the closing stoc#$ >e is also expecte verifies the opening stoc#! the number of activations! stoc# of recharge coupons competitor)s stoc#! number of activations an schemes as well$ Cn the Aistributor en the FC( is responsible for timely submission of the
retailer)s or ers an is liable to specify any special commitments ma e by him$
-'
I7TR6D%*TI67 T6 T9E I7D%STR!
Telecommunications One of the fastest growing sectors in the country,
telecommunications has been zooming up the growth curve at a feverish pace in the past few years.
•
The number of mobile phones (including 20.8 million
!!
("## as on $anuary %&, 200', was about 8% million, which is over '% per cent of the total number of phones in the country.
•
Over %2 million new telephones were added during (pril) $anuary of the current financial year, with five million additions occurring in $anuary alone, ta*ing the total number of phones in the country to &%0.8 million as on $anuary %&, 200'.
•
Tele)density has increased from 8.8 per cent in $anuary 200+ to &&., per cent at the end of $anuary 200'.
•
(ccording to the Telecom -egulatory (uthority of .ndia (T-(./s# 0uarterly performance indicators, .nternet user base has grown &+ per cent from 1eptember 2002 to 1eptember 200+, with private operators accounting for 2.' million users.
-(
•
The gross subscriber base of the fi3ed and mobile services together reached &&%.0, million at the end of the 0uarter $uly)1eptember 200+, from &02.22 million as on $une 200+, registering an increase of 8.24 per cent during the 0uarter.
5nder the 6harat 7irman 8o9ana, a total '',822 villages are to be provided with village public telephones
;T# by 7ovember 200,. Destination India The growth statistics of the sector combined with the
government/s decision to increase the foreign direct investment cap in the sector to ,2 per cent is generating interest among global investors. .ndia, one of the fastest growing countries in telecom manufacturing in the world, will attract another 51< 8++ million as foreign investment over the ne3t two years.
•
.ndia has become the =crown 9ewel> in ?ong @ong)based ?utchison Telecom, contributing about 2& per cent of the group/s total revenues of 51< %.& billion in 200+. This amounted to more than half of ?utch .nternational>s gross profit.
•
7o*ia calls .ndia its stepping stone to success. .t said that convergence and %A products will increase e3ponentially
--
from 200+)0, in (sia with *ey drivers being .ndia along with 6razil and Bhina.
•
The
Bhina)head0uartered
?aier
group,
with
a
global
presence in home appliances and consumer electronics, has set up a 9oint venture for telecom in .ndia for the handset and e0uipment business.
•
7ortel,
7orth
(merica/s
biggest
telecommunications
e0uipment provider, has signed a five)year deal to provide call centre services for 6harti, which has a more than 22 per cent mar*et share of the mobile phone mar*et in .ndia.
•
.sraeli telecommunications e0uipment ma*er CB. Telecom opened a new research and development centre in .ndia in an effort to reduce the time to mar*et new products.
Global forays .ndia offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. ith global telecom bigwigs *eenly loo*ing
at the fast)growing .ndian mar*et, domestic ma9ors are busy dialing in new deals and e3panding overseas.
-<
•
6harti,
which
has been offering
telecom
services
in
1eychelles for the last seven years under the brand (irtel 1eychelles !td., announced that it would soon launch ne3t generation %A services there with an initial investment of 51< 4'8,%04.
•
:idesh 1anchar 7igam !td17!# has said that 17O Telecommunications (;T8# !td, in which the company is a principal shareholder, has received a telecom licence to operate in 1outh (frica.
•
The Tata Aroup will invest more than 51< 2%0)million in 1outh (frica over the ne3t three years to develop and operate telecommunication services.
•
-eliance
.nfocomm
has
9oined
hands
with
Bhina
Telecommunications to provide direct telecom connectivity for the first time between the two countries. .t will now route communications traffic between .ndia and Bhina on a global networ* of its group company Dlag Telecom.
-8
Telecommunication in India The .ndian telecommunications 7etwor* with ,,m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of (sia. Today it is the fastest growing mar*et in the world and represents uni0ue opportunities for 5@ companies in the stagnant global scenario. Tele)density, which was languishing at 2E in &444, has shown an impressive 9ump to ,E in 200+ and is set to increase to 20E in the ne3t five years beating the Aovt. target by three years. (ccordingly, .ndia re0uires incremental investments of 51F &0)&+ bln for the ne3t five years. ;rivate operators have made mobile telephony the fastest growing (over &'2E p.a.# in .ndia. ith more than %% million
users (both BF"( and A1"#, wireless is the principal growth engine of the .ndian telecom industry. Aiven the current growth trends, cellular connections in .ndia will surpass fi3ed line by late 2002Gearly 200+. .ntense competition between the four main private groups ) 6harti, ?utch, Tata and -eliance and with the 1tate sector incumbents)617! and "T7! has brought about a significant drop in tariffs. There has been almost ,2E in cell
-:
phone charges, ,0E in .!F calls and 2+E drop in 7!F charges, resulting in a boom time for the consumers. The Aovernment has played a *ey enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. hile there were regulatory irregularities
earlier, resulting in litigation, these have all been addressed now. Bustoms duties on hardware and mobile handsets have been reduced from &2 percent to + percent. The .ndian government has merged the .T and Telecom "inistries to speed up reforms and decision on the Bommunication Bonvergence 6ill to enable the common regulation of the .nternet, broadcasting and telecoms will be ta*en after the new Aovernment assumes responsibilities in may this year. (n independent regulatory body (T-(.# and dispute settlement body (TF1(T# is fully functional.
-;
INDIAN CELLULAR MARKET The 6harti Aroup, which operates in &+ circles, continues to be the country/s largest cellular operator, with %0.,& la*h
subscribers. 617!, which operates in &, circles, has a subscriber base of 22.+' la*h subscribers. Thus 617! stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending "arch %&, 200+, displacing ?utchison from the second position. ?utch, which operates in only seven circles, is the third largest operator with a subscriber base of 2&.'2 la*h. 5nli*e fellow public sector underta*ing, "T7!, which operates in "umbai and Felhi, 617! has been a very aggressive player in the mar*et. HBellular operators who e3pected 617! to go the "T7! way, were ta*en by surprise and did not ta*e effective steps to counter it, till it was too late in the day,H said a telecom analyst. 6elying fears of a slowdown in cellular subscriber ac0uisitions, the cell club has reported a ,.42E growth, the highest growth in any month so far, during "arch 200+. 8ear)on)year, the cellular subscriber base in the country has almost doubled to &.2, crore
-=
in "arch 200+, a 4,.24E growth over 0.'2 crore in "arch 2002. The subscriber base was 0.%' crore in "arch 200%. The cellular subscriber club e3panded by 4.%& la*h last month. This is much higher than +.4 la*h subscribers added in Debruary 200+ and 2.&% la*h in $anuary 200+. .dea, which operates in five circles, is the fourth largest operator with a subscriber base of &2.80 la*h, higher than 6;!/s &&.%& la*h subscribers across four circles. The subscriber numbers per operator drop sharply with the si3th largest operator, 1pice Bommunications, having a subscriber base of '.20 la*h, followed by Cscotel with a base of +.8, la*h and -eliance Telecom/s +.2& la*h subscribers. "T7! is the ninth largest operator, with a base of 2.42 la*h subscribers, followed by (ircel/s 2.% la*h subscribers and (ircel Figilin*/s &.8% la*h subscribers. -;A Bellular is the &2th largest operator with &.,4 la*h subscribers, followed by ?e3acom/s &.%2 la*h subscribers. The growth in the cellular subscriber base was seen to have slowed down in the past two months because of the hype created by limited mobility. 6efore that, monthly additions in the last three months of calender year 2002 averaged around '.,+ la*h.
-/
hile the subscriber base)9umped by %.%8E to 22.%4 la*h in the metros, subscriber base of category ( circles of "aharashtra, Au9arat, (ndhra ;radesh, @arnata*a and Tamil 7adu 9umped by &0.&8 E to reach 2%.'2 la*h. Bategory 6 circles of @erala, ;un9ab, ?aryana, 5ttar ;radesh ( est#, 5ttar ;radesh (Cast#, -a9asthan, "adhya ;radesh and est 6engal recorded a 9ump of &0.'4E,
with a total base of %%.,2 la*h subscribers. Bircle B has reported &2.,2 E growth with subscriber numbers 9umping to +.08 la*h. (mong the metros, while "umbai added '%,&80 subscribers, higher than the +8,'2' added by Felhi, the Bapital/s cellular subscriber base of over &8 la*h is still higher than "umbai/s &'.84 la*h. !ast year, the cellular subscriber base had grown by ,4.,8E, thus reaching '2.% la*h, compared to %+.,, la*h in the year ending "arch 200&. hile the cellular industry has been on
roll for the first three 0uarters of the previous financial year with an average of '.,+ la*h monthly additions in the third 0uarter, the first two months of 200+ had seen the growth slowing down.
alls 5H- //= 3!56/ /6D /5 E 55 / 5D // ,66 =6 3!666 DD H6 D /-D F =6 = H,6 3=-!D-= /3/H /6 //6 3 5D /H /!3=6 -D6 -!366 /,6 /H = /56 3 =D 3E -DE D3 /!3=H D6 D 56 F -D ,
Pro uct Contribution L 7est
ndicom gave me an in-depth &nowledge about application of 8ar&eting *trategies in real terms. > could understand better the role of different strategies at different stages of evolution of business. Training at Tata >ndicom gave me ample opportunity to apply my s&ill and &nowledge in dealing with customers! channel partners! managing office and also field wor&. Through &een observation! > found that all the 4romotional *trategies are inter-related with each other and there is a greater role of timing which mainly decides the success or failure of it in the long run. The actions or strategies of the competitor are very &eenly observed and corrective action ta&en from time to time. The &nowledge of the industry and a regular update is quite essential to survive in this changing business arena. 8oreover! > got to understand that in todayDs telecom mar&et! the tariff plan must be so prepared that it can meet the requirements of different sections of the society. The company should roll-out ant future service only when it is fully satisfied with the complete wor&ing of the same otherwise it will create negative publicity as in the earlier stages of its commercial launch of services.
:=
=mployees also believe that integration of sales! mar&eting and customer services function is must for achieving better relationship with the customers. :espite industry s&epticism and tightening budgets! insurers will
continue to invest in 0E8 with the pre-requisite that vendors are able to demonstrate that significant returns can be achieved.
>nvestments
through 5$$5 and 5$$1 will be
focussed on: smaller
scale pro'ects to leverage greater returns out of e;isting systems! the development of operational 0E8 to improve distribution
strategies! and the integration of core processes such as claims. >n the highly insurers is competitive increasing insurance landscape! the main ob'ective of
the value of their customer base. 0ustomer
Eelationship 8anagement (0E8 is pivotal in achieving this. ( reliable! efficient 0ustomer Eelationship 8anagement (0E8 solution ma&es it easy to build lasting customer relationships! gives e;ecutives the necessary resources to ma;imise their organisation. >n service sector li&e telecom! it is the quality which is important but todayDs mar&et goes to those who can provide quality service at affordable price. 6ere only the differentiator lies. 9inally! > concluded that it is the human effort which is responsible for ultimate successes or failure. There is no limit to success and! so! as itDs rightly said!
:/
F>f you thin& you can
--- you canG.
1 OT (7(!81.1
STRENGT%S • Bost advantage • Burrent leaders in 0uality service • !argest distribution networ* • (bility to constantly innovate • ?ighly s*illed wor*force • Cntrepreneurial zeal • Tata>s increased e0uity and mar*et cap.
8EAKNESSES • To prove credibility • ;rice pressures • 7eed for Aovernment support • (wareness • 1ales and "ar*eting
;,
!""!RTUNITIES • To sustain passion and commitment • Tata>s mar*et share increasing at other service provider e3pense. Thus opportunity to wipe it out. • (ttain higher value services • Bollaborative business needs to be e3plored • :ertical repeatable solutions. • !ow penetration level in rural mar*ets.
T%REATS
• Doreign investment
• Alobal trends moving from A;1 to !!.
• !ac* of global parity in telecom tariff
• Other competition
;'
• 9I9LIOGRA/H2
• @otler, 2002.
;hilipL
(mstrong,
Aarg.
Principles
of
Marketing,
"illennium Cdition, ;rentice ?all of .ndia !td., 7ew Felhi,
• Tata .ndicom. 1ales guides • 6usiness orld • Times of .ndia • The Cconomic Times • eb portals (customer helpdes*#. • www.bsnl.com • www.mit.gov.in
;(
doc_333250134.doc
PROJECT ON TATA INDICOM
A
PROJECT REPORT
ON
“Employing
the potential of Retail chain distribution of Tata Tele Services
In partial fulfillment in award of PGD Two !ear "ull Time Programme
COMPANY GUIDE
FACULTY GUIDE r# $IP%& SIR Mr. Neeraj Agrawal Assistant manager Sales & Marketing
SUBMITTED BY TA A C!AND SAINI "GDM #T! SEM $%&&'(%&))* " ESIDENCY INSTITUTE INTE NATI+NAL MANAGEMENT '
PREFACE
The successful completion of this project was a unique experience for me interacting various person !" achieve by a oing this
because by visiting many place an
better #nowle ge about sales $ The experience which " gaine
project was essential at this turning point of my carrer this project is being submitte which content etaile analysis of the research un er ta#en by me$ The research provi es an opportunity to the stu ent to #nowle ge an competencies require evote his%her s#ills uring the technical session$
ACKNOWLEDGEMENT
" express my sincere gra i !"e # my in"!s ry g!i"e Mr$ Neera% Agra&a'( Assis $manager ) *a'es + Mar,e ing( Ta a Te'eser-ices Limi e" .#r /is a0'e g!i"ance( c#n in!#!s s!pp#r an" c##pera i#n /r#!g/#! my raining( &i /#! &/ic/ /e presen &#r, &#!'" n# /a-e 0een p#ssi0'e$ I &#!'" a's# 'i,e # /an, /e en ire eam #. Ta a Te'eser-ies Limi e"( .#r /eir c#ns an s!pp#r an" /e'p in /e s!ccess.!' c#mp'e i#n #. /is pr#%ec $
Las 0! n# 'eas I &#!'" 'i,e # /an, # a'' /#se &/# /a-e "irec 'y #r in"irec 'y /e'pe" me in s!ccess.!' c#mp'e i#n #. my raining$
(
CE TIFICATE +F + IGINALITY
I) Tara *hand Saini S+o Shri Paras Ram saini) having Roll no# ',-' of .atch (,,/0'') do hereby certify and declare that this research report titled employing the potential of Retail chain distribution of Tata Tele Services Is the result of my own wor12 This report contains no materials or information which has been previously submitted for any other academic diploma or degree) e3cept where indicated otherwise#
Date , st-1ent ,
Signat-re ./ t0e
A"" +2AL "AGE
This report) entitled) employing the potential of Retail chain distribution of Tata Tele Services) prepared and submitted by) Tara *hand Saini) in partial fulfillment of the re4uirements for the degree of PGD is hereby accepted
Mr. Vipul
$Fa3-lt4 G-i1e*
-
T5.&E 6" *67TE7TS
S. N.. ' ( < 8 '# (# -# 8T-5$$$ are high degree of commonality of design worldwideB compatibility of services within >8T-5$$$ and with the fi;ed networ&B superior two-way voice communication qualityB small terminals for worldwide useB worldwide roaming capabilityB and capability for multimedia applications and a wide range of services (e.g. video-teleconferencing! high speed >nternet! speech and high rate data .
':
List ./ 1.3-ments,
&ist of Documents needed for a connectionF The various documents that are needed for a post paid wal1y and mobile connection from Tata In1i3.m are the followingF
F.r t0e 3.nne3ti.n t0at is t. 6e installe1 at resi1en3e,
).
• • • • • •
I1entit4 "r../ $an4.ne*,
Dri7ing li3ense 2.ter8s i1entit4 3ar1 "ass9.rt Bank "ass B..k5 wit0 a stam9e1 a 90.t. .n it "0.t. 3re1it 3ar1. Arms an1 Amm-niti.n li3ense
%.
• • • • • • • •
"r../ ./ esi1en3e $An4.ne*,
"ass9.rt Dri7ing li3ense "ai1 tele90.ne 6ills $n.t m.re t0an # m.nt0s .l1* "ai1 ele3tri3it4 6ills $n.t m.re t0an # m.nt0s .l1* "ai1 water 6ill $n.t m.re t0an # m.nt0s .l1* 2e0i3le registrati.n 3erti/i3ate ati.n 3ar1 M-ni3i9al ta: 9a4ment re3ei9t
';
;.
"AN Car1 .r F.rm alls 5H- //= 3!56/ /6D /5 E 55 / 5D // ,66 =6 3!666 DD H6 D /-D F =6 = H,6 3=-!D-= /3/H /6 //6 3 5D /H /!3=6 -D6 -!366 /,6 /H = /56 3 =D 3E -DE D3 /!3=H D6 D 56 F -D ,
Pro uct Contribution L
7estUP Wes
35J
EJ =3J =J
7al#y Post
7al#y Pre
C*C Post
C*C Pre
(=
Role of Aistributor'
The responsibilities of Aistributor towar s the Retailer)s are' /$ Provi ing the retailers with the require functioning$ 3$ Beeping the retailers up ate about changes in Changes in Tariff! submitting them to the (ervices an company)s policy of operation$ -$ Timely collection of CAF from the retailers an customer care ivision of the company$ 5$ Provi ing the retailer with PCP material to help them attract more customers$ D$ Passing on the benefits given by the company to the retailers$ The responsibilities of Aistributor towar s the Company are' /$ To maintain a stoc# of han sets for /D L 3/ 9Recharge Coupon Iouchers< for H L /5 "n icom$ 3$ To ensure placements of "n icom)s pro ucts so as to increase the availability an visibility$ -$ To #eep up superior relationship with all its retailers this woul eventually lea to sales with recommen ations from retailer$ 5$ Achieving the secon ary sales targets given by the company$ D$ Cpening up on new retail outlets in or er to increase the availability an penetration of company)s pro ucts an services$ =$ Timely investment into business$ ays an that of RCI by Tata ays as irecte stoc# to allow their proper
(/
0eat Plan
0eat Plan is a sche ule esigne to ma#e sure a certain number of visits to epen on the number of
retailers by the FC( over a wee#$ These visits
han sets sol per month which are the basis for classification of retail outlets$
C'assi.ica i#n #. Re ai' O! 'e s
7hile preparing beat plan it becomes important to classify the retail outlets on the basis of volume of sales they provi e$ All the retail outlets of Tata "n icom were classifie in four categories as un er' Category A 0 C A *onthly (ales (ales of M /D han sets % month (ales of /6 L /5 han sets % month (ales of D L , han sets % month (ales of / F 5 han sets % month Frequency of FC( visits Aaily Cnce in 3 ays Cnce in - ays 7ee#ly
Class A retailers form only about /DJ of all outlets but in terms of sales value they provi e =6J L H6J of business$ Thus a Class A retailer is precious to Tata in icom an nee s to be given in ivi ual attention$ (uch a retail outlet is usually provi e with better schemes! is more often visite by the FC( an is provi e with the best PCP 9Point of Purchase< merchan ise$ For Sample Beat Plan please refer to Appendix C.
R#'e #. BO*
The BO* 9Feet on (treet< is a person traine by the company who wor#s with the istributor to ma#e secon ary sales! i$e$ sales ma e by the chec#ing an collections on cre it sales ue to the istributor$ -, istributor to the retailers$ The FC( is responsible for pro uct presentation! or er ta#ing! stoc#
Each FC( is accountable for - beats! each of -6 L -D retailers$ These beats are geographically allocate to ifferent FC(s$ The FC( ma#es visits to the retailers un er his territory accor ing to the beat plan! which specifies which all retailers are to be met on a given ay$ Cn these visits the FC( ma#es pro uct presentation! highlighting the benefits of Tata "n icom over its competitors$ >e also lets the retailer #now about the current promotional offers being floate by "n icom for its retailers an customers$ The FC( provi es the retailer with company merchan ise an PCP material! which increases the visibility of Tata "n icom! its pro ucts an schemes$ This also helps the retailer ma#e sales easily an earn a significant margin$ Another #ey tas# performe by the FC( is NCr er ta#ingO! which inclu es the uty of stoc# chec#ing! where he to have a fair i ea about the
confirmation about the volume an value of the stoc# or ere an entering so in the or er boo#$ The FC( also han les the an the closing stoc#$ >e is also expecte verifies the opening stoc#! the number of activations! stoc# of recharge coupons competitor)s stoc#! number of activations an schemes as well$ Cn the Aistributor en the FC( is responsible for timely submission of the
retailer)s or ers an is liable to specify any special commitments ma e by him$
-'
I7TR6D%*TI67 T6 T9E I7D%STR!
Telecommunications One of the fastest growing sectors in the country,
telecommunications has been zooming up the growth curve at a feverish pace in the past few years.
•
The number of mobile phones (including 20.8 million
!!
("## as on $anuary %&, 200', was about 8% million, which is over '% per cent of the total number of phones in the country.
•
Over %2 million new telephones were added during (pril) $anuary of the current financial year, with five million additions occurring in $anuary alone, ta*ing the total number of phones in the country to &%0.8 million as on $anuary %&, 200'.
•
Tele)density has increased from 8.8 per cent in $anuary 200+ to &&., per cent at the end of $anuary 200'.
•
(ccording to the Telecom -egulatory (uthority of .ndia (T-(./s# 0uarterly performance indicators, .nternet user base has grown &+ per cent from 1eptember 2002 to 1eptember 200+, with private operators accounting for 2.' million users.
-(
•
The gross subscriber base of the fi3ed and mobile services together reached &&%.0, million at the end of the 0uarter $uly)1eptember 200+, from &02.22 million as on $une 200+, registering an increase of 8.24 per cent during the 0uarter.
5nder the 6harat 7irman 8o9ana, a total '',822 villages are to be provided with village public telephones
;T# by 7ovember 200,. Destination India The growth statistics of the sector combined with thegovernment/s decision to increase the foreign direct investment cap in the sector to ,2 per cent is generating interest among global investors. .ndia, one of the fastest growing countries in telecom manufacturing in the world, will attract another 51< 8++ million as foreign investment over the ne3t two years.
•
.ndia has become the =crown 9ewel> in ?ong @ong)based ?utchison Telecom, contributing about 2& per cent of the group/s total revenues of 51< %.& billion in 200+. This amounted to more than half of ?utch .nternational>s gross profit.
•
7o*ia calls .ndia its stepping stone to success. .t said that convergence and %A products will increase e3ponentially
--
from 200+)0, in (sia with *ey drivers being .ndia along with 6razil and Bhina.
•
The
Bhina)head0uartered
?aier
group,
with
a
global
presence in home appliances and consumer electronics, has set up a 9oint venture for telecom in .ndia for the handset and e0uipment business.
•
7ortel,
7orth
(merica/s
biggest
telecommunications
e0uipment provider, has signed a five)year deal to provide call centre services for 6harti, which has a more than 22 per cent mar*et share of the mobile phone mar*et in .ndia.
•
.sraeli telecommunications e0uipment ma*er CB. Telecom opened a new research and development centre in .ndia in an effort to reduce the time to mar*et new products.
Global forays .ndia offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. ith global telecom bigwigs *eenly loo*ing
at the fast)growing .ndian mar*et, domestic ma9ors are busy dialing in new deals and e3panding overseas.
-<
•
6harti,
which
has been offering
telecom
services
in
1eychelles for the last seven years under the brand (irtel 1eychelles !td., announced that it would soon launch ne3t generation %A services there with an initial investment of 51< 4'8,%04.
•
:idesh 1anchar 7igam !td
17!# has said that 17O Telecommunications (;T8# !td, in which the company is a principal shareholder, has received a telecom licence to operate in 1outh (frica.•
The Tata Aroup will invest more than 51< 2%0)million in 1outh (frica over the ne3t three years to develop and operate telecommunication services.
•
-eliance
.nfocomm
has
9oined
hands
with
Bhina
Telecommunications to provide direct telecom connectivity for the first time between the two countries. .t will now route communications traffic between .ndia and Bhina on a global networ* of its group company Dlag Telecom.
-8
Telecommunication in India The .ndian telecommunications 7etwor* with ,,m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of (sia. Today it is the fastest growing mar*et in the world and represents uni0ue opportunities for 5@ companies in the stagnant global scenario. Tele)density, which was languishing at 2E in &444, has shown an impressive 9ump to ,E in 200+ and is set to increase to 20E in the ne3t five years beating the Aovt. target by three years. (ccordingly, .ndia re0uires incremental investments of 51F &0)&+ bln for the ne3t five years. ;rivate operators have made mobile telephony the fastest growing (over &'2E p.a.# in .ndia. ith more than %% million
users (both BF"( and A1"#, wireless is the principal growth engine of the .ndian telecom industry. Aiven the current growth trends, cellular connections in .ndia will surpass fi3ed line by late 2002Gearly 200+. .ntense competition between the four main private groups ) 6harti, ?utch, Tata and -eliance and with the 1tate sector incumbents)617! and "T7! has brought about a significant drop in tariffs. There has been almost ,2E in cell
-:
phone charges, ,0E in .!F calls and 2+E drop in 7!F charges, resulting in a boom time for the consumers. The Aovernment has played a *ey enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. hile there were regulatory irregularities
earlier, resulting in litigation, these have all been addressed now. Bustoms duties on hardware and mobile handsets have been reduced from &2 percent to + percent. The .ndian government has merged the .T and Telecom "inistries to speed up reforms and decision on the Bommunication Bonvergence 6ill to enable the common regulation of the .nternet, broadcasting and telecoms will be ta*en after the new Aovernment assumes responsibilities in may this year. (n independent regulatory body (T-(.# and dispute settlement body (TF1(T# is fully functional.
-;
INDIAN CELLULAR MARKET The 6harti Aroup, which operates in &+ circles, continues to be the country/s largest cellular operator, with %0.,& la*h
subscribers. 617!, which operates in &, circles, has a subscriber base of 22.+' la*h subscribers. Thus 617! stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending "arch %&, 200+, displacing ?utchison from the second position. ?utch, which operates in only seven circles, is the third largest operator with a subscriber base of 2&.'2 la*h. 5nli*e fellow public sector underta*ing, "T7!, which operates in "umbai and Felhi, 617! has been a very aggressive player in the mar*et. HBellular operators who e3pected 617! to go the "T7! way, were ta*en by surprise and did not ta*e effective steps to counter it, till it was too late in the day,H said a telecom analyst. 6elying fears of a slowdown in cellular subscriber ac0uisitions, the cell club has reported a ,.42E growth, the highest growth in any month so far, during "arch 200+. 8ear)on)year, the cellular subscriber base in the country has almost doubled to &.2, crore
-=
in "arch 200+, a 4,.24E growth over 0.'2 crore in "arch 2002. The subscriber base was 0.%' crore in "arch 200%. The cellular subscriber club e3panded by 4.%& la*h last month. This is much higher than +.4 la*h subscribers added in Debruary 200+ and 2.&% la*h in $anuary 200+. .dea, which operates in five circles, is the fourth largest operator with a subscriber base of &2.80 la*h, higher than 6;!/s &&.%& la*h subscribers across four circles. The subscriber numbers per operator drop sharply with the si3th largest operator, 1pice Bommunications, having a subscriber base of '.20 la*h, followed by Cscotel with a base of +.8, la*h and -eliance Telecom/s +.2& la*h subscribers. "T7! is the ninth largest operator, with a base of 2.42 la*h subscribers, followed by (ircel/s 2.% la*h subscribers and (ircel Figilin*/s &.8% la*h subscribers. -;A Bellular is the &2th largest operator with &.,4 la*h subscribers, followed by ?e3acom/s &.%2 la*h subscribers. The growth in the cellular subscriber base was seen to have slowed down in the past two months because of the hype created by limited mobility. 6efore that, monthly additions in the last three months of calender year 2002 averaged around '.,+ la*h.
-/
hile the subscriber base)9umped by %.%8E to 22.%4 la*h in the metros, subscriber base of category ( circles of "aharashtra, Au9arat, (ndhra ;radesh, @arnata*a and Tamil 7adu 9umped by &0.&8 E to reach 2%.'2 la*h. Bategory 6 circles of @erala, ;un9ab, ?aryana, 5ttar ;radesh ( est#, 5ttar ;radesh (Cast#, -a9asthan, "adhya ;radesh and est 6engal recorded a 9ump of &0.'4E,
with a total base of %%.,2 la*h subscribers. Bircle B has reported &2.,2 E growth with subscriber numbers 9umping to +.08 la*h. (mong the metros, while "umbai added '%,&80 subscribers, higher than the +8,'2' added by Felhi, the Bapital/s cellular subscriber base of over &8 la*h is still higher than "umbai/s &'.84 la*h. !ast year, the cellular subscriber base had grown by ,4.,8E, thus reaching '2.% la*h, compared to %+.,, la*h in the year ending "arch 200&. hile the cellular industry has been on
roll for the first three 0uarters of the previous financial year with an average of '.,+ la*h monthly additions in the third 0uarter, the first two months of 200+ had seen the growth slowing down.
alls 5H- //= 3!56/ /6D /5 E 55 / 5D // ,66 =6 3!666 DD H6 D /-D F =6 = H,6 3=-!D-= /3/H /6 //6 3 5D /H /!3=6 -D6 -!366 /,6 /H = /56 3 =D 3E -DE D3 /!3=H D6 D 56 F -D ,
Pro uct Contribution L
7estndicom gave me an in-depth &nowledge about application of 8ar&eting *trategies in real terms. > could understand better the role of different strategies at different stages of evolution of business. Training at Tata >ndicom gave me ample opportunity to apply my s&ill and &nowledge in dealing with customers! channel partners! managing office and also field wor&. Through &een observation! > found that all the 4romotional *trategies are inter-related with each other and there is a greater role of timing which mainly decides the success or failure of it in the long run. The actions or strategies of the competitor are very &eenly observed and corrective action ta&en from time to time. The &nowledge of the industry and a regular update is quite essential to survive in this changing business arena. 8oreover! > got to understand that in todayDs telecom mar&et! the tariff plan must be so prepared that it can meet the requirements of different sections of the society. The company should roll-out ant future service only when it is fully satisfied with the complete wor&ing of the same otherwise it will create negative publicity as in the earlier stages of its commercial launch of services.
:=
=mployees also believe that integration of sales! mar&eting and customer services function is must for achieving better relationship with the customers. :espite industry s&epticism and tightening budgets! insurers will
continue to invest in 0E8 with the pre-requisite that vendors are able to demonstrate that significant returns can be achieved.
>nvestments
through 5$$5 and 5$$1 will be
focussed on: smaller
scale pro'ects to leverage greater returns out of e;isting systems! the development of operational 0E8 to improve distribution
strategies! and the integration of core processes such as claims. >n the highly insurers is competitive increasing insurance landscape! the main ob'ective of
the value of their customer base. 0ustomer
Eelationship 8anagement (0E8 is pivotal in achieving this. ( reliable! efficient 0ustomer Eelationship 8anagement (0E8 solution ma&es it easy to build lasting customer relationships! gives e;ecutives the necessary resources to ma;imise their organisation. >n service sector li&e telecom! it is the quality which is important but todayDs mar&et goes to those who can provide quality service at affordable price. 6ere only the differentiator lies. 9inally! > concluded that it is the human effort which is responsible for ultimate successes or failure. There is no limit to success and! so! as itDs rightly said!
:/
F>f you thin& you can
--- you canG.
1 OT (7(!81.1
STRENGT%S • Bost advantage • Burrent leaders in 0uality service • !argest distribution networ* • (bility to constantly innovate • ?ighly s*illed wor*force • Cntrepreneurial zeal • Tata>s increased e0uity and mar*et cap.
8EAKNESSES • To prove credibility • ;rice pressures • 7eed for Aovernment support • (wareness • 1ales and "ar*eting
;,
!""!RTUNITIES • To sustain passion and commitment • Tata>s mar*et share increasing at other service provider e3pense. Thus opportunity to wipe it out. • (ttain higher value services • Bollaborative business needs to be e3plored • :ertical repeatable solutions. • !ow penetration level in rural mar*ets.
T%REATS
• Doreign investment
• Alobal trends moving from A;1 to !!.
• !ac* of global parity in telecom tariff
• Other competition
;'
• 9I9LIOGRA/H2
• @otler, 2002.
;hilipL
(mstrong,
Aarg.
Principles
of
Marketing,
"illennium Cdition, ;rentice ?all of .ndia !td., 7ew Felhi,
• Tata .ndicom. 1ales guides • 6usiness orld • Times of .ndia • The Cconomic Times • eb portals (customer helpdes*#. • www.bsnl.com • www.mit.gov.in
;(
doc_333250134.doc