2. ORGANISATION STRUCTURE OF MARKETING DEPARTMENT OF BHARTI AIRTEL LTD. IN BIHAR
MARKETING HEAD
ACQUISITION CLM BPCI MARCOM
Prepaid postpaid M&R BIA
Data
Voice data VAS
As itis visiblethatthere are 4 verticalsinmarketingdepartment.Firstisacquisition , then Customer
life cycle management,then BusinessprocessandCustomerInsightandlastlyMARCOM (marketing
communication).
ACQUISITION DEPARTMENT
Firstly, Acquisition department consists of prepaid , postpaid and data as sub department.
Business Relevance: Generating revenue which is brought through either new customer sales or
existingcustomerconsumption. Like fornew customers,theydesign SIMs having first recharge and
for existing customers , they prepare different recharges and data packs.
Theyperformthree functions:Productdesigning,planningformeetingthe targetsand execution of
the process.
PRODUCT DESIGNING:
It is basically done with the help of market insights , market research , competition, etc. Demand
forecastingis done on the basis of comparison of produced stock and consumed stock , time taken
into production of the SIM(turn around time:TAT) , current stock.
For example: If idea makes a product having a recharge of 30rs. Having 20 talktime and 50 MB data
and this particular product is having a good market share in the market. So its responsibility of
acquisition department to make a similar product like 35rs. Having 22 talktime and 50 MB data.
3. Theyapplysome trickslike theyofferSIMwithfirst recharge lets say of 248rs to customers. As soon
as retailers do recharge of 248, only 168 rs. Is deducted from their account and at the end of the
month they get 30rs per recharge back.so total it costs them 138rs. Now it depends on them to
decide at what price they want to sell this SIM. Some charge 150 and some 160..
PLANNING :
“When , where, which , what, who to and how” all are planned here. They work to meet targets in
desirable time period.
EXECUTION:
Now when the products are designed according to the target and the targets are met , then the
retailers are given rewards and recognition and also they are provided with different schemes.
PREPAID
PROCESSFOR ACTIVATION:whenretailersellsone sim and get the form filled by him/her , he does
SMS to 59109. The distributor collects the form from retailer and then sends message to 59110.
Thendata is enteredintothe HUBand Spoke andthenthe networkisenabledincustomer’smobile.
This whole process may take few hours or 1 or 2 days.
Retailer SMS format:
UN<space>MSISDN<space>last 5 digit of sim<space>customer name@59109.
Distributor SMS format:
MSISDN<space>last 5 digit sim number@59110.
MOBILE NUMBER PORTABILITY:
1. Customer to generate the UPC code. To generate the UPC code , customer to send an SMS
from his existing mobile/number…customer to typ PORT<space>his/her existing mobile
number& needs to send it to 1900.(eg: PORT 93XXXXXXXX and send it to 1900.
2. Customerto share the UPC code with the nearest airtel retailer.
3. Retailertoinitiate the MNP process by sending the below SMS to 59109.MN<space>mobile
number<space>UPC code<space>Last 1 digits of the airtel MNP.
SIM<space>pre/post<space>CDMA/GSM<space>customer name.
4. Post the airtel network is received on the new SIM, customer needs to dial 59059 for tele-
verification(TV).PostTV isdone ,customerto getthe firstrecharge (FRC) done from his /her
nearest airtel retailer.
CYN ACTIVATION PROCESS:
1. For finding a number(FN) : retailer to send the below text/sms to 59109.
FN<space>HLR number<space>last 4 digits of choice number.
2. For blocking a number (BN): retailer to send the below text/sms to 59109.
BN<space>MSISDN.(blocking of number is OPTIONAL and should be used only in cases
where the complete documentationof the customerisyettobe completed. This means
4. that the channel will be able to block a number for 3 days before 59109 , and 59110 to
happen within 3 days else the number will get auto flushed.
3. For choosing a number (CN): retailer to send the below text/sms to 59109.
CN_MSISDN_last 10 digits of CYN SIM_customer name
POSTPAID
PRODUCT DESIGNING:
Here designingiswithin customer’s control. It is different from prepaid. This provides rights to the
customers to make their own plan on the basis of their requirement.
Here there is no retailer or distributor. There are DSA( Direct sales agent) and FOS(feet on street).
Once the customer registers online , DSA meets him and gets the form filled and all other
formalities.Thenone more personfromcompanygoesforaddressverificationwithin4 to 5 hours. If
all is ok then the network is enabled. The customer has to pay bill monthly.
RESOURCES:
Bandwidthisallottedtoeverytelecomcompanythroughbiddingprocess.Airtel acquiresaround900
MHz bandwidthwhile others are having 1800 MHz. and due to this airtel has a very strong network
coverage.
They have different towers at different places for 2G and 3G(Base Transmission Station) and the
signal strength is of 3 to 4 km.
Numbers:10 digitnumbers are allotted to everyone. Initially the series was of 99………. And then it
has come up to 7…………….. so the numbers are decreasing with the increase in population.
DECAY:
Revenue = base * average revenue per user.
Base impliescustomermarketshare andavgrevenue per user implies total market share* call rate.
Month zero month one month two
10000 customers 8000 customers
Means 2000 customersquitusing airtel network . And this is called Decay. And if after two months
the customers leave , then it is called Churn.
Acquisiton department has to take care about decay. It has to be as minimum as possible.
INTERNET:
If base is 100 customers and 40 % are using internet .
2G customers are 24 and 3G customers are 16. So , 24 would be called as 2G UU(unique users) , and
16 would be called as 3GUU. And average revenue per user of 3G is always more than that of 2G.
5. SOME TERMS
SHARE OF NET ADDITION , SHARE OF GROSS ADDITION AND MARKET SHARE
ACQUISITION GROSS ADDITION DECAY NET ADDITION
(SOGA) ---- (M2 DECAY) (SONA)
Lets take an example:
COMPANY GROSS ADD SOGA DECAY NET ADD SONA SONA/SOGA
AIRTEL 100 50% 10% 90 55% 1.10
VODA 40 20% 20% 32 19% 0.95
IDEA 60 30% 30% 42 26% 0.88
TOTAL 200 100% 60% 164 100%
Here it’s a tabular illustration of SONA, SOGA.
As here total additioninthe marketwas200 and airtel got 100 added, but due to decay of 10% only
90% wasnetaddition.Now if there were 1000 existing customers all over.200 added means totally
customers were 1200. Airtel users were (say) 480, after increase of 60%(i.e.) 120 ..their customer
market share becomes 600 and others who were 520 before , and after addition of 40% ,they
reached to 600. It means airtel increased its market share and reached to 50% from 48%.
So SONA should always be greater than CMS. SONA is incremental and CMS is existing.
6. BUSINESS PLANNING AND CUSTOMER INSIGHT
It has two verticals: Revenue planning and Market planning.
MARKET PLANNING:
It comprises of site planning for establishing towers. It depends upon the area , rural or urban. On
the basis of this , LR/LU , NR/NU , HR/HU ARE DEFINED.
If gross revenue is less than or equal to 1.5 lakhs , then it is the area of low revenue and low
utilisation.
If gross revenue isinbetween1.5lakhsto 5 lakhs, thenitis the area of normal revenue and normal
utilisation.
If gross revenue is more than 5 lakhs , then its called the area of high revenue and high utilisation.
Hard block: Its the area where the site is not opening although we are having data pack.
Soft block: it’s the area where the site is opening but working slow.
REVENUE PLANNING:
In this ,the difference between forecasted demand and actual demand is compared.
They also prepare reports like SONA , CMS, SOGA , DECAY , MoU , TMS on daily basis and submit
these reports to CLMdepartment.
Minutesof Usage is determined of incomings and outgoings. For example: airtel to airtel , airtel to
other, local/STD ,other to airtel, etc. Any operator can charge 14 paise per minute on other
operator, like forexample:if uninorcustomercallsonairtel customer,thenthe uninoroperatorwill
pay 14 paise to airtel operator and vice versa (Mobile Terminating Call).
Revenue is generated through SMS , VAS , Data , Voice and MTC( incoming).
7. PUBLIC RELATIONS
Headed by: Anind Fouzdar
He buildsrelationswiththe public , corporates and different business. He handles following areas:
Customerrelations , Business relations , internal communication , Corporate Social Relationships ,
creativity Generation , Managing conflicts , taking financial decisions, Negotiations , asking for
reportsby formingcommittees havingone personasa representative from each department , also
handling motivational programs.
8. AIRTEL MONEY
It’s a prepaid instrument which includes activation. It basically converts the physical cash into
digitised cash. This digitised cash can be used for paying electricity bills , insurance premiums ,
transferring money from person to person , person to bank i.e. called as P to P(person to person)
and P to B (person to bank).
This is a licensed product from RBI.
Registration can be done in three ways:
USSD , Web Registration , Mobile app.
There are two pieces in AIRTEL MONEY:
OPPORTUNITY BASED FINANCIAL INCLUSION
OPPORTUNITY BASED:
In rural areas, everyone isnothavingcredit card.Sotheydo not have the purchase offerswhichthey
could avail while having credit card , so they can go for airtel money. Using this they can pay your
various bills , and get balances also.
In urban areas , AIRTEL MONEY targets mostly youth customers. As they are becoming technology
savvy , they want that they can perform activities on one single click . For this , there is an
integration with DMRC (Delhi Metro Railway Council).
FINANCIAL INCLUSION:
Still now 40% to 45% of our total population do not have bank accounts. They are unbanked and
hence theyeither they send or receive money personally. This is unsafe ofcourse. So airtel money
offers them with great benefits like sending money , paying bills , etc.
It has also 3 legs:
DISTRIBUTION MARKETING SERVICE
Distribution : They mostly go for selective distribution strategy. Rural distribution is
scattered while urban distribution is compact.
9. Marketing: Periodically sending SMS to the customers about the new offers and proper
promoting this product in the market.
Service: All the call centre services are included in this segment.
MARKET SURVEY (dated 27/04/2015)
AREA: MAHENDRU , GANDHI CHOWK.
OUTLET 1 : VIDEO PALACE
Firstlywe visitedthisoulet. This particular store is having 100+ stock base every month and
they acquire 30+ customers (new acquisition) on monthly basis.
Mostly customers are students and they come for airtel money. And that for basically
getting balance purposes. Very often for paying bills and other purposes. Airtel money is
quite popular among the population there.
The retailertriestoinfluence customersaboutairtel moneyanditsbenefits.Thishelpsthem
to increase their customer base. Also other customers also get influenced and they also
want to try this product.
In returnretailersalsogetbenefitslike there are variousschemeswhichtheyget when they
achieve some target.Alsomonthlyschemesare there.There are motivational programs are
conductedto motivate them and increase their sales and revenue. They also get Rs. 10 per
100-499 airtel money recharge and Rs.15 per 500+ recharge.
OUTLET 2: VIDEO HOME
Thisoutletishaving200+ stockbase.And on dailybasistheyacquire 5 to 10 new customers.
Here alsomostlystudent customers are there. The retailer influence customers in order to
increase their sales and this way , they increase their customer base.
The ratio of males to females visiting outlets is less. Mostly males visit the outlets for easy
recharges and airtel money.
AMSO(AIRTEL MONEY SALES OFFICER):
They are persons appointed by the airtel , mostly for
Driving business in the market
Promoting the airtel money.
Watching the particular outlets which are registered under them in a particular area.
They report to the ZONAL MOBILE COMMERCE MANAGER.
Theyhave to visiteitherdailyoronalternate basis.EveryAMSOishaving a proper number of stores
registered under them.
They get salary along with certain incentives which are provided them whenever they meet the
target.
10. ONE CASE PRESENTING AIRTEL ALIVE VALUE
During our visit to outlet named “VIDEO PALACE” , one customer named Santosh kumar . He was
having problem with his current airtel SIM which he was using since last 12 years. Incoming was
there butoutgoingfacilitywasnotworking.He was really annoyed since two days. So he was there
for buyinganewUninor SIM. Thoughhe neverwantedtoswitch to other network but due to above
problem mentioned , he has to take the step.
But as I alongwithPR head: Mr. AnindFouzdar and Zonal head: Mr. Jeetendra were there , so they
bothenquiredthe problemandinstantlytheysolvedthe issue.Itwas not more than 15 min and the
problem was solved. He was getting his outgoing calls as well as incoming calls perfectly.
This made him very happy and he was really grateful to both of them. He also agreed that Airtel is
best among other networks and the service is incomparable. He was satisfied.
Thiswas a practical experience showing a “ HAPPY CUSTOMER” and also a “ SATISFIED CUSTOMER”.
11. DISTRIBUTION NETWORK
LSO: LAPU Selling Outlets
They are outlets selling easy recharges and also SIMs. The outlets are considered LSO if they had
minimum 5 transactions and they do easy recharges of Rs. 500 (min) every month.
Their total number is around 4000 in Patna.
SSO: SIMSelling Outlets
They are outlets which sell minimum one SIMmonthly. They are around 2200 in number in Patna.
DSO: DATA Selling Outlets
These are outlets selling data packs.
In urban areas , LSO = DSO but in rural areas LSO is not equal to DSO.
The hierarchy goes in this way:
ZONAL BUSINESS MANAGER
ZONAL SALES MANAGER
TERRITORY MANAGER
DISTRIBUTORS
LSOs, DSOs , SSOs
BEAT Plan: They have Sales Executives( also called as FACs , FOSs). They are under territory
manager. They have to visit 30 to 35 outlets daily which are registered under them .
They can also divide their visits according to the sales : like if the outlet does sales of more than
15000..then they have to visit daily that outlet. And if the sales are 5000< and > 15000 , then they
can visit it alternatively and if the sales are less than 5000..they can visit twice or thrice a week.
They work for the distributors of the company and paid by them. The company gives a particular
balance to the distributor. The distributor gives it to FACs and these FACs visit different LSOs.
12. 1.25% of margin is received by the distributor. The distributor pays salary to FACs along with some
incentives which they get when they meet certain targets and retailers get 3 % margin on every
recharge they do.
There are Runnerswhotake the formsfilledbycustomersfornew acquisitions.Theyare alsopaidby
the distributors. They visit atleast 4 to 5 times the retailers outlets in a day to collect the forms.
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