imt ghaziabad-bharti airtel ltd 2009

Hardik SemlaniStudent, Institute of Management Technology, Ghaziabad.Summer Management Trainee 2009, Bharti Airtel Ltd.

Account Mapping, Market Penetration & PerceptionRegional M & D Accounts

Enterprise Services Carrier I Corporate

About Bharti Airtel Ltd.

Telecom giant Bharti Airtel is the flagship company of Bharti

Enterprises

Bharti Airtel has been at the forefront of technology and has steered

the course of the telecom sector in the country with its world class

products and services.

Strategic Business Units (SBU’s):

- Mobile Services

- Airtel Telemedia Services

- Enterprise Services

Enterprise Services serves as the single point of contact for all

telecommunication needs for corporate customers in India.

Enterprise Services provide end-to-end telecom solutions to corporate

customers and national & international long distance services to

carriers.

- .


Rationale of the Study

Bharti Airtel Enterprise Services divides its Clients in 3 accounts namely

- Map Accounts - Key Accounts - Regional Accounts

Classification is done on the basis of Penetration and Revenue generated from these Accounts.

The strategy of providing the Business Solution has been successful with most of the Map & Key accounts of Bharti Airtel. They have been successful in creating Win-Win situation for both and capture the complete Telecom spend of those organizations.

However this hasn’t been true with the Regional set of accounts of Bharti Airtel.

This is a cause of concern and the solution for this problem is expected from the analysis.

Also there is good potential of Competitors Account Breaking and providing better Solutions to Regional M & D Accounts.

M & D Sector in the boom phase, so right time generate new business.


Literature Review

International Services

Leased Lines

MPLS

Internet

Source: Market Research Project by Frost & Sullivan (7th Frost & Sullivan ICT Awards 2008)


RESEARCH PROBLEM

The overall problem statement/objective is ‘To map the Regional M & D Accounts, measure various factors influencing the Decision Making Process of Clients and their perception about Bharti Airtel ’. This has been broken into following sub-objectives:

1. Account Mapping of Regional M & D clients.

2. Analyze Market Penetration Opportunities.

3. Measure the various factors influential in the Decision Making Process.

4. Measure the perception of clients about Bharti Airtel as a Service

Provider.

5. Issue resolving and Business Consolidation Solutions.


Research Methodology

Understand Requirements from the project guide.

Understand internal processes by discussion with Team leaders of different heads.

Interact with Industry Experts.

Complete the definition of

Problem Statement

Visit a pilot set of client sites with

Questions. Finalize Questionnaire.

Visit client sites and collect the needed data

through a Depth Interview

Analyze the data

Revisit the clients to get more refined

data with the required

consistency level. Delphi Technique

Provide concrete steps for problem

solution

End at a positive note for better

future relationship


Objective and Scope of Study

Account Mapping of 25 Manufacturing & Distribution (M & D) Regional Accounts

Analyze Market Penetration Opportunities

Measure factors influential for Decision Making process

Perception of clients for Airtel as a Service Provider

Understand and bring into light Client Issues

Initiation of talks for Business Consolidation wherever feasible

Issues & Product Wise Challenges

Suggestions


Study Scope

Regional Accounts-Manufacturing and Distribution• Infrastructure & Energy• FMCG & CD• Pharma & Chemical

0

5

10

15

20

25

6

118

25No of Accounts

5

12

7

Type of Accounts

Good Re-lationFair Rela-tion

Why this study?

- None of these clients is Cash Cow for Bharti Airtel

- All 25 are Map/Key accounts for other Service

Provider

- Good future potential of Competitors Account

Breaking

- Sector in the boom phase, so right time generate

new business.


List of Companies covered

Infrastructure & Energy FMCG & CD Pharma & Chemical

ITD Cementation India Ltd Caleb Brett India Ltd Unichem Laboratories Ltd.

Affcon Infrastructure Ltd. Kodak India Pvt Ltd. Virbac Animal Health India

Uhde India Ltd. Asia Pacific Brands India Ltd. Roche Diagnostics India Pvt Ltd

Hindustan Construction Co. Ltd. Voltas Ltd. USV

Enercon India Ltd. Crompton Greaves Ltd. Aventis Pharma

Emerson Electric Company MIRC Electronics Merck India

Welspun RPG Lifescience

Pidilite Limited United Phosphorus

Kores

Parle Products

RPG Cables


Market ResearchFeedback/Interview Process

Understand Client’s

Business

Understand Current Usage & Changes being

planned

Collect data about current

Service providers &

Reasons

Areas of Improvements for Airtel from

Client’s point of view

Perception about

• Account Manager• Service Account

Manager• Airtel as Service

Provider• Interview Process

Collect Top Executive details of

organization

Understand Decision Making

Process of Organization

End at a positive note

with assurance for better future

relationship.

Follow-up meet for more refined

data (Delphi Technique)

Data Services

Value Added Services

Managed Services, SI & NI

Fixed Line

ServicesEnterprise Services

Airtel10%

Tata40%

Sify17%

BSNL9%

Reliance3%

Tulip5% Hughes

5%

Others10%

Market Share for 122 MnsAirtel18%

Tata10%

Reliance62%

Vodafone6%

Others3%

Market Share for 23.5 Mns

Airtel14%

Tata65%

Re-liance

1%

MTNL19%

Market Share for 27 Mns

Tata7%

HCL20%

Hughes17%

Others56%

Market Share for 16 Mns

Others:PCS, Wipro, Microland, NETSOL, Helison, Fortinet, Brisk Infotech, CMS


Company Wise Market Share for the sample

Others:HCL, Singtel, GTL, STPI, Pacific

Source: Self Collected Data from Clients, AMJ 2009


Market construct for Regional M & D accounts

Airtel; 17.3; 11%

Tata; 67.72; 43%

Sify; 19.7; 12%

BSNL; 16.22; 10%

Reliance; 16.5; 10%Tulip; 5.3; 3%

Vodafone; 1.241; 1%Others; 14.6; 9%

Market Share

Mns

Mns

Mns

Mns

Mns

Mns

Mns

Mns

Source: Self Collected Data from Clients, AMJ 2009


Market Construct Break Up

Infrastructure & Energy

FMCG & CD PHARMA & Chemical0

20406080

35.08

61.22

25.78

11.195.31 7.037.82 7.3 9.310.8 1.6 3.5

Data

VAS

FL

MS, SI & NI

Segment Wise:

Notables:- Major expenditure on Data services by all 3 divisions. - Low awareness of SI, NI &

Managed Services in Regional Accounts.

- Potential scope of VAS in FMCD & CD division

Data VAS FL MS, SI & NI0

20

40

60

80

35.08

11.19 7.820.8

61.22

5.31 7.31.6

25.78

7.03 9.313.5

Infrastructure & EnergyFMCG & CDPHARMA & Chemical

Data in Rs. Mns

Product Wise: Data in Rs. Mns


Analysis of Services used

Products Total Spend 08-09 Expected Spend 09-10

AES Revenue 08-09 AES Revenue 09-10 Competitor Revenue

RMS 08-09 Expected RMS 09-10

IPLC 3.70 6.00 1.00 2.30 2.70 27.03% 26.00%

MPLS 64.33 69.61 5.93 9.31 53.60 9.22% 13.37%

IBW 15.27 16.17 2.16 2.33 13.54 14.15% 14.41%

Leased Lines 8.35 9.10 0.75 0.50 6.65 8.98% 5.49%

VSAT's 18.80 18.80 1.30 1.30 17.40 6.91% 6.91%

VC/AC 7.92 7.92 1.50 1.50 6.72 18.93% 18.93%

VoIP 6.72 0.40 0.00 0.00 0.40 0.00% 0.00%

DC/DR 3.20 3.20 0.00 0.00 3.20 0.00% 0.00%

Total 122.07 129.90 12.74 16.34 109.33 10.44% 12.58%

Products Total Spend 08-09 Expected Spend 09-10

AES Revenue 08-09

AES Revenue 09-10

Competitor Revenue

RMS 08-09 Expected RMS 09-10

BlackBerry 5.268 7.3 3.6 5.1 1.118 68.34% 69.86%

Data cards 16.83 17.47 0.13 0.13 14.99 0.77% 0.74%

GPRS 0.625 1.9 0 1.2 0.625 0.00% 63.16%SMS Based Sevices 0.8 2.2 0.4 1.6 0.4 50.00% 72.73%

Total 23.523 28.87 4.13 8.03 17.133 17.56% 27.81%

Data

VAS


Analysis of Services used

Products Total Spend08-09 Expected Spend 09-10 AES Revenue 08-09 RMS 08-09 Expected RMS 09-10

SI 5.1 5.2 0.6 11.53% ??

NI 6.09 6.09 0 0% ??

Managed Services 4.7 4.7 0 0% ??

Products Units Annual Recurring Revenue AES Revenue RMS

PRI'- Accounts Covered 61 PRI 27.81 3.9 14%

FLSI, N

I & M

S


Current Opportunities

Opportunity to be grabbed

IPLC

2-3 Mns

Affcon Infrastructure

Nepal

Voltas Ltd.

Middle East

MPLS/VSAT

3-4 Mns

Asia Pacific

Consolidation

ITD Cementati

on

Kolkata

RPG Cables

Consolidation

HCC

Bhutan

Business Consolidation

5-6 Mns

Enercon India

Roche Diagnostic

s

Fixed Line

0.5-1 Mn

Caleb Brett Pidilite


Services for 09-10

62%19%

8%12%

PRI Consolidation

16%

40%20%

24%

VoIP

16%

16%

40%

28%

Video/Audio Conf

48%

16%

20%

16%

GPRS Based Solutions

Convinced for change

In Thought

Hesitant

Not planning

32%

24%28%

16%Upgradation in MPLS/IBW


Market ResearchFeedback/Interview Process

Understand Client’s

Business

Understand Current Usage & Changes being

planned

Collect data about current

Service providers &

Reasons

Areas of Improvements for Airtel from

Client’s point of view

Perception about

• Account Manager• Service Account

Manager• Airtel as Service

Provider• Interview Process

Collect Top Executive details of

organization

Understand Decision Making

Process of Organization

End at a positive note

with assurance for better future

relationship.

Follow-up meet for more refined

data


Preferred Service Providers & Reasons

Airtel20%

Tata40%

Reliance8%

Sify8%

Others24%

MPLS

Airtel20%

Tata36%

Reliance8%

Sify12%

Others24%

Internet

Airtel16%

Tata56%

Reliance8%

MTNL20%

Fixed Line

Airtel40%

Tata20%

Reliance32%

Others8%

VAS

Airtel13%

Cisco30%

PCS/Wipro13%

Others43%

SI & NI

- Assured Quality - Pricing- Past experience - Last Mile

- Up Selling - Feasibility- Price

- Reach - Best Commercials- Connectivity to most offices- Didn’t find reason to change

- Pioneers - Post Sales Support- CMDA Tech/ High Speed

- Past Project Experience- Global team suggestions

- Up Selling- Past Experience- Connectivity- Technology Expertise- Past Relationship


Areas of Improvement:-From Clients Point of View

Technical Team

Account Manager

Price

Restructuring

Product updates

Post Sales Support Others

- Lack of Aggressiveness - Have to be called for visit - Multiple Point of Contacts creating confusions - Poor Co-ordination between different Circles

- Same Quality, Different Pricing

- Budgetary Concerns

- Tender Process takes both into service and price into consideration

- Price premiums/Services - Unfit USP ( for Regional AC)

This is verbatim by clients and cannot be considered as Suggestions



Account Manager

Price

Others

Post Sales Support

Product updates

Restructuring

Technical Team

- Frequent Restructuring- Hampers relation building- No Notification regarding changes - Re-discussion of all issues and solutions needs to be initiated

- Need of visit by Technical Person to understand requirements

- AM not completely competent to understand requirement and provide solutions

- Gap between requirement and delivery

- Technical Updates needed along with Product Updates




Account Manager

Price

Others

Post Sales Support

Product updates

Restructuring

Technical Team

- Service Account Manager(if client aware) doesn’t contact - Not aware about Escalation Matrix.- Post Sales Support provided only on outrage. - Do not get reviews/reports from support team .

- Exact Services to be focused on

- Multiple Point of Contacts should be added for updates with due permissions.




Account Manager

Price

Others

Post Sales Support Product

updates

Restructuring

Technical Team

- Government Company type

working.

- Gives feeling of being inaccessible

to us.

- Need of chase for Rate Changes.

- Follow up needed actively when

issue arises

- Awareness regarding new network

setups.

- Clients are not considered integral part

while decision making

- Internal meetings of Account Managers

should be just at start or end of day.



Perception- Account Managers

Notables:- Good Relationship & Professionalism shared by Account Managers

- 5/25 Accounts never visited by Account managers. So no relation exists.

- Response time takes a hit. Clients need to follow up to be informed about changes.

- Understanding client’s business would be key to sales. For eg: need of SMS services,

connectivity solutions to CNF etc

- Account Managers needs to increase the trust of clients on Airtel by working on WIN-

WIN solutions.

Knowle

dge

Prof

essio

nalis

m

Good

Relat

ions

hip

Makes

Pos

itive

Con

tribu

tion

Respo

nds in

tim

e

Keeps

Info

rmed

Not A

pplic

able

0

4

8

12

16AgreeNeutralDisagree


Perception- Service Account Managers

Know

ledg

e

Prof

essio

nalis

m

Good

Relat

ions

hip

Posit

ive C

ontri

butio

n

Respo

nses

in T

ime

Keep

s Inf

orm

ed

Not A

pplic

able

02468

1012

21

0 0

2 23 3

4

0

4 4

11

23 3

7

3 3AgreeNeutralDisagree

Notables:

- SAM Structure already has been changed. By Bharti Airtel. So this perception of no use

for study.

- However SAM needs to be aware of the perception clients are carrying.

- SAM can try finding expectation of clients from them and analyze it.


Perception - Airtel

Quality Value offered Quality of Support Quality of Product02468

1012

8

5

8

6

10

12 1211

78

5

8

Excellent

Good

Bad

Continue Purchasing Recommend0

2

4

6

8

10

129 9

1112

54

Extremely LikelySomewhat LikelyNot at all Likely

- Major Clients are likely to continue and recommend

purchase from Airtel.

- Relation should be build further with focus on Business

Churning.


Perception – Interview/Feedback process

Taking trade off between cost incurred and the returns it should be on yearly basis

All clients look forward to a better relation. Hit the Iron when it is Hot. Show the WE CARE Attitude now.


Product Wise Issues

IPLC

Very few companies require it and tarnished because of Global

Teams.

MPLS

Pricing

Trust on Service Provider

Internet, VSAT’s

Up Selling

Clients switching to MPLS

Black berry

Removal of Relationship Executives

TAT not competitive to that of Competitors.

Data-Cards

Data Cards-Cost of Hardware

USP of Airtel Data cards over CDMA based hi-speed

datacards

Other VAS

Lack of Awareness about Products like GPRS & Dialport Solutions

Customer need identification

Fixed Line

Inertia to change.

Only if all office location connectivity to be provided

PRI clouds

SI, NI & Managed Services

Lack of Awareness of Bharti’s presence

Smaller players exists, thus lower costs.


Suggestions: Looking Client’s Point of View

Show that Role is done well for ClientsClients feel good when they feel to have found RIGHT MATCH for their Organization. That’s

the purpose here.

Scalability to feedback by SAM- Clients conveniently forgets about their SAM and Escalation Matrix.- Our role is to keep AM free from Issue Solving and remind customers about teams to be approached for different tasks.- Feedback to be taken by SAM from clients atleast twice a month. - Consolidated feedback should be shared with A M for new suggestion to clients

Provision of consolidated report- Can be used to provide a softcopy to clients about the Uptime, Down time, Usage, Additional Requirement etc to clients.- Shows as we would like to give you the best information we have and help you choose the best service depending on your organizations requirement.

Confidence Motivation Mails-Addition of New Infrastructure. Feasibility in their office location.- Awards & Certification (Already being done).- Mails regarding new deals..


Show our Care to clientsAny person/organization feels good on getting Importance. That’s what we plan to do.

Feedback Process- CSMM survey covers only 2 regional clients/Account Manager. - Appoint trainees to explore opportunities in such accounts by regular feedback(per trainee 35 Accounts i.e. All accounts of an Account Manager )

Customer Engagement- Maintenance of 2 databases by each Airtel Employee. 1. Having the Contact details of SPOC of the organization (Admin & IT) 2. Having Contact Details of Upper & Lower POC also(Relation building mails)

- Any Restructuring change communication will go with cc to all point of contacts at both sides with a justification.- Product Updates to be filtered well, depending upon its importance in the sector.

Care Attitude- Visit by one technical team member along with AM to clients site atleast per 2 months.- Call POC for product awareness sessions once every 3 months

Suggestions: Looking Client’s Point of View


Suggestions: Looking as a Part of Airtel

Continue similar efforts on Training front as now for Account Managers on all major products

More training on VAS front as clients not aware of our products.

Active Implementation of Forum created by Mr. Kishore Asrani for the M & D team. Interaction to be increased

Create USP for Data cards.

Responsibility to Vertex to map the office locations of clients.

Generate Feasibility of those locations and share with clients & Account Managers

Common Consensus to be reached for the tasks of different team. For eg: whether a product person should visit client or

not. Whether AM should handle the issues of client etc.

A Point of Contact with client (AM, SAM, RE etc)should be kept aware of all issues and changes wrt client.

Reduce TAT for Data-cards and Blackberrys either by re-tie-up with dealer directly to be competitive in Market.(Current

TAT is 7- 10 days after Purchase Order)

Mechanism need to be developed to map the global level teams.

Process needs to be set up for continuous identification of Tenders for current or potential customers


Acknowledgement

Mr. Amit Khanna Sr. HR Manager, Mohali

Ms. Parul KhullarAsst. HR Manager, Mohali

Ms. Monali NaikSr. HR Executive, AES, Mumbai

Dr. V. K. GuptaProfessor, IMT Ghaziabad

Mr. Parag Sonalkar Manager, AES, MumbaiMr. Ashish Srivastava

Manager, AES, Mumbai

Mr. Sanjay Ramachandran

Asst. Manager, AES, Mumbai

Mr. Saiprasad IyerAsst. Manager, AES, Mumbai

Ms. Preethi Bhaskaran

Asst. Manager, AES, Mumbai

Mr. Sujay Shah

Asst Marketing Manager, Telemedia, Mumbai

& many others....

imt ghaziabad-bharti airtel ltd 2009

Documents

post sales

decision making

competitors

understand

fixed line

past experience

technical

future relationship