sales & distribution report

The Indian Institute of Planning & Management

Project Trimester(Spring Summer 2008-10)

Sales and Distribution Management

“Sales and Distribution” Effectiveness: A Comparative Study of Tata Sky & Airtel DTH.

Submitted by:(GROUP NO.HR263)-

Gaurav Soni (16)Kumar Deepak (24)

Sanya Gulati (49)Saurabh Mishra (51)

DTH industry Group No. - HR-263

EXECUTIVE SUMMARY

Over the years back as we all know cable TV was everywhere, but the two three years back a new

technological revolution happened and direct to home satellite television came into existence and

as days passes by DTH sector in India has developed with the availability of more brands, better

quality products and better service.

Our research facilitates designing an overall sales and distribution management strategy for a DTH

sector after an in-depth study and analysis of two established brands in the DTH business sector:

Tata Sky and Airtel DTH (India).

The objective of our research was:

To compare the sales and distribution effectiveness (Quantitative Research).

To carry out a detailed study of “Logistics Network”

To design a comprehensive sales system.

The data collected for the research involves the use of both primary and secondary sources.

Primary data is based on the findings from the company personnel with the use of tools like

questionnaires and discussions. This data is further substantiated by the use of appropriate

secondary sources like internet and books.

In this project we went through interviewing the retailers, distributors and management officials of

Tata Sky and Airtel DTH covering most of the regions of Delhi and NCR.

TATA SKY & AIRTEL DTH 2


After all the research and analysis work done during the course time of this project we came to the

conclusion that Tata Sky sales is more effective than that of Airtel DTH, but even then there is a

great room for improvement available for them.



ACKNOWLEDGEMENT

We would like to express our gratitude to all the dealers, distributors and the

corporate officials of Airtel DTH and Tata Sky for their kind support and assistance

while furnishing the required information’s.

We also express our gratitude and thanks to Prof. Maninder Singh for their

invaluable co-operation, continued support and guidance as well as healthy criticism

throughout resulting works. Their able guidance, encouragement and valuable suggestion

led our way pass easily through most difficult period during this Sales Project.

We would also like to thank the faculty and staff of IIPM because without their

help this project would not have been completed.



TABLE OF CONTENTS

S No. Topics Page No.

1. Methodology …………………………………..………………...5

2. Company Background ………………………………..…………8

3. Findings Data Analysis and Conclusions ………………….….. 14

4. Recommendations ……………………………………………....32

5. Sales Reporting System………………………………………….33

5. Bibliography …………………………………………………….35

6. Annexure………………………………………………………....36



METHODOLOGY

Business Sector: In order to study the sales and distribution effectiveness of two

organisations we decided to take the ‘DTH Industry’.

Organisations identified for the study: Under the ‘Footwear Industry’ the two organisations which we are going

to study are:

Tata sky

Airtel DTH

Objective:

The main objective of the study can be divided into following heads:

To compare the Sales and Distribution Effectiveness (Quantitative research).

To carry out a detailed study of ‘Logistics Network’: Mode/s, Costs and

Monitoring Systems.

To design a comprehensive sales reporting system for the chosen business

sector.



Data Collection:

Data collection will be done from both Primary as well as Secondary sources.

Primary data collection: It will be collected by In-Person Interviews as well as

Telephonic Interviews of various personals/managers working in the organisation and

dealer’s/retailer’s etc.

Secondary data collection: From newspaper, magazines, libraries and websites.

Research Design:

The research is descriptive type and accordingly the design is formulated so that

precise and relevant information may be gathered.

Data Collection tools:

Structured Questionnaires



Sample design:

The research will be conducted by interviewing various Organisational officials and

the Dealer’s, Retailer’s and Franchisee’s.

Sampling: Simple random and Convenient.

Method Adopted: Personnel Interviews

Field: Delhi and NCR regions.

.

Sample Size:

The target will be to interview at least 4 distributor of each company and as many

official’s as possible.

Data analysis tools and technique:

.

Graphical method (Bar Graph).



COMPANY BACKGROUND

Tata Sky

History:

Tata Sky, an 80:20 joint venture between Tata Sons and the Star group, provides satellite

television services to Indian viewers. The company was incorporated in 2004 and offers a

range of media and entertainment options to customers.

The TATA Group is one of India’s largest and most respected business conglomerates. It

comprises diversified businesses in sectors such as materials, engineering, services,

energy, information systems & communications, consumer products and chemicals.

The Group and its enterprises have been steadfast and distinctive in their adherence to

business ethics and their commitment to corporate social responsibility. This is a legacy

that has earned the Group the trust of many millions of stakeholders in measure few

business houses anywhere in the world can match

Areas of business

Tata Sky's direct-to-home satellite platform delivers more than 100 television channels,

movies and interactive services for games, learning, recipes, news, chat rooms, etc. It has

state-of-the-art digital infrastructure and a retail network that covers more than 4,500

towns in India.

Location

Based in Mumbai, the company has three call centres (Pune, Chandigarh and



Hyderabad).

Airtel DTH

History:

The businesses at Bharti Airtel have always been structured into three individual strategic

business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise

Services. The mobile business provides mobile & fixed wireless services and has recently

launched a Direct-to-Home (DTH) service, Airtel digital TV. The company provides end-

to-end data and enterprise services to the corporate customers.



Findings, Data Analysis

And Conclusions



DISTRIBUTION SYSTEM

AIRTEL DTH

DISTRIBUTION SYSTEM

A proper distribution system is very important for every company because now a days the

customer wants full service without any pain. Airtel has a deep penetration in the market

due to its cellular services and it has provided them a advantage in the market. I have

also seen in the market the happy faces of customers and retailers of Airtel because of the

easy availability of Airtel DTH retailers.

BENEFITS OF GOOD DISTRIBUTION SYSTEM

1. Easy availability

2. Satisfied customers

3. Competitive advantage

4. Better market reputation

5. Saves time



DISTRIBUTION SYSTEM OF AIRTEL1. Organisation (C&FA's)2. Distributor3. Retailer4. Customer

Several FOS

FOS FOS FOS

Different retailers Different retailers Different retailers


OrganisationC & FA

Distributior


Channel Structure:

AIRTEL DTH

Manufacturing unit

Warehouses

Distributors Exclusive Showrooms Demo at shopping malls Exclusive Retailers

Product Area Distributor

Dealer


DISTRIBUTOR


Retailer

Customer

Tata Sky DTH

Manufacturing Unit

Warehouses

Dealer Exclusive Showrooms (Experience Zone) Corporate sales


Distributors


Retailer

Customer

Criterion and Condition for selecting Channel Members:

The criterion followed for the selection of channel members is almost same in case of

both Airtel DTH and TATA Sky DTH. The various conditions based on which the

members are selected are:

1. Financial Capacity: The financial condition of the member must be sound and he

should posses a neat and clean past market record.

2. Market Reputation: He should have a good reputation in the market and also with

the customers.

3. Space and Location: In case it is a distributor the factor taken into consideration is

-Space and in case of retailers it is location.

4. Experience: He should have been in the field for a minimum period of 5 years.



Average Inventory Size:

Airtel DTH: The average inventory size kept by airtel is of almost 15 set-top box for

each set of set-top box sold.

Tata Sky: The average inventory size in case of tata sky is of 20 set-top box for each

set of set-top box sold.



LOGISTICS:

Airtel DTH: Order processing time in case of Airtel is 1 day. Although airtel follows

a special logistics for any urgent demand.

TATA Sky DTH: In case of TATA sky the order processing time is 2 days. The

modes of transportation adopted are basically Road and Rail, but in certain urgent cases it

may be sent through Air.

The order processing of Tata Sky is same as that of Airtel.



Performance Appraisal

Airtel DTH: The performance appraisal of channel members in case of airtel is done

on half-yearly basis. The major criterion for appraisals is the net increase in terms of

sales compared to that of last time .the incentives provided varies from gifts to free

foreign trips.

Tata Sky: In case of Tata sky the evaluation is done on a quarterly basis and the

appraisal is provided annually.



The reason for high satisfaction of the channel members of tata sky can be understood

from this, as they are duly appraised on a regular basis and their problems are duly

solved.

Assigning of targets:

Airtel DTH: In Airtel DTH the targets are assigned to the sales personnel’s based on

the following criterions:

i. Population of that area.

ii. No. of distributors in that area.

iii. Potential available in that territory.

iv. Back history of individual sales personnel.

Tata Sky: In TATA Sky the targets are assigned to the sales personnel’s based on the

following criterions:

i. Total area to be covered.

ii. Past performances of the individual.

iii. No. of distributors in that region.

LIMITATIONS OF THE STUDY

While working on this project I have to face some difficulties while conducting the

survey.

People were not interested in giving their actual information about their family income

and airtime, as they were extremely scared about the income tax some people have

difficult to take them in confidence so that they can give correct information.

Some of the limitations are:

Not at home

Refusal to co-operate

Respondent bias



Market Research:

Airtel DTH: They do market research through questionnaires which they ask to fill

from their customer after they install their set-top box.

Tata Sky: They do not conduct any individual market research but they get the desired

information from the same method as they ask customer to fill a questionnaire during the

installation of the product.

SALES SYSTEM

On the basis of data collected from the retailers, distributors, etc. an approximated comparison of the two is shown below:


Overall Effectiveness

Airtel DTH TATA Sky


Quality maintenance:


Quality Maintainence

Airtel DTH Tata Sky


Customer Orientation:


Customer Orientation

Airtel DTH Tata Sky


Delivery Time:


Delivery Time

0

43

44

45

46

47

48

Tata Sky Airtel DTH


Promotional activities:


Promotional Activities

Tata Sky Airtel DTH


Services of the sales persons:


Salesmen services

Airtel DTH Tata Sky


Ease & flexibility of ordering:


Order flexibility

Airtel DTH Tata Sky


Transporters Behavior:


Transporters Behaviour

Airtel DTH Tata Sky


After going through the above values it can be concluded that Tata Sky sales and

distribution system is more effective than that of Airtel.

Recommendations

1. Airtel should focus more on their promotional activities in more innovative manner

so that they can provide more competition to their competitors.



2. As Tata Sky Plus is targeting a niche market, it should make its products like

provogue more widely available in the market.

3. The availability of DTH is still lacking in the rural.

Bibliography

For our project we have referred to the following places for information:



www.tatagroup.com/tatasky

www.airteltv.in

www. Indiantelevision.com Sales and Distribution Management – by F.L.Lobo

Marketing Management – by Philip Kotler

Times of India, Hindustan Times "Bharti Airtel set to foray into India's DTH market, to launch Airtel Digital TV from Oct.

9". International Business Times (08 October 2008). 8 October 2008. http://in.ibtimes.com/articles/20081008/bharti-airtel-digital-dth-service-satellite-television.htm. Retrieved 2008-10-13.

"ADAG & Bharti gearing for massive on air war".


http://economictimes.indiatimes.com/News/News_By_Industry/Media__Entertainment_/Entertainment/ADAG__Bharti_gearing_for_massive_on_air_war/articleshow/3247722.cms

http://in.ibtimes.com/articles/20081008/bharti-airtel-digital-dth-service-satellite-television.htm




http://www.airteltv.in/

http://www.tatagroup.com/tatasky


Annexure

Questionnaire(Sales and Marketing department)



1) Which brand of Direct to home do you own?Airtel-DTH TATA Sky

2) Which kind of subscription do you use? Yearly Six Monthly Quarterly

Monthly Two Year

3) How did you get to know about this brand? Newspapers Magazines Friends & Relatives Retailers Others (Specify)

4) From where did you purchase the connection? Authorized dealer Exclusive Shoppe Dealer nearby you A Known Dealer

Reason________________________________________________________________________

5) What percentage of discount you get from the dealer? 5% 10% No discount Vouchers offered

6) Have you ever faced any problem in your DTH regarding the following? Maintenance Servicing Manufacturing Defect Others Others

: 7) Rank the following:

1-Most Important 2-Important 3- Necessary 4-Least Important 5-Not Necessary Price Brand After Sales Service Reach of Showroom Availability of Product Discount/Scheme offered

8) What kind of After Sales Service do you use?Company Service Other than Company

9) Rate the services of the after sales person on the basis of following;

10) How much time taken by the company to solve your problem completely? 24 hours 2-3 days 1 Week More

11) a) How many times you have lodged a complaint regarding a particular product?

TATA SKY & AIRTEL DTH

CRITERIA YES NOResponsiveness AvailabilityHelpfulnessCapability

33


1 time 2-4 times More

b) If yes, on how many calls have you been attended by an executive? Readily available 2 – 3 times

4-7 times More 12) 11) Tick the efficiency of the Sales Person to make your buying more comfortable? Very efficient Efficient Sharp/rude Less knowledgeable

Less efficient Less knowledgeable Knowledgeable but Less effective

Convince you to buy other brand

14) How the product has reached to your home? You yourself have taken Dealer has provided you with a service

15) Tick one of the following: DEGREE PRODUCT COMPANY

Fully SatisfiedPartially Satisfied Not Satisfied

If Not Satisfied, which brand in future you would like to buy and why?________________________________________________________________________________

NAME:_________________________________________________________________________OCCUPATION: SERVICE BUSINESS OTHERS (Specify) _____________________

HOUSEHOLD INCOME: 1.5 – 3Lakhs 3 – 4.5Lakhs 4.5 – 6Lakhs Above 6Lakhs

THANK YOU



Questionnaire(For Dealer’s/Retailer’s/Franchisee)

CHANNEL MEMBER

1) a) What are the Terms and Conditions set by the Company for the Channel Members?

_____________________________________________________________________________ _____________________________________________________________________________

b) What are the average sales per month?__________________________________________________________________

________c) How much is the average sale for refrigerator per month? ____________________________________________________________________________________________________________________________________________________

2) Are you Happy with the sales targets set by the Company?

____________________________________________________________________________________________________________________________________________________________

3) Do you get any credit period from the company?

Yes_______ No_______If Yes, What is the credit period you get?

i) Upto 15 days ii) 15-30 days iii) >30 days

4) What is minimum reorder level?

__________________________________________________________________________5) What are the margins that you get from the company?

________________________________________________________________________

__

6) What is the average order cycle time taken by the company?

i) < 5 days ii) 5-10 days iii) > 10 days

7) Where would you rank the services/assistance provided to you by the company/s

Services Very Good Good Satisfactory Poor Very



poor

Delivery Time

Quality Maintenance

Incentives

Promotional activities

Condition of Product

Commercial Terms

Services of Sales Persons

8) How will you rate the efficiency of your sales persons?

a) Very Good b) Good c) Satisfactory d) Poor e) Very poor

9) How the Company does help you to assist the Product to the End Consumers? Yes______ No______ If Yes, Do you face any problems in the Distribution Network of the Company?

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10) Do you face complains? Yes______ No______ If Yes, what are the kinds of Complains?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

11) How do you manage them in the given span of time? _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Person Contacted:

____________________________________________________________________



Name of dealer:

_____________________________________________________________________

Address:

_____________________________________________________________________

Tel. No.:

______________________________________________________________________



COMPANY REPRESENTATIVE

1) What is the Sales Turnover of the Company?

--------------------------------------------------------------------------------------------------------------------------------

2) a) In how many Zones is India Divided? ______________________________________________

b) On what basis Delhi – NCR is divided? _____________________________________________c) Number of showrooms India____________ Delhi – NCR___________

3) a) What is the Company Sales Organization Structure for HONDA?

---------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

b) What are the profiles of the Members involved in the Structure?---------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

c) Who Monitors the entire Sales Process? In what ways does it serves as an effective tool for the company.

------------------------------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4) a) What are the formats opted by HONDA for the Distribution of its product?



----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

b) On what basis does the Company chooses its Channel Members?----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

c) What are the Criteria to Appraise the Channel Members?------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

d) How does the Company responds the different distribution Flaws faced during the

process?------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5) What is the product range?

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6) a) How many warehouses do you have?

India____________ Delhi – NCR___________b) How are Orders Processed among the Channel Members and the Company Level?------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7) How the Logistics Network Works including:

a) Importing of the product ______________________________________________________________________________________________________________________________



___________________________________________________________________________________________________

b) Distribution of the Product _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8) What is the Basis on which Incentives are given to various Channel Members?

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9) a) How many Service Centers does the Company have?

India____________ Delhi – NCR___________b) How the Complain Cell does bring about the Effectiveness of its Service Centers regarding the Channel Members and its Consumers?

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10) Is there any kind of Marketing Research done by the Company with respect to Channel Members and Consumers?

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


sales & distribution report

Documents