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E1E1-E2 CM
MANAGEMENT
Project Vijay
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WELCOME
This is a presentation for the E1-E2 Management
Module for the Topic: Project Vijay.
Eligibility: Those who have got the Upgradation to E1to E2.
This presentation is last updated on 15-3-2011.
You can also visit the Digital library of BSNL to see this
topic.

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Learning objectives
At the end of session, the trainees will be able to
Explain present status of BSNL
Describe Project Vijay Objectives
Define key terms used in Project Vijay such as FoS, Primary
sales,Secondary sales, Tertiary sales, Reach and Extraction , MBO
Explain revised structure of Franchisee channel
Explain team structure for Project Vijay
Explain the concept of market retailer survey
Describe role description of Project Vijay Team
Describe proposed process for ordering and delivery

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BSNL FINANCIAL PERFORMANCE

3/11/2011

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Present status of BSNL


Largest fiber and copper network
Widest geographical reach
Large base of mobile towers
Significant potential to monetize assets through
broadband
Large existing customer base
Long customer relationships
Large , geographically distributed and experienced
manpower
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Challenges
Slowing growth leading to poor financial performance
Facing an extremely competitive environment
Lacking some critical skills to succeed in current market
scenario
Organization structure and processes that are not
attuned to market needs
Low employee motivation and involvement

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Wireless: Basic definitions - I

First time users

Net Adds

New
connections
Churn
Recharge
Voucher

Customer using mobile services for first time


Increase in active subscriber base is called 'Net Adds'
(= No of new connections sold - No of disconnections/ churn)

Total No. of SIMs sold during a duration are considered as


New connections
No. of disconnections leaving the operator are defined as
churn subscribers
Recharge voucher is a paper voucher which customer
buys to recharge his prepaid SIM

Note: New connections are also referred to as Gross adds

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Wireless: Basic definitions - II


CTOP-UP
SIM

Recharge
Commission

Trade Scheme

C Top-Up SIM is a special SIM given to Franchises/Retailers, using which they can
recharge a subscriber's SIM without using any paper vouchers
When a subscriber recharges his prepaid SIM from a retailer's C TOP-UP SIM or Electronic through a
website, it is called electronic recharge or flexi recharge

Commission is the money channel partner gets from telecom operator for making a
sale. E.g. on RCV sale, Franchise gets 4.5% discount of which some part he will pass
on to retailer
Trade scheme is a promotional scheme for channel partners (Franchise, Retailers)
where channel partners could get more incentive over and above usual commission
Incentive could be gifts/ prizes or extra commission in Rs

Trade scheme usually runs for a short duration, e.g. in last 10 days of the
month E.g. Vodafone scheme on new SIMs

Product Points
sold
awarded

Points
slabs

Magic box

25

< 7k

Handset
bundle

20

8k - 23 k

Pre-paid

10

25k - 50k

Reward/ gift
Durables: e.g. Music system,
Refrigerator, washing machine, etc.
Higher value durables: A/C,
Blackberry, laptop, handycam, etc.
Motorcycle, TV, Foreign trip, etc.

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Seven distinct channels exist within BSNL


Franchisee Retailer network accounts for bulk of wireless sales (SIMs, Recharge)
# across India
1

Franchisee
Retailer Network

Definition/ exclusivity

Franchisees: ~1,200
Sub-franchisees: ~6,000 -13,5003
Retailers: 300,000 -350,000

Specific area allocated, exclusive


Non-exclusive (via franchisee)
Non-exclusive (via franchisee/sub franchisee)

~21,000 - 25,000

Non-exclusive
Types: Individual, Post office, Petrol pumps, PCOs

~4,100

BSNL owned outlet (exclusive)


Focus on customer service (vs sales)

Accounts for
~70-95% of
wireless sales4

DSA
3

Customer Service
Centre (CSC)

Company sales
force (proposed)
5

E-PIN franchisee
6

Business
Associate (BA)
7

Business
Development (BD)

Proposed: ~45,000

Exclusive (composed of BSNL employees)


Teams of sales-force split product-wise
Activities planned: Door to door sales, Franchisee monitoring, org.
of melas, etc

~301

Provides soft pins2 to retail outlets with POS terminals


Non-exclusive/ exclusive

~51

Partner company (sys. integrator) for supply of products not


available with BSNL, to meet all customer requirements
Non-exclusive

~150

Exclusive (BSNL employees)


Function as key account managers

External

Note: All figures in this slide are approximate estimates obtained from BSNL 1. Incomplete figure - not available for all circles2. PIN nos transmitted in electronic form to POS terminals, then printed
as recharge coupons and sold to customer 3. Exact no not available 4. Will vary significantly by circle/ SSA
Source: BSNL

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Internal

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Definitions of Key terms used in


Project Vijay
FoS: Feet on street:

Franchise's employees
who will visit retailer shops deliver material and
collect CAF (Customer Application forms ) forms

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Primary Sales:
Sales of product from BSNL to franchise is defined as
'Primary Sales'
Secondary Sales:
Any sales from franchise unit to retailer is defined as
'Secondary Sales'
Tertiary sales:
Product sales from retailer to end-customer is defined
as 'Tertiary Sales'

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Reach:
Reach defined as the ratio of telecom retail outlets
(multi-brand telecom outlets) that sell BSNL products to
the total number of telecom retail outlets in a particular
geographical area .

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Extraction:
Extraction defined as the share of BSNL sales in the
total sales of a particular multi-brand telecom outlet
By number of SIMs
By value of recharge

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Definitions - reach and extraction


ILLUSTRATIVE
Multi-brand telecom outlets selling SIMS (total)

BSNL Reach
Reach defined as the ratio of
telecom retail outlets (multibrand telecom outlets) that
sell BSNL products to the
total number of telecom retail
outlets in a particular
geography

BSNL Extraction
Extraction defined as the
share of BSNL sales in the
total sales of a particular
multi-brand telecom outlet
By number of SIMs
By value of recharge

sell BSNL SIMs (4)

Do not sell BSNL SIMs (4)

BSNL reach = 4 / 8 = 50%

Total SIM sales of a multi-brand telecom outlet

BSNL SIMs sold (2)

non-BSNL SIMs sold (8)

BSNL SIM extraction = 2 / 10 = 20%

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MBO:

Multi-brand telecom outlets

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Revised structure of Franchisee channel

Primary sales will be made from BSNL SSA to


Franchisee.
Franchisee will make the sales to Sub Franchisee and
also to MBO retail Outlets through FoS.
Sub Franchisee will also make sales to MBO retail
Outlets in its area.
MBO retail Outlets will make the sales to customers.

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India likely to have ~700 mn wireless connections over next 5 yrs


Growth will be front-loaded with ~53% new adds in next two years

India wireless connections growth (past and projected)


Subscribers (Mn)
~53% of total
net adds during
2008-13

800

Urban

+8%

703
655

605

600

+20%

554
360

484
400
+59%

347

Total net adds320 million

334

383

Rural
Overall

319

Urban net adds 87 million (27%)

300

261
273
200

166

+96%
96
6

13

33

52

184

235

271

307

343

Rural net adds 233 million (73%)

110

0
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 1 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

Monthly net adds (Urban) in million

2.3

1.6

1.3

1.1

1.1

Monthly net adds (Rural) in million

6.1

4.2

3.0

3.0

3.0

1. BSNL & MTNL WLL not projected & excluded hereafter. Rural & Urban break-up estimated based on Jun-08 break-up Note: Based on circle wise
estimation; BSNL WLL data excluded for projections; Connections are referred as subscribers hereafter in this presentation Source: COAI, AUSPI, TRAI,
Census data, literature survey, BCG analysis

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Seven building blocks of Project Vijay have been defined, in


order to achieve these objectives
1

Creation of Proj.
Vijay team
2

Training of team

Wireless Potential Index


analysis
3

Tariff Tool:
Training and Rollout
SancharSoft:
Set-up and Rollout
5

SancharSoft: Refinement

Market Retailer
Survey
Revised Channel norms

Review Mechanisms

Start of a circle

Ongoing refinement & stabilization


18

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Concept of market retailer survey


In the beginning a survey of retailers selling telecom
products in a particular geographical area will be made
by BSNL survey team with a purpose
To baseline existing retailer universe before pilot launch
To develop channel norms for franchisee FOS and
service frequency, based on analysis of retailer universe
Survey to be conducted in each SSA of circle
Both urban & rural areas to be covered

Survey to be completed in 3-4 weeks duration


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Details which are contained in the


printed survey form in brief
1. Details of the surveyor

2.
3.
4.
5.
6.
7.
8.

Details of the retailers with phone numbers


Do you sell SIMs of any brand? yes/no
Do you sell recharge voucher of any kind? Yes ?No
Do you sell BSNL SIM? yes/no
Who sell BSNL SIM to you?
Details of monthly sale of telecom product.
Comments about BSNL services to the retailer?

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Revised team structure for Project Vijay


New roles created at HO, Circle and Corporate level
Head Office

Circle

SSA/ Region

Project Sponsor
(Director, Cons. Mobility2 )
Project Champion (HO)
(GM, Cons. Mobility, S&D)

Project Champion (Circle)


(CGM)
SSA/ Region Head
Project Leader1
(GM/ DGM Cons. Mobility)

Rollout Managers
(DGM)

SSA sales head - Cons. Mobility


(DGM/ DE/ SDE)

Circle level Nodes


(SDE/ JTO)
Dedicated DGM
stationed at circle but
reporting at HO

Franchisee Managers
(SDE/ JTO)

Retailer Mgr Coordinator


(SDE/ JTO)
Retailer Managers
(TOA/ TTA/ TM)

Channel
Mgmt.
team

Franchisee
Subfranchisee
New roles created in BSNL
Channel (external)
MBO Retailer

Interact via Project Vijay review process


1. Actual designation depends on the size of the circle; Large circles would have a GM Consumer Mobility (S&D) as
the Project Leaders, reporting to PGM Consumer Mobility (who reports to CGM) 2. Consumer Mobility

MBO Retailer
Customer

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Role of Project Vijay Team


Roles

Role Description

Roll Out Mangers (ROM) Responsible for overall roll-out of Project Vijay in circle Expected
to drive on-the-ground implementation in circle and escalate
unresolved issues at the circle level, to HO
Circle level Nodes

Guide SSA teams with best practices, key risks at a


particular stage, etc.
Help SSA teams resolve and escalate issues

SSA Sales Head cons. Mobility

Responsible for overall roll-out of Project Vijay in Region/SSA,


incl. team formation, process changes and value outcome
Act as Sales head, Mobility at SSA/ Region

Franchisee Manger (FM) Provide support and manage franchisees and subfranchisees
Retailer manager
Coordinator (RMC)

Provide support and manage retailer managers

Retailer manager (RM)

Act as retailer survey team, to map retailer universe (up-front)


Directly interact with and provide support to retailers on an
ongoing basis
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Proposed process for ordering and


delivery
Franchisee need not come to SSA office.
Franchisee Will deposit the amount in bank and intimate the
Franchisee manager and AO SALES) about money deposited in
BSNL account to supply the telecom product and place an order on
phone or through email.
AO (Sales) will verify whether the amount has been credited
in BSNL account or not.
After verifying, AO (Sales) and Franchisee manager will deliver
the material at the door of the Franchisees.

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Incentives and Awards


Role

Reimbursement Type
Travel/meal/mobile

Reimbursement
amount per month

Franchisee manager

Travel & Meal


Mobile (if not already
provided)

Rs 1800
Rs 500

Retailer Manager
Coordinator

Travel & Meal


Mobile (if not already
Provided)

Retailer Manager for


visitsup to 40kms/day avg

Travel & Meal


Mobile (if not already
provided)

Rs 1800
Rs 500

Retailer Manager for visits


beyond 40kms/day avg

Travel & Meal


Mobile (if not already
provided)

Rs 2600
Rs 500

Rs 1300
Rs 500

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Franchisee manager and Retailer


manager Roles
Franchisee Manager is expected to manage up-to 2
Franchisees and visit
Franchisee

Manager

them every alternate day


is

also

expected

to

visit

each sub-franchise once a month

Retailer Manager Coordinators expected to manage up


to 15 Retailer Managers and do 1 inspection visit per
Retailer Manager per month
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Role of Retailer manager


Each retailer manager is typically assigned -200-300
retailers, depending on area geography and is expected
to visit each retailer -2 times a month
Final decision on which category the retailer Manager
falls in should be made by the SSA sales head, advised
by the Retailer Manager Coordinator.

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Reimbursement
The base reimbursement
Manager

and

meeting

Retailer

minimum

will be paid to Franchisee


Manager

of

10%

Coordinator

upon

achievement

on

Primary sale( # of SIM and Recharge value)


The base reimbursement will be

paid

Manager upon meeting a minimum of

to

Retailer

30%

achievement on no. of retailers visits done as a


proportion of the total no of retailers visits assigned
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Awards
Award

Level

Frequency

Amount

Criteria

Best Franchisee
manager

Circle

Quarterly

Rs.3000

Highest average
score on
KPAs

Best Retailer
manager
coordinator

Circle

Quarterly

Rs.3000

Highest average
score on
KPAs

Best Retailer
manager

SSA

Quarterly

Rs.750

Highest average
score on
KPAs

Best Sales head

Circle

Quarterly

Rs.5000

Highest average
score on
KPAs

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Conditions for Award


In case of a tie, the award amount may be equally split.
In order to qualify for an award the Franchisee Manager or Retailer
Manager coordinator must meet a minimum of 10% achievement on
Primary sale (# of SIM and Recharge value)

Similarly in, order to qualify for the award, the Retailer Manager must
meet a minimum of 30% achievement on no. of retailers visits done
as a proportion of the total no of retailer visits assigned.

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The final decision on awards at the circle levels should


be made by the PGM/GM (Consumer Mobility) at circle
level at the end of the month, after taking in to the
account the average score on KPAs received from SSAs'

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Facilities
SSA Sales Head

Office space, Desktop with broadband GSM


SIM or WLL phone (if not available)

Franchisee Manager

Office space, Desktop with broadband GSM


SIM or WLL phone (if not available)

Retailer Manager Coordinator

Office space, Desktop with broadband GSM


SIM or WLL phone (if not available)

Retailer Manager

GSM SIM or WLL phone (if not available

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Conclusion
Project Vijay will take care of market share in consumer
mobility.
Market share is the product of reach and extraction. Project
Vijay will increase the reach and extraction of consumer
mobility in the market through dedicated channel
management.
As the reach and extraction will be increased, the market
share will go up
All depends on the sincerity and hard work of Project Vijay
team members.
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