Account Mapping, Market Penetration & Perception Regional M & D Accounts

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

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 (SBUs):
- 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.
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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 hasnt 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.

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Literature Review
Leased Lines

MPLS

International Services Internet

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

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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.

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Research Methodology
Revisit the clients to get more refined data with the required consistency level. Delphi Technique

Understand Requirements from the project guide.

Analyze the data

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

Visit client sites and collect the needed data through a Depth Interview

Provide concrete steps for problem solution

Interact with Industry Experts. Complete the definition of Problem Statement

Visit a pilot set of client sites with Questions. Finalize Questionnaire.

End at a positive note for better future relationship

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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

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Study Scope
Regional Accounts-Manufacturing and Distribution
Infrastructure & Energy FMCG & CD Pharma & Chemical No of Accounts Type of Accounts

25 25

Good Relation Fair Relation No Relation

20
15 10 5 0 6 11 8 12
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.

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List of Companies covered

Infrastructure & Energy ITD Cementation India Ltd Affcon Infrastructure Ltd. Uhde India Ltd.

FMCG & CD Caleb Brett India Ltd Kodak India Pvt Ltd. Asia Pacific Brands India Ltd.

Pharma & Chemical Unichem Laboratories Ltd. Virbac Animal Health India Roche Diagnostics India Pvt Ltd

Hindustan Construction Co. Ltd.

Enercon India Ltd. Emerson Electric Company

Voltas Ltd.
Crompton Greaves Ltd. MIRC Electronics Welspun Pidilite Limited Kores Parle Products RPG Cables

USV
Aventis Pharma Merck India RPG Lifescience United Phosphorus

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Market Research Feedback/Interview Process

Understand Clients Business

Collect Top Executive details of organization

Understand Decision Making Process of Organization

Perception about
Understand Current Usage & Changes being planned
Account Manager Service Account Manager Airtel as Service Provider Interview Process

End at a positive note with assurance for better future relationship.

Collect data about current Service providers & Reasons

Areas of Improvements for Airtel from Clients point of view

Follow-up meet for more refined data (Delphi Technique)

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Company Wise Market Share for the sample

HCL, Singtel, GTL, STPI, Pacific Others 10% Tulip 5% Hughes 5% Reliance 3% BSNL 10% Sify 17% Airtel Tata 0% 7% HCL 20% Others 56% Hughes 17%

Others:

Data Services
Market Share for 122 Mns
Airtel 10%

Vodafone Others Value Added Services 7% 3% Airtel 18%

Market Share for 23.5 Mns

Tata 10%

Tata 40%

Reliance 62%

Enterprise Services
Reliance 1% MTNL 19% Airtel 14% Tata 66%

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

Managed Services, SI & NI

Market Share for 16 Mns

Fixed Line Services

Market Share for 27 Mns

Source: Self Collected Data from Clients, AMJ 2009

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Market construct for Regional M & D accounts

Market Share
Mns Vodafone, 1.241, 1% Mns Tulip, 5.3, 3% Others, 14.6, Mns Mns Reliance, 16.5, 10% 9%

Mns
Airtel, 17.3, 11%

Tata, 67.72, 43% Mns

BSNL, 16.22, 10% Mns

Sify, 19.7, 13%

Mns

Source: Self Collected Data from Clients, AMJ 2009

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Market Construct Break Up

Segment Wise: 80 61.22 60 35.08 40 25.78 20 0
Data
Data in Rs. Mns

Infrastructure & Energy

FMCG & CD
11.19 5.31 7.03 7.82 7.3 9.31 FL PHARMA & Chemical 0.8 1.6 3.5 MS, SI & NI

Product Wise: 80 60 35.08 40 11.197.82 20 0 Notables:

VAS
Data in Rs. Mns

61.22

Data VAS 25.78 FL MS, SI & NI

0.8

5.31 7.3 1.6 FMCG & CD

7.03 9.31 3.5 PHARMA & Chemical

Infrastructure & Energy

-Major expenditure on Data services by all 3 divisions. - Potential scope of VAS in FMCD & CD division

- Low awareness of SI, NI & Managed Services in Regional Accounts.

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Analysis of Services used

Products Total Spend 08-09 Expected Spend 09-10 6.00 AES Revenue 0809 1.00 AES Revenue 0910 2.30 Competitor Revenue 2.70 RMS 08-09 Expected RMS 0910 26.00%

IPLC

3.70

27.03%

MPLS
IBW Leased Lines VSAT's VC/AC VoIP DC/DR Total

64.33
15.27 8.35 18.80 7.92 6.72 3.20 122.07

69.61
16.17 9.10 18.80 7.92 0.40 3.20 129.90

5.93
2.16 0.75 1.30 1.50 0.00 0.00 12.74

9.31
2.33 0.50 1.30 1.50 0.00 0.00 16.34

53.60
13.54 6.65 17.40 6.72 0.40 3.20 109.33

9.22%
14.15% 8.98% 6.91% 18.93% 0.00% 0.00% 10.44%

13.37%
14.41% 5.49% 6.91% 18.93% 0.00% 0.00% 12.58%

Data

Products

Total Spend 08-09 Expected Spend 09-10 5.268 7.3

AES Revenue 0809 3.6

AES Revenue 0910 5.1

Competitor Revenue 1.118

RMS 08-09

Expected RMS 0910 69.86%

BlackBerry

68.34%

VAS

Data cards
GPRS SMS Based Sevices

16.83
0.625 0.8

17.47
1.9 2.2

0.13
0 0.4

0.13
1.2 1.6

14.99
0.625 0.4

0.77%
0.00% 50.00%

0.74%
63.16% 72.73%

Total

23.523

28.87

4.13

8.03

17.133

17.56%

27.81%

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Analysis of Services used

Products

Units

Annual Recurring Revenue 27.81

AES Revenue

RMS

FL

PRI'- Accounts Covered

61 PRI

3.9

14%

Products

Total Spend08-09

Expected Spend 09-10

AES Revenue 08-09

RMS 08-09

Expected RMS 09-10

SI, NI & MS

SI NI Managed Services

5.1 6.09 4.7

5.2 6.09 4.7

0.6 0 0

11.53% 0% 0%

?? ?? ??

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Current Opportunities

Opportunity to be grabbed
IPLC MPLS/VSAT Business Consolidation Fixed Line

2-3 Mns Affcon Infrastructure Nepal Voltas Ltd. Middle East Asia Pacific Consolida tion

3-4 Mns ITD Cementation Kolkata RPG Cables Consolida tion

5-6 Mns Enercon India Roche Diagnostics

0.5-1 Mn Caleb Brett

HCC

Pidilite

Bhutan

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Services for 09-10

VoIP PRI Consolidation

16% 24% 20%

8%

11%

19%
40%
Upgradation in MPLS/IBW

62%

16% 32% 28%

GPRS Based Solutions

24%

Video/Audio Conf

16%

16% 48%
Convinced for change In Thought Hesitant Not planning

28% 40%

20%
16%

16%

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Market Research Feedback/Interview Process

Understand Clients Business

Collect Top Executive details of organization

Understand Decision Making Process of Organization

Perception about
Understand Current Usage & Changes being planned
Account Manager Service Account Manager Airtel as Service Provider Interview Process

End at a positive note with assurance for better future relationship.

Collect data about current Service providers & Reasons

Areas of Improvements for Airtel from Clients point of view

Follow-up meet for more refined data

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Preferred Service Providers & Reasons

Others 24% Airtel 20% Tata 40% Sify 12% Others 24% Airtel 20% MTNL 20% Reliance 8% Tata 56% Airtel 16%

Sify 8% Reliance 8%

Reliance 8%

Tata 36%

MPLS - Assured Quality - Past experience - Pricing - Last Mile - Up Selling - Price

Internet - Feasibility

Fixed Line - Reach - Best Commercials - Connectivity to most offices - Didnt find reason to change

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

- Past Project Experience - Global team suggestions

Airtel 13%

Reliance 32%

Others 8%

Airtel 40%

Others 44%

Tata 20%

Cisco 30%

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

PCS/Wipro 13%

VAS Enterprise Services

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SI & NI

Areas of Improvement: -From Clients Point of View

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

Product updates

Account Manager

Post Sales Support

Price Others

-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

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Areas of Improvement: -From Clients Point of View

- Frequent Restructuring - Hampers relation building - No Notification regarding changes
Post Sales Support Product updates

- Re-discussion of all issues and solutions needs to be initiated

Restructuring

Others Technical Team Price Account Manager

-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

This is verbatim by clients and cannot be considered as Suggestions

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Areas of Improvement: -From Clients Point of View

- Service Account Manager(if client aware) doesnt contact - Not aware about Escalation Matrix.
Others Post Sales Support

- Post Sales Support provided only on outrage.

- Do not get reviews/reports from support team .

Price

Account Manager

Product updates

Technical Team

- Exact Services to be focused on

Restructuring

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

This is verbatim by clients and cannot be considered as Suggestions

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Areas of Improvement: -From Clients Point of View

- Government Company type working. - Gives feeling of being inaccessible to us.
Account Manager

- Need of chase for Rate Changes.

Price

- Follow up needed actively when issue arises

Technical Team Others

Restructuring Product updates

Post Sales Support

- 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.

This is verbatim by clients and cannot be considered as Suggestions

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Perception- Account Managers

16 14 12 10 8 6 4 2 0
Agree
Neutral Disagree

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 clients 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.

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Perception- Service Account Managers

12 10 8 6 4 2 0
11

7 4 3 2 2 1 0 0 0 3 3 3 2 4 3 2 4 3

Agree Neutral Disagree

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.

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Perception - Airtel
15
10

12 8 7 5 8 8

12

11 8 5 6 Excellent Good Bad

10
5 0

Quality

Value offered

Quality of Support 12

Quality of Product

12 10 8 6 4 2 0

11 9 9

- Major Clients are likely to continue and recommend purchase from Airtel.
- Relation should be build further with focus on Business Churning.

5 4

Extremely Likely Somewhat Likely Continue Purchasing Recommend Not at all Likely

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Perception Interview/Feedback process

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

MPLS

Internet, VSATs

Black berry

Very few companies require it and tarnished because of Global Teams.

Pricing

Up Selling

Removal of Relationship Executives

Trust on Service Provider

Clients switching to MPLS

TAT not competitive to that of Competitors.

Data-Cards
Data Cards-Cost of Hardware

Other VAS
Lack of Awareness about Products like GPRS & Dialport Solutions

Fixed Line

SI, NI & Managed Services

Lack of Awareness of Bhartis presence Smaller players exists, thus lower costs.

Inertia to change.

USP of Airtel Data cards over CDMA based hi-speed datacards

Customer need identification

Only if all office location connectivity to be provided

PRI clouds

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Suggestions: Looking CLients point of View

Show that Role is done well for Clients
Clients feel good when they feel to have found RIGHT MATCH for their Organization. Thats 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.. Enterprise Services
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Suggestions: Looking CLients point of View

Any person/organization feels good on getting Importance. Thats what we plan to do. Feedback Process

Show our Care to clients

- 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 )

- Maintenance of 2 databases by each Airtel Employee.

Customer Engagement

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

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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
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Acknowledgement

Mr. Amit Khanna Ms. Parul Khullar Ms. Monali Naik Dr. V. K. Gupta Mr. Parag Sonalkar Mr. Ashish Srivastava Mr. Sanjay Ramachandran Mr. Saiprasad Iyer Ms. Preethi Bhaskaran Mr. Sujay Shah

Sr. HR Manager, Mohali Asst. HR Manager, Mohali Sr. HR Executive, AES, Mumbai Professor, IMT Ghaziabad Manager, AES, Mumbai Manager, AES, Mumbai Asst. Manager, AES, Mumbai Asst. Manager, AES, Mumbai Asst. Manager, AES, Mumbai Asst Marketing Manager, Telemedia, Mumbai & many others....

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Thank You!!

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