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E1 E1-E2 CM E2 CM MANAGEMENT MANAGEMENT For internal circulation of BSNLonly MANAGEMENT MANAGEMENT Project Vijay Project Vijay

EE11--E2 CME2 CM - Bharat Sanchar Nigam Limitedtraining.bsnl.co.in/digital_library_source... · Franchisee need not come to SSA office. Franchisee Will deposit the amount in bank

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Page 1: EE11--E2 CME2 CM - Bharat Sanchar Nigam Limitedtraining.bsnl.co.in/digital_library_source... · Franchisee need not come to SSA office. Franchisee Will deposit the amount in bank

E1E1--E2 CME2 CMMANAGEMENTMANAGEMENT

For internal circulation of BSNLonly

MANAGEMENTMANAGEMENT

Project VijayProject 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 E1-

to E2.

This presentation is last updated on 15-3-2011.

You can also visit the Digital library of BSNL to see this

topic.

For internal circulation of BSNL only

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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 , MBOsales,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

For internal circulation of BSNL only

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BSNL FINANCIAL PERFORMANCEBSNL FINANCIAL PERFORMANCE

For internal circulation of BSNLonly3/11/2011

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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 broadband

Large existing customer base

� Long customer relationships

� Large , geographically distributed and experienced

manpower

For internal circulation of BSNL only

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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 scenario

Organization structure and processes that are not

attuned to market needs �

Low employee motivation and involvement

For internal circulation of BSNL only

Page 7: EE11--E2 CME2 CM - Bharat Sanchar Nigam Limitedtraining.bsnl.co.in/digital_library_source... · Franchisee need not come to SSA office. Franchisee Will deposit the amount in bank

Wireless: Basic definitions - I

Customer using mobile services for first timeFirst time users

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

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

New connectionsconnections

No. of disconnections leaving the operator are defined as

churn subscribersChurn

Recharge voucher is a paper voucher which customer

buys to recharge his prepaid SIM

Recharge

Voucher

Note: New connections are also referred to as Gross adds

2

For internal circulation of BSNL only

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Wireless: Basic definitions - II

C Top-Up SIM is a special SIM given to Franchises/Retailers, using which they canCTOP-UPrecharge a subscriber's SIM without using any paper vouchersSIM

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

Recharge

Commission is the money channel partner gets from telecom operator for making aCommission sale. E.g. on RCV sale, Franchise gets 4.5% discount of which some part he will pass

on to retaileron to retailer

Trade scheme is a promotional scheme for channel partners (Franchise, Retailers)Trade Scheme

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 PointsReward/ gift

sold awarded slabs

Durables: e.g. Music system,Magic box 25 < 7k

Refrigerator, washing machine, etc.

Handset Higher value durables: A/C,20 8k - 23 k

bundle Blackberry, laptop, handycam, etc.

Pre-paid 10 25k - 50k Motorcycle, TV, Foreign trip, etc.

3

For internal circulation of BSNL only

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Seven distinct channels exist within BSNLFranchisee Retailer network accounts for bulk of wireless sales (SIMs, Recharge)

# across India Definition/ exclusivity

1 • Franchisees: ~1,200 • Specific area allocated, exclusive Accounts forFranchisee• Sub-franchisees: ~6,000 -13,5003 • Non-exclusive (via franchisee)

Retailer Network ~70-95% of• Retailers: 300,000 -350,000 • Non-exclusive (via franchisee/sub franchisee) wireless sales4

2

DSA • ~21,000 - 25,000 • Non-exclusive• Types: Individual, Post office, Petrol pumps, PCOs

3 • ~4,100 • BSNL owned outlet (exclusive)Customer Service• Focus on customer service (vs sales)Centre (CSC)Centre (CSC)

4 • Exclusive (composed of BSNL employees)• Proposed: ~45,000 • Teams of sales-force split product-wiseCompany sales

• Activities planned: Door to door sales, Franchisee monitoring, org.force (proposed)of melas, etc

5• ~301 • Provides soft pins2 to retail outlets with POS terminals

E-PIN franchisee • Non-exclusive/ exclusive

6• ~51 • Partner company (sys. integrator) for supply of products notBusiness

available with BSNL, to meet all customer requirementsAssociate (BA)• Non-exclusive

7Business • ~150 • Exclusive (BSNL employees)

External InternalDevelopment (BD) • Function as key account managers

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 printedas recharge coupons and sold to customer 3. Exact no not available 4. Will vary significantly by circle/ SSA

Source: BSNL 4

For internal circulation of BSNL only

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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 who will visit retailer shops � deliver material and

collect CAF (Customer Application forms ) forms

For internal circulation of BSNL only

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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' 'Secondary Sales'

Tertiary sales:

Product sales from retailer to end-customer is defined

as 'Tertiary Sales'

For internal circulation of BSNL only

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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 the total number of telecom retail outlets in a particular

geographical area .

For internal circulation of BSNL only

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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 number of SIMs

By value of recharge

For internal circulation of BSNL only

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Definitions - reach and extractionILLUSTRATIVE

Multi-brand telecom outlets selling SIMS (total)BSNL Reach

Reach defined as the ratio of telecom retail outlets (multi-brand telecom outlets) that

sell BSNL products to the sell BSNL SIMs (4) Do not sell BSNL SIMs (4)

total number of telecom retailoutlets in a particular BSNL reach = 4 / 8 = 50%BSNL reach = 4 / 8 = 50%geography

Total SIM sales of a multi-brand telecom outletBSNL Extraction

Extraction defined as the share of BSNL sales in the total sales of a particular

multi-brand telecom outlet BSNL SIMs sold (2) non-BSNL SIMs sold (8)

• By number of SIMs• By value of recharge BSNL SIM extraction = 2 / 10 = 20%

7

For internal circulation of BSNL only

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MBO:

Multi-brand telecom outlets

For internal circulation of BSNL only

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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. 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.

For internal circulation of BSNL only

Page 17: EE11--E2 CME2 CM - Bharat Sanchar Nigam Limitedtraining.bsnl.co.in/digital_library_source... · Franchisee need not come to SSA office. Franchisee Will deposit the amount in bank

India likely to have ~700 mn wireless connections over next 5 yrsGrowth will be front-loaded with ~53% new adds in next two years

India wireless connections growth (past and projected)

Subscribers (Mn)

800 ~53% of total

net adds during Urban+8%2008-13 703 Rural

655Overall

605600 +20% 554

360484484347

Total net adds320 million334

383400 319+59%

300 Urban net adds 87 million (27%)

261

273

200 Rural net adds 233 million (73%)166+96% 343307

27196 23518452

33 1106 13

0

1Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 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

9

For internal circulation of BSNL only

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Seven building blocks of Project Vijay have been defined, inorder to achieve these objectives

1

Creation of Proj.Training of team

Vijay team

Wireless Potential Index2

analysis

Tariff Tool:3

Training and Rollout

SancharSoft:4 SancharSoft: Refinement

Set-up and Rollout

Market Retailer5

Survey

6 Revised Channel norms

7 Review Mechanisms

Start of a circle Ongoing refinement & stabilization18

For internal circulation of BSNL only

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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 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

For internal circulation of BSNL only

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Details which are contained in the

printed survey form in brief

1. Details of the surveyor

2. Details of the retailers with phone numbers

3. Do you sell SIMs of any brand? yes/no

4. Do you sell recharge voucher of any kind? Yes ?No

5. Do you sell BSNL SIM? yes/no 5. Do you sell BSNL SIM? yes/no

6. Who sell BSNL SIM to you?

7. Details of monthly sale of telecom product.

8. Comments about BSNL services to the retailer?

For internal circulation of BSNL only

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Revised team structure for Project VijayNew roles created at HO, Circle and Corporate level

Head Office Circle SSA/ Region

Project Sponsor(Director, Cons. Mobility2 )

Project Champion (HO) Project Champion (Circle)(GM, Cons. Mobility, S&D) (CGM)

SSA/ Region Head

Project Leader1(GM/ DGM Cons. Mobility)

Rollout Managers SSA sales head - Cons. MobilityRollout Managers SSA sales head - Cons. Mobility

(DGM) (DGM/ DE/ SDE)Circle level Nodes

(SDE/ JTO)

Dedicated DGM Franchisee Managers Retailer Mgr Coordinator Channelstationed at circle but (SDE/ JTO) (SDE/ JTO) Mgmt.

reporting at HO teamRetailer Managers(TOA/ TTA/ TM)

Franchisee

Sub-franchisee

New roles created in BSNL

Channel (external)MBO Retailer MBO Retailer

Interact via Project Vijay review process

Customer1. Actual designation depends on the size of the circle; Large circles would have a GM Consumer Mobility (S&D) asthe Project Leaders, reporting to PGM Consumer Mobility (who reports to CGM) 2. Consumer Mobility

21

For internal circulation of BSNL only

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

franchisees

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

For internal circulation of BSNL only

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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. 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.

For internal circulation of BSNL only

Page 24: EE11--E2 CME2 CM - Bharat Sanchar Nigam Limitedtraining.bsnl.co.in/digital_library_source... · Franchisee need not come to SSA office. Franchisee Will deposit the amount in bank

Incentives and Awards

Role Reimbursement Type

Travel/meal/mobile

Reimbursement

amount per month

Franchisee manager Travel & MealMobile (if not alreadyprovided)

Rs 1800Rs 500

Retailer Manager Travel & Meal Rs 1300Retailer Manager Coordinator

Travel & MealMobile (if not alreadyProvided)

Rs 1300Rs 500

Retailer Manager for visitsup to 40kms/day avg

Travel & MealMobile (if not alreadyprovided)

Rs 1800Rs 500

Retailer Manager for visits beyond 40kms/day avg

Travel & MealMobile (if not alreadyprovided)

Rs 2600Rs 500

For internal circulation of BSNL only

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Franchisee manager and Retailer

manager Roles

Franchisee Manager is expected to manage up-to 2

Franchisees and visit them every alternate day

Franchisee Manager is also expected to visit

each sub-franchise once a montheach 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

For internal circulation of BSNL only

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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 Final decision on which category the retailer Manager

falls in should be made by the SSA sales head, advised

by the Retailer Manager Coordinator.

For internal circulation of BSNL only

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Reimbursement

The base reimbursement will be paid to Franchisee

Manager and Retailer Manager Coordinator upon

meeting a minimum of 10% achievement on

Primary sale( # of SIM and Recharge value)Primary sale( # of SIM and Recharge value)

The base reimbursement will be paid to Retailer

Manager upon meeting a minimum of 30%

achievement on no. of retailers visits done as a

proportion of the total no of retailers visits assigned

For internal circulation of BSNL only

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Awards

Award Level Frequency Amount Criteria

Best Franchisee manager

Circle Quarterly Rs.3000 Highest averagescore onKPAs

Best Retailer manager

Circle Quarterly Rs.3000 Highest averagescore onmanager

coordinatorscore onKPAs

Best Retailer manager

SSA Quarterly Rs.750 Highest averagescore onKPAs

Best Sales head Circle Quarterly Rs.5000 Highest averagescore onKPAs

For internal circulation of BSNL only

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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.

For internal circulation of BSNL only

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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 level at the end of the month, after taking in to the

account the average score on KPAs received from SSAs'

For internal circulation of BSNL only

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Facilities

SSA Sales Head Office space, Desktop with broadband GSMSIM or WLL phone (if not available)

Franchisee Manager Office space, Desktop with broadband GSMSIM or WLL phone (if not available)

Retailer Manager Coordinator Office space, Desktop with broadband GSMSIM or WLL phone (if not available)

Retailer Manager GSM SIM or WLL phone (if not available

For internal circulation of BSNL only

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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 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.

For internal circulation of BSNL only

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For internal circulation of BSNLonly