distribution of a sim

8/2/2019 Distribution of a Sim

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Finding out the exact price of SIM was thetoughest job that we faced during the fieldvisit. Not many of the retailers disclose theoriginal price of the SIM.

Finally was able to find that, the distributorsprovide SIM to retailers at Rs 17.50 , andretailers were selling the sim in various price ,sometime retailers giving sim as free .

Some retailers sacrifice their margin and sell theSIM free of cost to the customers inorder togain trust from customers, therefore reap moreincentives from recharge. By this way they arealso able to push the SIM from their store.


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Manufacturer

Distributor

Distributor Support Executive

Retailers

Customers

According to the information collected byour group , sources say that there are 21distributors handling Idea Products inChennai.


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It is seen that the distributors are allowedto handle only Idea sim by the

company. Other brand sim cards are notallowed to be handled.

The scenario is exactly opposite in thecase of retailers. The retailers handledwide variety of sim cards which includesAirtel, Vodafone, Uninor, Docomo..etc


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The distributors gets 1.5% of commission per recharge of usingcoupon recharge .The retailers gets 3.2% of commission oncoupon recharge and 3.5% for easy recharge.

If the retailers do a business worth more than Rs 10000, theywill get 5% commission instead of 3.8% for easy recharge.

The DSE is provided Rs 3000 for supporting activities . Out of

that 50% of the money provided by the company and therest is contributed by the distributor.

However a distributor must deposit Rs 1 Lakh initially , thenthey can take the stock according to the market potential.

Usually company wont allow to do business s worth morethan 50Lakh for a distributor .If the distributor exceeds

company will split the business in to 2 sectors. Only 5 number /individual in a month is allowed for various

security issues taken in to consideration after the 26/11 tookplace.


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Activation

s/day

payout Activation

/day

payout Activation

/day

payout

30 5 20 5 5 3

40 7 30 7 10 5

50 9 40 9 20 7

60 11 50 11 30 plus 9

70 13 60 13

80 plus 15 70 plus 15


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10-14 Days 5 rs/activation

15-19 Days 7 rs/activation

20 Plus Days 10 rs/activation

This is based on the average activation /day which isgiven by target of the distributor for month divided by 30.


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FRC DETAIL TALKTIME INSTANT MONTH END

FRC- 41 Rs 5+ Rs 25 Rs 35 Rs 10

FRC- NIL+SRC>10 Rs 5+TT of SRC NIL Rs 10

FRC -51 Rs 5+ Rs 51 Rs 30 Rs 10


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CRITERIA ACTIVATIONS/DAY PAYOUT/ACTIVATION

1 Rs 5

2 Rs 8

3 Rs 124 Rs 15


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8-12 DAYS RS 5

13-20 DAYS RS 10

20 PLUS DAYS RS 20


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Under one base station , there are atleast 20 retailers who provide Idea SIM

rates. The information is got in such a way that

the distributors provide the retailers with2000 sim, out of which on an average,the retailers were able to sell only 1200sim/month.


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Retailers :-

Shops carrying logos and wall papers

of Idea Word of mouth promotions

Sacrificing profit and selling it cheap

Distributors:- KIOSK type of promotions near to

colleges ,mallsetc.


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Manufacturers :-

TV advertisements

Radio, News Paper Pamphlets

Source:

Retail shops near Vadapalani,Kodambakkam, KK Nagar

Territory manager in sales Idea, Chennai


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THANK YOU

distribution of a sim

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