Aircel: Distribution Challenges

Jaydeep Mukherjee, Amit Gupta and Bhavesh Pande
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Jaydeep Mukherjee: Jaydeep Mukherjee (jmukherjee@mdi.ac.in) is an Associate Professor at Management Development Institute, Gurgaon, India. He teaches Marketing for Virtual World, Marketing Strategy, Product Management, Sales and Distribution Management. He is currently researching the various antecedents of motivation to use social media. He takes active interest in developing case studies from the Indian companies and developing simulation games to aid in the classroom teaching.
Amit Gupta: Amit Gupta (amitgpat@yahoo.co.in) is Manager (Retail Sales) at Shimla Divisional Office of Indian Oil Corporation Ltd, India’s leading marketer in petroleum products. A winner of Prime Minister’s Gold Medal for topping the National Management Programme of MDI (2010–11), he has a decade long experience of channel partner management in oil sector. He is currently looking after network expansion and development for petrol, diesel and kerosene for Indian Oil Corporation across the state of Himachal Pradesh. He is the author of a book on Punjabi poetry, Navin Fasal Da Beej, published in 2002.
Bhavesh Pande: Bhavesh Pande (bhaveshpande@indanoil.in) is Senior Manager (Consumer Sales) at Gujarat State Office, Ahmedabad, of Indian Oil Corporation Ltd, India’s leading marketer in petroleum products. He is the winner of ITC Gold Medal for topping in Marketing stream of National Management Programme of MDI (2010–11). He has a decade and a half long experience of petroleum marketing in Rajasthan, Haryana and Uttar Pradesh. He is currently looking after B2B marketing of various petroleum products, viz. petrol, diesel, furnace oil, bitumen, benzene, pet-coke and sulphur, for Indian Oil Corporation Ltd. in the state of Gujarat through a set-up of three Divisional Offices.

Vision, 2012, vol. 16, issue 3, 201-211

Abstract: The case is about the marketing challenge faced by the Head of the Delhi/NCR circle of Aircel Ltd, a telecom company in India. In Delhi circle, the company had achieved a commendable share of users in just two years, but they also had the lowest average revenue per user (ARPU) among the telecom majors. Both the achievement of user base and failure to get adequate ARPU could, in some way, be attributed to the type of distribution channel and end consumers they attracted due to their late entry in the Delhi circle. The company was attempting to change its customer strategy to henceforth focus on the quality of customers rather than the number of customers. It was also planning to implement a strategy of bundling handsets with the connection, based on the research finding that such customers were likely to have a greater ARPU. The dilemmas presented were the impact of the change in the customer strategy on the distribution channel and its motivation. The case deals with the choices to be made and how to make the changes necessary to implement the marketing strategy through the well-established distribution system.

Keywords: Distribution Channel Motivation; Channel Partner Incentives; Distribution Channel Correction; Distribution Channel Development; Channel and Segment Mapping (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:vision:v:16:y:2012:i:3:p:201-211

DOI: 10.1177/0972262912460157

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