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Finding out the exact price of SIM was the toughest job that we faced during the field

visit. Not many of the retailers disclose the original price of the SIM. Finally was able to find that, the distributors provide SIM to retailers at Rs 17.50 , and retailers were selling the sim in various price , sometime retailers giving sim as free . Some retailers sacrifice their margin and sell the SIM free of cost to the customers inorder to gain trust from customers, therefore reap more incentives from recharge. By this way they are also able to push the SIM from their store.

Manufacturer Distributor Distributor Support Executive Retailers Customers According to the information collected by our group , sources say that there are 21 distributors handling Idea Products in Chennai.

It is seen that the distributors are allowed to handle only Idea sim by the company. Other brand sim cards are not allowed to be handled. The scenario is exactly opposite in the case of retailers. The retailers handled wide variety of sim cards which includes Airtel, Vodafone, Uninor, Docomo..etc

The distributors gets 1.5% of commission per recharge of using coupon recharge .The retailers gets 3.2% of commission on coupon recharge and 3.5% for easy recharge. If the retailers do a business worth more than Rs 10000, they will 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 the rest is contributed by the distributor. However a distributor must deposit Rs 1 Lakh initially , then they can take the stock according to the market potential. Usually company wont allow to do business s worth more than 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 took place.

Activation s/day
30 40 50 60 70

payout
5 7 9 11 13

Activation /day
20 30 40 50 60

payout
5 7 9 11 13

Activation /day
5 10 20 30 plus

payout
3 5 7 9

80 plus

15

70 plus

15

10-14 Days
15-19 Days 20 Plus Days

5 rs/activation
7 rs/activation 10 rs/activation

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

FRC DETAIL FRC- 41


FRC- NIL+SRC>10 FRC -51

TALKTIME Rs 5+ Rs 25
Rs 5+TT of SRC Rs 5+ Rs 51

INSTANT Rs 35
NIL

MONTH END
Rs 10 Rs 10 Rs 10

Rs 30

CRITERIA ACTIVATIONS/DAY
1 2 3 4

PAYOUT/ACTIVATION
Rs 5 Rs 8 Rs 12 Rs 15

8-12 DAYS
13-20 DAYS 20 PLUS DAYS

RS 5
RS 10 RS 20

Under one base station , there are at least 20 retailers who provide Idea SIM rates. The information is got in such a way that the distributors provide the retailers with 2000 sim, out of which on an average ,the retailers were able to sell only 1200 sim/month.

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.

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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