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Bsnl s Marketing Strategy PROJECT

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									                            PROJECT SHIKHAR
    Strategy & Business transformation exercise undertaken along with
                      The Boston Consulting Group

Background and context

Over the last few years, the telecom industry in India has been going through a
period of intense change. Needs of the retail as well as corporate customers are
changing and their expectations in terms of service and quality are getting more
demanding. BSNL is facing increasingly stiff competition from private players. Over
the recent past, BSNL’s performance has come under considerable pressure. It has
not been able to grow in line with the market and has been steadily losing market
share. The lack of top-line growth coupled with increasing costs has put pressure on
BSNL’s operating performance in the past few years.

BSNL has engaged the services of The Boston Consulting Group (BCG) to help
develop an overall strategy and transformation plan for the organization. BCG is a
leading global consulting firm and have extensive experience working with working
with major telecom incumbents globally and in India on issues of strategy, sales &
marketing strategy and large scale transformations. BCG has significant experience
of working with large Public Sector undertakings to help them define and implement
their change agenda.

This transformation exercise, called Project SHIKHAR, will cover development of an
overall strategic agenda across BSNL’s key businesses including customer
segmentation, sales channel management as well as product management. It will
also look at appropriate strategic initiatives in operations as well as in Human
Resource Management in order to implement the new strategy effectively. All this is
aimed at making BSNL more capable to thrive in a very competitive market place.

BSNL’s aspiration

BSNL has created an aspiration to guide its transformation process. This aspiration
was developed in a very systematic manner and involved interactions and
deliberations among employees from various cadres, designations and geographies.

BSNL’s aspiration is to –

      Be the leading telecom service provider in India with global presence
      Create a customer focused organization with excellence in sales, marketing
       and customer care
      Leverage technology to provide affordable and innovative products / services
       across customer segments
      Provide a conducive work environment with strong focus on performance
      Establish efficient business processes enabled by IT

Proposed strategy to achieve aspiration

Having defined this aspiration, we are working on the following key pillars of

      Revitalise the business via –
          o Focusing on aggressive growth in Mobility (2G/3G), Broadband and
             Enterprise segment(i.e., corporate customers)
          o Reducing churn in the landline (including PCO) business and
             consolidating our position in the wholesale business (i.e., NLD)
          o Venturing into new areas to further drive growth such as infrastructure
             sharing, DTH, international expansion among others

      Build   operations excellence in the following critical areas –
          o     Marketing, sales and distribution
          o     Product innovation and pricing
          o     Customer service
          o     Revenue assurance
          o     Cost efficiency

      Create a high performance organisation to achieve the above –
          o Redesign the organisation structure, roles & responsibilities
          o Strengthen our HR policies and practices
          o Put in place a strong performance management system and culture

Transformation approach

Project SHIKHAR has been designed in two distinct phases

Phase 1: Diagnosis and Design – the focus of this phase is to develop a robust
Strategy and Business plan for BSNL, which will enable it to achieve its aspiration.
At the end of this phase, a prioritised set of initiatives will be identified, that will be
implemented in a sequenced manner. Phase 1 started in late December, 2008 and
will be fully completed by May 2009. Few critical areas for immediate action have
already been identified and we have started work on detailing and implementing
these in the form of pilots. Additional initiatives will be identified and prioritised by
the end of this Phase. Another critical area of focus in Phase 1 is to redesign the
organisation structure to enable effective execution of the proposed strategy. The
five pilots that have been identified as high priority include:

Pilot   1:   Fixed access growth – referred to as “Udaan”
Pilot   2:   PCO retention – referred to as “Dosti”
Pilot   3:   Mobility sales & distribution – referred to as “Vijay”
Pilot   4:   Revenue assurance – referred to as “Kuber”
Pilot   5:   Cost efficiency – referred to as “Sanchay

Phase 2: Detail and Implement – this phase will focus on implementing the set of
prioritised initiatives that have been identified as part of Phase 1. The focus in this
phase will be to scale up these pilot initiatives to the rest of the organisation, as well
as implement additional initiatives identified in Phase 1. The new organisation
structure and HR implications will also be implemented as part of this Phase.

Details of the Pilot Projects are given below

PROJECT UDAAN – Fixed Access Pilot

Objectives of project

The overall objective of Project Udaan is to rapidly expand broadband subscriber
base while reducing churn in wireline voice subscribers and increase realization from
existing subscribers. A pilot project has been started in three areas (North-East,
South and West) of Bangalore telecom district. Specific objectives of this pilot are:

1. Define new product / price plans that will address specific requirements of
   various customer segments
2. Create a new sales force to actively reach out to customers
3. Make customer service processes more friendly and responsive to subscriber
4. Optimize service delivery process for fast provisioning of connections

Key activities identified & initiated

1. Six new product / price plans have been defined for launch
2. Concept testing of these plans was conducted by BSNL Sales team
3. Sales team consisting of BSNL personnel has been created to serve two areas
   (Bangalore – North-East and South)
4. Sales team consisting of DSAs is being tried for Bangalore West area; it is being
   led by BSNL persons
5. Developing systems and processes to capture and pass on all new customer
   leads from various channels e.g., call centres, SMS, online interface, to sales
6. Introducing new monitoring mechanisms using in-house developed tool to ensure
   all requested services by customers are delivered in a satisfactory and prompt

Spectrum of people involved

This project is being led by team consisting of Director (Plng & New Services), GM
(BB) at HO, CGM (Karnataka) and PGM (Bangalore – TD).

There are four teams within this project being led by DGMs – Product & Pricing,
Sales & Alliances, Customer Service and Service Delivery. These teams consist of
BSNL personnel across the hierarchy. Currently, there are ~70-80 SDE/JTOs and
~70-80 Group C/D personnel mostly for Sales, Customer Service and Service
Pilot Udaan – Customer Service Team

     Pilot Udaan – Sales Team

PROJECT VIJAY – Mobility Pilot

Objectives of project

Project Vijay - Mobility sales and distribution project – is being piloted in UP (East)
Telecom circle. The key objectives of the pilot are to -
      A. Design channel structure
      B. Create channel management team
      C. Develop improved channel norms to improve retailer reach, create
          appropriate incentives and improve performance monitoring of channel
      D. Implement proposed channel structure for franchisee network
      E. Test other recommendations on tariff and handset bundling, if appropriate

Key activities identified & initiated

1. Conduct comprehensive retailer survey to:
     Map existing telecom retail universe in pilot SSAs
     Measure BSNL's reach and extraction in different types of outlets to identify
       improvement opportunities

2. Assess evolution of mobile market in pilot geographies over the next 5 years
      Calculate overall and addressable market potential for BSNL
      Help BSNL set the right targets for the franchisees and sub-franchisees
3. Design the overall distribution channel set up for mobiles including franchisees,
   sub-franchisees and retailers
4. Create a new channel management team comprising BSNL employees to
      Manage franchisees and sub-franchisees (FMT)
      Interact with retailers (RMT)
5. Revise existing channel management norms and processes (e.g., retailer service
   frequency, ordering and delivery process, audit norms, etc.)
6. Define key metrics for success and set up a rigorous monitoring mechanism

Spectrum of people involved

This project is being led by team consisting of Director (Commercial & Marketing),
GM (Sales), GM (Restructuring), DGM (Sales) and AGM (Sales) at HO, CGM (UP-E),
PGM (Lucknow), GM (Operations – Lucknow SSA) & TDM (Unnao) .

In addition, following personnel are involved:
 ~10 GMs and DGMs at Circle, e.g., GM (Sales), GM (Finance), DGM (Sales)
 ~10 DGM/AGM/DE in pilot SSAs, e.g., DGM (South - Lucknow), AGM (Planning –
    Lucknow), DE (Sales - Unnao)

   ~35 SDE/ JTOs in pilot SSAs (franchisee managers, retailer team coordinators,
    survey coordinators and survey team members)
   ~140 TTA/ TOA/ TM (field retailer managers, survey team members)
                        Project Vijay – Soft Launch Meeting


Objectives of project

The overall objective of project Dosti is to reduce decline in BSNL’s PCO business by
reducing churn of existing PCO operators and innovating on PCO business model to
generate new revenue sources (both for BSNL and PCO owner). It is being executed
in Bangalore telecom district. Specific objectives include:

1. Increase PCO connections through reduction in churn & sale of new connections
2. Facilitate sale of ‘Broad-Band Enabled’ services model to existing and new PCO’s
3. Convert PCOs to sell full spectrum of BSNL products & services

Key activities identified & initiated

1. In-depth analysis done to identify key issues faced by PCO subscribers
    MR and group discussions with PCO owners
    Interviews conducted with dealers/DSA's of various telecom providers
    Interviews conducted with in-house sales force of competitors and BSNL staff

2. Action plan developed to increase sales and reduce churn
    Improve management of DSA channel
    Improve customer service and pricing

3. Plan developed to facilitate sale of ‘Broad-Band Enabled’ services model
    Central team to create tie ups with banks, vendors
    Marketing support team to help create awareness

Spectrum of people involved

This project is being led by team consisting of Director (Plng & New Services), GM
(BB) at HO, CGM (Karnataka) and PGM (Bangalore – TD).

There are four teams within this project being led by DGMs – Customer offering,
Sales & Relationship Management, Billing & Collections and Service Delivery.
Currently, there are ~15 SDE/JTOs involved in market research. It will be expanded
to include more personnel from across the hierarchy.

PROJECT KUBER – Revenue Assurance Pilot

Objectives of project

The overall objective of project Kuber is to ensure that the revenue earned by BSNL
is properly billed to customers and collected from them. It is being executed in Pune
telecom district. Specifically focus is on two areas:

1. Collection of bad debt, with focus on amount less that 2 years old
2. Identification & billing of leased circuits that are currently not getting billed

Key activities identified & initiated

1. Collection of bad debt:
    Segmentation of bad debt by age and account size. The following segments
        are used:
              o Age: 90-180 days, 180-360 days, 360+days
              o Account size: Low, Middle, Large, Very Large
    Appointment of collection agencies for bad debt that are in the ‘Middle’
    Follow up by BSNL team on accounts that are in the ‘Large’ and ‘Very Large’

2. Leased circuits billing:
     Process defined for identifying unbilled circuits
     Data collection underway from all the exchanges in Pune

Spectrum of people involved

This project is being led by team consisting of Executive Director (Finance), CGM
(Maharashtra) and PGM (Pune – TD).

From the Pune telecom district, IFA is leading the initiative on collection of bad
debts. His team includes 3 CAO/AO and 5 Sr TOA/TOA. GM (development) is leading
the initiative on leased circuits billing. His team includes 2 SDE/DE and 2 CO/AO.

Whole-hearted involvement of all members of BSNL fraternity is solicited in
making Project SHIKHAR a resounding success.
                                                                Telephone : 23734343
                                                                       FAX : 23734353


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