Airtel is telecom giant which leading the no.1 position in Telecom industry in India. Its distribution channel is divided into three layers such as, i.) Primary, ii.) Secondary and iii.) Tertiary. The problems to be addressed are to meet the existing dealers' outlet to know the day to day operations and focus for improvement The location which focused under this topic is Cuddalore which is a semi-urban market and the shops already prevailing in the markets and they are segmented into three categories viz., i.) Coupon (LSO) stores; ii.) EC (SSO) stores; and iii.) Both coupon & EC stores. 250 samples were chosen by applying convenient sampling techniques and standard questionnaire was administered to collect primary data. The researcher found that the factor variables does not get affected by the demographic variables and also found that a well defined distribution function is the backbone of a service organization, thus it will help the company to get well established in a society. Thus it leads to a new outlet expansion.