Case Study Reliance Jio
Reliance Jio started with broadband services entered into 3G and 4G and expanding its mobile services through e-marketing.
Their innovative plans made stiff competition in the mobile market. The company created such tough competition that Airtel and Vodafone have seen
double digit rate of decrease in their revenues.
This case study is about Reliance Jio from its inception, the team behind the company, marketing mix adopted by the organization; SWOT analysis; competition, market segmentation, and positioning. This case also describes
e-marketing strategies adopted by Reliance Jio.
INCEPTION OF RELIANCE JIO
In 2005 when Reliance Industries Limited split, there was one major demerger, that of Reliance Jio Infocomm Ltd which became a part of Anil Dhirubhai Ambani Group. The company was previously known as Infotel Broadband a broadband service provider which gained license for operating across India. It is popularly known as Reliance Jio, the dream project of Mukesh
Slowly Lyf phones made foray into the market with Jio preview offers. Free unlimited data for 3 months and free voice calls and sms was the way they entered the market. Lyf phones seemed a decent deal, but it was Jiosim that caught people’s eyes.
THE JIO TEAM
The Jio team consists of Shailender Nath Sharma as the CEO, Sanjay. U. Mashruwala as Managing Director, and Rajneesh Jain as Chief Financial Officer. Mathew Oommen, President of Global Strategy and Service Development and Director.
In 2013 a couple of senior professionals from the telecom equipment industry also joined the organization. A few to name are Manoj Modi, Sandip Das, Arvind Rao etc. became a part of the Jio’s management team.
The pricing strategies adopted by Jio are most attractive. They have priced their various products to satisfy individual but have also dominated the current telecom market. Their premium 4G services offered at affordable prices are causing rivals to modify their pricing strategies.
Reliance Jio Infocomm Ltd has come up with their latest tariff revision. The company is offering an unlimited voice plan to its feature phone users, with 1GB of data being provided, at just Rs. 49 for a 28-day billing cycle. Earlier it had unveiled a similar plan for smart phone users, with 2GB of data usage, at Rs986. These prices are their latest.
Reliance Jio has been a bit aggressive with their marketing strategy, in order to create positive brand awareness.
They have launched ad campaigns on television, radio, newspapers,
magazines, and billboards and social media platforms including Instagram, Facebook, Instagram, Twitter and YouTube.
Reliance Jio has used the importance of star power and has roped in several celebrities to act in its commercials and become associated with its brand.
RELIANCE JIO’S SWOT ANALYSIS
- Parent company being Reliance Industries
- Marketing and advertising
- Innovative technology-4G LTE services along with VoLTE.
- Strong presence–spread out to more than 22cities.
- One of their ad campaigns.
It's a green field technology so has good opportunities.
- Heavy competition from rival telecomm companies
- Network Congestion
MARKETING STRATEGY ADOPTED
Reliance Jio has gained a significant amount of user base. Reliance Jio acknowledged the universal truth and a new industry norm through their strategythat consumers in telecommunication industry either pay for calls and chat messages or for data; but not for both.
Hence they charged 1/10th of the industry’s telecommunication charges and their policy of ‘absolutely free.
|1. The low Budget plan
||100% cashback. Happy New year 2018 plan. Reliance Jio's Rs. 199 plan: 33.6 GB 4G data for 28 days with daily limit of 1.2 GB + unlimited calls and SMS
||Bharti's Airtel Rs. 199 plan: 1GB 4G data per day for 28 days + unlimited calls and 100 SMS per day
||Vodafone's Rs. 198 plan: 1GB 4G data per day for 28 days + 300 unlimited calls per day and 100 SMS per day.
|2. The mid Budget plan
||Jio's Rs.459 plan: 1 GB data per day for 84 days with unlimited calls and SMS
||Airtel's Rs. 448 plan: 1GB 4G data per day for 70 days + unlimited calls and 100 SMS per day.
||Vodafone's Rs. 458 plan: 1 GB 4G data per day for 70 days + unlimited calls + 100 SMS per day
|3. The high end plan
||Jio's 799 plan: 3 GB data per day for 28 days with unlimited calls and SMS
||Airtel's Rs.799 plan: 3.5 GB data per day for 28 days with unlimited calls + 100 SMS per day
||Vodafone's Rs. 859 plan: 11 GB 3G data + free wifi @ 1 GB - for 2G/3G/34G
Reliance Jio has concentrated upon both lower end consumers as well as high end consumers, this gets reflected in their products and services too. The rural consumers also have a major part among Jio’s targeted group.
Reliance Jio started with huge investments and set up stores in several cities in India.
It has been a very good initiative for the consumer base in India, expanding its business with innovative e-marketing strategies, products and services. The Reliance group is yet to see the ROI (return on investment) of their most revolutionary venture ‘Jio’.