PROJECT REPORT On Jio Telecom
PROJECT REPORT On Jio Telecom
Marketing strategy:
RELIANCE JIO INFOCOMM LIMITED
SUBMITTED BY
YASH RAJ VERMA
Student No: 77122459942
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ACKNOWLEDGEMENT
I extend my sincere gratitude to the faculty and my fellow students for their unwavering
support and guidance during my MBA project. Their valuable insights and
encouragement were invaluable throughout this journey.
Special thanks to our esteemed professor for their valuable insights and feedback,
which hav significant enrich our project. We also want to acknowledge the support of
our classmates and friends, whose encouragement and assistance have been greatly
appreciated.
I extend my gratitude to NMIMS Global Access School for Continuing Education for
giving me this opportunity. I also acknowledge with a deep sense of reverence, my
gratitude towards my batch mates and friends.
Additionally, I want to thank my family for their constant support and belief in my
abilities. This project has been a significant learning experience, and I’m grateful to all
who contributed to its successful completion.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
Yash Raj Verma
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Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
History 7-8
Subsidiaries of RIL 9-11
Philosophy & mission 12
Management of RIL 13
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9. PEST Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Political factors affecting Jio 40-41
Economical factor affecting Jio 41
Social factor affecting Jio 41
Technological factor affecting Jio 42
15. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
16. Bibliography . . . . . . . . . . .. . . . . . . . . . . . . . . . 53
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Introduction
The company is ranked 96th on the Fortune Global 500 list of the world’s biggest corporations as of
2020. It is ranked 8th among the TOP Global Energy Companies by Platt’s as of 2016. Reliance
continues to be India's largest exporter, accounting for 8% of India's total merchandise exports with a
value of ₹1, 47,755 crore and access to markets in 108 countries. Reliance is responsible for almost
5% of the government of India's total revenues from customs and excise duty. It is also the highest
income tax payer in the private sector in India.
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Type Public
Traded as BSE: 500325 NSE: RELIANCE LSE: RIGO BSE SENSEX Constituent NSE
NIFTY 50 Constituent
ISIN INE002A01018
Industry Conglomerate
Founded 8 May 1973; 51 years ago
Founder Dhirubhai Ambani
Headquarters Mumbai, Maharashtra India.
Area served Worldwide
Key people Mukesh Ambani (Chairman & MD)
Products Petroleum, Natural gas, Petrochemicals, Textiles, Retail, Telecommunications,
Media, Television, Entertainment, Music, Financial Services, Software.
Revenue Decrease ₹502.653 crore (US$70 billion) (2021)
Operating income Decrease ₹76,134 crore (US$11 billion) (2021)
Net income Increase ₹53,223 crore (US$7.5 billion) (2021)
Total assets Increase ₹1,321,212 crore (US$190 billion) (2021)
Total equity Increase ₹693,727 crore (US$97 billion) (2021)
Owner Mukesh Ambani (50.54%)
Employees 236,334 (2021)
Subsidiaries Jio Platforms
Jio Payments Bank (70%)
Reliance Retail
Reliance Petroleum
Network18 Group (64%)
Mumbai Indians
Alok Industries
Future Group
Reliance Foundation
Website http://www.ril.com/
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HISTORY
The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's as Reliance
Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued the polyester
business of the firm. In 1966, Reliance Textiles Engineers Pvt. Ltd. was incorporated in Maharashtra.
It established a synthetic fabrics mill in the same year at Naroda in Gujarat. On 8 May 1973, it
became Reliance Industries Limited. In 1975, the company expanded its business into textiles, with
"Vimal" becoming its major brand in later yea ₹ The company held its Initial public offering (IPO) in
1977.
The foundation of Reliance Group was taken by Shri Dhirubhai Ambani in 1966 as a small textile
manufacturer unit. It was incorporated in 1973 and conformed its name as Reliance Industries in
1985. Over the years, the company has amazingly transformed the business from the manufacturing
of textile products into a petrochemical filed.
In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance
Industries Ltd. During the years 1985 to 1992, the company expanded its installed capacity for
producing polyester yarn by over 1,45,000 tones per annum. The Hazira petrochemical plant was
commissioned in 1991–92.
In 1993, Reliance turned to the overseas capital markets for funds through a global depository issue
of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by
international credit rating agencies. S&P rated Reliance "BB+, stable outlook, constrained by the
sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the sovereign ceiling".
During 1995-96, the company took the initiative to create its market in the telecom industry and
started with a joint venture with NYNEX, USA. This deal makes Reliance as the first corporate in Asia
to issue bonds in the US at the year of 1996-97.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.
In 1998–2000, the construction of the largest refinery of the world, the integrated petrochemical
complex at Jamnagar started in Gujarat.
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies
in terms of all major financial parameter ₹ In 2001–02, Reliance Petroleum was merged with
Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly
three decades and one of the largest gas discoveries in the world during 2002. The in-place volume
of natural gas was in excess of 7 trillion cubic feet, equivalent to about 120 crore (1.2 billion) barrels
of crude oil. This was the first ever discovery by an Indian private sector company.
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's
second largest petrochemicals company, from the government of India, RIL took over IPCL's
Vadodara Plants and renamed it as Vadodara Manufacturing Division (VMD). IPCL's Nagothane and
Dahej manufacturing complexes came under RIL when IPCL was merged with RIL in 2008.
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In the year 2005, the company demerged its investments in power generation and distribution,
financial services and telecommunication services into four separate entities. Next year, it
introduced 'Reliance Fresh'(retail store format) entered the organized retail market in India.
In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband
Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum
auction held by the government of India. In the same year, it did a partnership with BP in the oil and
gas business. In 2017, RIL set up the Butyl rubber plant in Jamnagar, Gujarat by doing a joint
venture with Sibur, a Russian Company.
In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a
30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India,
including the KG- D6 block for $7.2 billion. Reliance also formed a 50:50 joint venture with BP for
sourcing and marketing of gas in India.
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl rubber plant in
Jamnagar, Gujarat, to be operational by 2018. In August 2019, Reliance added Fynd primarily for its
consumer businesses and mobile phone services in the e-commerce space.
Reliance Industries Limited operates world–class manufacturing facilities across the country at
Allahabad, Barabanki, Dahej, Dhenkanal, Hazira, Hoshiarpur, Jamnagar, Kurkumbh, Nagothane,
Nagpur, Naroda, Patalganga, Silvassa and Vadodara.
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Subsidiaries of Reliance Industries
Jio Platforms
Reliance Retail
Reliance Retail is the retail business wing of Reliance Industries. In March 2013, it had 1466
stores in India. It is the largest retailer in India as it includes many brands like Reliance Fresh,
Reliance Footprint, Reliance Time Out, Reliance Wellness, Reliance Trends, Reliance
AutoZone, Reliance Mart, Reliance iStore. Reliance Home kitchen, Reliance Home Kitchens,
Reliance Market (cash n carry), and Reliance Jewels all come under the banner of Reliance
Retail brand. Its annual income revenue for the financial year of 2019 was ₹1.62 billion.
Reliance Solar
Reliance Solar deals in solar energy; it produces and sells solar energy systems to remote
and rural areas. It presents a wide variety of products like solar lanterns, home lighting
solutions, street light systems, water purifying system and many other products based on
solar energy.
Network 18
In the mass media company, it has interests in television, digital platforms, publication, mobile
apps, and films. It also operates two joint ventures namely Viacom 18 and History TV18 with
Viacom and A+E Network respectively. It also has acquired ETV Network and since renamed
its channels under the Colors TV brand.
It is a contract research organization (CRO) and a wholly- owned subsidiary of Reliance Life
Science, specializes in the clinical research services industry. Its clients are primarily
pharmaceutical, biotechnology, and medical device companies.
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Relicord
This is a subsidiary for cord blood banking service which is owned by Reliance Life science. It
was established in 2002 and has been inspected and accredited by AABB and also has been
accorded a license by the Food and Drug Administration (FDA) Government of India.
Has a joint venture with Eros International to produce film content in India.
LYF
It is a well-known 4G enabled Volte device brand from Reliance Retail. It is one of a Jio
reliance subsidiary, the consumer electronics arm of Reliance Industries Limited.
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PHILOSOPHY & MISSION
Reliance Group is focused on positively touching the lives of people. Further, the company
believes in inclusive growth as a universal concept and conducts its business following the
same.
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Management- Reliance Industries
Name Designation
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Introduction about Marketing Strategy
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that
deal with the analysis of the strategic initial situation of a company and the formulation, evaluation
and selection of market-oriented strategies and therefore contributes to the goals of the company and
its marketing objectives.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered
by the marketing plan vary by company, by industry, and by nation, however, time horizons are
becoming shorter as the speed of change in the environment increases. Marketing strategies are
dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
Marketing strategy needs to take a long-term view, and tools such as customer lifetime value models
can be very powerful in helping to simulate the effects of strategy on acquisition, revenue per
customer and churn rate.
Marketing strategy involves careful and precise scanning of the internal and external environments.
Internal environmental factors include the marketing mix and marketing mix modeling, plus
performance analysis and strategic constraints. External environmental factors include customer
analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely to impact success. A key
component of marketing strategy is often to keep marketing in line with a company's overarching
mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation. A final step in developing a marketing strategy is to create a
plan to monitor progress and a set of contingencies if problems arise in the implementation of the
plan.
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Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to
allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help
allocate spend across a portfolio of brands and manage brands to create value.
Diversity of Strategies
Marketing strategies may differ depending on the unique situation of the individual business.
However, there are a number of ways of categorizing some generic strategies. A brief description of
the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified based on their market
share or dominance of an industry. Typically there are four types of market dominance strategies.
Leader
Challenger
Follower
Niches
According to Shaw, Eric (2012). "Marketing Strategy: From the Origin of the Concept to the
Development of a Conceptual Framework". Journal of Historical Research in Marketing., there is a
framework for marketing strategies.
"At introduction, the marketing strategist has two principle strategies to choose from: penetration or
niche" (47)”
"In the early growth stage, the marketing manager may choose from two additional strategic
alternatives: segment expansion (Smith, Ansoff) or brand expansion (Borden, Ansoff, Kerin and
Peterson, 1978)" (48).
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Market maturity strategies
"In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is common to
employ a maintenance strategy (BCG), where the firm maintains or holds a stable marketing mix"
(48).
At some point the decline in sales approaches and then begins to exceed costs. And not just
accounting costs, there are hidden costs as well; as Kotler (1965, p. 109) observed: 'No financial
accounting can adequately convey all the hidden costs.' At some point, with declining sales and rising
costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary" (49).
Early marketing strategy concepts
"In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964) credits
James Culliton in 1948 with describing the marketing executive as a 'decider' and a 'mixer of
ingredients.' This led Borden, in the early 1950s, to the insight that what this mixer of ingredients was
deciding upon was a 'marketing mix'".
"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending the will of demand to
the will of supply.' That is, distinguishing or differentiating some aspect(s) of its marketing mix from
those of competitors, in a mass market or large segment, where customer preferences are relatively
homogeneous (or heterogeneity is ignored, Hunt, 2011, p. 80), in an attempt to shift its aggregate
demand curve to the left (greater quantity sold for a given price) and make it more inelastic (less
amenable to substitutes). With segmentation, a firm recognizes that it faces multiple demand curves,
because customer preferences are heterogeneous, and focuses on serving one or more specific
target segments within the overall market" (35).
"With skimming, a firm introduces a product with a high price and after milking the least price
sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective demand at each
price level. With penetration pricing a firm continues its initial low price from introduction to rapidly
capture sales and market share, but with lower profit margins than skimming".
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Forrester's "product life cycle (PLC)"
"The PLC does not offer marketing strategies, per se; rather it provides an overarching framework
from which to choose among various strategic alternatives".
"Although widely used in marketing strategy , SWOT (also known as TOWS) Analysis originated in
corporate strategy. The SWOT concept, if not the acronym, is the work of Kenneth R. Andrews who is
credited with writing the text portion of the classic: Business Policy: Text and Cases (Learned et al.,
1965)" (41).
"The most well-known, and least often attributed, aspect of Igor Ansoff's Growth Strategies in the
marketing literature is the term 'product-market.' The product-market concept results from Ansoff
juxtaposing new and existing products with new and existing markets in a two by two matrix" (41-42).
Porter generic strategies – strategy on the dimensions of strategic scope and strategic strength.
Strategic scope refers to the market penetration while strategic strength refers to the firm's
sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two
alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each
with a dimension of Focus-broad or narrow.
Product differentiation
Cost leadership
Market segmentation
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Innovation strategies
Innovation strategies deal with the firm's rate of the new product development and business model
innovation. It asks whether the company is on the cutting edge of technology and business
innovation. There are three types:
Pioneers
Close followers
Late followers
Growth strategies
In this scheme we ask the question, "How should the firm grow?". There are a number of different
ways of answering that question, but the most common gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification
These ways of growth are termed as organic growth. Horizontal growth is whereby a firm grows
towards acquiring other businesses that are in the same line of business for example a clothing retail
outlet acquiring a food outlet. The two are in the retail establishments and their integration lead to
expansion. Vertical integration can be forward or backward. Forward integration is whereby a firm
grows towards its customers for example a food manufacturing firm acquiring a food outlet. Backward
integration is whereby a firm grows towards its source of supply for example a food outlet acquiring a
food manufacturing outlet.
In 2003, Raymond Miles proposed a more detailed scheme using the categories: Miles, Raymond
(2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.
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BCG's "growth-share portfolio matrix" "Based on his work with experience curves (that also provides
the rationale for Porter's low cost leadership strategy), the growth-share matrix was originally created
by Bruce D. Henderson, CEO of the Boston Consulting Group (BCG) in 1968 (according to BCG
history). Throughout the 1970s, Henderson expanded upon the concept in a series of short (one to
three page) articles in the BCG newsletter titled Perspectives (Henderson, 1970, 1972, 1973, 1976a,
b). Tremendously popular among large multi-product firms, the BCG portfolio matrix was popularized
in the marketing literature by Day (1977).
Strategic models
Marketing participants often employ strategic models and tools to analyze marketing decisions. When
beginning a strategic analysis, the 3C's model can be employed to get a broad understanding of the
strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic
positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a
defined strategy. Marketing Mix Modeling is often used to simulate different strategic flexing go the
4Ps. Customer lifetime value models can help simulate long-term effects of changing the 4Ps, e.g.;
visualize the multi-year impact on acquisition, churn rate, and profitability of changes to pricing.
However, 4Ps have been expanded to 7 or 8Ps to address the different nature of services.
There are many companies, especially those in the consumer package goods (CPG) market, that
adopt the theory of running their business centered around consumer, shopper and retailer needs.
Their marketing departments spend quality time looking for "growth opportunities" in their categories
by identifying relevant insights (both mindsets and behaviors) on their target consumers, shoppers
and retail partners. These growth opportunities emerge from changes in market trends, segment
dynamics changing and also internal brand or operational business challenges. The marketing team
can then prioritize these growth opportunities and begin to develop strategies to exploit the
opportunities that could include new or adapted products, services as well as changes to the 7Ps.
Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of common-sense;
dealing with a limited number of factors, in an environment of imperfect information and limited
resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in
these circumstances, is inevitably partial and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design of the
advertising, and the packaging, will be the output of the creative minds employed; which management
will then screen, often by 'gut-reaction', to ensure that it is reasonable.
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For most of their time, marketing managers use intuition and experience to analyze and handle the
complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying
by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of
the customer which has been absorbed almost by a process of osmosis, will determine the quality of
the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse
marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.
Marketing planning
A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation
of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan
without a sound strategic foundation is of little use.
Behind the corporate objectives, which in themselves offer the main context for the marketing plan,
will lie the "corporate mission," in turn provides the context for these corporate objectives. In a sales-
oriented organization, the marketing planning function designs incentive pay plans to not only
motivate and reward frontline staff fairly but also to align marketing activities with corporate mission.
The marketing plan basically aims to make the business provide the solution with the awareness with
the expected customers.
This "corporate mission" can be thought of as a definition of what the organization is, or what it does:
"Our business is ...". This definition should not be too narrow, or it will constrict the development of the
organization; a too rigorous concentration on the view that "We are in the business of making meat-
scales," as IBM was during the early 1900s, might have limited its subsequent development into other
areas.
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It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to
identify those existing (external and internal) factors which will have a significant impact on the future
plans of the company." It is clear that the basic material to be input to the marketing audit should be
comprehensive.
Accordingly, the best approach is to accumulate this material continuously, as and when it becomes
available; since this avoids the otherwise heavy workload involved in collecting it as part of the
regular, typically annual, planning process itself — when time is usually at a premium.
Even so, the first task of this annual process should be to check that the material held in the current
facts book or facts files actually is comprehensive and accurate, and can form a sound basis for the
marketing audit itself.
The structure of the facts book will be designed to match the specific needs of the organization, but
one simple format — suggested by Malcolm McDonald — may be applicable in many cases. This
splits the material into three groups:
2. Review of the detailed marketing activity. A study of the company's marketing mix; in terms
of the 7 Ps - (see below)
3. Review of the marketing system. A study of the marketing organization, marketing research
systems and the current marketing objectives and strategies. The last of these is too frequently
ignored. The marketing system itself needs to be regularly questioned, because the validity of
the whole marketing plan is reliant upon the accuracy of the input from this system, and
`garbage in, garbage out' applies with a vengeance.
It is only at this stage (of deciding the marketing objectives) that the active part of the marketing
planning process begins. This next stage in marketing planning is indeed the key to the whole
marketing process.
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The "marketing objectives" state just where the company intends to be at some specific time in the
future.
The marketing objectives must usually be based, above all, on the organization's financial objectives;
converting these financial measurements into the related marketing measurements. He went on to
explain his view of the role of "policies," with which strategy is most often confused: "Policies are rules
or guidelines that express the 'limits' within which action should occur.”Simplifying somewhat,
marketing strategies can be seen as the means, or "game plan," by which marketing objectives will
be achieved and, in the framework that we have chosen to use, are generally concerned with the 8
P's. Examples are:
In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a useful
framework for deciding how the company's resources will be manipulated (strategically) to achieve
the objectives. However, they are not the only framework, and may divert attention from the real
issues. The focus of the strategies must be the objectives to be achieved — not the process of
planning itself. Only if it fits the needs of these objectives should you choose, as we have done, to
use the framework of the 7 Ps.
The strategy statement can take the form of a purely verbal description of the strategic options which
have been chosen. Alternatively, and perhaps more positively, it might include a structured list of the
major options chosen.
One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the best time for
each element of the strategy to be implemented is often critical. Taking the right action at the wrong
time can sometimes be almost as bad as taking the wrong action at the right time. Timing is,
therefore, an essential part of any plan; and should normally appear as a schedule of planned
activities. Having completed this crucial stage of the planning process, to re-check the feasibility of
objectives and strategies in terms of the market share, sales, costs, profits and so on which these
demand in practice. As in the rest of the marketing discipline, employ judgment, experience, market
research or anything else which helps for conclusions to be seen from all possible angles
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Detailed plans and programs
At this stage, overall marketing strategies will need to be developed into detailed plans and program.
Although these detailed plans may cover each of the 7 Ps (marketing mix), the focus will vary,
depending upon the organization's specific strategies. A product-oriented company will focus its plans
for the 7 Ps around each of its products. A market or geographically oriented company will
concentrate on each market or geographical area. Each will base its plans upon the detailed needs of
its customers, and on the strategies chosen to satisfy these needs. Brochures and Websites are used
effectively.
Again, the most important element is, the detailed plans, which spell out exactly what programs and
individual activities will carry at the period of the plan (usually over the next year). Without these
activities the plan cannot be monitored. These plans must therefore be:
Focused - The temptation to proliferate activities beyond the numbers which can
be realistically controlled should be avoided. The 80:20 Rule applies in this
context to.
Agreed - Those who are to implement them should be committed to them, and
agree that they are achievable. The resulting plans should become a working
document which will guide the campaigns taking place throughout the
organization over the period of the plan. If the marketing plan is to work, every
exception to it (throughout the year) must be questioned; and the lessons learnt,
to be incorporated in the next year’s.
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INDUSTRY PROFILE
India is currently the world’s second-largest telecommunications market and has registered strong
growth in the past decade and half. The Indian mobile economy is 21 growing rapidly and will
contribute substantially to India’s Gross Domestic Product (GDP), according to report prepared by
GSM Association (GSMA) in collaboration with the Boston Consulting Group (BCG).
The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework that
has ensured availability of telecom services to consumer at affordable prices. The deregulation of
Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a top five
employment opportunity generator in the country.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the next
five years according to estimates by Randstad India. The employment opportunities are expected to
be created due to combination of government’s efforts to increase penetration in rural areas and the
rapid increase in smartphone sales and rising internet usage.
International Data Corporation (IDC) predicts India to overtake US as the second-largest smartphone
market globally by 2017 and to maintain high growth rate over the next few years as people switch to
smartphones and gradually upgrade to 4G.
Market Size
Driven by strong adoption of data consumption on handheld devices, the total mobile services market
revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound Annual Growth
Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.
India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per cent to
the global Smartphone market, based on rising affordability and better availability of data services
among other factors.
According to a report by leading research firm Market Research Store, the Indian telecommunication
services market will likely grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020.
According to the Ericsson Mobility Report India, smartphone subscriptions in India is expected to
increase four-fold to 810 million users by 2021, while the total smartphone traffic is expected to grow
seventeen-fold to 4.2 Exabyte’s (EB) per month by 2021.
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mobile connections globally by 2020 making India the fourth largest Smartphone market. Total
number of Fourth-Generation (4G) enabled Smartphone shipments in India stood at 13.9 million units
in the quarter ending December 2015, which was more than 50 per cent of total shipments, thereby
surpassing number of Third-Generation (3G) enabled Smartphone shipments for the first time.^
Broadband services user-base in India is expected to grow to 250 million connections by 2017.
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COMPANY PROFILE
RELIANCE JIO
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL), India’s
largest private sector company, is the first telecom operator to hold pan India Unified License. This
license authorizes RJIL to provide all telecommunication services except Global Mobile Personal
Communication by Satellite Service.
RJIL holds spectrum in1800 MHz (across 14 circles) and 2300 MHz (across 22 circles) capable of
offering fourth generation (4G) wireless services. RJIL plans to provide seamless 4G services using
FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem.
RJIL is setting up a pan India telecom network to provide to the highly underserviced India market,
reliable (4th generation) high speed internet connectivity, rich communication services and various
digital services on pan India basis in key domains such as education, healthcare, security, financial
services, government citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere
access to innovative and empowering digital content, applications and services, thereby propelling
India into global leadership in digital economy.
RJIL is also deploying an enhanced packet core network to create futuristic high capacity
infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G
network will provide voice services from / to non-RJIL networks.
Reliance Jio is part of the ―Bay Of Bengal Gateway‖ Cable System, planned to provide connectivity
between South East Asia, South Asia and the Middle East, and also to Europe, Africa and to the Far
East Asia through interconnections with other existing and newly built cable systems landing in India,
the Middle East and Far East Asia.
RJIL’s subsidiary has been awarded with a Facility Based Operator License (―FBO License‖) in
Singapore which will allow it to buy, operate and sell undersea and/or terrestrial fibre connectivity,
setup its internet point of presence, offer internet transit and peering services as well as data and
voice roaming services in Singapore.
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RIL has finalised key agreements with its technology partners, service providers, infrastructure
providers, application partners, device manufacturers and other strategic partners for the project.
These strategic partners have committed significant resources, knowhow and global talent to support
planning, deployment and testing activities currently underway.
Home to the world’s second largest population of 1.2 billion, India is a young nation with 63% of its
population under the age of 35 years. It has a fast growing digital audience with 800 million mobile
connections and over 200 million internet users. Reliance thoroughly believes in India’s potential to
lead the world with its capabilities in innovation. Towards that end, Reliance envisages creation of a
digital revolution in India.
Reliance Jio aims to enable this transformation by creating not just a cutting-edge voice and
broadband network, but also a powerful ecosystem on which a range of rich digital services will be
enabled – a unique green-field opportunity.
The three-pronged focus on broadband networks, affordable smartphones and the availability of rich
content and applications has enabled Jio to create an integrated business strategy from the very
beginning, and today, Jio is capable of offering a unique combination of telecom, high speed data,
digital commerce, media and payment services.
The company will launch its 4G broadband services throughout India in the first quarter of 2016-2017
financial year. It was slated to release in December 2015 after some reports said that the company
was waiting to receive final permits from the government. Mukesh Ambani, owner of Reliance
Industries Limited (RIL) whose Reliance Jio is the telecom subsidiary, had unveiled details of Jio's
fourth-generation (4G) services on 12 June 2015 at RIL's 41st annual general meeting. It will offer
data and voice services with peripheral services like instant messaging, live TV, movies on demand,
news, streaming music, and a digital payments platform.
The company has a network of more than 250,000 km of fiber optic cables in the country, over which
it will be partnering with local cable operators to get broader connectivity for its broadband services.
With its multi-service operator (MSO) license, Jio will also serve as a TV channel distributor and will
offer television-on-demand on its network.
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PAN-INDIA SPECTRUM
Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and 6 circles, respectively, of the total 22
circles in the country, and also owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid
till 2035. Ahead of its digital services launch, Mukesh Ambani led Reliance Jio entered into a
spectrum sharing deal with younger brother Anil Ambani-backed Reliance Communications. The
sharing deal is for 800 MHz band across seven circles other than the 10 circles for which Jio already
owns.
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BHARTI AIRTEL
Airtel India is the largest provider of mobile telephony and second largest provider of fixed telephony
in India, and is also a provider of broadband and subscription television services. The brand is
operated by several subsidiaries of Bharti Airtel, with Bharti Hexacom and Bharti Telemedia providing
broadband fixed line services and Bharti Infratel providing telecom passive infrastructure service such
as telecom equipment and telecom towers. Bharti Airtel Limited is part of Bharti Enterprises and is
headed by Sunil Bharti Mittal.
Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It also acts as a
carrier for national and international long distance communication services. The company has a
submarine cable landing station at Chennai, with a connection to Singapore. As of September 2016,
Airtel has 255.73 million subscribers with a market share of 24.7% in the Indian telephony market.
Airtel was named India's second most valuable brand in the first ever Brandz ranking by Millward
Brown and WPP plc.
4G
On 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtel
paid ₹33.1436 billion (US$490 million) for spectrum in 4 circles: Maharashtra and Goa, Karnataka,
Punjab and Kolkata. The company was allocated 20 MHz of BWA spectrum in 2.3 GHz frequency
band. Airtel's TD-LTE network is built and operated by ZTE in Kolkata and Punjab, Huawei in
Karnataka, and Nokia Siemens Networks in Maharashtra and Goa. On 10 April 2012, Airtel launched
4G services through dongles and modems using TD-LTE technology in Kolkata, becoming the first
company in India to offer 4G services.
The Kolkata launch was followed by launches in Bangalore (7 May 2012), Pune (18 October 2012),
and Chandigarh, Mohali and Panchkula (25 March 2013). Airtel obtained 4G licences and spectrum in
the telecom circles of Delhi, Haryana, Kerala and Mumbai after acquiring Wireless Business Services
Private Limited, a joint venture founded by Qualcomm, which had won BWA spectrum in those circles
in the 4G spectrum auction.
Airtel launched 4G services on mobile from February 2014. The first city to get the service was
Bangalore. Airtel has started their 4G services in Karnal and Yamunanagar in Haryana on 16 June
2015. Airtel 4G trials has been started in Delhi from 18 June 2015. Airtel had 1,20,000 4G subscribers
as of May 2014.
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As of March 2016, Airtel provides 4G coverage in 350 cities in 15 circles. Airtel extended its 4G
network to 15 km off India's coastline, following a request by the Indian Navy.
VoLTE
On 3 November 2016, The Economic Times reported that Airtel had awarded a Rs. 402 crore (US$60
million) contract to Nokia to implement Voice over Long-Term Evolution (VoLTE) technology on the
operator's network nationwide. Airtel had previously awarded a smaller contract to Nokia for trial of
VoLTE technology in select circles in early 2016. Airtel subscribers will be able to place VoLTE calls
in areas covered by LTE. If LTE is not available in the area, the call will fall back to 3G or 2G. Airtel is
expected to launch VoLTE services in early 2017.
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VODAFONE IDEA Ltd.
Vodafone Idea Ltd, is the second largest mobile network operator in India by subscriber base, after
Airtel with a market share of 18.42%. It is headquartered in Mumbai, Maharashtra. It has
approximately 200 million customers as of August 2016. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India with better presence in the metros.
Vodafone India provides services on basis of 900 MHz and 1800 MHz digital GSM technology.
Vodafone India launched 3G services in the country in the January–March quarter of 2011 and plans
to spend up to $500 million within two years on its 3G networks. It has launched its 4G services in
India starting from Kochi in Kerala in December 2015 and plans to expands its network to various
other cities in the country.
Vodafone India is a 100% subsidiary of Vodafone Group. It commenced operations in 1994 when its
predecessor Hutchison Telecom acquired the cellular license for Mumbai. Brand Vodafone was
launched in India in September 2007, after Vodafone Plc. acquired a majority stake in Hutchinson
Essar in May 2007. From a single operation base with 31 million customers, the company has
expanded its operations across the country to cover all 22 telecom circles and service 180 million
customers. This journey is a strong testimony of Vodafone's commitment and success in a highly
competitive and price sensitive market.
4G
On 8 December 2015, Vodafone announced the roll out of its 4G network in India on 1800 MHz band,
starting from Kochi, Kerala. After that vodafone has launched 4G services in Kolkata, Mumbai, Delhi
followed by Kerala and Karnataka. Vodafone has launched 4G services in Tamil Nadu by 2100 MHz
spectrum. On 5th january 2017, World's Largest 4G Network Vodafone Launched its 4G services In
Guwahati Followed By Tinsukia, Sibsagar , Bongaigaon In Assam Circle.
VoLTE-Vodafone is expected to launch VoLTE service in this year followed by Reliance Jio and
Bharti Airtel.
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VODAFONE SUPERNET 4G
Vodafone SuperNet™ 4G is the world’s largest 4G network. (As per an independent report basis the
global presence of Vodafone 4G in more countries than any other brand. Source: GSMA, March
2016.) With Vodafone SuperNet™ 4G now in India, your smartphone will need a seatbelt. Experience
not just super-fast internet speeds but a host of advanced features that jolt the way you use your
phone. Upgrade to Vodafone SuperNet™ 4G now to get faster speeds and a superior browsing
experience. Vodafone SuperNet™ not only boosts your upload and download speeds but also
minimises your buffering time even while streaming HD videos .
Mobile broadband
The company launched its 4G broadband services throughout India in September 2016. It was slated
to release in December 2015 after some reports said that the company was waiting to receive final
permits from the government. Jio offers fourth-generation (4G) data and voice services, along with
peripheral services like instant messaging and streaming movies and music. On 5 October 2022, it
launched 5G services to Delhi, Mumbai, Kolkata, Chennai, Varanasi, siliguri, Bangalore, Hyderabad,
and Nagpur.
Jio Fiber
In August 2018, Jio began to test a new triple play fiber to the home service known tentatively as Jio
GigaFiber, including broadband internet with speeds ranging from 100 to 1000 Mbit/s, as well as
television and landline telephone services.
In August 2019, it was announced that the service would officially launch on 5 September 2019 as
JioFiber, in honour of the company's third anniversary. Jio also announced plans to offer streaming of
films still in theatres ("First Day First Show") to eligible JioFiber subscribers.
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In the year 2015, the company has a network of more than 250,000 km (160,000 mi) of fiber optic
cables in the country, over which it will be partnering with local cable operators to get broader
connectivity for its broadband services.
Jio business
In March 2021, the company has launched connectivity solutions for businesses bundled with
services provided by Jio Platforms, Reliance Retail and Office 365.
JioAir Fiber
In August 2023, in the Reliance AGM, the chairman of Reliance has announced that the JioAirFiber
eliminates the need for the last mile fiber cable connectivity by making the use of Jio 5G wireless
network and the product was made available for purchase from 19 September 2023.
The company has started installing Jio AirFiber devices from 1st October 2023.
Jio SpaceFiber
On 27 October 2023, Jio has launched its satellite-based Giga Fiber internet service in India.
LYF Smartphones
In June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G
handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that it would
be launching its own mobile handset brand named LYF.
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1, through
its chain of electronic retail outlets, Reliance Retail. Three more handset models have been released
so far, namely Water 2, Earth 1, and Flame 1.
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Jio Phone
Jio Phone is a line of feature phones marketed by Jio. The first model, released in August 2017 (with
public pre-orders beginning 24 August 2017), was positioned as an "affordable" LTE-compatible
feature phone. It runs on the Kai OS platform (derived from the defunct Firefox OS, and includes a
2.4-inch display, a dual-core processor, 4 GB of internal storage, near-field communication support, a
suite of Jio-branded apps (including the voice assistant Hello Jio), and a Jio-branded application
store. It also supports a "TV cable" accessory for output to an external display.
In July 2018, the company unveiled the Jio Phone 2, an updated model in a keyboard bar form factor
with a QWERTY keyboard and horizontal display. Jio also announced that Facebook, WhatsApp,
and YouTube apps would become available for the two phones.
JioFi
JioFi is a portable broadband device brought device brought by Reliance Digital. The JioFi device
allows multiple users and mobile devices to devices to acess Jio’s 4G high-speed Internet
connectivety and creates a personal Wi-Fi hotspot.
JioPhone Next
The Jio Phone Next is a fully-featured Android smartphone co-developed with Google as part of Jio's
long-term partnership. It was announced on 24 June 2021, by Mukesh Ambani. The budget
smartphone was launched in India on 4 November 2021.
The JioPhone Next will be run by the indigenously built Pragati OS based on Android Go operating
system. This phone is classified as an entry-level phone and is aimed at replacing feature
phones and providing basic smartphone services efficiently at low specifications.
Jio Bharat
Reliance Jio has introduced a budget-friendly 4G phone called Jio Bharat at an affordable price of
₹999. The phone's sales commenced on 7 July 2023, and Reliance Jio aims to eliminate 2G
technology from India through the widespread adoption of this device.
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The Jio Bharat Phone is specifically targeted towards individuals who are unable to afford expensive
smartphones but still rely on basic features.
JioDive
Reliance Jio has unveiled its JioDive virtual reality (VR) headset in India, to help IPL fans watch a
match in 360-degree stadium view while sitting in front of a 100-inch screen. A smartphone-based
virtual reality headset for entertainment, learning, gaming, and wellness.
JioTag
JioTag, an affordable object tracker, was introduced by Reliance Jio in India. By utilizing Bluetooth
5.1 technology and the Jio Things app, JioTag assists in locating lost items and alerts you when you
inadvertently leave your connected device behind.
Reliance Jio Infocomm Limited revolutionised the telecom sector. The scenario of
Indian telecom market before JIO entered it was:
There were more than 1 billion mobile users in India, out of which only 34% were connected to
the internet.
Then came Jio which took the market by storm by offering Data Centric plans and free promotional
data.
The Biggest difference between JIO and others is its Optical Fibre Network. An optical fibre is a wire
that converts your data signal into light and transfers them at the speed of light. Reliance Jio has the
longest fibre optic network in the country, ranging over 2,50,000 km and 90,000 eco-friendly 4G
Towers to provide the greatest 4G Coverage in all of India’s 22 telecom circles. Reliance Jio invested
Rs 150,000 crore to put this in perspective – this is more than two times the combined investment of
Airtel, Idea, and Vodafone in the 4G Segment.
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The success of Jio can be mainly attributed to its clear operational planning which can be
summarised into five distinct steps:
1. Step One: Undercut the market price by giving attractive discounts and free promotional data
2. Step two: Let everyone switch to jio or at least buy a Jio sim to experience data for free.
3. Step three: Unleash the power of the fibre optic network to give super fast internet and make
people realize that 1GB data is not really much.
4. Step four: Grow your subscriber base by having good customer care and awesome plans.
5. Step Five: Recover your investment using the large number of users accumulated.
Once the fibre optic network is laid down, the cost of operating is not very huge. On the contrary, the
network can be at minimal cost; therefore the only focus was to get more internet users. If 60% of the
people in India use 1 GB internet per month then Jio can recover the initial investment in 3 years. The
company also plans to rake in profits from its mobile apps which include a variety of services which
are described in subsequent sections.
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SWOT Analysis
SWOT Analysis is a well-established techniques for the audit and analysis of the overall strategic
position of a business and its environment, its key purpose is to identify the strategies that will create
a specific business model that will best align to an organization’s resources and capabilities for the
achievement of its objectives in the environment in which its operates .
SWOT is an acronym for Strength, Weakness, Opportunities, and Threats that are considered as to
be external factors over which there can be essentially no control.
The framework of SWOT Analysis is credited to Albert Humphrey, who tested the approach in the
1960s and 1970s at the Stanford Research Institute. Developed for business and based on data from
Fortune 500 companies, the SWOT analysis has been adopted by organizations of all types as an aid
to making decisions.
Strengths are defined as what each business does best in its gamut of operations which can give it
an upper hand over its competitors. They are internal attributes and resources that support a
successful outcome and can be used for competitive advantage. The following are the strengths of
Reliance Jio.
Strongest Customer Acquisition strategy: Reliance Jio probably has the best customer
acquisition strategy till date, the brand offered their services for free 3-6 months to all their
users. This resulted in million of users using Reliance Jio and resulted in one of the best
customer acquisition strategy in the history of telecom.
Strong backing by parent company: Jio is a subsidiary of Reliance Industries Limited whch
is high on its finance and can act as a backup for innovative future ventures. Reliance is a
popular brand with a pan-Indian presence and has high trust amongst customers.
Innovative technology: Jio currently uses the latest 4G LTE technology which is one of the
world’s best technologies for future in wireless communication.
Strong consumer base: Jio boasts of a whopping 100 million subscribers in the first 170 days
of its launch a record which no other providers has been able to register. This also made
Reliance Jio India’s largest internet service provider.
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Market share: First mover advantage in making data cost more affordable, forced other
operators to slash charges by winning a huge market share.
Brand management and advertising strategies: the reason for the huge customer base of
Reliance Jio is the brand management strategies that it has adopted. Most of the advertising
campaigns are lively and are targeted at millennials which proved a winning strategy. The right
promotion backed by lucrative offers and credible brand ambassadors like Shah Rukh Khan
and Amitabh Bacchan have helped in building connectivity with the customers.
Fast and wide network: Reliance Jio has a presence in all 22 telecom circles in India and is
known to be robust and fast network with fewer connectivety issues.
Multiple offerings under a single name: services like movies, games, shopping, chats, and
messenger etc. giving the customer a lot of options to choose from
Weaknesses are internal attributes and resources that work against a successful outcome. It is used
to refer to areas where the business or the organization needs improvement.
Late entry into the market: Reliance Jio has made a late entry into the market which already
had established players like Airtel and Vodafone who had occupied a place in the minds of the
cutomer. It would be challenging to increase market share significantly since the competitors
are strong MNC’s where cash wouldn’t be a barrier to keep Jio at check.
Activation Issues: Reliance Jio faced numerous gestation issues owning to not being able to
contain the huge volumes of customers it had acquired. On such was delays in SIM Card
activation during the period that followed its launch.
High dependency on data: Reliance Jio is highly dependent on data charges since call
charges are free.
Pricing Controversies: Reliance Jio was criticised for having lowered its prices beyond what
was ethical to penetrate into the market and this stir read allegations like corruption and money
laundering against them.
Too many freebies: Reliance Jio currently offers many services for free and this was one
reason for share increase in sales. However, the company maynot be able to afford all of them
in the long run which may affect the business negatively.
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Poor data connection: The data connection is many times poor from Reliance Jio and the
range is less, causing slower loading speeds in selected regions.
The ad campaign of Reliance Jio showing the PM was controversial: Jio used the
photograph of the Prime Minister in their full page advertisements contravening the ‘prior
permission’ stipulated under the Emblems and Names (Prevention of Improper Use) Act of
1950, which bars use of Prime Minister’s name and picture for commercial use. They have
apologised for their “inadvertent mistake.
Issues in calls: There were several issues with calls from and to jio sims and lyf smart
phones. This had influenced customers to consider other service providers as more reliable.
Will not support 3G: 3G was in common use during the launch of Reliance Jio. It did not
support 3G.
Opportunities are classified as external elements that the entity can capitalize on oruse to its
advantage to achieve its goals. These arise when an organisation can take benefit of conditions in its
environment to plan and execute strategies that enable it to become more profitable.
Future driven technology: Reliance Jio uses VoLTE 4G network which isscalable to
accommodate 5G and 6G technologies. This offers numerous avenues to Jio or future
expansion of bandwidth.
Apps: Reliance Jio has VoLTE which has a lot of scope in terms of band-width. Thus they can
offer apps to customers which are chargeable or even free initially and pay per use later.
Competitive Pricing Strategies: Reliance Jio prides itself on being a low-cost Internet service
provider and mobile operator. This can be used as apositioning to target more markets and
grow their market share since most of their competitors’ cannot afford their prices.
Data for billion people: The core opportunity is data and speed of data. Millennials are hugely
involved in various platforms. The government push for digitisation is making data a necessity
rather than privilege.
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Focus on customer service and MNP: More focus on customer-based ser-vices and Mobile
Number Portability can increase th in flow of new customers and persuade customers to prefer
Jio over other operators.
Focus on 3G customers also: Now, Jio benefits 4G users only, so they have opportunity to
concentrate on 3G users also to increase the number of customers.
PEST Analysis
PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-
environmental factors used in the environmental scanning component of strategic management. It is
a strategic tool for understanding market growth or decline, business position, potential and direction
for operations. It’s away of understanding how external forces impact your business. PEST can help
you identify significant changes in the political, economic, social, and technologicall and scape. And
these landscapes will affect your business in the future. It was created by Harvard professor Francis
Aguilar in 1967. It should be included in every business plan, in addition to a SWOT analysis, as it is
part of risk management and strategy design.
Firms should track their political environment. Change in the political factors cans affect business
strategy. Government legislations, tax regulations come under these political factors. Political stability
and economic policy of the government are important factors in any business. Economic factors are
connected with goods, services, and money. Despite directly affecting businesses, these variables
refer to financial state of the economy on a greater level — whether that be local or global. The
reason for this is that the state of the economy can decide many of the important details that come up
in an operating company, including topics such as consumer demand, taxes and asset value. Socio-
cultural factors of the country which it operates should be taken into consideration for any business.
Technology is a very important factor. For a technology-driven business field, it is the most important.
Existing technology and possible up gradations should be closely watched.
TRAI frames the rules and regulations for telecom industries. The rapid growth of Jio made the
competitor to disturb the schemes and offers of Jio. The competitors appeal their rights in TRAI. The
TRAI came under sharp criticism from the rest of the telecom industry for allowing RIL to test the
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connectivity of its network for253 days. The regulator also raised eyebrows for eliminating data share
from its definition of what constitutes ’significant market power’ not long after Jio became India’s
largest data provider. Predatory pricing is when an operator with over 30percent market share in any
circle drops prices in order to gain an upper hand over other operators in that circle.
TRAI regulations say being found guilty of predatory pricing could lead to a penalty of up to Rs 50
lakh per circle. This prevents Jio from further slashing prices. Jio has always tried to link the growth of
Jio with the government’s Digital India initiative. Favoritism from the part of government had always
been in the news. TRAI has also imposed fines on Jio for slipping on various service quality
benchmarks.
In the current economic situation it is a very difficult task to run the business in the telecom industry
as already there is a large number of network operators but Jio is providing free services with
minimum charges to its service like call rate, minimum price of their products. The people more
economical in a developing country like India, where the pricing is focused. The strategy has cashed
in on that. Affordable smartphones has become popular in rural areas.
India has the largest population of youth in the country. Jio mainly focuses on millennials who are
active on various networking platforms and have made the maddicted to data. Their pricing schemes
and advertising strategies mainly attract the Indian middle classes and youth. There have been an
over wheming response from young people. People are in general inclined cheaper and affordable
options. The growth in subscriptions and data consumption are all proof of Jio’s transformative social
power. By offering service at almost no cost, and at first for free, the company argues that Jio will
’democratise the digital culture in India’.
The advanced 4G technology has been adopted by Jio at a cheaper rate. They are the leader in the
4G market. This is supported by Voice over LTE which make sit scalable and supportive of 5G and
6G technologies which are expected to bethe future in wireless communication. Technology up
gradations is fast and capital intensive. Telecom sector is witnessing 5G and 6G up gradations.
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Promotional Strategy
Jio had appointed 50 customer acquisition and relationship managers who are hiring teams to target
to sign up 1 million users each in the first two months. Mukesh Ambani thought ”globally consumers
pay for either calls and texts, or data- they do not pay for both” Based on this promotional strategies
adopted by Jio are given below:
With every Reliance Jio sim, regardless of the package, the following are absolutely free:
1. Unlimited free voice calling to any other network, any other nmber (local and STD)
3. Jio applications will provide Internet surfing, music, movies, programs, free of cost.
Jio targets customer ranging from high end to mid and low range segments by offering all
service at reasonable prices.
LYF smartphones are priced between Rs. 4000 toRs. 19000 which provides maximum off take,
therefore helping Jio derives high returns.
If you buy a monthly plan worth Rs. 500 or more you will get the following additional benefits.
If you have a student registered SIM ID, you will receive 25% extra data usage.
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TRAIL Regulations
Telecom Regulatory Authority of India (TRAI) regulates the telecommunication sector in India. A
series of suspiciously timed changes in regulations by the TRAI have allowed the company Jio to sail
towards the top. It has undermined the health of its competitors by offering prices that many analysts
argue are predatory, despite laws meant to monitor and restrict anti-competitive activities. They
started by acquiring a small, obscure firm that had won an auction for national wireless spectrum.
According to the spectrum license, the firm was only permitted to provide internet service. But three
years later, the government allowed that firm,by then renamed Jio, to upgrade to a “full mobility”
license and offer every kind of cellular service for a fraction of what its full-mobility licences should
have cost.
The TRAI came under sharp criticism from the rest of the telecom industry for allowing RIL to “test”
the connectivity of its network for 253 days. The regulator also raised eyebrows for eliminating data
share from its definition of what constitutes “significant market power” not long after Jio became
India’s largest data provider. This allowed Jio to sidestep competition laws and stricter regulatory
scrutiny. Only companies that have significant market power, the TRAI wrote, could be viewed
asengaging in monopolistic behaviour Infotel, by contrast, participated only in the country’s
broadband wireless auction, which offered spectrum designed for internet service. The company was
not even licensed to provide cellular service. In April 2012, the TRAI recommended letting companies
with internet only licences upgrade to unified access licences.
In February2013, the department of telecommunications began allowing companies to do so. RIL was
the first provider to take advantage of the department’s decision. It was also, for Reliance, a money
saver. The entry fee for the internet only auction was substantially lower than the fee for the unified
services auction, and the government charged Jio a comparatively modest amount to upgrade. The
national exchequer lost over Rs 20,000 crore, or approximately $4 billion, in the process.
Until October 2017, a telecom company had to pay a competitor 14 paise for every minute that their
customers called someone who subscribed to the competitor’s network. But Jio protested that these
payments unfairly advantaged its opponents, all of whom had a larger customer base and a more
developed network and, as are sult, carried more incoming telephone traffic than Jio did. Incumbent
operators, including Airtel and Vodafone, countered that the fees were necessary and fair, given the
costs incurred to maintain their infrastructure The TRAI sided with Jio.
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Controversies Surrounding Reliance Jio
In September 2016, the Telecom Regulatory Authority of India (TRAI) summoned Jio and the
country’s existing telecom operators like Airtel, Vodafone, and Idea Cellular to meet and discuss an
issue regarding interconnection between the operators. This was a result after Jio complained to
TRAI and Department of Telecom (DoT) about other operators not honoring their commercial
agreements to let Jio use their network resources. The company further added that the operators are
trying to sabotage its entry into the telecom scene. However, Dot dismissed the request and directed
TRAI to help settle the dispute amicably. Moreover, the Cellular Opera-tors Association of India
(COAI) requested TRAI to include all the operators in the discussion instead of the three
The incumbent operators had previously approached the country’s PMO to re-iterate their stance they
”are in no way obliged or in any position to entertain Jio’s requests for inter connection points as they
do not have either the network or the financial resources to terminate the latter’s humongous volumes
of potentially asymmetric voice traffic.” Responding to this, Mukesh Ambani, owner of Jio, said, ”All
operators have publicly said last week that they will provide this (interconnect and MNP). So, we are
waiting. These are all great companies. They have their own reputations to protect. I am confident
they won’t violate the law.” Commenting about number portability, he added,”The number belongs to
the consumer. No operator can cause trouble if they want to change operators.” However, on 12
September 2016, Idea Cellular agreed to allow Jio to use 196 of its inter-connection access points
On july 10, 2017, Reliance Jio’s customer data was allegedly leaked on the website magicapk.com.
The website was suspended shortly after the news of the breach broke out.
Call Drop
Over 12 crore calls were failing between Jio and other networks due to inadequate Points of
Interconnection (PoI). Each operator provided only 400-600 Poi against the required 4000-5000. The
failure was 80-90% while the allowed was only 0.5%. TRAI asked the operators to sit for a meeting
together and provide the requires Poi’s.
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Auction for Spectrum
Another serious allegation levelled against Reliance is the improper means that were used to win the
auction of the use of spectrum. This detailed investigation by Paranjoy Guha Thakurta, published in
the EPW finds that a forged bank guarantee document was used by the winning company, Infotel
Broadband Services Private Limited (IBSPL) in 2010, and was soon after acquired by Reliance.
However, when the Center for Public Interest Litigation filed a case asking questioning the manner in
which Jio obtained the license; the Supreme Court did not take many of the irregularities into account.
Moreover, the final CAG report too did not contain many of the issues included in the draft stage.
A day after the Reliance Jio launch, full-page advertisements were printed on the first page of many
national dailys in India, featuring Prime Minister Narendra Modi. “In the journey of time, there come a
few life changing moments. Our honorable Prime Minister’s inspiring vision of a Digital India is one
such movement. Jio is dedicated to realising our Prime Minister’s Digital India vision for 1.2 billion
Indians. Jio Digital Life will give the power of data to each Indian, to fulfill every dream and collectively
take India to the global digital leadership, ”read a paragraph of text just below the image of Modi in
dark blue jacket, which is incidentally the same color as Jio’s logo. Opposition leaders and many
other hit out at the Prime Minister, some calling him a “stooge” of the richest man in India.
Later on the day, a ninety-second clip also featuring the PM was released on television and other
platforms. The final portion of the video links Reliance Jio’s aims specifically with Digital India, and
talks of how the service will connect India’s 1.2 billion people with free voice calls. The ad campaign
was accused to be a clever play, endorsing the product as a blessing to the nation.
A debate rose online and otherwise on the legality of using the PM on a private product campaign.
According to the National Emblems and Names (Prevention of Improper Use) 1950 - No person shall,
except in such cases and under such conditions as may be prescribed by the Central Government
use, or continue to use, for the purpose of any trade, business, calling or profession, or in the title of
any patent, or in any trade mark or design, any name or emblem specified in the Schedule or,any
colorable imitation there of without the previous permission of the Central Government or of such
officer of Government as may be authorised in this behalf by the Central Government. This law
suggests that written permission is required. In December 2016, the information and broadcasting
minister, Rajya vardhan Singh Rathore, told the parliament in a written reply that the government was
aware that RIL had used Modi’s image, but that it had not granted the company permission to do so.
In March 2017, RIL apologised for putting the prime minister’s face inits ads. In an editorial, the
Economic and Political Weekly suggested that beyond legality, “the question to be asked is why it
suits both Reliance and Modi to be seen as sharing a vision and what implications that has for RJIO’s
future.
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Favoritism by TRAI
Vodafone Group Nick Read pointed outthat the outcomes of the telecom regulator’s decisions over
the pasttwo years have hurt all carriers, expect Reliance Jio Infocomm, adding to the acrimony
between the country’s older carriers on on side, and the regulator and the Mukesh Ambani owned Jio
on the other. He sought a level field of play in India. TRAI and the new entrant though have rejected
all such allegations.
Some of the controversial decisions and regulations include a 57% cut in inter-connect usage charge
(IUC) to 6 paise a minute that had hurt revenue of older incumbents, while lowering costs for Jio.
Then, the regulator’s recommendation to slap penalties of Rs 3,050 crore on Bharti Airtel, Vodafone
India and Idea Cellular for allegedly denying adequate points of interconnect (PoIs) to Jio, has been
challenged by Vodafone in court.
Then, a TRAI order that changed the rules to identify predatory pricing, and also mandated reporting
of all segmented offers, was decried by older companies as one which would stymie their
competitiveness against Jio. The telecom tribunal later junked the order.
False Advertisement
Bharti Airtel Ltd approached the Advertising Standards Council of India (ASCI), accusing Reliance Jio
Infocomm Ltd of making false and misleading claims that it was the “best network and the world’s
largest mobile data network”, besides offering “best entertainment” and “best postpaid offers” in its
advertisement starring actor Deepika Padukone.
ASCI upheld the complaint. The claims, Airtel argued, were unsubstantiated and there was no
clarification or independent third-party data to back them. Moreover, since these claims were made
without any supporting evidence or disclaimers, the advertisement violated ASCI guidelines, Airtel
said in the complaint.
The panel, after concluding a personal hearing with Reliance Jio, observed that Reliance Jio may
carry the largest quantum of data consumed by subscribers globally, but data consumption cannot be
the only parameter for claims that it was the largest mobile data network. It said infrastructure as well
as the number of subscribers is also important parameters and, therefore, Reliance Jio’s claim of
“best network and world’s largest mobile data network” is misleading by ambiguity.
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OBJECTIVE OF STUDY
Objective of study:
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RESEARCH METHODOLOGY
The task data collection being collection after a research problem has been defined and research
design chalked out while deciding about the method of data keep in mind two types of data.
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA are those which are collected a fresh and for first time and thus happen to be
original in character. In this project I collected data through scheduling method .this method of data
collection is very much like the collection of data through questionnaire method. While little
differences lies in the fact schedule (Performa to contain a set of questions) are being in by the
Enumerator who are specially appointed for the purpose.
These Enumerators along with schedules go to responded, put them the question from the perform in
the order of question listed and record the replies in the space meant for the same in the preformed.
SECONDARY DATA Means that are already available i.e they refer to the data which have already
been collected and analyzed by someone else. Secondary data may either be published data are
available.
Thus we can say that the following methodology has been used to obtain the necessary information
and material for the project work.
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DIRECT METHOD: This method involves the direct interaction with the people Lo collection the
relevant information like company personnel, dealers, customer etc, and collect the information
through questionnaires.
INDIRECT METHOD: This method involves the collection of information through magazines, articles,
internet, website, etc, and also the process of drawing the conclusion with the help of analyzing the
question of the questionnaires. I have conducted a market research by visiting various shops and
houses.
Data collection: In this project the data has been collected from different people in different area by
conducting informed interviews.
Area covered: Regarding the survey and research I have meet different type of people and visited
various shops, houses, offices in Lucknow market region.
Field market:
It includes giving out in the field to collect required information and data from a concerned person.
I used to visit various offices conducting a short informal interviews which help to know all the
necessary information and data required for the project work under this survey my main target was to
have on interaction with the customers to find out as to what do they perceive with respect to finance
to find out potential of different product of range, financing and market share of existing players in the
market. I conducted my survey through a system of questions that are field by the customers as well
as by me during survey, which has been included in the report.
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FINDINGS
45% respondent said that they know about Relinace JIO, 35% no, but 20% can’t say.
40% know about that advertisement, 20% about friend, 20 from internet and 20% are know
another media.
45% respondent using Relinace JIO Product, but 55% said that they are using Vaseline
Products.
40% respondent said that Vaseline provide better quality & 60% said about Relinace JIO.
55% respondent said that Relinace JIO gives better satisfaction & 45% said that Vaseline
gives better satisfaction.
30% respondent said that Relinace JIO gives better schemes on retail, 70% said gives better
schemes on retail.
60% respondent said that Relinace JIO Products advertisement is better & 40% said Vaseline.
35% respondent said that Relinace JIO’s sales promotion is better, 65% respondent said
Vaseline’s sales promotion is better.
47% respondent said that Relinace JIO’s marketing strategy is better and 53% said that
marketing strategy is better.
44% respondent said that Relinace JIO gives best sales strategy but 56% said that Vaseline
gives best sales strategy.
34% respondent said that Relinace JIO product range is better but 66% said that Vaseline
product range is better.
47% respondent said that a Relinace JIO sale is better but 53% said that Vaseline sale is
better.
55% respondent said that Relinace JIO sales person behaviour better and 45% said that
Vaseline.
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LIMITATION
Though, best efforts have been made to make the study fair, transparent and error free. But there
might be some inevitable and inherent limitations. Though outright measure are undertaken to make
the report most accurate.
After this study some points emerge which should be implemented by the services provided by
Relinace JIO.
Relinace JIO should be given more space in online advertising.
In Online advertising should be published in colored forms more now days.
More people for events should be given in the form of online advertising.
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CONCLUSION
Reliance Jio Infocomm Limited, known as Jio, is an Indian mobile network operator. Owned by
Reliance Industries and headquartered in Mumbai, Maharashtra, it operates a national LTE network
with coverage across all 22 telecom circles. Jio does not offer 2G or 3G service, and instead uses
voice over LTE to provide voice service on its network. The launch of Reliance Jio has caused a
revolution in the telecom industry. Now, Jio claims to be the world’s largest data network, based on
mobile data consumption.
In this project, a complete analysis of the upcoming of Jio and its sudden success story was looked
into. The organizational structure, planning and marketing strategy, staffing and recruitment, SWOT
analysis, PEST analysis, promotional strategy, the impact of coming of Jio, Government policies,
controversies surrounding Reliance JIO, its ventures and collaborations and future projects were
discussed in detail. In this process efforts were made to bring in data and informations from various
researches and studies conducted in these fields. The management principles adopted by the
company were also analysed and studied in this project.
It was observed that Relinace JIO has been perceived quite positively as it has been projected.
People are aware of the Brand & Awareness of Relinace JIO is quite high in the market.
Relinace JIO products would appear, on the shelf, to have the most expensive range of skin care
products common to supermarkets, at almost double the cost of no name brands. This can be for
several reasons apart from just to cover the extra costs of promotions, for which no name brands do
without. When people buy Relinace JIO they are not just buying the product but also the image that
goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality
than the rest and that the consumer is not cheap.
In supermarkets and convenience stores Relinace JIO has their own setup which contains only their
products. There is little personal selling, but that is made up for in public relations and corporate
image. Relinace JIO sponsors a lot of events including sports and recreational activities .
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Bibliography
4. DWAPP, 14 April2018, “Jio swot analysis: Detaild report for professionals and students”,
https://digitalwale.com/jio-swot-analysis/
5. Yash Vardhan Lodhia, 10 jan 2017, “Reliance Jio Infocommn Ltd.”, https://www.slideshare.net
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