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Reliance Jio: TH TH

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RELIANCE JIO

1. Marketing mix:
Product: Reliance Jio is a network operator of mobiles and offers 4G LTE wireless services.
It does not offer 2G or 3G services and is the only operator to provide VoLTE-only services.
For the first time Reliance Jio launched beta services to its employees and partners on
December 27Th, 2015. The company launched commercial services in the year 2016 5th
September. It had a fiber-optic cable network of 250,000 km that partners with local cable
operators to receive broader connectivity for getting broadband services. In May 2016,
several multimedia apps were launched by Reliance Jio on Google Play and it includes

 Wireless router – Jiofi


 Transfer content – JioSwitch
 Wallet app – JioMoney Wallet
 Backup tool that is Cloud-based – JioDrive
 Magazine and news aggregator – JioXpressNews
 Magazine e-reader – JioMags
 VoLTE phone-stimulator – Jio4GVoice
 Music player – JioMusic
 Instant-Messaging app – JioChat Messenger
 HD online video library – JioCinema
 TV channel live service – JioTV
 Manage digital services and Jio account – MyJio

Price : Reliance Jio is an Indian company with Pan-India presence. It has its headquarters
base at Navi Mumbai in Maharashtra. Reliance Jio has a strong and widespread distribution
channel. It is the owner of 1,800 MHz and 800 MHZ bands in 6 and 10 circles respectively
amongst the total 22 circles prevalent in India. It is also the owner of 2,300 MHZ spectrum
licensed for Pan-India usage till the year 2035. Reliance Jio entered into a deal with Reliance
Communications for sharing 800 MHz in seven other circles besides the ten already owned
by its company. It also made a deal with BSNL to use intra-circle roaming facilities in
national roaming mode. Before launching telephony services Reliance Jio offered free
services for Wi-Fi hotspot in several Indian cities like Ujjain, Dewas, Jabalpur and Indore in
Madhya Pradesh, Visakhapatnam in Andhra Pradesh, Ahmedabad and Surat in Gujarat,
selected locations in cities of Kolkata, Mumbai, Mussoorie, Bhubaneswar, Meerut and
Lucknow. Free internet Wi-Fi services were offered during 2016 20-20 matches at Kolkata,
Delhi, Bengaluru, Dharamshala, Mohali and Mumbai.

Price :At the end of the fiscal year 2015, estimated revenues of Reliance Jio were 13 million
rupees compared to the earlier year of 5.8 million rupees. The company has targeted people
with smartphones who desire good services and high internet speed as its target customers.
Reliance Jio has taken several steps towards transforming India so that it becomes a techno-
savvy and digital nation. It has adopted a reasonable pricing policy and has announced
reasonable rates for all its products. These rates will be applicable from the beginning of the
fiscal year 2016-17 as it has announced free services for every Jio-Sim since its launch till
31st March 2016.

Promotion: Reliance Jio has undertaken an aggressive marketing strategy to create positive
brand awareness. It has launched ad campaigns on television, radio, newspapers, magazines,
and billboards and social media platforms including Instagram, Facebook, Twitter and
YouTube. Reliance Jio knows the importance of star power and has roped in several
celebrities to act in its commercials and become associated with its brand. As part of
promotional activities Reliance, Jio offered free internet Wi-Fi services at six cricket
stadiums during ICC World Twenty20 and each and every one of its services free till the end
of the financial year 2016.

2. Marketing strategy: jio aims at creating an entire digital system, offering broad band
services,applications, smart devices, and mobile telephony facilities. Its offerings range from
recorded and live music programs, television shows, sports programs to movies.jio has
applications like jiomoney,jioplay and jio join app.

1) Quality Subscribers: It is offering free 4G data which means it’ll occupy the primary
sim slot in the smart phones 4G phones. Also customers will switch to Jio from their
broadband or the Wi-Fi services and possibly will stick to it even after the promotion
period ends. In addition to that it is offering free calling, so it is aware people will be
using the number for calling purposes for the next three months. Three months is a
sufficient time span for people to experience the super fast speed and the quality
services and permanently transfer to the network. Now assume that Jio reaches 75%
of its planned subscriber base of 100 million. So by the end of the year, Reliance ends
up with 75 million subscriber base. India’s total 4G user number is believed to touch
the mark of 143 million by this year end. So within 3 months of its official launch, Jio
would have acquired more than 50% of the market share. Even if many subscribers
leave the association with Reliance, still Reliance would be left with significant
market share.
2) 100 million mark: Mr. Ambani has expressed his ambitious plans of to reach 90% of
India’s population. The company plans to acquire 100 million subscribers in the first
year of its launch. By luring the population with free data and calls for the initial few
months, many doubt if this could result in financial gains for the company. But by
doing this it is stretching its operational and strategic bandwidth. Reliance Jiyo has
pumped total 1.5 lakh crore for 4G. Reliance Jio’s 4G network will cover 18000 cities
and town and over 2 lakh villagers. Now assume 50% of the users opting for 149 Rs
plan and the remaining for higher price plans, Reliance can easily make 400 Rs per
customer. If Jio manages to acquire a subscriber base of 100 million customers, it’ll
recover the cost within 5 years and start reaping huge profits after that (only if the
existing technology doesn’t obsolete!) Mukesh Ambani is betting on one single thing:
User base.
3) Oligopolistic market: The market for service providers is oligopolistic where the
participants fight for market share and profits on the basis of prices and differentiated
products. Reliance jio has both. It has differentiated its product by setting up a huge
bandwidth to handle the traffic of enormous data. And the plans they are offering is at
amazingly cheap rate. Masses are overwhelmed by the announcement of unlimited
free calling. Jio has an IP network hence all the calls will be routed through internet
just like whatsapp calls and skype calls. And once the huge optical fibre network
infrastructure is built, there isn’t any marginal cost for the company for providing call
service. In an oligopolistic market if some player creates such kind of ripple it forces
other players to slash the prices. The strategy of other player’s in the market is solely
dependent on Relaince Jio.
3. Target market selection: The target market is young adult, single, roughly 18 thru 32,
affluent. It is the largest 4G provider in India for High Speed Mobile Internet connection
mostly focused on engaging digital ecosystems for a seamless digital experience.

Airtel

Marketing mix:

Product : The company provides a wide array of products and services. In order to retain the
maximum number of customers, Airtel has tried to provide as many products and services as possible
in order to keep the customers. The following is a list of its products:

 Airtel Pre-paid services


 Blackberry Wireless Handheld
 Airtel Post-paid services
 Value added services like instant balance inquiry, caller line identification, 24 hour recharge
facility, multimedia messaging service, call wait & call Hold, Caller divert, Airtel Live portal
 SMS based information services
 Voice mail services
 Hello tunes, Ring tones,
 Ringtones and hello tunes offers
 Easy post-pay bill payment solutions
 Enterprise Solutions

Place: Airtel’s penetration in India is quite impressive because the services and networks can be found
even in India’s remotest regions. Currently, gross subscriber base has pass the 200 million mark while
the total wireless subscriber base for CDMA, GSM and WLL is about 162 million. Clearly, the
customer base of Airtel is strong in India. It is also worth mentioning that millions of the network’s
lines are added per year.

Promotion :Airtel engages in aggressive marketing strategy ranging from traditional print media to
social network marketing. The company also engages in large scale TV and print advertising. The
company frequently uses big celebrities who endorse the services. The company also managed to
create its signature tune from Oscar winning musician A.R.Rahman which has become one of the
most downloaded tunes in India.

It is also interesting to note that even such seemingly redundant activities like providing wallpapers
and screensavers to computer users has proved a very effective marketing strategy. The company also
offers special discounts and offers to its subscribers. Apart from that Airtel has been hiring several
figures from Bollywood right from the legendary Amitabh Bachhan to Vidya Balan as their brand
ambassadors. The God of cricket, Sachin Tendulkar too has been a part of their advertisement
campaigns too. The advantage of Airtel is that It goes regional with its advertisement efforts.

Some salient points about the promotions of Airtel are


 Uses ATL and BTL activities
 Makes an effort to go regional
 Recent rebranding effort has failed in the market
 Has good word of mouth and a good brand image second only to Vodafone.

Pricing : The company uses competitive pricing strategy just like any other network providers because
of the competition which is present in this sector. However, Airtel also provides flexible pricing
mechanism depending on the prevailing market conditions. For instance, when the company relaxes
taxation, it also reduces its prices across all affected products. The make my plan introduced by Airtel
was a smart strategy as customers could now modify their plan as they see fit.

Marketing strategy :

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