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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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India is currently the world's second largest telecommunication market and it has been seen that it is increasing from past two decades. The Indian mobile telecom is growing rapidly and will contribute to India's gross domestic product.

The Indian telecom sector is expected to generate 4 million jobs in the next coming 5 years. Employment opportunities are increasing because of both the factors helping. Government is also contributing to increase rate of employment in rural areas.

THE TELECOM MARKET SPILT INTO THREE SEGMENT:-

MOBILE

(WIRELESS)

It comprises of establishment of operating and maintaining and transmission facilities to provide direct communications

FIXED-LINE

It consists of companies that operate and maintaining and which transmission facilities to provide direct communications through landlines.

INTERNET SERVICES

It includes internet services providers (ISPs) that offer broadband internet connections through consumer and corporate channels.

NOTABLE TRENDS IN THE INDIAN TELECOM SECTOR:-

EXPANSION TO RURAL MARKETS

There are over 62443 uncovered villages in India; they wanted to provide them telephone facility with support from government.

In September 2016, the rural subscriber base accounted for 41.42 per cent of the total subscriber base.

GREEN TELECOM

This concept is aimed at reducing carbon footprints in the telecom industry by consuming less energy.

Tata has investment around USD 16.38 million to convert its 10000 base stations from indoor to outdoor to reduce energy consumption.

EMERGENCE OF BWA TECHNOLOGIES

The most significant recent development in wireless communications includes BWA technologies such as Wi MAX and LTE

In 2016, Airtel launched its 4G services in 296 cities across the India.

INTRODUCTION

“JIO” is the business name of reliance JIO Infocomm limited( RJIL). It is an LTE(LONG TERM EVOLUTION) mobile operator India. At the time of its launch it was the only telecom which was providing 4G network in India.

Indian telecom sector is becoming backbone for fast growing Indian economy. JIO came up with a  different idea of providing 4G networks in India. JIO came in the telecom industry to make huge revenue by providing good quality services at cheaper rate. It came up to cover all the 22 telecom sectors India.

JIO came up with very unique strategies. Firstly they offered public free internet , calls , and all the other services till 31st December ,2016. Later ,on they extent their free services till 31st march , 2017. Mukesh Ambani founder of reliance JIO confirmed that this offer will help them to achieve their target.

Reliance JIO is the world's largest startup at 1.5 lakh crore investment. At that time the company just have one aim to provide all the services at low rate. For that the company plans to partnership with small and emerging Indians entrepreneurs.reliance JIO is thriving like a king, leaving other telecom companies in a doubt about their own survival the future.

After a month to its launch JIO announced that, they have acquired 16 million subscribers. This is the fastest mobile network which has crossed 16 million subscribers in just a month

Objectives of study

To identify the business strategy

To identify the effect of JIO on a particular group of people

To analyse how other operator work.

VISION

Reliance's JIO vision was  to make broadband  not longer any luxury.

They wanted that all the people uses their net whether poor or rich.

To be our clients ‘first call'

To continuously increase our clients by proving them with grid services.

PRODUCTS OF JIO

LYF Smartphone

LYF is the reliance brand of smartphone that was launched in India in 2016 and now all the phone provided by JIO are available with free reliance JIO SIM coming with it. And all these phones come with all the JIO apps installed in it already like JIO express news, Jio chat, Joint hotspots, and many others. The company launched its phone under 4 different sub-brands- earth, water, wind, flame. And the company launched its first smartphone in July 2017.

2. JIONET WIFI

JIOFI is the portable broadband device bought by reliance digital. Jiofi can be used by multiple users at a time and mobile devices to access 4G speed and able to create personal Wi-fi hotspots. It can be connected to minimum 10 number of devices +1 USB connection at one time.

3. JIO apps

My JIO

JIO cinema

jIO chat messenger

jIO music

JIO XPress news

JIO security

JIO money

JIO tv app

JIO drive app

    

 3.1 My JIO app

   As the name suggests, my Jio app come up with all mobile   activity with JIO sim. Like

   My Vodafone..

   And my Airtel apps, my Jio app will show users how much is their data consumed  

    and how much data is left . The app can also  be used to check usage and generate

   account statement for last 6 months.

3.2 JIO cinema

It is an library from reliance Jio. Which Provide over 1 lakh+hours of content: which includes tv shows, movies, videos, clips. On this app we can download any tv show which we want to see. It is exclusively for Jio sim only. If you are a cinema lover you can watch preferred movies in any language which include Hindi, English, Tamil, Telugu, Gujarati, Bengali.

    3.3 JIO chat messenger

Many smartphone users have started using messaging in recent times, and it is of because Jio gave free vice and 4G data to Atleast 72 million users. On Whatsapps we  can make a group of 256 people only where as on Jio chat we can make a group of 500 people. In todays world everyone is doing group chat.

3.4 JIO music

This app is similar to apple music, Wynk, Saavn, Ganna and many others. This app offers millions of songs in many languages. This app also provide sharing means sharing your favourite songs with your friends. In this app we can also download songs and its free for Jio sim users.

   

 3.5 JIO XPress news

It is an app which gives access to 500+ newspaper, tv channels, magazines, news websites and famous blogs. Articles are also available in XPress view mode, even when you are offline. To is single app which gives user a advantage to compare different news channels and customising them.

 3.6 JIO  security app

Contacts, password, personal messages, bank information. A lot of people store their important stuff in their mobile devices. It all can be protected with the help of just one app and that is jio security. Its just not an antivirus app. It is an app which helps you to find you your phone when it I lost. This app can also protect those users who don't use Jio sim.

    

3.7 JIO money

This apple is similar to google pay, Samsung pay and apple pay. It can be used for making payments and as well as for receiving them. Through this we can make any payment from anywhere. It can also be substituted for Paytm and free charge.

3.8 JIO tv app

This app offers a wide range of tv shows across many language and genres. It also offer live tv pause and play feature. We can also watch our favourite shows, aired in the last 7 days. This app currently have access to 250+ channels.

3.9 JIO drive app

Jio drive is the storage for your photos, documents, songs. It is an app which enable auto backup to keep your hone data safe. One drive and google drive just offers 15 GB where as Jio drive comes with 100 GB. For some people 100 GB is also not enough so they can upgrade their plan.

SWOT ANALYSIS

Strengths

Company has launched its 4G services with very low low price as compare to other.

Company has strong financial system

Company has created a huge network with a huge investment

The company has also used latest technology which is capable to give good quality services

Brand value of company id very high

Weakness

Late entry into  the telecomm sector :- the telecom sector had grown to its initial phases, which started around 2 decades back. It has become highly competitive because of many brands which are doing their best  and this big player are Airtel, idea, Vodafone.

2.  Dependent  on data consumption:- as per the recent research 60-70 % of revenue comes from  voice calling. Hence their is a huge loss for making voice calling free. This loss can be covered only when consumption of data increase many times.

Opportunities

Large scale market for smart phones :- In  last 2 decades  the number of people using smart phones has increased manifolds. If company is able to provide good quality services at cheap rate then the company can easily capture the  market.

2. International markets :- the company can launch its products in many developing countries.   In many Developing countries  smart phone user are increasing day by day because of cheap prices.

Threats

Saturated market :- the initial phase of subscribers is now at the top level. Where the demand cannot increase. Now jio would be needing a large number of customers to built his base in the telecom industry.

2. Changing government policies :- recently, government cancelled the licence of 2G data. They are imposing huge taxes on mobile services. This has created uncertainty in the market which is causing adverse impact.

3. Rapid upgradation in technology :- from 2G to 3G and from 3G to 4G these changes have occurred in a very short period of time. Even 5G would be approaching in market soon. All upgradation requires huge investment and its not possible to remain in the market without it.

COMPETETORS

Airtel:- currently, Airtel has a 1495 plan that provides users 30GB of data for 3 months, for some people it is 10 GB of data at 500 rupees per month. And while JIO provides 90 GB of data in just rupee 909. Airtel has also introduced two unlimited voice calling packs at rupees 145 and 345. These both the plans have the validity of 28 days.

2. Vodafone:- it has a 297 rupee plan which offers a user 4GB of 3G data which has a validity of 28 days. Similar to Airtel, it also offers two free voice calling plans. The first at 149 offers unlimited Vodafone to Vodafone voice calls along with 300 MB of 4G data. And the second at rupees 349, offers unlimited local /STD calls to any operator along with 4G data.

3. Idea:- it offers for rupees 297, where idea customers get 3 GB of data with a validity of 28 days. Idea also has two vice calling plans.  The cheaper one gives 300 MB of 4G data along with unlimited idea calls at rupees 149 while the expensive one offers 1GB of 4G data with unlimited local/STD calls at rupees 348.

MARKETING STRATEGY  OF RELIANCE JIO

When reliance made his first step in telecomm sector, Dhirubhai made a suggestion hat the cost must be cheap as of “post card”. To explain his his suggestion he tried to explain that with the help of an example “dear mom! How are you. I hope everybody is fine their. I am doing well here. Dhirubhai said their are crores of people who all are using post card for these types of short communication. His suggestion to reliance was not to address small group of people rather addressing he large market by giving users services at cheat rate.

2. To offer high-end services at  very low price. So that both low-end d high end customers feel happy. That can be done by following certain things-

By using best and future proof technology

By covering large group of people

By using big scale operation to minimum the cost. This would help in bargaining with telecomm companies, handset manufacturers, over companies that will help in bringing cost down.

Many telecom companies launched their product in some city for trial but reliance want to launch their product in whole country at once. So that they can see how much people use their services and for that he give free services for 2-3 months.

Product must be universal (should be good for both high end as well as for low end)

Retain customers with giving more features then Competitors.

CASE STUDY

The case is about how reliance JIO Infocom limited (jio) tends to become largest leading telecom network in India. JIO  has already captured large market by providing their services at cheap rate. Its the india only network which is providing 4G services in india and that to at very cheap price. At the time of entering JIO offered free voice, data, and messages services from 5, september 2016 to 31,december 2017. By using this marketing strategy JIO captured large number of people and because of this his major competitors Airtel, idea, Vodafone were facing huge losses. They all were forced to lower their tariff to retain their customers. JIO was the only network which crossed 100 million subscribers in a very small period of time. JIO also offered many apps like movies, chat, music and many more. Jio faced certain challenges like sharing of spectrum, problems with other related to points interconnection. apart, from all of that. Jio planned to start charging for its services from 1st April,2017, by charging them under different tariffs. The difficult challenge for reliance was to hold  their customers after free services was over.

CONCLUSION

The growth of company demand upon consumer perceptions, regarding product and this can only be studied by consumer buying behaviour. The buying behaviour of consumer is influenced by a number of variables. He social environment in which he leaves, his family, his society, his friends, his neighbours, his job all these factors affects a consumer behaviour. The personality factor of consumer also affect his buying behaviour.

For that companies needs to appoint special person to see whether the customers are happy with the services or not.  If not then why they are not satisfied companies need to know this and that  can only be done when they appoint na special person.   

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