11/9/2016 Reliance Jio’s Marketing Strategy and Case Study

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Home » Reliance Jio’s Marketing Strategy and Case Study

Reliance Jio’s Marketing Strategy and Case

Study

Reliance Jio’s Marketing Strategy and Case Study – Jio aims at creating an entire digital ecosystem,
o៛�ering broadband services, applications, smart devices, and mobile telephony facilities. Its o៛�erings
range from a wide library of recorded and live music programs, television shows, sports programs to
movies. Jio Money, Jio Play and Jio Join app are among the most popular Jio applications.

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Jio customer acquisition Plan

Jio has appointed 50 customer acquisition and relationship managers who are hiring teams that will
target to sign up 1 million users each in the ៯�rst two months, said the person cited earlier. The
company wants to get to 100 million users in 100 days.

What’s reliance’s strategy behind this?

Mukehs Ambani ៯�nally acknowledges the universal truth – globally consumers pay for either calls and
texts, or data – they don’t pay for both. This universal truth helps establish a new industry norm in
reliance’s policies. Mukesh also said Reliance is going to charge 1/10thof the standard in
telecommunications charges.

What’s absolutely free?

With every Reliance Jio sim, regardless of the package you buy, even the cheapest one, you get
absolutely free:

Unlimited voice calls, to any number at all, local or STD

Absolutely no such thing as “roaming” or charges of roaming – same prices throughout India
Reliance Jio apps which will also free sur៯�ng of movies music and live TV free till December 2017

What else is extremely exciting about the plans?

If you opt for any plan above the base one, which is 150, so starting from the 500 rupees a month
plans to more, you get:

Unlimited texts, local or STD

Unlimited high speed night time 4G usage
Students get an additional 25% data usage if they register their sim card on a student ID

What’s the catch here?

There are obviously some catches and marked terms and conditions for everything that seems too
good to be true. Here are few things you need to look out for:

Essentially the starter 150 rupees a month pack is good, but not marvelously great. The real
brilliant pricing starts from the 500 rupees a month plans.
Reliance has a naughty network resulting in weak signals and call drops. Maybe that’s something
to keep in mind before switching.
All packs work for 28 days, not 31 days. So essentially, in the long run, you’d end up buying 13
packs a year and not 12. But that’s the norm with all other brands too.

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If you try to trick the system by tethering using a hack on your smartphone beyond your usage
allowance of tethering, and if Reliance ៯�nds out, you could not only face legal action but also be
banned from Reliance’s networks for life.

Mukesh Ambani’s Plan for JIO

Billionaire Mukesh Ambani’s Reliance Industries Ltd. plans to inject about 150 billion rupees ($2.2
billion) into its wireless unit as it prepares to take on peers such as Bharti Airtel Ltd. in the world’s
second-largest mobile phone market.

The unit, Reliance Jio Infocomm Ltd., will issue 15 billion new shares at 10 rupees each to existing
shareholders, the India-based company said in an exchange ៯�ling late Monday, without saying how it
would spend the money. The industrial group owns more than 99 percent of the a៝�liate, according to
its 2015 annual report.

Ambani, India’s richest person, is plowing more money into the wireless business as he prepares to
shake up the country’s crowded, indebted industry by introducing fourth-generation wireless services
through Jio. The Reliance unit has been buying spectrum since 2010 under a plan to return this quarter
to a market that now has more than 1 billion mobile subscribers.

Jio’s capital expenditure now is “above 1 trillion rupees,” not accounting for the payment for the
spectrum pacts, Thakur said, adding Reliance Communications hasn’t been paid anything for the
spectrum agreements yet. Jio could evaluate options for sharing and trading airwaves with smaller
carriers, Joint Chief Financial O៝�cer Srikanth Venkatachari told reporters.

Reliance Jio is expected to get 80 million subscribers by March 2018, with more than half churning out
of the top three operators, according to a Jan. 11 report by CLSA, “escalating the competition and
impacting realisations.” Billionaire Sunil Mittal, chairman of India’s largest carrier Bharti, had said Jio’s
entry will shake
up the sector and trigger consolidation.

jIO Competitive pricing

Jio 4G data services are not intended to lure only the high-end customers but also focus on the low to
mid range segments. These sections of the market are being targeted by o៛�ering all services at
reasonable prices.

LYF smart phones are priced between Rs. 4,000 to Rs 19,000 which provides maximum o៛� take,
therefore helping Jio derive high returns.

Single-device country

The prices of LYF handsets have been determined considering that India is soon becoming a country

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where smart phone users prefer to perform most tasks on their cellular devices. Recently, Reliance Jio
launched LYF WIND 1 which is one of the best mobile under 10000 under the LYF brand. From keeping
a track of the latest news, watching movies, playing games, to reading books, the smart phone is
becoming an all-encompassing device.

This very reason is the motivation behind Reliance Jio’s attempt at creating a៛�ordable handsets and
services that meet high-quality standards.

Jio services

Jio aims at creating an entire digital ecosystem, o៛�ering broadband services, applications, smart
devices, and mobile telephony facilities. It’s o៛�erings range from a wide library of recorded and live
music programs, television shows, sports programs to movies.

Jio Money and Jio Play are among the most popular Jio applications.

Jio Play

The Jio Play content streaming service allows users to conveniently catch up on their favorite TV
shows.  It allows uninterrupted entertainment without bu៛�ering videos and also provides a seven-day
back-up of shows.

E-health services

Reliance Jio has recently entered into an association with a public health center in Punjab. The
company’s e-health services are currently being tested there. The goal is to create a platform wherein
video calls can enable both medical examination and diagnosis of patients.

Reliance’s stake

Titled as the biggest bet made in the telecom industry, the parent company – Reliance Industries
Limited (RIL) has invested more than $ 22 billion in Jio. This investment helps Jio provide high-quality
services due to its extensive 4G spectrum, advanced technology, and the widest accession of optical
៯�ber network in the country.

A source stated that prior to the commercial launch, everything will be checked, and re-checked in
order to eliminate all glitches and create a seamless experience.

Infrastructural support

Reliance Jio is equipped to o៛�er data plans operating at speeds of 8 to 10 MBPS. The company has also
invested in 500,000 sq.ft of data centers which are currently functioning in Noida, Nagpur, and Navi
Mumbai. An additional 500,000 sq.ft of area will also become operational for the same prior to the

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commercial launch. These centers not only aid e៝�cient storage of data but also act as servers for Jio
applications.

The ៯�fth-largest smart phone provider in India (within the ៯�rst quarter after its launch), according to
data by Counterpoint Research, Reliance Jio’s commercial launch is much awaited.

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