“Jio as a game changer

in Indian Telecom
Service Industry”

Presented By-
Manosij Raha
Topics that I am going to cover-

1. Introduction
2. Services and products
3. Brand Strategies
4. Potter’s Five Forces Model
5. STP
6. Competitor Analysis
7. Marketing Mix (4 P’s)
8. Gaps Model
9. Flower of Services
10. SWOT Analysis
About the Telecom Sector in India
 Available international comparisons show that India has the second largest
number of telephone subscribers in the world (among 222 countries),
accounting for 12 per cent of the world’s total telephone subscribers.
 Telecom sector is also one of the fastest growing in India in terms of telecom
subscribers.
 Mobile tariffs in India are the second lowest in the world after Bangladesh.
Countries with the highest mobile tariffs include Austria, Venezuela, Greece,
Portugal, Australia, Japan, Spain, Switzerland, France, and Brazil.
 The increasing demand for data based services such as the Internet is the
major catalyst in the growth of the sector. The scale of the mobile
opportunity in India is therefore immense.
 s far as wireless broadband connections are concerned, the Indian wireless
broadband industry subscriber base has increased to 243.1 m as of February
2017, an addition of 110.4 m subscribers in one year; reflecting a solid growth
of 83.1%. This makes India the world's second-largest internet market after
China.
About Reliance Jio Infocomm Limited
 Subsidiary of Reliance Industries
 Headquartered in Navi Mumbai, Maharashtra
 Officially launched in 5th September, 2016
 1st VOLTE (Voice over LTE) service in India
 coverage across all the 22 telecom circles in India (Covers over 21,000 cities and
over 4,00,000 villages)
 Provide 4G service only
 130 Million total users as per December, 2017
 5,00,000 new Jio users per day
 Market share of 12.39% with a growth rate of 5.30%, 58% market share on 4G service
as of December, 2017
 Have more than 60,000 employees
 Introduce home delivery of sim in India (Service available in 100 cities)
 Brand ambassador is shahrukh khan; Official slogan “Jio Digital Life”
From where the journey have started

 2010- Reliance acquired 96% stake in Infotel Broadband services for Rs. 4,800
Crores, some hours after Infotel won spectrum auction
 2013- Infotel Broadband services were renamed to Reliance Jio Infocom limited
 2013- In December Jio made a deal with Bharti Airtel for sharing under-sea cable
capacity, optic fiber network, wireless towers and internet broadband service for
its 4G roll out
 2014- Reliance Jio signs optic fibre deal with Reliance Communications
 2015- 4G services were tried amongst their employees
 2016- 5th September services were commercially launched
Services of Reliance Jio
 4G broadband
 Jionet Wifi
Jio Apps-
 MyJio
 JioTV
 JioCinema
 JioChat
 JioMusic
 Jio4GVoice
 JioMags
 JioXpressNews
 JioSecurity
 JioCloud
 JioMoney Wallet
 JioSwitch
Products of Reliance Jio

 Jio feature phone

 Lyf Smart phone
 JioFi
Strategies
 Introduced cheapest smartphones under LYF brand and with it giving free Jio sim
with unlimited internet and calling
 Then announced free 4G internet 1GB/Day and unlimited calling and SMS for (3+3)= 6
months and then by giving good internet speed and good service they were able to
retain a good customer base.
 Introduced JioFi for 2G and 3G handset users
 By providing services like Jio Tv which is free live Tv, Jio cinema and free caller tune
and free miss calls alert they managed to attract lots of customers
 By providing sim in 15 mins and start the service in 1 hour only by introducing aadhar
registration (ekyc) for the 1st time in India and currently 4 lakh digitally-enabled
outlets by March 2017.
 Provide service in all the circles of India
 No roaming charges
 Reliance JIO invested 1,500 Billion to put this in perspective – this is more than two
times the combined investment of Airtel, Idea, and Vodafone in the 4G Segment
Strategies
 Recover your investment using the large number of users accumulated
 By introducing most attractive and as cheap as possible plans
 Plans for longer periods than usual like 71 days, 84 days, 91 days
Strategies
Vodafone’s plans before the launch of jio in 2016

 So Jio launched the plans at least by 60 times cheaper with 4G service which
is better than 3G service
 if 70% of the 130 million users use basic Rs. 149 plan then JIO can recover the
initial investment in 3 years.
 The whole master plan is based on one single thing and it is “Volume”
Strategies

 Gives advertisement frequently in

Tv channels and newspapers.
 Sponsor almost each IPL and ISL teams
 Brand ambassador like Shahrukh Khan
and Amitabh Bacchan
 Grab the opportunity by Using the
Slogan of the central govt. which is
“Digital India”
Potter’s Five Forces Model
 Threat of New Entrance- Low
Complex regulations, high price of spectrum, high capital investments,
well-established players who have a nationwide network, license fee,
continuously evolving technology and 2nd lowest tariffs in the world creates
Barriers to entry.
 Threat of substitutes- High
Buyers have lots of good options and Vodafone-Idea merger and Airtel’s
acquisition of Tata Docomo and Telenor can create good chances for them in
future.
 Bargaining power of customers- High
A wide variety of choices available to customers both in fixed as
well as mobile telephony has resulted in increased bargaining power for
the customers.
Potter’s Five Forces Model

 Bargaining power of suppliers- Low

Improved competitive scenario, Mobile number portability (MNP), Online
recharge with attractive discounts, cashback and coupons and commoditization
of telecom services has led to reduced bargaining power for services providers.

 Industry rivalry- High

Competition will increase as Reliance Jio Infocomm has entered the industry
in 2016. Reduced tariffs have hurt all incumbent operators. Also, customers' low
switching cost and price sensitivity are increasing competition among players.
STP
 Segmentation- People with smartphones looking for high speed
internet and good mobile services
Jio seems to have made most of this strategy since the 4G network in India has
great potential for growth and profit. As India’s 4G market is set for exponential
growth. Smartphone market volumes are at 326 million by the end of 2016
 Targeting- Urban & tier2 middle and upper class segment
As in India, there has been problem with online downloads or other internet
related functions due to low speed internet, therefore this tactic has vast
opportunities in this market. From June to July it offers unlimited high speed
internet on 4G network and 4500 minutes for free for three months to those
customers who buy LYF Smart phones with come with a Jio sim card.
 Positioning- Reliance Jio is helping transform Indian into a digital and
tech-savvy nation by giving affordable mobile service and data
Jio positioned on cheapest price and volume of sales. the offering of free voice
calls minutes and high speed internet of 1GB/Day, made its identity different from
its competitors and thus it gained more popularity. As Jio managed to garner over
50 million subscribers within a span of 83 days from commencement of its services
on September 5th, 2016.
Competitor Analysis

 Airtel
 Bharti Airtel led the telecom market with 24.21% share as of October-end
 With the formation of Indus tower & partnering with Idea & Vodafone for
Indian Operations, Airtel has extended its infrastructure in the extreme
parts of the country for nationwide penetration
 creating competitive edge over other players in terms of low operational
cost, better network connectivity, coverage, low call drops & better
customer service
 High-speed broadband, which is best in class network
 Data added back to next month and family pack plan is one of the cause of
huge success of Airtel
Competitor Analysis
 Vodafone + IDEA
 Vodafone Group and Aditya Birla Group’s IDEA announce leadership team of their
merger few days ago, which will make them the company which have the highest
market share (17.68% + 16.20%)= 33.88% market share as of October, 2017
 The company employs over 65,000 staff worldwide and enjoys a generous
customer base of 130 million. The business is in operation in 31 countries
worldwide
 Vodafone with its zoo-zoos ad campaign has been successful in creating top of
mind awareness amongst communication services companies around the world
 Idea has a network that spans across India and is there in 40,000 towns across
the country. The idea is also credited with the fastest 4 G network in India close
to 230,000 sites and a fiber optic cable covering close to 1.28 lakh km. It is
proposed to expand the Idea 4G services to 20 circles which will cover more than
94 % of the total market
 IDEA is at number 1 in a survey taken on customer satisfaction
 IDEA have the highest market share in the rural market of India
Current 1GB/Day Data plans of Jio,
Airtel and Vodafone

Jio Airtel Vodafone Idea

399 Rs 448 Rs. 396 Rs. 509 Rs.
Validity- 84 Days Validity- 82 Days Validity- 84 Days Validity- 84 Days
1.5 GB/ Day (4G) 1.4 GB/ Day (3G/ 1 GB/ Day (3G/ 1 GB/ Day (2G/3G)
4G) 4G)
Unlimited calling Unlimited calling Daily- 250 mins Unlimited calling
and weekly 1000
mins capping for
calling
Reliance Jio Marketing Mix (4 P’s)
 Price:
 Reliance Jio has promised to its customers to get the cheapest (low price)
data even after the end of welcome offer
 Jio kept their promise and provided about 40 times cheaper plan and with
long time validity plans.
 Price is the main success point of Jio
 Place: For the availability of product distribution channels should be well
planned.
 Covers over 21,000 cities and over 4,00,000 villages
 Covers all the 22 circles in India
 1 million of Wi-fi hotspots till the mid of 2017
 Wi-fi hotspots for network would be school, colleges and other public places
(that is another strategy to motivate more users to switch to Jio)
Reliance Jio Marketing Mix (4 P’s)
 Promotion:
 Reliance took over TV18 in 2014, This helped Reliance to get high level of
media coverage through this TV18 which includes popular channels like News
18, CNN-IBN, CNBC, Colors, MTV, Homeshop 18 and magazine like Forbes India
and websites like Moneycontrol.com
 Jio made Shahrukh Khan and Amitabh Bacchan as it's brand ambassador.
 Social Media Campaigns- “Jio Digital life’’ is the tagline used by brand which
is aligned to #DigitalIndia campaign of Modi Government, also it is appealing
to the young generation(18–35 age group)
 Gives advertisement frequently in Tv channels and newspapers
 Sponsor almost each IPL and ISL teams
Reliance Jio Marketing Mix (4 P’s)
 Product:
If we compare the product with incumbent players in the Indian Telecom
industry then we found these unique things in Reliance Jio-
 Jio works only on 4G and would be able to support 5G, 6G
 Jio is fully VoLTE based and that means voice calls would be made through
data network
 Free voice calls, free roaming and 1GB/Day high speed and then 64 kbps
unlimited internet is the main USP (Unique Selling Proposition) of Reliance Jio
 Jio provided Free welcome offer till March, 2017. Strategically, it helps to
gain market share as quickly as possible
 Introduced eKYC would enable customers to get Jio SIM activation in 15
minutes. Aadhar card would be used for that
 By providing services like Jio Tv which is free live Tv, Jio cinema, Jio music
and free caller tune and free miss calls alert they managed to attract lots of
customers.
 Jionet and JioFi helps jio to acquire more customers.
Customer Gap:
DIFFERENCE BETWEEN EXPECTATIONS AND
PERCEPTIONS

• Provider gap 1:
Not knowing what customers expect
• Provider gap 2:
Not selecting the right service designs and
standards
• Provider gap 3:
Not delivering to service standards
• Provider gap 4:
Not matching performance to promises
REALATE THE GAP WITH THE TELECOM SERVICES
 Provider gap 1:
• Not knowing what customers expect
• Regarding network
• Plan vouchers
• It may depend on person to person
 Provider gap 2:
• Not selecting the right service designs and
Standards
 Provider gap 3:
• Not delivering to service standards
• Not proper recruiting
• Customers who lack knowledge of their roles and responsibilities
 Provider gap 4:
• Not matching performance to promises.
• Overpromising
• Lack of integrated services marketing communications
SWOT Analysis

 Strength
 Strong backing of parent company ie Reliance Industries backed up Mukesh Ambani
 Excellent advertising and marketing of Jio helped the brand have a strong launch
 Jio has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped
reach out to masses
 Innovative technology i.e. 4G LTE services along with VoLTE
 Has a strong pan India presence with its operations in more than 22 cirles
 Jio apps are a unique feature offering movies, games, shopping, messenger, chat,
news etc under one roof
 LYF smartphones at affordable costs would also boost the brand Reliance Jio
SWOT Analysis
 Weakness
 The ad campaign of Reliance Jio showing the PM was controversial
 Late entrant in the India market, i.e. it would be challenging to increase market
share significantly
 For a huge number of outgoing call from Jio to other operators, Jio need to pay a
huge amount of money to other operators
 Previous controversies with Reliance Industries and current controversy of Jio & TRAI
 Opportunities
 The company can offer telecom, call, data services at lower prices or offer discount
coupons
 Exclusive apps like Jio Tv
 Focus on rural market and increasing purchase power and literacy rate in rural India
 Threats
 Merger of Vodafone and Idea And Airtel’s acquisition over Tata Docomo and Telenor
 Price war in telecom sector
“If you don't build your dream, someone
else will hire you to help them build
theirs”
- Dhirubhai Ambani