JioMart

Report
Table of Content
Contents
Current Situation .................................................................................................................. 3
SWOT Analysis .................................................................................................................. 5
STP Analysis .......................................................................................................................... 7
Segmentation ................................................................................................................... 7
Targeting .......................................................................................................................... 7
Positioning ........................................................................................................................ 8
Brand Image ..................................................................................................................... 9
7 P’s .................................................................................................................................. 9
Customer Acquisition and Retention strategies ................................................................ 11
Subscription model ........................................................................................................ 11
Payment gateways ......................................................................................................... 11
Celebrity endorsements ................................................................................................. 11
Referral program ............................................................................................................ 12
Digital Marketing ............................................................................................................ 12
Point of Sale Marketing .................................................................................................. 14
Metrics for Success ............................................................................................................ 16
References.......................................................................................................................... 17

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Current Situation
What is JioMart?
JioMart is an Indian online grocery company; it started as a joint venture by Reliance and Jio
Platform. JioMart delivers grocery and daily essential products from local kirana shops.

Major Competitors
• Bigbasket
• Grofers
• Amazon Pantry

Market
share
2019

App Download Metrics (vs) Competitors, July 2020:

1. Bigbasket – 26 Million downloads
2. Grofers – 22.5 Million downloads
3. JioMart – 7 Million downloads

JioMart
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What has JioMart achieved to date?
1. Presence in 200+ cities.
2. Website and Mobile application launched. (Initially launched over WhatsApp).
3. Onboarded 13500 kirana shops till July 2020. Expected to onboard 30000+ kirana shops
before the Diwali festive season.
4. Acquired Future retail, adds 1700 stores to its network to bolster the supply chain.
5. Ranked in the top 3 downloaded application in shopping category in August.

Amazon Pantry BigBasket Grofers JioMart

Cities 110 22 27 200
Daily Orders 4,00,000 3,50,000 1,50,000 2,50,000
Delivery time 1-2 days 1-2 days (in slots) 1-2 days (in slots) 2 hrs
Products range 3000+ 18000+ 5000+ 50000+
Consumer Mid High High Low
Preference

What is JioMart’s Marketing Objective?

o Penetration
o Increase penetration in online retail
o An early entry in Tier 2 & 3 cities Capture
Market Share
o Buy Rate
o Increase the purchase frequency of existing Increase Customer
customers Penetration in Tier Acquisition &
2 & 3 cities Retention
o Switch Rate
o Increase market share by getting competitor’s
customers to switch
o Profitable Brand Awareness Increase Profits

o Expand retail business

o Increase order size
o Brand Awareness
o Improve JioMart’s brand image in ecommerce.

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SWOT Analysis

•Product range (50k+) •Inventory issues

•Discounts (Upto 50%) •Out of stock supplies
•Fast Delivery (<2 hrs) •Delivery time issues due to COVID
•No Delivery fees for user •Poor SEO ranking of website
•No Minimum order value •Low brand awareness of JioMart
•Return Policy
•Lower last mile delivery costs
compared to competitors

Strengths Weakness

Threats Opportunities

•Competition •Market Valued at $1 billion

•Entry from other big players - Flipkart •Expansion to Tier 2 and 3 cities
•Kirana's not partnering with Jio •Cross selling by bundling
•Customer Retention - Switch to other •Promote Reliance brand products
brands because of lower prices
offered

Where does JioMart want to reach?

• Bigbasket and Grofers own the majority of share in the e-grocery segment.
• JioMart’s marketing implication is to increase its market share in cities where online
grocery is already present.
• JioMart wants to penetrate Tier-2 and Tier-3 cities where online grocery shopping is still
not present.

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JioMart
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STP Analysis
Segmentation
Reliance JioMart is in the initial stages of its operations and aims to be the most prominent and
sole retailer of groceries and more in India. Its strategy has been to expand operations
throughout the country and reach out to as many consumers as possible. We believe given Jio’s
resources, and it should continue this approach and reach out to as many consumers, and
identify decision making segments and market to them.
Key segmentation criteria:
Income: Lower-income groups tend to be more price-sensitive and hence would be attracted by
discounts and promotional offers, whereas medium to high-income groups is less likely to be
swayed by prices.
Geographic: Jiomart is currently present in 200 cities and towns across the country. With plans
to expand further, Jiomart needs to segment the Indian market according to geography into Tier
1, Tier2 and Tier 3 cities. All of these segments have different behaviours. Consumers in Tier 1
cities are more willing to switch to online platforms with greater internet exposure. In Tier 2 and
3, the efforts will have to be more educational, to tell consumers how to use Jiomart and its
benefits. For JioMart, the action will be to increase its reach and operations in Tier 1 and Tier 2
cities and to build its presence in Tier 3 cities.

Age Group: Age is another critical factor. There are certain age groups which form the decision-
makers, and the marketing efforts should be targeted towards them. Older age groups tend to
be more price-sensitive while the younger groups are more influenced by other aspects such as
quality and range of products. Additionally, older age groups prefer offline outlets such as
Kirana stores whereas the younger groups are much more open to e-retail.
Usage status and frequency: Different strategies need to be conducted for non-users and
lapsed users, as well as understanding how to increase the frequency of purchase.

Targeting
Following the segmentation, JioMart should be targeting the following consumer profiles
Characteristics Constant movers Experienced Up & Comers Traditionalists
Geography Tier 1, part Tier 2 Tier 1, part Tier 2 Part Tier 2, Tier 3 Part Tier 2, Tier 3
Income Group Middle to High Middle to High Low to Medium Low to Medium
Age 20-35 36-50 20-35 36-50
Usage Frequency Low Medium Medium Medium to High
Price Sensitivity Low Medium Medium High

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 Online/Offline Online Mostly Offline Mostly Offline Offline
Trigger for online Time-saving, Price saving Price savings None
range of products
Trigger for offline Instant purchase Trust, Quality Trust, Habit Trust, Habit
check

In line with its overall objectives, JioMart should target all the consumer profiles and create
different marketing strategies according to each profile

Positioning
JioMart has positioned itself as the cheapest, available for all retailer which is indicated by its
tagline – ‘Desh ki nayi dukaan’. Along with the goodwill of Reliance, JioMart finds itself in a
favourable position. However, given customer perception of a possible monopoly of Reliance,
and the bias against online retailers (late delivery, quality issues), JioMart needs to position
itself as the trustable, go-to brand whenever someone thinks of grocery shopping.
Currently, JioMart ranks low on the trust quotient and is behind leading competitors and Kirana
stores in Time Savings, as visible in the Perceptual Map. It needs to move towards the top right
corner by communicating its Point of Difference of shorter delivery time, and Point of Parity of
Wide range of branded products.

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Brand Image
JioMart brand contains typical Reliance colours and has a strong association with ‘Jio’. Brand
associations with Jio include lower prices for good quality and Reliance trust.
Brand associations that need to be created are safety, quality, spontaneity and quick anywhere
service.
The ‘Jio’ brand has helped Reliance improve its perception of customer service. A Bank of
America Securities survey indicated that 60% would try more Reliance products and services
and consider it as a more consumer-friendly brand[1].

7 P’s
The concept of the 7 Ps has been around since the 1960s. 4 P’s was more relevant for a product-
based company rather than service-based. 7P’s approach is used to understand and review
business its key issues related to the marketing objective of either product or service.

• Price: JioMart most attractive strategy is to attract customers from non-metro, tier 2 and
tier 3 cities through its pricing strategy as it provides in telecom service. Jiomart provides

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 massive discount (from 9% to 54 %) and coupons that provide a satisfying price to the
customer. An added advantage is no delivery fees and no minimum order amount.

• Product: JioMart has its own mobile app and beta version website providing 50,000+ wide
range of products from loose product to packaged items. JioMart offers many features
that make it easy for retailers and customer to use. Some of the key features of JioMart
are free home delivery, no minimum order value, express delivery, no questions asked
return policy and more.

• Place: The retailer has initially targeted the suburban Mumbai areas of Navi Mumbai,
Thane and Kalyan. JioMart has presently stated in 200+ different location mostly in Tier 1
and some in Tier 2 cities. Since in these locations, it has successfully launched, and orders
have been more than 250,000 JioMart.

• Promotion: Jio is positively aggressive when it comes to conscious advertising. It uses TV,
newspapers, radio ads. The deal between Facebook and Jio will boost JioMart promotion
by giving ads on social media platform like Instagram, Facebook. Through attractive and
price slashing coupons and discount attracts the consumers. Public awareness for Jiomart
is still in progress as it has recently launched in 200+ cities and more effective promotion
is required.

• People – All the kirana stores that act as a point of sale for the product will have a Jio
delivery associate present there. Shops those are associated with JioMart have kirana &
store manager.

• Process – Orders are done from the website (beta version), mobile JioMart app and
through WhatsApp. When an order is placed the confirmed item will be delivered to
customer within 2-3 hours from nearby kirana store, but in recent times due to COVID the
timeline extends to 2 days.

• Physical evidence - The items delivered will be packed in JioMart pack. The delivery agents
sport a fancy JioMart t-shirt and cap. The kirana shop which becomes a point of sale will
also have JioMart logo on their shop.

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Customer Acquisition and
Retention strategies
JioMart must explore campaigns to acquire and retain customers. Following are some strategies
for digital marketing, point of sale marketing and general ideas that JioMart could use to
increase awareness, visibility and customer base.

Subscription model
JioMart must introduce a subscription model at very attractive prices to develop long term
customers. Subscription bundles like yearly, monthly, and weekly grocery plans can be introduced
to retain customers. Attractive pricing offers will help boost frequency of orders, per order
amount and the overall number of orders.
JioMart could start a daily delivery model for items that need daily essentials like milk, eggs, curd,
bread, and meat.
Goal: Increase purchases, loyalty

Payment gateways
Partner with payment gateways like Paytm, to add to the existing partnership with Sodexo and
provide attractive offers on online payments to encourage a shift to online grocery shopping.
Partner with credit card companies like ICICI or SBI credit cards to promote special offers for
them.
Goal: Increase purchases

Celebrity endorsements
JioMart must collaborate with celebrities to create a brand image invoking trustworthiness and
quality. Additionally, to reach out to masses throughout the country, it would be better to pick
someone famous and a household name.
JioMart could choose different celebs depending on geography to reach out to people in each
region. It could bring on Amitabh Bachchan for North India, Rajnikanth for South India, Sachin
Tendulkar for West India and Saurav Ganguly for East India.
Goal: Increase awareness and likeability

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Referral program
JioMart can offer 10-20% discount coupons or cashback on next order for each successful
referral that a user provides.
Goal: Increase awareness and purchases

Digital Marketing

Search Engine Optimization

As per our observation, JioMart does not appear even on the first page, Google search results for
product searches like ‘Amul butter’. Amazon is usually the first result followed by Big basket,
Grofers and Paytm Mall. Only paid Google ads to appear at the top of the search results when
searching for terms like ‘order grocery online’.
JioMart must devise a robust SEO strategy to increase its website’s page rank and appear in top
unpaid search results. It must include appropriate keywords in all relevant locations on the
website for it to appear at the top of the search results.
Goal: Increase awareness, brand visibility and user base

Social media presence

A tremendous social media presence will help JioMart increase its reach. The JioMart website or
app currently does not list social media handles or contact us pages.
A quick and highly responsive Twitter handle will be useful to gain traction. This will ease out the
problem redressal process. JioMart must invest in regularly maintained Instagram and Facebook
handles for promotion of discounts, offers and new products on its site.
Goal: Increase awareness, usability

Bloggers and Influencers

JioMart must partner with bloggers and influencers like Archana’s Kitchen and Belly Over Mind
to write blogs, reviews, posts about JioMart describing their grocery shopping experience. JioMart
could onboard academics to write case studies on the brand to get attention.
The number of backlinks, i.e. number of websites that talk about JioMart is currently low in
comparison to Amazon, Big basket, and these partnerships will help increase this.
Goal: Increase awareness, brand visibility

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 YouTube advertising and partnerships
Popular YT ads help attract millions of
views and increase the traction to the
website.
JioMart must partner with popular cookery
channels like Sanjeev Kapoor Khazana,
Hebbar’s Kitchen with over 5 Million
subscribers each.
Goal: Increase awareness and
consideration

Sponsor TV shows
JioMart must collaborate with Indian TV show makers like Ekta Kapoor, Sony TV to sponsor daily
soap serials. They must show relevant stories or ads targeting homemakers and grocery
shoppers.
Goal: Increase awareness and consideration

WhatsApp ordering
JioMart must promote ordering via WhatsApp in rural areas
where people are not very tech-savvy and cannot operate a
website or mobile application.

Goal: Increase usability, awareness and purchases

Website and mobile app

The JioMart flagship website must be optimized to reduce load time. The mobile app is known
to become slow and unresponsive at times. It must be redesigned to work seamlessly on all
devices.
Goal: Increase ease of use, purchases

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Point of Sale Marketing
Kirana stores
• Branding support to kirana store owners offer lower rates from Reliance Market
compared to other distributors
• Leverage kirana stores for converting offline customers to move online using coupons,
loyalty points
Goal: Increase awareness among kirana stores and convert offline shoppers to a JioMart user

Events
• Mobile vans selling grocery in town centre or village centre to promote JioMart
• Temporary stalls in large housing societies in urban areas to sell vegetables, grocery and
to promote JioMart
Goal: Increase awareness

Tier 3 and Rural areas

• JioMart should promote its own brands and increase penetration by using village
entrepreneur techniques.
• JioMart must increase awareness for products like healthy oil, cleaning and disinfectant
products from their brands like Enzo, Mopz. It must stress on the fact that these are
homegrown, i.e. Indian made brands and make them available at low prices

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 • Huge scope to push Reliance products in rural areas. Shift focus on its brands such as
Best Farms, Good Life, Masti Oye, Kaffe, Enzo, Mopz, Expelz and Home One as they have
better margins.
Goal: Increase awareness, market penetration, promote own brand products to get greater
margins

Outdoor advertising
• Billboard advertising on major highways, roads within cities
• Distribute printed brochures along with newspapers

Goal: Increase brand visibility

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Metrics for Success
Business metrics help in displaying a measurable value that shows the progress of a company’s
business goal. There are 100s of metrics to track, but there is no use in tracking all of them. We
are choosing the useful metrics which help JioMart in achieving its goals. We will be monitoring
two kinds of metrics one for traffic based and the other for revenue-based. The reason to divide
the metrics into the two categories is that JioMart follows the O2O model and digital metrics
will be different from the offline metrics. A combination of both these provides an
comprehensive of JioMart’s objectives.

Traffic Based Metrics

S. No. Metric to track

1. App downloads
2. Customer Acquisition Cost
3. Website Traffic/No. of visitors to website
4. Traffic by Source
(Organic/Direct/Referral/Social)
5. Average session time on app and website
6. Social Media engagement and impression
7. SEO Rank
8. Churn Rate – Rate of customer attrition

Revenue Based Metrics

S. No. Metric to track

1. Daily Orders
2. Customer Acquisition Cost
3. Penetration Ratio
4. Revenue and Profit
5. Avg. Order Amount
6. Customer Lifetime Value
7. ROE – Return on Engagement
8. ROI – Return on Investment
9. No. of kiranas on onboarded

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References
1. https://www.livemint.com/companies/news/mukesh-ambani-why-reliance-industries-
loves-brand-jio-11582348101972.html
2. https://www.livemint.com/companies/news/for-reliance-retail-jiomart-pvt-labels-are-
the-way-to-go-11590344650286.html
3. https://tech.economictimes.indiatimes.com/news/corporate/jiomart-wants-you-to-buy-
small-and-buy-often/75609564
4. https://jiomartapp.com/jiomart-app/news
5. https://www.analyticssteps.com/blogs/reliance-jio-and-jiomart-marketing-strategy-swot-
analysis-and-working-ecosystem
6. https://www.business-standard.com/article/companies/jiomart-sees-order-flow-at-four-
times-of-pre-lockdown-period-for-kiranas-120082801250_1.html
7. https://entrackr.com/2020/09/jiomart-enters-the-top-three-downloaded-shopping-apps-
list-in-august/

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