MARKETING PLAN

AKSHAT VERMA
SHREY SHAWAN KUMAR JAIN
AASHNA KAPOOR

DR. ANSHU SURI & DR. W. YUNA YANG

21ST MAY 2023

Company Description

A mobile network operator and telecommunications service provider, Reliance Jio Infocomm Ltd.
(RJIO) is a division of Reliance Industries Limited. Sim cards, mobile gadgets, and internet dongles
are among the things that the firm sells. Jio also offers prepaid and postpaid subscription services,
plans, phone, internet data, and online bill payments.

Additionally, Jio provides added services including texting, caller melodies, downloads,
entertainment, news, and updates. Mumbai, Maharashtra, India serves as the home base for Reliance
Jio. The business also operates its services in Singapore, the US, and the UK.

On December 27, 2015, Jio entered a highly competitive and saturated market and quickly gained a
significant portion of the market share, disrupting the sector by employing some of the most cutting-
edge marketing and customer acquisition strategies that made its rivals re-evaluate their tactics.

The corporation started the internal testing phase for its organization as well as the 4G data and
calling network and communications services. Jio Limited ultimately released the 4G services
commercially on September 5, 2016, after three-quarters of internal organization-wide introduction.
Reliance Jio provided all its consumers with free data and calling services for more than six months
(until March 31, 2017) when it first commercially launched its network and communications services.
This was a part of the company's strategy to draw in as many consumers as possible from the market
and establish a strong presence there from the very first day of the launch. The firm first stated during
its formal launch ceremony that it would provide free data and phone services to all subscribers until
the end of the year (December 31, 2016), but then extended the offer until one more quarter, or March
31, 2017. Within the first month of its introduction, the firm was able to bring in more than 16 million
users from the Indian market due to the effectiveness of this pricing strategy.

With more than 42.62 crore (426.2 million) members, it is India's largest mobile network operator and
the world's third-largest mobile network operator.

The Telecommunication Industry in India

Introduction

With 1.20 billion subscribers, India is presently the second-largest telecoms market in the world and
has had rapid expansion over the past 15 years. According to research created by the GSM
Association and Boston Consulting Group in partnership, India's mobile economy is expanding
quickly and will have a significant impact on the country's Gross Domestic Product. India eclipsed the
US in 2019 to overtake it as the second-largest market for app downloads.

Along with strong consumer demand, the Indian government's liberal and reformist policies have been
crucial to the sector's fast expansion. The government has created a fair and proactive regulatory
environment that has made it easier for telecom equipment to reach the market. The sector is one of
the fastest-growing and the top five employers in the nation because of the relaxation of Foreign
Direct Investment (FDI) rules.

The current indian Telecom Market is dominated by,

● Reliance jio
● Bharti Airtel
● VodafoneIdea (Vi)
● Bharat Sanchar Nigam Ltd (BSNL) and,
● Mahanagar Telephone Nigam Ltd (MTNL)

Market Analysis and Current Trends of the Indian Telecom Industry

● Total broadband subscriptions reached 788.77 million as of April 2022, and there were 1.16
billion total subscribers. By 2026, 350 million 5G subscribers in India will exist, making
about 27% of all mobile subscriptions.
● India's overall cellular data use climbed by 16.54% quarterly to 32,397 PB in the first quarter
of FY22. The percentages of 3G and 4G data utilization in the third quarter of FY21 and the
overall wireless data usage were, respectively, 1.78% and 97.74%. The percentage of 2G data
utilization during the same period was 0.48%.
● Availability of 5G in over 20 Indian cities by the end of 2022 supported by India’s leading
policy makers.
● The amount of FDI that entered the telecom sector between April 2000 and December 2022
was US$ 39.02 billion.
●
The Future of Telecommunications in India

According to a Microsoft research, India will become a major role in the virtual world by 2025 with
700 million internet users out of the 4.7 billion users worldwide. By 2025, the Internet economy is
projected to reach Rs 10 trillion (US$ 155 billion), contributing almost 5% to the GDP of the nation.
In the coming years, the Indian telecom sector is anticipated to develop quickly because of the
government's supportive regulatory policies and the launch of 5G services.
In order to further projects like the Internet of Things (IoT), machine-to-machine communications,
immediate high-definition video transfer, as well as its Smart Cities program, the Government of India
aims to sell out 5G spectrum in bands like 3,300 MHz and 3,400 MHz.
The Indian Cellular Association and a survey by Canaly states that the Indian mobile phone and
telecom industry anticipates that the Government of India's increase in the manufacturing of battery
chargers would lead to the establishment of 365 factories and the creation of 800,000 employment by
2025.
These trends have been recognised by the Indian Government and in the Union budget for the
financial year 2023-2024, the production-linked incentive (PLI) plan for telecom & networking
devices under the Department of Telecom was authorized by the Union Cabinet for Rs. 12,195 crore
(US$ 1.65 billion).

Internal Factors that governed Jio’s strategy

Vision and Goals: The goal of Jio is to use the power of the digital revolution to revolutionize India
by connecting everyone and everything at the best possible pricing and quality. With domain
knowledge across business sectors, Jio Platforms Limited (Jio) is building a vast digital ecosystem for
a billion Indians. The platform firm will offer digital solutions across business sectors and the
customer life cycle in addition to world-class fixed-mobile convergent connection.

Resources and Capabilities: Jio became a trusted brand among consumers thanks to Reliance
Industries' local and international presence. Jio's successful adoption of a digital strategy allowed the
business to quickly reach every client. Costs of Logistics and Distribution Jio's pricing were lowered
for the price-sensitive Indian client thanks to competition. They were able to manage the high cost of
client acquisition with these costs.

Core Competencies: Expanding their geographic reach to reach even the most remote areas of India
and grow their consumer base, using technology, reinforcing and improving the customer experience,
and introducing brand-new shop concepts and channels to create a lasting impression on customers.

Organizational Culture: Jio respects originality and ingenuity. They provide every person the
chance to share ideas, no matter how little, that may foster creativity and offer fresh perspectives on
decision-making, improve workplace cultures and environments, boost enterprises, and streamline
organizational systems and procedures.
Financial Performance: EBITDA, which stands for earnings before interest, taxes, depreciation, and
amortization, increased by 24.2 percent to Rs 47,034 crore on higher margins of 51.8 percent by 2.6
percentage points. Reliance Jio announced a net profit of Rs 4,716 crore for the three months that
ended in March 2023, an increase of 13% from the prior quarter. Jio had a strong financial
performance owing to the markets they are entering and huge market share.

Market Position: Jio enjoys the largest market share among all the other network providers, they
have put on a strong market position because of their rapid and huge investments in their network
infrastructure to offer competitive prices and also to increase its network coverage across the country.
They have also emerged in many new markets with JioTV, JioCinema, JioSaavn.

Customer Insights: Jio has a strong sense to understand the needs of Indian customers, they are very
price sensitive so to make it a household brand they targeted the customer base by providing free data
and calls so that majority of people start using Jio and they could make a place in the cluttered market.
They devised strategies and incorporated such people in brand collaboration, who the average Indian
customer loves which increased the customer loyalty.

External Factors that governed Jio’s strategy:

Market Competition: Airtel had been the market leader for the telecommunication industry for a
very long time and their services and investment couldn’t be matched and a lot of capital is needed to
enter this industry, so Jio had to devise a very out of the box strategy to sustain itself

Technological Advancements: With urbanization, people have started getting a lot of smartphones
and data pack, even the 2 tier and 3 tier cities have internet connection so the customer base has
broadened and people demands have increased

Alliances & Partnerships: Jio established alliances with smartphone producers to provide reasonably
priced 4G-enabled smartphones and so increase its user base. Additionally, Jio was able to improve its
service offerings and stand out from the competition through partnerships with content providers.

Economic variables: Jio's strategic planning was affected by broader economic variables including
GDP growth, disposable income levels, and purchasing power. Jio probably took into account the
state of the Indian economy, the possibility for market growth, and the affordability of its services for
customers.
Socio-cultural Factors: As technology increased, lifestyles of many Indians changed and
connectivity and internet became a very normal thing so Jio had to invest in such a way that they give
the best connectivity and cheap internet plans to fulfill the demands of such people.

Global Industry Trends: With the advancements of technology, Jio has been in accordance with the
global trends, India was among the first countries to incorporate 5G and super-fast internet.

Balanced Score card of Jio:

A strategic management approach called the balanced scorecard uses several viewpoints to measure
key performance indicators to give an overall picture of how well a firm is performing. Here is Jio's
balanced scorecard, emphasizing its important categories and the metrics that go along with them:

Financial Viewpoint: It reflects business potential and Jio had a very strong financial core with
strong financial performance compared to other competitors, Jio had a positive net profit of INR 510
crore of year FY 2022 and standalone EBITDA of INR 2,694 crore. With the launch of Jio, profit of
Airtel fell 93 percent year-on-year and Idea to a net loss of $172 million.

Customer Viewpoint: Jio enjoys a strong subscriber growth of 26.5 million people and a high
activity level of 9.7 GB per user with 716 minutes per user. Jio has also received awards of Best
mobile operator service for consumers.

Employee Viewpoint: Jio has a strong regard to the learning and development opportunities for its
employees and wants to augment the human capabilities. Jio also a rich diversity within its employees
with quota for women. Jio infrastructure and facilities are designed to support and enhance the
everyday life of employees with accessible parking spaces, ramps, swipe gates, signage, inclusive
medical centres, and child care facilities.

Growth Viewpoint: Jio has seen a tremendous growth from the year it was launched. Jio has become
the world’s largest mobile data provider with the world’s largest Volte network and the lowest call
drop rate.
Competitor Analysis:

Market share pre Jio:

More than 10 telecom firms operated in the market before to Jio's debut, but things drastically altered
after it arrived. With its aggressive pricing and cutting-edge technology, Jio destroyed the majority of
the telecom businesses. At the prices supplied by Jio, businesses like Aircel, MTS, Uninor (Telenor),
etc., couldn't exist. The market was left with the then-stronger competitors of Jio, such as Bharti
Airtel, Vodafone India, and Idea.

Market Share after Jio:

SWOT ANALYSIS

STRENGTHS
The following are the strengths of Reliance Jio:
• Affordable Pricing: Jio questioned the telecom sector by offering free voice calls and low-cost data
plans. Millions of customers were drawn to it by its cost-effective pricing strategy, especially budget-
conscious customers and those looking for good value. The low pricing factor has placed a major role
in Jio’s strong customer acquisition and retention.

• Rapid Technology Innovation: It was the first business to offer 4G LTE services in India, and it
keeps up with technological innovation by putting money into emerging industries like 5G, 6G
artificial intelligence (AI), and the Internet of Things (IoT). Jio's ability to supply cutting-edge
services and keep a step ahead of its rivals is made possible by its technological expertise.

• Jio Ecosystem: Jio has created an extensive ecosystem with a number of services, including JioTV
for live TV streaming, JioFiber for ultrafast broadband connection, JioMart for online grocery
shopping, JioCinema for movies and TV shows, and other platforms for gaming, shopping and
music. For consumers, this ecosystem offers a smooth, integrated digital experience that increases
their engagement and loyalty.

• Market Leader: Currently Jio is the market leader in the telecom industry with a market share of
about 38.5% which gives them a significant advantage in controlling the average data plans price and
negotiating with other content partners.

WEAKNESSES:
The following are the weaknesses of Reliance Jio:

• Providing Services for Free: Currently, Jio is providing several services for free to its customers
like the Indian Premier League (IPL), music and free delivery on groceries. This requires heavy
investment which may not be sustainable in the long run and may affect the business negatively.

• Quality of Customer Service: Due to the company’s rapid growth, there has been concerns raised
regarding it’s quality of customer service. Some consumers have complained about delays in problem
resolution and communication issues with customer support agents.

• Strong Competition: India’s telecom industry is highly competitive and several established players
like Airtel, Vodafone Idea have introduced attractive data plans with improved service and
 infrastructure to retain and attract new customers. Recently, Jio had lost 2 million active users while
Airtel added about 1 million active users in a month.

OPPORTUNITIES:
The following are the opportunities for Reliance Jio:

• Expansion into Untapped Areas: India has a significant rural population which is still underserved,
Jio can concentrate on offering specialised plans, regionalised content, and specialised services. Jio
can increase its client base and stimulate growth by fixing the connection issues in these regions.

• Emerging Technologies: Jio can improve its services and develop new revenue streams by utilising
cutting-edge technology like 5G, 6G, AI, and the Internet of Things (IoT). Jio can provide improved
connectivity, faster data speeds, and enable IoT-driven solutions for sectors like healthcare,
agriculture, and smart cities by investing in the 5G infrastructure needed and creating novel
applications and services.

• International Expansion: It can look at joint ventures with foreign telecom companies to increase
its presence outside of India. Working with MNCs can give Jio access to cutting-edge technologies,
new markets, and abroad exposure. Expanding internationally can help with revenue diversification
and lessen company’s reliance on the home market.

THREATS
The following are the threats to Reliance Jio:

• Unsustainable Pricing Strategies: Pricing wars between telecom companies can result in aggressive
pricing practices that could harm Jio’s profitability. This would eventually effect the company’s
revenue and could cause financial distress to its operations.

• Regulatory Changes and Policies: Regulations and policies may have an effect on how the telecom
sector operates, allocates spectrum, and sets prices. Government laws, taxation, and licensing changes
may have a big impact on Jio's operations.

• Eradication of Unpaid Services: Currently Jio is associated with a lot of freebies. Once these are
removed there may be a drop in the active users for the company.
 MARKETING PROGRAM

BUSINESS STRATEGY

One of the main factors influencing Reliance Jio's success is its business approach. The company
experienced tremendous growth as a result of using the AARRR strategy to enter the market. This
strategy consists of 5 essential elements that can assist a company to acquire and retain customers
creatively and cost-effectively.

• Acquisition: Following the launch of Jio in September 2016, the company implemented a strategy
to attract customers by offering free services for a period of three months. This approach proved
highly successful, enabling Jio to rapidly gain 16 million subscribers within just one month.
Currently, Jio is offering free IPL streaming to the customers and adapting the same strategy it used
in 2016.

• Activation : Jio differentiated itself from other telecom service providers by delivering an
unparalleled user experience. Customers were provided with unlimited high-speed 4G data and
unlimited calling, surpassing their expectations.

• Retention: Provide proactive and responsive customer support to address any issues or concerns
promptly. Establish multiple channels for customer assistance, including phone support, live chat,
email, and social media. Train support staff to handle customer queries efficiently and with empathy,
ensuring a positive support experience.

• Referral: Jio's customers became its strongest advocates, spreading positive reviews and sharing
their experiences with others. This organic word-of-mouth marketing significantly contributed to Jio's
remarkable growth.

• Revenue: By drastically reducing prices to a mere fraction of the existing rates, Jio was able to
generate substantial revenue. This played a pivotal role in its unprecedented market expansion. Even
though the revenue per customer was less the volume was really high to compensate it.

PRODUCT STRATEGY

Jio offers a diverse range of products and services to its customers and has introduced Internet services
to facilitate wider access to the internet and support digital initiatives.

• Mobile broadband - In 2016, it launched nationwide 4G broadband services in India. It provides

instant chat, vice services, and movie streaming.
• Jio Fiber - Jio GigaFiber, a new triple-play fiber-to-the-home service that offers internet speeds
between 100 and 1,000 Mbit/s, was first tested in 2018. In celebration of its third anniversary, it
formally debuted its services in 2019 under the name JioFiber.

• JioPhone Next- Mukesh Ambani announced the release of JioPhone Next on June 24, 2021. It is a
fully functional Android smartphone that was created in collaboration with Google as part of their
ongoing relationship.

• Jio improves the overall customer experience and offers value-added services to its users by providing
a wide variety of entertainment services like JioTV, JioCinema, JioSaavn, and JioNews.

PRICING STRATEGY

The brand caused a significant impact across the country with its bold entry into the market, offering
free services as its initial pricing strategy. This aggressive approach aimed to swiftly capture market
share without incurring advertising costs, as the offer itself generated widespread promotion. By
employing a penetration pricing strategy, Jio compelled its competitors to reduce their prices or risk
losing their share of the market. Smaller firms were particularly harmed by this pricing pressure since
they ran the risk of being driven out of the market because of the financial burden of price reductions.
Due to Jio's initiatives, there are now just four significant firms left in the industry, creating an
oligopolistic rivalry.
Jio modifies its pricing tactics frequently in order to consistently give its customers the best deals
available. In order to ensure that its consumers receive the greatest deals, the company works to offer
its goods and services at the lowest costs feasible. A crucial component of Jio's strategy for providing
customer service is its dedication to providing reasonable costs.

PROMOTION STRATEGY

Jio has conducted significant marketing campaigns across a range of venues, including print, radio,
television, and the internet. The advertising have mostly concentrated on highlighting Jio's affordable
data plans, free phone calls, and value-added services in order to showcase the unique benefits of
choosing Jio as a telecom service provider.
In order to effectively reach and engage with its target audience, Jio has made effective use of a variety
of digital marketing channels. In order to accomplish a number of goals, including raising brand
awareness, promoting its goods and services, and encouraging consumer involvement, the business has
made use of social media platforms, online display adverts, search engine marketing, and content
marketing.
Jio has actively pursued sponsorships and brand endorsements as part of its marketing strategy to
enhance brand visibility and credibility. The company has formed partnerships with sports teams, events
(Indian Premier League and ISL), and celebrities (Amitabh Bachchan and Shahrukh Khan) to align the
brand with popular and influential figures, thereby strengthening its brand image and capturing
customer attention.

PLACE AND DISTRIBUTION STRATEGY

To serve clients all over India, Jio has built a sizeable retail network. It runs Jio Stores, which are
specialised retail locations for Jio goods and services. These businesses act as customer contact
locations where people can buy SIM cards, gadgets, and subscribe to Jio services. Jio also has joint
ventures with numerous multi-brand merchants and retailers of mobile devices, broadening its
distribution network. It has a strong online presence through its official website and mobile app.
Customers can conveniently purchase Jio SIM cards, devices, and data plans online.
Jio has made huge investments in creating an extensive network centre throughout India. It has
concentrated on extending 4G LTE coverage to outlying locations in order to enhance network
connectivity. In order to expand its market reach and accessibility, Jio's broad network coverage makes
sure that users may access its services in urban, suburban, and rural areas.
It has formed partnerships with independent cable TV operators as part of its strategy to expand its
presence in the broadband and TV services segment. These collaborations allow Jio to utilise the
established infrastructure of these operators to extend its reach and provide high-speed internet and
digital TV services to customers.

RECOMMENDATIONS

Jio should implement the following tactics to draw in new clients and diversify its revenue streams in
order to keep its position as the industry leader in the telecom sector:

• Jio should adopt and offer the new 5G technology to its customers. It should develop its infrastructure
accordingly and invest heavily in research and development.

• Jio should broaden its services into international markets to create a diverse revenue streams.

• Delivering a superior customer experience through all touch-points should be Jio's top priority. This
involves making infrastructure investments for customer service, offering prompt and efficient
support, and using data analytics to tailor services and recommendations. Building client loyalty and
 satisfaction will be facilitated by ongoing monitoring of customer input and the implementation of
improvements based on customer insights.

CONCLUSION

In conclusion, the marketing strategies adopted by Reliance Jio has disrupted the Indian telecom
industry with its innovative pricing strategy and customer centric approach. Jio is currently the market
leader with a share of 38.5% and its business approach has forced its competitors to slash their prices
by 1/10th. More than 10 telecom firms operated in the market prior to Jio's debut, but things
drastically changed after it arrived. With its aggressive pricing and cutting-edge technology, Jio
destroyed the majority of the telecom industries leaving just 4 competitors.

Jio has benefited from developments including the rising demand for digital content, the possibility of
5G technology. Through offering diverse services like JioCinema, JioTV, JioSavan, and others, Jio
would provide a complete digital ecosystem to its customers.

Jio is threatened by fierce competition, though, as these businesses have also cut their costs and are
making significant investments to boost their infrastructure and customer support. Jio's operations
may be further impacted by regulatory modifications and new policies, which may further alter the
dynamics of the market. Jio must make significant R&D investments and implement fresh marketing
tactics to combat these threats.

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