Ashutosh Jio Report
Ashutosh Jio Report
Ashutosh Jio Report
PROJECT REPORT
on
MARKETING STRATEGY OF RELIANCE JIO
by
ASHUTOSH RANJAN
(ROLL NO-A35904616008)
CERTIFICATE
This is to certify that this project report entitled “Reliance jio infocomm limited ” submitted to
Amity University Jharkhand, is a bonafide record of work done by “ASHUTOSH RANJAN”
under my supervision.
Avirup Mukherjee
Place : Ranchi
Date : 7 oct 2018
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Declaration
This is to declare that this report has been written by me. No part of the report is plagiarized from
other sources. All information included from other sources have been duly acknowledged. I ever
that if any part of the report is found to be plagiarized, I shall take full responsibility for it.
Ashutosh Ranjan
A35904616008
Place : Ranchi
Date : 7 oct 2018
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ABSTRACT
My project is about the telecom industry with a reference to “Reliance Jio Infocomm Ltd.”
India is currently the world’s second-largest telecommunications market and has registered
strong growth in the past decade and half. The telecom industry in the country was USD 33
billion during (2014-2015). And the total mobile services market revenue in India is expected
to touch US$ 37 billion at the end of 2017, registering a Compound Annual Growth Rate
(CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.
Reliance Jio Infocomm is new player in telecom industry which provide services
of mobile telephony, digital services and giga fiber broadband in India. Currently
RJIL provide 4g services on a pan-India level using volte technology. The company has
launch this service internally to their staff and their families than has been launch commercially
during the 3rd quarter of the FY 2016 for all Users under “Reliance Jio Preview Offer” which
provide free 4g internet for 3 months along with the free access of different Jio application,
Free calls and SMS. As company is aware about customer need, Jio has also launched its own
mobile handset brand name Called LYF. Currently, Indian consumer is aligned to
Strong coverage & affordable price to buy 4g handset also great build durable
Smartphone.
As company did not want to lose market they came up with smart strategy to sell 4g Smartphone
So, if customer wants to purchase Jio SIM they need to buy LYF handset. This offer has helped
to boost up the sale for the LYF handsets. As per different reports company register 16 million
Jio Subscriber in just 26 days after it’s officially launch. After “Jio Preview offer” company
extended free service for another 3 months under the roof of “Jio New Year Offer”. Currently
Jio Offering “Prime Membership in 99 Rs.” to their user to get 4g internet at lower rate. Despite
tough competition from competitors like Airtel, Vodafone company was able to achieve to
register 105 million subscribers in short time.
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List Of Figures
\
TABLE OF CONTENTS
Title page 1
Certificate 2
Declaration 3
Abstract 4
List of figures 5
Objective ................................................................................................. 18
Conclusion ............................................................................................... 19
References ................................................................................................. 20
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Chapter 1
1.1 Introduction
Reliance Jio Infocomm Limited, doing business as Jio, is a LTE mobile network operator in
India. It is a wholly owned subsidiary of Reliance Industries headquartered in Navi
Mumbai, Maharashtra that provides wireless 4G LTE service network (without 2G/3G based
services) and is the only 'VoLTE-only' (Voice over LTE) operator telecommunications
company in the country. RJIL is a subsidiary of Reliance Industries Limited (RIL), India’s
largest private sector company, is the first telecom operator to hold pan India Unified License.
This license authorizes RJIL to provide all telecommunication services except Global Mobile
Personal Communication by Satellite. Company holds Universal Service License and is the
only pan India operator with Broadband Wireless Access (‘BWA’) spectrum for commercial
Long-Term Evolution (LTE) services across 22 circles capable of offering fourth generation
(4G) LTE wireless services across India. Reliance Jio is setting up a pan India telecom
infrastructure to provide fourth generation 4G LTE TDD high speed wireless internet and
mobile communication services. The services were first beta-launched to Jio's partners and
employees on 27 December 2015 on the eve of 83rd birth anniversary of late Dhirubhai
Ambani, founder of Reliance Industries, and later services were commercially launched on 5
September 2016.
RJIL holds spectrum in 1800 MHz (across 14 circles) and 2300 MHz (across 22 circles) capable
of offering fourth generation (4G) wireless services. RJIL plans to provide seamless 4G
services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated
ecosystem.
RJIL is setting up a pan India telecom network to provide to the highly under serviced India
market, reliable (4th generation) high speed internet connectivity, rich communication services
and various digital services on pan India basis in key domains such as education, healthcare,
security, financial services, government citizen interfaces and entertainment. RJIL aims to
provide anytime, anywhere access to innovative and empowering digital content, applications
and services, thereby propelling India into global leadership in digital economy.
RJIL is also deploying an enhanced packet core network to create futuristic high capacity
infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G
network will provide voice services from / to non-RJIL networks.
Reliance Jio is part of the “Bay of Bengal Gateway” Cable System, planned to provide
connectivity between South East Asia, South Asia and the Middle East, and also to Europe,
Africa and to the Far East Asia through interconnections with other existing and newly built
cable systems landing in India, the Middle East and Far East Asia.
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RJIL’s subsidiary has been awarded with a Facility Based Operator License (“FBO License”)
in Singapore which will allow it to buy, operate and sell undersea and/or terrestrial fibre
connectivity, setup its internet point of presence, offer internet transit and peering services as
well as data and voice roaming services in Singapore.
RJIL has finalized key agreements with its technology partners, service providers,
infrastructure providers, application partners, device manufacturers and other strategic partners
for the project. These strategic partners have committed significant resources, know-how and
global talent to support planning, deployment and testing activities currently underway.
1.3Technology:
✓ Reliance Jio Infocomm is currently laying OFC across the country to offer Fiber to the
home/premises (FTTH). This fiber backbone will also help them to carry huge amount
of data originated from their 4G network as well as public Wi-Fi network.
✓ Reliance Jio is deploying LTE-TDD technology for 2.3 GHz spectrum band, acquired in
2010.
✓ Reliance Jio will deploy LTE-FDD for 1.8 GHz spectrum, which will ultimately paved to
roll out of LTE-A network aggregation of both technology and both spectrum band.
✓ At present in different cities of India Reliance Jio offers Wi-Fi services. Most of these
cities are in Gujarat, where Reliance Industries also have one of the largest petrorefinery.
The second product is Reliance Pan-India 4G Spectrum service. The reliance Jio owns in 2
bands that is in 800 MHz and in 1,800 MHz in 10 and 6 circles respectively. Also, Jionet
4G network owns 2,300 MHz spectrum and is made valid till year 2035.
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The third product is reliance LYF Smartphones. Reliance Jio has joined hands with
domestic mobile handset maker named Intex to make available a 4G smartphones handset
with voice over LTE feature. Reliance Jio has announced launching their own mobile
handset brand known as LYF. The company has launched some Reliance LYF smartphone
series named as Water 1, other 3 smartphone models is also been released namely Water 2,
Earth 1 and Flame 1.
The fourth product is Reliance Jionet Wi-Fi. Reliance Jionet has been providing a wide
range of free Wi-Fi hotspot services in major cities across the India which include cities
like Mumbai, Surat, Ujjain, MP and many more. Also, Reliance Jionet started its free WiFi
services at 6 major cricket stadiums which includes Wankhede Stadium in Mumbai,
Eden Gardens in Kolkata, Feroz Shah Kotla in Delhi and many more in India.
The fifth product is Reliance Jio Apps. Reliance Jio had launched many multimedia apps
on android google play as a part of its 4G services. Below is the list of some names of Jio
apps:
JIOTV
JIOMAGS
JIOPLAY
JIOCHAT.
Pricing: Since 5 September 2016 Jio Offering 4g Internet, free call and SMS to it’s users. Jio
4g data services are not intended to lure only the high-end customers but also to focus on the
low to mid-range segments. These sections of the market are being targeted by offering all
services at reasonable price. Recently, Jio has started charging to their user under Prime
Membership at 99 Rupees in which customer have need to register themselves in defined time
to get the benefit. Then they must have to recharge different package according their need
starting from 97 Rs. To 9999 Rs. Which will be applicable from May 2017.
Service Portfolio: - Jio aims at creating an entire digital ecosystem, offering broadband
services, applications, smart devices and mobile telephony facilities. It’s offering range from a
wild library of recorded and live music program, television shows, sports programs to movies.
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Promotional Strategies: - On December 24, 2015, Bollywood actor Shah Rukh Khan was
appointed as Jio's brand ambassador. Marketing tactic used by Jio is Advertising through TV,
Print, Radio, Word of Mouth, Social Media and through Sponsorship.
Customer service: A 24/7 customer cells ensures continous improvement in services & products
through customer engagement.
1.5.1 Consumers
jio believes in providing the best to the consumers. It makes sure that the customers are getting
what they expected from its launch. It did many improvements and added many customers to
its database. Jio saw a massive growth since its launch. It spread like a wildfire. At the
beginning, it was really difficult to say that who are its loyal customers due to its 3 months’
free trial. Jio crossed 72.4 million customers last year till December 31 st. It increased its
customer base when it added happy new year offer and extended its existing offer by 3 months.
The customers saw a massive growth in the youth section due to its unlimited calling and 4g
service. Day to day it saw increase in the number of customers. But everything turned off when
the offer ended on March 31st and the customers had to subscribe for prime. It saw a heavy
decline in the customer base due to its prime membership where they had to pay a certain
amount for using the services provided by Jio. A 24/7 Customer Cell ensures continuous
improvement in services and products through customer engagement.
1.5.2 Environment
The working environment of the organization is really good and friendly where each and every
employee irrespective of their post and designation are treated equally. There is no such dress
code and always a room for advancement through thorough training program. The top
management of the company are approachable. The wok culture and ambience is really great
over there. The working hours are suitable and flexible. Everyone is open to raise any issues
he/she has. People are always spontaneous and eager to contribute for the betterment of the
organization. The whole team is full of energy and ideas.
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Chapter 2
Fig. 2.1
Fig. 2.2
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Chapter 3
SWOT Analysis
3.1 Strength
1. Low tariff
2. Very wide network
3. Brand name( Reliance)
4. Excellent Advertising
5. Brand Ambassador Like Shahrukh Khan ,Amitabh bacchan Which Has helped reach out
to masses.
6. Innovative services i.e 4G LTE along with VOLTE.
7. Strong Pan India Presence
8. Free Jio Apps Offering Games, shopping, Chat Etc.
3.2 Weakness
1. weak 4G network
2. Call drops
3. Operation of mobile no portability still not smooth.
4. Highly dependent on data consumption.
5. Late entry in Indian market
3.3 Opportunities
1. Large Scale availability of smart phones
2. Increasing rate of data consumption
3. The company can offer telecom,call, data services at competitive prices
4. Voice over internet protocol
3.4 Threats
1. Saturated market
2. Highly competitive market
3. Changing government policy
4. Raid upgradation of technology
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Chapter 4
4.2 Political
These are all about how & to what degree a government intervenes in business. This can include
– government policy, tax policy, labor law, environmental law, trade restrictions and so on. It
is clear from the list above that political factors often have an impact on organizations and how
they do business. Organizations need to be able to respond to the current & anticipated future
legislation, and just their marketing policy accordingly. Reliance Jio follows all the health &
safety of labor & other policies & abide all tax policies as well.
4.2.1 Economic
Economic factors have a significant impact on how an organization does business & also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income consumers and business and so on. These factors can further be broken
down into macro-economic and micro-economic factor. Macro & Micro economic factors deal
with the management of demand in any given economy. Government use interest rate control,
taxation policy and government expenditure as their main mechanism.
4.2.2 Technological
We all know how fast the technological landscape changes & how this impact the way company
market their products & services. Technological factors affect marketing and management
thereof in 3 distinct ways:
• New ways of producing goods & services
• New ways of distributing goods & services
• New ways of communicating with target market
For example, Reliance Jio using e-KYC based system for activation of SIM and Fibre optic
system to provide 4g internet & broadband services across PAN India.
4.2.3 Social
These are the areas that involve the shared belief & attitude of the population. These factors
include – population growth, age distribution, health consciousness, and career attitudes and
so on. These factors are of particular interest as they have direct effect on how marketers
understand customers and what drives them.
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4.5 Methodology:
Type of research :
Descriptive Research
Primary data:
Primary data is collected from existing and prospective customers by:
a. Questionnaire:
A well-structured questionnaire was used as a tool for asking a set of standardized questions to know the
effectiveness of different channels of marketing for their response. The data was collected by continuous
field survey during the internship period.
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b. Interview:
The next step involved in collecting primary information was done by discussion
with people. Thus valuable information was gathered through informal friendly talks with the people.
4.7 Findings :
As per the above research done majority of the Reliance Jio customers are male.
Research done majority of the Reliance Jio customers are 21-30 years old.
Above research done majority of the Reliance Jio customers are students.
As per the above research done majority of the Reliance Jio customers are using the service for the
purpose of the study.
Majority of the Reliance Jio customers are aware about the services through the Internet.
As per the above research done majority of the Reliance Jio customers are using the sim card.
Majority of the Reliance Jio customers are satisfied as per satisfaction level of the network
availability.
As per the above research done majority of the Reliance Jio customers are are neutral as per
satisfaction level of the calling quality.
Reliance Jio customers are satisfied as per satisfaction level of the data connection.
Research done majority of the Reliance Jio customers are very satisfied as per satisfaction level of
the price.
As per the above research done majority of the Reliance Jio customers are neutral as per satisfaction
level of the customer service.
As per the above research done majority of the Reliance Jio customers are unaware about the future
products of Reliance Jio.
4.8 Suggestions :
To launch special schemes for the students.
To maintain price level customer friendly.
To build customer friendly services.
To work on customer care services.
To provide the services in remote areas.
To provide services as per the customer expectation.
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Airtel.
Bharti Airtel Indian global telecommunications services company based in New Delhi, India. It operates in
20 countries across South Asia and Africa. Airtel provides GSM, 3G, 4G LTE and VoLTE mobile services,
fixed line broadband and voice services depending upon the country of operation. Airtel had also rolled out
its VoLTE technology across all telecom circles except Himachal Pradesh and Jammu and Kashmir in India
and likely to launch soon in these states. [6] It is the second largest mobile network operator in India and
the third largest mobile network operator in the world with over 438.04 million subscribers. Airtel was
named India's second most valuable brand in the first ever Brand ranking by Millward Brownand .
Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except
marketing, sales and finance and building the 'minutes factory' model of low cost and high volumes. The
strategy has since been adopted by several operators. Airtel's equipment is provided and maintained
by Ericsson, Huawei, and Nokia Solutions and Networks whereas IT support is provided by IBM. The
transmission towers are maintained by subsidiaries and joint venture companies of Bharti including Bharti
Infratel and Indus Towers in India Ericsson agreed for the first time to be paid by the minute for installation
and maintenance of their equipment rather than being paid up front, which allowed Airtel to provide low call
rates of ₹1 (1.4¢ US)/minute.
Vodafone
Vodafone Idea Limited(formerly Idea Cellular Limited) is India's largest telecom operator, with its
headquarter based in Mumbai, Maharashtra.Vodafone Idea is a pan-India integrated GSM operator offering
2G, 3G and 4G mobile services under two brands named Vodafone and Idea. Vodafone Idea also provides
services including Mobile payments, IoT, advanced enterprise offerings and entertainment, accessible via
both digital channels as well as on-ground touch points, centers across the country. The company's vision is
'to create world class digital experiences to connect and inspire every Indian to build a better tomorrow'. As
of July 2018, Vodafone Idea has 38.37% market share in India with 443.94 million subscribers, making
the largest mobile telecommunications network in India and second largest mobile telecommunications
network in the world. Vodafone Idea has a broadband network of 340,000 sites, distribution reach of 1.7
million retail outlets.
On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as Vodafone Idea Limited.
However, the merged entity would continue using both the Idea and Vodafone brand. Currently,
the Vodafone Group holds a 45.1% stake in the combined entity, the Aditya Birla Group holds 26% and the
remaining shares will be held by the public. Kumar Mangalam Birla heads the merged company as the
Chairman, with Mr. Balesh Sharma as the CEO.
On September 16th: Jio accused Vodafone India of being anti-competitive and said that it hasn’t
provided enough points of interconnect (POIs) for voice calls on their network. It said that over
80 calls were failing out of every 100 call attempts to Vodafone, adding that“In the last 10 days
alone, over 15 crore RJIL calls have failed on the Vodafone network”.
On September 18th: Airtel says PoIs have to be tested and connected, but Jio “seems to be dillydallying on
the issue and not cooperating deliberately. It appears that the constant rhetoric may be
a ploy by Jio to cover up some technical issues in their own network, which is causing call
failures, by constantly blaming other operators. In addition, call drops or the lack of VoLTE
stabilization should not be hidden behind the issue of POIs, which are being augmented at regular
and quick intervals.
On September 20th: Jio releases data saying that “hardly any new interconnection capacity has
been made operational”, and that it needs 4,000 – 5,000 E1s per operator for the three incumbent
operators. Jio mentioned 10 crore call failures per day between RJIL and the three incumbent
operators.
On September 23rd: Jio claimed that over 750 calls per 1,000 are failing per day between Idea
and Jio networks, which translates to 4 crore calls failing per day. “Only 50 new E1s have been
operationalised by Idea in the last 10 days as a result of which call failure rate has been increasing
drastically,” Jio added.
On September 27th: Bharti Airtel said that Jio’s sea call failures is taking place due to the Jio’s
“under- preparedness and insufficient testing efforts,” according to a TelecomTalk report. Jio responded
stating that “Airtel’s contention that the congestion has been
caused by large-scale subscriber acquisition by RJIL is not only unreasonable but also anticompetitive.” It
added that Jio has is “completely ready” to accept augmentation of PoIs from
Airtel’s network and its transmission media has been up and operation for several months and
that Jio-to-Jio calls have been running without any failures.
On October 27th: TRAI issued a consultation paper asking whether a standardized interconnect
agreement be mandated in case two telcos fail to mutually negotiate the terms and conditions of
interconnection.
On November 3rd: TRAI requests Airtel, Vodafone and Idea to “mutually” resolve issue of
interconnection with Reliance Jio, according to this PTI report. The decision came after TRAI’s
Chariman R S Sharma held a meeting with operators over the issue.
After Tarrif war Bharti Airtel Challenges, Reliance Jio with 135 Mbps data Speed
After Preparing For A Tariff War, India’s Top Telecom Operator Bharti Airtel
Gearing Up To Engage With New Entrant Reliance Jio On Another Front: Data Speed.
The Company Said It Has Deployed Technology Known As “Carrier Aggregation”
In Mumbai And Kerala To Combine Different Bands Of Spectrum And Create
Larger Blocks Of Airwaves To Offer Faster And More Stable 4g Data Services For
Mobile Users.
The Enhanced Service Enables Peak Download Speeds Of As Much As 135 Mbps,
Which Is Faster Than What Users Get On A Normal.
In Jio’s Ongoing Trial Phase, A Relatively Empty Network Has Offered Peak Speeds
Of 80-90 Mbps. Faster Speeds Achieved Through Carrier Aggregation Will
Transform 4G Into A Better Product For Consumers.
Vodafone
• On The Other Hand, Vodafone Is Giving 1GB Data (3G/4G) For Rs 297 With
Validity For 28 Days. This Sums Up To Rs 3,861 For 13 GB Of Data For 12
Months
Idea
• Idea Which Is Also Trying To Catch Up With Competitors Is Providing 1GB
(3G) At Rs 249 For 28 Days. You Will End Up Spending Rs 3,237 For 13 GB
For A Year.
Personal Details
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AGE
OCCUPATION
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Annual Income
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Chapter 5
Fuelled by an investment of Rs 1,50,000 crore and backed by partnerships with eight global
carriers — British Telecom, Deutsche Telecom, Millicom, MTS, Orange, Rogers, TeliaSonera
and Tim — Jio has successfully created the largest only 4G and LTE networks not only in
India, but in the world. A 2,50,000 kilometres route of fibre optic cables and 90,000 ecofriendly
4G towers work to provide unmatchable 4G coverage in all of India's 22 telecom
circles (call zones which differentiate between local and STD calls).
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5.4.1 Step one – Under cut the market price by giving Attractive discounts.
5.4.2 Step two- let everyone switch to jio fibre net for internet use at cheap rates.
5.4.3 Step three- grow your subscriber base.
5.4.4 Step four- recover your investment using the large number of users.
Once you have already laid down the fibre optic network, the cost of operating it is not very
huge. On the contrary, you can operate the network at minimal cost. Therefore, the only focus
is to get more internet users.
If you look at the tariff plan, you will notice that it conforms to the above ideology. They are
not charging for the voice calls because they don’t care about voice. In fact, not charging for
voice will attract more people towards Jio. After that, they can showcase their data capability.
5.5 Jio Infocomm strategy to reach maximum customer across the India are:
5.5.1 Loss Leader strategy – Offering free voice calls for a lifetime, nil roaming charges and a
wide portfolio of apps; charges consumers only for data usage under super competitive
plans.
5.5.2 Largest 4G network ever – Over 100 Mn subscribers across 18,000+ towns and cities and
2 Lakhs villages. Plans to reach 90% of India’s population by March 2017.
5.5.3 Wide range of affordable 4G VOLTE smartphones under its “LYF” brand.
5.5.4 The “Data Sachet” strategy – cheapest data plan is available for Rs. 19 a day.
5.5.5 Deep Pockets – Reliance Jio is planning a further investment of Rs. 30, 000 crores to
expand coverage and capacity which will take the total investment close to Rs. 1,90,000
crores.
5.5.6 Walking out working – Aadhar based instant SIM activation at Reliance Digital and
Xpress Mini store.
5.5.7 Look beyond telecom – Jio doesn’t want to be tagged as just another telecom player and
has bigger plans up its sleeve. The company is working towards developing full- fledged
IoT solutions in the automobile and home automation space.
5.5.8 Reliance Jio likely to earn revenue of INR 30,000 Crore during FY 2017-2018 Itself.
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1. Use large amount of cash and are leaders in the business so they should also generate
large amounts of cash.
2. Frequently roughly in balance on net cash flow. However if needed any attempt should
be made to hold share, because the rewards will be a cash cow if market share is kept.
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After announcement of “Jio preview offer” till 31st December 2016 and a month after its launch,
RJIL claimed that the network had 16 million subscribers, which, it said was a record.
Continuously, Jio has grown at scorching pace and never look back and it register 50 million
subscribers in 83 days later offer has been extended for another 3 months under “New Year
offer”.
Recently, RJIL started “Jio Prime offer” till 31 st March 2017 for their user under 99 Rupees to
get the benefit of free calls, SMS and 4g internet at lower rate. According to company report
72 million has subscribe their offer out of 100 million customers.
Based on 10 crore customers with the subscription of different plan company is looking to
generate revenue of 30,000 crores rupees in FY 2017-18 with the net profit around 10,000
crores.
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Objective
To understand telecom industries domain companies and customers
To understand impact of reliance Jio on its competitor.
To understand customer satisfaction level of reliance jio product, it’s services & it’s
market penetration.
To understand impact of Volte technology based Smartphone.
To understand the Strength, Weaknesses, Opportunities and Threats of the company
i.e. Reliance Jio Infocomm Ltd
To understand penetration of Smartphone & internet user in India.
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Conclusion
From the above details, I conclude that Reliance JIO will be going to become a very successful
brand in telecommunication sector & providing customer satisfaction is to be there main
motive. Reliance JIO possesses congestion free & wide network coverage, attractive 4G
schemes & customer services as well as lifetime roaming free services.
Currently company using fibre optic cable for 4G internet and broadband service. RJIL is the
only company which having presence of 4G service in all 22 circle which proved it as one of
the biggest telecom player since its start-up company. Company is looking to cover 80% area
through it service & looking to increase its customer base through providing different scheme
to its customer.
80% of Reliance JIO users preferred to remain with Reliance JIO and they satisfied with company’s
different offer and services. Reliance JIO is capturing the wide area of Indian markets increasingly day
by day. Hence, these statistics imply a bright future for the company. It can be said that in near future,
the company will be booming in the telecom industry.
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