e sensitive and loving the “free” goodies offered to them, this has been proved earlier

by Reliance with introduction of JIO and LYF brand of 4G enabled smartphones.

The current research papers is focusing upon the latest introduction from Reliance Industries “
Jio phone” a smart feature phone for the people who cannot afford high end smartphones it co
mes effectively “FREE” again as per the desire of the Indian market. This is a market penetrat
ion strategy to tap the untapped market of the people who are using feature phones but they de
sire to have or to use 4G data for their usage, this strategy will make them enable to use the 4
G data on their smart “Jio phone”.

Objective of the study

Objective is to analyze the current market scenario of telecom sector strategies mergers and m
arket penetration strategy in features phones market with Reliance Jio feature phone.

Sub objective of the study-

o To study the penetration strategy of Relaince jio feature phone in market.

o To study how it was able to count the competitor against the Reliance Jio phone.
o To study customer satisfaction level of Reliance JIO products &services.

Abstract
The launch of Jio is likely to transform the Indian telecom sector but at the same time put pres
sure on multiple fronts on the current telecom operator such as Bharti Airtel, Idea & Vodafon
e. The entrance of the Jio has brought a stormy revolution in the Telecom market and Jio has e
merged into a brand new world of innovations and up gradation. This article discusses the feat
ures of the jio and the edge it would have over its rivals once operational. The objective of thi
s research paper is to find whether the company will become a Star or will remain a question
mark.

Literature Review
 "A Study Report, to Find out Market Potential for 4G Businesses in Pune". The Report is all
about “Study of market potential for 4G business in pune” and also to know about the custom
er perceptions and attitudes towards their current service provider. Satisfaction level of the cu
stomers was also judged. The customer expectations were analyzed thoroughly. Major factors
considered in research are: what are the needs of the companies based on the data services usa
ge, Major Player in internet services, and support to customers. The research was conducted o
n companies mainly from Industries like IT, Education, Manufacturing and others which are l
ocated in Pune city. It is clear from the survey done that Reliance & Tata are Leading Internet
service Provider, they are providing products like Data Card, Broadband etc. to the corporate
end users. Most of the companies are getting internet speed form 1MBPS - 4MBPS. Most of t
he companies are having good perception about 4 G and are willing to switch to it from their c
urrent service provider. Speed of 4G is around than 30 to 35 MBPS, is going to boom the Mar
ket. Because majority of the companies are facing Speed problem with their current ISP.

4G spectrum is a research item for next-generation wide-area cellular radio, which focuses on
4G technologies. 4G networks and 4G systems. 4G technologies shall include three basic area
s of connectivity which are personal area networking (such as Bluetooth), local high-speed ac
cess points on the network such as wireless technologies and cellular connectivity.

At the moment, many companies have established projects for 4G system development 4G ca
n provide services for a wide range of speed facility that support global roaming and each co
mpany will be able to interact with internet-based information and available in every part of c
ountry.

INTRODUCTION TO THE PROBLEM

Even though the sector has reflected promising growth, the tele density in India still re
mains at a very low level compared with international standards and thus providing tremendo
us opportunity for future growth. In the medium-term the industry is expected to continue to r
ecord good subscriber growth as a result of low penetration levels, heightened competition; a
sustained fall in minimum subscription cost and tariff that increase affordability for lower-inc
ome rural users, expansion of coverage area by mobile operators, and government support thr
ough schemes such as the rural infrastructure roll out founded by subsidies from the Universal
Service Obligation (USO) Fund. The Indian telecom sector offers unprecedented opportunitie
s in various areas, such as rural telephony, 4G, virtual private network, value-added services,
etc. Nonetheless, the lack of telecom infrastructure in rural areas and falling ARPU of telecom
service providers could inhibit the future growth of the industry.
Rapidly Falling ARPU (Average revenue per user) The competitive intensity in the telecom in
dustry in India is one of the highest in the world and has lead to sustained fall in realization fo
r the service providers. Intense competitive pressure and cut throat pricing has resulted in decl
ining ARPUs. With increasing number of new entrants in the telecom space the competition i
ntensity is likely to continue, put further downward pressures on the telecom tariffs. Thus, the
telecom companies might have to grapple with further decline in ARPUs, going forward. Furt
her, with the telecom companies moving their focus to the rural areas for driving the future su
bscriber growth they might not witness a commensurate increase in revenues. In fact, the risk
of steep decline in ARPUs will increase going forward as the telecom companies penetrate rur
al markets that are characterized by higher concentration of low income, low-usage customers
. A higher-than-expected decline in ARPU poses a risk of reduction in margins of service pro
viders. Alternatively, telecom operators are turning their focus to steadily increasing the minut
es of usage to counter the sustained fall in ARPUs. Likewise, the growth of the VAS is also cr
ucial for some improvement in the ARPUs of operators.

Lack of Telecom Infrastructure

Lack of telecom infrastructure in semi-rural and rural areas could be one of the major
hindrances in tapping the huge rural potential market, going forward. The service providers ha
ve to incur a huge initial fixed cost to enter rural service areas. Further, as many rural areas in
India back basic infrastructure such as road and power, developing telecom infrastructure in t
hese areas involve greater logistical risks and also extend the time take n to roll out telecom se
rvices. The lack of trained personnel in the rural area to operate an infrastructure, especially p
assive infrastructure such as towers, is also seen as a hurdle for extending telecomm services t
o the under penetrated rural areas.

Rural Areas Continue to Remain under Penetrated a rural tele density of merely 15 % point to
wards the fact that a majority of Indian population still do not have access to telecom services.
The rural India seems to have remained untouched by the telecom revolution witnessed in the
last few years. A huge 'digital divide, which h is reflected by the enormous difference of 74
% between the urban and rural teledensity, reiterates this fact. However, with the urban marke
ts reaching a saturation point, the telecom service providers are penetrating rural areas for driv
ing future growth. Thus, the service providers entering new rural markets might witness subst
antial increase in subscriber base. The expansion in the rural areas, however, has increased the
risk of further decline in the ARPUs. Nonetheless the revenue growth from these regions is u
nlikely to match the surge in the subscriber base.

Excessive Competition
Another major concern that has come to the forefront in the recent past has been height
ened competitive intensity in the industry that has correspondingly fuelled the price war betwe
en industry payers. The Indian wireless market is one of the world's most competitive markets
, with 12 operators across 23 wireless circles and 6 to 8 competing operators in each circle. Th
e auction of new 4G licenses and the introduction of mobile number portability (MNP) are lik
ely to heat up competition in the industry, going forward. Spectrum is the most important reso
urce that is required for providing mobile services. Given that spectrum is a finite resource the
availability of the same would be inversely proportional to the number of operators. Thus, lar
ger the number of service providers smaller will be the amount of spectrum available to each
of them. Scarcity of spectrum leads to higher capex on deployment of mobile networks for the
operators as they need ore cell sites to improve service quality. Further the growing usage of
spectrum and the resultant scarcity may lead to re-use of spectrum and increase chances of co
ngestion in networks leading to constraints on service quality. Evidently. The competition in t
he industry is expected to intensify further with the entry of new payers, both domestic as well
as foreign players. With the competitive intensity of the industry already at such high levels n
ew operators might find it difficult to gather significant share in Indian telecom market. While
the new players may benefit from a faster network rollout through tower sharing, they will fa
ce challenges in terms of high subscriber acquisition n costs and lower ARPU customers.

Lower Broadband Penetration

The Indian economy remains highly underpenetrated in terms of broadband connectio
ns. High cost of devices (PC and laptop), high internet charges and lower wireline connection
s have been some of the major factors inhibiting broadband penetration Broadband is one of t
he key catalysts for economic development and major initiatives by both the government and
service providers are needed to increase its penetration.

Spectrum Allocation 4G Spectrum availability is one of the major concerns for the industry. L
ack of adequate spectrum which is the most integral part of the mobile telephony sector could
hamper its growth severely However, the spectrum allotment has been the most controversial
issues in the Indian telecom sector. The smooth process of scheduled 4G spectrum allocation i
s likely to be one of the key factors affecting the industry dynamics. Going forward. Given the
highly-competitive rapture of the Indian telecom industry on one hand, and limited licenses i
n the 4G network on the other, the risk of excessive biding by the service providers has increa
sed. Bidding, especially in some cricks, might render 4G services financially-unviable further,
there exists a risk of delay in allotment of proposed spectrum to the service providers who ha
ve successfully bid for the 4G spectrum.

Other Growth Inhabiting Factors

While the implementation of mobile number portability is likely to aid improvements in qualit
y of service, it’s also likely to increase the churn out ratio significantly. The service providers
are likely to turn to the VAS as a service differentiator however widespread VAS deployment
is restricted due to language and ill literacy. The deployment of 4G services is likely to help th
e emergence of new VAS. Mass acceptance will be crucial for the success of 4G services in In
dia. Comparatively higher cost of handsets required for accessing 40G services is likely to be
one of the major roadblocks in mass 4G adoption in India.

MARKET PENETRATION STRATEGY

A market penetration strategy seeks to increase market share of the current product or service
s in the existing market. This strategy adopted by the firms to raise their sales revenue without
making changes in the products or services. The other dimension of market penetration is the
existing market which means firm already offering products or services to the customer but c
an forecast that the existing sales figures can be improved by working on marketing penetrati
on strategy.

Market penetration strategy can be implemented by offering sales, Increasing sales for
ce, increase distribution and promotion of products, more expenditure in marketing and adver
tising activities will results in increasing sales. It is not guaranteed that market penetration full
y works after investing in sales and marketing of products and services, a firm should go for t
his strategy only if any below of the desirable situation exists.

 Current market is not fully saturated.

 Market share of the competitors are decreasing whereas the industry growth rate is
increasing.
 Existing buyers have the potential to purchase same products and services in more
quantity.
 When economies of scale provides competitive edge.
 All the above conditions gives green signal to the firm to go ahead with market
penetration strategy.

For e.g. Airtel promoting its services to penetrate in the Indian market.

Market penetration is one of the four alternative growth strategies in the Ansoff Matrix. A ma
rket penetration strategy involves focusing on selling your existing products or services into y
our existing markets to gain a higher market share. This is the first strategy most organization
s will consider because it carries the lowest amount of risk.
This strategy involves selling more to current customers and to new customers who can be tho
ught of as being in the same marketplace. For example, if your current customer base consists
of men aged between 16 and 25 then this strategy would involve attempting to sell more of yo
ur existing products or services to this same group. One key constraint is that you cannot allo
w anything in your drive to grow market share to compromise your existing success. You nee
d to be aware of what has made the product a success so far and ensure that nothing you do wi
ll undermine it. You should give this strategy careful consideration if you are not in a position
to invest heavily or are not comfortable with taking risks, as the amount of risk associated wit
h this strategy is relatively low.

There are four approaches you can adopt when implementing this strategy:

Maintain or increase the market share of current products you can achieve this by adopting a s
trategy that is made up of a combination of competitive pricing strategies, advertising, and sal
es promotion. This would involve focusing on the areas of sales and marketing responsible for
managing the pricing and promotion of the product.

Secure dominance of growth markets another approach you could take is identify a new demo
graphic for your product, for example another age group. An excellent example of such a strat
egy would be for you to identify a change in the age distribution of your product users and to t
hen aggressively market your product to this age group.

This was exactly what happened in the cell phone market when it was realized that teenagers
were emerging as a key demographic. Previously it had been users in their 20s who were seen
as the biggest group of first-time users. Substantial growth in market share and dominance in
this sector was achieved by ensuring cell phone companies' promotions met the needs of this
younger group.

Restructure a mature market by driving out competitors many organizations find themselves i
n a mature or saturated market and to achieve further market share requires a different approa
ch. This strategy requires an aggressive promotional campaign, supported by a pricing strateg
y designed to make the market unattractive for smaller competitors.

With a mature market there are no more demographic sectors to exploit and the only way to at
tain market share is to take it from competitors. Examples of this strategy can be seen in the n
ewspaper, telecoms, and cable TV industries, where the larger players now dominate. Another
good example is the rapid growth of the supermarket chains, which have taken market share f
rom small high street grocers who are unable to compete on price and product range. More rec
ently there has been the introduction of loyalty campaigns, where the supermarkets compete f
or market share through customer loyalty programs.

Increase usage by existing customers another approach to market penetration is to persuade yo

ur existing customers to use your product or service more frequently. There are several tactics
you could use to do this, including loyalty schemes, adding value to the current product, or m
aking alterations to the product that encourage greater use.

The tactics of this approach all aim to 'tie in' your customers to your product or service by ma
king it more difficult for them to move to another supplier. The ability of your organization to
achieve higher usage by customers can be greatly enhanced by rapidly changing technologies
that encourage users to upgrade or that offer more reasons to use the product or service. A go
od example of this would be cell phones: models are now upgraded every six to 12 months wi
th the addition of new features and capabilities.
For a successful market penetration strategy relies on detailed knowledge of the market and c
ompetitor activities. It relies on you having successful products in a market that you already k
now well. For a successful market penetration strategy a company requires detail of market in
formation about the customers, their preferences, liking disliking, competitor’s strengths and
weakness and the flow of market with technological changes.

INDIAN TELECOM MARKET

India is currently the world’s second-largest telecommunications market with a subscriber bas
e of 1.05 billion and has registered strong growth in the past decade and half. The Indian mobi
le economy is growing rapidly and will contribute substantially to India’s Gross Domestic Pro
duct (GDP), according to report prepared by GSM Association (GSMA) in collaboration with
the Boston Consulting Group (BCG). The country is the fourth largest app economy in the wo
rld.

The liberal and reformist policies of the Government of India have been instrumental along wi
th strong consumer demand in the rapid growth in the Indian telecom sector. The government
has enabled easy market access to telecom equipment and a fair and proactive regulatory fram
ework that has ensured availability of telecom services to consumer at affordable prices. The
deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest
growing and a top five employment opportunity generator in the country.

The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by India. The employment opportunities are expected t
o be created due to combination of government’s efforts to increase penetration in rural areas
and the rapid increase in smartphone sales and rising internet usage.

International Data Corporation (IDC) predicts India to overtake US as the second-largest smar
tphone market globally by 2017 and to maintain high growth rate over the next few years as p
eople switch to smartphones and gradually upgrade to 4G.
 Market Size
The mobile industry is expected to create a total economic value of Rs 14 trillion (US$ 217.37
billion) by the year 2020. It would generate around 3 million direct job opportunities and 2 m
illion indirect jobs during this period. The total number of telephone subscribers in the countr
y rose by 11.13 per cent year-on-year to 1,151.78 million in the September-December quarter
of 2016. According to a report by leading research firm Market Research Store, the Indian tele
communication services market will likely grow by 10.3 per cent year-on-year to reach US$ 1
03.9 billion by 2020.

The revenue of mobile handset industry rose 22 per cent to Rs 1.36 trillion (US$ 21.12 billion
) in 2016. In 2017, around 200 million mobile handsets will be made out of India out of the 27
0 million mobile handsets to be shipped.

According to the Ericsson Mobility Report India, smartphone subscriptions in India is expecte
d to increase four-fold to 810 million users by 2021, while the total smartphone traffic is expe
cted to grow seventeen-fold to 4.2 Exabytes (EB) per month by 2021.

According to a study by GSMA, smartphones are expected to account for two out of every thr
ee mobile connections globally by 2020 making India the fourth largest smartphone market. I
ndia is expected to lead in the growth of smartphone adoption globally with an estimated net a
ddition of 350 million by year2020. Total number of smartphone shipments in India stood at 2
5.8 million units in the quarter ending December 2016, and smartphone shipments during 201
6 stood at 109.1 million units, up by 5.2 per cent year-on-year. Broadband services user-base i
n India is expected to grow to 250 million connections by 2017.

Investment
With daily increasing subscriber base, there have been a lot of investments and developments
in the sector. The industry has attracted FDI worth US$ 23.95 billion during the period April
2000 to March 2017, according to the data released by Department of Industrial Policy and Pr
omotion (DIPP).

Some of the major developments in the recent past are:

 Reliance Industries Limited plans to invest an additional sum of Rs 18,000 crore

(US$ 2.79 billion) during April-June 2017 on its telecom arm, Reliance Jio, to expand
its fiber network, thereby raising the total amount invested in the business to more
than Rs 1.9 trillion (US$ 29.50 billion).
 Nettle Infrastructure Investment Ltd, a wholly-owned subsidiary of Bharti Airtel, plans
to acquire 21.63 per cent stake in Bharti Infratel Ltd. for an estimated sum of Rs
12,400 crore (US$ 1.93 billion).

 Bharti Airtel Ltd, India's largest telecom operator, has decided to buy Tikona Digital
Networks Pvt Ltd.’s 4G business for approximately Rs 1,600 crore (US$ 248.43
 million), which includes its broadband wireless access spectrum as well as 350 cellular
sites in five telecom circles.
 Bharti Airtel will buy Telenor's India operations in seven circles to receive 43.5
megahertz (MHz) spectrum in the 1800 MHz band.
 Apple plans to produce iPhone SE at an upcoming facility in Bengaluru, owned by its
partner Wistron.
 Ortel Communications, Odisha’s largest multi-system operator, plans to invest around
Rs 300 crore (US$ 45 million) over the next two years, for upgrading its infrastructure,
along with strengthening its reach, efficiency and competitiveness in the market.
 Reliance Communications Limited (RCom) has signed a binding agreement with
Brookfield Infrastructure Partners to sell a 51 per cent stake in Reliance Infratel,
RCom’s tower unit, for Rs 11,000 crore (US$ 1.65 billion).
 Private equity giant KKR & Co LP and pension giant Canada Pension Plan Investment
Board (CPPIB) are in talks to acquire a significant stake in Bharti Infratel, which is
expected at around US$ 4 billion.
 Chinese smartphone manufacturers, Oppo and Vivo, have both planned to invest in
setting up large scale manufacturing capacity in the state of Uttar Pradesh in India,
with an aggregate investment size of Rs 4,000 crore (US$ 600 million).

Government Initiatives
The government has fast-tracked reforms in the telecom sector and continues to be proactive i
n providing room for growth for telecom companies. Some of the other major initiatives taken
by the government are as follows:

 The Telecom Regulatory Authority of India (TRAI) focuses on identifying issues that
make it difficult to do telecom business in India like license acquisition and spectrum
allotment among others, and review them in order to simply these processes to the
maximum possible extent.
 The Government of India plans to auction the 5G spectrum in bands like 3,300 MHz
and 3,400 MHz to promote initiatives like Internet of Things (IoT), machine-to-
machine communications, instant high definition video transfer as well as its Smart
Cities initiative.
 The Government of India has launched a phased manufacturing programme (PMP)
aimed at adding more smartphone components under the Make in India initiative
thereby giving a push to the domestic manufacturing of mobile handsets.

Topic
Customer satisfaction towards reliance jio.
Research objective
 To study on customer satisfaction towards reliance jio.
 To know most preferred service in jio.

Research approach
To achieve the objective, we have conducted a survey and then collected data and analyzed it
and lastly find out the methods the needed results.

Data collection
 Primary data sources
 Secondary sources

Primary data sources- primary data can be collected through the questionnaire. Which cont
ain the different question to measure the customer’s perception after affecting, primary data s
ources are very helpful for research.

Secondary data sources- secondary data can be collected through books, magazines, news
papers, internet and other sources. I have collected the information about various offered by th
rough internet and used books to understand the overall research process.

Research Methodology
Research design:
The purpose of the methodology is to design the research procedure. This include the overall
design, the sampling procedure, and the data collection method and analysis procedure. Marke
ting research is the systematic gathering recoding and analysis of data about problem retaining
to the marketing of goods and services.

The essential purpose of the marketing research is to provide information, which will facilitat
e the identification of an opportunity of problem situation and to assist manager in arriving at
the best possible decisions when such situations are encountered.

Basically there are two types of research, which according to their applicability, strength, wea
kness and requirements used before selecting proper type of research, their suitability must be
seen with respect to a specific problem two general types of researches are exploratory and co
nclusive.

Conclusive research-
It is also known as quantitative research, it is design to help executives of action that is to mak
e decisions.
When a marketing executives make a decision are course of action is being selected from amo
ng a number of available. The alternatives may be as few as two or virtually infinite. They ma
y be well defined or only vaguely glimpsed.

Conclusive research provides information, which help the executives make a rational decision
. In some. Instances, particularly if any experiment is run, the research may come close to spe
cifying the precise alternatives to choose, in their cases especially with descriptive studies the
research will only particularly clarify the situation and much will be left to the executive’s jud
gments.

FINDINGS
Below are some of major findings, I came across during my survey.

 While conducting the survey, I found out that 85 % respondents are satisfied with
Reliance J10 services and 15% of respondents are not satisfied. The reason being they
are still facing problems of call drops and low network, some of them did say that after
April 1 they might consider using it.
 Reliance JIO has successfully captured its market in Kadi areas well.
 Most of the users are using dual sim phones and hence they are using it as a secondary
service as they do not want to change their old numbers.
 Customers are satisfied the 4G unlimited services as comparison to others services.
 Reliance JIO is expected to grow bigger thereby taking over Bharti Airtel which
currently has a 33.1% of market share whereas the latter is looking to gain over 50%.
 Reliance JIO Wifi router which is highly appreciated by the users.
 The competition among other mobiles Samsung, Redmi, Apple are high. LYF handsets
are used as a secondary phone by some users.

Limitation-
1. Some of the response from customer were not valid enough which resulted in
repetition of the answers.
2. Customer’s behavior were unpredictable which may results in lack of accuracy in the
data.

CONCLUSION
Reliance JIO has become a very successful brand in India & providing customer satisfaction i
s one of their primary motives. It provides unlimited free calling and data services & SMS on
the move as people are more dependent on it in their daily lives like wide network coverage a
nd good 4G services. Because 3G services was unable to meet out customer needs and wants.
That's why 4G has been evolved for Indian customers.

Reliance JIO possesses congestion free & wide network coverage, attractive 4G schemes & c
ustomer services as well as lifetime roaming free services.

Providing customer satisfaction is the most crucial step of the company as they are to be satis
fied and provides Internet access on the move such as Wide network coverage and good 4G se
rvices as they are important and technology advanced stuff required by almost everybody in t
oday's environment.

Reliance JIO is currently the most emerging brand in India and will be successful in overseas
market in upcoming years. It possesses congestion free & wide network, attractive 4G scheme
s & customer services to cover one of the widest areas JIO is capturing the wide area of India
n markets increasingly day by day. Hence these statistics imply a bright future for the compan
y. The time is not far when RJIO will start 5G in India with a similar schemes.

Questionnaire
1. What is your average monthly expenditures on mobile (in Rs.)
o 0-50
o 50-100
o 100-500
o Above 500
2. What is the average number of outgoing calls per day?
o 1-5
o 5-10
o 10-20
o Above 20

3. What is the average no.of SMS sent by you per day?

o 1-5
o 5-10
o 10-20
o Above 20

4. Are you aware about the value added services such as caller tunes, ringtones,
wallpaper, crickets, astrology, missed call alerts etc.?
o Yes
o No

5. Which of these is your favorite features?

o Camera
o Internet browsers
o Gaming
o Text message

6. Do you consider this feature to be an important part of mobile phones?

o Yes wouldn't buy it without this feature.
o Yes it is rather important.
o No it is not really important.
o No it is not important at all.

7. Do you own a second mobile phone?

o Yes
o No

8. Why do you own a second mobile phone?

o For business purpose
 o For same purpose/features
o Others (please specify)

9. What is your primary purpose for for using internet on your mobile phone?
o To browse www
o To read news
o To read/send e-mails
o To use online applications

10. Buying a new mobile phone for you is important?

o Main functions (making calls, SMS, MMS)
o Specific functions (camera, mp3 player)
o External appearance
o Emotional satisfaction

11. Have you ever thought about negative effects of mobile phones?
o Yes
o No

12. You use your mobile phone to?

o Call
o SMS
o Internet
o MMS