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Reliance Jio or Vodafone: Put India in Digital world with the 4P’s of Marketing

2291 words (9 pages) Business Assignment

23rd Nov 2020 Business Assignment Reference this

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Introduction

For all your efforts, marketing leads to you for a success. This is a real story of Asia’s number one business man Mukesh Ambani and his skills for JIO telecom services. Reliance Company put India in digital world with the great achievement of its product Reliance Jio sim card. Reliance is a successful company comparing to all other companies in India. Which is established in 1960 as Reliance Commercial Corporation by Dhirubhai Ambani and champaklal Damani. Main headquarters of Reliance is in Mumbai (Maharashtra).Reliance has many product but it got a great success because of Jio. Marketing strategy of Reliance Company is unique comparing to others. Mukesh Ambani told that when his daughter was going to outside from school, she faced up the problem of losing the network and that time she gave an idea to her father and how the JIO build. According to him JIO has unique logo for the market and this gave good profit to JIO. They only think about Consumer and customer‘s need with low price as well as they use main 4p’s of marketing in a good way. 

Definitions

According to Oxford 4p’s definition, “A combination of factors that can be controlled by a company to influence consumers to purchase its products.” According to marketing main 4p’s are 1) Price 2) place 3) promotional 4) product. Furthermore the definition of price is, “an amount of money expected, required, or given in payment for something. Where as place is a particular position, point, or area in space; a location. Third one is promotional which is define as Relating to the publicizing of a product, organization, or venture so as to increase sales or public awareness. Additionally, “An article or substance that is manufactured or refined for sale is called a product.

  • Background

After the death of Dhirubhai  Ambani reliance was handling by Mukesh Ambani who became a richest man with its unique strategy of marketing like BCG as well as focus on market analysis and they have good product, best skill of promoting, also a  less price. In India, Reliance is one of the biggest companies which has many products like mobile phones, Reliance mart, Reliance Home kitchen, Reliance Market, Sim Cards. Consumers need is the first priority for them. Promoting is the best part of their marketing strategy because they don’t spend lots of money on it they just reduce their amount of product and attract the people. Company always try to do some program to connect with people also they try to do ATL and BTL advertise as it less costly. “Karlo Duniya mutthi me” is the one of the best example of it. Advertise is launched by company on magazine, newspaper, television, billboards, radio and on social Media like Facebook, Instagram.

  • Policy of marketing

Marketing is the essential requirement for the business in which main policy should be the customer satisfaction in which price plays important role for the successful business. If your product meets the customer at right place then it will be beneficial to your business.IN marketing promotion plays major role because today social media is the platform where customer and service provider meets and they can know each other so that this platform is useful to attract the customers. Today the biggest benefit of promotion is that you not need to search and visit for customer review and you can get every feedback and from the feedback of customers of social media you can get every little information of customers. Sometimes social media and magazines play role like sales man because of we can sale our products through social media. That’s why in business strategy everyone says that your marketing skills decide your business performance. When this skills are utilized, business start to grow. And Ambani is the king in this business strategy.

Role of other companies in telecommunication

Indian telecom market has billions of customers. In India there are many consumer of Vodafone, Idea and airtel. Which have a costly data plan as well as 2G,3G speed but because of it has high rate nobody prefer to use this sim cards.  So, generally internet was not assessed by more people. Also they use only 3G spectrum but after launching a Jio 4G they upgrade their Sim into 4G spectrum. Jio 4G was launched in 2016. After that Jio became a very popular sim cards among all companies because there are some restrict on otherwise company like  Vodafone 4G spectrum is only present in nine circle in 700MHz as well as idea spectrum is present in 10 circles out of 22. On the other hand Jio 4G spectrum is present in 18 circles in 800MHz with the low price. So that stock price of idea was fall down by 41.4℅.At that time The BSE gained by 8.61%.Bank of America says that,” it would lead to Jio getting more aggressive to gain traction but at the cost of impacting industry profitability,"(Merrill Lynch September 1 report).Jio only use in 4G phones so India has received shipments of over 300 million smartphones since 2011. Two, calls on Jio network are based on new Voice over LTE (VoLTE) technology, which converts voice to data packets. Jio is the first Indian operator to use VoLTE. Just like any new technology, there will be hiccups initially, which could slow the churn of users. 

Prepaid, posted and vas are offered by Vodafone which are the main products and main marketing strategy in Vodafone marketing mix. Many type of communications  are provide by Vodafone such as smart phones, branded  phones, messages, internet service,  voice calls, Headset. Most of people are using Vodafone for calls and messages. According to Vodafone’s data plane, it provides high speed but it has Costly plans. So, in India all most people do not use Vodafone’s internet. According to the TRAI report there was a network problem and Indian customer were struggling for their mobile networks in remote areas. And it was the time when every country was trying to get high speed networks and India was still struggling for getting the network and it was also the reason that India was legging in the digital world. They were used the 3G and 2G both networks but the speed was very slow like 2G. If you have not nothing new to survive in the market of competition and if you cannot provides what customer needs then you can’t connect with the customers. All the3 companies try to give challenge to JIO and for that they start negative marketing of JIO too but services and prices of JIO is so attractive that they cannot lead the market.

  • Where the JIO defeat the Vodafone!!

There is two side of each coin and like that there is advantages and disadvantages for every companies. JIO put their customers in 4G only so that there is limitation for the customers who lives in villages and still not use multi branded smart phones.

Having only 4G capabilities and not 2G or 3G capability JIO faced up some problems but there was a problem for short time only. Ambani brought new marketing strategy by launching JIO phone which can afford by all the people and they can use the 4G network speed in that!! JIO uses a technology called VoLTE where the voice is transmitted over the 4G network. JIO is the single largest network which defeats the AIRTEL first and now JIO is running with the IDEA and VODAFONE combination.

The major attraction of JIO is the cheap prices only. In the earlier decade Indian consumer have struggled for their recharge money due to high incoming and outgoing rates but after the arrival of JIO, Indian telecom services played important role to change the customer mood.

After 2017, JIO was the only service provider which is available to almost 99% location in all over the INDIA. To compete with JIO other service providers start to increase their networks in the rural regions but still JIO is on the top of the graph.

Before the JIO came Indian customer were facing the problem like they can’t access to the internet in the remote area or at school or at home while they are in the villages. Ambani had a strategy to reduce this problems and that was a grant surprise which consumers got because users got the high access network in less afford price. In the recent time JIO proves that JIO can’t be defeated by single telecom industry because there was a merger of Vodafone and IDEA group. They both are struggling to challenge the JIO network but how can they??

Because JIO has multiple advantages over other networks.

  • JIO has the stronger fiber network which can compete all other networks in the transmission line. And Ambani has a private network which is very large in the Indian market. Where the Vodafone and idea are still depend on each other network.
  • JIO is the high profit service providers so that we can say that JIO is economically strong and so that this is benefited for the consumers too because JIO is providing 4G services in the rate of 3G services. JIO stool the consumer heart because of its video streaming services and jio cinema services and may more services that consumer cant afforded in other networks. But some service providers.
  • Vodafone and its supporting company IDEA have limited spectrum circles. According to report VODAFONE use 5 MHZ spectrum while JIO use 20MHZ spectrum. You can see that this is a major difference in the service providers and this affect the networks!!
  • If you provides the quality then customer will not running behind the quantity. Ambani has a skill to provide quality with a cheap price where all people can afford and this becomes the strategy.
  • JIO gives high efforts in the promotions too. JIO was the franchisee for Mumbai Indians and according to television rating IPL was seen by almost 80 % Indians so that this marketing skill also leads the JIO to the top rank.
  • According to one report there were customers who switching their networks from one service provider to another. In short many customer switch Vodafone to JIO. This makes negative marks in the market and so that JIO takes this advantage and promote his strategy with all customers.
  • As there is a large number of consumers JIO take note of it and according to consumer demand JIO started number of service stations too. This also gives positive feedback among the users. Consumers can get help in very short time and with a single step at a nearest store. This customer friendly environment product of JIO leads the market fast.
  • JIO supports Pokémon go game and for that reliance JIO became sponsored for poke stops and also gyms in reliance trends and reliance digital. And if you have promoter like shahrukh khan the known face of Indian film industry then you can lead the market.
  • By knowing customer high demand JIO Wi-Fi is also start in low prices so that people can use internet anywhere any time. So that we can say that JIO is not single brand with single product. They cross the market in every field of internet.

CONCLUSION:

Many telecommunication companies got the license in India but recent decade has name called JIO standing first in the graph of success and credit goes to the marketing skill of Mukesh Ambani and his skill of identifying customer’s needs!! And when your product meets the customer price, it will run the market!!

JIO put high efforts in every p like price, place, product and promotions. When your marketing strategy is strong with good product and price, you can definitely got the best feedback from the customers. And INDIA was the place where there was a need for network like JIO and Ambani jump with JIO to compete with other service providers. And this is a result of JIO’S success….  

REFERENCES

  1. Jignesh P.  (2019) what are all strategies that use Mukesh Ambani Accessed from: Quora - A Place to Share Knowledge and Better Understand the World. https://www.quora.com/. Accessed on  28 oct. 2019.
  2. Kalyan p. (2019) “Business News Live, Share Market News - Read Latest Finance News, IPO, Mutual Funds News.” The Economic Times, Accessed from: https://m.economictimes.com. Accessed on 29 Oct. 2019.
  3. New Delhi(2018),  Accessed from: 5 reasons why Jio data pans are better than Airtel, voda, or idea https://www.indiatoday.in/technology/features/story/5-reasons-why-jio-data-plans-are-better-than-airtel-voda-or-idea-1406382-2018-12-10

Accessed on 29 Oct.2019

  1. Hitesh B. (2019), Accessed from: Marketing Mix of Reliance Jio-Reliance Jio Marketing Mix  https://www.marketing91.com/marketing-mix-reliance-jio/ accessed on 29 Oct. 2019
  2. Jio 4G LTE Network - Experience High Speed 4G Mobile Internet ! https://www.jio.com/. Accessed 18 Nov. 2019.
  3. Suajeet G.(2018) Accessed from: Reliance Jio factor in telecom: Challenging incumbents, changing goalposts, https://www.business-standard.com/article/companies/how-mukesh-ambani-s-rjio-is-challenging-and-changing-goalposts-of-telcos-118050101092_1.html accessed on : 18 Nov. 2019

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