A Case Study

On
“Challenges Faced by Jio”

Case Study Submitted To

Balaji Institute of Modern Management (BIMM)

Pune

In
Partial Fulfilment of the PGDM (Sales and Marketing)
Curriculum
For Academic Year 2016-2018

By
Arpit Shrivastava
(BIMM-1618320)
 Declaration
I, Arpit Shrivastava, Student of BIMM – Balaji Institute of Modern
Management, Pune, Hereby declare that this case study entitled as
“Challenges Faced by Jio”, is a bonafide record of work done by me
during the course of summer internship project work of PGDM program
and all contents and facts are prepared and presented by me without any
bias.

I also declare that it has not previously formed the basis for the award to
me for any degree/diploma associate ship, fellowship or other similar
title, of any Institute/Society.

Place: Indore
Date: 30th June 2017
Table of Contents
S no. Topic Page No

1 Executive Summary

2 Introduction

3 Overview
4 Case

5 Analysis of the case

6 Status

Annexure
Executive Summary:

The case is about how Reliance Jio Infocomm Limited (Jio) has
emerged as one of the leading telecom networks in India. Jio has
captured a large market chunk and achieved numbers that took the
competition over a decade to achieve. Jio was launched in support
of digital india mission of prime minister Narendra Modi. Jio helped
in making mobile data a necessity than a premium product. Jio not
only transformed the telecom market but helped in decreasing the
gap between urban and rural india teledensity. Main challenges
faced by jio in the Indian market is lack of awareness and
promotion on features of jio like jio applications, free roaming, no
cost on data pack finishing, free hello tune. Jio always talk about
the pricing part and never talks about product to the customers.
Where competitors are talking features, network strength, Internet
speed. jio need to think about its promotion and communication
content. Competition in telecom industry is growing so what
changes should jio make in its communication to the customers?
Jio has managed to get 100 million of subscribers within 170 days.
Most of jio subscribers uses jio connection as their secondary
operator. Which is a reason for concern for jio as jio need to make
sure that customers can be converted to primary users. The main
reasons for not using jio as primary number where lack of
awareness and knowledge about the Mobile number portability
feature as most of the previous customers don’t want to change it.
Many of the competitors provide vanity number to there customers.
introduction:
The case is about how Reliance Jio Infocomm Limited (Jio). Jio has
emerged as one of the leading telecom networks in India. . Jio has
captured a large market chunk and achieved numbers that took the
competition over a decade to achieve. It is India’s only network
which is solely 4G and its USP is the free services that it offers. The
company adopted a predatory pricing strategy to enter the Indian
telecom market and offered free voice, data, and message services
in the name of its “Welcome Offer” from September 5, 2016, to up
to December 31, 2016. Later, the offer was extended up to March
31, 2017, as the Happy New Year Offer. Reliance’s move disrupted
the competition in the Indian telecom sector and major competitors
like Airtel, Idea, and Vodafone were facing huge losses and framing
defense strategies to sustain their market share. They were forced
to resort to lowering their tariffs with an eye on retaining
customers. They also tried to block Jio sales by submitting petitions
to the Indian Government and TRAI against the offers of Jio.

Jio has captured a large chunk of market but maximum of their

customer’s uses there services as secondary connection. jio is
preferred by customers for its cost and data services but most of
the customers uses it only for data services not for calling purpose ,
after providing free calling services from jio. Customers are using
other operator as there primary number for calling purpose. This
case study is about to find out the reasons why people are using jio
as secondary connection and the strategy jio can use to transform
from a secondary operator to primary operator. Jio is providing
bundle of applications with connection but customers are not aware
about the same. This case is for the period after the ending of free
services offered by jio. Jio now is going to charge customers for its
services.
Digital India is a campaign launched by the Government of India to ensure
that, Government services are made available to citizens electronically by
improved online infrastructure and by increasing Internet connectivity or by
making the country digitally empowered in the field of technology. The
initiative includes plans to connect rural areas with high-speed internet
networks. Digital India consists of three core components, (a) development of
secure and stable digital infrastructure, (b) delivering government services
digitally, and (c) universal digital literacy.

Launched on 1 July 2015 by Prime Minister Narendra Modi, it is both enabler

and beneficiary of other key Government of India schemes.

Documents and enables the sharing of verified electronic documents Some of

the facilities which will be provided through this initiative are Digital Locker, e-
education, e-health, e-sign and national scholarship portal. As the part of
Digital India, Indian government planned to launch Botnet cleaning centers.

National e-Governance Plan aimed at bringing all the front-end government

services online.

MyGov.in is a platform to share inputs and ideas on matters of policy and

governance. It is a platform for citizen engagement in governance, through a
"Discuss", "Do" and "Disseminate" approach.

UMANG (Unified Mobile Application for New-age Governance) is a

Government of India all-in-one single unified secure multi-channel multi-
platform multi-lingual multi-service freeware mobile app for accessing over
1,200 central and state government services in multiple Indian languages over
Android, iOS, Windows and USSD (feature phone) devices, including services
such as AADHAR, DigiLocker, Bharat Bill Payment System, PAN, EPFO
services, PMKVY services, AICTE, CBSE, tax and fee or utilities bills
payments, education, job search, tax, business, health, agriculture, travel,
Indian railway tickets bookings, birth certificates, e-District, e-Panchayat,
police clearance, passport, other utility services from private companies and
much more.
eSign framework allows citizens to digitally sign a document online using
Aadhaar authentication.

Swachh Bharat Mission (SBM) Mobile app is being used by people and
Government organisations for achieving the goals of Swachh Bharat Mission.

eHospital application provides important services such as online

registration, payment of fees and appointment, online diagnostic reports,
enquiring availability of blood online etc.

National Scholarship Portal is a one step solution for end to end scholarship
process right from submission of student application, verification, sanction and
disbursal to end beneficiary for all the scholarships provided by the
Government of India.

Digital attendence: The "attendance.gov.in" is a website, launched by PM

Narendra Modi on 1 July 2015 to keep a record of the attendance of
Government employees on a real-time basis. This initiative started with
implementation of a common Biometric Attendance System (BAS) in the
central government offices located in Delhi.

Blackmoney eradication: The 2016 Union budget of India announced 11

technology initiatives including the use of data analytics to nab tax evaders,
creating a substantial opportunity for IT companies to build out the systems
that will be required. Digital Literacy mission will cover six crore rural
households. It is planned to connect 550 farmer markets in the country
through the use of technology.

Facilities to digitally empower citizen

Digital Locker facility will help citizens to digitally store their important
documents like PAN card, passport, mark sheets and degree certificates.
Digital Locker will provide secure access to Government issued documents. It
uses authenticity services provided by Aadhaar. It is aimed at eliminating the
use of physical across government agencies. Three key stakeholders of
DigiLocker are Citizen, Issuer and requester.
BPO and job growth: The government is planning to create 28,000 seats of
BPOs in various states and set up at least one Common Service Centre in
each of the gram panchayats in the state.

e-Sampark Vernacular email service: Out of 10% English speaking Indians,

only 2% reside in rural areas. Rest everyone depends on their vernacular
language for all living their lives. However, as of now, email addresses can
only be created in English language. To connect rural India with the Digital
India, the Government of India impelled email services provider giants
including Gmail, office and Rediff to provide the email address in regional
Languages. An Indian based company, Data Xgen Technologies Pvt Ltd, has
launched world’s first free linguistic email address under the name
‘DATAMAIL’ which allows creating email ids in 8 Indian languages, English;
and 3 foreign languages – Arabic, Russian and Chinese. Over the period of
time the email service will be offering in 22 languages by Data XGen
Technologies.

The Government of India has been talking about Digital India for sometime
now. And when it comes to execution, there’s always a grey area. And that is
typically attributed to choppy infrastructure. We’ve seen debates around call
drops and sloppy Internet speeds. Ambani said, ‘India is ranked 155th in the
world for mobile broadband Internet access, out of 230 countries.’ He added
that Jio is conceived to change this. He said, ‘with the launch of Jio, India’s
rank will go up to among the top ten. 1.2 Billion Indians cannot be left behind
as the world enters a new era.’
Overview:
Jio is a revolution in telecom business. Jio was introduced on 5 September
2016 it changed the old practices followed by telecom operators. Customers
where charged for calls, data and value added services. Telecom companies
revenue where high with high revenue per customer. Customers were paying
for calling services on roaming as well. They use to use data services which
were limited to few customers that also with average od 1-2 gb per customer
per month for rest of the customers it was not possible to afford it. The major
market of telecom in India was with Airtel, Idea , Vodafone , BSNL they all
were having similar type of plans for there customer where they were having
separate calling and data packages according to need of people. To establish
voice calls, networks route the call through a circuit-switched component
network. Similarly, data is routed through a packet-switched component. As
networks evolved from 1G to 2G, then 3G and 4G, the data component kept
increasing and networks became increasingly packet switched. Data was
ruling the way we communicated. In fact, it impacted the way we had
conversations. What used to be phone calls, turned to Facetime and Skype
conversations. Text messages, which used to be boring text, turned to
emoticons and video with WhatsApp and Facebook Messenger and
Hangouts. The market for smart phone was growing in India jio used this
opportunity to come with a new business model for telecom market where
customers would be charged on only data usage and the calling and
additional services would be free with it. In initial stages of launch of jio
offered its services for free as a trial to customers till December 2016 which
was later extended to march 2017. Jio provided customers with data
packages of 1gb/day, 2gb/day, and 3gb/day. Jio provided free calling through
the country with no roaming charges, as jio was the second operator after
BSNL to be present in all the circles of India. Jio holds spectrum in 1800 MHz
(across 22 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.
Jio provided range of application for customers with there data packs to
customers which help to increase digitalization in india.
jio tv app lets you watch Live TV as well as programs from the last seven
days. The app claims to provide instant access to more than 350 channels in
more than 15 channels. The content can only be watched on a smartphone or
tablet.
Jio Chat app is Jio's substitute to other instant messaging apps like Whats
App and Messenger.
Jio Cinema this app is an on demand video library. The app boasts of offering
over 1-lakh hours of movies, TV Shows, music videos, Jio shorts and trailers.
Jio Music app is a music streaming and downloading service, which provides
HD Music exclusively to Jio Sim card users. Jio Mags app is exclusively
available for Jio SIM card users. The app lets you browse through various top
magazines published within the country.
Jio Xpress News app is a news aggregator providing access to numerous
News publications, Magazines, famous Blogs and websites of renowned
thinkers and journalists from both India and across the world.
Jio Money The next big things in India, after demonetization, are digital
wallets. Jio Money is new entrant in this field but aims high with the service as
they recently launched a merchant application to cater the surge in demand of
cashless alternatives to paper currency.
Jio Security The anti-virus app is powered by Norton Mobile Insights to protect
the data on your smartphones and other devices. The app is capable of
scanning websites and downloaded applications and stops them from hacking
or stealing information from your devices.
Jio News Paper The app is exclusively available to Jio customers. It provides
a collection of a variety of newspapers in more than ten Indian languages.
jio provides a Jiofi device for Rs 1999 which can be used by people willing to
use 4G services on there 3G or 2G handset.S
Case:
Jio has helped to achieve the digitalization in India by helping to increase the
penetration of telecom in the rural India. Jio has not only increased the
Internet usage but also helped in reducing the gap between the urban and
rural India.
According to article published in economic times:
The number of mobile internet users in India is estimated to reach around 420
million by June 2017 with the rural India growing at a much higher rate than
urban India says a published by Internet and Mobile Association of India
(IAMAI) & market research firm IMRB. According to a report titled Mobile
Internet in India 2016, there were 389 million mobile internet users in India as
on December 2016.

"Urban India, with 51% penetration is fast reaching saturation point while rural
India with 16% is the future market of growth," said the report. It added that
number of Internet users has registered a jump of 15% year on year between
October 2015 to October 2016. While Urban India grew at 9%, growth in rural
India was almost three times at 26%.
The report also noted that average monthly bill for people Urban India reveals
that the usage of mobile data as proportion of total monthly mobile bill has
increased considerably to surpass component of voice services. In just over 5
years, data component has risen from being 45% of total bill to being 65% of
total bill.
Jio has provided a platform for connecting India digitally by providing data
services at low cost so that it is affordable. Jio has made it possible for
common people to be connected to each other and be informed of about the
world. Jio was able to reach 100 million customers in just 170 days.
Jio was selected as their operator mainly due to value for money, free
roaming nationwide, and attractive offer and plan by jio. There were some
challenges faced by jio in India. Jio is used as a secondary sim by About 82
per cent customers use Reliance Jio as secondary SIM: Study by velocity
market research. Which is a thing of concern of jio as majority of their
customers are using jio services as there secondary sim card, which leads to
think that’s why customers are not willing to use jio as primary sim. Jio
marketing strategy helped them in getting a large market share of the telecom
market in India most of the customers joined jio network for trial basis for data
but now jio need to make sure that these customers are retained by the jio
and use their services on primary basis. Customers are willing to use
competitors like Airtel, BSNL, Idea and Vodafone as their primary number.
They don’t want to change there mobile number which they are using from
past. Jio provides free mobile number portability to the customers but the
customers are not aware of it. There is only one clause that your sim should
be activated with previous operator for at least 90 days. Due to lack of
awareness of MNP procedure and clauses competitors use this as a tool to
restrict customers to switch their network to Jio. Jio competitors provide
subscribers to choose there choice of telecom number but jio has a procedure
of generating random mobile number from system. This system has made jio
to loose customers as well as revenue for jio. Competitors charge a premium
for this providing choice of number to the customers, which result in revenue
as well as customer satisfaction.

jio customers are not aware of the features provided by there network. Most of
the customers are not aware of the video-calling feature provided by jio to
have video call to another jio customer. The new era of calling is coming
where people are shifting from calling to video calling in that time this feature
can be used a pod by jio.
Jio never charges on data pack finishing. Telecom operators used to charge
per kb basis on the finishing of data packages which used to hurt the
customers on there main telecom balance but jio reduces speed on finishing
of data.
Jio applications like jio tv which has made possible to bring live television on
our handset and made it possible to watch recording of our favorite show on
our wish with recording. Jio news provides update and latest news around the
world on our phone. jio cinema provide library of movies, serials to watch on
our will. There are more application like jio mags for magazine , jio security to
provide security to your phone and data , jio music for music, jio chat a
messenger from jio. These application provide features which are being used
or essential for mobile users now days as most of the data users like to watch
or stream live matches on there mobile phones, watch recording of there
favorite show. Get the update from the world through news. These
applications can be a great way to attract customers or retain customers.
Jio provides free jio tune feature where caller can select ant tune as a ring
tone to the caller for free. Charged by there competitors on monthly basis.
jio has faced a major challenge due to no choice of mobile number given to
customer. Jio advertisement are mostly about the pricing factor of there
product.
Network connection and data speed are the two main features for any
operator for selecting a operator by a customer. Airtel always advertise about
fastest network in india. Vodafone talks about the wide reach by saying
“where ever you go it follows”. Idea talks about various usage of internet and
how it can be used in development. Airtel has launced open network, where
customers can check the network strength in there surrounding before buying
it. Airtel speaks about live tv , payment gateway and applications. Jio has
always advertised about its tariff and data packs in media and posters.

Problem statement

1.what should be shown in advertisement campaign of jio?

2.how can jio transform from secondary to primary operator?

Analysis of the case:

increasing Urban Rural Digital Divide

Urban share Rural share
August,
57.57% 42.43%
2016
Dec, 2016 59.3% 40.69%
March, <60% >40%
2017 (estimated) (estimated)

Jio impact on Urban and Rural Teledensity
Urban Rural
teledensity teledensity
August, 2016 152% 51%
December,
170% 53%
2016
Courtesy: https://thewire.in/129528/reliance-jio-digital-india/
Dagmar approach for jio

1. Awareness – Communication tasks involved making the consumer

aware of the brand or the product.

2. Comprehension – These tasks also helped the consumer in

understanding the attributes and the features of the product and what
the product will do for the consumer.

3. Conviction – The communication task convinced the customer that

this product was meant for them

4. Action – Ultimately, after conviction, the customer was to be enticed to

take action
AIDA model for advertising

jio always talks about prices in its advertisement, which results in most of the
customer being aware about jio as most cost effective.

Jio never aware customers about the features like free roaming, bundle of
application, free jio tune, MNP procedure, video calling feature,.

Jio need to build interest in customers about reliance jio by knowing about the
features of jio. Jio need to tell about it features like video calling which is the
new way of communication. Jio need to advertise about portable television
which can go where you go by use of jio tv.

Jio need to know that customers are need in of data services to be updated to
the world, to be connected via social media and to be entertained. Jio need to
convict customers they are getting best services in term of data speed and
network coverage in the cheapest price.
Status:

Q) what should be shown in advertisement campaign of jio

Jio always talks about its prices and offer in the advertisement or
communication shown by jio. Where its competitor airtel uses advertisement
with open network which helps in increasing customer trust as now customer
can check th connectivity of there network before purchasing the sim card. It
also advertise about the airtel application about the television and music on
there advertisement which influences customers to purchase there network.
Jio provides these services but it never advertises about it.

Airtel advertise about the data speed and its good network connectivity to
attract more customers towards there services as predicted by a survey that
proved that the most important factors for choosing a network are data
connectivity and network connectivity. Jio should use these two factors in
there advertisement to attract more customers.

Jio have feature like free nationwide roaming, free hello tune, free
subscription to its application. The awareness and usage of jio application is
very low among jio customers. jio can use these application to increase
market share as well increase usage of its data and increasing its revenue.
Swot analysis of reliance Jio

Strenghts:
1. Technology
2. strong backing of parent company
3. fast and wide network
4. strongset customer acquisition strategy

• weakness:
1. late entry into the market
2. lack of awareness of jio features and choice of
premium number
3. too many freebies.
4. data connection poor

opportunities:
1.future driven technology
2. 5G and 6G technology
3. apps
4. competitive pricing strategy

• Threats:
1.risk of loss of customers
2. removal of free service.
3. price war from competitor.
4.criticism of negative image
jio always talks about prices in advertisement, where its competitor are talking
about there features, there fast internet speed, nationwide present.

We can see from swot the analysis that jio is having lack of awareness of jio
features and choice of premium numbers. Which need to be converted into
strength jio need to include these features in its communications to
customers.

Threat shows that jio is having a negative image. Jio need to increase the
perception of customers on internet speed and connectivity of call to the
customers.
Q).how can jio transform from secondary to primary operator?

Jio can provide choice of number to customers as jio recently use the
computerized system where it generates random number on each scan.
Which result in customer not having choice of selecting mobile number. The
competitors have a system where they provide with bunch of sim card to
customers to choose there preferred number which feature is not present with
jio. Jio need to provide at least three chances of scan to the customers so that
they have a feeling of being provided choice of number.

Jio should launch premium number, where customer can pay for the choice of
customers. This feature will help in customer satisfaction as most the
customers are concerned about there calling number as well as generate
revenue for the company.

Jio need to smoothen the process of mnp. Customer is not aware of the
process Of mnp jio should advertise about the process and rules of mnp as
this can help resolving the doubt of the customers about mnp. Most of the
customers are not willing to change there past mobile number. This can help
to convert competitor into jio.

We can see form the swot analysis that the image of jio is not good in the
market. Jio need to improve perception of customer for jio.
jio need to build trust with employe to make them use jio services as primary
sim from secondary sim.
jio need to be transparent with customers like airtel open network. Jio never
talks about its speed and network. Jio need to be transparent in there
services.

Jio need to improve their customer service to be responsive to the customers.

jio need to be responsive for improvising the quality of network and speed of
data provided to the customer.

Jio need to be caring and show affection to there customers. jio need to
segment its product according to the need of the customer. Jio need

Jio need to be sincere build reputation in the market.

Jio need to be trustworthy in eyes of the customers by raising the bar of there
services and customer satisfaction by resolving there problems.
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