A Study On Consumer Behaviour Towards Reliance Jio
A Study On Consumer Behaviour Towards Reliance Jio
SUBMITTED BY
UNIVERSITY OF MUMBAI
DECLARATION
I further declare that the information presented in this project is true and original to the best
of my knowledge.
Date:
Place: Mumbai
CERTIFICATE
I Ms. MANASI SHAH hereby certify that, Ms. YADAV SARANYA MASANAM studying
in the Third Year of Bachelor of Management Studies course at the S.I.E.S College of
Commerce & Economics, Sion (East), has completed a project on “THE BUSINESS
STRATEGY OF RELIANCE JIO” under my guidance in the academic year 2017-18.
I further declare that the information presented in this project is true and original to the
best of my knowledge.
Date:
Place: Mumbai
(Principal)
College Seal
ACKNOWLEDGEMENT
In making this project report a lot of people have contributed by giving me the required
My special thanks to all my friends who had supported me with my survey and also all
my faculty members.
It is because of their assistance and competence that I have reached this milestone.
I would like to express my gratitude and sincere thanks to my Project Guide Ms. Manasi
Shah, for instilling confidence in me to carry out this study and extending valuable guidance
and encouragement from time to time, without which it would not have been possible to
undertake and complete this project.
I also wish to extend my appreciation to the management and staff of my college, especially
our principal Dr. Nina Roy Choudhury , for their kind co-ordination and support.
The Indian telecommunications has been zooming up the growth curve at a feverish place.
India’s telecommunication network is the second largest in the world based on the total
number of telephone user (both fixed and mobile phone). The government has taken many
proactive initiatives which has provided a framework for the rapid growth of the telecom
industry. Opening the industry for private sector participation. 100% FDI is permitted in
telecom equipment manufacturing through the automatic route. Introduction of mobile
number portability in a phased manner, starting with the fourth quarter of 2008. Allowing
services providers to share active infrastructure. The subject has been taken for the research
as it plays key role in the success of telecom sector. Therefore, this research is to analyze the
major changes in Indian telecom industry.
A good business is the one which is win-win for all parties involved, and JIO is doing it
preety well. Data is the oxygen of digital life. JIO is more than just a business. The arrival of
JIO brings the revolution in the whole telecommunication sector and now JIO has become the
threat for its competitors. The plan of JIO is to provide high speed network to the entire
nation. And these plans are much cheaper as compare to other telecom operators. Providing
customer satisfaction is the most crucial step of the company as they are to be satisfied and
provides Internet access and technology advanced stuff required by almost everybody in
today’s environment. Therefore, this research is conducted to study the business strategies of
reliance JIO.
The present business world is becoming more complex because of its dynamic future.
Telecom industry plays a vital role in the overall development of a country. It is concluded
from the study that overall efficiency of Reliance Telecom Ltd., were found to be good. The
universal truth- globally consumers pay for either calls and texts, or data- they don’t pay for
both. This universal truth helps establish a new industry norm in Reliance’s policies. JIO 4G
data services are not intended to lure only the high-end customers but also focus on the low to
mid range segments. This research shows the preference of customers towards other networks
with JIO. And also to analyze the customer’s satisfaction towards JIO network. This research
informs the reasons behind why consumer choose Reliance JIO network.
This research explains the current network used by the consumer and what factors they
consider while choosing those networks, whereas there are different network available in the
market. Are the consumers are satisfied with their current network. Have they ever changed
their service provider using mobile number portability. Which services provider they port
their number from. What was the reasons for shifting to a different services provider. As JIO
provide a full-fledged services and competitive price, would consumer shift to JIO network.
From which source did they came to know about Reliance JIO. What motivated the consumer
to shift to JIO. Which services do the consumer like the most while using the Reliance JIO
services. Are they satisfied with reliance JIO services. What should be improved in Reliance
JIO services. This all are being answered in this research by the respondent
This research also explains the National telecom policy and the establishment of TRAI. This
research shows boarder perspective of Reliance JIO and their competitors. Swot analysis and
PEST analysis about JIO has explained. The Marketing strategy in telecom sector And
Industry analysis using Michael Porter’s five force model are used to for better
understanding. Customer perception about the Reliance JIO effect and Marketing strategy of
Reliance JIO helps to analysis the customer preference. Other researches done on the similar
topic and the learning from them are also described in this research. This research is done on
100 respondents and the data analysis with interpretation along with findings,
recommendations and suggestions to the companies and conclusion is also been explained in
this research.
TABLE OF CONTENTS
2 Review of literature 9
3 Company Profile 11
4 Research Methodology 44
6 Annexure 70
7 Bibliography 74
CHAPTER 1: INTRODUCTION
After the globalization of India economy in 1991 the Telecommunications sector remained
one of the most happening sectors in India. The recent years wireless rapid and dramatic
changes in the field of Telecommunications. In last few years more and more companies both
foreign domestic, come into cellular service, service market and offer large number of
services to people.
In year of 1989, the number of cell phone user in India was zero. In year of 1999 the number
of cell phone users has gone up by 13 lakhs. In the year 2000 of the number of cell phone
user has risen by one million. Indian Telecom sector added a staggering 227.27 million
wireless mobile users in the 12 month between March 2010 and March 2011, while the
overall Tele-density has increased to 81.82% as of 30 November 2015, and the total numbers
of telephone phone user (mobile & landline) have reached 1009.46 million as of May, 2015.
Now currently telephone subscriber (mobile & landline) is 1058.01 million (May 2016).
The company reconfiguring to meet the growing demand for mobile services. It will
differentiate our mobile service from our competitors through ongoing investment in
technology, distribution and customer services, providing both a great customer experience
and competitive value.
The company is updating their retail footprint to a new Reliance JIO concept delivering a
differentiated customer experience. A core part of their promise to customer is to ensure that
their technical experts in store transfer all their personal data to their new LYF phone
allowing them to walk out of the store with their phone fully functional. Extensive trails of
there.
1
India’s telecommunication network is the second largest in the world based on the total
number of telephone users (both fixed and mobile phone). It has one of the lowest call tariffs
in the world enabled by the mega telephone networks and hyper competition among them. It
has the world’s third largest Internet user base. According to the Internet and Mobile
Association of India (IAMAI), the Internet user base in the country stood at 190 million at the
end of June, 2013.
Major sectors of the Indian telecommunication industry are telephony, internet and television
broadcast Industry in the country which is in an ongoing process of transforming into next
generation network, employs an extensive system of modem elements such as digital
telephone exchanges, mobile switching Centres, media gateways and signaling gateways at
the core, interconnected by a wide variety of transmission systems using fiber optics or
Microwave radio relay networks. The access network, which connects the subscriber to the
core, is highly diversified with different copper pail; optic fiber and wireless technologies.
DTH, a relatively new broadcasting technology has attained significant popularity in the
Television segment. The introduction of private FM has given a fillip to the radio
broadcasting in India. Telecommunication in India has greatly been supported by the IN SAT
system of the country, one of the largest domestic satellite systems in the world. India is a
diversified communications system, which links all parts of the country by telephone,
Internet, radio, television and satellite. Indian telecom industry underwent a high pace of
market liberalization and growth since the 1990s and now has become the world’s most
competitive and one of the fastest growing telecom markets, The Industry has grown over
twenty times in just ten years, from under 37 million subscribers in the year 2001 to over
1,002 million subscribers in the year 2015.
India has a fast-growing mobile services market with excellent potential for the future. With
almost five million subscribers amassed in less than two years of operation, India’s growth
tempo has far exceeded that of numerous other markets, such as China and Thailand, which
have taken more than five years to reach the figures India currently holds. The number of
2
mobile phone subscribers in the country would exceed 50 million by 2010 and cross 300
million by 2016 according to Cellular Operators Association of India (COAI)
According to recent strategic research by Frost & Sullivan Indian Cellular Services Market,
such growth rates can be greatly attributed to the drastically falling price of mobile handset,
with price playing a fundamental role in Indian subscriber requirements. Subscribers in
certain regions can acquire the handset at almost no cost, thanks to the mess-market these
technologies have reached internationally. The Indian consumer can buy a handset for $ or
less. This should lead to increased subscribership. This market is growing at an extremely fast
pace and so is the competition between the mobile service providers.
With the presence of a number of mobile telephony services providers including market
leaders like Airtel, Reliance, Idea Cellular, BSNL etc. who are providing either of the two
network technologies such as Global System for Mobile Communication (GSM) and Code
Division Multiple Access (CDMA). Understanding the difference between GSM and CDMA
will allow the user to choose the preferable technology for his need.
European community to create a common mobile standard around the world. It helps you
achieve higher sell capacity and better speech quality and one can enjoy crystal clear
reception on one mobile phone. It automatically solves the problem of eavesdropping on ones
call. Before analyzing the telecom licensing framework in India, it is imperative that one
must examine what is a license. License issued by the government in an authority, given to a
person upon certain conditions to do something which would have illegal or wrongful
otherwise.
For example, a driver’s license issued by the government, gives the authority to a person to
drive a motor vehicle. There are three main types of license fee which the government
charges:
3
Licensing framework has been an integral part of India’s telecommunication law under the
Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any
person to establish, maintain or use a telegraph.
Code Division Multiple Access (CDMA) describes a communication channel access principle
that employs spread spectrum technology and a special coding scheme (where transmitter is
assigned a code). It is a spread spectrum signalling since the modulated coded signal has a
much higher bandwidth than the data being communicated. CDMA is the current name for
mobile technology and is characterized by high capacity and small cell radius. It has been
used in many communication navigation systems, including the Global Positioning System.
And the omnitracs satellite system for transportation logistics. Indian mobile telephony
market is increasing day by day and there is more to happen with technological up gradations
occurring nearly every day and the ever-increasing demand for easier and faster connectivity,
the mobile telephony market is expected to race ahead.
The National Telecom Policy was announced in 1994 which aimed at improving India’s
competitiveness in the global market and provide a base for a rapid growth in export. This
policy eventually facilitated the emergence of Internet services in India on the back of
established basic telephony communication network. This policy also paved way for the entry
of the private sector in telephone services.
• To ensure telecommunication is within the reach all, that is, to ensure availability of
telephone on demand as early as possible
• To achieve universal service covering all villages, that is, enable all people to access certain
basic telecom services at affordable and reasonable prices
• To ensure world-class telecom services. Remove consumer complaints, resolve disputes and
encourage public interface and provide a wide services to meet the demand at reasonable
prices
• To ensure that India emerges as a major manufacturing base and major exporter of telecom
4
equipment
• To protect the defence and security interests of the nation
The policy also announced a series of specific targets to achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would
be required to bridge the resource gap.
Thus, to meet the telecom needs of the nation and to achieve international comparable
standards, the sector for manufacture of telecom equipment had been progressively relicensed
and the sub-sector for value added services was opened up to private investment (July 1992)
for electronic mail, voice mail, data services, audio text services, video text services, video
conferencing, radio paging and cellular mobile telephone. The private sector participation in
the sector was carried out in a phased manner. Initially the private sector was allowed in the
value added services, and thereafter, it was allowed in the fixed telephone services.
Subsequently, VSAT services were liberalized for private sector participation to provide data
services to closed user groups.
Establishment of TRAI
The entry of private players necessitated independent regulation in the sector; therefore, the
TRAI was established in 1997 to regular telecom services, for fixation/revision of tariff, and
also to fulfil the commitments made when India joined the World Trade Organization (WTO)
in 1995. The establishment of TRAI was a positive step as it separated the regulatory function
from policy-making and operation, which continued to be under the purview of the DoT2.
The functions allotted to the TRAI included:
a. To recommend the need and timing for introduction of new service provider
5
e. To render advice to the Central government on matters relating to the development of
telecommunication technology and any other master applicable to the telecommunication
industry in general
In recognition of the fact that the entry of the private sector, which was envisaged during
NTP-94, was not satisfactory and in response to the concerns of the private operators and
investors about the viability of their business due to non realization of revenues the
government decided to come up will a new telecom police. The most important milestone and
instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New
Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective
from 1st April 1999. Moreover, convergence of both markets and technologies required
realignment of the industry. To achieve India’s vision of becoming an IT superpower along
with developing a world class telecom infrastructure in the country, there was a need to
develop a new telecom policy framework. Accordingly, the NTT 1999 was following
objectives and targets:
Availability of affordable and effective communication for citizens was at the core of
the vision and goal of the new telecom policy
Provide a balance between of universal services to all uncovered areas, including rural
areas, and the provision of high-level services capable of meeting the needs of the
economy
Encourage development of telecommunication facilities in remote, hilly and tribal
areas of the nation
To facilitate India’s journey to becoming an IT superpower by creating a modern and
efficient telecommunication infrastructure taking into account the convergence of IT,
media, telecom and consumer electronics
Convert PCOs, whatever justified, into public telephone information centers having
multimedia capability such as ISDN services, remote a database access, government
and community information systems etc
To bring about a competitive environment in both urban and rural areas by providing
equal opportunities and level playing field for all players
6
Providing a thrust to build world-class manufacturing capabilities and also strengthen
research and development efforts in the country
Achieve efficiency and transparency in spectrum management
Protect the defence and security interests of the country
Enable Indian telecom companies to become global players
In line with the above objectives, some of the specific targets of the NTP 1999 were:
Make available, telephone on demand by 2002 and achieve a Tele-density of 7% by
2005 and 15% by 2010
Encourage development of telecom in rural areas by developing a suitable tariff
structure so that it becomes more affordable and by also making rural communication
mandatory for all fixed services players and thus
Achieve a rural Tele-density of 4% by 2010 and provide reliable transmission
Media in all rural areas
BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent
market share. Next is Bharti Airtel at 10.9% followed by Tata and Reliance at 5% and 4.1 %
respectively.
7
“Vodafone is investing nearly US$ 3 billion over the next two years in India in
expanding is network infrastructure and distribution channel in the country,” as per
Vittorio Colao, CEO, Vodafone Plc
BlackBerry plans to set up enterprise solutions centres to educate corporate customers
about various BlackBerry Enterprise Service (BSE) 10 Solutions. “India is one of the
fastest growing markets in terms of Smartphone and mobile data adoption,” said
according to Sunil Lalvani, Managing Director (MD) BlackBerry India
Tata Teleservices plans to set up nearly 4,000 Wi-Fi hotspots in nine cities across the
country in the next two years
Booming Sectors
The tide has turned for the telecom sectors in India, as growth and profitability has
accelerated in recent times. Tower companies are reaping benefits of a turnaround in
the sector as operations have started investing in networks to boost data penetration.
However it is in the country’s booming mobile segments in which the major battles are being
fought. Three major private players – Bharti Airtel, Reliance and Vodafone – with a
formidable 54% share of the markets between them, lead a large field of mobile operators.
State-owned enterprises – BSNL and MTNL – have also been making their presence felt with
a combined market share of 12%
A look ahead
What does this mean for players in the sectors? Carriers will continue to pursue technological
advancements to handle demand, including offloading some mobile bandwidth needs to Wi-
8
Fi, which is proving an effective complement to mobile networks. At the same time, long-
term spectrum availability, spectrum efficiency, small cells and continued backhaul
improvements are likely to be a key focus to assure continued mobile broadband momentum.
1. Telephone :
In this telephonic network process optical fiber cable takes place, a person can
communicate a message from one to other person through telephone.
2. Internet :
With the use of internet a person can send a message from one E-mail Id to other Id.
3. Pager communication :
Pagers were just like a device which was popular around the business people it helps
to get a message only.
4. Mobile service :
In a wireless network a person who delivers a voice message from one person to
another person.
5. SMS service:
With the uses of mobile, a person types a text message to other.
6. Data Service:
In the current generation Data service plays an important role in all over the world.
Evolution of Mobile Network Technology:
1G: These systems are referred to as a “cellular” which was later shortened to “cell”.
2G: 2G carriers continue to improve to transmission quality and coverage.
3G: The 3G evolution allowed telephone customer to use audio, graphics and video
application.
4G: As developed with the aim of providing the quality service in data network.
9
5G: 5G stands for 5th generation is the newest mobile wireless is yet to be set.
OBJECTIVES
The transmission of information that allow for communication between people who
are separated by distance is called as telecommunication. Telecommunication network
represent all the players that make telecommunication possible, from the transmitters
and receivers to the communication mediums that make it possible for the messages
to be transmitted. The major sectors of the Indian telecommunication industry are
Telephony, internet and television broadcast Industry in the country which is in an
ongoing process of transforming into next generation network. The subject has been
taken for the research as it plays key role in the success of telecom sector. The
universal truth- globally consumers pay for either calls and texts, or data- they don’t
pay for both. This universal truth helps establish a new industry norm in Reliance’s
policies. Reliance JIO 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.
Their network is capable enough to handle amazing internet speeds. It therefore
encourages the consumers to use internet instead. JIO 4G data services are not
intended to lure only the high-end customers but also focus on the low to mid range
segments. No company is able to satisfy its customer, customer would remain in the
bracket of loyal customer. Hence, it is very essential to understand the customer
satisfaction and to measure the satisfaction level time as there is always scope of
10
improvement. Therefore, it is important to other competitors to study and analyze the
business strategies of Reliance JIO & to understand the effect of Reliance JIO
network in the mind of consumer.
11
CHAPTER 2: REVIEW OF LITERATURE:
T.V. Ramachandran (2005) analyzed the performance of Indian Telecom Industry which is
based on volumes rather than margins. The Indian consumer is extremely price sensitive.
Various socio-demographic factors like high GDP growth, rising income levels, booming
knowledge sector and growing urbanization have contributed towards tremendous growth of
this sector. The instrument that will tie these things together and deliver the mobile revolution
to the masses will be Third Generation (3G) services.
Aman Banchhor et al.,(2015), state in their study that JIO is the only company who is using
fourth generation (4G) LTE services and which is operating its network on 1800 MHz and
2300 MHz bands in Mumbai. JIO facilitate the normal download speed of 15-20 mbps.
Lowest international call tariff in the world. 4G handset with free connection for starting at as
less as Rs.2999. No surge pricing on public holidays, festivals and newyear. Reliance JIO
manipulate some marketing strategies of competitive pricing and tariff plans, JIO is offering
special operating own apps like JIO-play, JIO-money, JIO-security etc., JIO is going to
charge 1/10th of standard in telecommunication charge, Focusing on calls, text and data
12
respectively without any roaming charges throughout India and Student gets an additional
25% data usage if they registered their sim card on a student ID. Rajan Drmlami(2015),
expresses in the study that providing customer satisfaction is the most crucial step of the
company as they are to be satisfied and provides internet access on the move such as wide
network coverage and technology advanced stuff required by almost everybody in today’s
environment. From the details it can be concluded that 80% of Reliance JIO users preferred
to remain with Reliance JIO and fully satisfied. Also good number of customers who are
living to switch from their respective subscribers showed interest in Relaince 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. Sean Rodrigues (2015), concludes his study as the customers do not
prefer reliance network therefore it will be a hard task to get a good customer base for the 4G
network. So, it is very crucial to improve the image of the 2G and 3G services available. And
also mentioned in the study that deployment of 4G network in India is certainly not going to
be easy as the telecom operators face the challenge to launch a new network along with
improving the existing 2G and 3G networks in the country. Since Airtel will be the first to
launch 4G services in India whereas Reliance JIO plans to enter the market after a month,
Airtel will already acquire a good customer base. “Since Reliance JIO in a prelaunch phase it
is very early to specify the drawbacks”.
Jai Bhatia, Advait Rao Palepu (2016), Reliance JIO is disrupting the working of India's
telecommunications industry by taking on incumbents like Bharti Airtel, Idea Cellular and
Vodafone which together control almost three-fourths of the market for mobile voice and
data services. Although some of its services are "free," RJIO's pricing may not be considered
predatory even if its behaviour certainly is.
13
CHAPTER 3: COMPANY PROFILE
Reliance Communications owns and operates the world’s largest next generation IP enabled
connectivity infrastructure which comprises 280,000 kilometres of fibre optic cable systems
in India, USA, Europe, Middle East and the Asia Pacific region.
Reliance Group ranks among India’s top private sector business houses in terms of net worth.
The Company has a good customer base. Reliance covers over 21,OOO cities and towns and
over 400,000 villages.(India) Reliance JIO is in process to set-up the 4G LTE infrastructure
Reliance Industries Limited (RIL) Chairman Mukesh Ambani laid out his plans to unveil a
4G mobile network in the country, including making all domestic voice calls and roaming
free, while asserting that data would be priced well below its com petitors. Addressing the
company’s 42th annual general meeting in Mumbai for an hour, Mr. Ambani said the 4G
network Of Reliance JIO would cover 90 per cent of India’s 1.25 billion population by March
2017 and would eventually cover 18,000 cities and 200,000 villages.
Reliance JIO Infocomm Limited (commonly called RJIL) is an Indian Internet access
(commonly called “broadband”) and telecommunications company headquartered in
Mumbai, India. RJIL is a subsidiary of Reliance Industries Limited (RIL), India’s largest
private sector company, 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 circle; 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 which may be launched by June 2015. The company is in
process to set-up the 4G LTE infrastructure which will also be an enabler for a portfolio of
multi-media digital services including education, healthcare, entertainment, payment and
cloud services for millions of individuals, homes and businesses across India.
RJIL holds spectrum in ISOO MHz (across 14 circles) and 2300 MHz (across 22 circles)
capable of offering fourth generation (4G) wireless services. RJIL plans to provide seamless
14
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 underserviced 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 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 service; 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.
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 service; 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.
Agreements:
15
An agreement with Ascend Telecom for their more than 4,500 towers across India.
(June 2014)
An agreement with Tower Vision for their 8,400 towers across India.(May 2014)
An agreement with ATC India for their 11,000 towers across India. (April 2014)
An agreement with Mom Networks for their 42,000 telecom towers. (March 2014)
Agreement with Bharti Airtel for a comprehensive telecom infrastructure sharing
agreement to share infrastructure created by both parties to avoid duplication Of
infrastructure wherever possible. (December 2013)
A key agreement for international data connectivity with Bharti to utilise dedicated
fiber pair of Bharti’s i2i submarine cable that connects India and Singapore. (April
2013)
Agreements with Reliance Communications Limited for sharing of RCOM’s
extensive inter-city and intra-city optic fiber infrastructure of nearly fiber-pair
kilometers of optic fiber and 500,000 fiber pair kilometers respectively (April 2013 /
April 2014), and 45,000 towers (June 2013)
Technology:
Reliance JIO Infocomm is currently laying OFC across the country to offer fiber to
the home/premises (FITH). 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 I .8 GHz spectrum, which will ultimately
paved to roll out of LTE-A network aggregation of both technology and both
spectrum band
16
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
petro-refinery
Once commercially launched, JIO users can have access to Reliance Communication’
2G & 3G network
INDIA
Bharti Airtel launched India’s first 4G service, using TD-LTE technology, in Kolkata
on 10 April 2012.[73] On June 2013 prior to the official launch in Kolkata, a group
consisting of China Mobile, Bharti Airtel and Soft Bank Mobile came together, called
Global TD-LTE Initiative (GTI) in Barcelona, Spain and they signed the commitment
towards TD- LTE standards for the Asian region. It must be noted that Bharti Airtel
4G network doe; not support mainstream 4G phones such as Samsung Galaxy Note 3,
Samsung Galaxy S4 and others
Bharti Airtel 4G services are available in Kolkata, Bangalore, Pure, Hyderabad,
Viakhapatnam and Chandigarh region (The Tricity or Chandigarh region consists of a
major city Chandigarh, Mohali and Panchkula). Since May 2015, Airtel had also
partnered with Samsung India to introduce 40 services in Chennai, on a trial basis
RIL is launching 4G services through its subsidiary, Jio Infocomm. RIL 4G services
are currently available only in Jamnagar, where it testing the new TD-LTE
technology. Reliance’s 4G rollout is planned to start in Delhi, Mumbai and Kolkata
and expand to cover 700 cities, including 100 high-priority markets in 2015
Bharti Airtel launched 4G on mobiles in Bangalore, thus becoming the first in India to
offer such a service on 14th Feb, 2014
Bharti Airtel in July 2014, expanded 4G services to many cities in Punjab like
Amritsar, Patiala, Hoshiarpur, Ajitgarh, Ludhiana, Jalandhar, Phagwara and
Kapurthala Until July 2014, Customers in these cities access 4G services through
dongles and Wi-Fi modems on Apple iPhone and SC, XOLO LT 900 and LG G2
(model D802T)
Aircel in July 2014, launched 4G in four circles Andhra Pradesh, Assam, Bihar and
Odisha
17
India uses 2 3 GHz frequency
Tikona Digital Networks holds broadband wireless access spectrum in the 2300 MHz band
and is waiting for the appropriate time and maturity of the 4G ecosystem before making a
foray into the space. Tikona holds 4G spectrum licenses in five circles in northwest India,
covering Gujarat, Rajasthan, Uttar Pradesh (East and West) and Himachal Pradesh.
Strengths
• Free one and two GB of 4G data per day for the JIO user and free subscription to Apps.
1. Strong backing of parent company i.e Reliance Industries backed up Mukesh Ambani.
2. Excellent advertising and marketing of JIO helped the brand have a strong launch.
3. JIO has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped
reach out to masses.
5. Has a strong pan India presence with its operations in more than 22 circles.
6. JIO apps are a unique feature offering movies, games, shopping, messenger, chat, news etc
under one roof.
7. LYF Smart phones at affordable costs would also boost the brand Reliance JIO.
8. JIO gets strength through providing various advanced services to the user such as,
• No charges for voice calls and unlimited calling it’s highly benefits to customer which leads
to get more attention towards JIO.
• They introduced 4G with high speed it highly attracted towards net user.
9. These above benefits highly attracted towards the people is the biggest strength of JIO.
18
Weaknesses
1. JIO’s user faced connectivity problem like call drops while in the time of calling, so it
creates negative impression towards user.
2. This system will not support 3G, because JIO preferred only for LTE (4G) and VOLTE.
3. They delayed to entry in the market because already various kinds of network available in
the market and they have lot of customers.
4. Everything new to the user regarding JIO apps so it may difficult to use.
5. Other networks most of the time deny the calls while calling from JIO.
Opportunities
1. The company can offer telecom, call, data services at competitive prices.
2. Reliance JIO can promote exclusive services like apps to attract consumers.
3. Focus on customer service and MNP can help the brand overcome competition
7. Now, JIO benefits for 4G users only, so they have opportunity to concentrate for 3G users
also to increase number of customers.
Threats
1. Once free services are over, people would not want to continue using JIO.
19
2. Existing competitors have a strong presence, and a loyal customer base, which would be
difficult to address to.
3. Competitors are high in the market already they have lot of customers like (Airtel, Idea,
Vodafone etc…)
7. Perception of customer: Once free services are over, people will not want to continue.
9. Existing competitors have a strong and loyal customer base so it is difficult to change the
mindset of the customer.
Political:
“TRAI” is frames the rules and regulations for telecom industries. The rapid growth of JIO
made the competitor to disturb the schemes and offers of JIO. The competitors appeal their
rights in “TRAI”.
Economic:
In this current economic situation it is very difficult task to run the business at the same time
while taking telecom industry already there is large number of network operators but JIO is
providing free services with minimum charges to its service like call rate, minimum price of
their products. It feels the people more economic in developing country like India; where the
pricing is focused.
Social:
To satisfy the whole society is impossible, if the company concentrate in the term of society
it should covers all type of people like youngster, middle age people and old person. At the
20
same time expectation, preference will differs from one segment to another segment in the
society. JIO creates social group which connects the people in one end it helps the nation to
be connected in all means.
Technology:
The advanced 4G technology has been adopted by JIO with cheaper rate. They are the leader
in the 4G market. But the fact is technology is always depends upon the growth. So, there is
some requirements and technological research need for the next level.
Idea Cellular is the subsidiary of Aditya Birla group founded in the year 1995.The Idea has
gone far ahead of the major competitors and occupying incremental revenue market share of
33% from last three years. Now Idea offers 3G and 4Gs LTE services on its own spectrum
auction in 13 circles of telecom service areas and 340 towns in all over the India. Idea
strengthened its customer base after launching mobile number portability. Idea is India’s third
largest mobile operator and it has 191 million subscribers, Rs.354 Billion (US$5.3 billion)
Revenue and Net income is Rs.31.92 billion(US$470million) for the year ending 31 st 2016.In
January, 2017 it was announced that Idea talks to merge with Vodafone in Indian operations.
Strengths
1. Idea provides flexible plans for prepaid, postpaid and enterprise customers.
2. Good advertising of Idea cellular using TVCs, print ads, online ads etc.
3. High brand visibility and high recall of the brand.
4. Celebrity brand ambassadors have promoted the brand ensuring a good connect with
customer.
21
5. Idea has 200+million customers spread pan India.
6. Strong backing on parent company Aditya Birla ensure financial stability of the
brand.
7. Merger of Idea with Vodafone in India would ensure larger customer base and more
business.
8. Complete website which allows customers to recharge, pay bills etc.
9. Customer touch points like Idea stores, apps etc are fully developed.
Weaknesses
1. Price competition from other competitors means limited market share growth for Idea
cellular.
2. Limited market leadership in metros as compared to competitors.
Opportunities
Threats
1. New entrant's low price offering can reduce profits of Idea cellular.
Strengths
1. Vodafone is one of the most popular cellular service provider across the world.
2. Vodafone has over 1000,000+ employees globally.
3. The company provides landline, mobile telephony, digital TV services etc.
4. Vodafone has a very high brand visibility and strong brand recall.
5. Strong advertising with Zoo Zoo concepts made Vodafone ads very popular.
6. Tie up with international sports like Formula One and other popular sporting events.
7. Vodafone has its presence in 150+ countries and services more than 470 million
customers.
8. Diverse services like payment options (m-Pesa), mHealth services, foundation etc are
provided.
9. Highly efficient website ensures easy online payments, recharges, service activations.
10. Provides movies, music etc through various Vodafone apps.
Weaknesses
1. Being a global brand, the company comes under constant vigilance from global
authorities.
2. Vodafone has to constantly fight for market share with competitors due to price wars.
Opportunities
2. Latest and low cost technology can help the brand grow.
India JIO’s aggressive stabbing on market forced Vodafone to take $5 billion write down on
end of the last year. The Chief Executive Vitorio Colao to say at that the market would have
to consolidate. “I think Consolidation is the answer”. He said. Less than a year ago Vodafone
was still planning to float Vodafone India on the local stock exchange, despite a long-running
battle with the government over a $2 billion tax claim related to its acquisition of the unit
from CK Hutchison in 2007.For Vodafone a sale of the Indian business to Idea could reignite
speculation about an eventual tie-up between Vodafone and John Malone's Liberty Global.
The two have held merger talks before but analysts say Vodafone's ownership of numerous
assets in emerging markets had complicated valuations for Liberty, which is mainly
interested in the European market.
Sunil Mittal was founded Airtel in the year 1995.Airtel is an Indian Global third largest
telecommunications company. It operates in 18countries and provides GSM,3G and 4G LTE
services with 400 million subscribers. Airtel was renamed India’s second most value brand in
the first ever ranking by “Milliward Brown and WPP plc. Airtel is credited with pioneering
the business strategy of out sourcing all of its business operations with minute factory model
of low cost and high volumes. Its strategy has since been adopted by several operators. The
transmission towers are maintained by subsidiaries of Bharti group. Airtel served first time
low call rates in India. The revenue of Rs. R966.021 billion, EBIT is Rs.341 with net profit of
Rs.54 billion for the year ending 2016.The JIO’s trumph have stung Airtel which reported a
24
55% fall in third –quarter net profit to Rs.504crore. In 2016.it is the big moment to make
restructuring it strategies to compete the market leader with Telenor.
Strengths
1. Airtel is one of the largest cellular service provider in India, with over 260 million
subscribers.
2. Largest Telecom operator in the world with 200+ million subscribers across 19
countries make Airtel a strong brand.
3. Airtel is the only Indian operator, with VSNL, that has an international submarine
cable.
5. Strong advertising with celebrity brand ambassadors has boosted the brand.
6. Airtel has great value added services like Airtel money, online recharges, bill
payments.
7. Airtel stores, kiosks, sponsorships etc have boosted the brand presence worldwide.
Weaknesses
1. Price competition from other telecom players means limited market share.
2. User privacy is an allegation which the brand has had to face.
Opportunities
Threats
25
1. New entrant's low price offering can reduce market share.
2. Saturation point in basic telephony service can be tapped by Airtel.
3. Mobile Number Portability can be used by the company to tap competitor subscriber.
Strengths
Weaknesses
Opportunities
Threats
JIO’s free price war also opens new challenges all network providers. The Telenor was taken
a strategy to join hands with Airtel. Telenor has on 23 February 2017 entered into a definitive
agreement with Airtel will take full ownership of Telenor India. Airtel is India’s largest
wireless operator with over 269 million subscribers and a revenue market share of over 33
per cent. As the new owner, Airtel will take over Telenor India’s spectrum, licenses and
operations, including its employees and customer base of 44 million. Telenor’s operations
and services will continue as normal until the completion of the transaction. Telenor ASA has
on 23 February 2017 entered into a definitive agreement with Airtel, whereby Airtel will take
full ownership of Telenor India.
27
The Reliance Company commercially launched its services on 5 September 2016. JIO
crossed 100 million subscribers end of February 2017. This is the fastest ramp-up by any
mobile network operator anywhere in the world. JIO owns spectrum in 800 MHz and 1,800
MHz bands in 10 and 6 circles, respectively, of the total 22 circles in the country, and also
owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid till 2035. The company
has a network of more than 250,000 km of fiber optic cables in the country, over which it will
be partnering with local cable operators to get broader connectivity for its broadband
services. With its multi-service operator (MSO) licence. JIO offers its not only 4G broadband
services but also providers data, network, instant messaging, live TV, movies on demand,
news, streaming music, digital payments platform and free Wi-Fi hotspot services etc.
“We don’t care. We don’t have to. We’re the phone company.”- Lily Tomlin.
The American actress Lily Tomlin’s (1976) quote shows the marketing attitude of telephone
companies in the landline telephony dominant period of telecommunication services in the
Unites States. This statement was true earlier but in the current scenario telecom companies
have to care about the business and the customer as their assets. It is due to high customer
base and growing competition in the telecom sector with foreign direct investments and
customer driven market.
The market performances of the organisations are primarily driven by their marketing
strategies. The marketing strategy consists of the analysis, strategy development and
implementation activities in: developing a vision about market(s) of interest to the
organisation, selecting market target strategies, setting objectives and developing,
implementing and managing the marketing program designed to meet the value requirements
of the customers in each market target. The marketing strategy seeks to deliver superior
customer value by combining the customer influencing strategies of the business into a
coordinated set of market driven actions. Strategic marketing provides the expertise for
environmental monitoring, for deciding what customer groups to serve, for guiding product
specifications, and for choosing which competitors to position against. The customers’ value
28
requirements must be transferred into product design and production guide lines. Market
targeting and positioning strategies for new and existing products guide the choice of
strategies for marketing program components.
PRODUCT STRATEGIES
The basic essentials of product in mobile telecom services are its core functional benefits.
The key functional benefits desired by majority of the mobile telecom customers are voice
clarity, geographical network coverage and easiness to get connected to the network. The
frequent travellers outside the State consider roaming facility and the internet savvy
customers consider the easiness inactivation of internet services also as the core service
benefits. In third generation (3G) and fourth generation (4G) services along with these
characteristics, the core benefits also include easiness in handset settings for mobile internet
facility and speed of data access. The product is lifted to the augmented level with suitable
customer support and customer care activities and the maintenance of high level of quality of
service. The customer support activities related to the mobile telecom services are: easiness to
get a new mobile connection - the SIM (Subscriber Identity Module) card with friendly
processes and procedures, availability of mobile service recharge facility or recharge cards at
convenient locations (for prepaid customers), helpful assistance from retailers, and customer
convenient bill payment facilities (for post-paid customers). The customer care activities are:
easiness in activation of additional services, easiness in deactivation of services availed as
and when required, easiness to access customer care helpline, easiness to get the right
customer care person on the phone to get the required support or information, and the ability
to solve problems at customer care. The quality of service and brand value of telecom service
providers are also reflected in product related strategies. The five distinct dimensions of
quality of service suggested by Parasuraman A. et al. (1988) are tangibility, reliability,
responsiveness, assurance and empathy. The elements of tangibility are physical facilities,
equipment’s, and appearance of personnel. The reliability is concerned with ability to
perform the promised service dependably and accurately. The responsiveness is the
willingness to help customers and to provide prompt service. The assurance deals with the
knowledge and courtesy of employees and their ability to inspire trust and confidence in
customers. The empathy is concerned with caring and individualized attention the firm
29
provides for its customers. The features, benefits, quality, and the identity of the product are
emerged through the brand name. The corporate image of the service provider is reflected in
the brand value. According to Philip Kotler (1995) a brand is a name, term, sign, symbol, or
design, or a combination of them which is intended to identify the goods or services of one
seller or group of sellers, and to differentiate them from those of competitors. The telecom
service providers mainly segmented the customers based on demographic profiles such as
age, gender, locality (Urban or Rural), educational levels, employment status and income.
The core benefits’ requirements are different for different segments, accordingly the
companies positioning their products for targeting the specific segments. The post-paid
customers are considered as premium category as they are high paying group and very less in
numbers as compared to prepaid customers.
PRICING STRATEGIES
The pricing strategy has direct impact on revenue and profit of any organisation. Even though
the pricing is simply the exchange value of the product or service, the pricing strategies
depend on the objectives of pricing. The objectives of pricing are different for different
service providers. The objectives may be to produce fair profit, profiteering, market growth,
price leadership or to enhance the image of the firm to attract more customers or to
strategically counter the competitors. In India during mid-2000s, with the presence of
multiple telecom operators, the competition in the mobile market stepped up and price wars
start. Pricing became the major strategy of all telecom operators. Varieties of tariff plans are
introduced by the telecom service providers to attract customers of multiple segments.
Special Tariff Vouchers (STV) for voice, data and SMS allows customers to make calls, SMS
and access internet comparatively at low-priced rates, sometimes on unlimited manner. When
one operator introduces an STV, immediately others launched competitive versions. Copying
the tariff plan as a marketing strategy in a turbulent environment. Copying became a widely
utilised strategy among the telecom service providers. In addition to STVs, top-up recharge
cards, electronic recharge facility, credit recharge facility, validity extenders, separate and
combo tariff structures for voice, data and SMS were also introduced in the market. Exclusive
tariff plans are launched for closed user groups such as friends, lovers, family, official
groups, or business groups. Customized special tariff packages for individuals were also
30
offered by certain telecom service providers. In India the customers are enjoying one of the
lowest mobile tariffs in the world. This is mainly due to the intense competition in pricing
among mobile telecom service providers.
PLACE STRATEGIES
The distribution strategy is to provide effective place convenience for the customers to avail
products and services of the service provider. It is related to the distribution pattern, channel
management, and retailer network of the telecom service providers. The private sector
providers mainly adopted intensive distribution strategy, which involves the use of all
possible outlets to distribute the products and services. The public sector provider BSNL in
the initial stages mainly resorted to exclusive distribution strategy, in which the outlets deal
exclusively the BSNL products.
PROMOTION STRATEGIES
31
promotion helps telecom operators to create stronger and quicker buyer responses, including
short-run effects such as highlighting product offers and boosting the sagging sales.
According to Philip Kotler (2009) sales promotion offer have three distinctive benefits: (i)
Communication: They gain attention and may lead the consumer to the product. (ii)
Incentive: They incorporate some concession, inducement or contribution that gives value to
the customer and (iii) Invitation: They include distinct invitation to engage in the transaction
at sight. The sale promotion techniques and its attractiveness vary from one telecom service
provider to another. The consistent attractiveness of the offers creates positive word of mouth
about the telecom service provider. The advertisements and sales promotion along with
public relations and publicity can be extremely effective for telecom service marketers. In
this computer era, internet is an effective medium for marketing communication. All the
telecom service providers have websites, which act a touch point for internet accustomed
customers.
The services are primarily intangible, the customers are searching for evidence of service in
every interaction they have with the organisation. The three major categories of evidences as
experienced by the customers are people, process and physical evidence. These elements are
referred to as additional marketing mix for services or additional 3Ps of services marketing.
People: All human elements involved in service delivery or service assurance influence the
buyer’s perceptions. The customer care personnel, maintenance staff, persons representing
the organisation, the customers, and other customers in the service environment play vital
roles in services marketing. The private telecom service provider’s strategically manage the
people element primarily through outsourcing. The customer care and call centre personnel
are professionally trained employees provided by external agencies. The telecom service
providers extend excellent backend support for the outsourced customer touch points. They
utilise the IT capabilities for extending service to these touch points which in turn reflect in
the customer service. Although the private telecom companies seem to avoid direct personal
contact with the customers, they have a limited number of experience centres or relationship
centres or customer care centres at main towns and cities. These centres are managed by the
32
franchisees. The service provider will dictate the terms to the franchisee with respect to code
of conduct, dress code, personal grooming, telephone etiquettes, expected attitude and
behaviour to be shown by the employees engaged by the franchisees while interacting with
customers. The franchisee also benefitted from the win-win business relationships. The
franchisees hire employees with extreme dealing skills and impart them sufficient knowledge
along with adequate IT support to deal with customers. It is observed that the employees at
customer support centres are youngsters especially females. The BSNL manages their
customer contact points largely through their own resources and employees. The general
observation shows that the employees at customer touch points lack soft skills and knowledge
to deal with customers as compared with the private sector providers. The IT support is
inadequate to deal with customers. The workforce is also aged. The maintenance personnel of
BSNL in landlines are highly unprofessional in appearance, skill sets, and knowledge level
and even at attitude and behaviour towards customers. The government employee attitude is
predominant in BSNL.
Physical evidence: The physical evidence is the environment in which the service is delivered
and where the firm and customer interact, and any tangible components that facilitate
performance or communication of the service. The private telecom service providers are keen
in proving their presence through employee dresses, uniforms, brochures, tariff booklets,
business cards, and glow sign boards etc. The ever-changing tariff is immediately updated
and made available to retailers and customers. The BSNL mainly rely upon their customer
care centre and telephone exchange network for proving the physical presence. As part of
creating the tangibility, the telecom service providers seem to offer newly introduced value
added services to customers for free trail for a limited period. This is followed by various
sales promotion techniques to enthuse the customers to become the subscribers of the
services. The advertisements, hoardings, events, and public relations also help building the
physical evidence. Process: The actual procedures, mechanisms, and flow of activities by
which the service is delivered are termed as process. The private sector providers widely
utilise the retailer network to distribute their products and services. The process and
procedures to avail mobile connections and associated services from private sector providers
are very simple as compared to BSNL. Their retailers are motivated by trade schemes,
incentives and proper back end support to push their products. Even though the BSNL
33
procedures and process have been improved from the highly bureaucratic DoT era, it is still
below the competitors’ benchmarks. They are mass-market penetration, niche penetration and
skimming. The skimming was the strategy adopted by early mobile service providers in
India. The ego bolstering needs of upper -upper segment of India were stimulated by these
telecom companies to market the services. The mobile network coverage was available only
in main cities. At that period the mobile phone was a status symbol rather than a utility
service. The outgoing call charges were more than 32/- per minute and incoming call charges
were 16/- per minute. Gradually they reduced the tariff. During 1998-99 periods the effective
call charges decreased to 16/- per minute. The mobile call charges further reduced to
4/minute by March 2002. The high end positioning of mobile services were continued till the
entry of the service providers Airtel and BSNL in the mobile telecom market of India during
the later part of the year 2002. The market expansion was the growth market strategy adopted
by BSNL. They differentiated the product offering targeted to the needs of various potential
segments. The BSNL at their introductory stage itself differentiated their mobile telecom
service with maximum geographical coverage and connectivity. In order to accelerate the
market expansion they also practiced penetration pricing strategy. The BSNL introduced
tariff plans with outgoing call charges as low as 1/- per minute. The BSNL was the first
mobile telecom operator in India introduced tariff plans with incoming calls free of charge.
The BSNL became the market leader in India within three years. Subsequently all mobile
operators adopted market follower strategy and mobile incoming calls became absolutely
free. The competition in the market gradually enhanced. The minimum effective local call
charges in cellular mobile services declined to 77 paise per minute by September 200313. In
the year 2004, Escotel was taken over by the service provider Idea. The market was further
expanded with the entry of the service providers Reliance and Tata tele services. The core
product benefit of mobile telecom service, the geographical network coverage was
substantially improved in India due to the share-growth strategies of the followers. The focus
of the telecom service providers gradually shifted from the upper and the middle class to the
common people of India. In the growth stage of mobile telecom service in India, the service
providers widely utilised the pull strategy to promote their product and services. In a pull
strategy the manufacturer uses advertising, promotion, and other forms of communication to
persuade consumers to demand the product from intermediaries, inducing the intermediaries
34
to order it. The advertisement with celebrity endorsement is a strategy followed by many
companies to pull the customers. The choice of the celebrity is critical. The celebrity should
have high recognition, high positive affect, and high appropriateness to the product.
Celebrities such as Amitabh Bachchan, Sachin Tendulkar, Shah Rukh Khan, Aishwarya Rai
and Sourav Ganguly are big brands themselves. The inclusion of celebrities in advertisements
poses certain risks. The celebrity might hold out for a larger fee at contract renewal time or
withdraw. And just like movies and records, celebrity campaigns can sometimes be expensive
flops. The advertisement strategy of Hutch had given a positive edge for the promotion of
their products than other telecom service providers. The pug dog advertisement of Hutch with
the caption “Where ever you go our network follows” was so popular at that time. Even after
the takeover of Hutch by Vodafone in the year 2007, the pug dog advertisement continued.
The celebrity endorsement advertisement strategy is also followed by the Idea Cellular with
the actor Abhishek Bachchan and Aircel with the cricketer M. S. Dhoni. The Bharti Airtel,
which used several celebrities from Shah Rukh Khan to Kareena Kapoor to Sachin Tendulkar
to A.R.Rahman earlier, now features unknown faces for its ‘Jo tera hai, wo mera hai...’ series.
Tata Docomo had endorsement deal with the actor Ranbir Kapoor. The Tata Indicom and the
Reliance promoted their services with Kajol and Hrithik Roshan respectively. The BSNL
formerly used celebrities Preity Zinta, Deepika Padukone and Abhinav Bhindra in their
advertisements. The celebrity endorsement strategy was not adopted by the service provider
Vodafone. In the growth stage of mobile telecom services industry in India, the telecom
service providers were very keen in designing and publishing advertisements in popular
media. As part of the advertisement strategy the telecom companies inserted catching
captions and ad slogans in their advertisements. The noticeable stuff among them are: Idea:
‘An Idea can change your life’, Airtel: ‘Express Yourself’, BSNL: ‘Connecting India Faster’,
and MTS: ‘A step ahead’. Previously Vodafone was using ‘Wherever you go Our network
follows’ signifying the importance of network coverage the service. Then they used the
taglines ‘Power to you’ and ‘Make the most of Now’ to describe the usefulness of various
value added services. To show the customer care effectiveness, Vodafone used another
caption ‘Happy to Help’. The lowest ever tariff of telecom services due to hyper competition
in the market and the trends of market saturation negatively reflected in the revenue of the
service providers. As part of reducing the operational expenditure, recently the telecom
35
companies put restrictions on their ad campaigns. The advertisements became very rare for
BSNL as compared to the private sector providers. The BSNL was the market leader till
2007. In the year 2008, the private sector provider Idea through the frontal attack strategy
captured the major market share and became the market leader. In the frontal attack strategy,
where the market for a product is relatively homogeneous, with few untapped segments and
at least one well-established competitor, a follower wanting to capture an increased market
share may have little choice but to tackle a major competitor head-on. Such an approach is
most likely to succeed when most existing customers do not have strong brand preferences or
loyalties, the target competitors product does not benefit from positive network effects, and
the challenger’s resources and competencies particularly in marketing - are greater than the
target competitor’s. When well- established competitors already cover all major segments of
the market and the challenger’s resources are relatively limited, flanking, encirclement or all-
out frontal attacks may be impossible. In such cases, the challenger may be reduced to
making surprise raids against its more established competitors called guerrilla attacks. The
newly entered operators concentrated mainly in urban and semi-urban areas. They positively
differentiated their services in other elements of marketing mix especially in pricing and
promotion. Tata Docomo became the most successful among the new entrants with these
strategies. The Aircel initiated guerrilla attack with attractive 2G internet economic packages
for the segment of students and youth. The late entrants attack the leading telecom service
providers with loss leader pricing strategy and explored the urban markets. In the loss leader
pricing an initial low price is charged in the hope of getting more business at subsequently In
the year 2009 itself, when Tata Docomo first introduced pay per second billing, it was an
innovative pricing strategy in the extremely competitive Indian telecom market. Immediately
all other operators became the followers of this strategy and also started offering pay per
second plans. In 2012 TRAI (Telecom Regulatory Authority of India) intervened and ordered
that there has to be at least one tariff plan each for both post- paid and pre-paid subscribers
with pay per second pulse across all service providers so as to enable the subscribers to
compare the tariffs offered by different service providers. The strategic attacks of new
entrants’ further gravitate the competition in the market. The market leaders resorted to
position defense strategies. The most basic defensive strategy is to continually strengthen a
strongly held current position- to build an impregnable fortress capable of repelling attacks
36
by current and or future competitors. This strategy is nearly always the part of a leader’s
share-maintenance efforts. By shoring up an already strong position, the firm can improve the
satisfaction of current customers while increasing the attractiveness of its offering to new
customers with needs and characteristics similar to those of earlier adopters. The Idea is the
most successful mobile telecom service provider in India with their position defense strategy.
The primary focus of marketing strategies of telecom service providers is to seek competitive
advantage and synergy through a well-integrated program of services marketing mix
elements (the 7 Ps of product, price, place, promotion, people, physical evidence and process)
tailored to the needs and wants of potential customers in that target market. The
differentiation is the powerful theme in developing marketing strategies. As Michel Porter
points out, “A company can outperform its rivals only if it can establish a difference that it
can preserve. It must deliver greater value to customers or create comparable value at lower
cost or both”. The differentiation protects the firm from the five competitive forces - rivalry
among existing firms, threat of new entrants, bargaining power of suppliers, bargaining
power of buyers and threat of substitute products - proposed by Michel Porter. Most of the
time differentiation is why people buy. The differences may be physical or perceptual. The
differentiation can take many forms: product, customer support services, quality of service,
brand image, pricing, promotions, retailer networks and so on. The telecom service providers
tested many marketing strategies based on marketing mix elements and tried to differentiate
the services from the competitors.
SERVICE INDUSTRY
The service industry especially “telecom” sector in India, is contributing a major support in
GDP. The characteristics of service sector is “intangibility”, “heterogeneity”
“inseparability”. The telecom service providers are providing the voice and data services with
other value added services to attract customers and trying to hold them with the company. In
India, no other telecom company is providing mobile device with connection or offer on
mobile device free voice or data for some stipulated time duration. Reliance JIO is making
such offer, for the first time the physical product “mobile” device is introduced as company’s
own brand named “LYF” pronounced as “Life” with variants like Earth, Flame (Fire), Water,
and Wind in the telecom sector. Reliance has its voice and data service as well as its mobile
37
devices for customers. The characteristics of service “intangibility” becomes “tangible” this
time, with product range of mobile devices.
The present scenario in the Indian telecom sector can be better analysed by suing Michael
Porter’s Five Force Model.
38
THREAT OF NEW ENTRANT
- RJIO’s impact on its competitors The entire Indian telecom sector redesigned by the new
aggressive entrant of free R-JIO. The Reliance announcement of its free offers creates drastic
changes not only on its rivalry competitors but also on subscribers, power of suppliers, power
of buyers and threat of substitutes. Here we can apply the Porter’prophets in Indian telecom
market.
Major market leaders Airtel, Idea and some others ready to dig new strategies to attack and
protect by themselves. It is an time for structural alters exists. RJIO strategies. As the JIO
works only with 4G mobile, the impact of Joi on the competition in the segment of feature
phone users is absent. However, JIO has come up with a device that upgrade 3G mobile to
function 4G services. JIO competes even in the 3G mobile user segment.
COMPETITIVE RIVALRY
Customers’ low switching cost intensifies the competition in the industry. Price sensitivity of
customers also adds to this. Telecom sector in India is almost saturated. Almost every
household possess a mobile network. In this case, every rival is fighting for the same share.
There is no market left for new entrants. New entrant JIO must get significant share only
from the competitors. This maximises the rivalry in the industry. Exit barriers are also found
in the industry. Hence, the players must fight against major competitor till the end.
THREAT OF SUBSTITUTES
Hardly there are no substitute products for mobile services in the industry. Hence the impact
of substitutes is insignificant in this case.
Bargaining power of buyers will be a major force in the industry. Customers are exercising
high bargaining capacity. The reasons for high bargaining power of buyers would be
switching cost is very low. Customers can switch their service through the option ‘port’
without changing their number. Customers in this industry is observed to be price sensitive.
Therefore, customers expect superior quality service at lower cost. This made mobile giants
39
Airtel and Idea to slassh their tariff nearly 40%. Eventually it adversely affect industry
profitability. Also become threat to the new entrant.
Being supplier of mobile services such as messaging, calling, data and other value added
services, the players have less bargaining power with the customers. This force the players to
offer better services at reasonable price.
The table 1: Shows the current market share of mobile service operators in India as on 16th
February 2017. This is a list of mobile operators of India as on 16 February 2017
40
The table 1.1 shows that Airtel is in leading position with 263 million subscribers. Followed
by Vodafone (209) and Idea (190). JIO occupies the 4th position with 99 million subscribers.
Though JIO is at 4th position, in terms of pricing JIO posing a challenge to the market
leaders. It is already noticed that the customers are price sensitive in India, after 31st march
2017 JIO is no more free service. So, it is too early to judge the customer base of JIO. JIO
tariff plans will decide the number of customers will be active with JIO. The price of data of
JIO is relatively cheaper. This element making Airtel and Idea to think various strategic
alternatives. Since the exit barriers are present in the industry, they cannot get out of the
industry. It will be too difficult for small players in the industry to make a significant market
share. The only option to become more stronger to compete with JIO is to make strategic
alliances with other competitors. Airtel merges with Telenor India and Idea with Vodafone.
Airtel and Telenor together will have 316 million subscribers, while Idea and Vodafone
together will have 400 subscribers and lead the market. more stronger to compete with JIO is
to make strategic alliances with other competitors. The major giants in the industry viz, Airtel
and Idea strategically responding in a similar way. To strengthen themselves in the industry,
Airtel and Idea acquiring Telenor and Vodafone respectively.
The Reliance JIO’s pre-launch offer has two things one the voice and data from Reliance and
other one is Mobile devices named “LYF”. It is a pre-launch offer and most ambitious and
expensive start up project. The JIO effect can be seen easily in the market people are getting
crazy to get JIO SIM and avail associated offer with the new SIM and another offer is with
the LYF mobile devices that will last till year 2017. This offer makes the market environment
very turbulent and forcing the competitors to place strategy against it. Vodafone, Airtel who
are established players in the market are making their moves to defend their territories by
offering new offers to the new customers who joins their network for voice and data.
In Indian contemporary scenario, the data is being widely used people are using apps like
Facebook, Whatsapp, WeChat, Viber and other utility apps like Railways and online
shopping apps they all need Internet connectivity. The telecom service provider are moving
41
to the next generation of technology with LTE/4G to make the customers stay with them, this
is a buyers’ market and buyers are in position to make the service provider give them what
they want in this position the Reliance offer is working as a bargaining tool. People are happy
with their current service providers for voice and data but with the Reliance offer they are
moving to have another alternate option so that they can decide later what to do with the
current connection. If the Reliance JIO effect works in future then the conditions will be
getting worse for the other players in the market. The Indian markets is very price sensitive
market and Reliance strategy is to target the price sensitive market segment, till now this
strategy is working successfully. It is only to be expected that a company into which Rs.1.35
trillion has been invested (and an additional Rs.15,000 crore is being invested) will do so. But
it isn’t just the telecom companies that need to worry about the new Godzilla on the block.
JIO will also disrupt the media and software businesses through ownership or aggregation,
and delivery. That’s a classic information economy play of parent Reliance Industries Ltd’s,
famous complete backward- and forward-integration strategy. Chairman Mukesh Ambani
translated that into the farm-to- fork strategy in retail (with mixed results, at least until now)
and now, the pipe-to-play model in telecom. But can India’s largest start- up manage
hundreds of millions of customer accounts and navigate the emerging business models of
software and content? That’s the Rs.1.5 trillion question.
The competition to defend the market pie of competitors and stop migrating the customers
from current telecom provider and offering them unbeatable offer is the urgency of present
players in the market. The established players like Vodafone, Airtel and BSNL etc. are
making their effort to stop their customers from choosing Reliance as an alternative although
it is a strong alternative in the market. To retain and add more customers the players in the
market are offering more lucrative offers like slashing the tariff, offering more data to the
new customers etc. and moving towards high end mobile technology like 4G. Following are
the offers made available to the customer to beat the competition against Reliance.
42
Airtel is offering a 15 GB data pack for 90 days for Rs 1495. Currently available in Delhi, the
company plans to launch the scheme in other circles soon. Once you have consumed 15 GB
data, you can use the Airtel App for ‘free’ 15 GB additional data. Once you have consumed
30 GB data, the internet speed will be automatically reduced to 2G.
Vodafone, the second largest telecom operator has also made a pitch for competing with JIO
and Airtel offers. The company has rolled out a ‘free’ data plan offering 10 GB 4G mobile
data at the cost of 1 GB data. But it is only for Vodafone consumers with new smartphones.
You will get additional 9GB 4G mobile data when you will recharge for the 1 GB plan,
which is available for Rs 250/28 days. The new plan can be availed till December 31, 2016
by both prepaid and postpaid consumers.
Vodafone 4G
Vodafone 4G is the world’s largest network of 4th generation internet high speed
connectivity. After it has reached 3G services across the lengths and breadths of the nation,
Vodafone has taken up the job to spread the 4G network among its customers. It started its
4G services in the state of Kerala. After that they have started launching 4G data packs for
customers of Karnataka. It’s cheapest 4G pack comes at Rs. 29 for a 120 MB data which has
validity period of 3 days and the largest package is of Rs. 2,499 for 20 GB of 4G high speed
data.
•Earlier, 650 plan offered 3GB data, but under the revised scheme users will get 5GB at the
same price
•449 3G/4G plan will have 50 per cent more data. Under the revised scheme, data has been
increased from 2GB to 3GB
•The revised 999 3G/4G pack will now offer 10 GB data, offering 54% more benefits
43
Airtel 4G
Bharti Airtel has the largest network of 4G services provided in India. It has launched its 4G
services in almost every major city in every state of the country. With uninterrupted high
speed 3G data services, it is current ruling the 4G market in India. The Airtel 4G data packs
can be accessed by the customers through their smart phones enabled with 4G. Also there are
4G dongles available in the market launched by Airtel to spread 4G connectivity in the
country. One can buy a 10 GB 4G data in Trivandrum for Rs. 1,347. But this same data pack
costs a whooping Rs. 1,998 in Amritsar. There aredifferent ranges of products of 4G data
packs by Bharti Airtel.
•Airtel has reduced its 4G/3G data by nearly 80% and for corporate customers it has reduced
the prices by up
•Under their latest scheme, customers have to pay 1498, post which one will get 1GB for 51
•When compared with the current market rate, users would be saving nearly 30% for 1 GB
per month data and 37% for 2 GB each month
Idea 4G
Unlike Airtel, which provides 4G internet services throughout the nation, Idea cellular only
has its 4G services limited in few states of southern India. The 4G spectrum by the Idea
cellular is present only in the states of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
There are various ranges of data packs of 4G internet services by Idea. Right now there is a
limited offer of extra double data with the 4G packs given by Idea. A 1 GB 4g data pack of
Idea costs Rs. 249. In addition to this, Idea is giving another 1 GB free under a limited period
offer to its customers. Also the price of 10 GB of 4G data is Rs. 1,346 along with which
another 10 GB data is absolutely free. So Idea has the lowest rates of 4G data right now
compared to Airtel and Vodafone.
44
•Users will now get 4G/3G data of 5GB for 649
•Users who want 10GB of 4G/3G, then it shall come at a price of 990
Airtel Launches my Plan Infinity with Unlimited Local, STD & National Roaming Calls and
3G/4G data
The big cat fight is growing more and more between the leading telecommunication
providers regarding the rates and the data plans. In this era of online world, where one
provider is offering speedy net connection, others are slashing the rates to the lowest level to
grab more customers. After the introduction of JIO net connection by Reliance
Communication, other service providers like Vodafone, Airtel and Idea make sure to offer
much cheaper plans to the customers. The Delhi–based telecom service provider Bharti Airtel
lands up with a new data plan “my Plan Infinity’ that allows you to make voice call for free.
Also under this plan you can enjoy unlimited music from Wynk Music and Wynk movies.
Airtel 4G vs. Idea 4G vs. Vodafone 4G JIO 4G Data Plan Comparison 2016
From the start of 2016, we have seen the big players in the telecom and networking industries
are gearing up with their 4G plans for the customers. 4G or the 4th generation internet is
nothing but improved and high speed internet service gateway, from the existing speeds. The
big players out there in the market offering 4G services to millions of customers are Airtel,
Idea and Vodafone. Also there are other competitors getting up in line like the mighty
Reliance. The 4G internet services are still not totally available in all parts of the country.
These companies have launched these 4G services only in selected states. Below are the
comparisons of the various 4G internet facilities by Idea, Vodafone and Airtel.
BSNL
•The PSU mobile operator is offering 1GB of 3G only data at a price of 198. With all the
above information and facts depicts that the customer is king of the market and a single
offering or change in the wave can “effects” the market condition, in the present condition the
customers are enjoying the slashed rates for voice and data, but the offering made by the
competitors are for the shorter time once the JIO effect is over and the turbulence of the
market is settle down then the actual competition among the telecom service provider begins.
45
That make the customer who is the deciding factor now and then also he is the one who usage
the services offered by the various telecom providers. It is very important to know the
perception of the customer about the JIO effect, to the same the researcher has floated the
questionnaire to know what factors are there to relate the JIO effect and what is the
expectation form the telecom service provider.
Customer perception is one of the most important criteria of this research paper, the market is
customer driven the telecom company can offer its best plans but the choice is of customer.
In the current scenario the customer is mostly younger generation with high end smart phones
they are the users of Data and Voice, mostly young generation are using data in various
application like instant messaging application, browsing, downloading, games etc. the
Reliance JIO offers free Voice and Data till 31st Dec. 2016 and with LYF mobile devices it
will last till 2017. To understand the mindset the customers who will probably continuing the
Reliance JIO connection in future too, the researcher floated the questionnaire online and
communicated to the best possible ways to get the responses. The research is done at the time
when the market is full of offers from the competitors of Reliance JIO, there is a wide variety
of offers to choose. People are taking Reliance JIO SIM firstly due to the pre-launch offer
where the data and voice are free till the launch.
The Reliance JIO network is running entirely on 4G - not "mostly 2G, sometimes 3G, and
once-in- a-while 4G," Ambani said, taking a dig at other networks. To access the network,
you need a 4G compatible phone with VOLTE support. Reliance Retail's lineup of Lyf
phones offer a low cost option, starting from Rs. 2,999, though you can buy any phone that
supports VOLTE and use it. You are not ready to move away from your current phone, you
46
can buy the JIO-Fi portable Wi-Fi hotspot at Rs. 1,999 and take advantage of JIO's plans as
long as your phone supports Wi-Fi.
Reliance JIO is also a 100 percent VOLTE network - the largest in the world, according to
Ambani. VOLTE stands for Voice over LTE, by which you make voice calls over the data
network. As an end user, nothing is really different - you still dial a number just like you
always would, and during the preview offer at least, connections have been clear and reliable.
But at the backend, even voice calls use data, compared to non-VoLTE networks, that treat
data and voice differently.
Everything is free
Although Reliance JIO plans were revealed, everything is going to be completely free for
users until March 31, 2017. JIO's data, voice, and video along with the full bouquet of
applications and content will be available fully free for everyone. Ambani called this JIO's
New year Offer, which will enable everyone to try out JIO without spending any money. This
will also allow users to get comfortable with the various applications that JIO is offering, and
JIO will use this period to test interconnections with other operators and to get feedback from
customers.
Coverage
JIO's a new network, but its reach is already pretty wide - according to Ambani, the Reliance
JIO network already covers 18,000 cities and towns, and over 2 lakh villages. Although it is
already covering a large number of cities and villages, that doesn't mean that JIO's rollout has
completed yet. It still has some ways to go to cover all of India, and the next target is to reach
90 percent of the population by March 2017, Ambani added.
A million Wi-Fi hotspots Reliance JIO is now in the process of rolling out Wi-Fi hotspots
across India. By the middle of 2017, it plans to have 1 million Wi-Fi hotspots across the
country, and it's offering Wi-Fi data in the 4G plans it offers; for example, if your plan is for
4GB, you get 8GB of Wi-Fi access as well, while the top 75GB plan gets 150GB of
47
additional data via Wi-Fi hotspots. These hotspots are coming up at schools, colleges, and
other public places.
Highlighting how operators only charge for data while voice and messaging are essentially
free, Ambani said that JIO will not charge for voice calls. "All voice calls for JIO customers
will be absolutely free," he said, adding, "Across India. To any network. Always. And in the
spirit of one India - no roaming charges also."
This means that even if you're calling someone on another network - for which Reliance has
to pay termination charges to the other network - it will pick up the tab.
At the same time, describing data as oxygen, Ambani said that Reliance JIO's second
principle is that data must be affordable. "Current market practice is to charge a base rate of
Rs. 4,000 to Rs. 10,000 per GB of data," he said, "JIO will have a base rate which is more
than at a 90 percent discount over the industry."Reliance JIO is offering data plans at Rs. 50
per GB, though a look at the actual data prepaid plans shows that this isn't 100 percent
accurate.
On the cheapest plan, Reliance offers 4GB of data for Rs. 499 - still a great deal, but not
exactly Rs. 50 per GB. However, Reliance is also giving 8GB of Wi-Fi access at Jio Wi-Fi
hotspots, and unlimited usage at night, so it definitely works out to a very reasonable amount,
and under that Rs. 50/ GB figure once you factor that in.
That's not all though - Reliance Jio is also going to give free access to its various JIO apps.
The full bouquet includes JIO's video on demand service, its music streaming platform, and
even a live TV service which allows you to view previously aired shows by scrolling back on
the timeline.
48
There's a lot on offer, but we don't know anything about how the pricing for these services
will be structured, only that the full bouquet taken together will cost you Rs. 15,000 per year.
However, these are going to be given fully free to all users until the end of 2017.
Noting how inefficient the paper-based manual process to onboard customers is, Ambani
noted that people had to wait for hours to get their service activated. In my experience getting
Reliance JIO SIM cards activated with in a day. A customer with an Aadhaar card will be
able to get the JIO sim with a working connection in 15 minutes.
JIO fibre
Launch of this service is not yet announced but JIO is working on a fibre line network which
will provide FTTH services to commercial & residential customers. JIO has planted their
fibre across vast areas of India and planning to cover all over Indian region by 2018. This
broadband will surely provide more data transfer speeds compared to the current FTTH ISP
as they have their own single fibre line and are not dependant on any other ISP
R-JIO launched a bundle of multimedia apps on Google Play as part of its 4G services. While
the apps are available to download for everyone, a user will require a JIO SIM card to use
them. Additionally, most of the apps are in beta phase
49
Jio4GVoice (earlier Jio-Join) - A VOLTE phone simulator
JIO APPLICATIONS
My JIO
My JIO App is the basic app for the JIO users. From SIM portability to balance checking –
everything and anything is available with My JIO App. All you need to do is download the
app from Play or Apple store and sign up under My JIO account. Enter a valid mobile
number (reliance JIO) and start using the app easily.
In My JIO App, you can check your balance, get help and support from the server, you can
check the voice call details, Wi-Fi details, store locators, usage details, hotspot locator and
any kind of support and help for the setting issues. Also if you are porting your old network
to Reliance JIO then My JIO app will help you to generate bar code that is mandatory to
collect your new sim with same number.
JIO Cinema
JIO Cinema is available on Android and IOS platform in which you can get any movies on
demand. You can get any of your favourite Hollywood and Bollywood movies under JIO
Cinema.
You will get under the app is no buffering (because it is 4G friend), no ads, one tap play,
resume videos and save your watch-list. The app also offers you premium movies that you
50
need to buy to watch them. Anywhere at any time your favourite movies are in your
fingertips.
JIO TV
It is another app that will make you smile if you are a daily shows lover. Watch your
favourite shows live in HD on your channels on any device tablet or phone in JIO TV. There
are 319 channels available that showcase your favourite shows that too without commercials.
On JIO TV app and watch it from where you left when you are free. Share, search, pause,
rewind and watch the 7th days’ old episodes anywhere in the JIO TV app.
JIO Join
Join the JIO Join app for rich phone calls in your poor phone. You’re using 2G/3G phone that
is non-VOLTE then no worries, connect to JIO Join app and get the best HD quality VOLTE
supported voice and video calls on your phone. There will be no disturbances during calls;
you can share files, doodles and what not. JIO Join is available on IOS and Android platform.
Also gear up for the non-disturbing conference call with your team with your 2G/3G
supported phone.
JIO Net
JIO Net is a superb app for the internet addicts. If you are an internet addict and get pissed off
with your data limits, then shift to JIO just to enjoy the JIO Net app. The app will allow you
to connect to JIO Wi-Fi hotspots across the nation. You don’t even need to enter any login
details or security pass code. Once you are in JIO Net you will be automatically connected to
nearby available JIO Wi-Fi hotspot. You can use unlimited internet and no one will disturb
you in there. JIO Net is also available in both iOS and Android platform. JIO Net does need a
login details, but to use the app not the Wi-Fi hotspots.
JIO Music
51
JIO Music is for the music lovers. More than 20 languages are available in JIO Music where
you can listen, download and share millions of your favourite songs. You can also connect
your Smart watch or other devices with the app to enjoy music while working out or running.
You can download the music, buy music (in case of premium albums), create your own
playlist, share it with your friends and also if your love RJs then go for JIO Music Radio as
well.
JIO Mags
JIO Mags are for the magazine and news lovers. Those who want know what is happening
around us must try JIO Mags App available on iOS and Android platform. Latest business
news, entertainment, TV, movie stars and everything about them in leading magazines can be
now grabbed by JIO Mags. Download the app and get the best reading experience anywhere
on any device. Also you can share, save, sync and read offline these magazines.
Finally the JIO Money Wallet that is available under JIO offers. Till now you all know a lot
about Wallets that we use often to make payment when we are running out of cash. JIO
Money Wallet is nothing less than that. You can make payments, buy movie tickets, and
chance to get more than Rs. 15,000 /- worth of discount coupons by using JIO Money Wallet
app. Just link your bank account with JIO Money Wallet, and pay for anything and receive
your personalised offers as well with JIO Money Wallet App.
"To enable digital transactions, merchants, especially small merchants, are an important
component of our economy. To fuel their transactions, JIO is working to empower Indian
merchants by building a digital retail ecosystem, which we are calling JIO-Money Merchant
Solutions," - Mukesh Ambani. "Customers can use their JIO-Money wallets to pay merchants
from their bank accounts, and merchants can use the JIO-Money Merchant App to accept
these payments directly into their bank accounts," – Mukesh Ambani.
52
CHAPTER 4: RESEARCH METHODOLOGY
The behaviour of the customer is unpredictable which may result in the lacking of
accuracy in the data.
53
Lack of interest of respondents.
54
CHAPTER 5: DATA ANALYSIS AND INTERPRETATION
1. ANALYSIS
2. ANALYSIS
55
3. ANALYSIS
4. ANALYSIS
4. INTERPRETATION:
The above pie-chart shows that the major consumer uses Vodafone network which
comes to 29%. And 23% of Airtel network , 14% of other network, 12% of Aircel,
Idea and Reliance network both has 9% equally and less than 4% of consumer
use BSNL/MTNL network.
56
5. ANALYSIS:
5. INTERPRETATION:
The above pie-chart shows us that only 20% of consumer prefer Postpaid services
and the rest 80% prefer Prepaid services.
57
6. ANALYSIS:
6. INTERPRETATION:
This pie-chart conveys that spending pattern, where the majority of customer
spend between Rs.100-Rs.200 as average monthly expenditure on mobile is 42%.
Whereas only 11% of the total respondents spend more than Rs.400. 32% of
customer spend between Rs.300-Rs.400 in a month. The percentage of customer
spending between Rs.200-Rs.300 is 15%.
58
7. ANALYSIS:
7. INTERPRETATION;
The above pie-chart tells us about how long have a customer been using their
current network. Here, the 30% of consumer use their network more than 3 years.
Whereas 28% are using their network less than 1 year. And the 25% of consumer
use their network between 1-2 years, whereas 17% are using their network
between 2-3 years.
59
8. ANALYSIS:
8. INTERPRETATION:
The above graph indicates that the factor which is consider by the customer while
choosing any network. 54% of population consider data quality whereas 42% of
population consider call quality. 36% of customer consider flexibility of plans.
Whereas 40% of customer population consider the cheaper rates than competitors.
And 29% and 24% of customer consider customer services and other respectively.
60
9. ANALYSIS:
9. INTERPRETATION:
The above pie-chart shows that 70% of customer population are satisfied with
their current network. Whereas, remaining 30% are not satisfied.
61
10. ANALYSIS:
10. INTERPRETATION:
The above pie-chart convey that 51% of customer have changed their service provider using
mobile number portability. Whereas, 49% of customer haven’t changed their network service.
62
11. ANALYSIS:
11. INTERPRETATION:
The chart shows that 54 responded have change their services provider by using
mobile number portability. The major number of people port from other network
which is 22.2%. Vodafone and Reliance JIO network both has 16.7% equally. Also
BSNL/MTNL and Idea both has a equal number i.e. 14.8%. 9.3% of Airtel network
and less than 5% of Aircel services network.
63
12. ANALYSIS:
12. INTERPRETATION:
The pie-chart clearly shows that the major number of customer choose Airtel
network which is 29.1%. Whereas, 25.5% of Vodafone network . There comes
Reliance JIO network i.e. 23.6%. And Aircel and Other network both has 9.1%
equally. And Idea network has the least number which falls around less than 4%.
64
13. ANALYSIS:
13. INTERPRETATION:
The above graph shows that what was the reasons for shifting to a different
services provider. Here, 40.7% shifts due to network issues. Whereas,38.9% shifts
for data plans facility. The reasons like call drop and cheaper rates of competitors
both has 31.5% equally. Whereas, 33.3% is other reason to shift And 25.9% shifts
because of costly services.
65
14. ANALYSIS:
14. INTERPRETATION:
Here, in the above pie-chart shows 56% of customer says YES they shifted to JIO
network. Whereas, 24% says NO. And remaining 20% answered as MAYBE.
15. ANALYSIS:
66
15. INTERPRETATION:
The above graph gives us clear idea about the source from which customer came
to know about Reliance JIO. The major customer came to know through mouth
publicity which is 46%. Whereas, 38% from newspaper. And 36% of Other
sources and remaining 23% from Hoarding.
67
16. ANALYSIS:
16. INTERPRETATION:
The above graph shows what motivated the customer to shift to JIO. The major
number of customers where motivated due to unlimted data plan till 31st
December which is 47%. Whereas, 42% were motivated to shift the JIO network
to use as a secondary networtk. 38% feels that it provides cheaper rates than
competitors. 22% shifts due to Data speed and Call quality. Whereas, 20% of
population shifts due to Other reasons.
68
17. ANALYSIS:
17. INTERPRETATION:
In the above pie-chart 37% of major population said YES there buying decision
has changed. Whereas, 31% said NO and remaining 32% said Maybe.
69
18.
ANALYSIS:
18. INTERPRETATION:
70
The above graph shows that like of the customer while using the Reliance JIO.
65% like the Data services provided by Reliance JIO. Whereas, 48% like call
rates. 27% like Value added services and remaining 20% like Network coverage.
19. ANALYSIS:
19. INTERPRETATION:
71
Here, the above pie-chart shows that 44% of customer say YES they have called
the customer care at JIO. And remaining 56% says NO.
20. ANALYSIS:
72
20. INTERPRETATION:
The above chart shows that 18.2% called the customer care for value added
services. Whereas, 21.2% called for complaints and 25.8% called foe information
regarding new schemes. And the major people called for other queries which is
34.8%.
21. ANALYSIS:
73
21. INTERPRETATION:
The pie-chart shows that 73% of major population are satisfied with Reliance JIO services
and 27% are not satisfied with Reliance JIO.
22. ANALYSIS:
22. INTERPRETATION:
The above pie-chart shows what should be improved in Reliance JIO. 45% of customer want
improve in network coverage. Whereas, 27% want remove calling congestion. And remaining
28% of other.
74
23. ANALYSIS:
23.INTERPRETATION:
The pie-chart shows that 30% of major customer population says that Reliance JIO offer
Better scheme which other service providers are not offering. Whereas, 90% say Better after
sale services. 15% says Better network coverage. 10% say better connectivity and 19% says
other services.
75
24. ANALYSIS:
24.INTERPRETATION:
The above pie-chart shows that 77% of major customer says YES they recommend
the Reliance JIO to other. Whereas, 23% says NO.
76
5.1FINDINGS:
From this study of customer satisfaction towards JIO network, the researcher found that-
77
Reliance JIO possesses congestion free & wide network coverage, attractive
4G schemes & customer services as well as lifeline roaming free services
Customers are satisfied the 4G unlimited services as comparing to other
services
Average number of consumer call at Reliance JIO customer care the main
reasons about the queries and information regarding new schemes
While conducting the survey, I found that most of 73% respondent are
satisfied with Reliance JIO and 27% are not satisfied. Because still they have
network problem and calling congestion
The consumer in large need improvement in network coverage
It has been noted that the consumer said that Reliance JIO 4G offer Better
Scheme and Better After sale services as compare to other services provider
At last it can be said that there are a lot of scope of Reliance JIO market in near future
78
market in the hope that at least they will solve their problem or in search of all
in one pack and lead to customer satisfaction and increase their brand loyalty.
6.3 CONCLUSION:
Reliance JIO has become a very successful brand in India & providing
customer satisfaction is to be there main motive. It has everything the market,
marketing strategy, customers, free offerings, JIO effect and competitors
reactions, customer perception for the JIO offer. From the above collected data
and facts it is very clear that the market is effected by “RELIANCE JIO
EFFECT”
The JIO effect, has done its job in making market turbulent and placing
Reliance JIO as prominent alternate for voice and data at 4G speed.
The respondents from the survey are mostly youth ranging from 15- 25 years
of age that all are having high end mobile devices. They are the population
group who are using data and internet mostly for the communicating and
entertainment purpose. This is the most preferred targeted group who needs
“free” voice and data the Reliance has targeted the same.
The reliance JIO effect has set the world record for having JIO connection in
very small difference of amount, Reliance JIO was providing a “free voice
and data” till 31st DEC, 2016 it was a big loot offer for customers
It assists Reliance JIO to capture the greatest market share in the current trend.
And it can be survived in the market with its competitors for a long period and
also create a good image in the minds of customers.
If Reliance JIO provide data & voice in relatively cheaper price than
competitor to its customer that will satisfy their needs, it will enjoy brand
loyalty. Hence, Reliance JIO should focus on 100% customer satisfaction.
79
CHAPTER 6 : ANNEXURES
80
5. What factors do you consider when choosing any network?
o Call quality
o Data quality
o Flexibility of plans
o Cheaper rates than competitors
o Customer services
o Other
7. Did you ever change your service provider by mobile number portability?
o Yes
o No
81
9. If yes, then which services provider did you opt for?
o Vodafone
o Airtel
o Idea
o Aircel
o BSNL/MTNL
o Reliance
o Other
10. What was the reasons for shifting to a different service provider?
o Call Drops
o Costly service
o Network issue
o Data plans
o Cheaper rates offered by other network
o Other
11. You might be aware that JIO has launch full-fledged service and competitive
price, would you shift to JIO network?
o Yes
o No
o May be
12. From which source you came to know about Reliance JIO?
o News paper
o Mouth publicity
82
o Hoarding
o Others
14. Does bundled offer with mobile phone (offering free calls/ data) effect your
buying decision? You choose a handset because it has bundled offer, even though
you have a choice for a better phone? (similar price range)
o Yes
o No
o May be
15. Which service do you like most while using the Reliance JIO services?
o Data services
o Call rate
o Network coverage
o Value added services
83
o No
20. What do you think should Reliance 4G offer to you which other service providers
are not offering?
o Better connectivity
o Better scheme
o Better network coverage
o Better after sales services
o Other
84
21. Would you like to recommend others?
o Yes
o No
CHAPTER 7: BIBLOGRAPY
Websites
http://www.mbaskool.com/brandguide/telecom-service-providers/16942-reliance-
jio.html
http://www.mbaskool.com/brandguide/telecom-service-providers/501-idea.html
http://www.mbaskool.com/brandguide/telecom-service-providers/500-airtel.html
http://www.mbaskool.com/brandguide/telecom-service-providers/502-vodafone.html
https://www.slideshare.net/MARRIVINAY/reliance-jio-marketing-and-business-analysis
https://www.slideshare.net/9456807891/customer-satisfaction-towards-reliance-jio-project
http://ijrmbs.com/vol4issue3/ssalomi
http://www.trp.org.in/wp-content/uploads/2017/05/AJMS-Vol.6-No.1-January-June-2017-
pp.21-27
file:///C:/Users/shiva/Downloads/2-2-16-114
file:///C:/Users/shiva/Downloads/2-2-16-114
85