The presentation deals with Reliance JIO Infomm Ltd. In this case dealt with communication strategy of JIO and of its competitors such as Airtel, Vodafone and Idea. We also discussed the distribution strategy of JIO and its competitors Airtel, Vodafone, Idea and Tata Docomo. Next, we anaylsed the survey we undertook with a small sample size of 100 people wherein we prepared a positing map for JIO and for its competitors, we also looked at the factors affecting consumer preferences in this sector. At last we discussed what went wrong for JIO, what went right and what suggestions to give to JIO to improve upon.
2.
Objectives of the presentation
Communication of JIO
Communication of Competitors
Analyze the Distribution Network of JIO Infocomm Ltd
Distribution Network of Competitors
Market Analysis ( Analysis of Survey)
Suggestions for JIO
What lies Ahead for JIO
Questions & Comments Session
3.
General Overview
Industry forecast
Established in 2016
User base of 130 Million within 1 years
Wholly owned of Reliance Ltd
Overall Market Share of 13.9%
Current ARPU of 156.40 per month
4.
Communication Channels of JIO
Celebrity Endorsement
Hoardings
Print advertisements
Television advertisements
Word of mouth
Roadside stalls
5.
Communication Strategies of JIO
Promotional offers - ‘JIO Preview Offer’, ‘JIO Welcome Offer’ etc.
Low tariff plans – free calls
Easy procurement of connections
Event sponsorships
Partnerships with Apple and Amazon
Smart phone devices – Reliance LYF
6.
Communication Channels of Vodafone
Television advertisements – ZooZoos
Celebrity endorsement
Print Media
Event sponsors – IPL2
Cricket Team sponsors
Hoardings, Billboards
Internet
Merchandising
7.
Communication Channels of Airtel
ADVERTISING
• Broadcast Media - Television Ads -
Sab kuch milega, Sabko milega, Har
ek friend zaruri hota hai
• Display Media – Billboards, Posters
• No Celebrity endorsements
Sales Promotion – Airtel Prepaid
Promise @ Rs448
Events and Experiences - ADHM
Public relations
Mobile Marketing
Direct and Database Marketing
Online and Social Media Marketing
8.
Communication Channels of Idea
Television advertisements
Celebrity endorsements
Print Media
Event Sponsors – 54th Filmfare Awards
Hoardings
Social Media Advertising
10.
Distribution Network of JIO Infocomm Ltd
Total Three level Distribution
Network
One Level Distribution
Two Level Distribution
Three Level Distribution
One Level
Two Level
Three Level
11.
One Level Distribution
Company
JIO’s FSE
Consumer
Types of JIO’s One Level Distribution
Home Delivery
Authorized JIO Outlets
Promotional Stalls
12.
Two Level Distribution
Types Two Level Distribution
Reliance Digital
Reliance Xpress
Reliance Xpress MINI
Company
JIO’s FSE
Retailers
Consumer
14.
Airtel Distribution Network
Leading Telecom Company in India
Market Share of 29.80%
2017 ARPU dropped by 2% to 145 from 188
Margin to the distributor-2%
Retailers 2.5% per recharge
Acquired Telenor in 2017
Distribution Network
Urban Territory
Rural Territory
Types of Channel Distribution
Airtel Authorised Outlets
Recharge only shops
Recharge and Sim providers
Mobile phone and accessories shops
Kiraana Shops
Stationery shops
Pan Shops
Road Side stalls
Distributor
FSEs
Retailers
Customers
Urban Trade Local Trade
Rural
Distributor
Rural FSEs
Rural
Retailers
Customers
Company
FSE
Consumer
Urban Direct Trade
15.
Vodafone Distribution
Started operations in 2007
Second Largest in telecom Industry
Current ARPU - 140
Most Comprehensive Distribution
9800 Retail Stores
Market Share of 17.68%
Merger with Idea Cellular
Margin to the distributor-1.75%
Margin to the retailer-2.5%
New Market Share of with 33.88%
Types of Vodafone Channel
Indirect Channel
Exclusive Retail
Direct Channel
Modern Trade
B2B Business
Vodafone
Distributor
Retailer
Customer
Indirect Channel
Tier 1 (Urban)
16.
Vodafone Distribution
Indirect Channel
Tier 2 (Rural)
Exclusive Retail
Vodafone Store
Service
Advantage
Smartphone
Homes
Vodafone Mini
store Urban &
Semi Urban
Low Cost
Entrepreneu
r Run Model
Vodafone Mini
Store Rural
Pop up
Recharge
Direct Sales
Agent
Tele Calling
Super-Call Centre
Direct Channel
17.
IDEA Distribution
Third leader in telecom Industry
Aditya Birla Group owned
Covers 76% of all India
population
Market Share of 16.20%
Idea Store
customer
Direct Channel
Tier1 (Metropolitan)
Indirect Channel
Rural
Idea
Distributor
Retailer
Customer
18.
TATA DoCoMo Distribution
Eighth leader in telecom Industry
Tata Group owned
Market Share of 3.81%
Post-paid Detailed Channel
DTA
DST
Modern Trade
Exclusive Hubs
Prepaid Channel
Retailers
Modern Trade
Exclusive Hubs
DoCoMo
Store
FSE
customer
Direct Channel
Indirect Channel
Rural
DoCoMo
Distributor
Retailer
Customer
19.
Jio’s Market Analysis
Total Number of people surveyed: 99
Total Number of people using secondary connection :66(66.67%)
Total number of people using Jio’ service : 51
53%47%
Jio users
Primary
connection
secondary
connection
9%
36%
43%
12%
Single connection
market
Jio
Vodafone
Airtel
Others
31%
25%
29%
15%
Market share
Jio
Vodafone
Airtel
Others
20.
Major findings of the survey:
People use Jio’s service as mostly a secondary connection.
The time when the services are consumed the most is from 6.00 pm to 6.00 am.
Even after the launch of Jio People haven’t changed their prior connection, rather
they have acquired it as a secondary connection (Proved by Hypothesis Testing Below)
Almost all the people surveyed prefer a bundled plan (i.e. plans like Rs.399,Rs 349
etc.)
Network which was being used by the people prior to the launch of jio, is still being
used as a second connection.
24.
Hypothesis Testing
p̂ : sample proportion of people who have changed their service provider to Jio.
Null Hypothesis H0 : Majority of people have not changed their service provider to Jio.
Alternative Hypothesis Ha : Majority of people have changed their service provider to Jio.
H0 : p<=0.5
Ha : p>0.5
Decision Rule : Reject null if Z > Zα, n-1
Do not reject if otherwise.
25.
Hypothesis Testing
n = 95, p0 = 0.5, p̂ : 0.211, α = 0.05
SD = √(0.5x0.5/95)
SD = 0.05129892
z = (p̂- p0)/ SD
z = (0.211-0.5)/√(0.5x0.5/95)
z = -5.6346 > 1.645
So Ho is rejected.
Hence we can say that majority of people did not change their service provider to Jio after launching of Jio.
26.
What Went Right
Acquired customers via free services
Pricing of Plans
Consumer Retention
Proper Communication in Urban Areas
Equipped for future as it is a 5G ready network
Consumer mindset “wireless services are inflationary by default” changed
27.
What Went Wrong
Calls Drops still persistent
Call Connecting time
Cannibalized Local Retail Segment (Post SIM Purchase)
Rural Subscriber base only 5.72%
Breach of Consumer Data hurting the Brand
Customer care issues
Voice clarity issues
Airtel
28%
Vodafone
24%
Idea
22%
JIO
1%
Other
25%
RURAL MARKET SHARE
Source: Business Standard
28.
Recommendations
Focus more on Local Retails segment
Better Promotional Plan
Improve Brand Recognition in Rural Areas
Focus on Rural People
Improvement in Customer care services
Change bandwidth when consumers are Indoors
Disruptive Block chain Technology
Capitalize on POP UP coupons plans for rural
Populations
Introduce cheaper plans with better Benefits for
Rural Populations
Should focus on Stability, Speed and Security
Should focus on becoming primary service
provider
2.401.15 -
1.96
35.02
21.95
26.76
17.50
23.00
11.6711.31
9.15
25.30
45.28
28.28
25.89
36.33
4.17
43.87
16.17
12.39
5.755.62
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Delhi
Mumbai
Chennai
Kolkata
Maharashtra
Gujarat
A.P.
Karnatka
T.N.
Kerala
Punjab
Haryana
U.P.(W)
U.P.(E)
Rajasthan
M.P.
W.B.&A&N
H.P.
Bihar
Orissa
Assam
N.E.
J&K
Circle-wise: Number of Subscribers as of July 2017 (in
millions)
29.
What lies ahead for JIO
Trials of Fibre to the Home
Face stiff competition because of Mergers
Increase in ARPU
Should focus on giving back to investors
Launch 5G before any competitors do
30.
Key Takeaways
Effective Communication Important for any company
Due Importance to Rural Areas
Right product can inflict fear in competitors
Think for Consumers, Profit will surely follow.
