Key Takeaways: -
- Reliance The emerging Telecom & E-commerce Giant is a strong promoter because of which it has the significant market and strong brand recall
- Reliance Jio has excellent 4G infrastructure across the country and has given Reliance an edge over its competitors in data connectivity and also in 4G voice.
- The marketing strategy of Reliance Jio is one of the biggest reasons for its success and aims at improving its value propositions in different dimensions.
“Change your strategy as trends change” is an excellent business prescription, and it is something that most of the largest and most profitable retail organizations, including Reliance the Emerging Telecom & E-commerce, follow this mantra of adapting to change and making new strategies accordingly.
Reliance Industry intends to be among the top 20 corporations in the world with refining and petrochemicals, and In the Indian market, it has introduced new era enterprises such as Reliance Jio and JioMart.
In a nutshell, to make easy understanding, Reliance Retail, which was launched in 2006, is the country’s largest retailer by revenue. It has a large number of physical locations across the country and serves millions of clients every day.
However, with Reliance the Emerging Telecom & E-commerce Giant, we will gather information while reading, so look for an introduction to RIL, Reliance Jio, now let us look for SWOT analysis as well as essential tactics, in the following sections of this blog. As you go through the blog various things describe how Reliance has been doing in the current state of the market and reliance on Jio’s success in the Indian telecommunications sector
Let’s have a discussion. Reliance Industry is the largest private-sector organization in India and a Fortune 500 company. Reliance’s product and service portfolio have an economic and social impact on practically every one of us daily. The largest corporation has evolved from a textiles and polyester manufacturer to a multifaceted business that includes entertainment, energy, retail, the food industry, and internet services. Dhirubhai Ambani founded the company in 1966, first in the textile industry. Then rapidly Reliance expanded into various sectors to become a company worth 15 billion dollars in 2002.
Furthermore “Reliance Industry,” has entered the red-hot online retail market, as internet retailing is the requirement of the time when people become aware of any firm. When it comes to the Reliance Industry, the company has previous e-commerce expertise with Ajio.com and Reliance Trends (meeting fashion industry). Reliance is in many fields but it dominated in many of them among there is petroleum refining, telecommunications.
Reliance Digital which started in 2007 which is one of the brands the company has is one of the biggest in its segment having more than 8000 stores all over India it offers 200 nationals as well as international brands providing consumers with a variety of assortments to look from. It has a 17 percent share in the electronic retail market which has made them a sale of over 44,625 crores in the fiscal year of 2019-20. Making it the second biggest market shareholder in India. Other than having its physical stores it also has an e-commerce platform on which it provides these retail services of its electronic goods. It has a 5% sales volume on its e-commerce platform. As of October 2021, Reliance Industry has a market capitalization of US$245 billion.
When RIL split in 2005, Jio was born. At the time, the company was known as Info Tel Broadband, but it is now commonly known as “Reliance Jio” (a dream project of Mukesh Ambani). It began with broadband services, progressed to 3G and 4G, and now uses e-marketing to expand its mobile products and services.
Initially, Jio created such severe competition that Airtel and Vodafone saw revenue decreases in the double digits. Lyf phones tried to join the market at the time with Jio Preview offerings like three months of free internet and free voice calls with SMS.
To know more about the leverage of e-marketing of Reliance Jio, click here- https://iide.co/case-studies/reliance-jio-marketing-strategy/
Jio also started with its broadband services namely as Jiofibre launched in 2019. It has acquired a market share of 14.7 percent which is a rapid increase within just 2 years and is in way of overtaking one of the largest telecom giants BSNL which has a market share of 21 percent. The platform provides various other services such as DTH services and many others to make its services more appealing. But keep its prices a bit high in the market than its competitors. As it provides many value-added services in a space of more than providing customers with more than just access to the internet.
Marketing Strategies of Reliance Jio
- Price–Jio – adopts price tactics as one of the most appealing strategies. Not only did the corporation provide a reasonable price for its different products for individuals, but it also dominated the trendy telecom industry. When Jio provided premium 4G services at low prices, competitors changed their pricing tactics as well. Jio’s most recent tariff offerings, on the other hand, have been changed.
- Products-Jio – provides telecommunications services as well as high-speed internet and exclusive discounts. It also provides broadband services with speeds ranging from 100 Mbps to 1 Gbps.
- Place-Jio – products and other digital items are sold out at numerous Jio outlets around India, thanks to a variety of widely circulated distribution channels. In a short amount of time, Reliance Jio stores have grown into India’s largest supply chain, transforming into an augmented distribution platform that includes a large number of national and worldwide personal brands.
- Promotion – Reliance Jio has used an aggressive marketing strategy to raise favorable brand awareness, including running ad campaigns on television, social media sites such as Instagram, Facebook, Twitter, and YouTube, as well as radio, newspapers, and magazines.
Swot Analysis of Reliance Jio
Strengths are described as appropriate activities or initiatives taken by any firm in its spectrum of operations that can give it a competitive advantage over its competitors. The following are Reliance Jio’s advantages:
- a comprehensive consumer acquisition plan
- a large customer base,
- For a better consumer experience, use cutting-edge technology.
- Reliance Industries, the parent firm, has given its continued support.
- Control and management of the brand.
- Rapid and extensive network.
- Under a single name, there are a variety of offerings.
Weaknesses are areas wherein the company or brand can improve.; here are a few of Reliance Jio’s weaknesses:
- Conflicts overpricing,
- Delay in bringing the product to market,
- Issues with activation
- Freebies aplenty
- Data connection is poor.
Opportunities are the exciting changes in the business environment that surrounds it that any company may take advantage of to increase its profits. Jio is currently seeking future growth by launching 5G and 6G technology at low pricing. The following are some of Reliance Jio’s major opportunities:
- Technology that will be consumed shortly,
- Inflation rates in various countries,
- Too-Good-To-Be-True Pricing Strategies, as well as
- Apps, as well as 5G and 6G technology, are on the rise.
Threats can be a range of factors in the business environment that are detrimental to a company’s growth; for example, Reliance Jio faces the following threats:
- Risks of losing consumers as the market is becoming more competitive and the pandemic has led to huge losses for Reliance as many of its stores remained close.
- Negative image and criticism are becoming a thing as rapidly Reliance is expanding in some spaces, they are not able to meet up in standards
- Unpaid services must be eliminated. It is one of the major issues that reliance faces in the current scenario.
- Business and marketing practices that are unethical. The rapid acquisitions have led to this as many companies are not working as profitable as they should be.
Comprehensive overview of Jiomart
JioMart started a POS(Point-of-sale) system installation process as well as a website for placing orders for Kirana (corner) retailers in early 2019. It’s currently available in Navi Mumbai, Thane, and Kalyan, but it’ll soon be available nationwide.
To achieve an expansion, Jio has identified four critical sources of strength:
- Increasing geographical reach as it expands its infrastructure at a rapid pace to have a presence in every region.
- Introducing completely new store concepts and distribution channels,
- Customer experience is being reinforced and improved, and
- Taking advantage of technology.
JioMart operates on an online-to-offline (O2O) business model, which means customers can use the app to buy items from nearby stores. It’s a platform for selling packaged products and cooking supplies to consumers.
This method enables all offline merchants to offer their goods on JioMart while also connecting with a big number of online shoppers.
As the oil-to-telecoms conglomerate prepares to launch its digital commerce venture, it is buoyed by the recent investment by Facebook, the social media giant.
The ecosystem of Reliance’s e-commerce operation JioMart is shown below.
JioMart is utilizing its entire ecosystem, which includes everything from its cash and importing unit for acquisition to exclusive brands, credit, stock and inventory management, demand production, and doorstep delivery.
This business model has made it more attractive and appealing to the consumer as the consumer can watch as well as they can feel the product, have a personal touch before buying it which has led to a rapid increase in the consumer base. In every category, the environment has become self-sufficient. As Jio Mart is in the various segment it is backed off by various offline stores which are spread across India to provide the people with the best products at the best affordable rates and accessibility to these services have made it much more successful than before.
The Foundational Plan
Reliance Jio has taken a simple approach, offering Kirana owners a choice of tempting discounts and incentives, such as pay-as-you-go plans and many more.
It also comprises several food-related items, such as unpackaged grains, where Reliance Jio hopes to offer its distinctive brand names, such as Good Life, at enticing discounts.
Best Farms, Masti Oye, Kaffe, Enzo, and other specialized labels have been urged to stockpile products from local wholesalers and markets, which JioMart would assume.
JioMart’s strategy is to attract middle-class families by creating a sense of unbundling and altering shopping behaviors.
Encourage fewer but speedier purchases, as well as discounts and coupons, while also avoiding the destruction of precious items.
According to the strategy, it would continue to expand its network in tier II and III cities across the country.
Reliance Jio began with a large investment and continues to develop stores in various regions throughout India. As Jio increases its business with creative e-marketing strategies, help, products, and services, it is been a terrific dynamic for Indian consumers. Reliance Jio entered the market with an aggressive pricing strategy by keeping its prices low from its competitors to a level to provide many things as freebies to its customers. Before Jio the average price for a Gb of data used to be Rs 229 but after its arrival, the prices fell to as low as Rs 10.9 for a Gb of data. Which is a 96 percent reduction in the data prices making India one of the cheapest markets when it comes to the term of data pricing. As the data got cheaper Jio expanded its infrastructure rapidly across Rural and Urban India to make the services more accessible which led to an increase in its user base rapidly. In the case of its e-commerce business, it is also expanding rapidly.
Because every development has both positive and negative consequences, Reliance Jio is no exception. To make its retail zeal a reality, Reliance Jio will have to compete with other deep-pocketed newcomers such as Amazon, Alibaba-backed Big Basket, and Ten cent-funded Udaan, all of which have significant market share. As the market is getting more and more competitive Jiomart has to come up with a new strategy to take on the existent players in the market. The competitors do offer a variety of discounts in many big sales such as Big Billion Days Sale, Great Festival sales and many more which last for a few days. Jiomart has to come up with these concepts to grow its e-market presence. Reliance overall has a great scope but its sheer size has made it difficult to remain dominant in all the markets it is being functioned upon but as Reliance grows to the heights and it has many opportunities ahead to grow more.