Reliance

Subject: Software Business

Presented by:Abhijit Borah

(11105981)

ContentIntroductionStrategy for marketingProblemSolution

IntroductionReliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The company operates in five major segments: exploration and production, refining and marketing, petrochemicals, retail and telecommunications. In 2002 Reliance Industry went on to trigger a revolution on mobile telephonyReliance Communications Ltd. (commonly called RCOM) is an Indian Internet access (commonly called "broadband") and telecommunications company headquartered in Navi Mumbai, India. RCOM is India's second largest telecom operator, only after BhartiAirtel. It is the 15th largest mobile phone operator with over 150 million subscribers. Established in 2004, it is a subsidiary of the Reliance Group. The Late Dhirubhai Ambani dreamt of a digital India — “Make the tool of information and communication available to people at affordable cost”.

Hierarchy Of Need ?

Esteem

Belonging

Safety

Physiological

Self actualization

1943 Maslow

Shelter

Food/Water

Internet/ Mobile Phone

2014

Strategy For MarketingReliance

Communication

Other Segment

Broad Band

Global Segment

Wireless Segment

Investment Segment

Reliance Communication

Reliance Tech Services

Reliance Internet Data Center (RIDC)

Reliance Globalcom

Reliance Telecommunication

Limited (RTL)

Competitors Aircel, Airtel BSNL Idea Loop Mobile MTNL MTS Ping Mobile S Tel Tata DoCoMo Tata Indicom Uninor Videocon Virgin Mobile (GSM & CDMA) and Vodafone.

Sales & Marketing StrategyPricing Strategy

Challenged conventional cost structures in the telecommunications industry

Broke the mould with a tariff that can be described as the most ambitious ever listed by a telecom company in India.Other operators aimed for the higher value market.

Reliance realized that there is a market in driving volumes and created a completely new market.

Offers free digital mobile phone unlimited free incoming calls billing at 15-seconds pulse rate, for a one-time

fee of Rs 3000

Value Added Service voice mail call waiting call hold call divert call identification call conferencing dynamic locking and text messaging were

offered for free. Free Internet service

Advantage over existing competition

Biggest entry barrier : Handset prices

Minimum handset cost – Rs 7500

This meant dealing with two suppliers:one for the serviceanother for the handset.

Access to a fancy handset without the initial price barrierAnd dealing with just one supplier

How Reliance manage the free handset

Built-in contract of three years for every customer

guaranteed cash flowsExclusive agreements with handset vendors like LG and Samsung.

High volumes : Rock bottom costs

Reduced the choice available to the customer to just two models per brand

ensuring mass production : further reduction in prices.

Path Breaking Strategy“No charge” for incoming callsOther competitors charged incoming calls at almost half the rates of outgoing callsNo implementation of CPP(Calling party pays)

How they manage such a low cost ?

High rental of Rs 600But 400 mins. Talktime

Low pulse rate15 secs. Compared to existing 1 min.

RIM to RIM 40 paise / min

Shift In StrategyPost-Paid to Pre-Paid.

Cash is collected beforehand Cost of collecting bills - which is 1 to 3 per cent of revenue –

vanishedPay Rs. 3,500 = Handset + Free Reliance Prepaid connection + Recharge vouchers worth Rs. 3,240Automatic Roaming – No Extra Cost

Centralized Operations

“80 per cent of our administration and operation is centralized. Compared to the best telecom networks in the world we have deployed only half the number of people per 1,000 lines making our human resources the highest productive resource.”

Cost Management

Economies of ScopeOptimum Utilization of Network

Reliance landline Broadband Internet Leased Line VPN (Virtual Private Network) IPLC (International Private Leased

Circuit) IDC (Internet Data Centre) services Centrex

What Other could not see ?While others saw weaknesses of India as a market – widespread poverty and low levels of telecommunication penetration –RIM realized that these actually were strengths which it could tap into.

RIM managers saw that telecommunications would be much valued by the poorer sections of society if it could be used to create opportunities and offered at affordable prices.

Customer Generation-Taping into internal Resource

Reliance targeted internally as it looked around for the first set of customers. Officials of Reliance

Infocomm realized that an employee base of more than 50,000 and a shareholder base of about 3.3 million was the best place to start as far as customers are concerned. Every employee was offered 10 connections at a discounted rate.Provide better Customer care support

Dhirubhai Ambani Entrepreneurship Programmed – A New Way to MarketThe Dhirubhai Ambani Entrepreneur Programmed began with an aim of enrolling 200,000 individuals who are committed to acquiring new customers and creating a new experience for them, based on flawless service and feelings of satisfaction.As a tribute to Dhirubhai Ambani, the acknowledged icon of a new entrepreneurial wave in India, Reliance Infocomm fostered a new breed of entrepreneurs, as channel partners, an unparalleled event in the history of Indian enterprise.

AdvertisementAdvertising was definitely a marketing strategy which complemented the unconventional channels of Reliance Infocomm. The Reliance mobile brand was branded as India Mobile to cash in on patriotic feelings. Bundling of handsets along with the service – a first time in India – allowed Reliance Infocomm to resort to a co-branding exercise with the handset makers.The advertisements announced that Reliance IndiaMobile was 'Kabhi mobile, kabhi computer' (Sometimes Mobile, Sometimes Computer).

Firstly Reliance built a huge public relations exercise around the launch of the product. The public relations gave much leverage to the advertising and gave rise to a word of mouth campaign.Secondly Reliance Infocomm utilized every media vehicle effectively.Thirdly, Reliance Infocomm relied on the passions of India, while framing advertisements.

Another important marketing strategy that Reliance Infocomm resorted to was the clear differentiation of the product by relying on data applications in addition to voice.Through RWorld– an inbuilt Java enabled data feature of all Reliance phones - the company guaranteed download speeds of up to 144 kbps, from an applications suite which has over 120 applications ranging from interactive Guides such as TV programm guides and City Guides, Live News and TV news clips from channels like NDTV, CNBC, Aaj Tak and India TV to contests, video songs, Ring Tones, Cricket Information, Women's World and KidzWorld.Product Innovations: Connecting with Every Section of the Society

Branded as IndiaMobile to cash in on patriotic feelings. Bundling of handsets with service. Reliance Infocomm branded mobile phone instruments. Advertisements based on Bollywood movies and cricket – pulse of India.Co-branding with mobile instrument makers – reduced ad and promo spend. Signages on Reliance Infocomm owned telecom towers.

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