JIO - (Joint Implementation Opportunities)

In the hyper competitive market of the Telecom sector in India Reliance JIO not only entered the game but changed the full game, successfully winning the game, giving digital oxygen(free data). While other telecom sectors of India were focusing on either data plans or calling/roaming plans, JIO entered the game with the whole new concept of exciting Packages, 100% free offers, New year offers, Jio dhan dhana dhan offers, Summer exciting offers and yes it is very typical of Indians that we get excited whenever we came to hear words like free, offers and off course we are exited when this offers comes on any occasion it seems a gift to us from that company.

However, if someone gives us everything free then that sounds suspicious!!So let´s see few figures before JIO entered Indian Telecom market-1. There were more than 1 billion mobile users in India, out of which only 34% were connected to the internet.2. Only 12 percent from these 1 billion used 3G data or above.

So when JIO entered in 83 days 50,000,000 Customer database and in 170 days it has 100,000,000 database, which is nearly 2 times of what Facebook, snap chat or watsapp did. Moreover, it shifted to 4G and now it is trying to move it to 5G network for us.

1 JIO users nearly consumes 6-7 times more data than any other users. Within few months people get so addicted using internet all the time that it is hard for them to leave that. Previously, there used to be special plans for unlimited calling only during night hours. Data consumption used to be so costly maybe we used to sacrifice downloading a song or watching videos in YouTube if we have to do a video chat with someone. Well, good new days are here.Jio came up with different marketing strategies, investing so much of money must not be a trial-error game-

1. Loss Leader Strategy- When a product is sold at loss, to attract more no. of customers, so that in future with huge user base it can recover it´ s loss. Many business like Amazon or Tesla used this strategy.

Reliance JIO invested 1,500 Billion to put this in perspective – this is more than two times the combined investment of Airtel, Idea, and Vodafone in the 4G Segment. The main investment of any telecom company was to laid the  optical fibre network and once it´s being laid the cost of operating is not very huge. Using simple math, you will be able to realize that if 60% of the people in India if they use 1GB internet per month then JIO can recover the initial investment in 3 years.

So, their focus was on undercut the market price by giving attractive discounts and free promotional Data and to get more and more no. of customers

attach to JIO services.

The word ´Volume´ played the major role in JIO.

2. Razor-blade strategy- in this strategy the razor will be given for free and then it will charge you for it´s accessories like how Gillette used to do.

After giving free data it started charging for JIO apps, LYF mobile phones and its recharges. When other companies used to charge around 4 times like retailers, JIO came up giving packages and more data like whole sellers' mindset. On an average in India a telecom company generates a revenue of around 150-160 over there JIO charged for 99 prime plans+ 1st recharge of 309, then the revenue is already recovered by 3 months plan.

The major consumption of data in India is for videos active user based generates more revenue now Hotstar, Netflix have already entered in India, we are more addicted to videos be it introducing a new cooking videos in YouTube or most trending song videos. In true sense bringing JIO in India made India much more digitized and people are more aware of their surroundings.

In an interview, he said, “I believe that if you create societal value, customer value and employee value, and if you focus on these, the economic return is a by-product.” Going by the current scenario, in which Reliance JIO is certainly creating societal and customer value, the company will very likely generate monumental revenues in the future.