International Marketing strategy for Reliance Jio

Presented by,

Viraj Bhagat 15-M-411

Shanishwar 15-M-443
Lokhande
Kavita Sundakar 15-M-537
Sagar Shah 15-M-522
Gautam Sheth 15-M-528

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Contents

Select any Indian company for creating an International Marketing plan

Product Selection for international marketing
Top Five Market Selection for international marketing
Global expansion & Market entry Strategy
First Most important international market for success
Competitors in market selected
Glocalisation & Business architecture
Tariff & Non Tariff Barriers and Entry Strategy
Customer Segmentation, Targeting & Positioning
Creating USP & Consumer connect
References
 Telecom Growth Before JIO

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Why Jio can go Global?
•Latest technology expertise

• 138.6 Million, country’s largest wireless data subscriber base.

•World’s fastest migration from free to paid services .

•Jio has built a next generation all-IP data network with latest 4G LTE
technology.

•It has built a future ready network which can easily deploy 5G and beyond
technology in the last leg.

•World’s largest mobile data consumption network – first Exabyte network in

the world

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Contd..

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Contd..

Financial Performance Reflects Business Potential

•Positive EBIT in the first quarter of commercial operations

•Customer growth and revenues reflect customer acceptance of Jio’s services.

•Jio has created a strong data network with infrastructure and backhaul for
offering wireless services, wireline services, FTTH, Enterprise offering, IOT
services and other digital services.

•Highest per capita data consumption at 9.62 GB/ user/ month.

•Working with the relatively new VOLTE technology, highest per capita voice
consumption at 626 minutes per month

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Contd..
As on 6th July, 2017 Update As on 30th Sept 2017 Update

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Product Selection for international marketing

Services: Products:

•4G LTE technology •Jio Cinema

•wireless services •Jio Music

•wireline services •Jio News

•FTTH •Jio TV

•Enterprise offering •Jio Magazines (Exclusive for Sim

Card Users)

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Contd..
Why the Above Products and Services?
•Jio not spent money on 2G & 3G

•Huge monetary investment to develop Futuristic technology – 4G network &

beyond.

•Other existing competitors had spent money on old services 2G and 3G and the
cost for upgrading to 4G or above technology is High for them.

•Differentiated by offering 4G at NIL prices which the competitor just cant afford
too.

•Globally, Telecom operators compete each other over Call Charges and not the
Data Charges, as Data Charges are generally high And prices of each service
provider vary marginally.
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Q3- For a product or product category chosen by you, select top 5 international markets for
Top Five Market Selection for international marketing
business. Give reasons for your selection.

•Sri Lanka – SAARC Member

•Afghanistan– SAARC Member

•Bangladesh– SAARC Member

•Nepal– SAARC Member

•South Africa– BRICS Member.

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Contd..
Any overseas investment has to be studied well:
•Economies of scale
•Competition
•Investment Criteria
•Legal benefits

•Forex Benefits (value of Rupee)

•Fibre Optical connectivity
•Global telecom competition in Voice Call Prices
India is a SAARC and BRICS member
Current reputation of India & Jio in telecom market
In fact Airtel is already present in Sri Lanka and South Africa.
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Global Expansion Strategy
Acquisition of Stake in Local telecom company
Partnership with Leading Telecom company
Enter solo (depending on the Law of the Land- if allowed) in Nepal and
Bangladesh since the Fibre Optical cable gateway for 4G technology is routed
through Bay of Bangal gateway but not facilitating Bangladesh and Nepal

Market Entry Strategies

Market Penetration strategy
Customer Oriented pricing
Buzz marketing

 JIO is already famous globally due to it’s superstar Entry in Indian telecom
market

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Contd..
Develop the Basics of 4G and beyond
technology instead of investing capital into
old 3G, 2G services

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First Most important international market for success
South Africa

Mobile Network Operator Primary Activity Website

Cell C (Pty) Ltd Mobile www.cellc.net

MTN Mobile www.mtn.co.za

Telkom S.A. Ltd Fixed www.telkom.co.za

Vodacom (Pty) Ltd. Mobile www.vodacom.co.za

Note:
•BRICS - 43% of the world population, having 30% of the world GDP and
17% share in the world trade.
•Vodafone already has stake in Telkom with 65% shareholding.

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Contd..
MTN STORY
•MTN has presence in over 20 African nations and in Afghanistan ( Benefit for
JIO)
•In 2008 talks of MTN with Bharti Airtel and Reliance Communications
• Airtel and MTN merger
•RIL and MTN merger (Biggest Player in SA)
•MTN: one-third revenues come from Nigeria, where it holds about 35% market
share.

AIRTEL SAGA in AFRICA

•Airtel Africa provides telecommunication services in 15 African countries.

•Nigeria is the most profitable market, followed by Ghana

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Competitors in South Africa
Mobile operator market share

Operator Number of subscribers Market share

Vodacom 32.12 million 37.7%

MTN SA 30.55 million 35.9%

Cell C 19.6 million 23.0%

Telkom 2.19 million 2.6%

MVNOs 650,000 0.8%

Competitor Strategy
Operator
Analysis
Criteria Vodacom MTN Cell C Telkom
Response to OTT Weak Weak Industry leader Moderate
Zero-rated service
Fair Innovative Innovative Moderate
offerings
Pricing Fair Fair Industry leader Innovative
Proritising Customer
Experience Industry leader Moderate Moderate Moderate
Management
Service
Industry leader Fair Moderate Fair
personalisation
Network quality of
Industry leader Moderate Weak Moderate
service
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Glocalisation & Business architecture

•Rapid Liberalization of Trade and Investment Environment

•Lower fees for Legal, accounting, management consortia and advertising

services.

•Fastest growing telecommunication industries with a growth rate of 45 %.

•Prevention strategy focusing all aspects of criminal justice.

•Urban renewal & redevelopment programs , also under –developed area &
community development projects.

•Government Commitment to Investment Facilitation.

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Product mix
•Wireless router – Jiofi •Music player – JioMusic
•Transfer content – JioSwitch •Instant-Messaging app – JioChat
Messenger
•Wallet app – JioMoney Wallet
•HD online video library – JioCinema
•Backup tool that is Cloud-based –
JioDrive •TV channel live service – JioTV
•Magazine and news aggregator – •Manage digital services and Jio account
JioXpressNews – MyJio
•Magazine e-reader – JioMags
•VoLTE phone-stimulator – Jio4GVoice

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Place , price & promotion

•Free internet wi fi services initially providing to selected areas of South

Africa.

•Low leadership & market penetration pricing

•All kinds of media to promote :Television, radio, newspapers, magazines, and

billboards and social media platforms including
Instagram, Facebook, Twitter and YouTube.

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Tariff & Non Tariff Barriers and Entry Strategy

South Africa as Member of WTO

•South Africa applies Most Favored Nation (MFN) rates to imports from the rest of the world. Tariff
rates are part of the Southern African Customs Union Arrangement (SACU).

•The South African International Trade Administration Commission (ITAC) is responsible for tariff
investigations, amendments, and trade remedies in South Africa and on behalf of SACU.

Screening of FDI
•Mergers and acquisitions in South Africa are subject to screening and approval under the Competition
Act of 1998.

Limits on Foreign Control and Right to Private Ownership and Establishment

•Currently, No limitations on foreign ownership.

•The Private Security Industry Regulation Act (PSIRA) which has passed in Parliament to become
law, has a clause requiring 51% ownership and control by South Africans.

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Contd..

•Business Registration
•Companies and Intellectual Property Commission (CIPC), which is a division
of the Department of Trade and Industry (DTI).
•South African Revenue Service (SARS) – www.sars.gov.za – to get an
income tax reference number for turnover tax.
•International Arbitration
•Arbitration in South Africa follows the Arbitration Act of 1965, which does
not distinguish between domestic and international arbitration and is not based
on UNCITRAL model law.

Jio’s Entry Strategy

•Join venture With MTN

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Customer Segmentation, Positioning

Customer
Customer Value Behaviour Mass People Behavioral Changes i.e.
Market
Shifting from Laptop, Desktop ,
Segmentation Television to Mobile Phones for
Movies, Work, Serials
Customer Life Customer
cycle Migration

Positioning

Reliance Jio is helping For Digitalisation by giving affordable mobile

service and data

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Creating USP

Wired Phone Free Sim

Card
Cable NET
Low Charges
Connection
for Data

Free Calling to Jio to Jio

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Consumer Connect & Targeting Consumer

•Jio Digital Store

•Availability At All Mobile Store

•Sponsoring Sports Team- Soccer, Cricket Team

•Off Line Activity Activation of New customer Malls , Colleges ,

Corporates

•CSR activity for South Africa – will Share 2% of Profit for CSR

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References

▰https://link.springer.com/article/10.1057/dbm.2010.21

▰https://www.mbaskool.com/brandguide/telecom-service-providers/16942-
reliance-jio.html

▰https://mybroadband.co.za/news/cellular/172592-vodacom-vs-mtn-best-and-
worst-mobile-network-in-south-africa.html

▰http://sami.co.za/images/SAMI_Business_Pack_V02.pdf

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Thank You