The Successful Business Model of Reliance Jio Decode – Detailed Explaination

It is the largest mobile network centre in India. It is the third-largest telecom operator in India with 42.62 crore subscribers. Its net income for the financial year 2020 was 12,537 crores. Thus this makes us keen to know the business model of Reliance Jio.

In this blog, we have discussed the business model of Reliance Jio in detail which includes its price strategy, product segmentation, competitor analysis, etc. But before we start with its business model let us know about Reliance Jio as a company.

About Reliance Jio

 

 

It was first started in the year 2007. Its headquarter is located in Mumbai Maharashtra India. Reliance Jio has a national Network which is LTE which covers all 22 Telecom circles. Jio offers a 4G network it also provides LTE voice-overs to provide voice service.

The Reliance business model is run and owned by Mukesh Ambani. The Jio business model is specified that giving free services to the customers will benefit them with more money as compared to the current other networks as charge prices, Jio provides free voice calls to customers. 

Reliance Jio was founded in the year 2007 by Mukesh Ambani. It was made publicly available on 5th September 2016 throughout the world.

What’s new with Reliance?

Here’s what was buzzing around Reliance recently:

Let’s now understand the target audience of Reliance better with the help of a buyer persona.

Buyer Persona of Reliance

A buyer persona generally refers to the detailed information of an ideal customer of a company. When it comes to Reliance, people from India use it the most. This buyer persona will help you understand the attributes of a regular Reliance user.

 

Let us now see the business model of Reliance Jio step by step.

 

BUSINESS MODEL OF RELIANCE JIO

The business model is used to determine a company’s plan for generating revenue. It determines the products or services the business plans to sell, its identified target market, and any anticipated expenses.

Reliance Jio used a loss-leading strategy which means it sold its products or services at a price lower than the actual price in the market. Reliance Jio initially started giving its users free of cost data and voice calls for a long period of time which helped them gain a large customer base and a higher market share.

Then later after the free data offer was over it started providing its customers with cheaper recharges which helped them to retain their customers.

Let us now see its business model by starting with its pricing strategy.

1. Price Strategy of Reliance Jio

Jio has adapted the best pricing strategy in the market. Jio modifies its pricing strategies every now and then to provide its customers with the best prices in the market. It provides its customers with the cheapest possible prices for its products and services in the market. This helps them to provide the best offers for their customers.

2. Promotion strategies of Reliance Jio

At a time when it comes to making constructive brand awareness, Reliance Jio has taken on a little bit of a hostile marketing strategy on radio, television,  magazines, newspapers, and various social media platforms like YouTube, Twitter, Facebook. This marketing is also used by film industry celebrities, it helps them in doing acting in advertisements and joining their brand to work with them.

Let us now see the product and service segmentation of Reliance Jio.

3. Product and service segmentation of Reliance Jio

Services

• JioPages – a web browser for Android devices 
• JioChat – instant messaging app
• JioCinema – online HD movie library
• JioCloud – cloud-based backup services
• JioHealth – health-related services app
• JioNews – Platform which provides the latest news
• JioMeet – video-conferencing platform
• JioMoney – online transaction app
• JioSaavn – app for music streaming in English and Indian languages
• JioSecurity – security app
• JioTV – TV Channels streaming service
• JioVoice – VoLTE phone simulator
• MyJio – manage Jio account and digital services associated with it

 

Products

• Mobile broadband – Its 4G broadband services started all over India in 2016. It offers vice services, instant messaging, and streaming movies.
• JioFiber – In 2018 it started testing new triple play fiber to the homer services which was known as Jio GigaFiber, which provide an internet speed ranging from 100 – 1,000 Mbit/s. It launched its services officially in the year 2019 as JioFiber for its third anniversary.
• JioPhone Next – On 24 June 2021, Mukesh Ambani announced the launch of JioPhone Next. It is a fully-featured Android smartphone co-developed with Google as part of its long-term partnership. The budget smartphone will be launched in India on 10 September 2021.
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Let us now see the competitors of reliance Jio.

Top Competitors of Reliance Jio

Here’s the list of top competitors of Reliance JIO:

1. Bharti Airtel
2. Vodafone Idea
3. BSNL (Bharat Sanchar Nigam Limited)
4. Tata Docomo
5. Aircel

Failed Campaigns of Reliance JIO

Reliance JIO more than often grabs attention with its unique marketing. But, there have been a few times when the campaign failed to connect with the audiences and gained backlash. 

Here are a few examples of failed campaigns of Reliance JIO:

• “Welcome Offer” extension: In 2016, Reliance Jio launched a welcome offer that provided free unlimited voice and data services for six months. The offer was a huge success and helped Reliance Jio to quickly acquire a large customer base. However, when the company extended the offer for another six months, it faced a lot of criticism from its competitors. The competitors argued that the extension was unfair and that it was stifling competition in the telecom market.
• “Happy New Year Offer”: In 2018, Reliance Jio launched a “Happy New Year Offer” that provided free unlimited voice and data services for the month of January. The offer was again a huge success, but it also led to a lot of network congestion. The company was unable to handle the increased load on its network, and many customers experienced call drops and slow data speeds.
• “Jio Diwali Dhamaka” offer: In 2019, Reliance Jio launched a “Jio Diwali Dhamaka” offer that provided a free JioPhone to customers who recharged with a Rs. 649 plan or higher. The offer was very popular, but it led to a shortage of JioPhones. Many customers who had recharged with the Rs. 649 plan were unable to get a JioPhone.
• “JioFiber” launch campaign: In 2020, Reliance Jio launched its fixed wireless broadband service, JioFiber. The company launched a massive advertising campaign to promote the service, but it faced a lot of criticism for its misleading claims. The company claimed that JioFiber would provide speeds of up to 1 Gbps, but many customers reported speeds that were much lower.
• “JioMart” launch campaign: In 2021, Reliance Jio launched its online grocery delivery service, JioMart. The company launched a massive advertising campaign to promote the service, but it faced a lot of criticism for its poor customer service. Many customers complained about long delivery times, missing items, and cancellations.

Lastly, we would recommend you watch this detailed video to discover various things you didn’t know about your telecom operator- Reliance Jio📲

With this, we come to the end of the Business Model of Reliance Jio. Let’s conclude this case study in the upcoming section.

Conclusion

As we wrap up our analysis of JIO’s impressive digital marketing strategy, it’s clear that staying up-to-date with the latest trends and techniques is key to success in the digital marketing world.

Whether you’re a marketing professional or just starting out, be sure to check out our free digital marketing masterclass to gain a solid foundation in the essentials of digital marketing.

Who knows, you might just develop the next big marketing strategy like JIO’s! Don’t forget to share your thoughts and comments on JIO’s strategy in the comments below.