How reliance jio get the huge success in the market with their marketing strategies?

The reliance jio, We all are very familiar with this name.In the year of 2010 jio was founded by the Mr.Mukesh Ambani. who is the chairman, managing director and largest shareholder of Reliance Industries Limited.But it was commercially launched on 5th September 2016 and after their launching people got mad to take the sim and they provided a free subscription to their customers and other operators like Vodafone, Airtel, Idea, Aircel starts losing their customers, because all the users were port in reliance jio.

For his dream project, Mukesh Ambani described recently his phone company as the world’s largest start-up, entailing an initial investment of Rs.2.5 trillion.Mukesh Ambani is a successful businessman and he knows very well that if he really wants to get achievement in communication sector then he has to do something unique to acquire the huge number of users, and to recover their investment and he proved that by the success of reliance jio.And this is proved by the users of jio.According to the report of TRAI Reliance Jio user base grows to 108 million, total telecom subscribers 119 cr.

how did jio got the huge success?

Mukesh Ambani makes the very unbeatable strategy for their communication sector because existing operators like Airtel, Vodafone, Idea, Aircel have the 2G or 3G services and the speed of their networks are only 4tb/s but jio takes the entry with their updated technique of 4g service by making huge investment on it and the speed of their network is 40tb/s it means 10times more and this creates an entry barrier for other providers because this is not possible for other providers to get the 4G service and leaves the outdated service because they have already made huge investment on it.

Mukesh Ambani understood that in the 21st-century data becomes the oxygen for the people that’s why he is charged only for data and voice call, SMS and roaming were free and data is also provided with a nominal value.Which helps them to create a monopoly in their business.In the year of 2005 when both brothers got separated and reliance communication (RIL) was taken by the Anil Ambani, From that year Mukesh Ambani also want communication business.

Reliance jio’s Marketing Strategy:-

1) Exit Price Strategy

exit price strategy?

We will discuss this strategy in two points the 1st is old technology/outdated and the 2nd one is New technology.

Old technology-The Airtel, Idea and Vodafone are working in old technologies platform, Where consists-

  1. The high cost of capital.
  2. expensive technology.
  3. strong Govt. rules & regulations.

Due to the huge investment in old technology, It is not possible to enter in the new technology because it creates a strong exit barrier.

New Technology– And in the case of jio, They do not enter the old technology because they know very well that huge investment also required in old technology, so they why not enter the new technology and invest 2.5 lac crores directly to creates an entry barrier for other and entry barrier can be created only with the help of loss leading strategy.

2) Loss Leading Strategy

loss leading strategy of reliance jio

First of all, we have to understand the meaning of loss-leading strategy. loss-leading strategy means to sell a product in less than their manufacturing cost.For example -let the cost of product A is rupees 100 and other sellers sell in rupees 150 but you sell in just rupees 50 this said to be a loss-leading strategy.

Mukesh Ambani also applied this strategy to this project.This strategy helps the jio to achieve a huge success.Mukesh Ambani knows very well that in the 21st-century data becomes the oxygen for the people that’s why he is charged only for data and voice call, SMS and roaming were free and data is also provided with a nominal value.

3) Growth Hacking Strategy

reliance jio



Growth hacking strategy is based on the different stages:

  1. Acquisition-In the stage of acquisition seller tries to acquire the consumers of other’s service provider.Like jio gives the 6months free subscription to acquired the consumers from existing service provider.
  2. Activation-In this stage, When the consumer decides to change their service provider itself.
  3. Retention-The benefits of this stage are enjoyed by jio very well.In 31st Dec 2016, jio announced and extend their free subscription till 31st Mar 2017 as a happy new year offer.
  4. Referral- When your consumer turns into your promoter itself.
  5. Revenue- In starting Mukesh ambani never focused on revenue, They focused on consumers benefit.


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