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About Reliance Telecom.

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  1. 1. Reliance 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 telephony Reliance 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”.
  2. 2. Estee m Belonging Safety Physiological Self actualization Shelter Food/Water Internet/ Mobile Phone
  3. 3. Reliance Communication Other Segment Broad Band Global Segment Wireless Segment Investment Segment
  4. 4. Reliance Communicati on Reliance Tech Services Reliance Internet Data Center (RIDC) Reliance Globalcom Reliance Telecommunica tion Limited (RTL)
  5. 5.  Aircel, Airtel  BSNL  Idea  Loop Mobile  MTNL  MTS  Ping Mobile  S Tel  Tata DoCoMo  Tata Indicom  Uninor  Videocon  Virgin Mobile (GSM & CDMA) and  Vodafone.
  6. 6. Pricing 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.
  7. 7. 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
  8. 8. Biggest entry barrier : Handset prices Minimum handset cost – Rs 7500 This meant dealing with two suppliers: one for the service another for the handset. Access to a fancy handset without the initial price barrier And dealing with just one supplier
  9. 9. Built-in contract of three years for every customer guaranteed cash flows Exclusive 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.
  10. 10. “No charge” for incoming calls Other competitors charged incoming calls at almost half the rates of outgoing calls No implementation of CPP(Calling party pays) High rental of Rs 600 But 400 mins. Talktime Low pulse rate 15 secs. Compared to existing 1 min. RIM to RIM 40 paise / min
  11. 11. Post-Paid to Pre-Paid. Cash is collected beforehand Cost of collecting bills - which is 1 to 3 per cent of revenue – vanished Pay Rs. 3,500 = Handset + Free Reliance Prepaid connection + Recharge vouchers worth Rs. 3,240 Automatic Roaming – No Extra Cost
  12. 12. 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.”
  13. 13. Optimum Utilization of Network Reliance landline Broadband Internet Leased Line VPN (Virtual Private Network) IPLC (International Private Leased Circuit) IDC (Internet Data Centre) services Centrex
  14. 14. 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.
  15. 15. 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
  16. 16. Dhirubhai Ambani Entrepreneurship Programmed – A New Way to Market The 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.
  17. 17. Advertising 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).
  18. 18. 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.
  19. 19. 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
  20. 20. 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.