market capturing strategies of reliance industries new

8/8/2019 Market Capturing Strategies of Reliance Industries New

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MARKET CAPTURING STRATEGIES OFRELIANCE GROUP

-Thanigaivel.R

-Ritesh Kumar

-Abishek Verma

-Sujata V.

-Swati Chaudhary


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RELIANCE

COMMUNICATIONS


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A DREAM COMES TRUE

Make the tools of information and

communication available to people at an

affordable cost. They will overcome the

handicaps of illiteracy and lack of mobility

"Make a phone call cheaper than a postcard and

you will usher in a revolutionary transformation

in the lives of millions of Indians"


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CURRENT SCENARIO

Second largest Mobile Operator in India with109.15 Million Subscribers

Profit after Tax of Rs 5020 Millions for the year

endedM

ar2010. Offers complete range of telecom services

covering mobile and fixed line telephony, includingincludes broadband, national and internationallong distance services and data services.

Global optic fibre network of 52,000 kmsspanning four continents (acquired Flag Telecomin January 2004)


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STRENGTHS

Offers lowest call rates of 50p per min and Rs1 for3 mins pulse for both local and STD.

Offers Unlimited free plans.

SMSs charged at 1p. No extra charges in roaming

Offers seamless inter-standard internationalroaming service - 1World.1Number, with single

number on international CDMA and GSMnetworks.

Economically strong


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PENETRATION PRICING

On January 01 2006 Reliance Infocomm launches"One Nation, One Tariff" to enable Reliance IndiaMobile prepaid users to call anywhere in India atRe one per minute

On July 03 2006 Reliance Communicationslaunches 'Hello Capital Plan' to enable itssubscribers in 19 state capitals to call each otherat the local call rate of 40 paise per minute.

On July 19 2006 Reliance Communicationsslashes ILD (International Long Distance) rates byup to 66%.


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On May 22 2007 RCOM slashes roamingrates by as much as 70 percent.

On May 25 2007 Reliance Communications

launches unlimited calling between CDMAcustomers.

In October 2009, Rcom introduced flat 50p

per minute.

Reliance Communications on Nov 27 2009

introduced one paise per SMS for both GSM

and CDMA customers


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CHEAP HANDSETS

Introduced Monsoon Hungama scheme on July

1 2003, Mobiles sold at Rs 501, More than 1

million handsets sold in 10 days.

On May 14 2008 Reliance Communications

launches Classic Colour Bonanza - Colour

handsets @ Rs 1234.

On May 2 2008 A Classic Bonanza Reliance

Communications unveils handsets @ Rs 777.


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MEMORABLE ADVERTISEMENTS

Sehwag ki maa

Bol India bol

Simply Reliance Simply unlimited


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VALUE ADDED SERVICES

R World, the GPRS service of Reliance Communications

Free Facebook at o.facebook.com

Reliance Communications launches Netconnect

Broadband Plus- Indias fastest wireless internet service Reliance Mobile to go LIVE with all ICC World Cup T 20

matches on R World VAS Deck

Reliance Infocomm introduces R World in Hindi to

become the world's first operator to offer mobile dataservices in more than one language on the same

handset.


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Mobile Radio

Unlimited games

Cricket dhamaka

Nse-mcx quotes

Astro-yogi pack

A bit of something for everyone


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INELASTIC DEMAND AND HUGE SUNK

COSTS

Communication market has highly inelastic

demand in short run.

Low cross price elasticity in short run Changing Operator Changing Contact

Number

Competitions respond to price changesimmediately, rendering cross price demand

inelastic also in long run.


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OPPORTUNITIES

Introduction ofMobile Number Portability within ayear

Reliance introducing 3G services in 13 circles,

which includes Delhi,M

umbai and Kolkata beforethe year end.

Increase in the usage of smart phones

Only 635 million mobile users in India as ofMar2010, includes people using more than 1number

Possible Introduction of 4G bandwidth frequencies


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THREATS AND WEAKNESS

Inefficient Network Coverage

Presence ofMultinationals like Vodafone and

Uninor Stiff competition from local brands like Airtel,

Tata Teleservices, Idea

Introduction ofMNP, renders market highly

elastic.


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CURRENT SCENARIO

Present in more than 85 cities across 14 states

in India

Reliance Freshs footprint now spans a networkof a huge number of stores

Reliance Retail posted Profit After tax of Rs

18.22 crore in the year ended Mar2010


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STORES


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STRATEGIES

Targeting Tier 2 and Tier 3 cities, Reliance fresh is present inRohtak

Perception of the name Reliance Fresh, i.e., products arefresh from the farms

Promotes its own private label brand Reliance Select

Adopted a business model of operating through small andmedium size stores.

Follows the concept of a neighbourhood store. RelianceFresh has more than 100 outlets in the national capitalregion.

Offers huge discounts, schemes like Price of the Day,bundles products together at cheaper price

Always buys directly from the farmer, almost never from themandi(wholesalers)


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Vertical glow sign outside the store -- as typically seen in petrol

pumps. Not seen till now in grocery stores. Increases visibility of

stores in by-lanes --where visibility is limited to just 2-3 stores

from the main road. Products available listed on the glow sign


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The consumer has three options in cereals & pulses branded,

store brand Reliance Select or packaged unbranded


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Layout and Ambience

Well-lit, Neat,

Bright, Easy To Read

Signage


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INEFFICIENT SUPPLY CHAIN IN

INDIA


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RELIANCE OWN

LOGISTICS

RELIANCE FRESH OUTLETSRELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS

PROCESSING

UNIT/POINT

COLLECTION

POINT/UNIT

FARMERS

CATEGORY 1

FARMERS

CATEGORY 2

FARMERS

CATEGORY 3


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ORGANISEGED RETAIL CHAIN

FARM COLLECTION IN CRATES TRANSPORTATION

PACKAGING

RETAIL OUTLET


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STRENGTHS

Brand value of Reliance, One of the most trusted brands

in the world.

Economies of Scale, a huge number of reliance fresh

outlets across the country. Huge economic power of Reliance, Reliance plans to

invest in excess of Rs 25000 crores in the next 4 years

in their retail division.

Perception of the name Reliance Fresh, products arefresh from the farms

High cross price elasticity, with respect to other retail

chains, all the retail chains are close substitutes.


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KEY GROWTH DRIVERS

Growing Economy

Consumption Boom

Rising Income levels

Rise in Working Population

Increasing Nuclear Families

Changing Food Behaviour

Profusion of Brands

Change in Indias Socio - Economic Structure


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OPPORTUNITIES

Increase in purchasing power of large section

of Indian population

Introduction of Goods and Services Tax

Introduction of new Direct Tax Code.

Reliance Retail has entered into an alliance

with Apple for setting up a chain of Apple

Specialty Stores branded as iStore, starting

with Bangalore.


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THREATS

Other retail chains such as Big Bazaar, More,

Vishal Mart

Foray of Global Chains like Walmart into India.

Governments Anti Trust regulations.

Opposition from small scale retailers.

Opposition from Communist Party of India, andother regional political parties

Absence of structured Supply Chain in India


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market capturing strategies of reliance industries new

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