AN INTERIM REPORT ON:
ANALYSIS OF JIO PHONE DISTRIBUTION WIDTH & DEPTH AND MEASURES TO
IMPROVE RETAILER PARTICIPATION
By:
Aniket Joshi
17BSP0339
At
Navi Mumbai
Guided by:
Faculty Guide: Company Guides:
Prof. Arijit Bhattacharya Mr. Chandan Suri
Department of Marketing Vice President
IBS Mumbai Business Operations Centre
Reliance Jio, Navi Mumbai
Mr. Amit Tewari
Lead Channel Operations
Business Operations Centre
Reliance Jio, Navi Mumbai
Date: 19th April, 2018
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AN INTERIM REPORT ON:
ANALYSIS OF JIO PHONE DISTRIBUTION WIDTH & DEPTH AND MEASURES TO
IMPROVE RETAILER PARTICIPATION
By:
Aniket Joshi
17BSP0339
At
Navi Mumbai
A report submitted in partial fulfillment of
the requirements of PGPM Program of
IBS, Mumbai
Date: 19th April, 2018
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INTRODUCTION:
ABOUT THE INDUSTRY:
Introduction:
India is currently the world’s second-largest telecommunications market with a subscriber base
of 1.19 billion and has registered strong growth in the past decade and half. The Indian mobile
economy is growing rapidly and will contribute substantially to India’s Gross Domestic Product
(GDP), according to report prepared by GSM Association (GSMA) in collaboration with the
Boston Consulting Group (BCG).
The country is the fourth largest app economy in the world. The liberal and reformist policies of
the Government of India have been instrumental along with strong consumer demand in the rapid
growth in the Indian telecom sector. The government has enabled easy market access to telecom
equipment and a fair and proactive regulatory framework that has ensured availability of telecom
services to consumer at affordable prices. The deregulation of Foreign Direct Investment (FDI)
norms has made the sector one of the fastest growing and a top five employment opportunity
generator in the country.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are
expected to be created due to combination of government’s efforts to increase penetration in
rural areas and the rapid increase in Smartphone sales and rising internet usage.
Market Size:
The mobile industry is expected to create a total economic value of Rs 14 trillion (US$ 217.37
billion) by the year 2020. It would generate around 3 million direct job opportunities and 2
million indirect jobs during this period. India’s Smartphone market grew 14 % year-on-year to a
total of 124 million shipments in 2017.
Rise in mobile-phone penetration and decline in data costs will add 500 million new internet
users in India over the next five years, creating opportunities for new businesses. The monthly
data usage per Smartphone in India is expected to increase from 3.9 GB in 2017 to 18 GB by
2023.
Data usage on Indian telecom operators' networks (excluding Reliance Jio), doubled in six
months to 359 petabytes or 3.7 million gigabytes per month as 4G data usage share increased to
34 % by the end of June 2017$. According to a report by leading research firm Market Research
Store, the Indian telecommunication services market will likely grow by 10.3 % year-on-year to
reach US$ 103.9 billion by 2020.
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Road Ahead:
India will emerge as a leading player in the virtual world by having 700 million internet users of
the 4.7 billion global users by 2025, as per a Microsoft report. Internet economy expected to
touch Rs 10 trillion (US$ 155 billion) by 2018, contributing around 5 per cent to the country’s
GDP. With the government’s favourable regulation policies and 4G services hitting the market,
the Indian telecommunication sector is expected to witness fast growth in the next few years.
The Government of India also plans to auction the 5G spectrum in bands like 3,300 MHz and
3,400 MHz to promote initiatives like Internet of Things (IoT), machine-to-machine
communications, instant high definition video transfer as well as its Smart Cities initiative. The
Indian mobile phone industry expects that the Government of India's boost to production of
battery chargers will result in setting up of 365 factories, thereby generating 800,000 jobs by
2025.
ABOUT THE COMPANY:
Introduction:
Reliance Jio Infocomm Limited or Jio is an LTE mobile network operator in India It is a wholly
owned subsidiary of Reliance Industries headquartered in Navi Mumbai, Maharashtra that
provides wireless 4G LTE service network (without 2G/3G-based services) and is the only
'VoLTE-only' (voice over LTE) operator in the country which lacks legacy network support
of 2G and 3G, with coverage across all 22 telecom circles in India.
The services were first beta-launched to Jio's partners and employees on 27 December 2015 on
the eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance Industries, and
later services were commercially launched on 5th September 2016.
Product Range of the Company:
JioPhone:
On 21 July 2017, Jio introduced its first affordable 4G feature phone, powered by KaiOS, named
as JioPhone. The price announced for it is Rs 0 with a security deposit of Rs. 1500 which can be
withdrawn back by the user by returning the JioPhone at Jio stores only after three years. This
phone was released for beta users on 15 August 2017 and pre-booking for regular users started
on 24 August 2017.
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4G Broadband:
The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government. Jio offers fourth-generation (4G) data and voice
services, along with peripheral services like instant messaging and streaming movies and music.
The company has a network of more than 2,50,000 km of fiber optic cables in the country, over
which it will be partnering with local cable operators to get broader connectivity for its
broadband services. With its multi-service operator (MSO) license, Jio will also serve as a TV
channel distributor and will offer television-on-demand on its network.
LYF Smartphones:
In June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G
handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that it
would be launching its own mobile handset brand named LYF.
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance Retail. Three more handset models have
been released so far, namely Water 2, Earth 1 and Flame 1.
Jionet WiFi:
Prior to its pan-India launch of 4G data and telephony services, Jio has started providing free Wi-
Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat,
and Visakhapatnam in Andhra Pradesh, Indore, Jabalpur, Dewas and Ujjain in Madhya Pradesh,
select locations of Mumbai in Maharashtra, Kolkata in West Bengal, Lucknow in Uttar Pradesh,
Bhubaneswar in Odisha, Mussoorie in Uttarakhand, Collectorate's Office in Meerut and at MG
Road in Vijayawada among others.
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches. Jionet was made available in Wankhede
Stadium (Mumbai), Punjab Cricket Association IS Bindra Stadium(Mohali), Himachal Pradesh
Cricket Association Stadium (Dharamshala), Chinnaswamy Stadium (Bengaluru), Feroz Shah
Kotla(Delhi), and Eden Gardens (Kolkata) in India.
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Jio Apps:
In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its upcoming
4G services. While the apps are available to download for everyone, a user will require a Jio SIM
card to use them. Additionally, most of the apps are in the betaphase. Following is a list of the
apps:
MyJio - manage Jio account and digital services associated with it
JioTV - live TV channel service
JioCinema - online HD video library
JioChat - instant messaging app
JioMusic - JioMusic Helps In Listening The Music In Different Languages And To Save
Offline
Jio4GVoice - VoLTE phone simulator
JioMags - e-reader for magazines
JioXpressNews - news and magazine aggregator
JioSecurity - security app
JioCloud - cloud-based backup tool
JioMoney Wallet - online payments/wallet app
JioSwitch - To transfer content Between Android To Android, Android To iOS, Android To
JioPhone, iOS To JioPhone, iOS To iOS And JioPhone To JioPhone
JioNet - connect to JioNet Wi-fi
JioFi:
Jio has also launched Wi-Fi routers by the name JioFi.
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COMPETITIVE SCENARIO:
Mobile data consumption in India surpassed the combined usage of the US and China in 2017, a
year that saw the landscape of the telecom sector being altered with bitter competition and
setting-in of the much awaited consolidation phase. With latent demand for data fuelling the
digital economy, 2018 could be the growth year for the sector where investment of around Rs.3
lakh crore is estimated to be made in next two years.
Tatas have gifted away their telecom business to Bharti Airtel, billionaire Mukesh
Ambani's Reliance Jio has acquired spectrum, mobile-phone towers and fibre assets of his
brother Anil Ambani's Reliance Communications Ltd. Vodafone India and Idea have merged to
become the country's largest operator. Airtel bought Telenor's ailing Indian subsidiary, Telenor
India, as also Tikona Digital Network.
The Indian telecom sector, second only to China with its massive subscriber base of 1.1 billion
users has seen severe bloodletting for most part of the year as free voice calls and dirt cheap
data ushered in by Reliance Jio reined in tariffs, cheering consumers. Jio has propelled India to
the top position in terms of mobile data consumption with 150 crore gigabytes per month,
surpassing the combined 130 crore gigabytes mobile data consumption of the US and China.
Embattled Reliance Communications (RCom) has completed merger of Sistema Shyam mobile
business with it but has failed to proceed with the merger deal with Aircel. RCom has announced
the closure of voice business, and Aircel has closed services in six circles. The year 2017 has
seen Idea and RCom reporting their first-ever consolidated loss (for the quarter ended December
2016), and Bharti Airtel sustaining steep fall in profits. The telecommunication companies
blamed Jio's free offers for the haemorrhage.
While the industry gravitated towards Internet-based technology, the Telecom Regulatory
Authority of India has cut mobile call connection charges and announced that the rates will be
made nil by 2020. The move is being seen as a step to encourage making phone calls using
internet protocol. The regulator has also stood firm on its stand to keep Internet open, even as the
US rolled back net neutrality regulations. Other regulatory moves including tightening call
quality norms and proposal to ease spectrum caps will continue to play out in the market in 2018.
Another area to watch out would be access of satellite phone services for consumers especially
during air travel. India's telecom sector is also expected to make significant progress for
deployment of 5G services in 2018. With Internet of Things, Artificial Intelligence, drones and
robots promising to fuel future demand for high-speed data, it may just be a matter of time before
the industry -- with fewer players -- returns to its trademark growth.
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OBJECTIVE OF THE PROJECT:
The SIP Project will aim to deliver useful insights to the Organization in terms of an Analysis of
Width and Depth of Distribution (for the areas being considered) and suggest measures which
can be taken by the Organization in order to improve the Retailer Participation for Jio Phones.
DESCRIPTION OF THE SIP PROJECT:
The analysis of Jio Phone Distribution Width & Depth will deal with the determination of
number of stores with Jio Phone availability and stock of the number of Jio Phone units per
Retailer outlet respectively (within the sample). This analysis will be carried out after data
collection during the Market Research Survey.
The measures to improve Retailer Participation will be identified during the Market Research
Survey by analyzing the relationship between the Distributors and Retailers. This analysis would
also involve the evaluation of Retailer Satisfaction and would demonstrate the importance of
each and every participant involved in the Supply Chain starting from the Distributor till the
product reaches the Retailer.
The relationship of Distributor’s Associates with the Retailers and the impact of this relationship
on the Retailer with respect to pushing Jio Phone Sales will also be analysed.
The process would involve analysis of Quantitative Data obtained during Market Research
Survey and Conversion of Qualitative Data into Quantitative Data (measurable) by using
appropriate scale of measurement.
The purpose and need of this SIP Project will be defined by the project findings and conclusions.
These findings and conclusions will make an attempt to provide better insights to the
organization with respect to the company’s relationship with the Retailers and the willingness of
a Retailer to continue business with the organization as well as to push Jio Phone Sales.
PROGRESS OF THE WORK DONE TILL DATE:
DETERMINATION OF SAMPLE SIZE:
A total of 15 Areas of Mumbai would be covered in this survey where in the sample size for the
number of retailers would be 15-20 Retailers.
Out of 15 Areas, 2 areas have already been covered namely Thane & Mulund.
DATA COLLECTION METHOD:
The Quantitative and Qualitative Data would be collected with the help of Market Survey
Questionnaire.
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DATA REPRESENTATION TECHNIQUE:
The data representation techniques would comprise of Bar Graphs, Histograms, Pie Charts etc
depending upon the orientation of Data & parameter being considered.
PREPARATION OF QUESTIONNAIRE:
The following Questionnaire was prepared keeping in mind the various parameters required for
Analyzing the Distribution Width & Depth for Jio Phones and determine the ground realities
which can help in the determining the measures which can be taken to Improve Retailer
Participation.
JIO PHONE QUESTIONNAIRE
Q 1 Is the Jio Phone Available at your outlet?
Q 2 What’s the current stock of Jio Phones?
Q 3 What is your sale for the last 7 days for Jio Phones?
Q 4 Do you have any promoters for Jio Phones?
Q 5 Are you aware about the Jio Phone Features?
Awareness Rating:
1 2 3 4 5
(LOW) (HIGH)
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Q 6 Do you think that Jio Phone competes well with its Competitor Phones?
Q 7 Are you aware about the schemes associated with Jio Phone Sales?
Awareness Rating:
1 2 3 4 5
(LOW) (HIGH)
Q 8 What is your feedback about Claim Settlement Payout?
Satisfaction Rating:
1 2 3 4 5
(LOW) (HIGH)
Q 9 Are you satisfied with the FOS / Salesperson visiting you?
Market Service Rating:
1 2 3 4 5
(VERY POOR) (EXCELLENT)
Q 10 Are you satisfied with the Jio Phone after Sales Service?
Satisfaction Rating:
1 2 3 4 5
(LOW) (HIGH)
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DATA COLLECTION SHEET:
The Data Collection Sheet was prepared keeping in mind all the parameters in the Jio Phone
Questionnaire.
DATASHEET 1:
Market/Locality: Thane
Date: 26-03-2018
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MAJOR MARKET/LOCALITY INSIGHTS:
Market/Locality: Thane
A few retailers complained about Delayed Payouts and also said that they are often
delivered Jio Phones instead of actual Payouts
A few retailers complained about the misbehavior of the salesperson which largely
impacts the relationship of the company with the retailers
Some of the retailers had an issue with the device quality and notified about the problems
with the device such as Back Cover being Cracked (in a Company Packed JioPhone),
Software Issues, Hanging of the JioPhone handset
DATASHEET 2:
Market/Locality: Mulund
Date: 30-03-2018
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MAJOR MARKET/LOCALITY INSIGHTS:
Market/Locality: Mulund
A few retailers asked for the detailed transaction history/bifurcation with respect to the
payout which they get from Reliance Jio
Some of the retailers complained about device drawbacks such as Device Hanging, Poor
Network, Call Drops, battery heating, and battery draining
A few retailers also complained about the delay in the Settlement of Payouts
Some retailers notified that the salesperson doesn’t have a complete knowledge about the
product and the procedures
FUTURE COURSE OF ACTION:
The future course of action with respect to the project titled “Analysis of Jio Phone Distribution
Width & Depth and Measures to Improve Retailer Participation” would be as follows:
To cover the remaining 13 Markets/Localities for Market Survey
To represent the Collected Data such that maximum Key Insights can be extracted out of
it
To summarize the Qualitative Data to determine measures to Improve Retailer
Participation
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