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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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