ON
“The role of Integrated Marketing Communication in Success
of Reliance Jio”
Submitted by
Mudit Khanpuri
Aditi Shokeen
Prasanth Gumma
List of Figures
Figure 1 Factors Affecting Brand Advertisement Success and Effectiveness ............ 5
Figure 2 Critical Factors for a Co-Branding Strategy (Chang, 2009) .......................... 6
Figure 3 There are types of strategies that are generally used in co-branding.
(Chang, 2009) ..................................................................................................... 6
Figure 4 The Sponsorship Portfolio (Simon J. Cliffe, 2002)........................................ 7
Figure 5: Benefits of Different Sales Promotion(Pierre Chandon, 2017) .................... 9
Figure 6 New Customer Path Framework .................................................................. 9
Figure 7: Jio Launch Day Advert. ............................................................................. 14
1.2 Positioning
Jio is positioning Itself as high-speed internet service provider at a relatively cheap
price than the competitors. Reliance Jio focus is more on data services which in non-
conventional. Jio also launched different applications such as JIO TV, JIO Music, Jio
Cinema & Jio Magazine’s to create an Eco system of digital applications based on
high speed data. Jio tag line used is “Digital Life” which shows the positioning strategy
of the company.
1.4 Budget
As per Pitch Madison Report Reliance Jio Spent around INR 1000-1500 Million on
advertisement in FY 2016-17. (Live Mint, 2017). Most of the Spending done by
Reliance Jio is in Sales Promotion. Reliance Jio Made its services free for the first 6
Months which incurred most of the promotional cost and is estimated to be around
INR 10000 Million.
Also, company competitive advantage over others, Market share, Uniqueness of Product and
customer relationship also effect advertisement effectiveness.
Firms need to understand the transitional cost, capital restructuring to be done, culture
differences in the organizations, consumer acceptance of the brand and core values
of each of the companies.
Figure 3 There are types of strategies that are generally used in co-branding. (Chang, 2009)
Recent research has suggested that the way in which customers are acquired may
have an enduring impact on their behaviour, even long after adoption. (HANNES
DATTA, 2015). In paper published by Hannes Datta in Journal of marketing Research
“The Challenge of Retaining Customers acquired with Free Trials” its mentioned that
expected Customer Lifetime value(CLV) of customers attracted with free trials is less
than the expected value of regular customers. Because they have a less developed
relationship with the firm, free trial customers are more uncertain about the service
benefits. As a result, they rely more on marketing communication and their own usage
behaviour when deciding whether to retain the service. We find that, compared with
regular customers, the net CLV of free-trial customers is much more responsive to
direct marketing, advertising, Therefore, companies should target direct marketing and
advertising more to free-trial than to regular customers. In these marketing
communications, firms are advised to remind free-trial customers about their usage
rates, especially when they are high, to make these customers even more likely to
retain the service (HANNES DATTA, 2015). Consumer sales promotion also
contribute to large increase in sales in short term and permanent effect of sales
promotion are very rare (Heerde, 2017).
In “Predictably Irrational” by Dan Ariely its proved that consumer tends to favour Free
products related to deeply discounted products & services and during free trails
consumers feel attached to the product or service and create a sense of ownership for
it and tends to keep it after free trail expires (Ariely, 2008)
KBC Campaign
Objective Increase Brand Loyalty and Goodwill: Increase loyalty and
goodwill by giving satisfaction to consumers
Target Market Urban Population, Age 15 to 45 Years
Advertising Appeal Emotional Appeal, Rational Appeal & Scarcity Appeal: They are
targeting emotion by letting them play, rational by giving good
experience and scarcity because it is the only place to play
Leverage Point Use of technology for Wisdom & Knowledge, Convenience:
Better tech for giving consumer satisfaction and making it
convenient to use
Tagline Darshak Banenge Khiladi (Viewers Become Players)
Message Strategy Affective Message Strategy
It invokes feeling by giving satisfaction
Executional Framework Slice of life: Invoke feelings and give convenient experience
Celebrity Used Amitabh Bacchan
Marketing Theory Used Event Marketing, Celebrity Endorsements
Jio Dhan Dhana Dhan is one of the biggest campaign put forward by an Indian
company in recent years. Looking back at the sponsorship portfolio in Figure- 4, we
understand that mass appeal events are best in building awareness. Each celebrity
has an influence base, i.e., there are some people who tend to use a product because
of the brand affinity to a celebrity or a team. Next, we see how Jio is creating a mass
appeal. Jio is sponsoring 7 out of 8 team in IPL which is the biggest sporting event in
India and best domestic league in the world. So Jio is targeting mass appeal to achieve
brand awareness as shown in the portfolio diagram above. So, with a single campaign
Jio is attaining awareness and potential customer base. IPL has 8 Teams with different
regions of India. Jio sponsored 7 teams and created different advertisement for each
team using cultural aspects of the regions that each team is representing and most
recognized players in that team. Jio used musical Appeal in the advertisements.
Musical appeal has proven to build higher memorability of brand and also increase
attention to the advertisement. (Bello, 2015). Jio Dhan Dhana Dhan campaign
increased band exposure of Jio and built favourable consumer attitude towards brand.
This advert. campaign was combined with sales promotion.
5.3 Co-Branding
Theoretical Frameworks Used: Co- Branding (Complementary Branding), Sales
promotion
Jio has partnered with Apple as a part of its sales strategy to leverage Apple brand
perception and attitude with high value customers. Apple can potentially give Jio a
vast customer base and also can increase brand value. There are three forms of co-
branding: 1) Ingredient branding 2) cooperative branding 3) complimentary branding.
This falls under the third form: complimentary branding. This is where two brands
encourage co-purchase or co-consumption. Jio is giving promotional discounts on
IPhone purchase with Jio. Studies have shown an increase in sales in short term by
using sales promotions (Heerde, 2017).
Jio sponsored KBC (Indian Version of Who Wants to be a Millionaire) which is a very
popular game show in the history of Indian television which is Hosted by Amitabh
Bacchan. From sponsorship portfolio framework given by Simaon J Cliffe shown in
Figure 4, for building brand loyalty and brand experiences manufactured events are
best. Jio has introduced a new option in which every person having Jio chat app can
play along when the game is going on. Jio also announced different reward for play
along campaign such as trip to US, chance of playing in the show and cash rewards
by using a new feature Jio is making you experience their brand and service. KBC
play along is a manufactured event created for experience and create customer
loyalty. This would give consumers brand experience and would also have an impact
on the brand loyalty. Also sponsoring the event is mass appeal. As we have seen
earlier it would impact the brand awareness of the product.
Chang, W.-L. (2009). Road map of Co-branding positions and strategies. Road map of Co-
branding positions and strategies, 1-9.
Russel Abratt, P. M. (2002). Managing co-branding strategies: global brands into local
markets. Managing co-branding strategies: global brands into local markets, 1-8.
Simon J. Cliffe, J. M. (2002). Building Contempory brands: a sponsorship based strategy.
Building Contempory brands: a sponsorship based strategy, 1-10.
Moisescu, O. I. (2009). THE IMPORTANCE OF BRAND AWARENESS IN CONSUMERS’
BUYING DECISION AND PERCEIVED RISK ASSESSMENT. Retrieved 11 13, 2017,
from http://mnmk.ro/documents/2009/10_moisescu_fff.pdf
Uggla, H. (2004). The brand association base: A conceptual model for strategically
leveraging partner brand equity. The Journal of Brand Management, 105-123.
Azarnoush Ansari, A. R. (2016). An Investigation of Factors Affecting Brand Advertising
Success and Effectiveness. International Business Research, 9(4).
HANNES DATTA, B. F. (2015, April). The Challenge of Retaining Customers Acquired
with Free Trials. Journal of Marketing Research, LII, 217–234.
Heerde, H. v. (2017). Handbook of Marketing Decision Models, International Series in
Operations Research & Management Science. Springer International Publishing.
Pierre Chandon, B. W. (2017). A BENEFIT CONGRUENCY FRAMEWORK OF SALES
PROMOTION EFFECTIVENESS. Journal of Marketing.
Laure Ambroise, G. P.-S.-F. (2014, May). From endorsement to celebrity co-branding:
Personality transfer. Journal of Brand Management, 21, 273–285.
Hoffmann, K. H. (2011). Guerrilla Marketing: The nature of the concept and propositions for
further use. Asian Journal of Marketing.
Sarigöllü, R. H. (2014). International Series on Consumer Science. New York.
Paul N. Bloom, S. H. (2006). How Social-Cause Marketing Affects Consumer Perceptions.
MIT Sloan Management Review, 49-55.
Bello, A. (2015). Musical Appeal In advertising and Product recall in children. IMC Review,
6-20.
6.2 Books
Kenneth E.Clow, D. E. (2013). Integrated Advertising, Promotion and Marketing
Communications. Noida, UP, India: Dorling Kindersley.
Philip Kotler, H. K. (2017). Marketing 4.0: Moving from Traditional to Digital. New Jersey,
US: John Wiley & Sons, Inc.
Keller, K. L. (2015). Building, Measuring and Managing Brand Equity. Noida, India:
Pearson.
Ariely, D. (2008). Predictably Irrational. United States: Harper Collins.
6.3 Websites
The Indian Express. (2016, 10 10). Reliance Jio creates world record: 16 million subscribers
in one month. Retrieved 11 12, 2017, from The Indian Express:
http://indianexpress.com/article/technology/tech-news-technology/reliance-jio-
creates-world-record-16-million-subscribers-in-one-month-3073468/
Bennett, Coleman & Co. Ltd. (2017, 02 22). Reliance Jio crosses 100 million users within 6
months - Times of India. Retrieved 11 12, 2017, from Times Of India:
Facebook Posts