Marketing Plan - Jio Cabs
Marketing Plan - Jio Cabs
Marketing Plan - Jio Cabs
Marketing Plan
Jio Cabs (Hypothetical)
Presented by Group 5:
Abhinav Doye (02)
Nidhi Moily (34)
Pranav Kumar Singh (39)
Sai Ajit Deshpande (46)
Suvesh Raj Srivastava (57)
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Contents Page
Executive Summary 3
Marketing Objectives 4
Porter’s Five Forces Competition Intensity Analysis 5
PESTLE Analysis 7
SWOT Analysis 12
Segmentation, Targeting and Positioning (STP) 13
The Marketing Mix (7 Ps) 16
Marketing Implementation 19
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Executive Summary
The various products offered by Reliance Jio are Mobile Broadband Services,
JioFiber, LYF Smartphones, JioPhone, Jionet Wi-Fi, JioTV, JioSaavn, JioMeet,
JioChat, JioCloud, JioCinema,etc.
Reliance Jio Telecom services have a strong grip in the market, on the same
basis we are launching Reliance Jio Cabs (Hypothetical Services). Jio Cabs is
new in the market, earlier in the digital services, Jio would connect consumers
with each other but now it is different since it has to connect service providers to
the consumers.
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Marketing Objectives
● Telecom Jio is already having a customer base of more than 40 crores which
clearly tells about Jio's presence in every part of the country.
● Ola and Uber being the only two major competitors in this business, functions in
most of the tier-1, Class-A and Class B cities but the objective of the Jio cabs will
be to function in tier-1, Class A, Class-B as well as the tier-2 cities at affordable
prices with a perfect customer experience. For functioning in these many classes
of cities, Jio Cabs need to make customers in every class of city aware about
their new service segment which will not be a hard part as the company has a
large telecom customer base already.
● Their objective will be to convert their large base of telecom subscribers in the
above mentioned class of cities to go for Jio cab's. Conversion rate of 10% a
year will be good for the company's future prospects.
● Addition of new customers will also be expected due to the advertisements and
campaigns showing the public about the safety,quality,experience and
affordability at the rate of 8.3% a year.
● In the start of the business company can buy a certain amount of cabs and start
functioning but to satisfy the growing demand of the service in future the
company needs to take the cars on rent by offering attractive commission
schemes to the car owners. By using this way 14.7% of the increase in no of
cabs will be expected every year.
● As this service will also function in tier-2 cities in future detailed information about
the geography of the cities will be taken into consideration. On the basis of
geographies like narrow roads, clear height for vehicles suitable vehicles will be
deployed in the city to function. So for the proper functioning of this feature
detailed information is to be collected.
● Apps will be developed keeping in mind some of the basic things that lead to loss
of customers ( Lag free, easy to use, clear instructive headers).
● Large database will be made where feedback and recommendations of the
customers will be saved and by analysing it further improved decisions will be
taken.
● Promoting the use of jio money for the digital payments.
● Jio Cabs will start functioning with the petrol and diesel cars and create a
customer base so that when technical advancements happen in case of electric
car's whole electric car infrastructure will be created and replaced with the petrol
and diesel cars infrastructure with the increasing customer base remaining
constant.
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Competitive forces
● Bargaining power of buyers ( High for customers and Low for cab drivers)
● As there are many substitutes and competitions that is why it is high for
customers.
● Switching is also high .This is mainly due to fluctuating pricing as per time,
weather etc .
● But in case of cab drivers it is low because more than half percentage of
cars are owned by Jio Cabs only.
● This may bother Jio Cabs initially but later on it will not as the customer
base will increase and other players may be at decline stage.
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● Bargaining power of supplier (High in case of skilled driver and for rest it is
Low)
● As more than half of the cars will be owned by Jio Cabs so for skilled
drivers the bargaining power of suppliers (Jio Cabs in this case ) will be
high.
● Major suppliers for Jio Cabs will be car dealers as they are large in
numbers so for Jio Cabs the bargaining power from the supplier side will
be low.
● For the fuel and application technology part , Jio is already the owner of it
so in later stage (growth) of business the bargaining power of Jio as a
supplier may become high for customers.
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PESTLE Analysis
Political forces
● Size of Government Budgets – For FY 2019-20: Revised Estimates of
Expenditure: at Rs 26.99 lakh crore (US$ 382.02 billion). Revised Estimates of
Receipts: estimated at Rs 19.32 lakh crore (US$ 273.46 billion).
● Regulatory Practices - Ease of Doing Business India rank: India jumps to 63rd
position in World Bank's Ease of Doing Business 2020 report.
● Likelihood of Entering into an Armed Conflict – There is some kind of friction
with China which should be taken into consideration but very less probability of
armed conflict.
● International Trade & Other Treaties – The country has a good record of adhering
to international treaties it has done with various global partners. The government
of each party has adhered to the treaties done by previous governments, so there
is a consistency in both rule of law and regulations.
● Judiciary Independence – The constitution provides for a judiciary, which is
independent. Independence of the judiciary is important for the purpose of fair
justice. There should be no interference by the legislature or the executive, in the
proceedings of the judiciary so that it may take a judgment that seems
reasonably fair.
● Threat of Terrorist Attacks – We believe in the world of post 26/11, Corporations
such as Jio Cabs have to live with operating under the shadow of a terrorist
attack. The prudent policy should be to take insurance and other types of
hedging instruments to mitigate the losses occurring because of the terrorist
attacks.
● Transition of Government and Changes in Policy – There is inconsistency in
policy making from one government to another. E.g. Tata Nano case in Singur
(West Bengal).
Economic Factors
● Inflation Rate – The inflation rate can impact the demand of Jio Cabs products.
Higher inflation may require Jio Cabs to continuously increase prices in line of
inflation which could lead to lower levels of brand loyalty and constant endeavors
to manage costs. Inflation rate in India was 5.5% as of May 2019, as per the
Indian Ministry of Statistics and Programme Implementation.
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Social factors
● Attitude towards Authority – Various cultures in different parts of the world have
different attitudes towards authority. In Asia authority is respected while in the
south it is something to rebel against. Jio cabs should carefully analyze the
attitude towards authority before launching a marketing campaign for its
products and services.
● Birth Rate – Birth rate is also a good indicator of future demand.In India it is 2.24
births per woman(2017). This shows there will be a better demand in future.
● Education Level in Society – Education level of the society impacts both the
quality of jobs and level of income. High level of education often results in better
jobs, higher income and higher spending on complex and aspirational products.It
is 74% (2011) in India which shows there is a better position for the business in
the market.
● Immigration Policies and Level of Immigration – Rules and regulations for
immigrants - The Passport (Entry in India) Act, 1920 – Under this act, the
foreigners entering India are required to get a visa from India Missions. The act
also prescribes specific documents for submission during their valid travel for
allowing into the country. This seems flexible for India and it encourages
business like this.
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● Power Structure in Society – The Indian caste system is most likely the best
illustration of that societal order, grounded in an intangible but impressive notion
of purity' of an individual as well as a team. In reality, families derive the relative
purity of theirs from what the scriptures ascribe to a caste to which they belong.
Technological factors
Environmental factors
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Legal factors
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● Health & Safety Laws – India's parliament approved the Motor Vehicles
Amendment Bill on July 31, 2019, the result of a five-year effort to improve
national legislation on road safety. After the president's approval, India's streets
may finally become safer places for both pedestrians and drivers.
● Securities Law –Securities Laws (Amendment) Act, 2014 is a legislation in India
which provided the securities market regulator Securities and Exchange Board of
India (SEBI) with new powers to effectively pursue fraudulent investment
schemes, especially ponzi schemes.
● Laws regarding Monopoly and Restrictive Trade Practices – As a new player Jio
cab shouldn’t be worried about the monopoly and restrictive trade practices law.
● Data Protection Laws – Jio cabs needs to assess what are the data laws in the
country and what it needs to do to comply with them. In December 2019, the
government introduced the Personal Data Protection Bill, 2019, in parliament,
which would create the first cross-sectoral legal framework for data protection in
India. Instead, the bill proposes a preventive framework that oversupplies
government intervention and strengthens the state..
● Transparency in Judiciary System & Processes – Transparency is essential for
fair and consistent decision making and this is lacking in India which should be a
major concern for Jio cab.
SWOT Analysis
Strengths
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Weakness
● Late entry into the market.
● Dependence on the internet.
● Diversifying in unrelated sectors may be difficult for them.
Opportunity
● Unorganized market is huge (~90%) and hence potential is high.
● Increasing internet penetration and smartphone users of its own so less
customer acquisition cost.
● Rising middle class.
● Rising disposable income.
● Shifting consumers towards convenience creates huge demand.
● Poor government transport system.
● Competitive pricing strategies.
● Expansion to other countries.
● Use of Natural gas as fuel leading to green marketing.
● Other players are raising their prices.
● Less players (we can say there is duopoly)
Threats
● Uber has a deep pocket and hence can burn cash heavily.
● Rising competition.
● Customer and employee retention.
STP
SEGMENTATION
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Geographic - Jio Cabs will be geographically dividing the market into urban and metro.
Starting from Bengaluru and Chennai, it will then place itself in Mumbai (headquarters)
and then Delhi (maximum application based taxi- booking across India). Finally, it will
place itself in tier 2 and tier 3 cities.
Demographic -
● Age & Gender - Jio Cabs can be availed by anybody who has the ability to pay
regardless of their age or gender. The easy accessibility of the cabs, affordability
of the price and convenience of using the app will draw the consumers to Jio
Cabs.
● Income - Since Jio Cabs will be available at affordable prices, the income-class
will include people of low, middle and high income groups. Anybody who has the
ability and willingness to avail the ride can do so.
Behavioral -
● Occasion - India is known for its festive seasons and during these people
usually travel along with family & friends. The affordability and easy accessibility
of Jio Cabs will attract the customers. Commuting for the purpose of work is also
an occasion. Low cost will also attract the students or teenagers for service
usage by switching from their regular use of transport.
● User Status - User Status also plays an important role. After a consumer
initiates using the service they are likely to recommend it. Those recommended
will become our potential customers in the future.
● Usage Rate - Heavy, Medium and Light users. Heavy users are the ones who
use the services more frequently
● Attitude & Loyalty - Those who are loyal and have a positive attitude to the
brand Jio are more likely to use the service of Jio Cabs.
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Psychographic -
TARGETING
● Reliance Jio is at a level of multiple segmentation.
● Although it is affordable for all, the marketing efforts of Jio Cabs will be focused
on lower, lower middle and upper middle income groups.
● Major segment targeted is going to be the segment using Jio telecom services as
targeting that segment has a very low or no acquisition cost.
● Target will also be the heavy user segment, loyal customer segment who will
switch to Jio Cabs from Ola, Uber, etc.
● Although it fits many age segments, but is focused on Young students, who are
mobile application users and don’t earn so they want to save on commuting, also
they, as millennials are more environmentally conscious than the other
generations, who will choose Jio Cabs for their objective of providing electric car
services.
POSITIONING
Frame of Reference - Ola Cabs, Uber Cabs, Meru Cabs, Bounce, Rapido
Points Of Difference(PODs) -
● Low prices/ discounts- Jio is known for announcing “free” schemes/ discounts.
This differentiates its products and services from the competitors
● Electric Car in future (Green marketing)-This factor will make Jio cabs stand out
from the crowd of its competitors.Initially, Jio cabs will create a customer base for
their electric cars in future.They want to make electric cab a way of commuting
● Brand image- Unlike its competitors, who are famous for their cab service, Jio
brand is already very famous for its telecom service, which is an edge over the
competitors, making the customer acquisition easier
● Last mile service - All its competitors, especially the 2 wheelers assure last mile
connectivity by operating in the local area. Jio Cabs plan to do the same. It wants
its presence in the small localities too, apart from the busy crowded area.
● Experience - This is a parity with 4 wheeler (taxi) competitors. They give a similar
experience - family commute, safe, comfortable ride, pick up/ drop service near
closest location, OTP authentication.
● Convenience - Anytime, anywhere access, anytime anywhere service,
convenient payment method, guaranteed location software (Google maps) to
guide the driver and customer which route to go - they need not know the exact
route for reaching there.
● The challenge before Jio Cabs will be creating such a POP which will negate the
vulnerabilities arising from their own POD. That is, PODs are that Jio is
affordable and will provide electric cars also (green marketing). Vulnerability can
arise from this in terms of , “How can Jio Cabs be both affordable and
environment friendly at the same time?” This has to be addressed by Jio Cabs by
working on a POP, that negates thi vulnerability i.e. POP of “experience” -
providing a rich / quality experience might be useful in negating the vulnerability
of low/ affordable cost service.
Brand Mantra - “An affordable convenience”. This is what Jio Cabs marketers can
communicate to the employees, dealers, distributors, as a part of internal marketing so
that service is provided as an ‘affordable convenience’. This brand mantra is about
perception of the service to be delivered. Internal stakeholders should then aim at
delivering that kind of a service.
● Jio Cabs-an application based service provider for personal transportation. The
core service remaining transportation, Jio Cabs will focus on providing diversified
and personalised service portfolio.
● It will offer different types of cab service that will have a diversified range from
luxury to economy viz. Simple cabs, Sedan cabs and luxury cabs. And once the
customer has used the service a few times, then the company will focus on
personalising the services in the luxury segment of our service, like providing a
journey in a car with preferred interior of the cars or a particular driver.
● Wi-Fi enabled cabs and car-pooling will be provided to take customer experience
to a different level.
● As Jio has already created a goodwill in people’s mind. Jio Cabs will just try to
reinforce the same point that even Jio Cabs will provide the best quality service
at affordable pricing.
● Apart from above, Jio Cabs could also include autos. Its initial success will help
the company decide whether to include operations in several other cities also.
Price
● Jio Cabs will offer price flexibility with its range of vehicles that includes
economic-range, mid-range and high-range. And within these flexible options too
the company will keep its prices low.
● Vis-a-vis competitors, penetration pricing & discount pricing strategy would be
adopted in the initial phase so as to attract customers and form a loyal customer
base.
● Whereas once the business gets traction we can slowly shift to competitive
pricing and demand pricing strategies. But the company would try to keep the
prices partially lower than its competitors as Jio Telecom does currently. This
would the company in having cost leadership.
Place
● It will offer Intra-city rides in cities but will also offer outstation rides to nearby
cities once the company reaches maturity. It will start operating in Tier-1(Class A
and Class B cities) like Mumbai, Kolkata, New Delhi, Chennai, Pune,
Bhubaneswar, Bengaluru, Hyderabad, Ahmedabad.
● Operations can be further expanded to include places like Pune, Delhi,
Visakhapatnam, Guwahati, Jaipur, Indore and Chandigarh among others.
● Uber will also expand its apps to all the operating systems, be it Android, IOS or
Windows.
Promotion
● Since the interface of interaction between the company and the customer pre
and post-service will be through digital medium.
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● Direct marketing through Reliance Jio’s large portfolio of already existing mobile
applications like My jio App, JioSaavn, jio TV, Jio Movies Jio Money and Jio Mart
websites would be leveraged.
● Discounts, coupons, contests, prizes, loyalty programs and other incentives
designed to entice customers could be used heavily in order to create a loyal
customer base in the initial phase of launch.
● Example: Jio Cabs can form a strategic tie-up with jio Money, an ecommerce and
payment platform which is its own. Through this tie up, Jio Cabs can offer its
riders several incentives like Cashbacks, % discounts and even Referral bonus in
terms of Cashback, wallet money or free rides.
● Jio Cabs can offer a lot of incentives for its drivers too, in order to motivate them
to accept more rides and to complete more number of hours on duty. Drivers
have incentives based on the number of rides completed per day/earnings per
day.
● One of the best ways to market the service would be to focus on the service
itself. If a consumer experiences excellent service. They might express
happiness and appreciation on social media thus creating a cycle of goodwill. For
this the training and regular assessment of customer satisfaction will be of
paramount importance. But these are not directly controllable but if we apply
kaizen(Continuous improvement) technique by setting up proper processes for
our customer service then it is inevitable that customers will like our service.
● Apart from direct marketing through Jio’s own applications and other methods,
traditional mass media advertising and online advertising through third parties will
also be used.
● Jio Cabs will also come up with seasonal promotions like Monsoons, festival,
company anniversary etc.
People
● Drivers of the Jio Cabs will form a core component of our marketing strategy. As,
for a service based company customers will also differentiate between how good
an experience Jio Cabs has provided against its competitors.
● As services depend on who provides them, when and where, to whom and how
good the provided service was. Jio Cabs will minimize variability in service quality
by providing proper pre-induction training to all the drivers about best customer
service deliverability, thus setting gold standard for customer service.
● We will also have in place a feedback mechanism in place through which both
the customers and drivers can rate their experience with each other. These
ratings will definitely help in keeping the quality of service top notch.
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Process
● A proper process has to be set in place in order to serve the customer most
effectively with utmost quality. For example, within two minutes of searching on
the app for a ride the customer must be assigned one.
● Thereafter the ride must arrive at the customer’s doorsteps exactly at the
designated spot on time so as to cause minimal hassle for the customer. The
driver should make sure that the customer's process of getting into the ride
should be hassle free.
● The process of cancelling a ride will also be on the customer’s will. Wherein the
customer can cancel their ride whenever they choose to before starting their
journey. Post the ride a feedback would be taken wherein the customer would
rate their experience on various parameters like quality of service, ambience of
the car, customer service of the driver.
● Apart from the above mentioned ones, the company should focus on making the
mobile and web applications user friendly. Because if the application is
cumbersome or complex to use, it will drive away the customers. A simple and
smooth application will make the customer experience glitch-free thus making the
whole process better.
Physical Evidence
● The car which will be used to serve the customer will be a physical evidence.
Hence Ambience, decor and cleanliness of the car will be of prime importance.
● Also proper functioning of all the facilities like Air Conditioning, lighting, stereo
and FM radio will also play an important role.
● How professionally the driver is dressed will also be an evidence of the quality of
service Jio Cabs will provide.
Marketing Implementation
When it comes to implementation, one of the 7 Ps, i.e. People are very important. Since
it is a service, people are the ones who have to implement it. Also on the company’s
level, it will have to manufacture/ take on rent taxis/ cabs to arrange for a sufficient
supply so as to meet the fast growing demand. They have to be ready for their
customers. It will have to differentiate itself on the basis of green marketing by checking
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its growth scope in tier 2 and tier 3 cities. It has to check whether the city is ready for
their service in the long term, with respect to the infrastructure, accessibility. It has to
reach early at those places where Ola and Uber penetration is not much there so that it
can capture the market faster as compared to other areas. Aggressive marketing will be
needed to position itself as an ‘Affordable Comfort.’