Reliance Industries Marketing | RIL’s Marketing Tactic
Marketing Strategies of Reliance Industries Limited | Reliance Industries Marketing
In 1957, Dhirubhai Ambani after having a useful stint with Aden, A. Besse, and CO., Yemen came back to India and initiated a small yarn trade-based business having 500 sq ft. Mumbai office with a strong desire to establish India’s largest trading company in the coming times. Then Mr. Ambani continued his plan and co-found a commercial corporation (Reliance) with well-known ChampaklalDamani in the 1960s. Although their partnership ended in 1965 Dhirubhai kept working on his firm of polyester business and continued his corporation with Reliance Textile Pvt. Ltd. He also established a synthetic fiber production mill in 1996. In 1985, Reliance Textile Ltd. Was renamed Reliance Industries Limited. With the passage of time Reliance Industries Marketing company kept expanding and started entering into many different businesses.
In the year 1998-99, RIL introduced Reliance Gas as a brand and packaged LPG cylinders of 15 Kg. Between years 1998-2000 RIL constructed integrated IPC (petrochemical complex) in Gujarat (Jamnagar) as the world’s largest refinery. RIL and RPL (petroleum limited) became the two largest Indian companies in 2001 having the highest values of all important financial parameters. However, in 2001-02 they were merged.
In 2005 Reliance decided to split its business into parts and reorganized it. The company was split into 2 industries named RIL and Reliance ADAG (AD, Anil Dhirubhai & AG, Ambani Group) in which later received Reliance Natural Capitals, Reliance Power, Reliance Infrastructure, and Reliance Communications.
Reliance Industries Marketing | RIL’s Marketing Tactic
Segmentation, Positioning, and Targeting Used in RIL Marketing Tactics:
As a brand RIL caters to the diverse needs of varieties of their customers through its wide product range available across RIL’s retail outlets whose services ranged from petrol stations to telecom.
RIL combines different types of segments like demographic, psychographic, geographic, and segmentation variables e.g. gender, behavior, age, region, and income class, etc. RIL describes its differentiated, aggressive, and selective pricing policy according to the relevant target market.
Reliance Industries Marketing | RIL’s Marketing Tactic
Mission:
Its mission is to create value and image for all of its stakeholders, lead through fine governance practices, grow in innovation, enhance operation-related efficiencies, rural prosperity, ensure energy safety of the nation and develop sustainable products.
Reliance Industries Marketing | RIL’s Marketing Tactic
Vision:
“Use of sustainable measures to create value and quality for the nation, improve life quality across the whole socio-economic spectrum while providing help in setting India as a strong global leader in areas and domains where Reliance operates”.
Reliance Industries Marketing | RIL’s Marketing Tactic
Tagline:
Its tagline puts stress upon growth being life.
Competitive advantage used in RIL’s marketing tactic
Reliance Industries Marketing | RIL’s Marketing Tactic
Big Conglomerate:
Having 85+ associates and subsidiaries related to RIL, it continues to maintain a strong and leading marketing share and position in India which can also be considered as RIL’s biggest support. As the largest petroleum industry RIL also has its outlets in rural areas of the country. With many subsidiaries and associates, RIL is having a wide business network that is not only limited to India but has spread to five continents. There is hardly any other competitor managing this wide range of services and products alone and being able to lock horns with confidence to this giant conglomerate.
Reliance Industries Marketing | RIL’s Marketing Tactic
Some major competitive benefits of the firm are:
As the largest player in India, RIL has earned a strong name and credible brand image in the eyes of its customers. Recognition on the basis of many awards, strong profitability, strong financial position, excellent holistic growth focus, interest in CSR activities are helping the brand to keep up with its positive feedback among various stakeholders and investors.
With a wide range of businesses across energy, telecom, retail, petrol, marketing, and advertising through prints, TVCs, billboards, online ads, etc., the company has successfully created resonating image among users thus enhancing brand loyalty.
RIL is surely one of the very few Indian companies that actively are in support of promoting sports in-country as RIL owns Mumbai Indians (IPL team) and holds 65% stakes of ISL to support football promotion in India, it also aims to introduce the best talent available across the country to international level with the help of its league and to make Indian football team recognized in international football ranking.
Reliance Industries Marketing | RIL’s Marketing Tactic
BCG Matrix:
The retail business of RIL has always been a star and Reliance Fresh & Trends have above-average shares in metros, Tier1 and Tier2. Jamnagar refinery’s Global Management and Engineering services and newly launched JIO telecom’s services are a star segment benefiting company.
Reliance pharmaceuticals, Reliance oil & gas, Reliance farms have a decent value of market shares in related sectors and have been growing up and at the moment hold the position of Cashing Cow of the company. The Reliance Broadband, Petrochemicals, and Digital can be made better by investing more or liquidating because they continuously feature as dog segment in the BCG matrix.
Reliance Petroleum has featured by a question mark after many years because its competitor government companies like Bharat Petroleum, Hindustan Petroleum, etc. comparatively hold larger market shares in the relevant sector.
Reliance Industries Marketing | RIL’s Marketing Tactic
Distribution Strategy:
Pan-India channel distributing 1 Million above retailers and growing rapidly. Reliance Digital outlets, points of Reliance JIO while continuously enabling a variety of distribution channels with the help of latest services and platforms RIL holds the largest service and distribution network of the country. With 3,300+ stores pan-India is covering almost 13 million sq. ft retail space. It is growing rapidly and making Reliance country’s biggest retailer.
Reliance Industries Marketing | RIL’s Marketing Tactic
Brand Equity:
In 2016, RIL was ranked 8th, in the top 250 of Global Energy (GEC) companies, by Platts. Reliance is also accountable for nearly 5% of total GOI’s revenues from excise and customs duties. In October 2007, RIL has become 1st Indian company that has crossed the $100 billion capitalization mark in the market. In 2017, RIL ranked 203rd in the Fortune Global list for the world’s 500 biggest corporations. The next year 2018, Reliance retail scored 189th in the top 250 global retailers, further verifying the strong growth of India based on consumer spending.
Reliance Industries Marketing | RIL’s Marketing Tactic
Market Analysis:
With 8, 20,000 crores (INR) or over market capitalization, stocks of RIL have doubled after the telecom launch of Jio sector disruptor. Refinery and Photochem business has always been cash cows of RIL conglomerate. It maintained margins of Petrochem on record levels whereas Retail business was also showing traction signs. Jio managed in disrupting the telecom sector to earn great value dividends and making data a great center of attention.
Strong recent developments have been observed in retail, telecom, digital business, and media. In 2014, with initial investment (4,000 crores) through Independent (IMT) media trust. RIL held a 78% stake of network 18 along with 9% stakes of TV18 making an entry in media.
While talking market capitalization, RIL is surely India’s most worthy firm as it breached almost 7 lac crore in the m-cap mark. It made it the second company that achieved this milestone whereas Tata consultancy services were the first one.
With JioFiber’s launch, a sudden increase in earnings through retail business, improved profit from telecom arm. It doubles the earning from the petrochemical business helped RIL to become the highest ever in quarterly net-profiting in June 2018. The quarter helping in the oil-to-telecom market valuation of the conglomerate as it recently crossed the mark of $100 billion.
Reliance Industries Marketing | RIL’s Marketing Tactic
Customer Analysis:
With a variety of services and product range varying from telecom to oil, RIL deals with a wide range of customers. In the 5-60 year range and furthermore through the retail segment which serves a variety of customers as it has products for everyone’s need. It has customers ranging from the lower and middle class of rural areas to high-class individuals of metros.
Reliance Industries Marketing | RIL’s Marketing Tactic
Promotional Strategy:
Reliance, as compared to other companies, believes in attracting customers through fewer prices offered rather than investing more in promotions. It prefers BTL advertising over ATL due to the same reason of investing worthy money in the launch of new products, retail sector or to raise initial buzz in customers for any new product. Its 2003 marketing slogan was based on impressing the world enough to bind them with RIL products. Reliance Jio’s recent launch was a prime example of their approach.
RIL also invests in creating a strong emotional and social connection with customers. It arranges different rehabilitation-based programs. Also runs campaigns like Education For-All (EFA) which is a social initiative of Reliance Foundation. It provided education to 70,000 or more underprivileged kids in the last 5 years. RIL has also invested in Mumbai cricket of IPL and holds 65% shares of ISL for football.
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