Company Name: Reliance
Founder: Dhirubhai Ambani
RIL or the Reliance Industries Limited is an Indian Conglomerate company doing diversified business and having its headquarters in Mumbai. Reliance owns various sectors of Industries like energy, textiles, petrochemicals, natural resources, telecommunications and retail. With its unparallel loyalty the Company has managed to win over the confidence of its customers all across the country.
Reliance is the largest exporter of the nation, exporting around 8% of the nation’s total merchandise to around 108 countries all over the world.
How it all started
Reliance was co-founded by Dhirubhai Ambani and Champaklal Damani in the year 1960 when it was called Reliance Commercial Corporation. However, this partnership did not last for long and it ended in the year 1965 when Dhirubhai decided to carry on the Polyester business. In the year 1966, he came out with another sector, manufacturing textiles and incorporated it in Mumbai, Maharashtra and named it Reliance Textiles Pvt Ltd. In the same year the he also established a sector dedicated to the production of synthetic fabrics in Gujarat’s Naroda. In the year 1976, it launched “Vimal”, which later on became a very popular brand of textile.
In 1979, Reliance Textiles amalgamated with Sidhpur mills and eventually expanded its polyester business by establishing its own Polyester yarn plant in Maharashtra’s Raigad. The famous US Company EI du Pont financially and technically contributed to the success of Reliance Textiles.
It was in 1985, that the Company changed its name from Reliance Textiles to what it is now known as Reliance Industries Limited. The production of polyester yarn was increased by leaps and bounds with 145,000 tons per year during the period 1985 to 1992.
Reliance Petroleum came into existence in the year 1993 through which Company entered the Capital markets. It ranked to be the nation’s the first ever private sector company to be rated by the credit agencies.
In 1995-1996 the Company added yet another feather to its wing by launching the Reliance telecommunication as a Joint venture business with a US based telecom Company named NYNEX which gave birth to the Reliance Telecom Pvt Ltd.
In 1998-1999 Reliance gas came into existence in packaged cylinders of 15kg net weight. From 1998 to 2000 the integrated petrochemical refinery was constructed which later on became the largest refinery of the world. This was truly one of the biggest achievements of the Company.
In the year 2001, both Reliance Industries and Reliance petrochemicals became two of the most successful Companies of the nation in terms of financial parameters. However, in the year 2002, Reliance Industries was merged with Reliance Petrochemicals.
Again in 2003, RIL bought a major stake in IPCL or the India’s Petrochemical Corporation Limited and amalgamated with it in the year 2008.
Later from 2005 to 2006, the Company took a break to reorganize its diversified business and demerging the sectors of telecommunication, financial services, power generation and power distribution into four separate and independent units.
After this RIL entered the retail market under the brand name “Reliance Fresh”.
In the year 2010, RIL acquired the Infotel Broadband Services Ltd after the successful bidding for the 4th generation spectrum by the government of India which was carried on a Pan-India basis.
This way the Company emerged among the top listed private sectors of the nation serving around 250 million customers across various sectors including telecommunication, power, media, infrastructure, financial services, healthcare and entertainment. Thus, from a small business in 500 square feet office in Maharashtra’s Mumbai, RIL gradually evolved to be the largest Private Company of the nation. The journey so far has not been quite smooth with many obstacles that it had to overcome.
Reliance Industries’ marketing strategies and the reasons behind its success
RIL applies selective, differentiated and aggressive pricing strategies to capture its target market. It uses a mix of variables like geography, demography and psychography like age, gender, profession, income class, region, behavior.
Marketing mix of RIL that comprises of the 4P’s like Place, price, products and promotion explains the marketing strategy of the Company. As for the “products” RIL has launched a diversified range of products starting from petrochemicals to retail business to health etc. As for the “price” the pricing policies of RIL is different for different products which is based on market leadership and competition of the products. It follows penetrating pricing in sectors like health, telecommunications and retail. As for “place”, the Company has a strong presence all across the country. As for “promotion”, the Company believes in customer satisfaction through price reduction of the products as an effective way of promoting its products.
BCG Matrix is the Marketing Strategy of Reliance, the company makes its product for everyone and also for the all-class segment all are their customers. The star segment of the company is Jio, this is the Telecom Sector of Reliance industries.
The company adopted the aggressive and selective pricing policing strategy; and focuses on the market analysis. With the help of Jio the telecom brand of Reliance, the company tries to digitalize India. Jio offers its customer high-speed internet and best service at a reasonable price. Jio offered free Wi-Fi services for several cities of India like Visakhapatnam, Indore, Jabalpur, Dewas and Ujjain, and some selected location of cities like Kolkata, Mussoorie, Lucknow, Mirrut and Mumbai. The company has a customer like the high-class citizen who lives in metros to lower middle class who live in rural India.
One of the main parts of their marketing strategy is the Promotional strategy. They spend a lesser amount for their campaigns, but they reduce the product prices what help them to attract more customer. The company tries to make an emotional and social connection with its consumer by some rehabilitation programs.
The company has its own trust which is called Reliance Foundation and was set in 2010. The main concern of this foundation is to help the people from the rural part of India. The company adopted an aggressive marketing strategy to make a positive brand appreciation. The company launched its ad campaigns on magazines, newspaper, television, billboards and radio, and on the social media platform like Twitter, Facebook, YouTube and Instagram.
The Company does not spend much in promotional campaigns but believes in reducing the prices of its various products to attract the consumers from all cross the nation. The tagline of the Company signifies its relentless focus in growth and the ever-evolving spirit of the Company. It prefers BTL advertisings to ATL advertisings as it less costly. Also, only the retail sectors and the newly launched products are promoted through ATL advertisings to create that initial buzz among the prospective customers. “Karlo duniya mutthi mein” is the tagline of Reliance communication which is a classic example of this.
RIL also fulfills its social responsibility through various rehabilitation programs like the EFA that is “education for all”, through which it has privileged around 70,000 kids over the past few years.
The Company also invests a hefty amount of money in the sports activities of the nation and owns an IPL cricket team Mumbai Indians. It also holds 65% stake in the football team Indian Super League.
The core business of the Company lies in petrochemicals, oil refineries and gas related sectors while the other sectors of the business includes retail business, cloth, telecommunications and SEZ development. The Company also invested around 1 billion US dollars in aerospace engineering. RIL enjoys global leadership in all its business sectors and it is the world’s largest producer of fiber and and polyester yarn. It is also ranked among the 10 top producers of petrochemicals products in the world.
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