Jio rocks the market with its STP strategy.

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Recently in June, Reliance Jio commenced the commercial sale of LYF Smartphone with Sim Cards to the regular consumers in India. This was the first time that the people will be able to use Jio’s high speed 4G network. It becomes important to point here, that in December 2015, first only the employees of the company were given access to it, followed by access by 10 referrals made by the employees of the company(Aulakh and Khan Muntazzir abbas 2016). 

Who is Reliance Jio ?????

Reliance Jio Infocomm limited (RJIL), founded by Mukesh Ambani in 2007,   is a subsidiary of Reliance which is one of the major telecommunication industries in India. It offers broadband services  based on LTE technology to customers throughout India. It also deals in different products most popular being Smartphones. Besides, it offers VOLTE ( voice calls over LTE) at affordable prices to its customers. By its strategic moves and marketing strategies , it has acquired a significant position in the Indian market in few years.

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What is STP ????? 

STP stands for Segmentation, Targeting and Positioning. This is a three step marketing strategy such that effective implementation of each step leads to a step close to a company’s goal. It implies finding the right set of customers, focusing on them and creating a perception of your brand in their views which has an positive impact on their loyalty towards your brand.


Different groups of people are present in the market who share similar views regarding particular brands . Doyle (1994, in Proctor 2000) states that company must decide on the segment it will focus its activities which is based on five factors namely segment size, segment profitability, segment growth , current and potential competitors and the capabilities present in the market. Jio seems to have made most of this strategy since the 4G network in India has great potential for growth and profit. It is in its budding phase and therefore there are chances of making most of it. Besides, the use of Smartphones in the Indian market has shown a tremendous increase and still continuous so, which promises great benefits in this sector. India’s 4G market is set for exponential growth. Smartphone market volumes are projected to be at 326 million by the end of 2016, according to a Gartner and KPMG report (cited in Panday 2016 ) Besides, few competitors makes this move of Jio even more strategic .


Once, the segment of customers on which focus is to be laid is found, the next step is how to make that segment buy your products or invest in your brand. This is called targeting. Once a target market has been determined, ‘your marketing efforts will remain focused on a particular group of people, ultimately improving your campaign’s success’ (Garberson, 2015). Jio used a great tactic to target its selected segment .

From June to July it offers unlimited high speed internet on 4G network and 4500 minutes for free for three months to those customers who buy LYF Smart phones with come with a sim card. As in India, there has been problem with online downloads or other internet related functions due to low speed internet, therefore this tactic has vast opportunities in this market. However, Jio has set a limit to the number of customers who will be able to be able to benefit from this offer in the trial period and plans to provide 4G internet access and services, after the trial period ends, to those customers who will buy these Smartphones during trial months. This way it aims at gaining prospective customers.


Once market segment to focus on is selected and the tools or techniques to target this segment have been devised and implemented, the next part is positioning in the market. Positioning simply means how your brand is perceived by the customers. Iacobucci (2014, p. 53)states that positioning can be evaluated via perceptual maps which are graphical depictions of where brands are and where competitors are in the minds of the customer.  Jio positioned its Smartphones based on price and sales. And the offering of free voice calls minutes and high speed internet, made its identity different from its competitors and thus it gained more popularity. According to the Hindu newspaper, it has already served 500,000 customers already has become third most selling Smartphone in India.


Reliance Jio’s LYF Mobiles presents a fabulous example of effective use of the marketing strategy of segmentation, Targeting and Positioning.


Aulakh, G  & Khan Mutazzir Abbas, D 2016,’Reliance Jio begins sale of 4G-enabled  Lyf mobiles: offers unlimited data for 3 months’, The Economic Times, retrieved 8 August 2016, <;

Iacobucci, D (2014) Marketing Management (MM4), South-Western, Cengage Learning, Mason.

Garberson, N (2015). ‘Positioning Your Message for Success’, Corridor Business Journal, May 25 – 31.

Panday , P 2016,’ Will Reliance Jio disrupt the market with 4G?’ The Hindu, 27 June, retrieved on 8 August 2016,<> .

Proctor, T. (2000). Strategic marketing. London: Routledge.

Reliance Jio’s LYF Mobiles presents a fabulous example of effective use of the marketing strategy of segmentation, Targeting and Positioning.



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