CASE STUDY

Innovation and brand consultant, Anisha Motwani, believes that free trials or sampling as a strategy is mostly prevalent and successful in categories that have deep seated habits and have high frequency of consumption. Brand switching in this category require attitude and behavior changes and free sampling influences customers to try new brands and thus increasing the probability of purchase. Such categories could include newspapers, food products, etc. Free trials can also be found in case of expensive offerings where consumers prefer sampling before making a final commitment……

Success of Reliance Jio in the intensely competitive Indian telecom market brings forth the strength of trial marketing strategy, even in the service industry. Reliance Jio Infocomm Ltd offered free sampling of Jio's voice calling, text messaging, and data services, and acquired stupendous 100 million subscribers, of which it continued to retain 72 million even after the free trial period ended.

Conventional wisdom suggests that brands that indulge in trials and discounts erode brand value. Here's the reality though. People value brands. But people also seek value for money ……

Source: https://www.ascdegreecollege.ac.in/wp-content/uploads/2020/12/Marketing-Management-Indian-Cases.pdf

With reference to the case study answer the following question:

Which scope of public relations has been emphasised in the case study? Explain its importance to business.

The scope of public relations emphasised in the case study is Consumer Relations.

Reliance Jio used the strategy of free trials to build relationships with consumers in the highly competitive Indian telecom market. By offering free sampling of voice calling, text messaging, and data services, Jio focused on consumer engagement and built consumer trust, which is the essence of consumer relations as a scope of public relations.

Importance of Consumer Relations to Business:

1. Success or Failure — Consumers determine the success or failure of a business enterprise. As shown in the case, Jio acquired 100 million subscribers and retained 72 million through effective consumer relations.

2. Sincere Concern for Consumers — Developing better relations with consumers requires sincere concern, as consumers and consumer groups are increasingly demanding their rights.

3. Retaining Goodwill — Corporations seek to retain the goodwill of consumers by regularly communicating with them through sales representatives, meetings, surveys, mailings, magazines, and literature.

4. Quality Products and Services — Good consumer relations depend heavily upon the nature of the products and services provided to consumers. Jio retained customers after the free trial because of the quality of services.

5. Brand Loyalty — Good consumer relations help build brand loyalty. Despite the perception that trials erode brand value, Jio created strong consumer connections, proving that consumers value both the brand and value-for-money.

6. Repeat Sales — Satisfied consumers lead to repeat purchases and long-term revenue for the business.

7. Positive Word-of-Mouth — Happy consumers spread positive word-of-mouth publicity, attracting more customers and building the company's reputation.

8. Competitive Advantage — Strong consumer relations give a business a competitive advantage in the market, as evidenced by Jio's success in the intensely competitive Indian telecom market.