Example regarding how reliance play with consumer behavior.

I want to quote an example regarding how to hit on consumer behavior aspect so as to penetrate in the market.

When reliance launched its GSM service it came with these following offers on new connection.

1. Sim at a cost of Rs. 25
2. You will get talk time of Rs 10, daily upto 3 months.
3. 50% discount on all calls during 11PM to 6Am
4. Night calling free during 11pm TO 6 Am
5. Full talk time on recharge.

Results of offering -

1. The schemes provided was such a hit , people used to stand in long queues at reliance store and ultimately this leads to a situation where getting a new sim card of reliance means waiting time of 3-4 days.
2. Black market was at its boom.( for a sim of 25 they were charging 150-200 )
3. Reliance captured a significant amount of market from vodafone and airtel.

Psychological effect or relation with consumer behavior

The new customers of reliance started to use the schemes provided like night calling and free talktime of Rs. 10 daily.
They became so habitual of these schemes and particularly among couples, they started to wake whole night so as to use the scheme to fullest.
Having a reliance Sim acted like a bandwagon effect amongst youths, and it drastically shift the users from other operators to reliance.

After effects of expiry of schemes

After 3 months reliance discontinued the schemes and this results in huge restlessness amongst its user, within three months users got so much addicted to the schemes that it was hard for them to live without talking during night( free of cost). They then bombarded the reliance outlets and and retailers to ask for solutions in form of topups or recharge.
After getting success in penetrating the market by making people habitual of its network, reliance launched its night calling plan at a nominal rate of 69 per month, and it resulted into a huge success.

Strategy used by reliance so as to use consumer behavior as weapon

Reliance gave clear instructions to all of its retailers and field agents and even its webworld, not to gave out sims to all customers when they came to purchase.

They were instructed to release the sims in batches and to sell them on FCFS approach.

Now because of this selling strategy some people got sims while others not. So it acted like bandwagon effect. and it make people think that why shouldn't i have it one??? .

Ultimately reliance got successful in marketing its GSM network by using concept of Mouth publicity only.

Current scenario

Even today if you see the customer strength of reliance, they will tell you that reliance is best network in terms of

1. Schemes
2. Night calling facility at a recharge of 69
3. 50% discount on calling rates during night hours
4. Highly lucrative SMS pack plans.
5. Lowest call rates in market.