Reliance is launching sachet pricing for mobile VAS – for example, instead of paying Rs. 30/ for your ringtone, pay Rs. 1 every day.
The strategy is targeted towards prepaid customers (85% of Indian mobile users are on prepaid plans) as well as rural India/BoP segment – and if well executed (i.e. if Reliance is still able to maintain margin), this can change the face of Mobile VAS pricing in India.
Mobile VAS in India – Key Drivers
From our earlier article on Mobile VAS in India and Key Drivers:
Over 60% of women indicated they would subscribe to VAS SMS bundle offers compared to around 47% men, similarly 56% of women would subscribe to “unlimited songs download” as against men (46%).
Mobile VAS – What do Indians need?
What works for Indian mobile users? Have a look :
Mobile Vas in India - What do Indians need?
Sachet pricing will bring more needs/wants from the end users and is surely an interesting play to watch.
What’s your take on Reliance’s sachet strategy?
Recommended Read (on Mobile VAS in India):
- Mobile VAS in India: Numbers that you should know
- Your Mobile has a Multiplex – UTV Launches Audio Cinema
- Airtel to launch Virtual Phone Numbers – You can have 10 numbers on a single SIM!
Aside, Reliance started it’s GSM service few weeks back (has 70 million total subscriber base) and is currently in talks with China Mobile, for a strategic alliance and possible equity participation of 5 to 6 % (to raise funds for 3G auction).
How about giving free like, if you buy shampoo/oil/ any FMGC sachet they can give this 1 Re talk time sachet free and the amount they can claim from fmcg companies.
any more thoughts on this ?/
On Airtel, an app worth 99 rupees a month, already goes for 25 rupees a week pass.
Not with callertunes yet, but Tata Tele already does sachet pricing with its applications and other paid services – smaller value for smaller periods.
Billing failure and retrials for prepaid customers, is a huge way of revenue leakage for most subscription based VAS players, so some way or the other, smaller billing denominations are the way to go.
Well this is not new to Indian market. Companies have already been practicing that especially for prepaid users. As a matter of fact, BSNL was not charging any subscription fee until Dec 2008.