PC UPS
APC on the top
The PC UPS category witnessed tough competition between APC and Numeric for the first position. However, APC won the channel satisfaction crown because it achieved high scores on product availability, price-performance and channel marketing. Numeric continues to enjoy the strongest mind share in the south among its peers. Still, the company lacks market coverage in the east and north where it polled the least amount of votes.
Intex was ranked third in the overall channel preference score, followed by Luminous and Microtek. Although, countrywide Microtek enjoys deeper and wider channel penetration than even Numeric, it scored low on all parameters.
The survey suggests that Intex has increased its visibility across all regions except the south. Respondents said that Intex is gaining channel acceptance because it offers a large portfolio including PCs, monitors and UPSs.
Luminous, which started engaging with IT channels only in 2008, has done a good job of increasing its distribution coverage in the east, west and north. However, in the south it failed to get a single vote, which suggests that it lacks channel connect in the region.
Product availability
APC is the most widely and evenly distributed brand in the category. Its efforts over the last year and half to increase its reach in smaller cities (through its distributor Rashi) have ensured penetration in these places. During the year the company introduced a select sub-distribution network to focus on the retail segment.
Numeric enjoys a very strong channel penetration in the south followed by the west. However, in the north and east, the company lacks coverage. Microtek has wider market coverage than Numeric, yet it was ranked lower than Numeric.
Intex has better coverage compared to Luminous which still has to achieve channel penetration among IT channels, the way it has done with inverter channels.
Price-performance
APC leads on this parameter due to the perceived high quality of its products, while Numeric ranks second. Although APC’s products are priced slightly more than those of other players, they are preferred because of the customer’s brand awareness and perception of better quality. Luminous is rated to have a better price-performance than Intex and Microtek, a perception that perhaps arises because the company is a leading inverter brand.
An entry-level UPS from APC is priced at Rs 1,850, while the same product from other players is available in a range of Rs 1,650-1,750.
Partner profitability
While most respondents said that margins on consumer and SOHO UPS products are not good across all brands, they ranked APC higher on this parameter because of the slight premium in price it is able to charge, and also because of its greater volumes. Numeric offers good product margins but does not have the premium pricing advantage or volumes which APC enjoys. Due to its larger portfolio, Intex is able to offer product bundling to channels which they say provides it better margins than both Luminous and Microtek.
Marketing and training
On this parameter APC ranks ahead of Numeric, followed by Intex, Luminous and Microtek. APC enjoys a strong brand-pull. It has established a connect with the channel through various communication initiatives, including a monthly magazine that provides partners with regular product updates, marketing tips and information about new schemes.
APC has also focused on brand awareness by advertising through various media even in small cities. Also, the company ran channel schemes that benefited even the smallest retailer who sells only 1-2 UPS in a month.
Numeric has brand-pull in the south where it has traditionally been strong and does a lot of channel-focused programs.
Respondents appreciated some of the bundling schemes done by Intex which helped them sell both PCs and UPS. Partners opine that Microtek is a good product in the low-end segment, but needs a lot of effort on customer marketing and brand awareness to make itself visible. Luminous’ channel and customer marketing is low; however, in smaller cities, particularly in the north and east, the company enjoys good brand awareness.
Post-sales support
While overall APC ranked first on this criterion, in the south the company took a bashing compared to Numeric. As per respondents, Numeric, with its strong network of ground engineers, offers an enviable post-sales experience in the south. Intex and Luminous were ranked third and fourth, while Microtek ranked the lowest. All vendors offer a standard warranty of two years on the product and one year on the battery.
Channel policy and management
APC, which had issues with channel management in 2008, has significantly improved its engagement and relations with channels. To cover smaller cities, the company, along with Rashi, appointed a sales coordinator to engage with channels beyond 60 cities.
Numeric ranked second followed by Intex, Luminous and Microtek. Intex has been aggressive in building its channel network especially in class C cities; by virtue of having a larger portfolio of other IT products, it enjoys a stronger channel connect in smaller cities compared to Luminous and Microtek.
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