By Varun Aggarwal, CRN, December 4, 2009, 1500 hrs
Low-cost antivirus players are eating into Symantec’s market share in the consumer antivirus segment. To counter the attack and regain its past glory, the security vendor has evolved a dual brand strategy.
Symantec has introduced a low-cost antivirus range under the brand name PC Tools—namesake of the company it acquired in August 2008. Products from PC Tools are available at almost one-third the price of Norton consumer products.
PC Tools Antivirus is available at an MRP of Rs 500 for a three-user license—including Spyware Doctor utility—and the Internet Security suite costs Rs 800, as compared to Rs 1,995 for Norton Antivirus and Rs 2,495 for Norton Internet Security.
“The two brands have different price and customer positioning. While Norton will continue to target the premium user, PC Tools will be targeted at the mainstream and price-conscious user,” said Shafi Shanavas, Director, Product Management, PC Tools.
PC Tools will leverage the distribution and sales infrastructure of Norton. “We will sell the new brand through the same distributors and sub-distributors, and share the sales and support infrastructure of Norton,” Shanavas added.
The two-brand strategy is seen as Symantec’s bid to recapture the lost ground in the consumer space. Once a market leader, Norton has seen its market share dip substantially due to large price differential compared to several of the Indian and international players.
In October 2009, Symantec slashed its prices by more than 20 percent. Prices of Norton Antivirus 2010 single-user license were slashed to Rs 1,195 from Rs 1,645. However, they still remain higher than competition.
Lowering prices further would have affected the premium positioning of Norton, as well as led to unfair trade practices. Since Norton products in India are up to 40 percent cheaper than prices in US, there is always a risk of reverse export from India to international markets. |