C Quest, the country’s leading IT user magazine, ranked APC as the most
preferred UPS brand for the fifth consecutive year in 2001. According to
the magazine, buyers, especially corporates, chose APC for its quality and
reliability.Â
This customer preference for APC is reflected in the revenue growth of the
company as well. During 2001-02, APC’s revenues grew by 10 percent. On the
other hand, according to MAIT, the UPS business in the country shrank by 10
percent!Â
The UPS industry in the country is characterized by the organized and
unorganized sectors. The low entry barriers and extremely low overheads in the
unorganized sector have ensured that innumerable UPS brands are available in the
market that eat into the market- share of brands emerging from the organized
sector.
Quality |
|
Strengths | |
Quality and reliability | |
Wide service network | |
160-280 volts AVR with automatic shutdown software |
FIGHT FOR MARKET SHARE
In the organized sector, the major players include APC, TVSE, Wipro,
Powerware, Elnova, Champion and Numeric. These fight with the regional and
local brands based on quality, support and technological features to gain market
share.
But the disadvantage the national brands face is that the prices of their
products are on the higher side because of higher overheads involved. APC,
however, justifies its costs on the basis of the quality of its products and the
additional technological features that it offers including automatic shutdown
software.
COMPETITIVE ADVANTAGES
Says Anand Iyer, Country General Manager, APC (India), "The regional
players operating out of cities are a threat to all national brands. But with
majority of these UPS manufacturers, quality becomes a major concern."
Anand believes that quality is the top criterion for buying an UPS. Service
and support is the next major issue among corporate and SMB segments. Since this
segment of buyers needs large UPSs to backup all systems, and can´t do without
power, come what may, these two issues become important when buying a UPS.
CHANNELS FOR REACH
The recent tie-up with Tech Pacific India Ltd as the sole distributor for
its Back-UPS range of products is expected to give a greater reach to APC
pushing up its sales. Anand points out that APC is also envisaging to develop a
countrywide network of authorized Back-UPS dealers who will function as
exclusive sales outlets for APC products. The program aims at targeting 350
cities in a 12 months time period and hopes to increase the number to 500 cities
in two years time.
While underlining the new marketing initiatives, Anand points out that APC
will try to ensure that its customers got the right kind of solutions. The new
marketing initiatives are also meant to reach APC customers in an efficient
manner. Describing APC as the most trusted brand and ISO certified, Anand says
that his company’s products are best suited for Indian conditions and had the
lowest failure rate. "The acceptable industry failure rate is about four to
eight percent, while APC’s is only about 0.5 percent," says Anand.Â
APC products carry a warranty of four years which has worked to the advantage
of the brand and pushed it ahead of competitors. Its ‘swap warranty’ concept
is expected to provide greater acceptance to APC products.