Marketing of Antivirus Softwares

7/28/2019 Marketing of Antivirus Softwares

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INDIAN INSTITUTE OF FOREIGN TRADE

August 31, 2012

Authored by: Kumaresh Kar, Babita Poddar, Deepak Kumar & Chandra Chur Pan

Marketing of Services

END TERM POJECT TRANSFORMING A SERVICE AS A PRODUCT &VISE-VERSA


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Marketing of ServicesEND TERM POJECT TRANSFORMING A SERVICE AS A PRODUCT &

VISE-VERSA

ContentsCONTENTS..................................................................................................................... 2

ANTI-VIRUSSOFTWAREANDOTHERPREVENTIVEMEASURES:....................................................4

THEPROBLEMOFSELLING ANTI VIRUSESIN INDIA:................................................................5

THE SOFTWARE SOLUTIONPROGRAMBYTHEPERIPHERALVENDOR............................................6

JUPITER INTERNATIONAL LIMITED OPTICAL MEDIAMANUFACTURING:..........................................7

THE BUSINESS DESIGN:....................................................................................................8

THE ROM PRODUCTION PROCESS:..................................................................................9

ADDITIONAL FEATURESOFTHELINE:..............................................................................10

THE PACKAGINGMATERIAL PRODUCTIONPROCESS:...........................................................12

DESIGNHOUSE .........................................................................................................12

DETAILSOF COMPUTER DESIGNING & TYPESETTING:........................................................12

DETAILSOF SOFTWARE USED: .....................................................................................13

PRE-PRESS SECTION...................................................................................................13

PRESS SECTION.........................................................................................................14

POST-PRESS SECTION.................................................................................................15

LOGISTICS SUPPLY CHAINFOR JIL.....................................................................................15

THE SERVICE PROMISE:...............................................................................................16


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Improving the Supply Chain to be more economic & efficient

The market size of Anti Virus & Security software in India is worth 2500 Crores, eachyear new threats emerge for an ever growing Computer market & hence historicallythere has been a significant growth of the Security Software companies whichprovide services ranging from data security to data storage & monitoring, thegrowth is exploding exponentially with the advent of more digital convergence withthe integration of products such as PC, Smart Phone, Tabs so-on & so forth.

There has been an increasing demand among both the individual & corporateclientele to safeguard its data content from the ever growing threats, the safetyneed has ushered in the mushrooming of various Antivirus & security companieswhich specializes in Data safety on both online & offline platforms.

The role of software development

Software is often designed with security features to prevent unauthorized use ofsystem resources, many viruses must exploit software bugs in a system orapplication to spread. Software development strategies that produce large numbersof bugs will generally also produce potential exploits.


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Anti-virus software and other preventive measures:

Anti Virus can detect and eliminate known viruses after the computer downloads orruns the executable. There are two common methods that an anti-virus softwareapplication uses to detect viruses. The first, and by far the most common method ofvirus detection is using a list of virus signature definitions. This works by examiningthe content of the computer's memory (its RAM, and boot sectors) and the filesstored on fixed or removable drives (hard drives, floppy drives), and comparingthose files against a database of known virus "signatures". The disadvantage of thisdetection method is that users are only protected from viruses that pre-date their

last virus definition update. The second method is to use a heuristic algorithm tofind viruses based on common behaviors. This method has the ability to detectnovel viruses that anti-virus security firms have yet to create a signature for.

Some anti-virus programs are able to scan opened files in addition to sent andreceived email messages "on the fly" in a similar manner. This practice is known as"on-access scanning". Anti-virus software does not change the underlying capabilityof host software to transmit viruses. Users must update their software regularly topatch security holes. Anti-virus software also needs to be regularly updated in orderto recognize the latest threats.

One may also minimize the damage done by viruses by making regular backups of

data (and the operating systems) on different media, that are either keptunconnected to the system (most of the time), read-only or not accessible for otherreasons, such as using different file systems. This way, if data is lost through avirus, one can start again using the backup (which should preferably be recent).

If a backup session on optical media like CD and DVD is closed, it becomes read-only and can no longer be affected by a virus (so long as a virus or infected file wasnot copied onto the CD/DVD). Likewise, an operating system on a bootable CD canbe used to start the computer if the installed operating systems become unusable.Backups on removable media must be carefully inspected before restoration. TheGammima virus, for example, propagates via removable flash drives, thereforebased on their needs people need Anti Virus.

In December 1990 the First Anti Virus protection service appeared thatrevolutionized the business: It was called the Norton antivirus the, later on the samewas made online so that the user can get regular updates of newer antivirusprograms developed by the company for a period of 1-3 years based on the userspurchase of the license period. During the period it was the companys duty toprovide protection.

In 1995 almost 50% of infections were caused by boot viruses, today 85% of viruses


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are macro viruses.

Also, today we can observe that more and more e-mail viruses appear, making theinternet worms the most severe threat.

The problem of selling Anti Viruses in India:

In India most of the buyers buy assembled PC units from a wide body of ComputerPeripherals, even Business buyers use their PCs or Digital devices for more than 3-4 years on an average therefore there are two options with the PC buyer, he maychoose to get the security software along with the machine from the licensedvendor in a packaged form or the user procures the same from a software shop asan on shelf product, now when he buys the product & loads it on to is machine thelicense key activation provides him a contract for a period of 1-3 years as per hischoice.

The assembled market holds endless possibilities to these antivirus developing &marketing companies& With the prominence of ICT & the large scale proliferation of Computers from

being an Office Machinery to Household Desktops & the increasing use of Internetthe need of Safely & securely protecting ones Data & Machine has grownexponentially.

The safety needs of individuals & Companies have catapulted the growth of AntiVirus Service providers, these service providers cater to the clients by the way ofdedicated online Servers with Virus Data bank, uploading new antivirus programson the servers to be downloaded to the host computers.

They continuously manage Threat by the way of development of new antivirusprograms & keeping a track of the viruses in circulation online. The service starts assoon as a Host/customer purchases a Antivirus user license from the service

providers either downloaded the initial data bank from the online server or by theway of buying a off the shelf Content CD-Rom in a packaged form and running theexecutable Anti Virus software which runs in the background.

For the AV companies the online solution is easy to provide as all they need to do isprovide a user with a license key after payment to their online gateway & the usercan download & install the program.

The problem these companies face with the price sensitive Indian consumers whochoose to buy an off the shelf product. For an off the shelf product the AV


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companies previously used to buy a Blank CD-R get it printed packed it in a productpackaging & send it to the channel incurring huge costs & supply chain Bottlenecks,as because the AV companies has limited Number of offices hence catering tohighly diversified & dispersed channel from the metropolitan cities to B & C ClassCities & the rural market posed a challenge in its own.

The Software Solution program by the peripheralvendor.

Jupiter International Limited (formally Jupiter Agencies Pvt. Ltd.), an ISO 9001Company, founded in 1978 is one of the major IT Hardware Catering House in Indiawith FRONTECH as its flagship Brand. JIL manufactures and imports wide range ofComputer Hardware products and is also engaged in the Distribution of exclusive ITGlobal Brands through a well established own network in all the States of India.

Jupiter is having its Registered, Head and Corporate Offices in Kolkata,Manufacturing units are in Baddi (Himachal Pradesh) with Four Zonal Sales Officesat Bangalore, Delhi, Kolkata and Mumbai, along with Two International Offices inChina and Taiwan. The Company has 25 Branches on Pan India with a strength morethan 500 employees. Since its inception, JIL has been a pioneer in early Technologyadaptation and Transformational innovation and has more than 300 distinguishedproducts integrated into a spectrum of 45 product categories. Their immensesuccess stems from our ability to improve, innovate and constantly re-orient thempropelling JIL to remain at the helm of this niche market.

The innate culture of Commitment and Innovation, coupled with positive co-existence among their Clients, Business Partners and Stakeholders created adynamic and fluid network of feedback and research which ultimately benefitted theChannel Partners and Consumers. Their Policies, Strategies and Management hadproved to be competent at keeping them at the peak of the IT Hardware andPeripherals Industry.

JIL spearheads the market with its Innovative Products such as Frontech HomeTheatre System with Video output (the first ever of its kind in India), FrontechHeadphone with USB, SD Card Port, 5.1 Channel experience, Gaming Devices withUSB, SD Card slot facility. Our Product portfolio also includes Monitors, Computer


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Cabinets, Mouses, Keyboards, Mother Boards, Hard Disk Drives, Head Sets,Microphones, and Optical Media etc.They had given themselves a leading edge amongst Companies with a similar

Product line with Consistent efforts to broaden their product portfolio by adding newproducts now and then, their annual turnover of Rs. 500 Crores of the 4360 Rs.Crores annual market in India gives them roughly 13% market share, however

seeing that the market is crowded with almost 23 National & 12-15 regionalcompetitors of this highly price sensitive market where Frontech (JILs in Housebrand) carries a sticky price retaining its market share speaks voluminously aboutthe companys performance.

JIL Network or better called JIL Family constitutes support from its ChannelPartners which includes Distributors, Dealers and Resellers along with the dedicatedworkforce of over 500 employees and with this valuable support from its loyal team,the Company has been able to cement its position in todays competitive marketand has built credibility amongst several million satisfied end users. JIL has state ofthe art ERP implemented across all its facilities & a manager from any part of thecountry can monitor the status of Goods services personnel at the click of a mouse

based on his requirement.

Jupiter International Limited Optical Media manufacturing:

Jupiter, an ISO 9001 Company, has constantly challenged the frontiers of newTechnologies and has ventured into the areas spanning from IT Hardware to OpticalMedia and Consumables. To promote the growth of the company, JIL has set up itsown Manufacturing facility of Optical Media in Baddi, Himachal Pradesh. The planthas been set up in Technical Collaboration with Germany based Singulus

Technologies. The equipment and technical knowhow supplied by SingulusTechnologies enabled the company to produce various models of Optical Media,matching World Standards at Indian prices.

JIL used to cater to the price sensitive mass market of manufacturing of blank mediaused basically for domestic use & 10-15% for export, the product so manufacturedwas a generic product which serviced mass clientele & over the years withincreased commoditization of Optical media the brand value of JILs Optical mediawas on a verge of decline. In 2011 having successfully implemented and managedthe High Technology project related to Optical Media Manufacturing, the companydiversified into the manufacturing of CD-ROMs.


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With the margins in the sale of Generic Optical media (CD-Rs) thinning JILsmanager saw an opportunity presented by the highly fragmented & unorganizedsupply chain of the Antivirus Market.With an intent in transforming the Company from a product oriented company toproviding service to business clients Jupiter International Limited (Brand Frontech)Came out with a solution to service the Anti Virus service providers.

Frontech has now taken over the production of AV CD-Rom & it is providing an endto end solution to the AV companies it has over 22 Branches so it can ship thematerial in a timely manner to any location more efficiently & economically to thechannel improving the bottom-line with its huge economies of scale theprocurement costs are minimized & since it specializes in packaging & productionthe entire solution is well evolved for the AV companies.

The Business Design:

The business design is made to provide convenience to the Anti Virus companies so

that they can remove their personnel altogether from the production & distribution

process & focus on their core competency of developing & marketing Anti Virus

Softwares.

The process starts with the procurement of order from an Antivirus ProgrammingCompany, they provide a Software master & License key to Jupiter which they would

like to sell to domestic Indian consumers.

Jupiter takes the master disc & replicates it on a CD-Rom using its state of the art

production house facilities at Baddi Himachal Pradesh.


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Jupiter undertakes a backward integration process & has developed printing

facilities with regards to the Optical media & its license keys in state of the art

Offset & security bar code printers respectively for the two processes, further JIL has

established long term contractual tie up with packaging materials manufacturers

who would supply international class retail boxes, inlays, CD Jackets printed with 3-

4-5 Color schemes & art work as per the customers discretion.

To minimize cost the Vendors of packaging materials are given works contract on

labor charge (per boxes) with a built in scrap margin, JIL has made an arrangement

with Various Multinational paper & Boards manufacturing companies like the ITC &

West Coast who supply paper as per requirement in a real time (Just in Time)

delivery mode to the vendors. The same process of JIT delivery is followed for other

raw materials inputs like the Polycarbonate (required for CD-ROMs its Dies,

varnishes, Silver targets & Special Chemicals & Acids required for the production

processes).

Upon confirmation from a Customer a JIL Shop order is raised manually & after thatthe entire program Schedule is calculated & mailed in an Automated manner to all

the parties involved (detailing the unit wise & total requirement for each ingredient

required for production, the software even gives a statement of the inventory in

store & the amount required to be indented.

The lead time with various probabilities are fed in the system so the system

calculates & flashes the total Turn round time required to complete the process

from end to end.

Once the production is complete the entire product lot is transferred to the Logistics

Department.

The RoM Production Process:

The said production is done on the state of art Singulus machines that too on its

EMOULD SERIES- WELL ENGINEERED ALL-ELECTRICAL MOULDING MACHINES

The SINGULUS EMOULD All-Electric Moulding Machines is One Machine for All

Optical Disc Formats:


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This vision became true when the first EMOULD electric moulding machine for

optical disc was bought by JIL seven years ago. Its an approved base machine

which runs many thousand times in standard moulding applications. Together with

seven years of experience in electric moulding of optical disc the EMOULD machine

now offers JIL much higher precision than comparable hydraulic and hybrid

machines used by the various competitors.

The Features of Using this machine are:

Less energy consumption

Less water consumption

Extremely quiet in operation

Higher productivity because of higher uptime and yield

Leading role in comparison to other electric moulding machines

The technical superiority of electromechanical injection moulding machines over the

hydraulic design provides a significant strategic competitive advantage for all

current and future optical disc formats.

The proven design concept, continuous development and a maximum of process

experience make the EMOULD machine to the leading moulding machine, among

the group of manufacturers of electric machines. The injection moulding machine

known by the brand name EMOULD is built on a base machine manufactured by

FANUC, the global leader in electromechanical injection moulding machines.

The Japanese company FANUC has exclusively transferred the long-term world wideuse of its machines for optical data storage to SINGULUS EMOULD in Germany.

SINGULUS TECHNOLOGIES AG has certified the EMOULD all-electric moulding

machines for all existing optical disc formats like pre-recorded and recordable, as

well as rewritable media. SINGULUS EMOULDs performance and quality has

surpassed meanwhile the previous benchmark among the competitors.

Additional Features of the line:


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All Electric No Hydraulic Oil

Energy saving

No oil cooler needed

Clean, quiet, user friendly

Controller/Servo Motors

Digitally controlled AC servo controllers

Maximum repeatability

self-optimizing temperature control

Pressure profile traces control

Metering control Reproducibility

Rigid machine and platen

construction

Pressure feedback system

Precision positioning (10 microns)

Consistent process capability and

quality

Low Maintenance

Automatic lubricating system

Reliable controller/servo system

Service data storage

Built-in self diagnosis

Good accessibility

State of the Art Engineering

Synchronized operation

Screw and barrel optimized


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Drive concept improved

Spruce detection

Enhanced interfacing

Compact design

The Packaging material Production process:

Design houseFor Continuous development JIL has undertaken the job of an in House designing

process for is Customers the design inputs are taken from the buyers & a team is

allocated who undertake the process Free of Cost to the customers via Tele

Conferencing & Video Conferencing.

Details of Computer Designing & Typesetting:1. SONY VIO Laptop Pentium Duo Core 2 with 80GB HDD, 1 GB RAM, DVD WR Drive

and LCD

2. Hp Laptop Pentium Core 2 Duo with 160GB HDD, 2 GB RAMS, DVD WR Drive and

LCD 14.2screen

3. Intel Duo Core Desk top Pentium IV (2.8GHz) with 256 GB HDD, 2 GB RAM, DVD

writer and TFT 19

4. Intel Duo Core Desk top Pentium IV

(2.4 GBZ) with 160 GB HDD, 2GB RAM

DVD writer and TFT19

5. High-end Scanner, HP Scan jet

3500C, HP Scan jet 5500CXI with

transparency Adopter for high-end 6.


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High-end Laser Printers HP Laser Printer 4050 (A4 Size), HP Color Laser 2010 HP

Laser Printer 1100

7. (A4 Size), HP Colour DeskJet 845C

Details of Software Used:1. Windows XP, Vista

2. Corel Suite X3, X4

3. Adobe Photoshop CS3

4. Adobe Illustrator CS3

5. Adobe PageMaker

6. Free Hand 10

7. Adobe Acrobat

8. Office Tools (MS Office 2007)

** 24 Hours Internet Connectivity through DSL service

Pre-press Section

The Prepress Department at JILs vendor end uses processes input files received

from customers and gets their approval on either hardcopy or softcopy proofs.

These processed and approved files are used to make plates which act as the

master copy for the copies reproduced. They handle inputs supplied in a variety of

industry standard formats on both Mac

and PC platforms. The received files

are checked for any issues with fonts,

images, bleed, etc. and any

corrections needed are carried out.

The Prepress team is skilled in


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carrying out any colour-corrections / touch-ups / cut-outs required in the job. Apart

from the industry-standard Photoshop, specialized software such as Color Tone /

ICISS / Human Eyes 3D are used to carry out colour-correction / separation / 3D

separation, etc. Proofs are sent to customers in either softcopy (PDFs through

email/FTP) or hardcopy (colour-calibrated inkjet proofs) for their approval. The

Epson proofers are driven by the industry-leading GMG Color Proof software and arecalibrated and colour managed to give a close match to the results achieved on our

offset presses. Once the proofs are approved, the files along with the approved

reference proofs are sent to the output team to make Plates on our Computer-to-

Plate (CtP) systems.

The Esko Graphics Scope workflow is used for Ripping, Trapping, Imposition and 1-

bit TIFF output. These are output on Creo Trendsetter and Screen Plate Rite CtP

systems. The final approved files are also archived on completion of the project. A

fully backed up archive of jobs for over a year is maintained. Should the need arise

to reprint or repurpose the data, the customer can rely on the data repository.

Press Section

The Vendors are equipped with state-of-the-art printing machines from Mitsubishi

and Komori, in configurations up to 6 colors with online coating. Sheet formats of up

to 28.5 x 40 can be printed. Our latest Mitsubishi 6-colour UV Press with Double-

coater is one of the few of its kind in the world, and allows us to print on a wide


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range of substrates such as plastic, metalized surfaces, etc. apart from paper. The

double coater also opens up possibilities for a range of inline finishing options such

as the popular mix of gloss and texture or gloss and matt finishes.

Post-press Section

A wide range of finishing and binding options are available to make your project

stand out from the crowd! Various value-added operations such as foiling,

embossing, die-cutting, spot coating, etc. are all available in-house, so there is

better quality control and quicker turnaround. Highly automated machines for

binding allow us to quickly set-up and complete jobs whether they are simple or

complex and whether the quantities are small or large.

Logistics Supply Chain for JIL

The Company has its Registered, Head Office and corporate office in Kolkata it owns25 Branches / Sales Offices across the Pan India and Four Zonal Offices in


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Bangalore, Delhi, Kolkata and Mumbai. Jupiter has a total Goods movement of atune of 1800 Tons Per annum & hence has its logistical tie ups with Industry giantssuch as:

Blue Dart (Both for land & air cargo)

FedEx Both for land & air cargo)

Shree Shyam (Fly king for small B & C Class Cities)

Om Logistics (For Domestic Cargo FTL)

DHL (For International

Geodes Wilson (For International Shipments as a Freight Forwarder).

The result of these tie-ups means that JIL enjoys the best Freight rates in theIndustry & is able to move Goods across the country smoothly economically & fasterthan its competitors.

Upon the handover of Goods to the Logistics department JIL employees go through

the record in their ERP & arrange for the delivery of materials based on the priorcontracted rates with the Customers to various destinations.

Say for example if a company called Rx Secure Anti Virus has opted for delivery at

Delhi via Land & Bangalore via BD AIR then JIL would ship the materials to Delhi on

a LTL mode via Om logistics to Delhi but to Bangalore via Blue dart Air mode at the

pre negotiated rates the billing to the JIL branches would be on branch transfer

basis & the Freight component will be in built during the finalization of contract

itself.

The billing to JIl branches saves the additional outgo of 2% CST that the Companies

would have incurred if JIL was unable to bill it across the country now this 2% is ahuge saving where the Invoice values of an AV is a minimum of Rs. 400-500 while

the quantities are in Million units.

After reaching the branches (I.e. the 22 major cities in each major state across the

country) the AV retail Boxes are billed to the Channel.

The Service Promise:

To keep things simple Jupiter International limited has undertaken a one contactpolicy for the Antivirus manufacturing companies. One Corporate customer with a

thorough understanding of the market, Production, distribution & logistics is in

charge of the entire supply chain operation of the affairs. He she interacts with the

marketing department of the AV company every alternate day, he / she is in charge

of the Account balances & both way remittances, from the customer end to the

vendors & is solely responsible for the maintenance of records of inventory & giving

& taking orders from either end.


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The one point contact is backed up with meticulously kept historic record of each &

every communication in the ERP & in the personal hand held device that is made

available to the person, every back up has a back up data storage facility which is

cross checked by the corporate sales Supervisors at JILs Head office, the entire

gamut of checks & balances are put in place to make the entire system process

driven & not person driven to make the service more responsive & accurate.

The service of Antivirus now on 43% of the Indian PCs is in one way or another

supported by a product called the Anti Virus Product off the shelf pack available

across computer stores. But the true service offered by JIL to the AV Manufacturing

& marketing Companies serves as the back bone of the off the shelf product.

Documents

Marketing of Antivirus Softwares