JETSTAR is one of the world's leading brands of computer peripherals, owned by Acme Inc. Despite success in most world markets,
JETSTAR remained an also-ran in India even after seven
years of operations. Acme Inc. engaged Denave and was
able to transform their fortunes, as they rewrote their
strategy and penetrated the Indian market with a low-investment,
risk-free model developed by Denave's Channel Strategies
division.
Before Channel Strategies
And Jetstar Association…
Prior to our engagement with Acme Inc., this world leader
in computer peripherals had struggled in India for seven
years. During this period they had entered into two
joint-ventures and one OEM relationship, all of which
failed to fuel growth for the corporation. They had
given up and finally consigned themselves to a strategy
of remote distribution for their products. The entire
operation was run as an offshore operation. Not surprisingly,
the results were unflattering:
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False illusion of adequate market
coverage because of Distributor presence
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With 35 channel partners across
the country, they had less than 1% market share
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Non-existent service support by
the JV partners resulted in deeply unsatisfied customers
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Negligible
product awareness existed even among resellers,
with absolutely no end-user mindshare
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No dedicated channel partners meant
no mindshare and hence no channel strategy |
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In all, the world leader was reduced to a non-player in
the Indian peripheral market. At this stage JETSTAR was
looking for an alternative methodology to revive their
business, and they found their answers from Denave.
Denave's Channel
Strategies approached JETSTAR with an offer for a recalibrated
business plan for the next 12 - 18 months, with a clearly
defined mission: to capture double-digit market share
in India. After receiving the nod, the Channel Strategies
team worked out a comprehensive growth strategy,
making use of Denave's proprietary '6 E' methodology
of Business Engineering:
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Envisage |
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BluePrint |
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Empanel & Enroll |
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Empower |
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Equip |
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Engage |
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Ensure |
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With a growth strategy in place,
it was time for a formal channel strategy, with simultaneous
recruitment of partners under two programs covering the
breadth and depth of India's IT business space:
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A breadth program for partners which ensured contact
and engagement with a partner base of over 1000 partners
per month
2. A depth partner
program which ensured smooth and consistent supplies
to the reseller partners, with a view to break into
territories hitherto dominated by large players.
A regular interaction (contact base of 1000 partners
a month) with these resellers assured adequate mindshare.
It also helped in gaining valuable feedback about their
problems and expectations, which in turn helped in formulating
the right policies. Highly focused and effective incentive
schemes and promotions were rolled out from time to
time keeping in mind the dealers and end-user demands.
A new channel loyalty program was a resounding success.
End-user promos helped in creating significant market
pull for the JETSTAR peripheral products.
Merely into 20 months of an association with
Denave, Jetstar has registered a complete turnaround
in its fortunes. Today it has:
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More than
18% market share (according to a highly-respected
IT market research firm) |
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Own dedicated team of resellers
and retailers |
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A semi-managed partner base of
more than 750 across 8 major cities, with 72% active
partners (minimum buying twice in a quarter) |
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To find out how partnering Denave can transform your business,
please click here.
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