Wednesday, August 13, 2008

APJ Inc. losing market share

APJ Inc. entered the PJ market in hel(L) a year ago. The PJ market then, was saturating with potentially strong and established players like Anand Vaidya’s ‘God & Co.’, Niranjan Pai’s ‘PaiN & Co.’, Nikesh Rathi & Co. and Rohit Marathe & Co. The target for APJ Inc. was a challenging one. Competing against senior and established players, APJ Inc. had to create a brand image for itself.

The strategy followed by APJ Inc. was – delivering high quality PJs, by far the best hel(L) had ever seen, publicity and distribution through a variety of channels viz. Orkut, Batchmails, GTalk status messages, Yahoo groups, word of mouth publicity at gatherings etc., wider reach to the PGP22 and PGP23 customer base through Orkut and GTalk friend lists. In a few months of entering the PJ market, APJ Inc. was a dominant player and had not only grabbed a major market share, but virtually created a monopoly for its products in hel(L).

However, after the change in leadership, APJ Inc.’s focus on its primary product has been continuously declining resulting in lower outputs and shrinking market shares. APJ Inc. still holds the brand value for PJs, thanks to the ‘good old APJ’, but its dominance in hel(L) has reduced significantly. Under the new CEO, APJ Inc. is not concentrating enough on the production and publicity of its product. With a lot of new players entering the market from PGP24, it will be interesting to see if the new CEO succeeds in regaining the market share and dominance of his predecessor.

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