CASE STUDY - NORTON
Norton Symantec Background
Our first software customer was Symantec. Founded in 1982 with a company revenue of $6.7 billion. Symantec has grown into a Fortune 500 company through a combination of internal development, strategic acquisition and partnering with industry leaders.
Our first meeting with Symantec team was over a cup of coffee. The first statement that the team delivered was Symantec had blocked more than 5.5 billion malicious attacks in the year, more than 80% prior year. We were impressed. One of the growing trends was the growth of mobile malware which in the same year sales of smartphones will overtake shipment of PCs (364 million). And one other interesting revelation is that Mac-based devices are not immune to threats.
Understanding Norton Symantec Objectives
One of Symantec’s product was Norton Mobile Security available for both Android and Apple OS. And the Symantec team has planned to launch the product in the region with their partners. The Norton Mobile Security targets to prevent mobile risks such as data collection, user tracking, content dissemination, change settings and other traditional threats. Symantec had to find a way to promote their product to their customers. And at the same time make it compelling for their customers to choose Norton instead of their competitors. Kaspersky, Trend Micro, Mc Afee and AVG forms the largest contenders to the mobile security business. Symantec wanted to launch it regionally and needed some ideas on how to market their mobile security software.
We took one step further to integrate with Symantec’s sales and marketing team to better understand their PIP (Product Introduction Plan) and their sales and marketing strategies.
The 4Ps of Norton Symantec Mobile Security – Marketing Mix
- Product – This is the most important aspect of Symantec’s philosophy. Norton Mobile Security has additional features compared to their competitors as follow:
- AVG – Antiphising Web Protection, call and SMS blocker
- F-Secure – SMS Scanning, call and SMS blocker
- Mc-Afee – Anti-Malware scan, Automatic live update, SD card scanning, SMS scanning, Antiphising Web Protection, call and SMS blocker
- Trend Micro – SMS scanning, SD card scanning
- Kaspersky – SMS scanning, Antiphising Web Protection
- Price – Symantec maintain a cost-benefit price policy that stacks benefits against their competition when setting their price. In doing the USPs (unique selling points) are clearly defined to their customers.
- Place – Symantec has joined hands to form distribution and retail partnerships so that stocks are readily available. Other than selling at brick and mortar shops, Symantec invest heavily in selling online.
- Promotion – Promotion is the second most important aspect of marketing in Symantec’s philosophy. To stay relevant, Symantec make efforts to design and plan retail programs to maintain ground presence and partners’ support.
At the same time, we identified some of Symantec’s pain points.
Identified Pain Points
1. Mobile Security market highly competitive and rival brands are lowering their retail price to expand market share
- Symantec wants to maintain premium brand positioning without lowering their retail price
- Customer wants to see match value when comparing between Symantec and their rival brands
- Not every mobile user owns a mobile security software, how can Symantec market their software to their target audience?
We recommended for Symantec to improve their Promotion by offering a gift that is relevant to their customer. And if their target audience are mobile phone users, the obvious choice is to select a gift that connects with the mobile phone daily. Taking into consideration cost factor, we recommended in-ear earphones.
We helped Symantec source for a pair of in-ear earphones that is affordable relative to the market price. We did a market survey and the average market price for in-earphone of major brands were between US$50-$200 depending on technology. It was a product of relatively high value. With the proliferation of music app stores, mobile phones are increasingly used for listening to music.
Symantec agreed to the project. The project was to manufacture the in-ear earphones for Singapore and ASEAN region.
Symantec wanted to brand the in-ear earphones under Norton. We designed custom-made packaging box with Norton logo. We also introduced laser printing to incorporate Norton logo on the in-ear earphone.
After the designs were approved, we worked with our factory to produce working prototypes. We ran through a cost and benefit analysis to determine the project target price. We delivered the working prototype to Symantec for evaluation. At the same time, we improved on the sound drivers of the earphones. After product evaluation is complete we document every feedback that Symantec has on the final product. With Symantec’s final agreement on the final sample we move on to the next stage – Production.
Before production started, we shared with Symantec our factory inspection report. Our factory has manufactured for major brands such as Philips. The report showcase a summary of our factory’s capabilities and experience in managing global projects. The lead time at start of discussion was forecasted at 35 days for 5,000 In-ear earphones. At every stage of production, we give a timely update to Symantec on the completed production line. Example, after the laser printing is done on a batch of in-ear earphones we sent the photos to Symantec for updates.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 5 QC tests that are done for an in-ear earphone. One of the critical test is the sound reproduction of the earphone driver.
We completed the production in 15 days, 5 days ahead of time. A full day was taken for quality inspection. Every in-ear earphone was inspected and marked with a “QC passed” label. After updating the QC report to Symantec, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored boxes of in-ear earphones in 7-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). Each carton box holds 50 packs of in-ear earphones and are printed with our standard labels. We informed our shipping company to be extra careful when handling the carton boxes, and at the same time installed wooden crates for added protection. The shipment from China to Singapore took around 7 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our wireless headphones are finally shipped to Symantec’s warehouse.
Symantec introduced the in-ear earphone gift at the region launch and found success with her retailers and distributors. The customized earphone and packaging box with Norton logo helped Symantec gain traction in mobile security sales. Customers were influenced with a relevant product that matched their daily lifestyle. As such the project found success.
All stocks sold to Symantec was given an additional 1% buffer stocks as one-to-one exchange done by Symantec’s distributors. After 2 years of product warranty review, the 1% buffer was not used. This represents a 0% defect rate for our products.