Panjo

Panjo is a marketplace for the world’s most ardent auto, sport, and hobby enthusiasts. Existing
marketplaces poorly underserve and ignore this audience. Each year, 350M worldwide enthusiasts
spend $15B buying products, parts, and accessories from their peers through a patchwork of
inefficient methods. Panjo makes it convenient, faster, and more secure for enthusiasts to transact.

Categories- Automotive, E-Commerce, Mobile, Payments

Headquarters Regions- Santa Monica, West Coast, Western US
Founded Date- 2012
Operating Status Active Funding
Status- M&ALast

Funding Type- Series A

Number of Employees- 11-50
Legal Name- Interactive Innovation Group Inc
The founder of the company is Tom Gerken and Chad BiIllmyer

SWOC: - SWOC analysis is a strategic planning method used to research external and
internal factors which affect company success and growth. Firms use SWOC analysis to
determine the strengths, weaknesses, opportunities, and challenges of their firm, products,
and competition.
SWOC Analysis
Strength Weakness
(After-sale) Service Only 5% Patented Products
Authentic product Limited other number of points of sale
Staff Training Ineffective production cost control(Low-end
Decision making product/Employee retirement plan)
Products

Opportunity Challenges
Automobiles parts Competitors who have products of lower brands
Forming strategic alliances (especially with or in second-and –third-tier cities.
foreign companies) Under the circumstance in which they face very
Increasing online purchase high competition
Eliminates hassle

Internal Environment ( Marketing, Finance, HR, Operations):-

Marketing: - The promotional plan of Panjo Marketing Strategy requires the company to
consider the following factors:
Start with clearly defining your unique selling propositions and understand why customers
need the product and how it is different from available alternatives.
Craft the message content and evaluate how the crafted message will help customers in
creating a clear image of the offered product. Consider the AIDA (awareness, interest, desire,
action) when developing the message.
Collect the following target market information- who will buy the product? (Age, gender,
income and social status), what is price sensitivity level? And what are customers’ desired
communication modes? Incorporate this information into the promotional plan.
The popularity of social media marketing has raised significantly during the last few years.
Use of this promotional strategy will enable Panjo to reach the mass market economically. It
will also offer an opportunity to actively interact with customers, develop a personalised
relationship and manage e-WOM to get better results. However, the risk of uncontrollable
negative e-WOM remains there.
Finance: - As regard to the Company’s shareholder return policy, there aim for total returns
that comprise direct returns of profits to shareholders and medium-to-long-term share price
gains. Based on this approach, they emphasize strategic investment toward sustainable
growth and aim to maximize corporate value. Meanwhile, they adopt a basic approach of
enhancing invested capital efficiency while considering the cost of capital, in order to
increase dividends and share price over the medium to long term. In determining dividends,
Panjo focus on our consolidated business results and free cash flow as we work to realize
stable and continuous shareholder returns over the long term that target a DOE (dividend on
equity) ratio—which is a measure of capital policy—of 2.5% or higher. Also, they maintain
an approach of flexibly buying back shares with consideration for the market environment.
Human Resource (HR):- In Panjo Group, both companies and employees are maximizing their efforts
to maintain employment of workers, and our commitment to stabilize the employment certainly
complies with laws and regulations in each respective region and country. In employing workers,
upholding The Panjo Group Standards of Business Conduct and Ethics, we try to respect diversity and
to realize such a working environment that employees could feel rewarded.

Basically, Panjo introduces regular employment system, and as far as targeted candidates are
concerned, it does not matter whether it would be a new graduate or previous graduate.
Meanwhile, the Group companies also employ experienced candidates, targeting those who have
already accumulated their professional career. Offering diversified job opportunities, with an
objective of careful adjustment of employees’ working conditions, Panjo tries to organize
employment systems.

Furthermore, in case that employees could be significantly affected due to relocation to a new
branch or transfer to another office, our labor agreement stipulates that Panjo should set up a
committee consisting of management and labor union members to sincerely discuss and settle
specific problems for an immediate solution.

Operations: - Panjo carried out in its products business—the nucleus of the Panjo Group’s
operations—and focused mainly on strengthening the sales capabilities of Panjo’s domestic
products business and its business in the rapidly growing US market. Panjo has designated
fiscal 2004 as the year when it finishes its “Management Reforms Focusing on the Sales
Front,” and we expect that efforts to bolster the sales capabilities that drive our sales front
operations will yield concrete results.
Micro Environment-COSMIC:-
Customer: - The main purpose for the existence of most organizations is to satisfy the needs and
wants of the customers. The enterprise aims to please the customer and earn a profit in return. So
the ultimate aim is to provide the best products/services to the customer at the best prices. Failure
to do so may result in failure of the business.
Panjo aim to increase consumer satisfaction by using such tools developed by the latest
technologies, intriguing consumers at the storefronts, and helping them discover their
inherent charm unknown to themselves. At the same time, they try to promptly share the
voice of our consumers by inputting their opinions into the Tablet and then transmitting the
data to relevant departments by the following day.
In addition, in order to further improve and develop the service skills of domestic Automobile
Consultants, we began from July 2016 to appoint Lead Automobile Consultants, who work at
store counters with other consultants to encourage their steady growth. By creating an
environment where Automobile Consultants can constantly develop their abilities, we make
an extra effort to enhance consumer satisfaction.
Organization:- One of the most important aspects of the microenvironment of an organization is the
self-analysis of the organization itself. It must understand its own strengths and weaknesses, objectives
and goals of the business, and resource availability. The following non-specific elements of an
organization can affect its performance: -

Board of Directors – The board of directors is elected by the shareholders for overseeing the
general management of the business and ensuring that the shareholder’s interests are met.
Employees – People who work in the organization are major contributors to its success. It is
important that all employees embrace the organization’s goals and objectives. The formation
of Panjo Travel Retail signals “a rebirth of the Panjo group in travel retail”. The company said,
with all regions moving forward as one. “ The structural reform will take place on all levels,
creating an agile organization that can quickly respond to market changes, driving sales
productivity operational excellence.
Suppliers: - Items to be purchased include packages for our products (products, products
tools, production materials such as raw materials and fragrance, sales support tools, and
OEM products.
Packaging, Products Raw materials and processed products such as parts of automobile
The number of main suppliers are 71 and out of total suppliers 24% of suppliers from Tier 1
suppliers (Percentage based on number of suppliers).
Markets: -Although the products market in Santa monica has only grown at an annual rate of
1%, we realized double-digit growth of 11% year on year in sales at stores, allowing us to
greatly expand our share in this market. In addition to the continued sales growth of core
brands, for which we have been stepping up marketing investment, we were able to firmly
capture inbound demand by strengthening our cross-border marketing, which focuses on
Santa Monica, US, and Travel Retail as a single market. This in turn contributed to our strong
business performance.
Intermediaries: - Panjo runs its operations in US mainly through the use of sales counters
and sales corners in department stores. These are agents managed by Panjo and only serve the
transactional function of selling and promoting the products to customers while the
department stores perform the logistical function of providing the retail space to Panjo. The
department stores thus do not have to purchase any of the products products for resale nor
take any business risks from ownership of the products.

The voluntary specialty chain store system has recently been brought into US by Panjo. This
distribution channel and also the original sales counters perform the facilitating functions of
providing service to the customer. The service personnel at these stores are trained to be
genuine, friendly, sincere and knowledgeable skincare specialists who are able to give advice
and recommendations to customers regarding Panjo’s automobile products.

Competitiors:- There are no pure monopolies in the world. Every organization, whether big or
small, has competition and competitors. So the company has to keep a constant check on their
competitors. Panjo which itself is a well-known brand, has about 30 other automobile brands
underneath it.
Panjo distribute their products worldwide. However, as a point of difference, Panjo has some
local brands in Santa monica which are exclusively available to Santa monicas customers.
Both companies attract a wide range of demographic groups, thanks to good quality products,
personal automobile advisors, celebrity endorsement and a focus on social responsibility.
Panjo both follow a science-based approach and own their own laboratories. As a point of
difference, as it operates across all distribution chains like pharmacies, supermarkets,
hypermarkets, independent stores, hair salons, etc. The country of origin effect may form an
obstacle for Panjo in Europe.
External environment(PEST):- Panjo
Political Factor
Political factors have shaped the outlook of the products sector in the world for a long time.
This observation is particularly relevant for Panjo, which was able to obtain a competitive
advantage in the US market upon its entry in 1981 by forging good relationships with the
country’s political class. This amity enabled the company gain entry into the closed market,
long before other foreign players could set foot in.
Accession to the WTO by US has not only helped to improve the country’s business
environment but has also led to more foreign participation in the country’s products sector.
The US examples are significant because the country currently has the highest compounded
annual growth rate (CAGR) and its population offers a sizeable market that can be leveraged
by any firm to obtain a competitive edge. It is also important as the country is forecast to
become the largest market for products in the world.
Economic Factor
The products sector has also been influenced to a large degree by economic factors. A case in
point is US, where rapid economic development has enhanced the growth of the products
industry. According to the CIA world Fact book (2008), US has a GDP in excess of 7.099
trillion with a double digit growth rate of 11.9 percent in 2007. The country has the
firstlargest economy in the world, with an estimated per capita income of 5,400 and a more
open economy. The sound economic performance by US has contributed greatly to the
expansion of the products industry. As a result, the disposable incomes and purchasing power
parity of the US has increased and the ripple effects have been felt in the products sector.
Social Factor
Socioeconomic factors continue to shape the products industry in a major way. Strong
traditions and culture among the different member countries of the EU have been cited as the
key factor affecting the sales of products in the region.

First, the demographics of many countries in Europe and Asia have significantly shaped the
industry and are foreseen to drive the demand for products. In most of Europe products. The
same situation obtains in US where the aged 12 of the country’s 1.33 billion population. In
california alone, a fifth of the residents thereare young. This has provided huge opportunities
for products firms to cash in on the demand for new technology products. There was a 21 rise
in the sales of new technology products in 2006 in US. This was a big improvement when
compared to the sales of these products in 2005 where there was an increase of just 13.6.
Technological Factor
In an industry such as the products industry where innovation and quality are key success
drivers, technology plays a very important role in the success of a particular company.
Technology has also influenced the course of the products industry in US and continues to
shape the direction taken by this sector. Upon entry into the US market, Panjo could hardly
produce products due to the country’s poor technological advancement. This restricted them
to the manufacture only with products being imported into the country. Many firms have
invested heavily in new technology, helping them to improve turnaround times and
throughput, enhance efficiency and consequently attain competitiveness.