Marketing Strategy Formulation & Implementation

MM-II Assignment II
Section A Group 12 Ankit Kapoor (13) Chandni Kripalani (25) Mohit Bahl (37) Rinkesh Garg (49) Vinay Ajmera (62)

Marketing Strategy formulation & Implementation Philips India

Executive Summary

Our objective in this assignment was to devise a marketing strategy for the mp3 players of Philips India Ltd. In this process we studied the varied elements of the marketing mix and how they interact in the case of the digital music player industry. The methodology given in the course outline has been strictly followed for this assignment. The Indian mp3 player industry promises tremendous growth in the future which had opened new opportunities for the companies. The industry witnessed a growth of 116% in 2007 and promises a compounded growth of 77% till 2010. Using its technical expertise in a technology driven industry, Philips can capture a good portion of the market. However, the competition is intense and Apple enjoys a substantial 70 % of the market. Therefore, Philips is required to continually redefine its offerings, in order to stay relevant in the market. In this assignment, we have taken these considerations into account and framed a strategy for the company with respect to its product, price and promotion. Widespread growth of internet has made it an important marketing tool and thus, we have formulated an online marketing plan for the company as well. We have also devised a budget for the above mentioned plans. With the help of product innovation, new pricing and distribution strategy, Philips can attempt to increase its market share and reap benefits of the growing mp3 players industry.

Marketing Strategy formulation & Implementation Philips India

About the Company
Mission Statement We improve the quality of people's lives through the timely introduction of meaningful technological innovations. Vision Statement In a world where technology increasingly touches every aspect of our daily lives, we will be a leading solutions provider in the areas of healthcare, lifestyle and enabling technology, aspiring to become the most admired company in our industry as seen by our stakeholders.

Company Strategy

Increase profitability through re-allocation of capital towards opportunities offering more consistent and higher returns Leverage the Philips brand and our core competencies in healthcare, lifestyle and technology to grow in selected categories and geographies Build partnerships with key customers and suppliers, both in the business-to-business and business-to-consumer areas Continue to invest in maintaining world-class innovation and leverage our strong intellectual property position Strengthen our leadership competencies Drive productivity through business transformation and operational excellence

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Marketing Strategy formulation & Implementation Philips India

Situation Analysis Globally, the top 10 MP3 brands control 96% of the market. These brands in descending order, are as follows-

Portable MP3 Player Total 1 2 3 4 5 Top Five Brands 6 7 8 9 10 Top Ten Brands
Category

2004 Apple Other Sony Rio RCA 70.20% Archos Tech Creative Labs Samsung Panasonic Nike 68.70%

$396,559,700

$278,384,909. 4

Portable MP3 Player Total 1 2 3 4 5 Top Five Brands 6 7 8 9 10

2003 Apple RIO iRiver RCA Digitalway 86.40% Creative Labs Samsung NikePhilips Memorex Archos Tech 96.00%

$848,118,469

$732,774,357.21 6

$272,436,513. 9

Top Ten Brands

$814,193,730.24

Source: TWICE’s 2003-2004 Market Share Reports by

The Indian music industry will grow to Rs. 4100 crores in 2009 from Rs 1,450 crore in 2005. And this growth will be mainly driven by by mobile music, which will account for 88 per cent of the music industry’s revenues. Mobile music will be driven by all formats like ringtones, ringback tones, full track audio and video downloads. However, online music sales will remain minimal for the next three years.

.000 units by 2010. As per IDC estimates. at a CAGR of 77%. in India the market for MP3 players witnessed a growth of 116% in 2007. So it is assumed that follows a similar trend as the sale of digital music.34. and the demand will continue to surge to 73.Marketing Strategy formulation & Implementation Philips India Digital music sales surpassed physical music in sales in India in 2007. With prices coming down due to lower cost of storage. the MP3 player market is growing exponentially. The sale of digital music has a direct impact on the MP3 player industry.

Porter’s five forces Buyers Power: Supplier Power: (i) No single consumer has any power over The components needed to produce a portable music the production levels or prices of the various player include: products offered. Multi-brand outlets d. Most of these units are sold directly from Since Apple enjoys an almost 90% market share in (ii) In case of IPOD switching cost of Smaller players in the portable music market. Almost all units of MP3 players are sold through: a. the producer. Online marketplace the hard drive based market. Philips Exclusive outlets c.Marketing Strategy formulation & Implementation Philips India The players in the domestic market include          Apple LG Philips Sony Toshiba Samsung Creative iRiver Archos The brands like Philips. Sony and Samsung have the main market share. Apple. • hard drive or flash memory • processing chips • user interface units • general • Assembly. they have considerable buying power over the suppliers. Philips Franchisee stores b. Creative. such as changing over to another mp3 player is high Phillips would have difficulty acquiring the deals as the player only supports proprietary Apple can receive. and design ability. .

this may be outsourced as well (ii) Brand Positioning: Apple relies heavily on franchising and advertising on television and billboards. apple is able to claim the lowest prices. (i) Technical Knowhow: However. • Competition in the mp3 market is going to be fierce • Lower prices • Newer and better features • Technology will characterise the industry. . Degree of competitive rivalry: Barriers to entry barriers to entry are: The expected yearly growth of the industry The is around 20%. (iv) Market share is locked in with higher switching costs (once consumer has purchased a variety of proprietary music Threat of substitutes: (i) Convergence: cell phone and an audio player in the same device (ii) Flash based players and hard drive based players are substitutes for one another (iii) Portable video players having features of an audio player. (iii) Component prices: Through its volumes.Marketing Strategy formulation & Implementation Philips India music. but this is not the case for other mp3 players.

Marketing Strategy formulation & Implementation Philips India .

Marketing Strategy formulation & Implementation Philips India Swot Analysis Strengths  Weakness  Advancement of technology Substantial investment in R&D leading to breakthrough inventions like CD-RW and DVD Long presence in the country (75 yrs) High Brand awareness Efficient supply chain and wide distribution networks One of the earlier entrants in the mp3 segment Lower variety as compared to competitors   Low awareness of Philips mp3 players     Opportunities  Threats market Significant  Growing year. Cell phones with music players Fierce competition of existing players Entry of new players like Microsoft Zune growth for mp3 players in the past   Rising sales of digital music Institutional sales .high product obsolescence .g.for e. Diwali gifts to the employees.    Rapidly changing technology .

Prefer Dedicated MP3 player over the hybrid Serious Audiophile type They look for portable music players. 400000 units EBITA to exceed 10% through improved margin management. with shockproof operations.Marketing Strategy formulation & Implementation Philips India Goals & Objectives Objectives   To position Philips as a market-driven. i. where music Workout Companion does not skip with jerks. people-centric company Fully reflect the needs of its customer base. brand loyal. that are light and easy to carry with Travel Mate reasonable capacity to carry music They look for compact music players. product improvement and cost savings. inexpensive options to play music on the Daily Commuter move. also they look for the shuffle option Product Basic Audio Players Hard Drive Based Player Micro hard drive based player Flash-based players . Extensive users. Segmentation Characteristics They look for portable music players. while also increasing shareholder value. Goals    Increase sales by 20% Double the market share to 8% by 2008-09.e.

Marketing Strategy formulation & Implementation Philips India They look for relatively inexpensive music players. Light Listener interchangeable covers Micro hard drive based player . with stylish looks.

.Marketing Strategy formulation & Implementation Philips India Product analysis Product mix width . The reason being that this is the latest in this technological warfare and tough competition exists from other competitors in the same category. Also this segment is growing at a rapid pace. We can see that the audio/video line has a greater variety.2 Product mix Depth .5 for audio and 8 for audio/video players.

FM Tuner – Philips has products which also offer FM tuner along with MP3 playback in order to compete with other players in the industry. The company offers a variety of features to serve the needs of different customers at affordable prices. The basic features differentiating the products are: 1. This category broadly includes 4 heads: i. but also additional features like videos.e. built in speakers and LCD display. Philips has a total of 13 products under these 2 heads. 4. 3. MP3 players and Audio/Video Players. Audio/Video Players have been included because these players not only offer the basic features of a MP3 player.Marketing Strategy formulation & Implementation Philips India Philips India offers MP3 players under the product category of Portable Audio and Video Products. Radio/cassette recorders iv. The products are capable of playing back latest video formats such as MPEG 4 and WMV. while the higher end audio video players offer a 15 hours music or 4 hours video playback which is in sync with the current scenario in the industry. Memory: The memory of the products offered by the company ranges from 1GB to 8 GB. Video playback: The audio video players offer videos and movies playback. . Flash audio/video players have memory ranging from 4 GB to 8 GB. The basic MP3 players which are also called flash audio players have a maximum memory of 4 GB. Audio/Video Players iii. 2. MP3 Players ii. DVD Players The product chosen by our group covers the first 2 i. Battery Back up – The lower end items offer an average battery back up.

. Bluetooth. Good battery life. Easy to carry and operate. games Camera. Durable.Marketing Strategy formulation & Implementation Philips India Product Levels Core benefit Basic product Expected product Music A portable music player Good quality sound. Voice recording. clear Augmented product Potential product display Video. The life cycle of the technologies used plays an important role in managing the product line. FM. GPS The portable mp3 players are currently in the growth stage of product life cycle. MP3 players are products which are mainly based on technology.

the strategy will be to focus on these late adopters because the prices are expected to fall and people are now more willing to accept to new technology. Late Adopters: who accept the technology after it has been widely accepted and the prices have also decreased. This is happening for audio video players. .Marketing Strategy formulation & Implementation Philips India The above technology product life cycle shows that they are 2 types of customers: Early Adopters: who accept the technology when it is in the growth stage. it is quite low as compared to audio players. In the future. This is majorly happening for flash audio players. The audio players have found a lot of adopters. Philips has a sufficient range in this product line. Video players have been accepted by early adopters and soon they will come to a point when this would become a basic feature desired by users. these players have had a significant acceptance. Although.

15. The prices of other products will match those of the competitors.500 Now Rs.2% 25. 7.990 Rs.5% 84.990 Was Rs.4% 33. The new features should be used to charge a premium and establish it as a status symbol. 8. Also its promotion is very low as compared to other major players. 3. 7.149 Rs.990 Rs.0% 33.990 Rs.000 Rs. MP3 Players Samsung-YP-T10QB (2GB) Samsung-YP-U3 (1 GB) Samsung-YP-K5Q (2GB) Samsung-YP-T9A (4GB) Samsung-YP-K3QB (2GB) Was Rs.Marketing Strategy formulation & Implementation Philips India Pricing PROMOTION P R I C E LOW HIGH HIGH (RSS) Rapid Strategy (RPS) LOW Skimming Strategy (SSS) Penetration Slow Penetration Strategy (SPS) Rapid Skimming Strategy Slow Currently.8% 3.4% Percentage Reduction . 6. 5.990 Rs. 3.990 Rs. 7.3% 4.990 Now 75.699 Rs. 8. 3. 9. 6. The new product should be launched with a Rapid skimming strategy. Heavy promotion should be done to generate high awareness. 5.550 Rs. 5.1% 0. Philips is following a competitive pricing strategy as its prices are marginally lower than its major competitors.9% Sony-NW-E005F/V Sony-NWZ-S616F/B Sony-NWZ-S615F/S Sony-NW-A805/V MP3 Players Rs. 9.900 Rs.990 Rs.300 Rs.000 Rs.149 Rs.449 Percentage Reduction 5. 6. So we can say that Philips is following a slow skimming strategy. 5.

1% Apple-iPod nano (8GB) Apple-iPod classic (30GB) Apple-iPod Touch (16GB) Apple-iPod Touch (8GB) Rs. 14.250 Rs.0% 100. 2. 16.200 Rs.890 Rs.100 Rs.200 Rs.750 Rs.sonic 840 (4GB) Transcend-T.0% 77. 7.999 0.800 Rs.3% 100.0% 7.699 Rs. 2. 4.sonic 820 (2GB) Transcend-T.990 Rs. 2.990 Rs.495 Rs.8% 7.700 Rs.9% 3.650 Rs. 5. 23.sonic 630 (2GB) Rs. 2.1% Apple-iPod Shuffle (1GB) Apple-iPod classic (160GB) Rs.995 Rs.250 71.sonic 610 (2GB) Transcend-T. 3.4% 9. 4.9% 64. 20.990 Rs. 7. 9.990 Rs.500 Rs.500 Rs.599 Rs.990 25.3% Transcend-T.600 Rs.500 Rs.399 Rs. 3. 18.995 Rs.795 Rs. 3.sonic 840 (2GB) Transcend-T. 2. 11.999 Rs.990 Rs.490 Rs.990 Rs.0% 11.999 Rs.400 Rs. 2. 8.3% 113. 11.4% 23.500 47.3% Creative-ZEN (4GB) Creative-ZEN V PLUS (2GB) Creative-ZEN V PLUS (1GB) Creative-Zen Stone Plus (2GB) Creative-Zen Stone (1GB) Creative-ZEN V PLUS (4GB) Creative-ZEN Vision (30GB) Rs.sonic 820 (4GB) Transcend-T.3% . 2. 4.1% 14. 5.600 Rs. 4.9% 14. 7. 3.000 Rs. 9. 4.890 Rs.sonic 610 (1GB) Transcend-T.6% 65. 6. 18.500 Rs. 4.200 Rs. 3.700 Rs. 21.500 12.999 Rs. 4.490 Rs.999 Rs.Marketing Strategy formulation & Implementation Philips India Sony-NW-A806/W Sony-NWD-B105F/B Sony-NWD-B103F/W Sony-NW-E003F/G Rs. 3. 3. 17.9% 82. 9.925 Rs. 1. 6.6% 13. 11. 12.8% 9.800 Rs. 2. 4.700 Rs.8% 48.990 Rs.5% 100. 2.

999 8.999 8.499 2. On the basis of this information.499 2.999 15.Marketing Strategy formulation & Implementation Philips India The above table shows the reduction in the prices of MP3 players of major players in the industry. It is clearly evident that there is a significant reduction in prices.300 5.499 6.499 4.999 Prices in August 2008 2. The following table summarises the pricing strategy of Philips: Current Prices SA 1356 SA 2315 SA 4325 SA 3025 SA 3325 SA 3345 SA 6045 SA 6185 2.999 4. reaching even 100 percent for a couple of products.499 4.749 3.250 2.000 13.999 .999 2.000 4.499 5.990 4.999 10.499 Prices in January 2009 1.499 3.999 6.999 3. we predict that Philips shall also reduce its prices in order remain competitive.

The new models would be introduced at above the current prices. . The introduction of new models during the year is another reason for lowering the prices.Marketing Strategy formulation & Implementation Philips India It is assumed that some older models would be discontinued on account of continuous technology advancement in this sector.

Its distribution network covers over 540 districts across India. Channel Design Philips India Ltd Philips India Ltd Philips India Ltd Agency C&F agents Distributors Arena/Moder n Retailers Exclusive retail stores/ Exclusive retail stores/ Consumer Arena Arena . Apart from these its products are available through various exclusive Philips outlets and MBO’s throughout the country. Reliance Digital and Electronics Bazaar. Next.Marketing Strategy formulation & Implementation Philips India PLACE Philips has set up a chain of its company owned stores called Philips Arena. It has to employ a key account management approach. With the advent of modern retail in a big way Philips has to make its presence at stores like Croma. There are currently over a 100 Philips Arena stores. Philips has 103 service outlets which provide service support to its consumers.

• Even one of its greatest threats. Areas where Philips lags behind its competitors: o Battery life • Apple’s video ipods offer a battery life of around 30 hrs whereas a comparable product from Philips has a battery life of around 15 hrs. mobile phones now come with 8GB storage capacity o Looks & Design • Philips mp3 players are bigger in dimension as compared to almost any of its competitors • Heavier . • Recharge time is also greater by almost an hour in case of Philips o Storage Capacity • The maximum capacity offered by Philips is 8GB whereas Apple has touched 160 GB.Marketing Strategy formulation & Implementation Philips India Product Development The current features being offered by Philips are unable to differentiate it significantly from its customers.Lack sleekness Models available only in one colour • Areas where Philips has an upper hand .

g. the new product shall have the following features Change in looks A much sleek design Lightweight Different body colours . Good clarity o Others    Built in speakers Introduced Games Sturdier than its competitors The New Product The shortcomings should be kept in mind for developing the new product. Approximate dimensions Weight Width Depth Height 120 gm 60 mm 8 mm 110 mm . One of the largest display screens. Accordingly. Apple nano comes in 5 colours.for e.Marketing Strategy formulation & Implementation Philips India o Display    First to introduce an LCD display.

Charging time to be reduced. rapid skimming strategy. .at least 2 megapixels to be included Bluetooth GPS WiFi E-Mail service +3500 + 2000 + 1000 +800 • Cost These differentiating features coupled with improvements in other areas like battery life and storage capacity will allow us to charge a premium. 7300. Storage capacity to be at least 40 GB Differentiating Features • • • • • Touch screen to be introduced Camera . These features would cost us an additional Rs.Marketing Strategy formulation & Implementation Philips India Battery life to be at least doubled to match Apple’s 30 hrs. excluding the differentiating features mentioned above would cost around Rs. A comparable product. We would go in for a much higher price along with heavy promotion i. 20000.e.

To create a perception that the company is charging higher price for superior features and quality.Marketing Strategy formulation & Implementation Philips India Promotion Advertising Agency Philips hires an external agency to handle its entire advertising effort. The promotion strategy will be based on the five M’s of advertising Mission To create brand awareness and knowledge To establish the product as a status symbol and create a liking. Ltd. New features are being introduced Frequency . Media . Money Very high competition and low awareness. Also the heavy advertising for the new product will have a roll over effect on the other products creating greater acceptance for them. The current advertising agency for the company is Mudra Communications Pvt.Advertise heavily (Rapid Skimming Strategy) Message generation and Evaluation The advertisements will position the brands in such a way that it first highlights the brand Philips and then focuses on the features. desire and preference.

It will place these ads every Sunday (ie 52 days) @ 450 cm/sq inch TV TV advertisements must be included to increase mass awareness. in the future. as they will be culled out from employees songs libraries) .000. It is expected that the value of 20% of the units are greater than Rs. 10. 500 for MP3 players with MRP exceeding Rs. 5. songs cost assumed to be negligible.e.00.000 units. It will place these advertisements @ Rs.000) (ii) With every MP3 player. For the purpose of promoting the website. 50000/issue/advertisement alternatively in each month (i. to check which one of them is most effective for advertising into. 100. Internet Internet plan has been enumerated below. on 52 days) in a mix of 3 popular news and sports channels (during popular programmes and matches) around 2 times a day. The cost per click is approximately Rs. 5 per click. Promotions (i) Free leather case worth Rs. the company will pay a popular search engine such as google money according to the pay-perclick mechanism. 10. Expected Sales= 4. It will thus advertise once a week (i. Phillips gives its customers 1 MP3 of 100 songs each.Marketing Strategy formulation & Implementation Philips India Magazines Philips will advertise with 2 magazines that include articles regarding latest electronics. at first. (Cost to the company for the leather case = Rs. (Cost to the company for the leather case = Rs.e. 6 ads per magazine) Newspapers Phillips will utilise 3 major and popular dailies to advertise its products. (It is assumed that the website generates 100 clicks/day).

Launched in July. The concept was to go to youth hang-outs. Web Research The web research staff of 4 executives will be carrying out all the web promotion activities and monitoring the customer’s needs and expectations from the website though comments and suggestions received via participation in the website’s consumer research questionnaire.Marketing Strategy formulation & Implementation Philips India Sales Force The company will require sales force to serve as an interface between the company and the distributors. and educate the youth about the technology behind mp3’s. This will be done by encouraging forum discussions through social networking website’s and will be carried out through the web research staff. 2002 was introduced to promote a entirely new set of products to meet the requirements of rural customers. It is assumed that they will employ a sales force comprising of 30 executives @ Rs.000 and 50. The program helped the company notch up a 45 per cent share in the MP3 market. As such this segment has not been taken separately and the cost is assumed to be nil. Additionally they will also be involved in promotion in the social networking website’s as mentioned above. Bangalore and New Delhi.000 per month. Publicity The publicity will be carried out through word of mouth through ‘viral marketing’. The aim: To aggressively push the company's sales in the rural/semi-urban segment with a clear focus on rural towns with a population of less than 5. The Philips Mahasangram Integrated Marketing Programme: A key reason behind this initiative seems to be the growing potential of the rural market. The ‘MP3 Mania' programme which was launched in Chennai. 15.Events MP3 Mania' programme targeting the youth which is the key target segment for the company. Mumbai.000. Promotional Program’s. schools and colleges.000 and semiurban towns with a population between 5. .

the compact disc and the co-inventors of the DVD. mp3 players. [Annexure No. The rationale for the campaign is to portray that technology can be advanced and simple at the same time.2] Other print Campaigns Let's make things better: This was the longest campaign of Philips and was used as a promotional programme for the entire gamut of consumer electronics. [Annexure No. 2] . through this campaign to be devoted towards improving processes. They wanted to emphasise that they are the innovators of audio cassette.Marketing Strategy formulation & Implementation Philips India Print Campaigns: The current marketing campaign of the company is Sense and simplicity. It can be easy to experience. It can be designed around people. They portray themselves.

This channel is accessible round the clock. 3. It can promote relationship building with its partners and customers. Get a new distribution channel and thereby increase market reach.Philips can use the website to create new business relationships with its suppliers and institutional clients.Marketing Strategy formulation & Implementation Philips India Website Review Philips has a website already in place. 5. . Reduction in cost Concerns 1. the site’s traffic. it will be able to immediately start selling online. 2. in order to establish a web presence it is essential for the content to be comprehensive and easy to understand. Visibility. 2. It can claim greater presence among the current market as well 3. It can thus very easily get the following benefits1. It is quite an extensive website and has all the company and product information. This would be able to improve page views and hence.In the ubiquotous market. It will have to face and try to counter huge amount of competition from the online sector. If the company adds price information and payment mechanisms. all days of the week in those areas where physical outlets have not been established. philips will be able to get a competitive edge. Establishing and maintaining business relationships. 4. It might eventually conflict with the sales from its physical distribution channel network.

com: . Links are placed to connect to its global website’s to cull out financial and other company information. Change 35% Traffic Rank for Philipsindia. 0. The text is very organised. yet it is modern in features. Avg. 0.Marketing Strategy formulation & Implementation Philips India Comment on the website appearance • • • • • The website has very light tones and colors such as light blue’s and grey’s It is representative of its latest advertising campaign of sense and simplicity as well.000175% 3 mos. although the search bar has been provided for the purpose.00005%% 3 mos.994% 3 mos. Change 3% 1 wk.com: Percent of global Internet users who visit this site Yesterday 0. Avg. It does take a while to find specific information within the website. 0.94% 3 mos. finding information within links is a cumbersome process. 0.com: Percent of global Internet users who visit this site Yesterday N/A* Reach for Apple. Comparative Website Statistics Reach for Philipsindia.935% 1 wk. Avg. Avg. The website seems simple. At the same time.

Avg. include the following- .com: The number of unique pages viewed per user per day for this site Yesterday N/A* 1 wk.4 3 mos.984 3 mos. Change No Change * Daily values are not available for sites ranked outside of the Top 100K. 4. Page Views per user for Apple. Avg.2 1 wk.061. Avg. 2 3 mos. Avg. 452. 4. 87 3 mos.544 3 mos. 1. Avg.1 3 mos.com: Alexa traffic rank based on a combined measure of page views and users (reach) Yesterday 103 1 wk.com: The number of unique pages viewed per user per day for this site Yesterday 4. Change 142. 104 3 mos. Avg. Change 3 Page Views per user for Philipsindia. Change 2% Measures: Phillips must improve the content on its website and start online sales in order to increase its traffic statistics. It must thereby.2 3 mos.656 Traffic Rank for Apple. Avg. Avg.Marketing Strategy formulation & Implementation Philips India Alexa traffic rank based on a combined measure of page views and users (reach) Yesterday N/A* 1 wk. 3.

Features for the products are listed via listing and downloadable pdf documents Comparison among products across technical features has been given. website link. and a 360 degree view of the same is available. and email helpline is mentioned. Customer Support • • • Support link is given alongside every product The link gets directed to FAQ’s immediately A provision is given whereby in case of unfulfilled service needs. • List of physical outlets/stores from which the product will be available is mentioned but requires the customer to feed in a lot of product information before receiving the information. which is a useful tool Disadvantages• The main disdvantage is that the prices of all the products is not mentioned on the website. The disadvantage is that the website mentions that the customer needs to have the following data handyThe model number of the product The date of purchasing The serial number of the product.Marketing Strategy formulation & Implementation Philips India Product information (mp3 players) • All the products are listed on the website. which is an excellent feature. The page is printable. two telephone lines. • • • • The pictures for the product are clear. .

this information is not readily available with the customer.984 Apple.Marketing Strategy formulation & Implementation Philips India At most times. Phillips must make use of its current delivery network to send the goods to the customers. Delivery In order to prevent channel conflicts. checks etc Near cash credit card is the best way for the company [Annexure 3] Philipsindia. . It may use any or all of the following for payment purposesCredit cards Electronic Transfers Electronic wallets. Phillips would have to realign and redesign its website to attract more visitors and increase page views. Payment The company needs to provide a payment mechanism that is both secure and convenient.com has a traffic rank of: 68452.com has a traffic rank of: 87 The aforementioned fact reveals that in order to reach the level of its nearest competitor.

So it is good to start as early as possible. Registering with search engines with tools such as keyword search. The impact of internet can be judged by the growth rate of internet users in the table below. 2) Online selling option to be added which is clearly visible. etc Online selling is an innovative idea and will be becoming a trend in the coming years. 3. the company has already instituted measures to receive feedback from its customers. Besides improving content. sponsored links Online selling strategy The website of Philips is already in place and which is having a good impact on the visitors.Articles in other blogs/websites include the company’s website link.Marketing Strategy formulation & Implementation Philips India Feedback and review In order to ensure the reliability and relevance of data. [Annexure 4] The information received will be used by the company to improve its online and general operations. This will help to increase website visits and page views. Website Promotion 1. 3) Terms and conditions. Phillips will have to engage in Promotion to increase the awareness of the online selling facility: 2. Certain things can be taken care as talked about above and the site can be improved. Pop-up Banners 4. Blogs. This has been done via a questionnaire that can be voluntarily filled by the customers. . For online selling we should have certain additions like the – 1) The payment mode should be mentioned. 4) Method explaining the procedure of online selling.

Internet marketing will include – 1) Blog marketing – This will help to promote our product to more of a active population on internet and it will cover ¼ th of the internet user population.000.500. This will be done advertising through the medium of internet marketing as well as other promotional activities. .000 5.000 42. This will be made effective through various techniques like banners.000 37.000 22. sponsored links.800.000 54.000.000 7.400. Exhibit can be referred.200.500.000 2.500.000. etc.00.Marketing Strategy formulation & Implementation Philips India YEAR 1998 1999 2000 2001 2002 2003 2004 2003 2005 2006 Internet Users 1.000 16.000 Growth 100 96 27 136 36 74 -6 14 29 For promoting the online selling strategy by Philips India our target market are the people who are having the knowledge of internet and are able to operate it.000 39. 2) Banners and pop-up’s can be placed on the site most visited and these sites can be identified through the table below. Thus we will be targeting the internet population of 54 million.

Indiatimes. etc Yahoo. etc Orkut.com.Marketing Strategy formulation & Implementation Philips India Rank Online Activities % undertaking in 2007 % undertaking in 2006 94% 53% 37% 48% 49% 57% 57% 35% 34% 27% Sites 1 E-mailing 2 Job search 3 Instant messaging 4 Check news 5 Online music 6 Chatting 7 E-greeting 8 Check sports 9 Online games 10 Dating/Friendship 95% 73% 62% 61% 60% 59% 58% 57% 54% 51% Gmail. etc Cricinfo. yahoo. etc.com. rediff. gmail. etc MonsterIndia.com.com.com.hinduonline. Naukri. hi5. etc . msn Timesofindia.

Reviews of the customer about the product can be obtained. etc are best. the various modes of online payments are analysed and we found that the payment through credit and debit card. Customer grievances can be considered online. stored value.Marketing Strategy formulation & Implementation Philips India Other uses of the site – Interaction between customers can be encouraged. The option of basket can also be induced where the goods can be put in the basket and then all the goods can be purchased at one time. Marketing Budget . Mode of payment – As given in Annexure 3.

000/Person/Month 528.200.000/month 5.000.000.00 15.700 .00 400.00 87.252.00 .000 Units 4.180.000. 00 182.Marketing Strategy formulation & Implementation Philips India Expense Research Description Cost per unit Annual Total Web research 4 Executives TOTAL Media Rs.000/Issue/Advertiseme nt 450/cm sq 2.400.700 .A Through Word of Mouth Rs.000. 11.000.000.00 Magazines 2 Magazines x 6 Issues Newspapers 52 Daysx 3 Newspapers 52 Daysx 3 Channels x 2 Times TV a Day Internet 100 Clicks/Day Promotions 80.00 2.000 Units TOTAL Sales Force Expenses 30 Executivesx12 TOTAL Publicity TOTAL OTHER TOTAL N.00 70.000/30 Sec Rs 5/Click Rs 100/Case Rs 5/cd 600.500.000. 50. 00 0.00 528.00.000.0 0 5.0 0 81.000.50.400.00 78.000.

12th Edition.com www.consumercharts.alexa.Readings Websites www.indiastats.com www.philips.com www.com www.com www.indiahousing.apple.contentsutra. Marketing Management.com .com www.npithub.com www.Marketing Strategy formulation & Implementation Philips India References Books Phillip Kotler.

Marketing Strategy formulation & Implementation Philips India Annexure .

Marketing Strategy formulation & Implementation Philips India Annexure 1 .

Marketing Strategy formulation & Implementation Philips India Annexure 2 .

Marketing Strategy formulation & Implementation Philips India Annexure 3 .

www.philips. Google) Through a link on another website Through a link in an e-mail How often have you visited this website in the past 3 months? This is my first visit ever This is my first visit in the past 3 months 2 to 5 times in the past 3 months 5 times or more in the past 3 months You arrived at this website through a link on another website.g.g. What type of website was this? Another Philips website An online shop/retailer/dealer A website for product reviews and comparisons A website from a Philips partner A forum/blog/community website A job board .com) I have the Philips website stored in 'my favorites' (stored website links) Through a search engine (e.Marketing Strategy formulation & Implementation Philips India Annexure 4 How did you arriv e at this web site? By typing a website address (e.

buttons and links in this website are easy to understand The structure of this website is well-organized This website is user friendly This website is well designed (look & feel) .Marketing Strategy formulation & Implementation Philips India Other (please specify) þÿ Please indicate if this visit is primarily for: Business reasons (I come here for my work) Personal/private reasons (I come here for my personal life) Which of the following statements best describes the main purpose of your visit to this website? To browse/to find (information on) a specific product/service I am interested in To find information on a product/service I already own or use To find service or support on a product I already own or use To buy/order a product/service To find out more about Philips as a company To understand more about 'Sense and Simplicity' To find a job/to find out more about career opportunities at Philips To contact Philips for service or support To contact Philips for other reasons Nothing in particular. I'm just checking out the website Other (please specify) þÿ Strongly agree Agree Neutral Disagree Strongly disagree The menus.

Marketing Strategy formulation & Implementation Philips India I did not have to wait long for the pages to load .

4.MPEG1. Voice Recorder FM Radio FM Recorder Visual Features Photo Viewer Photo Supported Video Player Video Supported Battery Rechargeable Battery Battery Type Standard Battery Type Inbuilt Li Polymer Format Format JPEG --- JPEG JPEG. WMA. AAC. MP3.2. Linear-PCM and MP3 VBR. BMP.WMV and RM and AVC MOV SVI. Protected.Marketing Strategy formulation & Implementation Philips India Annexure 5 Philips Sa6185 Display Sony NW A808 Apple ipod touch Samsung YPP2CB Type Memory Capacity (GB) Number of Songs Expandable Memory Display Display Colour Monochrome Display Size (Inch) Display Resolution Audio Features or Flash Flash Flash Flash 8 2000 8 2000 8 2000 8 2000 LCD Colour 3.5 320x240 Colour 2 240 x 320 Colour 3. WMV Inbuilt Li Ion Inbuilt Li Ion Inbuilt Lithium Polymer . WAV and AIFF --- WMA. MP3. Audible. MP4 and MOV. WMA.AVI. AAC-LC M4V. MP3 AAC.5 480 x 320 LCD Colour 3 480 x 272 Audio Supported Format WAV. OGG ATRAC Apple Lossless. ACC MP3. GIF. PSD and PNG JPEG DVD. MPEG4. TIFF.

ME. Black.5 USB 6 6 --- --- --- --- Operating System Windows XP (SP2 or above).0 USB 2.0 --- --- --- --Black 1 Black 1 Black 3 White. Vista.0 and Wi-Fi USB 2.Marketing Strategy formulation & Implementation Philips India Battery Life for Music Playback (Hours) 15 30 22 35 Battery Life for Video Playback (Hours) Recharging Time (Hours) Type of Charging Sound Settings Equalizer Preset Options Keypad Features Hold Key Requirements 4 8 5 5 4 USB Charging 3 USB 3 USB Charging 4. Red Wine --- Width (mm) 39 44. Windows Windows XP.9 or later.8 100 .5 61.3.0 PC Interface Connection Options Bluetooth WiFi USB Security Features Password Protection Colour Number of Colour Options Available Colour Options Additional Features Contacts Calendar Games Clock Machine Dimensions USB 2. Windows XP 2000. Vista --- Mac OS X v10. VISTA Home and Professional SP2 USB 2.

6 88 53 8 110 120 9.9 52 85 ----- Unique Feature Touchscreen Touchscreen.Marketing Strategy formulation & Implementation Philips India Dimensions Depth (mm) Length (mm) Weight (Grams) In the Box Earphones USB Cable Carrying Case More Features 153 43 153 9. You Display. 3D Tube and Web Sound. Bass Browser Extension. 16: 9 wide screen After Sales Service Warranty (Years) Period --1 1 1 .

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