You are on page 1of 54

JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

A PROJECT REPORT ON MARKET SHARE OF PHILIPS IN LUCKNOW CITY S

UNDER THE SUPERVISION OF :Dr. AMAN SRIVASTAVA

2012

SUBMITTED BY :- ATUL KRISHNA VERMA ROLL NO. PGFB1110

ATUL KRISHNA VERMA (PGFB1110)

ACKNOWLEDGEMENT
I would like to thank my project Mentor and guide Mr. Binod Menon, (Area Sales Manager) Philips Electronics India Ltd., Lucknow (U.P.) and my co mentor Mr.Anurag Srivastava (Sales Executive), sales person Mr Ajay, Mr Pradeep & Mr Harnam for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated. I would like to thank Dr. Aman Srivastava (Faculty JIM NOIDA) for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly, I would like to thank all the respondents (Retailers) who give their valuable time and suggestions through the survey that was conducted by me in Lucknow city.. Once again my gratitude to the Philips Electronics India Ltd and retailors. For their kind co-operation

Atul Krishna Verma Roll no. PGFB1110

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

DECLARATION

I hereby declare that the following documented Project Report titled To know the market share of Philips in Lucknow city is an authentic work done by me. The Study was undertaken as a part of the course curriculum of PGDM Full Time Program of JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA.

ATUL KRISHNA VERMA PGDM (G) -2011-13 PGFB-1110 Mobile No- +91-9911125970

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

STUDENT CERTIFICATE

This is to certify that this report is prepared based on the project undertaken by Mr. Atul Krishna Verma in Philips Electronics India Ltd on the topic concerning To find out the market share of Philips in Lucknow city under the able guidance of Mr. Binod Menon (ASM) and Mr. Anurag Srivastava (Sales Executive) in the partial fulfillment of the requirement for award of Post Graduation Diploma in Management (2011-2013).

______________ Date: Place : Lucknow Philips Electronics India Ltd. Binod Menon (Project Guide)

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

INDEX
Sr No. 1 Contents ACKNOWLEDGEMENT DECLARATION STUDENT CERTIFICATE EXECUTIVE SUMMARY Page No. 1 2 3 5

INTRODUCTION 1.1 Basic Concepts of the Topic 1.2 Literature Review 1.3 Statement of the Problem 1.4 Objectives of the Project 1.5 Scope of the Study PROFILE OF THE ORGANISATION 2.1 Name of the Organisation 2.2 Vision and Mission 2.3 History and Background 2.4 Product & Services

6-12

14-25

RESEARCH DESIGN & METHODOLOGY 3.1 Mapping the retail outlets 3.2 Sample technique 3.3 Sample plan 3.4 Methods of data collection 3.5 Limitations

27-30

4 5 6

DATA PRESENTATION, ANALYSIS INTERPRETATION APPENDIX BIBILIOGRAPHY

31-32 33-54 55

EXECUTIVE SUMMARY
5 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

Philips has been a leading brand in electronics in India and across the world. Philips with its wide range of products caters to the premium segment of the market. Philips faces intense competition, especially from the low-cost, local rivals of the market. With this intense competition, Philips has to cater to the various needs and demands of their consumers. This project aims to find out the market share of their 5 products such as CFL, TUBELIGHT, CHOKE, BULB, & ELECTRONIC FITTINGS and to identifying various problems faced by the company in the Market of Lucknow City and the consumer preference with reference to Electronic products. Through this project I have found that Philips faces intense competition from the local rivals such as Arya and the major market share belongs to the PHILIPS company i.e. 38% overall. Philips as a market leader with having larger chunk of the market needs to re-position its strategy for its products especially to get over of the image created in the minds of the gentry that Philips deals best in electric products. .

INTRODUCTION
6 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

1.1 Basic concepts of the topic MARKETING STRATEGY The marketing strategies for any company are not about a fixed concept. Rather it is full of new challenges every day, and the companies must respond to it very positively. The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through market strategy. The following strategies are basically adopted by Britannia in order to capture a good market share. A strong quality of the product and customer satisfaction: Generally customers are concerned about the quality of product as well as the price of the product . In my survey i found that basically people are first looking for the quality. If good quality is there in the product then they are only looking for the price. But if the quality is not satisfactory they even dont looking about the pricing of the product. In this regard Philips always maintained much more importance over there product quality. Thats why they are among the very successful brand of today. A growing relationship with customer and customer retention: Nowadays a good relation with the customer is very important for organization. Sale is totally depending on the relation with the customers. Customer's retention is also a major aspect for growing business. It means keep the old customer and try to make new customer. Philips customer relationship management is very strong which is the one of the major cause of selling of their product continuously. Focus on competitors activity: Every organization must be careful about it's competitors step, because they can disturb the growing sales process of the organization. Continuous watching over competitors strategies and development will help Philips.to think better and to take major steps to sustain in the market of Lucknow city.

A growing emphasis on global thinking and local marketing planning: 7 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

Companies are increasing by pursuing market beyond their borders. When they enter other countries they must follow the tradition of that country and also they make plan for local market that which type of product has more demand and how can it run in the market. For Philips their different variation in their product and pricing strategy will help them to sustain in the market of Lucknow city.

PROMOTIONAL STRATEGY
Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. Sometimes Philips should comer to market with new offerings at the time of festivals and of course with cost benefits to the customers. Giving discounts over bulk purchase also comes under this strategy. This strategy will Philips to increase their market size as well as the share and this will help to generate more and more revenue

BRAND POSITIONING
With different various products Philips has a very strong position in the mind of consumer that they provide good quality products which suits their budget.

COMPETITORS
Generally all organizations have competitors in the market. A particular organizational comprises with other same business and according to market share i clarify the brand of product is giving more challenge to my product. I found many products which can be compared with Philips products. As aconclusion i found that particularly in the area i surveyed Philips is really doing well and its performance is on a satisfactory level but as far as the competitors is concern they are growing at a rapid speed a capturing the market of Philips. During the field work and after intensive study it was found that main competitor of Philips are :HAVELLS BAJAJ CROMPTON

MARKET POTENTIAL
8 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

Market potential of the PHILIPS is much positive in competitive era and will sure cover the maximum market share of electric product. Potentiality of any product depends upon the futuristic performance of the product. it depends that how much retailers have potentiality to be permanent seller of PHILIPS. For great potentiality it is necessary to improve those factors which are going to effect retailers. In my study I found some factors which can help to cover great potentiality. These factors are following: Scheme delivery should in perfect determining time. Some places distributors not able to cover such as (Jankipuram 60 ft road, aishbagh).That should be improved. Scheme facility should be regular as much as possible. Cash discount should be provided when a retailer purchase in bulk in cash payment so that the working capital circulate from both end and this activity will help to generate more potential retailers. Always collect the views of retailers. It gives psychological effect on the retailers about careness by manufacturing company. If we do not consider retailers point of view then who will sell our products.?

These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Philips product and customer will also enjoy for it. .

LUCKNOWS ELECTRIC MARKET FROM 4 PS OF MARKETING


9 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

10

PRODUCT:-

Philips deals in good quality of electric products,right from its beginning and provide customer a valuable product and maintain a good relationship with their retailers and customers. They give first priority to the customers and due to this they are the market leader in Lucknow city from last 8 years..But from last few years Philips is facing stiff competition from their competitor (Bajaj,Crompton,Havells) in terms of product range as well as the quality of products & they are capturing the market of Philips at a rapid speed

PRICE:-

Philips use the strategy of Skimming Pricing to promote their products with this thing in mind costlier the better thats why all Philips products are costlier as compare to their competitor but from last few years others companys are also providing the better quality products at low cost and more warranty on their products as compare to the Philips.

PLACE:-

In lucknow city Philips uses the word of mouth promotion strategy because of the literacy rate of Lucknow city is low as compare to other metro cities of INDIA.

PROMOTION:-

Promotion is an important tool for any company to survive in any national or domestic market & to promote their products Philips use word of mouth strategy which is not sufficient to capture a bigger market. To capture the bigger market Philips should go for Window Dressing, Hoardings, Offer on new products in order to capture a bigger market. During the whole survey of 60 days I havent found any board, hoardings, display board at any retail counter whereas other comapnys 10 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

11

do so and increasing their market size day by day and this is the biggest threat for Philips and this will result to lose the market share in lucknow city.

1.2 LITERATURE REVIEW India GDP Composition Sector Wise Consists of many sectors such as agriculture, industry, services, and infrastructure. The contribution of these sectors in India GDP differs with one sector contributing more than the other. India gross domestic product (GDP) means the total value of all the services and goods that are manufactured within the territory of the nation within the specified period of time. The economy of India is the twelfth biggest in comparison to that of others in the whole world, for it has the GDP of US$ 1.09 trillion in 2007. The country has the second fastest major growing economy inthe whole world with the GDP growing at the rate of 9.4% in 2006- 2007.The composition of Indian GDP includes many sectors like industry, infrastructure, agriculture, and services. The percentage of the share of these sectors in the composition of India GDP differs and also has changed over the years. India GDP Composition Sector Wise was that theagriculture sector contributed around 32%, services sector contributed 41%, and the industry sector contributed 27% in 1990- 1991.The agriculture sector contributed the most to India GDP after the independence of the country. This sector contributed to India GDP around 18.6% in 2005. The contribution of the agriculture sector has gone down in India GDP in the last few years but in spite of this the sector remains the largest economic sector in India. The sector of industry accounts for 27.6% of India GDP for it employs around 17% of the total workforce in India. The industrial sector contributed 7.6% to India GDP in 2005- 2006 and the next year, this figure increased to 9.8%. This shows that the contribution of the industrial sector is increasing in India GDP. The 11 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

12

services sector contributes the most to the India GDP for it accounted for 53.8% in 2005.After independence it was the agricultural sector that contributed the most to the India GDP but in recent years it has been the services sector, which has contributed the most. The agricultural sector contributed 20%, industry sector contributed 26%, and the services sector contributed around 54% to the India GDP in 2005- 2006. The infrastructure sector contributed around 3.5% to the India GDP in 1996- 1997 and the next year, this figure increased to 4.6%. The contribution of the infrastructure sector to the India GDP increased after the India government opened the sector to private sector. India GDP Composition Sector Wise thus as seen comprises of many sectors. The government of India must take steps in order to boost all the sectors that contribute to the country's GDP for this will ensure that the economy of the country will grow and prosper

POWER
Electricity generation by power utilities during 2007-08 was targeted to go up by 7.2 percent to710 billion KWh. The growth of power generation in April-December 2007 was lower than the targeted growth rate. While growth in all three segments, that is, thermal, hydro and nuclear generation, slowed down, nuclear power generation, in particular, showed the sharpest decline during the current year in comparison to the corresponding period last year. Power deficit the deficit in power supply in terms of peak availability and of total energy availability during the current year was 14.8 per cent and 8.4 per cent, respectively. While shortages are being experienced by each region, they are more acute in the North-Eastern and the Western Region. In the case of the thermal power sector, the State, Central and private sector plants reported a plant load factor (PLF), a measure of efficiency, of 70.2, 85.4 and 92.5 per cent, respectively, during April-December 2007-08. The PLF in each of these sectors as well as in every region has improved over time. However, there is a marked variation across the regions. Coal and gas input for the power sector the power sector is a major consumer of coal using about 78 per cent of the countrys coal production. Coal-fired thermal units account for around 62.2 per cent of total power generation in the country. Thus, coal continues to be the mainstay for the power sector. The total consumption of coal by the power sector in 2006-07 was 302.5 million tonnes (MT). Of this, about 9.7 MT was imported in 2006-07. 12 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

13

About 7.3 MT of coal has been imported in 2007-08 (up to December 31, 2007). Apart from bridging the demand - supply gap, blending of imported high quality coal with high ash domestic coal helps thermal power stations to adhere to the environmental stipulations of using coal with less than 34 per cent ash content. Out of the total installed generating capacity in the country, about 10.5 per cent (i.e., 14,691.7MW), is based on gas or liquid fuel (excluding diesel). The supply of gas to power stations that use gas as the primary fuel remains inadequate. Commitments of gas allocations made to power stations in the past are not being fulfilled, thereby leading to loss in generation.

1.3STATEMENT OF THE PROBLEM


To know the market share of Philips Electronics India Ltd.

1.4Objectives of the project


To study the PHILIPSs Electronic Business with respect to competition in domestic market & suggest way forward for growth . The study will cover the SWOT analysis of the companys electronic business to arrive at the conclusion.

1.5Scope of the project


The project will cover the following: 1) Understanding the company, PHILIPS ELECTRONICS India Ltd: At the outset, firstly, my project cover understanding about the company - PHILIPS, its business , company profile, its history, current status & upcoming projects. 2) PHILIPSs Electric Business: My project will focus on Electronic Business of PHILIPS out of total number of various businesses of PHILIPS. PHILIPSs Electronic Business will be conceptualize under the 7Ps Marketing model concept for better understanding. 3) Understanding Domestic Competition : 13 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

14

The project will cover various Domestic competitors details & marketing strategies adopted by various players in Electronic business in Lucknow city. The competition related to PHILIPSs product range will be covered for understanding & evaluating.

14

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

15

Royal Philips Electronics

Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on improving peoples lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of sense and simplicity. Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. Global Footprint Philips is a global leader across its healthcare, lighting and lifestyle portfolio:

We are the worlds largest home healthcare company, being number one in: Monitoring systems, Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.

15

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

16

We are number one in lamps in Europe, Latin America and Asia Pacific and number two in North America; in Automotive lighting, we are leading in Europe, Latin America, Japan and Asia Pacific.

We are number one in the electric shavers and male grooming category globally. Philips is one of the leading flat-TV brands globally.

Mission "Improve the quality of peoples lives through timely introduction of meaningful innovations." Vision In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people. Values Our Values reflect the ambitions we have laid down in Vision 2010, our recent strategy update. The Values, the four Ds, are like a compass guiding us in how we behave every day, and reminding us of the attitudes we should have towards our work, our customers and our colleagues. Delight Customers We anticipate and exceed customer expectations

We demonstrate Passion for Philips and "sense and simplicity" We create superior customer experiences, based on deep insights We act as One Philips ambassadors all the time

Develop people

16

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

17

We get the best from ourselves and each other


We attract the best players to create strong and diverse teams We take risks by giving people stretch assignments to accelerate their development We personally invest significant time to coach and recognize people. Philips Electronics India Limited

Philips Electronics India Limited, a subsidiary of the Netherlands-based Royal Philips Electronics, is the leading Health and Wellbeing company. Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing peoples Health and wellbeing needs and aspirations as its overarching theme. As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life. With recent launch of Philips Respironics product categories in obstructive sleep apnea management and home respiratory care, home decorative lighting range and ALU range, Philips products find use in virtually every aspect of an individuals daily life 24X7 - at home, at work, on the move and at rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products with superior design and technology that enhance the quality of consumers' professional and personal lives. Philips has been operating in India for over 75 years and employs over 4,500 employees around the country. The company has an excellent pan India distribution and after-sales service network.

17

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

18

EVOLUTION OF PHILIPS AS A BRAND

Wherever encountered, the Philips brand is a familiar sight in millions of households and buildings throughout the world with its instantly recognizable word mark of seven blue capitalized letters. Although the company has evolved and grown over more than hundred years, Philips visual brand identity is rooted in its early years at the beginning of the 20th century. Philips in 20th Century: First Lamp Advertisements

Established in 1891 in Eindhoven, the Netherlands, Philips & Co. was founded to meet the growing demand for light bulbs following the commercialization of electricity. In the early years of Philips & Co., the representation of the company name took many forms: 18 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

19

one was an emblem formed by the initial letters of Philips & Co., and another was the word Philips printed on the glass of metal filament lamps. One of the very first campaigns was launched in 1898 when Anton Philips used a range of postcards showing the Dutch national costumes as marketing tools. Each letter of the word Philips was printed in a row of light bulbs as at the top of every card. In the late 1920s, the Philips name began to take on the form that we recognize today. Philips Identity Trademarked: Origins of the Shield Emblem

The now familiar Philips waves and stars first appeared in 1926 on the packaging of miniwatt radio valves, as well as on the Philigraph, an early sound recording device. The waves symbolized radio waves, while the stars represented the ether of the evening sky through which the radio waves would travel. In 1930 it was the first time that the four stars flanking the three waves were placed together in a circle. After that, the stars and waves started appearing on radios and gramophones, featuring this circle as part of their design. Gradually the use of the circle emblem was then extended to advertising materials and other products. At this time Philips business activities were expanding rapidly and the company wanted to find a trademark that would uniquely represent Philips, but one that would also avoid legal problems with the owners of other well-known circular emblems. This wish resulted in the combination of the Philips circle and the word mark within the shield emblem. In 1938, the Philips shield made its first appearance. Although modified over the years, the basic design has remained constant ever since and, together with the word mark, gives 19 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

20

Philips the distinctive identity that is still embraced today.

Advertising Philips Brand Today


Whilst the logo of the company has been consistent since the1930s the way in which Philips has advertised and communicated to the outside world has varied. In general, until the mid-1990s all advertising and marketing campaigns were carried out at product level on a local market basis. This led to many different campaigns running simultaneously, not giving a global representation of Philips as a global company. To establish consistent global presence, in 1995 Philips introduced the first global campaign in 1995 under the tagline Lets make things better. This theme encapsulated the One Philips thinking and was rolled out globally in all markets and on all Philips products. This was also the first campaign that bought the whole company together, giving the employees a sense of belonging and providing a unified company look for an external audience. In September 2004, Philips launched its sense and simplicity brand promise, which marked a new way forward for the company. Sense and simplicity reflects Philips commitment to be a market-driven company that provides products and services that fulfill the promise of being designed around you, easy to experience and advanced. In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion and was ranked the 43rd most valuable brand in Inter brands 2008 ranking of best global brands.

20

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

21

How Philips India doubled its sales


The company launched an aggressive new advertising campaign in print, television and online. The new tagline "Sense and simplicity" showcases the new brand promises -- using technology to make life simpler and easier. Company sources say Philips is counting on the new campaign to help it grow by at least 25 per cent this year. That's in the future, but how did Philips almost double its market share in under four years? Interestingly, the company didn't adopt radically different strategies. It paid attention to what customers wanted; passed on cost benefits; and brushed up its admittedly fuddy-duddy image. According to Mr. D Shivkumar, executive director, consumer electronics, Philips, "We have managed to grow the business by focusing on the price -- quality equation."

21

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

22

PRODUCTS AND SERVICES


Philips being a market leader in electronic consumer durables and consumer non durables, has a wide range of products under the following headsHealthcare

Philips simplifies healthcare by focusing on the people in the entire cycle of care whether it is in the hospital or in the home patients and care providers. Philips Healthcare in India operates in the diagnostic imaging segment including CT, MRI, X-rays, cardiovascular system, nuclear medicine, PET-CT, and ultrasound imaging systems, and is also a significant player in patient monitoring. Recently, Philips Healthcare announced its entry into the fastgrowing Indian home healthcare market by introducing the Philips Respironics product categories in obstructive sleep apnea management and home respiratory care. Through combining human insights and clinical expertise, Philips aims to improve patient outcomes while lowering the burden on the healthcare system. Outstanding image quality and reliability, backed by an excellent application, and customer support network, has made Philips Healthcare a preferred choice of clinicians and one of the leading suppliers of diagnostic imaging systems. Philips is the clear leader in cathlabs segment with the most comprehensive range of innovative cardiology solutions in India. With a strong focus to drive growth from emerging markets, Philips Healthcare announced the first patient monitor designed for emerging markets, Philips SureSigns VM3, in India. This series of new portable, compact patient monitors provides a reliable, yet affordable means to observe and care for patients. With the acquisition of India-based Alpha X-Ray Technologies and Meditronics, Philips also expanded its healthcare business to cater to the high22 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

23

growth economy segment for Cardiovascular and General X-Ray systems. Lighting

Philips Electronics India, Indias largest lighting company operates in business areas of Lamps, Luminaires, Lighting Electronics, Automotive and Special Lighting. Today, as global leader in Lighting, Philips is driving the switch to energy-efficient solutions. With worldwide electrical lighting using 19 per cent of all electricity, the use of energyefficient lighting will significantly reduce energy consumption around the world and thereby cut harmful CO2 emissions. Philips India has been consistently working with industry bodies such as ELCOMA, Bureau of energy efficiency and NGOs towards addressing Indias power crisis through promotion of energy efficient lighting in India. Philips provides advanced energy-efficient solutions for all segments: road lighting, office & industrial, hospitality and home. Philips is also a leader in shaping the future with exciting new lighting applications and technologies such as LED technology, which, besides energy efficiency, provides attractive benefits and endless new never-before-possible lighting solutions. In 2008, Philips inaugurated a global research and development (R&D) centre for lighting electronics in India. This was its third such unit in the world. The facility which is situated in Noida will not only cater to the needs of the Indian market but also the Asia-Pacific, Europe and North America. The other R&D centres are located at Eindhoven in the Netherlands and in Shanghai, China. One of the primary research areas for the centre is to develop products that can tackle high voltage fluctuations in India. The centre currently employs 35 engineers. Around 40 per cent of Philips revenue in India comes from the lighting business.

23

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

24

Consumer Lifestyle

Guided by the brand promise of sense and simplicity and the consumer insights, Philips Consumer Lifestyle offers rich, new consumer experiences that meet consumers desire for relaxation and improving their state of mind. Philips also responds to the consumer's desire for wellness and pleasure by introducing products that meet the individuals interests in terms of their mind, space, body and appearance. The Consumer Lifestyle arm in India operates in the business areas of Home Entertainment solutions and Personal Infotainment with product categories such as TVs, home theatre systems, music systems, DVD players, personal entertainment solutions, sound accessories, Domestic Appliances and Personal care. Sound and Vision The Philips GoGear with FullSound was created to enhance the sound quality of your MP3 music while you play it. Now you can experience your music on the go as never before. Includes product range in Televisions Home Theatres Blu- Ray And DVDs Audio Products MP3 And Media Players Portable TV And DVD Digital Photo

House Hold Products 24 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

25

Includes the range in Coffee Makers And Kettles Irons Juicers and Blenders Food Preparation Water And Air Purifiers

PC Products and Phones Web Cams And Head Sets Monitors PC Audio Drivers And Storage Mice And Key Boards

Accessories Phone Accessories Audio/ Video Accessories MP3 Players Accessories Head Phone Remote Controls Mother And Child Care Power Solutions

Personal Care

25

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

26

This includes Mens Shaving Mens grooming Female depilation Hair care

26

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

27

RESEARCH METHODOLOGY
27 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

28

MAPPING THE RETAIL OUTLETS ACROSS LUCKNOW

I.

OBJECTIVE OF THE PROJECT:

To study the PHILIPSs Electronic Business with respect to competition in domestic market & suggest way forward for growth . The study will cover the SWOT analysis of the companys electronic business to arrive at the conclusion. II. PLANNING PHASE: Got the map of Lucknow city. Divided the map into three parts according to the distributors covering areas. Started visiting the outlets with the sales person at starting days & roamed to the area individually. Areas targeted:

1. Nakkhas 2. Naka Hindola 3. Aalam Bagh 4. Loutouche Road IMPLEMENTATION OF PLAN Studied the area map & visited the outlets directly (area-wise) for my survey which was included the following: Name of outlet Address Contact Details Brands that are stocked in outlets Distributor name Day of visit Feedback from retailers 28 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

29

After completing the mapping activity across all the areas I got the following information: Outlets Under Balaji Distributor No. of outlets = 300 No. of outlets which I have covered = 196 % of reachability = 65% Outlets Under R.P.G Heavy Electricals No. of outlets = 125 No. of outlets which I have covered = 85 % of rechability = 68% Outlets Under Swami Sales No. of outlets = 300 No. of which I have covered = 100 % of reachability = 33%

COMMON PROBLEMS ENCOUNTERED Not proper rotation Replacement policy of the company Not prompt service Low margin as compared to other brands Irregular visit of salesman Credit issue Attitude of the salesman (only in the areas of Chowk, Munshipulia, Jankipuram-60ft road) No gifts are provided at the time of festivals or at any occasion.

29

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

30

Sample Technique:The convenience sampling has used to collect the date for research. Sample Plan: Population:Retailers of electrical shops and few general stores and hardware stores who maintain the stock of electrical goods at their shops.. Sample: Retailer of electrical and general stores. Sample Unit: All the region of Lucknow where electrical,shops are available. Sample Size The sample size of the survey was 350 retailers. METHODS OF DATA COLLECTION The data used for the project is primary as well as secondary data, as follow: Sources of primary data: Questionnaire (Scheduling)

Sources of secondary data: Web sites

30

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

31

LIMITATIONS OF THE STUDY The sample size for the survey of retailer was limited to 350 respondents, which might not be representative of all retailer of Lucknow city. The results are totally derived from the respondents answers. There might be a difference between the actual and projected results. Research also depends on surveyors his/her ability to analyze the data & draw conclusion. The cost and time constraints might even have an impact over the results.

31

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

32

DATA ANALYSIS AND INTERPRETATION


FINDINGS AND SUGGESTIONS FINDINGS Improper distribution. Poor service after sales, i.e replacement is not proper at any distributor point. Philips gives fewer profit margins to retailers as compare to his competitive brands. RECOMMENDATION & SUGGESTIONS They should prefer proper distribution. They should provide some good scheme and offers to his retailers as well customer. Give proper information to the retailers about new products and provide catalogue. They should improve their post sales services. The company is having a poor marketing strategy. They should go for window dressing because I havent found any display board at any outlet in the whole survey. Replacement is the biggest issue that is lying with the companys strict policy. If the company follow such policy then in future retailer will not entertain Philips in their outlets and it will be a big blow for Philips. No cash discount provided to the retailers on cash purchase. Philips should improve its supply chain. Philips should provide a better margin to the retailers so that they can entertain Philips. Warranty issue, Philips is providing warranty of one year from the date of manufacturing whereas other competitors are providing warranty of one year from the date of sale from retail outlet. 32 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

33

CONCLUSION

The conclusion that can be derived from this survey is that Philips being a big brand, and a quality striver is hit by the low- cost rivals. But the segment it caters is highly satisfied and constitutes immense Brand Loyal. To boost its sales the company may need to adopt, certain measures for its re-positioning and can adopt differentiation strategies and proper distribution of their products including schemes and post sales services for the consumers in Lucknow region and turning low cost itself for the rest.

APPENDIX
33 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

34

Q:1 How many CFL do you sell weekly? A: 0-20 PHILIPS B: 21-40 SURYA C: 41-60 CROMPTON D: 61-80 BAJAJ OSRAM LOCAL

A. For CFL:

In Lucknow city Philips sahre 38.04% of market sahre whereas their nearest competetior Bajaj & Crompton share a market of 23.62% &25.32% respectively &rest of the market is shared by other market players including local players such as Arya and so on..

Q:2 How many GLS do you sell weekly? A: 0-20 34 B: 21-40 C: 41-60 D: 61-80

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

35

PHILIPS

SURYA

CROMPTON

BAJAJ

OSRAM

LOCAL

GLS PHILIPS 33.89 OSRAM 3.14 CROMPTON 20.70 BAJAJ 19.29 SURYA 19.45 OTHERS 3.53

A. For GLS:-

In Lucknow city Philips sahre 33.89% of market sahre of whereas their nearest competetior Bajaj & Crompton share a market of 19.29% &20.370% respectively &rest of the market is shared by other market players including local players such as Arya and so on.. Q:3 How many TL do you sell weekly? 35 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

36

A: 0-20 PHILIPS

B: 21-40 SURYA

C: 41-60 CROMPTON

D: 61-80 BAJAJ OSRAM LOCAL

PHILIPS 36.68

OSRAM 11.34

TL CROMPTON 14.30

BAJAJ 23.31

SURYA 8.26

OTHERS 6.11

1. For TUBE LIGHT:-

In Lucknow city Philips sahre 36.68% of market sahre of whereas their nearest competetior Bajaj & Crompton share a market of 23.31% &14.30% respectively &rest of the market is shared by other market players including local players such as Arya and so on..

36

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

37

Q:4 How many CHOKE do you sell weekly? A: 0-20 PHILIPS B: 21-40 SURYA C: 41-60 CROMPTON D: 61-80 BAJAJ OSRAM LOCAL

PHILIPS 26.20

OSRAM 2.49

CHOKE CROMPTON BAJAJ 14.18 15.57

SURYA 9.33

OTHERS 32.23

1. For CHOKE:-

In Lucknow city Philips sahre 26.20% of market sahre of whereas their nearest competetior Bajaj & Crompton share a market of 15.57.% &14.18% respectively &rest of the market is shared by other market players including local players such as Arya and so on..

37

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

38

Q:5 How many ELECTRONIC FITTINGS do you sell weekly? A: 0-20 PHILIPS B: 21-40 SURYA C: 41-60 CROMPTON D: 61-80 BAJAJ OSRAM LOCAL

PHILIPS 33.21

OSRAM 1.57

ELECTRONIC FITTINGS CROMPTON BAJAJ 14.26 16.21

SURYA 2.60

OTHERS 32.15

1. For FITTINGS:-

In Lucknow city Philips sahre 33.21% of market sahre of whereas their nearest competetior Bajaj & Crompton share a market of 16.21.% &14.26% respectively &rest of the market is shared by other market players including local players such as Arya and so on..

38

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

39

DISTRIBUTOR WISE MARKET SHARE OF PHILIPS


Balaji Distributors:Area covered by Balaji is Alambagh,Rajajipuram,Telibagh,Mawaiya,LDA,Ashiyana,Krishna Nagar,and so on..The market share of Philips as per the area covered by Balaji is as follows:CFL CROMPTON 23.71

PHILIPS 41.17

OSRAM 0.00

BAJAJ 24.35

SURYA 1.42

OTHERS 9.36

For CFL:-

The market share of Philips CFL in the area covered by balaji is 41.17% & the nearest competetior is Bajaj & Crompton who shares a market of 24.35% &23.71% respectively..The sales person of Balaji Mr Ajay & Mr Harnam has a very strong hold at retail outlets due to this Philips is able to maintain a very good market in these area

39

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

40

PHILIPS 32.40

OSRAM 1.00

GLS CROMPTON 12.33

BAJAJ 20.22

SURYA 29.40

OTHERS 4.65

For GLS:-

The market share of Philips CFL in the area covered by balaji is 32.40% & the nearest competetior is Bajaj & Crompton who shares a market of 20.22% &12.33% respectively..The sales person of Balaji Mr Ajay & Mr Harnam has a very strong hold at retail outlets due to this Philips is able to maintain a very good market in these area..

40

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

41

PHILIPS 47.08

OSRAM 7.95

TL CROMPTON 11.90

BAJAJ 30.67

SURYA 1.38

OTHERS 1.03

For TUBELIGHT:-

The market share of Philips TL in the area covered by balaji is 47.08% & the nearest competetior is Bajaj & Crompton who shares a market of 30.67% &11.90% respectively..The sales person of Balaji Mr Ajay & Mr Harnam has a very strong hold at retail outlets due to this Philips is able to maintain a very good market in these area

41

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

42

PHILIPS 33.13

OSRAM 0.00

CHOKE CROMPTON BAJAJ 24.71 9.66

SURYA 0.00

OTHERS 32.50

For CHOKE:-

The market share of Philips CHOKE in the area covered by balaji is 33.13% & the nearest competetior is Bajaj & Crompton who shares a market of 9.66% &24.71% respectively..The sales person of Balaji Mr Ajay & Mr Harnam has a very strong hold at retail outlets due to this Philips is able to maintain a very good market in these area

42

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

43

PHILIPS 41.23

OSRAM 0.00

ELECTRONIC FITTINGS CROMPTON BAJAJ 4.72 8.77

SURYA 0.00

OTHERS 45.28

For FITTINGS:-

The market share of Philips FITTINGS in the area covered by balaji is 41.23% & the nearest competetior is Bajaj & Crompton who shares a market of 8.77% &4.71% respectively..The sales person of Balaji Mr Ajay & Mr Harnam has a very strong hold at retail outlets due to this Philips is able to maintain a very good market in these area

43

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

44

R.P.G.HEAVY ELECTRICALS
Area which are covered by R.P.G is Indira nagar,Gomti nagar,Faizabad Road,Bhoothnath,Chinhat,Munshi Pulia and so on.The market share of Philips the area covered by this distributor is:CFL CROMPTON 23.28

PHILIPS 41.90

OSRAM 1.32

BAJAJ 24.30

SURYA 1.10

OTHERS 8.10

For CFL:-

The market share of Philips CFL in the area covered by R.P.Gi is 41.90% & the nearest competetior is Bajaj & Crompton who shares a market of 24.30% &23.728% respectively..

GLS 44 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

45

PHILIPS 28.78

OSRAM 3.08

CROMPTON 16.37

BAJAJ 22.49

SURYA 25.19

OTHERS 4.10

For GLS:-

The market share of Philips GLS in the area covered by R.P.Gi is 28.78% & the nearest competetior is Bajaj & Crompton who shares a market of 22.49% &16.37% respectively..

TL 45 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

46

PHILIPS 38.73

OSRAM 8.78

CROMPTON 8.12

BAJAJ 29.45

SURYA 5.25

OTHERS 9.67

For Tl:-

The market share of Philips GLS in the area covered by R.P.Gi is 38.73% & the nearest competetior is Bajaj & Crompton who shares a market of 29.45% &16.12% respectively..

PHILIPS 46

OSRAM

CHOKE CROMPTON BAJAJ

SURYA

OTHERS

PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

47

28.68

0.55

17.56

20.17

2.73

30.32

For CHOKE:-

The market share of Philips CHOKE in the area covered by R.P.Gi is 28.68% & the nearest competetior is Bajaj & Crompton who shares a market of 20.17% &17.56% respectively..

ELECTRONIC FITTINGS 47 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

48

PHILIPS 33.88

OSRAM 0.25

CROMPTON 8.16

BAJAJ 15.81

SURYA 2.89

OTHERS 39.02

For FITTINGS:-

The market share of Philips FITTINGS in the area covered by R.P.Gi is 33.88% & the nearest competetior is Bajaj & Crompton who shares a market of 15.81% &8.16% respectively..

SWAMI SALES
48 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

49

Swami sales is the biggest and major distributor of Philips it covers the major part of Lucknow such as NAKA,LOUTOUCHE ROAD,which is known as the the electroric and electric market of the city,the areas which are covered by swami sales is Nishatgunj,Ring road,Jankipuram,Mahanagar,Aligunj,Chowk,Balagunj and so onThe total area covered by me is almost 33% of the area covered by the distributor I just covered 33% of area just because of the time constrain and the time devoted to me by retailers is very low.They will not entertain anybody except any body during their working hrs from 11 a.m to 7 p.m. somehow I was able to take feedback from few retailers..The areas such as NAKA & LOUTOUCHE ROAD has almost 60 retailers who are big players of electric business and contribute a major share to any company in electric business in Lucknow City..My special thanks to those retailers of these area who gave their valuable time..Sales person of Swami sales Mr Pradeep has very good relationship with the retailers due to this Philips has a strong hold in these areas.Sales executive Mr Anurag Srivastava has also a very strong hold at each and every corner of Lucknow and every retailer appraise the behavior of Mr Anurag with few exceptionsMarket share of Philips is as follows the area covered by swami sales.. CFL PHILIPS 35.73 OSRAM 5.80 CROMPTON 26.37 BAJAJ 23.15 SURYA 3.70 OTHERS 5.25

For CFL:The market share of Philips CFL in the area covered by Swami Sales is 35.73% & the nearest competetior is Bajaj & Crompton who shares a market of 23.15% &26.37% respectively..

GLS 49 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

50

PHILIPS 35.74

OSRAM 4.01

CROMPTON 25.12

BAJAJ 18.14

SURYA 14.05

OTHERS 2.93

For GLS:-

The market share of Philips GLS in the area covered by Swami Sales is 35.74% & the nearest competetior is Bajaj & Crompton who shares a market of 18.14% &25.12% respectively..

TL PHILIPS 50 OSRAM CROMPTON BAJAJ SURYA OTHERS PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

51

33.18 5

12.99 0

16.62 10

19.59 10

11.02 0

6.61 0

0.00

For TL;-

The market share of Philips TL in the area covered by Swami Sales is 33.18% & the nearest competetior is Bajaj & Crompton who shares a market of 19.59% &16.62% respectively..

CHOKE PHILIPS OSRAM CROMPTON BAJAJ SURYA OTHERS 51 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

52

23.68

3.68

10.44

15.98

13.58

32.64

For CHOKE:-

The market share of Philips CHOKE in the area covered by Swami Sales is 23.68% & the nearest competetior is Bajaj & Crompton who shares a market of 15.98% &10.44% respectively..

ELECTRONIC FITTINGS PHILIPS OSRAM CROMPTON BAJAJ SURYA OTHERS 28.13 52 3.10 22.73 20.84 4.02 21.18 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

53

For FITTINGS:-

The market share of Philips FITTINGS in the area covered by Swami Sales is 28.13% & the nearest competetior is Bajaj & Crompton who shares a market of 20.84% &22.73% respectively..

BIBLIOGRAPHY
www.indiaphilips.com 53 PHILIPS ELECTRONICS INDIA LTD.

ATUL KRISHNA VERMA (PGFB1110)

54

http://www.iloveindia.com/economy-of-india/india-gdp.html

http://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in %20India.pdf Chawla and Swondhi, Research Methodology (text book)

WEBLIOGRAPHY http://www.india.philips.com/about/company/india/index.page http://www.philips.com/about/investor/index.page http://en.wikipedia.org/wiki/File:Philips_logo_new.svg http://www.india.philips.com/about/sustainability/index.page

54

PHILIPS ELECTRONICS INDIA LTD.