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PROJECT REPORT
ON
BY
SUBMITTED TO
UNIVERSITY OF PUNE
PUNE - 411041
DECLARATION
GUIDE’S CERTIFICATE
and belief the work embodied in this Project Report has not formed
earlier the basis for the award of any degree or similar title of this or
Competitor's objectives
Competitor's assumptions
Competitor's strategy
Competitor's capabilities
Objectives and assumptions are what drive the competitor, and strategy and
capabilities are what the competitor is doing or is capable of doing. These
components can be depicted as shown in the following diagram:
The two main sources of information about a competitor's strategy is what the
competitor says and what it does. What a competitor is saying about its strategy
is revealed in:
10K reports
interviews with analysts
statements by managers
press releases
However, this stated strategy often differs from what the competitor actually is
doing. What the competitor is doing is evident in where its cash flow is directed,
such as in the following tangible actions:
hiring activity
R & D projects
capital investments
promotional campaigns
strategic partnerships
mergers and acquisitions
Competitor's Objectives
Other aspects of the competitor that serve as indicators of its objectives include
risk tolerance, management incentives, backgrounds of the executives,
composition of the board of directors, legal or contractual restrictions, and any
additional corporate-level goals that may influence the competing business unit.
Competitor's Assumptions
The assumptions that a competitor's managers hold about their firm and their
industry help to define the moves that they will consider. For example, if in the
past the industry introduced a new type of product that failed, the industry
executives may assume that there is no market for the product. Such assumptions
are not always accurate and if incorrect may present opportunities. For example,
new entrants may have the opportunity to introduce a product similar to a
previously unsuccessful one without retaliation because incumbent firms may not
take their threat seriously. Honda was able to enter the U.S. motorcycle market
with a small motorbike because U.S. manufacturers had assumed that there was
no market for small bikes based on their past experience.
The result of the competitor analysis should be an improved ability to predict the
competitor's behaviour and even to influence that behaviour to the firm's
advantage.
• To help forecast the returns that may be made from future investments (e.g.
how will competitors respond to a new product or pricing strategy?
Which are the major players of consumer durable goods (LCD) market?
Philips is one of the largest electronics companies in the world. In 2009, its sales
were €23.18 billion. The company employs 115,924 people in more than 60
countries.
History
The company was founded in 1891 by Gerard Philips, a maternal cousin of Karl
Marx, in Eindhoven, Netherlands. Its first products were light bulbs and other
electro-technical equipment. Its first factory survives as a museum devoted to
light sculpture. In the 1920s, the company started to manufacture other products,
such as vacuum tubes (also known worldwide as 'valves'), in 1927 they acquired
the British electronic valve manufacturers Mullard and in 1932 the German tube
manufacturer Valvo, both of which became subsidiaries. In 1939 they introduced
their electric razor, the Philishave (marketed in the USA using the Norelco brand
name).
Main inventions
Compact Cassette
In 1962 Philips invented the compact audio cassette medium for audio storage.
Although there were other magnetic tape cartridge systems, the Compact
Cassette became dominant as a result of Philips's decision to license the format
free of charge.
Laserdisc
Laserdisc was a 30 cm disc designed with MCA meant to compete with VHS and
even replace it. It was not as generally popular as VHS, because of the initial
investment costs of players, somewhat higher costs of movie titles, and the read-
only format. But like Betamax, it enjoyed extensive success among serious video
collectors. The technologies created for Laserdisc would later be used again for
the Compact Disc.
Compact Disc
Although Philips' and MCA's Laserdisc project never reached the VHS mass market
level, Philips still thought the format should be able to succeed, and (with Sony's
help), in 1982 they launched the smaller CD.
DVD
The DVD, the eventual successor of the CD, met a long road of setbacks. Philips
wanted to continue with the CD in a new format called MultiMedia Compact Disc
(MMCD), while another group (led by Toshiba) was developing a competing
format, then named Super Density (SD) disc. Their representatives approached
IBM for advice on the file system. IBM also learned of Philips' and Sony's initiative.
IBM convinced a group of computer industry experts to form a working group.
The Technical Working Group (TWG) voted to boycott both formats unless they
merged to prevent another format war (like the videotape format war). The result
was the DVD specification, finalized in 1995. The DVD video format was first
introduced in Japan in 1996, later in 1997 in the U.S. as limited test run, then
across Europe and the other continents from late 1998 onwards.
Blu-Ray
Blu-Ray, yet again primarily developed by Philips and Sony, utilizes blue-violet
colored diodes to create an even shorter wavelength beam than CD or DVD.
Because of this, the capacity is much more than that of CD or DVD, being 25 GB
single-layered or 50 GB dual-layered.
Corporate affairs
In 2004, Philips abandoned the slogan "Let's make things better" in favour of a
new one: "Sense and simplicity".
Its record division, Polygram, was sold to Seagram in 1998 to form Universal
Music Group.
Philips Intellectual Property and Standards, is the company's division dealing with
licensing, trademark protection and patenting. Philips currently holds about
55,000 patent rights, 33,000 trademark registrations, and 49,000 design
registrations.
Presence in India
Philips started operations in India at Kolkata (Calcutta) in 1930 under the name
Philips Electrical Co. (India) Pvt Ltd, comprising a staff of 75. It was a sales outlet
for Philips lamps imported from overseas.
In 1938, Philips India set up its first Indian lamp-manufacturing factory in Kolkata.
After the Second World War in 1948, Philips started manufacturing radios in
Kolkata. In 1959, a second radio factory is established near Pune.
1951 – Introduced the Philishave two-headed rotary shaver, marketed in the USA
under the Norelco name.
1963 – Introduced the first domestic home video tape recorder, the 405 line 1"
tape reel model EL3400.
1978 – Introduced the laserdisc player, using technology invented in the 1960s.
1978 – Introduced the Philips Videopac G7000 (pictured at right), a home video
game console developed by its Magnavox division. Marketed in the United States
as the Odyssey console. Variations of the console are sold worldwide through
1984.
1991 – Introduced the CD-i, the Compact Disc Interactive system which had many
video-game console-type features, but was not a sales success.
2004 – Philips HomeLabs research center created the Mirror TV technology used
in their MiraVision television line.
2009 – Introduced the Philips Cinema 21:9 TV in a widescreen mode for HDTVs
with an LCD display using the aspect ratio.
Electrolux products include white goods and vacuum cleaners sold under a variety
of brand names, including its own.
Notable products
1940: Assistant, the company's only wartime consumer product, is a mixer /food
processor.
2002: The Washy Talky 'talking' washing machine goes on sale in India.
Videocon has set up a separate business unit to market and sell Electrolux and
Philips brands in India. Videocon acquired the rights for marketing Philips
television in India, in April. It already has the India brand rights for Electrolux
home appliances.
Anil Khera will be the chief executive officer for the Philips-Electrolux unit, who
will be shouldering this additional role along with continuing to head Videocon’s
direct-to-home and mobile handsets businesses. The group has also hired Sajeev
Rajasekharan as the COO of Electrolux and Neeraj Sethi as COO of Philips brand.
The five-year agreement was signed when Videocon acquired the manufacturing
operations of Electrolux in India along with rights to market appliance brands
Electrolux and Kelvinator in the country. The discussions about renewal of the
contract between Videocon and Electrolux are one.
Philips and Electrolux were clubbed together as a business unit as they are the
premium brands in the Videocon portfolio and complement rather than compete
with each other given their product mix.
RESEARCH METHODOLOGY
Research in common refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information of a
specific topic. It is the pursuit of truth with the help of study observation,
comparison and experiment.
After deciding the objective of marketing research next step is deciding research
plan for gathering effective information related to this research project. The
research plan consists of following steps, which are discussed subsequently.
Research Design
1. Descriptive Research: -
In my market survey descriptive research process was carried out to describe the
market characteristics, competitor profiles, marketing strategies, market
potential, etc.
2. Data source:-
While project study I used primary as well as secondary data source. For primary
data collection I visited retailers in Pune region and for secondary data went
through various journals and Internet also. The information collected is relevant,
correct and unbiased.
3. Research Approach:-
I followed survey technique for collecting the data. In market survey of Philips-
Electrolux I have used survey research approach. Here I carried out information
from retailers. I have carefully selected the instrument and methods of surveying
like I have chosen personal contact methods, not telephone survey because of
higher response rate meaningful responses. This helped me to get the general
feedback in Philips-Electrolux etc.
4. Research Instruments:
The research instrument used was questionnaire form. For this I have visited
outlets and check the competition facing by Philips-Electrolux brand from others
in market. A detailed questionnaire was prepared for this. In my research process
I have used close ended and open- ended questionnaire where respondents could
answer in their manner. Through this I was able to extract information from the
respondents about Philips-Electrolux and other brand competing each other.
5. Sampling Plan:
Sampling unit
Sampling size
I have surveyed about each and every outlet of the area specified to me size
would reach up to 50 retailers. I have covered the area of Pune region like
Sinhgad Road, Tilak Road, Swargate, Shivaji nagar, Kadki, etc.
Sampling Technique
In this market study I have used pie chart and bar chart for data analysis and
interpretation.
Data Collection
This report was prepared after collecting data from the retailers/ dealers and past
data was arranged from the various studies conducted in last few years and
various other records of company.
Primary Data:
These data were collected by personal interview with retailers/ dealer. For this
purpose questionnaires were prepared in such that all necessary data would be
collected.
Secondary Data:
Information regarding the project, secondary data was also required. These data
were collected from various past studies and other sources of the company.
92%
INTERPRETATION
The number of brands of which retailers are aware of are more than 3
because more than 90%.
Parameter
35
30
25
20
15
10
5
0
Price Quality Brand Name Various Schemess
Parameter
INTERPRETATION
64% retailers says that its price on the basis of which customer purchase
LCD’s. 24% says that it is quality and 8% says that it is Brand Name. So,
price is important parameter for selling a LCD.
Maximum Sales
4%4%
Samsung
24%
Sony
20% LG
Panasonic
Others
48%
INTERPRETATION
The maximum selling brand in LCD’s in Pune region seems to be Sony because
48% of retailer’s maximum sells is from Sony. No retailer from Pune region sells
Philips-Electrolux LCD as maximum sales.
28%
INTERPRETATION
According to above data it was found that Samsung leads by giving more profit
margins to their retailer.
24%
INTERPRETATION
From the above data we can interpret that here also Samsung leads by
giving most satisfying service to their customers.
Schemes Provided
4% 4%
Samsung
32% Sony
LG
36% Panasonic
Others
24%
INTERPRETATION
From the above data we can interpret that brand which provides most
schemes to their retailers is LG.
Ranking
4%
8% SONY
Samsung
12% LG
46% Panasonic
Others
31%
INTERPRETATION
Most of the consumers ranked SONY as their first preference, the second choice is
to SAMSUNG and then to LG.
A growing industry often faces threat of new entrants that can alter the
competitive environment. Same is with the consumer durable goods as Philips-
Electrolux has a threat that new entrant like VU, Sharpe, Sansui and many
more could increase competition.
Threat Of Substitutes
Profit margin is the point where suppliers could bargain for having more
profit and the company which provides maximum profit they promotes that
particular brand of LCDs.
FINDINGS
The number of brands of which retailers are aware of are more than 3
because more than 90%.
Brands such as Samsung, Sony, LG & Panasonic are well known brands and
known to almost all retailers.
64% retailers says that its price on the basis of which customer
purchase LCD’s. 24% says that it is quality and 8% says that it is
Brand Name. So, price is important parameter for selling a LCD.
SUGGESTIONS
Company should have their post sale services network good for attracting
more number of consumers.
Company should do regular visit to the retail outlets for having more
personal contacts with retailers.
During the project work it was found that less promotional activity is
causing loss of market base for Philips so company should promote
their products more aggressively.
Introduction of new technology like LED, IPS panel and 3D can make
difference.
Company should have good warranty period of their product which is less
can compete with other brands in the market
Company could encash brand name by giving little bit more profit
margins to retailers in comparisons to others.
CONCLUSION
3. In the project it was observed that LCDs’ having quality and long
replacement warranty are leading the market.
4. After analyzing the market it can be said that post sales service plays
a vital role in market penetration.
BIBILIOGRAPHY
13th EDITION
WEB SITE
⇨ www.google.com
⇨www.philips.co.in
⇨www.electrolux.com
Retail shop
Address
Retailer’s Name
Contact no.
QUESTIONNAIRE
a. 0-2
b. 2-4
c. 4-6
d. More than 6.
3) How many brand of LCD are you aware of?
a. ONE
b. TWO
c. THREE
d. MORE THAN THREE
a. Price
b. Quality
c. Brand Name
d. Schemes
6) Which is the brand of LCD that mostly sold from your shop?
a. SONY
b. SAMSUNG
c. LG
d. PANASONIC
e. OTHERS
a. SONY
b. SAMSUNG
c. LG
d. PANASONIC
e. OTHERS
a. SONY
b. SAMSUNG
c. LG
d. PANASONIC
e. OTHERS
a. YES
b. NO
a. SONY
b. SAMSUNG
c. LG
d. PANASONIC
e. OTHERS
a. YES
b. NO
a. SONY
b. SAMSUNG
c. LG
d. PANASONIC
e. OTHERS