Professional Documents
Culture Documents
The main aim of this survey is to know about the Company and its
products it also includes product utility and competitors
PRAMOD KURMI
BBA IIND SEM 16TH BATCH
.
ACKNOWLEDGEMENT
I would like to whole hearty thank and express my sincere gratitude to
Prof. Y.S. Thakur Head of the Department of Faculty of Management Studies Dr.
Hari Singh Gour Vishwavidyalaya, Sagar for suggesting me this problem and for
giving an insight in delaing with the subject
Lastly, I Must express my gratitude to all the elders of the family and citizen
of the city who blessed me in course of discussion. I also extend my sincere thanks
to my family and my friends for their encouragement and support.
PRAHALAD KURMI
BBA II SEM.
(PRAHLAD KURMI)
B.B.A II Semester
DELCLARATION BY THE CANDIDATE
Date :
I declare that the project report titled " PHILIPS BULBS AND TUBES" on
Market Segmentation is nay own work conducted under the supervision of Miss Devagya
Uniersity Sagar To the best of my knowledge the report does not contain any work ,
which has been submitted for the award of any degree , anywhere.
(PRAHLAD KURMI)
B.B.A IInd Semester
CERTIFICATE
The project report titled "PHILIPS BULBS AND TUBES" been
prepared by MR. Prahlad Kurmi BBA II Semester , 16TH nd Batch under the guidance
and supervision of Miss Devagya Shrivastava for the partial fulfillment of the Degree of
B.B.A.
Table Of Contents
S.no. Page
a. Cover Page
b. Acknowledgement
c. Preface
d. Declaration
e. Certificate
f. Table of Contents
Chapter 1 – Introduction
1. Introduction
2. History
3. Mission & Values of the Company
4. An Overview of the Company
5. Major achievements of the Company
6. Competitive Environment before the Company
7. Products of Philips
EXECUTIVE SUMMARY
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 at identifying various problems faced by the company in Indore Market and the
consumer preference with reference to Electronics, Electricals and Personal Care Products.
Through this project I have found out that Philips faces intense competition from the local rivals
and the major market share belongs to the low-cost companies. Also, Philips as a whole needs to
reposition itself and its products especially to get over of the image created in the minds of the
gentry that Philips deals best in lightening products.
For this project the primary data was collected through questionnaire and secondary
data was collected through internet and magazines.
oyal Philips Electronics
Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company,
focused on improving people’s 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 world’s largest home healthcare company, being number one in: Monitoring
systems, Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.
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 people’s 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
Develop people
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 individual’s 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.
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.
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.
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
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 “Let’s 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 brand’s 2008 ranking of best global brands.
PHILIPS’ STRATEGY IN INDIA
Philips India, is in a bid to aggressively push its sales in the rural/semi-urban segment
and has designed an innovative strategy for these regions. Called the `Philips Mahasangram
Integrated Marketing Programmes', the rural initiative will be taken across the country from July
2, focusing on rural towns with a population of less than 5,000 and semi-urban towns with a
population between 5,000 and 50,000. , The Philips Mahasangram is aimed at taking Philips'
new products to the semi-urban and rural customers and increasing their awareness where
product knowledge, information and availability are concerned. An indication of the size of this
initiative can be obtained from the fact that Philips will be spending about 4.5 per cent of its
turnover from the rural/semi-urban areas on the Mahasangram alone.
Meanwhile, the key reason behind this initiative lies in the growing potential of the
rural market. According to industry data, while in 1997-98, rural sales formed about 25 per cent
of the total sales for CTVs, refrigerators and washing machines, it increased to 36 per cent in
2001-2002 and is expected to go up to as high as 41 per cent in 2006-07. Apart from initiating
new marketing and distribution programmes, Philips will also be launching a range of new
products during the rural initiative. Meanwhile, Philips plans to implement an innovative FMCG
style marketing strategy to push its durables in the rural segment. The Mahasangram Integrated
Marketing Programme is essentially about implementing a non-durables strategy marketing in a
consumer durable segment. The management is planning effective use of a number of media
vehicles to ensure efficient communication of the message and maximum utilization of the
money spent. The advertising and marketing strategy will be a combination of above-the-line and
below-the-line/ on-ground activities.
Various promotional activities which Philips plans to initiate during the Mahasangram
include a series of on-ground activities such as point of sale material at retailers' counters, road-
shows, mobile vans with Philips products on display and games, innovative tactics like
advertising on an inland letter form or postcard (a popular form of communication in rural areas)
and sponsorship of local events, among other things.
On the distribution front, Philips claims to have the biggest distribution network (as
compared to other consumer electronics companies) and a high degree of penetration even in the
rural and semi-urban areas. The company has carried out an extensive product-wise mapping
exercise over 540 districts across India. Keeping in mind the objective of extensive physical
reach of 80 per cent plus, where portable audio is concerned, the company has developed a
second line of activity in the distribution set-up. Also, in order to cater to volume drivers i.e.,
major retailers, company has identified the main retailers of each distributor and practice the Key
Account Management Approach with them, so that there is a focus on improving relations, trade
with these retailers, and catering to their needs. These steps have helped in developing their
volume reach, geographical reach and counter share significantly.
Philips is hoping that its innovative rural marketing initiative coupled with the high growth in the
rural market will boost its market share.
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."
The battle of perception
Philips has been a household name in India for 75 years, but consumers associated the
brand more with tube lights and transistors than cutting-edge technology.
That's ironic, considering the company has made its mark globally as a technology leader -- it
invented the cassette recorder, the compact disc and the DVD; the last in association with Sony.
But a survey by advertising agency JWT, which held the Philips account from 2001 (it
has recently moved to Mudra), revealed that Philips technology was seen as reliable but not
state-of-the-art.
Clearly, Philips needed an image makeover. It began by taking the technology route.
Post-2001, advertising campaigns emphasised the company's technologically-advanced features.
Philips was the first audio company to launch an MP3 player (May 2002), and it made
sure its communication played that up: "Don't buy a system if it doesn't have an MP3 player."
Then there was the October 2002 campaign, in which a little boy uses the power of the music
system to nudge the cookie jar off the top-most kitchen shelf.
The company was constantly refining the image of the company in the minds of the
consumer, making it more modern. But that wasn't enough. That's where in-store displays and
promotions that demonstrated the abilities of Philips products came in. In October 2003, JWT
broke the "Ramu kaka" ad, where the manservant inadvertently inserts a roti into the DVD
player.
The tagline made the message clear: "The new Philips DVD player plays anything". The
campaign proved immensely popular - it was used in other Asian countries as well -- and Philips
wasn't slow in leveraging its appeal. At live demos, customers would be invited to slip rotis into
the player, creating a buzz around the product and the brand.
But that would probably appeal more to families and Philips needed to reach out to the
youth, its target customer base. So it went to where the action was -colleges and rock festivals.
Philips set up stalls, complete with a professional DJ. Youngsters were invited to man the
console, while the DJ gave them tips on mixing and spinning. And had huge walk-ins and could
provide an involvement and experience with the brand.
Moreover, prices have been falling by 10 per cent on average every year. Of course,
that's true for other brands as well but, Philips "found the sweet spot at which youngsters could
buy".
How did it do that? By ensuring that it was perceived neither as a price warrior like Aiwa
or Sansui nor prohibitively expensive -- Sony products are on average 10 per cent more
expensive.
Philips also brought in help from outside. In late 2002, it tied up with Countrywide and Citibank
to provide accessible finance schemes for its products.
Compared to equal monthly installments of about Rs 1,000 earlier, the new schemes let
customers pick up state-of-the-art sound machines for as little as Rs 333 a month - that too,
without a down-payment.
Has that helped? Consider: Philips entered the minis segment only in 2000, a year behind
Sony. But it's now carved up the market with Sony, with 45 per cent share each.
The company also paid close attention to customer feedback. It has ramped up the number of
service centres across the country to 190, from 125 two years ago. Today, over 900 technicians
now attend to complaints, up from 600 in 2002.
Products include a full range of incandescent and halogen lamps, compact and normal
fluorescent lamps, high-intensity gas-discharge and special lamps, fixtures, ballast,
lighting electronics and automotive lamps.
Halogená offers consumers in the U.S. whiter light and a lifetime about three
times longer than standard incandescent lamps.
The ALTO T8 fluorescent lamp, which contains the least mercury of all
comparable lamps on the U.S. market while maintaining its superior
performance, is being installed in all newly constructed WalMart stores in the
U.S.
The CLEO Natural range of tanning lamps which apply the latest scientific and
medical knowledge in providing a sensible, effective tan in a soft and gentle way.
The UHP (Ultra High Power) lamp is currently the leading product in the market
for digital data projection in beamers connected to PCs.
Electronic ballasts for TL5 and PL-T/C lamp circuits (e.g. miniature HF-
Matchbox), and electronic gear for operating HID lamps.
The recently launched e-Kyoto electronic ballastweighs 58% less and uses 20%
less energy than electromagnetic ballasts.
VisionPlus lamps increase road safety by giving 50% more light on the road, a
10-20 meter longer beam and better reflections from roads and signs; Xenon
automotive lamps give more than twice as much light as conventional halogen
lamps while using only half the energy.
Our Halogená Classic light bulb lasts two years and is ideal
for hard-to-reach fixtures. Its Long Life means less hassle and
lower maintenance as well as energy savings over standard
incandescent bulbs. The Halogená Classic provides crisp,
white light, and is available in 60, 75, 100 and 150 watt bulbs. Use it for table lamps,
hanging pendants, ceiling fixtures, outdoor lighting, commercial downlights, or any
hard-to-reach fixture.
BRILLIANT CRYSTAL
Working at PIC are about 1000 of the industry's finest professionals, using state-of-the-
art software engineering paradigms and platforms including real-time systems, component-based
software engineering and multi-threaded architecture to drive the creation of tomorrow's
products and services. PIC is an ISO 9001/TickIT, SEI, CMM SM level 5 company & has
emerged as a critical partner in the development of strategic & futuristic technologies for Philips
worldwide. 60,000 registered patents illustrate the innovative nature of the company. Philips has
adopted an Open Innovation strategy which leverages the joint innovative power of partnering
companies and researchers to bring more innovations to the market effectively and faster. PIC
has built-up extensive know-how and expertise in the software engineering and technology
domains relevant to its business. In addition, competencies in the areas of project management,
requirement engineering and quality assurance have been established to offer customers products
and services of the highest quality, at the fastest time-to-market and the lowest cost of
ownership.
RATIONALE OF THE STUDY
brand in electronics segments and also they provide similar products and services.
So my motive of the project is to know the basic cause behind the challenges and
develop new opportunities for Philips Electronics India Ltd in Indore market.
To carry out the study of the Philips Electronics India Ltd. Policy, strategy
Research Design
This is a Descriptive type of research which involve the collection of information about
the company.
Sample Technique:-
The probability sampling has used to collect the date for research.
Sample Plan:-
Population:-
Retailers of electronics, electrical and appliances products as well Gifts and personal care
shops.
Sample:
Retailer of electronics, electrical and gift items.
Sample Unit:
All the region of Indore where electronics, electrical, appliances, gift and personal care shop
available.
Sample Size
The sample size of the survey was 104 retailers.
60 56.62 Iron
50
42.16 42.16
Mixing Grinder
40
Juice Mixing
30 28.91 Grinder
Hair Dryer
20
14.45
10 7.22
Shaver
0 FemaleDeplition
May-June
6.02 Khaitan
8.43 Usha
8.43
Murphy
Gopi
7.22
Kwality
6.02
Ruchi
Omega
18.07 53.01
Sona
2.4
Radition
24.09 Inalsa
12.04
18.07 Ameet
Roxy
Apollo
Panasonic
Niko
Philips
Bajaj
7% 2%
Maharaja
4% 20%
4%
7% Kenstar
Crompton
8% 15%
7% Kwality
11% 15%
Inalsa
Gopi
Ameet
Khaitan
Roxy
Nova
Orbit
Orbit, 4.81
Nova, 6.02 Bajaj, 7.22 Local
Philips
32% Philips
Local
44% Bajaj
Nova
Bajaj Local
Nova 13%
11%
Local
45% Philips
Philips
55% Local
36.56
35
30
27.48
25
20 May-June
14.83
15
9.43
10 8.32
5 3.61 3.05
2.12
1.21
0.56 0.41 0.81 0.31 0.21 21% 0.31
0
j ar ja i hi a a
p s ja on va ta
n ha y p i ty eg n xy t s
ili Ba st ra pt No ai Us ph Go al c So Ro uc
Ph
n ha ur Ru Om od
Ke a o m Kh M Kw Pr
M Cr al
L oc
Shaver 69
2
Hair dryer 57
2 No
Juice Mixing Grinder 40 Yes
7
Mixing Grinder 40
7
Iron 27
8
0 10 20 30 40 50 60 70 80
3% Strongly agree
9%
29%
Agree
Strongly
disagree
12. Retailer satisfaction with distribution channel of Philips?
Fair Superb
14%
Superb
Excellent
44%
Good
24%
Good
Excellent Fair
18%
Data Analysis (On the basis of Gifts and Personal care Shops):-
13. Product category available:-
Hair dryer,
30 28.57
Hair dryer
25 Shaver, Female
19.07 depilation,
20 19.04
Shaver
15
10
Female
5
depilation
0
May-June
20
17
15 16
15
Yes
10
5
1 1
0
0 No
Hair dryer Shaver Female
depilation
15. Why not interested in Philips’s Personal care products (where it not present)?
17% Not selling
Costly
50%
33% It is an
electronic
product
LIMITATIONS OF THE STUDY
The sample size for the survey of retailer was limited to 104 respondents, which
The results are totally derived from the respondent’s answers. There might be a
Research also depends on surveyors’ bias & his/her ability to analyze the data
The cost and time constraints might even have an impact over the results.
FINDINGS
FINDINGS
Improper distribution.
Poor service after sales, Service centre take much time to return
products.
competitive brands.
SUGGESTIONS
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
To boost its sales the company may need to adopt, certain measures for its
of their products including schemes and post sales services for the consumers
in Sagar region and turning low cost itself for the rest.
REFERENCES:-
BIBLIOGRAPHY
C. R. Kothari, Research Methodology, new Age International (P) Limited, publishers
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
http://www.philips.co.in/c/food-processors-mixers/24538/dec/
FACULTY OF MANAGEMENT STUDY
QUESTIONAIRE
Address :
a. Yes. b. No.
a. Yes. b. No.
Q.3 How Often Sales Promotion Schemes are offered on Philips Electronics
Q,4. Rate the following factors you consider are important for building brand
Image.
a.Price b. Clarity c. Durability
d. Looks e. Quality
Q 5. What do you look for while purchasing Philips Electronics ? Please rank in order of
importance?
a. Comparative Advantage b. Price
c. Scheme/Discount/Free Gift d. Quality
OBJECTIVE
TIME CONSUMING
COSTLY
REQUIRED EFFORTS