Philips

1. What variables are used by companies to segment the market?

          

MACRO SEGMENTATION

Industry

Industries served by Philips can be broadly divided into-

 Retail and Hospitality Industry

 Healthcare Industry
 Sports Industry
 Horticulture
 Airports

Organizational size 

 SME ( Horticulture Industry, Office uses, sports)

 Heavy Industries (Hospitality, Healthcare, Automotive)

Micro Segmentation
On Organizational Level Micro segmentation is done on

In terms of Offering:

2. Write a target market profile for Philips.

Philips has divided its target market into two broad categories

 Philips for Consumers – In this they tend to target the households customers
who are looking to find a better lighting solution for the home. Philips offers a
wide range of product in this category from fixtures to bulbs to Highlights
bulbs. It also offers automatic lighting solution in this category. Sectors served
are office, educational institute etc.

 Philips for Professionals – In this Philips serves many industry and sectors
such as Healthcare, Construction, Sports, and Horticulture etc. Different
sectors needs different lighting solutions. For sports industry one needs bright
Halogens light or fields light they have different lighting solutions for different
sports like hockey, golf, football etc. For healthcare sector UV-C Disinfectants
are needed. For Horticulture Philips top lighting LED are used they have
different lighting solution for Floriculture, City Farming etc. They also serve
 hospitality sector where they provide a full on solution from room lighting to
the building parking, Restaurant, Clubs etc.
They also serve SME’s and Heavy industries with the lighting solution Philips
take cares of providing the services of managing the product, replacing the
product after the product life ends and also professional services like
suggesting the design according the need and requirement of the customer it
insures that there lighting solution reduces cost, optimize the operation,
enhance the health and safety of workers working in the industry and Improve
sustainability.

The company do miss out on certain market like Automotive Industry, Event
Industries, Collaborating with Government on Projects and Construction
Industries.

3. If your group wants to start business in an allocated industry then what

target market would you choose? why?

Location-

Philips is registered in the Netherlands as a naamloze vennootschap. The global

headquarters of Philip is located in Amsterdam. Philips had 111 manufacturing
facilities, 59 R&D Facilities across 26 countries and sales and service operations in
more than 100 countries.

Operating variables
Technology

Philips is the leading global brand in professional lighting. Which provide high-quality
energy efficient lighting products, systems and services. Philips believes in
innovation and transforming any space with the lighting solution both for consumers
and proffesionals

User or nonuser status

Best suited for home, office Retail stores and SMEs.

Customer capabilities
The company serves customers which believes in innovation and wants to transform
their space with the best lighting solutions. The company plays a great role in
transforming the space and providing best lighting solution for the SMEs. It insures
that there lighting solution reduces cost, optimize the operation, enhance the health
and safety of workers working in the industry and Improve sustainability.

Purchasing approaches-
Power structure:

Serves those companies which are into-

 Offices
 Educational Institutes
 Landmarks
 Malls
 Parks and Plaza
 Roads and Street
 Retail Stores

Nature of existing relationship:

Philips focuses on innovation its range of products offerings to its existing customers
where they are already providing. Such types of applications include Airports,
Horticulture, Retail stores, Household and Office lighting solution.

Purchasing criteria- The purchasing criteria depends upon the requirement of the
business house or the consumers.

For Professional

 Lighting Products (Lighting Controls, OEM Products, Indoor Luminaries, etc.)

 Speciality Area ( Horticulture, Special Lighting, UV-C Disinfectants)
 Product Highlights (Coreline, Freestreet, Iridium Gen3)

For Consumers

 Fixtures
 Bulbs ( Compact Fluorescent, Fluorescent Tubes, Halogen)
 Highlights ( HUE, LED lights, LED classics)