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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 peoples lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into peoplecentric 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.

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.

"Improve the quality of peoples lives through timely introduction of meaningful innovations."

In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.

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 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.

Depend on each other We deliver more value by working as One Philips

We think as One Philips and act as owners We trust and empower each other to contribute our best We team up and allocate resources to the most promising opportunities.

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.


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: 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 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.


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 semiurban 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 nondurables 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.

Clinch the dealer

Philips has successfully played the price card, but not all price cuts have been due to better or cheaper technology. In some segments like radios, it did away with trade discounts and passed on the savings to the customer. Two years ago, Philips' radios sold at Rs 600 -- a huge premium compared to the Rs 200 or so that other brands cost. In mid-2003, the company slashed the price to Rs 400 and even introduced new models at the Rs 160 price point, especially targeting the non-urban youth segment. Not surprisingly, dealers were upset at their shrinking margins. Some started stocking competing brands, only to return, claim company officials, when they found volumes were increasing exponentially. They soon realized it was more profitable to sell Philips radios because the turnover is much higher. To ensure the penetration and distribution happens, Philips changed its distribution strategy around two years ago. Distributors were now allocated smaller geographical territories so they can concentrate on getting firmer footholds in their areas. Distributor in upcountry markets, who were earlier allotted five or six districts are now given only two or three. And not all are given the entire product range so that the focus is sharper.

Creating the value proposition Philips realized early on that maintaining the price-quality equation is critical. That's especially true of the minis (DVD and VCD hi-fi systems) segment, which accounts for a quarter of the audio market in value terms. Even as Philips constantly raised the technology bar (MP3 players, deeper bass, sleeker, more streamlined systems), it's kept its prices competitive. The company prices its minis at Rs 8,000-25,000, compared with the market range of Rs 7,500-30,000.

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.


Philips is number one in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Its strategic ambition is to set the pace in the lighting industry as the first-choice innovative partner for the supply of creative and cost-effective lighting solutions.

The divisions products are found all around the world: not only everywhere in the home, but also in a multitude of professional applications, for example 30 per cent of offices, 65 per cent of the worlds top airports, 30 per cent of hospitals, 35 per cent of cars and 55 per cent of football stadiums (seven of the ten at the 2002 S o c c e r W o r l d C u p in Japan/Korea).

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.

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Halogen 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. Ecotone Ambiance, a compact, energy-saving lamp on the European consumer market, has the same shape and gives the same natural soft light as the Philips Softone. 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. MasterColour CITY extends to outdoor applications the excellent "white light" color properties and high efficacy of the existing MasterColour indoor range.

Metronomis outdoor luminaires reflect a modern vision of architectural urban lighting, in which leading-edge technology is combined with a clear and elegant design.

The TL5 office lighting system, consisting of the T5 small-diameter (16mm) fluorescent lamp along with efficient TL5 fixtures incorporating sophisticated lighting controls, provides high-quality lighting and minimizes energy demands. 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 HFMatchbox), 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.

The divisions extension of its LumiLeds JV with Agilent Technologies in the field of LEDs (light-emitting diodes) strengthens its leading position in this field and underlines its confidence in this technology being applied to an increasing range of applications.

Philips Lighting employs some 47,000 people worldwide. Manufacturing operations in the Netherlands, Belgium, Germany, France, the United Kingdom, Poland, the United States, Canada, Brazil, India, Indonesia, Thailand, the Peoples Republic of China, South Korea, Spain and Mexico.

Our Halogen 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 Halogen 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.


The versatile Halogena Indoor Floodlight and Spotlight reflector lasts up to 50% longer than standard incandescent reflectors. That's up to 3000 hours of brighter, whiter light! Save time with fewer light bulb changes to your hard-to-reach fixtures. When the time does come to change bulbs, this reflector's easy-to-grip shape makes for quick installation and removal.

Thousands of Americans - and millions more on TV welcomed the new millennium with Halogen Brilliant Crystal, a brand-new light bulb that was specially designed to light up the world-famous New Years Eve Ball in Times Square, New York. Being facetted, it is ideal for any application in which sparkle, dazzle and brilliance are desired, such as in chandeliers, or in outdoor decorative situations.

Halogen Stylized Flame is an elegant Long Life alternative to standard decorative incandescent bulbs. Its Long Life means less hassle and lower

maintenance as well as energy savings. Available in both candelabra and medium base, the Stylized Flame provides a direct replacement to standard incandescent decorative lamps and is ideal for chandeliers, sconces or any decorative fixture. Stylized Flame can also be used with a dimmer swich, which provides additional energy savings.


Halogen Postlight's and Traditional Flame's Long Life mean they last longer than standard and decorative incandescent lamps. Their crisp, white halogen light provides an elegant sparkle for indoor and outdoor applications. Both are also dimmable, which adds design flexibility and energy savings to these premium bulbs. Philips Innovation Campus (PIC)

Philips Innovation Campus (PIC), Bangalore is a division of Philips Electronics India Limited, which is owned 96% by Royal Philips Electronics N.V., The Netherlands. It was established in August 1996, with a vision to be an innovation hub creating next generation solutions and products for Healthcare and Lifestyle. With the objective of meeting the growing need for high-quality, cost-effective software development capacity within the organization, PICs share has increased significantly from 8% in 1998 to around 20% in 2008.

Working at PIC are about 1000 of the industry's finest professionals, using state-ofthe-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.


My survey was limited to Sagar market. The sample size for the survey of retailer was limited to 104 respondents, which might

not be representative of all retailer of Sagar 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 bias & his/her ability to analyze the data & draw

conclusion. The cost and time constraints might even have an impact over the results.


FINDINGS Philips has developed a good brand image but currently is showing Improper distribution. Improper distribution. Poor service after sales, Service centre take much time to return products. Philips gives fewer profit margins to retailers as compare to his competitive brands.

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 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 repositioning and can adopt differentiation strategies and proper distribution of their products including schemes and post sales services for the consumers in Sagar region and turning low cost itself for the rest.


BIBLIOGRAPHY C. R. Kothari, Research Methodology, new Age International (P) Limited, publishers