Philips Electric Shaver

MKT 4730 Marketing Management

Section 406

Report to
A. Nawarat

Yoosamran

By
1. Thapanee
2.

Jirat

N.
P.

3. Titiwut
4. Warrissara

5311258
5311602

P.

5511217
P.

5511489

Semester 1 Years 2015

Assumption University

Martin de Tours School of Management & Economic

Department of Marketing
Group Acknowledgement Form

Subject Code
Group Name
Group Topic/Client (if applicable):
Section:
Please confirm that your report meets the following requirements (by ticking each box) before
submission:
The declaration below has been read, signed, and dated.
The report is originally made and has not been submitted previously in other course units.
Academic Honesty
All forms of plagiarism and unauthorized collusion are regarded as serious offense by the
university and could result in penalties including failure and possible disciplinary action. If in doubt
as to the authenticity and legitimacy of the report, immediate consultation with the course lecturer
is therein recommended.
Declaration
We have read and understood the information stated in Academic Honesty. We hereby accept
and acknowledge that this report is our own work, has been expressed in our words and has not
been previously submitted to other course units either as assignment or project paper.

Student I.D.
1.

# Group Members Names

Signature

Date

2.
3.

4.

5.
6.

MKT4730 Marketing Management

Project Evaluation Form Semester 1/2015
Section: ______ Group: ____________ Leaders Name: ___________________ I.D:
____________Tel: ______________ Total Project Mark: ________________
Criteria of 10%

Performance

Good 0.51 0.75

V. Good 0.761.00

Consumer Insight

Information Reliability: (0.5%)

Poor 0 - 0.25

Good 0.51 0.75

V. Good 0.761.00

Foot notes

Typing errors

Good 0.51 0.75

V. Good 0.761.00

Information concerning: (1%)

Macro/Micor Environment Analysis

Poor 0 - 0.25

Fair 0.26 - 0.50

Mkt. Potential / Demand Trend

Competitor Analysis
SWOT Analysis

Strategy & Implementation: (8%)

Poor 0 - 0.25

Fair 0.26 - 0.50

Fair 0.26 - 0.50

Target Market (Clarity)

Positioning: 1. Positioning 2.
Perceptual Mapping

Product: 1. Strategy i.e. Branding,

Packaging, Line Stretching, Brand
concept, Brand element
Price: 1. Objective, 2. Strategy, 3.
Method

Distribution: 1. Objective, 2.
Distribution Coverage 3. Merchandising
& Display 4. Sales force structure
Advertising: 1.Objectives Budget,
2.Budget, 3.Media Plan

Sales Promotion: 1. Objectives, 2.

Budget, 3. Tools/Tactics

Event/Direct/PR Marketing: 1.
Objectives, 2. Budget, 3.T ools/T actics
Online Marketing 1. Objectives, 2.
Budget, 3. Tools/Tactics

3. Tools/Tactics
Strategy & Implementation: (0.5%)
Table grid of marketing plan

Good 0.51
- 0.75

V. Good 0.761.00

Poor 0 - 0.25

Fair 0.26 - 0.50

Financial Plan: Projected Income Statement

Others: 1. Story Board, 2. Brochure/leaflet,
3. Mock packaging/product, 4.
Graphs/Tables etc.

Table of contents
Executive Summary

1-3

Company Analysis

4-9

Situation Analysis

10 - 30

Marketing Strategy

30 - 41

Financial Projections

42

Implementation Controls

43 - 44

Conclusion and Key success

44

Appendices

45 - 61

1. Executive Summary
Royal Philips is a diversified health and well-being company, focused on improving people's
lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting.
With main focus on meaningful innovation, they serve professional and consumer markets through
three overlapping sectors: Healthcare, Lighting and Consumer Lifestyle. They have high ability to
adapt in local market condition due to their strategy, they using decentralize strategy so when they
have to make decision they will consider from local strategy and adapt using in the local area. As
following a project, we focus on electric shaver of Philip. The mission of Philip electric shaver is to
provide the convenience and smooth to customer in everyday shaving and vision is to help you to
look and feel amazing to get more out of every day.
For growth strategy in electrics shaver, Thai genders have female more than male so it
may assume that electric shavers may have slowly sale in the market; accordingly, male
consumers. Potential of buyers is low but the market share of Philips electric shaver is high. As we
know, these products can develop further in different appearance, functions, gadgets and etc. even
though, economy and political in Thailand is not good so it may affect sale growth of Philips
electric shavers thus make company has to layoff or reduce some costs to maintain business.
Therefore, cash cows is suitable to apply for this situation because there are some lose as sick
cow for a moment but it will be stronger if business can maintain and control the situation in a
better way. The target market of Philip electrics shaver is male with age between 25-35 year old. In
the electric shaver market, market share 2015, Philips is the well-known brand with highest market
share accounted for 53% and followed by Braun 31% and Panasonic 11 %. Whereas only 5 % is
belong to others electric shaver. From market share, it implies that Philips is still the most popular
brand that people think of and feel reliable with having strong innovation and being famous in
many electric appliances with reasonable price.
Therefore we use questionnaire to make a research from customer. We distributed 100
questionnaires to men who have age 25 - 35 years old with being 70 of primary target market and
30 of secondary group. We divided the question into 5 main parts that are General Consumption,
Buying Behavior, Perception of Philips, Customer Awareness, 4Ps question and also personal
information. After we analyzed the data from the questionnaires, we consider about general
consumption firstly and we found that most of people have used Braun electric shaver brand with
dry method. Less than 20 years old is the age that people start to use the electric shaver. A
majority of people prefer to use it in the bathroom than other places and use during taking a
shower. Around 62 % out of all people frequently use the electric shaver 2 - 3 times a week. The
greatest reasons for people to buy the electric shaver are convenient and followed by being value
for money and having various function. Most of people think that the main advantage of the electric

shaver still is convenience. In contrast, being expensive is its significant disadvantage that people
dont like. In the part of buying behavior, price and promotion are the two main factors that has the
influence on people whether to buy it significantly. A majority of people think that family have a lot
of impact on themselves to make a decision before buying. More the half of people prefer to
choose Philips brand as a top brand with Foil type purchased mostly. Moreover, The reasonable
price for the electric shaver should be 1,000 - 3,000 baht. The first brand choices that most of
people consider before buying the electric shaver is price and the followed by quality and
promotion as the 3nd rank. For the perception of Philips, all people know Philips brand and they
receive more Philips information from broadcast and word of mouth. Reasonable price of the
product is the main characteristic people think of and when they recognize the Philips product,
they always think of electric appliances. Approximately 80 people want to try or purchase Philips
electric shaver in the case they never use it before. In the part of customer awareness, Philips is
the first brands that come in their mind when they think of electric shaver and they are pretty aware
of using the electric shaver by themselves. The first channel they perceive about the electric
shaver is friend and even magazine. More than half of people feel sure to recommend the electric
shaver to their associates and also will continue to use the electric shaver in the future. For 4ps
Question, department store is the popular place that people like to buy the electric shaver with
being price concern significantly and the range suitable price for the electric shaver being 1,000
3,000 baht. Print Ads is the main channel to meet the advertising media. Most of people prefer the
promotion as discount and even use the charging type of the electric shaver.
In Personal information part, around 71% out of all have age 25 35 years old and most of
them are employees. The income approximately 15,001 25,000 baht are what they earn each
month. Almost 90% of people have the education level as Bachelor Degree.
The direct competitive with Philip electrics shaver are Panasonic and Braun and indirect
competitive are Gillette and Bic about razor. According Philip Company, the width of Philips
electric shaver are three product lines such as Senso Touch 3D/2D, Aqua Touch and Classic Dry
Shave. There are 11 items of Philips length and the depth of Philips electric shaver are three
items in Senso Touch 3D/2D, five items in Aqua Touch and three items in Classic Dry Shave The
positioning shows the position criterions between Expensive and Inexpensive and Narrow range of
product and Wide range of products position of the brands. Braun is placed more at expensive
position because it is premium brand with higher price and many products. Whereas Philips is
placed slightly lower than Braun because they sell product with different price and different
products that a majority of people can easily purchase. For Panasonic, they produce various
products with reasonable prices that lower income can easily purchase. So, it placed to be closer
with wide range of product and at lower price. For price objective, Philip aim to be the productquality leader in the market. Philip makes its customer perceive that Philip is high quality brand

that provide the high quality of product. For the pricing tactic of Philip, we think that the most
suitable strategy for Philip is Perceived-value pricing because Philip focus on the quality of
product and this strategy aim to deliver more value of product to customer. It can make customer
trust in Philips product and willing to buy even though the price are high. For the adapting the
price, We think that Philip should use Seasonal discount for adapting price because from our
research, we found that almost 100 percent of our respondent want discount promotion from
Philip. The purposes of discount are clear the old stock or increase short-term sale. For clearing
the old stock, if people plan to launch the new generation of product, Philip can give discount to
the old generation in order to clear the old stock before launching the new product. For us, we will
give discount for some special event such as New Year day, Father day, Mother day. We will not
discount for every type of product but we will give discount only old generation product or product
that is not popular for customer to clear the stock in the same time.
For distribution channel, we think that Philip should using Selective distribution to launch
their product. Selective distribution is the strategy that choosing some selected area to launch
product, product can be shopping goods as electric shaver.
For marketing communication channels, we will use both personal and non-personal
channels. The reason to choose non-personal channel is the basic channels that every companies
use to communicate with target customer effectively including TV advertising, magazine and social
media. Although, we are suggesting use media in order to communicate with customer by using
event marketing, sponsorship and public service activities. Moreover, we recommend to use sales
promotion such as trade-in, coupons, sweepstakes and premium.

2. Company Analysis
2.1 Company background and its competencies
Company profile
Royal Philips is a diversified health and well-being company, focused on improving people's
lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting.
Headquartered in the Netherlands, Philips posted 2014 sales of EUR 21.4 billion and employs
approximately 108,000 employees with sales and services in more than 100 countries.
The company is a leader in cardiac care, acute care and home healthcare, energy efficient
lighting solutions and new lighting applications, as well as male shaving and grooming and oral
healthcare.
With main focus on meaningful innovation, they serve professional and consumer markets
through three overlapping sectors: Healthcare, Lighting and Consumer Lifestyle. Throughout their
portfolio, they demonstrate our innovation capacity by translating customer insights into meaningful
technology and applications that improve the quality of peoples lives.
Philips Thailand

Healthcare

As a global leader in health care, they are guided by the understanding that there is a patient
at the center of everything they do. By pioneering new solutions that improve and expand care
around the world, they are dedicated to creating the ideal experience for all patients, young and
old.
They harness the power of clinical information by providing clinicians and health care providers
with real-time information all in one place across modalities, time zones and technologies for
more confident decision-making and efficient workflow.
They focus on delivering the most technologically advanced products and solutions, as they help
clinicians diagnose, treat and manage many of todays most prevalent diseases.
They expand access to care by promoting the adoption of new mobile and remote technologies
and developing new protocols that can lead to more efficient and productive health care systems.
These commitments are the driving force behind our research and investment in promising new
approaches to radiology, cardiology, oncology, decision support, home health, respiratory and
other critical areas.

Healthcare business is organized around four strategic business groups: Imaging Systems, Patient
Care & Clinical Informatics, Home Healthcare Solutions, and Healthcare Transformation Services.

Lighting

Philips Lighting is a global market leader with recognized expertise in the development,
manufacturing and application of innovative lighting solutions. They have pioneered many of the
key breakthroughs in lighting over the past 123 years, laying the basis for their current strength
and ensuring we are well-placed to be a leader in the digital transformation. They aim to further
strengthen their position in the digital market through added investment in LED leadership while at
the same time capitalizing on their broad portfolio, distribution and brand in conventional lighting.
They address peoples lighting needs across a full range of market segments. Indoors, they
offer lighting solutions for homes, shops, offices, schools, hotels, factories and hospitals. Outdoors,
they offer solutions for roads (street lighting and car lights) and for public spaces, residential areas
and sports arenas. In addition, they address the desire for light-inspired experiences through
architectural projects. Finally, they offer specific applications of lighting in specialized areas, such
as horticulture and water purification.
Philips Lighting spans the entire lighting value chain from light sources, luminaires,
electronics and controls to full applications and solutions through the following businesses: Light
Sources & Electronics, Consumer Luminaires, Professional Lighting Solutions, Automotive
Lighting, and Lumileds.

Consumer Lifestyle

At Consumer Lifestyle we are delivering on Philips vision to make the world healthier and more
sustainable through innovation. Our investment in innovation and local business creation enables
us to deliver a stream of locally relevant, meaningful innovations. They have a leading global
brand, which is highly trusted across the world.
Philips Consumer Lifestyle focuses on delivering deeper experiences, in touch with the social and
emotional needs of our customers in their homes, tailoring solutions to variable local needs around
the world. From a cup of coffee in the morning, to a healthy meal in the evening. And whether its
using the best sonic technology to care for your teeth or an innovative laser guided beard trimmer;
Philips innovation matters to their users and improves their lives every day.

They focus on the following areas of business: Health & Wellness, Personal Care, and Domestic
Appliances.
Core competencies
Philips1 is the biggest company in the home healthcare business and being market leader in
many business such as television, light bulb, electric shaver,etc. They try to follow the customer
trend what they want or need and then they try to produce new products.
They are very innovative in term of technology and design. So, they have produced many
different types of electronic with different price that customers can easily afford and also they have
many patents and get a lot of rewards such as the best invention of the year reward.
They also concern about sustainability. They try to develop many technology that concern
about the environment and even support and expertise communities worldwide.
They try to create brand awareness for customers by using integrated marketing
communication. For instance, doing public relation when they launched or want to promote their
product such as Philips Love Earth Days (LED) that they built Magic Philips Tree by using a lot of
LED bulbs. So, customers can clearly see the efficiency of their bulbs. Therefore, they can feel
confident with Philips products.2
They have high ability to adapt in local market condition due to their strategy, they using
decentralize strategy so when they have to make decision they will consider from local strategy
and adapt using in the local area.

Philips Company ,retrieved Aug 29 2015 :

http://www.philips.co.th/about/company/companyprofile.page
2

Campaign of Philip, retrieved Aug 29 2015 : http://mcot-web.mcot.net/fm965/site/conte

nt/id/5199f336150ba0e33e000185#.VeHLz2Aobww

2.2 vision and mission

Mission & vision of Philip Company

Mission

Improving peoples lives through meaningful innovation.

Vision

At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal
is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for
people who share our passion. Together we will deliver superior value for our customers and
shareholders.
Mission & vision of Philip electric shaver
Vision
To help you to look and feel amazing to get more out of everyday
Mission
To provide the convenience and smooth to customer in everyday shaving

2.3 Strategic plan and focus

Intensive Growth Strategy

For Thai grooming products, there are many brands and models in the market. First of all,

Aquatouch models are the one of Philips electric shavers.3 Furthermore, these product models
have developed to satisfy customer needs and rather than customer expected. However, Thai
genders have female more than male so it may assume that electric shavers may have slowly sale
in the market; accordingly, male consumers. Potential of buyers is low but the market share of
Philips electric shaver is high. As we know, these products can develop further in different
appearance, functions, gadgets and etc. even though, economy and political in Thailand is not
good so it may affect sale growth of Philips electric shavers thus make company has to layoff or
reduce some costs to maintain business. Therefore, market-penetration and product development
are suitable to apply for this situation to stimulate the sale with promoting more on current product
and producing new products.

Philip electric shaver : http://www.siamfuture.com/retail.php?id=225&sub=273

2.4 Product Details

Series Shaver

Norelco Shaver 9700 4 is a Wet & Dry electric shaver, Series 9000.The Price is
21,990 BAHT. It includes V-Track Precision Blades, Contour Detect Technology,
SmartClean System PRO and Digital User Interface.

Norelco Shaver 9700 is a Wet & Dry electric shaver, Series 9000. The Price is
16,990 BAHT. It includes V-Track Precision Blades ,Contour Detect
Technology and SmartClean System PRO.

Norelco Shaver 73005 is a Wet & Dry electric shaver, Series 7000.
The Price 11,990 BAHT. It includes DualPrecision and GyroFlex2D, 50 min
cordless use/1h charge and SmartClick beard styler.

Travel Shavers

Norelco Shaver 510 Travel shaver, Series 5006

The Price is 890 BAHT. It includes CloseCut heads, Flex & Float system, 2
AA batteries and Travel case

http://www.usa.philips.com/c-m-pe/face-shavers/seriesshavers/latest#filters=SERIES_SHAVERS_SU&sliders=&support=&price=&price
Boxes=&page=&layout=12.subcategory.p-grid-icon
5
http://www.philips.co.th/c-m-pe/face-shavers/seriesshavers/latest#filters=SERIES_SHAVERS_SU%2CTRAVEL_SHAVERS_SU
%2CAQUATOUCH_SHAVERS_SU
%2CBASIC_SHAVERS_SU&sliders=&support=&price=&priceBoxes=&page=&la
yout=12.subcategory.p-grid-icon
6
http://www.usa.philips.com/c-m-pe/face-shavers/seriesshavers/latest#filters=TRAVEL_SHAVERS_SU&sliders=&support=&price=&pric
eBoxes=&page=&layout=12.subcategory.p-grid-icon

Aqua Touch
Series 40007 is Aqua Tec Wet & Dry that can protects skin, even on the neck.
The Price is 2,590 BAHT. The whole spending time is 50 min
shaving with 1 hour charge. There is Dual Precision
heads and Pivot, Flex & Float system.

AquaTouch AT600/158 is a Wet & Dry

The Price is 1,790 BAHT. It has a closecut shaving head

Rechargeable convenient to carry Electric shaver

Electric shaver PQ217/189

The Price is 1,290 BAHT. It is rechargeable and convenient
to carry.

3. Situation Analysis
3.1 Market Analysis
7

http://www.usa.philips.com/c-p/AT830_41/norelco-powertouch-wet-dry-electric-shaverseries-4000-with-aquatec-wet-or-dry-shaving
8
http://www.philips.co.in/c-p/AT600_15/aquatouch-electric-shaver-wet-dry-withaquatec-wet-dry
9
http://www.philips.com.my/c-m-pe/face-shavers/basicshavers/latest#filters=BASIC_SHAVERS_SU&sliders=&support=&price=&priceB
oxes=&page=&layout=12.subcategory.p-grid-icon

3.1.1 Market Potential and Gap

Due to the target market of Philips AquaTouch Products is male with age between 25-35,
the number of market potential can be calculated by multiplication of percentage of target market
in Thailand and total population which approximate to 7.1% * 68,253,677 or 4,846,011 men. Then,
the target people will buy the products at the average price of 3,040 Baht. The potential market will
be around 14,700 million Baht. Also, it gap will be between 8,600 - 20,000 million Baht.
3.1.2 Market (Industry) Size/Market Segment/ Growth
The expected total industry sale of electric shaving in 2015 would be 280 million baht.
The expansion of the global electric shaver and hair care equipment industry is forecast to
reach 2.6% per year. And between 2007 and 2013 the market increased with an average annual
growth of 6.7%.
For currently, electric shavers account for 24.4% of the global demand while the remaining
market share is divided between electric hair dryers (18.8%), other electro-thermic hairdressing
equipment (24.7%), electric hair clippers (15.7%), electric hair-removing appliances (6.2%) and
parts for electric shavers and hair care equipment (10.1%).
3.1.3 Market Share
In the electric shaver market, market share 2015 10, Philips is the well-known brand with
highest market share accounted for 53% and followed by Braun 31% and Panasonic 11 %.
Whereas only 5 % is belong to others electric shaver. From these market share, it implies that
Philips is still the most popular brand that people think of and feel reliable with having strong
innovation and being famous in many electric appliances with reasonable price. In the part of
Braun, people might perceive Braun as more premium brand with higher price and unique design
that is similar with Panasonic that people perceive they are good in the electric appliances with
higher quality and price.

10

The additional information of electric shaver Market Share from Marketing

Management course.

3.1.4 Market Trends, Needs and Environment Analysis

To analyze overall electric shaver market, we apply PESTEL analysis that is a tool uses to
analyze and show factors that may have an impact on a business in Thailand. Moreover, this
analysis can lead us to find out useful information about opportunities and threats of the business
industry.

Political
For the political in Thailand, it is growing instability 11. The reason that army seized power of

Prime Minister Yingluck government because it should be reduce corruption and conflict in country
for a long time. Thailands Constitutional Court and the military junta was ordered to decline the
problems since August 2014. In addition, trade between the countries might be slow down
because the reliability is declining; thus, it will lead foreigner and trader change to invest and trade
in other countries.

11

http://www.cfr.org/global/global-conflict-tracker/p32137#!/?marker=31

Economic

For the economy in Thailand, the bar graph has showed Thailand GDP chart12. In Q3, GDP
has expanded 2.9% more than the same period last year. The figure marked a slight acceleration
over the 2.8% increase seen in the second quarter. Q3s expansion reflected an improvement in
external demand, while the domestic sector deteriorated over the previous quarter.
In the third quarter, private consumption grew 1.7% over the same quarter last year, which
was an improvement over the 1.6% increase seen in the second quarter. Conversely, fixed
investment swung from a 2.7% expansion in the second quarter to a 1.2% contraction in the third
quarter. In addition, government consumption expanded 1.0% in the third quarter, which was a
slowdown over the 3.8% rise seen in the previous quarter and the slowest increase in a year.
On the external side of the economy, exports of goods and services rose 1.8% in Q3, which
was up from the 1.0% increase seen in Q2. However, imports of goods and services deteriorated
from a 0.4% drop in Q2 to a 2.4% decrease in Q3. The external sectors net contribution to overall
economic growth improved from 1.0 percentage points in Q2 to 3.2 percentage points in Q3.
On a quarter-on-quarter basis, GDP expanded 1.0% in seasonally adjusted terms in Q3, which
was an improvement over the 0.4% increase seen in the second quarter.
The Focus Economics panel forecasts the economy to grow 2.6% in 2015, which is unchanged
from last months estimate. For 2016, the panel projects the economy to expand 3.3%, which is
also unchanged from last months estimate.

12

http://www.focus-economics.com/countries/thailand/news/gdp/economyaccelerates-in-q3

Social
The percentage of mens grooming slowed slightly in current value growth in 2014 13, but

performance was remained satisfactory. Furthermore, Manufacturers continued in research and

development in order to innovate more sophisticated mens grooming products to respond and
increase image of consciousness. Even though, they were also investing heavily in marketing
campaigns to raise mens brand awareness of the importance by having their own grooming
products instead of sharing their partner also. Actually, mens grooming products are expected to
gain positive constant value growth over the forecast. High penetration of mens shaving will see it
slowing in performance, though male consumers are likely to trade up to advanced shavers for the
better effect.

Technological
In the past, men have chosen to use generic unisex brands but at the present it might be

changed. These days, men prefer to use the product from many brands, which are customized
appropriate and satisfy what men want. A part from that, this change has transformed the entire
beauty and personal care industry 14by leading consumer products which company has ventured to
capture male target customers. Moreover, customers are no longer restricted to manual grooming
products and have begun experimenting with electric shavers, trimmers, and other electric
grooming equipment. Additionally, some men were tried products to emulate the style of their
favorite celebrities, while others select them for attributes such as good design, ergonomics, and
comfort.

13

Environmental

http://www.euromonitor.com/mens-grooming-in-thailand/report
http://www.reportlinker.com/p03170222-summary/Global-Male-GroomingProducts-Market.html
14

Business has to consider the effects of manufacturing on the environment15.

On the other hand, it is not only manufacturing processes that can alter our environment, such as
pollution in kinds of fumes and noise, but there are vary considerations point of view. When the
manufacturer is set up there will inevitably be more lorries transporting raw materials and the
finished product to and from the factory. A part from that, this can cause congestion in our towns
and cities. It is very important for all of us that industry takes care of the environment. By the way,
manufacturer must consider a variety of measures, to reduce the adverse environmental effects
that products you design and manufacturer, may cause. Moreover, global warming is significantly
point; according to materials, part of electric shaver has to used plastics as an implement.
Furthermore, the electric shaver has battery, which may impact the environment; therefore, some
people who has concerned about green world 16 may lead them to be think over in their buying
considerations.

Legal
ISO9001 is the standard that provides quality management systems in the organization.

When the company produce the products under ISO9001, it will the company to have wellprepared on management, production and service systems and it also create a good image of
company and can satisfy the customers with the good quality of products because we can produce
the product with the safety that can ensure the customers on our products. Furthermore, Thailand
Product Liability Act 17has set laws and regulations in order to command and limits on the rights.
The Act is providing based on the recommendations and acceptances as must followed because
there are many products have risen damage and not safe. Including the import and export, which
may affect the organization operating and managing.

3.1.5 Five Force Analysis

15
16
17

http://www.technologystudent.com/designpro/envir1.htm
http://www.greenworld.co.th
http://www.thailawforum.com/thailand-product-liability-act/

A framework that attempts to analyze the level of competition within an industry and
business strategy development. As following:
Threat of new entrants
Its hard for new entrant that they would like to entre in electric shaver industry because
they have to know well about feature and function of product. Moreover a new comer has to create
a new innovation to win other competitors that come before them. Therefore, there is highest
threat of new entrants.
Threat of substitute product
Absolutely that there is low threat of substitute product for electric shaver industry. Before
electric shaver was born, most of men use razor to shaver their mustache and nowadays some
men still use razor because of cheaper than electric shaver. However there is a highest opportunity
that people will swift from electric shaver to razor when lack of electric shaver or not ready to buy.
Bargaining power of supplier
There are few suppliers in electric shaver industry. So supplier has more power to
negotiation with buyer. For example supplier will set a highest price for some part that has a few
suppliers selling or hard to find a spares. Therefore, buyer still needs to buy a spares in high price.
Bargaining power of buyer
Nowadays there are many competitor of electric shaver and different level of product. So
customers have more power to compare a product and select the best choice of them. For
example, customer can compare Philip and Braun before they buy it.
Intensity of competitive rivalry
Both threat of new entrants, threat of substitutes product, power of supplier and power of
customer will be effect for competition. Therefore all competitors have to cope with intenseness of
other contender. For example competitors have to improve the product or try to create a new
innovation and not easy to copy that they can win other competitor.

3.1.6 Consumer Insight

To know and understand more about how people perceive about using electric shaver, so, we
conduct the survey that are In-depth interview and questionnaire.
In-depth Interview
In-depth Interview Question
Part I : General Consumption
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Do you know electric shaver?

Have you ever use electric shaver before? (IF Yes, skip to Q4)
Do you want to try using electric shaver? Why ?
What is the factor influence you to buy electric shaver?
How often you use electric shaver?
When you start using electric shaver?
Which brands of electric shaver has you ever used?
Which brands of electric are you currently use?
How long have you been using this brand?
Do you have plans to change the brands of electric shaver in the future?
In your opinion, what are the difference between razor and electric shaver?

12. Do you have any problem when using electric shaver? If yes, what are the problems?
13. Are you willing to use electric shaver in the future? Why?
Part II : Buying behavior
1. Who is your influencer to buy electric shaver?
2.

How often do you buy electric shaver?

3. Do you normally plan to buy or make decision at the point of purchase? Why?
4. Which types of electric shaver do you buy? (Foil or rotary) Why?
Part III: Customer Awareness
1. How many brands of electric shaver do you aware of? What are they?
2. Which brand of electric shaver that comes first in your mind?
3. What is your most favorite electric shaver brand? Why?
4. What are the key factors that make you choose this brand?
5. When you think about Philip, what is the first thing come first in your mind?
Part IV: 4Ps Question

1. How much do you pay for an electric shaver?

2. In your opinion, what is an appropriate price for electric shaver?
3. Where do you usually buy electric shaver? Why?
4. Which promotion is impulse you to buy/try the product?
5. Which media that you see Philips advertising?
6. Do you want to recommend to others to use electric shaver ? why?
Summary of In-depth Interview

Part I : General Consumption

After conducting interview with 10 respondents, we found that most of respondents know

and have used electric shaver before but some of them still use razor. They decide to use electric
shave because they think its easy to use, more convenient and safer. They start to use electric
shaver when they are around 15 21 years old. Most of them use it everyday and some use once
or twice a week. For the most popular brands that they know and use are Panasonic and Philips
and they use for several years without changing. If they want to buy a new one, some want to try
the new brand. In their opinion, the difference between razor and electric shaver are razor is better
to shave because it can clearly cut and cheaper. However, electric shaver is safe, easy to use, and
endure in the long term. Some of them face with the problem of using electric shaver such as
battery is dead. For the respondents who are using electric shaver ,they still want to keep using it
in the future. At the same time, the respondents who use razor they want to try the electric shaver,
even though, they prefer to use razor because they want to know how good the electric shavers
are in shaving when comparing with razor.

Part II : Buying behavior

The most influencer on them to buy electric shaver is friend because before they had used

it, their friends told them about their using electric shaver and recommended them to use as well.
All of them just bought at once and use it for several years until the electric shaver cant be used
anymore. When they want to buy, most of them dont want to make a decision at point ofpurchase because they actually found out the information from the Internet and asked from their
friends to make sure that that brand is good to buy. Moreover, most of them prefer to buy Rotary
type of electric shaver because they think its safer and doesnt hurt them.

Part III: Customer Awareness

The electric shaver brands that most of them are aware of are Philips and Panasonic. And
for the brands that come first in their minds when they think of electric shaver are the brand that
they currently use such as Philips and Panasonic. There are two most favorite electric shaver
brands for them are Philips and Panasonic because both are well-known brand and they believe in
their quality and reliability of their products. Price and quality are the main factors for them to
choose the electric shaver brands because some of them are price sensitivity. Therefore, they
always look at the price first and compare with the quality that whether the product is value for
money. When they think of Philips, most of them think of light bulb and electric product firstly
because Philips has produced many products and promoted a lot through advertising.

Part IV: 4Ps Question

The range of electric shaver price that they paid for are approximately 800 2,000 baht.

They think differently for the appropriate price of electric shaver. Some of them think the price it
should be high with approximately 2,000 4,000 baht because they think the products that have
good quality should have the suitable price. At the same time, some they think the price is should
be low with 600 1,500 baht because they think all men have to shave. Therefore, the electric
shaver should sell in the medium to low price that all men can easily to afford. They normally
bought electric shaver at department store because they think theyre more convenient and safer
which they can see the real product and also see different brands with having guarantee of the
brand quality. So, It can help them a lot in making a decision. When they want to buy electric
shaver, they think that the promotion that is impulse them to buy the product are discount and
special offer .For instance, providing more time to guarantee of product. All of them know and see
Philips advertising through television and Internet. All of them want to recommend to other in using
electric shaver because they think it can save time, being easy to use and save cost in the long
term for their friends.

Questionnaire

Questionnaire Form

The questionnaire about Philips electric shaver

We are students of the Assumption University and we are taking the course "Marketing
Management", MKT4730.This questionnaire was developed under the objective of education only
and all information will be kept it as high confidentiality.

Please answer the following question by using mark "" in the space provided below and do kindly
answer truthfully.
Part I : General Consumption
1. What brands of product you have used?
Philips

Panasonic

Braun

Other

2. What kinds of method do you shave with electric shaver?

Wet method

Dry method

3. How old you start to use the product?

Less than 20 years old

20 25 years old

26 35 years old

More than 35 years old

4. Where do you shave?

In the bathroom

In the bedroom

In the living room

Other
5. When do you use electric shaver?
During taking a shower

Before going to bed

After waking up

Other
6. How often you use electric shaver?
Once a week

Two or three days a week

Everyday

7. What is the main reason for you to buy electric shaver?

Other

Convenient and easy to use

various functions

Value for money

safety

Other.

8. In your opinion, what is the main advantage of electric shaver?

No injuries

Convenience

Less time needed

Safety

Economy

Other.

9.In your opinion, what is the main disadvantage of electric shaver?

Expensive

Need maintenance

Hurts- Pull hair out

Not such a close and clean shave

Other.

Part II : Buying behavior

5. What factors which influence you to buy the product?
Price
Promotion
Quality
Others
6. Who have impact on you to make a decision to buy the product?
Myself

Family

Celebrities

Friends

Others..

Reviewer/Blogger

7. What brand of product do you prefer to buy the most?

Philips

Panasonic

Braun

Others.

8. What is the range of price you think is appropriate to buy?

Less than 1,000 Baht

1,000 Baht 3,000 Baht

3,001 Baht 5,000 Baht

More than 5,000 Baht

5. What kinds of electric shaver you buy?

Foil

Rotary

6. What brand choices that you consider before buying electric shaver?
(Please rank 1 - 3 which 1 is the most consideration and 3 is the less consideration)
__ Quality

__ Price

__Promotion

Part III : Perception of Philips

__Package

__ Advertisement

1. Do you know Philips electric shaver?

Yes

No

2. Which channel that you receive the information about Philips?

Word of mouth

Broadcast

Out of home

Internet

Print advertisement
Other..

3. What is the main characteristic of Philips electric shaver?

Good Quality

Reasonable price

Easy to buy

Other.
4. What do come first on your mind when you think of Philips ?
Electric appliances

Home furniture

Nothing

Other

5. If you never use Philips electric shaver before. Do you want to try or purchase Philips electric
shaver? And why?
Yes

Because..

No

Because..

Part IV: Customer Awareness

1. What is the name of electric shaver brands that come first on your mind?
Philips

Panasonic

Braun

Other.

2. Who is the first person to make you to be aware of using electric shaver?
Myself

Family

Celebrities

Friends

Others.

Reviewer/Blogger

3. How did you first hear about electric shaver?

TV

Radio

Magazine

Friend

Internet

Other
4. Would you recommend the electric shaver to your friends or associate?
Sure

Probably

Not sure

No

5. Do you continue to use electric shaver in the future?

Yes

Not sure

No

Part V : 4Ps Question

1. Where do you buy electric shaver?
Department store
Convenient store

Official Website
Social Media

Others..

2. Does the price have influence on you to purchase the product?

Yes

No

3. How much that you buy electric shaver per time?

Less than 1,000 Baht

1,000 Baht 3,000 Baht

3,001 Baht 5,000 Baht

More than 5,000 Baht

4. Which channel that you meet the advertising media?

TV/ Radio
Internet

Print Advertisement

Out of Home

Other.

5. Which promotion you are interested in buying electric shaver?

Discount

Premium on Pack

Free product offering

Other
6. What types of electric shaver you use?
By battery

By charging

Personal Information
1. Age
18 year old
36 -50 year old

19 - 24 year old
51-60 year old

25-35 year old

60 year old

2. Occupation
Student

Employee

Business Owner

Other

3. Income/month
Less than 5,000 Baht

5,000-15,000 Baht

15,001-25,000 Baht

25,000 above
4. Education
High School

Bachelor degree

Master degree

Other..

Questionnaire Research Result

We distributed 100 questionnaires to men who have age 25 - 35 years old with being 70 of
primary target market and 30 of secondary group. We divided the question into 5 main parts that
are General Consumption, Buying Behavior, Perception of Philips , Customer Awareness, 4Ps
question and also personal information. After we analyzed the data from the questionnaires, we
consider about general consumption firstly and we found that most of people have used Braun
electric shaver brand with dry method. Less than 20 years old is the age that people start to use
the electric shaver. A majority of people prefer to use it in the bathroom than other places and use
during taking a shower. Around 62 % out of all people frequently use the electric shaver 2 - 3 times
a week. The greatest reason for people to buy the electric shaver are convenient and followed by
being value for money and having various function. Most of people think that the main advantage
of the electric shaver still is convenience. In contrast, being expensive is its significant
disadvantage that people dont like. In the part of buying behaviour, price and promotion are the
two main factors that have the influence on people whether to buy it significantly. A majority of
people thinks that family have a lot of impact on themselves to make a decision before buying.
More the half of people prefer to choose Philips brand as a top brand with Foil type purchased
mostly. Moreover, The reasonable price for the electric shaver should be 1,000 - 3,000 baht. The
first brand choices that most of people consider before buying the electric shaver is price and the
followed by quality and promotion as the 3nd rank. For the perception of Philips, all people know
Philips brand and they receive more Philips information from broadcast and word of mouth.
Reasonable price of the product is the main characteristic people think of and when they recognize
the Philips product, they always think of electric appliances. Approximately 80 people want to try or
purchase Philips electric shaver in the case they never use it before. In the part of customer
awareness, Philips is the first brand that come in their mind when they think of electric shaver and
they are pretty aware of using the electric shaver by themselves. The first channel they perceive
about the electric shaver is friend and even magazine. More than half of people feel sure to
recommend the electric shaver to their associates and also will continue to use the electric shaver

in the future. For 4ps Question, department store is the popular place that people like to buy the
electric shaver with being price concern significantly and the range suitable price for the electric
shaver being 1,000 3,000 baht. Print Ads is the main channel to meet the advertising media.
Most of people prefer the promotion as discount and even use the charging type of the electric
shaver.
In Personal information part, around 71% out of all have age 25 35 years old and most of
them are employees. The income approximately 15,001 25,000 baht are what they earn each
month. Almost 90% of people have the education level as Bachelor Degree.

3.2 Competition Analysis

Direct Competitor
Philips has direct competitor in electric shaver market as Braun and Panasonic.
Direct Competitive Brand #1 : Panasonic
Panasonic Corporation has produced a various types of electric shaver that it seems to be
theyre trying to target low to high income with different price of each products. Currently, they
have 12 types of electric shavers. The price of Panasonic electric shaver has range approximately
270 12,000 baht18 and the product sold through only department store and some convenient
stores that customers can easily buy. Their Services offered19 are warranty and after sale service
that customer can easily to contact. In addition, the strength of Panasonic electric shavers are they
use their unique blades such as 3 blades system and 5 blade- cutting system20 and also they set
the price rather lower than others competitors in some versions and have more distribution
channel to sell their product. In the part of their weakness, they have less promotion and
advertising.

Price of Panasonic : http://www.priceza.com/s//

18

panasonic
19
Panasonic electric shaver : http://www.panasonic.com/th/support/healthbeauty.html
20
Panasonic electric shaver : http://www.panasonic.com/th/consumer/healthand-beauty/mens-grooming/shaver/es-lv54-k751.html

Direct Competitive Brand #2 : Braun

Braun is also another direct competitor brand against Philips that they have produced 8
versions of electric shaver and also they produce a special version of product such as Braun
mobileShave shavers, Braun smallest electric shaver. They set the price for middle to high income
that the range price is around 1,000 20,000 baht 21. They sell products through department store
and also online. They offer the promotion to customers. For example, the perfect gift promotion for
him22 to attract women who want to find some special gift for her man. Moreover, Braun offer
services to customers such as replacement parts search, FQ&A service, etc. For their strength,
because of Braun is a premium German brand23, a majority of customers perceive it is reliable
brand and also they have produced the electric shaver with their own uniqueness and high
innovation, therefore, a large number of people perceive Braun electric shaver as premium brand.
In the part of weakness, they have less advertising and they set high price of products, so, some
low income people might switch to buy others brands with having lower cost.

21
22

Braun price : http://www.yopi.co.th/thema/ ae -braun.html

Braun promotion : http://www.braun.com/global/promotions/find-the-rightgift.html

23
Designed to make a difference,Braun, : http://www.braun.com/global/worldof-braun.html

After we analyzed direct competitors, we found that both of these brands produce the
electric shaver with their own uniqueness but they are different in term of pricing that one aims to
target more on high income level whereas another also target lower income. We suggest Philips to
target at lower income as well that they might lower price slightly but be higher than Panasonic to
keep their brand position and create more advertising and promotion.
Indirect Competitor
Indirect Competitive Brands #1 Gillette
Gillette opened by one man, King C. Gillette in 1900. The slogan of Gillette is The best a
man can get. The company has three products line such as razor and blades, pre- and postshave, deodorants and body washes but Thailand sale only two product lines such as razor and
blades, pre- and post- shave. Gillette is more popularity in Thailand and the first brand that come
on customer mind about razor industry. The company has factors both strength and weakness. For
strength point, Gillette is leader market in Thailand about razor and blade. They have pre- and
post- shave product to support customer when they shaving such as shaving foam. Moreover they
have variety of product and price to serve with customer. Gillette tried to improve the product every
five years. For weakness point, Gillette has a high price24 with other competitor within razor and
blade industry. Razors have more damage on customers face than electric shaver such as wound
from shaving mustache.

Indirect Competitive Brand #2: BIC

24

Gillete price : http://www.priceza.com/s//Gillette-Mach-3

Bic shaver, market leader of the world has sale volume rather than 10 million units per day.
The company opened sinc1975 until now. The innovation and know-how create single blade to
serve worldwide users. There have many factors in strength. The company has developed blade
with great design to serve customers satisfaction and add some vitamin on blade and also their
price is cheaper approximately 40 200 baht25. Moreover the company has provided variety and
assortment for people. In 2005, Bic has served new users market which female gender by blade
shaver with social. On the other hand, they also have weakness. As we know that blade razor may
create pain on customers face and people who have sensitive skin may affect rash on skin.

3.3 SWOT Analysis

Strength26
25

BIC price : http://www.priceza.com/search?productdataname=BIC%20blades

Being global market leader in electric shavers and high standard in product development.

Producing a shaving range to keep customers interested that to focused on developing

shavers that are designed to suit the places they are sold.

Creating shavers that break away from our competitors in terms of performance and
design.

Having copyright and patents for their products.

Weakness27

Having weaker distribution network than other competitors that they dont sell via online
directly from their own website.

Setting price rather higher than others

Being very little interaction with consumers

Opportunity28

Using Internet to provide more services and promote themselves.

Increasing industrialization of developing countries.

Higher population can lead to higher purchasing and using electricity.

Government regulation.

Threat29

26

Fast changing environment that Philips has to follow the changing continuously.

High competitions in the market.

Philips shavers celebrates producing half a billion electric shavers :

http://www.newscenter.philips.com/main/standard/about/news/press/article15781.wpd
27
Philips slide, Weakness : http://www.slideshare.net/slidingjuna/philips7526051
28
Philips slide, Opportunity : http://www.slideshare.net/slidingjuna/philips7526051
29
Philips slide, Threat : http://www.slideshare.net/slidingjuna/philips-7526051

Economic slow down.

Exchange rate fluctuation.

Price wars with competitors.

3.4 Market Opportunity Analysis

Mentioned from SWOT Analysis, opportunity can be as following :

Using Internet to provide more services and promote themselves.

Increasing industrialization of developing countries

Higher population can lead to higher purchasing and using electricity.

Government regulation.
Philips can capture these opportunity that, to begin with, Philips can promote more via

online and provide services with interaction to customer that they should launch some campaigns
to make customers awareness such as setting some topic and let people to take a photo couple
with their own Philips electric shaver with writing fun short sentence and sending back to company.
Winners in each week can get gift. Also, Philips should create some related advertising and might
post on social media including Facebook and Instagram . Its likely leads to high customer
perception. Currently, there is increasing industrialization of developing countries that Philips might
expand to those countries. They can have opportunities to outsource, finding new potential
partners or even increase sale volume there. Moreover, there is high population that it means
people might have high demand and consumption of using electricity. It can be an opportunity to
Philips to satisfy customers with their new product developments. The Government regulation also
can be an opportunity for Philips. For instance, if government launch a campaign to stimulate
people to concern more on electricity saving and environment , Philips might launch related
campaign or show their unique towards that campaign to stimulate their sales . For example,
Philips has produced Green product30 with their sign or icons to show customers to perceive that
Philips product can increase energy efficiency and be good for environment.

30

Philips Green product :

http://www.philips.com/sites/philipsglobal/about/sustainability/ourenvironmenta
lapproach/greenproducts/index.page

Eco Design icons

4. Marketing Strategy
4.1 Marketing Objective

Maintain and try to increase growth of sale continuously each following year.

Expected sale increase 5 million each year.

Increase market share in each product lines by 5 % each year.

Achieve at lease 90% excellence customer service rating each month.

Reduce average dicstribution cost to less than 5 % of gross revenue.

Improve brand recognition among the 25 35 age group.

Maintain standard and quality of product.

Boader or more attractive related product line.

4.2 Financial Objective

Increase profit margin by 3 % per quarter together with efficiency.

Maintain or try to reduce all budget cost possibly with reducing unnecessary cost.

Achieve a double-digit growth rate for first three years.

Achieve break even for new product within 3 years.

Boost annual return on investment by 5 % per year.

4.3 Target Market

For Philips, we classify the segment from demographic and behavior. Demographic
segmentation includes income, age, status and gender that involved with using and purchasing the
electric shaver. Philips electric shaver sold at different prices31 to attract people with different
income level that they somewhat target to middle income to high income level with having different
versions of product. They target at men for all ages but, actually, focus more on working men and
people who have family with having sons that father can recommend to their sons about using
electric shaver.
For Behavioral segmentation, they produce products based on different behavior of using
electric shaver that can be occasion of using, for example, some people might prefer to use during
taking a shower. Also, they might target to user status such as nonuser, hard user, etc. that Philips
can find ways to attract non-user and also improve their products to suit for hard users that they
might often use during the day. The using frequency that some uses electric shaver everyday while
some uses 2 3 times a week. Moreover, they might emphasize on the means and benefit that
customers want from using electric shaver such as some want an small electric shaver to be easy
to handle or travel electric shaver. Therefore, Philips can produce electric shaver to suit for
customers needs. In addition, Philips might target to loyalty that they might segment them and find
the ways to keep loyal customers and increase the number of customer to become loyal on brand
at the same time.

price of electric shaver : http://www.priceza.com/s// Philips

31

4.4 Positioning

Product Concept
Philips has produced various types of electric shaver that the latest version of electric

shaver is Aqua Touch32. Philips comes with 7 types of Aqua Touch electric shavers. They have
different functions based on their versions such as having hair protection tool, wireless using
45 minutes, etc. However, their main function are they can be used both methods that are wet
and dry method. They have 5 different blades based on their versions consist of Multi
precision, Comfort Cut, Dual precision, Super lift & Cut and Close cut. All of them provide the
same main benefit that is they can cut clearly and gently. They have similar appearances that
all of them have somewhat long handles that is easy to be handled for customer and 3 blades
almost all type except version AT600/15.Philips use black and dark blue as a main color of the
product. All versions of Aqua Touch have the system of using both charging and battery.
Besides, all of them have the guarantee. Philips set the Aqua Touch price approximately start
from 1,700 to 4,900 baht.

32

Philips electric shaver , retrieved from Nov 5 ,2015 :

http://www.philips.co.th/c-m-pe/face-shavers/aquatouchshavers/all#filters=AQUATOUCH_SHAVERS_SU
%2C2015%2C2014%2C2013%2C2012%2C2011%2C2010%2C2009%2C2008%
2C2007%2C2006%2C2005&sliders=&support=&price=&priceBoxes=&page=&
layout=12.subcategory.p-grid-icon

Product Positioning map

The positioning map shows the position criterions between Expensive and Inexpensive and
Narrow range of product and Wide range of products position of the brands. Braun is placed more
at expensive position because it is premium brand with higher price and many products. Whereas
Philips is placed slightly lower than Braun because they sell product with different price and
different products that a majority of people can easily purchase. For Panasonic, they produce
various products with reasonable prices that lower income can easily purchase. So, it placed to be
closer with wide range of product and at lower price.

4.5 Marketing Mix

4.5.1 Product and Services
Product and Branding strategies
The product mix is the set of all products a particular seller offer for sale. According Philip
Company, the width of Philips electric shaver are three product lines such as Senso Touch 3D/2D,
Aqua Touch and Classic Dry Shave. There are 11 items of Philips length and the depth of Philips
electric shaver are three items in Senso Touch 3D/2D, five items in Aqua Touch and three items in
Classic Dry Shave.

(3 Product lines)
Product Mix Width
Senso Touch 3D/2D

Aqua Touch

Classic Dry Shave

RQ 1295

AT 890

PQ 226

RQ 1275

AT 750

PQ 217

RQ 1175

AT 620

PQ 206

AT 610
AT 600

Philips has 2 main current strategies from Line stretching and Line filling. From Line
stretching strategy, its possible that Philips might use Two-Way Stretch. Two-Way Stretch is
companies try to serve different markets including low income to high income. Philips normally has
produced various types of electric shavers and set the different prices to serve all market such as
the range price from 600 - 800 for lower income and 5,000 and above for high income. As a result,
Philips can capture the market share highly. In the part of Line filling strategy, Philips has
lengthened the types of electric shavers such as in Aqua Touch series have many products colors
to satisfy the customers. Therefore, Philips can gain more profit and become the full-line company
that is hard for competitors to overcome. However, Philips might face with self-cannibalization
problem that if Philips launch some new products in the near future, then they might lose probably

some sale volume from some product.

Suggestion for Philips
Philips might produce a new product that have a sharper blade that can cut more clearly with
more safety together. The battery should be more endure without charging frequently. Moreover,
the electric shaver should be lighter to be easy to handle. The electric shavers appearance is also
very important to attract users that it should be modern and easy to take it to wherever.
The electric shaver should be invented to be easily cleaned such as easily taking a part of blade
out to get cleaning. Philips might produce the cleaning product, particularly, for the electric shaver
that it can be the form of liquid or foam to make more hygienic electric shaver. Besides, Philips
should have the cover of a razor or a box for all types of electric shavers that it can create more
safety and cleaner after finishing to use.
Philips might have the customization department to produce products for users order. They might
set price higher that people who want to have their own electric shaver can order in advance and
customize every part of electric shavers such as types of razors, colors, feature ,etc. or even have
some graphic or picture on it. People might order it as a present and Philips might attract more
male who have younger age and start to become teenager.

4.5.2 Pricing
Pricing Objective
Philip is the leader of grooming market. So, Philip gains the highest market share
already, Philip want to maintain the position of leadership in the market by providing the high value
of product to the customer with the reasonable price called Product-Quality Leadership. From
this strategy, Philip aim to be the product-quality leader in the market. Philip makes its customer
perceive that Philip is high quality brand that provide the high quality of product.

Pricing tactic and price adaptation strategy

For the pricing tactic of Philip, we think that the most suitable strategy for Philip is
Perceived-value pricing because Philip focus on the quality of product and this strategy aim to
deliver more value of product to customer. It can make customer trust in Philips product and
willing to buy even though the price are high.
For the adapting the price, We think that Philip should use Seasonal discount for adapting
price because from our research, we found that almost 100 percent of our respondent want

discount promotion from Philip. The purposes of discount are clear the old stock or increase shortterm sale. For clearing the old stock, if people plan to launch the new generation of product, Philip
can give discount to the old generation in order to clear the old stock before launching the new
product. For us, we will give discount for some special event such as New Year day, Father day,
Mother day. We will not discount for every type of product but we will give discount only old
generation product or product that is not popular for customer to clear the stock in the same time.

4.5.3 Distribution
For the objective of distribution channel for Philip, the product of Philip is electronic product
that every household must use in daily life. So, we require the channel that can cover all areas in
the country. Those channels should be reliable channel such as department store.
For distribution channel, we think that Philip should using Selective distribution to
launch their product. Selective distribution is the strategy that choosing some selected area to
launch product, product can be shopping goods as electric shaver. For the example, Philip might
choose some popular department sore as Central, Big C, Tesco Lotus for launching their product.
The advantages of this strategy are gaining more control than intensive distribution and gaining
more coverage. Philip can cover many selected areas when using selective distribution and also
Philip still have power to control each channels. Furthermore, this strategy also saves the
unnecessary cost of choosing wrong channel to launch the product.

4.5.4 Promotion
For marketing communication channels, we will use both personal and non-personal
channels. The reason to choose non-personal channel is the basic channels that every companies
use to communicate with target customer effectively including TV advertising, magazine and social
media. Although, we are suggesting use media in order to communicate with customer by using
event marketing, sponsorship and public service activities. Furthermore, personal channel has
lower costs because verbal communication might be clear and understand easily for customer. For
example, personal selling can face to face with customer to communicate and stimulate their
intension. A part from that, we recommend to use sales promotion such as trade-in, coupons,
sweepstakes and premium.

Advertising
Advertising is a method to reach and create customer awareness easily. We recommend
Philips to use TV advertising, Internet and magazine to promote their new product, Aqua Touch
electric shaver.
Advertising Objective: We apply Informative advertising as advertising objective because we
want to educate people to know about Philips new launched products and also create brand
awareness such as this Aqua Touch can use on dry/wet surface, safety and cleaner with using the
print ads that having Pope Thanawat to be our brand ambassador, which represent the personality
because he looks gentle, warm and clean.

TV Advertising
TV advertising is a good tool to promote for new product because it has all necessary

components to reach the customer because it combines sight, sound and motion that can make
customers easily recognize the product. It also can coverage all areas. Philips might use Flighting
method when doing advertising that they might promote for some period. After they have launched
new product, they should apply this method for first 3 months from Jan Feb and March and
another last 3 moths for Oct, Nov, and Dec. We advertise We decide to keep promote such
technique because we want to appeal to customers to know more new products. We realize that
we might face a problem about high cost that we want to put the ads in the prime time33 (evening
time) and we want to place our advertising on 3 Channel because this channel has highest rating34
than others channels that it cost approximately 450,000 baht per one minute. We want to place at
least 15 seconds with one time a day with costing approximately 10 millions. Although it cost
highly, we believe that it is an effective tool to stimulate the sale volumes. Moreover, we have an
idea to do product placement in some TV program during first three months like TV ads. For
instance, Rueng Lao Chao Nee. Products can be shown and told about their attributes that can
have an opportunity to attract people with the cost of Tie-In35 product being approximately 300,000
baht per once. We aim to do Tie in at lease 12 times in 3 months.
33

TV advertising,retrieved from Nov 19 2015:

http://www.geocities.ws/kanitt_88/lesson3.htm
34
Analog TV article,retrieved from Nov 9 2015 :
http://pantip.com/topic/33259279
35
Tie-in cost : http://www.positioningmag.com/content/-3-1-- --3---1-

 Magazine Advertising
The last media that we recommend to Philip is magazine. Philip should select man magazine,
such as ELLE for Men magazine36, to advertising product because this magazine is fashionable
that shows various brand name. A lot of people in Thailand still buy magazine such as magazine
per week, magazine per month. It benefit to Philip because magazine can provide the color
picture. So, Philip can show their product effectively. Comparing with TV advertising, magazine is a
lot cheaper, also customer can collect magazine and have unlimited looking at Philips product.
Normally, there are not only one person looking at a magazine but one magazine there are a lot of
reader so Philip can make sure that magazine also the one media that provide effective advertising
to the customer. We will advertise on magazine 4 times a year in every 3 months, March, June,
September, and December 2016. That putting ads in the magazine might cost around 6,000
10,000 baht each.
Big Idea of IMC Campaign

36

ELLE for Men : http://www.anywear66.com/2014/05/01/magazine-for-men-inthailand/

We have creating the big idea of IMC Campaign in order to create brand and product
reputation effectively. First of all, we choose well known actor who is very popular in Thailand in
many years Pope Thanawat. He is an actors Channel 3 television. We believed that most of
Thais people know him very well. According to his characteristic, he looks polite, gentle and warm;
therefore, we believed that all from his character can be attract interesting of customers and
change their attitude of customers toward Philips electric shaver surely. Especially, attitude of
customers which represent Philips to be the first perfectly brand of electric shaver in their mind.
Moreover, the tone of IMC that we are using in this campaign is blue, grey and black. The resson
is the color can be represent similar to the brand and product. Blue is clean and freshness,
customers will feel smooth and soft. Grey is vogue and solid, customer will feel durable. Black is
gentleman and tough, it will create Philipss companys trustworthy. Furthermore, we will use jingle
to stimulate their emotional and recognize of that sound. the purpose is they will aware of Philips
when they heard that jingle. From this picture, our communications objective is to make customer
change their behavior from using normal razor to use electric shaver. Moreover, we want to
change the customers attitude toward the electric shaver, which are better and cleaner than using
razor. The message that we would like to communicate with the customer is Smooth shaver with
Philips the product features are multi precision blade system so it gives better results, which are
cleaner, smoother, and also time saving.

Sales Promotion
Sales Promotion is one of marketing activities undertaken to boost sales of Philips electric
shaver. The purpose is aims attract final customer to buy Philips electric shaver.

Trade in
Let customer bring the old blaze to exchange into discount one blaze will receive 10%
discount. In addition, they can get up to 30% discount (3 old blazes). The promotion will
start from 1 January 31 March 2016. The cost of this sales promotion is 400,000 baht.

Coupons
Offer 20% discount coupon in magazine. For example, men heath or magazine about men
publishes the magazine with coupon for 6 times (6 issues or 3 months) The promotion will
start from 1 October- 31 December 2016. The cost of this sales promotion is 700,000 baht.

Sweepstake
Allow customer sends text message (SMS) after they purchase the Philips electric shaver
valued over 1500 baht. The code will be on the receipt, the customer has chance to win
iPhone 6s 64 GB Pink Gold color for 20 units. The promotion will start on June 2016. After

2 weeks, announce winners on Thairath newspaper on 20 June 2016. The cost of this
sales promotion is 500,000 baht.

Premium
Give out when customer purchase more than 1,000 baht. The campaign will start on last 6
months of year, 1July 31 December 2016. The cost of this sales promotion is 200,000
baht
We are presenting some of sales promotion, which can help the company increase sales

and attract more attention from customer. A part from that, sales promotion might attract new
customer or switching customer from other brands. As a consequence, these promotional tools
that occurs almost every months of the year, it will help stimulate the sale of Philips electric shaver.

Public Relation
Public/Event
As following the term project of Philips electric shaver, we would like to promote electric
shaver via events, sponsorships and public service activities. This method can help the company
to create brand awareness and build a good relationship.

Events
Therefore, we will set the event by competition that finding the handsome boy to be

a new presenter of Philips electric. It benefit of company are make awareness and build a good
relationship with customer. We will establish the event at Paragon hall and set three parts for this
event: 1.Philips staff introduce about Aqua Touch electric shaver to audience 2.Competition to find
a new presenter 3.Mini concert from The Parkinson. The media plan (Event) is from January to
February 2016 and cost is around 400,000 Baht

Sponsorships
Hence we will make financial support events for football games for students both in

school and university. For example, Au sport day for the university and Jatulamid that combine 4
schools in Bangkok. Moreover we will set a small booth to give information about electric shaver
to people and give some discount to audience when they play a small game from Philip. The
period is between October to December in 2016 and cost is 400,000 Baht. So we can make
awareness for young people that they dont know well about electric shaver.

Public service activities

Moreover we would like to recommend the public service activities via donation.
Philip can build goodwill from people. We will inform to customer that we will keep some part of
selling to donate the poor people in the Northeast area (Eg. Se si ket) and period time is between
March-May in 2016. The cost of Public service activities is around 200,000 Baht
Interactive Marketing
Another media that Philips should use is the Internet. They should promote through their
website and also Social Media including Facebook and Instagram that they can promote for a
whole year with only maintenance cost and some cost to create advertising that the cost per period
can be approximately 10,000 baht a month. They might create Fan page on Facebook that they
might put the information and promote some activities or promotion on that and also they can
easily contact directly with the customers and customers can easily ask, comment, or share any
ideas in this page. It benefits on Philips because Philips can see the trend of the new product that
whether people like or not and can take customers comments to improve their new products in the
future. They can create some activities and let customers to join to build good relationship between
the company and customers. For instance, to answer the question under the electric shaver
picture and a lucky person can get a special gift or share the electric shaver picture with writing
some hastag. Besides, the Internet ads charge lower cost than others ads. Philips might pay only
maintenance cost to control the quality.

5. Financial project
5.1 Three year projected statement

148.4 millions(2015)

2016

2017

2018

Sale revenue

163,240,000

187,726,000

225,271,200

Cost of goods sold(30%)

48,972,000

56,317,800

67,581,360

Gross margin

114,268,000

131,408,200

157,689,840

Marketing costs

40,500,000

45,500,000

50,500,000

Allocated overhead

10,450,000

13.350,000

15,250,000

Gross contribution

63,318,000

72,558,200

91,939,840

Net contribution

63,318,000

72,558,200

91,939,840

Discount contribution(15%)

55,059,130

63,094,087

79,947,687

Cumulative discount cash

flow

55,059,130

118,153,217

198,100,914

Development costs

Supplementary contribution

6. Implementation Controls
6.1 Implementation Controls (Gantt chart )

6.2 Contingency Planning

Marketing plan is very important when doing the business but sometime the objected of the
organization couldnt be achieved which can be occurred anytime from internal and external
factors such as customers trend, economy, law and regulation and so on. Thus, we have to
have the contingency plan to resolve the unexpected situation as followed.
Assume that our sales volume cant reach the sale objective as we planned in the year 2015,
we going to cut down the unnecessary expense to put this cut down cost on the other part that
have more efficiency for increasing the sale volume of the company. For example, we can put
this amount of money for Sales promotion to increase sale revenue. Also, we can put this
amount of money for R&D to fine the reason why our sale cannot reach the sale objective and
find the way to improve our product ability in the same time. Furthermore, we plan to advertise
more on the advertising media such as TV, transit, magazine to gain more customer
awareness to the product.
Assume that we provide sales promotion to customer already but sale revenue doesnt
increase, we have another plan to fight this situation by setting the campaign for customer in
order to increase the interaction with consumer. Public relation is another plan for this situation
because Public relation can gain more consumer interaction and shape the thinking of
customer.
Assume that we use IMC budget exceed the amount that we planned to use. We plan to find
the sponsor to support this exceed money. On the other hand, we have the second plan is to
reduce the cost of others part instead in order to keep total cost not more than we expected.

7. Conclusions and Key success

For conclusion for Philips brand, we have analyzed for overall information and we would
like to recommend the possible key successes for Philips. Philips should try to maintain their
position as a market leader and increase market share. For new launched product, they should try
to appeal customers as much as they can by using integrated marketing communication couple
with increasing customer interaction to create good long term relationship with customer such as
increasing number of various activities, for example CSR program, that it can make customers
know deeper information towards the products and also can create customer awareness and
brand image indirectly. They also should try to sell through online by using their own website
directly that it can make customers easily to buy with feeling reliable. Philips should develop more
on R&D to produce new product that have better quality with reasonable price.
8. Appendices

Questionnaire Form (Figure1)

The questionnaire about Philips electric shaver

We are students of the Assumption University and we are taking the course "Marketing
Management", MKT4730.This questionnaire was developed under the objective of education only
and all information will be kept it as high confidentiality.

Please answer the following question by using mark "" in the space provided below and do kindly
answer truthfully.
Part I : General Consumption
1. What brands of product you have used?
Philips

Panasonic

Braun

Other

2. What kinds of method do you shave with electric shaver?

Wet method

Dry method

3. How old you start to use the product?

Less than 20 years old

20 25 years old

26 35 years old

More than 35 years old

4. Where do you shave?

In the bathroom

In the bedroom

In the living room

Other
5. When do you use electric shaver?
During taking a shower

Before going to bed

After waking up

Other
6. How often you use electric shaver?
Once a week

Two or three days a week

Everyday

7. What is the main reason for you to buy electric shaver?

Other

Convenient and easy to use

various functions

Value for money

safety

Other.

8. In your opinion, what is the main advantage of electric shaver?

No injuries

Convenience

Less time needed

Safety

Economy

Other.

9.In your opinion, what is the main disadvantage of electric shaver?

Expensive

Need maintenance

Hurts- Pull hair out

Not such a close and clean shave

Other.

Part II : Buying behavior

9. What factors which influence you to buy the product?
Price
Promotion
Quality
Others
10. Who have impact on you to make a decision to buy the product?
Myself

Family

Celebrities

Friends

Others..

Reviewer/Blogger

11. What brand of product do you prefer to buy the most?

Philips

Panasonic

Braun

Others.

12. What is the range of price you think is appropriate to buy?

Less than 1,000 Baht

1,000 Baht 3,000 Baht

3,001 Baht 5,000 Baht

More than 5,000 Baht

5. What kinds of electric shaver you buy?

Foil

Rotary

6. What brand choices that you consider before buying electric shaver?
(Please rank 1 - 3 which 1 is the most consideration and 3 is the less consideration)
__ Quality

__ Price

__Promotion

Part III : Perception of Philips

1. Do you know Philips electric shaver?

__Package

__ Advertisement

Yes

No

2. Which channel that you receive the information about Philips?

Word of mouth

Broadcast

Out of home

Internet

Print advertisement
Other..

3. What is the main characteristic of Philips electric shaver?

Good Quality

Reasonable price

Easy to buy

Other.
4. What do come first on your mind when you think of Philips ?
Electric appliances

Home furniture

Nothing

Other

5. If you never use Philips electric shaver before. Do you want to try or purchase Philips electric
shaver? And why?
Yes

Because..

No

Because..

Part IV: Customer Awareness

1. What is the name of electric shaver brands that come first on your mind?
Philips

Panasonic

Braun

Other.

2. Who is the first person to make you to be aware of using electric shaver?
Myself

Family

Celebrities

Friends

Others.

Reviewer/Blogger

3. How did you first hear about electric shaver?

TV

Radio

Magazine

Friend

Internet

Other
4. Would you recommend the electric shaver to your friends or associate?
Sure

Probably

Not sure

No

5. Do you continue to use electric shaver in the future?

Yes

Not sure

No

Part V : 4Ps Question

1. Where do you buy electric shaver?
Department store
Convenient store

Official Website
Social Media

Others..

2. Does the price have influence on you to purchase the product?

Yes

No

3. How much that you buy electric shaver per time?

Less than 1,000 Baht

1,000 Baht 3,000 Baht

3,001 Baht 5,000 Baht

More than 5,000 Baht

4. Which channel that you meet the advertising media?

TV/ Radio
Internet

Print Advertisement

Out of Home

Other.

5. Which promotion you are interested in buying electric shaver?

Discount

Premium on Pack

Free product offering

Other
6. What types of electric shaver you use?
By battery

By charging

Personal Information
1. Age
18 year old
36 -50 year old

19 - 24 year old
51-60 year old

25-35 year old

60 year old

2. Occupation
Student

Employee

Business Owner

Other

3. Income/month
Less than 5,000 Baht

5,000-15,000 Baht

15,001-25,000 Baht

25,000 above
4. Education
High School

Bachelor degree

Master degree

Research Result

Part I : General Consumption(Figure2)

1.

2.

3.

5.

4.

6.

Other..

8.
7.

9.

Part II : Buying Behavior

1.

2.

3.

5.

4.

6.

Part III : Perception of Philips

1.

2.

3.
4.

5.

Part IV : Customer Awareness

1.

2.

3.

4.

5.

Part V : 4Ps Question

1.

2.

3.

5.

Personal Information

4.

6.

1.

2.

3.

4.

Info graphic(figure3)

Product

Details

(Figure4)

Norelco Shaver 9700

Norelco Shaver 510

AquaTouch AT600

Electric shaver PQ217

Norelco Shaver 9700

Norelco Shaver 7300

Series 4000

Figure5: (market share)

Figure6:(Thailands GDP chart)

Figure7: (Panasonic & Philips price)

Figure8: (Braun & Philips price)

Figure9: (Price comparison)

Indirect Competitor (Figure10)

Figure11: Philips Green Logo

Figure12: Eco design icon

Figure13: Product Concept

Figure14: Positioning map

Figure15: Print ads for IMC campaign