Philips Report

A PROJECT REPORT On

“To know the footprint of Philips Electronics India Ltd. in Indore market”

Submitted to: Mr. Abhay Raj Patel Assistant Manager, Philips Electronics India Ltd., Indore (M.P.) Submitted by: Merajul Husain M.B.A. – IV sem. Mobile No.- +91-99932-10706 SWAMI VIVEKANAND COLLEGE OF ENGINEERING

SCHOOL OF MANAGEMENT

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2008-10 ACKNOWLEDGEMENT I would like to thank my project guide Mr. Abhay Raj Patel Assistant Manager Philips Electronics India Ltd., Indore (M.P.) for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated. I would like to thank Prof. Gaurav Moghe, for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Indore. Once again my gratitude to the Philips Electronics India Ltd. For their kind co-operation.

MERAJUL HUSAIN M.B.A ( IV Semester.) Mobile No- +91-99932-10706 (Marketing + Human resource)

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PREFACE The business of Electronics in India has seen significant changes in last few years. We have seen the emergence of new formats and the application of global concepts and constructs albeit with modifications to suit the Indian environment. It not only provides the Indian consumers a wide choice, but also represents a very large employment opportunity for people with diverse skill sets. Today, there is a pressing need for the Indian electronics industry to persistently track and unravel the complexities of the global supply chain, which is now being reshaped by a gamut of environmental compliance norms that have come into force. Without an actionable ‘India Strategy’ relying on a set of appropriately benchmarked environment management policies and implementation programmes, the competitiveness and growth of the electronics and information technology (IT) industry are bound to be hamstrung. It is, therefore, absolutely essential for companies to develop robust practices to avoid high non-compliance costs. Action in the global market place for cleaner technology processes and recycling programmes has already gathered significant momentum. The global electronics industry is growing rapidly. From an estimated size of US$950 billion in 2005, it is estimated to grow to nearly US$2,100 billion by 2010. The market is dominated by Asian countries such as China, Taiwan, Singapore and South Korea. The industry is characterized by rapid innovation and speed to market, short product life cycle, highly automated manufacturing to give consistent quality at low cost, high volume production, continuous improvement in capabilities for reducing costs and profit accrual through volumes. India's electronics industry is nascent by global standards. Despite a population of over one billion, India has a relatively small electronics market. It is ranked twenty-sixth worldwide in terms of sales and twenty-ninth in terms of production. The total size of the industry in 2004-05 was US$11 billion.

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Consumer electronics The Consumer electronics industry contributes about 33.80 per cent of the total electronics production in India. The total production of consumer electronics was US$3.74 billion in 2004-05, registering a growth of 13 per cent over production in the previous year. The growth has been primarily powered by colour televisions

(CTV), which grew from 8.9 million

units in 2003-04 to over 10 million in 2004-05. CTV growth in turn is driven by growth in Flat Screen TVs (FST) that is estimated to constitute nearly 20 per cent of the CTV market. Other growth segments in consumer electronics include microwave ovens and VCD/MP3 players – the microwave oven industry is estimated to be growing at the rate of 25-30 per cent. These trends are a reflection of increasing consumption and aspiration levels among Indian consumers, driven by demographic and lifestyle changes. As these trends are positive for the future, the outlook for consumer electronics segment is quite positive.

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DECLARATION

I hereby declare that the following documented Project Report titled “To know the footprint of Philips in Indore market” is an authentic work done by me. The Study was undertaken as a part of the course curriculum of MBA Full Time Program of Swami Vivekanand College Of Engineering, INDORE.

MERAJUL HUSAIN MBA (IV Sem.) Mobile No- +91-99932-10706

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CONTENTS: Serial No. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Title ♦ Acknowledgement ♦ Preface ♦ Declaration ♦ Exclusive Summary Part I ♦ Company Profile ♦ Introduction of Company ♦ History of Company Part II ♦ Project Overview ♦ Project Introduction ♦ Objective and Scope ♦ Research Methodology ♦ Data Analysis ♦ Limitation of the study ♦ Findings and Suggestion ♦ Conclusion Part III ♦ References

Page No. 01 02 - 03 04 06 07 - 10 11 12 - 25 26 - 34 35 35 36 37 - 44 45 45 46 47

EXECUTIVE SUMMARY Philips has been a leading brand in electronics in India and across the world. Philips with its wide range of products caters to the premium segment of the market. Philips faces

7 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.

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Royal Philips Electronics

9 Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare.

Global Footprint Philips is a global leader across its healthcare, lighting and lifestyle portfolio: •

We are the world’s largest home healthcare company, being number one in: Monitoring systems, Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.

•

We are number one in lamps in Europe, Latin America and Asia Pacific and number two in North America; in Automotive lighting, we are leading in Europe, Latin America, Japan and Asia Pacific.

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We are number one in the electric shavers and male grooming category globally.

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Philips is one of the leading flat-TV brands globally.

Mission "Improve the quality of people’s lives through timely introduction of meaningful innovations."

Vision

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

Values “Our Values reflect the ambitions we have laid down in “Vision 2010”, our recent strategy update. The Values, the four Ds, are like a compass – guiding us in how we behave every day, and reminding us of the attitudes we should have towards our work, our customers and our colleagues.” Delight Customers We anticipate and exceed customer expectations •

We demonstrate Passion for Philips and "sense and simplicity"

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We create superior customer experiences, based on deep insights

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We act as One Philips ambassadors all the time

Deliver great results We continually raise the bar •

We play to win big and always set ambitious targets

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We challenge the status quo and experiment with new ways

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We

take

implement discipline

Develop people

clear with

decisions

and

speed

and

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We get the best from ourselves and each other •

We attract the best players to create strong and diverse teams

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We take risks by giving people stretch assignments to accelerate their development

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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

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We trust and empower each other to contribute our best

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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 people’s Health and wellbeing needs and aspirations as its overarching theme.

12 As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life. With recent launch of Philips Respironics product categories in obstructive sleep apnea management and home respiratory care, home decorative lighting range and ALU range, Philips products find use in virtually every aspect of an individual’s daily life 24X7 - at home, at work, on the move and at rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products with superior design and technology that enhance the quality of consumers' professional and personal lives. Philips has been operating in India for over 75 years and employs over 4,500 employees around the country. The company has an excellent pan India distribution and aftersales service network.

EVOLUTION OF PHILIPS AS A “BRAND”

13 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

14 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.

15 To establish consistent global presence, in 1995 Philips introduced the first global campaign in 1995 under the tagline “Let’s make things better”. This theme encapsulated the “One Philips” thinking and was rolled out globally in all markets and on all Philips products. This was also the first campaign that bought the whole company together, giving the employees a sense of belonging and providing a unified company look for an external audience. In September 2004, Philips launched its “sense and simplicity” brand promise, which marked a new way forward for the company. “Sense and simplicity” reflects Philips’ commitment to be a market-driven company that provides products and services that fulfill the promise of being “designed around you, easy to experience and advanced”. In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion and was ranked the 43rd most valuable brand in Inter brand’s 2008 ranking of best global brands.

PHILIPS’ STRATEGY IN INDIA Philips India, is in a bid to aggressively push its sales in the rural/semi-urban segment and has designed an innovative strategy for these regions. Called the `Philips Mahasangram Integrated Marketing Programmes', the rural initiative will be taken across the country from July 2, focusing on rural towns with a population of less than 5,000 and 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

16 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

17 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.

18 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

19 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

20 service centres across the country to 190, from 125 two years ago. Today, over 900 technicians now attend to complaints, up from 600 in 2002.

PRODUCTS AND SERVICES Philips being a market leader in electronic consumer durables and consumer non durables, has a wide range of products under the following headsHealthcare

Philips simplifies healthcare by focusing on the people in the entire “cycle of care” whether it is in the hospital or in the home – patients and care providers. Philips Healthcare in India operates in the diagnostic imaging segment including CT, MRI, X-rays, cardiovascular system, nuclear medicine, PET-CT, and ultrasound imaging systems, and is also a significant player in patient monitoring. Recently, Philips Healthcare announced its entry into the fastgrowing Indian home healthcare market by introducing the Philips Respironics product

21 categories in obstructive sleep apnea management and home respiratory care. Through combining human insights and clinical expertise, Philips aims to improve patient outcomes while lowering the burden on the healthcare system. Outstanding image quality and reliability, backed by an excellent application, and customer support network, has made Philips Healthcare a preferred choice of clinicians and one of the leading suppliers of diagnostic imaging systems. Philips is the clear leader in cathlabs segment with the most comprehensive range of innovative cardiology solutions in India. With a strong focus to drive growth from emerging markets, Philips Healthcare announced the first patient monitor designed for emerging markets, Philips SureSigns VM3, in India. This series of new portable, compact patient monitors provides a reliable, yet affordable means to observe and care for patients. With the acquisition of India-based Alpha X-Ray Technologies and Meditronics, Philips also expanded its healthcare business to cater to the high-growth economy segment for Cardiovascular and General X-Ray systems. .

Lighting

Philips Electronics India, India’s largest lighting company operates in business areas of Lamps, Luminaires, Lighting Electronics, Automotive and Special Lighting. Today, as global leader in Lighting, Philips is driving the switch to energy-efficient solutions. With worldwide electrical lighting using 19 per cent of all electricity, the use of energy-efficient lighting will significantly reduce energy consumption around the world and thereby cut harmful CO2 emissions. Philips India has been consistently working with industry bodies such as ELCOMA, Bureau of energy efficiency and NGOs towards addressing India’s power crisis through promotion of energy efficient lighting in India.

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Philips provides advanced energy-efficient solutions for all segments: road lighting, office & industrial, hospitality and home. Philips is also a leader in shaping the future with exciting new lighting applications and technologies such as LED technology, which, besides energy efficiency, provides attractive benefits and endless new ‘never-before-possible’ lighting solutions. In 2008, Philips inaugurated a global research and development (R&D) centre for lighting electronics in India. This was its third such unit in the world. The facility which is situated in Noida will not only cater to the needs of the Indian market but also the AsiaPacific, Europe and North America. The other R&D centres are located at Eindhoven in the Netherlands and in Shanghai, China. One of the primary research areas for the centre is to develop products that can tackle high voltage fluctuations in India. The centre currently employs 35 engineers. Around 40 per cent of Philips’ revenue in India comes from the lighting business. Consumer Lifestyle

Guided by the brand promise of “sense and simplicity” and the consumer insights, Philips Consumer Lifestyle offers rich, new consumer experiences that meet consumers’ desire for relaxation and improving their state of mind. Philips also responds to the consumer's desire for wellness and pleasure by introducing products that meet the individual’s interests in terms of their mind, space, body and appearance. The Consumer Lifestyle arm in India operates in the business areas of Home Entertainment solutions and Personal Infotainment with product categories such as TVs, home theatre systems, music systems, DVD players, personal entertainment solutions, sound accessories, Domestic Appliances and Personal care.

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Sound and Vision The Philips GoGear with FullSound was created to enhance the sound quality of your MP3 music while you play it. Now you can experience your music on the go as never before. Includes product range in – •

Televisions

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Home Theatres

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Blu- Ray And DVDs

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Audio Products

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MP3 And Media Players

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Portable TV And DVD

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Digital Photo

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Professional Flat TVs

House Hold Products Includes the range in – •

Coffee Makers And Kettles

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Irons

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Juicers and Blenders

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Food Preparation

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Water And Air Purifiers

PC Products and Phones •

Web Cams And Head Sets

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Monitors

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PC Audio

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Drivers And Storage

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Mice And Key Boards

Accessories •

Phone Accessories

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Audio/ Video Accessories

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MP3 Players Accessories

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Head Phone

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Remote Controls

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Mother And Child Care

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Power Solutions

Personal Care This includes – •

Men’s Shaving

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Men’s grooming

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Female depilation

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Hair care

Philips Innovation Campus (PIC)

25 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, PIC’s 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-of-theart 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.

Sustainability

Sustainability is at the center of Philips’ strategy. Philips is committed to reducing its environmental footprint in all aspects of its business: in the products, manufacturing, procurement, as well as in the communities where the company acts and in the working practices of its employees.

26 All Philips products go through an EcoDesign process, identifying environmental impact in terms of energy efficiency, hazardous substances, take-back and recycling, weight and lifetime reliability. Philips’ processes on Green Product sales are verified annually by an independent third party and published in the Sustainability Annual Report. Philips aims to combat global healthcare challenges by focusing on delivering better quality healthcare at lower costs, also in the emerging markets, such as China and India. Philips also takes a leading position in educational programs, showing its stakeholders that energy efficient solutions are simple, easy and actionable and make economic sense for national and local governments, businesses, schools and individuals.

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PRODUCT DETAIL Philips India ltd. is the Indian counterpart of Royal Philips Electronics. Originally established as Philips Electrical Co. (India) Pvt. Ltd, Philips was born in India in Kolkata in 1930. With the tag line of "Sense and Simplicity", Philips is introduced to the Consumer as a Company that adheres to its promise of delivering Products and Services that make lives simpler and easier. Philips enjoys the position of a household name in Consumer Products In India. Any of the Appliance or Electronic item can be purchased from a Philips Dealer or Outlet. The Consumer Products range of Philips include:  Televisions- LCD, Plasma, Flat Screen , Smart Touch XL  Recorders, DVD Players, I pods and Home Theatre Systems  Audio Products - Audio Systems, Remote Controls, Audio/Video Accessories  Digital Photo Products and Frames  Portable Audio and Video Systems, Accessories like Headphones and Speakers  PC Products - Mouse and Keyboard, Multi Media Headsets, External Hard Disk Drives.  Mobile Phones  Male Shaving and Grooming - Dry Shavers, Beard Trimmers  Personal Care - Beauty and Hair Care Products

28  Kitchen Appliances - Blenders and Hand Blenders, Juicers and Citruspresses, Food Processors and Mixers, Coffee Makers and Kettles, Frying and Grilling Appliances, Toasters and Snacking Products  Household Products - Irons, Vacuum Cleaners, Water Purifiers .Philips is a name synonymous to Lighting In India. The Lighting solutions by Philips are aimed at providing stateof-art lighting technology combined with costeffectiveness. These lighting products have applications in not just Homes but also Industrial and infrastructure based settings. The Philips Lighting Solutions cover the following spheres:  Professional Lighting - Industrial, Shops and offices, Road and Area, Hospitality, Sports Lighting, City Beautification, Philipsools and Petrol Stations  Automotive Lighting - In Cars, Motorcycles and Trucks  Home Lighting The Annual Reports of the Company show considerable growth owing to a well planned and maintained Research and Development System. Philips India Ltd. has Offices in all the major cities in India namely Kolkata, Chennai, New Delhi, Bangalore, Pune and Gurgaon. The Corporate Office is situated at Mumbai. The CEO of Philips Electronics India Limited, Mr. K Ramachandran, along with the Chairman, Mr. S.M. Datta and the entire team of directors has been successful in taking Philips to new heights in Indian Consumer Appliances Market.

29 Philips SA3125 Phillips 2GB MP3 MP4 Player SA3125

Philips SA3115

Philips SA1355 Audio format MP3 / WAV / WMA

Philips HR1350 Model Code : HR 1350 ...

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Philips 32PFL7332 HDTV Ready, Image resolution of 1366 x 768 pixels, 16:9 aspect ratio

Juicer

HR1861/00 700W - Dishwasher-safe - Extra large capacity - Extra large feeding tube Juicer Mixer Grinder

2 jar - Auto shut-off

31 - Compact design for less sto ... - Easy to pour and store Mixer Grinder

HR1651 3 jar 750W - 750 W powerful motor - Auto shut-off - Intelli control timer

Iron

Pressurised steam ge... GC8220 - 1.4 liter water tank - Up to 4.5 bars steam pressu ... - Steam tip

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Steam iron GC4420 - Up to 40 g/min of steam - Steam tip - Automatic safety shut-off

Travel iron GC650 - Steam boost - Vertical steam - Carry pouch Men’s Shaving

33 Electric shaver RQ1280 Chrome - GyroFlex 3D - UltraTrack - Patented Super Lift&Cut Act ...

Electric shaver HQ130 - Unique Lift & Cut dual blad ... - Individually floating heads - Up to 60 minutes cordless s ... Hair Care

Hairdryer HP8202 - Ion conditioning - 1600W - EHD+ technology Lady Shaver: Epilator

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HP6609 Total body - Opti-start cap with massage - Lift and massage attachment - Sensitive cap

SERVICES · Philips products have reached millions of consumers in India. · Products discarded by consumers turn into electronic waste. · This E-Waste is hazardous for the environment, and to human health. · Efforts are needed to dispose off these products in an environment friendly manner. · Philips India has initiated a voluntary take back and recycle program. Philips E-waste Management Program in India Philips has tied up with a recycler for collecting, transporting and recycling unwanted / broken down consumer products. At Philips we offer consumers a convenient way of recycling their unwanted, obsolete and damaged Philips products by dropping them off at convenient locations. The program encompasses 8 major cities across India. Consumers can approach one of 27 authorized Philips service centres, which will act as collection points for consumer products which need recycling. Our efforts are to expand the network in the near future. Philips ensures that the consumer products received will be recycled in an environmentfriendly manner. Philips understands the corporate social responsibility and takes steps towards

35 providing a safer environment to the future generations. We design our products to continuously realize improvements and reduce their overall life cycle environmental impact. Designing products for recycling is an integral part of this approach. Our aim is to use our planet’s limited resources effectively and respect the principle of extended producer responsibility. This also calls for manufacturers to engage in developing solutions for effective and efficient recycling of their products. We will continue to promote and invest into improved recycling systems to reduce the impact of electronic waste on the environment.

PROJECT INTRODUCTION TITLE OF THE PROJECT “To know the footprint of Philips in Indore market” RATIONALE OF THE STUDY Philips Electronics India Ltd. Is facing problem due to presence of other brand in electronics segments and also they provide similar products and services. So my motive of the project is to know the basic cause behind the challenges and develop new opportunities for Philips Electronics India Ltd in Indore market. To carry out the study of the Philips Electronics India Ltd. Policy, strategy and techniques adopted at Indore market due to presence of other brands. OBJECTIVES •

To study consumer preference in reference to purchase of electronics, electrical and personal care products.

36 •

To study the factors that affects the buying behavior for these ranges of products.

•

To analyze consumers and retailers perception about Philips’ Products.

•

To develop and suggest strategies that might help Philips Electronics India Ltd. To increase its sales in Indore.

•

To find new practices for maintaining good relationship with retailers.

RESEARCH METHODOLOGY Sample Technique:The probability sampling has used to collect the date for research. Sample Plan: Population:Retailers of electronics, electrical and appliances products as well Gifts and personal care shops.  Sample: Retailer of electronics, electrical and gift items.  Sample Unit: All the region of Indore where electronics, electrical, appliances, gift and personal care shop available.

37  Sample Size The sample size of the survey was 104 retailers.  METHODS OF DATA COLLECTION The data used for the project is primary as well as secondary data, as follow: Sources of primary data: •

Questionnaire

Sources of secondary data: •

Web sites

DATA ANALYSIS (0n the basis of electronics, electricals and appliances shop 1. Product category available in shop:-

38

100 90 80 70 60 50 40 30 20 10 0

Personal Care

90.4 75.9

75.9

Iron MixingGrinder 20.5

Juice Mixing Grinder May-June

s

2. Philips product available in shop:-

39

60

Iron

56.62

50 40 30

MixingGrinder

42.16 42.16

20

14.45

10 0

Juice Mixing Grinder Hair Dryer

28.91

7.22

Shaver FemaleDeplition

May-June

3. Counter wise brand share (Iron):

40

4.81 3.61

4.81 2.4

4.81 2.4

9.63

57.83

3.61 2.4 6.02 8.43

8.43

7.22 6.02

18.07

53.01

2.4

24.09 18.07

12.04

4. Counter wise brand share (Mixing Grinder):

Philips Bajaj Kenstar Maharaja Crompton Nova Khaitan Usha Murphy Gopi Kwality Ruchi Omega Sona Radition Inalsa Ameet Roxy Apollo Panasonic Niko

41

4%

Philips

5% 18%

Bajaj

9%

Maharaja Kenstar

7%

Crompton

13%

Khaitan 10%

Kwality Inalsa

14%

6%

Gopi

14%

Ameet

5. Counter wise brand share (Juice Mixing Grinder)

Philips

4%

4%

7%

Bajaj

2%

20%

Maharaja Kenstar

7%

Crompton 8%

15%

Kwality Inalsa

7% 11%

15%

Gopi Ameet Khaitan Roxy

6. Counter wise brand share ( Hair dryer)

42

Philips Local, 25.3

Philips, 28.91

Bajaj Nova Orbit

Orbit, 4.81 Nova, 6.02

Local

Bajaj, 7.22

7. Counter wise brand share (Shaver)

Philips 32%

Local 44%

Nova 11%

Bajaj 13%

Philips Bajaj Nova Local

8. Counter wise brand share (Female Depilation)

Local 45% Philips 55%

Philips Local

9. Counter wise brand selling (Brant wise):

43

40 36.56 35

30 27.48 25

May-June

20

14.83

15

10

9.43

8.32

5

3.61 0.56

1.21

3.05

2.12 0.41 0.81 0.31 0.21 21% 0.31

Lo Ro ca xy lP ro du ct s

So na

Ru ch i Om eg a

Go pi Kw al ity

Us ha M ur ph y

No va Kh ai ta n

Ba ja j Ke ns ta r M ah ar aj a Cr om pt on

Ph ili ps

0

10. Interested in Philips’s products (Where Philips’s products absent):

44

Female Depilation

2

Shaver

2

Hair dryer

2

75 69 57

Juice Mixing Grinder

7

Mixing Grinder

7

Iron

40 27

8 0

No Yes

40

10

20

30

40

50

60

70

80

11. Philips’s products have good quality? 9%

Strongly agree

3% 29%

37% 22%

Agree Neither agree nor disagree Disagree Strongly disagree

12. Retailer satisfaction with distribution channel of Philips? Fair 14%

Superb Superb 44%

Good 24%

Excellent Good

Excellent 18%

Fair

Data Analysis (On the basis of Gifts and Personal care Shops):-

45

13. Product category available:Hair dryer, 28.57

30

Hair dryer

Female Shaver, 19.07 depilation, 19.04

25 20

Shaver

15 10

Female depilation

5 0

May-June

14. Interested in Philips’s Personal care product:-

20

17

15

15

16

Yes

10 5 1

0

Hair dryer

1

0 Shaver

No

Female depilation

15. Why not interested in Philips’s Personal care products (where it not present)? 17%

Not selling

Costly 50% 33%

LIMITATIONS OF THE STUDY •

My survey was limited to Indore market.

It isan electronic product

46 •

The sample size for the survey of retailer was limited to 104 respondents, which might not be representative of all retailer of Indore city.

•

The results are totally derived from the respondent’s 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 AND SUGGESTIONS

FINDINGS  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.

CONCLUSION

47 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 Indore region and turning low cost itself for the rest.

REFERENCES:-

48

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

WEBLIOGRAPHY ♦ http://www.india.philips.com/about/company/india/index.page ♦ http://www.philips.com/about/investor/index.page ♦ http://en.wikipedia.org/wiki/File:Philips_logo_new.svg ♦ http://www.india.philips.com/about/sustainability/index.page ♦ http://www.philips.co.in/c/food-processors-mixers/24538/dec/ ♦ http://www.lighting.philips.co.in/v2/index.jsp ♦ http://www.india.philips.com/ ♦ http://www.gsmarena.com/philips-phones-11.php ♦ http://www.philips.co.in/#/headernav/consumer/ ♦ http://www.usa.philips.com/ ♦ http://www.google.co.in ♦ http://www.annualreport2008.philips.com/pages/we_care_about/opportunities_in_emergi ng_markets.asp#open ♦ http://www.business-standard.com/india/news/philips%5C-new-design-forgrowth/401050/ ♦ http://www.telegraphindia.com/1100420/jsp/business/story_12358542.jsp ♦ http://www.godfreyphillips.com/ ♦ http://www.research.philips.com/ ♦ http://www.philipslumileds.com/ ♦ http://www.electronicserviceco.com/