RESEARCH METHODOLOGY OF PHILIPS

CHAPTER 1 INTRODUCTION 1.1 COMPANY PROFILE:

Royal Philips Electronics

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

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

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

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

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We are number one in the electric shavers and male grooming category globally. Philips is one of the leading flat-TV brands globally.

Mission "Improve the quality of peoples lives through timely introduction of meaningful innovations." Vision In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people. Values Our Values reflect the ambitions we have laid down in Vision 2010, our recent strategy update. The Values, the four Ds, are like a compass guiding us in how we behave every day, and reminding us of the attitudes we should have towards our work, our customers and our colleagues. Delight Customers We anticipate and exceed customer expectations

We demonstrate Passion for Philips and "sense and simplicity" We create superior customer experiences, based on deep insights We act as One Philips ambassadors all the time

Develop people We get the best from ourselves and each other

We attract the best players to create strong and diverse teams We take risks by giving people stretch assignments to accelerate their development We personally invest significant time to coach and recognize people.

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

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

Philips Electronics India Limited:

Philips Electronics India Limited, a subsidiary of the Netherlands-based Royal Philips Electronics, is the leading Health and Wellbeing company. Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing peoples Health and wellbeing needs and aspirations as its overarching theme.

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

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RESEARCH METHODOLOGY OF PHILIPS 1.2 EVOLUTION OF PHILIPS AS A BRAND:

Wherever encountered, the Philips brand is a familiar sight in millions of households and buildings throughout the world with its instantly recognizable word mark of seven blue capitalized letters. Although the company has evolved and grown over more than hundred years, Philips visual brand identity is rooted in its early years at the beginning of the 20th century.

Philips in 20th Century: First Lamp Advertisements

Established in 1891 in Eindhoven, the Netherlands, Philips & Co. was founded to meet the growing demand for light bulbs following the commercialization of electricity.

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.

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Philips Identity Trademarked: Origins of the Shield Emblem

The now familiar Philips waves and stars first appeared in 1926 on the packaging of miniwatt radio valves, as well as on the Philigraph, an early sound recording device. The waves symbolized radio waves, while the stars represented the ether of the evening sky through which the radio waves would travel.

In 1930 it was the first time that the four stars flanking the three waves were placed together in a circle. After that, the stars and waves started appearing on radios and gramophones, featuring this circle as part of their design. Gradually the use of the circle emblem was then extended to advertising materials and other products. At this time Philips business activities were expanding rapidly and the company wanted to find a trademark that would uniquely represent Philips, but one that would also avoid legal problems with the owners of other well-known circular emblems. This wish resulted in the combination of the Philips circle and the word mark within the shield emblem.

In 1938, the Philips shield made its first appearance. Although modified over the years, the basic design has remained constant ever since and, together with the word mark, gives Philips the distinctive identity that is still embraced today.

Advertising Philips Brand Today Whilst the logo of the company has been consistent since the1930s the way in which Philips has advertised and communicated to the outside world has varied. In general, until the mid-1990s all advertising and marketing campaigns were carried out at product level on a local market basis. This led to many different campaigns running simultaneously, not giving a global representation of Philips as a global company.

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To establish consistent global presence, in 1995 Philips introduced the first global campaign in 1995 under the tagline Lets make things better. This theme encapsulated the One Philips thinking and was rolled out globally in all markets and on all Philips products. This was also the first campaign that bought the whole company together, giving the employees a sense of belonging and providing a unified company look for an external audience. In September 2004, Philips launched its sense and simplicity brand promise, which marked a new way forward for the company. Sense and simplicity reflects Philips commitment to be a market-driven company that provides products and services that fulfill the promise of being designed around you, easy to experience and advanced.

In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion and was ranked the 43rd most valuable brand in Inter brands 2008 ranking of best global brands.

1.3:MARKET POTENTIAL:
Market potential of the PHILIPS is much positive in competitive era and will sure cover the maximum market share of electric product. Potentiality of any product depends upon the futuristic performance of the product. it depends that how much retailers have potentiality to be permanent seller of PHILIPS. For great potentiality it is necessary to improve those factors which are going to effect retailers. In my study I found some factors which can help to cover great potentiality. These factors are following: Scheme delivery should in perfect determining time. Some places distributors not able to cover such as (Jankipuram 60 ft road, aishbagh).That should be improved. Scheme facility should be regular as much as possible. Cash discount should be provided when a retailer purchase in bulk in cash payment so that the working capital circulate from both end and this activity will help to generate more potential retailers.

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Always collect the views of retailers. It gives psychological effect on the retailers about careness by manufacturing company. If we do not consider retailers point of view then who will sell our products.?

These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Philips product and customer will also enjoy for it. .

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 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 planets 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

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RESEARCH METHODOLOGY OF PHILIPS 1.4: COMPETITORS:

Generally all organizations have competitors in the market. A particular organizational comprises with other same business and according to market share i clarify the brand of product is giving more challenge to my product.

I found many products which can be compared with Philips products. As aconclusion i found that particularly in the area i surveyed Philips is really doing well and its performance is on a satisfactory level but as far as the competitors is concern they are growing at a rapid speed a capturing the market of Philips.

During the field work and after intensive study it was found that main competitor of Philips are :HAVELLS BAJAJ CROMPTON

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CHAPTER 2 ANALYSIS I
2 2..1 1L LI IG GH HT TN NI IN NG GA AB BO OU UT TP PH HI IL LI IP PS S
Philips is number one in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Its strategic ambition is to set the pace in the lighting industry as the first-choice innovative partner for the supply of creative and cost-effective lighting solutions.

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

Products include a full range of incandescent and halogen lamps, compact and normal fluorescent lamps, high-intensity gas-discharge and special lamps, fixtures, ballast, lighting electronics and automotive lamps.

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I Im mp po or rtta an ntt M Ma ar rk ke ett I In nttr ro od du uc cttiio on ns so off R Re ec ce en ntt Y Ye ea ar rs s:: Halogen offers consumers in the U.S. whiter light and a lifetime about three times longer than standard incandescent lamps. The ALTO T8 fluorescent lamp, which contains the least mercury of all comparable lamps on the U.S. market while maintaining its superior performance, is being installed in all newly constructed WalMart stores in the U.S. Ecotone Ambiance, a compact, energy-saving lamp on the European consumer market, has the same shape and gives the same natural soft light as the Philips Softone. The CLEO Natural range of tanning lamps which apply the latest scientific and medical knowledge in providing a sensible, effective tan in a soft and gentle way. MasterColour CITY extends to outdoor applications the excellent "white light" color properties and high efficacy of the existing MasterColour indoor range. Metronomis outdoor luminaires reflect a modern vision of architectural urban lighting, in which leading-edge technology is combined with a clear and elegant design. The TL5 office lighting system, consisting of the T5 small-diameter (16mm) fluorescent lamp along with efficient TL5 fixtures incorporating sophisticated lighting controls, provides high-quality lighting and minimizes energy demands. The UHP (Ultra High Power) lamp is currently the leading product in the market for digital data projection in beamers connected to PCs. Electronic ballasts for TL5 and PL-T/C lamp circuits (e.g. miniature HF-Matchbox), and electronic gear for operating HID lamps.

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The recently launched e-Kyoto electronic ballastweighs 58% less and uses 20% less energy than electromagnetic ballasts. VisionPlus lamps increase road safety by giving 50% more light on the road, a 10-20 meter longer beam and better reflections from roads and signs; Xenon automotive lamps give more than twice as much light as conventional halogen lamps while using only half the energy. The divisions extension of its LumiLeds JV with Agilent Technologies in the field of LEDs (light-emitting diodes) strengthens its leading position in this field and underlines its confidence in this technology being applied to an increasing range of applications.

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

Our Halogen Classic light bulb lasts two years and is ideal for hard-to-reach fixtures. Its Long Life means less hassle and lower maintenance as well as energy savings over standard incandescent bulbs. The Halogen Classic provides crisp, white light, and is available in 60, 75, 100 and 150 watt bulbs. Use it for table lamps, hanging pendants, ceiling fixtures, outdoor lighting, commercial downlights, or any hard-to-reach fixture.

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I IN ND DO OO OR R& &F FL LO OO OD DS SP PO OT T

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

B BR RI IL LL LI IA AN NT TC CR RY YS ST TA AL L

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

S ST TY YL LI IZ ZE ED DF FL LA AM ME E Halogen Stylized Flame is an elegant Long Life alternative to standard decorative incandescent bulbs. Its Long Life means less hassle and lower maintenance as well as energy savings. Available in both candelabra and medium base, the Stylized Flame provides a direct replacement to standard incandescent decorative lamps and is ideal for chandeliers, sconces or any decorative fixture. Stylized Flame can also be used with a dimmer swich, which provides additional energy savings.

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T TR RA AD DI IT TI IO ON NA AL LF FL LA AM ME E& &S SP PO OT TL LI IG GH HT T:: Halogen Postlight's and Traditional Flame's Long Life mean they last longer than standard and decorative incandescent lamps. Their crisp, white halogen light provides an elegant sparkle for indoor and outdoor applications. Both are also dimmable, which adds design flexibility and energy savings to these premium bulbs.

Philips Innovation Campus (PIC)

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

Working at PIC are about 1000 of the industry's finest professionals, using state-ofthe-art software engineering paradigms and platforms including real-time systems, component-based software engineering and multi-threaded architecture to drive the creation of tomorrow's products and services. PIC is an ISO 9001/TickIT, SEI, CMM SM level 5 company & has emerged as a critical partner in the development of strategic & futuristic technologies for Philips worldwide. 60,000 registered patents illustrate the innovative nature of the company. Philips has adopted an Open Innovation strategy which leverages the joint innovative power of partnering companies and researchers to bring more innovations to the market effectively and faster. PIC has built-up extensive know-how and expertise in the software engineering and technology domains relevant to its business. In addition, competencies in the areas of project management, requirement engineering and quality assurance have been established to offer customers products and services of the highest quality, at the fastest time-to-market and the lowest cost of ownership.

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RESEARCH METHODOLOGY OF PHILIPS 2.2: 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 heads-

Healthcare 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 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, Indias 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

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such as ELCOMA, Bureau of energy efficiency and NGOs towards addressing Indias power crisis through promotion of energy efficient lighting in India. 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.

ConsumerLifestyle: 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 individuals 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. 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 Home Theatres

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Blu- Ray And DVDs Audio Products MP3 And Media Players Portable TV And DVD Digital Photo

House Hold Products Includes the range in Coffee Makers And Kettles Irons Juicers and Blenders Food Preparation Water And Air Purifiers

PC Products and Phones Web Cams And Head Sets Monitors PC Audio Drivers And Storage Mice And Key Boards

Accessories Phone Accessories Audio/ Video Accessories MP3 Players Accessories Head Phone Remote Controls Mother And Child Care Power Solutions

Personal Care This includes Mens Shaving

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Mens grooming Female depilation Hair care

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.

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2.3 PRODUCT DETAIL:

Philips India ltd. is the Indian counterpart of Royal Philips Electronics. Originally established as Phili

Electrical Co. (India) Pvt. Ltd, Philips was born in India in Kolkata in 1930. With the tag line of "Sense an

Simplicity", Philips is introduced to the Consumer as a Company that adheres to its promise of deliverin Products and Services that make lives simpler and easier. Philips enjoys the position of a household name

Consumer Products In India. Any of the Appliance or Electronic item can be purchased from a Philips Deal 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

Kitchen Appliances - Blenders and Hand Blenders, Juicers and Citruspresses, Food Processors and Mixe 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 Lightin

In India. The Lighting solutions by Philips are aimed at providing state-of-art lighting technology combin

with costeffectiveness. These lighting products have applications in not just Homes but also Industrial an infrastructure based settings. The Philips Lighting Solutions cover the following spheres:

Professional Lighting - Industrial, Shops and offices, Road and Area, Hospitality, Sports Lighting, Ci 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 maintain

Research and Development System. Philips India Ltd. has Offices in all the major cities in India name Kolkata, Chennai, New Delhi, Bangalore, Pune and Gurgaon.

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The Corporate Office is situated at Mumbai. The CEO of Philips Electronics India Limited, Mr.

Ramachandran, along with the Chairman, Mr. S.M. Datta and the entire team of directors has been successf in taking Philips to new heights in Indian Consumer Appliances Market.

Juicer: HR1861/00 700W - Dishwasher-safe - Extra large capacity - Extra large feeding tube Juicer Mixer Grinder: 2 jar - Auto shut-off - 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 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

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Mens Shaving: 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 HP6609 Total body - Opti-start cap with massage - Lift and massage attachment

- Sensitive cap

2.4 : ACQUISITIONS, SUBSIDIARIES AND SPINOUTS:

AcquisitionsCompanies acquired by Philips through the years

include Amperex, Magnavox, Signetic

Mullard, VLSI, Agilent Healthcare Solutions Group, Marconi Medical Systems, ADAC Labs, AT

Ultrasound, portions of Westinghouse and the consumer electronics operations of Philco and Sylvania. Phili abandoned the Sylvania trademark which is now owned by SLI (Sylvania Lighting International) except

Australia, Canada, Mexico, New Zealand, Puerto Rico and the USA where it is owned by the Osram un

of Siemens. Formed in November 1999 as a equal joint venture between Philips and Agilent Technologie

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the light-emitting diode manufacturer Lumileds became a subsidiary of Phillips Lighting in August 2005 an

a fully-owned subsidiary in December 2006. In 2000, Philips bought Optiva Corporation, the mak

of Sonicare electric toothbrushes. The company was renamed Philips Oral Healthcare and made a subsidia of Philips DAP. In 2006 Philips bought out the company Lifeline

Systems headquarter

in Framingham, Massachusetts. In August 2007 Philips acquired the company Ximis, Inc. headquartered in

Paso, TX for their Medical Informatics Division. In October 2007, it purchased a Moore Microprocess Patent (MPP) Portfolio license from The TPL Group.

On Friday, 21 December 2007 Philips and Respironics, Inc. announced a definitive merger agreeme

pursuant to which Philips will commence a tender offer to acquire all of the outstanding shares of Respironi

for US$66 per share, or a total purchase price of approximately 3.6 billion (US$5.1 billion) to be paid in ca upon completion.

SpinoutsPolymer Vision, the maker of The Readius is a spin out from Philips Electronics. APRICO Solutions is a venture within Philips Intellectual Property and Standards.

Philips also forayed into the pharmaceuticals market in a company best known as Philips-Duphar (Dut

Pharmaceuticals). Philips-Duphar made products for crop protection, veterinary medicine and products f

human use. Duphar was sold to Solvay, now Solvay Pharmaceuticals. In subsequent years divisions have be

sold off, by Solvay, to other companies (crop protection was sold to UniRoyal, now Chemtura and t veterinary division was sold to Fort Dodge, a division of Wyeth)

2.5: SPORTS, SPONSORSHIP AND NAMING RIGHTS

Traditionally Philips has a vested interest in sports, originally as a means to provide a healthy form

recreation for its employees. In 1913, in celebration of the Centenary of Dutch independence from Franc

Philips founded a sports club called Philips Sport Vereniging (Philips Sports Club), or PSV, as it is no

known. The sports club encompasses all kinds of sports, but is currently most famous for its Premier Leag

football team and its swimming team. Philips owns the naming rights to Philips Stadium, locat in Eindhoven, which is home to Dutch football team PSV Eindhoven.

Abroad, Philips sponsors and has sponsored numerous sport clubs, sport facilities, and events. Philips recent

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(November 2008) extended its very successful F1 partnership with AT&T Williams to include many mo product groups.

Furthermore, Philips owns the naming rights to the Philips Arena in Atlanta, Georgia and to the Phili

Championship, the premier basketball league in Australia, traditionally known as the National Basketb

League. Between 1988 and 1993 Philips were also the major sponsors of The Balmain Tigers, an Australi rugby league team. In Thailand Philips is a sponsor of PEA FC.

Outside of sports Philips sponsors the Philips Monsters of Rock festival, held in many countries all over t world

2.6: Challenges Facing the Consumer Electronics Industry

With the increase in price wars due to the entry of new players in the market and increase in manufacturing capacity by some original manufacturers, the profitability and margins of the companies are adversely affected. Poor distribution network in semi-urban and rural areas. Low awareness of consumer electronics

products in rural India. Presence of gray market in consumer electronics products, especially in DVD player, music players. Companies need to increase focus on product differentiation to address various segmental specific needs.

With the increase in access to Internet information, and availability of wide range of choices, consumers ha

become quite smart. They want the product that is easy-to-handle, good in quality and low in price. Mo

importantly, consumers want some guarantee for the product that they are buying. They look for the produ that can be used for many years.

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CHAPTER 3 ANALYSIS II

3.1: PROMOTIONAL STRATEGY:

Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. Sometimes Philips should comer to market with new offerings at the time of festivals and of course with cost benefits to the customers. Giving discounts over bulk purchase also comes under this strategy. This strategy will Philips to increase their market size as well as the share and this will help to generate more and more revenue

BRAND POSITIONING
With different various products Philips has a very strong position in the mind of consumer that they provide good quality products which suits their budget.

3.2: EXPORT MARKETING-4PS:

ELECTRIC MARKET FROM 4 PS OF MARKETING

PRODUCT:-

Philips deals in good quality of electric products,right from its beginning and provide customer a valuable product and maintain a good relationship with their retailers and customers. They give first priority to the customers and due to this they are the market leader from last 8 years..But from last few years Philips is facing stiff competition from their competitor (Bajaj,Crompton,Havells) in terms of product range as well as the quality of products & they are capturing the market of Philips at a rapid speed

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PRICE:-

Philips use the strategy of Skimming Pricing to promote their products with this thing in mind costlier the better thats why all Philips products are costlier as compare to their competitor but from last few years others companys are also providing the better quality products at low cost and more warranty on their products as compare to the Philips.

PLACE:-

Philips uses the word of mouth promotion strategy because of the literacy rate is low as compare to other metro cities of INDIA.

PROMOTION:-

Promotion is an important tool for any company to survive in any national or domestic market & to promote their products Philips use word of mouth strategy which is not sufficient to capture a bigger market. To capture the bigger market Philips should go for Window Dressing, Hoardings, Offer on new products in order to capture a bigger market. During the whole survey of 60 days I havent found any board, hoardings, display board at any retail counter whereas other comapnys do so and increasing their market size day by day and this is the biggest threat for Philips and this will result to lose the market share

3.3 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

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spending about 4.5 per cent of its turnover from the rural/semi-urban areas on the Mahasangram alone.

Meanwhile, the key reason behind this initiative lies in the growing potential of the rural market. According to industry data, while in 1997-98, rural sales formed about 25 per cent of the total sales for CTVs, refrigerators and washing machines, it increased to 36 per cent in 2001-2002 and is expected to go up to as high as 41 per cent in 2006-07. Apart from initiating new marketing and distribution programmes, Philips will also be launching a range of new products during the rural initiative. Meanwhile, Philips plans to implement an innovative FMCG style marketing strategy to push its durables in the rural segment. The Mahasangram Integrated Marketing Programme is essentially about implementing a nondurables strategy marketing in a consumer durable segment. The management is planning effective use of a number of media vehicles to ensure efficient communication of the message and maximum utilization of the money spent. The advertising and marketing strategy will be a combination of above-the-line and below-the-line/ on-ground activities.

Various promotional activities which Philips plans to initiate during the Mahasangram include a series of on-ground activities such as point of sale material at retailers' counters, road-shows, mobile vans with Philips products on display and games, innovative tactics like advertising on an inland letter form or postcard (a popular form of communication in rural areas) and sponsorship of local events, among other things. On the distribution front, Philips claims to have the biggest distribution network (as compared to other consumer electronics companies) and a high degree of penetration even in the rural and semi-urban areas. The company has carried out an extensive product-wise mapping exercise over 540 districts across India. Keeping in mind the objective of extensive physical reach of 80 per cent plus, where portable audio is concerned, the company has developed a second line of activity in the distribution set-up. Also, in order to cater to volume drivers i.e., major retailers, company has identified the main retailers of each distributor and practice the Key Account Management Approach with them, so that there is a focus on improving relations, trade with these retailers, and catering to their needs. These steps have helped in developing their volume reach, geographical reach and counter share significantly. Philips is hoping that its innovative rural marketing initiative coupled with the high growth in the rural market will boost its market share.

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How Philips India doubled its sales The company launched an aggressive new advertising campaign in print, television and online. The new tagline "Sense and simplicity" showcases the new brand promises -- using technology to make life simpler and easier. Company sources say Philips is counting on the new campaign to help it grow by at least 25 per cent this year. That's in the future, but how did Philips almost double its market share in under four years? Interestingly, the company didn't adopt radically different strategies. It paid attention to what customers wanted; passed on cost benefits; and brushed up its admittedly fuddy-duddy image. According to Mr. D Shivkumar, executive director, consumer electronics, Philips, "We have managed to grow the business by focusing on the price -quality equation." The battle of perception Philips has been a household name in India for 75 years, but consumers associated the brand more with tube lights and transistors than cutting-edge technology. That's ironic, considering the company has made its mark globally as a technology leader -- it invented the cassette recorder, the compact disc and the DVD; the last in association with Sony. But a survey by advertising agency JWT, which held the Philips account from 2001 (it has recently moved to Mudra), revealed that Philips technology was seen as reliable but not state-of-the-art. Clearly, Philips needed an image makeover. It began by taking the technology route. Post-2001, advertising campaigns emphasised the company's technologically-advanced features. Philips was the first audio company to launch an MP3 player (May 2002), and it made sure its communication played that up: "Don't buy a system if it doesn't have an MP3 player." Then there was the October 2002 campaign, in which a little boy uses the power of the music system to nudge the cookie jar off the top-most kitchen shelf.

The company was constantly refining the image of the company in the minds of the consumer, making it more modern. But that wasn't enough. That's where in-store displays and promotions that demonstrated the abilities of Philips products came in. In October 2003, JWT

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broke the "Ramu kaka" ad, where the manservant inadvertently inserts a roti into the DVD player.

The tagline made the message clear: "The new Philips DVD player plays anything". The campaign proved immensely popular - it was used in other Asian countries as well -- and Philips wasn't slow in leveraging its appeal. At live demos, customers would be invited to slip rotis into the player, creating a buzz around the product and the brand.

But that would probably appeal more to families and Philips needed to reach out to the youth, its target customer base. So it went to where the action was -colleges and rock festivals. Philips set up stalls, complete with a professional DJ. Youngsters were invited to man the console, while the DJ gave them tips on mixing and spinning. And had huge walk-ins and could provide an involvement and experience with the brand.

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

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

Moreover, prices have been falling by 10 per cent on average every year. Of course, that's true for other brands as well but, Philips "found the sweet spot at which youngsters could buy". How did it do that? By ensuring that it was perceived neither as a price warrior like Aiwa or Sansui nor prohibitively expensive -- Sony products are on average 10 per cent more expensive. Philips also brought in help from outside. In late 2002, it tied up with Countrywide and Citibank to provide accessible finance schemes for its products. Compared to equal monthly installments of about Rs 1,000 earlier, the new schemes let customers pick up state-of-the-art sound machines for as little as Rs 333 a month - that too, without a down-payment. Has that helped? Consider: Philips entered the minis segment only in 2000, a year behind Sony. But it's now carved up the market with Sony, with 45 per cent share each. The company also paid close attention to customer feedback. It has ramped up the number of service centres across the country to 190, from 125 two years ago. Today, over 900 technicians now attend to complaints, up from 600 in 2002.

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CHAPTER 4 ANALYSIS III

4.1 PEST ANALYSIS:
Mission statement The Philips Inc. is a company with 115 years of history. It has made its way from a small carbon-filament lamps producer to the one of the world's biggest electronics companies. A mission the company was devoted to all this years improving the quality of people's lives through the timely introduction of meaningful technological innovations. (Phillips, 2007) The mission statement shows that the business of the company is developing new technologies which can be used in day to day life in order to make it easier and more comfortable. It is also clearly seen from the mission that the customers of the company are mostly individuals, who buy the product for their own use. According to the statement the customer should probably be seeing the company as a provider of advanced and user friendly technology that improves their lives. The business will be providing solutions in the areas of healthcare, lifestyle and enabling technology and should be the most admired company in the industry. PEST Analysis of Philips company

All business entities are under the pressure of different factors inside and outside the organization. In order to survive in the global environment, companies in building their strategies have to aware of the outside forces such as political and economic situation inside the country and in the global community, new technologies in the market, socio and cultural influences.

1.POLITICAL FACTORS Political factors that affect the activity of an organization are: tax policy, employment laws, environmental regulations, trade restrictions and political stability inside the country. As company maintains sales and service organizations as well as manufacturing operations in many different countries it must deal with a great variety of laws and policies, which

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additionally change all the time. For example in many countries of European union now taking place dynamic changes in employment law.(Federation of European employees, 2007) Also many countries are now environment concerned and try to reduce pollution. Philips as a large manufacturer can face some problems because of that. 2.ECONOMIC FACTORS At the present time a lot of countries where Philips Company has its business are experiencing high levels of economic growth at the moment. For example according to bbc.co.uk, the economy of the country grew at the fastest rate for two years in the second quarter of 2006 and as it was reported by Office for National Statistics (ONS) reached 2.6% in August 2006. Inflation rate has increased to 2.5% in June 2006; however, the average inflation in 2006 is likely to around 3% that is normal for UK. Because of the high economic growth inflation and interest rates are likely to rise. In 2006 the Bank of England kept the interest rate at 4.5%. For Philips high economic growth means the increasing purchasing power of the population that is desirable for the company. 3.SOCIO-CULTURAL FACTORS: The social and cultural influences on business vary from country to country, region to region. It is very important that such factors are considered. Philips operates in many countries therefore they are in vast and diverse socio-cultural arena. It is important for Philips to adapt to these changes in customers expectations from region to region and being able to cater according to them. People in developed countries now also start to pay more attention to the culture of a company, and that fact that Philips is a highly ethical company, which cares about its customers and suppliers will win them more respect from people. Another point about social factor is that people in many countries become wealthier so more now will be able to afford prices of new technology. 4.TECHNOLOGICAL FACTORS: Technology is vital for competitive advantage, and is a major driver of globalization. The main benefits of a better technology are that it allows cheaper and better standard of quality for products and services. It also offers to consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc.

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Philips Company is very dependant on technology. New innovations can significantly improve operations of the company. On the other side if competitors of the company will become more technologically advanced Philips can loose its market share.

4.2 SWOT ANALYSIS :

SWOT Analysis of Philips Every company faces few challenges and weaknesses in its existence, therefore, to know companys strengths and opportunities is desirable to overcome any difficulties that may arise and successfully predict any trends. SWOT Analysis is a marketing tool that gathers and analyse these information about the company. With help of SWOT, which stands for Strengths Weaknesses, Opportunities and Threats, Philips would know how to deliver their products and right services to its customers effectively.(Kotler, P. 2005)

1.INTERNAL STRENGTHS: Philips has a recognizable and very strong brand image that was established thorough the years. The core values and the whole icon of Philips are based on the quality, value for money, innovation, and superiority of the service and on the trust. The product range is wide, modern and of good quality. Philips products and solutions are known to be advanced, easy to use, and designed to meet the needs of all users. Company also has strong intellectual property position as it has a lot of widely used technologies patented as their own innovation. Philipss another strength is operations excellence and flexibility of the firm, which helps it to deal with changes. Well built customer and supplier relationships also help the company. Philips is the worlds leading lighting supplier. Strategic alliances are an important part of business at Philips. They enable us to bring new products to the market that we would not have been able to develop on our own. Philips combines with a number of leading global companies to build advanced products and services that touch the lives of people everyday.

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2.INTERNAL WEAKNESSES: Philips Inc. operates in fields where competitiveness is very concentrated. However it has strong customer base it should not underestimate the emerging customers; it should keep up with new trends and updating the existing products, actively listen new proposals from customers and staff and continue to promote its brand image via effective advertisements. Another weakness is that Philips employs a huge number of people which work in a variety of different countries. Therefore the company experiences some problems in sharing information between employees and controlling operations of different businesses. New, efficient and less complicated ways of transmitting information between the stores, manufacturing premises, head office and various departments should take place in order to communicate successfully and deliver the most effective customer service.(Philips Company, 2007) 3.EXTERNAL OPPORTUNITIES: Philips continuously explores new ways to improve products and to offer innovative products to its consumers. It have created a program through which higher and higher quality levels in all products and services will be reached. Technological products of Philips can be more design oriented.Creating jolly, modern and convenient stores with place to rest and have a coffer is another project, which Philips can undertake.Redevelopment will create good atmosphere in the stores, the changes would encourage customer to stay longer in the stores. 4.EXTERNAL THREATS: More retailers have understood where the market trends are going; quality, value is the key in today retail sector. Many companies started to produce the same quality products on a cheaper price. Another challenge that not only Philips faces is fast changing environment, where new products are introduced within small space of time. Therefore, keeping track with new trends and products is essential for the business. Spending habits and way how people shop is changing rapidly. People shop more on line, looking for promotions or wait until the sale period.

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Therefore, improve on-line facilities; friendlier web page would boost the sale and maintaining small promotions in the stores would invite higher number of visitors into the stores.

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CHAPTER 5 CONCLUSION/RECOMMENDATION
CONCLUSION:
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. Philips is the largest electronics company in the world. They made a positive transformation over the years and became market leader. The company has been profitable over the last couple years except in years of global recession Research Design

This is a Descriptive type of research which involve the collection of information about the company. Sample Technique:-

The probability sampling has used to collect the date for research. RECOMMENDATION : 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.

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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/ www.india.philips.com

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