CONSUMER

BEHAVIOR
TOWARDS PHILIPS
LED
By

CHAPTER-1
INTRODUCTION TO THE
INDUSTRY

LIGHT EMITTING DIODE

The electricity used over the lifetime of a single

Incandescent bulb costs 5 to 10 times the original
Purchase price of the bulb itself.
Light Emitting Diode (LED) and Compact Fluorescent
Lights (LED) bulbs have revolutionized energy-efficient lighting.

1.1. HISTORY OF LED:

In 1907, British scientist Henry J. Round discovered the physical effect of electroluminescence,
an optical and electrical phenomenon in which a material emits light in response to an electric
current passed through it or to a strong electric field. The light produced was very dim and not
bright enough to stimulate further research.
In the early 1960s, groups at RCA, IBM, GE and MIT were working actively on LEDs. Among
the first commercially available LEDs was an 870 nm IR device sold by Texas Instruments for
$130 US. Around the same time, GE distributed red LEDs through the Allied radio catalog for
$260 US. Obviously, LEDs were quite expensive and sold only in low volumes. In 1964, IBM
used GaAsP LEDs on circuit boards in an early mainframe computer. This is significant for the
first time LEDs provided a compelling value proposition to both manufacturer and end-user over
conventional lighting technology. As an on-off indicator light, the LED could be mounted
directly onto the circuit board, used less power, and had a seemingly infinite lifetime, thus
eliminating maintenance. Many of these virtues have been the cornerstone for displacements of
other light sources as LEDs have become more efficient, less costly and brighter.

Nick Holonyak Jr. employed in General Electrical, Developed in 1962 First light emitting diode
that emitted light in the visible part of the frequency range. It was a red LED, in 1972, M. George
Craford, Who was a graduate student of Holonyak invented the first yellow LED and brighter red
LED.
Through the 1990s, Nakamura and other researchers led advances in the InGaN LED technology,
which led to the wide scale commercialization of blue and green solid-state sources as well as the
development of white LEDs. With a full palette of colors, LEDs quickly began displacing
conventional lamps in many colored lighting applications.
Cell phones and other electronic devices are the highest volume products utilizing LEDs today.
One estimate indicates that 30% of the traffic signals in the U.S. utilize LEDs, large screen
(Times Square like) LED TVs are prevalent, and numerous companies have developed FAA
certified airport and other marker lights.
Adding digital control to colored LEDs has launched a new dimension in architectural lighting;
many of the 2003 IALD design awards utilized colored LEDs. With the advent of a full color
range of the high power LEDs, more advanced architectural designs and stage and studio lighting
are developing. 11 of the 14 stages at the June 2004 Glastonbury, UK, pop festival were lighted
with high power LEDs, with almost 196 color-changing RGB high-power LED Pixel Par
luminaires by James Thomas Engineering spotlighting the main stage via a novel video control
system that pixilated each luminaire. In all of the above examples, the colored LEDs
significantly reduce power consumption, since the filtering can waste up to 90% of the white
light.
In 2012, the LED light source market generated about US$ 100 million, said Loomba.LEDs
remain a minority in the Indian market with only three to five percent market share. In the
residential market, LEDs are mostly seen in new constructions, with existing LED users are less
willing to convert to LED lighting.
The Indian market continues to be mainly driven by government which makes up 51 percent of
all LED orders. The streetlight market, for instance is benefiting from lighting overhaul in cities
of old lights to LED. While in the commercial lighting segment there is a heightened interest in
industrial lighting and in down lighters, which in India are vigorously shifting to LED as a
source. In addition, the Indian government has proposed major measures to encourage LED
3

industry (a) Setting up LED Fabs included under MSIPS (Modified Special Incentive Package
Scheme) to provide cash grant of up to 20% of the cost of project to companies that set up
semiconductor fab in India subject to a minimum initial investment of approximately US$ 50
million. There is no discrimination whatsoever on account of the origin of the investment
whether Indian or foreign, both are subject to same conditions and get the same incentives. (b)
Notification of LEDs under the Preferred Market Access Policy of Government of India, under
which the Government of India shall provide 50 percent of tendered quantity of LED based
product purchases by Government of India to companies who do at least 50 percent value
addition through manufacturing in India, while doing so there is no preference on the tender
price or specifications for the tender. This enables companies manufacturing LEDs within India
to gain access to local markets.
To reduce reliance on LED imports, a total of US$ 2.5 billion has been injected into two major
semiconductor subsidy programs, including the ST Microelectronics Fab in Gujarat, very close
to the fab installed by De Core Science & Technologies Ltd. in Gandhinagar, Gujarat
Most of the LED chips in the country are still imported with Philips and Nichia dominating the
LED industry. Philips has a 65 percent share in the lighting market in India, said Loomba.
Even the GaN LED market is dominated by large foreign players including Cree, Nichia,
Samsung and Osram. Ever light and Epistar have also started appearing in the market though the
market share is not substantially large in lighting market.

1.2.

LED Introduction:

LED stands for Light Emitting Diode. LED is a semiconductor device that generates light when
electrical current travels through the device. The strength of light produced by a single LED is
meager and hence multiple LEDs are to be used for practical purposes. A proper design of LED
bulbs ensures durable and efficient lighting. LED bulbs emit light with colors of red, green, blue
or amber. LED bulbs do not generate white color. To generate white light, different color LEDs
are mixed or a phosphor material cover, capable of changing the color to white is used.

Special characteristics:
LED bulbs and useful life: LEDs normally do not burn out or fail, but the strength of light
produced decreases over a period of time. This feature is called lumen depreciation. The life
time of LED product is decided based on the duration by which the strength of light decreases
over 30% of its original strength.
4

LED bulbs require direct current: LED lighting work on direct current (DC) sources.
Whenever used in alternate current (AC) sources, special circuits are required to convert AC
current to DC current.

LED bulbs and heat: The heat generated in LED lights must be drawn out from the LEDs. In
normal lights, heat generated is radiated. But, in LED bulbs, a heat sink is used to absorb the heat
generated and radiate to surroundings.

LED bulbs do not require warm up time: LED bulbs reach full brightness without any time
delay unlike in the case of most fluorescent bulbs. But the strength of light output of single LED
light is less compared to other types of lightings and hence multiple LEDs are used together to
form LED lightings.

LED lightings: Comparison with incandescent and LEDs:

Incandescent

CFL

Color

Yellowish Hue

White

Wide range from

purple to red and a
spectrum of white
color

Efficiency

Less

More

Most

Energy Usage

High

Less (75% Less Than

Incandescent Bulbs)

Least

Power Cost

High

Less

Least

Purchase Cost

Least

More

Highest

Leds

Lifetime

Less

6 Times More Than

Incandescent Bulbs

Longer, 30times
Longer Than
Incandescent Bulb
And 5 Times Nire
Than CFLs, Lasts
More Than 15 Year

1.3. LED Growth rate in India:

Figure1

1.4.

Market Players:

HAVELLS INDIA LTD

ORPAT ELECTRONICS

PHILIPS ELECTRONICS INDIA LTD.

CROMPTON GREAVES

LIMITED

BAJAJ ELECTRICALS LTD.

OSRAM LIGHTING

CHAPTER-2

COMPANY PROFILE

1891 - 1915

From light revolution to product evolution

Philips began by making carbon-filament lamps and quickly became one of the largest producers
in Europe. From the outset, Philips was an export-oriented company. Large orders were won in
Russia, including one from the Tsar to light up the Winter Palace. In 1912, Philips became a
limited company, with publicly traded shares, listed on the Amsterdam Stock Exchange. With
developments in new lighting technology fueling a steady program of expansion, Philips
established a research laboratory in 1914 the world-renowned NatLab to study physical and
chemical phenomena and stimulate product innovation.

1915 1925

Innovation and diversification: X-rays and radio reception

In 1916, Philips received royal recognition on its 25th anniversary. Two years later it introduced
a medical X-ray tube. This marked the point when the company began to diversify its product
range and to systematically protect its innovations with patents in areas stretching from X-ray
radiation to radio reception. During this period, sales organizations were established all over
Europe and in countries like China, Australia and Brazil.

1925 1940

The first radios, televisions and electric shavers

In 1927, Philips began producing radios, and within five years it had sold one million sets and
become the worlds largest manufacturer of radios and radio tubes. A year later, it produced its
100-millionth radio valve. In 1933 the company started production of medical X-ray equipment
in the United States. Having been involved in experiments in television since 1925, Philips
showcased its first television at the Annual Fair in Utrecht in 1938. One year later it launched its
pioneering rotary electric shaver, the Philishave.

1940 1970

A succession of technology breakthroughs

Science and technology underwent tremendous development in the 1940s and 1950s, with
Philips Research laying the basis for later ground-breaking work in transistors and integrated
circuits. The year 1949 saw the introduction of the Philips Synchrocyclotron, enabling research
into the treatment of malignant tumors. The company also continued to make major contributions
to the recording, transmission and reproduction of television pictures. And in 1963 it introduced
the Compact Audio Cassette, setting the global standard for tape recording.

10

1970 1980

Continued product innovation for images, sound and data

The flow of exciting new products and ideas continued throughout the 1970s. In a decade when
energy management was high on the agenda, Philips Research contributed to the new energysaving lamps. Key breakthroughs were also made in the processing, storage and transmission of
images, sound and data. These subsequently led to the invention of optical telecommunication
systems, the LaserVision optical disc, and the highly successful Compact Disc.

1980 1990

Technological landmark: the Compact Disc

The 1982/83 market launch of the Compact Disc developed together with Sony represented
another technological landmark for Philips. This new digital format delivered pure sound without
background noise. Key to CDs success was the companies decision to grant manufacturing
rights to other producers, immediately establishing CD as a new global standard. Other
milestones from this period include the production of Philips' 100-millionth TV set in 1984 and
the founding of Philips China Ltd in 1985.

1990 2000

Far-reaching changes and new successes

The 1990s was a decade of significant change for Philips, as the company simplified its structure
and reduced the number of areas in which it operated. In healthcare, Philips adopted a new,
people-centric approach to product design, the aim being to make medical systems easier for
clinicians to use, and more comfortable for patients. Building on the success of its Compact Disc
technology, Philips again partnered with Sony to introduce the DVD in 1997. This groundbreaking innovation went on to become the fastest-growing home electronics product in history.

21st century

Enduring commitment to innovation

Moving into a new century, Philips remained fully committed to innovation. Reflecting its focus
on health and well-being, the company introduced the Ambient Experience in 2002. This
innovative solution improves hospitals workflow and patient care by integrating architecture,
design, dynamic lighting and sound. Other milestones include, in 2006, the first commercial
launch of a 3D scanner, providing unprecedented image quality for CT scans. In 2012, Philips
introduced the AlluraClarity interventional X-ray system, which offers excellent visibility at low
X-ray dose levels. Recent innovations include the development of the Philips Smart Air Purifier
and solutions for minimally-invasive surgery.

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2.1

LIGHTING SEGMENT

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 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 Asia-Pacific, 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
center 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.

12

Behaviours
Vision
Mission

In
a world
complexity
increasingly
touches
every
aspect ofofour
daily lives,innovations."
we will lead
"Improve
thewhere
quality
of peoples
lives through
timely
introduction
meaningful
Eager to win
in bringing sense and simplicity to people.

Take ownership

Team up to excel

2.2

BRAND:

Philips is more than just a company name its a brand that promises an experience to people.
Whether it was lighting lives in 1891 when we introduced our first incandescent light bulb, to
saving lives with the Heart Start defibrillator, people have always been at the heart of Philips.
Prior to the launch of sense and simplicity, we did not have a consistent way within our
organization to deliver a one-Philips brand experience to customers. The launch of our brand
promise - sense and simplicity - in 2004 was an important milestone in our brand journey. This
step change guided the organization to deliver a consistent, differentiated brand experience;
helping us to build our brand in the hearts and minds of people.
This brand promise encapsulates our commitment to deliver solutions that are advanced, easy to
use, and designed around the needs of all our users and customers.
13

2.3

SWOT ANLYSIS

STRENGTH

Assets leverage
Effective communication
High R & D.
Innovation
Loyal customers
Market share leadership
Strong team management
Strong brand equity
Strong financial position
Reputation management
LED technology

WEAKNESS

Weaker distribution network

Price
Poor business level strategy
Not get emerge monopoly benefit
as a pioneer.

THREATS
OPPORTUNITY

Government regulations and green

push
Rising electricity price

2.4

Competitions
Cheaper technology
Economic slow down
Exchange rate fluctuations
Lower competitors or imports
Price wars
Budgetary & taxation policy.

PHILIPS LED GROWTH IN INDIA:

14

Comparable sales growth of 3% particularly driven by improvements in North America,

Central & Eastern Europe and India

EBITA, excluding restructuring and acquisition-related charges and other items,

amounted to EUR 501 million, or 8.4% of sales, compared to 7.9% of sales in Q2 2014

EBITA totaled EUR 450 million, or 7.5% of sales, compared to 7.4% of sales in Q2 2014

Net income amounted to EUR 274 million, compared to EUR 243 million in Q2 2014

Free cash outflow was EUR 30 million, compared to a free cash inflow of EUR 214
million in Q2 2014.

Separation process is progressing well.

15

CHAPTER-3

THEORETICAL ASPECT OF
THE STUDY

16

Marketing is the science of meeting the needs of a customer by providing valuable products to
customers by utilizing the expertise of the organization, at same time, to archive organizational
goals.
According to The American Marketing Association, Marketing is the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
With this definition, it is important to realize that the customer can be an individual user, a
company, or several people who contribute to the purchasing decision. The product can be a hard
good, a service, or even an idea anything that would provide some value to the person who
provides an exchange. An exchange is most often thought of as money, but could also be a
donation of time or effort, or even a specific action. A producer is often a company, but could be
an individual or non-profit organization.

3.1

CONSUMER BUYING BEHAVIOUR:

The decision processes and acts of final household consumers associated with evaluating,
buying, consuming, and discarding products for personal consumption
Consider the purchase an automobile. You generally will not consider different options until
some event triggers a need, such as a problem needing potentially expensive repair. Once this
need has put you "on the market", you begin to ask your friends for recommendations regarding
dealerships and car models. After visiting several dealerships, you test drive several models and
finally decide on a particular model. After picking up your new car, you have doubts on the way
home, wondering if you can afford the monthly payments, but then begin to wonder if instead
you should have purchased a more expensive but potentially more reliable model. Over the next
five years, the car has several unexpected breakdowns that lead you to want to purchase a
different brand, but you have been very happy with the services of the local dealership and
decide to again purchase your next car there.

17

In this particular case, the following generic model of consumer decision making appears to
hold:
=====>need recognition
=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>post purchase Behaviour
Now consider the purchase of a quart of orange juice. You purchase this product when you do
your grocery shopping once per week. You have a favorite brand of orange juice and usually do
your grocery shopping at the same store. When you buy orange juice, you always go to the same
place in the store to pick it up, and never notice what other brands are on the shelf or what the
prices of other brands are. How is it that the generic model above works differently in this
second scenario? Why does it work differently?
Why would we generally need the ministrations of a sales person in the sale of a car, but we
generally do not need the help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort into
information search or to consider alternative products? How is it that the marketer of your brand
got you to ignore alternative competing brands? What is the involvement of salespeople in sales
promotions that might be associated with products such as orange juice?
Consumer Behavior researchers are not so interested in studying the validity of the above generic
model, but are more interested in various factors that influence how such a model might work.
3.2 GROUP INFLUENCES ON CONSUMER BEHAVIOUR
Culture
the set of basic values, beliefs, norms, and associated Behaviors that are learned by a member of
society .Note that culture is something that is learned and that it has a relatively long lasting
effect on the Behaviors of an individual. As an example of cultural influences, consider how the
salesperson in an appliance store in the U.S. must react to different couples who are considering
18

the purchase of a refrigerator. In some subcultures, the husband will play a dominant role in the
purchase decision; in others, the wife will play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors as occupation, education,
and wealth.
Reference Groups
Groups, often temporary, that affects a person's values, attitude, or Behaviors

E.g., youre Behaviors around colleagues at work or friends at school are probably
different from your Behaviors around your parents, no matter your age or stage in the
family life cycle. If you were a used car salesperson, how might you respond differently
to a nineteen year old prospect accompanied by her boyfriend from one accompanied by
two girlfriends?

Opinion leader
A person within a reference group who exerts influence on others because of special
skills, knowledge, personality, etc.
o You might ask the webmaster at work for an opinion about a particular software
application. Software manufacturers often give away free beta copies of software
to potential opinion leaders with the hope that they will in turn influence many
others to purchase the product.

Family
A group of people related by blood, marriage, or other socially approved relationship

Environmental/ Situational Influences on Consumer Behavior

Circumstances, time, location, etc.
19

Do you like grapes? Do you like peas?

You might like grapes as a snack after lunch, but probably not as a dessert after a fancy meal in a
restaurant. You might like peas, but probably not as a topping on your
Pancakes. Everyday situations cause an interaction between various factors which influence our
Behaviors. If you work for tips (a form of incentive related to commission) as a waiter or
waitress, you must certainly be aware of such interactions which can increase or decrease your
sales.
If you are doing your Saturday grocery shopping and are looking for orange juice, you are
probably much more sensitive to price than if you stop at the quick store late at night, when you
are tired and cranky, after a late meeting at the office. A prospect shopping for a new automobile
while debating the wisdom of a necessary expensive repair to his car might be more interested in
what cars are on the lot than in shopping for the best deal that might involve a special order.
Internal Influences on Consumer Behavior
Personality
A person's distinguishing psychological characteristics that lead to relatively consistent and
lasting responses to stimuli in the environment
We are each unique as individuals, and we each respond differently as consumers. For example,
some people are "optimizers" who will keep shopping until they are certain that they have found
the best price for a particular item, while other people are "satisfices" who will stop shopping
when they believe that they have found something that is "good enough." If you are a salesperson
in a retail shoe store, how might you work differently with these two personalities?

20

Lifestyle and Psychographics

lifestyle is a pattern of living expressed through a person's activities, interests, and

opinions

Psychographics is a technique for measuring personality and lifestyles to developing

lifestyle classifications.

Motivation: Multiple motives

Consumers usually have multiple motives for particular Behaviors. These can be a combination
of:

manifest
known to the person and freely admitted

latent
unknown to the person or the person is very reluctant to admit

3.3

MARKETING MIX:

The marketing mix is a business tool used in marketing products. The marketing mix is often
crucial when determining a product or brand's unique selling point (the unique quality that
differentiates a product from its competitors), and is often synonymous with the 'four Ps': 'price',
'product', 'promotion', and 'place'. However, in recent times, the 'four Ps' have been expanded to
the 'seven Ps' with the addition of 'process', 'physical evidence' and 'people'.

The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing
Association presidential address. However, this was actually a reformulation of an earlier idea by
his associate, James Culliton, who in 1948 described the role of the marketing manager as a
"mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares
his own recipe as he goes along, sometimes adapts a recipe from immediately available
ingredients, and at other times invents new ingredients no one else has tried.
21

22

Four Ps
The 'four Ps' consist of the following:

Product - A product is seen as an item that satisfies what a consumer needs or wants. It is
a tangible good or an intangible service. Intangible products are service based like
the tourism industry & the hotel industry or codes-based products like cell phone load and
credits. Tangible products are those that can be felt physically. Typical examples of massproduced, tangible objects are the motor car and the disposable razor. A less obvious but
ubiquitous mass produced service is a computer operating system.
Every product is subject to a life-cycle including a growth phase followed by a maturity
phase and finally an eventual period of decline as sales falls. Marketers must do careful
research on how long the life cycle of the product they are marketing is likely to be and focus
their attention on different challenges that arise as the product moves through each stage.
The marketer must also consider the product mix. Marketers can expand the current product
mix by increasing a certain product line's depth or by increase the number of product lines.
Marketers should consider how to position the product, how to exploit the brand, how to
exploit the company's resources and how to configure the product mix so that each product
complements the other. The marketer must also consider product development strategies.

Price The price is the amount a customer pays for the product. The price is very important
as it determines the company's profit and hence, survival. Adjusting the price has a profound
impact on the marketing strategy, and depending on the price elasticity of the product, often;
it will affect the demand and sales as well. The marketer should set a price that complements
the other elements of the marketing mix.
When setting a price, the marketer must be aware of the customer perceived value for the
product. Three basic pricing strategies are: market pricing, marketing penetration
pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of
competing products) and the 'differential value' (the consumer's view of this product's
attributes versus the attributes of other products) must be taken into account.
23

Promotion - represents all of the methods of communication that a marketer may use to
provide information to different parties about the product. Promotion comprises elements
such as: advertising, public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and
Internet advertisements through print media and billboards. Public relations is where the
communication is not directly paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any
apparently informal communication about the product by ordinary individuals, satisfied
customers or people specifically engaged to create word of mouth momentum. Sales staff
often plays an important role in word of mouth and public relations.
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 less than four
years? Interestingly, the company didn't adopt radically different strategies.

Place - refers to providing the product at a place which is convenient for consumers to
access. Place is synonymous with distribution. Various strategies such as intensive
distribution, selective distribution, exclusive distribution and franchising can be used by the
marketer to complement the other aspects of the marketing mix.

24

CHAPTER-4

RESEARCH METHODOLOGY

4.1

OBJECTIVES OF THE RESEARCH:

25

Surat is the most developed city in southern Gujarat and to capture this market and establish
themselves as a leader is the prime aim of all the companies so as to have an psychological
impact on the people and to have an edge over other lighting companies were not doing great
business in This region from the very beginning. It was so because the prices of the product were
high and the customers were not fully aware of proper advertisement facility, which is key factor
in influencing a consumer. Earlier Philips product was almost enjoying the monopoly market but
now many companies entered the market with various promotional schemes and changing the
market scenario.
Today all the companies namely Philips, Orpat, Bajaj, Wipro, Surya etc. are trying to grab the
market. According to research, Philips has the largest market share in India.
Every study is conducted with key objectives and aims kept in the fore. Without aims and
objectives the study is like a ship without radar. So aims and objectives of this study are.
1. To understand the awareness level of Philips and Philips LED.
2. To know how satisfied are customers and retailers with the products they
3.
4.
5.
6.

purchase and the services provided by the company.

To find out what the customer and the retailer wants from Philips LED.
To know the market shares of Philips LED.
To know the perception of customer regarding the quality of Philips LED.
To know the most influential factors that influences the customer behaviour
towards Philips LED.

26

4.2

RESEARCH DESIGN

Research methodology is a way to systematically solve the research problem. The research
methodology included various methods and techniques for conducting a research. Marketing
Research is a systematic design, collection, analysis, and reporting of data and finding relevant
solution to a specific marketing situation or problem. Sciences define research as the
manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or
verify knowledge, whether that knowledge aids in construction of theory or in practice of an art.

Research is thus, an original contribution to the existing stock of knowledge marketing for its
advancement, the purpose of research is to discover answers to the questions through the
application of scientific procedure.

My research project has a specified framework for collecting the data in an effective manner.
Such framework is called Research Design. The research process which was followed by me
consisted following steps.

Research Problem
Research Objective
Information Requirement
Choice Of Research Design
Research Instruments Used
Products & Sample Size
Field Work

Defining the problem & Research Objectives

27

It is said, A problem well defined is half solved. The step is to define the project under
study and deciding the research objective. The definition of problem includes Consumer
Buying Behaviour towards PHILIPS LED

Developing the Research Plan:

The second stage of research calls for developing the efficient plan for gathering the
needed information. Designing a research plan calls for decision on the data sources,
research approach, research instruments, sampling plan and contacts methods. The
research is descriptive in nature and is aimed at analysing the consumer behaviour
towards PHILIPS LED.

The development of Research plan has the following Steps:

a.)

Data Sources

Two types of data were taken into consideration i.e. Primary data and Secondary data. My
major emphasis was on gathering the primary data. The secondary data has been used to
make things more clear.
i.

Primary Data: Direct collection of data from the source of information, including
personal interviewing, mail survey.

ii.

Secondary Data: Indirect collection of data from sources containing past or recent
information like, Annual Publications, Books, Newspaper and Magazines etc.

Research Approach

Surveys are best suited for Descriptive Research. Surveys are undertaken to learn about
peoples knowledge, beliefs, preferences, satisfactions and so on and to measure these
magnitudes in the general public. Therefore I have done Descriptive Research Process.

Research instrument

A close friend questionnaire was constructed for my survey. A Questionnaire consisting of a

set of questions was presented to respondents for their answers.

28

Sampling method: here I have used convenience non probability sampling method.
a.) Sampling Plan
The sampling plan calls for three decisions.
i.

Sampling unit: Who is to be surveyed?

The target population must be defined that has to be sampled. It is necessary so as to
develop a sampling frame so that everyone in the target population has an equal
chance of being sampled. The sampling unit of this project was Customer who is
using LED.

ii.

Sample Size: How many people have to be surveyed?

Generally large sample gives more reliable results than small samples. The sample
consisted of 100 respondents. The sample was drawn from 100 end users customers
people having different educational qualifications, occupations and age group. The
selection of the respondents was done on the basis of simple random sampling. The
sample was drawn from people having different educational qualifications,
occupation and age groups.

Contact Methods
Once the sampling plan has been determined, the question is how the subject should be
contracted i.e. by telephone, mail or personal interview. Here in this survey, I have contacted the
respondents through personal interviews and mail.

Collecting the information

The collection of data is a tedious task. For conducting any sort of research data was needed.
So for my research, there was plenty of primary data and for increasing the validity of
information collected, some books, journals, pamphlets, information about the company were
studied and taken into considerations. After this, I have collected the information from the
respondents with the help of questionnaire.

29

a) Collection of Primary Data: Primary Data is the data collected from the original source.
In my survey and study, there was optimum availability of primary data because every
aspect was witnesses carefully at each point. Questionnaire and personal interviews and
mail survey were the main instruments, which were used for collecting primary data.
b) Collection of Secondary Data: Secondary Data is the one which has already been
collected by someone else. The source of secondary data was some related books and
websites related to the company. The competent staff of the company helped me a lot in

providing information about the company.

Analyse the Information
The next step is to extract the pertinent findings from the collected data. I have tabulated
the collected data and developed frequency distributions. Thus the whole data was
grouped aspect wise and was presented in tabular form. Thus, frequencies and
percentages were prepared to render impact of the study.

Presentation of findings:
This is the last and important step in the research process. The findings are presented in
the form of graphs, pie charts, conclusions, suggestions and recommendations after data
analysis.

LIMITATIONS OF THE STUDY

1) The possibility of respondents responses being biased cannot be ruled out.
2) Limited access to secondary data pertaining to Philips performance in other regions or
any other information was another problem in finding a correct response.
3) Since a smaller sample was chosen so it may not be true representative of population
under study.
4) Most of the times people dont give appropriate information.
5) Mostly respondent dont want to give accurate information and act rudely.
6) The survey was to be conducted in a limited span of time (6 weeks) which also posed a
limiting factor.
7) The retailers are so busy in their business so that they did not show actual picture of the
situation.

30

CHAPTER-5
DATA ANALYSIS

Penetration:
31

Living

Rural

Urban; 44%

Urban

Rural; 56%

Usage of Kind of Bulbs:

8
7
6
5
4
3
2
1
0

60 watt

40 Watt

Zero Watt

Tube Light

Area

32

CFL

LED

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Rural

31.3

31.3

31.3

Urban

11

68.8

68.8

100.0

Total

16

100.0

100.0

Heard LED
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

14

87.5

87.5

87.5

No

12.5

12.5

100.0

16

100.0

100.0

Total

Sixty
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

43.8

43.8

43.8

No

56.3

56.3

100.0

16

100.0

100.0

Total

33

Forty
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

10

62.5

62.5

62.5

no

37.5

37.5

100.0

16

100.0

100.0

Total

34

Zero

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

56.3

56.3

56.3

No

43.8

43.8

100.0

16

100.0

100.0

Total

Tube
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

12

75.0

75.0

75.0

No

25.0

25.0

100.0

16

100.0

100.0

Total

35

LED
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

12

75.0

75.0

75.0

No

25.0

25.0

100.0

16

100.0

100.0

Total

36

LED
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

10

62.5

62.5

62.5

NO

37.5

37.5

100.0

Total

16

100.0

100.0

Home
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

A one family house detached

43.8

43.8

43.8

A one family house attached

37.5

37.5

81.3

2,3 or 4 apartments

12.5

12.5

93.8

5 or more apartments

6.3

6.3

100.0

16

100.0

100.0

Total

37

Life time of Bulb

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

1.00

18.8

18.8

18.8

2.00

31.3

31.3

50.0

3.00

12.5

12.5

62.5

4.00

12.5

12.5

75.0

5.00

12.5

12.5

87.5

7.00

12.5

12.5

100.0

Total

16

100.0

100.0

Power of Bulb

38

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

1.00

12.5

12.5

12.5

2.00

25.0

25.0

37.5

3.00

18.8

18.8

56.3

4.00

25.0

25.0

81.3

5.00

18.8

18.8

100.0

Total

16

100.0

100.0

Color of Bulb
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

1.00

12.5

12.5

12.5

2.00

6.3

6.3

18.8

3.00

25.0

25.0

43.8

4.00

12.5

12.5

56.3

5.00

31.3

31.3

87.5

6.00

6.3

6.3

93.8

7.00

6.3

6.3

100.0

Total

16

100.0

100.0

39

Efficiency Of Bulb
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

.00

6.3

6.3

6.3

1.00

18.8

18.8

25.0

2.00

18.8

18.8

43.8

3.00

18.8

18.8

62.5

4.00

25.0

25.0

87.5

6.00

6.3

6.3

93.8

7.00

6.3

6.3

100.0

Total

16

100.0

100.0

40

Size of Bulb
Frequency

Valid

Percent

Valid Percent

Cumulative Percent

.00

12.5

12.5

12.5

1.00

6.3

6.3

18.8

2.00

18.8

18.8

37.5

4.00

18.8

18.8

56.3

5.00

43.8

43.8

100.0

Total

16

100.0

100.0

Electric expense

41

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

500.00

12.5

12.5

12.5

600.00

6.3

6.3

18.8

700.00

12.5

12.5

31.3

750.00

6.3

6.3

37.5

800.00

12.5

12.5

50.0

900.00

6.3

6.3

56.3

1000.00

12.5

12.5

68.8

1300.00

6.3

6.3

75.0

1500.00

6.3

6.3

81.3

1800.00

6.3

6.3

87.5

2000.00

6.3

6.3

93.8

2500.00

6.3

6.3

100.0

16

100.0

100.0

Total

Surya

42

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

11

68.8

68.8

68.8

No

31.3

31.3

100.0

16

100.0

100.0

Total

Surya
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

11

68.8

68.8

68.8

No

31.3

31.3

100.0

16

100.0

100.0

Total

Philips

43

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

15

93.8

93.8

93.8

No

6.3

6.3

100.0

16

100.0

100.0

Total

Anchor
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

18.8

18.8

18.8

No

13

81.3

81.3

100.0

Total

16

100.0

100.0

44

Sysca
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

18.8

18.8

18.8

No

13

81.3

81.3

100.0

Total

16

100.0

100.0

45

Havells
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

56.3

56.3

56.3

No

43.8

43.8

100.0

16

100.0

100.0

Total

Osram

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Yes

12.5

12.5

12.5

No

14

87.5

87.5

100.0

Total

16

100.0

100.0

46

Satisfaction

Frequency

Percent

Valid Percent

Cumulative
Percent

Some What unsatisfied

Valid

Satisfied
Very satisfied
Total

18.8

18.8

18.8

10

62.5

62.5

81.3

18.8

18.8

100.0

16

100.0

100.0

Overall quality

Frequency

Percent

Valid Percent

Cumulative
Percent

Satisfied
Valid

Very Satisfied
Total

14

87.5

87.5

87.5

12.5

12.5

100.0

16

100.0

100.0

47

Value
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Unsatisfied

6.3

6.3

6.3

Neutral

25.0

25.0

31.3

Satisfied

43.8

43.8

75.0

Very Satisfied

25.0

25.0

100.0

16

100.0

100.0

Total

Purchase experience
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Neutral

37.5

37.5

37.5

Satisfied

43.8

43.8

81.3

Very Satisfied

18.8

18.8

100.0

16

100.0

100.0

Total

Installation experience
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Neutral

25.0

25.0

25.0

Satisfied

50.0

50.0

75.0

Very Satisfied

25.0

25.0

100.0

16

100.0

100.0

Total

After purchase experience

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Unsatisfied

18.8

18.8

18.8

Neutral

31.3

31.3

50.0

Satisfied

31.3

31.3

81.3

Very Unsatisfied

18.8

18.8

100.0

16

100.0

100.0

Total

48

SUGGESTIONS:
1. More local/ regional advertisements should be there to make people aware about
Philips and its products.
2. Campaigning should be done at all level.
3. Provide updated information and knowledge to the retailers about the product.
4. Company should provide LED in more attractive and Style / Look should improve.

CONCLUSION:
From the above analysis and findings thereby, the company has definitely a good market
share and the customer base is in growing. Thought it faces a stiff competition from reputed
brands. The company has its own set of customer base. If the company directs some more efforts
towards the advertising and changing pricing policy of its LEDs the company can definitely
capture a greater market share.

49

QUESTIONAIRE:
Consumer behavior on LED
1.
2.
3.
4.

Name:
Are you living in a Rural/Urban?
Ever heard of LED
yes/no?
Choose the appropriate with yes/no

Name of Bulb
60watt
40watt
Zero watt
Tube light
CFL
LED

Yes/No

5. When choosing the Bulb what will you consider the most? Rate the using the
Percentages
Life time of the bulb
Power of the bulb
Color of the bulb
Efficiency of the bulb
Size of the bulb
100%
6. What is monthly electricity expense?

7. Which company you prefer?

Company Name
Surya
Philips
Anchor
Sysca
Havells
Osram

Yes/No

50

8. How satisfied are you with your current lighting?

a. Not at all
b. Somewhat unsatisfied
c. Satisfied
d. Very satisfied

9.
The following is a list of product and service items. How satisfied are you with based on the
below criteria?
PRODUCT
Very
Unsatisfied

Unsatisfied

Neutra
l

Overall quality
Value
Purchase
experience
Installation or
first use
experience
Usage
experience
After purchase
service
(warranty,
repair, help
desk)

51

Satisfied

Very
Satisfie
d

Not
Applicable