profile of the organisation

7/29/2019 Profile of the Organisation

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PHILIPS-EXPORT MARKETING STRATEGIES

VIVEK COLLEGE OF COMMERCE Page 1

CHAPTER 1

EXPORT MARKETING

1.1 INTRODUCTION

Export marketing means exporting goods to other countries of the world. It involves

lengthy procedure and formalities. In export marketing, goods are sent abroad as per

the procedures framed by the exporting country as well as by the importing country.

Export marketing is more complicated to domestic marketing due to international

restrictions, global competition, lengthy procedures and formalities and so on.

Moreover, when a business crossed the borders of a nation, it becomes infinitely

more complex. Along with this, export marketing offers ample opportunities for

earning huge profits and valuable foreign exchange.

Export marketing has wider economic significance as it offers various advantages tothe national economy. It promotes economic / business / industrial development, to

earn foreign exchange and ensures optimum utilization of available resources.

Every country takes various policy initiatives for promoting exports and for

meaningful participation in global marketing. Global business is a reality and every

country has to participate in it for mutual benefits. Every country has to open up its

markets to other countries and also try to enter in the markets of other countries in the

best possible manner. This is a normal rule which every country has to follow under

the present global marketing environment. In the absence of such participation in

global marketing, the process of economic development of the country comes indanger.

1.2 DEFINITIONS OF EXPORT MARKETING

1) According to B. S. Rathor

Export marketing includes the management of marketing activities for products

which cross the national boundaries of a country.

2) Export marketing means marketing of goods and servicesbeyond the national

boundaries.

1.3 FEATURES OF EXPORT MARKETING

The main important features of export marketing are as follows.

1) Systematic Process

Export marketing is a systematic process of developing and distributing goods and

services in overseas markets. The export marketing manager needs to undertake

various marketing activities, such as marketing research, product design, branding,

packaging, pricing, promotion etc. To undertake the various marketing activities, the


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export marketing manager should collect the right information from the right source;

analyze it properly and then take systematic export marketing decisions.

2) Large Scale Operations

Normally, export marketing is undertaken on a large scale.Emphasis is placed onlarge orders in order to obtain economies in large sole production and distribution of

goods. The economies of large scale help the exporter to quote competitive prices in

the overseas markets. Exporting goods in small quantities is costly due to heavy

transport cost and other formalities.

3) Dominance of Multinational Corporations

Export marketing is dominated by MNCs, from USA, Europe and Japan. They are in

a position to develop world wide contacts through their network and conduct business

operations efficiently and economically. They produce quality goods at low cost andalso on massive scale.

4) Customer Focus

The focus of export marketing is on the customer. The exporter needs to identify

customers needs and wants and accordingly design and develop products to generate

and enhance customer satisfaction. The focus on customer will not only bring in

higher sales in the overseas markets, but it will also improve andenhance goodwill of

the firm.

5) Trade barriers

Export marketing is not free like internal marketing. There are various trade barriers

because of the protective policies of different countries. Tariff and non-tariff barriers

are used by countries for restricting import. The export marketing manager must

have a good knowledge of trade barriers imposed by importing countries.

6) Trading Blocs

Export trade is also affected by trading blocs, certain nations form trading bloc for

their mutual benefit and economic development. The non-members face problems intrading with the members of a trading bloc due to common external barriers. Indian

exporters should have a good knowledge of important trading blocs such as NAFTA,

European Union and ASEAN.

7) Threefaced competition

In export markets, exporters have to face three-faced competition, i.e., competition

from the three angles from the other suppliers of the exporters country, from the

local producers of importing country and from theexporters of competing nations.


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8) Documentation

Export marketing is subject to various documentation formalities. Exporters require

various documents to submit them to 4various authorities such as customs, port trustetc. The documents include Shipping Bill, Consular Invoice, Certificate of Origin

etc.

9) Foreign exchange regulations

Export trade is subject to foreign exchange regulations imposed by different countries.

These regulations relate to payments and collection of export proceeds. Such

restrictions affect free movement of goods among the countries of the world.

10) Marketingmix

Export marketing requires the right marketing mix for the target markets, i.e.

exporting the right product, at the right price, at the right place and with the right

promotion. The exporter can adopt different marketing mixes for different export

markets, so as to maximize exports and earn higher returns.

11) International marketing Research

Export marketing requires the support of marketing research in the form of market

survey, product survey, product research and development as it is highly competitive.

Various challenges,identification of needs and wants of foreign buyer in exportmarketing can be dealt with through international marketing research.

12) Spreading of Risks

Export marketing helps to spread risks of business. Normally export firms sell in a

number of overseas markets. If they are affected by risks (losses) in one market, they

may be able to spread business risks due to good return from some other markets.

13) Reputation

Export marketing brings name and goodwill to the export firm. Also, the country ofits origin the gets reputation. The reputation enables the export firm to command good

sales in the domestic market as well as export market.


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1.4 IMPORTANCE OF EXPORT MARKETING:

Exports are important for all countries whether developed or underdeveloped. The

need / importance / advantages of export marketing can be explained from theviewpoint of a country and that of business organization.

1) Earning foreign exchange

Exports bring valuable foreign exchange to the exporting country, which is mainly

required to pay for import of capital goods, 5 raw materials, spares and components as

well as importing advance technical knowledge.

2) International Relations

Almost all countries of the world want to prosper in a peaceful environment. Oneway to maintain political and cultural ties with other countries is through international

trade.

3) Balance of payment

Large scale exports solve balance of payments problem and enable countries to

have favourable balance of payment position. The deficit in the balance of trade and

balance of payments can be removed through large-scale exports.

4) Reputation in the world

A country which is foremost in the field of exports, commands a lot of respect,

goodwill and reputation from other countries. For example, Japan commands

international reputation

due to its high quality products in the export markets.

5) Employment Opportunities

Export trade calls for more production. More production opens the doors for more

employment. Opportunities, not only in export sector but also in allied sector likebanking, insurance etc.

6) Promoting economic development

Exports are needed for promoting economic and industrial development. The

business grows rapidly if it has access to international markets. Large-sole exports

bring rapid economic development of a nation.


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7) Optimum Utilization of Resources

There can be optimum use of resources. For example, the supply of oil and petroleum

products in Gulf countries is in excess of home demand. So the excess production is

exported, thereby making optimum use of available resources.

8) Spread Effect

Because of the export industry, other sectors also expand such as banking, transport,

insurance etc. and at the same time number of ancillary industries comes into

existence to suppo0rt the export sector.

9) Higher standard of Living

Export trade calls for more productions, which in turn increase employment

opportunities. More employment means more purchasing power, as a result of which

people can enjoy new and better goods, which in turn improves standard of living of

the people


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CHAPTER 2

EXPORT MARKETING PLAN

Export Marketing Plan Defined

An export marketing plan is a step-by-step guide to strategy implementation. It

addresses strategic issues and outlines the corresponding operational actions to be

taken. It specifies targets for each step. The plan should answer all questions on how

the export firms marketing strategy is to be implemented and direct the enterprise in

attaining the strategic objective.

A business firms marketing plan and its export marketing strategy are therefore

closely inter-related. As the various steps in the plan are put into action, interaction

between the two should be continuous.

The development of an export marketing plan requires decisions on the role that

exporting is to play in the firms growth, the scope and nature of the firms product

lines and markets abroad, precise export performance goals and the level of

management commitment to the export venture.

A plan is only as good as the quality of the basic data gathered and the analysis

undertaken during the planning process. It is important to involve all levels of

management in this process and to ensure their total commitment for the successful

implementation of the export plan.

the actions required are sufficient details: It should set out export targets, budgets and

activity schedules as well as assign responsibilities for its implementation.

1. Marketing Objectives

The first step in developing an export marketing plan is to establish export marketing

objectives. These objectives should be attainable, realistic and should be

communicated throughout the business firm. Since they will determine the business

firms direction and its activities, management will have to devote considerable time

and effort to setting them.

An analysis of the business firms strengths, weaknesses, opportunities and threats, or

a SWOT analysis for short, can provide a guide to management for developing

effective and realistic objectives. A SWOT analysis reveals the competitive

advantages of the business firm as well as its prospects for sales and profitability. It is

usually based on an evaluation on facts and assumptions about the business firm and

on market research.

A business firms strengths are its competitive advantages that will give it an edge in

export markets. Their weaknesses are its constraints, which may inhibit marketing

activities in certain direction. For example, a business firm having shortage of readily

available funds cannot undertake a large scale promotional campaign.


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The assessment of a business firms strengths and weaknesses in relation to the

competition is essential for competitive positioning. This assessment from the point of

view of the competition should consider:

a) Technology in use

b) Design styling and trademarks

c) Product quality, quality control and products life cycle

d) Completeness of the product line

e) Customers service

f) Raw material supplies

g) Distribution structure and cost.

The review of opportunities and threats in the market should complement the analysis

of the business firms strengths and weaknesses. The aim is to identify the best

business opportunities and directions of growth. A business firms opportunities on

possible markets can be evaluated in terms of firms customers, competing products,

the market structure and competing suppliers. Such an evaluation may reveal

complementarities between the business firms strengths and market opportunities.

Finally management should examine the so called marketing threats on the market

being considered. These should include import rules and regulations relating to tariffs,quotas, non tariff measures and so on. Management should also determine whether the

markets under assessments are mature markets, that is, these are already well supplied

and do not therefore, provide a readily identifiable niche for the business firms

products.

2. Market Segmentation:

An export marketing plan is not complete until the business firm has identified its

target segment in the export market. Any large market would have different market

segments that differ substantially from each other. Different consumer groups exist

according to income levels, age, lifestyle, occupation and education. A crucial

element of the export marketing plan is to identify the segment of the customers that

the business firm intends to reach.

In making this choice, the business firm should answer the following questions: who

will buy its products in the export market? Why will they buy these products? Where

are these customers located? What are their characteristics?

In this exercise it will be helpful to concentrate on within-segment similarities and

between-segment differences. The business firm should choose the segment with the

requirements that fit its product specifications best. For example if it produces high-


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quality premium priced porcelain ware, its target segment is likely to be high-income.

Well educated young consumers.

A target market segment should be large enough to be profitable. An assessment of

the size of the segment should therefore, be made before a final decision is taken to

include it in the marketing plan.

3. Market Research:

To succeed in export trade, a business firm must identify attractive export markets and

estimate the export potential for its products in them as accurately as possible. Market

research and forecasting are therefore, of great importance. Factors to be evaluated

include the size of the market, the characteristics of demand, consumer requirements,

trade channels and the cultural and social differences that may affect the firms way

doing business with the market.

A small producer contemplating entering export trade may not be willing or able to

allocate resources to expensive data collection methods. Firms in that situation can

use published data to assess the market. They should, however, first evaluate the data

for reliability and accuracy.

4. Product Characteristics

The business firm should next consider the products that it has to offer. An analysis

should be any modifications required in the products, packaging changes needed

labeling requirements, brand name and after sales services expected.

Many products must undergo significant modifications if they are to satisfy consumer

and market requirements abroad. Other products require changes at the discretion of

the producer only to enhance their appeal on export markets.

5. Export Pricing:

In setting an export price, the business firm should consider additional costs that do

not enter into pricing for the domestic market. These include such items as

international freight and insurance charges, product adaptation costs, import duties,

commissions for import agents and foreign exchange risk coverage.

Export pricing analysis should begin with these questions: What value does the target

market segment place on the business firms product? How do differences in this

product add to, or detract from, its market value?

In practice, these are difficult questions to research, but analyzing the prices and

product characteristic of existing competitive products may reveal critical

information. The analysis may so that it is not the cost of materials that determines the

products value, but rather the customers perception of that value.


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6. Distribution Channels

The potential exporter should consider the following distribution option:

a. Exporting through a domestic exporting firm that will take over full responsibility

for finding sales outlets abroad.

b. Setting up its own export organization.

c. Selling through representatives abroad.

d. Using warehouses abroad.

e. Establishing a wholly owned sales subsidiary.

The choice of distribution channel will depend on the business firms export strategy

and the export market. An export strategy is a blueprint for selling on target markets.If the firm intends to export a product that has a specific feature that should be a good

selling point, to a market segment that is already well supplied, it may need to create

greater awareness of the product through an appropriate promotional strategy. In this

case, it may be better to appoint an agent who does not handle many products and can

allocate the time needed to product.

Distribution channels should be chosen carefully and efforts should be made to

maintain good relation between the parties concerned.

7.Promotion

The export marketing plan should provide details on the following aspects of the

promotional strategy: Publicity method; advertising (who will be responsible for it,

and how much the firm can allocate to it): trade missions: buyers visits; other

promotional activities (which methods to use, how much to allocate); and local export

assistance.

It is important to emphasize that the success of export marketing plan would depend

upon adequate customer support and detailed time table for its implementation.

Customer Support

An export effort will be successful to the extent that the firm provides effective

customer support. An exporter should remember that even the best product may fail

without the customer support to trade intermediaries and the end user. In addition,

customer support creates goodwill and loyalty to the exporter.


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CHAPTER 3

COMPANY PROFILE-PHILIPS

PROFILE OF THE ORGANISATION

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 4,500employees around the country. The company has an excellent pan India distribution

and after-sales service network.

Philips is one of the largest electronics companies in the world. In 2009, its sales

were 23.18 billion. The company employs 115,924 people in more than 60

countries.

Philips is organized in a number of sectors: Philips Consumer Lifestyles (formerly

Philips Consumer Electronics and Philips Domestic Appliances and Personal Care),

Philips Lighting and Philips Healthcare (formerly Philips Medical Systems).

Improving peoples lives through meaningful innovation

For the past 120 years our meaningful innovations have improved the quality of life

for millions, creating a strong and trusted Philips brand with market access all over

the world. In light of key global trends and challengese.g. the demand for

affordable healthcare, the energy efficiency imperative, and peoples desire for

personal well-beingwe are confident in our chosen strategic direction


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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 compassguiding us in how we

behave every day, and reminding us of the attitudes we should have towards our

work, our customers and our

MISION-

Improve quality of peoples lives through timely introduction of meaningful

innovations.

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., andanother was the word Philips printed on the glass of metal filament lamps.

One of the very first campaigns was launched in 1898 when Anton Philips used a

range of postcards showing the Dutch national costumes as marketing tools. Each

letter of the word Philips was printed in a row of light bulbs as at the top of every

card. In the late 1920s, the Philips name began to take on the form that we recognize

today.

Philips Identity Trademarked: Origins of the Shield Emblem


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The now familiar Philips waves and stars first appeared in 1926 on the packaging of

miniwatt radio valves, as well as on the Philigraph, an early sound recording device.

The waves symbolized radio waves, while the stars represented the ether of the

evening sky through which the radio waves would travel.

In 1930 it was the first time that the four stars flanking the three waves were placed

together in a circle. After that, the stars and waves started appearing on radios and

gramophones, featuring this circle as part of their design. Gradually the use of the

circle emblem was then extended to advertising materials and other products.

At this time Philips business activities were expanding rapidly and the company

wanted to find a trademark that would uniquely represent Philips, but one that would

also avoid legal problems with the owners of other well-known circular emblems.

This wish resulted in the combination of the Philips circle and the word mark within

the shield emblem.

In 1938, the Philips shield made its first appearance. Although modified over the

years, the basic design has remained constant ever since and, together with the word

mark, gives Philips the distinctive identity that is still embraced today.

Advertising Philips Brand Today :

Whilst the logo of the company has been consistent since the1930s the way in

which Philips has advertised and communicated to the outside world has varied. In

general, until the mid-1990s all advertising and marketing campaigns were carried

out at product level on a local market basis. This led to many different campaigns

running simultaneously, not giving a global representation of Philips as a global

company.

To establish consistent global presence, in 1995 Philips introduced the first global

campaign in 1995 under the tagline Lets make things better. This theme

encapsulated the One Philips thinking and was rolled out globally in all markets

and on all Philips products. This was also the first campaign that bought the whole

company together, giving the employees a sense of belonging and providing a

unified company look for an external audience.

In September 2004, Philips launched its sense and simplicity brand promise, which

marked a new way forward for the company. Sense and simplicity reflects Philips

commitment to be a market-driven company that provides products and services that

fulfill the promise of being designed around you, easy to experience and advanced.

In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3

billion and was ranked the 43rd most valuable brand in Inter brands 2008 ranking of

best global brands


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PHILIPS IN INDIA

Philips started operations in India at Kolkata (Calcutta) in 1930 under the

name Philips Electrical Co. (India) Pvt Ltd, comprising a staff of 75. It was a sales

outlet for Philips lamps imported from overseas.

In 1938,Philips India set up its first Indian lamp-manufacturing factory in Kolkata.

After the Second World Warin 1948, Philips started manufacturing radios in

Kolkata. In 1959, a second radio factory is established nearPune.

In 1957, the company is converted into a public limited company, renamed"Philips India Ltd".

In 1965 on 3 April, the millionth Philips radio is manufactured in India. In 1970 a new consumer electronics factory is started in Pimpri near Pune. (This

factory was shut down in 2006.)

In 1982, Philips brought colour television transmission to India with the supplyof four outdoor broadcast vans to DD National during the IX Asian Games.

In 1996, the Philips Software Centre was established in Bangalore (It is nowcalled the Philips Innovation Campus).

In 2008, Philips India entered a new product category, water purifiers designedand made in India, and exported to other countries.

As of 2008, Philips India has about 4,000 employees
http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/DD_Nationalhttp://en.wikipedia.org/wiki/1982_Asian_Gameshttp://en.wikipedia.org/wiki/Bangalorehttp://www.bangalore.philips.com/html/reachus.htmlhttp://www.bangalore.philips.com/html/reachus.htmlhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/1982_Asian_Gameshttp://en.wikipedia.org/wiki/DD_Nationalhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Kolkata


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Philips deals in lifestyle, healthcare and lighting divisions.

The consumer range of products includes:

Television- LCD, plasma, flat screen, smart touch XL Recorders, DVD players, I pods and home theater 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, multimedia handsets, external hard disc

drives

Mobile phones Kitchen appliances- Blenders and hand blenders, juicers and citruspressers,

food processors and mixers, coffee makers and kettles, frying and grillingappliances, toasters and snacking products, rice makers

Household products- Irons, vacuum cleaners, water purifies PERSONAL CARE PRODUCTS- Male dry shavers, beard trimmers and

grooming kit, epilators, beauty and hair care products

Philips lighting:

Professional Lighting - Industrial, Shops and offices, Road and Area,Hospitality, Sports Lighting, City Beautification, Schools and Petrol Stations

Automotive Lighting - In Cars, Motorcycles and TrucksPhilips healthcare products:

Computerized tomography Diagnostic ECG Operation theatre lights Preclinical imaging Radiation oncology Radiography Fluoroscopy Healthcare informatics Home healthcare Respiratory care Interventional X-ray


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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 semi-urban towns with a population between 5,000 and 50,000. ,

The Philips Mahasangram is aimed at taking Philips' new products to the semi-urban

and rural customers and increasing their awareness where product knowledge,

information and availability are concerned. An indication of the size of this initiative

can be obtained from the fact that Philips will be spending about 4.5 per cent of its

turnover from the rural/semi-urban areas on the Mahasangram alone.

Meanwhile, the key reason behind this initiative lies in the growing potential of the

rural market. According to industry data, while in 1997-98, rural sales formed about25 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 non-durables 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


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developing their volume reach, geographical reach and counter share significantly.

Philips is hoping that its innovative rural marketing initiative coupled with the high

growth in the rural market will boost its market share.

How Philips India doubled its sales

The company launched an aggressive new advertising campaign in print, television

and online. The new tagline "Sense and simplicity" showcases the new brand

promises -- using technology to make life simpler and easier. Company sources say

Philips is counting on the new campaign to help it grow by at least 25 per cent this

year.

That's in the future, but how did Philips almost double its market share in under four

years? Interestingly, the company didn't adopt radically different strategies.

It paid attention to what customers wanted; passed on cost benefits; and brushed up

its admittedly fuddy-duddy image. According to Mr. D Shivkumar, executive

director, consumer electronics, Philips, "We have managed to grow the business by

focusing on the price -- quality equation.

The battle of perception

Philips has been a household name in India for 75 years, but consumers associated

the brand more with tube lights and transistors than cutting-edge technology.

That's ironic, considering the company has made its mark globally as a technology

leader -- it invented the cassette recorder, the compact disc and the DVD; the last in

association with Sony.

But a survey by advertising agency JWT, which held the Philips account from 2001

(it has recently moved to Mudra), revealed that Philips technology was seen as

reliable but not state-of-the-art.

Clearly, Philips needed an image makeover. It began by taking the technology route.

Post-2001, advertising campaigns emphasised the company's technologically-

advanced features.

Philips was the first audio company to launch an MP3 player (May 2002), and it

made sure its communication played that up: "Don't buy a system if it doesn't have

an MP3 player." Then there was the October 2002 campaign, in which a little boy

uses the power of the music system to nudge the cookie jar off the top-most kitchen

shelf.

The company was constantly refining the image of the company in the minds of the

consumer, making it more modern. But that wasn't enough. That's where in-store

displays and promotions that demonstrated the abilities of Philips products came in.


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In October 2003, JWT broke the "Ramu kaka" ad, where the manservant

inadvertently inserts a roti into the DVD player.

The tagline made the message clear: "The new Philips DVD player plays anything".

The campaign proved immensely popular - it was used in other Asian countries as

well -- and Philips wasn't slow in leveraging its appeal. At live demos, customers

would be invited to slip rotis into the player, creating a buzz around the product and

the brand.

But that would probably appeal more to families and Philips needed to reach out to

the youth, its target customer base. So it went to where the action was -colleges and

rock festivals.

Philips set up stalls, complete with a professional DJ. Youngsters were invited toman the console, while the DJ gave them tips on mixing and spinning. And had huge

walk-ins and could provide an involvement and experience with the brand.

Clinch the dealer

Philips has successfully played the price card, but not all price cuts have been due to

better or cheaper technology. In some segments like radios, it did away with trade

discounts and passed on the savings to the customer.

Two years ago, Philips' radios sold at Rs 600 -- a huge premium compared to the Rs

200 or so that other brands cost. In mid-2003, the company slashed the price to Rs

400 and even introduced new models at the Rs 160 price point, especially targeting

the non-urban youth segment.

Not surprisingly, dealers were upset at their shrinking margins. Some started

stocking competing brands, only to return, claim company officials, when they found

volumes were increasing exponentially.

They soon realized it was more profitable to sell Philips radios because the turnover

is much higher. To ensure the penetration and distribution happens, Philips changed

its distribution strategy around two years ago. Distributors were now allocated

smaller geographical territories so they can concentrate on getting firmer footholds in

their areas.

Distributor in upcountry markets, who were earlier allotted five or six districts are

now given only two or three. And not all are given the entire product range so that

the focus is sharper.

Creating the value proposition

Philips realized early on that maintaining the price-quality equation is critical. That's


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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 percent 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.

Main inventions

Compact CassetteIn 1962 Philips invented the compact audio cassette medium for audio storage.

Although there were other magnetic tape cartridge systems, the Compact Cassette

became dominant as a result of Philips's decision to license the format free of charge.

LaserdiscLaserdisc was a 30 cm disc designed with MCA meant to compete with VHS and

even replace it. It was not as generally popular as VHS, because of the initial

investment costs of players, somewhat higher costs of movie titles, and the read-onlyformat. But like Betamax, it enjoyed extensive success among serious video


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collectors. The technologies created for Laserdisc would later be used again for the

Compact Disc.

Compact DiscAlthough Philips' and MCA's Laserdisc project never reached the VHS mass market

level, Philips still thought the format should be able to succeed, and (with Sony's

help), in 1982 they launched the smaller CD.

DVDThe DVD, the eventual successor of the CD, met a long road of setbacks. Philips

wanted to continue with the CD in a new format called MultiMedia Compact Disc

(MMCD), while another group (led by Toshiba) was developing a competing format,

then named Super Density (SD) disc. Their representatives approached IBM for

advice on the file system. IBM also learned of Philips' and Sony's initiative. IBM

convinced a group of computer industry experts to form a working group. The

Technical Working Group (TWG) voted to boycott both formats unless they merged

to prevent another format war (like the videotape format war). The result was the

DVD specification, finalized in 1995. The DVD video format was first introduced in

Japan in 1996, later in 1997 in the U.S. as limited test run, then across Europe and

the other continents from late 1998 onwards.

Blu-Ray

Blu-Ray, yet again primarily developed by Philips and Sony, utilizes blue-violet

colored diodes to create an even shorter wavelength beam than CD or DVD. Because

of this, the capacity is much more than that of CD or DVD, being 25 GB single-

layered or 50 GB dual-layered.

Corporate affairs

In 2004, Philips abandoned the slogan "Let's make things better" in favour of a new

one: "Sense and simplicity".

Origin, now part of Atos Origin, is a former division of Philips.

Its record division, Polygram, was sold to Seagram in 1998 to form Universal Music

Group.

Philips Intellectual Property and Standards, is the company's division dealing with

licensing, trademark protection and patenting. Philips currently holds about 55,000

patent rights, 33,000 trademark registrations, and 49,000 design registrations.


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Major consumer electronics products

1951 Introduced the Philishave two-headed rotary shaver, marketed in the USA

under the Norelco name.

1963Introduced the Compact cassette.

1963Introduced the first domestic home video tape recorder, the 405 line 1" tape

reel model EL3400.

1978Introduced the laserdisc player, using technology invented in the 1960s.

1978 Introduced the Philips Videopac G7000 (pictured at right), a home video

game console developed by its Magnavox division. Marketed in the United States as

the Odyssey console. Variations of the console are sold worldwide through 1984.

1979 Introduced the Video 2000-system: a technically superior design, but a

commercial failure.

1982Launched the Compact Disc in partnership with Sony.

1983Participated in developing the MSX home computer standard. This computer

standard was mainly popular in Japan and the Netherlands.

1991Introduced the CD-i, the Compact Disc Interactive system which had manyvideo-game console-type features, but was not a sales success.

1992Launched the ill-fated Digital Compact Cassette format.

1995Manufactured the Atari Jaguar's CD add-on for Atari.

1999Launched the Super Audio CD in partnership with Sony.

2000 - Launched the luminaries Iridium.

2001Successfully launched the Senseo coffeemaker, first in the Netherlands and

from 2002 onwards, in other countries across Europe. It produces coffee by brewing

from custom-made pads containing coffee grounds. The original Senseo pads are

produced by Douwe Egberts. The Senseo has been available in the US since 2004.

2004Philips HomeLabs research center created the Mirror TV technology used in

their MiraVision television line.

2006Introduced the Blu-ray Disc in partnership with Sony.
http://en.wikipedia.org/wiki/Philishavehttp://en.wikipedia.org/wiki/Senseohttp://en.wikipedia.org/wiki/Douwe_Egbertshttp://en.wikipedia.org/wiki/Douwe_Egbertshttp://en.wikipedia.org/wiki/Senseohttp://en.wikipedia.org/wiki/Philishave


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2008Introduced flatscreen with WOW VX technology. (3D tv)

2008Introduced the Relationship Care range of Philips Intimate Massagers to the

UK market.

The company receives a royalty on every DVD manufactured.

2009 Introduced the Philips Cinema 21:9 TV in a widescreen mode for HDTVs

with an LCD display using the aspect ratio.

The Electrolux Group is a publicly-owned, Swedish manufacturer of home and

professional appliances for cooking and cleaning.

Electrolux products include white goods and vacuum cleaners sold under a variety of

brand names, including its own.

Forbes Magazine says Electrolux is one of the top 5 companies in consumer durable

goods, worldwide, and named it to its list of 130 Global High Performers in 2010.

Notable products

1919: The Lux vacuum is the first product Electrolux sold.

1925: D, Electrolux's first refrigerator, is an absorption model.

1940: Assistant, the company's only wartime consumer product, is a mixer /food

processor.

1951: W 20, Electrolux's first home washing machine, is manufactured in post-

World War II Gothenburg, Sweden.

1959: D 10, the company's first dishwasher, is a countertop model nicknamed "round

jar".

1964: Luxomatic is a feature-filled vacuum cleaner that uses self-sealing paper dust

bags.

2001: Launch of the Electrolux Trilobite, a robot vacuum cleaner.

2002: The Washy Talky 'talking' washing machine goes on sale in India.


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Global Footprint

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

The worlds largest home healthcare company, being number one in:Monitoring systems, Automated External Defibrillators, Cardiac

Ultrasound, Cardiovascular X-ray.

Nnumber one in lamps in Europe, Latin America and Asia Pacific andnumber two in North America; in Automotive lighting, we are leading in

Europe, Latin America, Japan and Asia Pacific.

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

CHAPTER 4

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-


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 fast-growing 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


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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 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.


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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 centre is to develop products that can tackle high

voltage fluctuations in India. The centre currently employs 35 engineers. Around

40 per cent of Philips revenue in India comes from the lighting business.

Consumer Lifestyle

Guided by the brand promise of sense and simplicity and the consumer

insights, Philips Consumer Lifestyle offers rich, new consumer experiences that

meet consumers desire for relaxation and improving their state of mind. Philips

also responds to the consumer's desire for wellness and pleasure by introducing

products that meet the 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 Blu- Ray And DVDs Audio Products MP3 And Media Players Portable TV And DVD


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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 BoardsAccessories

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

This includes

Mens Shaving


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Mens grooming Female depilation Hair careSERVICES

Philips products have reached millions of consumers in India.

Products discarded by consumers turn into electronic waste.

This E-Waste is hazardous for the environment, and to human health.

Efforts are needed to dispose off these products in an environment friendly

manner.

Philips India has initiated a voluntary take back and recycle program.

Philips E-waste Management Program in India

Philips has tied up with a recycler for collecting, transporting and recycling

unwanted / broken down consumer products.

At Philips we offer consumers a convenient way of recycling their unwanted,

obsolete and damaged Philips products by dropping them off at convenient

locations. The program encompasses 8 major cities across India. Consumers canapproach 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

environment-friendly 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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CHAPTER 5

PEST ANALYSIS

SWOT & PEST - Philips

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 newtechnologies 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.

POLITICAL FACTORS

Political factors that affect the activity of an organization are: taxpolicy, 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 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.


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ECONOMIC FACTORS

At the present time a lot of countries where Philips Company has its business areexperiencing 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.

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 ofa 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.

TECHNOLOGICAL FACTORS:

Technology is vital for competitive advantage, and is a major driver ofglobalization. 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 consumersand businesses more innovative products and services such as Internet banking,

new generation mobile telephones, etc.

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.

Research and development is very expensive and now companies have less time to


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invent and develop new technologies.

CHAPTER 6SWOT 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)

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.

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


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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)

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 atmospherein the stores, the changes would encourage customer to stay longer in the stores.

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 trackwith 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. 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 7

PROBLEMS

1.7 PRESENT PROBLEMS / DIFFICULTIES FACED BY INDIAN

EXPORTERS

At present, Indian exporters face a number of problems /difficulties. The problem

demotivates the business firms to enter into foreign markets. These problem

/ difficulties are as follows.

a) Recession in world market :

The world market, faced recession in 2008 and in the firsthalf of 2009. Therecession was triggered due to sub-prime crisis of USA in September 2007. Due to

recession, the demand for severalIndian items such as Gems and Jewellery,

Textiles and Clothingand other items were badly hit. During recession, exporters

get loworders from overseas markets, and they have to quote lower

prices.Therefore, exporter gets law profits or suffers from losses.

b) Technological differences:

The developed countries are equipped with sophisticatedtechnologies capable of

transforming raw materials into finishedgoods on a large scale. Less developed

countries, on the other hand, lack technical knowledge and latest equipments.

Andtherefore they have to use their old and outdated technologies. Itleads to the

lopsided development in the international market.

c) Reduction in export Incentives:

Over the years, the Govt. of India has reduced exportincentives such as reduction

in DBK rates, withdrawal of income taxbenefits for majority of exporters, etc. The

reduction in exportincentives demotivates exporters to export in the overseas

markets.

d) Several competitions in global marketing:

Export marketing is highly competitive. This competitionrelates to price, quality,

production cost and sales promotiontechniques used. Indian exporters face three-

faced competitionwhile exporting. This includes competition from domestic

exporters,local producers where the goods are being exported and finallyfrom

producers of competing countries at global level. Suchcompetition is one

special problem to the exporters.

e) Problem of product standards:Developed countries insist on high product standards fromdeveloping countries


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like India. The products from developingcountries like India are subject to product

tests in the importingcountries. At times, the importing countries do not allow

imports of certain items like fruits, textiles and other items on the grounds

of excessive toxic content. Therefore Indian exporters lose marketsespecially in

developed countries.

f) Fluctuations in Exchange Rate:

Every country has its own currency which is different frominternational currencies.

The dominant international currencies areUS dollar or Sterling Pound. From the

point of view of Indianexporters we are interested to realize the payment in

internationalcurrency. Foreign exchange earned by the operators is convertedinto

Indian rupees and paid to the exporters in Indian currency; thisexposes the

exporters to the dangers of fluctuation in foreignexchange rates.

g) Problems of Sea Pirates Attacks:

A major risk faced by international trade is attack by pirates in the Gulf of Aden. More

than half of Indias merchandise trade passes through the piracy infested Gulf of Aden.

New exportersand importers are facing problem, because of increased pirateattacks

as they find it difficult to get insurance cover.

h) Problem of subsidies by Developed countries:

The developed countries like USA provide huge subsidies totheir exporters. For

example, in case of agriculture exporters, USA,UK and other provide huge

subsidies to their exporters. Therefore,the exporters of developing countries like

India find it difficult to facecompetition in the world markets.

i) Problem in preparing Documents

Export involves a large number of documents. The exporter will have to arrange

export documents required in his country andalso all the documents as mentioned

in the documentary letter of credit. In India, there are as many as 25 documents (16

commercialand a regulatory documents) to be filled in.

j) Government restrictions and foreign exchange regulations

The Government restrictions compel the exporters to followcertain rules and

regulations in the form of licenses, quotas, andcustoms formalities. Due to such

restrictions, new problemsdevelop before the exporters. Even trade restrictions in

foreigncountries create problems before exporters. Indian exporters facethis

difficulty of government restrictions and foreign exchangeregulations even when

trade policy is now made substantiallyliberal.

k) High risk and Uncertainties


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Export marketing is subject to high risks and uncertainties.The risks may be both

political and commercial. Political risksinvolve government instability, war, civil

disturbances, etc. Thecommercial risks involve insolvency of the buyer, protracted

defaulton the part of the buyer dispute on quality and so on.

l) Competition from China

India is facing stiff competition from China in the worldmarkets, especially in the OECD

markets. As a result, Indias share of export of OECD markets has declined from 53% of

total exportsin 2000-01 to about 38% in 2007-08. Some of the Indian

exportershave lost their overseas contracts due to cheap Chinese goods

andsupplies. This is the major problem of exporters.


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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.

BIBLIOGRAPHY

www.indiaphilips.com http://www.iloveindia.com/economy-of-india/india-gdp.html http://www.indianindustryprofiles.com/The%20Food%20Processin%20Ind

ustry%20in%20India.pdf

Chawla and Swondhi, Research Methodology (text book)

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.indiaphilips.com/http://www.iloveindia.com/economy-of-india/india-gdp.htmlhttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.india.philips.com/about/company/india/index.pagehttp://www.philips.com/about/investor/index.pagehttp://en.wikipedia.org/wiki/File:Philips_logo_new.svghttp://www.india.philips.com/about/sustainability/index.pagehttp://www.india.philips.com/about/sustainability/index.pagehttp://en.wikipedia.org/wiki/File:Philips_logo_new.svghttp://www.philips.com/about/investor/index.pagehttp://www.india.philips.com/about/company/india/index.pagehttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.indianindustryprofiles.com/The%20Food%20Processin%20Industry%20in%20India.pdfhttp://www.iloveindia.com/economy-of-india/india-gdp.htmlhttp://www.indiaphilips.com/


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