project philips)

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Customer insight-personal care SUMMER TRAINING REPORT ON CONSUMER INSIGHT ON PHILIPS PERSONAL CARE PRODUCTS. FOR PHILIPS ELECTRONICS LTD. BY SURABHI DAS ROLL NO. 42 In partial fulfillment for the award of the degree POST GRADUATE DIPLOMA IN MANAGEMENT BATCH 2009-11 NEW DELHI INSTITUTE OF MANAGEMENT NDIM Page 1

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Page 1: Project Philips)

Customer insight-personal care

SUMMER TRAINING REPORT ON

CONSUMER INSIGHT ON PHILIPS PERSONAL CARE PRODUCTS.

FOR

PHILIPS ELECTRONICS LTD.

BY

SURABHI DAS

ROLL NO. 42

In partial fulfillment for the award of the degree

POST GRADUATE DIPLOMA IN MANAGEMENT

BATCH 2009-11

NEW DELHI INSTITUTE OF MANAGEMENT

50(B&C), 60, Tughlakabad Institutional Area, New Delhi-110062

E-mail: [email protected] Website: www.ndimdelhi.org

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SUMMER TRAINING REPORT ON

CONSUMER INSIGHT ON PHILIPS PERSONAL CARE PRODUCTS.

FOR

PHILIPS ELECTRONICS LTD.

Under the supervision

Of

Mr. Anil Dua

Submitted by- Submitted to-

Surabhi Das Mrs. Megha Chawla

Roll no. 42

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CONTENTS

CHAPTER NO. CHAPTER NAME PAGE NO.

(i) Acknowledgement 4

(ii) Certificate 5

(iii) Declaration 6

(iv) Executive summary 7

I Literature review 9-23

II Product profile 25-31

III SWOT analysis 33

IV Industry overview 35-43

V Introduction to the project 45-48

VI Research methodology 50-65

VII Conclusion 67

VIII Suggestions and recommendations 69-70

References 71

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ACKNOWLEDGEMENT

I would like to dedicate this project to those without whom this summer training would not have been completed successfully.

First and foremost I would like to thank Philips electronics ltd., for providing me the opportunity to undergo my summer internship training.

I would like to express my gratitude to my industry mentor Mr. Anil Dua, (GM sales, north region, Philips electronics ltd.), who in spite of his busy schedule gave his full support and guidance to complete this work.

I would like to thank our faculty guide Ms. Megha Chawla, who was very supportive and always ready with a solution to my problems.

Last but not the least, my sincere regards to Mr. Kamal Ashwani (Chief Manager, CRC, NDIM) and all faculty members of New Delhi Institute of Management, New Delhi for their pain stalking supervision and downright suggestions which brought a lot of confidence in me to complete this dissertation report.

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DECLARATION

I, Surabhi Das, student of New Delhi Institute of Management, Batch 2009-11 declare that every part of the Project Report on “Understanding the customer insight for the personal care products by Philips” that I have submitted is original.

I was in regular contact with the nominated guide and contacted her 7 times for discussing the project.

Date of project submission: 29/07/2010

Faculty’s comments:

___________________________________________________________________________________________________________________________________________________________________________________________________

Signature of faculty guide

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EXECUTIVE SUMMARY-

The personal care industry is considered one of the booming industries as self consciousness and income is increasing among people, especially the youth. Therefore Philips being the leading electronic brand is expecting to grow in this sector. Philip’s personal care sector includes electronic shaving and grooming and hair care. In this range Philips has got huge scope because of people’s trust in its brand name. The products come in different prices and features leaving the customers with a variety of choices.

A primary data from Delhi University shows that there is high level of awareness about these products among the youth, and majority wants to possess one or other of these products nowadays. Though preferred price range is the lowest range as the surveyed people are non earning students. The survey also brought out the places where people would like to buy them.

Secondary data shows that personal care industry is growing in India and all over the world day by day. And there are many companies coming up with these kind of electronic personal care products. Companies like Panasonic and Procter & Gamble are giving strong competition to Philips.

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CHAPTER - I

LITERATURE REVIEW

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COMPANY BACKGROUND-

Industry – electronics

Founded – 1891, Eindhoven

Headquarters – Amsterdam, the Netherlands

Area served – Worldwide

Key people – Gerald kleisterlee (CEO), Jan Michiel hessels ( chairman of supervisory board)

Products – consumer electronics, domestic appliances, lighting, medical bsystems, medical technology

Revenue- E 23.19 billion (2009)

Operating income- 614 million (2009)

Profit- E 410 million (2009)

Total assets- E 30.53 billion (2009)

Total equity- e 14.60 billion (2009)

Employees- 115,920 (2009)

Website- www.philips.com

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Koninklijke Philips Electronics N.V. (Royal Philips Electronics Inc.), most commonly known as Philips, is a multinational Dutch electronics corporation.

Philips is one of the largest electronics companies in the world. In 2009, its sales were €23.18billion. The company employs 123,800 people in more than 60 countries.

Philips is organized in a number of sectors: Philips Consumer Lifestyle (formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Lighting and Philips Healthcare (formerly Philips Medical Systems).

HISTORY

The company was founded in 1891 by Gerard Philips, a maternal cousin of Karl Marx, in Eindhoven, the Netherlands. Its first products were light bulbs and other electro-technical equipment. Its first factory survives as a museum devoted to light sculpture. In the 1920s, the company started to manufacture other products, such as vacuum tubes (also known worldwide as 'valves'), In 1927 they acquired the British electronic valve manufacturers Mullard and in 1932 the German tube manufacturer Valvo, both of which became subsidiaries. In 1939 they introduced their electric razor, the Philishave (marketed in the USA using the Norelco brand name).

PHILIPS RADIO

On 11 March 1927 Philips went on the air with two shortwave radio stations, PHOHI broadcasting in Dutch to the Dutch East Indies (now Indonesia) and PCJJ (later PCJ) which broadcast in English, Spanish and German to the rest of the world.

The international program on Sundays commenced in 1928 with host Eddie Startz hosting the Happy Station show which became the world's longest running shortwave program.

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Broadcasts from the Netherlands were interrupted by the German invasion in May 1940.

Philips Radio did not resume after Liberation. Instead the two shortwave stations were nationalized and became Radio Netherlands Worldwide, the Dutch International Service in 1946 though PCJ programs such as Happy Station continued on the new station.

WORLD WAR II

On 9 May 1940, the Philips directors were informed about the German invasion of the Netherlands to take place the following day. They decided to leave the country and flee to the United States, taking a large amount of the company capital with them. Operating from the US as the North American Philips Company, they managed to run the company throughout the war. At the same time, the company itself was moved to the Netherlands Antilles (just on paper) to keep it out of German hands.

It is also believed that Philips—both before and during the war—supplied enormous amounts of electric equipment to the German occupation forces, which has led some people to think that the company collaborated with the Nazis, like many other firms in their day. However, there is no evidence to suggest that Philips itself or its management ever sympathized with the Nazis or their ideologies. The only Philips family member who did not leave the country, Frits Philips, saved the lives of 382 Jews by indicating to the Nazis that they were indispensable for the production process at Philips,[4] for which he was awarded recognition as a "Righteous Among the Nations" by Yad Vashem in 1995. There is little Philips could have done to prevent the Germans from abusing their production facilities and forcing their employees to perform slave labour during the occupation. The production facility in Eindhoven was the only Dutch industrial target that was deliberately bombed by the allied forces during the war.

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POST WAR ERA

After the war the company was moved back to the Netherlands, with their headquarters in Eindhoven. Many secret research facilities had been locked and successfully hidden from the invaders, which allowed the company to get up to speed again quickly after the war.

In 1950, Philips formed Philips Records.

Philips introduced the audio Compact Cassette tape in 1963 and was wildly successful. Compact cassettes were initially used for dictation machines for office typing stenographers and professional journalists. As their sound quality improved, cassettes would also be used to record sound and became the second mass media to sell recorded music alongside vinyl records. Philips introduced the first combination portable radio and cassette recorder which is marketed as the "radio recorder" and which is now better known as the boom box. Later the cassette was used in telephone answering machines including a special form of cassette where the tape was wound on an endless loop. The C-cassette found itself also as the first mass storage device for early personal computers in the 1970s and 1980s. Philips would also reduce the cassette size for the professional needs, first with the mini cassette and later the microcassette which were predominant dictation machines up to the advent of fully digital dictation machines.

In 1972 Philips launched the world's first home video cassette recorder, the N1500 with bulky video cassettes that could record 30 minutes or 45 minutes. Later one hour tapes were also offered. As competition came from Sony's Betamax and the VHS group of manufacturers, Philips introduced the N1700 system which allowed double length recording and for the first time would fit a 2 hour movie onto one video cassette; in 1977, the company unveiled a special promotional film for this system in the UK featuring comedic personality Denis Norden. This idea was soon copied by the Japanese makers whose tapes were significantly cheaper. Philips made one last attempt at a new standard for video recorders with the Video 2000 system with tapes that could be used on both sides and had thus 8 hours of total recording time. As Philips only sold its systems on the PAL standard and in Europe, and the Japanese makers sold globally, the scale advantages of the

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Japanese proved insurmountable and Philips withdrew the V2000 system and joined the VHS Coalition.

Philips had early developments of a laser disk for selling movies but delayed its commercial launch for fear of cannibalizing its video recorder sales. Later Philips would join with MCA to launch the first commercial laser disk standard and players. In 1982, Philips would team with Sony to launch Compact Disc. These formats evolved to the present day DVD and Blu-Ray, which Philips launched with Sony in 1997 and 2006 respectively.

In 1991, the company's name was changed from N.V. Philips Gloeilampenfabrieken to Philips Electronics N.V. At the same time, North American Philips was formally dissolved, and a new corporate division was formed in the U.S. with the name Philips Electronics North America Corp.

In 1997 the decision was made to move the headquarters from Eindhoven to Amsterdam, along with the corporate name change to Koninklijke Philips Electronics N.V. The move was completed in 2001. Initially, the company was housed in the Rembrandt Tower, but in 2002 they moved again, this time to the Breitner Tower. In a sense, the move to Amsterdam can be considered a return to the company's roots, because Gerard Philips lived in Amsterdam when he came up with the idea of building a light bulb factory. He also conducted his first experiments in the field of mass production of light bulbs there, together with Jan Reesse. Philips Lighting, Philips Research, Philips Semiconductors (spun off as NXP in September 2006) and Philips Design, are still based in Eindhoven. Philips Healthcare is headquartered in both Netherlands (just outside Eindhoven) and Andover, Massachusetts, United States (near Boston).

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MAIN INVENTIONS

Main articles-

Compact Cassette, Laserdisc,  Compact Disc, DVD, and  Blu-ray

Compact Cassette

In 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.

Laserdisc

Laserdisc was a 30 cm disc designed with MCA meant to compete with VHS and even replace it. It never took off but the technologies created for Laserdisc would later be used again for the Compact Disc.

Compact Disc

Although Philips' and MCA's Laserdisc project failed, Philips still thought the format should be able to succeed. It took them ultimately (with Sony's help) until 1982 to successfully launch the CD.

DVD

The 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 (among them Apple, Dell, etc.) 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

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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.

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CORPORATE AFFAIRS

In 2004, Philips abandoned the slogan "Let's make things better" in favour of a new one: "Sense and simplicity".

ASM Lithography is a spin-off from a division of Philips

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.

CEOs

Past and present CEOs:

1891–1922: Gerard Philips

1922–1939: Anton Philips

1939–1961: Frans Otten

1961–1971: Frits Philips

1971–1977: Henk van Riemsdijk

1977–1981: Nico Rodenburg

1982–1986: Wisse Dekker

1986–1990: Cornelis Van der Klugt

1990–1996: Jan Timmer

1996–2001: Cor Boonstra

2001–present: Gerard Kleisterlee

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ACQUISITIONS, SUBSIDIARIES AND SPINOUTS

Acquisitions-

Companies acquired by Philips through the years include Amperex, Magnavox, Signetics, Mullard, VLSI, Agilent Healthcare Solutions Group, Marconi Medical Systems, ADAC Labs, ATL Ultrasound, portions of Westinghouse and the consumer electronics operations of Philco and Sylvania. Philips abandoned the Sylvania trademark which is now owned by SLI (Sylvania Lighting International) except in Australia, Canada, Mexico, New Zealand, Puerto Rico and the USA where it is owned by the Osram unit of Siemens. Formed in November 1999 as a equal joint venture between Philips and Agilent Technologies, the light-emitting diode manufacturer Lumileds became a subsidiary of Phillips Lighting in August 2005 and a fully-owned subsidiary in December 2006. In 2000, Philips bought Optiva Corporation, the maker of Sonicare electric toothbrushes. The company was renamed Philips Oral Healthcare and made a subsidiary of Philips DAP. In 2006 Philips bought out the company Lifeline Systems headquartered in Framingham, Massachusetts. In August 2007 Philips acquired the company Ximis, Inc. headquartered in El Paso, TX for their Medical Informatics Division. In October 2007, it purchased a Moore Microprocessor Patent (MPP) Portfolio license from The TPL Group.

On Friday, 21 December 2007 Philips and Respironics, Inc. announced a definitive merger agreement pursuant to which Philips will commence a tender offer to acquire all of the outstanding shares of Respironics for US$66 per share, or a total purchase price of approximately €3.6 billion (US$5.1 billion) to be paid in cash upon completion.

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Spinouts-

Polymer Vision, the maker of The Readius is a spin out from Philips Electronics.

APRICO Solutions is a venture within Philips Intellectual Property and Standards.

Philips also forayed into the pharmaceuticals market in a company best known as Philips-Duphar (Dutch Pharmaceuticals). Philips-Duphar made products for crop protection, veterinary medicine and products for human use. Duphar was sold to Solvay, now Solvay Pharmaceuticals. In subsequent years divisions have been sold off, by Solvay, to other companies (crop protection was sold to UniRoyal, now Chemtura and the veterinary division was sold to Fort Dodge, a division of Wyeth).

SPORTS, SPONSORSHIP AND NAMING RIGHTS

Traditionally Philips has a vested interest in sports, originally as a means to provide a healthy form of recreation for its employees. In 1913, in celebration of the Centenary of Dutch independence from France, Philips founded a sports club called Philips Sport Vereniging (Philips Sports Club), or PSV, as it is now known. The sports club encompasses all kinds of sports, but is currently most famous for its Premier League football team and its swimming team. Philips owns the naming rights to Philips Stadium, located in Eindhoven, which is home to Dutch football team PSV Eindhoven.

Abroad, Philips sponsors and has sponsored numerous sport clubs, sport facilities, and events. Philips recently (November 2008) extended its very successful F1 partnership with AT&T Williams to include many more product groups.

Furthermore, Philips owns the naming rights to the Philips Arena in Atlanta, Georgia and to the Philips Championship, the premier basketball league in Australia, traditionally known as the National Basketball League. Between 1988 and 1993 Philips were also the major sponsors of The Balmain Tigers, an Australian rugby league team.

In Thailand Philips is a sponsor of PEA FC.

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

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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 War in 1948, Philips started manufacturing radios in Kolkata. In 1959, a second radio factory is established near Pune.

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 supply of four outdoor broadcast vans to DD National during the IX Asian Games.

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

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

As of 2008, Philips India has about 4,000 employees.

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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.”

With Vision 2010, we are putting people right at the center of things, with Health and Well-being as our overarching theme. We are thereby putting into practice our mission: improving the quality of life through the introduction of meaningful innovations.” – Gerard Kleisterlee, President and CEO of Royal Philips Electronics

MISION-“Improve quality of people’s lives through timely introduction of meaningful innovations.”

VALUES- Delight customers Deliver great results Develop people Depend on each other

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PHILIPS WAY OF WORKING-

1. We are a people-centric company that organizes around customers and markets

2. We invest in a strong brand and consistently deliver on our brand promise of “sense and simplicity”, in our actions, products and services

3. We deliver innovation by investing in world class strengths in end-user insights, technology, design and superior supplier networks

4. We develop our people’s leadership, talent and engagement and align ourselves with high performance benchmarks

5. We invest in high growth and profitable businesses and emerging geographies to achieve market leadership positions

6. We are committed to sustainability and focus on making the difference in efficient energy use

We drive operational excellence and quality to best in class levels, allowing us the above mentioned strategic investments in our businesses.

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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 grilling appliances, 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 Trucks

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Philips 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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CHAPTER – II

PRODUCT PROFILE

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HAIR CARE-

PHILIPS HP4638 Philips Straightener 180°C Ceramic Ion Boost Ceramic plates for smooth gliding and shiny hair 180°C temperature for beautiful results.

MRP: Rs.2295.00

PHILIPS HP4657 Barrel diameter: 15 mm Temperature: 175 °C Ready for use indication dot: The dot changes Colour at application temperature Heater type: PTC.

MRP: Rs.1495.00

PHILIPS HP4696Ceramic plates for smooth gliding and shiny hair Straightener attachment to create beautiful sleek hair Slide on brush for added volume.

MRP: Rs. 1995.00

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PHILIPS HP4823

1000W for beautiful results Two flexible settings for careful drying Easy storage hook for convenient storage Compact design for easy handling.

MRP: Rs.595.00

PHILIPS HP48401000 Watt dryer. 2 heat/speed settings. Detachable nozzle .  

MRP: 745.00

PHILIPS HP4931  1200W for beautiful results

MRP:Rs. 695.00

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PHILIPS HP49601400W for beautiful results for careful drying Concentrator focuses the airflow for a polished, shiny look

MRP:Rs.795.00

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SHAVING AND GROOMING-

PHILIPS HP6306   ·         Lady shave Wet & Dry.

MRP:Rs. 995.00

PHILIPS HP64002 speed settings Metal epilating system Voltage - 100-240 V Number of discs - 21  Number of catching points - 20  Power.

MRP:Rs.2095.00

PHILIPS HP6483  Philips Satinelle Ice HP6483 Ultra gentle epilator with soothing ice pack to reduce the effects of epilation.

MRP:Rs.3495.00

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PHILIPS HP6503Pivoting Ice cooler  Sonic massage system  Ceramic epilation system  2 speed settings Power Source AC-RC (mains) 

MRP: RS.4495.00

PHILIPS HQ130Electric shaver Comfortably close Unique Lift & Cut system Adjusts to every curve of your face and neck Individually floating heads Cordless.

MRP: RS.895.00

PHILIPS HQ6920Electric shaver Super Lift & Cut technology Replacement heads Adjusts to every curve of your face and neck Reflex Action system.

MRP: RS. 2995.00

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PHILIPS NT9110Nose and ear trimmer Styling tools: Eyebrow comb Handling: Ideal angle for easy reach, Soft grip coating for maximum control Durability.

MRP:RS.995.00

PHILIPS PHIHP6390 Precision shaping and trimming for eyebrows and facial hair.

MRP:RS. 995.00

PHILIPS PHIHQ40Micro + Shaver HQ40 Battery-operated (2xAA) Up to 60 mins (approximately 3 weeks shaving time RCP:  RM69

MRP: RS.995.00

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PHILIPS PHIQG3020Full size trimmer unit Beard & moustache comb locks into 9 settings. Nose Ear and eyebrow trimmer Store & charge stand, Cordless operation.

MRP: RS.1995.00

PHILIPS PHIQG3080Micro precision shaver Precision & full size trimmer Nose Ear & eyebrow hair trimmer 9 settings - 1.5mm to 18mm length, Rechargeable.

MRP: RS.2495.00

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CHAPTER – III

SWOT ANALYSIS OF PHILIPS PERSONAL CARE

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STRENGTH-

Wide range of products. Philips is a brand name everyone knows. These products are of high quality. Wide variety of features available.

WEAKNESS-

Most of the products are high end products. The youth or the students who are not earning cannot afford them.

OPPORTUNITIES-

Rising beauty consciousness among people. Rise in consumer spending power. Lifestyle changes.

THREATS-

There are many strong competitors like Panasonic & Braun. Many people prefer to buy the local or china made products which are

cheaper & affordable.

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CHAPTER – IV

OVERVIEW OF THE INDUSTRY

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Personal Care Industry in India

Description: The Indian personal care industry is estimated at Rs 170 billion. The industry is divided into fabric wash, personal wash, hair care, oral cares, skin care, colored cosmetics, men’s toiletries and fragrances. Most segments of this industry are going through a decline in 2002 with several leading players reporting lower sales in 2002 due to lower volumes as well as lower realization. The next phase of growth has to come from the rural market as the urban markets are near saturation levels in terms of penetration. The industry has a low entry barrier and competition is severe. Besides the large multinational players, there are some leading domestic players as well as the huge unorganized players. Though most of the market share is with the larger players, companies vie for the marginal market share. Cheaper imports and duplicate products are also affecting the major players. Companies have been adopting promotion schemes to dole out freebies and repackaging products in smaller packages to cater to a wider consumer base are some recent trends. The way ahead for the personal care companies is to introduce new and better product, improve penetration, and make the consumer trade up in price and quality. Rural marketing will be a major thrust area for all companies.

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Global Trade Volumes and Trends

The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth. The women’s beauty industry is growing at rate of approximately USD 202.254 billion every year where as the global market for cosmetics alone USD 30.33 billion. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are:

Rise in consumer spending power, Increased demand due to people consciousness, Key demographic factors, Entry of herbal and organic products, Lifestyle and climactic changes, and Massive advertising and promotion strategy

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Shaving industry

In this world both men and women don’t have time to dedicate to their looks. At that point of time, electric shavers really come handy, both for men and women. Hairs are dead outgrowths that come out of our skin and provide us the warmth and protection from all kinds of outside dangers by the name of dust, damage and many more. But they can irritate a person of becomes unmanageable. For the time like this electric shavers are the instruments you can bank upon. These days electric shavers are available in all price ranges. From automatic shavers to manual shavers, all are available in the market. But these days people are trusting electric shavers more, as they are fast and quite hassle free to use them.

Majority of electric shavers can operate both on direct current supply and on batteries. Some even come with battery backup feature that makes them extra exceptional. There are also versions of shavers that are available in market with and without batteries too. Many leading companies like and Philips and Panasonic, these days are providing electric shavers that makes shaving actually a joy. There are companies that also make gender specific shavers that is separately for men and women.

Shaving is really important especially for all men, as today the society is inhabited by metrosexual men. It is a category of men who spend significant amount of their income on maintaining their looks. Leading Hollywood actors like George Clooney, Tom Cruise and not to forget Indian film industry from where actors like Shahid Kapoor, Salman Khan are being hailed as the men with most sophisticated looks in the world. These actors are really popular among girls owing to their clean shaven looks that make them go weak on their knees. Although these days the soft stubble looks are very popular among men, but they know that ladies mostly prefer men who are clean shaven. This perception has really helped in popularizing electric shavers among them.

Shaving is not only restricted to men but is also meant for women. The female oriented electric shavers are also available in market these days, at quite low price.

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Women are accepted as hair free creatures in the society, this is not an offensive statement at all, but a bitter truth. And this perception has helped in popularizing the electric shavers and epilators.

PHILIPS- GLOBAL MARKET LEADER IN ELECTRIC SHAVERS

Andrea Ragnetti, CEO of Philips Domestic Appliances and Personal Care, and Chief Marketing Officer of Royal Philips Electronics commented, “We are the market leader in the electric shaver category, year after year. To have reached this milestone cements the fact that we are bringing products to market which consistently meet our consumers’ needs.” Philips technology has been advancing and simplifying people’s lives since 1891. Philips pioneered major breakthroughs in medical imaging, television, lighting, as well as being the inventors of rotary shaving. From a company with such high standards in product development, it is no surprise that Philips Shavers have gone from strength to strength over the last 68 years. “If someone is going to buy an electric shaver, we want them to think of Philips first. To have sold this many shavers in our 68 year history shows us we’re on the right track”, Andrea Ragnetti concluded. 

Producing a shaving range to keep consumers interested

Producing a shaver range to excite consumers and trade partners is key to the success of the business. In 1939, Philips launched its first electric shaver, ‘The Cigar’, to the world. Men were invited to experience the latest in technological wizardry - the electric shaver with rotary action. In 1959, to keep up with the explosion in consumer demand, revolutionary new technologies such as floating shaving heads were introduced and in 1978 the world’s first mains and rechargeable shaver was launched. Philips has consistently set new standards in the shaving category. Nico Engelsman, Business Manager Shaving and Senior Vice President Philips DAP said, “Over the last six decades, we have addressed the changing needs of our consumer, taking regional differences into account. We are also constantly addressing innovation in the shaver itself. We are focused on developing shavers that are designed to suit the places they are sold. We produce shavers that reflect local tastes, trends, bathrooms and shaving habits, and that’s why I think we’ve been so successful.”

The current most popular selling Philips shaver is the HQ 8140 model retailing at USD 89.99 or Euro 129.99. Philips Shavers have always been a driver for category growth. In 2006, the Philips Shavers business in Europe and Asia increased

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between 4% and 11% in value, while in North America Philips Shavers grew its business by more than 10%.

A major reason for this growth is that an innovative product stimulates market development. Though the market is highly competitive, Philips Shavers market share increased by more than 2%* since the introduction in 2005 of two shaver ranges - SmartTouch-XL and Speed-XL.

In 2006 Philips Shavers designed a shaving range with the AT&T Williams Formula One engineering and design team which was sold in more than 20 key markets around the world.

Looking into the future

In order to consistently attract new customers, Philips creates shavers that break away from our competitors in terms of performance and design. According to Nico Engelsman, “By presenting the market with something innovative, you’ll be able to attract new consumers. We are looking to translate global trends into products in the very near future.” DAP demonstrated its value to Philips, with 17% comparable growth in the first quarter earnings for 2007. Philips Shavers remain an important part of the DAP business, representing approximately 45% of DAP’s sales.

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PLAYERS IN SPACE

Hair care-

Cornair Babybliss Remington Princess Panasonic

Shaving and grooming-

P & G Braun Remington Gillette Panasonic

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CORNAIR

Conair Corporation is a United States corporation which sells appliances, personal care products, and health and beauty products for both professionals and consumers. It was founded in 1959 and has since expanded to include ten product divisions.

It has owned Cuisinart since 1989 and Waring Products since 1998.

Its brands include:

Conair, for personal care products Interplak, for electric toothbrushes and water jets Conair and Jheri Redding, for hair care products Scünci, for hair accessories including the Scrunchie (purchased March 21,

2005) Jheri Redding, Grand Finale, ConairPro, for hair salon products Rusk, for hair coloring BaByliss (in the UK, Canada, Germany and France), for personal care products

and hair care products

BABYBLISS

BaByliss, S.A. manufactures and markets personal care appliances. It offers hair brushes, vanity boxes, and hair and beauty accessories, as well as electric hair curling irons, waxers, and facial saunas. The company also provides online advices, tips, and individual diagnostic services. It sells its products in the European market. The company is based in Montrouge, France. As of 1995, BaByliss, S.A. operates as a subsidiary of Conair Corporation.

REMINGTON

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Remington products stand for quality, innovation and performance. From rotary and foil shavers to grooming and personal care products, Remington offers many options for today’s active men and women. Remington products include: electric rotary and foil shavers for men, electric foil shavers for women; beard and moustache trimmers for men, cosmetic and personal trimmers for women; haircut kits, curling irons, hair dryers, and straighteners. Remington products are sold through mass merchandisers, catalog showrooms, drug store chains and department stores.

PANASONIC

Apart from Home Appliances the company provides service for other Panasonic products, which are as mentioned below:

 Personal & Healthcare

Beauty Care Items Ionity Hair Dryer, Ionity Hair Straightener Cum Curler, Ionity Hair Straightener, Epilators, Ladies Shavers, Hair Dryers (Silent Model) Hair Stylers Electronic Comb

Women Grooming

Manicure System, Facial Hair Trimmer, Eyelash Curler Pore Cleaner

Men's Grooming

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Men’s Shavers (Rechargeable), Travel Shavers, Hair Trimmer & Nose Trimmer,

BRAUN

From 1984 until 2005, Braun was a wholly owned subsidiary of The Gillette Company, which had purchased a controlling interest in the company in 1967. Braun is now a wholly owned subsidiary of Procter & Gamble, which acquired Gillette in 2005.

Braun's products include the following categories:

Shaving and Grooming (electric shaving, hair trimming, beard trimming) Oral Care (now under the Oral-B brand) Beauty Care (hair care and epilators) Health and Wellness (ear thermometers, blood pressure monitors) Food and Drink (coffee makers, coffee grinders, toasters, blenders, juicers) Irons Clocks and Calculators

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CHAPTER – V

INTRODUCTION TO THE PROJECT

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OBJEC TIVES OF THE PROJECT ASSIGNED-

1. To understand the level of awareness of the Philips personal care products.

2. To estimate the potential market size for the personal care products.

3. To understand the customer preferences for the personal care products.

4. To identify the places for selling the personal care products.

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JOB ASSIGNED-

To make a survey in Delhi University in order to understand the customer insight about the Philips personal care products. Delhi University was chosen because the company wants to target the youth as they are going to be the potential buyers of these products. Customer insight would include their level of awareness; their preference of places where they want to buy these products; preferred features and price ranges for hair care, shavers and epilators.

STAGES OF THE PROJECT

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To understand the objectives of the project assigned

To study secondary data from different sources

To prepare a structured questionnaire for primary data

To get the questionnaires filled by the potential customers

To analyze the collected primary data

To interpret the primary as well as secondary data

To arrive at a conclusion

PowerPoint presentation

Report preparation

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DETAILS OF THE WORK DONE

Understanding and jotting down the main objectives after being briefed by the mentor.

A study has been done about the company, the electronic personal care industry, and about the demand and customer requirements.

A structured closed ended questionnaire was prepared and got it approved by the industry mentor.

Went to Delhi University to get the questionnaires filled by the students, who are ought to be the potential customers.

After all the questionnaires were filled, the data to be analyzed was put up on excel sheet. Pie charts were made.

Conclusion was driven out of the analyzed data. PowerPoint presentation was prepared and presented in front of the company

executives. Report was prepared and submitted.

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CHAPTER – VI

RESEARCH METHODOLOGY

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REASERCH METHODOLOGY USED

For the purpose of the project, information is collected through both primary and secondary sources.Source of primary data are the potential customers. Research methodology used is questionnaires, which are used to collect information from them. Questionnaires are directly filled by the respondents in person. For this purpose structured questionnaires are used with closed ended questions. The primary data for the study are collected through a market research done on a large population of Delhi University. Delhi University is chosen because it somehow represents the youth of NCR. For carrying out the survey a sample of 145 students were chosen randomly within the age group of 16 to 23 years.The questions in the questionnaire are framed keeping in mind the objectives of the project research.The secondary data are collected through textbooks, internet and various journals and magazines etc.

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CONSTRAINTS FACED

Some of the major constraints faced during the execution of the project are-

Delhi University was on vacation during the project period, freshers who had come to fill up admission forms were asked to fill the questionnaires.

While filling the questionnaires, people were very reluctant. I had to convince them saying that the questionnaire is very short and will take only 2 minutes.

It is difficult to understand if the respondents are providing genuine information or not.

Any survey itself has many limitations. People might not be willing to give right information; they might not take the questionnaire seriously and fill up wrong information; buyers might not be sure of the future; buyers might not be able to follow their original intentions.

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FINDINGS

SECONDARY DATA-

New Survey Shows that there is No Need to Feel Self-Conscious about Grooming

Evolving from the “metro sexual” craze, the new man of style is called the “uber sexual,” which I am sure you have heard of by now. The new “uber sexual” male exudes confidence and leadership. He is masculine, stylish and embraces grooming (thankfully). I came across a recent study conducted by Kelton Research and sponsored by Procter and Gamble that reinforces this fact. More than 600 men were surveyed and the results showed that men value their personal style and appearance without sacrificing their masculinity.

No Need to Feel Self-Conscious About Your Stash of ProductsMen may try to act casual when it comes to personal upkeep but the truth is nearly two out of three of the men surveyed not only own a variety of grooming products, but use them consistently. More interestingly, about 98% of these product savvy men have no qualms about strolling into a store to buy a grooming related product. Now that’s what I like to hear!!

The Two Easiest and Most Important Things a Guy Can DoWhile women may focus their beauty efforts on makeup, about 70% of the men surveyed say a great hair style goes hand in hand with white teeth as the top two most important facial features. And both of these grooming must dos take little effort and have a huge impact.

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Contrary to many reports that men's grooming is a major boom sector a recent report indicates that British men are more interested in keeping the contents of their bathroom cabinets down to a minimum. Simon Pitman reports.According to the Mintel report finds that British men are continuing to subscribe to the age old adage that 'less is more', when it comes to personal grooming. Today, just one in five or 19 per cent of men are enthusiastic about toiletries and use these products to improve their appearance, so fitting the much publicised 'Metrosexual' bill.

In fact, the report says that 43 per cent of men are far more likely to be part of the 'Retrosexual' movement, turning their backs on the plethora of men's toiletries, opting instead for the bare minimum of products and a basic routine.

For many men, speed is clearly of the essence as 55 per cent of those questioned said they spend under 15 minutes in the bathroom showering and grooming, with a 27 per cent nipping in and out in under 10 minutes.

"For more than a decade, the industry has been predicting strong growth for men's grooming products, based on the premise that men are taking greater care over their personal appearance," said James McCoy, senior market analyst at Mintel. "The reality is that the significant £685 million market has grown by a more modest 20 per cent over the past five years, as men are only tentatively embracing a wider range of products formerly associated with women."

Grooming is for cleanliness and hygiene

On the whole, the majority of men, some 53 per cent, view their grooming routine merely as a way of maintaining good personal hygiene and 42 per cent simply want to feel fresh and clean. On top of this 38 per cent claim to use only the bare minimum of products.

"Maintaining good personal hygiene and feeling fresh and clean are the two central planks of men's grooming routine. In contrast to women, men are more likely to opt for more practical and functional products rather than products for the sake of pampering. This suggests that, for men, 'it works' rather than 'because you're worth it' is likely to hit the right emotional buttons," said James McCoy.

Study says that, men seem very unconcerned about being overly hairy. Just 16 per cent say that they are concerned about bushy eyebrows or excessive nose and ear hair and a mere 4 per cent worry about excessive body hair - suggesting that targeting male hair removal products would be a very small market indeed.

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Too much like hard work

Shaving comes out on top, as the activity that men are most likely to find a chore, with some 40 per cent feeling this way. The next most boring activity is trimming nails, with 20 per cent unenthusiastically reaching for the clippers.

Men find shaving more of a chore than any other part of their grooming routine, as it can be time-consuming and leave skin feeling sore and dry. Younger men are most likely to dislike shaving, probably because they are starting to incorporate daily shaving into their routine.

Although the age of the 'Metro sexual' has been proclaimed with great fanfare, this latest Mintel report has reason to suggest that a new, more dandified era whereby men have the potential to spend as much on cosmetic and personal care products is still a long way from becoming a reality. And with the UK often acting as a testing ground for many of the leading cosmetic companies in Europe, the report's findings are set to be given careful consideration.

At the end of last year the easy group launched a range of 'minimalist' style men’s toiletries, designed to keep costs and fuss down to a minimum. If the Mintel report findings are correct then product launches of this kind could well prove to be the way forward.

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Indian women-beauty conscious

The lust for leading a better life and the opportunities provided by money and exposure to the media worldwide have together opened the possibilities for the Indian women to adopt a life style which includes money, glamour, fame and beauty as far as possible.Several reasons have been forwarded by the social scientists for this kind of consciousness towards life style in general and fashion in particular. The rising income leads amongst the middle class in the most important reason. A recent trend amongst women, unfortunately with its dysfunctional consequents in an over emphasis on physical grooming and slimming to the extent of torturing oneself just for the sake of misplace notions of beauty imported from the West. The craze to look beautiful amongst women with no consideration for the inner beauty has become tradition and beauty parlors have been mushrooming throughout the country. 

Just as men go to a bar today to relax and shed away stress and fatigue of the day long work, women go to beauty parlors or kitty parties to forget their family and career tensions. While it may not be possible for a large majority of Indian women as yet to get together at clubs or bars, alternatives are found in kitty parties and card parties where they vie with each other or create better and more superior food items and to get social prominence within the group to which they belong. Similarly to competition for beauty is much more visible at family functions like wedding, festivals and major parties. Even middle class families, now in a flux of economic and cultural change, follow the examples of the rich in marriage and other celebrations. Thousands of rupees could be neatly spent in grooming the bride and other members

The Indian women has suddenly stumbled upon concepts of high level materialism, personality grooming to improve one's career or life style, individual freedom to everyone, having fun and enjoyment through travel, eating out, shopping and indulging in celebrity gossip, watching celebrity life styles, seeing TV serial and films on cable networks or videos. Her attitudes change have affected India's culture to the extent that she has a major say in whom she will marry, assertive presence in family and career matters and knowledge about the world at large which is quaint as it is wonderful.

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PRIMARY DATA ANALYSIS

Analysis of data-The questionnaire once filled were fed into an excel sheet for the purpose of tabulation. With the help of several graphical representations the data is analyzed for finding out the answers to the questions asked in the objectives. Each and every question is analyzed one by one below-

ANNUAL INCOME

1-5 LAKHS75%

5-10 LAKHS20%

ABOVE 10 LAKHS5%

1-5 LAKHS5-10 LAKHSABOVE 10 LAKHS

Inference-

The above pie chart shows the annual family income of the consumers interviewed. A large part of the population i.e. 75% people have their family income within 1 to 5 lakhs. 20% have their family income within 5-10 lakhs. And 5% people have their family income above 10 lakhs. The fact has to be noted that the sample contains only students who do not have their own income, therefore we have asked for their family income.

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LEVEL OF AWARENESS

YES70%

NO30%

YES NO

Inference-

Maximum people i.e. 70% of the sample size said that they have seen or heard about the Philips personal care products. While 30% haven’t seen them. This shows that the level of awareness is quite well.

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PLACES WHERE PEOPLE HAVE SEEN THESE PRODUCTS

CROMA17%

SHOPPERS STOP19%

MALLS50%

OTHERS15%

CROMASHOPPERS STOPMALLSOTHERS

Inference-

Out of the people who are aware of these products, 50% people said that they have seen them in shopping malls. 18% said that they have seen them in Shoppers Stop, 17% in Croma, 15% in others shops or at their friend’s place.

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PREFERED PRICE RANGE (HAIR DRYERS)

600-100048%

1000-150034%

2000-250018%

600-10001000-15002000-2500

Inference-

Since the sample consists of students, it is quite obvious to find that the preferred price range is the lowest range. In case of hair dryers 48% people said that they would prefer to buy within the range of 600-1000 INR, while 34% people want to buy them in the range of 1000-1500 INR, and about 18% people want to buy in the range of 2000-2500 INR.

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PREFERED PRICE RANGE ( EPILATORS )

RS200048%

RS400034%

RS500018%

RS2000RS4000RS5000

Inference-

A similarity has been noticed in the preference of the price range in case of epilators. 48% people would prefer the lowest price range of 2000 INR, 34% would prefer the next lowest range of 4000 INR and the rest 18% people would prefer the range of 5000 INR.

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PREFERED PRICE RANGE (ELECTRONIC SHAVERS)

800-150044%

1500-250028%

2500-350013%

3500-55007%

5500-80008%

800-15001500-25002500-35003500-55005500-8000

Inference-

In the case of electronic shavers most of the people i.e. 44% people preferred the lowest price range of 800-1500 INR. About 28% people preferred the second lowest price range of 1500-2500 INR. 13% people preferred the price range of 2500-5500 INR, 7% preferred 3500-5500 INR and 8% people preferred 5500-8000 INR.

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PREFERED FEATURES IN VARIOUS CATEGORIES

LIGHT WEIGHT

35%

BATTERY OPERATED

27%

ELECTRIC-ITY OP-ERATED

18%

USAGE UNDER WATER

15%

BOTH BATTERY & ELECTRICITY OP-

ERATED5%

LIGHT WEIGHTBATTERY OPERATEDELECTRICITY OPERATEDUSAGE UNDER WATERBOTH BATTERY & ELECTRICITY OPERATED

Inference-

Most preferred feature is light weight constituting 35% of the people. 27% people preferred battery operated, 18% preferred electricity operated and 5% people preferred both battery and electricity operated. In case of epilators and shavers 15% people have preferred that it should be usable under water.

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COMPETITORS

NO IDEA40%

BRAUN20%

P&G OR GILLETTE26%

OTHERS14%

NO IDEABRAUNP&G OR GILLETTE OTHERS

Inference-

When we asked them about our competitor’s products most of the people, about 40% said that they have no idea that which other companies have these kind of products. 26% people said that they have heard about Procter and gamble’s shavers. 20% have heard about epilators and shavers from Braun. While 14% people have seen some of the local or China made products.

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PHILIPS ELECTRONICS

1. Have you heard about the personal care products by Philips- shavers, curlers, epilators, and hair dryers?

Yes No

2. Where have you seen them?

Croma

Shoppers stop

Malls

Others…………………..………………………………………………………………please specify

3. Have you used any of them?

Yes No

4. Would u like to use them?

Yes No

5. Where would you like to buy them?

Malls

Electronic shops

Cosmetic shops

Beauty saloons

Others ……………………….. please specify.

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6. Which price range would you like to buy them?

Hair dryers- Epilators- Shavers-

600 – 1000 2000 800-1500

1000- 1500 4000 1500-2500

2000-2500 5000 2500-3500

3500-5500

5500-8000

7. What is your annual family income?

1 lac- 5 lac

5 lac - 10 lac

10 lac – 20 lac

20 lac & above

8. Which features would you like in them?

Light weight

battery operated

electricity operated

usable under water

others …………………………….. please specify

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CHAPTER – VII

CONCLUSION

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CONCLUSION

From the findings of this survey we can say that there is a huge market out there for these products. The youth of today are willing to buy them not because these products are mere luxury but because they are more of necessity nowadays. In our busy schedule and the urge to look good every day, we cannot go to parlors and saloons every time. There are both time and money constraints. But we can definitely spend on these products to groom ourselves for a new and fresh look daily.

It was also seen that the most preferred price range is the lowest range and the places they wanted to buy are malls and electronic shops for boys; and cosmetic shops, beauty salons, and malls for girls.

It is also relevant form the study that as most of the people are unaware of our other competitors, there is huge scope for our products as Philips is a big brand name.

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CHAPTER – VIII

SUGGETIONS AND RECOMENDATIONS

SUGGETIONS AND RECOMMENDATIONS

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Some of the things which could be considered-

1. Advertising through networking sites

Nowadays the youth is always connected through the networking sites. They always keep checking their updates through their mobile phones. So if we are targeting the youth, we should definitely advertise these products through the popular social networking sites like facebook, twitter, orkut etc.

2. E-shopping

The notion that Indian shoppers are not satisfied till they touch and feel the product before buying is changing rapidly. Web sites like Ebay are becoming popular among the masses as they have even started advertising on the television. When people have started making different payments, booking movie tickets, booking train and flight tickets online than why not shopping? Everything is just a click away and it’s much easier too.

3. Finding a market in small towns

Mall and multiplex culture has caught the imagination of the country’s smaller cities like Kanpur, Ahmedabad, Indore, Agra, Varodara, Surat etc, which in turn has been powered by increasing purchasing power of India’s middle-class population. India, today has as many as 200 malls spread across large and small cities. Another 700 are expected to come up soon, of which 40% will be in smaller cities.Indian middle-class consists of about 85 million households out of which only 25 million live in metros. The rest 55 million resides in small towns and villages. And their purchasing power is increasing with increase in education and industrialization. But they have comparatively less options to spend their money.

4. Discount for ‘Her’ & ‘Him’

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A unique discount scheme for couples could be introduced saying discount for “her and him”. Philips can give discount on shavers and epilators if they are bought together. This will also promote both the products.

5. More of shaving and grooming products should be placed in electronic shops and malls as more of boys prefer to buy in these places.

6. More of hair and beauty products should be placed in cosmetic shops and beauty salons as girls prefer to buy in these places.

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REFERENCES

Philip Kotler, Marketing Management – A South Asian Perspective, Thirteenth Edition, Pearson Education Limited

Wheelen & Hunger, Concepts in Strategic Management and Business Policy, Ninth Edition, Pearson Education Limited

Naresh K. Malhotra , Market Research, 5th edition. Indian journal of marketing, volume 40, number-5, may 2010. Marketing Mastermind by ICFAI, may 2010. www.business-standard.com http://www.rajputbrotherhood.com/knowledge-hub/essay/an-essay-on-indian-

women-and-their-life-style.html http://www.cosmeticsdesign.com/Products-Markets/Less-is-more-for-British-

mens-grooming-routine http://www.fashionproducts.com/fashion-apparel-overview.html www.wikipedia.org http://www.qrs.in/philipshp6483-p-3345.html http://mensfashion.about.com/od/groomingface/a/CrestStudy.htm http://www.panasonic.com/about/overview.asp http://www.linkedin.com/companies/b.braun

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