Project presentation By V. Rajasekhar

OverviewCompany overview Project Vizag market Major Fingings Analysis Recommendations Contributions

About Philips Established in 1891 by Gerard Philips in Netherlands

3 main divisions- Consumer products, Lighting and Medical Systems

Offices in Mumbai, Kolkata, Gurgaon, New Delhi, Chennai

Different lighting applications include Industrial, Offices, Sports, City

beautification, Road and area etc.

Different products include Lamps, Control gear, Luminaries etc.

Project TitlePart A:

To find the market potential and market share of Philips Lamps in Vizag (upcountry routes)Part B:

To find the market potential and market share of Philips T5 battens in Vizag market (all routes)

About Project contManagement decision problem: How to increase sales of Philips lamps and T5 Battens?

Market Research problem: What is the market potential and share of Philips lamps

Who are the main competitors in the market for Philips

About Project cont1. 3. 5. 7.

Determine the presence of Philips Reasons for selling other brands Tap the untapped market Find the reasons for untapped market in Vizag

About Project cont5. Increase the awareness level and promote the products 6. Increase the sales of Philips lamps in Vizag

7. Find out any issues with Philips in Vizag market 8. Analyze the data collected 9. Recommendations from the primary data collected from the Vizag market

Vizag Market Scenario For Philips, Vizag market is worth Rs. 25 Lakhs per month this year (last year

it was 20.2 lakhs per month) Rs.12.5lakhs Quantity in Rs.12.5 Lakhs) pcs.GLS TLSystem

April 08

May 08Quantity in pcs.

June 08Quantity in pcs.

(March 08

71,668 36,403 22,100 2,598 1,030 in 51.35 Lakhs

58,029 22,917 5,300 740 543 23.5 lakhs

46,425 18,066 10,545 1,180 657 25.4 lakhsGLS-General Light Systems TL-Tube Light CFL-Consumption Fluorescent

CFL

LUM LEries Lamps Amount

Rs.

LE- Lighting Electronics

Vizag Market Scenario cont As on 20th of this month, the sales value is Rs. 13.5 lakhs Vizag routes:

a) upcountry routes b) key routes Two types of sales: a) direct van sales 1 salesman b) order booking 2 salesmen In a month, a salesman pays two visits to each route

Routes Visited (Part A)Route 1 Route 2 Route 3 Route 4 Route 5 Route 6 Route 7 Route 8 Route 9 Route 10 Route 11 Route 12 Route 13 Route 14 Route 15 Aadarshnagar, Ravindranagar, Police Quarters Aarilova, Peddagadulu, Chinnagadulu Anandapuram, Devarapally, K.Kotapapu, Sabbavaram Chandranagar, Kothapalem Gnanapuram, Meghadripeta Gopalapatnam Kancherapalem Muralinagar NAD Kotharoad, Kakaninagar Naiuduthota, Pendurthy P.M. Palem, Madhurwada, Ganeshnagar Relliveedhi Jalaripeta Sagarnagar Simhachalam Urvasi jn., Marripalem

Routes Visited (Part B)Route 1 Route 2 Route 3 Route 4 Route 5 Route 6 Route 7 Route 8 Route 9 1 Town Area Aasilmetta Akkayyapalem Alliparam Kailasapuram, H.B. Colony MVP Colony Seetammadara, Maddilipalem Siripuram Suryabagh

Cont The sample size for Part A is 614 The sample size for Part B is 222 The data about Philips & other branded GLS, TLs, CFLs,

Striplites sold has been collected from retailers Various reasons for selling other brands, if any, has been noted

and then analyzed on the basis of the collected data

ContProject Part A: In this part we have both Electrical(E) and NonElectrical(NE) outlets No. of electrical (E) outlets- 119 (2 E are not visited, 1 is new) ------- 98.31% Reach No. of non-electrical (NE) outlets- 495

(44 NE are not visited, 11 are new) ------- 91.11% Reach Copy of Project Part A.xls Project Part B: Here we have only electrical outlets No. of electrical outlets- 222 ------- 100% Reach Copy of Project Part B.xls

Major FindingsPositive points: The distribution section is well organized Separate salesmen for Philips The biggest advantage for this distribution section is the veteran

salesmen

There is no overlapping of routes The credit policy seems to be fine for a month, in some cases it is

even extended for good and handy customers

Major Findings Cont Reach is good Cash discounts are given for spot payments Just in time stock delivery is an added advantage for key outlets Good salesman to customer relationship Only 1% of the damages can be recovered by distributor from

Philips

Major Findings ContAreas to improve: Salesman not looking for new outlets Distributor is selling directly to the end user in some cases Quality issues- 10W bulbs Timely visit is effected in some routes due to more number of

outlets

Major Findings Cont B- class electrical outlets are unaware of the various products in

Philips Retailers are not clear about the product features Promotion in the case of T5 Fittings isnt sufficient Philips is having a reach which can still be improved

Analysis ( upcountry routes)Category Type of outlet Philips / month Total Potential / month

GLS

E(117) NE(486) 603 TOTAL

11,604 18,682 30,286 7,165 1,215 TOTAL 1,978 410 TOTAL 2,388 677 16 TOTAL 693 8,380

19,427 34,245 53,672 13,338 1,846 15,184 8,380 2,433 10,813 4,578 136 4,714

TL

E(115) NE(122) 237

CFL

E(109) NE(124) 233

STRIPLITE

E(91) NE(8) 99

GLS in upcountry routes

Philips is having 57% (30,286pcs.) of the total market share (53,672pcs.) Wipro- 12% (6,569pcs.), Surya- 9%, Bajaj- 4%, Others- 18%

(9,837pcs.) Philips bulbs are priced higher than those of other brands. In spite of this Philips is still leading the way because of the brand image

Rates of other market playersBrand (GLS) Rupees/pc (RLP)Philips Neolux Hindustan Flora Apl Cema Surya Wipro Bajaj 8.30Rs 5Rs 5.50Rs 6Rs 6Rs 7Rs 7Rs 7Rs 7.50Rs

RLP- Retailer

landing price MRP of all the GLS are same

Tube-lights in upcountry routes

Philips- 55% (8,380pcs.) of the total market share (15,184pcs.) Surya- 26% (3,969pcs.), Crompton- 6%, Wipro- 2%,

others- 11% (1,712pcs.) Philips TL(RLPs of 40W and 36W is Rs. 36.75 and Rs.38.75, MRP Rs.45). Rest are at RLP of Rs.36, MRP Rs.40

CFL s in upcountry routes

Philips share 22% (2,388pcs.) of the total upcountry market

share (10,813pcs.) Wipro- 5%, Havells- 3%, Orpat- 1%, others- 69% (7,402pcs)

Striplites in upcountry routes

Philips- 15% (693pcs.) Others- 85% (4021pcs.) of the upcountry market share

(4714pcs.)

Striplites in Vizag(all routes)

Philips- 17% (2,795pcs.) of the total market share (16,854pcs.) Others- 83% (14,059pcs.) of the total market share

The margin which Philips gives is less when compared to the other brands

Rates of other market playersBrand (Striplites) Philips Cona Crompton Bajaj Others RLP 220 150 185 185 150 MRP 250 190 250 260 170 Others include local brands,

China products Philips is having more

varieties when compared to the other brands: Tarang (Copper, Aluminium), New tarang, Mirolta

T5s in Vizag (all routes)

Philips- 24% (357pcs.) of the total T5 battens market share

(1,503pcs) Others- 76% (1,146pcs) of the same China T5s rule the market as they are cheaper(RLP- Rs. 170, MRP-Rs. 200). TarangSlim (MRP- Rs. 450)

T5 Price ListBRAND PRODUCT (RLP/MRP) Amount in Rs. Adreno (500/780) LiteLine (500/650) E-LiteNew (475/720) Sleek J5 (350/475) N/A T5 (380/550) PRODUCT (RLP/MRP) Amount in Rs. Vector (457/720) N/A E-LiteNew Popular (#/650) Premium J5 (295/415) T5 (330/450) & (420/550) T5 (300/410) PRODUCT (RLP/MRP) Amount in Rs. TarangSlim (370/450) SlimGold (350/425) Eurostrip (#/425) N/A N/A N/A

Philips Crompton Havells Oreva Osram Compact

Recommendations Increase the awareness level of wide range of products

Philips have

Salesmen should educate the customers on the product

features

Promotion of T5s is a must. A poster should be designed

and distributed in the market

Spare parts of T5 battens should be made available in the

market- reduces risk level, improves sales

Recommendations Cont Quality issues are to be taken very seriously before it

damages the brand image Due to more number of outlets, just-in-time visits are

effected: there should be more salesmen in operation in this route; telephonic order booking could be done; increase the no. of visits from once in 15 days to twice in 15 days Distributor should never try to sell the products to end

users

Contribution In the due course of the project:

Sales: Tarang Slim- 37pcs Vector- 5pcs Tarang- 2pcs 13 new outlets (1E, 12NE) worth 3771Rs added to list A total sales worth 20,132Rs added to the chart. Philips value addition to me: Immense

Referenceswww.google.co.in www.lighting.philips.co.in

Thank You