Marketing Presentation

Presented By- Deepak Kumar Angrish MBA(Ist Year) Section A 11/PMB/013

PHILIPS PROFILE
Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on improving peoples lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into peoplecentric solutions, based on fundamental customer insights and the brand promise of sense and simplicity. The foundations of Philips were laid in 1891 when Anton and Gerard Philips established Philips & Co. in Eindhoven, the Netherlands. The company begun manufacturing carbon-filament lamps and by the turn of the century, had become one of the largest producers in Europe. Stimulated by the industrial revolution in Europe, Philips first research laboratory started introducing its first innovations in the x-ray and radio technology. Over the years, the list of inventions has only been growing to include many breakthroughs that have continued to enrich peoples everyday lives.

Introduction
Created in 1891 by the Philips brothers In the Netherlands. Euro-next and NYSE Generated 26 billion Euros of revenue in 2008. One of the most important electronics companies in the world. - Present in 60 countries - 162,000 employees

About the company

Koninklijke Philips Electronics N.V. (Royal Philips Electronics), more commonly known as Philips, is a multinational dutch electronics company. Philips is one of the largest electronics companies in the world. In 2010, its sales were 25.42 billion. The company employs 119,000 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) The Philips Company was founded in 1891 by Gerard Philips and his father Frederik as a family business. Frederik Philips, being a banker in Zaltbommel, financed the purchase and setup of a modest, empty factory building in Eindhoven, where Philips started the production of carbon-filament lamps and other electro-technical products in 1892. This first factory has been adapted and is used as a Museum devoted to light sculpture.

In 1895, after the first difficult years and going nearly bankrupt, Gerard and his father brought in the 16-years younger brother Anton. Having earned an engineering degree, he started work as a sales representative, but soon contributed many important business ideas. After that, the family business began to expand rapidly, resulting in 1907 in the foundation of the N.V. Philips Metaalgloeilampfabriek (the Philips Lightwire-bulb Factory Inc) in Eindhoven, followed in 1912 by the foundation of the N.V. Philips' Gloeilampenfabrieken. (the Philips Light-bulbs Factories Inc). After Gerard and Anton Philips changed their family business by founding the Philips Incorporation, they laid the base of the later electronics multinational. In the 1920s, the company started to manufacture other products, such as vacuum tubes. In 1939 they introduced their electric razor, the Philishave (marketed in the USA using the Norelco brand name). Philips was also instrumental in the revival of the Stirling engine.

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 and was merged into Universal Music Group. Philips Records continues to operate as part of UMG, its name licenced from its former parent. 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: 18911922: Gerard Philips 19221939: Anton Philips 19391961: Frans Otten 19611971: Frits Philips 19711977: Henk van Riemsdijk 19771981: Nico Rodenburg 19821986: Wisse Dekker 19861990: Cornelis Van der Klugt 19901996: Jan Timmer 19962001: Cor Boonstra 20012011: Gerard Kleisterlee 2011now: Frans van Houten

VISION
In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.

Mission Statement
"Improve the quality of peoples lives through timely introduction of meaningful innovations."

1.1 Company macro environment

Philips is strongly influenced by several environments: economical, social and technological.

1.2 Market analysis

Geographically: mainly North America and Europe Business Sectors: Healthcare, Consumer Lifestyle, Lighting

1.3 Competitive analysis Direct competitors: other companies that offer electronic devices such as Samsung, LG, Sony. Indirect competitors: all companies that respond to similar needs: Siemens, Braun, automotive industry, Nespresso Future competitors: Babyliss, Calor, Chinese brands

1.4 Market Segmentation

So extensive range of products almost everyone can be Philips potential consumer Mostly people that care for reliable products

1.5 Existing Marketing Mix

The two main elements are: Indirect distribution channels Brand

Desired Marketing Mix

When marketing their products firms need to create a successful mix of: the right product sold at the right price in the right place using the most suitable promotion.

To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

Consumer electronics product timeline

1949, began selling television sets. 1951, introduced the Philishave two-headed rotary shaver, marketed in the USA under the Norelco name. 1963, introduced the Compact Cassette. 1963, introduced the first domestic home video tape recorder, the 405 line" tape reel model EL3400. 1978, introduced 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. 1982, launched the Compact Disc in partnership with Sony. 1983, participated in developing the MSX home computer standard. This computer standard was mainly popular in Japan and the Netherlands. 1991, introduced the CD-i, the Compact Disc Interactive system which had many video-game console-type features, but was not a sales success . 1992, launched the ill-fated Digital Compact Cassette format. 1995, manufactured the Atari Jaguar's CD add-onfor Atari. 1999, launched the Super Audio CD in partnership with Sony. 2000, launched the luminaire Iridium. 2001, successfully 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

2004, Philips HomeLabs research center created the Mirror TV technology used in their MiraVision television line. 2006, introduced the Blu-ray Disc in partnership with Sony. 2008, introduced flatscreen with WOW VX technology. (3D TV) 2008, introduced 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.

2.1 Marketing Strategy

In 2010, we will focus on a product development strategy as we will stay on the same market (beauty) and offer a new product; hair steamers of high quality.

2.2 Desired Marketing Segmentation

Our targets : - professional hairdressers - people who buy powerful products

Main cooperative bodies

Collaboration with: Elite Model agency (accessories) Schwarzkopf professional (hair care and styling products) Huiles & Sens (aromatherapy, essential oils)

Marketing Current situation in the market

We recommend Philips to continue : Organizing the Simplicity Event to introduce their new products and concepts. Participating to international exhibitions as an example the DesignBrussels.

 Marketing Activities
1) Product Foresee various colors and modern design. Create a detachable and adjustable base. Innovate thanks to our partnerships : essential oil sprays. Set-up an after-sale service 24/7 2) Distribution channels Direct: Hairstylist salons Indirect: Boutique du coiffeur and wholesalers

Enhancing service marketing principles

Agents able to speak several languages, to negotiate and to know very well the product following company training.

strong growth in emerging markets

We combined forces in Eastern Europe, Middle-East and Africa We invested in people creating a dedicated group of highly talented people We replaced the traditional regional and G2M structure with a hub structure Result was a sales growth of 15%in 2006 compared to 2005

SWOT ANALYSIS

Agenda
Global Sales and Service InternationalBusiness overview Opportunities in mature and emerging markets Conclusions

Global Sales and Service International

GSSI drives growth in 11 key markets Key markets are entrepreneurial entities GSSI Head Office is small and focused GSSI is characterized by two distinct markets

Highlights: spectacular growth in Japan

In 2006 Philips Medical Systems Japan achieved 27% sales growth A package deal with 17 Magnetic Resonance Imaging Systemsto a public hospital group 3Tesla Achievawith an order intake of 23 systems and 56% market share AED salesin Japan increased by 200%exceeding 24,000 unit sales

large deals in Asia

Thailand: PhyathaiHospitals Group purchasing cross modality equipment valued at 12.4 million Euro Korea: Samsung Medical Center purchased 9.4 million Eurofor their cancer center Greater China: Ascent Profit to bring 200 high-end radiography systems to hospitals in China. The 27 million Eurocontract will provide improved care to millions of patients

cardiology in Singapore
Philips strengthens its position as cardiology leader in Asia Collaboration with the National Heart Centre (NHC) Singapore Yearly premier cardiology conference which attracts over 1,000 medical professionals from across Asia Pacific

partnership deal in India

Philips Medical Systems and Artemis Health Institute signed our largest healthcare research partnership in IndiaPhilips won this 5.4 million eurostrategic deal due to our research capabilities.
This strategic technology partnership will help Artemis deliver international quality,best in class healthcare services to its patients.Dr. Kushagra Katariya,
Executive Director and Chief Executive, Artemis Health Sciences

 PHILIPS SURVEY
(by Support Manager, Philips headquarters , Amsterdam, Netherlands) 1. What are the political (legal), economical, sociological and technological influences over Philips company? Economical: credit crunch smaller turnover, smaller profits, Sociological: increasing unemployment: smaller turnover, consumer expect product that make their life easier, Technological: fast technological changes force Philips to adapt quickly, Political: Comply with specific rules and standards that are implemented in countries where Philips is present. 2. Which are the main markets that Philips is part of? Healthcare, Consumer Lifestyle, Lighting 3. Which are the direct and future competitors of the company? Direct competitors: other companies that offer electronic devices as Samsung , LG, Sony. Future competitors : mainly Chinese brands

5. What are the two most important elements within your Marketing Mix? Why?
All elements of marketing mix are important. Lack of attention to one of the 4Ps may cause failure on the market. In my Business Unit Consumer Marketing Managers (CMM) develop a product only after they have checked consumer needs. Moreover, CMM needs to remember to create product within a given price-cost range to meet consumer expectations. Price that is visible on the market is negotiated between Marketing Manager and Customer Marketing Manger in the relevant country. Promotion packaging and visuals are developed by CMM but localized locally (there is also possibility to develop some new marketing materials locally). Price-related promotion is agreed between country and Marketing Managers. As you see, none of 4Ps has a dominant position.

6. What are the main Strengths,Weaknesses, Opportunities and Threats of Philips?

Strengths reliable brand name, innovative products, shifting from product to services (from creating a product to fulfilling consumer needs), know-how. Weaknesses - developing product that do not respond to consumer needs (sometimes there is no need for the product created by Philips and such a need is also not created), lack or very little communication with consumers. Sometimes consumers do not know that a line of products exist. Finally, there are many procedures that are not flexible enough. Opportunities - use of internet to provide more services. Threats fast changing environment (organization is too formal to respond to fast changing markets).

Our Conclusions
This interview, that reflects the marketing strategy of this year, had an impact on our marketing plan. Information about markets and competitors helped us to focus on consumer lifestyle with the creation of a hair streamer for professionals. Then, we considered some of Philips weaknesses and threats. We tried to alter those weaknesses into strengths and opportunities for the coming year

Thank You