Project presentation

By -
V. Rajasekhar
 Overview

Company 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 Title

Part 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 cont…

Management 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 cont…

1. Determine the presence of Philips

3. Reasons for selling other brands

5. Tap the untapped market

7. Find the reasons for untapped market in Vizag

 About Project cont…

5. 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)
April ’08 May ’08 June ’08 (March ‘08
Rs.12.5lakhs
Quantity in Quantity in Quantity in
Rs.12.5 Lakhs) pcs. pcs. pcs.
GLS 71,668 58,029 46,425

TL 36,403 22,917 18,066

CFL 22,100 5,300 10,545 GLS-General Light

System Systems
LUM 2,598 740 1,180
TL-Tube Light
LE 1,030 543 657
CFL-Consumption
ries Fluorescent
Amount
Lamps in 51.35 23.5 lakhs 25.4 lakhs
Rs. Lakhs
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 Aadarshnagar, Ravindranagar, Police Quarters
Route 2 Aarilova, Peddagadulu, Chinnagadulu
Route 3 Anandapuram, Devarapally, K.Kotapapu, Sabbavaram
Route 4 Chandranagar, Kothapalem
Route 5 Gnanapuram, Meghadripeta
Route 6 Gopalapatnam
Route 7 Kancherapalem
Route 8 Muralinagar
Route 9 NAD Kotharoad, Kakaninagar
Route 10 Naiuduthota, Pendurthy
Route 11 P.M. Palem, Madhurwada, Ganeshnagar
Route 12 Relliveedhi Jalaripeta
Route 13 Sagarnagar
Route 14 Simhachalam
Route 15 Urvasi jn., Marripalem
 Routes Visited (Part B)

Route 1 1 Town Area

Route 2 Aasilmetta

Route 3 Akkayyapalem

Route 4 Alliparam

Route 5 Kailasapuram, H.B. Colony

Route 6 MVP Colony

Route 7 Seetammadara, Maddilipalem

Route 8 Siripuram

Route 9 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
 Cont…

Project Part A: In this part we have both Electrical(E) and Non-

Electrical(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 Findings

Positive 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 Cont…

Areas 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 isn’t 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) 11,604 19,427

NE(486) 18,682 34,245
603 TOTAL 30,286 53,672

TL E(115) 7,165 13,338

NE(122) 1,215 1,846
237 TOTAL 8,380 15,184

CFL E(109) 1,978 8,380

NE(124) 410 2,433
233 TOTAL 2,388 10,813

STRIPLITE E(91) 677 4,578

NE(8) 16 136
99 TOTAL 693 4,714
 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 players

Brand (GLS) Rupees/pc (RLP)

Philips 8.30Rs
Neolux 5Rs
Hindustan 5.50Rs  RLP- Retailer

Flora 6Rs landing price

 MRP of all the
Apl 6Rs
GLS are same
Cema 7Rs
Surya 7Rs
Wipro 7Rs
Bajaj 7.50Rs
 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 players

Brand RLP MRP  Others include local brands,

(Striplites) China products
Philips 220 250
 Philips is having more
Cona 150 190
varieties when compared to
Crompton 185 250 the other brands: Tarang
Bajaj 185 260 (Copper, Aluminium), New
tarang, Mirolta
Others 150 170
 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 List

BRAND PRODUCT PRODUCT PRODUCT

(RLP/MRP) (RLP/MRP) (RLP/MRP)
Amount in Rs. Amount in Rs. Amount in Rs.
Philips Adreno (500/780) Vector (457/720) TarangSlim (370/450)

Crompton LiteLine (500/650) N/A SlimGold (350/425)

Havells E-LiteNew (475/720) E-LiteNew Popular Eurostrip (#/425)

(#/650)
Oreva Sleek J5 (350/475) Premium J5 (295/415) N/A

Osram N/A T5 (330/450) & N/A

(420/550)
Compact T5 (380/550) T5 (300/410) N/A
 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

 References

www.google.co.in
www.lighting.philips.co.in
Thank You