Philips: Vardaan

• Philips India launched “Vardaan” in 2003

• Range of television with 35 models, from the low end
`Vardaan' series
• Specially designed for the `high potential' rural markets
• Company identified Bengal, Uttar Pradesh,
Maharashtra (excluding Mumbai), Tamil Nadu and
Andhra Pradesh as growth areas for its new product
basket.
 About the Product
• TV could withstand voltage range of 90-270 volts
• Vardaan was designed to overcome the
challenge of voltage fluctuations are quite
common in rural electricity supply
• ‘Vardaan’ series CTVs will be targeted at first-
time buyers who are looking for a branded
product at reasonable prices
 About the Product

The Vardaan series inspite of being low-budget TV

has all the new features which includes games, more
than 200 channels, childlock, sound output of upto
200 watts, channel scan and channel sorting.
 About the Pricing
• Models have the price range of Rs 5690 (14
inch) to Rs 10,990 for the 21 inch Real Flat CTV
• Aggressive pricing strategy, i.e., to keep the
prices very low, to just meet the breakeven
costs
• Company continuously followed Price
Correction Strategy
 About the Pricing
• Reduced prices of their exixting TVs. eg. 14-
inch (Rs 7,490 to Rs 5,690), 20-inch (Rs 9,490
to Rs 7,690) and 21-inch CTVs (Rs 10,990 to Rs
Rs 8,99) for penetrating in the rural markets
• Philips didn’t became a part of the price-cut
game being played out in the in market
 About the Distribution
• Company planned to enhance its dealer
network to 190 from 108
• Added 2,000 more distributors to its existing
network
• Accomplished the target of expanding their
number of sub-dealers in the rural market
(smaller towns) from 470 to 620
 About the Distribution
• The company already has a well penetrated
distribution system because of its presence in
the radio and other traditional electronic
equipments market in the rural areas
• Philips is present in all parts of India, which
makes it easier for it to capture the low-
budget TV market
 About the Promotion
• The company also hiked its ad budget for that
to Rs 32 crore, from Rs 26 crore last year
• Wall paintings and radio advertising are being
used as the route to address these rural
markets.
• In 2003 they were running the World Cup offer
 About the Promotion
• Philips has resorted to non-taditional
communication activities such as wall-
paintings and graffitis
• In order to build awareness of the new
Vardaan series, the company has created radio
jingles, in-shop point-of-sale material and 1.5
million sq ft of wall painting