Project Report on

CREATING VISIBILITY AND SALE CLOSURE FOR TLED PRODUCTS IN B2B

SEGMENT AT WESTERN REGION OF T.N
For

Submitted in partial fulfilment for the award of the degree

Master of Business Administration

By

NN NIRVAAN JAYAPRAKASH
CB.BU.P2MBA14039
MBA 2014-2016
INDUSTRIAL MENTOR FACULTY GUIDE

Mr. Navneet Anand Sunu, Prof.Shrikant G Kulkarni,

Philips Electronics Limited, Amrita School of Business
Chennai. Coimbatore

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DECLARATION

I, Nirvaan Jayaprakash of second year MBA Amrita School of Business, Amrita Vishwa

Vidyapeetham hereby declare the project titled “creating visibility and sale closure for TLED product

in B2B segment at western region of T.N” is done by me under the guidance of Dr. Shrikant G.

Kulkarni, Professor, Faculty of Management, Amrita Vishwa Vidyapeetham & Mr. Navaneet Anand

Sunu, Area Sales Manager (TN & Kerala), Philips lightings, Chennai during April, May and June 2015.

I also declare that this project has not been submitted for the award of any degree, diploma

literature or recognition earlier

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 ACKNOWLEDGEMENT

This project has greatly been a collaborative effort. I take this opportunity to thank all who have
helped in the preparation and successful completion of this project work.

I oblige by deep sense of gratitude to the management of PHILIPS ELECTRONICS INDIA LIMITED, for
their kind consent given to me to undertake in the organization.

I express my deep reverences and sincere thanks to Mr. Navneet Sunu Anand,Area Sales
Manager.(South TN & Kerala) , K.S. Sethu, Deputy Sales Manager(Coimbatore sector) and
Vargheese John, Sales Manager( Madurai sector) for his advice and supervision of this project
report, all other channel partners and dealers/distributors of Philips Electronics India Limited, who
have participated and supported in this project sparing their most valuable time and also for
reaching to me in the most positive way in giving me the required information.

I express my sincere thanks and deep sense of gratitude to Faculty Guide Prof. S.G. Kulkarni and
Prof. Gopa kumar for encouraging and support.

I extend my heartfelt thanks to my parents and friends for their never ending support and
encouragement.

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Executive Summary

Introduction

Royal Philips, commonly known as Philips is a Dutch diversified technology company was
founded by Gerard Philips. It is one of the largest electronics companies in the world and
employs around 128,000 people across more than 60 countries. Philips is organized into three
main divisions: Philips Consumer Lifestyle, Philips Healthcare, and Philips Lighting

Philips Lighting spans the entire lighting value chain – from light sources, luminaries, electronics
and controls to full applications and solutions – through the following businesses: Light Sources &
Electronics, Consumer Luminaries, Professional Lighting Solutions, Automotive Lighting, and
Lumileds

Philips Professional Lightings has introduced various Led Lightings for Indoor, Outdoor Retail,
Hospitality segments, mainly for their Power consumption and to increase their annual savings on
electricity and as of now Philips Lightings has become a separate division from Philips India Ltd.
Focusing on the replacement or new installation market my project is to generate lead and sale
closing for TLED products among B2B segments in Western Region of TamilNadu.

Project Title

Creating visibility and Sale Closure for TLED products in B2B segments at western region of
TamilNadu.

Scope of the project

LED are the innovative products which turned out to be the digital version of light and acted as a
parasite for tube light. The light emitting diode is the new form of light, which is highly efficient and
energy saving. It lasts long and the light output is also high when compared to the traditional tube
lights where 40% lumens are exited out as heat and only the rest is used as a productive one. But
for LED the efficiency, 80% minimum because of the coating used in the tube which helps in
reflecting the light towards work area and only 20% amount of light is generated as heat and which
cannot be used for the work area.

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Phase 1 – Lead Generation
The market was segmented according to the usage of light or according to the place where scope
of LED’s was high, which resulted in indentifying the target category health care, institution, mills,
industries, textiles, hotels and restaurants, warehouses, showrooms, and jewellery for Trichy, Karur,
Arupkottai, Jayakondam. An expert interview was conducted among the electrical eng ineers and
the purchase department of these targeted customers, so as to get the insights on LED, type of LED
proposed, total potential quantity, expected order, distribution of the order, completion price and
contact details. This resulted in expansion of market for Philips by tapping the untapped markets

Leads generated – 13
Worth – 52 lakhs

Phase 2 – Sale Closing

The existing leads worth of 1 crore through a forum named ‘ Texpreneurs’ (which was a association
of mills under the following area: coimabtore, tirupur, erode, Madurai and Dindugul) was to be
closed by detailing all the terms & conditions, payment terms and along with the total distribution
of quantity to the decision maker and the purchase manager of the industry.

Total lighting points – 1,00,000

Key findings

Lead generation –
In Trichy region most of the healthcare units are switching to TLED from cfl of 15w, 18w, and 36w
and also from cfl of 36*1, 36*2 and 18*4 to TLED. Scope of contract projects in Trichy region is high,
so need to concentrate more on contractors which could generate more revenue for the company.
In karur region, all the textile mills are switching from tube light (40w or 36w or 28w) to TLED of
18w or 20w.

Sale closing –
Pricing is the crucial factor in this process, where Philips TLED (18w and 20w) was priced at half the
original price, thereby Philips intention was to parasite their competitor and capture the market.
Customers were willing to take the TLED (18w and 20w) because of special price which Philips
proposed.

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Suggestions
 Establish a warehouse in between Karur and Trichy ( Karur total potential
– 43 lakhs)
 Effective targeting of Contractors.
 Can target more Government projects which are coming up.

Conclusion
Philips LED Lightings has got good scope among the textile exporters where TLED’s can play a
major role. Philips need to find out the crux of the market so that they can get bulk order like the 1
lakh lighting point through Texpreneurs forum. LED down lighters, street lights finds a good scope
among the retailers and contract projects. Some local players (Joy LED’s) are emerging as
upcoming competitors by reducing the price to the maximum extent, thus Philips should be aware
of this to maintain their market share in LED market.

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Table of Contents
1. Introduction about the Project ................................................................. 9

Project’s Objective, Scope……………………………………………………………………......11

Overview of Methodology ........................................................................11

2. Industrial Analysis and Product Analysis...................................................12

2.1 Industry Analysis ................................................................................13

2.2Product Analysis ..................................................................................14

3. Methodology ...........................................................................................19

3.1 Lead Generation .................................................................................20

3.2 Sale Closing ........................................................................................27

4. Learning’s and Challenges ........................................................................31

4.1 Leanings……………………………………………………………………………………………....32

4.2 Challenges………………………………………………………………………………………......32

5. Recommendations ...................................................................................33

References………………………………………………………………………………………………35

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 List of figures and tables

Table 1: Different industry segments targeted

Table 2.1 – Technical spec 20w
Table 2.2 – Payback calculation
Table 2.3 – Comparisons of T5 and T8 TLED
Table 3.1 – segmented (institution)
Table 3.2 – segmented (health care)
Table 3.3 – details of highest generated leads
Table 3.4 - Total B2B industries visited (including leads)
Fig 1.1 Flow chart of Lead generation and Sale closing
Fig 2.2.1 – Essential led tube 20w T8 model
Fig 2.2.2 – save with lighting app
Fig 3.1.1 - Geography
Fig 3.1.5 – lead generation stats pie chart
Fig 3.1.6 – flow chart of supply chain in lead generation
Fig 3.2.1 sale closing stats pie chart
Fig 3.2.2 Flow chart of supply chain in sale closing

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 Chapter 1
Introduction about the project

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 Purpose of the Project

The main objective of project is to perform lead generation and sale closing for TLED products in
B2B segments at western region of Tamilnadu.

1. To identify the target segments and their lighting requirements

2. To find the major segments that are ready to install and upgrade LED

Description of the Project

Philips Lightings is a separate division from Philips India ltd. and they are the leading brand in the
lightings divisions by providing innovative solutions in the digital market. They are using energy
efficient products which results in 50% energy consumption for TLED which is the selling point for
the LED segments. Philips lightings are providing industry specific products which are the pitching
point.

Phase 1 – lead generation process started off by identifying the major target (spinning miils, health
care, institutions, jewellery, warehouses). The next stage of the lead generation is to approach the
target customers and identifying the decision makers, which started off through extracting the
contacts through ‘justdial’. Once the meeting with the client is fixed then the focus shifts to get the
insights on LED, type of LED proposed, total potential quantity, expected order, distribution of the
order, completion price and contact details. The promotions for the TLED are done through
industrial drive. The region concentrated was: Karur, Trichy, Ariyalur, Jayankondam

Company Segment Location

Textile mills Textile industry Karur, Trichy
Hospitals Health care industry Karur, Trichy
Royal Enfield Showrooms Trichy
Chettinad cements Industry Ariyalur
Arvind store Retail Trichy
Chettinad Engg college Institutions Ariyalur
Table 1 – Different industry segments targeted

Phase 2 – Sale closing, this was a structured process, starting with by mapping the existing leads
which has to be closed. The existing leads are generated through ‘texprenuers forum’ and once the
mapping is done, the meet with the industrial higher authority is fixed. The higher officials are
approached through sale closing process along with the terms & conditions, payment terms and
along with the total distribution of quantity. The payment terms included the percentage of amount
to be paid in advance and the payment once the delivery is done. The region concentrated was:
Coimbatore, Tiruppur, Erode, Madurai, Dindigul, Arupkottai.

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Scope of project

The outcome of the project will be helping the company :

 In finding the existing lighting points and the total potential at the target.
 In finding the decision maker
 In finding the competitor and competitor’s price.
 In finding the potential or untapped market in the western region of TamilNadu.

Methodology

Lead generation Sale Closing Lead Generation

1. Lead Generation process –

Identifying the
target promotion
identification of details through
through
( secondary decision maker industrial drive
industrial drive
research)

2. Sale Closing process –

Deliverables during
the client meet(
Target(existing leads) Target mapping payment terms,
warranty, quantity
distribution)

Fig 1.1 Flow chart of Lead generation and Sale closing

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 Chapter 2
Industrial analysis and Product analysis

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 2.1 Industrial Analysis
Royal Philips is a Dutch diversified technology company headquartered in Amsterdam with
primary divisions focused in the areas of electronics, healthcare and lighting. It was founded
in Eindhoven in 1891 by Gerard Philips and his father Frederik. It is one of the largest electronics
companies in the world and employs around 105,000 people across more than 60 countries.
Philips is organized into three main divisions: Philips Consumer Lifestyle (formerly Philips
Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Healthcare
(formerly Philips Medical Systems) and Philips Lighting. As of 2012 Philips was the largest
manufacturer of lighting in the world measured by applicable revenues .
As of 2015 Philips Lightings has become a separate division from Philips India Ltd and again
which is one of the leading and dependable brands in lighting industry.

Lighting industry
Philips Lighting is a global market leader with recognized expertise in the development,
manufacturing and application of innovative lighting solutions. They have pioneered many of
the key breakthroughs in lighting over the past 123 years, laying the basis for our current
strength and ensuring we are well-placed to be a leader in the digital transformation. Philips
future aim is to further strengthen our position in the digital market through added investment
in LED leadership while at the same time capitalizing on our broad portfolio, distribution and
brand in conventional lighting.

Philips lightings address people’s lighting needs across a full range of market segments. Indoors,
they offer lighting solutions for homes, shops, offices, schools, hotels, factories and hospitals.
Outdoors, they offer solutions for roads (street lighting and car lights) and for public spaces,
residential areas and sports arenas. In addition, we address the desire for light-inspired
experiences through architectural projects. Finally, Philips does offer specific applications of
lighting in specialized areas, such as horticulture and water purification.

LED Lightings

Light-emitting diode (LED) is a two-lead semiconductor light source. It is a p–n junction diode,
which emits light when activated. When a suitable voltage is applied to the leads, electrons are
able to recombine with electron holes within the device, releasing energy in the form
of photons.
LEDs create light by electroluminescence in a semiconductor material. Electroluminescence is
the phenomenon of a material emitting light when electric current or an electric field is passed
through it - this happens when electrons are sent through the material and fill electron holes.
An electron hole exists where an atom lacks electrons (negatively charged) and therefore has a
positive charge. Semiconductor materials like germanium or silicon can be "doped" to create
and control the number of electron holes.

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 Doping is the adding of other elements to the semiconductor material to change its properties.
By doping a semiconductor you can make two separate types of semiconductors in the same
crystal. The boundary between the two types is called a p-n junction. The junction only allows
current to pass through it one way, this is why they are used as diodes. LEDs are made using p-n
junctions. As electrons pass through one crystal to the other they fill electron holes. They emit
photons (light), which is energy saving one when compared to other light emitting sources.

2.2 Product Analysis

Essential LED tube T8 model:

Fig 2.2.1 – Essential led tube 20w T8 model

Essential LED-tube T8 is a reliable value-for-money LED lamp out of Philips lighting portfolio,
incorporated with frontier LED chips and other advanced technologies. The product helps
customers to achieve over 50% energy saving and significant maintenance cost reduction. It also
helps generate natural and comfortable lighting effect, and to build up green and environment
friendly image for our customers. The product can be mounted in the existing luminaries system
with a change in lamp and the wiring. Since the product has an inbuilt driver the customer will
have to bypass the ballast in the conventional system and provide power from one end

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 Specifications of the product:
 This product is made of LED's from Philips Lumileds with the most reliable electronic
components and proper heat sink to ensure the performance of the product from -30
degrees to 45 degrees ambient temperature.
 Strictly controlled THD (<10%) and EMI which ensures the performance under complex
environments without affecting the electrical system in place.
 The advanced poly-carbonate material gives smooth lighting distribution such that the
individual LED's are not visible outside and high reflectivity ensuring maximum lumens from
the LED level are obtained at the system level.
 The product has a system lifetime of 40,000 burning hours with 70% of the lumen
maintained and 50,000 switching cycles.
 A system level power consumption of 20W (including driver losses) which serves as a
replacement of 36W T8 tube hence providing a direct energy saving of 50%.
 Zero mercury content
 No harmful UV or IR radiation levels.

Product Certification:
 Compliant to the IEC safety standard with a 2kV built in surge protection. Also passes the
4kV high pot test as per the standard requirement to ensure proper insulation.
 RoHS, CE, KEMA, REACH and WEEE compliant (Waste Electrical and electronic
equipment) system with a Photo-biological certificate proving that the light from the
product is not harmful for use.
 System level lumen output 1600 lumens with a system level efficacy of 80 lm/W and a
CRI of 80.

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Technical Specification:
2100lm tube specs:
S. No. Parameter
1 Equivalence 36W FTL lamp
2 Working Voltage 220-240V
3 Rated Wattages 20W
Lumen 2100 lm
4 Frequency 50 - 60Hz +/-1Hz
Luminaire Technical The viewing angle of the lamp
5
Requirement should at least be 1500
6 Color Rendering Index (CRI) 80 (typical)
Correlated Color
7 4000k/6500K
Temperature (CCT)
8 System Efficiency 100lm/W

9 Average Lighting Angle 150⁰

10 Power Factor >0.9

11 Lamp Starting Time Not more than 1 second
Maximum 20W inclusive of driver
12 System Power Consumption
losses
Integrated driver compatible with
13 Control Circuit
the LEDs
14 LED Type Surface Mounted Device
40,000 burning hours at 70%
15 Life Expectancy
lumen maintenance
The fixture should conform to
applicable IS 10322 / EN 60598
16 Applicable Standards and should have the associated
LM-79 report from a govt.
approved / recognized lab.
17 Ingress Protection IP20
18 Surge Protection >2kV
19 Ambient Temperature -30 to +45 degree celcius
20 THD <10%
Switching cycles 50,000
21 R9 Value >0
Table 2.1 – Technical spec 20w

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 Payback calculation
Parameter Reference lamp LED LAMP
Name of the lamp TLD 36W Philips TLED
Lamp wattage (W) (including ballast loss) 40 20
Initial lamp cost (Rs.) ₹ 100.00 ₹ 659.00
Servicing cost for lamp replacement ₹ 10.00 ₹ 10.00
Lamp life (hours) 10000 40000
Initial lamp driver/Ballast (MRP) ₹ 100.00 ₹ 0.00
Servicing cost for ballast replacement ₹ 20.00 ₹ 0.00

Rated life (hours) 10,000.00 40,000.00

Per day use in hours 12
Electricity rate per 1KW ₹ 6.00
Initial cost delta (Rs.) ₹ 459.00
Enter number of years 1
Replacement lamp needed in 1 Years 0 0
Replacement ballast needed in 1 Years 0 0
Per day WH 480 240
Running cost per day cost (Rs.) ₹ 2.88 ₹ 1.44
Running cost per Hour (Rs.) ₹ 0.24 ₹ 0.12
Payback in day's 325
Initial cost total system (Rs.) ₹ 200.00 ₹ 659.00
Running cost for 1 Years at 12 Hours per day ₹ 936.00 ₹ 468.00
Maintenance cost for 1 Year with 0 lamp replacement (Rs.) ₹ 0.00 ₹ 0.00
Maintenance cost for 1 Year with 0 Ballast replacement
(Rs.) ₹ 0.00 ₹ 0.00
Total cost to user in 1 Years (Rs.) ₹ 1,136.00 ₹ 1,127.00
Payback in burning hours 3900
10.83 months
Payback in
0.89 Years
Remarks Payback is possible
Total number of lamps needed for 40000 Hours 4
1
Total number of ballast needed for 40000 Hours 4
Running cost for 40000 Hours (Rs.) ₹ 9,600.00 ₹ 4,800.00
Total Lamp cost needed to serve 40000 hours (Rs.) ₹ 440.00 ₹ 659.00
Total ballast cost needed to serve 40000 hours (Rs.) ₹ 480.00 ₹ 0.00
Total expense on running & maintenance for 40000 hour
(Rs.) ₹ 10,520.00 ₹ 5,459.00
Money saved over lifetime of 40000 hours (Rs.) ₹ 5,061.00
Table 2.2 – Payback calculation

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 T5 vs T8 TLED:
Parameters T8 T5

Wattage Replacement of 36w Replacement for 28w

Number of leds 144 98

Diameter 3cm 1.5cm

Lumens 2100 lumens 2100 lumens

Harmonic level Below 10% Below 10%

Table 2.3 – Comparisons of T5 and T8 TLED

Save with lighting application

Saving energy using energy efficient lighting had never been so easy. Presenting Philips
“Save with Lighting” Mobile App. Using this you can instantly calculate energy savings when
you change/upgrade your existing lighting with Philips energy efficient lighting.

Fig 2.2.2 – save with lighting app

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 CHAPTER 3
Methodology

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3.1 Phase 1 - Lead Generation
3.1.1 Geography:

Fig 3.1.1 - Geography

3.1.2 Route map:

COIMBATORE TIRUPPUR ERODE KARUR TRICHY ARIYALUR JAYONKNDAM MADURAI DINDUGUL ARUPKOTTAI

3.1.3 Segmentation of the market:

The demography (Karur, Trichy, Ariyalur and jayankondam) was classified based on the B2B
customer, then segmented and categorized according to the following format: health care,
institution, mills, industries, textiles, hotels and restaurants, warehouses, showrooms, and jewellery
and by doing secondary research the data base was generated. Contacts of those targeted
customers where made up by doing a secondary research for example ‘just dial’ and other sources.
Mapping for these locations was done according to the scope of LED’s or based on the potential of
the customer. Timeframe for the above mentioned segments was formed for the first three weeks.

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Sample of customer data base (Institutions and health care):
INSTITUTIONS(KARUR)
V.S.B.Engineering College
Cambridge College of Arts and Science
Government Arts College,Karur
Sri Sarada Niketan College of Science for Women
Kongu College of Arts and Science
Karur College of Engineering
Kaliammal College of Education
Aasee College of Education
Valluvar Catering and Hotel Management Institute
Selvamm Art and Science College
Maharaja College for Women
Surabi Institute of Hotel Management Catering
Technology
Sri Adhisankarar Institute of Hotel Management
and Catering Technology
J.K.K.Nattraja Dental College
Vivekanandha Dental College for Women
K.S.R.Institute of Dental Science and Research
Dr.Hahnemann Homoeopathy Medical College and
Research Centre
M.Kumarasamy College of Engineering
K.S.R.Business School,Tiruchengode
Annai Mathammal Sheela Engineering College
The Karur Polytechnic College
Sri Rengeswarar Polytechnic College
Table 3.1 – segmented (institution)
HOSPITALS AND HEALTHCARE
Aarthy Eye Hospital
Amaravathy Hospital
Deepa kannan hospital
Dr. G. C. Hospital
Velan Eye Hospital
Vasan Eye Care Hospital
S & V loga hospital
Sugam priya hospital
Table 3.2 – segmented (health care)
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ADDRESS
Nh 67 Covai Road,Karudayampalayam Post
Vettamangalam, karur
Karur
Thenjerambadi, Amaravathipudur, karur
Deeran Chinnamalai Nagar, karur
Athur, karur
No.6,Anna Salai, New Bus Stand Backside,karur
No.244,Aravakkuruchi Road,Thirumanilaiyur,karur
New Bye Pass Road,karur
Salem Road,Pappinaickenpatti,Namakkal
erode road, karur
No.572,P.R.N.P.Complex,Siluvathur Road,karur
Near Checkpost,Thiruvanaikovil Post,karur
Natarajapuram,Komarapalayam,Namakkal
Elayampalayam,Namakkal
K.S.R.Kalvi Nagar,Tiruchengode
Rasipuram,Namakkal
Main Road Punjai Thottakurichi Village, karur
Ksr Kalvi Nagar,Triruchengode,Namakkal
Erumapatty Post,namakkal
Karur-Erode Main Roadsanjay Nagarandan Koil
East,athur, karur
Pottireddipatti,Namakkal
ADDRESS
Sengunthapram Main Road, Madavilagam, karur
no.74, Ramanujam Nagar, Kovai road, karur
no.33 muthunagar, karur
no.30, north Pradakshanag Road, karur
17, Srinivasapuram, Karur
121, Kovai Road, Vaiyaburi Nagar Bus Stop, karur
no.163,allwyn nagar near The Residency, covai road,
karur
prabhu nagar, kamaraja salai, karur
3.1.4 Study about the product profile, pricing and pitching point:
TLED was the product which was concentrated and the product profile was studied along with the
pitching point, pricing was the factor which was fixed and it was not negotiable until or unless it’s a
bulk purchase order.

Product profile –

 TLED T8 - 20W(2100 lumens), 18W(2100 lumens), 16W(1600 lumens)

 20W -144 led's, 18W - 99 led’s
 Life span- 40000hrs at 24*7 runtime
 Harmonics level - below 10%
 Electricity consumption- ≤ 50%

Pitching point –

 No ballast is required all the driver circuit are placed inside the fitting itself
 High energy savings
 Covers 80% work area and only 20% is generated as heat and it’s because of the coating
which is used in LED tube lights.
 Philips Lightings are providing industry specific products.
 LED tube lights are manufactured, assembled through Philips Lightings itself, without
outsourcing.

Pricing –

 Price range varies from 1000/- to 1500/-, depending upon the purchase order quantity.
 LED fittings costs – 350/-

Promotion –

 By conducting industrial drive to all the prospects then try to convert them to a suspect(
making them interested towards the products) and finally as a lead
 50% energy consumption was proved to the customers by using the ‘ save with lighting
app ‘ .

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3.1.5 Lead generation statistics:

Lead generation

13
leads generated

27 4
Prospects
suspects

Fig 3.1.5 – lead generation stats pie chart

Number of leads generated – 13

Leads worth – 52 lakhs.

Highest leads –
Client name Segment Type of LED Quantity Total potential
proposed
V best engineers Contractor Single box tube, SBT 36W - 500, 7,50,000+
twin mirror optic, Twin mirror- 200 6,40,000+
1*85w street fitting + 400 lamp,
light, CFL 1*85w- 60(fitting + 7,50,000+
lamp), CFL 11w - 52500=21,92,500
750
Mallow Textile TLED 500(samples15w=2, 500*1200 =
international 18w-2,22w-2) 6,00,000
Kothari sugar Sugar mill LED, CFL , TLED, replacement for 4lkh+
and chemicals Waterproof + 250w sv lamp 1lakh+
temp withstand street light to ( cfl
LED & led) - 20 numbs, 30000+
replacement for 28000=5,58,000
70w(low bay) sv
and 400w MV(high
bay), TLed- 30
Table 3.3 – details of highest generated leads

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3.1.6 Supply chain from Manufacturing to customer

Fig 3.1.6 – flow chart of supply chain in lead generation

In the process of Lead Generation, dealer has the important role to play. Once the lead is generated
and the quotation is sent by the end customer to Philips Lightings, then the same order is passed on
to dealer of that location and he is the one who keeps the stock for Philips Lightings. In the final
stage where the schedule of the quantity is done, the dealer delivers it to the customer.

Dealers at the location specified during the project:

1. Indar electrical – This dealer mainly concentrates on the industrial customers of Philips
lightings( contractors, Large scale industries)
2. Eagle electrical – This dealer mainly concentrates on the retail customers of Philips
Lightings( jewellery etc)

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Table 3.4 - Total B2B industries visited (including leads)

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Table 3.4 contd –

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3.2 Sale Closing
Closing is a sales term which refers to the process of making a sale. The sale closing is the final step
of a transaction. In sale closing, it is used more generally to mean achievement of the desired
outcome, which may be an exchange of money or acquiring a signature

Target

Spinning mills in the location following:

Coimbatore, Tiruppur, Palladam, Annur, Erode, Perundhurai, Madurai, Arupkottai, Dindigul. The
spinning mills project was tapped by Philips Lightings through Texpreneurs (YnFx) forum through a
bidding process with the competitors like Bajaj, Havells etc.

Yarns and Fibres

YnFx has successfully built and operates a dominant B2B marketplace for the textile industry
globally since its launch back in 1999. It has attracted almost all the global players in this industry as
its member. YnFx provides their members with a vibrant environment for Business Development,
using dynamic trading mechanisms that greatly improve the member's procurement and sales
processes, thereby bringing about significant Supply Chain efficiencies along with Customer
Relationship Management.

YnFx approach to business

The YnFx is driven by the need to help its members improve their business process efficiency. They
endeavour to be a blend of the best people, processes and technology. YnFx consistently strive to
achieve optimum results, by having a total commitment to the highest ethical standards, and by
conducting our business with the highest level of integrity. This, YnFx consistently endeavours to
achieve by implementation of the values that they have set for ourselves.

Product –

 Tube light LED (TLED) of 18w and 20w, replacement for 36w or 40w and 28w Tube light.
 Lumens for both the products are 2100.
 Delivery for 18w was from July and for 20w was at the end of November.

Pricing –

 For both 18w and 20w are 659 + tax (including the delivery charges).
 Tax: VAT (5%)
 Fitting: 350 + tax( 14.5% )

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Warranty terms

18w and 20w was given a 5 years warranty, but under the installation of SPD (Surge Protection
Device) from NTC (National Trading Company) which is referred by Philips Lightings and if the SPD is
not installed then the warranty will be just 2 years.

SPD (Surge Protection Device)

A surge protector is an appliance/device designed to protect electrical devices from voltage spikes.
A surge protector attempts to limit the voltage supplied to an electric device by either blocking or
by shorting to ground any unwanted voltages above a safe threshold. These devices typically
installed in power distribution panels, process control systems, communications systems, and other
heavy-duty industrial systems, for the purpose of protecting against electrical surges and spikes,
including those caused by lightning.

Payment terms

 20% advance along with the Purchase order

 80% against 30 days PDC(post dated check) from date of Invoice
 Quantity of distribution

3.2.1 Sale closing stats

Sales closing

4
2
leads converted
no req in mills
not converted
29

Fig 3.2.1 sale closing stats pie chart

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3.2.2 Supply chain from Manufacturer to Customer:

Fig 3.2.2 Flow chart of supply chain in sale closing

In the process of Sale Closing the dealer Philips Lightings is not involved. The total project of 1 lakh
lighting points at a price which is half the regular price is being provided for the consumers. Here
Philips Lightings wanted to capture the market of Coimbatore, Tiruppur, Palladam, Annur, Erode,
Madurai, Dindigul and Arupkottai by providing at half rate which is 659 + tax.

3.2.3 Sales –

 lighting points -1,00,000

 Existing Lead converted – 29
 Total project value in Rs - 1cr

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3.2.4 Purchase order format of Philips Lightings

To, Day/Month/Year

Philips India Limited,

Address

Subject : Purchase Order to PHILIPS for supply of TLED lamp

Dear Sir,

We hereby confirm to you the purchase order for the supply of total ___ Numbers to PHILIPS India Limited as
per the delivery schedule given below.

Payment Plan : 20% Advance & 80% against 30DASY PDC from date of Invoice

Rate@ Rs. 659 + TAX

ITEM DECRIPTION MAY JUN JULY AUG SEPT OCT NOV DEC

TLED20W/ 2100LM

TLED 18W/ 2100LM

Thanks & Regards,

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 CHAPTER 4
Learning’s and challenges

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4.1 Learning’s:

1. On field sales experience in B2B segment

With this project I was able to learn how the buying and selling happens in B2B segments.

2. Target identification and ability to sell

This project helped me in identifying the prospects, by defining who can be a potential
customer for Philips Lightings

3. Routing the territory

Finding the shortest route by doing mapping the territory

4. Lead generation process

Study of lead generation resulted in indentifying the prospects, suspects and then
converting them to as a lead.

5. Technical difference between TLED and Tube light and payback period
Understood the basic and technical difference between TLED and Tube light along with the
calculation of payback period and how the efficiency of the TLED reaching up to 50%.

4.2 Challenges:
1. Solving technical details about TLED
In-depth technical details on the TLED were an issue.

2. Identifying the decision maker

Through cold calling, identification of decision makers was an issue .

3. Negotiation with clients(Pricing and spec)

Some of the clients were interested in reducing the pricing of the TLED .

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 CHAPTER 5
Recommendations

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Recommendations
 Establish a warehouse in between Karur and Trichy ( Karur total potential – 43 lakhs)

Karur is a territory which is more potential for textile mill market, and from my lead
generation week work the leads generated was nearly 43 lakhs. The reason why a
warehouse is to be installed is, most of the customer remarked that Philips is not able to
meet the scheduled delivery time.

 Effective targeting of Contractors.

Philips Lightings are losing some huge project of temples, highway, institutions etc because
contractors are demanding more margins.

 Government Projects

Philips can target more government project, since they buy out the products of Philips
Lightings in a bulk fashion.

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References

1. http://www.philips.co.in/

2. http://www.careers.philips.com/in_en/sectors/lighting.wpd

3. https://en.wikipedia.org/wiki/Philips

4. http://finderboy.com/India/philips-national-trading-company-6820165142015.html

5. http://www.yarnsandfibers.com/about-us

6. http://www.lighting.philips.co.in/lightcommunity/trends/led/?int_origin=1_LI_home_ban
ner_in_en_hp_module_explore-led

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