1

The Viva Collection Airfryer – Marketing plan: phase 1

Bus 1410 – Introduction to Marketing

Dr. Soha Abutaleb

November 15, 2023

Imam Ibrahim Imam 202302441

Momin Awadallah Yassin 202302396

Ahmed Sultan

Abdulkader Alaa diri 201900419

Abdelrahman Ahmed Saleh

 2

Introduction

The Viva Collection Airfryer, a state-of-the-art kitchen appliance designed for

effortless healthier cooking. Manufactured by Royal Philips, a pioneer in the industry, it uses

its innovative Rapid Air technology and allows you to fry great food, but also grills and roasts

your favorite dishes, providing a one-stop solution for all your meals.

Marketing environment

Competitive forces:

In the recent years the competition has been intense in the market of the home appliances and

consumer electronics sector, thus many options are provided for customers when they visit

the market to shop. Philips is a company that has a lot of competitors. The major competitors

for Philips air fryers as of today are Ninja, Cosori, and Instant. Each company has its

strengths and weaknesses. Starting with the strengths for Ninja’s air fryers:

1. Adaptable: Other than air frying Ninja’s air fryers also provides roasting, baking,

grilling and dehydrating. They are capable of swapping out many of your kitchen appliances.

2. Dual cooking: Some of Ninja’s air fryers provides models with dual cooking,

allowing you to cook faster.

3. User friendly: The control panels on their air fryers are easy to use, buttons are clear

making it easy to operate.

Weaknesses for Ninja air fyers:

1. Big in size: comparing Ninja’s air fryers to normal single purpose air fryers, they are

considered typically larger and require more space due to their numerous functions.
 3

2. Price: Ninja’s air fryers are priced higher compared to the basic models.

Strengths for Cosori’s air fryers:

1. Consistency: Cosori air fryers provides a costumer with a consistent performance in

browning and crisping a variation of foods.

2. Digital control: usually cosori air fryers provides digital controls making it easy and

more precise when it comes to adjusting time and temperature.

Weaknesses for Cosori air fryers:

1. Big in size: Some of Cosori air fryers are big and require a lot of kitchen space,

people with limited kitchen space should consider this before making a purchase.

2. Limited color options: some specific models come with a very limited choices of

colors.

3. Price : cosori’s air fryer prices are usually high compared to others.

Finally the strengths for Instant’s air fryers:

1. Cooking performance: Instant’s air fryers delivers a satisfying cooking results

2. Multiple functions: Instant’s air fryers provides you with multiple cooking functions.

3. Affordable: Instant’s air fryers are often seen as more budget friendly compared to

other models

Weaknesses for Instant’s air fryers:

1. Big size: some instant vortex air fryer models come large in size so it should be

considered with those whom have limited space

 4

2. High noise level: based on ratings and reports from users many have complained that

Instant’s air fryers are noisy during operation.

Looking forwards into the future competitors for Philips in the air fryer market could include

large appliance manufacturers such as; Samsung, LG, and Tefal, and it could also include

smaller appliances companies or startups that specialize in air fryers.

If we (Philips) changed our marketing mix, a response from philips competition is expected

in a variety of ways, based on the specifics of each competitor’s approach and the sector in

which they work in. competitors responses may include stepping up their own marketing

campaigns to counter any advantages Philips may have, price reductions so they could

maintain market competitiveness, creating and developing new features and goods to become

different in the market, developing new marketing initiatives to increase market share, putting

effort on research and development to create better products and services. Those kind of

responses from philips competition is expected since a company’s competitive position in the

market is impacted by its marketing mix and the way consumers make their decisions.

Competitive forces operating within an industry can have a great influence by its structure.

And for Philips to stay competitive they must adapt its business practices and strategies to the

various industry structures that they operate in.

Economic forces:

The buying power of consumers in Philips target market. Is mainly determined by the factors

such as income, age, location and lifestyle the main buying power and consumers of Phillips

are millennials and generation Z that are not scared of trying out new products and want to

make their life easier by using technology.

Political Forces:
 5

Philips is experiencing the consequences of the trade war between the United States

and China. Higher rates between these two countries are putting pressure on the profit

margins of its Connected Care division, the company reports in a financial update. These

margins will be 4.5 percent lower than expected. According to Philips CEO Frans van

Houten, “It’s disappointing that margins declined in the Connected Care businesses. This was

due to increasing headwinds from tariffs and a delay in the impact of the mitigating actions,

factory under-coverage as production levels were lowered to reduce inventory, and an

adverse product mix impact. We will drive further strong mitigating actions to accelerate the

improvement in these businesses.” (Jessica Vermeer for Bits&Chips, 2019)

In response the company allocated “hundreds of millions” of euros worth of

production from the United States to China, and vice versa, to avoid punitive tariffs. Philips’s

efforts to revamp supply chains to mitigate the impact of the US-China trade dispute are

paying off, with the Dutch health-care company reporting better-than-estimated profit. The

maker of scanners and diagnostic gear needs China as state-owned facilities invest in the

latest equipment and a private healthcare sector emerges. Demand there drove a double-digit

increase in orders in the second quarter, with the Amsterdam-based company hitting the top

end of its sales growth target range of 6 percent, beating analysts estimates.

Technological Forces:

The Air Fryer Market was valued at USD 981.3 million in 2022 and is projected to

grow at a CAGR of over 7% between 2023 and 2032. Advanced technologies are expanding

the market size of air fryers by introducing features such as digital touchscreens, mobile app

control, and smart cooking presets. These innovations provide precise cooking control and

convenience, which are appealing to tech-savvy consumers.

 6

Technological advancements and peoples demand for greater convenience and control

in cooking result on the emerging trend of Smart Airfryers. These appliances feature

integrated connectivity and app support, enabling users to monitor & adjust cooking remotely

using their smartphones. This results in the change of the manufacturing process and the need

to invest into Smart AirFryers e.g. In May 2023, Philips launched the new Philips Airfryer

HD9257/80 with 14-in1 cooking & a digital window in India. This kitchen appliance offers a

wide range of cooking options while ensuring healthier cooking methods with less oil, thus

catering to modern, health-conscious consumers.

With constant advancements in Technology our approach to marketing should

change, such advancements include but are not limited to a) Artificial Intelligence b) The

Metaverse c) VR and AR. According to The Airfryer Market Report Overview some

technological advancements might threaten the relevance of airfryers (e.g. emergence of new

cooking technologies that offer even healthier alternatives and maybe the integration of AI

with other kitchen appliances) and render them obsolete. This necessitates constant evolving

of the product and being aware of advancements in the industry to anticipate threat or even

redesign a strategy.

Socio-cultural Forces:

Society is in constant change in terms of environmental consciousness and advocacy

for a healthy living. The change in the mindset of people regarding the environment has

created a lot of opportunity for the Philips. Customers preferences changes rapidly and they

always want something different and new. Philips is regularly working towards providing the

customers more than their expectation. In 2020, Philips further reinforced its commitments as

a purpose-driven company with the announcement of an enhanced and fully integrated

approach to doing business responsibly and sustainably.(for further information click here)
 7

Multiple environmental and consumer groups could have and effect on the company,

a clear example is Greenpeace’s protest against Phillips’s recycling policy. According to

Reuters Greenpeace activists placed an 8-meter (26-foot) robot made from electronics trash

outside a shareholders meeting of shavers-to-lightbulbs group Philips on Thursday to protest

against its stance on waste.

The protesters also climbed up the facade of the Amsterdam hotel where the meeting

was taking place and unrolled a banner that read: “Philips: simply take back and recycle”.

“Philips should take responsibility for its own e-waste,” a Greenpeace spokeswoman told

Reuters TV, referring to electronics waste.

Companies in the consumer electronics and healthcare sectors, like Philips, often need

to address many ethical problems including product safety and quality and environmental

sustainability.

Market Segmentation

The company is using Demographic, Psychographic and Behavioral Marketing

segmentation strategies. Philips Marketing Segmentation Targeting Differentiation

Positioning Solution (embapro.com)

Demographic:

Phillips under demographic segmentation targets all the ages and people(all genders)

with higher and middle income. Marketing Strategy Of Philips - Philips Marketing Strategy

(marketing91.com).
 8

Geographic:

Philips, is a Dutch multinational conglomerate corporation that was founded In

Eindhoven in 1891. Since 1997, it has been mostly headquartered in Amsterdam, though

the Benelux headquarters is still in Eindhoven. Philips was formerly one of the largest

electronics companies in the world.Philips - Wikipedia.

Geographic segmentation is highly efficient for Philips in the international markets

because the prospective customers have different culture, preferences and administrative

systems. Philips Marketing Segmentation Targeting Differentiation Positioning Solution

(embapro.com)

Philips is a multinational corporation operating in over 100 countries, it has a global

distribution network, making its products accessible in many countries. They have

partnerships with retailers, both online and offline, as well as direct sales channels.

With the growth of online shopping, Philips has a significant presence on e-commerce

platforms, allowing customers to conveniently purchase products online. Their official

website also serves as a direct sales channel. Marketing Strategies and Marketing Mix of

Philips (thebrandhopper.com)

Psychographic:

There's nothing quite like the crunchy, lip-smacking taste of fried food. Too bad much

of that flavor comes from the fat the food is fried in, which has been linked to illness

including obesity and heart disease.

Air fryers, which cook with very hot circulating air, are supposed to provide a

healthier alternative to conventional frying because they use little or no oil. While they

technically cook by convection roasting rather than frying, we found that an air fryer can, in

fact, deliver results similar to the real thing.

 9

We tried out the Philips HD9230/26 Digital Air fryer, $350, which measures roughly

12 inches wide and weighs in at 15 pounds. It houses a food basket, an electric heating

element, and a fan. A digital touch screen lets you set a timer and the temperature (330° F,

360° F, or 390° F).

"The sweet-potato fries were very crispy, the sausage was delicious, and the frozen

fries tasted better than those cooked in regular and convection ovens," says Bernie Deitrick, a

CR engineer. "Everything we made was as good as or better than when cooked in the oven."

Deitrick's main piece of advice for using an air fryer? Don't overload the basket. "It can slow

down cooking and block the air from reaching all the food, so some pieces will turn out better

than others," he says.

We're not claiming that foods cooked in an air fryer are the healthiest choices. But

eating yummy versions cooked with less oil is certainly a good place to start.

(By Kimberly Janeway September 28, 2017)

Philips air fryers have become a “must-have” kitchen appliance. Air frying is a

healthier alternative to deep-frying. Because the food is cooked by rotating air and only about

a tablespoon of oil, the process results in 75%-90% less fat. Philips is a brand you can trust

and is also the world’s #1 air fryer based on units sold and has a variety of different models to

fit every kitchen.

By Daniel Reviewed By Tom Last updated: August 30, 2023.

Benefits sought:

Using air fryers can promote weight loss:

 10

A higher intake of fried foods has direct links with higher obesity risk. This is because

deep fried foods tend to be high in fat and calories.

Switching from deep-fried foods to air-fried foods and reducing regular intake of unhealthful

oils can promote weight loss.

Air fryers reduce the risk of toxic acrylamide formation:

Frying food in oil can cause dangerous compounds to develop, such as acrylamide. This

compound forms in certain foods during high-heat cooking methods, such as deep frying.

Acrylamide may have links to the development of some cancers, including endometrial,

ovarian, pancreatic, breast, and esophageal cancer.

By switching to air frying, people can

Medically reviewed by Katherine Marengo LDN, R.D., Nutrition — By Abbey

Ryan — Updated on October 27, 2023.

NEED ANALYSIS:

· The fryer’s door isn’t transparent; thus, users are not able to see the food while it’s

being cooked.

· Users must stir food manually and they must turn off the fryer to do so.

· Isn’t suitable for large families; it’s only (800 g).

· The fryer is considered heavy (weighs 7 kg), so it isn’t easily moved or carried

around. Also, it takes up much space during storage.

 11

· The strainer takes time and effort to clean.

· It’s expensive in comparison to other models.

These are the cons and needs of target customers; By Mai Sroor & Heidi Soliman.

According to various sources, the Philips Air Fryer is one of the best air fryers available in

the market. The Philips Premium Air fryer HD9741 is considered the best model by some

reviewers, as it is easy to use, cooks’ food more evenly and consistently than other pod-

shaped air fryers, and doesn’t take up too much counter space.The 3 Best Air Fryers of 2023 |

Reviews by Wirecutter (nytimes.com)

SWOT Analysis

Strengths:

Strength 1: Cooking with oil can cause a lot of problems. AS example health issues,

excessive consumption of oil, Transfers fats more and that can cause heart attacks. On the

other hand, Air fryer uses less oil and sometimes you can cook with no oil at all and this is

one of the big reasons why a lot people buy air fryers now. So, this strength make Philips

operates around 110+ production facilities, Philips have been the market leaders for so long.

Because of inventions like this. Also, they place higher emphasis on the health aspect on the

product. The target markets like restaurants or even home their most concern is safety. And

as we said that air fryer is safer than cooking with oil. So, restaurants can include in their

menu air-fried options and people will demand higher.

 12

Strength 2: Cooking with oil causes a lot of mess as it is not easy to clean and it takes

quicker time in cooking. While cooking with air fryer is faster than traditional methods. Also,

they have removable and dishwasher-safe parts, making them easy to clean. This strength

will make the company operates and produce higher amount of air fryers. As Philips uses the

strength that air fryer cooks quickly in advertising, to influence the consumer mind. Lower

time and easier to clean will increase the popularity of the product. As all people wants to

save time specially restaurants the air fryer will make them make more orders.

Weaknesses:

Weakness 1: Noise level could be a problem for people who do not like high noise

level. Also, if you live in an apartment, it is important to be aware of the noise level because it

can disturb your neighbours. It can give your competitor advantage that the company product

has high noise level. Consumers may look for competitors offering quitter alternatives,

impacting the company's market share. Air fryer with high noise level could be a huge issue

for some people. So, the company could get a lot of negative feedbacks. SO, it could impact

the brand image.

Weakness 2: Air fryer are more expensive than deep fryers and other methods of

cooking, and you can not cook a lot of things in air fryer like steak, fish, vegetables, bread,

cake and eggs. So, as we said earlier it is healthier than any other method, but it is more

expensive and you can not cook all types of food in it. So, it is not suitable for all families. The

high cost of air fryer can influence the company price strategy, because there are a lot of places

that have families that can not afford the price of air fryer. So, it affects the company's

productions and sales negatively. But after sales services is important and build trust among

consumers so that they can buy the product even though it is expensive but they know that

whatever happens to it the company will be responsible. It is like a warranty.

 13

Opportunities:

Customer education:

Air fryers are healthier than deep frying they require a little to no oil to cook your meal

which you can enjoy. Provides the consumer with useful information about how to get the most

out of the product; this can be done through recipe books and videos.

Advertising:

Additionally, they have a large selection of foods to cook, including french fries and

desserts. If you're in a rush, they also have a convincing option that can prepare your meal

quickly and easily develop a marketing strategy which contains a famous chief using an air

fryer to raise awareness about the product while posting on social media

Threats:

Competitive:

Nowadays there is more competition for air fryers now than there has ever been which

can impact on the ability to capture and retain or gain customers pursuing market research to

be informed about rivals' products and tactics in order to keep them from stealing your

consumers.

Tech:
 14

The advancement of cooking technologies in recent years might convince consumers

to change their demand, which could result in a decline in the number of potential customers

collaboration with technology providers to gain expertise and access to more advanced tech

which can enhance the product

 15

References

Marketing environment:

Jessica Vermeer article for Bits&Chips

https://bits-chips.nl/artikel/philips-sees-us-china-trade-war-affect-profit/

Bart H. Meijer article for Reuters

https://www.reuters.com/article/uk-philips-results-warning-idUKKBN1WP0T9

The Gulf time Article

https://gulftime.ae/philips-supply-chains-revamp-to-mitigate-impact-of-us-china-trade-war-
pays-off/

https://www.gminsights.com/industry-analysis/air-fryer-market

https://www.gminsights.com/industry-analysis/air-fryer-market

How Technology Will Revolutionize Marketing In 2022 And Beyond

https://www.forbes.com/sites/forbesagencycouncil/2022/02/04/how-technology-will-
revolutionize-marketing-in-2022-and-beyond/?sh=228018402fdd

Philips PESTLE Analysis

Published in Companies category by MBA Skool Team

Philips PESTLE Analysis - Detailed PESTEL Factors | MBA Skool

Greenpeace protests against Philips' recycling policy

Published by Reuters Staff

Greenpeace protests against Philips' recycling policy | Reuters

h ps://www.ny mes.com/wirecu er/reviews/best-air-fryer/

h ps://www.tomsguide.com/best-picks/best-air-fryers
 16

h ps://www.ninjakitchen.com/

h ps://cosori.com/collec ons/air-fryers

h ps://www.marke ng91.com/marke ng-strategy-of-philips/ - Customer-analysis

Market Segmentation:

https://embapro.com/frontpage/marketingstpcoanalysis/7801-philips

https://www.marketing91.com/marketing-strategy-of-philips/ -

:~:text=Phillips%20under%20demographic%20segmentation%20targets%20all,on%20the%2

0urban%20areas%20of%20India.&text=Phillips%20under%20demographic%20segmentatio

n,urban%20areas%20of%20India.&text=demographic%20segmentation%20targets%20all,on

%20the%20urban%20areas

https://embapro.com/frontpage/marketingstpcoanalysis/7801-philips - google_vignette

https://thebrandhopper.com/2023/09/22/marketing-strategies-and-marketing-mix-of-philips/

SWOT Analysis:
https://www.mbaskool.com/brandguide/conglomerates/7939-philips.html

https://swotandpestleanalysis.com/swot-analysis-of-philips/

https://www.midea.com/gulf/blog/what-are-the-benefits-of-air-fryers-fast-and-healthy-

cooking
 17

https://www.nytimes.com/wirecutter/guides/how-to-clean-an-air-fryer/

https://thefryerguide.com/disadvantages-air/?expand_article=1

https://www.airfrydaily.com/guide/disadvantages-of-air-fryers/#con2

https://blog.hubspot.com/service/after-sales-service

https://www.researchgate.net/publication/270707063_Air_Frying_a_New_Technique_for_Pr

oduce_of_Healthy_Fried_Potato_Strips

https://www.researchgate.net/publication/360613956_A_Case_Study_on_Factors_Affecting_

the_Perception_of_Customers_in_Purchasing_Air_Fryer_Products_Basis_for_a_Proposed_E

nhanced_Marketing_Promotion_Program
18