Professional Documents
Culture Documents
Philips Report
Philips Report
PROJECT REPORT
On
“To Know The Footprint Of Philips Electronics India Ltd. In
Indore Market”
SUBMITTED BY:
Mr. RAJU MISHRA
ROLL NO. 1109519
REG NO. 2111141049
ACKNOWLEDGEMENT
I would like to thank my project guide MR. Abhay Raj Patel Assistant Manager Philips Electronics India
Ltd., Indore (M.P.) for guiding me through my Project Report and research project. His encouragement,
time and effort are greatly appreciated.
I would like to thank Mrs. Shreety Chakraborty, for supporting me during this project and providing me an
opportunity to learn outside the class room. It was a truly wonderful learning experience.
I would like to dedicate this project to my parents. Without their help and constant support this project
would not have been possible.
Lastly I would like to thank all the respondents who offered their opinions and suggestions through the
survey that was conducted by me in Indore.
Once again my gratitude to the Philips Electronics India Ltd. For their kind co-operation.
RAJU MISHRA
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PREFACE
The business of Electronics in India has seen significant changes in last few years. We have seen the emergence of
new formats and the application of global concepts and constructs albeit with modifications to suit the Indian
environment. It not only provides the Indian consumers a wide choice, but also represents a very large employment
opportunity for people with diverse skill sets.
Today, there is a pressing need for the Indian electronics industry to persistently track and unravel the complexities
of the global supply chain, which is now being reshaped by a gamut of environmental compliance norms that have
come into force. Without an actionable ‘India Strategy’ relying on a set of appropriately benchmarked environment
management policies and implementation programmes, the competitiveness and growth of the electronics and
information technology (IT) industry are bound to be hamstrung. It is, therefore, absolutely essential for companies
to develop robust practices to avoid high non-compliance costs. Action in the global market place for cleaner
technology processes and recycling programmes has already gathered significant momentum.
The global electronics industry is growing rapidly. From an estimated size of US$950 billion in 2005, it is estimated to
grow to nearly US$2,100 billion by 2010. The market is dominated by Asian countries such as China, Taiwan,
Singapore and South Korea. The industry is characterized by rapid innovation and speed to market, short product life
cycle, highly automated manufacturing to give consistent quality at low cost, high volume production, continuous
improvement in capabilities for reducing costs and profit accrual through volumes. India's electronics industry is
nascent by global standards. Despite a population of over one billion, India has a relatively small electronics market.
It is ranked twenty-sixth worldwide in terms of sales and twenty-ninth in terms of production. The total size of the
industry in 2004-05 was US$11 billion.
RAJU MISHRA
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Consumer electronics
The Consumer electronics industry contributes about 33.80 per cent of the total electronics production in
India. The total production of consumer electronics was US$3.74 billion in 2004-05, registering a growth of
13 per cent over production in the previous year. The growth has been primarily powered by colour
televisions (CTV), which grew from 8.9 million units in 2003-04 to over 10 million in 2004-05. CTV growth
in turn is driven by growth in Flat Screen TVs (FST) that is estimated to constitute nearly 20 per cent of the
CTV market. Other growth segments in consumer electronics include microwave ovens and VCD/MP3
players – the microwave oven industry is estimated to be growing at the rate of 25-30 per cent.
These trends are a reflection of increasing consumption and aspiration levels among Indian consumers,
driven by demographic and lifestyle changes. As these trends are positive for the future, the outlook for
consumer electronics segment is quite positive.
RAJU MISHRA
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DECLARATION
I hereby declare that the following documented Project Report titled “To know the footprint of Philips in
Indore market” is an authentic work done by me.
The Study was undertaken as a part of the course curriculum of BBA Full Time Program of faridabad
college of engineering and management Affileted to Maharshi Dayanand University
RAJU MISHRA
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CONTENTS:
EXECUTIVE SUMMARY
Philips has been a leading brand in electronics in India and across the world. Philips with its wide range of
products caters to the premium segment of the market. Philips faces intense competition, especially from
the low-cost, local rivals of the market. With this intense competition, Philips has to cater to the various
needs and demands of their consumers.
This project aims at identifying various problems faced by the company in Indore Market and the consumer
preference with reference to Electronics, Electricals and Personal Care Products. Through this project I
have found out that Philips faces intense competition from the local rivals and the major market share
belongs to the low-cost companies. Also, Philips as a whole needs to reposition itself and its products
especially to get over of the image created in the minds of the gentry that Philips deals best in lightening
products.
For this project the primary data was collected through questionnaire and secondary data was collected
through internet and magazines.
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Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on
improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting,
Philips integrates technologies and design into people-centric solutions, based on fundamental customer
insights and the brand promise of “sense and simplicity”.
Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60
countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care,
acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as
lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male
shaving and grooming, portable entertainment and oral healthcare.
Global Footprint
Philips is a global leader across its healthcare, lighting and lifestyle portfolio:
We are the world’s largest home healthcare company, being number one in: Monitoring systems,
Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.
We are number one in lamps in Europe, Latin America and Asia Pacific and number two in North
America; in Automotive lighting, we are leading in Europe, Latin America, Japan and Asia Pacific.
We are number one in the electric shavers and male grooming category globally.
Philips is one of the leading flat-TV brands globally.
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Mission
"Improve the quality of people’s lives through timely introduction of meaningful innovations."
Vision
“In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing
sense and simplicity to people.”
Values
“Our Values reflect the ambitions we have laid down in “Vision 2010”, our recent strategy update. The
Values, the four Ds, are like a compass – guiding us in how we behave every day, and reminding us of the
attitudes we should have towards our work, our customers and our colleagues.”
Delight Customers
discipline
Develop people
As one of the nation's most well-known and well-loved brands, Philips is a part of practically
every Indian's life. With recent launch of Philips Respironics product categories in obstructive sleep apnea
management and home respiratory care, home decorative lighting range and ALU range, Philips products
find use in virtually every aspect of an individual’s daily life 24X7 - at home, at work, on the move and at
rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products
with superior design and technology that enhance the quality of consumers' professional and personal
lives.
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Philips has been operating in India for over 75 years and employs over 4,500 employees around the
country. The company has an excellent pan India distribution and after-sales service network
EVOLUTION OF PHILIPS AS A “BRAND”
Wherever encountered, the Philips brand is a familiar sight in millions of households and buildings
throughout the world with its instantly recognizable word mark of seven blue capitalized letters. Although
the company has evolved and grown over more than hundred years, Philips’ visual brand identity is rooted in
its early years at the beginning of the 20th century.
Established in 1891 in Eindhoven, the Netherlands, Philips & Co. was founded to meet the growing demand
for light bulbs following the commercialization of electricity.
In the early years of Philips & Co., the representation of the company name took many forms: one was an
emblem formed by the initial letters of Philips & Co., and another was the word Philips printed on the glass of
metal filament lamps.
One of the very first campaigns was launched in 1898 when Anton Philips used a range of postcards showing
the Dutch national costumes as marketing tools. Each letter of the word Philips was printed in a row of light
bulbs as at the top of every card. In the late 1920s, the Philips name began to take on the form that we
recognize today.
The now familiar Philips waves and stars first appeared in 1926 on the packaging of miniwatt radio
valves, as well as on the Philigraph, an early sound recording device. The waves symbolized radio waves,
while the stars represented the ether of the evening sky through which the radio waves would travel.
In 1930 it was the first time that the four stars flanking the three waves were placed together in a
circle. After that, the stars and waves started appearing on radios and gramophones, featuring this circle as
part of their design. Gradually the use of the circle emblem was then extended to advertising materials and
other products.
At this time Philips’ business activities were expanding rapidly and the company wanted to find a
trademark that would uniquely represent Philips, but one that would also avoid legal problems with the
owners of other well-known circular emblems. This wish resulted in the combination of the Philips circle and
the word mark within the shield emblem.
In 1938, the Philips shield made its first appearance. Although modified over the years, the basic
design has remained constant ever since and, together with the word mark, gives Philips the distinctive
identity that is still embraced today.
To establish consistent global presence, in 1995 Philips introduced the first global campaign in 1995
under the tagline “Let’s make things better”. This theme encapsulated the “One Philips” thinking and was
rolled out globally in all markets and on all Philips products. This was also the first campaign that bought the
whole company together, giving the employees a sense of belonging and providing a unified company look
for an external audience.
In September 2004, Philips launched its “sense and simplicity” brand promise, which marked a new
way forward for the company. “Sense and simplicity” reflects Philips’ commitment to be a market-driven
company that provides products and services that fulfill the promise of being “designed around you, easy to
experience and advanced”.
In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion and was ranked
the 43rd most valuable brand in Inter brand’s 2008 ranking of best global brands.
Meanwhile, the key reason behind this initiative lies in the growing potential of the rural market.
According to industry data, while in 1997-98, rural sales formed about 25 per cent of the total sales for CTVs,
refrigerators and washing machines, it increased to 36 per cent in 2001-2002 and is expected to go up to as
high as 41 per cent in 2006-07. Apart from initiating new marketing and distribution programmes, Philips will
also be launching a range of new products during the rural initiative. Meanwhile, Philips plans to implement
an innovative FMCG style marketing strategy to push its durables in the rural segment. The Mahasangram
Integrated Marketing Programme is essentially about implementing a non-durables strategy marketing in a
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consumer durable segment. The management is planning effective use of a number of media vehicles to
ensure efficient communication of the message and maximum utilization of the money spent. The advertising
and marketing strategy will be a combination of above-the-line and below-the-line/ on-ground activities.
Various promotional activities which Philips plans to initiate during the Mahasangram include a series
of on-ground activities such as point of sale material at retailers' counters, road-shows, mobile vans with
Philips products on display and games, innovative tactics like advertising on an inland letter form or postcard
(a popular form of communication in rural areas) and sponsorship of local events, among other things.
On the distribution front, Philips claims to have the biggest distribution network (as compared to
other consumer electronics companies) and a high degree of penetration even in the rural and semi-urban
areas. The company has carried out an extensive product-wise mapping exercise over 540 districts across
India. Keeping in mind the objective of extensive physical reach of 80 per cent plus, where portable audio is
concerned, the company has developed a second line of activity in the distribution set-up. Also, in order to
cater to volume drivers i.e., major retailers, company has identified the main retailers of each distributor and
practice the Key Account Management Approach with them, so that there is a focus on improving relations,
trade with these retailers, and catering to their needs. These steps have helped in developing their volume
reach, geographical reach and counter share significantly.
Philips is hoping that its innovative rural marketing initiative coupled with the high growth in the rural market
will boost its market share.
The company launched an aggressive new advertising campaign in print, television and online. The
new tagline "Sense and simplicity" showcases the new brand promises -- using technology to make life
simpler and easier. Company sources say Philips is counting on the new campaign to help it grow by at least
25 per cent this year.
That's in the future, but how did Philips almost double its market share in under four years? Interestingly, the
company didn't adopt radically different strategies.
It paid attention to what customers wanted; passed on cost benefits; and brushed up its admittedly fuddy-
duddy image. According to Mr. D Shivkumar, executive director, consumer electronics, Philips, "We have
managed to grow the business by focusing on the price -- quality equation."
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The company was constantly refining the image of the company in the minds of the consumer,
making it more modern. But that wasn't enough. That's where in-store displays and promotions that
demonstrated the abilities of Philips products came in. In October 2003, JWT broke the "Ramu kaka" ad,
where the manservant inadvertently inserts a roti into the DVD player.
The tagline made the message clear: "The new Philips DVD player plays anything". The campaign
proved immensely popular - it was used in other Asian countries as well -- and Philips wasn't slow in
leveraging its appeal. At live demos, customers would be invited to slip rotis into the player, creating a buzz
around the product and the brand.
But that would probably appeal more to families and Philips needed to reach out to the youth, its
target customer base. So it went to where the action was -colleges and rock festivals.
Philips set up stalls, complete with a professional DJ. Youngsters were invited to man the console,
while the DJ gave them tips on mixing and spinning. And had huge walk-ins and could provide an
involvement and experience with the brand.
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The company also paid close attention to customer feedback. It has ramped up the number of service centres
across the country to 190, from 125 two years ago. Today, over 900 technicians now attend to complaints, up
from 600 in 2002.
Healthcare
Philips simplifies healthcare by focusing on the people in the entire “cycle of care” - whether it is in
the hospital or in the home – patients and care providers. Philips Healthcare in India operates in the
diagnostic imaging segment including CT, MRI, X-rays, cardiovascular system, nuclear medicine, PET-CT, and
ultrasound imaging systems, and is also a significant player in patient monitoring. Recently, Philips
Healthcare announced its entry into the fast-growing Indian home healthcare market by introducing the
Philips Respironics product categories in obstructive sleep apnea management and home respiratory care.
Through combining human insights and clinical expertise, Philips aims to improve patient outcomes while
lowering the burden on the healthcare system. Outstanding image quality and reliability, backed by an
excellent application, and customer support network, has made Philips Healthcare a preferred choice of
clinicians and one of the leading suppliers of diagnostic imaging systems. Philips is the clear leader in cathlabs
segment with the most comprehensive range of innovative cardiology solutions in India.
With a strong focus to drive growth from emerging markets, Philips Healthcare announced the first
patient monitor designed for emerging markets, Philips SureSigns VM3, in India. This series of new portable,
compact patient monitors provides a reliable, yet affordable means to observe and care for patients. With the
acquisition of India-based Alpha X-Ray Technologies and Meditronics, Philips also expanded its healthcare
business to cater to the high-growth economy segment for Cardiovascular and General X-Ray systems.
.
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Lighting
Philips Electronics India, India’s largest lighting company operates in business areas
of Lamps, Luminaires, Lighting Electronics, Automotive and Special Lighting. Today, as
global leader in Lighting, Philips is driving the switch to energy-efficient solutions. With
worldwide electrical lighting using 19 per cent of all electricity, the use of energy-efficient
lighting will significantly reduce energy consumption around the world and thereby cut
harmful CO2 emissions. Philips India has been consistently working with industry bodies
such as ELCOMA, Bureau of energy efficiency and NGOs towards addressing India’s power
crisis through promotion of energy efficient lighting in India.
Philips provides advanced energy-efficient solutions for all segments: road lighting,
office & industrial, hospitality and home. Philips is also a leader in shaping the future with
exciting new lighting applications and technologies such as LED technology, which, besides
energy efficiency, provides attractive benefits and endless new ‘never-before-possible’
lighting solutions.
In 2008, Philips inaugurated a global research and development (R&D) centre for
lighting electronics in India. This was its third such unit in the world. The facility which is
situated in Noida will not only cater to the needs of the Indian market but also the Asia-
Pacific, Europe and North America. The other R&D centres are located at Eindhoven in the
Netherlands and in Shanghai, China. One of the primary research areas for the centre is to
develop products that can tackle high voltage fluctuations in India. The centre currently
employs 35 engineers. Around 40 per cent of Philips’ revenue in India comes from the
lighting business.
Consumer Lifestyle
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Guided by the brand promise of “sense and simplicity” and the consumer insights,
Philips Consumer Lifestyle offers rich, new consumer experiences that meet consumers’
desire for relaxation and improving their state of mind. Philips also responds to the
consumer's desire for wellness and pleasure by introducing products that meet the
individual’s interests in terms of their mind, space, body and appearance.
The Consumer Lifestyle arm in India operates in the business areas of Home
Entertainment solutions and Personal Infotainment with product categories such as TVs,
home theatre systems, music systems, DVD players, personal entertainment solutions,
sound accessories, Domestic Appliances and Personal care.
Accessories
Phone Accessories
Audio/ Video Accessories
MP3 Players Accessories
Head Phone
Remote Controls
Mother And Child Care
Power Solutions
Personal Care
This includes –
Men’s Shaving
Men’s grooming
Female depilation
Hair care
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Working at PIC are about 1000 of the industry's finest professionals, using state-of-the-
art software engineering paradigms and platforms including real-time systems, component-
based software engineering and multi-threaded architecture to drive the creation of
tomorrow's products and services. PIC is an ISO 9001/TickIT, SEI, CMM SM level 5 company &
has emerged as a critical partner in the development of strategic & futuristic technologies for
Philips worldwide. 60,000 registered patents illustrate the innovative nature of the company.
Philips has adopted an Open Innovation strategy which leverages the joint innovative power of
partnering companies and researchers to bring more innovations to the market effectively and
faster. PIC has built-up extensive know-how and expertise in the software engineering and
technology domains relevant to its business. In addition, competencies in the areas of project
management, requirement engineering and quality assurance have been established to offer
customers products and services of the highest quality, at the fastest time-to-market and the
lowest cost of ownership.
Sustainability
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Philips also takes a leading position in educational programs, showing its stakeholders
that energy efficient solutions are simple, easy and actionable and make economic sense for
national and local governments, businesses, schools and individuals.
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PRODUCT DETAIL
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Philips India ltd. is the Indian counterpart of Royal Philips Electronics. Originally established as
Philips Electrical Co. (India) Pvt. Ltd, Philips was born in India in Kolkata in 1930. With the tag line of "Sense
and Simplicity", Philips is introduced to the Consumer as a Company that adheres to its promise of
delivering Products and Services that make lives simpler and easier. Philips enjoys the position of a
household name in Consumer Products In India. Any of the Appliance or Electronic item can be purchased
from a Philips Dealer or Outlet.
The Annual Reports of the Company show considerable growth owing to a well planned and
maintained Research and Development System. Philips India Ltd. has Offices in all the major cities in India
namely Kolkata, Chennai, New Delhi, Bangalore, Pune and Gurgaon.
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The Corporate Office is situated at MuBBAi. The CEO of Philips Electronics India Limited, Mr. K
Ramachandran, along with the Chairman, Mr. S.M. Datta and the entire team of directors has been
successful in taking Philips to new heights in Indian Consumer Appliances Market.
Philips SA3125
Phillips 2GB MP3 MP4 Player SA3125
Philips SA3115
Philips SA1355
Audio format MP3 / WAV / WMA
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Philips HR1350
Model Code : HR 1350 ...
Philips 32PFL7332
HDTV Ready, Image resolution of 1366 x 768 pixels, 16:9 aspect ratio
Juicer
HR1861/00 700W
- Dishwasher-safe
- Extra large capacity
- Extra large feeding tube
2 jar
- Auto shut-off
- Compact design for less sto ...
- Easy to pour and store
Mixer Grinder
Iron
Men’s Shaving
- UltraTrack
- Patented Super Lift&Cut Act ...
Hair Care
Hairdryer HP8202
- Ion conditioning
- 1600W
- EHD+ technology
Lady Shaver:
Epilator
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SERVICES
· Philips products have reached millions of consumers in India.
· Products discarded by consumers turn into electronic waste.
· This E-Waste is hazardous for the environment, and to human health.
· Efforts are needed to dispose off these products in an environment friendly manner.
· Philips India has initiated a voluntary take back and recycle program.
At Philips we offer consumers a convenient way of recycling their unwanted, obsolete and damaged
Philips products by dropping them off at convenient locations. The program encompasses 8 major cities
across India. Consumers can approach one of 27 authorized Philips service centres, which will act as
collection points for consumer products which need recycling. Our efforts are to expand the network in the
near future.
Philips ensures that the consumer products received will be recycled in an environment-friendly
manner. Philips understands the corporate social responsibility and takes steps towards providing a safer
environment to the future generations. We design our products to continuously realize improvements and
reduce their overall life cycle environmental impact. Designing products for recycling is an integral part of
this approach. Our aim is to use our planet’s limited resources effectively and respect the principle of
extended producer responsibility. This also calls for manufacturers to engage in developing solutions for
effective and efficient recycling of their products. We will continue to promote and invest into improved
recycling systems to reduce the impact of electronic waste on the environment.
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PROJECT INTRODUCTION
To carry out the study of the Philips Electronics India Ltd. Policy, strategy and techniques adopted at
Indore market due to presence of other brands.
OBJECTIVES
To study consumer preference in reference to purchase of electronics, electrical and personal care
products.
To study the factors that affects the buying behavior for these ranges of products.
To analyze consumers and retailers perception about Philips’ Products.
To develop and suggest strategies that might help Philips Electronics India Ltd. To increase its
sales in Indore.
To find new practices for maintaining good relationship with retailers.
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RESEARCH METHODOLOGY
Sample Technique:-
The probability sampling has used to collect the date for research.
Sample Plan:-
Population:-
Retailers of electronics, electrical and appliances products as well Gifts and personal care shops.
Sample:
Retailer of electronics, electrical and gift items.
Sample Unit:
All the region of Indore where electronics, electrical, appliances, gift and personal care shop available.
Sample Size
The sample size of the survey was 104 retailers.
The data used for the project is primary as well as secondary data, as follow:
DATA ANALYSIS (0n the basis of electronics, electricals and appliances shop
Data Analysis (On the basis of Gifts and Personal care Shops):-
15. Why not interested in Philips’s Personal care products (where it not present)?
The cost and time constraints might even have an impact over the results.
FINDINGS
Improper distribution.
Poor service after sales, Service centre take much time to return products.
Philips gives fewer profit margins to retailers as compare to his competitive brands.
SUGGESTIONS
They should prefer proper distribution.
They should provide some good scheme and offers to his retailers as well
customer.
Give proper information to the retailers about new products and provide
catalogue.
They should improve their post sales services.
CONCLUSION
The conclusion that can be derived from this survey is that Philips being a big brand, and a quality striver is
hit by the low- cost rivals. But the segment it caters is highly satisfied and constitutes immense “Brand
Loyal”. To boost its sales the company may need to adopt, certain measures for its repositioning and can
adopt differentiation strategies and proper distribution of their products including schemes and post sales
services for the consumers in Indore region and turning low cost itself for the rest.
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REFERENCES:-
BIBLIOGRAPHY
C. R. Kothari, Research Methodology, new Age International (P) Limited, publishers
WEBLIOGRAPHY
http://www.india.philips.com/about/company/india/index.page
http://www.philips.com/about/investor/index.page
http://en.wikipedia.org/wiki/File:Philips_logo_new.svg
http://www.india.philips.com/about/sustainability/index.page
http://www.philips.co.in/c/food-processors-mixers/24538/dec/
http://www.lighting.philips.co.in/v2/index.jsp
http://www.india.philips.com/
http://www.gsmarena.com/philips-phones-11.php
http://www.philips.co.in/#/headernav/consumer/
http://www.usa.philips.com/
http://www.google.co.in
http://www.annualreport2008.philips.com/pages/we_care_about/
opportunities_in_emerging_markets.asp#open
http://www.business-standard.com/india/news/philips%5C-new-design-for-growth/401050/
http://www.telegraphindia.com/1100420/jsp/business/story_12358542.jsp
http://www.godfreyphillips.com/
http://www.research.philips.com/
http://www.philipslumileds.com/
http://www.electronicserviceco.com/