Philips launched its Vardaan TV series in 2003 targeting rural Indian markets. The Vardaan series had 35 models priced between Rs. 5,690 to Rs. 10,990 and was designed to withstand voltage fluctuations common in rural areas. Philips expanded its dealer and distributor networks to boost rural distribution of Vardaan TVs and increased its ad budget for rural promotion activities like wall paintings and radio advertising.
Philips launched its Vardaan TV series in 2003 targeting rural Indian markets. The Vardaan series had 35 models priced between Rs. 5,690 to Rs. 10,990 and was designed to withstand voltage fluctuations common in rural areas. Philips expanded its dealer and distributor networks to boost rural distribution of Vardaan TVs and increased its ad budget for rural promotion activities like wall paintings and radio advertising.
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Philips launched its Vardaan TV series in 2003 targeting rural Indian markets. The Vardaan series had 35 models priced between Rs. 5,690 to Rs. 10,990 and was designed to withstand voltage fluctuations common in rural areas. Philips expanded its dealer and distributor networks to boost rural distribution of Vardaan TVs and increased its ad budget for rural promotion activities like wall paintings and radio advertising.
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• 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