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MBA 4-B
Respected Sir
All statistical data used is authentic and real as on April 30, 2008. All
issues that were relevant to the topic have been covered in this
report in great detail.
Sincerely,
Saleha
Respected Sir
This report has proved to be a great experience. For this, I would like
to thank our course instructor “Mr. Kashan Pirzada” for providing us
the opportunity, as well as his guidance in the light of his vast
experience.
Sincerely,
Saleha
May30, 2008
Sincerely,
Saleha
1. Abstract 9
2. Introduction 10
3. History at glance 12
4. Philips Pakistan looking to the future 15
5. Philips Pakistan dealing with 16
6. Philips Pakistan today 19
7. Mission statement 20
8. Company objectives 21
9. Best Strategy 22
10. Business 24
11. Lighting about Philips 26
12. Product sector overview 32
13. Structure of Philips Pakistan 33
14. Segmentation 34
15. Suggestions for segmentation 38
16. Positioning 42
17. Suggestions for positioning 44
18. Financial strategy 46
19. HR strategy 47
20. Bibliography 48
R
oyal Philips Electronics of the Netherlands is one of the world’s
biggest electronics companies and Europe’s largest, with sales
of EUR 32.3 billion in 2001. It is a global leader in color
television sets, lighting, electric shavers, medical diagnostic imaging
and patient monitoring and one-chip TV products. Its 186,090
employees in more than 60 countries are active in the areas of
lighting, consumer electronics, domestic appliances, components,
semiconductors, and medical systems. Philips is quoted on the NYSE
(symbol: PHG), London, Frankfurt, Amsterdam and other stock
exchanges.
Global Leader
Thirty percent of offices around the world are lit by Philips Lighting,
which also lights 65 percent of the world's top airports, 55 percent of
soccer stadium, and 30 per cent of hospitals.
The foundations for what was to become one of the world's biggest
electronics companies were laid in 1891 when Gerard Philips
established a company in Eindhoven, the Netherlands, to 'manufacture
incandescent lamps and other electrical products'.
Philips' first electric shaver was launched in 1939, at which time the
Company employed 45,000 people worldwide and had sales of 152
million guilders.
Overall Philips Pakistan is looking to the future with high hopes and
aspirations. They are ceaselessly endeavoring to provide the consumer
with the best of life and will continue to engage in ventures that enable
them to do so in conjunction with their philosophy of “Making Things
Better”.
Distribution Points : 11
Employees : 972
Brand Building
Philips' brand name is the company's most important asset. It guides
the direction of and shapes the content of its activity, from R&D to
delivery of world-beating products and customer service.
Business Excellence
Philips Measures:
The tools and approaches in the BEST initiative all are based on these
two focal areas and all fit in the improvement cycle:
The 1990s was a decade of significant change for Philips. The company
carried out a major restructuring program to return it to a healthy
footing. And more recently it has been concentrating on its core
activities. Today, Philips is at the leading edge of the digital revolution,
introducing world-class products that are helping to improve people's
lives as we continue into the new millennium.
The division’s products are found all around the world: not only
everywhere in the home, but also in a multitude of professional
applications, for example 30 per cent of offices, 65 per cent of the
world’s top airports, 30 per cent of hospitals, 35 per cent of cars and
55 per cent of football stadiums (seven of the ten at the 2002 Soccer
World Cup in Japan/Korea).
≈ The CLEO Natural range of tanning lamps which apply the latest
scientific and medical knowledge in providing a sensible,
effective tan in a soft and gentle way.
≈ The UHP (Ultra High Power) lamp is currently the leading product
in the market for digital data projection in beamers connected to
PCs.
STYLIZED FLAME
Halogená Stylized Flame is an elegant Long Life alternative to standard
decorative incandescent bulbs. Its Long Life
means less hassle and lower maintenance as
well as energy savings. Available in both
candelabra and medium base, the Stylized
Flame provides a direct replacement to
standard incandescent decorative lamps and
is ideal for chandeliers, sconces or any
decorative fixture. Stylized Flame can also be used with a dimmer
swich, which provides additional energy savings.
≈ Process/functional structure
≈ Product based
≈ Matrix structure
≈ Demographic
≈ Geographic
≈ Life style/ Psychographic
≈ Usage
≈ Benefit
≈ Social class
≈ Usage
Usage:
Market can also be segmented into light-, medium-, and heavy user
groups of the product. Light user are those user who buy products
occasionally as far as medium user are concern they buy company
product but not as much as heavy users does. Heavy users are often a
small percentage of market but account for the high percentage of
total consumption.
Volume Segmentation:
Brand Segmentation:
Loyalty Segmentation:
♦ Hard-Core Loyals
♦ Split Loyals
Consumers who are loyal to two or three brands. The buying pattern A,
A, B, B, A, B represents a consumer with a divided loyalty between A
and B.
♦ Shifting Loyals
Consumer who shift from favoring one brand to another. The buying
pattern A, A, A, B, B, B would suggest a consumer who is shifting brand
loyalty from A to B
♦ Switchers
≈ Benefit segmentation
≈ Life style/ Psychographic
≈ Social class
≈ Season
Benefit Segmentation
A powerful form of segmentation is to classify buyers according to
different benefits they seek from the product. Each benefit-seeking
The previous table gives guide line as to how to capture the eyes of
consumer towards the benefit they can get from the Philips lighting.
Some of the basic benefits of
Energy savers
≈ For energy savers the benefit they are getting is that it saves
40% of the electricity
≈ Long life (Avg. 8000 hrs)
≈ Provide crisp white light
≈ Available in different shapes and sizes
Tube lights
≈ Spread light in wider area
≈ Economical
≈ Save electricity
≈ Long life (Avg. 3500 hrs)
≈ Easily available
Life style portrays the “whole person” interacting with his or her
environment. Marketers will search for relationship between their
products and life style group.
Social class
Social class have different characteristics first, person within each
social class tend to behave more a like than person from two different
social classes.
Seasonal Segmentation
In our view segmentation can also be done on the bases of season. In
winter the use of lights is more than summer. Because in winter the
duration of night is more, so there is a potential market for lighting
products.
Usage:
Many of the Philips products are sold on the basis of consumer usage
situation such as in offices Philips sold their branded table lamps
through direct marketing.
Against competitors
As a matter of fact there is no competitor of Philips lighting products
other then smuggled products, which is threatening for the company.
So Philips is looking towards the weak point of their competitors and
make positioning of its product on basis of it.
Benefits
Philips also positions its product on the basis of benefits. For example
Philips marketers surveyed the hotel (Sheraton) and have been found
that consumption of electricity was very high, which increased their
utility expenditure. Philips then suggested them to use energy savers
as they are long lasting and also save their electricity cost.
Financial strategy is the most important and integral part of any firm
that how a firms earn profit and how it does make the investments.
This is a very confidential part of any firm’s financial strategy.
http//www.phlips.com
BOOKS
International management by Hodgetts.
International business by Hugman and Hodgetts.