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Project presentationProject presentation

By -

V. Rajasekhar

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Overview

y Company overview

y Project

y Vizag market

y Major Fingings

y Analysis

y Recommendations

y Contributions

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About Philips

y Established in 1891 by Gerard Philips in Netherlands

y 3 main divisions- Consumer products, Lighting and Medical Systems

y Offices in Mumbai, Kolkata, Gurgaon, New Delhi, Chennai

y Different lighting applications include Industrial, Offices, Sports, City

beautification, Road and area etc.

y Different products include Lamps, Control gear, Luminaries etc.

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Project Title

y Part A:

To find the market potential and market share of Philips Lamps in

Vizag (upcountry routes)

y Part B:

To find the market potential and market share of Philips T5

battens in Vizag market (all routes)

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About Project cont

Management decision problem:

y How to increase sales of Philips lamps and T5 Battens?

Market Research problem:

y What is the market potential and share of Philips lamps

y Who are the main competitors in the market for Philips

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About Project cont

1. Determine the presence of Philips

2. Reasons for selling other brands

3. Tap the untapped market

4. Find the reasons for untapped market in Vizag

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About Project cont

5. Increase the awareness level and promote the products

6. Increase the sales of Philips lamps in Vizag

7. Find out any issues with Philips in Vizag market

8. Analyze the data collected

9. Recommendations from the primary data collected from the

Vizag market

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Vizag Market Scenario

y For Philips, Vizag market is worth Rs. 25 Lakhs per month this year (last year

it was 20.2 lakhs per month)

(March 08

Rs.12.5lakhs Rs.12.5 Lakhs)

GLS-General Light

System Systems

TL-Tube Light

CFL-Consumption

ries Fluorescent Lamps

LE- Lighting Electronics

April 08Quantity in

pcs.

May 08Quantity in

pcs.

June 08Quantity in

pcs.

GLS 71,668 58,029 46,425

TL 36,403 22,917 18,066

CFL 22,100 5,300 10,545

LUM 2,598 740 1,180LE 1,030 543 657

Amount inRs.

51.35Lakhs

23.5 lakhs 25.4 lakhs

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Vizag Market Scenario cont

y As on 20th of this month, the sales value is Rs. 13.5 lakhs

y Vizag routes:

a) upcountry routes

b) key routesy Two types of sales:

a) direct van sales 1 salesman

b) order booking 2 salesmen

y In a month, a salesman pays two visits to each route

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Routes Visited (Part A)

Route 1 Aadarshnagar, Ravindranagar, Police Quarters

Route 2 Aarilova, Peddagadulu, Chinnagadulu

Route 3 Anandapuram, Devarapally, K.Kotapapu, Sabbavaram

Route 4 Chandranagar, Kothapalem

Route 5 Gnanapuram, Meghadripeta

Route 6 Gopalapatnam

Route 7 Kancherapalem

Route 8 Muralinagar

Route 9 NAD Kotharoad, Kakaninagar

Route 10 Naiuduthota, PendurthyRoute 11 P.M. Palem, Madhurwada, Ganeshnagar

Route 12 Relliveedhi Jalaripeta

Route 13 Sagarnagar

Route 14 Simhachalam

Route 15 Urvasi jn., Marripalem

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Routes Visited (Part B)

Route 1 1 Town Area

Route 2 Aasilmetta

Route 3 Akkayyapalem

Route 4 Alliparam

Route 5 Kailasapuram, H.B. Colony

Route 6 MVPColony

Route 7 Seetammadara, Maddilipalem

Route 8 Siripuram

Route 9 Suryabagh

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Cont

y The sample size for Part A is 614

y The sample size for Part B is 222

y The data about Philips & other branded GLS, TLs, CFLs,

Striplites sold has been collected from retailers

y Various reasons for selling other brands, if any, has been notedand then analyzed on the basis of the collected data

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Cont

Project Part A: In this part we have both Electrical(E) and Non-Electrical(NE) outlets

y No. of electrical (E) outlets- 119

(2 E are not visited, 1 is new) ------- 98.31% Reach

y No. of non-electrical (NE) outlets- 495

(44 NE are not visited, 11 are new) ------- 91.11% Reach

Copy of Project Part A.xls

Project Part B: Here we have only electrical outlets

y No. of electrical outlets- 222 ------- 100% Reach

Copy of Project Part B.xls

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Major Findings

Positive points:

y The distribution section is well organized Separate salesmen forPhilips

y The biggest advantage for this distribution section is the veteransalesmen

y There is no overlapping of routes

y The credit policy seems to be fine for a month, in some cases it iseven extended for good and handy customers

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Major Findings Cont

y Reach is good

y Cash discounts are given for spot payments

y Just in time stock delivery is an added advantage for key outlets

y Good salesman to customer relationship

y Only 1% of the damages can be recovered by distributor from

Philips

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Major Findings Cont

Areas to improve:

y Salesman not looking for new outlets

y Distributor is selling directly to the end user in some cases

y Quality issues- 10W bulbs

y Timely visit is effected in some routes due to more number ofoutlets

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Major Findings Cont

y B- class electrical outlets are unaware of the various products in

Philips

y

Retailers are not clear about the product features

y Promotion in the case of T5 Fittings isnt sufficient

y Philips is having a reach which can still be improved

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Analysis ( upcountry routes)

CategoryCategory Type of outletType of outlet Philips / monthPhilips / month Total Potential / monthTotal Potential / month

GLSGLS E(117)E(117) 11,60411,604 19,42719,427

NE(486)NE(486) 18,68218,682 34,24534,245

603 TOTAL603 TOTAL 30,28630,286 53,67253,672

TLTL E(115)E(115) 7,1657,165 13,33813,338

NE(122)NE(122) 1,2151,215 1,8461,846

237237 TOTALTOTAL 8,3808,380 15,18415,184

CFLCFL E(109)E(109) 1,9781,978 8,3808,380

NE(124)NE(124) 410410 2,4332,433

233233 TOTALTOTAL 2,3882,388 10,81310,813

STRIPLITESTRIPLITE E(91)E(91) 677677 4,5784,578

NE(8)NE(8) 1616 136136

9999 TOTALTOTAL 693693 4,7144,714

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GLS in upcountry routes

y Philips is having 57% (30,286pcs.) of the total market share (53,672pcs.)

y Wipro- 12% (6,569pcs.), Surya- 9%, Bajaj- 4%, Others- 18% (9,837pcs.)

Philips bulbs are priced higher than those of other brands. In spite of this

Philips is still leading the way because of the brand image

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Rates of other market players

Brand (GLS)Brand (GLS) Rupees/pc (RLP)Rupees/pc (RLP)

PhilipsPhilips 8.30Rs8.30Rs

NeoluxNeolux 5Rs5RsHindustanHindustan 5.50Rs5.50Rs

FloraFlora 6Rs6Rs

AplApl 6Rs6Rs

CemaCema 7Rs7RsSuryaSurya 7Rs7Rs

WiproWipro 7Rs7Rs

BajajBajaj 7.50Rs7.50Rs

y RLP- Retailer

landing price

y MRP of all the

GLS are same

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Tube-lights in upcountry routes

y Philips- 55% (8,380pcs.) of the total market share (15,184pcs.)y Surya- 26% (3,969pcs.),Crompton- 6%, Wipro- 2%,

others- 11% (1,712pcs.)

Philips TL(RLPs of 40W and 36W is Rs. 36.75 and Rs.38.75, MRP Rs.45). Rest areat RLP of Rs.36, MRP Rs.40

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CFL s in upcountry routes

y Philips share 22% (2,388pcs.) of the total upcountry marketshare (10,813pcs.)

y Wipro- 5%, Havells- 3%, Orpat- 1%, others- 69% (7,402pcs)

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Striplites in upcountry routes

y Philips- 15% (693pcs.)

y Others- 85% (4021pcs.) of the upcountry market share

(4714pcs.)

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Striplites in Vizag(all routes)

y Philips- 17% (2,795pcs.) of the total market share (16,854pcs.)

y Others- 83% (14,059pcs.) of the total market shareThe margin which Philips gives is less when compared to the

other brands

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Rates of other market players

BrandBrand

((StriplitesStriplites))

RLPRLP MRPMRP

PhilipsPhilips 220220 250250

ConaCona 150150 190190

CromptonCrompton 185185 250250

BajajBajaj 185185 260260

OthersOthers 150150 170170

y Others include local brands,

China products

yPhilips is having morevarieties when compared to

the other brands: Tarang

(Copper, Aluminium), New

tarang, Mirolta

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T5s in Vizag (all routes)

y Philips- 24% (357pcs.) of the total T5 battens market share(1,503pcs)

y Others- 76% (1,146pcs) of the same

China T5s rule the market as they are cheaper(RLP- Rs. 170,MRP-Rs. 200). TarangSlim (MRP- Rs. 450)

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T5 Price List

BRAND PRODUCT

(RLP/MRP)

Amount in Rs.

PRODUCT

(RLP/MRP)

Amount in Rs.

PRODUCT

(RLP/MRP)

Amount in Rs.

Philips Adreno (500/780) Vector (457/720) TarangSlim (370/450)

Crompton LiteLine (500/650) N/A SlimGold (350/425)

Havells E-LiteNew (475/720) E-LiteNew Popular

(#/650)

Eurostrip (#/425)

Oreva Sleek J5 (350/475) Premium J5 (295/415) N/A

Osram N/A T5 (330/450) &

(420/550)

N/A

Compact T5 (380/550) T5 (300/410) N/A

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Recommendations

y Increase the awareness level of wide range of productsPhilips have

y Salesmen should educate the customers on the product

features

y Promotion of T5s is a must. A poster should be designedand distributed in the market

y Spare parts of T5 battens should be made available in themarket- reduces risk level, improves sales

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Recommendations Cont

y Quality issues are to be taken very seriously before itdamages the brand image

y

Due to more number of outlets, just-in-time visits areeffected: there should be more salesmen in operation in thisroute; telephonic order booking could be done; increase theno. of visits from once in 15 days to twice in 15 days

y Distributor should never try to sell the products to endusers

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Contribution

y In the due course of the project:Sales:

Tarang Slim- 37pcsVector- 5pcs

Tarang- 2pcs13 new outlets (1E, 12NE) worth 3771Rs added to list

A total sales worth 20,132Rs added to the chart.

y Philips value addition to me: Immense

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References

yy www.google.co.inwww.google.co.in

yy www.lighting.philips.co.inwww.lighting.philips.co.in

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Thank You