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Term paper
Sub: Marketing Management
Topic: “Marketing plan of Philips television”

Submitted to:
Prof: Parveen Singh Kalsi
LSB

Submitted by;
Mohammad-Ehsanul-Haq
Roll: R315B51
MBA(GEN)ist

Acknowledgements
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I am thankful to Mr. Parveen Singh Kalsi for providing me the task of preparing the Term
Paper on the marketing plan of Philips Television. We at Lovely believe in taking
challenges and the term paper provided me the opportunity to tackle a practical
challenge in the subject of marketing. This term paper tested my patience at every step
of preparation but the courage provided by my teachers helped me to swim against the
tide and move against the wind.

I am also thankful to my friends and parents for providing me help at every step of
preparation of the Term Paper.

Introduction about the company

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Philips HQ in Amsterdam

Koninklijke Philips Electronics N.V. (Royal Philips Electronics Inc.), usually known as
Philips, is one of the largest electronics companies in the world, founded and
headquartered in the Netherlands. In 2006, its sales were €26.976 billion and it
employed 128,615 people in more than 60 countries. Philips is organized in a number of
sectors: Philips Consumer Lifestyle (formerly Philips Consumer Electronics and Philips
Domestic Appliances and Personal Care), Philips Lighting and Philips Healthcare
(formerly Philips Medical Systems).
The company was founded in 1891 by Gerard Philips, a maternal cousin of Karl Marx, in
Eindhoven, the Netherlands. Its first products were light bulbs and other electro
technical equipment. Its first factory remains as a museum. In the 1920s, the company
started to manufacture other products, such as vacuum tubes (also known worldwide as
'valves'), In 1927 they acquired the British electronic valve manufacturers Mullard and in
1932 the German tube manufacturer Valvo, both of which became subsidiaries. In 1939
they introduced their electric razor, the Philishave (marketed in the USA using the
Norelco brand name). Also on March 11th, 1927 Philips went on the air with a station
called PCJ now known as Radio Netherlands. It was broadcast to the Dutch East Indies.
The host of the first broadcast was Eddy Startz and from 1927 until he retired in 1969
hosted a show called Happy Station. The only time the station went off air was when the
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Nazis invaded Holland. At the end of the war PCJ changed its name to Radio
Netherlands and has been broadcasting to this day.
Philips started operations in India at Kolkata (Calcutta) in 1930 under the name Philips
Electrical Co. (India) Pvt Ltd, comprising a staff of 75. It was a sales outlet for Philips
lamps imported from overseas.In 1938 ,Philips India set up its first Indian lamp-
manufacturing factory in Kolkata. After the Second World War in 1948, Philips started
manufacturing radios in Kolkata. In 1959, a second radio factory is established near
Pune.
• In 1957, the company is converted into a public limited company, renamed
"Philips India Ltd".
• In 1965 on 3rd April, the millionth Philips radio is manufactured in India.
• In 1970 a new consumer electronics factory is started in Pimpri near Pune. (This
factory was shut down in 2006.)
• In 1982, Philips brought colour television transmission to India with the supply of
four outdoor broadcast vans to DD National during the IX Asian Games.
• In 1996, the Philips Software Centre was established in Bangalore (It is now
called the Philips Innovation Campus).
• In 2008, Philips India entered a new product category, water purifiers designed
and made in India, and exported to other countries.
As of 2008, Philips India has about 4,000 employees.

Marketing Plan Philips television:-

The marketing plan is the central instrument for directing and directing and coordinating
the marketing plan. The marketing plan operates at two levels:
1) Strategic and ; 2) Tactical.
The strategic marketing plan lays out the target lays out the target markets and the
value proposition the firm will offer based on the analysis of the best market
opportunities available. The tactical marketing plan specifies the marketing tactics,
including product features, promotion, merchandising, pricing, sales channels, and
service.
The marketing plan of the Philips television will include:
• Current situation of the product;
• Current situation of the market- market demographics and needs;
• Target market;
• SWOT analysis of the product;
• Keys to success;
• Environmental factors affecting the product;
• Mission ;
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• Marketing mix-Product, Pricing, Promotion; Channel; Service and internal

marketing.
• Marketing research;
• Financials;
• Controls;
Current product situation :-
The Philips company has a wide product range in the television segment. First we
should look at the major consumer electronics produced by the company and the history
of the consumer electronic goods manufactured by the company.

Philips Videopac G7000

1951 - introduced the Philishave two-headed rotary shaver, marketed in the USA under
the Norelco name.
1963 - introduced the Compact cassette.
1978 - introduced the laserdisc player, using technology invented in the 1960s.
1979 - introduced the Video 2000-system: a technically superior design, but a
commercial failure.
1982 - launched the Compact Disc in partnership with Sony.
1991 - introduced the CD-i, the Compact Disc Interactive system which had many
video-game console-type features, but was not a sales success .
1992 - launched the ill-fated Digital Compact Cassette format.
1995 - manufactured the Atari Jaguar's CD add-on for Atari.
1999 - launched the Super Audio CD in partnership with Sony.
2001 - successfully launched the Senseo coffeemaker, first in the Netherlands and from
2002 onwards, in other countries across Europe. It produces coffee by brewing from
custom-made pads containing coffee grounds. The original Senseo pads are produced
by Douwe Egberts. The Senseo has been available in the US since 2004.
2004 - Philips HomeLabs research center created the Mirror TV technology used in their
MiraVision television line.
2006 - introduced the Blu-ray Disc in partnership with Sony.
2008 - introduced flatscreen with WOW VX technology. (3D tv)
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2008 - introduced the Relationship Care range of Philips Intimate Massagers to the UK
market.
The company receives a royalty on every DVD manufactured. In the television segment
the company has been one of the prominent manufactures. Infact, Philips television
models were trend setters in the LCD and high definition segment. The variety provided
in the television segment by the company includes the 14 inch television to the LCD and
high definition segment. At present, the company’s product portfolio includes 26 models
in the colour television segment. Of the 5.2 million units CTV market valued at Rs 6,500
crore, Philips India targets to grow from eight per cent last year to 10 per cent for 2002
and 2003. TVs are expected to grow around six per cent, real flat TVs are targeted to
grow over 100 per cent, in the corresponding period.
AMBILITE RANGE:

TRADITIONAL RANGE
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Current market situation :

While the conventional 14-inch, 20-inch and 21-inc"With 75 per cent of Indian
households not having a CTV set, there is still growth potential of at least Rs 75,000
crore in the market. Though the company presently has only a six per cent market share
in the domestic market, it is aiming to better the figure by 2-4 per cent by the end of
2008. Philips has also launched the `Mirror TV' (which can be used as a mirror when
turned off), LCD TV and a vertical DVD player.
The Rs 700-crore consumer electronics division of Philips is targeting double digit growth
in 2004 on the back of aggressive product and marketing strategies.Ushering in the new
year, the Rs 1,668-crore Philips India Ltd has extended its product portfolio in the colour
television (CTV) segment by launching a new range of real flat CTVs with 10 features for
the first time. With a tagline ‘Ten features no other television can offer’, the new range hit
the Indian markets in the first week of January this year. The range is targeted at the
youth and opinion leaders.
Market trend:
In the current situation the television is not now a only source of entertainment as the
new and better source of entertainment have come up in the market. With the advent of
the I-phone the television manufactures are facing the tough time as now the person with
I-phone will have a handy communication box rather than the bulky televisions. But here
one thing is worth remembrance that the television market in India is still unexploited as
nearly half of the population still has no color television sets. It is still a source of
communication for the lower and middle class families. For a high income class group
the television is the has attained the position of the ornamental stuff in the drawing room.
So, the television industry has to change fast with the changing needs and utilities of the
product for the customers. Philips television now has to be cute to fit the drawing room
and good to fit the pockets of the middle class customers. The Philips has modified its
value set and the high definition and ambilite series is to suffice the needs of the
ornamental value. It also has the traditional range of the televisions like 14 inch
televisions to cater the need of the lower income groups.
Philips in the television segment is not the market leader as the LG, Sony and Samsung
have moved ahead in the market. In the current state of the competition Philips has to be
the market leader and go for the head on attack on the other players in the market as it
has strong base to do so. Besides, the Philips has the technology and image of simplicity
to the same.
At present, the company’s product portfolio includes 26 models in the colour television
segment. Of the 5.2 million units CTV market valued at Rs 6,500 crore, Philips India
targets to grow from eight per cent last year to 10 per cent for 2002 and 2003.
The Philips marketing platform increasingly is focusing on bringing new buyers into the
flat screen tv market. The customer base is not coming from existing Philips products or
competitors, rather it is coming from people entering into this particular product
category. The number of flat tv‘s sold in the last year is up by 15 million from the
previous year, and this means that there are many opportunities for Philips to make a
first impression on consumers. Currently, the message coming from the Philips
advertising base seems to be pointed at the early decision making process in the tv