ABSTRACT

PE Electronics Ltd is a new business unit that brings together two premium brands Philips (range
of television products) and Electrolux (range of Home Appliances) that complement each other
as a single entity under a unique brand licensee agreement. Philips is a range of Television
Products and Electrolux is a range of Home Appliances. They set up in April 2010; PE
Electronics Ltd. is headquartered in Mumbai and will operate in 9 zones with 24 branch offices
across the country. As part of PE Electronics, the Philips product range will consist of High
definition LEDs, LCDs and Ultra Slim Color TVs. The Electrolux product range will consist of
Refrigerators, Washing Machines, Microwave Ovens and Air- Conditioners.

The main objective of the research is to find out the condition of Philips service in the
market and know where consumers and dealers are satisfied with the services which are provided
to them.

Research Objectives are study of the awareness of the product ,Buying behavior of the
customer ,analysis of the demand ,quality of product, market shares of company, Dealers selling
strategies, Performance of the product and customer satisfaction.

Findings of the project are 99% respondents were aware of PHILIPS LED. About quality
of PHILIPS LED numbers of respondents have positive perception greater than negative
perception because 93% dealer perceives positive attributes of PHILIPS LED as against 7%
negative.

From the above project I learned that Philips is the reputed brand in the SATNA REGION
because the brand awareness is about 99%. Philips as brand also has other competitors in the
market.

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 INTRODUCTION

PHILIPS ELECTROLUX Electronics Limited India is a new business unit that brings
together two premium brands Philips and Electrolux that complement each other as a single
entity under a unique brand licensee agreement. Philips is a range of Television Products and
Electrolux is a range of Home Appliances. They set up in April 2010; PE Electronics Ltd. is
headquartered in Mumbai and will operate in 9 zones with 24 branch offices across the country.
As part of PE Electronics, the Philips product range will consist of High definition LEDs, LCDs
and Ultra Slim Color TVs. The Electrolux product range will consist of Refrigerators, Washing
Machines, Microwave Ovens and Air- Conditioners.

Brands like LG, Samsung, Videocon, and Onida, inclusive of Igo, have been able to
confirm their presence and during 2011 their combined market presence was 77.5 percent
compared to 58.3 percent in 2010. However, their absolute numbers have reduced. Sales of some
other brands such as the following in the 0.1 to 0.2 million category like Haier, TCL, Samsung,
Oscar, Sony, Panasonic, Philips, Onida, Videocon.

In the present scenario Samsung, Sony, and LG are the major players in the segment
with a market share of 61 percent during 2011. In 2010, these companies held a combined
market share of 81 percent. Other companies like Videocon, Toshiba, and Panasonic are
quickly gaining ground in this segment.

Project Outline:

Our main objective is to compare the Philips LED with other competitive brands i.e.
Samsung, Sony, LG, Videocon, Sansui, Onida, and Panasonic.

1) Research was conducted at PE-electronics SATNA .

2) Data was collected about Dealer i.e. no. of stocks, brands etc

3) Survey was conducted to understand that how many are aware of Philips product.

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 LITERATURE REVIEW
Company Overview
PHILIPS INDIA

Philips began operations in India in 1930 with the establishment of Philips Electrical
Co. (India) Pvt Ltd in Kolkata as a sales outlet for imported Philips lamps. In 1938, Philips
established its first Indian lamp-manufacturing factory in Kolkata. In 1948, Philips started
manufacturing radios in Kolkata. In 1959, a second radio factory was established near Pune. In
1957, the company converted into a public limited company, renamed "Philips India Ltd". In
1970 a new consumer electronics factory began operations in Pimpri near Pune; the factory was
closed in 2006. In 1996, the Philips Software Centre was established in Bangalore, later renamed
the Philips Innovation Campus. In 2008, Philips India entered the water purifier market.

PHILIPS
Koninklijke Philips N.V. (Royal Philips, commonly known as Philips) is a Dutch
diversified technology company headquartered in Amsterdam with primary divisions focused in
the areas of Healthcare, Consumer Lifestyle and Lighting. It was founded in Eindhoven in 1891
by Gerard Philips and his father Frederik. It is one of the largest electronics companies in the
world and employs around 122,000 people across more than 60 countries.

Board of Directors
Non-Executive Director & Chairman S. M. Datta
Managing Director Krishna Kumar Ananthasubramanian
Executive Director Jan-Hein Louwman
Chief Executive Officer Krishna Kumar
Consumer Lifestyle ADA Ratnam

Chief Financial Officer Jan-Hein Louwman

Human Resources Krish Shankar

Lighting Nirupam Sahay

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Strategy & Business Development Priyank Agarwal

Chief General Counsel Rajiv Mathur

Philips Innovation Campus Srinivas Prasad

Chief Marketing Officer Vivek Sharma

Company Profile

Royal Philips- is a diversified health and well-being company, focused on improving peoples
lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and
Lighting. Headquartered in the Netherlands, Philips posted 2013 sales of EUR 23.3 billion and
employs approximately 115,000 employees with sales and services in more than 100 countries.

The company is a leader in cardiac care, acute care and home healthcare, energy efficient
lighting solutions and new lighting applications, as well as male shaving and grooming and oral
healthcare.

Product Range:
There are various series in LED

LED SERIES 3500

MODEL MRP SPECIFICATION

24PFL3538 `16,990/- LED, HD Ready, CRYSTAL CLEAR, 120Hz Perfect Motion
Rate, 6W SOUND, USB, HDMI

LED SERIES 3900

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MODEL MRP SPECIFICATION
32PFL3938 `27,000/-
24PFL3938 `15,000/- LED, Full HD 1080p, Pixel Plus HD, 120Hz Perfect Motion
22PFL3938 `14,000/- Rate, 16W SOUND, USB, HDMI
20PFL3938 `12,000/-

LED SERIES 4700

MODEL MRP SPECIFICATION

50PFL4758 `79,000/-
46PFL4758 `69,000/- LED, Full HD 1080p, Pixel Plus HD, 120Hz Perfect Motion
40PFL4758 `44,000/- Rate, 20W SOUND, USB, HDMI
40PFL4757 `46,990/-
32PFL4738 `27,000/-
32PFL4737 `27,990/-
29PFL4738 `21,500
24PFL4738 `15,990
22PFL4758 `14,000

LED SERIES 4900

MODEL MRP SPECIFICATION

32PFL4938 `27,000/- LED, HD Ready, Pixel Precise HD, 240Hz Perfect Motion
29PFL4938 `21,490/- Rate, 16W SOUND, USB, HDMI

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LED SERIES 5500

MODEL MRP SPECIFICATION

42PFL5578 `60,990/- DDB, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
32PFL5578 `34,990/- Rate, 20W SOUND, USB, HDMI

LED SERIES 5900

MODEL MRP SPECIFICATION

29PFL5937 `23,490/- LED, HD Ready, Pixel Plus HD, 120Hz Perfect Motion
Rate, 16W SOUND, USB, HDMI

LED SERIES 6300

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MODEL MRP SPECIFICATION
50PFL6358 `89,000/- LED, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
46PFL6358 `79,000/- Rate, 20W SOUND, USB, HDMI
40PFL6358 `53,000/-

LED SERIES 6900

MODEL MRP SPECIFICATION

42PFL6977 `60,990/- DDB, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
32PFL6977 `34,990/- Rate, 20W SOUND, USB, HDMI, 2 or 1Year HD D2H Subscription.

LED SERIES 7900

MODEL MRP SPECIFICATION

42PFL7977 `75,990/- DDB, Full HD 1080p, Perfect Pixel HD, 240Hz Perfect Motion
32PFL7977 `49,990/- Rate, 20W SOUND, USB, HDMI, 2 or 1Year HD D2H Subscription.

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 OBJECTIVE

To determine the market share of Philips LED TVs & other competitive brands.

To identify the factors influencing consumer purchase decision in SATNA REGION.

Study of dealer Awareness about LED and DDB in SATNA REGION.

To know the dealer and consumer satisfaction towards service.

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 RESEARCH METHODOLOGY
Research is the systematic design, collection, analysis and reporting of data and findings
relevant to a specific situation or problem. The objective of this section is to describe the
research procedure and methods that have been adopted for the achievement of the project
objectives.

Research Design-
Descriptive Research Method:

Descriptive Research method attempts to determine the extent of differences in the needs,
perceptions, attitude and characteristics of subgroups. It determines the answers as to
who, what, when, where, and how questions .For E.g. identify the demographics of the
consumers who purchase electronics products. My research is Survey in nature.

Sampling Design-

Sample Size -70

Sampling Framework -SATNA REGION
Sampling Method -Systematic Sampling.

Data Collection-
Method of Data collection: In order to study the consumer perception regarding the uses
of Philips Products with respect to other companies in SATNA REGION both primary and
secondary data will be collected.

The Secondary Data as it has always been important for the completion of any report
provides a reliable, suitable, equate and specific knowledge. The data will collect from
websites published by the company.

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 Sampling Technique: The study proposed to use convenience sampling.

Sample Area: In order to make a comparative analysis study the consumer perception as
well as dealer & retailers perception of Philips products with respect to its competitor, the data
for the study has been collected through a survey of Dealers/Retailers of SATNA City and
surroundings.

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 CASE STUDY

EXHIBIT A

Q.1) which of the following brands of LED does you keep in your showroom?

Brand Name No. of Respondents

1. PHILIPS 53
2. LG 53
3. SAMSUNG 57
4. SONY 55
5. SANSUI 51
6. VIDEOCON 47
7. ONIDA 43
8. PANASONIC 27
9. OTHER 30

Table No. 5.1

It can be observed from the above exhibit, Fig 5.1 shows that out of 70 dealers or retailers
who were part of survey in SATNA and surroundings where 53 keep PHILIPS in their
showroom, 53 keep LG, 57 keep SAMSUNG, 56 keep SONY, 51 keep SANSUI, 47 keep
VIDEOCON, 43 keep ONIDA, 27 keep PANASONIC, and 30 keep other than above brands.

HOW MANY BRANDS KEEP DEALERS IN SHOWROOM

53 53 57 55 51 47 43
27 30

Fig 5.1

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 EXHIBIT B

Q2) Are you aware

AWARENESS OF NO. OF
about the PHILIPS LED RESPONDENTS PERCENTAGE Philips
LED?
YES 69 99%

NO 1 1%

TOTAL 70 100%

Table No. 5.2

It can be observed from the above exhibit, that from 70 respondents 99% dealers are
aware of PHILIPS LED. 1 % dealers are totally unaware of PHILIPS LED.

Fig 5.2 shows that 69 dealers are aware about Philips LED and only 1 dealer is not aware
about Philips LED.

PHILIPS LED AWARENESS GRAPH

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 HOW MANY DEALER AWARE ABOUT PHILIPS LED

NO; 1%

YES; 99%

Fig. 5.2

EXHIBIT C
Q3) which factor influencing in buying decision of customer? (Overall)

FACTORS NO. OF RESPONDENTS

1. PRICE 26

2. BRAND IMAGE 16

3. SERVICES 3

4. ALL 25

TOTAL 70

Table No. 5.3

Above exhibit are gives idea about which factors most influencing (in overall view) in
buying decision of customer. Fig 5.3 shows that PRICE is most important factor than other. In
survey of 70 dealers 26 dealers are choose PRICE i.e. 37 percent, 25 dealers choose ALL i.e. 36
percent, 16 dealers choose BRAND IMAGE i.e. 23 percent, And only 3 dealers choose Services
i.e. 4 percent.

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 OVERALL FACTORS INFLUENCING IN BUYING DECISION OF CUSTOMER

4. ALL; 36% 1. PRICE; 37%

3. SERVICES; 4%
2. BRAND IMAGE; 23%

Fig. 5.3

EXHIBIT D
Q4) which brand customer asks first after entering the showroom?

BRAND NAME NO. OF RESPONDENTS

1. LG 7
2.PHILIPS 5
3. SAMSUNG 26
4. PANASONIC 0
5. ONIDA 1
6. VIDEOCON 6
7. SONY 25
8. SANSUI 0
TOTAL 70
Table No. 5.4

It can be observed from the Exhibit D, which brand customer ask first after
entering the showroom. We saw that out of 70 dealers 26 dealers choose Samsung is high
demand brand by customer, i.e. 37 % (In Fig. 5.4). And only 5 dealers choose Philips is
high demand brand, i.e. 7%.

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 DEMAND OF BRAND

1. LG 2.PHILIPS 3. SAMSUNG 4. PANASONIC 5. ONIDA 6. VIDEOCON

10% 7%
36%

37%
9%
1%
7. SONY 8. SANSUI

Fig. 5.4

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 EXHIBIT E
Q5) which of the following brands of LED sell most?

NO. OF
BRAND RESPONDEN PERCENT
NAME TS AGE
1.
SAMSUNG 18 26%
2.
VIDEOCON 13 19%
3. SONY 12 17%
4. PHILIPS 11 16%
5. SANSUI 7 10%
6. LG 3 4%
7.
PANASONIC 3 4%
8. ONIDA 2 3%
9. OTHER 1 1%
TOTAL 70 100%
Table No. 5.5

It can be observed from the above exhibit SAMSUNG is a highest sell brand in SATNA
REGION. Out of 70 dealers 18 dealers responds Samsung as their first choice i.e. 26%. While
Philips as a fourth choice i.e. 16%

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 HIGHEST SELL BRAND

18

13 12 11
7
3 3 2 1

Fig. 5.5

EXHIBIT F
Q6) what do you feel about Quality of Philips LED products?

QUALITY OF PHILIPS LED NO. OF RESPONDENTS

1. VERY GOOD 13
2. GOOD 39
3. SATISFACTORY 13
4. POOR 5
TOTAL 70
Table No. 5.6

From the above exhibit we conclude that 39 dealers prefer that PHILIPS LED quality is
GOOD. 13 say that PHILIPS LED quality is very good, 13 say that quality is satisfactory and 5
say that PHILIPS LED quality is poor.

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 NO. OF RESPONDENTS

4. POOR; 7%
1. VERY GOOD; 19%
3. SATISFACTORY; 19% 1. VERY GOOD
2. GOOD
3. SATISFACTORY
4. POOR

2. GOOD; 56%

Fig. 5.6

EXHIBIT- G
Q7) which factor influencing in buying decision of customer?

BRAND NAME PRICE QUALITY TECHNOLOGY OFFERS SERVICES OTHER

1. PHILIPS 53 52 10 3 30 0
2. LG 45 54 30 0 26 3
3. SAMSUNG 50 61 23 2 51 1
4. SONY 50 60 37 4 53 3
5. SANSUI 51 27 1 3 9 0
6. VIDEOCON 50 25 2 4 15 1
7. ONIDA 42 25 0 0 4 1
8. PANASONIC 29 11 1 0 1 0
OTHER BRAND 30 10 5 30 4 2
Table No. 5.7

From the above exhibit we saw that Philips PRICE is most influencing in buying decision
of customer i.e. 53. Samsung QUALITY is most influencing in buying decision of customer i.e.
61. Sony TECHNOLOGY, SERVICES and OTHER Factor are most influencing in buying

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decision of customer i.e. 37, 53 & 3. While OFFER is most influencing factor in case of Other
brand (30) like Haier, LLOYD, Sharp, Mitashi, etc. In OTHER Factors include LOOK, BRAND
IMAGE etc.

FACTORS INFLUENCING IN BUYING DECISION

PRICE QUALITY TECHNOLOGY OFFERS SERVICES OTHER
61 60
5352 54 51 50 53 52
50 50
45 42
37
30 30 27 29 30 30
26 23 25 25
15
10 9 11 10
4 3 5 42
3 3 2 1 13 24 1 41 1 1

0 0 0 00 0 0

Fig. 5.7

Findings

Developed "Rule-based Forecasting" (in collaboration with F. Collopy), an expert

systems approach to improve the selection and combination of extrapolation forecasts

(also see Principles of Forecasting)

Proposed and tested the casual forces for the selection and weighting of extrapolation

methods.

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 Developed and tested simulated interaction as a way to more accurately predict

outcomes in conflict situations and negotiations, with K. Green

Developed and tested structured analogies (with K. Green) as a way to more accurately

predict outcomes in conflict situations and negotiations

Combining forecasts reduces error by about 12%

CONCLUSION
1. Greatly benefitted the Philips Electrolux Electronics company in SATNA
REGION where I visited 70 Dealers or Retail stores and gave the organization
relevant information about stocking option held by the Dealers and Retailers.

2. Converted 5 retailers out of 16 retailers to stock Philips Electrolux products

which they are not holding before.

3. I also did promotional activity for Philips in SATNA REGION. Such as

distributing catalogue, POP materials to increase brand and product visibility.

4. Made sale of 81lakh of Philips LED and DDB TVs in unit sale of 270.

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5. Provided Philips with an understanding of its competitors in the SATNA
REGION and provided the company with competitive analysis of the
competitors like Samsung, Sony, Videocon, LG etc which was greatly
beneficial for company.

6. I suggest that PHILIPS increases their services to brand image.

7. My suggestion to Philips is they make their price competitive.

8. Also they increase their advertising to achieve brand awareness in the

market.

9. Picture quality of Philips LED is not received to be as good as other brands so

they should take a specific promotion.

10. Also they increase in promotional activity to motivate retailers drives

for the sale.

11. Give offers to the customer as well as dealer.

12. Sound quality of Philips LED is not received to be as good as other

brands so they make sound quality competitive.

SUGGESTIONS
1. Giving immediate installation on purchase will increase sales and
customers satisfaction.

2. To increase the market share Philips has to improve their after sales
service.

3. Attractive schemes must be launched by company in order to attract

lower, middle class customer.

4. To increase the Philips Electrolux sales they have to give credit facility to
their dealer.

5. Give more margins to their dealers to increasing Philips Electrolux sales.

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6. They also delivered goods in time to time to dealers.

7. I recommended that Philips give training to their distributors because

maximum retailers are facing personal problem with distributors.

8. Many retailers suggested changing the distributorship.

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 LEARNINGS
1) 99% of 70 dealers are keeping multiple brands in their showroom.
2) 99% of 70 respondents were aware of PHILIPS LED.
3) Price is most important factor in buying decision of customer.
4) Samsung is high demand brand in SATNA REGION as compare to other.
5) Samsung is highest sell brand in SATNA REGION as compare to other.
6) About quality of PHILIPS LED number of respondents having positive perception
greater than negative perception because 93% dealer perceives positive attributes of
PHILIPS LED as against 7% negative.
Out of these 93% positive perceivers
56% dealer response PHILIPS LED QUALITY is GOOD.
18% dealer response PHILIPS LED QUALITY is VERY GOOD and
19% dealer response PHILIPS LED QUALITY is SATISFACTORY.
7) There are various factors of various brands that are influencing buying decision of
customer.
Philips - PRICE is most influencing.
Samsung - QUALITY is most influencing.
Sony - TECHNOLOGY, SERVICES and OTHER factor like BRAND IMAGE,
LOOK is most influencing.
LG - BRAND IMAGE AND LOOK is most influencing.
OFFER is most influencing factor for other brands like Haier, LLOYD, Sharp,
Mitashi, Intex etc
8) Samsung has highest market share in SATNA REGION as compared to other brands i.e.
27%
9) 67% respondents were aware of PHILIPS DDB.
10) NO ADDITIONAL SET TOP BOX is most enables factors to purchase Philips DDB.
11) For DDB Videocon has highest market share in SATNA REGION as compared to other
brands i.e. 41%.
12) CASH DISCOUNT is most suitable OFFER to customer.
13) Sansui has highest service related complaints as compared to others and Sony has rare
complaints as compared to other competitors in SATNA REGION.
14) Samsung service is highly satisfied as compared to other in SATNA REGION.
15) Many retailers are not interested in keeping Philips Electrolux products because of
Philips services and they do not provide more offers to dealer but if company provide
them such more offers they can sale Philips products.
16) Also not interested because of Philips do not provide credit facility to Dealer but if
company provide them such facility they can increase sale of Philips Electrolux products.

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17) Retailers were selling different brands, because they were able to receive more margins
from the local players than an popular brand not giving more margin, Because of low
margin many retailers are not interested in selling Philips Electrolux products
18) Most of the retailers were not happy with the dealership of Philips, because of the late
delivery of products, Service of the Philips and Not immediate installation to the
customer.
19) It is found that in SATNA maximum numbers of retailers are not satisfied with the
interaction of distributor. Maximum retailers facing the problem of late delivery of the
products and some retailers facing other personal problems with distributor.
20) Philips salesman is always using to visit dealers shop in SATNA REGION.

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 REFERENCE
Bibliography

BOOKS

1) Marketing Management (13th edition) Philip Kotler

2) Business Research Method Nirali Publication.

WEBSITES

1) www.philips.com
2) www.electrolux.com
3) www.wikipedia.com

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