MBA Summer Internship Project Report, project title is Comparative Study Philips LED With Other Competitive Brands. the research was conducted in PE Electronics Ltd. Aurangabad.
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Project Report on Comparative Study Philips LED With Other Competitive Brands
1. A Summer Internship Project Report on
COMPARATIVE STUDY OF PHILIPS LED AND OTHER
COMPETITIVE BRANDS
Submitted in partial fulfillment of the requirement for the degree of
Master of Business Administration
(Affiliated to University of Pune)
By
KAPIL DNYANDEO SHELKE
Roll No.D2M-21
Under the guidance of
PROF. ANJALI PASHANKAR
A study conducted for
PHILIPS ELECTROLUX ELECTRONICS LIMITED,
AURANGABAD
At
Indira School of Business Studies
Tathwade, Pune – 411033
2013-2015
2. i
Acknowledgement
It is indeed of great moment of pleasure to express my senses of per found gratitude to all
the people who have been instrumental in making my training a rich experience. I got an
opportunity to get a project in PE ELECTRONICS limited. For this, I would like to thank Mr.
Sushil Mantri who talked to the concerned person and without whom an internship with the
company would not have been possible. I express my gratitude to Mr. TAREQUE QUAZI
(Area Sales Head), my company guide and my faculty guide Prof. ANJALI PASHANKAR for
giving me an opportunity to work and make the best out of my internship.
I thank to Mr. Raju Angre (Branch manager) and Mr. RAHUL SOMANI (RSO) for
their full support to me and constantly guided and supported me throughout the training period.
My heartfelt gratitude also goes out to the staff and employees at PE ELECTRONICS limited for
having co-operated with me and guided me throughout the training period. I thank my college,
INDIRA SCHOOL OF BUSINESS STUDIES, for having given me this opportunity to put to
practice, the theoretical knowledge that I imparted from the program.
3. ii
Certificate from ISBS
This is to certify that the Summer Training Report “COMPARATIVE STUDY OF
PHILIPS LED AND OTHER COMPETITIVE BRANDS” at “PE ELECTRONICS” is a
bonafide work carried out by KAPIL SHELKE in the partial fulfillment of requirement for the
award of MASTER OF BUSINESS ADMINSTRATION (MBA) course approved by All India
Technical Education (AICTE) Ministry of HRD, Government of India, New Delhi.
To the best of my knowledge & belief this work, is not submitted published elsewhere for
any degree or diploma examination.
PROF. ANJALI PASHANKAR
(FACULTY GUIDE)
5. iv
Executive Summary
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 TV’s. 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 Aurangabad
region because the brand awareness is about 99%. Philips as brand also has other competitors in
the market.
6. v
Index / Table of Contents
S N Contents Pg No
1 Introduction / Project Outline 1
2 Industry / Company overview 4
3 Objectives 17
4 Research Methodology 19
5 Data Analysis , Results and Interpretation 22
6 Learnings 39
7 Contribution 42
8 References / Bibliography 45
7. vi
List of Tables
Table No Details Pg No
2.1 Board of Directors 6
2.2 Employment Contribution 7
5.1 Brands Keep Dealers in Their Showroom 24
5.2 Awareness of Philips LED 25
5.3 Factors Influencing (Overall) 26
5.4 Demand of Brands 27
5.5 No. of Most Sale Brand 28
5.6 Quality of Philips 29
5.7. Factors Influencing Product wise 30
5.8 Counter share of Brand 31
5.9 Market Share of Brand 32
5.10 Awareness of Philips DDB 33
5.11 Factors Most Enables to Purchase Philips DDB 34
5.12 DDB TV’s Sales Per Year 35
5.13 Offers Appreciated to Customer 36
5.14(A) Complaints Per Year 37
5.14(B) Service Satisfaction 38
8. vii
List of Figures
Table No Details Pg No
2.1 Sales by Business 2013 16
5.1 No. of Brands Keep Dealers in Their
Showroom
24
5.2 Percentage of Philips LED Awareness 25
5.3 Percentage of Factors Influencing (Overall) 26
5.4 Percentage of Brand Demand 27
5.5 Highest Sale Brands 28
5.6 Percentage of Quality of Philips 29
5.7 No. of Factors Influencing Product wise 30
5.8 No. of LED Sales Per Year. 31
5.9 Percentage of Market Share in Comparison
to Other Competitors
32
5.10 Percentage of Philips DDB Awareness 33
5.11 Factors Most Enables to Purchase Philips
DDB
34
5.12 No. of DDB TV’s Sales Per Year 35
5.13 Offers Appreciated To Customer 36
5.14(A) No. of Complaints Per Year 37
5.14(B) Satisfaction Level of Brands 38
9. viii
Abbreviations
Abbreviations Long form
PE Philips Electrolux
RSO Regional Sales Officer
TV Television
LCD Liquid Crystal Display
LED Light Emitting Diode
Fig. Figure
DDB Digital Direct Broadcast
11. 2
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 TV’s. 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 Aurangabad.
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.
12. The entire team at Philips-Electrolux division is new, including sales personnel, and
Videocon has poached a number of mid-senior level managers from Samsung, said a person with
direct knowledge of the development. "It is but natural to expect that the new brand heads will
bring in some people from the company they were working with," the same person said. The new
business unit has been formed even as negotiations are on between Videocon and Electrolux to
extend their brand license deal beyond 2010.
Philips and Electrolux were clubbed together as a business unit as they are the premium
brands in the Videocon portfolio and complement rather than compete with each other given
their product mix. Videocon is a multi-brand consumer durable firm selling products such as
televisions, refrigerators, washing machines, air conditioners under Videocon, Sansui, Ken star,
Electrolux, Kelvinator brands.
3
14. 5
Industry Overview
Electronics Industry in India
The Indian electronics industry had its origins to the year 1965 with an orientation
towards space and defense technologies. This was rigidly controlled and initiated by the
government. This was followed by developments in consumer electronics mainly with transistor
radios, black & white TVs, calculators, and other audio products. Color televisions soon
followed. 1982 was a significant year in the history of television in India when the government
allowed thousands of color TV sets to be imported into the country to coincide with the
broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone
exchanges, which were succeeded by Digital Exchanges in 1988. The period between 1984 and
1990 was the golden period for electronics during which the industry witnessed continuous and
rapid growth.
Consumer Electronics - Consumer electronics (durables) sector continues to be the main
stay of the Indian electronic industry contributing about 32 per cent of the total electronic
hardware production. The market is expected to grow at 10 to 12 per cent annually. The urban
consumer durables market is growing at an annual rate of seven to 10 per cent, the rural durables
market is growing at 25 per cent annually. Some high-growth categories within this segment
include mobile phones, TVs, and music systems.
Current Scenario - In recent years the electronic industry is growing at a brisk pace. The
demand in the Indian market is expected to touch $400 billion by 2020. The largest segment is
the consumer electronics segment. While is largest export segment is of components. Under the
Modified Special Incentive Package Scheme (M-SIPS), the government will provide up to Rs
100 billion in benefits to the industry during the 12th Five Year Plan (2012-17). India's
production constitutes only about 1.3% of the global electronics hardware production of $1.7
trillion. Hence it is miniscule by international comparison. However the demand in the Indian
market is growing rapidly and investments are flowing in to augment manufacturing capacity.
The consumer electronics and durables industry is currently poised at about Rs 340 billion. India
is also an exporter of a vast range of electronic components and products for the following
segments
Display technologies Entertainment electronics
Optical Storage devices Passive components
Electromechanical components Telecom equipment
Transmission & Signaling equipment Semiconductor designing
Electronic Manufacturing Services (EMS)
In consumer electronics Korean companies such as LG and Samsung have made
commitments by establishing large manufacturing facilities and now enjoy a significant share in
the growing market for products such as Televisions, CD/DVD Players, Audio equipment and
other entertainment products.
15. 6
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
Strategy & Business Development Priyank Agarwal
Chief General Counsel Rajiv Mathur
Philips Innovation Campus Srinivas Prasad
Chief Marketing Officer Vivek Sharma
16. Philips is organized into three main divisions: Philips Consumer Lifestyle (formerly Philips
Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Healthcare
(formerly Philips Medical Systems) and Philips Lighting. As of 2012 Philips was the largest
manufacturer of lighting in the world measured by applicable revenues.
In 2013, the company announced the sale of the bulk of its remaining consumer
electronics operations to Japan's Funai Electric Co. but in October 2013, the deal to Funai
Electric Co was broken off and the consumer electronics operations remain under Philips. Philips
said it would seek damages for breach of contract in the $200-million sale.
Employment-The total number of Philips Group employees (Continued operations)
was 114,689 at the end of 2013, compared to 116,082 at the end of 2012. Approximately 41%
were employed in the Lighting sector, due to the continued vertical integration in this business.
Some 32% were employed in the Healthcare sector and approximately 16% in the Consumer
Lifestyle sector.
7
Employment Sector Employee Per Sector 2013
Health care 37,008
Consumer Lifestyle 17,854
Lighting 46,890
Innovation, Group & Services 12,937
Table No-2.2
Major Office Locations in India
Gurgaon
(Corporate Office and Northern Regional Office)
Visit/Write
Philips India Limited
9th Floor, DLF 9-B,
DLF Cyber City,
Sector 25, DLF Phase – 3,
Gurgaon – 122002, India.
Tel: +91-
17. 8
Kolkata
(Registered Office and Eastern Regional Office)
Visit/Write
Philips India Limited
7, Justice Chandra Madhab Road,
Kolkata – 700020, India.
Tel: +91-33-24867621
Bengaluru
Visit/Write
Philips India Limited
Philips Innovation Campus
MFAR Manyata Tech Park,
Nagavara,
Bangalore – 560045, India.
Tel: +91-80-41890000
Chennai
(Southern Regional Office)
Visit/Write
Philips India Limited
Temple Towers, 5th Floor,
Old No: 476, New No: 672,
Anna Salai, Nandanam,
Chennai – 600035, India.
Tel: +91-44-66501000
Hyderabad
Philips India Limited
6-3-1109/103, 3rd Floor,
Jewel Pawani Towers,
Raj Bhavan Road, Somajiguda,
Hyderabad – 500082, India.
Tel: +91-40-66467676
18. 9
Mumbai
(Western Regional Office)
Visit/Write
Philips India Limited
Technopolis Knowledge Park,
Mahakali Caves Road,
Chakala, Andheri (E),
Mumbai – 400093, India.
Tel: +91-22-66912000
HISTORY
The Philips Company was founded in 1891 by Gerard Philips and his father Frederik.
Frederik, a banker based in Zaltbommel, financed the purchase and setup of a modest, empty
factory building in Eindhoven, where the company started the production of carbon-filament
lamps and other electro-technical products in 1892. This first factory has been adapted and is
used as a museum.
PHILIPS LOGO
PHILIPS CURRENT LOGO
19. 10
Company Profile
Royal Philips- is a diversified health and well-being company, focused on improving people’s
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
MODEL MRP SPECIFICATION
32PFL3938 `27,000/-
LED, Full HD 1080p, Pixel Plus HD, 120Hz Perfect Motion
Rate, 16W SOUND, USB, HDMI
24PFL3938 `15,000/-
22PFL3938 `14,000/-
20PFL3938 `12,000/-
20. 11
LED SERIES 4700
MODEL MRP SPECIFICATION
50PFL4758 `79,000/-
LED, Full HD 1080p, Pixel Plus HD, 120Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI
46PFL4758 `69,000/-
40PFL4758 `44,000/-
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
Rate, 16W SOUND, USB, HDMI
29PFL4938 `21,490/-
22. 13
LED SERIES 5500
MODEL MRP SPECIFICATION
42PFL5578 `60,990/- DDB, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI
32PFL5578 `34,990/-
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
MODEL MRP SPECIFICATION
50PFL6358 `89,000/- LED, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI
46PFL6358 `79,000/-
40PFL6358 `53,000/-
23. 14
LED SERIES 6900
MODEL MRP SPECIFICATION
42PFL6977 `60,990/- DDB, Full HD 1080p, Pixel Precise HD, 240Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI, 2 or 1Year HD D2H Subscription.
32PFL6977 `34,990/-
LED SERIES 7900
MODEL MRP SPECIFICATION
42PFL7977 `75,990/- DDB, Full HD 1080p, Perfect Pixel HD, 240Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI, 2 or 1Year HD D2H Subscription.
32PFL7977 `49,990/-
LED SERIES 8700
MODEL MRP SPECIFICATION
24. 42PFL6977 `1,04,000/- DDB, Full HD 1080p, Pixel Precise HD, 480Hz Perfect Motion
Rate, 20W SOUND, USB, HDMI, 2 Year HD D2H Subscription.
15
Digital Direct Broadcast:
The DDB Foundation is a union of seven technology giants. The foundation has come up
with its most prestigious innovation Digital Direct Broadcast (DDB) technology platform. The
DDB technology platform is an advanced TV operating system, which allows the DDB enabled
televisions to perform multiple functions never experienced before on one single platform.
This revolutionary technology is pioneered by STMicroelectronics - World’s leading
semiconductor company, Irdeto – World’s leading innovative software and application maker,
Nivio – World’s leading cloud computing brand, Faroudja – Emmy award winning audio- video
technology, Strata – World’s leading sound technology and is presented by Videocon d2h -
India’s most advanced DTH service provider and Phillips – World’s leader in healthcare, lighting
and consumer lifestyle brand.
DDB- Digital Direct Broadcast platform is an advanced TV operating system, which
allows the DDB enabled televisions to perform multiple functions never experienced before on
one single platform. This new technological wave rides high on features such as- receiving,
processing and display capability of real Full HD 1080p digital signals without the help of any
set-top box, giving you an audio-visual experience never seen or heard before, dual core
processor – 450 MHz, 14-bit video processor; Motion Enhancement and Motion Correction
(MEMC), which interpolates and constructs the “in between” frames to eliminate issues related
to both motion judder and motion blur, giving you an outstanding viewing experience, 3D
Technology, Faroudja Video and Audio Optimized that eliminates any distortion caused by noise
signal and gives you a vivid and clear image for your viewing; Strata Certified Audio and 10-
band Graphic Equalizer. Its cloud computing abilities help you access your files remotely which
are saved on it. And last but not the least is fully fledged internet experience along with net
buttons like Facebook, Youtube, Twitter, Picassa, eWeather, Internet Radio, mail and chat client
and File Sharing.
25. 16
Total Sales by Business 2013:
Consumer Lifestyle as a %
Vision and Mission
Vision
Health &
Wellness
20%
Domestic
Appliances
47%
Personal Care
33%
At Philips, we strive to make the world healthier and more sustainable through
innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the
best place to work for people who share our passion. Together we will deliver superior value for
our customers and shareholders.
29. 20
Objective
To determine the market share of Philips LED TV’s & other competitive brands.
To identify the factors influencing consumer purchase decision in Aurangabad region.
Study of dealer Awareness about LED and DDB in Aurangabad Region.
To know the dealer and consumer satisfaction towards service.
31. 22
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 -AURANGABAD 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 Aurangabad region both primary and
secondary data will be collected.
The study proposed to collect Primary Data through questionnaire using survey
method. So as to give a precise, accurate, realistic and relevant data.
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.
32. 23
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 Aurangabad City and
surroundings.
34. 25
Data Analysis and Interpretation
Data Analysis of The DEALER or RETAILER Questionnaire for PHILIPS LED For this
purpose I conducted a survey with the sample size of 70. This sample includes the dealers and
the retailers in the area of Aurangabad and surroundings. The questionnaire having 15 questions
was prepared to obtain the desired information and the method of personnel interview was also
adopted for those dealers who were not interested in filling the questionnaire and the data got is
then analyzed and following are the results for the same.
35. 26
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 Aurangabad 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
Fig 5.1
53 53
57 55
51
47
43
27
30
SHOWROOM
36. 27
EXHIBIT – B
Q2) Are you aware about the Philips LED?
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
HOW MANY DEALER AWARE ABOUT
PHILIPS LED
NO
1%
YES
99%
Fig. 5.2
AWARENESS
OF PHILIPS
LED
NO. OF
RESPONDENTS PERCENTAGE
YES 69 99%
NO 1 1%
TOTAL 70 100%
37. 28
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.
OVERALL FACTORS INFLUENCING IN BUYING DECISION OF
Fig. 5.3
1. PRICE
37%
2. BRAND
IMAGE
3. SERVICES 23%
4%
4. ALL
36%
CUSTOMER
38. 29
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%.
DEMAND OF BRAND
1. LG 2.PHILIPS 3. SAMSUNG 4. PANASONIC
5. ONIDA 6. VIDEOCON 7. SONY 8. SANSUI
10%
Fig. 5.4
7%
37%
9%
1% 0%
36%
0%
39. 30
EXHIBIT – E
Q5) which of the following brands of LED sell most?
BRAND NAME
NO. OF
RESPONDENTS PERCENTAGE
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
Aurangabad 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%
HIGHEST SELL BRAND
Fig. 5.5
18
13 12 11
7
3 3 2 1
40. 31
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.
NO. OF RESPONDENTS
1. VERY GOOD
18%
2. GOOD
56%
Fig. 5.6
3. SATISFACTORY
19%
4. POOR
7%
1. VERY GOOD
2. GOOD
3. SATISFACTORY
4. POOR
41. 30 30
3 5
32
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
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.
0 2 4 3 4
0 0
Fig. 5.7
53
45
50 50 52 50
42
29 30
52 54
61 60
27 25 25
30
23
37
10 11 10
1 2 0 1
26
51 53
9
15
4
1
4
0
3 1 3
0 1 1 0 2
1. PHILIPS 2. LG 3. SAMSUNG 4. SONY 5. SANSUI 6.
VIDEOCON
7. ONIDA 8.
PANASONIC
OTHER
BRAND
FACTORS INFLUENCING IN BUYING DECISION
PRICE QUALITY TECHNOLOGY OFFERS SERVICES OTHER
42. 33
EXHIBIT – H
Q8) which are the current counter share of the following brands?
BRAND NAME Sales LED Per Year
1. SAMSUNG 3125
2. SANSUI 2650
3. SONY 2634
4. VIDEOCON 2240
5. LG 2037
6. PHILIPS 1504
7. ONIDA 1417
8. PANASONIC 1060
9. OTHER 634
Table No. 5.8
In the above exhibit we saw that, (all are approximately) Samsung sales 3125 LED per
year and Philips sales 1504 LED per year.
In the above exhibit we saw that, SAMSUNG is a highest sale brand in comparison to
other brands.
Fig. No. 5.8
3125
2650 2634
2240
2037
1504 1417
1060
634
Sales LED Per Year
43. 34
EXHIBIT – I
Q9) which electronics company has more market share in comparison to other electronics
company?
BRAND NAME
MARKET SHARE IN COMPARISON
TO OTHER COMPETITORS PERCENTAGE
1. SONY 17 24%
2. PHILIPS 8 12%
3. SANSUI 5 7%
4. LG 4 6%
5. SAMSUNG 19 27%
6. PANASONIC 1 1%
7. ONIDA 2 3%
8. VIDEOCON 13 19%
OTHER 1 1%
Table No. 5.9
Above exhibit we calculate that out of 70 dealers 19 dealers say SAMSUNG is
more market share as compared to other brands, i.e. 27% and 8 dealers say PHILIPS has more
market share, i.e. 12%.
MARKET SHARE IN COMPARISON TO
OTHER COMPETITORS
Fig. 5.9
1. SONY
24%
2. PHILIPS
12%
3. SANSUI
4. LG 7%
6%
5. SAMSUNG
27%
7. ONIDA
3%
6. PANASONIC
1%
8. VIDEOCON
19%
OTHER
intex
2%
44. 35
EXHIBIT – J
Q10) Are you aware about the Philips DDB?
PHILIPS DDB RESPONDENTS PERCENTAGE
YES 47 67%
NO 23 33%
TOTAL 70 100%
Fig. 5.10
It can be observed from the above exhibit, that from 70 respondents 67 % dealers are
aware of PHILIPS DDB, 33 % dealers are totally unaware of PHILIPS DDB.
Fig 5.10 shows that 47 dealers are aware about Philips DDB and 23 dealers are not aware
about Philips DDB.
HOW MANY DEALER AWARE ABOUT THE
Fig. 5.10
YES
67%
NO
33%
PHILIPS DDB
45. 36
EXHIBIT – K
Q11) which factors most enables customer to purchase DDB TV’s?
1. BEST PICTURE QUALITY 10
2. NO SIGNAL LOSS 3
3. NO ADDITIONAL SET TOP BOX 41
4. ONLY SINGLE WIRE
CONNECTION 2
5. DUAL CORE PROCESSOR 0
14-BIT VIDEO PROCESSOR 1
7. PERFECT NATURAL MOTION 0
8. SINGLE REMOTE USE FOR LED
& D2H 4
9. OFFER 2
Table no. 5.11
In the above exhibit we saw that which factor most enables customer in buying decision
of PHILIPS DDB. We saw that out of 47 dealers 41 suggest NO ADDITIONAL SET TOP BOX,
Out of 47 dealers 10 says BEST PICTURE QUALITY, 4 says SINGLE REMOTE USE FOR
LED & D2h, 3 says NO SIGNAL LOSS, 2 says ONLY SINGLE WIRE CONNECTION, 2 says
OFFERS and 1 say 14-BIT VIDEO PROCESSOR.
Fig. 5.11
10
3
41
2
0 1 0
4
2
45
40
35
30
25
20
15
10
5
0
1. BEST PICTURE QUALITY
2. NO SIGNAL LOSS
3. NO ADDITIONAL SET TOP BOX
4. ONLY SINGLE WIRE CONNECTION
5. DUAL CORE PROCESSOR
14-BIT VIDEO PROCESSOR
7. PERFECT NATURAL MOTION
8. SINGLE REMOTE USE FOR LED & D2H
9. OFFER
46. 37
EXHIBIT - L
Q12) How many DDB LED sales per year?
BRAND NAME SALES DDB PER YEAR PERCENTAGE
1. PHILIPS 154 41%
2. SANSUI 210 34%
3. VIDEOCON 255 25%
Table No. 5.12
In the above Exhibit we saw that, how many ddb sales per year of a particular brand, in
this only 3 brands having a DDB i.e. PHILIPS, SANSUI, VIDEOCON. We can be observed
from the above Exhibit 255 DDB sales of VIDEOCON, 210 DDB sales of SANSUI and 154
DDB sales of PHILIPS. VIDEOCON is a highest sales brand in DDB.
In percentage their market share is 41 %, SANSUI has a 34 % market share and PHILIPS
has 25 % market share.
1. PHILIPS 2. SANSUI 3. VIDEOCON
300
250
200
150
100
50
SALES DDB PER YEAR 154 210 255
Fig. 5.12
0
SALES DDB PER YEAR
47. 38
EXHIBIT – M
Q13) which of the following offers are appreciated by customer?
OFFERS OFFERS APPRECIATED BY CUSTOMER
1. CASH DISCOUNTS 43
2. GIFT VOUCHERS 0
3. FREE APPLIANCES 0
4. COMBO OFFERS 1
5. EXCHANGE OFFER 0
6. FINANCE OFFER 26
Table No. 5.13
It can be observed from above exhibit that out of 70 dealer 43 dealers say CASH
DISCOUNT offer is most appreciated to customer, 26 dealers say FINANCE OFFER is most
appreciated to customer, 1 dealer is say COMBO OFFER is appreciated to customer and no one
say remaining offer is appreciated to customer.
From above we say that CASH DISCOUNT offer is most suitable to customer.
Fig. 5.13
1. CASH
DISCOUNTS
2. GIFT
VOUCHERS
3. FREE
APPLIANCES
4. COMBO
OFFERS
5.
EXCHANGE
OFFER
6. FINANCE
OFFER
43
0 0 1 0
26
OFFERS APPRECIATED BY CUSTOMER
48. 39
EXHIBIT – N
Q14] (A) how often do you get service related complaints from customer?
BRAND NAME COMPLAINTS PER YEAR
1. SANSUI 773
2. VIDEOCON 733
3. ONIDA 670
4. PHILIPS 589
5. PANASONIC 529
6. SAMSUNG 512
7. LG 418
8. SONY 320
Table No. 5.14
From above exhibit we can be observed that SANSUI has more complaints than other
competitors. SANSUI has 773 complaints and PHILIPS has 589 complaints and SONY has very
less complaints as compared to other brand.
Fig. 5.14
773
733
670
589
529 512
418
320
1. SANSUI 2.
VIDEOCON
3. ONIDA 4. PHILIPS 5.
PANASONIC
6.
SAMSUNG
7. LG 8. SONY
COMPLAINTS PER YEAR
49. 40
EXHIBIT – O
Q14] (B) what do you feel about the service of following brands?
BRAND NAME
A. HIGHLY
SATISFIED
B.
SATISFIED
C.
MODERATE
D.
DISSATISFIED
AVAILABILITY
OF BRAND
1. PHILIPS 8 24 18 4 54
2. LG 10 30 13 1 54
3. SAMSUNG 11 32 17 0 60
4. SONY 10 33 13 0 56
5. SANSUI 5 24 21 3 53
6. VIDEOCON 4 25 20 3 52
7. ONIDA 3 22 20 3 48
8. PANASONIC 1 18 13 2 34
Table No. 5.15
In above table we saw that out of 54 dealers of PHILIPS 8 are HIGHLY SATISFIED, 24
are SATISFIED, 18 are MODERATE and 4 are DISSATISFIED.
SATISFACTION LEVEL
A. HIGHLY SATISFIED B. SATISFIED C. MODERATE D. DISSATISFIED
Fig. 5.15
8
10 11 10
5
4 3
1
24
30
32
33
24 25
22
18 18
13
17
13
21
20 20
13
4
1 0 0
3 3 3 2
51. 42
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 Aurangabad region as compare to other.
5) Samsung is highest sell brand in Aurangabad 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 Aurangabad 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 Aurangabad region as compared to other
brands i.e. 41%.
52. 12) CASH DISCOUNT is most suitable OFFER to customer.
13) Sansui has highest service related complaints as compared to others and Sony has rare
43
complaints as compared to other competitors in Aurangabad region.
14) Samsung service is highly satisfied as compared to other in Aurangabad 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.
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 Aurangabad 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 Aurangabad region.
54. 45
Contribution
1. Greatly benefitted the Philips Electrolux Electronics company in Aurangabad 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 Aurangabad region. Such as distributing catalogue,
POP materials to increase brand and product visibility.
4. Made sale of 81lakh of Philips LED and DDB TV’s in unit sale of 270.
5. Provided Philips with an understanding of its competitors in the Aurangabad 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 retailer’s 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.
13. Giving immediate installation on purchase will increase sales and customers satisfaction.
14. To increase the market share Philips has to improve their after sales service.
55. 15. Attractive schemes must be launched by company in order to attract lower, middle class
46
customer.
16. To increase the Philips Electrolux sales they have to give credit facility to their dealer.
17. Give more margins to their dealers to increasing Philips Electrolux sales.
18. They also delivered goods in time to time to dealers.
19. I recommended that Philips give training to their distributors because maximum retailers are
facing personal problem with distributors.
20. Many retailers suggested changing the distributorship.
57. 48
Bibliography
BOOKS
1) Marketing Management (13th edition) – Philip Kotler
2) Business Research Method – Nirali Publication.
3) Ma
WEBSITES
1) www.philips.com
2) www.electrolux.com
3) www.wikipedia.com
58. ix
Appendices
Appendix 1
QUESTIONNAIRE
We are doing a brief survey to find out the market share of Philips LED TV’s & other
competitive brands. We would be grateful if you could spare a few minutes to participate in it.
This project is done by a management trainee and all the information would be strictly
confidential.
DEALER NAME : ________________________________________________________
ADDRESS :________________________________________________________
CONTACT NO. :____________________
Questionnaire for PHILIPS LED
1. Which of the following brands of LED do you keep in your showroom?
Philips LG. Samsung
Sony Sansui Videocon
Onida Panasonic
Other__________________________________
2. Are you aware about the Philips LED?
YES NO
3. Which factor influencing in buying decision of customer?
1. Price 2. Brand image
3. Services 4. Other_________________
59. x
4. Which brand customer asks first after entering the showroom?
LG Philips. Samsung
Panasonic Onida Videocon
Sony Sansui
Other__________________________________
5. Which of the following brands of LED most sale? (Top 5)
Samsung Videocon Philips
Sony Sansui LG
Panasonic Onida
Other__________________________________
6. What do you feel about Quality of Philips LED products?
1. Very Good 2. Good
3. Satisfactory 4. Poor
7. Which factor influencing in buying decision of customer?
Name Price Quality Technology Offers Service Other
Philips
LG.
Samsung
Sony
Sansui
Videocon
Onida
60. xi
8. What are the current market status/ Counter share of these brands
Name Sales LED
Per Year
Philips
LG.
Samsung
Sony
Sansui
Videocon
Onida
9. Which Electronics Company has more market share in comparison to other
Electronics Company?
Sony Philips. Sansui
LG Samsung Panasonic
Onida Videocon
Other__________________________________
10. Are you aware about the Philips DDB?
YES NO
11. Which factors most enables customer to purchase DDB LED? (TOP 3)
1. Best Picture Quality 2. No Signal Loss
3. No Additional Set 4. Only Single Wire
Top Box Connection
5. Dual Core Processor 6. 14-Bit Video Processor
7. Perfect Natural 8. Single Remote use for
Motion TV & D2H
61. xii
12. How many DDB LED sales per month-
Name Sales DDB LED
Per Month
Philips
Sansui
Videocon
13. Which of the following offers are appreciated by customer?
Cash Discounts Gift Vouchers Free Appliances
Combo Offers Exchange Offer Finance Offer
Other__________________________________________________
14. How often do you get service related complaints from customer? Also rate service of
Philips (1-5)
3 month 6 month 1 year More than 1 year
Highly Satisfied Satisfied Moderate Dissatisfied
15. What do you think about brand Philips? (Suggestions)
______________________________________________________________________________
______________________________________________________________________________
_______________________________________
Dealer Stamp Dealer Signature
Date:
62. xiii
Appendix 2
SR. NO DEALER OR RETAILER NAME ADDRESS
1 SHAH & SONS NEW GULMANDI ROAD, AURANGABAD
2 BAJAJ ENTERPRISES NEW GULMANDI ROAD, AURANGABAD
3 MEGHA ELECTRONICS T.V. CENTRE AURANGABAD
4 PRAKASH AGENCY T.V. CENTRE AURANGABAD
5 OM SAI ELECTRONICS APNA BAZAAR, AURANGABAD
6 YESHODHAN ENTERPRISES SUTGIRNI CHOWK, AURANGABAD
7 J.K. ELECTRONICS PUNDLIK NAGAR, AURANGABAD
8 AJINKYA ELECTRONICS CIDCO, AURANGABAD
9 SANVI ELECTRONICS PUNDLIK NAGAR, AURANGABAD
10 NITIN ENTERPRISES PUNDLIK NAGAR, AURANGABAD
11 RAJRAJESHWAR ELECTRONICS PUNDLIK NAGAR, AURANGABAD
12 SAI DATTA RAJ ELECTRONICS PUNDLIK NAGAR, AURANGABAD
13 KAPSE ELECTRONICS AURAGABAD
14 PIXELTRONICS KOKANWADI, AURANGABAD
15 WATCHLAND TRADING CO. PVT LTD NIRALA BAZAR
16 NARIMAN TRADING CENTRE SARAFA ROAD AURANGABAD
17 SAI ELECTRONICS NIRALA BAZAR, AURANGABAD
18 HANS ELECTRONICS DALALWADI, AURANGABAD
19 PANKAJ ELECTROMECH CIDCO, AURANGABAD
20 PRABHA ENTERPRISES N-9 AURANGABAD
21 PRATIK ENTERPRISES CIDCO, AURANGABAD
22 SHARMA ELECTRONICS LASUR
23 ARIHANT ELECTRONICS LASUR
24 GANESH ELECTRONICS LASUR
25 SIDDHIVINAYAK FURNITURE LASUR
26 RAVIRAJ FURNITURE LASUR
27 SHUBHAM ELECTRONICS LASUR
28
SADGURU FURNITURE &
ELECTRONICS LASUR
29 SANGHVI SHOPEE MAHESH BHAVAN, AURANGABAD
30 CITY ELECTRONICS NIRALA BAZAR, AURANGABAD
31 BAJAJ ELECTRONICS CIDCO, AURANGABAD
32 BALAJI ELECTRONICS T.V. CENTRE AURANGABAD
33 KRUSHNA ELECTRONICS T.V. CENTRE AURANGABAD
34 MATSAGAR ELECTRONICS STATION ROAD, VAIJAPUR
35 VARDHAMAN FURNITURE STATION ROAD, VAIJAPUR
36 HEMANT TRADERS STATION ROAD, VAIJAPUR
37 CHAUSH ELECTRONICS STATION ROAD, VAIJAPUR
38 NAKODA FURNITURE M.G. ROAD, VAIJAPUR
