philips report_vineeth vijayan

8/9/2019 Philips Report_Vineeth Vijayan

1/26

Amrita School of Business, Coimbatore Page 1

Project Report on

Creating Visibility of TLED lamp in B2B segment for

Philips leveraging the "Save with Lighting

application".

For

By

Vineeth VijayanCB.BU.P2MBA13097

A Report Submitted in Partial Fulfilment of the requirements of

MBA program, class of 2012-2014

Amrita School of Business

Under the guidance of

Mr. Navaneet Sunnu Prof. Shrikant G.Kulkarni

Area Sales Manager, TN South & Kerala Region Professor, Marketing

Philips Lightings, Chennai Amrita School of Business


2/26


DECLARATION

I, Vineeth Vijayan of IInd year MBA Amrita School of Business, Amrita Vishwa Vidyapeetham hereby

declare the project titled “Market Research on the Visibility of TLED lamp in Industry segment” is done by

me under the guidance of Dr. Shrikant G. Kulkarni, Professor, Faculty of Management, Amrita Vishwa

Vidyapeetham & Mr. Navaneet Sunu, Area Sales Manager, TN South and Kerala, Philips Lightings,

Chennai during April, May and June 2014.

I also declare that this project has not been submitted for the award of any degree, diploma, literature or

recognition earlier.

Coimbatore

28th June 2014

Vineeth Vijayan


3/26


ACKNOWLEDGEMENT

I wish to record my sincere gratitude to Philips for giving me the opportunity to do my Summer Internship

with them and thereby gain immense knowledge and hands on experience in various fields related to

Lighting Industry.

I would like to thank Mr. Sridhar Tangirala, Regional Marketing Manager, Philips, Chennai and Mr.

Navaneet Sunu, Area Sales Manager, TN South and Kerala, Philips Lightings,, Philips, Chennai for his

guidance & support during the project.

This project would not have been possible without the guidance and support of my faculty guide Prof.

Shrikant G. Kulkarni, Amrita School of Business, Coimbatore. I thank him for his guidance and for

making this project a wonderful learning experience.

I would like to thank every staff of Philips who has made this learning experience fun and memorable.

I extend my heartfelt thanks to my parents and friends for their never ending support and encouragement.


4/26


Executive Summary

Introduction

Philips is a Dutch Multinational engineering and electronics conglomerate headquartered in Amsterdam. It

is one of the largest electronics companies in the world and employs around 122,000 people across more

than 60 countries. 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.

The Philips Lighting division have several different products ranging from CFL's to LED's. The present

electricity shortage and the frequent outages have pushed the industries to seek more power saving

products and to focus on long term prospects keeping in purview the reduced maintenance cost. Focusing

on the replacement or new installation market my project is trying to find out the ways of improving the

visibility of the TLED lamps and creating visibility for Philips Save with Lighting application in AndroidMarket.

Project Title

1. Visibility for TLED Lamp in Industry Segment and creating visibility for Philips Save with

Lighting application.

2.

Mapping Segment wise replacement lighting potential for LEDs & Occuswitch Controls in B2B segments across South Region leveraging CFG App (Change for Good App).

Scope of the project

LED lighting is arguably the most profound change the lighting industry has witnessed since the invention

of electric light itself. LEDs are transforming the nature of lighting by opening up new possibilities for how


5/26


and where artificial light is used to enhance the human experience. LED lighting uses less energy than most

other lamps, lasts longer and requires less frequent replacement.

High Potential Low share industries were identified in the North Kerala Region namely 3 districts Cannore,

Calicut and Mallapuram. Expert interview was conducted with the Electrical department in-charges of

various Industries and a interview .

During the course of the project coordinated a Marketing event for LED products and was part of a Market

Blitz activity to tap HPLS (High Potential Low Share) clients.

Key findings

North Kerala region has lot of potential clients but are not tapped. There are many Local players in North

Kerala region that tap these potential clients and gain share in the Kerala market. There are very less

Channel partners in the North Kerala region due to this there is major untapped segment.


6/26


Table of ContentsChapter 1 ......................................................................................................................................................................... 7

Introduction to the project ............................................................................................................................................ 7

1.1 Purpose of the Project .......................................................................................................................................... 8

1.2 Description of the Project ................................................................................................................................... 8

1.3 Scope of the Project ............................................................................................................................................. 9

1.4 Objectives of the Project ..................................................................................................................................... 9

1.5 Methodology ....................................................................................................................................................... 9

Chapter 2 ....................................................................................................................................................................... 11

Industrial analysis ......................................................................................................................................................... 11

2.1 Lighting Industry ................................................................................................................................................. 12

2.1.1 LED Technology ............................................................................................................................................ 13

Chapter 3 ....................................................................................................................................................................... 14

Product Analysis ........................................................................................................................................................... 14

3.1 TLED Lamps ......................................................................................................................................................... 15

Chapter 4 ....................................................................................................................................................................... 16

Research Design ............................................................................................................................................................ 16

4.1 Research Design .................................................................................................................................................. 17

4.2 Exploratory Research.......................................................................................................................................... 17

4.2.1 Secondary Research ..................................................................................................................................... 17

4.2.2 Expert Interviews ......................................................................................................................................... 19

4.3 Descriptive Research .......................................................................................................................................... 20

Chapter 5 ....................................................................................................................................................................... 23

Save With Lighting App ................................................................................................................................................ 23

Chapter 6 ....................................................................................................................................................................... 25

Recommendations ........................................................................................................................................................ 25


7/26


Chapter 1

Introduction to the project


8/26


1.1 Purpose of the Project

Creating Visibility of Philips TLED lamps among B2B segments using Save with

Lighting App.

To Map segment wise replacement lighting potential for LED's in B2B segments using

Change for Good App.

1.2 Description of the Project

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.

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.

Power Production for the world is right now being produced by using Natural resources which are

on the verge of depletion. Many methods of electricity production uses harmful and hazardous raw

materials such as Nuclear reactors, Coal Burning, Lignite Burning..etc. Although new and advanced

methods of power production like Solar, Hydro..etc are present their initial investments are high

and requires careful planning and ample spaces. Power produced by these methods are sold to

governments and other states at higher rates.

In these times the usage of low power consumption, highly efficient LED's comes as a life saver for

many organizations and offices. As part of the Philips team we created an awareness about LED

products and its uses with B2B segments using the Save with Lighting Application. We spoke with

http://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Eindhovenhttp://en.wikipedia.org/wiki/Gerard_Philipshttp://en.wikipedia.org/wiki/Philips_Consumer_Lifestylehttp://en.wikipedia.org/wiki/Philips_Consumer_Lifestylehttp://en.wikipedia.org/wiki/Gerard_Philipshttp://en.wikipedia.org/wiki/Eindhovenhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Netherlands


9/26


many organizations about their existing lighting power consumption by CFL's and created

awareness of the expected lighting power consumption if they change to LED's.

1.3 Scope of the Project

1. To understand the current lighting power consumption of B2B segment customers (across

Industries, Hospitals, Hotels, Retail and Office Segments).

2. To find potential customers those who are interested to change to LED lightings.

3. To understand about the Competitors Business strategies and products.

4. To know the visibility of Philips LED products in North Kerala Region (Cannore, Calicut

and Mallapuram)

1.4 Objectives of the Project

To understand the Lighting demand of various B2B segment organizations and provide suitable

solutions for their problems.

To find key decision makers of each organization and create visibility of Philips LED products.

To analyze the factors that influence the purchase of Philips LED products in the organization.

1.5 Methodology

The Project began in the Exploratory Phase that comprised or Secondary Data, Expert Interviews

with Philips personnel and Expert Interviews with Customers. The information obtained for the

Exploratory Phase led to the formation of a Questionnaire used to obtain information about the visibility of

TLEDs among customers in B2B segments.


10/26


Descriptive Research (Customer Survey) was initiated with Customers of B2B segments. The survey

involved questions about the working of the company and finding out the key decision makers of the

various B2B segments.


11/26


Chapter 2

Industrial analysis


12/26


2.1 Lighting Industry

Philips Lighting is a global market leader with recognized expertise in the development,

manufacturing and application of innovative lighting solutions. We have pioneered many of the key

breakthroughs in lighting over the past 123 years, laying the basis for our current strength and ensuring we

are well-placed to be a leader in the digital transformation. We aim to further strengthen our position in the

digital market through added investment in LED leadership while at the same time capitalizing on our

broad portfolio, distribution and brand in conventional lighting.

Philips Lighting is a leading provider of solutions and applications for both professional and consumer

markets. Around 40 per cent of Philips’ revenue in India comes from the lighting business. Philips

addresses lighting needs in a full range of environments – indoors (homes, shops, offices, schools, hotels,

factories, and hospitals) as well as outdoors (public places, residential areas and sports arenas) also meets

people’s needs on the road, by providing safe lighting in traffic (car lighting and street lighting).

In addition, Philips delivers light-inspired experiences through architectural and city beautification

projects. Philips’ lighting is also used for specific applications, including horticulture, refrigeration lighting

and signage, as well as heating, air and water purification, and healthcare.

Philips provides advanced energy-efficient solutions for all segments: road lighting, office &

industrial, hospitality and home. Philips is also a leader in shaping the future with exciting new lightingapplications and technologies such as LED technology, which, besides energy efficiency.

Philips India is working with industry bodies such as ELCOMA, Bureau of energy efficiency and

NGOs towards addressing India’s power crisis through promotion of ener gy efficient lighting in India. As a

part of this Philips has introduced new Energy Efficient LED Lights that will help address the current

Indian power crisis.


13/26


2.1.1 LED Technology

A light-emitting diode (LED) is a two-lead semiconductor light source. It resembles a basic pn-

junction diode, which emits light when activated. When a fitting voltage is applied to the

leads, electrons are able to recombine with electron holes within the device, releasing energy in the form

of photons. This effect is called electroluminescence, and the colour of the light (corresponding to the

energy of the photon) is determined by the energy band gap of the semiconductor.

Recent developments in LEDs permit them to be used in environmental and task lighting. LEDs have many

advantages over incandescent light sources including lower energy consumption, longer lifetime, improved

physical robustness, smaller size, and faster switching. Light-emitting diodes are now used in applications

as diverse as aviation lighting, automotive headlamps, advertising, general, traffic signals, and camera

flashes. However, LEDs powerful enough for room lighting are still relatively expensive, and require more

precise current and heat management than compact fluorescent lamp sources of comparable output.

http://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Pn-junctionhttp://en.wikipedia.org/wiki/Pn-junctionhttp://en.wikipedia.org/wiki/Electronshttp://en.wikipedia.org/wiki/Electron_holeshttp://en.wikipedia.org/wiki/Photonhttp://en.wikipedia.org/wiki/Electroluminescencehttp://en.wikipedia.org/wiki/Band_gaphttp://en.wikipedia.org/wiki/Navigation_light#Aviation_navigation_lightshttp://en.wikipedia.org/wiki/Automotive_lighting#Light_emitting_diodes_.28LED.29http://en.wikipedia.org/wiki/Traffic_signalhttp://en.wikipedia.org/wiki/Fluorescent_lamphttp://en.wikipedia.org/wiki/Fluorescent_lamphttp://en.wikipedia.org/wiki/Traffic_signalhttp://en.wikipedia.org/wiki/Automotive_lighting#Light_emitting_diodes_.28LED.29http://en.wikipedia.org/wiki/Navigation_light#Aviation_navigation_lightshttp://en.wikipedia.org/wiki/Band_gaphttp://en.wikipedia.org/wiki/Electroluminescencehttp://en.wikipedia.org/wiki/Photonhttp://en.wikipedia.org/wiki/Electron_holeshttp://en.wikipedia.org/wiki/Electronshttp://en.wikipedia.org/wiki/Pn-junctionhttp://en.wikipedia.org/wiki/Pn-junctionhttp://en.wikipedia.org/wiki/Semiconductor


14/26


Chapter 3

Product Analysis


15/26


3.1 TLED Lamps

TLED Lamp is available in 1200mm and 600mm, with 20W and 10W respectively. The voltage range is

about 220-240V. For 20W the lumen output is 1600Lm and 10W the lumen output is 800Lm. The CRI is

80 and the lifetime is about 25000 hours.

TLED can be used in retail, hospitals, parking lots, warehouses, schools, offices, public areas and in

industry. For an industry with 10 hours working industry the payback period is 36 months and for a 24

hours working industry its 17 months.

TLED Essential is an affrdable LED solution. The energy saving feature reduces energy costs by a great

margin. Longer lifetime of the product minimizes the re-lamping costs for reduced maintenance cost. As no

mercury is involved in the product there is no hazard to the environment.

TECHNICAL SPECIFICATION

INSTALLATION PROCESS

Product SpecificationWattage

(W)

FTL

(W)

Voltage

(V)

Beam Angle

(Degree)

Lumen

Output

(Lm)

CCT CRI

Life

Time

(Hrs)

LED tube 1200mm T8 20 36 220-240 165 1600 4000 K 80 25000

LED tube 1200mm T8 20 36 220-240 165 1600 6500 K 80 25000

LED tube 600mm T8 10 18 220-240 165 800 4000 K 80 25000

LED tube 600mm T8 10 18 220-240 165 800 6500 K 80 25000


16/26


Chapter 4

Research Design


17/26


4.1 Research Design

The Research Design involved two main phases such as Exploratory Phase and Descriptive Phase.

Exploratory Research was carried out to explore the customer’s buying factors and obtain useful insights

that could be validated through descriptive research. This involved Secondary Data collection, Expert

Interviews with Philips Personals and Expert Interviews with Customers. The Expert Interviews with

Customers were carried out with Key Account Customers so as to understand their view point of Philips

LED products and their key buying behaviours.

In the Descriptive Phase we divided the B2B segments into different groups based on the Industry. Each

groups were targeted with a general questionnaire to understand their company's existing lighting system

and an analysis of their power consumption was made and a report was submitted to the Company which

was targeted. Based on the report we would suggest recommendations about the various benefits of using

LED products and once we have created a view point we would collect all necessary information about the

Company and forward it to our Mentor who would take the information and conduct a sales pitch.

4.2 Exploratory Research

The Exploratory Research involved three main parts

1. Secondary Research

2. Expert Interviews

4.2.1 Secondary Research

Secondary Research involved research about the LED Industry, finding out competitors,

competitors strategy, Market strength of Philips LED Products. Journals, Newspaper ads, TV Ads,

Websites, Articles, PDF documents, Youtube, Social Media websites were studied to understand

about the Industry. Some of the findings were as follows.

1. LED Lamps has longer life than Conventional CFL's.

2. Price of LED quoted by other companies were lesser than Philips LED Products.


18/26


3. Philips LED products were welcomed across all Social Media websites for their Energy

Efficiency.

4. Continuous decline of LED retail prices, dropping at a rate of 20-25% per year compared to

incumbent technologies where prices are flat or are declining much more slowly. A

narrowing price differential between LEDs and more traditional forms of lighting is

therefore slowly removing one of the key barriers to mass adoption.

5. Payback period of LEDs are continuously shrinking along with the LED retail prices. Based

on extensive research in Japan where energy prices are very high, thus lowering the time to

payback for more efficient bulbs, customers have a 10% chance of adopting a technology if

payback is two years, a 30% chance if payback is one year, and a 40% if payback is six

months. Therefore, the time to payback metric helps to predict LED adoption with some

historical and empirical accuracy. Hence there is an expected market penetration in the

Indian Lighting Industry in the coming years.

Fig no 2: Payback period vs. probability of adoption in LEDs

6. Unlike other incandescent lights, LED lights does not release heat energy into the

surrounding environment resulting in a green environment . Some of the waste heat is

produced within the LED itself during the conversion of electricity into light. This waste

heat must be properly removed from the lighting system to maximize fixture performance

and to avoid damage to the LEDs.


19/26


7. Many manufacturing companies rely on continuous usage of lamps and are frequently

subjected to Load shedding. So they expect LED lights that can withstand load shedding

problems.

8. Another main issue is the Lumen Depreciation, as many of the textile manufacturing

companies repeatedly report this issue. They say that TLED lights does not provideequivalent brightness compared with the traditional lights. This factor actually prevents

them from moving into LED technology.

4.2.2 Expert Interviews

Expert Interviews were conducted with Philips Personnel and Key Accounts customer so as to gain

in depth knowledge about the various products, buying behavior of customers, lighting needs of

various customers across different industries.

Insights gained from Expert Interview with Mr. Laljith K, Sales Executive, Philips Lighting,

Calicut

Philips has the largest LED wider product range when compared to other companies.

Philips is the market leader of Lighting solutions in India.

Philips LED products are easier to fit and connect.

TLED lamps are currently the fastest moving product in other parts of Kerala.

Insights gained from Expert Interview with Mr. Abdul Basith, Executive Director, Focus

Hypermarket, Calicut

Energy savings is highly needed to reduce the electricity bill charges produced via Lighting.

Philips TLED lamps are more compact and require less space compared to CFL's.

Better light output than CFL's.

Insights gained from Expert Interview with Mr. Sandeep M, Managing Director, Chazia

Textiles, Mallapuram

Maintenance cost is less with Philips LED.

Although costly than other LED products, Philips LEDs provides better light output and

energy efficiency.

Lesser number of LEDs were needed to replace CFL tubes.


20/26


Insights gained from Expert Interview with Mr. Hameed, Manager, Moulana Hospitals,

Mallapuram

Brightness of the LED lamps are better than CFL.

High Energy savings in term of Electricity Bills.

Maintenance free LED lamps.

The Key buying factors for LED lamps from Philips were as follows.

1. Maintenance Free

2. Increased Life of LED lamps

3. Better Brightness

4. Highly Energy Efficient

5. Reduced Replacement Cost

6.

Can use existing CFL tube set without choke and starter.

4.3 Descriptive Research

After the Initial Exploratory phase we had clear insights about the Buying Behavior of Customers,

what their lighting requirements could be and how do they categorize their necessity. With this in

mind we created a Questionnaire which will give us better insights of the various B2B segment

customers, their lighting requirements, their future needs of lighting. Kindly Find below the

segmentation of B2B segments done for this purpose.


21/26


B2B

Segment

Industry

TypeName of the Company Location

Current Lighting

Consumption

Lighting Consumption

when changed to LED

Hospitals Service

Moulana Hospital Mallapuram 18000 Watts 9000 Watts

BMH Hospital Calicut 23000 Watts 11000 Watts

MIMS Calicut 30000 Watts 15000 Watts

MIMS Mallapuram 22000 Watts 10000 Watts

Al Shifa Mallapuram 25000 Watts 12000 Watts

Jewellers Retail

Malabar Gold Calicut 12000 Watts 6000 Watts

Apollo Gold Calicut 18000 Watts 9000 Watts

Marhaba Gold Mallapuram 10000 Watts 5000 Watts

NgD Jewellers Mallapuram 13000 Watts 6000 Watts

Arackal Fashion

JewellersMallapuram 20000 Watts 10000 Watts

Textiles Retail

Preethi Silks Mallapuram 40000 Watts 20000 Watts

Sana Silks Mallapuram 36000 Watts 18000 Watts

Chazia Silks Mallapuram 22000 Watts 11000 Watts

Pink Fashions Calicut 30000 Watts 15000 Watts

Linen Store Calicut 12000 Watts 6000 Watts

Super

MarketsRetail

Quality Home Shoppe Mallapuram 15000 Watts 7000 Watts

Shalimar Super

MarketsCalicut 12000 Watts 6000 Watts

Focus Hyper Market Calicut 12000 Watts 6000 Watts

Malls Service

Focus Mall Calicut 26000 Watts 13000 Watts

Space Mall Calicut 20000 Watts 10000 Watts

R P Mall Calicut 18000 Watts 9000 Watts

Emerald Mall Calicut 18000 Watts 9000 Watts

From the above data it is clear that there will be a 50% power savings in all of these B2B segments as all

Industries are currently using 36 Watts CFL tubes for all their lighting purposes.

Philips TLED tubes consumes around 10 Watts of electricity for the same lumen output as that CFL tube.

This means that almost 50% percent of the power consumed by CFL lamps can be reduced using TLED

tubes from Philips. Please find below a sample calculation for B2B segments.


22/26


Hrs/day Noof

days

ElectricityCost / Unit

Watts /CFL

Cost / Unitconsumedby 1 CFLin a year

Watts /LED

Cost / Unitconsumedby 1 LEDin a year

Totalelectricitycost saved

by 1 light /

year

PricePayback(Years)

Industry 10 365 8.5 36 1120 20 620 500 1700 2

24 365 8.5 36 2680 20 1340 1340 1700 1.4

Office

10 260 8.5 36 800 20 400 400 1700 3

24 260 8.5 36 1900 20 950 950 1700 1

Retail 12 365 8.5 36 1340 20 744 596 1700 2


23/26


Chapter 5

Save With Lighting App


24/26


Save with Lighting Application, and android application of Philips Company was made visible to

many B2B segment customers. Using this application Customer of B2 B segments can find out the

Current power consumption of their establishments by just simply keying in data. Using this App,

you can instantly calculate energy savings when you change/upgrade your existing lighting with

Philips energy efficient lighting.

Many of the Customers found this application easy to use and have ever since used this application

to find their Power Consumption at their own homes.


25/26


Chapter 6

Recommendations


26/26

1. Nearly 80% of the untapped clients in Northern Kerala do not know about Philips LED products.

Marketing via Newspapers, Banners, Flex..etc needs to be adopted for better growth of Market

Share in Northern Kerala.

2. As many organizations currently tend to move towards Green Energy ratings, Philips after

mutual discussion can provide Green Energy Compliance certificate as recognition to Organizations

that use Philips LED as an incentive.

3. Participation of Marketing events in Northern Kerala can help boost the visibility of the Philips

LED products.

4. The involvement of channel partners need to be increased through schemes and rewards. Where

the reach of the product is considered rather than just obtaining target.

REFERENCES

1. http://www.lighting.philips.co.in/

2. Data obtained through interaction with company personnel

3. http://www.bajajelectricals.com/

4. http://www.ledsconference.com/home.aspx

5. http://www.strategiesinlight.com/index.html

6. http://www.euroled.org.uk/7. http://syskaledlights.com/

8. http://www.hplindia.com/consumerlumen1.asp?subcat=LED%20Lighting

9. http://en.wikipedia.org/wiki/Main_Page

philips report_vineeth vijayan

Documents