summer training project , siva sivani institute of management , pdgm ( marketing)

SIVA SIVANI INSTITUTE OF MANAGEMENT (Approved by the All India

Council for Technical Education)

A StudyOn

“Market mapping, positioning and the types of distribution for Philips home theatre system at the major counters in the city of

Kolkata and its Suburban area.”

Submitted in partial fulfillment of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM-MKTG.)

Submitted by Aisik Sur (M2-05)

Under the guidance of

Prof. Anil Kumar Mr. Tushar Das Faculty Senior Manager Siva Sivani Institute of Management. Consumer Life-

Style (CLS) Philips India Ltd.

1

CONTENTS

Acknowledgement.

Declaration.

Certificate.

List of Tables.

Chapter – 1.

Introduction

Introduction.

Scope of the study.

Significance of the Study.

Objectives of the study.

Literature Review.

Scheme of Dissertation.

Chapter – 2

Company Profile.

Industry Profile.

Chapter-3

Research Methodology

Introduction.

Research Design.

Sample Profile.

Tools and Methods of Data Collection.

Data Processing and Analysis.

Limitations.

2

Chapter 4

Data Analysis

To find out the market share for Philips home theatre system in Kolkata and its

suburban area.

To find out the positioning of Philips HTS in the dealers and the distributors mind.

To find out the visibility of Philips HTS in the major counters.

To find out the type of distribution the dealers and the distributors has.

To find out the likeliness of most of the customers while buying a particular home

theatre system.

Chapter-5

Interpretation and Findings

Chapter-6

Recommendations and Discussions

Chapter-7

Bibliography

Annexure

Questionnaire

3

ACKNOWLEDGEMENT

I take immense pleasure in partial completion of this summer training report and submitting

this interim project report.

Till now the summer training project with PHILIPS ELECTRONICS INDIA LTD. has

been full of learning and sense of contribution towards the organization. I would like to

thank PHILIPS ELECTRONICS INDIA LTD for giving me an opportunity of learning

and contributing through this project. I also take this opportunity to thank all those people

that made this experience a memorable one. A successful project can never be prepared by

the single efforts of the person to whom the project is assigned, but it also demand the help

and guardianship of some conversant person who help is actively or passively needed for

the completion of a successful project.

In this context as a student of SIVA SIVANI INSTITUTE OF MANAGEMENT,

Secunderabad, I would first of all like to express my gratitude to Mr. Tushar Das for

assigning me such a worthwhile topic “Market mapping, positioning and the types of

distribution for Philips home theatre system at the major counters in the city of

Kolkata and it’s Suburban area”. Working with Philips Ind. Ltd. (Mr. Tushar Das Sr.

Manager, Consumer Lifestyle) has been a source of inspiration through his constant

guidance, personal interest, encouragement and help. I convey my sincere thanks to him.

In spite of his busy schedule he always found time to guide me through the project. I am

also grateful to him for reposing confidence in my abilities and giving me the freedom to

work on my project. I convey a very special thanks to Mr. Arka Basu(Asst sales Manager)

for being there as a great motivator, a source of inspiration.

I extend my profound thanks to my college project guide Mr. Anil Kumar, faculty Siva

Sivani Institute Of Management.

I sincerely thank my parents and my friends for their encouragement and co-operation

during the course of my project

Place: Signature

Date: Aisik Sur

DECLARATION

I hereby declare that this project report titled “Market mapping, positioning and the

types of distribution for Philips home theatre system at the major counters in the

city of Kolkata and it’s Suburban area”, for Philips Electronics India Ltd. Is till now

an original work, carrying out under the guidance of Mr. Tushar Das for the partial

fulfillment of the requirements for the award of the POST GRADUATE DIPLOMA IN

MANAGEMENT ( Mktg.).

Aisik Sur (M2-05)

Final Year- PGDM (Mktg.)

5

CHAPTER – 1

(Introduction)

6

INTRODUCTION

The entire project work aims to build a market mapping and positioning of Philips’s Home

theatre system. And also to understand it’s market share in 5.1 Channel Home Theatre

System (HTS) in the major counters at the city of Kolkata and it’s suburban area. This

project gives an overview of what the consumers want in a home theatre system along with

their incurred cost, like the features and other things. And also it gives the overview of the

whole home theatre system market in Kolkata and its suburban area (market mapping)

along with it, it gives the idea of the type of billing system, that distributors and the retailers

want. This project helps to understand the positioning of HTS. Although a detailed study

has been done but only the brief of the study has been put in this paper and all the important

statistical data has been incorporated by using charts, bar diagrams etc to make it easily

understandable. All the latest statistics from most reliable sources have been included.

.

SCOPE OF THE STUDY

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1) This study is helping Philips to discover a lot of unexplored area in Kolkata and it’s

suburban are.

2) The company is looking forward to tap those markets.

3) The study is also helping to understand the current market trend for Home theatre

systems.

4) The company has a chance to regain it’s lost brand image and reposition itself.

5) This study will be helping Philips in many ways, like: To identify their flaws and

deficiencies, their quality of service, the product’s quality comparing to the

competitors and also the spare parts availability.

SIGNIFICANCE OF THE STUDY

1) As a PGDM (Marketing ) student working with such a big brand name is a dream

come true for me.

2) I tried to understand their strategies and their tactics while operating the business.

3) I am in the growth stage of a learning curve, so I am trying to be professional and

learning the corporate culture.

4) Because I am representing my institute, Siva Sivani Institute Of Management, so

it’s mine responsibility to hold mine institute’s name high.

5) I hope that after completion of this project, it will create bondage between Siva

Sivani Institute Of Management and Philips.

6) So that in near future many student approaches to Philips for their summer training

programme well as at the time of final placement.

7) The raw market experience I am gaining, while working – it’s giving me an

immense exposure in terms of gaining knowledge and to understand the market.

8) At last I can say that, for me the significance of this project is extreme.

OBJECTIVES OF THE STUDY

8

General Objective:

To know the market mapping of Philips HTS comparing to the competitors.

Specific Objective:

To know the market share for Philips home theatre system in Kolkata and it’s suburban

area.

To know the positioning of Philips HTS in the dealers and the distributors mind.

To know the visibility oh Philips HTS in the major counters.

To know the type of distribution the dealers and the distributors has.

To know the likeliness of most of the customers while buying a particular home theatre

system.

LITERATURE REVIEW

It has been decided to accomplish the project work in a manner to make it as comprehensive

as possible .To make it comprehensive enough a through literature survey has been carried

out before starting working on the actual. The first part Literature survey has been given

so much importance that the. First part of the project work has been dedicated for that

purpose. It consists of studying in detail the current situation in the Indian consumer

electronics sector (more specifically about the Home theatre system segment).

The second part of this project work will consists of detailed market analysis Work on this

portion has just been started so it is actually in a very primitive Stage. Only a few words

have been written on this part. The final report will contain the detailed analysis as well as

a proposed model to be implemented in due course of time.

SCHEME OF DISSERTATION

9

Chapter: 1

It consists of the general introduction of the project. Following with the scope of the study,

means the scope from the company’s perspective. Next comes the significance of the

project. What did I understand and what are mine learning from this project we can

understand that from this portion. The next part is the objective of the project, the basic

purpose for doing this project to me. Following this comes the section of the literature

review. This states that , whether any previous work had been done on this topic or not,

where I sited some examples. And the last comes the scheme of dissertation.

Chapter: 2

This portion gives an overview of the whole Royal Philips as well as the Philips India Ltd.

Along with this comes the industry profile. Here the industry means the Home theatre

system industry. Its market in Kolkata, the number if competitors are operating, their

available models in the market along with Philips home theatre system. Next comes the

departmental details.

Chapter: 3

This chapter describes the types of research I did, as well as the methods of data collection,

means the procedure I followed while collecting the data’s. The number of sample I have

collected and the profile of the samples. At last the limitations I faced while conducting

mine project.

Chapter: 4

This chapter is the most important chapter in mine whole project. It will show that the

objective I took earlier whether I am meeting them or not? So the correct analysis of the

whole report is very important.

Chapter: 5

Here I interpreted the data and noted the findings.

Chapter: 6

10

This chapter is very important from a company’s point of view. Because here I gave the

suggestions and the recommendations the company is needed to grow their business more.

The experience I gained after roaming in the market and all mine understandings are

delivered here as a written format.

Chapter: 7

This chapter consists of the bibliography, annexure and the questionnaire.

11

CHAPTER – 2 (Industry &

Company profile)

COMPANY PROFILE

12

SNAP SHOT OF PHILIPS:

Royal Philips Electronics N.V.

Type Public ( NYSE, NASDAQ)

Founded 1891 Eindhoven

Headquarters Amsterdam, the Netherlands

Key people Gerard Kleisterlee, CEO

Industry Electronics

Products Consumer electronics

Domestic Appliances

Lighting

Medical systems

Revenue €68,395 billion (2007)

Net income €4,168 billion (2007)

Employees 123,801 (2007)

Slogan Sense and Simplicity

Website http://www.philips.com

AN OVERVIEW OF THE COMPANY

13

http://www.philips.com/














The company was founded in 1891 by Gerard Philips in Eindhoven, the Netherlands. Its

first products were light bulbs 'and other electro technical equipment'. Its first factory

remains as a museum. In the 1920s, the company started to manufacture other products,

such as vacuum tubes, in 1927 they acquired the British vacuum tube manufacturers

Mullard and in 1932 the German tube manufacturer Valvo, both of which became daughter

companies. In 1939 they introduced their electric razor, the Phil shave (marketed in the

USA using the Norelco brand name). Philips introduced the compact audio cassette tape,

which was wildly successful, though its attempt to set a standard for video cassette

recorders, the V2000, was unsuccessful in the face of competition from the Betamax and

especially VHS standards.

On May 9, 1940, the Philips directors were informed about the German

invasion of the Netherlands to take place on May 10. They decided to leave

the country and flee to the United States, taking a large amount of the

company capital with them. Operating from the US as the North American Philips

Company, they managed to run the company throughout the war. At the same time, the

company itself was moved to the Netherlands Antilles (on paper) to keep it out of German

hands. After the war it was moved back to the Netherlands, with their headquarters in

Eindhoven. Many secret research facilities were locked and successfully hidden from the

invaders, which allowed the company to get up to speed again quickly after the war.

It is also believed that Philips - both before and during the war - supplied enormous

amounts of electric equipment to the German occupation forces, which has led some people

to think that the company collaborated with the Nazis , like many other firms in their day.

However, there is no evidence to suggest that Philips itself or its management ever

sympathized with the Nazis or their ideologies. The only Philips family member, who did

not leave the country, Frits Philips, saved the lives of 382 Jews by indicating to the Nazis

that they were indispensable for the production process at Philips. In 1996, he was awarded

the Yad Vashem reward by the Israeli ambassador for his actions. Clearly, there is little

Philips could have done to prevent the Germans from abusing their production facilities

14

and forcing their employees to perform slave labor during the occupation. The production

facility in Eindhoven was the only Dutch industrial target that was deliberately bombed by

the allied forces during the war.

INDIA:

Philips started operations in India at Kolkata (Calcutta) in 1930 under the name Philips

Electrical Co. (India) Pvt. Ltd, comprising a staff of 75. It was a sales outlet for Philips

lamps imported from overseas.

In 1938, Philips India set up its first Indian lamp-manufacturing factory in Kolkata. After

the Second World War in 1948, Philips started manufacturing radios in Kolkata. In 1959,

a second radio factory is established near Pune.

In 1957, the company is converted into a public limited company, renamed "Philips India

Ltd".

In 1965 on 3rd April, the millionth Philips radio is manufactured in India.

In 1970 a new consumer electronics factory is started in Pimpri near Pune. (This factory is

now closed. It was closed in 2006.)

In 1982, Philips brought color television transmission to India with the supply of four

outdoor broadcast vans to Doordarshan during the IX Asian Games.

In 1996, the Philips Software Centre was established in Bangalore.

HISTORY OF THE BRAND MARK:

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The foundations for what was to become one of the world's biggest healthcare, lifestyle

and technology companies were laid in Eindhoven, the Netherlands, in 1891 when brothers

Gerard and Anton Philips founded Philips & Co. to meet the growing demand for light

bulbs created by the commercialization of electricity.

Today we are all used to seeing the name Philips in uniform blue capital letters. It may

appear in different sizes and colours but the basic shape of the seven capitalized letters is

instantly recognizable wherever in the world we encounter it

In the early years of the company, the representation of our name took many forms. One

was an emblem formed by the initial letters of Philips &Co., and another was the word

Philips printed on the glass of metal filament lamps

In 1898, Anton Philips used a range of postcards showing the Dutch national costumes as

marketing tools. Each letter of the word Philips was printed in a row of Light bulbs as at

the top of every card. In the late 1920s, the name began to take on the form that we

recognize today.

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Of mini-watt radio valves, as well as on the Phil graph, an early sound recording device

the now familiar Philips waves and stars first appeared in 1926 on the packaging. The

waves symbolized radio waves while the stars represented the ether of the evening sky

through which the radio waves would travel.

It wasn’t until 1930 that the four stars flanking the three waves came together for the first

time in a now familiar circle. They appeared on radios and gramophones, which featured

the circle, complete with stars and waves, as part of their design. The use of the circle

emblem was then gradually extended to advertising material and other products

By this time, our business activities were expanding rapidly and we wanted to find a

trademark that would be uniquely Philips, but that would also avoid legal problems with

the owners of other well-known circular emblems. It was this wish that resulted in the

combination of the Philips circle and the word mark within the now familiar shield emblem

In 1938, the Philips shield made its first appearance. Although modified over the years, the

basic design has remained constant ever since and, together with our word mark, gives us

the distinctive identity we enjoy today.

Whilst the logo of the company has been consistent since the 1930s the way Philips has

advertised and communicated to the outside world has varied. Up until the mid-1990s all

advertising and marketing campaigns were carried out at product level on a local market

basis. This led to many different campaigns running simultaneously, not giving a global

representation of Philips as a global company.

In 1995 Philips introduced “Let’s make things better”. This was the first global theme and

the first global campaign that encapsulated One Philips. This theme was rolled out globally

17

and appeared in all markets and on all Philips products. This was also the first campaign

that bought the whole company together, giving the employees a sense of belonging and

providing a unified company look for an external audience.

“Let’s make things better” has served the company extremely well over the past nine years,

but as the markets change and the company evolves so has the tagline. 2004 sees the new

brand promise of “Sense and Simplicity” being delivered.

Philips is now looking at the entire brand perspective of the company, ranging from the

online experience through to internal design processes. The new brand promise of “Sense

and Simplicity” will help to take Philips forward as a healthcare, lifestyle and technology

company, into new emerging and exciting markets.

GLOBAL LEADER:

Royal Philips Electronics is tenth on Fortune's list of global top electronics corporations.

We are active in about 60 businesses, varying from consumer electronics to domestic

appliances and from security systems to semiconductors.

We are a world leader in digital technologies for television and

displays, wireless communications, speech recognition, video

compression, storage and optical products as well as the

underlying semiconductor technology that makes these

breakthroughs possible.

We have world class solutions in lighting, medical systems (particularly scanning and other

diagnostic systems) and personal and domestic appliances where our investments in design

and new materials are critical to success.

Translated into figures, we produce over 2.4 billion incandescent lamps every year, and

some 30 million picture tubes.

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Around 2.5 million heart procedures (scans and interventional procedures) on X-ray

equipment are carried out each year using our technology.

One in seven television sets worldwide contains a Philips picture tube, and 60 percent of

all telephones contain Philips products.

Thirty percent of offices around the world are lit by Philips Lighting, which also lights 65

percent of the world's top airports, 55 percent of major soccer stadia, and 30 per cent of

hospitals.

The strength of Philips' global operations is reflected in its (value-based) leadership

position in many of the markets in which it is active:

BUSINESSES:

Whole ranges of businesses support activities in healthcare, lifestyle and technology.

MEDICAL SYSTEMS:

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With over 30,000 employees - more than half of them in the USA - and a presence in more

than 100 countries around the world, Medical Systems is firmly established as a worldwide

leader in many of the markets it serves. Philips is a top

three medical device company, and number one in

systems for X-ray, cardiovascular ultrasound, patient

monitoring and automatic external defibrillators.

Focus areas include imaging systems, customer

services, and information and monitoring systems. The

HeartStart Home Defibrillator is an example of advanced technology that is ‘designed

around you’ and ‘easy to experience’.

DOMESTIC APPLIANCES AND PERSONAL CARE:

Philips Domestic Appliances & Personal Care (DAP) employs some 8,200 people, runs

manufacturing operations in 7 countries and maintains

more than sixty individual national sales organizations

around the globe. We believe that even life’s ‘ordinary’

moments should be special too, and create household and

personal care devices that combine innovative

technology with a thorough understanding of people’s need. Our goal is to help people feel

good, look good and live in comfort through easy-to-use products that add an extra

dimension to life. The Cool Skin shaver, Sonicare electric toothbrush and Senseo coffee

machine are prime examples.

CONSUMER ELECTRONICS:

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Employing 17,000 people worldwide, Consumer

Electronics is a global leader in connected displays,

home entertainment networks and mobile

infotainment. Consumer Electronics helps realize our

Lifestyle focus and enhance people’s lives by simplifying access to content, information

and services at anytime and anywhere. We do this with products like the Ambilight TV

that enriches the viewing experience, and the Go-Gear Jukebox that intuitively selects

music to match your mood. We are the global leader in connected displays, home

entertainment networks and mobile infotainment.

LIGHTING:

Philips Lighting is No.1 in the global lighting market and employs 44,000 people

worldwide, with manufacturing operations in Europe, the United States, Latin America and

Asia. Improving the quality of life with light goes back to our foundation in 1891. Today,

our products still make life easier and more efficient. From lighting for interiors and offices

to illuminating Olympic Stadiums and national landmarks, we enhance public safety and

provide a sense of well-being. Light also provides heat, purifies water, treats disease,

increases road safety and even plays a role in semiconductor manufacturing.

SEMICONDUCTORS:

As a global top ten semiconductor manufacturer,

we provide enabling technologies for our

Healthcare, Lifestyle and Technology vision. We

focus on semiconductors for connected consumers,

giving them intuitive access to information, entertainment and services at anytime,

anywhere and on any device. We provide solutions for the consumer, communications,

automotive and computing markets.

21

OTHER ACTIVITIES:

This sector comprises the Corporate Technology, corporate investments and others, a range

of Philips' businesses that strategically no longer fit in the current product divisions.

World Europe

Lighting 1 1

Consumer Electronics (audio/video) 3 1

Monitors (units) 4 3

Shavers 1 1

Steam irons 2 2

Semiconductors 9 4

Color picture tubes 3 1

DVD recorders 1 1

Medical imaging equipment 2 1

Dental care (electric toothbrushes) 2 2

ABOUT THE SLOGAN, “SENSE AND SIMPLICITY”:

In September 2004, Philips launched its “sense and simplicity” brand promise, which

marked a new way forward for the company. Philips made a commitment to its

22

stakeholders to become a market driven company by relentlessly pursuing “sense and

simplicity”: refining our brand and our organization to be designed around you, easy to

experience and advanced

The Simplicity Event was launched in Paris in 2005 as an annual series of events that

celebrate our brand promise of “sense and simplicity”. The event is a forum through which

we can share both our recent success and our vision for the coming years on how we have

and will continue to deliver on our promise

The Simplicity Event 2006 series will launch in London, October 2-5, 2006 and will travel

on to Hong Kong and Brazil. It is an intimate, invitation-only event to which Philips

stakeholders from across the globe are invited to celebrate our progress on the road to

Simplicity and to give us their feedback on our plans for the years to come

Hosting the London event will be Gerard Kleisterlee, President and Chief Executive

Officer of Royal Philips Electronics; Andrea Ragnetti, Chief Marketing Officer and Chief

Executive Officer of Philips Domestic Appliances and Personal Care; Geert Van Kuyck,

Senior Vice President of Philips Global Marketing Management; and Stefano Marzano,

Chief Executive Officer and Creative Director of Philips Design.

INDUSTRY PROFILE

CONSUMER ELECTRONICS AND DURABLES MARKET:-

23

Consumer electronics and durables is one of the largest industries in the India, with

Annual sales of $7.74 billion in 2006 and $9.3 billion in 2007. The industry has been

Growing at a compound annual growth rate (CAGR) of 8.3 percent over the last five

Years. Indian consumer electronics and durables production was 3.1percent of the

Global consumer electronics and durables production in 2004. The consumer

electronics and durables market is highly competitive as the Indian brands such as

Videocon, Onida, BPL fiercely compete with global brands like LG, Samsung,

Philips and Sony.

The Total Market (TM) for semiconductors in India in 2005 is estimated at $2.82

billion and the consumer electronics and durables market accounts for about 10.6

Percent of the TM. The Total Available Market (TAM) for semiconductors in India was

valued at $1.14 billion in 2005 and the consumer electronics and durables market

Accounts for 17.3 percent of the TAM. The higher manufacturing activity in the

consumer electronics and durables industry reflects in the higher share of the TAM.

The study is comprehensive in its content and approach. All the major products are

covered under the consumer electronics and durable segment. The products covered

include Televisions, DVD, Players, VCD Players, Set-top Boxes, CATV Equipment, Air

Conditioners, Washing Machines, Audio Players, Microwave Ovens.

consumer electronics and durables market is a major contributor to the

semiconductor TAM and TAM in India and would continue to be a major segment

in

forecast period as well. Consumer electronics and durables market has higher

manufacturing activity compared to other markets. The growing consumer base,

lower penetration levels and increasing disposable incomes have huge investment

into this market. Besides, the leading industry participants have firmed plans to

make India a hub for global exports. Under these circumstances, the semiconductor

24

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25

Consumer electronics and durables market: TM and TAM revenue(2003-15)forecasts(India), 2003-2015.

The Home theatre system comes under consumer electronics section Philips India Ltd.has

a great deal of consumer electronics products. Consumer Electronics employs

approximately 16,000 people worldwide and operates in three main business areas:

Connected Displays; Home Entertainment Networks and Mobile Infotainment. It

maintains sales and service organizations in 50 countries and runs manufacturing

operations in Belgium, France, Hungary, Mexico, Argentina, Brazil, India and China.

In India the manufacturing unit of Philips is situated in Pune and other places.

In India the consumer electronics market are growing in a very fast way so as the home

theatre system market.

But in eastern region, more specifically I can say from West- Bengal’s “Kolkata” the whole

marketing activities has been done for the company.

Though the market for consumer electronics can be found in every part of west Bengal but

in case of “Home theatre system” the market is developed only in Kolkata, and some part

of it’s suburban area. Because in the rest portion consumers has a less buying capacity. So

for Home theatre system only the big players are operating here, like- Philips, Sony,

Samsung and LG. But still one can find some of the local made home theatres like –

Santosh, Perx, Akai, Intex, Logitech, F&D, Finesse etc. These are comparatively much

cheaper.

In Kolkata, there are 7 models are available for Philips home theatre system. The normal

home theatre system consists of 5.1 speaker system with a DVD. But the company is trying

to develop a new version of Home theatre system with a 2.1 speaker system.

Providing an easier way to experience surround sound:

Whereas 5 speaker boxes are traditionally needed for surround sound, new smart

technologies are now appearing that can produce a satisfying surround-sound experience

with as few as 2 speaker boxes. One of the foremost of these is SonoWave technology

26

developed by Philips Applied Technologies for Philips Consumer Electronics’ Audio

Video Systems (AVS) Business Line Cluster in Singapore.

In contrast to conventional 2-box solutions using virtualizing techniques, Philips'

SonoWave allows the reproduction of coloration-free surround sound over a wide sweet

spot. The technology makes use of a special arrangement of multiple speaker drivers

combined with dedicated digital sound processing that control the loudspeaker box

directivity. This enables surround sound energy to be maximized in the direction of the

side walls and minimized in the direction of the listener. AVS Singapore approached

Philips Applied Technologies to develop a 2-box surround-sound system in January 2003

and by the following March the first demonstration of the new system took place in

Singapore. After further refinements, a second demonstration showed that the system

outperformed the best from the competition and, moreover, could be produced at a far

lower cost. Sono Wave technology was born. Within a year, development of the Philips

HTS-8000 2-point surround-sound system was started. The system so impressed Hi-Fi

equipment manufacturer Yamaha, an OEM partner of Philips AVS, that the company

licensed the technology and currently uses it in its own 2-box surround-sound systems,

promoting it under the name 'Air Technology'. Several variants of the 2-box SonoWave

solution are currently in the feasibility phase and Philips AVS plans to introduce additional

products based on this innovative technology within the coming two years.

27

Challenge:

To develop a 2-box surround-sound system with a performance equal or superior to that of

the best of the competition and at a lower price.

Result:

Development of Philips’ Sono Wave surround-sound technology

Introduction of the Philips’ HTS-8000 two-point surround-sound system

Licensing of the Sono Wave technology to Hi-Fi equipment manufacturer Yamaha

Benefit:

For Philips avs: excellent opportunity to win market share with a new highly-competitive

surround-sound system and opportunities to earn revenue through licensing the Sono -

Wave technology .

Available Models of Philips Home theatre system in market:

HTS 3151D

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HTS3010D

HTS3256D

29

HTS3366D

HTS3565D

30

HTS3566D

HTS3568W

31

HTS3569D

HOME THEATRE SYSTEM MARKET:

COMPANY NAME MODEL NUMBER PRICE

Philips HTS3010 8990/-

HTS3152 10990/-

HTS3105/07 12990/-

HTS3545 14990/-

HTS3548 19990/-

HTS3548W 27990/-

Sony DAV-DZ20 9990/-

DAV-DZ151KB 12990/-

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DAV-DZ150K 12990/-

DAV-DZ270 14990/-

DAV-DZ570 19990/-

DAV-DZ777 24990/-

DAV-DZ555K 17990/-

LG HT902TB 24990/-

HT762TZ 29990/-

HT302SD 8990/-

HT202SF 7990/-

HT1252 7490/-

Samsung HT-TX30 13990/-

HT-TX20 1O990/-

HT-TX25 19990/-

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CHAPTER – 3

(Research Methodology)

34

INTRODUCTION

Research can be defined as systemized effort to gain new knowledge. A research is carried

out by different methodologies which have their own pros and cons. Research methodology

is a way to solve research in studying and solving research problem along with logic behind

them are defined through research methodology. Thus while talking about research

methodology we are not only talking of research methods but also considered the logic

behind the methods. We are in context of our research studies and explain why it is being

used a particular method or technique and why the others are not used. So that research

result is capable of being evaluated either by researcher himself or by others.

RESEARCH DESIGN

Research design states the whole procedure of preparing the questionnaire to collecting the

data’s from the sample. What type of research design has been taken or opted to complete

this project worthwhile, that has been described below. The research design consists of –

selecting the sample, collecting the data’s from those samples and most importantly the

process has been taken to take those data’s from the sample (research methodology) ,

everything. So to submit a good project report, one’s research design should be very

properly set.

SAMPLE PROFILE

For me the sample profile is all the major counters present in the city of Kolkata and its

suburban area. The samples I have collected through personal visit into the counters which

took a hell lot of time, because Kolkata is a metropolitan city and from there I have to

identify all the major counters. Basically I mostly visit to the dealers and the distributors.

These dealers and the distributors deals with all most every consumer electronic brands

available in the market, like- Philips, Sony, Samsung, LG, Videocon etc. I meet with them

personally to collect the data’s.

OBSERVATION

35

THE CENTRAL ZONE:-

The central zone was characterized by large number of local players. A few of them

unknown and unheard of- like in the HTS there were local players as well as considerably

cheap products like Santosh, Perx, Oscar, Logitech, Intex, Frontech, F&D, Finnesse etc.

But out of this the only stand out local player was Santosh, the brand which has been in

the Indian market for many years now. However the market of branded Home Theatre

Systems market is not prominent in this area – few noticeable counters are Danish music

corner and Ankur in Lenin Sarani and the Harmony House in Park Street.

SOUTH KOLKATA:-

The south Kolkata market is all about the upper middle class and the higher class

consumers which is very much evident from the sales figures. Here the local players are

less because consumers – specially the middle class with the increased disposable income

is very much brand conscious and will only buy the superior ones. Not only that, a trend

is also noticeable among these customers that they want highly standardized products- the

Home Theatre System which they bring home should be exactly the same with the ones

bought by their counter parts in , say, America or the Netherlands. There are lots of big

counters are present there. Some of them are Great Eastern Trading in Behala, Khosla

Behala, Sales Emporium Behala, Khosla Garia, Sales Emporium Garia etc. and many

more.

NORTH KOLKATA:-

The North Kolkata is a mix of upper middle class and the middle class people. General

people’s mentality is some what similar like the central zone people. The want a good

product in comparatively cheaper price. So often they are reluctant to pay an avg. 9000/-

to 10, 000/- bucks to buy a home theatre system. That’s hardly 10-12 big counters are

noticeable in north Kolkata.

EAST KOLKATA:-

36

The east Kolkata market covers the Bidhannagar , Kakurgachi, Maniktala, CIT road area.

People have an average buying capacity. But majority of them are middle class people.

Very few big counters are available there. Most of the people prefer to go south Kolkata

as more counters are available there. The Bidhannagore area consist of the few major

counters. Here the local players are very few because the numbers of shop is itself less.

The major counters keep the branded products.

THE NORTH 24-PARGANAS:-

The north 24-Parganas till the area which is being covered is primarily a market of middle

class and lower middle class people. They want value for their money and their common

ideology resists them from going for branded products. They mostly seek for the local

players whose products cost less and are of the same utility to them. There exists a higher

class in these areas but they are very less in number, like the Sodepur and the Barrack pore

area. Hence, does not disrupt the trend. A few of them buy their products from Kolkata

where they can get ample choice. The few good counters are B.R.Roy and Sons, Gramo

Radio House in Barrack pore, Sathi Traders in Sodepur etc.

HOOGHLY:-

The Hooghly belt is very much the same with the North 24 Parganas region. The

customers over here belong to the middle class category mostly working in the various

industries of the Hooghly industrial belt. These customers are very knowledgeable and

they know exactly what they want to optimize their utility. Mostly the dealers of the

various branded products are not very much pronounced in this region. Apart from this

supply chain problem, the customers generally opt for local players. Sales in the LCD

sector is very low, there is a good market for TVs however the DVD sales are pretty low.

Below there is a chart which consist of 115 shops consisting of dealers. Till now I have

visited and able to collect this much of data.

LIST OF COUNTERS I HAVE VISITED:-

37

SOUTH KOLKATASerialno Name of the counters Address

1 Genesis 41B, Rashbehari Avenue, Kol- 262 Zenith Lifestyle Zone 154B Rashbehari Avenue, Opp Priya Cinema, Kol-293 Ranjan Electronics 165B, Rashbehari Avenue, Kol-204 Sreema Electronics 28/1E, Gariahat Rd, Kol-29. Beside"Anjali Jewellers"5 Electronic World N.S.C.Bose Rd, Kol-406 Bambino 47/2C, Gariahat Rd, Kol-197 Sonovision 54B/1, Jadavpur Central Rd, Kol-328 Electrovision 54B/1, Jadavpur Central Rd, Kol-329 Alap H.C. Sarani, Sonarpur, Kol-150

10 Apollo Electronics 17. N.S.C Bose Rd, Rajpur, South 24 Parganas11 Channel Nine Rajpur, Banstola, Kol- 14912 Vishal Electronics H.C. Sarani, Sonarpur, Kol-15013 Electronic Media 26, N.S. Bose Rd, Kol-14914 New Electronic House 38, N.S.Bose Rd, Kol-14915 Techno City 15B, Sarat Bose Rd, Kol-2016 Sreema Electronics 67/ C.S.P. Mukherjee Rd, Kol-26. Beside Kalighat17 Next Netajinagar18 M.D.Electronics 17N.S.C Bose Rd, Kol 4019 Electronic House Garia20 Khosla Garia Garia

Multi Channel Elecr. Pvt.21 Ltd. Garia22 Sing Machinery Centre Garia23 Fair Deal Intnl Garia

Great Eastern Traiding24 Co Garia25 Sales Emporium 30,Garia Main Rd, Kol-8426 Multi Channel . Gariahat27 Sreema Electronics 67/C, S.P. Mukerjee Rd, Kol-2628 Khosla Electronics 2474-041429 Anandemala Gariahat30 Time-N-Tune 32/4, Gariahat Rd(South), Kol-3131 Capital Electronics Gariahat, 2440-637432 Khosla Behala 371/1, Diamond harbour Rd, Kol-14933 Khosla Electronics Beckbagan (Opp Mithai)34 Khosla Electronics Hazra (Opp. Basusree Cinema)35 Sales Emporium Behala36 The Capital 248/A, Diamond Harbour Rd, Kol-6037 Fair Deal 69, Diamond Harbour Rd, Kol-38 ( Near Taratala Flyover)

Great Eastern38 Appliances Pvt. Ltd 102, Diamond harbour Rd, Behala, Kol-3439 Time-N-Tune 545, Diamond Harbour Rd, Kol-3440 Time-N-Tune 479, Diamond Harbour Rd, Kol-3441 New Radiowave 282, Diamond Harbour Rd, Behala, Kol-3442 Fair Deal Intnl 1, Sourin Roy Rd, Kol-34

38

43 Pal Electronics 95/2, Station Rd, Jadavpure44 Unique Baghajatin Bazar45 Ahona Electronics Santoshpur46 Fair Deal Intnl Santoshpur47 Raipur Electronics Tollygung48 Sur Sangam Elgin Rd49 Sweet Sound Garia Station50 L.K Elecetronics Garia Station51 Electronic House 23 Raja S.C.Mullick Rd52 Federal Electronics 6,Raja S.C.Mullick Rd.

NORTH KOLKATABengal Credit and

54 Trading Corp. 47B, BlockC, New Alipore, Kol-5355 Samrat Electronics 1, Kali Charan Ghosh Rd, Kol-5056 Multi Channel 13, B.T.Rd(Sinthee More), Kol-50

Great Eastern Trading57 Co. 277/2/1,B.T.Road(Sinthee More), Kol-36

Avinandan Electronics 12, Narendranagar (B.T.Road), Kol-56 (Near 9A bus58 Pvt. Ltd. terminus, Dunlop Bridge)59 Anmol Electronics 1/1, B.T. Road, Kol-56

140, B.T.Road, Vikram Super Market, Block -D, Room60 Sanjay Sales NO-13, Kol-35

140, B.T.Road, Vikram Super Market, Block -D, Room61 Shanti Electronics NO-59, Kol-3562 Electro Plaza 2F- Kalicharan Ghosh Road, Kol-5063 Tara Ma Electrics 140, B.T.Road, Vikram Super Market, Block -D, Kol-3564 New Supriyo 20B, Bhupen Bose Avenue, Kol-04

Esteem Aircon Trading65 Corp. 980040413

102A, Sri Arobindo Sarani (Hatibagan Grey St. crossing),66 J.K.Electronics Kol-0667 Soumik 100, Arabinda Sarani, Kol-06

Ray Electronics68 (Anandalok) 100, Arabinda Sarani, Kol-06

EAST KOLKATA69 Satyam Bidhannagar Station Road ( Ultadanga)70 Capital Electronics Ultadanga71 Sales Emporium Ultadanga72 Atul Electronics 179A, Vivekananda Road, (Maniktala Bazar), Kol- 0673 Taranga Electronics 30, Brindaban Bose Lane, Kol-0674 Betar-O-Alo 187, Vivekananda Road, Maniktala Market, Kol-06

123/1/1/, A.P.C. Road, (Beadon Street), Maniktala Bazar,75 Jhankar Kol-0676 Swar Sangam 3, S.N.Pandit Street, Kol-20

Great Eastern77 Appliances Pvt. Ltd. P-273, Maniktala Main Road, Kakurgachi, Kol-54

39

CENTRAL KOLKATA78 Sony Radio & Watch Co. 134/1, M.G.Road, Kol-0779 Vijay Radio 166, M.G. Road

Great Eastern Trading80 Co. Dalhousie81 East India Trading Co. 14/1B, Ezra Street, Kol-01

Amber Radio82 Corporation 38, Chadney Chowk Street, Kol-7283 The Mahabir Electronics 38/A, Chandney Chowk Street, Kol-7284 Amit Electronics 6/3, Madan Street, Kol-72

Madan Mohan Fancy85 Stores 20, Lenin Sarani, Kol-1386 Sonnet Electronics 23/2, Lenin Sarani, Kol-1387 Ankur Electronics 8, Lenin Sarani, Kol-1388 Philips Music Corner 167 Lenin Sarani89 Summit Electronics 8, C.R.Avenue90 Harmony House 12E, Park Street, Kol-7191 Channel 9 Electronics 2, Lenin Sarani

Capital Chowringhee92 Pvt. Ltd 12, Jawharlal Neheru Road93 Digital World 46B, Rafi Ahmed Kidwai Road94 Raman Music House 4, Madan Street, Kol-7295 Music Corner 167, Dharmatala Street, (Opp Jyoti Cinema), Kol-7296 Sound Of Music 44A, Rafi Ahmed Kidwai Road

HOOGHLY97 Manik Akhanbazar, Chinsurah98 Electronica Tematha,Chandannagore99 Video Parlour Rathersarak, Chandannagore

100 Betaralaya Luxmigung Bazar, Chandannagore101 Radio Emporium Laldighirdhar, Bagbazar, Chandannagore102 Nivedita Electronics Bagbazar, G.T.Road, Chandannagore

Maruti Television103 Manufacturing Co Satyapirtala , Chandannagore104 Radio Emporium Town Guard Road, Ghorir More, Chinsurah105 The Electronic Palace 53/A/1/3, N.S. Avenue, Serammpore106 Sing Stores 23, B.P.Dey Street, Serampore107 Gopal Radio Clinic 55, B.P.Dey Street, Serampore108 Arun Radio Plaza 33, G.T. Road, Chandannagore109 T.V.Palace B.P.Dey Street, Serampore110 National Electronics Bandel111 Quality Electronics Bandel

NORTH 24-PARGANAS112 B.R.Roy and sons S.N. Banerjee Road, barrackpore113 Gramo Radio Sukanta sadan, Barrackpore114 Saha and Sons 14 no railgate, lalkuthi , barrackpore115 Sathi Traders sodepur

40

TOOLS & METHODS OF DATA COLLECTION

ASSUMPTIONS:-1. It has been assumed that sample of 100 respondents represents the whole population

(dealers and the distributors).

2. The information given by the dealers is unbiased

SAMPLING METHODS: -

A sample is the representative of the population which will predict the behavior of the

whole universe.

a. The sampling size put under two categories: Probability sampling and non

probability sampling.

Probability sampling:-This is the process of selecting the elements or group of elements from as well defined

population by such procedure which gives every element in the population an equal chance

of being selected for observation. The sampling method use for this survey is the area

sampling which is a sub type of probability sampling. Many of the counters name I didn’t

know, so I tried to visit almost every shops in a particular market including the big counters

along with the small sub dealers. So mine data collection type was some what a mix of

probability and non-probability sampling method.

Sampling size:-

Large sample gives reliable result than small sample. However, it is not feasible to target

entire population (there are more than 400 shops in the city of Kolkata and it’s suburban

area, so it’s not possible to visit every counter) or even a substantial portion to achieve a

reliable result. So, in this aspect selecting the sample to study is known as sample size.

Hence, for my project my sample size is 100.The Sample Size of 100 is not enough to draw

a conclusion but as per the time assigned it was difficult to take a sample size more than

41

100.The Sample Size consist of 100 dealers and the distributors from the city of Kolkata

and it’s suburban area.

LIMITATIONS:-

Every work has its own limitation. Limitations are extent to which the process should not

exceed. Limitations of this project are:-

1. Duration of Project is not enough to make a conclusion on such a vast subject time

Constraint has become a big limitation.

2. The Sample Size being taken for drawing a conclusion was too small to get an

accurate result.

3. Changing the Mentality of people for buying a branded Home Theatre System is

also a constraint.

4. Difficulty in convincing the dealers to find the proper information.

5. It is a sheer challenge in getting an appointment with the dealers.

6. Some time, I had to talk with the in shop demonstrators or the ISD, many of them

lack proper product knowledge.

7. The dealers were unwilling to share there counter details to a surveyor.

8. Some of the dealers have some problem with the Philips Company itself, so they

gave some fake and improper information.

42

CHAPTER – 4

(Data Analysis and Interpretation)

43

From the data collected through the questionnaire, observation made during the personal

visits the data revealed following information:-

NORTH KOLKATA

Total number of major Consumer Electronics Outlet visited – 11

Data for Home Theatre System in that zone.

TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE

NORTH KOLKATA:-

BRAND NOS SOLD/MONTH

SONY 43

PHILIPS 68

SAMSUNG 3

LG 4

VIDEOCON 0

OTHERS 38

TOTAL 156

44

QUESTIONARE

Name of the dealer- ……………………………………. Contact No & Address: ………………………………….

24%

VIDEOCON

SONY

PHILIPS

SAMSUNG LG

VIDEOCON

OTHERS

30

80

70

60

50

40 Series168

20

10

0

28% SONY

PHILIPS

SAMSUNG

LG44%

OTHERS

2%

2%

MARKET SHARE FOR PHILIPS – 43%.

So we can se clearly that comparing to Philips Sony’s market share is only 28%.

45

TO FIND OUT THE POSITIONING OF PHILIPS HTS IN THE DEALERS

AND THE DISTRIBUTORS MIND:-

EXCELLENT PRODUCT 0

GOOD PRODUCT 5

AVERAGE PRODUCT 5

BELOW AVERAGE PRODUCT 1

9%

EXCELLENT

46% GOOD

AVERAGE45%

BELOW AVERAGE

46% OF THE DEALERS THINK THAT PHILIPS IS A GOOD PRODUCT.

The perception for Philips HTS to most of the dealers in north Kolkata is almost 50:50.

46% of the dealers think that it’s an average product.

46

TO FIND OUT THE VISIBILITY OF PHILIPS HTS IN THE MAJOR

COUNTERS:-

This is the data for the visibility of Philips HTS. Out of 11 shops a total of 25 HTS was

there in the display. Of them 7 was from Philips.

BRANDS DISPLAYED IN THE SHOPS

SONY 8

PHILIPS 7

SAMSUNG 0

LG 2

OTHERS 8

TOTAL 25

Comparative analysis of brands in the display.

32% SONY

PHILIPS

32% SAMSUNG

28% LG

8%OTHERS

0%

THE PERCENTAGE OF THE PHILIPS HTS DISPLAYED IN THE 11 MAJOR COUNTERS IS 28%.

In case of display the majority is in Sony’s hand. 32%of the dealers think that displaying

Sony brand while definitely boost their sale.

47

TO FIND OUT THE TYPES OF DISTRIBUTION THE DEALERS AND THE DISTRIBUTORS HAS:-

These are data’s showing the various types of distribution have in those major 11

counters in North Kolkata.

BRANDS TYPES OF DISTRIBUTION

DIRECT DISTRIBUTOR

SONY 1 6

PHILIPS 2 8

SAMSUNG 0 1

LG 0 1

OTHERS 0 6

Types of distribution for the various brands.

9

8

7

65 DIRECT

4 DISTRIBUTOR

3

2

1

0PHILIPS SONY SAMSUNG LG OTHERS

OUT OF 11 COUNTERS 2 COUNTERS HAS DIRECT AND 8 COUNTERS HAS THEIR BILLING SYSTEM THROUGH DISTRIBUTORS FOR PHILIPS.

Comparing to Sony Philips has more direct and through distributor billing system.

48

TO FIND OUT THE LIKELINESS OF MOST OF THE CUSTOMERS WHILE BUYING A PARTICULAR HTS:-

These are the data’s showing the latest trends the customers follow while buying a HTS.

FEATURES NOS OF CUSTOMERS

DIVX, USB, HDMI 3

LOOKS 1

MORE SOUND OUTPUT 5

LOWER PRICE 2

Customer preferences while buying a HTS.

6

5

4

3 NOS OF CUSTOMERS

2

1

0DIVX, USB, LOOKS MORE SOUND LOWER PRICE

HDMI OUTPUT


18% DIVX, USB, HDMI27% LOOKS

46% MORE SOUND OUTPUT

9% LOWER PRICE

46% OF THE CUSTOMERS LIKES MORE SOUND OUTPUT.In North Kolkata majority goes for MSO. The 2nd preference for customer is

features.

Very less people bother about the price .Looks comes 3rd.

49

205

55

LG

SOUTH KOLKATA

Out of 52 listed shops (given in the list earlier) I have chosen 40 major shops from South

Kolkata, these 40 major shops data’s are more important, because here Sony and Philips

both were sold by the dealers.

BRANDS NOS SOLD PER MONTHSONY 228

PHILIPS 205SAMSUNG 55

LG 26OTHERS 86

TOTAL = 600

Total Sale of Philips HTS in SouthKolkata.

250 228

200

150

NOS SOLD PER

100 86

MONTH

50 26

0

Counter Share for Philips HTS.

MARKET SHARE FOR

SONY38% PHILIPS

PHILIPS HTS IS 34%15% SAMSUNG

34%

4% OTHERS

9%

50

DISTRIBUTOR8



DIRECT DISTRIBUTOR

SONY 17 14

PHILIPS 14 19

SAMSUNG 7 11

LG 4 6

OTHERS 2 16

Types of Distribution for the various brands.

20181614

12 DIRECT

10

6420

OUT OF 40 SHOPS 14 OF THEM HAS DIRECT BILLIND SYSTEM AND 19 OF THEM HAS THEIR BILLING SYSTEM THROUGH DISTRIBUTORS.

Here in South Kolkata because of Sony has a more direct billing system so it has more sale. And its market share is also high comparing to Philips.

51

BELOW AVERAGE



EXCELLENT PRODUCT 2

GOOD PRODUCT 23

AVERAGE PRODUCT 11


Positioning of Philips HTS .

64% EXCELLENT PRODUCT

GOOD PRODUCT

31% AVERAGE PRODUCT

5%

0% PRODUCT

63% OF THE DEALERS THINK THAT PHILIPS HTS IS A GOOD PRODUCT.

Here in South Kolkata the perception for Philips HTS is satisfactory. 63% thinks that it’sa good product.

52

SAMSUNG


COUNTERS:-


SONY 28

PHILIPS 46

SAMSUNG 14

LG 3

OTHERS 13

TOTAL 104

Comparative analysis of brands displayed in the shops.

SONY

13%PHILIPS

27%

44% LG

OTHERS


Here dealers like more in displaying Philips HTS comparing to Sony. Only 27% of SonyHTS are in display comparing to Philips’s 44%.

53

LOOKS

LOWER PRICE

MORE SOUND OUTPUT

LOWER PRICE




DIVX, USB, HDMI 6

LOOKS 4

MORE SOUND OUTPUT 23

LOWER PRICE 7

25 23

20

DIVX, USB, HDMI15

MORE SOUND OUTPUT

10

5

0NOS OF CUSTOMERS


10%DIVX

, USB, HDMI

15% LOOKS57%

18%

57% OF THE CUSTOMERS LIKES MORE SOUND OUTPUT.

In South Kolkata also people gives preferences towards MSO before buying a particular

HTS. Very less percentage of people goes for looks.

54

SONY

10

LG

EAST KOLKATATotal number of major Consumer Electronics counters visited = 12

TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE EAST

KOLKATA:-



LG 20OTHERS 5

TOTAL 124

Total sale of HTS for Philips in East Kolkata

50 4745 42

403530 PHILIPS

25 SAMSUNG

20 LG

15 OTHERS

50

SONY PHILIPS SAMSUNG LG OTHERS

Counter Share for Philips HTS in East Kolkata.

SONY, 38%SONY

PHILIPS

SAMSUNGPHILIPS, 34%

OTHERS

MARKET SHARE FOR PHILIPS HTS IS 34%.WHERE AS Sony HAS A MARKET SHARE OF 38%.

55

AVERAGE PRODUCT



EXCELLENT PRODUCT 0

GOOD PRODUCT 5

AVERAGE PRODUCT 6


Positioning of Philips HTS.

EXCELLENT PRODUCT

45% GOOD

PRODUCT

55%

BELOW AVERAGE PRODUCT


In East Kolkata 55% of the dealers think that Philips HTS is a average product comparing to the competitor brands which they are selling. Only 45% of them think that it’s a good product.

56

SONY

10%20% SAMSUNG

LG20%


COUNTERS:-


SONY 4

PHILIPS 8

SAMSUNG 2

LG 4

OTHERS 2

TOTAL 20

Comparative analysis of brands displayed in the shops ofEast Kolkata.

PHILIPS40%

SONY SAMSUNG

PHILIPS

LG

OTHERS

OTHERS10%


40% of the East Kolkata shops owners like to display Philips HTS. Whereas only 20% of

them displays Sony. But here dealers like to display LG also. 20% of the dealers display

LG products in their shop. Samsung is only 10%.

57

DISTRIBUTOR3

TO FIND OUT THE TYPES OF DISTRIBUTION THE DEALERS AND THE

DISTRIBUTORS HAS:-


DIRECT DISTRIBUTOR

SONY 7 4

PHILIPS 5 5

SAMSUNG 1 4

LG 2 6

OTHERS 0 5

Types of Billing system the dealers and the distributors has in East Kolkata.

8 776 5 55 4 DIRECT4

210

OUT OF 12 SHOPS 5 OF THEM HAS DIRECT BILLIND SYSTEM AND 5 OF THEM HAS THEIR BILLING SYSTEM THROUGH DISTRIBUTORS.

In east Kolkata Sony has more market share than Philips. So it has more nos of direct billing system present than Philips. And the other brand has their billing system done by mostly through the distributors.

58

4

67%

17%8%




DIVX, USB, HDMI 6

LOOKS 4


LOWER PRICE 7

NOS OF CUSTOMERS

98765 NOS

OF CUSTOMERS

3210

DIVX, USB, LOOKS MORE LOWER HDMI SOUND PRICE

OUTPUT

Customer preferences while biying a HTS.

DIVX, USB, HDMI

LOOKS

MORE SOUND8% OUTPUT

LOWER PRICE

67% OF THE CUSTOMERS LIKES MORE SOUND OUTPUT.Similar like South Kolkata. People searches for HTS which has a more wattage.

59

SONY

PHILIPS

162

CENTRAL KOLKATATotal number of major Consumer Electronics counters visited = 17

TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE CENTRAL

KOLKATA:-



LG 2OTHERS 191TOTAL 439

Total average sales for Philips HTS in the shops of

Central Kolkata

250

200 191

PHILIPS

150 SAMSUNG

100 73 LG

50 OTHERS

110


Counter share for Philips HTS in Central Kolkata.

37%

SONY17%

SAMSUNG

44% LG

OTHERS

MARKET SHARE FOR PHILIPS HTS – 37%

60

69%

BELOW AVERAGE



EXCELLENT PRODUCT 0

GOOD PRODUCT 4

AVERAGE PRODUCT 9



EXCELLENT PRODUCT

GOOD PRODUCT

AVERAGE PRODUCT

31%

PRODUCT


69% of the dealers think that Philips HTS is a average product. Very less people thinks

that it’s a good product, only 31%.

61

PHILIPS

25%


COUNTERS:-


SONY 10

PHILIPS 19

SAMSUNG 4

LG 0

OTHERS 11

TOTAL 44

Comparative analysis of brands displayed in the shops of Central Kolkata

SONY

43%

SAMSUNG

23% LG

OTHERS

THE PERCENTAGE OF THE PHILIPS HTS DISPLAYED IN THE 17 MAJOR COUNTERS CENTRAL KOLKATA IS 43%.

In central Kolkata 43% of the dealers like to display Philips HTS in their shops. After that the major HTS they displays are the local players like, santosh, perx, oscar, Logitech, frontech, etc. only 23% of the total displays are from Sony’s.

62



DIRECT DISTRIBUTOR

SONY 6 3

PHILIPS 5 7

SAMSUNG 2 4

LG 0 2

OTHERS 0 5

Types of billing system the dealers and the distributors has in Central Kolkata.

8

7

6

5 DIRECT

4

DISTRIBUTOR

3

2

1

0SONY PHILIPS SAMSUNG LG OTHERS

OUT OF 17 SHOPS 5 OF THEM HAS DIRECT BILLIND SYSTEM AND 7 OF THEM HAS THEIR BILLING SYSTEM THROUGH DISTRIBUTORS.Though Sony has more nos of direct billing distributors but Philips has more nos of

dealers whose billing system done by distributors.

63

LOWER PRICE



FEATURES NOS OF CUSTOMERSDIVX, USB, HDMI 2

LOOKS 1


LOWER PRICE 3

NOS OF CUSTOMERS

12

10

8

6

NOS OF CUSTOMERS

4

2

0DIVX, USB, LOOKS MORE LOWER

HDMI SOUND PRICEOUTPUT


65% DIVX, USB, HDMI

LOOKS

MORE SOUND OUTPUT

12% 17%

6%

The first preference while buying a HTS goes to MSO (64%).

64% CUSTOMER GIVE PREFERENCE TOWARDS MORE SOUND OUTPUT.

64

40 PER MONTH33

SUBURBAN KOLKATA

The suburban Kolkata consist of North 24- Parganas, Howrah, Hooghly and South 24-

Parganas. From these districts I have visited counters from Hooghly, South 24-parganas

and North 24-Parganas. In this huge area, very few big counters are available, which kept

branded HTS.

TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE

SUBURNAN KOLKATA:-

Total number of consumer electronic outlet visited in Suburban area – 20.

BRANDS NOS SOLD PER MONTH

SONY 25

PHILIPS 33

SAMSUNG 3

LG 15

OTHERS 68

TOTAL 144

Avg sell for HTS in suburban area per month.

8070 68

60

50NOS SOLD

30 25

20

10

0SONY PHILIPS SAMSUNG LG OTHERS

65

23% 2%

Counter share for Philips HTS.

SONY

PHILIPS17% 11%

SAMSUNG

LG

47% OTHERS

THE TOTAL MARKET SHARE FOR PHILIPS HTS IN KOLKATA SUBURBAN AREA IS – 23%

The majority of the market is captured by the local players, 48%. Philips occupies only

23% of the total market in suburban area. Then comes Sony, which covers only a handful

of 17% market.

66

57%

43%

BELOW

AVERA

GE



EXCELLENT PRODUCT 0

GOOD PRODUCT 8

AVERAGE PRODUCT 6



EXCELLENT PRODUCT

GOOD PRODUCT

0% AVERAGE PRODUCT

0%

PRODUCT

57% OF THE DEALERS IN SUBURBAN AREA THINKS THAT PHILIPS HTS IS A GOOD PRODUCT.

57% of the suburban dealers think that Philips HTS is a good product, whereas 43%

thinks that it’s a average product.

67

SONY

14%

5% 29%


COUNTERS OF SUBURBAN AREA:-


SONY 3

PHILIPS 6

SAMSUNG 0

LG 1

OTHERS 11

TOTAL 21

Comparative analysis of brands displayed in the major countres of Kolkata suburban.

52%

PHILIPS

SAMSUNG

LG

0% OTHERS

THE PERCENTAGE OF THE PHILIPS HTS DISPLAYED IN THE 20 MAJOR COUNTERS IN KOLKATA SUBURBAN AREA IS 29%.

The 1st position is taken by the local players here, 52%. Then comes Philips with 29%.

The amount of Sony HTS displayed in the shops are only 14%.

68

6 DISTRIBUTOR



DIRECT DISTRIBUTOR

SONY 2 10

PHILIPS 4 14

SAMSUNG 0 2

LG 0 7

OTHERS 0 17

The types of billing system the dealers and the distributors has in Kolkata suburban.

18161412 DIRECT10

8

420


OUT OF 20 SHOPS IN KOLKATA SUBURBAN 2 OF THEM HAS DIRECT BILLING SYSTEM AND 14 OF THEM HAS THEIR BILLING SYSTEM THROUGH DISTRIBUTORS FOR PHILIPS.

69

15%




DIVX, USB, HDMI 3

LOOKS 0

MORE SOUND OUTPUT 6

LOWER PRICE 11

NOS OF CUSTOMERS

12

10

8

6 NOS OF CUSTOMERS

4

2

0DIVX, USB, LOOKS MORE LOWER

HDMI SOUND PRICEOUTPUT

Customer preferences while buying a HTS .

0%

30% DIVX, USB, HDMI

LOOKS

MORE SOUND55% OUTPUT

LOWER PRICE

55% OF THE CUSTOMERS WANTS LOWER PRICE FOR HTS.In suburban area 55% of the customers give 1st preference to LP.

70

CHAPTER – 5

(Findings)

71

FINDINGS

1) MARKET SHARE:

In North Kolkata Phillips is holding the 1st position in HTS segment with a counter

share of 43%.

In South Kolkata with 34% of total market share Philips is holding the 2nd position.

Whereas Sony is leading the market with the market share of 39%.

In East Kolkata Philips is again in the 2nd position with a market share of 34%. Here

also Sony is the market leader with a market share of 38%.

In Central Kolkata Philips is taking the 1st position with a market share of 37%

comparing to Sony, who has a market share of 17% only.

In Kolkata suburban Philips market share is only 23%, where as Sony has a market

share of 17% only. The major market has captured by the local players (48%).

2) POSITIONING:

46% of the dealers in North Kolkata think that Philips HTS is a good product.

63% of the dealers in South Kolkata think that Philips HTS is a good product.

55% of the dealers in East Kolkata think that Philips HTS is an average product.

69% of the dealers in Central Kolkata think that Philips HTS is an average product.

53% of the dealers in Suburban Kolkata think that Philips HTS is a good product.

3) VISIBILITY:-

In North Kolkata with 28% visibility in the shops, Philips HTS is in 2nd position

comparing to Sony HTS, whose visibility is 32% in the major counters of North

Kolkata.

In South Kolkata with 44% visibility in the shops, Philips HTS is in 1st position

comparing to Sony HTS, whose visibility is 27% in the major counters of South

Kolkata.

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In East Kolkata with 40% visibility in the shops, Philips HTS is in 1st position

comparing to Sony HTS, whose visibility is 20% in the major counters of East

Kolkata.

In Central Kolkata with 43% visibility in the shops, Philips HTS is in 1st position

comparing to Sony HTS, whose visibility is 23% in the major counters of Central

Kolkata.

In Suburban Kolkata with 29% visibility in the shops, Philips HTS is in 1st position

comparing to Sony HTS, whose visibility is 14% in the major counters of Suburban

Kolkata.

4) DISTRIBUTION:

The types of distribution are totally understandable by knowing that particular zones

market share of that company. Where the market share is high obviously there would

be more nos of direct and indirect billing system for that company with the dealers

and the distributors (reference from the chart).

5) CUSTOMER PREFERENCES WHILE BUYING A HTS:-

In North Kolkata 46% of the customer gives 1st preference to More Sound Output

(MSO) while buying a particular HTS.

In South Kolkata 57% of the customer gives 1st preference to More Sound Output


In East Kolkata 67% of the customer gives 1st preference to More Sound Output


In Central Kolkata 64% of the customer gives 1st preference to More Sound Output


In Suburban Kolkata 55% of the customer gives 1st preference to Lower Price (LP)

while buying a particular HTS.

73

CHAPTER – 6 (Recommendations

and Discussions)

74

RECOMMENDATIONS AND DISCUSSIONS

PROBLEMS:-

The major problem Phillips is facing regarding their very poor “After Sale Service”.

The dealers as well as the customers are complaining about Phillips’s ASS.

“Consumer awareness” is very less for Phillips product. Customer doesn’t know that

whether Phillips has that particular product or not.

“Pulsing” advertisement technique doesn’t helping Philips at all. Dealers as well as

the customer want more advertisement from Phillips. Because Phillips’s competitors

are more aware about giving advertisement and getting the customer.

When it comes about the “Quality”, customers, as well as the dealers are often

complaining about Phillips HTS3010 (entry level model), because it has less sound

output comparing to the Sony’s entry level model DAVDZ-20.

There is another complain the “in- shop demonstrators” are making that, in a price

segment of 12990/- Phillips HTS3105/07 is not giving the HDMI cable free of cost.

So the customer has to pay 1000/- bucks more to get that cable. Whereas Sony’s

DAV-DZ151KB and DAV-DZ150KB giving that HDMI cable free of cost. And off

course its sound output is more than Phillips. So the dealers and the ISP s are unable

to push Phillip’s product to the customers. Customers are taking Sony’s product in

home.

Another major drawback for Phillips is they lack proper “knowledgeable

demonstrator”, means those demonstrator who can go to the customer’s home and set

the product and convey important information about that product.

75

“Unbalanced supply” is another major problem for Phillips. Dealers often complain

about their improper supply.

RECOMMENDATIONS:-

Though Phillips is giving best “Landing” to the dealers, that’s why they are been

able to push their product, but still Phillips can start a “Commission System” to

the dealers and the distributors.

This “Commission System” is- The major dealers and the distributors to whom

Phillips is making direct billing they can offer those distributors some extra

commission. Means push those distributors a bit extra so that they refer those sub

dealers to take Phillips in a certain amount, against it they will be getting a

healthy commission from the company itself.

Phillips has to give more advertisement to gain the consumer awareness.

“After sale service” has to be in a proper and methodical way. And ASS has to

prompt.

In that 12990/- segment Phillips has to give the HDMI cable free to compete with

Sony.

There is some problem lies with some of the dealers and the company itself.

Those dealers are some of the major dealers in Kolkata. So if the company can

patch up with those dealers then they can push their product to them, and can

always expect some extra sale.

Comparing to sound quality with Sony, Phillips is more “Vocal based”, where as

Sony is more “bass based”. But now a day’s customer wants the bass effect more,

so that’s why company is unable to overcome Sony in some region.

76

Phillips can arrange some session for the ISP’s to test their product knowledge.

Otherwise some of the ISP’s are unable to manage some high profile customers.

If Phillips can reduce their price below 6500/- they will be the nos 1 brand in

home theatre system in all over West Bengal. Because there is a huge market is

lying in that price sector. A large no of local players are operating in that circle.

But if Phillips can reduce their price then they can tap that market definitely,

because the brand name will matter then.

77

CHAPTER – 7

(Bibliography)

78

BIBLIOGRAPHY

TV Veopar journal

www.consumer-voice.org/editorspeak

Business week

Research and summary Cris Infac

Crisil research group journals

www.businessline.com

www.edn.com

www.nationalgeographic.com

www.wikipedia.org

www.philips.com

www.p4c.philips.com

www.consumer.philips.com

www.datamonitor.com

www.sonyindia.com

79

http://www.consumer-voice.org/editorspeak



























http://www.businessline.com/














http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.edn.com/

http://www.nationalgeographic.com/


















http://www.wikipedia.org/




















http://www.p4c.philips.com/












http://www.consumer.philips.com/

















http://www.datamonitor.com/















http://www.sonyindia.com/












QUESTIONARE

Name of the dealer- ……………………………………. Contact No & Address: ………………………………….

1) What are the brands you are dealing with?Sony Philips Samsung LG Videocon Others.

If others, please specify - ………………………..

2) Do you have Philips “Home Theatre System”?

Yes. No.

3) What is your perception about Philips’s home theatre in comparison to the

competition?

It’s an excellent product. It’s a good product.It’s an average product.It’s a below average product.

4) How many home theatres from the following brands you are selling from your shop right now (average counter potential)?

Philips. Sony. Samsung. LG. Videocon

5) What are the counter shares for the following brands?

Philips Sony. Samsung. LG. Videocon. Others

80

6) How many home theaters you are displaying form the each of the following brands?

Philips. Sony LG

Samsung. Videocon. Others

7) What type of distribution (billing) do you have for home theater systems among the following brands?

Philips : (Direct / Dist) Sony : (Direct / Dist) LG : (Direct / Dist) Samsung : (Direct / Dist) Videocon : (Direct / Dist) Others : (Direct/ Dist)

8) Which one of the following marketing communication activities done by Philips you are happy with?

Brand Corner Advertisement Sales promotion

In shop demonstration

Others

9) For what reason you want to sell home theaters?

MarginAfter sales serviceBrand PullOthers

10) What are the features in the entry level segment in home theatre system customer wants?

DivxUSB – port

HDMI Others

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11) What are the things customer gives preference while buying a particular HTS?Lower priceAdded features like USB/ Divx / HDMI LooksMore sound outputOthers

82