Phillips PROJECT

Acknowledgement

At the first moment thanks to Almighty Allah for special blessings in completing the project. We are indebted to a number of persons for their advices, suggestions, directions and cooperation that has enabled us to prepare this project. First of all thank from the core of our heart to prof.Hanif shahzad who helped us in every step about our project by giving proper guidance, advice and inspiration.

Than I would take this opportunity to thank Sir Hanif, our teacher for the course of marketing the National University of Modern Languages, for his valuable support and encouragement which he has offered. His words of wisdom will always be remembered, and I am convinced that the knowledge of marketing that he has imparted would go a long way in making good managers and helping us all through our professional career.

Not but the least thank goes to our friends for endless help in collecting the information from some related web sites. Thanks all of you for providing help in developing the project.

Thanks a lot!













Executive Summary

This course helped us to implement our theoretical knowledge in our project. In this project we tried our level best to incorporate all the information and data that we have learned throughout this semester. So here we have covered the main activities that we have done. This project is prepared on the basis of one multinational company which is Philips. In this project we discussed about company brand, product lines, price strategy, placement and promotion. Beside that we also focus on the target market and the positioning as well.
























Table of Content

Chapter 1: Introduction
1.1: Vision, Mission, Slogan and Logo
1.1.1: world wide scope
1.1.2: Pakistan scope
1.2: Philips Products
Chapter 2: Customer, design marketing strategy 2.1: Marketing Strategies
2.1.1: Target market analysis
2.2: Marketing mix strategy
2.2.1: Product strategy
2.2.2: Pricing Strategy
2.2.3: Distribution Strategy
2.2.4: Promotion Strategy
2.3: POSITIONING STRATEG
2.3.1: Target market
3.2.1: Current marketing objectives and performance
Chapter 3: Analysis and Recommendations
3.1: SWOT Analysis
3.1.1: Strength
3.1.2: Weakness
3.1.3: Opportunities
3.1.4: Threats
3.2: Performance analysis
3.3: Competitors of Philips
3.4: Company shares
3.5: Conclusion
3.6: Reference



Chapter No 1
Introduction





1.1: Vision, Mission, Slogan and Logo

1.1.1: world wide scope
1.1.2: Pakistan scope

1.2: Philips Products









INTRODUCTION

The focus of this project is basically to analyze the different management functions at Coca cola beverages Pakistan limited Karachi. These functions include market mix of Philips Company which is all about Product, Price, Placement and Promotion. We also discuss their Target market and Positioning as well. Lastly we discussed the conclusion in which we discussed the market share, and competitors of Philips.

Vision

In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.

Mission

Philips has reinvented itself many times, but through it all our core, the soul of our company, remained intact. That is because it was part of our company since its inception in 1891.
"Improve the quality of people’s lives through timely introduction of meaningful innovations“

Philips slogan

“Philips sense and simplicity”


Philips logo





1.1.1: world wide scope

Philips is a electronics company. It is a Royal Philips Electronics Inc.it’s real name is Koninklijke Philips Electronics NVit’s a multi-national Delta electronics corporation.
Philips is one of the largest electronics companies in the world. In2009. Philips is organized in a number of Sector. Philips Consumer Lifestyle formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care. The company was founded in 1891 by Gerard Philips, a maternal Cousin of Karl Marx, in Eindhoven, the Netherlands.
On 11 March 1927 Went Philips on the air with a station called PCJ, now known as Radio Netherlands Worldwide. It was broadcast two the Delta East Indies.Wed 9 May 1940, the Philips directors were informed about the Germantown invasion of the Netherlands two take place the Following Day. They decided two leave the country and two flee the United States, taking a large amount of the company capital with restriction.
After the war the company was Moved back to the Netherlands, with Their headquarters in Eindhoven. There is little Philips Could Have done two Prevent the Germans from abusing Their production facilities and forcing Their Employees to perform slave labor hum the Occupation. In 1972 Philips Launched the world’s first home video cassette recorder, the N1500 with bulky video cassette That Could record 30 minutes or 4 minutes. Later one-hour tapes were Also Offered.
Main articles of philips are Compact Cassette, Laserdisc, Compact Disc, DVD, and Blu-ray.Philips HAD Early Developments of a laser disk for selling movies Delayed but its commercial launch for fear of cannibalizing its video recorder sales.

1.1.2: Pakistan scope
“A world of Products and Services that will excite you and are designed with our company wide credo of "Let's make things better" in mind. After fifty five years of operations in Pakistan, Philips has grown into one of the leading companies involved in Consumer and Professional Lighting, Electronic Goods and Domestic Appliance Products, employing over 382 Pakistanis. Of the 146 million people living in the country, most know our name quite well. In the early years beginning 1948, Philips began its operations here in Pakistan dealing with only a few consumer domestic products that is Light Bulbs and Radio. An apt beginning, the Light Bulb and radio paved the way to an even brighter future for Philips in Pakistan. Today Philips Pakistan has come full cycle. It business operation has spearheaded further to include, local assembly and manufacturing of Electrical and Electronic Products. It is evident that the company has achieved a recognizable status as a major Business Unit of Electronic Products and a net contributor to the Pakistan Economy.
Philips Pakistan a company of turnover reaching Rs. 3.0 Billion in 2001 with a work force of 382 people is one of the prestigious companies in the country, which has been awarded "Best Twenty Five Companies Award" from Karachi Stock Exchange on a number of occasions. Philips Pakistan is indeed dedicated to living up to the company's global philosophy of "Let's Make Things












1.2: Philips Products
Philips Brands and Product lines
Medical systems products
Healthcare Informatics
I Site PACS
View Forum
Xcelera
Imaging Systems
Cardio/Vascular X-Ray
Computed Tomography (CT)
Fluoroscopy
Nuclear Medicine
PET (Positron Emission Tomography)
PET/CT
Radiography
Radiation Oncology Systems roots
Ultrasound
Defibrillators
Equipment
Software
Accessories [edit] Diagnostic Monitorin
Diagnostic ECG
Patient Monitoring
Multi-Measurement Servers
Anesthetic Gas Monitoring
Blood Pressure
Neurophedeoiles
Pulse Oximetry
Temperature
Transcutaneous Gases
Ventilation
Clinical Information Systems (OB Trace Vue, Compu Record, Care Vue Chart)







Chapter No 2

Customer, design marketing strategy


2.1: Marketing Strategies

2.1.1: Target market analysis

2.2: Marketing mix strategy

2.2.1: Product strategy
2.2.2: Pricing Strategy
2.2.3: Distribution Strategy
2.2.4: Promotion Strategy

2.3: POSITIONING STRATEG

2.3.1: Target market
3.2.1: Current marketing objectives and performance



Customer, design marketing strategy

2.1: Marketing Strategies

2.1.1: Target market analysis

Because of Italy’s declining growth rate, Philips should target the people living in the major cities of the north and the central region of Italy where there is greater wealth. These cities are considered the more industrial cities of Italy, hence they will have the largest workforce and so citizens that have more income. In addition, because these cities are more industrialized, they will tend to have citizens who suffer from higher levels of stress, which in turn leads to sleeping difficulties.
With regards to age, PHILIPS should target the largest age demographic groups, that is to say the 25-44 year old group and the 45-64 year old group. These segments will have the highest income, the most wealth, the most disposable income to spend on personal care products and non-food products (Appendix 4). In the result, the total value of the whole Italian market with all age groups can be estimated at 1.3 billion EUR. The target market with the 25-44 year old group and the 45-64 year old group in the North and Central Italy can be estimated approximately at 510 million EUR (Appendix 5). In addition, PHILIPS can look at future potential market, the hospitals, which may be willing to purchase this medical device.
Finally, men and women that are opposed to using medication in order to improve sleeping habits; people that look to more natural ways of improving sleeping patterns; people who are educated enough to understand the way the lamp improves hormones levels in order to improve sleep; these are the types of people that Philips should aim to sell their lamp to.

2.2: Marketing mix strategy

Marketing mix of Wake-up Light



2.2.1: Product strategy

The product is branded as a Wake-up Light. The name differentiates from already existing lamps in this segment in the US or Canada, which chose names such as ‘sunrise alarm clock’ or ‘progressive alarm clock’. The strategy, clearly, aims to position PHILIPS as the first in the segment of wake-up lights, although sunrise alarm clocks perform similar or the same function.
The Wake-up Light is already available in France and Germany with a further rollout expected in other European countries. The device is offered as two models; basic-HF 3451/01 and premium model (HF 3461/01)) with more natural sounds and with a digital FM radio. Wake-up sounds are available such as friendly wake-up beep, 3 natural sounds (morning birds, seashore, and pond) or your favorite radio station. The user can also mute the sound immediately. The device has proven health benefits, as certified by the Medical Device Directive (MDD).

2.2.2: Pricing Strategy

PHILIPS follows the practice of ‘price skimming’ in the French and German markets. It involves charging a relatively high price for a short time where this innovative and much-improved product from other lamps already available in countries such as the US and Canada is launched onto a market.
As a consequence, with skimming strategy in Italy, the company will skim off customers who are willing to pay more to have the product sooner; prices are expected to be lowered later when demand from the early adopters falls.
Retail price in France and Germany is positioned at €89 for the basic model and €129 for the premium model, offering additional features. Italian market should adopt the same price level as in the first rollout countries. This will enable PHILIPS to meet company’s expectations to achieve on average 10-12% margin on its lighting products.
Interestingly, the internet shop such as Amazon.com sells already reduced PHILIPS’ products HF 3451/01, the basic model, for € 69.99 and PHILIPS HF 3461/01, the premium model, for €99.99. It shows that the high price for early adopters can be sustained for about 6 -8 months after the introduction.

2.2.3: Distribution Strategy

In Italy the distribution sectors of electrical appliances are facing significant changes. Specialist retailers have represented the main channel of distribution for electrical goods, resulting in a control of more than two thirds of the market in 2005 (Table 5). The hypermarket sector has however been growing fast in Italy and is expected to increase its market share in the smaller electrical appliance sector. This rather new channel must therefore also be considered when distributing the wake-up lamp, giving the opportunity to be close to the customers on a near daily basis. Though, this is a trade-off as the more common image of hypermarkets could be transferred to the product, reducing its exclusivity. The figure below highlights the distribution structure in the electrical product industry in Italy.
Italy: Electrical goods, estimated sales by channel of distribution, 2005
€bn (excl. sales tax) %
Electrical specialists 9.8 67.0
Computer specialists 1.5 10.3
Food retailers 1.2 8.2
Furniture retailers 0.8 5.5
Photographic specialists 0.6 4.1
DIY retailers 0.4 2.7
Others 0.3 2.1
All electrical spending 14.6 100
PHILIPS, being the number one brand in category of the smaller electrical appliances, has already an established distribution network. This is strength because experience, relations and knowledge of the process make them more efficient and increase their power as a manufacturer.
The Italian electrical sector has traditionally been comprised of small retail outlets, but the growth and entering of major European (multiples) retailers has started to change the structure of this market, with a tendency towards larger formats. This trend is driven by the reform “Bersani Law” from 1998 which removed a lot of the protection that the smaller retailers had against the establishment of larger groups. In addition, the reform has led to a domestic consolidation where extensive buying groups, characterized by collaborative buying and common marketing strategies, are dominating. Many domestic businesses now operate under one of the four major buying groups. The foreign multiples such as Media-Saturn and DSG International have however given the buying groups, such as Expert, Euronics, and ElectronicPartner strong competition the recent years. In addition, the foreign entrant Fnac is a player that must be considered as they have gained market share in the latest years. Nevertheless, the key channels involved are Buying Groups (as Euronics), Chains (as Mediamarket) and PHILIPS should introduce the lamp also in the Rinascente, department store.
In the introduction phase of this product, PHILIPS should focus on a penetration of the market based on distribution in all the main electronic retailer chains, both the buying groups and foreign multiples. Due to the skimming pricing strategy, PHILIPS should not distribute the wake-up lamp in hypermarkets in the in the introduction phase, though this channel is highly attractive when the sales move into the shake-out and mature phases.

2.2.4: Promotion Strategy

PHILIPS should try to use multi-channel marketing and strategically coordinate the messages and media used. All the various communication and communication media have to be evaluated as a whole to establish the desired knowledge of the product at the lowest cost. For instance, the same sound effects can be used across different media; a radio jingle can serve as a reminder of a TV ad with the same sound effects. The same goes for visuals, a print advertisement/billboard can serve as a reminder of a TV ad with the same graphics/visuals.
Communicating through several media results in various learning/coding of the information communicated. Thus, the consumer will have more paths for information retrieval, and therefore a better chance of recalling information.
Brand awareness is often the point of ad campaigns, such as TV-ads. However, the links between the brand and the uniqueness and advantages (associations) are often limited. To establish these links, ad retrieval cues can be used at the point of purchase. These cues can be on the product itself, in the store (posters etc) or on the website. The various media and forms of communication must support each other and be complimentary.
Possible promotion channels
1 In-store demonstrations
2 Subway-ads – 1 000 0000 possible viewings each day in Milan.
3 National TV (avoiding music channels because the audience is not consistent with Philips’s light target market)
4 Local TV
5 Newspapers
6 Lifestyle-Health Magazines - reach the target group of health-conscious consumers
7 Billboard campaigns - fronting PHILIPS brand with an innovative product
8 PR: People are generally more skeptical when they know they are being advertised to, try to get news media coverage, focus on the health aspects.
9 Internet (for ex. banner top on eBay.it)
The product launch is in October 2007. The promotion in the introduction phase should be aimed at the innovators and early adaptors. The budget is estimated at 0.765 million EUR (Appendix 5). The 5 month press campaign is estimated at 0.25 million. The rest of the budget accounts on TV-ads, radio and the Internet (Appendix 9).
The marketing communication seeks to build awareness of the product and to educate potential customers about the product. Therefore, the promotion in the time prior to the launch should be focused on getting press coverage. Not paid-for advertising has a much higher credibility than paid-for advertising, and will resonate better with the kind of people we are trying to reach. Trying to get coverage in life-style magazines, health-magazines, technological magazines and blogs is the focus of the communication campaign in August and September and October. TV-ads will be focused in December, before the Christmas sale, more aimed at the mass market.
On the website, from December 2007 until May 2008, PHILIPS should have a 30-day free trial period with money-back guarantee offered to all the people who would like to test the Wake-Up Lamp. In addition, PHILIPS should have a promotional game, where people could win their own PHILIPS Wake-Up Lamp. The game would run for a limited time only. Consumers would have to register their email and create a password in order to start. Players would play for points and the people with the highest points would get the chance to win a new Wake-Up Lamp. This would be launched in October as well and would run for a limited time.



2.3: POSITIONING STRATEGY

2.3.1: Target market

The human body is accustomed to the rhythms of the sun. Therefore simulating its dawn is actually highly beneficial for many people who suffer from sleeping disorders. The PHILIPS Wake-Up Lamp can be used by a wide variety of people. From those who have difficulties falling asleep, to those who have trouble waking up, and even to those who are affected by Seasonal Affective Disorder, the Wake-Up Lamp can be valuable for a large demographical target.
Italy’s population has been growing at a steady rate in the last few years but at a much lower rate than other countries such as France and Spain. Below is a table of the population in 2003 by age and sex that indicates the dominance of the older age groups.
Table 2: Italy: Population, by age group and sex, 2003 in (‘000)
Age (years) Males Females Total % of total
0-14 4,237 4,006 8,243 14.2
15-24 3,196 3,066 6,262 10.8
25-44 8,910 8,826 17,735 30.6
45-64 7,189 7,491 14,680 25.4
65+ 4,537 6,432 10,968 18.9

Total 28,069 29,820 57,888 100.0
From this data, it is clear that the largest age demographic groups are the 25-44 year old group and the 45-64 year old group. In terms of geography, the most prosperous regions are the Lombardia region and Lazio region.
In Italy, spending is increasing in discretionary areas such as personal care. In fact, consumers are seeking new and easier ways to achieve a healthy lifestyle. More fundamental categories, such as housing, water, energy and food, continue to account for the largest shares of spending.
Considering all these factors, the ideal target will be the men and women who work and have a relatively mid-range to high incomes, who live in city centers of the north east part of Italy, who are able to afford the PHILIPS Wake-Up Lamp. The ideal target will also be the men and women who understand the importance of sleep, the people who spend money in order to remain healthy and to increase the health of their mind and body. In fact, one of the targets may be parents. Once realizing the benefits they obtain from using the Wake-Up Lamp, they may use it on their children and suggest it to others. Women seem to experience more problems with sleep and it may be more advantageous for PHILIPS to target women, however, the benefits of using the Wake-Up Lamp should be directed to both men and women. The men and women who are more educated with regards to the benefits of sleep and it repercussions on one’s health are definitely the type of people that PHILIPS should focus on. Men and women that are opposed to using medication in order to improve sleeping habits; people that look to more natural ways of improving sleeping patterns, people who are educated enough to understand the way the lamp improves hormones levels in order to improve sleep; these are the types of people that PHILIPS should aim to sell their lamp to.

3.2.1: Current marketing objectives and performance

PHILIPS wants to be market leader producing premium-price products, with high quality and design; it tries to build enter blocks to the market keeping on with its continuous product and process innovation.
Increase the number of potential users
People are changing the definition of well-being to move beyond money, career and materialism towards quality of life, strongly linked with the spirituality and the environment, be it the natural, the physical, the social or the cultural one.
PHILIPS continuously adopts a human-focused exploration and implementation of technological innovation, the main means of simplifying and enriching people’s life. So the company has the resources, the knowledge and the credibility to solve the task of improves quality of life.
Brand equity and brand awareness
PHILIPS is one of the biggest international company and they frequently communicate that technology exists to make life easier and more prolific. Surely this product is consistent with PHILIPS’ mantra sense and simplicity: the company, since far past, has been delivering new, relevant and easy to experience benefits of technology, trying to improve people’s life.
Corporate social responsibility and brand reputation
PHILIPS is in a very good position to develop a sustainable brand and business, and to link the brand to the sustainability challenge of improving people’s quality of life. Until now, PHILIPS’ promise has only partially covered the personal sustainability dimension: simplifying people’s lives through 'easy-to-use' devices. There is room for growth and this one area where PHILIPS will focus on.































Chapter No 3

Analysis and Recommendations


3.1: SWOT Analysis

3.1.1: Strength
3.1.2: Weakness
3.1.3: Opportunities
3.1.4: Threats

3.2: Performance analysis

3.3: Competitors of Philips

3.4: Company shares

3.5: Recommendation

3.6: Conclusion

3.6: Reference




Analysis and Recommendations

3.1: SWOT Analysis

3.1.1: Strength

PHILIPS is a strong global brand with over 100 years of lighting expertise and has achieved a high level of recognition among consumers worldwide, with increasing levels of consumer awareness. They are considered to be the number one manufacturer of small electrical appliances. With regards to the Wake-Up Light, there do not exist any direct competitors, as there are no established products with similar features in the market. PHILIPS is a very knowledgeable company and has experience with launching new products, pricing, marketing, testing, production and service. A strength that may be of importance in the future with increased competition is that the restructuring of PHILIPS has made it more competitive and less sensitive to price competition.
In addition to all these strengths, PHILIPS has a well established distribution network; they already use a broad range of distribution routes, e.g. mass merchants such as hypermarkets and discount outlets, as well as specialist chains, department stores and mail-order companies.
In October 2006, PHILIPS launched the Wake-Up Light in France. Therefore, they have had experience related to this product within similar markets. They know how to increase sales and how to deal with the European market with regards to the Wake-Up Lamp. Another with regards to the Wake-Up Lamp is the fact that it is in tune with the increased focus and consumer spending on products focusing on quality of life.

3.1.2: Weakness

In recent years, PHILIPS has been in a relatively weak financial position, operating on low margins (though these improved slightly in 2005 as a result of restructuring efforts) and high debt levels. The company may be forced to reduce its expenditure on research and development in the face of rising costs and low margins, which has historically been its key to success.
Another weakness may be the unwillingness to adopt the Wake-Up Light as another alternative to an alarm clock. People may be skeptical to spend money on such a product.

3.1.3: Opportunities

A growth in sales within the electrical retailing is expected to occur in the coming years. The high price competition is, however, reducing the speed of growth. Today’s strong focus on health, quality of life, and sleep as an important contribution to better health favor the introduction of this product. In addition, Italians, due to their sleeping habits, favor the sale of this product; Italians have a tendency to cover their windows with heavy shutters during the night to prevent noise and street lights from disturbing their sleep. There is no natural light that can enter the room in the morning to allow for the body to naturally awake. There is therefore good potential for the PHILIPS Wake-Up Light.
Currently, there exist no products with similar features as PHILIPS’ Wake-Up Light in the Italian market. The attractive segments are those with highly concentrated population such as the Lombardia, Campania and Lazio regions. In addition, Lombardia is perhaps the most prosperous of the three with GDP per capita 30% higher than the rest of the country. This makes the marketing effort more efficient and more target oriented.
In terms of threats, there always exists uncertainty when a new product is launched in a new market. There are also high costs associated with the launching new products; customer training, marketing and many more. Moreover, other companies may follow suit and compete against PHILIPS.
With regards the technological aspect, resistance for new technological products increases as consumers’ age increases. Older people may be skeptical to try this new product. Furthermore, Italians have a lower average level of disposable income than other European countries, which may reduce the attractivity of this market in comparison to others.
Another point to consider is the growth of foreign-owned electrical chains and a strong consolidation between the retailers which would reduce profit margins in the sector. The electrical goods sector is expected to continue to under perform in relation to all retail sales in the following years. Falling consumer demand and rising competition have been pushing prices down in the electrical sector. The company may be forced to reduce its expenditure on research and development in the face of rising costs and lower margins, which has historically been its key to success. A reduction has already been seen in terms of proportion of sales.

3.1.4: Threats

Another threat is with regards to cellular phones. In today’s day and age, most people have one if not more mobile phones. These are equipped with several functions, including an alarm function. Therefore, mobile phones will increase the price sensitivity for wake-up products, as people may not be willing to justify additional costs for a function they currently have access to.
Lastly, the presence of persons with SAD and other light related diseases are almost non-existent in the southern part of Europe as the light conditions are more stable than in the more northern parts of Europe. This could limit sales of the Wake-Up Light.

3.2: Performance analysis

Koninklijke PHILIPS Electronics NV: Key Facts
Name Details
Company name & status: Koninklijke PHILIPS Electronics NV
Headquarters: Netherlands
Sector involvement (2005): Small electrical appliances
Region involvement (2005): Western Europe, Eastern Europe, North America, Latin America, Asia Pacific, Australasia, Africa and Middle East
Source: Euromonitor International from company reports.
Koninklijke (Royal) PHILIPS Electronics is one of the world’s leading consumer electronics manufacturers, producing a wide range of products, including medical equipment, consumer electronics and domestic appliances. Koninklijke PHILIPS Electronics NV is the parent company of the PHILIPS Group, commonly called PHILIPS, and is listed on the stock markets of Euronext Amsterdam and the New York Stock Exchange.
PHILIPS’ largest divisions are Consumer Electronics sales and Medical Systems with 34% and 20.7% of total sales respectively (Appendix 2). DAP represents one of its smallest divisions, accounting for just 7.2% of total sales in 2005.
Because the Wake-Up Light combines experience from lighting and electronics technology, consumers can associate the product’s excellence and expertise from two of its divisions; PHILIPS Consumer Electronics and PHILIPS Lighting.
PHILIPS SpA, the Italian subsidiary of Koninklijke PHILIPS Electronics NV was one of the top brands in the Italian consumer electronics market during 2003 In terms of volume sales performance, Samsung experienced the best performance, achieving volume growth of 13% between 2002 and 2003, giving Samsung 9% of Italian consumer electronics retail volumes in 2003. Samsung proved the best consumer electronics performer between 2002 and 2003 due to its competitive price positioning. Meanwhile Sony and PHILIPS retained their positions as the leading brands. However, their performance has been more subdued than lower priced rivals such as Samsung. PHILIPS lost 0.5 percentage points over the same period as a result of greater competition from more price competitive brands.

3.3: Competitors of Philips

MARKEPhilips's competitors include General Electric Company (GE), Sony (SNE), Siemens AG (SI), and Matsushita Electric Industrial Company (MC). Philips is #1 in both light bulbs and male electric shaving. The firm's two largest competitors (annual revenues of over $100 billion), GE and Siemens, compete primarily in Medical Systems and Lighting. Sony is a force to be reckoned with in Consumer Electronics. Matsushita Electric Industrial Company is probably the company's most direct competitor, challenging Philips in nearly every segment except Medical Systems
As Philips reshapes itself into a medical device, technology, and personal-care company, it will have to overcome dominant market presence by Siemens and GE. Additionally, the firm will have to maintain its position in Consumer Electronics against Sony and Matsushita Electric Industrial Company. In lighting, Philips will have to fend off nearly all of its competitors to maintain the #1 position.


2006
2006
2005
2005

Revenue
Profit
Revenue
Profit
General Electric Company (GE)
$163
$21
$148
$17
Siemens AG (SI)
$120
$4
$104
$3
Matsushita Electric Industrial Company (MC)
$74
$2
$73
$1
Sony (SNE)
$68
$1
$61
$1
Philips
$37
$7
$36
$4







Note: Figures based on July 20th, 2007, exchange rates.

3.4: Company shares

Consumer Electronics Company Shares 2002-2003 (% retail volume)

Company 2002 2003
Sony Italia SpA 21.2 20.9
PHILIPS SpA 18.1 17.6
Samsung Electronics Italia SpA 7.6 8.5
Pioneer Electronics Italia SpA 3.9 3.8
Canon Italia SpA 1.8 2.3
Kenwood Corp 1.8 1.6
JVC Professional Europe Ltd 0.8 0.7
Casio Computer Co Ltd 0.3 0.6
Clarion Co Ltd 0.3 0.4
Panasonic Italia SpA 0.3 0.2
Hewlett-Packard Italiana SpA 0.1 0.2
Others 43.7 43.1
Total SA 100.0 100.0
Sales of consumer electronic products in Italy are projected to continue growing rapidly, with the largest gains in sales likely to come from new product developments.
Furthermore, PHILIPS is No.1 in the global lighting market, including Italian, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Lighting division consists of the following businesses: Lamps, Luminaires, Lighting Electronics, Automotive Lighting, Special Lighting Applications, Solid-State Lighting Modules and Lumileds.
Full-year sales at Lighting grew by 8% on a comparable basis and 14% in nominal terms.
3.5: Recommendations
I would suggest some recommendations to Philips to adopt more successful operation in Pakistan.
· Drive consistent and cost-effective learning standards across whole Philips Lighting.
· Develop effective learning and development strategies to achieve business goals. Make recommendations for improvement to learning process, design and implementation to better meet Lighting learning strategy
· Apply latest Lighting development trends and learning expertise to design effective learning and development activities to achieve business outcomes
· Prepare and launch a communications plan to involve and excite learning practitioners, business and HR leaders.
· Consider culture and behavior changes required among learning practitioners, leaders and learners to achieve learning strategies.
· A Philips launch beautiful lamp that shines in all colors of the rainbow. Create the mood in your house you want.
3.6: Conclusion
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 29 billion in 2003. It is a global leader in colour television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. The electronic industry of Pakistan consists of a few producers in the industry. The demand for this product is very much vulnerable in terms of pricing. Philips is providing electronic appliances at a price which is affordable to most of the people in the country. As a multinational company Philips Pakistan with heavy promotional activities, has been able to penetrate the market. With different electronic appliances, different sizes, international standard and high quality design, as a product, Philips has been highly successful over the years. Its distribution process is highly efficient It promotional activities. Overall with its marketing activities Philips has been a successful brand.

3.7: Reference

v http://www.lighting.philips.com.pk/v2/index.jsp
v http://www.usa.philips.com/
v http://en.wikipedia.org/wiki/Philips_Lumileds_Lighting_Company

v http://www.philips.com/shared/assets/Investor_relations/pdf/corporategovernance/Agenda2010-EN.pdf
v http://www.energy.ca.gov/appliances/2008rulemaking/documents/2008-01-15_workshop/presentations/Erhardt_Robert_Philips_Lighting_Recommendation.PDF
v http://www.linkedin.com/jobs?viewJob=&jobId=943215
v http://www.energy.ca.gov/appliances/2008rulemaking/documents/2008-01-15_workshop/presentations/Erhardt_Robert_Philips_Lighting_Recommendation.PDF