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BLUE PRINT_ FINAL ROUND_2012_ case study competition by PHILIPS India
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BLUE PRINT_ FINAL ROUND_2012_ case study competition by PHILIPS India

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Blue Print_Final Round_Strategy Case study

Blue Print_Final Round_Strategy Case study
competition by PHILIPS, India

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  • As philips already caters sleep disorders thrreperonics, so while extending its offering in comfort sleeping they can leverage on their present R&D & existing sleep labs.
  • Segment wise analysis of products, pain pointsPotential segments for future line extensionsAlso we have identified and will discuss possible geographic scalability
  • R&D forms crux of any new product developmntThrough Innovative research & engn team R&D for advanced technologies like TMS, brainwave , REM – USNext is PDBy understcustreq, comp benchmark and patent issues PDesign has to be made and tested to come up with a successful working model.Getting regulatory approvals is very imp part. manufacturers of medical devices can leverage their approvals in the US, Europe,(like FDA) register their medical devices in India thru MoHW, DCG. Also ISO and Gold standards can improve the product acceptability.
  • To make commercial scale pdn proper assembly plant in India is established. Important decisions like plant location, layout, labor force, supplier selection, inventory and logistics has to be takenMerketing strategy Sleep products being very niche, dist channel can be online and offline specialty stores.Any business can be successful only when they have right strategic alliances.Some alliances that philips should look into are
  • Scalability in health and wellness segment can be achieved thru comfort sleep aids. This will reposition consumer lifestyle towards health & well being.Also will target growth geographies like asia and africa
  • Based on mkt trend and growth rate we have identified future line extension of the business.Based on acceptance of current pdts, decision on these on can be made.Some attractive products include REM mapper -> brain wave optimization Cooling belt for womenInfant monitoring suits
  • Moving on to geographic scalability, every product need localization according to specific country. New product line also can be added to the portfolio for country specific problems.These countries look attractive for future growth opportunities
  • We ensure our sleep business is sustainable considering these parameters. Lets look into one. Product sustainability. This can be achieved by continuous innovation and thru differentiation. Along with these mentioned parameters, We also look into eco sustainability This business sustainability has to be in line with Philips Ecovision5green sales, green innovation and green oprn by concentrating on - - - -

BLUE PRINT_ FINAL ROUND_2012_ case study competition by PHILIPS India BLUE PRINT_ FINAL ROUND_2012_ case study competition by PHILIPS India Presentation Transcript

  • Introduction to Idea Consumer Research Product Portfolio Plan of Action Financial Planning Scalability & Sustainability Market Risk Agenda Debi Prasad Dash, Senthil Kumar, alok Sharma, Shikha Nautiyal TEAM NAME: 3 MEN & A BABY, SCMHRD Sleep Study
  • Need for Consumer Lifestyle Driven Sleep Solutions Blueprint-Philips| Innovate - Strategize - WinSource : Philips Sleep Survey MARKET GAP Why are people sleep deprived? What are the market offerings? Most of the problems are Lifestyle related only few are medical in nature 93 % of Indians are sleep deprived getting < 8 hours of sleep/day. Sleep devices- CPAP machines Deals with: Sleep Apnea , Chronic obstructive pulmonary disease (COPD) and asthma. Snoring Relievers- Oral Appliances & dentures Sleep labs Expected to grow $9.2 billion in 2014 5-year CAGR of 6.5% No sleeping aids/ equipment for:  Irregular sleeping patterns  Lifestyle related insomnia  Biological state like pregnancy etc. 5-7 % People are suffering from sleep apnea 30+ % People are suffering from Insomnia 93% Of Indians are Sleep Deprived ? Why are we are not capturing the bigger market Introduction to Idea Synergy with Philips Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • •Striving to make the world healthier and more sustainable through innovation •World’s 41st most valuable brand 2011: USD 8.7 billion •Employee Engagement Index >70% | Loyal customer base in 100+ countries •Innovation capabilities - Technology, know-how, strong IP positions (53,000 registered patents) •Current portfolio is 65% B2B •Strengthens the network of medical professionals SUSTAINABILITY OF COMPETITIVE ADVANTAGE HEALTH & WELL BEING BRAND SYNERGY INNOVATION IN CREATING NON- INVASIVE SOLUTIONS DIFFERENTIATION POTENTIAL TECHNOLOGY DRIVEN Blueprint-Philips| Innovate - Strategize - WinSource : http://acuitaspartners.com/press_release/sleep-care-philips/ CURRENT ACTIVITY WHERE IT CAN BE LEVERAGED HOW IT CAN BE LEVERAGED Sleep Labs Sleep studies to identify which technologies can be used Treat as a research facility for validation of prototypes Philips Respironics Extending to sleep management, respiratory care and non-invasive ventilation Using resources as the Global Leader in treating OSA to develop solutions for lateral needs Sleep Care Solutions Diagnosis- Clinical research – Educating customer Awareness creation about options and preventive care packages Untapped Market Estimated Market Size Enter Wellness Sector Piggyback existent distribution Create distribution for consumer products How can Comfort Sleep Solutions benefit Philips Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint Synergy With Philips
  • Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint Blueprint-Philips| Innovate - Strategize - WinSource : Primary research Research Methodology 85 75 44 24 0 10 20 30 40 50 60 70 80 90 Pelvic region pain Leg cramps Neck Pain Nasal Congestions Rate the level of discomfort during pregnancy 92% 8% Does your new-born prolonged awakening period at night affect your sleep Yes No Research Insights Sample size: 136 respondents Sample Profile: Age(20-55), SEC A1 Geographic stretch: Chennai, Pune, Delhi, Bangalore, Mumbai
  • Above are identified four Consumer segment and their need analysis Blueprint-Philips| Innovate - Strategize - WinSource : Primary research Irregular sleeping patterns Crying inconsolably Not get deep sleep. Back ache and leg swelling while sleep Snoring, disturbed sleep Insomnia, irregular sleeping patterns Neck & back pain, Restless legs syndrome Consumer Pain Points 0 20 40 60 80 100 120 While travelling in luxury buses what are the main things that affect your sleep quality ? Disagree Neutral Agree Strongly Agree 67 48 71 23 45 0 10 20 30 40 50 60 70 80 Rate the level of discomfort during menopause (scale 0-100) 61 75 74 6 Importance of factors in affecting sleep (scale 0-100) Light (Need a dark room to sleep) Sound (Need a quiet place to sleep) Calm and peaceful mind Sleeping drugs/pills Research Insights Other Key Findings 38% - Lifestyle changes as prime reason for irregular sleep 44% - Study/work pressure often causes sleep problems 83% - Sleep problems does not require doctors advice 71% - Ready to try non invasive methods 6000 INR – average amount that spent on sleep aids Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint Philips Comfort Sleeping Aids Proposed Portfolio Scalability Geographic Scalability Maternity Sleeping Aids Infant Sleeping Aids Travel Sleeping Aids Adult Sleeping Aids Menopause Sleeping Aids Future Growth opportunities
  • PHILIPS-Maternity Sleeping Aids Customer pain points • Can't sleep on back in 2nd & 3rd trimester • Consistent back pain due to baby weight • Swollen legs Product: Maternity pillow • Full body pillow • enabling mother to sleep sideways. • Back massager • Control box • Temperature belts for swollen legs Target Consumers SEC A1 expecting mothers. Market Size Estimation No of child birth in India 24400000 SEC A1 expected pregnencies (3.49%) 851560 Over all market size( in Numbers) 851560 Expected market reach (5 %) - Ist year 42578 Conversion ratio 5% Total converted Customer 2130 Expected revenue- in INR (1st year) 10647870 Blueprint-Philips| Innovate - Strategize - WinSource : National Commission of Population Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint *per unit price is taken as 4999/-
  • PHILIPS-Travel Sleeping Aids Customer pain points • Prolonged abnormal posture -Back &Neck Pain • Noise from surrounding, exposure to light, perplexed mind Product: Smart Travel Sleep Kit • Neck massage pillow • Back massager • Light weight blind mask with white noise and brain wave music. Target Consumers Luxury Bus commuters Market Size Estimation Volvo has 76% Luxury bus market 5000 Total Luxury bus market 6600 Luxury bus tickets sold per day 300000 Over all luxury ticket sales in a year (approx.) 10 Crores Expected market reach (0.5%) - Ist year 50000 Conversion ratio 8% Total converted Cutomer 4000 Expected revenue from this product- in INR (1st year) 23996000 Blueprint-Philips| Innovate - Strategize - WinSource : Forbes India Magazine Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint *assuming a person buys luxury bus ticket 10 times a year * Price per unit(combined) 5999/-
  • PHILIPS-Infant Sleeping Aids Customer pain points • Baby needs continuous care to return back to sleep • Disrupted night time sleep (full seven or eight hour) Product: Rhythmic cradle • Automated swing mechanism • Sensors to detect child crying • Recorder device to record mothers voice • Audio device to make womb like sound Target Consumers SEC A1 Parents Market Size Estimation No of child birth in India 24400000 SEC A1 expected pregnancies (3.49%) 851560 Over all market size( in Numbers) 851560 Expected market reach (5 %) - 1st year 42578 Conversion ratio 3% Total converted Cutomer 1278 Expected revenue from this product- in INR (1st year) 12,778,722 Activated when baby cries Blueprint-Philips| Innovate - Strategize - WinSource : National Commission of Population Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint *per unit price is taken as 9999/-
  • PHILIPS-Adult Sleeping Aids Products Snore watch Electric pulse to stimulates nerve on snorer Noise Gauge to detect snoring Easy to operate and automatic power off Luminance Sleeper The light moves in a controlled, circular, and soothing manner to calm the mind Unobtrusive and suited for bedroom environment Target Consumers SEC A1: Adults & Elderly Blueprint-Philips| Innovate - Strategize - WinSource : National Commission of Population , http://www.aasra.info/articlesandstatistics.html Adults (Age 15-60) 826 million SEC A1 (3.49%) 28.8 million % facing sleep deprivation/insomnia 30% Over all market size( in Numbers) 8.64 million Expected market reach (2 %) - 1st year 172800 Conversion ratio 3% Total converted Customer 5184 Expected revenue from the product- INR (1st year) 20730816 Market Size Estimation Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint * Price per unit Snore watch: 1999/- ; Luminance sleeper: 3999/-
  • Introduction to Idea Consumer Research Product Portfolio Plan of Action Resource planning Scalability & Sustainable Market Risks Blueprint Research & Development Product Development Regulatory Approval Product Manufacturing Marketing Strategy Distribution Channel Strategic Alliances PLAN OF ACTION
  • Research & Development What? What? What ? 1 Product Development 2 Regulatory Approval 3 When? How? Understanding customer requirements Competitor benchmarking Patent issues & Cost implications Conformity assessments on quality and performance ISO, Gold standard, FDA or EU medical device certification License from Indian regulatory authority  R&D - TMS, Brain wave therapies, light/music/magnetic therapies Blueprint-Philips| Innovate - Strategize - Win When? Duration : 10-12 months Where?  TMS , Brain Wave therapies Perform R&D in US facility  Light/Magnetic massage therapies Perform R&D in India Duration: 8-10 months along with R&D Where?  TMS , Brain Wave therapies Perform PD in US centers  Light/Magnetic massage therapies Perform PD in India When? Duration : 8- 12 months with PD Where?  FDA approval in US  CDSCO, MoHWF, DCG(I) in India Clinical trials and evaluation Quality management systems Periodic surveillance audits How? Who? Innovative research and engineering team with excellence tools and metrics Who? Product engineering design, prototype development group Product design and testing to make a working model Source: patft.uspto.gov/ Introduction to Idea Consumer Research Product Portfolio Plan of Action Resource planning Scalability & Sustainable Market Risks Blueprint
  • Product Manufacturing What? What? What ? Increase the reach and awareness of the product through advertisements and promotions 4 Marketing Strategy 5 Distribution Channel 6 When? How? Online advertisements & product demo ATL marketing, PR coverage Marketing via Sleep labs  To operate a facility, understand the process and make a commercial- scale production via assembly Blueprint-Philips| Innovate - Strategize - Win When? After successful product development Where? Manufacturing/Assembly plant - India Pre-Launch and Post-Launch of product How? Facility layout & labor force (training) Supplier selection and approval Component procurement & Assembly Operational efficiency & Testing Inventory and Logistics management What ? Strategic Alliance 7  Sleep labs to Sleep Health centers  Influencing doctors  Private Healthcare providers  Insurance Mom and Me, Croma, Health chain stores Online-ehealthmart,healthkart,Redbus Dealers and agents (bus operators) Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainable Resource planning Market Risks Blueprint
  • Blueprint-Philips| Innovate - Strategize - Win Synergy with Philips focus on Health and Wellbeing Re-positioning Consumer Lifestyle towards the health and well-being domain Tapping the increasing spending power in growth geographies. Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint Scalability
  • Old age- RLS Adults Growth rate(High) Baby - Cradle Market Trends (Good) Maternity- Pregnancy comfort sleep aids TMS Any age – Travelling Sleep Kit IT/BPO Professio nal – Eye Massager Menopausal women: Cooling Mattress Current Market Products Future Market Products Growth rate(Low) Market Trends (Bad) Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint REM Eye Mapper
  • Sleep problems not limited to any boundaries Blueprint-Philips| Innovate - Strategize - Win Currentmarketattractiveness Future growth opportunities LOW WeakMedium MED HIGH PHILIPPINES BRAZIL Strong Country Need for Sleep Solution Presence and strength of Philips in that Country Disposable Income of Niche customers Market Competition USA 41% consult with doctor for sleep problem, 9/10 82.9% High JAPAN 97% Japanese sleep less than recommended hours 8/10 84.1% Moderate BRAZIL 79 mln people in Brazil have sleep disorder complaints 7/10 89.3% Low S. KOREA 3r ranked (68%) sleep deprived nation in Asia Pacific 8/10 87.6% Low PHILIPPINES Highest sleep problems in emerging countries 7/10 82.2% Low GERMANY 2/3rd of the Germans are less enthusiastic due to lack of sleep 7/10 70.1% Moderate AUSTRALIA GERMANY  Every product need localization according to specific country.  New product line also can be added to the portfolio for country specific problems  New Technology can also enhance existing product provided here. JAPAN INDONESIA Source: eurostat.eu Geographic Scalability Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • Financial sustainability Profit margins ensure break even will happen in 5 years Product Sustainability Differentiation and innovation gives competitive edge Customer Centricity Focusing on local market needs assures large customer base Operational Sustainability Functionally oriented and integrated operation model deliver speed and excellence Environmental Sustainability Eco-friendly products gives efficient solutions addressing green innovation Market Dynamics Seizing market opportunity by adapting to the market diversity Product Portfolio offers a sustainable advantage in its synergy with Philips Healthcare Blueprint-Philips| Innovate - Strategize - Win Sustainability Market Dynamics Competition Consumer preferences Profit margins Product differentiation Source: newscenter.philips.com EcoVision5 : ‘Care’ +‘Energy Efficiency’ +Recyclable ‘Materials’  Rechargeable battery.  5 Star rated products  Packaging in bio- degradable materials  Body of the products are made up of PLA plastics  No chemicals used  No emission of CO2 or any air pollutants  Light weight products  separable body parts  Repurchase option after usable periods  E-waste disposable service  Good R&D supported  Philips Service support will increase the product life EcoDesign Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • Cost based Pricing Model Particulars COGS Other Expanses Total Expenses ' Premium Price (INR) INFANT CRADLE 5999 2300 8299 20% 9999 TRAVEL SLEEPING AIDS 3719 1380 5099 18% 5999 ADULT SLEEP (SNORING) 1049 345 1394 8% 1499 ADULT SLEEP (DEPRIVATION) 2719 920 3639 10% 3999 WOMEN SLEEP AIDS 2519 920 3439 16% 3999 MATERNITY SLEEP AIDS 2999 1150 4149 20% 4999 "The market is expected to gradually pick up for the next one to two years and is estimated to grow at an average growth rate of 12-15 per cent in the next five years down the line," states Swarna Sundar, Industry Analyst-South Asia and Middle East, Healthcare, Frost & Sullivan 2014 2015 2016 2017 Infant Cradle units sold 1278 1457 1661 1893 Sale price @ unit 9,999.00 9,999.00 9,999.00 9,999.00 INFANT CRADLE TOTAL 12,778,722 14,567,743 16,607,227 18,932,239 Travelling Sleep Kit units sold 4000 4560 5198 5926 Sale price @ unit 5,999.00 5,999.00 5,999.00 5,999.00 TRAVELLING SLEEP KIT TOTAL 23,996,000 27,355,440 31,185,202 35,551,130 Adult Sleep Aids units sold 7320 8345 9513 10845 Sale price @ unit 1,499.00 1,499.00 1,499.00 1,499.00 ADULT SLEEP(SNORING) AIDS TOTAL 10,972,680 12,508,855 14,260,095 16,256,508 Adult Sleep Aids units sold 5184 5910 6737 7680 Sale price @ unit 3,999.00 3,999.00 3,999.00 3,999.00 ADULT SLEEP(SLEEP DEPRIVATION) AIDS TOTAL 20,730,816 23,633,130 26,941,768 30,713,616 Women Sleep aids units sold 1620 1847 2105 2400 Sale price @ unit 3,999.00 3,999.00 3,999.00 3,999.00 WOMEN SLEEP AIDS TOTAL 6,478,380 7,385,353 8,419,303 9,598,005 Maternity Sleep aids units sold 2130 2428 2768 3156 Sale price @ unit 4,999.00 4,999.00 4,999.00 4,999.00 MATERNITY SLEEP AIDS TOTAL 10,647,870 12,138,572 13,837,972 15,775,288 Monthly totals: All Categories 85,604,468 97,589,094 111,251,56 7 117,228,78 1 Sales Forecasting Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • Assumptions Growth Rate 14% Tax Rate 30% Establishment Cost(Expected) INR 40000000 Break Even years 5 years Funding Internal Sales Revenue, 2014 INR 85,604,468 2013 2014 2015 2016 2017 2018 Sales 0 85,604,468 97,589,094 111,251,567 117,228,781 133640810 Cost/ Goods Sold (COGS) 55,285,308 60,813,839 66,895,223 73,584,745 80,943,220 Gross Profit 0 30319159.8 36775254.5 44356343.7 43644035.8 52697590.6 Total Expenses 40000000 24,122,781 26535059.2 29188565.2 32107421.7 35318163.8 Net Profit Before Tax -40000000 6196378.72 10240195.3 15167778.6 11536614.1 17379426.7 Income Taxes 0 1858913.62 0 3072058.59 4550333.57 3460984.23 5213828.02 Net Profit After Tax -40000000 4337465.1 7168136.72 10617445 8075629.86 12165598.7 Owner Draw/ Dividends 0 0 0 0 0 0 -40000000 -35662534.9 -28494398.2 -17876953.2 -9801323.32 Adj. to Retained Earnings -40000000 -35662534.9 -28494398.2 -17876953.2 -9801323.32 2364275.39 -6000000 -4000000 -2000000 0 20000000 40000000 60000000 80000000 10000000 12000000 14000000 16000000 2013 2014 2015 2016 2017 2018 Sales Projection Sales Retained Earnings Earning Projections Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint
  • Risk Identification Risk Assessment Challenges Develop Contingency Plan Maintain the plan • Prioritizing the risks • Make Risk Impact analysis • Likelihood and risk balance • Emotional & irrational decisions • Lack of sense of urgency • Organizational politics • Identify the trigger • Simple plan with definite time lines • Assess plan-B w.r.t success, resources and customer needs • Maintain SOP and give training R I S K A N A L Y S I S Contingency Plan Obsolescence Unapproved Performance gap Copycats Undercutting Not user friendly More intermediaries Poor promotion/sales force/logistics Supplier drawbacks Production supplies and staffing Technological Context Customer Acceptance Competition Design issues Distribution channel Operational Challenges Continuous R&D FDA approval Target Marketing Leverage on technology to offer competitive rates Free Product Demos online Descriptive catalogues Good Channel selection program Proper Training Getting cost and revenue synergies correct Proper financial projection and business growth Blueprint-Philips| Innovate - Strategize - Win Risk AssessmentRisk Factors • Communicate the plan • Reviewing and reporting • Reassess the risks • Audit the plan accordingly • Address all critical business operations • Identify risks involved Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainable Resource planning Market Risks Blueprint
  • Why Comfort Sleeping Market size Diversified Portfolio Scalability Expected BEP Vision Repositioning Customer Lifestyle  extending sleep offerings to Comfort living Cater to the lifestyle driven cases Targeting 1.285 crore customer lives. In market segments and in products Appellate technologies/uses and to growth geographies 85 million INR in 2014. Expected to cross 100 million INR in 2016 Introduction to Idea Consumer Research Product Portfolio Plan of Action Scalability & Sustainability Financial planning Market Risks Blueprint Blueprint-Philips| Innovate - Strategize - Win
  • Appendix Product concept note: TMS Product concept note: Travel Product concept note: Maternity Product concept note: Crib Survey Excel Financial Projections Poster 1 Poster 2