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 Study
On
“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
7

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

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:
15

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.
16

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.
18

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:
19

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 PERSONALCARE:
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:
20

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.
INDUSTRYPROFILE
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

I
.,
..
0 ....
1 '""'
--~
.
.
.
..
.
l
...
..)
II
:)
l:J
consumption in the consumer electronics and durables market is poised for big leap
.... • TM
?
'i
~
j
I... .... - 2«)$ 2000
*' IOIO I01S
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 PhilipsAVS 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
28

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/-
32

 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/-
33

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 KOLKATA
Serial
no Name of the counters Address
1 Genesis 41B, Rashbehari Avenue, Kol- 26
2 Zenith Lifestyle Zone 154B Rashbehari Avenue, Opp Priya Cinema, Kol-29
3 Ranjan Electronics 165B, Rashbehari Avenue, Kol-20
4 Sreema Electronics 28/1E, Gariahat Rd, Kol-29. Beside"Anjali Jewellers"
5 Electronic World N.S.C.Bose Rd, Kol-40
6 Bambino 47/2C, Gariahat Rd, Kol-19
7 Sonovision 54B/1, Jadavpur Central Rd, Kol-32
8 Electrovision 54B/1, Jadavpur Central Rd, Kol-32
9 Alap H.C. Sarani, Sonarpur, Kol-150
10 Apollo Electronics 17. N.S.C Bose Rd, Rajpur, South 24 Parganas
11 Channel Nine Rajpur, Banstola, Kol- 149
12 Vishal Electronics H.C. Sarani, Sonarpur, Kol-150
13 Electronic Media 26, N.S. Bose Rd, Kol-149
14 New Electronic House 38, N.S.Bose Rd, Kol-149
15 Techno City 15B, Sarat Bose Rd, Kol-20
16 Sreema Electronics 67/ C.S.P. Mukherjee Rd, Kol-26. Beside Kalighat
17 Next Netajinagar
18 M.D.Electronics 17N.S.C Bose Rd, Kol 40
19 Electronic House Garia
20 Khosla Garia Garia
Multi Channel Elecr. Pvt.
21 Ltd. Garia
22 Sing Machinery Centre Garia
23 Fair Deal Intnl Garia
Great Eastern Traiding
24 Co Garia
25 Sales Emporium 30,Garia Main Rd, Kol-84
26 Multi Channel . Gariahat
27 Sreema Electronics 67/C, S.P. Mukerjee Rd, Kol-26
28 Khosla Electronics 2474-0414
29 Anandemala Gariahat
30 Time-N-Tune 32/4, Gariahat Rd(South), Kol-31
31 Capital Electronics Gariahat, 2440-6374
32 Khosla Behala 371/1, Diamond harbour Rd, Kol-149
33 Khosla Electronics Beckbagan (Opp Mithai)
34 Khosla Electronics Hazra (Opp. Basusree Cinema)
35 Sales Emporium Behala
36 The Capital 248/A, Diamond Harbour Rd, Kol-60
37 Fair Deal 69, Diamond Harbour Rd, Kol-38 ( Near Taratala Flyover)
Great Eastern
38 Appliances Pvt. Ltd 102, Diamond harbour Rd, Behala, Kol-34
39 Time-N-Tune 545, Diamond Harbour Rd, Kol-34
40 Time-N-Tune 479, Diamond Harbour Rd, Kol-34
41 New Radiowave 282, Diamond Harbour Rd, Behala, Kol-34
42 Fair Deal Intnl 1, Sourin Roy Rd, Kol-34
38

43 Pal Electronics 95/2, Station Rd, Jadavpure
44 Unique Baghajatin Bazar
45 Ahona Electronics Santoshpur
46 Fair Deal Intnl Santoshpur
47 Raipur Electronics Tollygung
48 Sur Sangam Elgin Rd
49 Sweet Sound Garia Station
50 L.K Elecetronics Garia Station
51 Electronic House 23 Raja S.C.Mullick Rd
52 Federal Electronics 6,Raja S.C.Mullick Rd.
NORTH KOLKATA
Bengal Credit and
54 Trading Corp. 47B, BlockC, New Alipore, Kol-53
55 Samrat Electronics 1, Kali Charan Ghosh Rd, Kol-50
56 Multi Channel 13, B.T.Rd(Sinthee More), Kol-50
Great Eastern Trading
57 Co. 277/2/1,B.T.Road(SintheeMore), Kol-36
Avinandan Electronics 12, Narendranagar (B.T.Road), Kol-56 (Near 9A bus
58 Pvt. Ltd. terminus, Dunlop Bridge)
59 Anmol Electronics 1/1, B.T. Road, Kol-56
140, B.T.Road, Vikram Super Market, Block -D, Room
60 Sanjay Sales NO-13, Kol-35
140, B.T.Road, Vikram Super Market, Block -D, Room
61 Shanti Electronics NO-59, Kol-35
62 Electro Plaza 2F- Kalicharan Ghosh Road, Kol-50
63 Tara Ma Electrics 140, B.T.Road, Vikram Super Market, Block -D, Kol-35
64 New Supriyo 20B, Bhupen Bose Avenue, Kol-04
Esteem Aircon Trading
65 Corp. 980040413
102A, Sri Arobindo Sarani (Hatibagan Grey St. crossing),
66 J.K.Electronics Kol-06
67 Soumik 100, Arabinda Sarani, Kol-06
Ray Electronics
68 (Anandalok) 100, Arabinda Sarani, Kol-06
EAST KOLKATA
69 Satyam Bidhannagar Station Road ( Ultadanga)
70 Capital Electronics Ultadanga
71 Sales Emporium Ultadanga
72 Atul Electronics 179A, Vivekananda Road, (Maniktala Bazar), Kol- 06
73 Taranga Electronics 30, Brindaban Bose Lane, Kol-06
74 Betar-O-Alo 187, Vivekananda Road, Maniktala Market, Kol-06
123/1/1/, A.P.C. Road, (Beadon Street), Maniktala Bazar,
75 Jhankar Kol-06
76 Swar Sangam 3, S.N.Pandit Street, Kol-20
Great Eastern
77 Appliances Pvt. Ltd. P-273, Maniktala Main Road, Kakurgachi, Kol-54
39

CENTRAL KOLKATA
78 Sony Radio & Watch Co. 134/1, M.G.Road, Kol-07
79 Vijay Radio 166, M.G. Road
Great Eastern Trading
80 Co. Dalhousie
81 East India Trading Co. 14/1B, Ezra Street, Kol-01
Amber Radio
82 Corporation 38, Chadney Chowk Street, Kol-72
83 The Mahabir Electronics 38/A, Chandney Chowk Street, Kol-72
84 Amit Electronics 6/3, Madan Street, Kol-72
Madan Mohan Fancy
85 Stores 20, Lenin Sarani, Kol-13
86 Sonnet Electronics 23/2, Lenin Sarani, Kol-13
87 Ankur Electronics 8, Lenin Sarani, Kol-13
88 Philips Music Corner 167 Lenin Sarani
89 Summit Electronics 8, C.R.Avenue
90 Harmony House 12E, Park Street, Kol-71
91 Channel 9 Electronics 2, Lenin Sarani
Capital Chowringhee
92 Pvt. Ltd 12, Jawharlal Neheru Road
93 Digital World 46B, Rafi Ahmed Kidwai Road
94 Raman Music House 4, Madan Street, Kol-72
95 Music Corner 167, Dharmatala Street, (Opp Jyoti Cinema), Kol-72
96 Sound Of Music 44A, Rafi Ahmed Kidwai Road
HOOGHLY
97 Manik Akhanbazar, Chinsurah
98 Electronica Tematha,Chandannagore
99 Video Parlour Rathersarak, Chandannagore
100 Betaralaya Luxmigung Bazar, Chandannagore
101 Radio Emporium Laldighirdhar, Bagbazar, Chandannagore
102 Nivedita Electronics Bagbazar, G.T.Road, Chandannagore
Maruti Television
103 Manufacturing Co Satyapirtala , Chandannagore
104 Radio Emporium Town Guard Road, Ghorir More, Chinsurah
105 The Electronic Palace 53/A/1/3, N.S. Avenue, Serammpore
106 Sing Stores 23, B.P.Dey Street, Serampore
107 Gopal Radio Clinic 55, B.P.Dey Street, Serampore
108 Arun Radio Plaza 33, G.T. Road, Chandannagore
109 T.V.Palace B.P.Dey Street, Serampore
110 National Electronics Bandel
111 Quality Electronics Bandel
NORTH 24-PARGANAS
112 B.R.Roy and sons S.N. Banerjee Road, barrackpore
113 Gramo Radio Sukanta sadan, Barrackpore
114 Saha and Sons 14 no railgate, lalkuthi , barrackpore
115 Sathi Traders sodepur
40

TOOLS & METHODS OF DATACOLLECTION
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
30
80
70
60
50
40 Series1
68
20
10
0
28% SONY
PHILIPS
SAMSUNG
LG
44%
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
AVERAGE
45%
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 DISTRIBUTIONTHE DEALERSAND 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
6
5 DIRECT
4 DISTRIBUTOR
3
2
1
0
PHILIPS SONY SAMSUNG LG OTHERS
OUT OF 11 COUNTERS 2 COUNTERS HAS DIRECTAND 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
BUYINGA 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
0
DIVX, USB, LOOKS MORE SOUND LOWER PRICE
HDMI OUTPUT
18% DIVX, USB, HDMI
27%
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 MONTH
SONY 228
PHILIPS 205
SAMSUNG 55
LG 26
OTHERS 86
TOTAL = 600
Total Sale of Philips HTS in South
Kolkata.
250 228
200
150 NOS SOLD PER
100 86 MONTH
50 26
0
Counter Share for Philips HTS.
MARKET SHARE FOR
SONY
38% PHILIPS PHILIPS HTS IS 34%
15% SAMSUNG
34%
4% OTHERS
9%
50

DISTRIBUTOR8
DISTRIBUTORS HAS:-
DIRECT DISTRIBUTOR
SONY 17 14
PHILIPS 14 19
SAMSUNG 7 11
LG 4 6
OTHERS 2 16
Types of Distribution for the various brands.
20
18
16
14
12 DIRECT
10
6
4
2
0
OUT OF 40 SHOPS 14 OF THEM HAS DIRECT BILLIND SYSTEMAND 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’s
a 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
COUNTERS IS 44%.
Here dealers like more in displaying Philips HTS comparing to Sony. Only 27% of Sony
HTS 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, HDMI
15
MORE SOUND OUTPUT
10
5
0
NOS OF CUSTOMERS
10%
DIVX, USB, HDMI
15% LOOKS
57%
18%
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 KOLKATA
Total number of major Consumer Electronics counters visited = 12
 TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE EAST
KOLKATA:-
SONY 47
PHILIPS 42
SAMSUNG 10
LG 20
OTHERS 5
TOTAL 124
Total sale of HTS for Philips in East Kolkata
50 47
45 42
40
35
30 PHILIPS
25 SAMSUNG
20 LG
15 OTHERS
5
0
SONY PHILIPS SAMSUNG LG OTHERS
Counter Share for Philips HTS in East Kolkata.
SONY, 38%
SONY
PHILIPS
SAMSUNG
PHILIPS, 34%
OTHERS
MARKET SHARE FOR PHILIPS HTS IS 34%.WHEREAS 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
45% OF THE DEALERS THINK THAT PHILIPS HTS IS A GOOD 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 of
East Kolkata.
PHILIPS
40%
SONY SAMSUNG PHILIPS
LG
OTHERS
OTHERS
10%
COUNTERS IS 40%.
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
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 7
7
6 5 5
5 4 DIRECT
4
2
1
0
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
9
8
7
6
5
NOS OF CUSTOMERS
3
2
1
0
DIVX, USB, LOOKS MORE LOWER
HDMI SOUND PRICE
OUTPUT
Customer preferences while biying a HTS.
DIVX, USB, HDMI
LOOKS
MORE SOUND
8% OUTPUT
LOWER PRICE
Similar like South Kolkata. People searches for HTS which has a more wattage.
59

SONY
PHILIPS
162
CENTRAL KOLKATA
Total number of major Consumer Electronics counters visited = 17
 TO FIND OUT THE MARKET SHARE OF PHILIPS HTS IN THE CENTRAL
KOLKATA:-
SONY 73
PHILIPS 162
SAMSUNG 11
LG 2
OTHERS 191
TOTAL 439
Total average sales for Philips HTS in the shops of
Central Kolkata
250
200 191
PHILIPS
150 SAMSUNG
100 73
LG
50 OTHERS
11
0
Counter share for Philips HTS in Central Kolkata.
37%
SONY
17%
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
31% OF THE DEALERS THINK THAT PHILIPS HTS IS A GOOD
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
COUNTERS CENTRALKOLKATA 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

DISTRIBUTORS HAS:-
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
0
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
DIVX, USB, HDMI 2
LOOKS 1
LOWER PRICE 3
NOS OF CUSTOMERS
12
10
8
6 NOS OF CUSTOMERS
4
2
0
HDMI SOUND PRICE
OUTPUT
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.
SONY 25
PHILIPS 33
SAMSUNG 3
LG 15
OTHERS 68
TOTAL 144
Avg sell for HTS in suburban area per month.
80
70 68
60
50
NOS SOLD
30 25
20
10
0
65

23% 2%
Counter share for Philips HTS.
SONY
PHILIPS
17% 11%
SAMSUNG
LG
47% OTHERS
THE TOTAL MARKET SHARE FOR PHILIPS HTS IN KOLKATA
SUBURBANAREA 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 AVERAGE
EXCELLENT PRODUCT 0
GOOD PRODUCT 8
AVERAGE PRODUCT 6
EXCELLENT PRODUCT
GOOD PRODUCT
0% AVERAGE PRODUCT
0%
PRODUCT
57% OF THE DEALERS IN SUBURBANAREATHINKS 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 SUBURBANAREA:-
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
COUNTERS IN KOLKATA SUBURBANAREA 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
DISTRIBUTORS HAS:-
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.
18
16
14
12 DIRECT
10
8
4
2
0
OUT OF 20 SHOPS IN KOLKATA SUBURBAN 2 OF THEM HAS DIRECT
BILLING SYSTEMAND 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
0
HDMI SOUND PRICE
OUTPUT
Customer preferences while buying a HTS .
0%
30% DIVX, USB, HDMI
LOOKS
MORE SOUND
55% 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

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.
72

 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’sASS.
 “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

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?
Margin
After sales service
Brand Pull
Others
10)What are the features in the entry level segment in home theatre system customer
wants?
Divx
USB – port
HDMI
Others
81

11) What are the things customer gives preference while buying a particular HTS?
Lower price
Added features like USB/ Divx / HDMI
Looks
More sound output
Others
82

Summer Training Project , Siva Sivani Institute of Management , PDGM ( Marketing)

Recommended

Recommended

More Related Content

Similar to Summer Training Project , Siva Sivani Institute of Management , PDGM ( Marketing)

Similar to Summer Training Project , Siva Sivani Institute of Management , PDGM ( Marketing) (20)

Recently uploaded

Recently uploaded (20)

Summer Training Project , Siva Sivani Institute of Management , PDGM ( Marketing)