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1
A Research Project on
RETAIL AUDIT AND COMPARTIVE STUDY OF PHILIPS
LIGHT BULBS AND OTHER BRANDS
By
ROHAN SHARMA
Roll No. 19DM164
Under the guidance of
PROF. ARVIND SHUKLA
2
ACKNOLEDGEMENT
It gives me immense pleasure to present this Research Report on Retail Audit
of Philips Limited.
I would like to express my sincere gratitude to my mentor Mr. Arvind Shukla,
Professor in the area of Marketing and Chairperson of the Fellow Program and
the Executive Fellow Program for providing me with invaluable guidance,
comments and suggestions throughout this course if research. I would also like
to express my gratitude to Birla Institute of Management Technology for giving
me this opportunity to take upon this Research Project. Furthermore, I would
like to express my gratitude to the people who helped and contributed their
valuable time to solve my doubts.
3
EXECUTIVE SUMMARY
Philips Limited is a company providing personal and professional health and
well-being and lighting products. This report has main focus on lighting division
of Philips.
The main objective of the report has been to conduct a comparative study of
light bulbs offered by Philips with that of the competitive brands and find out
how much the consumers and dealers are satisfied by the offerings of the
company.
According to the findings 100% of the respondents were aware of Philips light
bulbs. Philips stood out better than its competitors in most of the aspects like
quality, price, features and services.
From this research project I found out that Philips is the most sold and reputed
brand in Sikandrabad region of District Bulandshahr.
4
TABLE OF CONTENTS
S N CONTENTS Pg No
1. Project Outline 5
2. About
1.1 Company Overview
1.2 Industry Overview
1.3 Company Product Range
6-12
3. Objectives 13
4. Research Methodology 14
5. Data Gathering 15
6. Analysis 16-22
7. Findings 23
8. Appendix 24-26
9. Reference 27
5
PROJECT OUTLINE
The main objective of this research is to draw comparison between the Phillips
light bulbs with competitors of Philips in the same segment. The major
competitors of Philips are Bajaj, Havells, Osram, Wipro, Surya, Syska etc.
1. The research has been conducted in local market located in Sikandrabad
region of District Bulandshahr. The market has various retailers and
dealers selling electronic equipment to consumers as well as for
commercial purpose.
2. Survey was conducted to find out awareness of dealers and people
regarding the Philips bulbs.
6
COMPANY OVERVIEW
PHILLIPS INDIA
Philips India Limited is a subsidiary of Royal Philips of the Netherlands, a
leading health technology company focused on improving people’s health and
enabling better outcomes across the health continuum from healthy living and
prevention, to diagnosis, treatment and home care. Philips leverages advanced
technology and deep clinical and consumer insights to deliver integrated
solutions. The company is a leader in diagnostic imaging, image-guided
therapy, patient monitoring and health informatics, as well as in consumer
health and home care.
HISTORY OF PHILLIPS IN INDIA
Phillips began operation in India in the year 1930 by establishing the Phillips
Electrical Co. (India) Pvt Ltd in Kolkata an outlet for Phillips lamps that have
been imported. In the year 1938 Philips established a lamp manufacturing
factory in Kolkata which was also the first Indian lamp manufacturing factory.
After 10 years Philips introduced production of radios near Pune. In 1957, the
company turned into a public limited company and was named as “Phillips
India Ltd”. In the year 1970, a consumer electronic factory started its
operations in Pimpri, a suburb of Pune in the Pune Metropolitan Area in the
state of Maharashtra. The place we now know as Phillips Innovation Campus
was established in Bengaluru in 1996 as Phillips Software Centre. Since 2008
Phillips is a part of water purifier market also.
BOARD OF DIRECTORS
Chairman & Non-Executive Director S. M. Datta
Vice – Chairman & Managing Director Daniel Mazon
Whole-Time Director and Company
Secretary
Rajiv Mathur
Whole-Time Director and CFO Sudeep Agarwal
Non-Executive Independent Directors Geetu Gidwani Verma
7
REGISTERED OFFICE
Philips India Limited
3rd Floor, Tower A, DLF IT Park, 08 Block AF, Major Arterial Road,
New Town (Rajarhat), Kolkata, West Bengal- 700156
PHILLIPS
Koninklijke Philips N.V. is a Dutch multinational
delta conglomerate corporation headquartered in Amsterdam, one of the
largest electronics companies in the world, currently focused in the area of
healthcare and lighting. It was founded in Eindhoven in 1891 by Gerard
Philips and his father Frederik, with their first products being light bulbs. Once
it was one of the largest electronic multinational conglomerates in the world.
Philips is organized into the following main divisions:
1. Philips Consumer Health and Well-being
1.1Philips Consumer Electronics
1.2Philips Domestic Appliances
1.3Personal Care
2. Philips Professional Healthcare (Philips Medical Systems)
3. Lighting division (Philips Lighting)
HISTORY
The Philips Company was founded in 1891, by Gerard Philips and his father
Frederik Philips. Frederik, a banker based in Zaltbommel, financed the
purchase and setup of an empty factory building in Eindhoven, where the
company started the production of carbon-filament lamps and other electro-
technical products in 1892.
EMPLOYEMENT
The currently employs of the Phillips Group is around 74,000 people spread
across 100 countries.
8
PHILLIP LOGOS
PAST LOGOS: 1938 - 2013
CURRENT: 2019
9
INDUSTRY OVERVIEW
Lighting Industry in India
“In India the Lighting market has been growingly steadily, growing from usage
of conventional products to LEDs. This constant changed has been backed by
the government and various initiatives offered by the government, increased
awareness of the consumer and introduction of innovative offerings or
products by the manufacturers that go hand in hand with the changing trends
in the market. This represents opportunity for companies offering electronic
hardware/components and solutions used in LED lighting.”
“India, being one of the most populated country in the world and 5th major
electricity consumer, has been witnessing an ever-widening demand and
supply gap in electricity. Consequently, market for power-efficient products
such as LED lights is ought to grow. Other drivers are the Smart Cities project,
and the increasing demand for a smart, connected lifestyle and energy-
efficiency measures.”
“The LED lighting market in India is projected to register a CAGR of over 30 per
cent during 2016-2021. The Electric Lamp and Component Manufacturers
Association of India (ELCOMA) shares that the LED market in India is expected
to grow to Rs. 216 B by 2020. This leap will result in the LED market accounting
for about 60 per cent of India’s total lighting industry (approx. Rs. 376 B) in
2020.”
The key factors that are leading to a boost in the lighting market includes:
1. Falling LED prices
2. Favourable government initiatives
3. Rising consumer awareness
Government Facilitations
“Press Information Bureau (PIB) announces, by 2019, 770 million LED bulbs and
35 million LED streetlights will be deployed to replace conventional lights.
Under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), 27.3 million
LED bulbs have to be distributed to BPL households.
10
Over 2.1 million conventional streetlights have already been replaced with LED
streetlights across the country, under the Street Lighting National Programme
(SLNP). Energy Efficiency Services Limited (EESL), a public energy services
company under the administration of the Ministry of Power, government of
India (GoI) is the implementing agency for SLNP.”
Challenges
There exists lot of challenges in Indian market for consumer electronics.
Several MNC consumer electronics players have entered the country leading to
brand proliferation. There is immense pressure to lower price and to speedily
introduce new products on the players, due to this high competition. The
Indian consumer is price and value sensitive. More than 70 per cent of the
population lives in rural areas which are difficult to reach
Opportunities
“LEDs are versatile products and so can be used for various purposes like
residential lighting, downlights, street lighting, monument lighting, signage,
traffic signals, industrial lighting, landscaping, office space lighting, automotive
lighting etc. Low energy consumption, modular designs, low costs and ease of
use have made LED lighting the prime choice in industrial, commercial and
domestic applications.”
The main 4 demand-generating areas are:
1. Residential lighting
2. Industrial lighting
3. Office space lighting
4. Street lighting
11
PHILLIPS LIGHTING
PRODUCT RANGE
Phillips offers wide range of bulbs in different shapes, designs, power usage,
fittings and features.
The following is the range of bulbs offered by Phillips.
1. Stick Shaped – Genie
This is a Philips Economy light bulb which the company claims is "value for money"
option when one requires a basic energy-saving bulb in a compact design. The
companies Lasting up to 6 years, this compact bulb saves up to 80% energy and
money.
Specifications available:
• Power consumption per 1000h: 5W-11W
• Socket: B22, E27, E14 caps
• Lights: Cool daylight, Warm white
• Voltage: 220-240W
2. Spiral Shaped – Tornado
Philips Tornado energy-saving bulbs provide bright light and make colors appear
more vivid. Due to its compact design, this low-consumption spiral bulb fits nearly
everywhere, saving energy and money for up to 10 years.
Specifications available:
• Power consumption per 1000h: 15W-23W
• Sockets: B22,E27 caps
• Lights: Cool daylight, warm white
• Voltage: 220-240W
12
3. LED Bulb – Round Shaped
LED light bulbs help transform the living space with beautiful and warm lights. It
offers numerous lighting possibilities and helps in saving up to 90% of energy
consumption. The instant brightness of the light is able to create a comfortable
environment in your home.
Specifications:
• Watt: 4W
• Socket: B22
• Lights: Cool daylight, warm white
TOTAL SALES BY PHILIPS INDIA LIMITED
Sales by Lighting solutions to different segments.
13
OBJECTIVES OF RESEARCH
1. Conducting a retail audit.
2. Determining the market share of Philips Light Bulbs with respect to
other competitive brands
3. Identifying and analysing the factors influencing consumer purchase
decisions.
4. To know the retailer/dealer and consumer awareness and satisfaction
level towards the products.
14
RESEARCH METHADOLOGY
Data collection: The purpose is to identify the viability and health of Philips and
its Light Bulbs. Primary and secondary research will be conducted in
Bulandshahr region of U.P.
1. Primary Research
Primary research will be conducted to obtain first-hand information on
the market and its customers through conducting Retail Audit. The main
focus is on the retailers and dealers of the area to gather all the
information required. The data is to be acquired through a questionnaire
using a survey designed covering all the aspects of research objectives.
The purpose to follow primary research is to gather precise and realistic
data.
2. Secondary Research
Collection of secondary data is always necessary and acts as a perquisite
before conducting any research. Therefore, data for the same will be
collected from certain public, commercial and internal sources.
3. Sampling Structure:
3.1 Sampling Method – Systematic Sampling
3.2 Sampling Technique – Convenience Sampling
3.3 Sampling Region – Sikandrabad Region of District Bulandshahr
3.4 Sampling Size – 18
15
DATA GATHERING
The data has been gathered through frequent visits to the retailers and dealers
in the Sikandrabad region of Bulandshahr district. A questionnaire containing
14 questions as shown in the Appendix 1 had been used to find out certain
information aligned with the objectives of the research. The shopkeepers were
provided with questionnaire to fill but in most cases shop keepers preferred
one to one interaction due to their lack of interest in filling the questionnaire
and in some cases due inability of shopkeepers to understand the language of
questionnaire which was in English. Also, in some cases, due to absence of the
owner the data was collected from the workers working in the shop.
Once the data had been collected analysis and interpretations on the same had
been done.
16
ANALYSIS
Question 1
Which brands do you keep in your store?
1. Philips is the most kept light bulb brand by the respondents. Out of
18 respondents 16 kept Philips bulbs in their stores.
0
2
4
6
8
10
12
14
16
18
Philips Syska Bajaj Wipro Havells Osram Surya Eveready
Most Kept Brands
Company Respondents
1. Philips 16
2. Syska 10
3. Bajaj 12
4. Wipro 4
5. Havells 13
6. Osram 6
7. Surya 10
8. Eveready 0
17
Question 2
Are you aware about Philips LED Bulbs?
Awareness
(Yes/No)
Respondents
Yes 18
No 0
Question 3
Which brand customers asks first once they enter the store?
Company Respondents
1. Philips 7
2. Syska 3
3. Bajaj 4
4. Wipro 0
5. Havells 3
6. Osram 0
7. Surya 1
8. Eveready 0
0
1
2
3
4
5
6
7
8
Philips Syska Bajaj Wipro Havells Osram Surya Eveready
Most Asked Brands
Series 1
18
Question 4
What do you feel about the Quality of Philips Light Bulbs?
Quality of Philips Bulbs Respondents
Very good 3
Good 13
Satisfactory 2
Poor 0
Question 6
What offers are more relished by the customers?
Quality of Philips Bulbs
Very good Good Satisfactory Poor
Offers Relished by customers
Cash Discounts 16
Cash Backs 0
Combo Offers 2
19
Question 7
What brand is sold the most?
Company Respondents Share
1. Philips 8 44.4%
2. Syska 2 11.1%
3. Bajaj 3 16.6%
4. Wipro 0 0
5. Havells 4 22.2%
6. Osram 0 0
7. Surya 1 5.55%
8. Eveready 0 0
9
1
3
0
4
0
1
0
P H ILIP S
S Y S K A
BA JA J
W IP RO
H A VE LLS
OS RA M
S URY A
E VE RE A DY
MOST SOLD BRAND
Series 1 Column1 Column2
20
Question 9
Factors influencing purchase decisions of customers?
Company Quality Price Technology Features Service
Philips 14 16 11 13 10
Syska 12 12 13 11 9
Bajaj 6 10 3 8 7
Wipro 5 5 4 10 4
Havells 10 8 10 4 8
Osram 7 2 8 5 1
Surya 8 8 7 5 5
Eveready 0 0 0 0 0
1. Most respondents believed Philips light bulb to be of highest quality
which influenced consumers to purchase more of Philips bulbs.
2. Consumer were driven by the technological factor to purchase Syska
light bulbs while on the price factor Philips and Syska were on tie.
3. Philips light bulbs seemed to have more features as per the respondents.
Question 10
Are you aware about the Philips Smart Bulbs/ Philips Hue?
Awareness
(Yes/No)
Respondents
Yes 13
No 5
21
Question 11
How do you think customers will react to the Smart Bulbs?
Question 12
What current problems will lead to customers purchasing Smart Bulbs?
Current Problems
Price Quality Features Post Purchase Service
Reaction Respondents
Positive 9
Negative 7
Not Sure 2
Current Problems Respondents
Price 0
Quality (Life) 8
Features 16
Post Purchase
Service
0
22
Question 13
How many brands provide warranties?
Company Yes/No Duration
1. Philips Yes 3 Years
2. Syska Yes 2 Years
3. Bajaj Yes 2 Years
4. Wipro Yes 1 Year
5. Havells Yes 1 Year
6. Osram Yes 1 Year
7. Surya Yes 2 Year
8. Eveready Yes 2 Year
23
FINDINGS
1) More than 95% of the respondents kept light bulbs of different
brands in their shops.
2) 100% of the respondents were aware of the Philips light bulbs.
3) Quality and Price of the light bulbs are the most important factors
influencing the purchase decisions of the customer.
4) Philips is the most asked brand in the region by the customers.
5) Philips is the most sold brand after Havells.
6) 72.22 % of the respondents found the quality of Philips light bulbs to
be good. Quality here is in respect to the build quality and life of the
product.
7) The customer is the region preferred to get cash discounts than
compared to any other offers.
8) 72.22 % respondents are aware of the smart bulbs or Philips Hue
offered by the company though most of them are not selling the
smart bulbs.
9) The following factors influence the buying decisions of customers of
various brands:
• Price – Philips is most preferred.
• Quality – Philips is most preferred.
• Technology – Syska if most preferred.
• Features – Philips is most preferred.
• Service – Philips is most preferred
10) The main problems found were features since in the region all the
bulbs available just provided basic functions.
11) All the companies that the respondents dealt in provided
warranties ranging from 1 year to 3 years. Philips provided maximum
warranty i.e. of 3 years
24
APPENDIX
QUESTIONNAIRE
This survey is in respect to the Research Project I have been working upon regarding the Retail Audit
of Syska Light Bulbs. I intend to find out the market share, retailer/dealer preference regarding the
light bulbs they sell as well as customer preference regarding the light bulbs the purchase. All the
information so obtained will be confidential and won’t lead to any monetary benefit.
DEALER/RETAILER NAME:
CONTACT NUMBER:
Questionnaire on Light Bulbs
Q1. Which brands do you keep in your store?
1. Phillips
2. Syska
3. Bajaj
4. Wipro
5. Havells
6. Osram
7. Surya
8. Eveready
9. Other_____________
Q2. Are you aware about Philips LED Bulbs?
1. Yes
2. No
Q3. Which brand customers asks first once they enter the store?
1. Philips
2. Syska
3. Bajaj
4. Wipro
5. Havells
6. Osram
7. Surya
8. Eveready
9. Other _________
Q4. What do you feel about the Quality of Philips Light Bulbs?
1. Very Good
2. Good
3. Satisfactory
4. Poor
Q5. Inventory levels of the bulbs of different brands you keep in your store?
Company Inventory Level
9. Philips
10. Syska
11. Bajaj
12. Wipro
13. Havells
14. Osram
15. Surya
16. Eveready
17. Others
25
Q6. What offers are more relished by the customers?
1. Cash Discounts
2. Combo offers
3. Cashbacks
4. Others ______________
Q7. What brand is sold the most?
1. Philips
2. Syska
3. Bajaj
4. Wipro
5. Havells
6. Osram
7. Surya
8. Eveready
9. Other ____________
Q8. Maximum Retail Price of Products offered?
Company MRP
9. Philips
10. Syska
11. Bajaj
12. Wipro
13. Havells
14. Osram
15. Surya
16. Eveready
17. Others
Q9. Factors influencing purchase decisions of customers?
Company Quality
(Life)
Price Technology Features Service Other
Philips
Syska
Bajaj
Wipro
Havells
Osram
Surya
Eveready
Other
Q10. Are you aware about the Philips Smart Bulbs/Philips Hue?
1. Yes 2. No
Q11. How do you think customers will react to the Smart Bulbs?
1. Positively
2. Not Sure
3. Negatively
26
Q12. What current problems will lead to customers purchasing Smart Bulbs?
1. Price
2. Quality (Life)
3. Features
4. Post Purchase Service
Q13. How many brands provide warranties?
Company Yes/No
1. Philips
2. Syska
3. Bajaj
4. Wipro
5. Havells
6. Osram
7. Surya
8. Eveready
9. Others
Q14. What are your views regarding the brand Philips? Give suggestions if any…
__________________________________________________________________________________
_________________________________________________________________________________ .
27
REFERENCE
https://www.philips.co.in/lighting
https://www.repsly.com/blog/consumer-goods/retail-audit-the-ultimate-guide

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Retail Audit of Philips Light Bulbs

  • 1. 1 A Research Project on RETAIL AUDIT AND COMPARTIVE STUDY OF PHILIPS LIGHT BULBS AND OTHER BRANDS By ROHAN SHARMA Roll No. 19DM164 Under the guidance of PROF. ARVIND SHUKLA
  • 2. 2 ACKNOLEDGEMENT It gives me immense pleasure to present this Research Report on Retail Audit of Philips Limited. I would like to express my sincere gratitude to my mentor Mr. Arvind Shukla, Professor in the area of Marketing and Chairperson of the Fellow Program and the Executive Fellow Program for providing me with invaluable guidance, comments and suggestions throughout this course if research. I would also like to express my gratitude to Birla Institute of Management Technology for giving me this opportunity to take upon this Research Project. Furthermore, I would like to express my gratitude to the people who helped and contributed their valuable time to solve my doubts.
  • 3. 3 EXECUTIVE SUMMARY Philips Limited is a company providing personal and professional health and well-being and lighting products. This report has main focus on lighting division of Philips. The main objective of the report has been to conduct a comparative study of light bulbs offered by Philips with that of the competitive brands and find out how much the consumers and dealers are satisfied by the offerings of the company. According to the findings 100% of the respondents were aware of Philips light bulbs. Philips stood out better than its competitors in most of the aspects like quality, price, features and services. From this research project I found out that Philips is the most sold and reputed brand in Sikandrabad region of District Bulandshahr.
  • 4. 4 TABLE OF CONTENTS S N CONTENTS Pg No 1. Project Outline 5 2. About 1.1 Company Overview 1.2 Industry Overview 1.3 Company Product Range 6-12 3. Objectives 13 4. Research Methodology 14 5. Data Gathering 15 6. Analysis 16-22 7. Findings 23 8. Appendix 24-26 9. Reference 27
  • 5. 5 PROJECT OUTLINE The main objective of this research is to draw comparison between the Phillips light bulbs with competitors of Philips in the same segment. The major competitors of Philips are Bajaj, Havells, Osram, Wipro, Surya, Syska etc. 1. The research has been conducted in local market located in Sikandrabad region of District Bulandshahr. The market has various retailers and dealers selling electronic equipment to consumers as well as for commercial purpose. 2. Survey was conducted to find out awareness of dealers and people regarding the Philips bulbs.
  • 6. 6 COMPANY OVERVIEW PHILLIPS INDIA Philips India Limited is a subsidiary of Royal Philips of the Netherlands, a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. HISTORY OF PHILLIPS IN INDIA Phillips began operation in India in the year 1930 by establishing the Phillips Electrical Co. (India) Pvt Ltd in Kolkata an outlet for Phillips lamps that have been imported. In the year 1938 Philips established a lamp manufacturing factory in Kolkata which was also the first Indian lamp manufacturing factory. After 10 years Philips introduced production of radios near Pune. In 1957, the company turned into a public limited company and was named as “Phillips India Ltd”. In the year 1970, a consumer electronic factory started its operations in Pimpri, a suburb of Pune in the Pune Metropolitan Area in the state of Maharashtra. The place we now know as Phillips Innovation Campus was established in Bengaluru in 1996 as Phillips Software Centre. Since 2008 Phillips is a part of water purifier market also. BOARD OF DIRECTORS Chairman & Non-Executive Director S. M. Datta Vice – Chairman & Managing Director Daniel Mazon Whole-Time Director and Company Secretary Rajiv Mathur Whole-Time Director and CFO Sudeep Agarwal Non-Executive Independent Directors Geetu Gidwani Verma
  • 7. 7 REGISTERED OFFICE Philips India Limited 3rd Floor, Tower A, DLF IT Park, 08 Block AF, Major Arterial Road, New Town (Rajarhat), Kolkata, West Bengal- 700156 PHILLIPS Koninklijke Philips N.V. is a Dutch multinational delta conglomerate corporation headquartered in Amsterdam, one of the largest electronics companies in the world, currently focused in the area of healthcare and lighting. It was founded in Eindhoven in 1891 by Gerard Philips and his father Frederik, with their first products being light bulbs. Once it was one of the largest electronic multinational conglomerates in the world. Philips is organized into the following main divisions: 1. Philips Consumer Health and Well-being 1.1Philips Consumer Electronics 1.2Philips Domestic Appliances 1.3Personal Care 2. Philips Professional Healthcare (Philips Medical Systems) 3. Lighting division (Philips Lighting) HISTORY The Philips Company was founded in 1891, by Gerard Philips and his father Frederik Philips. Frederik, a banker based in Zaltbommel, financed the purchase and setup of an empty factory building in Eindhoven, where the company started the production of carbon-filament lamps and other electro- technical products in 1892. EMPLOYEMENT The currently employs of the Phillips Group is around 74,000 people spread across 100 countries.
  • 8. 8 PHILLIP LOGOS PAST LOGOS: 1938 - 2013 CURRENT: 2019
  • 9. 9 INDUSTRY OVERVIEW Lighting Industry in India “In India the Lighting market has been growingly steadily, growing from usage of conventional products to LEDs. This constant changed has been backed by the government and various initiatives offered by the government, increased awareness of the consumer and introduction of innovative offerings or products by the manufacturers that go hand in hand with the changing trends in the market. This represents opportunity for companies offering electronic hardware/components and solutions used in LED lighting.” “India, being one of the most populated country in the world and 5th major electricity consumer, has been witnessing an ever-widening demand and supply gap in electricity. Consequently, market for power-efficient products such as LED lights is ought to grow. Other drivers are the Smart Cities project, and the increasing demand for a smart, connected lifestyle and energy- efficiency measures.” “The LED lighting market in India is projected to register a CAGR of over 30 per cent during 2016-2021. The Electric Lamp and Component Manufacturers Association of India (ELCOMA) shares that the LED market in India is expected to grow to Rs. 216 B by 2020. This leap will result in the LED market accounting for about 60 per cent of India’s total lighting industry (approx. Rs. 376 B) in 2020.” The key factors that are leading to a boost in the lighting market includes: 1. Falling LED prices 2. Favourable government initiatives 3. Rising consumer awareness Government Facilitations “Press Information Bureau (PIB) announces, by 2019, 770 million LED bulbs and 35 million LED streetlights will be deployed to replace conventional lights. Under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), 27.3 million LED bulbs have to be distributed to BPL households.
  • 10. 10 Over 2.1 million conventional streetlights have already been replaced with LED streetlights across the country, under the Street Lighting National Programme (SLNP). Energy Efficiency Services Limited (EESL), a public energy services company under the administration of the Ministry of Power, government of India (GoI) is the implementing agency for SLNP.” Challenges There exists lot of challenges in Indian market for consumer electronics. Several MNC consumer electronics players have entered the country leading to brand proliferation. There is immense pressure to lower price and to speedily introduce new products on the players, due to this high competition. The Indian consumer is price and value sensitive. More than 70 per cent of the population lives in rural areas which are difficult to reach Opportunities “LEDs are versatile products and so can be used for various purposes like residential lighting, downlights, street lighting, monument lighting, signage, traffic signals, industrial lighting, landscaping, office space lighting, automotive lighting etc. Low energy consumption, modular designs, low costs and ease of use have made LED lighting the prime choice in industrial, commercial and domestic applications.” The main 4 demand-generating areas are: 1. Residential lighting 2. Industrial lighting 3. Office space lighting 4. Street lighting
  • 11. 11 PHILLIPS LIGHTING PRODUCT RANGE Phillips offers wide range of bulbs in different shapes, designs, power usage, fittings and features. The following is the range of bulbs offered by Phillips. 1. Stick Shaped – Genie This is a Philips Economy light bulb which the company claims is "value for money" option when one requires a basic energy-saving bulb in a compact design. The companies Lasting up to 6 years, this compact bulb saves up to 80% energy and money. Specifications available: • Power consumption per 1000h: 5W-11W • Socket: B22, E27, E14 caps • Lights: Cool daylight, Warm white • Voltage: 220-240W 2. Spiral Shaped – Tornado Philips Tornado energy-saving bulbs provide bright light and make colors appear more vivid. Due to its compact design, this low-consumption spiral bulb fits nearly everywhere, saving energy and money for up to 10 years. Specifications available: • Power consumption per 1000h: 15W-23W • Sockets: B22,E27 caps • Lights: Cool daylight, warm white • Voltage: 220-240W
  • 12. 12 3. LED Bulb – Round Shaped LED light bulbs help transform the living space with beautiful and warm lights. It offers numerous lighting possibilities and helps in saving up to 90% of energy consumption. The instant brightness of the light is able to create a comfortable environment in your home. Specifications: • Watt: 4W • Socket: B22 • Lights: Cool daylight, warm white TOTAL SALES BY PHILIPS INDIA LIMITED Sales by Lighting solutions to different segments.
  • 13. 13 OBJECTIVES OF RESEARCH 1. Conducting a retail audit. 2. Determining the market share of Philips Light Bulbs with respect to other competitive brands 3. Identifying and analysing the factors influencing consumer purchase decisions. 4. To know the retailer/dealer and consumer awareness and satisfaction level towards the products.
  • 14. 14 RESEARCH METHADOLOGY Data collection: The purpose is to identify the viability and health of Philips and its Light Bulbs. Primary and secondary research will be conducted in Bulandshahr region of U.P. 1. Primary Research Primary research will be conducted to obtain first-hand information on the market and its customers through conducting Retail Audit. The main focus is on the retailers and dealers of the area to gather all the information required. The data is to be acquired through a questionnaire using a survey designed covering all the aspects of research objectives. The purpose to follow primary research is to gather precise and realistic data. 2. Secondary Research Collection of secondary data is always necessary and acts as a perquisite before conducting any research. Therefore, data for the same will be collected from certain public, commercial and internal sources. 3. Sampling Structure: 3.1 Sampling Method – Systematic Sampling 3.2 Sampling Technique – Convenience Sampling 3.3 Sampling Region – Sikandrabad Region of District Bulandshahr 3.4 Sampling Size – 18
  • 15. 15 DATA GATHERING The data has been gathered through frequent visits to the retailers and dealers in the Sikandrabad region of Bulandshahr district. A questionnaire containing 14 questions as shown in the Appendix 1 had been used to find out certain information aligned with the objectives of the research. The shopkeepers were provided with questionnaire to fill but in most cases shop keepers preferred one to one interaction due to their lack of interest in filling the questionnaire and in some cases due inability of shopkeepers to understand the language of questionnaire which was in English. Also, in some cases, due to absence of the owner the data was collected from the workers working in the shop. Once the data had been collected analysis and interpretations on the same had been done.
  • 16. 16 ANALYSIS Question 1 Which brands do you keep in your store? 1. Philips is the most kept light bulb brand by the respondents. Out of 18 respondents 16 kept Philips bulbs in their stores. 0 2 4 6 8 10 12 14 16 18 Philips Syska Bajaj Wipro Havells Osram Surya Eveready Most Kept Brands Company Respondents 1. Philips 16 2. Syska 10 3. Bajaj 12 4. Wipro 4 5. Havells 13 6. Osram 6 7. Surya 10 8. Eveready 0
  • 17. 17 Question 2 Are you aware about Philips LED Bulbs? Awareness (Yes/No) Respondents Yes 18 No 0 Question 3 Which brand customers asks first once they enter the store? Company Respondents 1. Philips 7 2. Syska 3 3. Bajaj 4 4. Wipro 0 5. Havells 3 6. Osram 0 7. Surya 1 8. Eveready 0 0 1 2 3 4 5 6 7 8 Philips Syska Bajaj Wipro Havells Osram Surya Eveready Most Asked Brands Series 1
  • 18. 18 Question 4 What do you feel about the Quality of Philips Light Bulbs? Quality of Philips Bulbs Respondents Very good 3 Good 13 Satisfactory 2 Poor 0 Question 6 What offers are more relished by the customers? Quality of Philips Bulbs Very good Good Satisfactory Poor Offers Relished by customers Cash Discounts 16 Cash Backs 0 Combo Offers 2
  • 19. 19 Question 7 What brand is sold the most? Company Respondents Share 1. Philips 8 44.4% 2. Syska 2 11.1% 3. Bajaj 3 16.6% 4. Wipro 0 0 5. Havells 4 22.2% 6. Osram 0 0 7. Surya 1 5.55% 8. Eveready 0 0 9 1 3 0 4 0 1 0 P H ILIP S S Y S K A BA JA J W IP RO H A VE LLS OS RA M S URY A E VE RE A DY MOST SOLD BRAND Series 1 Column1 Column2
  • 20. 20 Question 9 Factors influencing purchase decisions of customers? Company Quality Price Technology Features Service Philips 14 16 11 13 10 Syska 12 12 13 11 9 Bajaj 6 10 3 8 7 Wipro 5 5 4 10 4 Havells 10 8 10 4 8 Osram 7 2 8 5 1 Surya 8 8 7 5 5 Eveready 0 0 0 0 0 1. Most respondents believed Philips light bulb to be of highest quality which influenced consumers to purchase more of Philips bulbs. 2. Consumer were driven by the technological factor to purchase Syska light bulbs while on the price factor Philips and Syska were on tie. 3. Philips light bulbs seemed to have more features as per the respondents. Question 10 Are you aware about the Philips Smart Bulbs/ Philips Hue? Awareness (Yes/No) Respondents Yes 13 No 5
  • 21. 21 Question 11 How do you think customers will react to the Smart Bulbs? Question 12 What current problems will lead to customers purchasing Smart Bulbs? Current Problems Price Quality Features Post Purchase Service Reaction Respondents Positive 9 Negative 7 Not Sure 2 Current Problems Respondents Price 0 Quality (Life) 8 Features 16 Post Purchase Service 0
  • 22. 22 Question 13 How many brands provide warranties? Company Yes/No Duration 1. Philips Yes 3 Years 2. Syska Yes 2 Years 3. Bajaj Yes 2 Years 4. Wipro Yes 1 Year 5. Havells Yes 1 Year 6. Osram Yes 1 Year 7. Surya Yes 2 Year 8. Eveready Yes 2 Year
  • 23. 23 FINDINGS 1) More than 95% of the respondents kept light bulbs of different brands in their shops. 2) 100% of the respondents were aware of the Philips light bulbs. 3) Quality and Price of the light bulbs are the most important factors influencing the purchase decisions of the customer. 4) Philips is the most asked brand in the region by the customers. 5) Philips is the most sold brand after Havells. 6) 72.22 % of the respondents found the quality of Philips light bulbs to be good. Quality here is in respect to the build quality and life of the product. 7) The customer is the region preferred to get cash discounts than compared to any other offers. 8) 72.22 % respondents are aware of the smart bulbs or Philips Hue offered by the company though most of them are not selling the smart bulbs. 9) The following factors influence the buying decisions of customers of various brands: • Price – Philips is most preferred. • Quality – Philips is most preferred. • Technology – Syska if most preferred. • Features – Philips is most preferred. • Service – Philips is most preferred 10) The main problems found were features since in the region all the bulbs available just provided basic functions. 11) All the companies that the respondents dealt in provided warranties ranging from 1 year to 3 years. Philips provided maximum warranty i.e. of 3 years
  • 24. 24 APPENDIX QUESTIONNAIRE This survey is in respect to the Research Project I have been working upon regarding the Retail Audit of Syska Light Bulbs. I intend to find out the market share, retailer/dealer preference regarding the light bulbs they sell as well as customer preference regarding the light bulbs the purchase. All the information so obtained will be confidential and won’t lead to any monetary benefit. DEALER/RETAILER NAME: CONTACT NUMBER: Questionnaire on Light Bulbs Q1. Which brands do you keep in your store? 1. Phillips 2. Syska 3. Bajaj 4. Wipro 5. Havells 6. Osram 7. Surya 8. Eveready 9. Other_____________ Q2. Are you aware about Philips LED Bulbs? 1. Yes 2. No Q3. Which brand customers asks first once they enter the store? 1. Philips 2. Syska 3. Bajaj 4. Wipro 5. Havells 6. Osram 7. Surya 8. Eveready 9. Other _________ Q4. What do you feel about the Quality of Philips Light Bulbs? 1. Very Good 2. Good 3. Satisfactory 4. Poor Q5. Inventory levels of the bulbs of different brands you keep in your store? Company Inventory Level 9. Philips 10. Syska 11. Bajaj 12. Wipro 13. Havells 14. Osram 15. Surya 16. Eveready 17. Others
  • 25. 25 Q6. What offers are more relished by the customers? 1. Cash Discounts 2. Combo offers 3. Cashbacks 4. Others ______________ Q7. What brand is sold the most? 1. Philips 2. Syska 3. Bajaj 4. Wipro 5. Havells 6. Osram 7. Surya 8. Eveready 9. Other ____________ Q8. Maximum Retail Price of Products offered? Company MRP 9. Philips 10. Syska 11. Bajaj 12. Wipro 13. Havells 14. Osram 15. Surya 16. Eveready 17. Others Q9. Factors influencing purchase decisions of customers? Company Quality (Life) Price Technology Features Service Other Philips Syska Bajaj Wipro Havells Osram Surya Eveready Other Q10. Are you aware about the Philips Smart Bulbs/Philips Hue? 1. Yes 2. No Q11. How do you think customers will react to the Smart Bulbs? 1. Positively 2. Not Sure 3. Negatively
  • 26. 26 Q12. What current problems will lead to customers purchasing Smart Bulbs? 1. Price 2. Quality (Life) 3. Features 4. Post Purchase Service Q13. How many brands provide warranties? Company Yes/No 1. Philips 2. Syska 3. Bajaj 4. Wipro 5. Havells 6. Osram 7. Surya 8. Eveready 9. Others Q14. What are your views regarding the brand Philips? Give suggestions if any… __________________________________________________________________________________ _________________________________________________________________________________ .