A presentation on RURAL MARKETING PRESENTED BY: GROUP NO. 8

DHRUV GUPTA (13DM066)

NAKUL YADAV (13DM110)

SHRUTI MITTAL (13DM180)

SIDDHARTH PILLAI (13DM184)

SOUMYA DEEP CHATTERJEE (13DM188)

UDIT JAIN (13DM206)

ROHIT VERMA (13DM227)

History Koninklijke Philips N.V. (Royal Philips, commonly known as Philips) is a Dutch diversified

technology company, founded in Eindhoven in 1891, headquartered in Amsterdam with

primary divisions focused in the areas of Healthcare, Consumer Lifestyle and Lighting and

employs around 122,000 people across more than 60 countries.

Philips India Ltd.

Organized in three main divisions: Philips consumer lifestyle, Healthcare and Lighting.

Philips started operations in India at Kolkata (Calcutta) in 1930, converted into a public limited

company & renamed “Philips India Ltd”in 1957

Introduced audio tape cassette, compact discs,flourocent lamps, flat televisions etc.

Brought color television transmission to India 1982

Introduced compact fluorescent lamps into the country in 1995

Launched Flat Televisions and CD-recorders – both firsts in India 1998

Current status( 2012-13)

Turnover of 24.78 billion euros

Profit of 226 million euros

Brand value of 9.8 million us dollars

Recorded 3% comparable sales growth (1% nominal decline)

Healthcare sales grew 1%, mainly driven by Customer Services. Lighting sales were 3% above 2012.

Sales at Consumer Lifestyle were 10% above 2012, with double-digit growth at Domestic Appliances and high-single-digit growth at Personal Care and Health & Wellness.

Current Status ( Contd.)

India alone contributes about 2.5 per cent of Philips.

More than 55 per cent of the company’s business comes from lighting, where as, globally, it earns just 34 per cent from the segment

The overall contribution of the health care business is estimated at around 18 per cent.

Philips currently commands over 25 per cent of the estimated Rs. 2,500-crore kitchen appliances market in India.

Recent trends

Dynamic lighting- brings the dynamics of daylight indoors to create a stimulating natural ambience that energizes bodies and rejuvenates minds.

Switching to greener alternatives

Rural footprint

Rural consumption per person is said to have increased by 19% yearly between 2009 and

2012

Launched products in various categories

Consumer Electronics: Powerless Radio , Vardaan ( Low priced CTV range)

Domestic Appliances: Smokeless Chulha, Water purifiers

Lighting products: under the Philips Sustainable Model in Lighting Everywhere (SMILE)range, the first products launched were

Uday- a rechargeable portable lantern

Kiran- a hand-cranked LED flashlight.

Health Care

Catered into services like Automated Colposcopy and Mobile Obsteric Monitoring.

Pioneered a public private DISHA Project in order to deliver affordable healthcare to poverty-

stricken villages in rural India along with contributions from ISRO,Apollo hospitals and Dhan (NGO)

Rural strategy Strategy of focusing on the concept of India and Bharat.

The company is looking at product innovations to address specific needs of rural consumers and gain a stronger foothold.

As the company doesn’t have distribution network in these areas, it entered into partnerships with organizations such MarkFed to market products there. “MarkFed is a nodal body that represents about 400 agricultural co-operative societies across the country.

Tied up with various NGO’s and Self Help groups to attain better accessibility in the rural market

Products are currently being sold in rural India mostly through wholesale channel.

Make new products available to rural consumers at affordable prices. It's not that rural India cannot buy expensive products. But, it's about giving them a product they want to buy.

Product Range

Philips

LightingConsumer

Lifestyle

Consumer Electronics

Domestic Appliances

Personal Care

Health Care

Rural Product range

Philips

Lighting (SMILE)

Uday: Solar and Battery Lanterns

Kiran: LED Flashlight

Solar Street Light

Consumer lifestyle

Consumer Electronics

Domestic Appliances

Personal Care

Health Care

Disha

Asha Jyoti

Automated Colposcopy

Mobile Obstetric Monitoring

Powerless Radio,

Vardaan

Smokeless Chulha,

Water Purifier

Rural Product range - Modifications

Created Brand Vardhan specifically in color TV range.

Customised TVs to work on voltage range of 90-270 volts. (Hence

eliminates the need for a voltage stabilisers)

Rural Pricing strategy

For each segment, Philips is trying to redefine the market.

Very Low and Affordable Prices

No Differential Pricing unlike the Urban Markets

Introduced a portable CD system at an affordable price of USD 83

Rural distribution

Overall distribution

Manufacturer

Distributor

(Wholesaler)

Dealer

(Retailer)

Subdealer(s)

Manufacturer

Dealer

(Retailer)

Subdealer(s)

[Connected with MIS]

After

1991

Rural distribution

Rural distribution

Manufacturer

PPPNGOLocal

EntrepreneursSelf Helped

GroupsDirect Sales

Rural distribution (Cont.)

The connection

Manufacturer’s

Management Information

System

(MIS)

Self Helped Groups

Dealers

(Retailers and Sub Dealers)

Direct Sales

NGO

Rural promotion

Philips Electronic Entertainment

'Philips Super Shows'

“Enga veettu Superstar!”

Extensive Van operations

E-choupal

Philips Mahasangram Integrated Marketing Programme

"Lighting a Billion Lives" initiative

Inclusive intent

Philanthropy by design

Chulha

SMILE

Asha Jyoti

DISHA

Key Learnings

Companies moving from India to Bharat

Bharat a center of attraction for companies

Inclusive Marketing

4 Ps to 4 As

Aspirations of rural India

Problems in rural India and efforts to solve them