philips india rural marketing
TRANSCRIPT
PHILIPS INDIA LTD. In Rural India
Abstract Insights of company history in Indian market, focusing on its forte into rural India, products launched to cater the needs of bottom of pyramid and marketing campaigns to spread awareness about them.
Submitted To:
Prof. Kuldeep Sharma
Submitted By: Group no. 8 Dhruv Gupta (13DM)
Nakul Yadav (13DM110) Shruti Mittal (13DM180)
Siddharth Pillai (13DM184) Soumya deep Chaterjee (13DM188)
Udit Jain (13DM206) Rohit Verma (13DM227)
Philips India Ltd.
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Table of Contents
Philips India Ltd. ............................................................................................................................................ 2
About the company .................................................................................................................................. 2
Philips Growth Strategy in India................................................................................................................ 2
History ....................................................................................................................................................... 3
Rural market initiatives of Philips India Ltd. ................................................................................................. 4
Lighting Product Category ......................................................................................................................... 4
Solar Lighting ......................................................................................................................................... 5
Consumer Lifestyle Product Category....................................................................................................... 5
Consumer Electronics ........................................................................................................................... 5
Domestic Appliances ............................................................................................................................. 6
Healthcare Product Category .................................................................................................................... 7
DISHA .................................................................................................................................................... 7
Asha Jyoti .............................................................................................................................................. 7
Automated Colposcopy ......................................................................................................................... 8
Mobile Obstetric Monitoring (MOM) ................................................................................................... 8
Rural Distribution .......................................................................................................................................... 8
References .................................................................................................................................................... 9
Lighting ...................................................................................................................................................... 9
Consumer Lifestyle .................................................................................................................................... 9
Healthcare ............................................................................................................................................... 10
Philips India Ltd.
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Philips India Ltd.
About the company
Philips India Limited is a subsidiary of Royal Philips of the Netherlands, a diversified technology company
which has seven manufacturing sites at various locations in India and a world class innovation campus
and research and development center in Bangalore contributing to over 20 per cent of Philips’ global
resources for high-tech R&D and software development.
It focus on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer
Lifestyle and Lighting.
Philips Growth Strategy in India
Company has developed products and services based on consumer needs. Instead of bringing
‘European’ products to Indian consumer. Philips has succeeded by recognizing different cultural and
lifestyle needs and customizing products and technologies for the people who buy them. For example,
when the audio equipment worldwide shifted to CD systems, Philips India developed a combined tape
recorder and CD player since both media were prevalent in the country.
Philips
Lighting Consumer lifestyle
Consumer Electronics
Domestic Appliances
Personal Care
health care
Philips India Ltd.
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History
1930• Philips started operations in India at Kolkata (Calcutta)
1938• set up its first Indian lamp-manufacturing factory in 1938 in Kolkata
1948• started manufacturing radios in Kolkata
1957• converted into a public limited company, renamed “Philips India Ltd
1959• second radio factory is established near Pune
1963
• invents the compact audio tape cassette and sets a global standard for tape recording
1965
• millionth Philips radio is manufactured in India, concept of son-et-lumiere shows at Red Fort, Delhi
1970• new consumer electronics factory is started in Pimpri near Pune
1982• brings colour television transmission to India
1983• launches the Compact Disc and revolutionizes the way the world listens to music
1995• introduces compact fluorescent lamps into the country
1996• Philips Software Centre is established in Bangalore
1998• launches Flat Televisions and CD-recorders – both firsts in India
Philips India Ltd.
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Rural market initiatives of Philips India Ltd.
Philips India is focusing on rural India since Philips has decided to take care of the undeveloped areas of
world, especially under developed countries and Semi-urban and rural areas of Developing Countries.
In accordance with the initiatives of parent company, Philips India has taken various initiatives in
collaboration with other companies, NGOs and self-help groups across rural India. It has tried and
succeeded to provide products in all categories, specific to requirements of under-developed parts of
country and suitable for their pockets.
Lighting Product Category
Philips has started a campaign named as ‘Sustainable Model in Lighting Everywhere’ (SMILE), which
advocates the right of lighting of every individual and has developed products to support that.
The first two SMILE products were:
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
Philips India Ltd.
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UDAY: a rechargeable portable lantern
KIRAN: a hand-cranked LED flashlight
Solar Lighting The advanced lighting solution will manage effective conversion of solar energy absorbed during the day
and effective harvesting back from the battery. With India receiving solar energy equivalent to more
than 5,000 trillion KWh per year 1, use of solar lighting solutions can result in massive energy savings
that will in turn reduce the impact on the environment.
There were several products of such type launched by company, which includes solar enabled lanterns
and most recent solar enabled street lights.
Philips Electronics India, is currently executing a project for installing 19,000 solar LED street lights in
Tamil Nadu in association with Tata Power Solar and Su-kam. The company will export solar LED street
lights, which it has developed in India, to neighboring nations within next one year.
Consumer Lifestyle Product Category
Philips has transformed many lives by offering proposition which was unimagined, easy to use and
handy which was within the range of common man also.
It revolutionized ways of solving problems and developed solutions to cater unstated and stated needs
of both Urban and rural India.
Consumer Electronics
In year 2002, Philips India Launched an Integrated marketing communication plan named as
Mahasangram, in order to launch certain products especially for the rural India and to capture the
untapped market.
It launched a powerless radio that requires one-minute of winding to work. One does not need batteries
or electricity for this product as it converts mechanical energy into electrical energy.
It drive CDs into rural markets with its portable CD player priced competitively at ₹ 3,990 as it felt that
increasingly people were beginning to use CDs as their prices had dropped to as low as ₹ 100.
It also developed a color television set that detects poor signals and boosts them to deliver better
picture. That is because most people in far-flung rural areas had to put up with poor signal reception.
In year 2004, company decided to rule rural market by revising prices of its leaderboard product CTV
category, Vardaan, which accounted 60% of the company’s CTV sales in 2004. Company also understood
the aspirations of people of rural India and offered Home theatres and DVD players at lower rates.
Philips India Ltd.
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Domestic Appliances
Smokeless Chulha
Respiratory illness affects the health of the huge number of people living in developing societies who
still cook indoors with biomass fuels (e.g. wood or dung). In fact, it is estimated that over 1.6 million
people die as a result each year. India in particular is badly affected, accounting for 25% of such
fatalities. The company came up with a unique solution named as Smokeless Chulha.
The story of the Chulha effectively began in September 2005, when the Philips Design global community
came together in Eindhoven for a workshop entitled ‘A Sustainable Design Vision – Design for Sense &
Simplicity’. The event aimed at envisioning products and services able to support NGOs in relieving the
suffering of people in emergencies (e.g. earthquakes) or enhancing individual empowerment and local
communities’ socio-economic development. Approximately 80 design ideas emerged. After the
workshop, these were filtered by criteria such as compliance with Philips corporate strategy, social
investment policy alignment, technological feasibility and Millennium Development Goals fit. In the end,
the proposal deemed most appropriate was a smokeless wood-burning stove, initially intended for rural
and semi-urban India. The idea was the best chance of helping the socially disadvantaged through
leveraging their expertise and capabilities without involving sophisticated and expensive technologies.
Over the course of a five-month period, a three-person design team from Philips Design Pune turned the
initial design idea into two, field-tested prototypes. This was a collaborative effort involving local NGOs,
entrepreneurs, self-help groups and a few families. Particularly fruitful was the cooperation with ARTI
(Appropriate Rural Technology Institute), an NGO which develops and promotes innovative technologies
to improve the quality of life in rural India.
There are two versions of the Chulha smokeless stove; Sampoorna and Saral.
The Sampoorna is an all-in-one unit intended for cooking/boiling with an integrated steamer for
preparing rice, lentils etc. The Saral is a modular system which has a basic cooking block and which
allows the addition of various other blocks for e.g. extra pots, steaming, or a ‘hot box’ for keeping food
warm or heating it up. Both stove types are made of concrete and coated with local clay. It has been
estimated that, compared to traditional cooking fires, the Sampoorna and Saral reduce indoor smoke
pollution by up to 90%. The Sampoorna will cost roughly around ₹ 600 and the Saral around ₹ 400.
The stove is simple to use and maintain, locally produced and distributed, relatively cheap, easily made,
and able to significantly reduce indoor pollution. But the main problem it has solved is of removing any
sort of smoke inhalation by the family and thus saving millions of people from smoking deadly smoke.
Water Purifier
Philips, had launched UV water purifiers in 2006-07, but stopped selling the product in India anymore.
Philips had introduced the product at ₹ 8,500 and later reduced it to ₹ 6,995, but lower-priced water
purifiers by competitors in the price-sensitive market have made it very difficult for Philips to sustain.
Philips India Ltd.
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Company can still re-enter the market by developing some low cost product like TATA Swatch.
Healthcare Product Category
DISHA Philips India, the Indian Space Research Organization (ISRO), Apollo Telemedicine Networking
Foundation (ATNF) and Development of Humane Action (DHAN), a Madurai based NGO are jointly
involved in DISHA (Distance Healthcare Advancement) - a project aimed at meeting the healthcare
needs of the less privileged in India. Each is a strategic partner in the project bringing their unique
capabilities to deliver the Project's aims.
DISHA, a telemedicine initiative is a business plan conceived by Philips India for providing distance
healthcare to the underserved people at the base of the economic pyramid.
Philips India has custom-built a tele-clinical van complete with diagnostic equipment, including an
ultrasound machine, X-ray machine, a defibrillator and an ECG machine. This van with dedicated doctors
and other para-medical staff will operate in the rural areas.
ISRO is providing the connectivity through VSAT and allocating the required bandwidth on its INSAT
satellite free of cost.
Apollo Telemedicine Network Foundation (ATNF) with 76 telemedicine centers including 5 overseas has
today emerged as the single largest Telemedicine solution provider in India.
DHAN Foundation provides the vital link to the local community and will play a key role in community
participation for the project. DHAN will provide counseling (through domiciliary follow-ups) to the
patients on nutrition and hygiene. They will train volunteers from the villages to motivate and play an
active role in counseling. This will enable the villagers to directly participate in the implementation of
the project.
Asha Jyoti Asha Jyoti (meaning “Light of Hope” in Hindi and Punjabi), is a Women's Healthcare Outreach Mobile
program which was launched on 22 April 2012 at the Postgraduate Institute of Medical Education and
Research (PGIMER), Chandigarh. It is a population-based screening program of women aged between 40
and 60 years, which aims to ensure early detection of breast cancer, cervical cancer and osteoporosis,
even before the individual has any signs or symptoms. It was established as a model for preventive
healthcare for semi-urban and rural areas in northern India and involved the creation of a special mobile
outreach van with imaging technology and clinical referral services to efficiently and effectively address
multiple care needs. All women who visited the van received results from their tests within 7 to 10 days.
The project works on a collaboration, which is a unique public-private partnership between government
(PGIMER) entities, non-profit non-governmental organization (RAD-AID) and the private sector (Philips
Philips India Ltd.
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Healthcare). To make the Asha Jyoti program work, PGIMER delivers the clinical services, RAD-AID is
providing educational training and program planning support to health workers and staff and Philips has
donated all the equipment and also donated the entire van which was designed and built in India with
local suppliers.
Automated Colposcopy Philips is developing the next generation of colposcopes – a device used to detect pre-cancer and cancer
in the cervix. By incorporating advanced image-processing algorithms and an improved user interface,
the goal is to make it easier for less-experienced clinicians to use, and to interpret clinical findings.
With more clinicians being able to reliably perform this test, the aim is to improve access to early
detection and hence effective treatment of cervical cancer for women in India, and other developing
countries.
Mobile Obstetric Monitoring (MOM)
Connecting expectant mothers and care professionals in remote, rural areas to healthcare resources through mobile technology, aiming to reduce maternal mortality. The MoM concept uses a smartphone app to enable care workers in rural areas to benefit from city healthcare expertise. Using an app, a midwife registers personal information and vital parameters from the expectant mother during antenatal checkups. This information is then securely sent to the primary healthcare center, which will allow the doctor to view the information remotely and flag up any irregularities, advising local care professionals about follow-up care and possible referrals, if necessary. Philips started the MoM research project in Bangalore, India, building a smartphone app and server to aid community health workers or midwives. Further research followed, in collaboration with the primary healthcare center in Suttur near Mysore, to improve the solution and assess the usability. Currently, a pilot project in partnership with Bundamedik hospital group is underway.
Rural Distribution
Manufacturer
PPPsNGOsLocal
EntrepreneursSelf Helped
GroupsDirect Sales
Philips India Ltd.
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References
Lighting
http://knowledge.wharton.upenn.edu/article/from-chulhas-to-defibrillators-can-philips-india-
be-all-things-to-all-people/
http://www.hindustantimes.com/business-news/utilitybytes/philips-set-to-go-rural-with-solar-
products/article1-391540.aspx
http://www.dnaindia.com/money/report-philips-goes-rural-with-lanterns-cooking-stoves-
1242313
http://www.newscenter.philips.com/in_en/standard/about/news/press/pressinformation_2011
-03-26_lighting.wpd#.VHeHrdKUeS8
http://articles.economictimes.indiatimes.com/2012-10-02/news/34218016_1_street-lights-
solar-panel-and-battery-tata-power-solar
Consumer Lifestyle
http://www.afaqs.com/news/story/4534_Philips-to-launch-Mahasangram-to-reach-rural-
markets
http://www.business-standard.com/article/companies/vardaan-proves-a-boon-for-philips-
bolsters-sales-25-104060401086_1.html
http://www.design.philips.com/about/design/designnews/newvaluebydesign/helping400million
_people_give_up_smoking.page
http://www.thehindu.com/todays-paper/tp-business/philips-launches-water-
purifiers/article1836970.ece
Design for all, A co-design experience in rural India for healthy indoor cooking ; Rocchi Simona
and Kusume Yasushi
Philanthropy by Design, Promoting social empowerment through knowledge sharing, creativity
and co-design ; Philips
Chulha, healthy indoor cooking, Philanthropy by Design ; Philips
Philips India Ltd.
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Healthcare
http://www.newscenter.philips.com/main/standard/about/news/press/archive/2005/article-
15053.wpd
http://www.thehindubusinessline.com/industry-and-economy/info-tech/philips-to-develop-
more-lowcost-healthcare-products-for-villagers/article3480507.ece
http://www.newscenter.philips.com/main/healthcare/news/press/2012/20121029-pgimer-rad-
aid-and-philips.wpd#.VHhJXtKUeS8
http://www.newscenter.philips.com/main/design/news/backgrounders/inside-innovation-
automated-colposcopy.wpd#.VHhJfNKUeS8
Philips Mobile Obstetric Monitoring Pilot, Philips inside innovation
Password, Philips Research technology magazine - issue 25 - November 2005