philips marketing

7/27/2019 Philips Marketing

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NEW PRODUCT DEVELOPMENT STRATEGY:

Beauty Market Hair Streamer for Professionals

Marketing plan 2010


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Introduction

Created in 1891 by the Philips brothers

In the Netherlands.

Euro-next and NYSE

Generated 26 billion Euros of revenue in 2008.

One of the most important electronics companies in theworld.

- Present in 60 countries

- 162,000 employees

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1.1 Company macro environment

Philips is strongly influenced by several environments:economical, social and technological.

1.2 Market analysis

Geographically: mainly North America and Europe

Business Sectors: Healthcare, Consumer Lifestyle, Lighting

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Sources: Support Manager Philips headquarters


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1.3 Competitive analysis

Direct competitors: other companies that offer electronicdevices such as Samsung, LG, Sony.

Indirect competitors: all companies that respond to similarneeds: Siemens, Braun, automotive industry, Nespresso

Future competitors: Babyliss, Calor, Chinese brands

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1.4 Market Segmentation

So extensive range of products almost everyone can bePhilips potential consumer

Mostly people that care for reliable products

1.5 Existing Marketing Mix

The two main elements are:

Indirect distribution channels

Brand

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1.6 SWOT Annexe 1

Strengths

reliable brand name

innovative products

Weakness

Product responding to consumer needs

very little interaction with consumers

Opportunities

use of internet to provide more services

Threats

fast changing environment

1.7 Positioning Annexe 26


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2.1 Marketing Strategy

In 2010, we will focus on a product development strategy aswe will stay on the same market (beauty) and offer a new

product; hair steamers of high quality.

2.2 Desired Marketing SegmentationOur targets :

- professional hairdressers

- people who buy powerful products

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2.3 Desired Marketing Mix

2.4 Marketing Objectives as result of the SWOT

PRODUCTPhysical

PLACEindirect distribution

channels

PRICE MarCom

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2.5 Position

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P: Philips (2009)

P2: Philips (2010)

C: Calor

Ba: Babyliss

Br: Braun


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Estimated revenue thanks to our products in 2010

Medium price x Number of products sold daily x Number of

open days in a week x Number of weeks per year

225.- x 4 x 6 x 52 = 280 800

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2.6 Yearly sales forcasts


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3.1 Main cooperative bodies

Collaboration with:

Elite Model agency (accessories) Schwarzkopf professional (hair care and styling products)

Huiles & Sens (aromatherapy, essential oils)

3.2 Marketing Current situation in the market

We recommend Philips to continue :Organizing the Simplicity Event to introduce their newproducts and concepts.

Participating to international exhibitions as an example theDesignBrussels.

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3.3 Developing new products and its pricing

Hair steamer with integrated essential oil spraysdesigned for professionals and accessible for a demanding

clientele.

High-end price: 225

Guaranty for 3 years and possible extension (50 per year).

After-sale service 24/7

Innovating pricing system: free trial during 2 weeks and

payment after that if the client is satisfied with the trial.

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3.4 Marketing Activities

1) Product

Foresee various colors and modern design.

Create a detachable and adjustable base.

Innovate thanks to our partnerships : essential oil sprays.

Set-up an after-sale service 24/7

2) Distribution channels

Direct: Hairstylist salons

Indirect: Boutique du coiffeur and wholesalers

3.5 Enhancing service marketing principles

Agents able to speak several languages, to negotiate and to

know very well the product following company training.13


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3.6 GANTT scheme

What Who When Cost Comments

Mailing to

10000 hair

styling salons

Sales

Manager and

4 assistants

6 10 January

2010

1600

4x 10x8hx5d

in the main

cities in the

world

Participation to

the MCB

Mondial coiffureBeaut

Sales and

Marketing

ManagerAnd agents

6-8 November

2010

About 12000

(including fees,

stand, agents,transports,

equipments)

In Paris (9 am

to 7 pm)

telemarketing

2000 calls

10 Salesmen 3-17 February 10x10Ex8hx14d

= 11 200

In the main

cities

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3.7 Marketing yearly budget

Resources UsagesSelf 80% = 89 856 New product

development

40%= 44 928

1+1 2 10% = 11 232 Indirect Marketing 25% = 28 080

Short term loans 10% =11 232 Events 20% = 22 464

Marketing research 5% = 5 616

Unexpected

expenses

10% = 11 232

Total ( 40% x 280 800) 112 320 Total 112 320

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Control committee composed by:- Marketing manager

- R&D manager

- Production manager

- Finance manager/ Accountant

4.2 Control tools

Based on Management by objectives we recommend to rely

on satisfaction surveys and statistical reports.

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4.1 Control Bodies


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4.3 Control by Milestones

For our Marketing plan important days are:

January June December

Hair style week16 21 November

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M.C.B. Paris

6-8 November

Well-being fair

4-8 February

Fashion

week Paris

24-27 June

2010

4.4 Criteria of successTo have a good brand image on the beauty market.

To reach a high level of satisfaction from our clients and toretain high loyalty levels.


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Annexes

That depends on the

company

Annexe 1 SWOT

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Annexe 2 Positioning

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P : Philips ( 2009)

C : Calor

Ba : Babyliss

Br : Braun


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Annexe 3 PHILIPS SURVEY(by Support Manager, Philips headquarters , Amsterdam, Netherlands)

1. What are the political (legal), economical, sociological and technological influences overPhilips company?

Economical: credit crunch smaller turnover, smaller profits,

Sociological: increasing unemployment: smaller turnover, consumer expect product that make

their life easier,

Technological: fast technological changes force Philips to adapt quickly,

Political: Comply with specific rules and standards that are implemented in countries where

Philips is present.

2. Which are the main markets that Philips is part of?

Healthcare, Consumer Lifestyle, Lighting

3. Which are the direct and future competitors of the company?

Direct competitors: other companies that offer electronic devices as Samsung , LG, Sony.Future competitors : mainly Chinese brands

4. Who are the people interested in Philips' products (potential customers)?

Philips offers such an extensive range of products that everyone can be Philips potential

consumer. However brand attracts mostly people that care for reliable products. 20


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5. What are the two most important elements within your Marketing Mix? Why?

All elements of marketing mix are important. Lack of attention to one of the 4Ps may causefailure on the market. In my Business Unit Consumer Marketing Managers (CMM) develop aproduct only after they have checked consumer needs. Moreover, CMM needs to rememberto create product within a given price-cost range to meet consumer expectations. Price thatis visible on the market is negotiated between Marketing Manager and Customer MarketingManger in the relevant country. Promotion packaging and visuals are developed by CMMbut localized locally (there is also possibility to develop some new marketing materialslocally). Price-related promotion is agreed between country and Marketing Managers. As you

see, none of 4Ps has a dominant position.

6. What are the main Strengths, Weaknesses, Opportunities and Threats of Philips?

Strengths reliable brand name, innovative products, shifting from product to services (fromcreating a product to fulfilling consumer needs), know-how.

Weaknesses - developing product that do not respond to consumer needs (sometimes there isno need for the product created by Philips and such a need is also not created), lack or verylittle communication with consumers. Sometimes consumers do not know that a line of

products exist. Finally, there are many procedures that are not flexible enough.Opportunities - use of internet to provide more services.

Threats fast changing environment (organization is too formal to respond to fast changingmarkets).

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7. Can you please rate the position of Philips in connection with the following criteria:

Excellent Good Fair Bad Poor

International presence

Market position (leader, challenger)

Value for money: price

Our ConclusionsOur Conclusions

This interview, that reflects the marketing strategy of this year, had animpact on our marketing plan. Information about markets andcompetitors helped us to focus on consumer lifestyle with the creation ofa hair streamer for professionals. Then, we considered some of Philips

weaknesses and threats. We tried to alter those weaknesses intostrengths and opportunities for the coming year.

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