Philips Marketing

NEW PRODUCT DEVELOPMENT STRATEGY: Beauty Market Hair Streamer for Professionals Marketing plan 2010
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 the world. - Present in 60 countries - 162,000 employees
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
Sources: Support Manager Philips headquarters 3
1.3 Competitive analysis

Direct competitors: other companies that offer electronic devices such as Samsung, LG, Sony. Indirect competitors: all companies that respond to similar needs: Siemens, Braun, automotive industry, Nespresso Future competitors: Babyliss, Calor, Chinese brands
1.4 Market Segmentation

So extensive range of products almost everyone can be Philips potential consumer Mostly people that care for reliable products
1.5 Existing Marketing Mix

The two main elements are: Indirect distribution channels Brand
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 2

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2.1 Marketing Strategy

In 2010, we will focus on a product development strategy as we will stay on the same market (beauty) and offer a new product; hair steamers of high quality.
2.2 Desired Marketing Segmentation

Our targets : - professional hairdressers - people who buy powerful products
2.3 Desired Marketing Mix

PRODUCT
Physical indirect distribution channels
PLACE
PRICE
MarCom
2.4 Marketing Objectives as result of the SWOT
2.5 Position
P: Philips (2009) P2: Philips (2010) C: Calor Ba: Babyliss Br: Braun
2.6 Yearly sales forcasts

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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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 new products and concepts. Participating to international exhibitions as an example the DesignBrussels.
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3.3 Developing new products and its pricing

Hair steamer with integrated essential oil sprays designed 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.
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3.6 GANTT scheme

What Mailing to 10000 hair styling salons Participation to the MCB Mondial coiffure Beaut telemarketing 2000 calls Who Sales Manager and 4 assistants Sales and Marketing Manager And agents 10 Salesmen When 6 10 January 2010 6-8 November 2010 Cost 1600 4x 10x8hx5d Comments in the main cities in the world
About 12000 In Paris (9 am (including fees, to 7 pm) stand, agents, transports, equipments) 10x10Ex8hx14d In the main = 11 200 cities
3-17 February
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3.7 Marketing yearly budget

Resources Self Usages 80% = 89 856 New product development 10% = 11 232 Indirect Marketing 10% =11 232 Events Marketing research Unexpected expenses Total ( 40% x 280 800) 112 320 Total 40%= 44 928
1+1 2 Short term loans
25% = 28 080 20% = 22 464 5% = 5 616 10% = 11 232 112 320
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4.1 Control Bodies

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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4.3 Control by Milestones For our Marketing plan important days are:
2010
January Well-being fair 4-8 February June Fashion week Paris 24-27 June December
Hair style week 16 21 November M.C.B. Paris 6-8 November
4.4 Criteria of success
To have a good brand image on the beauty market. To reach a high level of satisfaction from our clients and to retain high loyalty levels.
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Annexes
Annexe 1 SWOT
That depends on the company
BACK
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Annexe 2 Positioning
P : Philips ( 2009) C : Calor Ba : Babyliss Br : Braun
BACK
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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 over Philips 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.
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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 cause failure on the market. In my Business Unit Consumer Marketing Managers (CMM) develop a product only after they have checked consumer needs. Moreover, CMM needs to remember to create product within a given price-cost range to meet consumer expectations. Price that is visible on the market is negotiated between Marketing Manager and Customer Marketing Manger in the relevant country. Promotion packaging and visuals are developed by CMM but localized locally (there is also possibility to develop some new marketing materials locally). 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 (from creating a product to fulfilling consumer needs), know-how. Weaknesses - developing product that do not respond to consumer needs (sometimes there is no need for the product created by Philips and such a need is also not created), lack or very little 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 changing markets).
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7. Can you please rate the position of Philips in connection with the following criteria: International presence Market position (leader, challenger) Value for money: price Excellent Good Fair Bad Poor
Our Conclusions
This interview, that reflects the marketing strategy of this year, had an impact on our marketing plan. Information about markets and competitors helped us to focus on consumer lifestyle with the creation of a hair streamer for professionals. Then, we considered some of Philips weaknesses and threats. We tried to alter those weaknesses into strengths and opportunities for the coming year.
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Philips Marketing

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What are the main markets that Philips is part of?

What are the main markets that Philips is part of?

Which are the direct and future competitors of the company?

Which are the direct and future competitors of the company?

NEW PRODUCT DEVELOPMENT STRATEGY: Beauty Market Hair Streamer for Professionals Marketing plan 2010

1.1 Company macro environment

1.2 Market analysis

Sources: Support Manager Philips headquarters 3

1.3 Competitive analysis

1.4 Market Segmentation

1.5 Existing Marketing Mix

1.6 SWOT Annexe 1

1.7 Positioning Annexe 2

2.1 Marketing Strategy

2.2 Desired Marketing Segmentation

2.3 Desired Marketing Mix

2.4 Marketing Objectives as result of the SWOT

2.6 Yearly sales forcasts

3.1 Main cooperative bodies

3.2 Marketing Current situation in the market

3.3 Developing new products and its pricing

3.4 Marketing Activities

3.5 Enhancing service marketing principles

3.6 GANTT scheme

3.7 Marketing yearly budget

1+1 2 Short term loans

25% = 28 080 20% = 22 464 5% = 5 616 10% = 11 232 112 320

4.1 Control Bodies

4.2 Control tools

Hair style week 16 21 November M.C.B. Paris 6-8 November

4.4 Criteria of success

That depends on the company

Annexe 3 PHILIPS SURVEY

(by Support Manager, Philips headquarters , Amsterdam, Netherlands)

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