Post on 29-May-2018
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OCT 09 PTPGPM MDI, GURGAON
A Study on Lighting
IndustryMarketing Management
Prepared By:Roll no 17 - Ashish Ranjan
Roll No 25 Sandip BumtariyaRoll No 33 Dharna Parmar
Roll No 50 Venkat Subramaniam
Roll No 51 Kamal GuptaRoll No 55 Karan BhasinRoll No 57 Kunal Khosla
Submitted On:
3/30/2010
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Contents
Introduction................................................................................................................2
Background................................................................................................................3
Key Products..............................................................................................................3
Market Segmentation & Growth Drivers.....................................................................5
Major Firms.................................................................................................................8
Market Share..............................................................................................................9
Porter Analysis...........................................................................................................9
Nature of Competition..............................................................................................10
Competition Strategy Key Competitor & Phillips....................................................11
Phillips Brand Positioning.......................................................................................13
Phillips - 4 Ps of marketing......................................................................................15
Phillips Innovative Promotions & Products.............................................................17
Phillips Innovative Promotions & Products
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Introduction
Background
The seven decades of the lighting industry in India has been a period of
transition and growth.
The emphasis on the power sector and its phenomenal growth and
distribution laid the foundation for the lighting industry in India.
In the sixties, serious foreign exchange problem in the country encouraged
production of vital lamp components in India.
In the nineties, the government liberalization policies saw international
players in the lighting field participate actively in the Indian market as well as
in exports.
Key Products
Lamps:
Lighting Electronics:
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Luminaires
Automotive & Special Lighting
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Market Segmentation & Growth Drivers
Indian lighting market size ~ 831M in 2009
Consumer Segmentation
Product Segmentation
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Leading Macro Indicators Today (2009-10) Tomorrow
GDP Growth % 4-6% 7-9%
Infrastructural Investments High High
Commercial Construction Weak-Medium Moderate-Hi
Major Firms
Market Share
Porter Analysis
Other Opportunities:
19% of World energy is consumed by Lighting sector.
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Technological advancements keep on happening frequently like LEDs , so they
attract this market
Nature of Competition
Varies from Category to Category
CFL: Tending towards Perfect Competition
But other categories varies b/w oligopoly and perfect competition.
Product closer to heterogenity and differentiated by quality
Price leadership
Competition Strategy Key Competitor & Phillips
Competition was analyzed based on the following criteria:
Business Focus:
Here we looked at the area being focused by the , typically the line of
products that they have.
Market Strengths:
Market strength was analyzed in terms of the area where firm is present and
kind of leads.
Bajaj
Business Focus:
They are present across Lamps, Luminaries and LE.
Market Strength:
Luminaries, especially outdoor segment
Specialized categories like high-mast (~60% share). These are the
luminaries present on highways.
Strong with Municipal Corporations, this helps them get big projects on
highways for luminaries.
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Wipro
Business Focus:
They are present across Lamps & Luminaries. They dont focus on LE.
Market Strength: They have a strong presence in Office Lighting (IT/ITES) segment
They leverage on presence in adjacent spaces like switches, IT,
Furniture, which helps them getting contracts from their B2B
customers for lighting as well.
Quick adaptation of fast moving Products & latest Concepts is the key
area that they focus on.
Crompton
Business Focus:
They are present across Lamps, Luminaries & LE. Market Strength:
Focus on professional trade esp. in southern and western region
Strong foothold in Street light business esp. Municipal Corporations in
Non Metro
Association with EPC contractors for industrial and infrastructure
projects
Havells
Business Focus:
They are present across Lamps, Luminaries and LE.
Market Strength:
Aggressive promotions have helped them gain the share of mind of
consumers. Everyone is aware of Shock laga laga add, which helped
them enter the market with strong positioning.
Establish brand in adjacent categories like switchgear, wires, Fans. So
they can be a preferred choice by the B2B customers because the
customers can get end to end services from the same firm.
They are leveraging Global acquisition that they have over the market.
Surya
Business Focus:
They are present across Lamps, Luminaries and LE.
Market Strength:
Surya is strong in government segment and wholesale as a whole
They also have strong focus on exports.
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They also enjoy the cost leadership in commodity products
Halonix
Business Focus:
Halonix is the largest manufacturer of Halogen & CFL lamps in India.
Market Strength:
Halonix is established brand in Automotive Lamps esp. Halogen Lamps
Their major focus has been to establish long-term professional
relationship with Private Labels across the globe.
Phillips The Market Leader
In terms of market share which we discussed previously, nearest competitor
i.e Bajaj is 1/4th of Philips. This clearly indicates that Phillips has the clear cut
leadership in the market followed by its strongest competitor who has only1/4th of market share of Phillips.
Philips sets benchmark in industry. Phillips brings innovative products in the
market. Also, once it sets price for a product, no one can price higher than
that in the market.
Nobody is a identified Challenger, everybody is a follower.
Niche segment is also dominated by Philips. Niche segment is the premium
segment we are talking about. For e.g. mood changing lights and the
expensive/exclusive table lamps.
For getting an idea about the competitor strategy, Philips conducts survey
monitoring their Retail and Financial credentials on quarterly basis. This givesthe data about Phillips as well as its competitors, and helps Phillips to be the
leader in market.
Phillips Brand Positioning
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Phillips - 4 Ps of marketing
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Phillips Innovative Promotions & Products
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