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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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