Professional Documents
Culture Documents
By
Vineeth Vijayan
CB.BU.P2MBA13097
A Report Submitted in Partial Fulfilment of the requirements of
MBA program, class of 2012-2014
Amrita School of Business
Professor, Marketing
Page 1
DECLARATION
I, Vineeth Vijayan of IInd year MBA Amrita School of Business, Amrita Vishwa Vidyapeetham hereby
declare the project titled Market Research on the Visibility of TLED lamp in Industry segment is done by
me under the guidance of Dr. Shrikant G. Kulkarni, Professor, Faculty of Management, Amrita Vishwa
Vidyapeetham & Mr. Navaneet Sunu, Area Sales Manager, TN South and Kerala, Philips Lightings,
Chennai during April, May and June 2014.
I also declare that this project has not been submitted for the award of any degree, diploma, literature or
recognition earlier.
Coimbatore
28th June 2014
Vineeth Vijayan
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ACKNOWLEDGEMENT
I wish to record my sincere gratitude to Philips for giving me the opportunity to do my Summer Internship
with them and thereby gain immense knowledge and hands on experience in various fields related to
Lighting Industry.
I would like to thank Mr. Sridhar Tangirala, Regional Marketing Manager, Philips, Chennai and Mr.
Navaneet Sunu, Area Sales Manager, TN South and Kerala, Philips Lightings,, Philips, Chennai for his
guidance & support during the project.
This project would not have been possible without the guidance and support of my faculty guide Prof.
Shrikant G. Kulkarni, Amrita School of Business, Coimbatore. I thank him for his guidance and for
making this project a wonderful learning experience.
I would like to thank every staff of Philips who has made this learning experience fun and memorable.
I extend my heartfelt thanks to my parents and friends for their never ending support and encouragement.
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Executive Summary
Introduction
Philips is a Dutch Multinational engineering and electronics conglomerate headquartered in Amsterdam. It
is one of the largest electronics companies in the world and employs around 122,000 people across more
than 60 countries. Philips is organized into three main divisions: Philips Consumer Lifestyle (formerly
Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Healthcare
(formerly Philips Medical Systems) and Philips Lighting. As of 2012 Philips was the largest manufacturer
of lighting in the world measured by applicable revenues.
The Philips Lighting division have several different products ranging from CFL's to LED's. The present
electricity shortage and the frequent outages have pushed the industries to seek more power saving
products and to focus on long term prospects keeping in purview the reduced maintenance cost. Focusing
on the replacement or new installation market my project is trying to find out the ways of improving the
visibility of the TLED lamps and creating visibility for Philips Save with Lighting application in Android
Market.
Project Title
1. Visibility for TLED Lamp in Industry Segment and creating visibility for Philips Save with
Lighting application.
2. Mapping Segment wise replacement lighting potential for LEDs & Occuswitch Controls in B2B
segments across South Region leveraging CFG App (Change for Good App).
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and where artificial light is used to enhance the human experience. LED lighting uses less energy than most
other lamps, lasts longer and requires less frequent replacement.
High Potential Low share industries were identified in the North Kerala Region namely 3 districts Cannore,
Calicut and Mallapuram. Expert interview was conducted with the Electrical department in-charges of
various Industries and a interview .
During the course of the project coordinated a Marketing event for LED products and was part of a Market
Blitz activity to tap HPLS (High Potential Low Share) clients.
Key findings
North Kerala region has lot of potential clients but are not tapped. There are many Local players in North
Kerala region that tap these potential clients and gain share in the Kerala market. There are very less
Channel partners in the North Kerala region due to this there is major untapped segment.
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Table of Contents
Chapter 1.........................................................................................................................................................................7
Introduction to the project ............................................................................................................................................7
1.1 Purpose of the Project ..........................................................................................................................................8
1.2 Description of the Project ...................................................................................................................................8
1.3 Scope of the Project.............................................................................................................................................9
1.4 Objectives of the Project .....................................................................................................................................9
1.5 Methodology .......................................................................................................................................................9
Chapter 2.......................................................................................................................................................................11
Industrial analysis .........................................................................................................................................................11
2.1 Lighting Industry .................................................................................................................................................12
2.1.1 LED Technology ............................................................................................................................................13
Chapter 3.......................................................................................................................................................................14
Product Analysis ...........................................................................................................................................................14
3.1 TLED Lamps .........................................................................................................................................................15
Chapter 4.......................................................................................................................................................................16
Research Design............................................................................................................................................................16
4.1 Research Design..................................................................................................................................................17
4.2 Exploratory Research..........................................................................................................................................17
4.2.1 Secondary Research.....................................................................................................................................17
4.2.2 Expert Interviews .........................................................................................................................................19
4.3 Descriptive Research ..........................................................................................................................................20
Chapter 5.......................................................................................................................................................................23
Save With Lighting App ................................................................................................................................................23
Chapter 6.......................................................................................................................................................................25
Recommendations........................................................................................................................................................25
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Chapter 1
Introduction to the project
Page 7
Philips is organized into three main divisions: Philips Consumer Lifestyle (formerly Philips
Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Healthcare
(formerly Philips Medical Systems) and Philips Lighting. As of 2012 Philips was the largest
manufacturer of lighting in the world measured by applicable revenues.
Power Production for the world is right now being produced by using Natural resources which are
on the verge of depletion. Many methods of electricity production uses harmful and hazardous raw
materials such as Nuclear reactors, Coal Burning, Lignite Burning..etc. Although new and advanced
methods of power production like Solar, Hydro..etc are present their initial investments are high
and requires careful planning and ample spaces. Power produced by these methods are sold to
governments and other states at higher rates.
In these times the usage of low power consumption, highly efficient LED's comes as a life saver for
many organizations and offices. As part of the Philips team we created an awareness about LED
products and its uses with B2B segments using the Save with Lighting Application. We spoke with
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many organizations about their existing lighting power consumption by CFL's and created
awareness of the expected lighting power consumption if they change to LED's.
1. To understand the current lighting power consumption of B2B segment customers (across
Industries, Hospitals, Hotels, Retail and Office Segments).
2. To find potential customers those who are interested to change to LED lightings.
4. To know the visibility of Philips LED products in North Kerala Region (Cannore, Calicut
and Mallapuram)
1.5 Methodology
The Project began in the Exploratory Phase that comprised or Secondary Data, Expert Interviews
with Philips personnel and Expert Interviews with Customers. The information obtained for the
Exploratory Phase led to the formation of a Questionnaire used to obtain information about the visibility of
TLEDs among customers in B2B segments.
Page 9
Descriptive Research (Customer Survey) was initiated with Customers of B2B segments. The survey
involved questions about the working of the company and finding out the key decision makers of the
various B2B segments.
Page 10
Chapter 2
Industrial analysis
Page 11
Philips Lighting is a leading provider of solutions and applications for both professional and consumer
markets. Around 40 per cent of Philips revenue in India comes from the lighting business. Philips
addresses lighting needs in a full range of environments indoors (homes, shops, offices, schools, hotels,
factories, and hospitals) as well as outdoors (public places, residential areas and sports arenas) also meets
peoples needs on the road, by providing safe lighting in traffic (car lighting and street lighting).
In addition, Philips delivers light-inspired experiences through architectural and city beautification
projects. Philips lighting is also used for specific applications, including horticulture, refrigeration lighting
and signage, as well as heating, air and water purification, and healthcare.
Philips provides advanced energy-efficient solutions for all segments: road lighting, office &
industrial, hospitality and home. Philips is also a leader in shaping the future with exciting new lighting
applications and technologies such as LED technology, which, besides energy efficiency.
Philips India is working with industry bodies such as ELCOMA, Bureau of energy efficiency and
NGOs towards addressing Indias power crisis through promotion of energy efficient lighting in India. As a
part of this Philips has introduced new Energy Efficient LED Lights that will help address the current
Indian power crisis.
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Recent developments in LEDs permit them to be used in environmental and task lighting. LEDs have many
advantages over incandescent light sources including lower energy consumption, longer lifetime, improved
physical robustness, smaller size, and faster switching. Light-emitting diodes are now used in applications
as diverse as aviation lighting, automotive headlamps, advertising, general, traffic signals, and camera
flashes. However, LEDs powerful enough for room lighting are still relatively expensive, and require more
precise current and heat management than compact fluorescent lamp sources of comparable output.
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Chapter 3
Product Analysis
Page 14
TLED can be used in retail, hospitals, parking lots, warehouses, schools, offices, public areas and in
industry. For an industry with 10 hours working industry the payback period is 36 months and for a 24
hours working industry its 17 months.
TLED Essential is an affrdable LED solution. The energy saving feature reduces energy costs by a great
margin. Longer lifetime of the product minimizes the re-lamping costs for reduced maintenance cost. As no
mercury is involved in the product there is no hazard to the environment.
TECHNICAL SPECIFICATION
Product Specification
Wattage
(W)
FTL
(W)
Voltage
(V)
Beam Angle
(Degree)
Lumen
Output
(Lm)
CCT
CRI
Life
Time
(Hrs)
20
36
220-240
165
1600
4000 K
80
25000
20
36
220-240
165
1600
6500 K
80
25000
10
18
220-240
165
800
4000 K
80
25000
10
18
220-240
165
800
6500 K
80
25000
INSTALLATION PROCESS
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Chapter 4
Research Design
Page 16
In the Descriptive Phase we divided the B2B segments into different groups based on the Industry. Each
groups were targeted with a general questionnaire to understand their company's existing lighting system
and an analysis of their power consumption was made and a report was submitted to the Company which
was targeted. Based on the report we would suggest recommendations about the various benefits of using
LED products and once we have created a view point we would collect all necessary information about the
Company and forward it to our Mentor who would take the information and conduct a sales pitch.
2. Price of LED quoted by other companies were lesser than Philips LED Products.
Amrita School of Business, Coimbatore
Page 17
3. Philips LED products were welcomed across all Social Media websites for their Energy
Efficiency.
4. Continuous decline of LED retail prices, dropping at a rate of 20-25% per year compared to
incumbent technologies where prices are flat or are declining much more slowly. A
narrowing price differential between LEDs and more traditional forms of lighting is
therefore slowly removing one of the key barriers to mass adoption.
5. Payback period of LEDs are continuously shrinking along with the LED retail prices. Based
on extensive research in Japan where energy prices are very high, thus lowering the time to
payback for more efficient bulbs, customers have a 10% chance of adopting a technology if
payback is two years, a 30% chance if payback is one year, and a 40% if payback is six
months. Therefore, the time to payback metric helps to predict LED adoption with some
historical and empirical accuracy. Hence there is an expected market penetration in the
Indian Lighting Industry in the coming years.
6. Unlike other incandescent lights, LED lights does not release heat energy into the
surrounding environment resulting in a green environment . Some of the waste heat is
produced within the LED itself during the conversion of electricity into light. This waste
heat must be properly removed from the lighting system to maximize fixture performance
and to avoid damage to the LEDs.
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7. Many manufacturing companies rely on continuous usage of lamps and are frequently
subjected to Load shedding. So they expect LED lights that can withstand load shedding
problems.
8. Another main issue is the Lumen Depreciation, as many of the textile manufacturing
companies repeatedly report this issue. They say that TLED lights does not provide
equivalent brightness compared with the traditional lights. This factor actually prevents
them from moving into LED technology.
Insights gained from Expert Interview with Mr. Laljith K, Sales Executive, Philips Lighting,
Calicut
Philips has the largest LED wider product range when compared to other companies.
Philips is the market leader of Lighting solutions in India.
Philips LED products are easier to fit and connect.
TLED lamps are currently the fastest moving product in other parts of Kerala.
Insights gained from Expert Interview with Mr. Abdul Basith, Executive Director, Focus
Hypermarket, Calicut
Energy savings is highly needed to reduce the electricity bill charges produced via Lighting.
Philips TLED lamps are more compact and require less space compared to CFL's.
Better light output than CFL's.
Insights gained from Expert Interview with Mr. Sandeep M, Managing Director, Chazia
Textiles, Mallapuram
Maintenance cost is less with Philips LED.
Although costly than other LED products, Philips LEDs provides better light output and
energy efficiency.
Lesser number of LEDs were needed to replace CFL tubes.
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Insights gained from Expert Interview with Mr. Hameed, Manager, Moulana Hospitals,
Mallapuram
Brightness of the LED lamps are better than CFL.
High Energy savings in term of Electricity Bills.
Maintenance free LED lamps.
The Key buying factors for LED lamps from Philips were as follows.
1. Maintenance Free
2. Increased Life of LED lamps
3. Better Brightness
4. Highly Energy Efficient
5. Reduced Replacement Cost
6. Can use existing CFL tube set without choke and starter.
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B2B
Segment
Industry
Type
Hospitals
Service
Jewellers
Retail
Textiles
Retail
Super
Markets
Retail
Malls
Service
Mallapuram
Calicut
Calicut
Mallapuram
Mallapuram
Calicut
Calicut
Mallapuram
Mallapuram
Current Lighting
Consumption
18000 Watts
23000 Watts
30000 Watts
22000 Watts
25000 Watts
12000 Watts
18000 Watts
10000 Watts
13000 Watts
Lighting Consumption
when changed to LED
9000 Watts
11000 Watts
15000 Watts
10000 Watts
12000 Watts
6000 Watts
9000 Watts
5000 Watts
6000 Watts
Mallapuram
20000 Watts
10000 Watts
Mallapuram
Mallapuram
Mallapuram
Calicut
Calicut
Mallapuram
40000 Watts
36000 Watts
22000 Watts
30000 Watts
12000 Watts
15000 Watts
20000 Watts
18000 Watts
11000 Watts
15000 Watts
6000 Watts
7000 Watts
Calicut
12000 Watts
6000 Watts
Calicut
Calicut
Calicut
Calicut
Calicut
12000 Watts
26000 Watts
20000 Watts
18000 Watts
18000 Watts
6000 Watts
13000 Watts
10000 Watts
9000 Watts
9000 Watts
Location
Moulana Hospital
BMH Hospital
MIMS
MIMS
Al Shifa
Malabar Gold
Apollo Gold
Marhaba Gold
NgD Jewellers
Arackal Fashion
Jewellers
Preethi Silks
Sana Silks
Chazia Silks
Pink Fashions
Linen Store
Quality Home Shoppe
Shalimar Super
Markets
Focus Hyper Market
Focus Mall
Space Mall
R P Mall
Emerald Mall
From the above data it is clear that there will be a 50% power savings in all of these B2B segments as all
Industries are currently using 36 Watts CFL tubes for all their lighting purposes.
Philips TLED tubes consumes around 10 Watts of electricity for the same lumen output as that CFL tube.
This means that almost 50% percent of the power consumed by CFL lamps can be reduced using TLED
tubes from Philips. Please find below a sample calculation for B2B segments.
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Industry
Office
Retail
Watts
/LED
Cost / Unit
consumed
by 1 LED
in a year
Total
electricity
cost saved
by 1 light /
year
Price
Payback
(Years)
1120
20
620
500
1700
2680
20
1340
1340
1700
1.4
36
800
20
400
400
1700
36
1900
20
950
950
1700
36
1340
20
744
596
1700
Watts
/CFL
Cost / Unit
consumed
by 1 CFL
in a year
8.5
36
365
8.5
36
10
260
8.5
24
260
8.5
12
365
8.5
Hrs/day
No
of
days
Electricity
Cost / Unit
10
365
24
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Chapter 5
Save With Lighting App
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Save with Lighting Application, and android application of Philips Company was made visible to
many B2B segment customers. Using this application Customer of B2 B segments can find out the
Current power consumption of their establishments by just simply keying in data. Using this App,
you can instantly calculate energy savings when you change/upgrade your existing lighting with
Philips energy efficient lighting.
Many of the Customers found this application easy to use and have ever since used this application
to find their Power Consumption at their own homes.
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Chapter 6
Recommendations
Page 25
1. Nearly 80% of the untapped clients in Northern Kerala do not know about Philips LED products.
Marketing via Newspapers, Banners, Flex..etc needs to be adopted for better growth of Market
Share in Northern Kerala.
2. As many organizations currently tend to move towards Green Energy ratings, Philips after
mutual discussion can provide Green Energy Compliance certificate as recognition to Organizations
that use Philips LED as an incentive.
3. Participation of Marketing events in Northern Kerala can help boost the visibility of the Philips
LED products.
4. The involvement of channel partners need to be increased through schemes and rewards. Where
the reach of the product is considered rather than just obtaining target.
REFERENCES
1. http://www.lighting.philips.co.in/
2. Data obtained through interaction with company personnel
3. http://www.bajajelectricals.com/
4. http://www.ledsconference.com/home.aspx
5. http://www.strategiesinlight.com/index.html
6. http://www.euroled.org.uk/
7. http://syskaledlights.com/
8. http://www.hplindia.com/consumerlumen1.asp?subcat=LED%20Lighting
9. http://en.wikipedia.org/wiki/Main_Page
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