Philips Electronics India Limited - Potential Solutions!

As a student of Brand Management, Strategic Marketing and Global Brand Strategy, I would suggest the Management of Philips to first go for an qualitative interview (better to have Focus Group interview) with their loyal set of Indian customers, if any. Through this they must try to find out the top 4-5 values which drives those loyal customers to buy Philips products. What they feel, perceive and if there is any sense of Pride for having a Philips product in their daily routine etc. Even what they would love to have from Philips and how/where they want to see Philips in the future etc as well. This will give them the idea about the theme or concept they need to push and emphasize upon more and more via all their Integrated Marketing Communication.

Secondly they need to prudently divide the Indian Consumer Electronics Market into precisely distinguished segments. considering each of Demographic, Economic, Technological and Social parameters and their effects on the customer's buying behavior. After that they will have to prudently realign their product range and brands with those segments. It will give them clearer picture and better idea about the theme they should go for each product range and will be able to hit the precise target segment of customers. A particular segment or class of customers like to a particular type and level of ads for almost every product available on planet earth. Different segment of customers understands and attuned to a particular type of communication. It is the work of the marketing and branding manager to hone that very language (using IMC) to communicate with the target customers. Phillips as a global brand have to know what communication language or tone their customer wants to hear and start speaking in that manner.

Why Philips has gone for one single advertisement for all product line and for every segment of Indian Market is a matter which I fail to understand. When I see Sony ads, I see different ads for different segments or class of brand. People who have the money and capability to buy a prestige and class brand will never be convinced and awed with the same type of ad which captures the middle class or lower strata of customers. Even the ads should be shrewdly differentiated for Urban buyers and Rural buyers. And not all Indians are Tech Savvy and Research Scholars to understand the depth and awe of the innovation Philips using in its product. It is either the glamor quotient or the bare functionality that matters the most. Philips with its consumer durable electronic goods cannot expect that kind of super tech savvy costumers altogether which Apple Inc. might be enjoying.

So simply dangling the carrot of Innovation in front of vast customer base of Indian market is not going to do any good, until you know what your customer really wants to eat!