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Marketing communication study of Philips new consumer lighting products

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Publisher :IPMI , 2005

The report survey reveals Philips has a strong brand recognition and strong brand preference. The report also found that general lighting awareness is high, and that product awareness for these new fluorescent bulbs (SL, PLS, PLCE) ranges from moderate to high. However, product use for the PLS and PLCE remains low. This low product use may be due to either the relatively 'newness' of the products in the market, its expensive price relative to incandescent bulbs, the inconvenience of requiring to install new ceiling base (for the PLS), or other factors.

Using the SL market segment to characterize the new bulb buyers, it is found that the majority of users are in the R2 to R4 electricity classes with middle to upper class income, and that the decision makers are mainly fathers. The retail stores are found to be the most important place for purchasing the new product as well as obtaining information. Other popular purchase points are warungs and supermarkets. Other common sources of information are friends and magazines.

The decision making process for purchasing these new bulbs is more significant than the incandescent bulbs due to the high purchase price of these new bulbs and the necessary installation of different ceiling fixtures for the PLS. An increase significance in the decision making process indicates the importance of having information readily available to facilitate the decision making process. Since most of these products are purchased in electrical and household retail stores, the retailers are a key link in increasing product awareness and product use for these new lighting products.

Other important findings are:

-Philips' new lighting products have tight voltage tolerance, while other competitors' products offer wider tolerance which can function in areas susceptible to voltage fluctuations, and

-Parallel importers have an economic advantage over Philips Ralin due to lower import duties and, thus, can offer larger margins to retailers.

To increase product awareness and product use, Philips should embark on the following short-term campaign of:

-Personal selling, direct mail, advertising in newspapers and magazines;

-Educating and training retailers;

-Developing long term relationships with its distribution channels

To maintain its high quality image, the target market for this campaign should be directed at the R2 to R4 electricity class, and limited to stable voltage areas.

The market segment for these new bulbs is still young. Therefore, an in-depth market potential survey for each new bulb product should be conducted to determine why product use is low, the buyer characteristics for each bulb, and what method of advertising is effective.

Long-term strategy for Philips is to improve market intelligence gathering through LSP employees, strengthen links with influential groups (interior designers, OEM, architects, distribution channels) and Philips Head Office, and increase product development and product innovation.

Research location: P.T. Philips-Ralin Electronic

Supervisor: Donald Lecraw, PhD., Prof.

Accepted: August 1991.

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vi, 33p. :figs., tabs., quest. ; 27cm.

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