Feb 19, 2000|
Philips to woo market with fresh products
Philips has outlined elaborate plans to woo the Indian consumer electronics market with a new product line.
Philips India, subsidiary of Philips NV, enjoys a presence in the Indian television (TV), audio products and lighting market.
For long Philips has trailed the competition - BPL, Videocon, in launching market savvy, innovative products. Consumers perceive the company's products as staid and attribute it to Philip's passiveness. Now the company wants to change that and has drawn out plans to launch a fresh product line.
According to a news report in a leading business daily, the senior vice-president of the company remarked, 'Starting April 1 2000, a new model would be launched every two weeks till December 2000 to reinforce our image as a technological powerhouse.' Some of the products will be launched afresh, while in some cases the company will be releasing an entirely new product.
This marks a sea change in Philip's strategy. For long the company seemed content to rest on its bond with an international brand and did not release products with quite the same frequency as its competitors. The company failed to leverage its international brand appeal and did not receive the requisite technical backing from its parent. This is one of the reasons why its products (except audio products, lighting) are normally priced at a discount to its competitors
Over the past few months, the company has made a concerted attempt to introduce innovative products and the latest initiative is a part of that drive. The new models/variants will incite buying interest and add to the company's bottomline. It will offer consumers a range of models to choose from and the company will succeed in drawing consumers away from its competitors.
However, introducing so many models/variants at such frequency could lead to confusion in the minds of consumers about features, prices of various products. It may also lead to cannibalising of one model by the other.
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