CASE ANALYSIS GROUP

Mayank Tyagi
Mandeep Singh
Kartik Kumar Khatana
Sourabh Kadyan

MBA 2nd Year

1.Marketing Mix Analysis (4 Ps)

Product: Philips India launched the New Urban Living Series air purifiers in 2020, designed for
modern urban households. The product offers advanced features like automatic pollutant sensing
(1,000 times per second), superior filtration (removes pollutants 800 times smaller than PM 2.5),
and app-based smart control through Clean Home+, Alexa, or Siri. It comes in three models:
3000i, 2000i, and 1000 series, catering to diverse consumer needs.

Price: The air purifiers are positioned as high-quality yet affordable products, with prices ranging
between ₹17,500 and ₹39,995. This competitive pricing strategy caters to both price-conscious
and health-conscious urban consumers, providing them access to premium features at a
reasonable cost.

Place: Philips leverages a vast distribution network, including e-commerce platforms like
Amazon and Flipkart, as well as physical retail channels across India. This allows the company to
reach both urban and rural markets effectively. It also provides home servicing in over 200 cities,
which enhances customer convenience.

Promotion: Philips India focused on digital marketing strategies, such as DOOH (Digital Out of
Home) campaigns, to raise awareness of indoor pollution and the benefits of air purifiers. They
avoided mass media advertising but created informative videos with messages like “Breathe again
with Philips air purifiers,” emphasizing product benefits.

2 .STP Strategy (Segmentation, Targeting,

Positioning)
Segmentation:
Philips segmented the market for air purifiers based on several demographic and behavioral
factors:
Geographic Segmentation: The primary focus is on urban areas, especially in North India, where
air pollution is highest due to industrial activities, vehicular emissions, and seasonal smog. Cities
like Delhi, Gurgaon, and Chandigarh have been identified as critical markets due to their high air
pollution levels.

Demographic Segmentation: Philips targets middle-to-upper-income households, as these

consumers are more likely to invest in health-related products, especially air purifiers. Rising per
capita income and increased health awareness have also driven interest in air purifiers among
urban professionals and families.

Behavioral Segmentation: This segmentation focuses on consumers who are health-conscious,

tech-savvy, and value convenience. These consumers have heightened awareness of indoor air
quality issues, particularly during winter and the COVID-19 pandemic, which has increased their
desire for products that promote health and hygiene.

Targeting:
Philips has adopted a differentiated targeting strategy aimed at two main consumer segments:

Urban Health-Conscious Families: The primary target audience is households concerned with air
pollution and its impact on health. These families are particularly concerned about respiratory
issues, asthma, and the potential long-term effects of indoor pollutants. The company’s research
indicated that consumers are increasingly aware of the negative impact of poor indoor air quality
on children and elderly family members, which makes air purifiers an appealing solution.

Tech-Savvy Consumers: A secondary segment includes consumers who value convenience and
technology integration in household products. These consumers are looking for products that can
seamlessly integrate with their smart homes. Philips caters to this group by offering air purifiers
that can be controlled via apps like Clean Home+, as well as voice assistants like Alexa and Siri.

Positioning:
Philips has positioned its New Urban Living Series air purifiers as premium yet accessible
products that deliver year-round health benefits. The key positioning elements include:

Year-Round Necessity: Unlike traditional seasonal air purifiers, Philips is promoting its products
as year-long necessities for urban households. The rising concerns about indoor air pollution and
the COVID-19 pandemic make air purification a critical component of everyday living, not just a
seasonal purchase.
Health and Hygiene Focus: Philips air purifiers are positioned as essential products for
maintaining a healthy indoor environment. The messaging emphasizes superior filtration
capabilities, which remove 99.97% of pollutants, allergens, and even viruses.

Technological Innovation: Philips differentiates itself by highlighting advanced features like real-
time air quality sensing and smart control capabilities. This positions the brand as forward-
thinking and technology-driven, appealing to tech-savvy consumers who value convenience and
automation.

3.Brand's Competitive Strategy

Philips differentiates itself in the crowded air purifier market through its decades of experience in
air purification research and its advanced technological innovations. By leveraging AeraSense
technology and providing superior filtration, Philips offers a compelling value proposition at an
affordable price. The brand’s strong focus on health, trust, and innovation further strengthens its
competitive position against rivals like Honeywell, Xiaomi, and Dyson.

In terms of competition, Philips’ smart home integration features and broader distribution network
give it an edge in reaching a diverse customer base. However, the brand faces challenges due to
the influx of cheaper, low-quality products from unorganized players.

4.Brand Equity Model (Keller's CBBE Model)

Brand Salience: Philips is a well-established brand with high recognition in India, known for its
trustworthiness and innovative products. The brand’s new air purifier range enhances this salience
by addressing consumer concerns about air quality and health.

Brand Performance: Philips air purifiers perform exceptionally well in terms of filtration, speed,
and ease of use. The products remove up to 99.97% of pollutants, viruses, and allergens, ensuring
high satisfaction with product performance.

Brand Imagery: Philips is perceived as a brand that cares about consumers’ health and well-being.
Its products are associated with premium quality, innovation, and accessibility. The company’s
marketing efforts, like the Khushiyon Ki Ladi campaign, foster positive emotions and social
connections.

Brand Judgments: Customers trust Philips for its advanced technology and reliability. The
affordability of its air purifiers strengthens the brand’s judgment as a high-value option in the
health tech space.
Brand Feelings: Philips evokes feelings of security, well-being, and relief, particularly during
times of heightened concern over air quality and health risks due to the pandemic. Its emphasis on
family safety and health enhances emotional connections with the brand.

Brand Resonance: Philips enjoys strong brand resonance, with loyal customers who consistently
choose its products for their homes. By offering home servicing and smart features, Philips builds
long-term relationships with its users.