Free marketing plan sample by marketing plan now: www.marketingplannow.com. A plan of Philips, Hair Streamer

2. NEW PRODUCT DEVELOPMENT STRATEGY:
Beauty Market – Hair Streamer for Professionals
Marketing Plan Sample 2010

3. Introduction
Ø Created in 1891 by the Philips brothers
In the Netherlands.
Ø Euro-next and NYSE
Generated 26 billion Euros of revenue in 2008.
Ø One of the most important electronics companies in the
world.
- Present in 60 countries
- 162,000 employees
3

4. 1.1 Company macro environment
Philips is strongly influenced by several environments:
economical, social and technological.
1.2 Market analysis
• Geographically: mainly North America and Europe
• Business Sectors: Healthcare, Consumer Lifestyle, Lighting
Sources: Support Manager Philips headquarters
4

5. 1.3 Competitive analysis
• Direct competitors: other companies that offer electronic
devices such as Samsung, LG, Sony.
• Indirect competitors: all companies that respond to similar
needs: Siemens, Braun, automotive industry, Nespresso…
• Future competitors: Babyliss, Calor, Chinese brands…
5

6. 1.4 Market Segmentation
• So extensive range of products almost everyone can be
Philips potential consumer
• Mostly people that care for reliable products
1.5 Existing Marketing Mix
• The two main elements are:
• Indirect distribution channels
• Brand
6

7. 1.6 SWOT Annexe 1
Strengths
• reliable brand name
• innovative products
Weakness
• Product responding to consumer needs
• very little interaction with consumers
Opportunities
• use of internet to provide more services
Threats
• fast changing environment
1.7 Positioning Annexe 2
7

8. 2.1 Marketing Strategy
• In 2010, we will focus on a product development strategy as
we will stay on the same market (beauty) and offer a new
product; hair steamers of high quality.
2.2 Desired Marketing Segmentation
Our targets :
- professional hairdressers
- people who buy powerful products
8

9. 2.3 Desired Marketing Mix
PRODUCT PLACE
Physical indirect distribution
channels
PRICE MarCom
2.4 Marketing Objectives as result of the SWOT
9

10. 2.5 Position
P: Philips (2009)
P2: Philips (2010)
C: Calor
Ba: Babyliss
Br: Braun
10

11. 2.6 Yearly sales forcasts
• Estimated revenue thanks to our products in 2010
Medium price x Number of products sold daily x Number of
open days in a week x Number of weeks per year
225.- x 4 x 6 x 52 = 280 800 €
11

12. 3.1 Main cooperative bodies
Collaboration with:
• Elite Model agency (accessories)
• Schwarzkopf professional (hair care and styling products)
• Huiles & Sens (aromatherapy, essential oils)
• 3.2 Marketing Current situation in the market
• We recommend Philips to continue :
Organizing the Simplicity Event to introduce their new
products and concepts.
Participating to international exhibitions as an example the
DesignBrussels.
12

13. 3.3 Developing new products and its pricing
• Hair steamer with integrated essential oil sprays
designed for professionals and accessible for a demanding
clientele.
• High-end price: 225 €
• Guaranty for 3 years and possible extension (50 € per year).
• After-sale service 24/7
• Innovating pricing system: free trial during 2 weeks and
payment after that if the client is satisfied with the trial.
13

14. 3.4 Marketing Activities
1) Product
Foresee various colors and modern design.
Create a detachable and adjustable base.
Innovate thanks to our partnerships : essential oil sprays.
Set-up an after-sale service 24/7
2) Distribution channels
Direct: Hairstylist salons
Indirect: “Boutique du coiffeur“ and wholesalers
3.5 Enhancing service marketing principles
Agents able to speak several languages, to negotiate and to
know very well the product following company training. 14

15. 3.6 GANTT scheme
What Who When Cost Comments
Mailing to Sales 6 – 10 January 1600 € in the main
10000 hair Manager and 2010 4x 10€x8hx5d cities in the
styling salons 4 assistants world
Participation to Sales and 6-8 November About 12000 € In Paris (9 am
the MCB Marketing 2010 (including fees, to 7 pm)
Mondial coiffure Manager stand, agents,
Beauté And agents transports,
equipments…)
telemarketing 10 Salesmen 3-17 February 10x10Ex8hx14d In the main
2000 calls = 11 200 € cities
15

16. 3.7 Marketing yearly budget
Resources Usages
Self 80% = 89 856 New product 40%= 44 928
development
1+1› 2 10% = 11 232 Indirect Marketing 25% = 28 080
Short term loans 10% =11 232 Events 20% = 22 464
Marketing research 5% = 5 616
Unexpected 10% = 11 232
expenses
Total ( 40% x 280 800) 112 320 Total 112 320
16

17. 4.1 Control Bodies
Control committee composed by:
- Marketing manager
- R&D manager
- Production manager
- Finance manager/ Accountant
4.2 Control tools
Based on “Management by objectives” we recommend to rely
on satisfaction surveys and statistical reports.
17

18. 4.3 Control by Milestones
For our Marketing plan important days are:
2010
January June December
Well-being fair Fashion
4-8 February week Paris
24-27 June Hair style week
16 – 21 November
M.C.B. Paris
6-8 November
4.4 Criteria of success
To have a good brand image on the beauty market.
To reach a high level of satisfaction from our clients and to
retain high loyalty levels.
18

19. Annexes
• Annexe 1 SWOT
That depends on the
company
19
BACK

20. • Annexe 2 Positioning
P : Philips ( 2009)
C : Calor
Ba : Babyliss
Br : Braun
20
BACK

21. • Annexe 3 PHILIPS SURVEY
(by Support Manager, Philips headquarters , Amsterdam, Netherlands)
1. What are the political (legal), economical, sociological and technological influences over
Philips company?
Economical: credit crunch – smaller turnover, smaller profits,
Sociological: increasing unemployment: smaller turnover, consumer expect product that make
their life easier,
Technological: fast technological changes force Philips to adapt quickly,
Political: Comply with specific rules and standards that are implemented in countries where
Philips is present.
2. Which are the main markets that Philips is part of?
Healthcare, Consumer Lifestyle, Lighting
3. Which are the direct and future competitors of the company?
Direct competitors: other companies that offer electronic devices as Samsung , LG, Sony.
Future competitors : mainly Chinese brands
4. Who are the people interested in Philips' products (potential customers)?
Philips offers such an extensive range of products that everyone can be Philips potential
consumer. However brand attracts mostly people that care for reliable products. 21

22. 5. What are the two most important elements within your Marketing Mix? Why?
All elements of marketing mix are important. Lack of attention to one of the 4P’s may cause
failure on the market. In my Business Unit Consumer Marketing Managers (CMM) develop a
product only after they have checked consumer needs. Moreover, CMM needs to remember
to create product within a given ‘price-cost range’ to meet consumer expectations. Price that
is visible on the market is negotiated between Marketing Manager and Customer Marketing
Manger in the relevant country. Promotion – packaging and visuals are developed by CMM
but localized locally (there is also possibility to develop some new marketing materials
locally). Price-related promotion is agreed between country and Marketing Managers. As you
see, none of 4P’s has a dominant position.
6. What are the main Strengths, Weaknesses, Opportunities and Threats of Philips?
Strengths – reliable brand name, innovative products, shifting from product to services (from
creating a product to fulfilling consumer needs), know-how.
Weaknesses - developing product that do not respond to consumer needs (sometimes there is
no need for the product created by Philips and such a need is also not created), lack or very
little communication with consumers. Sometimes consumers do not know that a line of
products exist. Finally, there are many procedures that are not flexible enough.
Opportunities - use of internet to provide more services.
Threats – fast changing environment (organization is too formal to respond to fast changing
markets).
22

23. 7. Can you please rate the position of Philips in connection with the following criteria:
Excellent Good Fair Bad Poor
International presence □ □ □ □ □
Market position (leader, challenger) □ □ □ □ □
Value for money: price □ □ □ □ □
Our Conclusions
This interview, that reflects the marketing strategy of this year, had an
impact on our marketing plan. Information about markets and
competitors helped us to focus on consumer lifestyle with the creation of
a hair streamer for professionals. Then, we considered some of Philips’
weaknesses and threats. We tried to alter those weaknesses into
strengths and opportunities for the coming year.
23

24. 24