IIMA Cognito

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    BUSINESS PLAN

    Philips - India

    Business Proposal

    By Team : Cognito

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    Philips India

    Proposed Growth Areas

    Proposed Growth

    Areas

    Portable

    Medical

    Devices

    LED

    Lightning

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    Portable Medical

    Devices

    Why Philips

    should look to

    consider

    Philips India

    Portable Medical Devices

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    BUSINESS PLAN

    Portable Medical Devices

    Healthcare sector in India:

    With a shift towards urban lifestyles, the incidences of diabetes, cancer, chronicheart diseases and hypertension in India have increased significantly.(SUSTAINABILITY)

    Size of the Indian Healthcare Industry - US$35 billioncontributes over 5% of GDP

    and the Medical Equipment market is $2 billion, growing at 15%

    Health service in India are expected to grow at the compounded annual rate of 12-

    15 % between 2012-2020 alone. (SCALABILITY)

    The International Diabetes Federation estimates that the number of diabetic patientsin India more than doubled from 19 million in 1995 to 40.9 million in 2007. It is

    projected to increase to 69.9 million by 2025.

    There are over 10 crore people suffering from heart problems with one in everyeight males affected with it.

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    BUSINESS PLAN

    Portable Medical Devices

    Market View for Portable Healthcare Devices:

    To tap into this lucrative healthcare market, Philips should target consumerhealthcare devices.

    The consumer devices need to be portable, easy to use and customer friendlyexample SMBG (Self Monitoring Blood Glucose).

    In India a meagre 0.3 per cent of diabetics use SMBG as opposed to almost 22 percent in developed countries. Lack of awareness regarding complication of diabetesand benefits of regular monitoring are key factors for this.

    The challenge is to educate the diabetes patient on the importance of frequentblood glucose testing in order to better manage their diabetes.

    Attempts by health care professionals, insurance companies, and doctors is needed

    to educate diabetes patients on the importance of portable devices .

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    Entry In PortableDevice Market

    Educatingpeople throughadvertisements

    PartnershipsWith doctors

    Bulk DealContracts

    withHospitals

    How to enter?

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    USP of PortableDevices

    Ease of Use

    Brand ValueOf Philips

    Low Cost

    USBconnectivity

    for report

    sharing

    Regularcheck ups

    withconvenience

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    LED Lighting

    Why Philips

    should look to

    consider

    Philips India

    LED Lighting

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    Megatrends

    Population Growth Expected to increase to 1.23 billion

    Rising per capita income in India - $4200 in 2020 (Average growth rate

    of 13% in 2011-20)

    Urbanization Usage of light is higher in Urban than Rural areas

    o 35.4% in 2020 of total population from 31.8% in 2010

    Energy conservation and global movement towards CO2 abatement

    o Switching to LED lighting is economically more attractive than

    other means of CO2 abatement (reducing vehicular emissions

    or switching to solar power systems as cost is prohibitive in

    both)

    Value proposition of LED

    Longer Lifetime (up to 25 years)

    Compact Size

    Flexibility in Design

    Digital Control Programmability No ultraviolet/infrared emission

    Safe to use because of no heat/low voltage

    Since Indian consumers dont have a preference for warm light,

    LEDs are at an advantage unlike European countries (Halogen

    being preferred because it emits warm light)

    Philips India

    LED Lighting

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    Philips India

    LED Lighting

    Why should Philips consider this growth area?

    Residential The largest sector of the lighting industry

    Office Indian corporate space is increasing at an exponential pace

    Retail With FDI in retail expected, Indian retail sector is set to undergo a huge

    transformation Low energy consumption Low heat generation Greater design flexibility Low maintenance segments

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    Philips India

    LED Lighting

    Why should Philips consider this growth area? (contd..)

    Hospitality Since high-end hospitality sector emphasizes light controllability to control mood,

    LEDs can be promoted.

    Outdoor Partner with the Government of India & State Governments to use LEDs in

    streetlights emphasizing the low total cost of ownership over the long term

    Entertainment The programmability of LEDs can be emphasized to increase the market share of

    LEDs in India with a growing Film & Music industry

    Industrial Since LEDs will have a lowest total cost of ownership over the long term,

    industrial sector is likely to switch to LEDs

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    Philips India

    LED Lighting

    How should Philips approach this growth area?

    Residential Partner with the Government of India to electrify the rural sector using LEDs Partner with New Residential projects (increasing urbanization will create lot

    of new real estate opportunities in India) Offices

    Partner with new offices to encourage LEDs emphasizing the below values

    Controllability Low total cost of ownership over the long term than substitutes Can be integrated with the fixtures pleasing to see

    Partner with Government to electrify the public affiliated institutions Tamil Nadu and Karnataka have already banned incandescent lamps LEDs are environment-friendly and can be used for CO2 abatement Low total cost of ownership

    Retail Negotiate contracts with retail chains Engage with real estate developers creating new shopping spaces

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    Sustainability

    By 2020, LEDs are expected to have a market share of 64% ofthe entire LED industry

    Since the production methods are entirely different from CFL andincandescent lamps, it will lead to the emergence of an entirelynew industry

    With strict environmental regulations, the governments are likelyto mandate the use of LEDs

    With competitions such as the L Prize (Department of Energy,USA),breakthrough innovation in the industry is likely to furtheremerge

    Scalability

    Lighting accounts for 19% of the worlds electricityconsumption

    Size of the lighting market is comparable to the size of the TV

    market The market for LEDs is across geographies, markets and

    covers many segments

    Philips India

    LED Lighting

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    Thank You

    Philips India