Prospective of Philips Domestic Appliances Products in Bangladesh

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“Prospective of Philips Domestic Appliances Products in Bangladesh.”

1. Introduction

We have selected Transcom Electronics Limited working on this organization we came to know various Kind of marketing tools which are used here. Though it is a well known company, it has proved itself in the related industry as a major competitor. Here we have tasked not only the Marketing tool but also the HRM, management, finance and operational area of the Company.

2. Background of the Study

The Electronic industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as cell phones and kitchen appliances like microwave ovens were also included in this category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The industry is represented by major international and local players such as TEL, Philips, Voltas, Sony, Titan, Whirlpool, etc. The consumer electronic industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. In this research we have study about the factors that affect the consumer buying preferences in the consumer durables mainly Philips DAP products. The important factors are promotion, brand loyality, features; price, after sale service like guarantee, warranty etc.

2.1. Objective of the study:

The objective of the internship program is to get acquainted with the real life organization and to understand and observe the applications of the theoretical learning acquired in the BBA program. In this regard, this study is conducted to observe the business and organization of Transcom electronics, and how various departments are interrelated to each other and help the company in operating smoothly. So to complete our assigned job we have some objectives to be fulfilled.

Broad Objective: Prospective of Philips domestic appliances in Bangladesh

To successfully satisfy the broad objective, some specific objectives should be carried out. These are small queries and aggregation of those will answer the whole or broad query.

Specific objectives are:

· To understand the market in terms of competition and major players.

· To find out customer’s opinion about Philipsdomestic appliances products (DAP).

· To find out SWOT of Philips DAP products.

· To analyze Philips’s competitive position in domestic products market.

· To study the factors affecting towards purchase of Philips DAP products.

· To study brand preference of consumers for DAP Products.

· To study brand preference of consumers towards organized & unorganized outlet for the consumer durable goods.

2.2. Scope of the Study

Targeting the potential customers of Dhaka City is only operating the research. All background information related to the research and potential customers are a part of the study. Some implications of other marketing tools have become a part in relevance but they are not the core part of the report.

2.2. Time Frame

This study will require 56 days. The following table shows the time requirement in each step of the study.

Sl Event Time
1. Questionnaire preparation/ Pre-testing 10 days
2 Data collection 10 days
3 Data processing 10 days
4 Data analysis 10 days
5 Report witting 10 days
6 Presentation 06 days
Total duration 56 days

2.3. Limitation of the Study:

· Accesses to all the information of our desire are not readily available and sometimes they are too sensitive to be gathered.

· In the pre-testing phase of the questionnaire, too much time is being taken to fill out the questionnaire. Sometime the respondents are so reluctant to give any information. So this created discomfort while doing the survey. Later on the methodology of the report had to be altered to a user-friendlier manner to gather crucial information.

· It was very difficult to analyze the unstructured information gathered.

· As the time given to complete the project is lesser than actual time required completing similar studies, the quality of findings may get affected.

· The sample size is 50 (fifty), thus the findings from the same may not be representative of the actual population resolved in the near future and the companies will have to factor them in when they draw new growth plans which they have now done.

· Over the next few years, the topography of the industry will likely change, with some companies gaining at the expense of others.

· Eventually, however, the market itself will grow, as rural markets evolve and companies create specific products for them.

· The biggest limitation of this project was time; due to lack of time the necessary data were collected from the secondary sources.

· Due to tough competition in the market the companies are not willing to disclose their strategies adopted to face the competition so sufficient information were not collected and the information collected are not 100% accurate.

· Prior to liberalization, the Consumer Durables sector in Bangladesh was restricted to a handful of competitive players like Philips, Singer, Siemens, Black& Decker, and Konka. Together, they controlled nearly 60% of the market.


Transcom Group

Originated with tea plantation in 1885 and its today one of the leading and fastest growing diversified business houses in Bangladesh. Employing over 5000 people .not many industrial groups in Bangladesh can claim a history of continuous business pursuits stretching back over 100 years. Initially tea and later jute formed the backbone of the family business. Although these are still part of the activities, they contribute marginally to the overall group turnover. These early industrial ventures have moved over to businesses involved in high-tech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years TRANSCOM has emerged as an increasingly significant media house in Bangladesh.


This is the flagship and holding company of the Transcom enterprise.

Transcom electronics ltd PHILIPS

Koninklijke Philips Electronics N.V. (the Company or b Royal Philips Electronics) is the parent company of the Philips Group (‘Philips’ or the ‘Group). Its shares are listed on the stock markets of Euronext Amsterdam and the New York Stock Exchange. For over 110 years Philips has been improving people’s lives with pioneering innovations. In 1891 the Company was founded to manufacture cost-effective, reliable light bulbs. Today, Philips lights world-famous landmarks like the Pyramids of Giza, the Gate Bridge and the Times Square New Year’s Eve Ball. The Company produced test television signals in 1925and demonstrated television to the public in 1928 21 years Before the Dutch government officially introduced television to the public. In 1998, Philips acquired ATL Ultrasound, marking the beginning of a three-year acquisition period that made the Company one of the largest medical technology companies in the world. In 2003. Philips was awarded the No. 1 ranking in its market sector in the Dow Jones Sustainability Index. This reflects the Company’s world-class leadership in social, economic and environmental responsibility. Today, Philips is committed to building upon this heritage to improve the quality of life in the 21st century. Philips engages from time to time in cooperative activities with other companies. The performance of unconsolidated companies has a major impact on the performance of the Philips Group. Strategic alliances are also important to Philips In total, at the end of 2005; Philips had approximately 15-production site in 2 countries, sales and service outlets in approximately 150 countries, and some 159,000 employees. For over 110 years, since Philips’s founding as a manufacturer of light bulbs in 1891, their technology has been simplifying and enriching people’s lives. Philips’s innovations have led to significant breakthroughs in, for example, medical imaging, television, lighting, optical technology and integrated circuits. Building upon this heritage, they remain committed to applying their understanding of how people interact with technology to deliver advanced yet user-friendly products and services that meet people’s everyday needs. The company is the official licensee of Philips electronics N.V. Holland for lighting products, radio and TV sets in Bangladesh. The lighting division distributes Philips lighting products to over 45,000 outlets all over the country through an exclusives dealer network .a separated professional lighting team handles energy saving, special applications and sports lighting. The consumer electronics division distributes Philips televisions, radios, music systems and domestic appliances.


Since 1911, Whirlpool Corporation has grown from humble beginnings to a global enterprise with manufacturing locations on every major continent, 68,000 employees worldwide, and the leading brands in major home appliances. Whirlpool has grown to the leadership position within the global appliance industry thanks to a keen understanding of our customers’ needs and a firm commitment to addressing those requirements through our superb brands, products and services. Whirlpool Corporation arrived in the new century and millennium as the world’s leading manufacturer and marketer of major home appliances. Today Whirlpool’s global platform provides our operations with resources and capabilities no other manufacturer can match and with brands that consumers trust. Based on the continuing success of the company’s global innovation process, which began in 1999, Whirlpool has introduced unique product innovations to consumers worldwide. Over the last three years. Whirlpool has built and embedded within its global enterprise the skills and capabilities required to discover, develop and rapidly bring to market true innovation. These innovations are giving the company’s global brands a sustainable competitive advantage in the marketplace and creating value for customers, trade partners and shareholders. Transcom is the authorized sole distributor in Bangladesh for whirlpool USA .the products includes refrigerators, freezers, washing machines, microwave ovens and other domestic’s appliances.


Changhong Founded in 1958, Changhong Group has developed into one of the world’s most competitive consumer electronics solutions and services suppliers, with about 30 percent of its products exported to international markets. , Changhong has established an open and independent innovation system by coordinating its global advantageous resources and relying on the Changhong state-level technology center. The company fully integrates global information technology and upgrades its R&D capabilities to successfully establish a perfect global consumer electronics technology innovation platform. This has enabled Changhong to transform from a conventional home appliance manufacturer. Service First, Credible Security. Changhong commit to create high-class products and high-quality service Commercial Reputation is the comprehensive reflection of their high-quality products, fast and efficient service, market size and high popularity. This is the whole impression of CHANGHONG on the customers. It is accumulated bit by bit and is the foundation of keeping the business forever. Color television from china’s largest manufacturer CHANGHONG is marketed TEL in Bangladesh.


To meet changing consumer preferences and to supply quality products in different market segments. TEL launched a new brand TRANSTEC for the Bangladesh market, under which it is marketing light bulbs, flour cents tube lights, dry cells batteries and other electrical accessory items.


The company has showrooms all over the country. There are a total of 52 showrooms in the country four is up coming, among which 16 showrooms are in Dhaka. The locations of the showrooms are given below:

1. Kawran Bazaar

2. Gulshan(2 showrooms)

3. Dhanmondi(2 showrooms)

4. Badda

5. Mohakhali

6. Uttara (2 showrooms)

7. Gazipur

8. 8.Mogbazer

9. Malibagh

10. Basabo

11. Stadium Market

12. Mirpur(2 showrooms)




Bangladesh Lamps Ltd (BLL)

BLL is the pre-eminent manufacturer of electric light bulbs in the country. The company has an exclusive licensing agreement with PHILIPS electronics N.V. Holland, under which it manufactures Phillips lighting products.BLL was incorporated in 1960 as a subsidiary of Philips Holland in March 1993, Philips sold its entire shares to Transcom.

Bangladesh Electrical Industries Ltd (BEL)

BEIL is the official licensee of Philips electronics N.V. Holland. . The company was incorporated in 1960 as a subsidiary of Philips Holland .in march 1993 Philips sold its entire shares to Transcom.

Eskayef Bangladesh ltd

The company which was incorporated in1980 as a subsidiary of smith Kline &French USA was acquired by Transcom in 1990

· Expert formulation development

· Exhaustive and valid testing

· Highest standard of manufacture

· Guarantee of quality

· Chain of trust form product development to prescription.

Since its inception in 2001, animal health & nutrition division runs with the same motto exclusive through quality

• Well equipped modern quality control laboratory

• Foreign collaboration for highly technical products

• Veterinary therapeutics and veterinary nutrition products for livestock, poultry and fish.

3.3. Transcom Distribution Co. Ltd (TDC)

TDC has the largest independent distribution setup in Bangladesh with full infra structural facilities provided by a countrywide network of branch offices with warehouses and delivery vans. The company distributes quality pharmaceutical products manufactured by ORGANON, SERVIER, ESKAYEF and laboratory equipment and diagnostics reagents from BIOME’RIEUX and BECKMAN COULTER

TDC also markets and distributes color cosmetics, skin and hair care products from L’ORE’AL Paris. MAYBELLINE New York and GARNIER .it also markets professional products sold exclusively through hair saloons under the brand name L’Oreal PROFESSIONEEL.

TDC exclusively markets and distributes the world’s no 1 potato chips LAYS and other salted snacks from Frito lay

Transfin Trading Ltd

• Transfin is the sole distributor of SANYO Japan, marketing refrigerators, freezers microwave ovens, washing machines, air-conditioners, Televisions etc.

• Trinco Limited Trinco is the sole distributor of DAEWOO ELECTRONICS Korea. It markets DAEWOO televisions, washing machines, and microwave ovens, audio and video equipments.

Transcom Foods Ltd (TFL)

TFL is the franchisee of pizza hut and KFC for Bangladesh, both being the most popular brands of YUMI international with over 30000 restaurants worldwide.

Tea Holdings Ltd

• THL is an exporter of Tea, Jute goods and Petroleum products. It is also involved in warehousing, import and sales of agricultural commodities. It has been awarded the Presidents Export Trophy for outstanding export performance. The company markets and distributes phone and IT network components from KRONE Germany. The company represents VITOL Switzerland and Singapore for petroleum products.

• Transcom Beverages Limited (TBL)

• The company is the exclusive Pepsi franchisee for Bangladesh.TBL owns and operates modern plants in Dhaka, Chittagong and Bogra for bottling pepsiTup, Mountain dew Slice, Miranda and soda. Beverage distribution limited is the distribution arm through which all Pepsi products are distributed all over Bangladesh.

Media Star Ltd

Prothom Alo the largest circulated daily newspaper in the country has established itself as an independent and respected voice in the field of journalism in Bangladesh.

Transcraft ltd.

• A high speed, modern printing and packaging facility

• Associations Mediaworld ltd

The daily star is the leading and most quoted English newspaper in Bangladesh. The company also published the Bengali Shaptahik2000 a quality political and current affairs weekly and Anondodhara the premier film and entertainment fortnightly. Reliance insurances Ltd is also another associates of Transcom.

Operation network Organogram:

3.4. Literature Review

About Philips Domestic Appliances Products (DAP)

A major appliance is a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether in a household, institutional, commercial or industrial setting. An appliance is differentiated from a plumbing fixture because it uses an energy input for its operation other than water (generally, electricity). And this appliance has made the life of people of the whole world straightforward, time consuming as well as up to date. Among various manufacturing companies operating globally Philips is one of the most prominent “home makers’ due to their product’s serviceability .now a days it has become as the brand parent company in the domestic appliances markets.

Technology exists to help make our lives easier and more productive. So why is it so often such a hassle, full of complexity and frustration? At Philips, we believe that technology should be as simple as the box it comes in. It’s this very simplicity that transforms a task into an opportunity, a burden into a pleasure. This is why we are committed to delivering products and solutions that are easy to experience, designed around you and advanced

In Philips, Domestic Appliances and Personal Care employs approximately 8,200 people worldwide and operates in five business areas: Shaving & Beauty; Home Environment Care; Food & Beverage; Oral Healthcare and Consumer Health and Wellness. It maintains sales and service organizations in 60 countries and runs manufacturing operations in the Netherlands, Austria, Poland, the USA, Brazil, China and Singapore.

The development and production of innovative systems is necessary to Philips DAP in order to keep ahead of its advancing competitors. However, this must happen more rapidly and also better, because consumers constantly have more expectations. In order to achieve this it is essential to coordinate process and product development properly, but particularly in line with consumer requirements.

Strategic alliances are an important part of business at Philips. They enable Philips to bring new products to the market that the company would not have been able to develop on our own. Philips combines with a number of leading global companies to build advanced products and services that touch the lives of people everyday. At Philips they have over 30 partnerships with other market leaders in their fields. So in Bangladesh they gave the official licensee to Transcom electronics limited (TEL) to distribute their domestic appliances products (DAP) in this new emerging profitable market of Bangladesh. So to promote those products in this rapidly growing market TEL have taken some initiative to rearrange their mission, values and business strategies specifically for the domestic appliances product, which are as follows:

3.5. Brand promise:

The brand promise is ‘Sense and simplicity’. It encapsulates the commitment to delivering products and solutions that are advanced, easy to use, and designed to meet the needs of all users, wherever in the country there may be.

3.6. Strategy

• Increase profitability through re-allocation of capital towards opportunities offering more consistent and higher returns

• Leverage the Philips brand and their core competencies in lifestyle and technology to grow in selected categories and geographies

• Build partnerships with key customers and suppliers, both in the business-to-business and business-to-consumer areas

• Continue to invest in maintaining world-class innovation and leverage our strong intellectual property position

• Strengthen leadership competencies

• Drive productivity through business transformation and operational excellence

3.7. Marketing Strategies:

3.8. Target Market:

An organization must decide the potential customers for achieving the marketing objectives. The organization’s management develops a marketing mix to satisfy their customers’ wants after identified possible customers. For the business organization of Transcom Electronics Limited and Philips DAP we are also going to segment our market and identify the target market to develop a marketing mix that will show the way towards the achievement of its marketing objectives. All marketing strategy is built up on STP – Segmentation, Targeting, and Positioning. Concerning the TEL and Philips DAP, the following process of segmenting the market, determining the target market and positioning the product will be followed

In toting up, the geographic and demographic bases both have been considered for the market segment. The following variables of these two bases have been considered:

Geographic: City, density

Demographic: Age, Gender, Income, Occupation, Education, Generation, and Nationality.

Based on the above mentioned and pattern of segmentation the market segmentation for TEL and Philips DAP is given below:

Using Geographic Base:

City: Transcom Electronics has distribution channel whole Bangladesh, so the most of the region it covered is Dhaka & other state also within Bangladesh.

Using the Demographic Base:

Age: 40 or above years old people

Gender: both male and female

Income: More than 35000 taka/month

Occupation: Any kind of profession.

Nationality: Bangladeshis and foreigners and also tourists

So, the target market for TEL and Philips is the people of Bangladesh, and who are the Bangladeshi and other ethnic group male and female with the age range of 40 or above including any kind of profession (income should be at least 35,000 taka).

3.10.4. Marketing mix:

1) Product

2) Price

3) Place

4) Promotion

3.11. Target Customer

Initially, Transcom Electronics has real idea to flagship with well known brand like Philips. In Bangladesh all classes’ people are target audience of Philips DAP, especially those who have up to 40 years old and income level is little bit hire.

Marketing Objectives:

Introduction Growth Maturity Decline
Create product awareness and trial Maximize market share Maximize profit while defending market share Reduce expenditure and milk the brand

Marketing Strategies:

Variables Introduction Growth Maturity Decline
Product Offer a consumer durable electronic product Offer product extensions, service, warranty Diversify brands and models Phase out weak items
Price Charge cost-plus Price to penetrate market Price to much or best competitors Cut price
Distribution Build selective distribution Build intensive distribution Build more intensive distribution Go selective: phase out unprofitable outlets
Advertising Build product awareness among early adopters and dealers Build awareness and interest in the mass market Stress brand differences and benefits Reduce to level needed to retain hard-core loyal
Sales Promotion Use heavy sales promotion to entice trial Reduce to take advantage of heavy consumer demand Increase to encourage brand switching Reduce to minimal level

To complete the marketing objectives Transcom Electronics ltd. Imply their strategy according to the above-mentioned table.

3.11.1. Products Offer in Bangladesh Market:

Philips Domestic Appliances

Sandwich Maker 4 Slice (HD 2400)

• Auto clamping integrated in the handle

• High grade non-stick coated plates for easy cleaning

Mixer with Bowl (HR 1565) Cucina

• 3 Speed setting

• Beaters & dough hooks.

• 350w power

Blender with Mill Attachment (HR 1791)

• Power: 500w

• Serrated stainless steel blade

• Circuit breaker for safety

Electric Rice Cooker (HD 4502/HD 4702)

• Non-stick coating inner pot.

• Capacity 1.8 lit

• Steam function

Compact Toaster (HD 4815)

• Compact 2-slot toaster

• 7-position electronic timer

• Cancel function

Oven Toaster (HD 4458)

• Detachable grid for ease of cleaning;

• Built in thermostat to regulate temperature

• Even heat distribution

Kettle (HD 4399) Comfort

• 900w cordless jug

0.8L capacity

• 3 level safety system

Dry Iron (GC 146) [

• DuPont Silverstone Soleplate (Non stick)

• Pilot lamp for temperature setting

• Swivel for freedom of movement

Steam Iron (GC 1115)

• Dynaglide soleplate

• Steam output of 15g

• Spray function

Dry Iron (1172)

• Ultra light weight

• Corrosion-free

Compact Hair Dryer (HP 4812)

• 2 heat/speed settings

• lOOOw

Infraphil Lamp-150w (HP 3616)

• Special incandescent element

• Stimulates blood circulation

• Warmth transmitting filter

• Practical positioning of the lamp

Daisy Handheld Vacuum Cleaner (FC 6047)

• LED charging indicator

• Turbo fan motor

• Light weight

Vacuum Cleaner (FC 8388)

• 350w suction power

• 1600w motor

Philips Personal Care

Satinelle Epilator (HP 6459) Satin Ice Optima;

• Original skin cooling system for pain relief

• New and additional skin cooling system for sensitive areas

• Exchangeable shaving head

Facial Aromatherapy (HP 5241) Visasauna

• Aroma diffuser for real arornatherapy

• Ergonomically shaped steaming mask

Waxing, Epicera Precise (HP 6510)

• Precision roller for perfect results

• Thermo control for constant wax temperature

• Wax cartridge filled with quality vitamin E wax to keep skin soft and supple

Philishave (HQ 40)

• Battery operaed (2 x AA batteries)

• Unique micro groove

• Individual floating heads

Philishave (HQ 46)

• Up to 30 min cordless

• “Lift & cut” technology Floating heads

Face & Eyebrows Visashave Precise (HP 6390/00)

• Precision comb to shape brows

• Precision trimmer to trim off excss/unwanted hair

Hair Clipper (HQC 281)

• Rechargeable & mains use

• 50 minutes of cordless trimming i

• LED charging indication

3.12. SWOT Analysis of Philips Domestic Appliances Products (DAP):

Every product is composed of some internal strengths and weaknesses and also has some external opportunities and threats in its whole life cycle. The following will briefly introduce the internal strengths and weaknesses, and external opportunities and threats of Philips DAP items available in the market in Bangladeshi context.


Strong Brand Image

Philips itself established as a brand according to its name and contributions. So it has been enjoying a yearlong strong brand image in the Bangladeshi electronic market with its reliability and sustainability activities to their potential customers.

Specialist marketing expertise:

As Philips is the global multinational company so it must have the efficient marketing expertise that are well trained and also have high experience due to their technical know-how knowledge.


As Philips is already an established brand in the global electronic market so its quality is undeniably maintain according to its company policy. Its products as well as the DAP are highly commended as the most steadfast brand in the market due to its Quality assistance.


TEL is maintaining a strong distribution network in the country. At present a highly experienced Distributors are engaged to market their DAP items.

Financial Strength:

Transcom Electronics Limited is a finally sound company backed by the enormous resource base of the mother concern Transcom Group. As a result customers feel comfortable in dealing with the company.

Efficient Management:

All the levels of the management of TEL are solely directed to maintain a culture of the betterment of the quality of the service and development of a corporate brand image in the market through organization wide term approach and open communication system


TEL draws its strength from the adaptability and dynamism it possesses. It has quickly adapted to world class standard in terms of services.


High cost structure

As the products of domestic appliances are totally technology-based items so installation and logistic cost are very high. And their maintenances costs are pretty expensive as well. So, this is considered as their weakness.

Lack of promotion: ‘ I’ as today’s business world has become so much competitive so the existing should have in their mind that more recognition of their products leads more sells. But in terms of promoting that Philips DAP in the market the products are not that much visible in the market because of lack of their marketing policies due to advertisements or doing other activities.


Working people are increasing

Now in Bangladesh people are becoming more educated then before. Women also are going out besides men and they are doing different type of jobs. For this reason life style is getting faster; to cope with the fast life people are using those domestic appliances, which provides them saving their valuable time and energy.

Health conscious:

Recently people are very much concern about their health. To be fit they are having hygienic food maintained and also prepared in a hygienic ways these leads the people to choose home made food rather than having foods from outside. So these leads those DAP items to confine this opportunities to expand their market locally.

Increasing buying power:

At present more people are working outside and having different sort of job; so income level of the people are increasing. Life style of the people is upgrading as well as their taste is also changing. As their income level is going up, their willingness and ability of buying power is rapidly going high.

Expensive media cost:

The best way to promote a product is advertising. One of the easier ways to coverage a product through media. In our country there remains many private TV channel like, NTV, ATN, Channel I etc. These private channels have to pay tax towards Govt. So, advertising cost is becoming kind of expensive. So TFX should have taken these opportunities to promote their products easily as they have strong financial background.


Other foreign companies/ the domestic competitors:

Al present in Bangladesh there exist many foreign companies who provides high quality product in reasonable price. And there also remain some other domestic companies; like singer, Siemens, black Decker etc who are their competitors. These foreign and domestic companies could be their threat.

Change of govt. regulation:

In Bangladesh the political environment is not stable. For economic fluctuations Govt. implements new rules and regulations. New regulations increases trade barriers.

Shifts in consumer choices:

People mind varies time to time. Most of the time people are looking for new innovation and also interested in change. For these reason consumer’s choice might shift away from the firm’s product,

Emergence of substitute products:

If some other companies enter in the market with variety of substitute quality product with reasonable price then it could be a threat for Philips and their market share might also goes down.

3.13. Prospective in Bangladeshi Electronic Market

Industry analysis is a tool that facilitates a company’s understanding of its position relative to other companies that produce similar products or services. Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables small business owners to identify the threats and opportunities facing their businesses, and to focus their resources on developing unique capabilities that could lead to a competitive advantage.

Understanding the company’s operating environment in this way can help the small business owner to formulate an effective strategy, position the company for success, and make the most efficient use of the limited resources of the small business. Once the forces affecting competition in an industry and their underlying causes have been diagnosed, the firm is in a position to identify its strengths and weaknesses relative to the industry.

3.13.1. Macro Environment Analysis:


Population growth:

The population of Bangladesh is very high. And the growth rate of population is expanding day by day. So with the growing population of Bangladesh TEL has taken the largest segment of the population – urban middle class and upper middle class people as their target market. As we know that the explosive population growth has major implications for business, so TEL has taken it as their opportunities for gaining the highest market share in the domestic appliances manufacturing companies share in Bangladeshi market.

3.13.2. Household Patterns:

In Bangladesh there are different types of households and TEL with having this in mind, they have targeted their market with the people like working couples, single working people, chefs etc. Philips domestic appliances product, which is very much needed for the working couples for their limited time. This kind of products are also very much needed towards the Chefs of Bangladesh. With time peoples mind are also changing, now a days as the people have become more aware for their lifestyle and career so no one would like stay at home and spend most of their time in kitchen preparing food for their families. This doesn’t mean that it would make faded the bonding in family; on the other hand these products will let them to have more time to spend with heir family.

Targeting mass market to micro market:

As the family pattern of our country is reducing day-by-day, nuclear family trends has been introducing to our culture so the size of family is shrinking. And this leads Philips to target their potential users from mass market to macro market


The pace of change:

In today’s world the most dramatic forces shaping people’s lives is technology .So with the help of higher technology and knowledgeable workers Philips have been marketing their product which already having a first-rate market responses due to its brand name and reliability towards their customers.

Openness towards innovation:

Before people were so much reluctant to buy those DAP hems. They considered those products as the luxurious one. But in today’s point of view their mind has changed due to his products utilities and serviceability, they welcomed these products as their helping hands in household’s activities.


Now a day in Bangladesh men as well as women are working in various kinds of jobs, by keeping this in mind Philips is launching new innovations for those working people. It has become easier for TEL to capture the target market because of the diversifying work force.

It has been found that income level of Bangladesh’s people is increasing day by day as well as the expenses also. So it will become a factor for TEL to locate the Philips DAP users according to their income level as well as purchasing power. And for this reason Life style of the people is upgrading as well as their mind set up is also changing as their income level is going up.


In Bangladesh there always occurs political instability which is taken one of threat for TEL, but government rules and regulation are very much suitable for the Transcom ltd, so that Philips was very much eager to authorize the licensee opportunity to Transcom in Bangladesh. According to the laws of government for manufacturing goods and services, they are maintaining all the regulation of govt. for packaging, maintaining the quality policy, and also putting warranties like-hologram Government also helping TEL for not to be copy by me too product, its help them by giving the facilities for sued them.

3.15. BCG Matrix of DAP:

BCG Matrix

If we look at the industry from the perspective of the BCG Matrix Model to figure out the position of the overall industry, in terms of Relative Market Share and Product Sales Growth Rate, we will find that among the four quadrants (namely Dogs, Cash Cows, Stars, and Question Marks), TEL falls under Question Marks quadrant because of its high growth rate but relatively low market share, where as their main opponent Siemens falls under Stars quadrant because of its high market share and also high growth rate. But as a whole, the industry falls under the Stars Quadrant, which is the most anticipated position.

High Low High



Question Marks

Cash Cows Dogs

BCG Matrix Model

3.15.1. Purpose of the Survey:

Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan. Accurate market assessment and development of an effective plan is critical to the success of both new and existing businesses. The market impacts and directs all aspects of the company’s activities and ultimately will lead to success or failure of the business. In developing a market plan, your primary functions are to understand the needs and desires of your customer select or develop a product or service that will meet customer needs, develop promotional material that will make the customer aware and ensure product or service delivery.

To find out the potentiality of Philips domestic appliances in Bangladeshi market we have done an survey on the people of Dhaka city specially the working parents or couples, single working people, housewives to find out about their lifestyle, demographic position and most importantly their buying behavior like what are the main factors which drive them to purchase any kind of home appliances.

Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to customers. Factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made.

International brand products have been popular and received good interest from consumers in Asian countries such as Bangladesh due to the rapid changing in countries’ external and internal environment. This can be attributed to the government’s policies and the continuing development of the country. Bangladesh is being characterized as the free market economy. According to the changing environment and being more open to foreign investors, the new generation of Bangladeshi consumers has higher purchasing power than their previous generations. They are gradually changing their buying behavior and are more willingly adopting international brand products ever than before.

The objectives of this survey are two-fold: (1) to learn about perceptions and decision making behavior towards buying international brand products of Bangladeshi consumers, (2) to discover factors influencing Bangladeshi consumers toward buying international brand products.

And after finishing this survey we have found that Purchasing decisions of Bangladeshi customers include many factors which involved five steps in nearly every purchase made: need recognition, information search, evaluation of alternatives, purchase decision, and finally post purchase behavior. Even the simplest purchases can include any or all of these steps. Purchases are further influenced by such things as personal, psychological, and social issues.

3.15.2. How Consumers Make Buying Decisions:

Sales people and in-store materials were identified as very common sources of information for consumer buying decisions. Shoppers used a variety of methods to collect information about products before they buy. But when the consumer has little or no time to do extensive research on products, these two resources become extremely valuable. Such findings underscore the need for effective showroom displays and retailer expertise on the benefit of energy efficient products.

The most common reason for purchasing a new product was that an existing appliance failed, most of the respondents indicating this reason. This reinforces the need to focus on retailer activities, including salesperson training and point of-purchase materials. When an appliance fails, the consumer is most likely far more concerned with getting a replacement quickly than with properly researching the purchase. Other reasons for replacement were moving to a new house and upgrades to an existing appliance that still worked. Remodeling accounted for only purpose of new purchases.

3.15.3. Other Influential Factors in Decision Making

The study indicates that most of consumers aware about energy efficiency as “extremely important1‘ or “important'” to their purchase decision. Of consumers who purchased an energy efficient product, energy efficiency is the most important criteria, followed by size, warranty, brand, premium features, price, and color. However, among those who did not purchase an energy efficient product, energy efficiency ranked fifth, behind size, price, brand, and warranty. That is, even though it was often listed as important, it was less important than many other factors.

Majority of consumers rely on manufacturer reputation in making appliance purchase decisions. With purchase decisions often being made quickly, manufacturer production and labeling of energy efficient products is critical. With more appliance manufacturers supporting Philips DAP, consumers will increasingly associate manufacturer reputation not only with product reliability and quality, but also with efficient designs and money saving operation.

3.16. 1. The Role of Rebates in Buying Decisions

Approximately most of the consumer received a rebate for the appliance they purchased. Most of these were for qualified products. Of these, most of them said the rebate was important to their decision to buy that particular model. Price is one of the top criteria for many consumers, so for those who did not purchase an energy efficient product, rebates could help in the decision to buy. A higher proportion of customers who received a rebate recognized the Philips’s logo. The average customer who received a rebate was slightly younger than the consumer profile (30-50 years old) and more educated.

3.16.2. Profile of Survey Respondents

The following demographic information collected from survey respondents constitutes a baseline, a reference point, for learning about what kinds of people buy Philips’s DAP appliances, compared to appliance purchasers in general. Overall, demographic characteristics were fairly similar between the two groups, with a few differences.

The median age group of the survey respondents was 40-49 years old. Compared to purchasers of non-qualified products, appliance purchasers tended to be slightly older, and slightly more educated. However, survey respondents who purchased Philips s DAP products tended to be older, with nearly twice as many respondents in the 50-59 age groups purchasing qualified model. The median income of survey respondents was TK30, 000 up to TK60, 000 with the distribution of incomes fairly consistent between purchasers of Philips’s DAP. Falls under 35,000 to 45,000 category

The response pool was highly educated. Overall having a college or graduate degree. Somewhat more people from the sample had graduate or professional degrees. The basic purpose of purchasing domestic appliances is on the basis of actual need other is perceived need, but no one buy these types of product on the trial basis. When buying any domestic appliances the most important characteristics any consumer considered at first is the brand itself and the pricing factor and then quality of the product and of course after sales service.

Media influence to buy these types of products from the reference of their friends and family, sales promotions offered by the companies and the television ads and rest of the portion with the newspaper ads.

3.16.3. An Empirical Study of the Competitors

For any business to succeed, the company needs to know almost as much about their competitors as about the own company and customers. Unfortunately, many business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they’re up against.

A competitive analysis allows the company to identify their competitors and evaluate their respective strengths and weaknesses. By knowing the actions of the competitors, it will have a better understanding of what products or services the company should offer, how can they market them effectively, and how can one position the business. For TEL competitive analysis is an ongoing process. They are always trying to gather information about their priority competitors. By monitoring at their Web sites, reading their product literature and brochures. Getting hands on their products. And by talking to TEL’s customers to see how they feel about competitive products or services, they (TEL) get follow up with the help of their research team. TEL always believe in fair competition and understand that every business has competitors, and they need to take the time to discern who their customers can approach to get a product or service that fills the same need as they does. Even if the product or services are truly innovative, TEL need to look at what else their customers would purchase to accomplish this task

So for our survey purpose by looking at primary competitors to find out who are the market leaders, the companies who currently dominate this market. Next, we had to look for secondary and indirect competitors. These are the businesses who may not go head-to-head with Philips, but who are targeting the same general market. So for these reason our first study is to find out the main potential customer of Philips DAP in Bangladesh and regarding our cram for Philips there are mainly four primary competitors in performance in this market who are as follows:

• Siemens

• Black&decker

• Samsung

· Singer

So there are some analyses of these four competitors concerning their operation in Bangladesh.


•Operating six years in Bangladesh

•Three types of selling channel; retail, corporate and dealer

•For corporate business, which is their most prior customer, they give them various discount offers regarding their margin, which is 10%-12%

•Siemens s products are guaranteed by Germany where their parent company holds is. They have five types of appliances for their customers

• Fridge appliances

• Laundry appliances

• Cooking appliances

• Small appliances

• Built-in appliances

-Their target market is the upper class people so their products prices are 35%higher than other competitors

-Quality, technology and services are the three basic ways to market their products

– Products are manufactured in Germany but only marketed in Bangladesh

-The company has 6-8 cr taka sells in last year -In corporate growth rate is 8% and in retail is 5%


-Korean based company

-10 years in Bangladesh market

– Three types of selling channel; retail, corporate and dealer

-Product authorized dealer is Electra international and offers three types of products

– Consumer electronics

– Home entertainment

– Kitchen appliances

-All level or class people are their customer mainly is middle class and upper middle class

-Their pricing strategy is to have comparison with the recent market rate by comparing with competitors

– Quality and service are the two basic ways to market their products

– They assemble and market their product in Bangladesh

-Growth rates are moderate in the market.

Black & Decker:

-USA based company

-Operating for three years in Bangladesh

– Retail and dealer based marketing only

Target market is upper middle and upper class people

– Only domestic appliances are available as their product line

-Products mainly marketed in Bangladesh


-USA based company

– Operating from 1910 in Bangladesh

-Three types of selling channel; retail, corporate and dealer

-All level or class people are their customer mainly is middle class and upper middle class

– Offers three types of products

1. Consumer electronics

2. Home entertainment

3. Kitchen appliances

-Mainly manufactured and market their products in Bangladesh because of their long term business operations

-Growth rates are moderate in the market.

3.17. Competitive Analysis

Marketing is much more than just a sales or advertising program. But manufacturers who limit their thinking about m