Scribd
Upload
503 views6 pages

Review Case, Re-Evaluate Analysis, Recommend Strategy

1) Philips LED bulbs were facing declining sales due to their $20 price point, while competitors offered bulbs for under $5. 2) A conjoint analysis found consumers were willing to pay up to $5 for LED bulbs. 3) The analysis recommends Philips develop new LED bulbs priced below $10, create a new brand positioning, and focus on product development and trade marketing to boost availability.

Uploaded by

Felipe Sagredo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
503 views6 pages

Review Case, Re-Evaluate Analysis, Recommend Strategy

1) Philips LED bulbs were facing declining sales due to their $20 price point, while competitors offered bulbs for under $5. 2) A conjoint analysis found consumers were willing to pay up to $5 for LED bulbs. 3) The analysis recommends Philips develop new LED bulbs priced below $10, create a new brand positioning, and focus on product development and trade marketing to boost availability.

Uploaded by

Felipe Sagredo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Step

1
Review case, re-evaluate analysis,
recommend strategy
How should the new Philips LED be positioned in the market?
• Philips LED can be positioned as emerging world’s No.1 LED bulb.
Whom to target ?
• Philips should target residential areas in US as average residential rates are less
than 12.7 cents/KWH.
What channels to sell through?
• Philips should consider e-commerce (due to increase in market penetration) and
traditional retail stores to reach its consumers.
At what price point?
• Philips should consider price point below 5$ as willingness to pay is maximum at
this price point as per conjoint analysis.
Step

2
Analysis and Recommendation for Philips
Situation/Problem

There was considerable decline in sales for Philips LED’s $20 purchase price.
Step

2
Analysis and Recommendation for Philips
Executive Summary

There was considerable consumer resistance to Philips LED’s $20 purchase price (compared
with less than $0.50 for a standard white incandescent bulb or a $3.00 compact fluorescent
lightbulb (CFL).
In product positioning, the dilemma was which feature to emphasize: protecting the environment
or cost savings to the user. Further, there appeared to be differences in the way individual
consumers evaluated light bulbs relative to businesses that sometimes needed to make bulk
purchases of light bulbs.
Step

2
Analysis and Recommendation for Philips
Approach

Philips need to devise a new brand positioning statement for Super Bulb, along with
new product development at required price points based on the results of conjoint
analysis done.
Step

2
Analysis and Recommendation for Philips
Key Findings

• Existing bulb of Philips is having a very high price.


• Willingness to pay for bulbs at price points below $10 is more for consumers.
• GE is having higher market share and is focused towards product efficiency.
• Philips need to focus on NPD and also to develop effective trade marketing
schemes to make its product available at maximum shelves.
Step

2
Analysis and Recommendation for Philips
Recommendations

• Philips needs a new brand positioning statement.


• Philips would need to revise price points according to willingness to pay for
bulbs at below $10 is more for consumers.
• Profitability drivers for Philips would be better price points, increased
efficiency of Super Bulb, Kaizen costing etc.
• Philips need to focus on NPD and also to develop effective trade marketing
schemes to make its product available at maximum shelves.

You might also like