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Rina Chandran

Mumbai , Sept. 16

HAVING identified India as the second strategic market, after China, Philips Consumer Electronics is focusing on specific consumer segments and is looking for alliances to address these segments over the next 12-18 months.

In mobile phone handsets, an area where Philips is regarded as a late entrant, the company will focus on `plugged-ins' - 15-18-year olds and 18-25-year olds, who are early adapters of technology, as well as first-time users at the lower end. Alongside, Philips is going after the youth in a focused manner for the first time, and seeking to refresh its image.

"Philips has been in India for 70 years, so it's perceived as dad's brand, and not as funky or modern," said Mr Bob Pillay, General Manager, Consumer Communications, Philips Consumer Electronics, South/South East Asia, Taiwan and Pacific. "So to make it a brand that smacks of energy, we are looking for like-minded partners to grow with the youth." The first of its alliances to increase market relevance and reach is a three-year marketing collaboration deal with MTV Networks Asia, as part of Philips' global Personal Expression strategy.

The campaign, named `MTV Whatever Things', was launched in Mumbai and will have an on-air programme, a dedicated microsite, and on-ground events. The initiative will take forward Philips' `Things to do your thing' campaign for stylish innovations that give the youth easy access to digital information, communications and entertainment.

The Philips 530 has a music mixing function, and the company is betting on the audio capability to set it apart from other players who are focusing on MMS and camera. For the business executive segment - another key user of mobile phones - Philips will push the convergence advantage and features such as long battery life, a big phone book, and the recording function. Philips' previous launches, the 630 and the 330, are also targeted at college-goers and young professionals. And for first-time users at the lower end, Philips will provide basic features at an affordable price, Mr Pillay said.

"Mobile penetration in India is really low, so the addressable market is huge, but for first-time subscribers in second- and third-tier towns, affordability is a big concern," Mr Pillay said. "And if you want to be counted in the consideration set, you have to deliver value to people who have a need - so we will go after them with instruments priced below $100 in retail."

Riding on the strength of its distribution network, Philips will first focus on five or six key markets where it has a key presence, and then step up activity, Mr Pillay said. While Philips' various divisions will come together to meet consumer needs in the three areas of Home Entertainment, Infotainment and Productivity, the group will also communicate its offering better.

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Philips to tap `plugged-ins' for mobiles

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