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Vol. 4: No. 6, June 2009 Philips expects to grow despite the downturn (Bangkok Post, 05.06.2009) |
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Philips Electronics (Thailand) Co expects a single-digit rise in revenue this year despite the impact of flagging global demand on its business. Istvan Kuti, general manager for the consumer lifestyle sector, said Philips aims to maintain or increase its market share in categories including kitchen appliances, where it has 40% of the market, and garment care, where its has a 50% market share. It also aims to maintain its leadership in high-end LCD TVs. "Although some categories will decline or be flat, some will grow this year. Consequently, the overall operation will be positive this year, even though economic problems have hurt all sectors," he said. Philips' biggest ever worldwide campaign, launched in late April, would be the key to boosting its business this year, said the general manager. The campaign features several challenging marketing activities to foster sales and create demand. Further programmes supporting specific segments are scheduled for the second half of the year. These campaigns include "Feel like a Star" for garment care, the "Health" campaign for kitchen appliances and "Philips GoGear" for MP3 and MP4 players. "I am quite optimistic about the country's economy. Automobile sales are gradually improving in the second quarter. This is a good sign for the rest of the year," said Mr Kuti. Despite the downturn, Philips believes consumers are concerned about making the best investment and are seeking products that meet their demands for better health and well-being. The company has a marketing budget of 600 million baht this year for boosting sales and organising activities, particularly below-the-line communication such as product roadshows. According to Philips' research, 40% of consumers make their buying decisions at the point of sale. Roadshows allow the company to demonstrate products so consumers can experience their features and performance. Roadshows can also provide an opportunity to expand the company's consumer base nationwide. Philips will launch more than 100 products this year. It is targeting the mother and child market with flagship products under the Avent brand, which Philips acquired two years ago. The company will also work closely with key distributors on marketing activities for this market.
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