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Philips (FMCG)

pest + swot

Izabela Rekos

on 18 March 2013

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Transcript of Philips (FMCG)

considered essential
generally replaced or fully used over a short period
short shelf life
high consumer demand
quick deterioration
relatively low price
sold in high volumes The FMCG Market Overview Electronics FMCG Porter's 5 Forces Strengths Weaknesses Threats powerful brand
locally relevant products
insightful understanding of people
strong financial performance especially in health and personal care products
quality of technology and innovations losses in Lifestyle Entertainment category
high labor costs
high concentration of competition
relatively high power of buyers recession and decrease in consumer spending
slowdown in mature geographies (e.g. Western Europe, Japan, Australia)
Lifestyle Entertainment: declining categories such as MP3 or DVD players
threats of substitutes
intense competition SWOT THE FMCG Market Analysis Izabela Rekos Competition: Suppliers' bargaining power: Threat of substitutes: Buyers' bargaining power: 1. The FMCG Market
2. Philips and the FMCG market
3. Porter's Five Forces (the FMCG market + Philips)
4. SWOT (Philips) Contents: Opportunities Personal Care Health and Wellness Domestic Appliances Lifestyle Entertainment many different materials and goods
large initial investment
economies of scale
many well known brands Threat of new entrants: to large extent the goods are interchangeable Individual customers:
low switching costs
necessity of products

consolidated retail market (mature geographies) largely consolidated market
threat of substitutes
high power of buyers growth geographies (e.g. Russia, China)
rising middle class
growing interest in personal health
growing interest in personal care and appearance
increased conformity (healthy food but easy to prepare) consolidated competition
importance of brand, quality, and innovation to differentiate
importance of short time-to-market to meet consumer needs efficiently and effectively strong power of customers such as Amazon, Boots, Argos, supermarkets etc.
co-operations with pharmacies to sell health products
online sales
low switching costs for individual customers
importance of branding and appealing to customers' values available substitutes, however Philips products are:
more locally relevant,
higher quality,
stronger brand,
more appealing to customers' values due to the minimal instant returns and importance of economies of scale low possibility of new entrants low concentration of suppliers
need for close relationships in order to ensure suppliers' sustainability and quality PHILIPS AND FMCG fast moving consumer electronics: lower priced generic or easily substituted customer electronics
short usage life (around 1-2 years maximum)
often exchanged due to
changes in consumers' trends
introduction of new technology
treated as necessity for reaching certain lifestyle Thank you for your attention. Consumer Lifestyle Questions?
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