Philips India is targeting a Rs 300 crore turnover in the audio segment this year, on the back of a continued aggressive focus on the MP3 segment.
The second phase of its MP3 launch, will see the introduction of a new range of 6 MP3 compatible products in place of the current line-up, which will be phased out completely by October 2002.
The new models, in the price range of Rs 15,000 to Rs 29,000, will have sleaker looks and additional features like higher PMPO and double wOOx technology for stronger bass effects.
Philips is also extending its MP3 battleground to the rural segment, with the launch of a VCD MP3 standalone product for Rs 3990 in July. According to sources the MP3 VCD standalone segment itself is a 500,000 units market, which is growing rapidly specially in areas like Muzaffarnagar, Moradabad, Panipat. These areas are being flooded by cheap Chinese VCD standalones for Rs 2000, with in-built amplifiers, which can be hooked onto the TV to provide complete entertainment. The company intend to target this segment with the new product at Rs 3,990, with additional benefits of the Philips name and a one-year warranty. This would also help arrest the degrowth in the radio cassette recorder segment.
Another focus area for Philips this year will be home theatre systems. It will push the upper end of the DVD segment with home theatre packages in the range Rs 30,000 to 50,000. By 2004 at least 50 per cent of the mini market is estimated to be DVD.
The company will also strengthen the youth positioning of its MP3 compatible products with a tie-up with a music icon around Diwali.
Currently it is taking its promotional campaign ‘MP3 Mania’ around the country with a series of roadshows with Bally Sagoo, the Taj group of Hotels, MTV and Proctor & Gamble. Philips, which has taken an early lead in the MP3 segment, claims a 72 per cent growth in MP3 VCD minis against an industry growth of 6 per cent.
While ORG figures show that the audio segment has registered a degrowth of 7 per cent in the first quarter this year, Philips claims to have grown by 29 per cent. Philips’ MP3 audio portfolio includes VCD mini hifis, the micro system range, DVD range with MP3 playback, portable CD systems and portable players.
Source: Financial Express