Philips plans to tap Gujarat market with freebies

Philips Electronics is planning to tap the Gujarat market with a new freebie strategy, which would involve offering a gift along with each of its products right from the low-end to the luxury segment.

The company is offering freebies that are worth almost 25-30 per cent of the product's value, a move which has not been adopted so far for its Gujarat markets.

"We have very strong competitors in Sony and LG and others depending on each segment and with the freebie strategy formulated during the festive season, we are hoping to capitalise on the early mover advantage," Mrugesh Gaglani, brand manager (mini systems), consumer electronics, Phillips, told Business Standard.

The company is planning a major nationwide promotional strategy in the media, which will get underway in the next couple of days.

He said they the were planning to concentrate more on assured gift and exchange offer schemes to boost the visibility instead of the scratch card system, which is usually adopted by consumer goods companies.

Philips has major plans for Gujarat and is soon planning to launch newer variants of colour televisions and music systems.

"Philips has a current market share of around 22 per cent in the DVD segment and we project it to increase to 25 per cent. Similarly, we occupy a market share of 40 per cent in home theatres and expect it to go up to 45 per cent this season. We also envisage a steady growth in colour televisions with the launch of the newer models," said Jitendra Jodwani, branch head, Gujarat, Phillips.