 "Philips banks on Bollywood")
It is not uncommon for companies to have multiple endorsers for their brands. Beverage majors Coca-Cola and PepsiCo have done it and so have automobile companies. But what do you make of a company such as Philips, not known to seek out celebrity endorsers, getting three Bollywood heart throbs to endorse its products?
Yes, Philips, a company synonymous with lighting and not considered to be in the same league as cola companies when it comes to advertising chutzpah, has brought on board Varun Dhawan, who will join peers such as Arjun Kapoor and Alia Bhatt to endorse its consumer lifestyle products. "Each of the three celebrities endorses different products," says A D A Ratnam, president, consumer lifestyle, Philips India. "Arjun came on board last year to endorse our trimming and body grooming range, while Alia Bhatt was hired soon after for our beauty appliances products. And Varun joins the pack now to endorse our male shaving and grooming range."
As things stand now, Philips India derives around 46 per cent of revenues from lighting solutions and 54 per cent from healthcare and consumer lifestyle businesses (32 per cent from healthcare and 22 per cent from consumer lifestyle respectively). A year ago, Philips globally restructured its business in a two-step process. It merged its healthcare and consumer lifestyle businesses into one company calling it HealthTech, while the core lighting solutions business was hived off into a separate entity. Both the companies use the Philips brand name. In India, the Philips enterprise continues to operate along the three lines of lighting solutions, healthcare and consumer lifestyle, though the plan is to eventually fall in line with the two-vertical structure that exists abroad.
While Philips has not indicated the amount spent on getting these celebrities on board, market experts have pegged their endorsement fees at nothing less than Rs 2-3 crore per annum, given that all of them, notably, Bhatt and Dhawan, are popular with the youth. Philips is also expected to use the three endorsers over a period of time. Anurita Chopra, director, marketing, personal care, Philips India, says, "Grooming as a category among both men and women has only grown and it was important for us to come up with the right set of products endorsed by the right kind of people. Arjun has a macho image and the trimming and body grooming range is something that he carries well. Similarly Alia brings a freshness to the table, which goes well with our beauty and hair range and Varun epitomises urban cool, so the shaving range makes ample sense for him."
Philips is keen to crack the market, given that the male grooming segment, according to industry estimates, is pegged at around Rs 2,100 crore growing at the rate of around 10 per cent per annum. Of this, electrical shavers, which is part of Philips's portfolio, is growing at around 30 per cent per annum. This market is pegged at around Rs 400 crore, according to industry estimates. The electrical beauty products segment, including everything from blow dryers to epilators and straighteners is even larger. It is pegged at around Rs 800-900 crore, growing at around 25-27 per cent per annum, as per market estimates. Philips is among the leading players in this segment, though competition from local and international players has been growing.
With its new endorsers, Philips is specifically addressing the youth category - the largest consumers of such products. And as it ups the ante in this segment, the battle is going to not only get tougher but also more interesting. Rival Procter & Gamble with its Gillette range of products, currently among the leading players in male and female shaving razors in India, is sure to react. Philips is banking on Bollywood, smart technology and sleek designs to win this round.
Yes, Philips, a company synonymous with lighting and not considered to be in the same league as cola companies when it comes to advertising chutzpah, has brought on board Varun Dhawan, who will join peers such as Arjun Kapoor and Alia Bhatt to endorse its consumer lifestyle products. "Each of the three celebrities endorses different products," says A D A Ratnam, president, consumer lifestyle, Philips India. "Arjun came on board last year to endorse our trimming and body grooming range, while Alia Bhatt was hired soon after for our beauty appliances products. And Varun joins the pack now to endorse our male shaving and grooming range."
As things stand now, Philips India derives around 46 per cent of revenues from lighting solutions and 54 per cent from healthcare and consumer lifestyle businesses (32 per cent from healthcare and 22 per cent from consumer lifestyle respectively). A year ago, Philips globally restructured its business in a two-step process. It merged its healthcare and consumer lifestyle businesses into one company calling it HealthTech, while the core lighting solutions business was hived off into a separate entity. Both the companies use the Philips brand name. In India, the Philips enterprise continues to operate along the three lines of lighting solutions, healthcare and consumer lifestyle, though the plan is to eventually fall in line with the two-vertical structure that exists abroad.
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While executives at Philips India declined to give current turnover details, market sources say the overall business has a top line of around Rs 7,500 crore, growing at 24-25 per cent a year. Of the three segments, healthcare and consumer lifestyle were among the fastest growing, clocking a rate of growth of a 30-35 per cent a year over the last few years, according to industry estimates. Lighting solutions has grown at a relatively slower pace, within the same timeframe. Philips is a consumer electronics company that has built strong healthcare and consumer lifestyle businesses, and it is in the relatively newer businesses, that the company has actually seen tremendous promise, as technology and health and wellness converge. The hiring of the three brand endorsers therefore, say market experts, must be viewed in this context.
While Philips has not indicated the amount spent on getting these celebrities on board, market experts have pegged their endorsement fees at nothing less than Rs 2-3 crore per annum, given that all of them, notably, Bhatt and Dhawan, are popular with the youth. Philips is also expected to use the three endorsers over a period of time. Anurita Chopra, director, marketing, personal care, Philips India, says, "Grooming as a category among both men and women has only grown and it was important for us to come up with the right set of products endorsed by the right kind of people. Arjun has a macho image and the trimming and body grooming range is something that he carries well. Similarly Alia brings a freshness to the table, which goes well with our beauty and hair range and Varun epitomises urban cool, so the shaving range makes ample sense for him."
Philips is keen to crack the market, given that the male grooming segment, according to industry estimates, is pegged at around Rs 2,100 crore growing at the rate of around 10 per cent per annum. Of this, electrical shavers, which is part of Philips's portfolio, is growing at around 30 per cent per annum. This market is pegged at around Rs 400 crore, according to industry estimates. The electrical beauty products segment, including everything from blow dryers to epilators and straighteners is even larger. It is pegged at around Rs 800-900 crore, growing at around 25-27 per cent per annum, as per market estimates. Philips is among the leading players in this segment, though competition from local and international players has been growing.
With its new endorsers, Philips is specifically addressing the youth category - the largest consumers of such products. And as it ups the ante in this segment, the battle is going to not only get tougher but also more interesting. Rival Procter & Gamble with its Gillette range of products, currently among the leading players in male and female shaving razors in India, is sure to react. Philips is banking on Bollywood, smart technology and sleek designs to win this round.