The new strategies are expected to bear results by the end of the year.

In a shift from its earlier strategy, the company has decided to position itself as a "better value for money" brand in the country against being a premium-priced brand, Philips director and senior vice-president Ravi Kant said.

It will also venture into a co-maker relationship with other companies where certain manufacturing activities will be sub-contracted while Philips will restrict its manufacturing operations to critical parts like printed circuit boards (PCBs). The company will also sub-contract the manufacture of its televisions to a third company for achievingbetter cost efficiences.

The company will also bring new generation and digital products like flat plasma television, and hand-held and pocket size computers. The company is also exploring the possibility of introducing voice-activated products and computer products which have keyboard free operations. The new products will incorporate features like voice and handwriting recognition as modes of instructions, Kant stated.

Philips will also set up a alternate marketing channel for selling digital products like Velo 500 handheld computers, Nino 300 voice-activated pocket size computers and digital camera Digicam. Many of these products will be sold via a direct marketing team to the target consumers with the use of mailers and responsive advertisements.

On the company's new pricing strategy, Kant said Philips will "straddle all price segments." The emphasis will be to offer "premium product at every price band" instead of being a premium priced brand, Kant said adding, "We will be premium onfeatures."

The company will unveil a range of new products and models at fresh prices over the next three months. Refusing to divulge details on the new prices to be announced, Kant said Chinese prices could soon become a benchmark in India. Like many competitors, Philips plans to use certain Chinese parts in the products to provide competitive prices.

On the manufacturing front, Philips has already combined the PCB manufacturing for the televisions at the audios facility at Pune. This is in keeping with the Dutch parent's global vision of "reducing the number of manufacturing locations to few global factories where electronics are produced supported by co-makers where products are assembled."

Philips is also in the process of tying up the sale of its Salt Lake television manufacturing facility to the Videocon group.

Referring to the company's plans in the audio segment, Kant said, "We will ensure that we do not get caught off-guard as we did in the televisions." Although unperturbed by the challengeposed by Aiwa, Philips will expand the range in the next three months, Kant added.