The company aims to be among the top three in the Asia Pacific market by the end of the year 1999. ``Without sounding unbelievable, I want to say that we aim to gain about 10 per cent market share in every product category in India,'' said van Houten. The company claims it is going to invest about $10 million in India to build its brand in the current year alone.

Matchline will be positioned as Philips new high-end line of products. The range comprises of: real flat TV, flat TV, DVD and VCRplayers; an audio digital surround receiver; and a CD-recordable (CDR 950). The range will be commercially available in Asian markets from September 1999. But first, Matchline will be showcased at IFA, one of the Europe's largest consumer electronics exhibitions, in Berlin, on August 28, 1999.

According to the company, the Matchline range is designed in such a way that the products ``match'' in design and technology. For instance, the 29-inch Real Flat TV uses the latest Real Flat Tube technology and a 100Hz digital scan for a distortion-free image. Some of the other key products in the range are 14PT3862-the world's first luminous 14-inch TV set -- and Brilliance 181 AS: the world's most advanced 18.1-inch flat panel monitor.

The India gameplan

In India, the company's thrust will be on the CTV market where Philips currently claims an eight per cent marketshare. The company has targeted a double digit growth rate in this segment in the next two years.

In India, selective products from theMatchline range will be launched in September 1999. Says Aaron Boey, director marketing, Asia Pacific, Middle East & Africa, Philips Consumer Electronics: ``The high-end product range will serve the additional purpose of creating a `halo effect' to help sell the other ranges.''

Even though it will launch two models in the economy segment of the Matchline range in the 25-inch and 29-inch sizes, the company will aggressively push the 29-inch Real Flat Picture Tube and 54-inch Projection TV in the Indian market. ``The focus will be on two key areas: real and projection TVs,'' says Kaushik Roy, head, corporate brand strategy, Philips India Ltd. The new Matchline CTV range will be priced between Rs 20,000 andRs 2 lakh.

In the audio segment, Philips will launch four new models in the mini hi-fi segment priced between Rs 11,000 and Rs 28,000. In addition, on the anvil are four new models under the CDR CR (CD-recordable) segment priced between Rs 5,500 to Rs 8,000. CD-Recordable (CD-R) is compact disc technologypioneered by Philips that allows the user to create their own CDs.

Building the brand

Philips, admitted van Houten candidly, had misunderstood the Indian market. ``In the past, we tried to ignore the differences in respective countries. Now we've decided to understand and respect region specific issues,'' said van Houten. Added Boey:`` We have started the process by being sensitive to the needs of the people.''

Recognising the lure of cricket for example, in August 1999 Philips India launched a Power Vision Double Window CTV which has split-screen feature, Next in the pipeline: a 29-inch CTV with cinema-surround audio, to replicate the movie-theatre experience.

Philips also plans to improve its brand equity by investing significantly on its global Star ad-campaign, which debuted last year. Out of the total ad-budget outlay of $80 million for the Asia-Pacific region, the company is going to spend about $10 million on India in the current year.

In China, it will invest about $40 million.Philips plans to be the largest advertiser on the pan-Asian media and among the top three advertisers in all key Asia-Pacific markets.To capture the youth segment, Philips is associating itself heavily with music channels like MTV and Channel V. For instance, it's going to sponsor a new programme on the Internet titled ``MTV Loaded''.

Philips: Seeking Pisharody's replacement

The leadership issue at the consumer electronics division of Philips India is likely to remain unresolved for some time. The appointment of Singapore-based S M ``Sam'' Singh -- following the sudden exit of Ravi Pisharody -- is temporary, according to Frans van Houten, managing director, Philips Consumer Electronics, Asia Pacific, Middle East & Africa.

``The post for the head is till vacant. We are looking at various options,'' says van Houten. Significantly, van Houton made it a point to stress that Pisharody's resignation was a personal decision and had nothing to do with van Houton's recent induction to the Philips Indiaboard as additional director.

Early this month Pisharody had put in his papers at Philips to join lubricant manufacturer Castrol India as vice-president marketing. S M Singh is currently working as director business electronics, Philips Asia Pacific in Singapore.