Introduction

• Anton and Gerard Philips started Philips & co. in 1891.

• The company started from building carbon-filament lamps.

MISSION

Improve the quality of people’s lives through technology-enabled meaningful innovations.

VISION

Strive to make the world healthier and more sustainable through innovation.

BRAND POSITIONING

The Branding of Philips started when Anton Philips created a logo for the company by using the initial letters of Philips & Co.

Philips Marketing

• Between 1930 to 1995 all advertising and marketing campaigns were carried out at the product level, on a local market basis.

In 1995, Philips started ‘Let’s make things better’ campaign that emphasized improving people’s lives through technological solutions.

To identify the perception consumers had, Philips undertook a market research study of its customers.

The company’s core target group disliked unnecessary hassle often created by new technology and value simplicity and efficiency in all fields.

Philips acted on people’s response by rebranding itself.

Let’s make

things better

Sense and

Simplicity

Emphasis is on improving people’s lives

in general

Emphasis is on the benefit of technologies without

the hassle

Points of Differences

• Products are designed around customers.

• Easy to experience.

• Advanced.

Points of Parity

• Develop health care products

• Develop energy-efficient lighting solutions.

• Global market player.

Brand Mantra

• Simple

• Advanced

• Healthcare Products

Evaluate Philips’ “sense and simplicity” strategy and discuss about the risks company faces in using this tagline.

This tagline is based on marketing insight they obtained from a market research on their consumer segment.

Risks:

• Compromising advancement.

• Loosing segment who prefer less expensive products.

Competitors of Philips

What strategies can Philips follow to ward off competition from Japanese manufacturers of consumer electronics?

• Designing Different products for high-end and low-end customers.

• Design cost effective products.

• Efficient channeling will help Philips to reach more customers.

• Provide good customer services.

• Best quality products.

Now

• Philips projects itself as a leading health care technology company.

• New tagline – ‘Innovation and You’

• Employs around 1,16,000 people across the world.

• Manufactures more than 50,000 products across 100 countries.

Philips Advertisements

Summary

IntroductionMission &

VisionBrand

Positioning

Competition Philips Now

DISCLAIMER• Created by Jay Hariyani, DA-IICT, During a Marketing Internship

by Prof. Sameer Mathur, IIM Lucknow.