Philips mini marketing case study- PPT created during marketing internship under Professor Sameer Mathur, IIM lucknow

2. Company PHILIPS
Founder Gerard Philips and Frederik Philips
Headquarter Amsterdam
Netherlands
Area Served Worldwide
Slogan Innovation and You
Products Lighting
Health Care
Consumer Lifestyle
Key People Jeroen Van Der Veer (Chairman)
Frans Van Houten (CEO)
Revenue 24.50 billion EUR
Subsidiaries Saeco
Philips AVENT
Lumileds
Magnavox
Dynalite
No. of employees 105,000
Website www.philips.com/global/

3. DIVISIONS
Philips Lighting Philips Healthcare Philips Consumer Lifestyle

4. PHILIPS CONSUMER LIFESTYLE

5. PHILIPS HEALTHCARE

6. PHILIPS LIGHTING

10. VISION MISSION VALUES
Vision- To make the world healthier and more sustainable through innovation
Mission-. Improve the quality of people’s lives through technology-enabled
meaningful innovations.
Values- Delight Customers, Deliver great results, Develop People, Depend on
each other.

11. PHILIPS' STRATEGY
• Group strategy
Manage portfolio with clearly defined strategies and allocate resources to
maximize value creation.
• CAPs
Strengthening and leveraging core Capabilities, Assets and Positions as
they create differential value: deep customer insight, technology
innovation, brand, global footprint, and people.
• Excellence
Philips is a learning organization that applies common operating principles
and practices to deliver to customers with excellence.
•
Path to Value
Define and execute business plans that deliver sustainable results along a
credible Path to Value.
PHILIPS' STRATEGY

12. More than a century of innovation
and entrepreneurship
1891 - 1915
From light revolution to product evolution
Philips began by making carbon-filament lamps and quickly became one of the largest
producers in Europe. From the outset, Philips was an export-oriented company.
Large orders were won in Russia, including one from the Tsar to light up the Winter Palace.
In 1912, Philips became a limited company, with publicly traded shares, listed on the
Amsterdam Stock Exchange. With developments in new lighting technology fueling a steady
program of expansion, Philips established a research laboratory in 1914 – the world-renowned
‘NatLab’ – to study physical and chemical phenomena and stimulate product innovation.

13. 1915 – 1925
Innovation and diversification: X-rays and radio reception
In 1916, Philips received royal recognition on its 25th anniversary. Two years later it
introduced a medical X-ray tube. This marked the point when the company began to
diversify its product range and to systematically protect its innovations with patents
in areas stretching from X-ray radiation to radio reception. During this period, sales
organizations were established all over Europe and in countries like China, Australia
and Brazil.
1925 – 1940
The first radios, televisions and electric shavers
In 1927, Philips began producing radios, and within five years it had sold one million
sets and become the world’s largest manufacturer of radios and radio tubes. A year
later, it produced its 100-millionth radio valve. In 1933 the company started production
of medical X-ray equipment in the United States. Having been involved in experiments
in television since 1925, Philips showcased its first television at the Annual Fair in Utrecht
in 1938. One year later it launched its pioneering rotary electric shaver, the Philishave.

14. 1940 – 1970
A succession of technology breakthroughs
Science and technology underwent tremendous development in the 1940s and 1950s,
with Philips Research laying the basis for later ground-breaking work in transistors and
integrated circuits. The year 1949 saw the introduction of the Philips Synchrocyclotron,
enabling research into the treatment of malignant tumors. The company also continued
to make major contributions to the recording, transmission and reproduction of television
pictures. And in 1963 it introduced the Compact Audio Cassette, setting the global
standard for tape recording.
1970 – 1980
Continued product innovation for images, sound and data
The flow of exciting new products and ideas continued throughout the 1970s. In a decade
when energy management was high on the agenda, Philips Research contributed to the
new energy-saving lamps. Key breakthroughs were also made in the processing, storage
and transmission of images, sound and data. These subsequently led to the invention of
optical telecommunication systems, the LaserVision optical disc, and the highly successful
Compact Disc.

15. 1980 – 2000
Far-reaching changes and new successes
Company simplified its structure and reduced the number of areas in which it operated.
In healthcare, Philips adopted a new, people-centric approach to product design, the aim
being to make medical systems easier for clinicians to use, and more comfortable for
patients. Building on the success of its CD technology, Philips again partnered with
Sony to introduce the DVD in 1997. This ground-breaking innovation went on to
become the fastest-growing home electronics product in history.
21st century
Enduring commitment to innovation
Focus on health and well-being, the company introduced the Ambient Experience in 2002.
This innovative solution improves hospitals’ workflow and patient care by integrating
architecture, design, dynamic lighting and sound. In 2006, the first commercial launch of a
3D scanner, providing unprecedented image quality for CT scans. In 2012, Philips introduced
the AlluraClarity interventional X-ray system, which offers excellent visibility at low X-ray
dose levels. Recent innovations include the development of the Philips Smart Air Purifier
and solutions for minimally-invasive surgery.

16. Philips is the world’s largest patent applicant at the EPO
Philips is the world’s largest patent applicant for patents filed at the European
Patent Office (EPO) in 2015. Last year Philips filed 2,402 patent applications
according to the 2015 Patent Applicant Ranking, which was released by the EPO.
Philips rose to first place in 2015 from the second position in 2014 in the EPO’s
annual ranking. In addition, Philips ranks first in three of the ten leading fields of
technology: ‘Medical Technology’, ‘Electrical machinery, apparatus, energy’
and ‘Measurement’.

17. Q.1 Evaluate Philips "sense and simplicity" strategy. What are the risks the
company faces in using the tagline?
MINI CASE STUDY QUESTIONS
Product design around the
consumer
Hassle free technology Easy to experience

18. Effects of sense and sensitivity campaign
E-waste DumpLess Advanced Technology

19. Q2. What strategies can Philips follow to ward off competition from Japanese manufactures
of consumers electronics?
The major advantage that Japanese manufacturers have over Philips is their ability to keep
their prices lower. But their quality is not so good so Philips have to focus on maintenance of
quality, simplicity of design, and the sense that their products provide more value for money,
they would have an advantage. Philips have to focus on rural area also as the potential
customers are there in the rural areas. They have to design the product according to the
needs of the consumers then they can ward off competition from Japanese manufactures.

20. SUMMARY

21. DISCLAIMER
Created by Jai Pandey ,IIT (ISM) Dhanbad, during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow.