About Philips,problems faced by Philips and communication strategies used by Philips to position their brand ,,,,,,and recommendations

1. PHILIPS
• Established in 1891
• One of the world’s largest electronic companies
• Started by Anton and Gerard Philips
• Employees a workforce of 116,000 around the world
• Philips manufactures more than 50,000 products across 100 countries

2. Our Business
A market leader in:
 Medical Diagnostic imaging
 Patient monitoring systems
 Energy efficient lighting solutions and life style solutions

3. Problems or Challenge's Faced by Philips
Between 1930 and 1995 advertisement campaign were carried out at product
level, local market basis.
Tough competition from Japanese electronic companies like Sony, Canon etc.
Closer down of its business units in defense and home appliances that were not
directly related to its core business
Cut of market share of Philips

4. New products such as the Video 2000, a video system developed to compete
with Betamax and VHS videos, failed because Philips had begun to lose touch
with the market.
Financial crisis due to, losing focus by operating in too many industries and did
not focus on marketing
Not allowing himself to represent as a global company.

5.  Philips has been at the forefront of electronic innovation since 1891, registering
some 65,000 patents and has been responsible for many of this century’s
greatest, most useful products:
o Electric shaver
o Audio Cassette
o Video Cassette Recorder
o Compact disc
o Energy Saving lamps

6. Analysis of the Case
• In 1990 Philips carried out a major re-structuring programme and changed from
localized production to global production
• In 1990 company faces financial crisis which triggered change of leadership
• So they appointed Jan Timmer as Chairman, who embarked upon a reappraisal of
the inefficient structure of the company.
• Timmer called top 100 managers together for the first time.
• He decided to set a benchmark of Philips against competitors.

7. Three steps were taken:
1. Restructuring and Cost Cutting
2. Creating a movement for change_ the “CENTURION” programme
3. Implementation change
• Philips primary focus was now on product innovation
 All employees were asked to raise questions to express their opinions and make
suggestions
 At CENTURION meeting 1 task force were appointed to create sweeping changes to
company wide issues

8. Continue……..
• CENTURION sessions were held for each business division. The session focused
on reviewing the state of business and plan of action for that business.
• Managers at other hand made a commitment to improve their performance.
• In 1994 company net income rose to 964 million euro. Workforce was reduced by
52,000 to 238,000 employees.
• Philips wanted to become a global brand and champion the idea that technology
will improve peoples live’s.They started a new Global communication strategy.

9. Communication Strategy
In 1995 Philips introduced "Lets Make Things Better” Campaign, Its new Global
strategy
• “Let’s make things better” embrace a duality: a desire to make better things
through innovations and products so that people will say “I want to buy that”.
• Also a commitment of the entire Philips organization to continue to make things
better and affect people’s lives positively.
• Campaign was launched Globally in all markets and related the campaign to all its
products
• Campaign primary objective was to help Philips connect with people and
campaign was successful.

10. Continue…..
• Management team was concerned that campaign did not convey the design excellence
or technical superiority of its products
• Philips conducted a market research to study the perception of costumers.
• They result showed that customers can “rely on Philips”.
• Company also discovered the core target group of Philips is educated aged between 35-
55
• Group dislikes the unnecessary hassle often created by new technology and valued
simplicity efficiency in all fields
• So Philips acted on this information by Re-Branding itself. So they launched a new
campaign.

11. Sense and Simplicity
• Now emphasis shifted to the benefits of technology without hassle of
understanding of technology
• This strategy reflects what Philips does and market oriented nature of
company.
• Campaign was based on three parameters
1. Products are designed around the customer
2. They are easy to experience
3. They are advanced

12. Suggestions
• Philips should study its competitors and potential customers.
• Build a strong, consistent brand culture
• Be borderless in your marketing.
• They should have communicate the “point-of-difference”.