Philips was established in 1891 in the Netherlands and began as a manufacturer of carbon filament lamps. It has since grown into a global conglomerate with divisions in consumer electronics, lighting, medical systems, and personal care. While Philips faced threats from low-cost Japanese competitors, it was able to reduce costs through R&D partnerships and reposition its brand identity. Market research revealed consumers valued reliability and found manuals complicated, leading Philips to shift its brand mantra to "Sense and Simplicity" and design products around user benefits rather than technology. This repositioning helped Philips reconnect with customers and establish itself as a global innovation and technology leader focused on improving people's lives.

1. –
Pioneer in Innovation
and Marketing

2. Divisions
• Philips consumer electronics
• Philips lighting
• Philips Medical System
• Philips Domestic and Personal
Care
• B2B

3. How it started?

4. • Established in 1891 as Philips and Co. in Eindhoven, the Netherlands.
• Began with manufacturing carbon filament lamps.
Gerard Philips Frederik Philips
Founders

5. Today’s Market Scenario
Market leader in medical diagnostic imaging and many other fields.
Huge workforce
Global outreach

6. • Sales reported around $30.97 billion in 2014.
• Brand value around $10.9 billion in 2015.

7. So, How did Philips
become huge?

8. Left no stone unturned to establish itself
as a Global Brand.

9. Started by branding of Philips by the creation of its LOGO.

10. Initial Marketing Strategies
• Marketing and advertisements varied across products.
• This caused a major problem – Disallowed Global representation.

11. Major competitors :
Japanese electronic
companies
• Their plus-point : Automated Manufacturing units.
• Hence, inexpensive products – Posed a great threat to Philips.

12. How Philips got its way through?

13. To reduce costs, it shared its R&D
expenses with other large
corporations, AT&T and Siemens AG.

14. • This rolled the campaign
out globally in all markets
& related the campaign to
all its products.
• This campaign brought
the whole company
together.
 Emphasized improving
people’s lives through
technological solutions.
 Primary Objective:
Connect with People.
Campaign

15. So what really
clicked for Philips?

16. Market Research
study of more than
1650 consumers and
180 companies
Helped to identify
and test new routes
for moving Philips
forward as a brand
Enabled the company
to understand its
current market
position

17. Result
 The survey showed that consumers believed
they could “rely on Philips’ products”.
 People from age group 35-55 : Core target group.
 Consumers were put-off by complicated manuals.

18. Philips repositioned itself from the brand
mantra “Let’s make things better ”
to
“Sense and Simplicity ”

19. Why the “Sense and Simplicity”
campaign worked?
 Products designed around
the consumer.
 Easy to experience.
 Advanced products.
Emphasis shifted to the benefits
of technology without
the hassle of understanding of
the technology.

20. A Brief Recap
Philips – World’s Largest electronic brand.
Always aspired to establish itself as a global brand.
Faced stiff competition and difficulties, yet it figured its way out.
Reason? – i) Successful market repositioning from time to time.
ii) Always kept its objective clear.

21. Created by Krishnendu Saha, IIT Roorkee during a
marketing internship by
Professor Sameer Mathur, IIM Lucknow.
Disclaimer