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Philips
Philips started in 1891 in Eindhoven, Netherlands manufacturing carbon filament lamps. It faced competition in 1970-1995 from Japanese electronics companies, forcing it to close less profitable factories. To reduce costs, Philips began sharing R&D with other companies. A new branding campaign in the 1990s emphasized improving lives through technology solutions. Market research found consumers saw Philips as reliable and preferred simplicity. The rebranding focused on benefits of technology without complexity. This increased Philips' brand value to $10.9 billion in 2015.
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Philips
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- 3. • Anton andGerard Philips started Philips & Co. in 1891 In Eindhoven, the Netherlands. • Began with manufacturing carbon filament lamps.
- 4. Vision In a worldwhere complexity increasingly touches every aspects of daily life . We will lead in bringing sense and simplicity to the people Mission Improve the quality of people lives through timely introduction of new of meaningful innovations.
- 5. Today’s world Philips ismarket leader in……… Medical diagnostic imaging Patient monitoring system Energy efficient lighting solution
- 6. Division • Philips Electronics •Philips Household products • Philips medical system • Philips sound and vision • Philips Lighting • Philips personal care
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- 8. Brand Positioning Branding ofPhilips started when Anton Philips created logo for company
- 9. History of Logo •First logo was created using initial letters of Philips & Co. • In 1926, Philips introduced a symbol that featured waves and stars. • In 1930 wave and stars were enclosed in a circle as part of design.
- 10. Problem • Between 1970and 1995, Philips faced tough competition from up-and-coming- Japanese electronics companies which cut into its market share. • Japanese companies had large automated plants, so they were able to flood markets with inexpensive consumer electronics.
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- 12. • Philips closedits less profitable factories • Created larger and more effective unit • Philips also closed its business units in defense and home appliances.
- 13. To Reduce cost, Philips began sharing its R&D expenses with other large corporations, including AT&T and Siemens AG
- 14. The new brandingChampaign This branding Champaign was launched to became a global brand Its emphasized improving people’s lives through technology solution This also bought the whole company together
- 15. To identify theperception consumer had, Philips undertook a market research study of more than 1,650 consumers and 180 Companies. Identify and test new routes for moving the Philips brand going forward Enable the company to understand its current market position
- 16. Result of marketResearch The results showed that The consumers believed they could “rely on Philips’ products” The company also discovered that Its core target group consisted of well- educated and affluent decision maker between 35 and 55. . This group typically disliked the unnecessary hassle often created by new technology and valued simplicity and efficiency in all field.
- 17. About Rebranding and launchof new campaign The emphasis shifted to the benefits of technology without the hassle of understanding the technology.
- 18. 1.Products are designed aroundthe consumers 2. They are easy 3.They are advanced This campaign was based on three premises
- 19. Brand value • In2014 the company realized a 5 percent growth in total brand value in Interbrand’s annual ranking. • Sales Reported around $30.97 billion in 2014. • Brand value around $10.9 billion in 2015 Results of new brand positioning…….
- 20. Conclusion • Philips isworld’s largest electronic brand. • Faced tough competition and difficulties, yet maintained its brand image and brand value. • Reasons of its success……. (i) Successful market repositioning from time to time (ii) Always kept its objective clear.
- 21. Created by Bijendrakumar Ray, NIT Hamirpur (H.P) during a marketing internship by Prof. Sameer Mathur, IIM Lucknow