Koninklijke Philips Electronics N.V. (Royal Philips Electronics) was founded in 1891 in the Netherlands and has grown to become a global leader in health technology, lighting and consumer electronics. It manufactures over 50,000 products across 100 countries and reported sales of $30.97 billion in 2019. Throughout its history, Philips has continually invested in new technologies and research and development. However, it now faces challenges from low-cost Japanese consumer electronics competitors. To address this, Philips launched a "Sense and Simplicity" marketing strategy in 2004 focused on easy-to-use products, but risks consumer distrust if it does not address electronic waste responsibility.

1. Sense and Simplicity
Q1525
SUBMITTED BY:
MANISHA BALI(A37)
MANDEEP
AHLAWAT(25)

2. From (philips radio) to “innovations & you”
FOUNDERS OF PHILIPS

3. MARKET
LEADERS IN

4. INTRODUCTION
MANUFACTURES
• MORE THAN
50000
PRODUCTS
• ACROSS 100
COUNTRIES
SALES
• REPORTED
SALES 30.97
BILLION
• PRODUCTS
IN 100
COUNTRIES
IN 35
LANGUAGES
TECHNOLOGY
• That’s why
They’ve been
investing
continually
in new
technologies
for over 100
years.

5.  Koninklijke Philips Electronics N.V. (Royal Philips Electronics
Inc.)
 The foundations of Philips were laid in 1891 when Anton and
Gerard Philips established Philips & Co. in Eindhoven, the
Netherlands.
 The company begun manufacturing carbon-filament lamps
 By the turn of the century, had become one of the largest
producers in Europe.
 Philips’ first research laboratory started introducing its first
innovations in the x-ray and radio technology.
 For years, the list of inventions has only been growing to include
new ideas that have continued to enrich people’s everyday lives.

6. Created by Anton Philip
Their branding in 1898 (logo of “Philips & co”)

7. “The story about the Philips logo”

8. The branding of Philips started when Anton Philips created
a logo by using letters “Philips & co”
In 1898 postcards showing a variety of Dutch national
costumes were used as marketing tools.
In 1926,philips introduced the symbol that featured waves
and stars. The waves symbolized radio waves and the stars
representing the evening sky through which those radio
waves travel.
In 1930,the waves and stars were enclosed in a circle as a
part of the design.

9.  Philips faced tough competition from up and coming
Japanese electronic companies which cut down their market
shares.
 Because Japanese companies were able to flood markets with
inexpensive consumer electronics .
 The company closed its market units from defense and home
appliances that were not related to its core business.
 They began sharing its R&d expenses with AT&T and seimens
AG.

10. In September 1995 Philips introduced
“Let’s make things better,” its new
global communications strategy. The
year 1997 saw Philips with a profit of
2.60 billion Euros on sales of 29.66
billion Euros. In the fiscal 1998, the
company’s profit jumped to 6.05
billion Euros. on he sales of 30.46
billion Euros .however, that its new
“Let’s make things better” campaign
can further strengthen brand image in
the eyes of tomorrow’s consumer. The
objective was to help Philips to
connect with people.

11. It works as
a single and
unified
company
the
initiative
also aimed
to cut costs
improve
relationship
with
customers

12.  Philips undertook a market research study of more than
1650 consumers and 180 companies
 The objectives of the research were:
a) To identify and test new routes for moving the philips
brand going forward.
b) Enable the company to better understand its current market
position.
 It undertook research among 26000 respondents to
measure the brand equity.

13. CONSUMERS BELIEVED THAT:
•They could not rely on philips product.
•Company did live up to its promise of making things better.
THEY ALSO FOUND THAT:
•Its target group consisted of the people between 35-55
•This group disliked the unnecessary hassle created by technology
CONSUMERS WANT
•Simplicity and efficiency in all fields.
•Don’t want to read and understand the complicated manuals.

14. APPROACH 3
PRODUCTS SHOULD BE ADVANCED
APPROACH 2
PRODUCTS SHOULD BE EASY TO EXPERIENCE
APPROACH 1
PRODUCTS ARE DESIGNED FOR:-> CUSTOMERS

17. QUESTION 1:->Evaluate Philips’ “SENSE &SIMPLICITY”
Strategy? What are the risks the company faces in using this
tagline?
Solution:“Sense and Simplicity” became the slogan of the
Dutch electronics giant, Koninklijke Philips Electronics NV –
better known as Philips – in 2004. But when it comes to
taking responsibility for the electronic waste (e-waste)
generated by their products, we don’t think they’ve been
showing much of either.

18. “Effects of sense and sensitivity compaign “

19. Question 2:-> which strategies can philips follow to ward off
the competition from Japanese manufactures of consumer
electronics?
new technologies demanded larger production runs than
most national plants could justify, and many of Philips’
competitors were moving production of electronics to new
facilities in low-wage areas in East Asia and Central and
South America. Despite its many technological innovations,
Philips’ ability to bring products to market began to falter.

20. Thank You
Thank
you