The document discusses the history and marketing strategies of Philips Electronics. It describes how Philips was founded in 1891 and grew to employ over 100,000 people worldwide. However, in the 1990s, Philips faced a financial crisis due to losing focus and not marketing itself globally. As a result, Philips underwent restructuring under new leadership, cutting costs and focusing on product innovation. Philips launched the "Let's Make Things Better" campaign in 1995 to reconnect with customers. Further research found customers valued simplicity, so Philips rebranded with a new campaign focused on benefits of technology without complexity.

1. Case Study Presentation:
Group Members:
Usman
Adnan
Ammar
Bilal
Sulman

2. •Philips Electronics, a Dutch multinational Corporation founded in 1891
•One of the world’s largest electronic company
•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

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

4. 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

5. 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.

6. 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.
Continued…

8. In 1990 Philips carried out a major re-structuring program and changed
from localized production to global production
In 1990 company faces financial crisis which triggered change of
leadership
So they appointed JanTimmer as Chairman, who embarked upon a
reappraisal of the inefficient structure of the company.
Timmer called top 100 managers together for the first time.

9. Three steps were taken:
1. Restructuring and Cost Cutting
2. Creating a movement for change_ the “CENTURION” program
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

10. 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 lives.They started a new Global
communication strategy.

11. In 1995 Philips introduced "Lets MakeThings 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.

12.  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.

13. 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

14.  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”.